Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BW | |
Entity Registrant Name | BABCOCK & WILCOX ENTERPRISES, INC. | |
Entity Central Index Key | 1,630,805 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 53,773,190 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 437,485 | $ 327,379 | $ 834,640 | $ 639,457 |
Costs and expenses: | ||||
Cost of operations | 355,601 | 258,351 | 669,359 | 513,578 |
Research and development costs | 3,962 | 4,281 | 8,480 | 8,293 |
Losses on asset disposals and impairments, net | 9,009 | 1,457 | 9,027 | 1,457 |
Selling, general and administrative expenses | 59,709 | 53,040 | 116,802 | 102,252 |
Special charges for restructuring activities | 5,312 | 7,513 | 7,666 | 8,991 |
Total costs and expenses | 433,593 | 324,642 | 811,334 | 634,571 |
Equity in income of investees | 967 | 433 | (1,104) | 2,799 |
Operating income | 4,859 | 3,170 | 22,202 | 7,685 |
Other income (expense): | ||||
Interest income | 126 | 48 | 282 | 677 |
Interest expense | (144) | (84) | (284) | (204) |
Other - net | 201 | 323 | (110) | 1,554 |
Total other income (expense) | 183 | 287 | (112) | 2,027 |
Income from continuing operations before provision for income taxes | 5,042 | 3,457 | 22,090 | 9,712 |
Provision for income taxes | 919 | 1,841 | 6,611 | 833 |
Income from continuing operations | 4,123 | 1,616 | 15,479 | 8,879 |
Income from discontinued operations, net of tax | 1,418 | 3,397 | 2,803 | 7,339 |
Net income | 5,541 | 5,013 | 18,282 | 16,218 |
Net income attributable to noncontrolling interest | (54) | (77) | (106) | (193) |
Net Income attributable to Babcock & Wilcox Enterprises, Inc. | 5,487 | 4,936 | 18,176 | 16,025 |
Amounts attributable to Babcock & Wilcox Enterprises, Inc. | ||||
Income from continuing operations | 4,069 | 1,539 | 15,373 | 8,686 |
Income from discontinued operations, net of tax | 1,418 | 3,397 | 2,803 | 7,339 |
Net Income attributable to Babcock & Wilcox Enterprises, Inc. | $ 5,487 | $ 4,936 | $ 18,176 | $ 16,025 |
Basic earnings per common share: | ||||
Continuing operations | $ 0.08 | $ 0.03 | $ 0.29 | $ 0.16 |
Discontinued operations | 0.02 | 0.06 | 0.05 | 0.13 |
Basic earnings per common share | 0.10 | 0.09 | 0.34 | 0.29 |
Diluted earnings per common share: | ||||
Continuing operations | 0.08 | 0.03 | 0.29 | 0.16 |
Discontinued operations | 0.02 | 0.06 | 0.05 | 0.13 |
Diluted earnings per common share | $ 0.10 | $ 0.09 | $ 0.34 | $ 0.29 |
Shares used in the computation of earnings per common share: | ||||
Basic | 53,560 | 54,883 | 53,474 | 55,051 |
Diluted | 53,787 | 55,058 | 53,680 | 55,251 |
Condensed Consolidated and Com3
Condensed Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,541 | $ 5,013 | $ 18,282 | $ 16,218 |
Other comprehensive income (loss): | ||||
Currency translation adjustments | 2,214 | (531) | (8,709) | (7,141) |
Derivative financial instruments: | ||||
Unrealized gains (losses) arising during the period, net of tax (provision) benefit of $604, $(289), $778 and $50, respectively | (2,004) | 833 | (2,219) | (142) |
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $115, $234, $(568) and $13, respectively | (338) | (679) | 1,578 | (47) |
Benefit obligations: | ||||
Amortization of benefit plan costs, net of tax benefit of $(49), $(89), $(92) and $(177), respectively | 66 | 186 | 137 | 372 |
Investments: | ||||
Unrealized gains arising during the period, net of tax provision of $(5), $0, $(5) and $(4), respectively | 11 | 1 | 10 | 9 |
Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $(1), $0, $(1) and $5, respectively | 1 | 2 | (10) | |
Other comprehensive loss | (50) | (190) | (9,201) | (6,959) |
Total comprehensive income | 5,491 | 4,823 | 9,081 | 9,259 |
Comprehensive loss attributable to noncontrolling interest | (61) | (79) | (131) | (189) |
Comprehensive income attributable to Babcock & Wilcox Enterprises, Inc. | $ 5,430 | $ 4,744 | $ 8,950 | $ 9,070 |
Condensed Consolidated and Com4
Condensed Consolidated and Combined Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax (provision) benefit of unrealized gains (losses) on derivative financial instruments | $ 604 | $ (289) | $ 778 | $ 50 |
Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | 115 | 234 | (568) | 13 |
Tax benefit of amortization of benefit plan costs | (49) | (89) | (92) | (177) |
Tax of unrealized gains | (5) | 0 | (5) | (4) |
Tax provision on reclassification adjustment for (gain) losses on investment | $ (1) | $ 0 | $ (1) | $ 5 |
Condensed Consolidated and Com5
Condensed Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 307,562 | $ 218,659 |
Restricted cash and cash equivalents | 35,538 | 26,311 |
Investments | 5,098 | 1,607 |
Accounts receivable - trade, net | 233,836 | 265,456 |
Accounts receivable - other | 40,385 | 36,147 |
Contracts in progress | 125,160 | 107,751 |
Inventories | 97,113 | 98,711 |
Deferred income taxes | 36,568 | 36,601 |
Other current assets | 16,391 | 11,347 |
Current assets of discontinued operations | 46,177 | |
Total current assets | 897,651 | 848,767 |
Property, plant and equipment | 324,165 | 335,761 |
Less accumulated depreciation | (179,916) | (200,525) |
Net property, plant and equipment | 144,249 | 135,236 |
Investments | 1,111 | 214 |
Goodwill | 202,398 | 209,277 |
Deferred income taxes | 123,576 | 115,111 |
Investments in unconsolidated affiliates | 100,804 | 109,248 |
Intangible assets | 40,915 | 50,646 |
Other assets | 26,695 | 9,227 |
Non-current assets of discontinued operations | 38,828 | |
TOTAL ASSETS | 1,537,399 | 1,516,554 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 3,222 | 3,215 |
Accounts payable | 147,885 | 160,606 |
Accrued employee benefits | 41,627 | 39,464 |
Advance billings on contracts | 168,946 | 148,098 |
Accrued warranty expense | 36,995 | 37,735 |
Accrued liabilities - other | 49,216 | 54,827 |
Current liabilities of discontinued operations | 44,145 | |
Total current liabilities | 447,891 | 488,090 |
Accumulated postretirement benefit obligation | 29,103 | 28,347 |
Pension liability | 246,366 | 253,763 |
Other liabilities | 40,097 | 42,929 |
Non-current liabilities of discontinued operations | 15,988 | |
Total liabilities | $ 763,457 | $ 829,117 |
Commitments and contingencies (Note 7) | ||
Stockholders' Equity: | ||
Common stock, par value $0.01 per share, authorized 200,000,000 shares; issued 53,719,878 and 0 shares at June 30, 2015 and December 31, 2014, respectively | $ 537 | |
Preferred stock, par value $0.01 per share, authorized 20,000,000 shares; No shares issued | ||
Capital in excess of par value | $ 782,692 | |
Retained earnings | 0 | $ 0 |
Accumulated other comprehensive income | (10,407) | 10,374 |
Former net parent investment | 676,036 | |
Stockholders' equity - Babcock & Wilcox Enterprises, Inc. | 772,822 | 686,410 |
Noncontrolling interest | 1,120 | 1,027 |
Total Stockholders' equity | 773,942 | 687,437 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,537,399 | $ 1,516,554 |
Condensed Consolidated and Com6
Condensed Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 53,719,878 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Condensed Consolidated and Com7
Condensed Consolidated and Combined Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital In Excess of Par Value [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Former Parent Investment [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2013 | $ 525,644 | $ 35,339 | $ 489,381 | $ 924 | |||
Net income | 16,218 | 16,025 | 193 | ||||
Defined benefit obligations | 372 | 372 | |||||
Available-for-sale investments | (1) | (1) | |||||
Currency translation adjustments | (7,141) | (7,137) | $ (4) | ||||
Derivative financial instruments | (189) | $ (189) | |||||
Stock-based compensation | $ 148 | $ 148 | |||||
Stock-based compensation, Shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends to noncontrolling interests | $ (223) | $ (223) | |||||
Net transfer (to) from former Parent | 215,262 | $ 215,262 | |||||
Balance at Jun. 30, 2014 | 750,090 | $ 28,384 | 720,816 | 890 | |||
Balance at Dec. 31, 2014 | $ 687,437 | 10,374 | 676,036 | 1,027 | |||
Balance, Shares at Dec. 31, 2014 | 0 | ||||||
Net income | $ 18,282 | 18,176 | 106 | ||||
Defined benefit obligations | 137 | 137 | |||||
Available-for-sale investments | 12 | 12 | |||||
Currency translation adjustments | (8,709) | (8,734) | $ 25 | ||||
Derivative financial instruments | (641) | $ (641) | |||||
Stock-based compensation | $ 6 | $ 6 | |||||
Stock-based compensation, Shares | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Dividends to noncontrolling interests | $ (38) | $ (38) | |||||
Net transfer (to) from former Parent | 125,295 | $ 125,295 | |||||
Distribution of Nuclear Energy segment to former Parent | (47,839) | $ (11,555) | (36,284) | ||||
Reclassification of former Parent investment to capital in excess of par value and common stock | $ 537 | $ 782,692 | $ (783,229) | ||||
Reclassification of former Parent investment to capital in excess of par value and common stock, Shares | 53,720 | ||||||
Balance at Jun. 30, 2015 | $ 773,942 | $ 537 | $ 782,692 | $ (10,407) | $ 1,120 | ||
Balance, Shares at Jun. 30, 2015 | 53,719,878 | 53,720 |
Condensed Consolidated and Com8
Condensed Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 18,282 | $ 16,218 |
Non-cash items included in net income: | ||
Depreciation and amortization | 21,458 | 11,307 |
Income of equity method investees, net of dividends | 2,292 | (240) |
Losses on asset disposals and impairments | 10,607 | 1,457 |
Recognition of losses for pension and postretirement plans | 200 | 250 |
Excess tax benefits from stock-based compensation | (12) | |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 31,332 | 30,400 |
Accounts payable | (11,369) | (50,150) |
Contracts in progress and advance billings on contracts | 5,170 | (69,580) |
Inventories | 663 | 4,503 |
Income taxes | (2,075) | 5,911 |
Accrued and other current liabilities | (7,735) | 4,360 |
Pension liability, accrued postretirement benefit obligation and employee benefits | (7,237) | (14,745) |
Other, net | (5,958) | 2,390 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 55,630 | (57,931) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Decrease in restricted cash and cash equivalents | 1,307 | 4,420 |
Purchases of property, plant and equipment | (15,215) | (5,499) |
Acquisition of business, net of cash acquired | (127,098) | |
Purchase of intangible assets | (722) | |
Purchases of available-for-sale securities | (4,919) | (2,844) |
Sales and maturities of available-for-sale securities | 1,647 | 7,247 |
Proceeds from asset disposals | (6) | |
Investment in equity method investees | (4,900) | |
NET CASH USED IN INVESTING ACTIVITIES | (17,180) | (129,402) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of short-term borrowing and long-term debt | (1,815) | |
Increase in short-term borrowing | 733 | |
Net transfers (to) from parent | 80,589 | 215,262 |
Excess tax benefits from stock-based compensation | 12 | |
Other | (38) | (223) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 80,551 | 213,969 |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (4,881) | (4,123) |
CASH FLOWS FROM CONTINUING OPERATIONS | 114,120 | 22,513 |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Operating cash flows from discontinued operations, net | (25,194) | (10,302) |
Investing cash flows from discontinued operations, net | (23) | (115) |
NET CASH FLOWS PROVIDED BY (USED IN) DISCONTINUED OPERATIONS | (25,217) | (10,417) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 88,903 | 12,096 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 218,659 | 191,318 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 307,562 | 203,414 |
Cash paid during the period for: | ||
Income taxes (net of refunds) | 4,038 | 8,200 |
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||
Accrued capital expenditures included in accounts payable | $ 658 | $ 1,473 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Babcock & Wilcox Enterprises, Inc. (“BW”, “we”, “us” or “our”) operates in three business segments as described below and was wholly owned by The Babcock & Wilcox Company (“BWC” or the “former Parent”) until June 30, 2015 when BWC distributed 100% of our outstanding common stock to the BWC shareholders through a tax-free spin-off transaction (the “spin-off”). BWC is now known as BWX Technologies, Inc. On and prior to June 30, 2015, our financial position, operating results and cash flows consisted of The Power Generation Operations of BWC (“BW PGG”), which represented a combined reporting entity comprised of the assets and liabilities in managing and operating the Power Generation segment of BWC, combined with related captive insurance operations that were contributed by BWC to BW. In addition, BW PGG also includes certain assets and liabilities of BWC’s Nuclear Energy (“NE”) segment that were transferred to BWC. We have treated the assets and liabilities and results of operations of NE as a discontinued operation in our condensed consolidated and combined financial statements. See Note 3 for further information. Our condensed consolidated and combined balance sheet as of June 30, 2015 consists of the consolidated balances of BW, while our condensed consolidated and combined balance sheet as of December 31, 2014 consists of the combined results of BW PGG. Our condensed consolidated and combined statements of operations and our condensed consolidated and combined cash flows consist entirely of the combined results of BW PGG. On June 8, 2015, BWC’s Board of Directors approved the spin-off of BW through the distribution of shares of BW common stock to holders of BWC common stock. The distribution of BW common stock was made on June 30, 2015 and consisted of one share of BW common stock for every two shares of BWC common stock to holders of BWC common stock as of 5:00 p.m. New York City time on the record date, June 18, 2015. Cash was paid in lieu of any fractional shares of BW common stock. On June 30, 2015, BW became a separate publicly-traded company, and BWC did not retain any ownership interest in BW. A registration statement on Form 10 describing the spin-off was filed by BW with the Securities and Exchange Commission and was declared effective on June 16, 2015 (as amended through the time of such effectiveness, the “Form 10”). We have presented our condensed consolidated and combined financial statements in U.S. Dollars in accordance with the interim reporting requirements of 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 have been condensed or omitted. Readers of these financial statements should, therefore, refer to the consolidated financial statements and notes in our Form 10. 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 and combined financial statements on the basis of continuing operations, unless otherwise stated. Certain corporate and general and administrative expenses, including those related to executive management, tax, accounting, legal, information technology, treasury services, and certain employee benefits, have been allocated by BWC to us to reflect all costs of doing business related to these operations in the financial statements, including expenses incurred by related entities on our behalf. The majority of these allocations of management and support services costs are based on specific identification methods such as direct usage and level of effort. The remainder is allocated on the basis of a three-factor formula that considered proportional revenue generated, payroll and fixed assets. Management believes such allocations are reasonable. However, the associated expenses reflected in the accompanying condensed consolidated and combined statements of operations may not be indicative of the actual expenses that would have been incurred had we been operating as an independent public company for the periods presented. Following the separation and distribution from BWC, we have been performing these functions using internal resources or purchased services, certain of which may be provided by BWC during a transitional period pursuant to a transition services agreement. Refer to Note 13 for a detailed description of transactions with other affiliates of BWC. We have reclassified amounts previously reported to conform to the presentation as of and for the three and six month periods ended June 30, 2015 and 2014, attributable to the treatment of NE as a discontinued operation. We have also retrospectively adjusted amounts previously reported in the December 31, 2014 combined balance sheet related to the initial capitalization of our new, wholly-owned captive insurance subsidiary, which occurred in the second quarter of 2014. The retrospective adjustment reduced restricted cash, investments and other assets by $5.5 million, $0.5 million and $0.3 million, respectively. Reporting Segments We operate in three reportable segments: Global Power, Global Services and Industrial Environmental. Our reportable segments are further described as follows: • Our Global Power segment represents our worldwide new build boiler and environmental products operations. Through this segment, we engineer, manufacture, procure, construct and commission steam generating and environmental systems and other related equipment. Our boilers are designed for utility and industrial applications, fired with fossil and renewable fuels and include advanced supercritical boilers, subcritical boilers, fluidized bed boilers, biomass-fired boilers, waste-to-energy boilers, chemical recovery boilers, industrial power boilers, package boilers, heat recovery steam generators, waste heat boilers and solar thermal power systems. Our environmental systems offer air pollution control systems and related equipment for the treatment of nitrogen oxides, sulfur dioxide, fine particulate, mercury, acid gases and other hazardous air emissions and include wet and dry flue gas desulfurization systems, catalytic and non-catalytic nitrogen oxides reduction systems, low nitrogen oxides burners and overfire air systems, fabric filter baghouses, wet and dry electrostatic precipitators, mercury control systems and dry sorbent injection for acid gas mitigation. Our customers consist of a wide range of utilities, independent power producers and industrial companies globally. • Our Global Services segment provides a comprehensive mix of aftermarket products and services to support peak efficiency and availability of steam generating and associated environmental and auxiliary equipment for power generation. Our products and services include replacement parts, field technical services, retrofit and upgrade projects, fuel switching and repowering projects, construction and maintenance services, start-up and commissioning, training programs and plant operations and maintenance for our full complement of boiler, environmental and auxiliary equipment. We deliver these aftermarket products and services to a large installed base for our and our competitors’ power generation and industrial plants globally through our extensive network of regionally located service centers, technical support personnel, and global sourcing capabilities. Our customers consist of a wide range of utilities, independent power producers and industrial companies globally. • Our Industrial Environmental segment provides environmental products and services to numerous industrial end markets through Babcock & Wilcox MEGTEC Holdings, Inc. (“MEGTEC”), which we acquired on June 20, 2014. Through this segment, we design, engineer and manufacture products including oxidizers, solvent and distillation systems, wet and dry electrostatic precipitators, fabric filter baghouses, scrubbers and heat recovery systems. The segment also provides specialized industrial process systems, coating lines and equipment. Our suite of technologies for pollution abatement include systems that control volatile organic compounds and air toxins, particulate, nitrogen oxides and acid gas air emissions from industrial processes. We serve a diverse set of industrial end markets with a current emphasis on the chemical, pharmaceutical, energy storage, packaging and automotive markets. See Note 11 for further information regarding our segments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the combined financial statements and the related footnotes included in the Form 10. Contracts and Revenue Recognition We generally recognize contract revenues and related costs on a percentage-of-completion method for individual contracts or combinations of contracts based on work performed, man hours or a cost-to-cost method, as applicable to the product or activity involved. We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress completion as a percentage of the total project. Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for materials and major third-party subcontractors, if it appears that such exclusion would result in a more meaningful measurement of actual contract progress and resulting periodic allocation of income. We include revenues and related costs so recorded, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in contracts in progress. We include in advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized under the percentage-of-completion method. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. For contracts as to which we are unable to estimate the final profitability except to assure that no loss will ultimately be incurred, we recognize equal amounts of revenue and cost until the final results can be estimated more precisely. For these deferred profit recognition contracts, we recognize revenue and cost equally and only recognize gross margin when probable and reasonably estimable, which we generally determine to be when the contract is approximately 70% complete. We treat long-term construction contracts that contain such a level of risk and uncertainty that estimation of the final outcome is impractical, except to assure that no loss will be incurred, as deferred profit recognition contracts. Our policy is to account for fixed-price contracts under the completed-contract method if we believe that we are unable to reasonably forecast cost to complete at start-up. Under the completed-contract method, income is recognized only when a contract is completed or substantially complete. For parts orders and certain aftermarket services activities, we recognize revenues as goods are delivered and work is performed. Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We include claims for extra work or changes in scope of work to the extent of costs incurred in contract revenues when we believe collection is probable. At June 30, 2015 and December 31, 2014, we recognized accrued claims totaling $10.1 million and $8.2 million, respectively. In the three and six months ended June 30, 2014, we recorded a contract loss totaling approximately $4.0 million and $11.6 million, respectively, based on our estimated costs to complete our Global Power segment’s Berlin Station project. We previously asserted that substantial completion had been achieved on this project in early 2014 and that any further delays to complete this project were the result of the customer’s failure to supply fuel complying with the contract specifications. The customer certified that we achieved substantial completion on this project effective July 19, 2014, following which the customer has no further claims for liquidated damages associated with delays. See Note 7 for legal proceedings associated with this matter. Comprehensive Income The components of accumulated other comprehensive income included in stockholders’ equity are as follows: June 30, December 31, 2015 2014 (In thousands) Currency translation adjustments $ (8,781 ) $ 11,551 Net unrealized gain on investments (10 ) (22 ) Net unrealized gain on derivative financial instruments (327 ) (123 ) Unrecognized prior service cost on benefit obligations (1,289 ) (1,032 ) Accumulated other comprehensive income (loss) $ (10,407 ) $ 10,374 The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated and combined statements of operations line items are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Accumulated Other Comprehensive Income Component Recognized (In thousands) Line Item Presented Realized (losses) gains on derivative financial instruments $ (40 ) $ 13 $ 22 $ 23 Revenues (2 ) (5 ) 98 (5 ) Cost of operations (33 ) — (32 ) — Other-net (75 ) 8 88 18 Total before tax 23 (2 ) (5 ) (4 ) Provision for Income Taxes (52 ) 6 83 14 Net Income Amortization of prior service cost on benefit obligations (100 ) (125 ) (200 ) (250 ) Cost of operations 37 50 80 100 Provision for Income Taxes (63 ) (75 ) (120 ) (150 ) Net Income Realized gain on investments (2 ) — (3 ) 15 Other-net 1 — 1 (5 ) Provision for Income Taxes (1 ) — (2 ) 10 Net Income Total reclassifications for the period $ (116 ) $ (69 ) $ (39 ) $ (126 ) Inventories The components of inventories are as follows: June 30, December 31, 2015 2014 (In thousands) Raw materials and supplies $ 69,680 $ 71,604 Work in progress 8,381 9,831 Finished goods 19,052 17,276 Total inventories $ 97,113 $ 98,711 Restricted Cash and Cash Equivalents At June 30, 2015, we had restricted cash and cash equivalents totaling $35.5 million, $4.1 million of which was held in restricted foreign cash accounts and $31.4 million of which was held to meet reinsurance reserve requirements of our captive insurer in lieu of long-term investments. Goodwill The following summarizes the changes in the carrying amount of goodwill: Global Power Global Services Industrial Total (In thousands) Balance at December 31, 2014 $ 37,991 $ 62,486 $ 108,800 $ 209,277 Final purchase price allocation for MEGTEC — — (4,492 ) (4,492 ) Foreign currency translation adjustments and other (902 ) (1,485 ) — (2,387 ) Balance at June 30, 2015 $ 37,089 $ 61,001 $ 104,308 $ 202,398 Warranty Expense We accrue estimated expense included in cost of operations on our condensed consolidated and combined statements of operations to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. The following summarizes the changes in the carrying amount of our accrued warranty expense: Six Months Ended June 30, 2015 2014 (In thousands) Balance at beginning of period $ 37,735 $ 38,968 Additions 8,432 4,774 Acquisition of MEGTEC — 4,692 Expirations and other changes (202 ) (2,234 ) Payments (8,535 ) (4,549 ) Translation and other (435 ) — Balance at end of period $ 36,995 $ 41,651 Research and Development Our research and development activities are related to the development and improvement of new and existing products and equipment, as well as conceptual and engineering evaluation for translation into practical applications. We charge research and development costs unrelated to specific contracts as they are incurred. Research and development activities totaled $4.0 million and $4.3 million in the three months ended June 30, 2015 and 2014, respectively, and $8.5 million and $8.3 million in the six months ended June 30, 2015 and 2014, respectively. In the three months ended June 30, 2015, we recognized a $9.0 million impairment charge primarily related to research and development facilities and equipment dedicated to a carbon capture process that was determined during the quarter ended June 30, 2015 to not be commercially viable. The impairment is included in losses on asset disposals and impairments, net. Provision for Income Taxes We are subject to U.S. federal income tax and income tax of multiple state and international jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to changes in our effective tax rate from period to period. We classify interest and penalties related to taxes (net of any applicable tax benefit) as a component of provision for income taxes on our condensed consolidated and combined statements of operations. Our effective tax rate for the three months ended June 30, 2015 was approximately 18.2% as compared to 53.3% for the three months ended June 30, 2014. Our effective tax rate for the three months ended June 30, 2015 was lower than our statutory rate primarily due to the jurisdictional mix of our income. Our effective tax rate for the three months ended June 30, 2014 was higher than our statutory rate primarily due to the jurisdictional mix of income as well as the favorable impact of an increase in benefits for amended federal manufacturing deductions and certain amended state return filings, offset by an increase to a valuation allowance against certain state deferred tax assets. Our effective tax rate for the six months ended June 30, 2015 was approximately 29.9% as compared to 8.6% for the six months ended June 30, 2014. Our effective tax rate for the six months ended June 30, 2015 was lower than our statutory rate primarily due to the jurisdictional mix of our income. Our effective tax rate for the six months ended June 30, 2014 was lower than our statutory rate primarily due to the receipt of a favorable ruling from the Internal Revenue Service that allowed us to amend prior year U.S. income tax returns to exclude distributions of certain of our foreign joint ventures from domestic taxable income. As of June 30, 2015, we have gross unrecognized tax benefits of $2.4 million, which, if recognized, would lower our effective tax rate from continuing operations. New Accounting Standards In April 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This revised guidance is effective retrospectively for annual reporting periods beginning after December 15, 2015, and related interim periods with early adoption permitted. We are currently evaluating the impact of this standard. In April 2015, the FASB issued ASU 2015-05 – Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The objective of this ASU is to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. This update is effective prospectively for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 with early adoption permitted. We are currently evaluating the impact of this standard. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This ASU permits a reporting entity to measure the fair value of certain investments using the net asset value per share of the investment. This update is effective retrospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We are currently evaluating the impact of this standard. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | NOTE 2 – ACQUISITIONS AND DISPOSITIONS MEGTEC Acquisition On June 20, 2014, we acquired the outstanding stock of industrial processes solutions provider MEGTEC for $142.8 million, net of cash acquired. MEGTEC designs, engineers, manufactures and services air pollution control systems and coating/drying equipment for a variety of industrial applications. The purchase price of the acquisition has been allocated among assets acquired and liabilities assumed at estimates of fair value with the excess purchase price recorded as goodwill. Our purchase price allocation, finalized in the second quarter of 2015, is as follows: MEGTEC (in thousands) Unrestricted cash $ 14,232 Accounts receivable 23,054 Inventories 5,395 Other current assets 6,326 Property, plant and equipment 13,348 Goodwill 104,308 Intangible assets 43,150 Total assets acquired 209,813 Accounts payable 13,402 Advance billings on contracts 11,144 Other current liabilities 18,089 Pension liability 5,041 Deferred income taxes 4,994 Other liabilities 130 Total liabilities assumed 52,800 Net assets acquired 157,013 Unrestricted cash acquired 14,232 Net assets acquired, net of unrestricted cash acquired $ 142,781 Amount of tax deductible goodwill $ 34,583 The intangible assets included above consist of the following (dollar amounts in thousands): Amount Amortization Period Customer relationships $ 23,500 8 years Backlog 10,400 1 year Trade names / trademarks 6,000 11 years Developed technology 3,250 5 years Our Industrial Environmental segment is comprised of MEGTEC, and its results of operations since acquisition can be found in Note 11. Additionally, the following unaudited pro forma financial information presents our results of operations for the three and six months ended June 30, 2014 had the acquisition of MEGTEC occurred on January 1, 2013. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2013. This information should not be taken as representative of our future consolidated results of operations. Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Revenues $ 364,346 $ 719,789 Net Income Attributable to Babcock & Wilcox Enterprises, Inc. $ 7,014 $ 19,213 Basic Earnings per Common Share $ 0.13 $ 0.34 Diluted Earnings per Common Share $ 0.13 $ 0.34 The unaudited pro forma results include the following pre-tax adjustments to the historical results presented above: • Additional amortization expense related to the timing of amortization of the fair value of identifiable intangible assets acquired of approximately $0.8 million and $1.3 million for the three and six months ended June 30, 2014, respectively. • Elimination of historical interest expense of approximately $0.6 million and $0.9 million for the three and six months ended June 30, 2014, respectively. • Elimination of $12.5 million in acquisition related costs recognized in the three and six months ended June 30, 2014 that are not expected to be recurring. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 3 – DISCONTINUED OPERATIONS As discussed in Note 1, we distributed assets and liabilities totaling $47.8 million associated with our NE segment to BWC in conjunction with the spin-off. We received corporate allocations from the former Parent as described in Note 1, which included $1.3 million and $1.3 million for the three months ended June 30, 2015 and 2014, respectively, and $2.7 million and $2.7 million for the six months ended June 30, 2015 and 2014, respectively. Though these allocations relate to our discontinued NE segment, they are included as part of continuing operations because allocations are not eligible for inclusion in discontinued operations. The following table presents selected financial information regarding the results of operations of our former NE segment: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Revenues $ 30,377 $ 32,335 $ 53,064 $ 68,149 Income before provision for income taxes 1,743 4,063 3,358 10,218 Provision for income taxes 325 666 555 2,879 Income from discontinued operations, net of tax $ 1,418 $ 3,397 $ 2,803 $ 7,339 The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 condensed consolidated and combined balance sheet: December 31, 2014 (in thousands) Current Assets: Cash and cash equivalents $ 426 Accounts receivable – trade, net 14,041 Accounts receivable – other 1,411 Contracts in progress 22,953 Inventories 1,306 Deferred income taxes 48 Other current assets 5,992 Total current assets of discontinued operations 46,177 Net property, plant and equipment 23,721 Goodwill 10,055 Deferred income taxes 2,375 Intangible assets 980 Other assets 1,697 Total assets of discontinued operations $ 85,005 Current Liabilities: Accounts payable $ 7,954 Accrued employee benefits 7,895 Advance billings on contracts 5,475 Accrued warranty expense 5,469 Accrued liabilities – other 17,352 Total current liabilities of discontinued operations 44,145 Accumulated postretirement benefit obligation 7,835 Pension liability 7,082 Other liabilities 1,071 Total liabilities of discontinued operations $ 60,133 |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility | NOTE 4 – CREDIT FACILITY On June 30, 2015, the new credit agreement (“New Credit Agreement”) that we entered into on May 11, 2015 closed in connection with the spin-off. The New Credit Agreement provides for senior secured revolving credit facility in an aggregate amount of up to $600 million, which is scheduled to mature on June 30, 2020. The proceeds of loans under the New Credit Agreement are available for working capital needs and other general corporate purposes, and the full amount is available for the issuance of letters of credit. The New Credit Agreement contains an accordion feature that allows us, subject to the satisfaction of certain conditions, including the receipt of increased commitments from existing lenders or new commitments from new lenders, to increase the amount of the commitments under the revolving credit facility in an aggregate amount not to exceed the sum of (i) $200 million plus (ii) an unlimited amount, so long as for any commitment increase under this subclause (ii) our senior secured leverage ratio (assuming the full amount of any commitment increase under this subclause (ii) is drawn) is equal to or less than 2.0 to 1.0 after giving pro forma effect thereto. The New Credit Agreement and our obligations under certain hedging agreements and cash management agreements with our lenders and their affiliates are (i) guaranteed by substantially all of our wholly owned domestic subsidiaries, but excluding our captive insurance subsidiary, and (ii) secured by first-priority liens on certain assets owned by us and the guarantors. The New Credit Agreement requires interest payments on revolving loans on a periodic basis until maturity. We may prepay all loans at any time without premium or penalty (other than customary LIBOR breakage costs), subject to notice requirements. The New Credit Agreement requires us to make certain prepayments on any outstanding revolving loans after receipt of cash proceeds from certain asset sales or other events, subject to certain exceptions and a right to reinvest such proceeds in certain circumstances, but such prepayments will not require us to reduce the commitments under the New Credit Agreement. Loans outstanding under the New Credit Agreement bear interest at our option at either the LIBOR rate plus a margin ranging from 1.375% to 1.875% per year or the base rate (the highest of the Federal Funds rate plus 0.50%, the one month LIBOR rate plus 1.0%, or the administrative agent’s prime rate) plus a margin ranging from 0.375% to 0.875% per year. A commitment fee is charged on the unused portions of the revolving credit facility, and that fee varies between 0.250% and 0.350% per year. Additionally, a letter of credit fee of between 1.375% and 1.875% per year is charged with respect to the amount of each financial letter of credit issued, and a letter of credit fee of between 0.825% and 1.125% per year is charged with respect to the amount of each performance letter of credit issued. The applicable margin for loans, the commitment fee and the letter of credit fees set forth above vary quarterly based on our leverage ratio. The New Credit Agreement includes financial covenants that are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The maximum permitted leverage ratio is 3.00 to 1.00, which ratio may be increased to 3.25 to 1.00 for up to four consecutive fiscal quarters after a material acquisition. The minimum consolidated interest coverage ratio is 4.00 to 1.00. In addition, the New Credit Agreement contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. At June 30, 2015, we had no borrowings outstanding under the revolving credit facility, and after giving effect to the leverage ratio and $109.1 million of letters of credit issued under the New Credit Agreement, we had approximately $383.9 million available for borrowings or to meet letter of credit requirements. The New Credit Agreement generally includes customary events of default for a secured credit facility. If an event of default relating to bankruptcy or other insolvency events with respect to us occurs under the New Credit Agreement, all obligations will immediately become due and payable. If any other event of default exists, the lenders will be permitted to accelerate the maturity of the obligations outstanding. If any event of default occurs, the lenders are permitted to terminate their commitments thereunder and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral. Additionally, if we are unable to make any of the representations and warranties in the New Credit Agreement, we will be unable to borrow funds or have letters of credit issued. At June 30, 2015, we were in compliance with all of the covenants set forth in the New Credit Agreement. |
Special Charges for Restructuri
Special Charges for Restructuring Activities and Spin-Off Costs | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Special Charges for Restructuring Activities and Spin-Off Costs | NOTE 5 – SPECIAL CHARGES FOR RESTRUCTURING ACTIVITIES AND SPIN-OFF COSTS Global Competitiveness Initiative In the year ended December 31, 2013, we announced the Global Competitiveness Initiative (“GCI”) to enhance competitiveness, better position us for growth and improve profitability. In conjunction with GCI, during the six months ended June 30, 2014, we incurred $2.2 million of expenses related to facility consolidation. Other Restructuring Actions In the six months ended June 30, 2015, we incurred $6.5 million of accelerated depreciation and impairment charges related to facility consolidation, $1.1 million of consulting fees and other administrative costs and $0.1 million of expenses related to employee termination benefits in conjunction with the margin improvement program that BWC announced in 2014. In the six months ended June 30, 2014, we incurred $6.0 million of expenses related to employee termination benefits and $0.8 million of consulting and other administrative costs related to the margin improvement program. An analysis of our restructuring liabilities for the six months ended June 30, 2015 and 2014 follows: Six months ended June 30, June 30, 2015 2014 (In thousands) Balance at the beginning of the period $ 5,086 $ 5,213 Special charges for restructuring activities (1) 1,199 7,124 Payments (4,102 ) (5,727 ) Balance at the end of the period $ 2,183 $ 6,610 (1) Excludes non-cash charges of $6.5 million and $1.9 million for the six months ended June 30, 2015 and 2014, respectively, which did not impact the restructuring liability. At June 30, 2015, unpaid restructuring charges totaled $1.7 million for employee termination benefits and $0.5 million for consulting and administrative costs. At June 30, 2014, unpaid restructuring charges totaled $6.6 million for employee termination benefits. Spin-off transaction costs In the three and six months ended June 30, 2015, we incurred $0.9 million of costs directly related to the spin-off of BW from BWC, included in selling, general and administrative expenses. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Postretirement Benefits | NOTE 6 – PENSION PLANS AND POSTRETIREMENT BENEFITS Components of net periodic benefit cost included in net income are as follows: Pension Benefits Other Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 2015 2014 2015 2014 (In thousands) Service cost $ 3,384 $ 3,242 $ 6,774 $ 6,481 $ — $ — $ — $ — Interest cost 11,911 12,818 23,764 25,604 249 255 499 503 Expected return on plan assets (16,677 ) (15,857 ) (33,355 ) (31,710 ) — — — — Amortization of prior service cost (credit) 100 125 200 250 — — — — Net periodic benefit cost $ (1,282 ) $ 328 $ (2,617 ) $ 625 $ 249 $ 255 $ 499 $ 503 We made contributions to our pension and postretirement benefit plans totaling $4.5 million and $6.6 million during the three and six months ended June 30, 2015, respectively, as compared to $2.0 million and $4.1 million in the three and six months ended June 30, 2014, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 – COMMITMENTS AND CONTINGENCIES Investigations and Litigation Berlin Station Our subsidiary, Babcock & Wilcox Construction Co., Inc. (“BWCC”), is currently in a dispute with a customer in connection with a 75MW biomass-energy power plant that BWCC designed and built in Berlin, New Hampshire. The dispute primarily concerns material claims by BWCC against its customer for contract changes relating to schedule delays, delay costs, extra work, withheld payments, improper draws on letters of credit, withheld contract-retention amounts, as well as fraud and misrepresentation. The customer has made nine partial draws totaling approximately $11.0 million under letters of credit that were outstanding in connection with the project. These draws correspond to a total of approximately $11.9 million in alleged liquidated damages for delay (“Delay LDs”) on the project. Following the customer’s denial of BWCC’s change order request relating to schedule delays, delay costs and extra work incurred up to that time, on January 16, 2014, BWCC filed suit against the customer in the Court of Common Pleas, Summit County, Ohio, Case No. 2014 01 0208, seeking damages in excess of $37 million (the “Ohio suit”). On or about January 30, 2014, BWCC’s customer filed suit against BWCC in the Superior Court of Coos County, New Hampshire, Case No. 214-2014-CV-14 alleging breach of contract and seeking unspecified amounts (the “New Hampshire suit”) which was subsequently transferred to the New Hampshire business/commercial court division. On June 26, 2014, the Ohio suit was dismissed on jurisdictional and forum non conveniens grounds. On August 29, 2014, BWCC filed its Answer, Affirmative Defenses and Counterclaim in the New Hampshire suit seeking recovery of damages. Damages claimed and incurred to date are at least $70 million in connection with all matters currently in dispute. Given the customer’s prior wrongful acts, there is a risk that the customer will attempt to call all or part of the remaining $21.9 million of letters of credit during the pendency of this matter. We believe any such call would be wrongful and entitle us to a return of the funds drawn and other damages. We have made provisions in our financial statements as disclosed in Note 1 for Delay LDs called to date against the letters of credit and have not recorded offsetting claims revenue related to these calls in our financial statements. We believe BWCC has sound legal and factual bases for its claims. BWCC intends to aggressively pursue recovery on its claims, including recovery of the wrongful calls against BWCC’s letters of credit. However, it is premature to predict the outcome of this matter. The litigation could be lengthy, and if BWCC’s customer were to prevail completely or substantially in this matter, the outcome could have a material adverse effect on our financial statements. ARPA On February 28, 2014, Arkansas River Power Authority (“ARPA”) filed suit against Babcock & Wilcox Power Generation Group, Inc. (“PGG OpCo”) in the United States District Court for the District of Colorado (Case No. 14-cv-00638-CMA-NYW) alleging breach of contract, negligence, fraud and other claims arising out of PGG OpCo’s delivery of a circulating fluidized bed (“CFB”) boiler and related equipment used in the Lamar Repowering Project pursuant to a 2005 contract. In 2009, PGG OpCo informed ARPA that the boiler would require a selective non-catalytic reduction system in order to achieve contractual emissions guarantees, which PGG OpCo supplied in 2010. PGG OpCo recommended additional modifications in 2011 and 2012 to ensure the boiler would meet contractual emissions guarantees; however, ARPA has not installed all of the recommended modifications. ARPA has not confirmed whether it intends to complete and commission the Lamar plant. On April 16, 2014, PGG OpCo filed an Answer asserting numerous defenses, including waiver, prevention of performance and failure to mitigate damages and Counterclaims alleging bad faith, breach of contract and unjust enrichment. ARPA filed an Answer to the Counterclaims on May 7, 2014. The District Court granted leave for ARPA to amend its Complaint, and ARPA’s First Amended Complaint was accepted on March 20, 2015. PGG OpCo filed its Answer to the First Amended Complaint on April 1, 2015. Discovery is ongoing and a trial date has not been set. We believe that ARPA has asserted damages theories that are highly speculative and without legal or economic support as a litigation tactic. We also believe most of the alleged damages are expressly waived and/or capped in enforceable provisions of the 2005 contract. We cannot estimate the possible loss at this time. However, in addition to establishing other relevant sub-caps and including an explicit waiver of a broad range of damages, including consequential damages, the 2005 contract provides an overall cap of liability at the original contract price of approximately $20.5 million. ARPA has alleged various theories of possible liability and damages that would lead to vastly different measures of damages, making it impracticable to estimate a range of possible outcomes; however, ARPA’s damage claims total approximately $170 million. PGG OpCo does not believe it is probable that ARPA will be successful in any of its claims. PGG OpCo believes it has strong defenses and intends to aggressively defend this matter and pursue its counterclaims. However, if ARPA were to prevail on all or any significant portion of its claims in this matter, the outcome could have a material adverse effect on our financial condition. Other Litigation and Settlements On December 17, 2014, an unfavorable jury verdict was delivered against BWC, PGG OpCo, Babcock & Wilcox Nuclear Energy, Inc. (a subsidiary of BWC that is not part of BW), and Babcock & Wilcox Canada Ltd (a BWC subsidiary that is not part of BW) (collectively, the “BWC Parties”) in a case entitled AREVA NP, INC. f/k/a Framatome ANP, Inc. v. The Babcock & Wilcox Company, et. al. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 8 – DERIVATIVE FINANCIAL INSTRUMENTS Our global operations give rise to exposure to market risks from changes in foreign currency exchange (“FX”) rates. We use derivative financial instruments, primarily FX forward contracts, to reduce the impact of changes in FX rates on our operating results. We use these instruments primarily to hedge our exposure associated with revenues or costs on our long-term contracts that are denominated in currencies other than our operating entities’ functional currencies. We do not hold or issue derivative financial instruments for trading or other speculative purposes. We enter into derivative financial instruments primarily as hedges of certain firm purchase and sale commitments denominated in foreign currencies. We record these contracts at fair value on our condensed consolidated and combined balance sheets. Depending on the hedge designation at the inception of the contract, the related gains and losses on these contracts are either deferred in stockholders’ equity as a component of accumulated other comprehensive income until the hedged item is recognized in earnings, or offset against the change in fair value of the hedged firm commitment through earnings. Any ineffective portion of a derivative’s change in fair value and any portion excluded from the assessment of effectiveness are immediately recognized in other – net on our condensed consolidated and combined statements of operations. The gain or loss on a derivative instrument not designated as a hedging instrument is also immediately recognized in earnings as a component of other– net in our condensed consolidated and combined statements of operations. We have designated all of our FX forward contracts that qualify for hedge accounting as cash flow hedges. The hedged risk is the risk of changes in functional-currency-equivalent cash flows attributable to changes in FX spot rates of forecasted transactions related to long-term contracts. We exclude from our assessment of effectiveness the portion of the fair value of the forward contracts attributable to the difference between FX spot rates and FX forward rates. At June 30, 2015, we had deferred approximately $0.3 million of net losses on these derivative financial instruments in accumulated other comprehensive income. Assuming market conditions continue, we expect to recognize substantially all of this amount in the next twelve months. At June 30, 2015, our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $114.3 million at June 30, 2015, with maturities extending to August 30, 2017. These instruments consist primarily of contracts to purchase or sell euros. We are exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. We attempt to mitigate this risk by using major financial institutions with high credit ratings. The counterparties to all of our FX forward contracts are financial institutions included in our credit facility. Our hedge counterparties have the benefit of the same collateral arrangements and covenants as described under our credit facility. The effect of counterparty non-performance on the fair value of derivative financial instruments included in our financial statements is not material. The following tables summarize our derivative financial instruments at June 30, 2015 and December 31, 2014: Asset and Liability Derivatives June 30, December 31, 2015 2014 (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable-other $ 132 $ 88 Other assets 6 — Accounts payable 8 89 Other liabilities 7 — Derivatives Not Designated as Hedges: FX Forward Contracts: Location Accounts receivable-other $ 374 $ 175 Other assets 8 — Accounts payable — 284 The effects of derivatives on our financial statements are outlined below: The Effects of Derivative Instruments on our Financial Statements Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain (loss) recognized in other comprehensive income $ (3,382 ) $ (61 ) $ (455 ) $ (52 ) Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion Location Revenues $ (40 ) $ 13 $ 22 $ 23 Cost of operations (2 ) (5 ) 98 (5 ) Other-net (33 ) — (32 ) — Gain (loss) recognized in income: portion excluded from effectiveness testing Location Other-net $ (136 ) $ (462 ) $ 1,009 $ (174 ) Derivatives Not Designated as Hedges: FX Forward Contracts: Gain (loss) recognized in income Location Other-net $ 181 $ 211 $ 398 $ 278 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 9 – FAIR VALUE MEASUREMENTS Investments The following is a summary of our available-for-sale securities measured at fair value at June 30, 2015 (in thousands): 6/30/15 Level 1 Level 2 Level 3 Commercial paper $ 3,598 $ — $ 3,598 $ — Certificates of deposit 1,500 — 1,500 — Mutual funds 1,111 — 1,111 — Total $ 6,209 $ — $ 6,209 $ — The following is a summary of our available-for-sale securities measured at fair value at December 31, 2014 (in thousands): 12/31/14 Level 1 Level 2 Level 3 Commercial paper $ 1,607 $ — $ 1,607 $ — Asset-backed securities and collateralized mortgage obligations 214 — 214 — Total $ 1,821 $ — $ 1,821 $ — We estimate the fair value of investments based on quoted market prices. For investments for which there are no quoted market prices, we derive fair values from available yield curves for investments of similar quality and terms. Derivatives Level 2 derivative assets and liabilities currently consist of FX forward contracts. Where applicable, the value of these derivative assets and liabilities is computed by discounting the projected future cash flow amounts to present value using market-based observable inputs, including FX forward and spot rates, interest rates and counterparty performance risk adjustments. At June 30, 2015 and December 31, 2014, we had forward contracts outstanding to purchase or sell foreign currencies, primarily euros, with a total fair value of $0.5 million and $(0.1) million, respectively. Other Financial Instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments, as follows: Cash and cash equivalents and restricted cash and cash equivalents Long-term and short-term debt |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 10 – STOCK-BASED COMPENSATION Prior to the spin-off, executive officers, key employees, members of the board of directors and consultants of BW were eligible to participate in the 2010 Long-Term Incentive Plan of The Babcock & Wilcox Company (the “BWC Plan”). Effective June 30, 2015, executive officers, key employees, members of the board of directors and consultants of BW will be eligible to participate in the 2015 Long-Term Incentive Plan of Babcock & Wilcox Enterprises, Inc. (the “Plan”). The Plan permits grants of nonqualifed stock options, incentive stock options, appreciation rights, restricted stock, restricted stock units, performance shares, performance units, and cash incentive awards. The number of shares available for award grants under the Plan totals 5,800,000. In connection with the spin-off, outstanding stock options and restricted stock units granted under the BWC Plan prior to 2015 will be replaced with both an adjusted BWC award and a new BW stock award. These awards, when combined, will have terms that were intended to preserve the values of the original awards. Outstanding performance share awards originally issued under the BWC Plan granted prior to 2015 will generally be converted into unvested rights to receive the value of deemed target performance in unrestricted shares of a combination of BWC common stock and BW common stock, determined by reference to the ratio of one share of BW common stock being distributed for every two shares of BWC common stock in the spin-off, in each case with the same vesting terms as the original awards. Total stock-based compensation expense for all of our plans recognized for the three and six months ended June 30, 2015 totaled $1.2 million and $2.0 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2015 totaling $0.4 million and $0.7 million, respectively. Total stock-based compensation expense for all of our plans recognized for the three and six months ended June 30, 2014 totaled $0.7 million and $0.8 million, respectively, with associated tax benefit recognized for the three and six months ended June 30, 2014 totaling $0.3 million. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 11 – SEGMENT REPORTING As described in Note 1, our operations are assessed based on three reportable segments. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) REVENUES: Global Power $ 157,373 $ 109,693 $ 281,259 $ 219,985 Global Services 236,720 214,086 468,894 415,872 Industrial Environmental 43,392 3,600 84,487 3,600 $ 437,485 $ 327,379 $ 834,640 $ 639,457 GROSS PROFIT: Global Power $ 26,676 $ 19,472 $ 47,104 $ 34,719 Global Services 46,308 48,356 99,595 89,960 Industrial Environmental 8,900 1,200 18,582 1,200 81,884 69,028 165,281 125,879 Research and development costs (3,962 ) (4,281 ) (8,480 ) (8,293 ) Losses on asset disposals and impairments, net (9,009 ) (1,457 ) (9,027 ) (1,457 ) Selling, general and administrative expenses (59,709 ) (53,040 ) (116,802 ) (102,252 ) Special charges for restructuring activities (5,312 ) (7,513 ) (7,666 ) (8,991 ) Equity in income of investees 967 433 (1,104 ) 2,799 Total Operating Income $ 4,859 $ 3,170 $ 22,202 $ 7,685 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 12 – EARNINGS PER SHARE On June 30, 2015, 53,719,878 shares of our common stock were distributed to BWC shareholders to complete our spin-off transaction. The basic and diluted weighted average shares outstanding were based on the weighted average number of BWC common shares outstanding for the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014 adjusted for a distribution ratio of one share of BW common stock for every two shares of BWC common stock. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Unaudited) (In thousands, except per share amounts) Amounts attributable to Babcock & Wilcox Enterprises, Inc. Income from continuing operations $ 4,069 $ 1,539 $ 15,373 $ 8,686 Income from discontinued operations, net of tax 1,418 3,397 2,803 7,339 Net income attributable to Babcock & Wilcox Enterprises, Inc. $ 5,487 $ 4,936 $ 18,176 $ 16,025 Weighted average common shares used to calculate basic earnings per common share 53,560 54,883 53,474 55,051 Effect of dilutive securities: Stock options, restricted stock and performance shares (1) 227 175 206 200 Weighted average common shares used to calculate diluted earnings per common share 53,787 55,058 53,680 55,251 Basic earnings per common share: Continuing operations $ 0.08 $ 0.03 $ 0.29 $ 0.16 Discontinued operations 0.02 0.06 0.05 0.13 Basic earnings per common share $ 0.10 $ 0.09 $ 0.34 $ 0.29 Diluted earnings per common share: Continuing operations $ 0.07 0.03 $ 0.29 0.16 Discontinued operations 0.03 0.06 0.05 0.13 Diluted earnings per common share $ 0.10 $ 0.09 $ 0.34 $ 0.29 (1) At June 30, 2015 and 2014, we have excluded from our diluted share calculation 1,204,003 and 686,544 shares respectively, related to stock options, as their effect would have been antidilutive. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13 – RELATED PARTY TRANSACTIONS In connection with the spin-off, BWC changed its name to BWX Technologies, Inc. We are a party to transactions with our former Parent and its subsidiaries in the normal course of operations. These transactions include the following: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Sales to our former Parent $ (286 ) $ (1,312 ) $ (911 ) $ (4,220 ) Corporate administrative expense $ 17,332 $ 18,332 $ 35,343 $ 36,664 Guarantees As of June 30, 2015, our former Parent has outstanding performance guarantees for various projects executed by us. These projects are all in the normal course of business. These guarantees, based on original contract value, total $1,670.3 million and range in expiration dates from 2015 to 2035. We are contractually obligated to use our commercially reasonable efforts to terminate all existing guarantees by one party of obligations relating to the business of the other party, including financial performance and other guarantee obligations. Net transfers (to) from former Parent Net transfers (to) from former Parent represent the change in our former Parent’s historical investment in us. It primarily includes the net effect of cost allocations from transactions with our former Parent, sales to our former Parent, and the net transfers of cash and assets to our former Parent. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Sales to former Parent $ (286 ) $ (1,312 ) $ (911 ) $ (4,220 ) Corporate administrative expenses 17,332 18,332 35,343 36,664 Income tax allocation 7,441 (2,439 ) 11,872 (6,484 ) Acquisition of business, net of cash acquired — 127,704 — 127,704 Cash pooling and general financing activities (44,129 ) 16,584 (91,015 ) 61,598 Cash contribution received at spin-off 125,300 — 125,300 — Net transfer from former Parent per statement of cash flows $ 105,658 $ 158,869 $ 80,589 $ 215,262 Non-cash items: Net transfer of assets and liabilities 44,706 — 44,706 — Distribution of Nuclear Energy segment (47,839 ) — (47,839 ) — Net transfer from former Parent per statement of shareholders’ equity $ 102,525 $ 158,869 $ 77,456 $ 215,262 |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Reporting Segments | Reporting Segments We operate in three reportable segments: Global Power, Global Services and Industrial Environmental. Our reportable segments are further described as follows: • Our Global Power segment represents our worldwide new build boiler and environmental products operations. Through this segment, we engineer, manufacture, procure, construct and commission steam generating and environmental systems and other related equipment. Our boilers are designed for utility and industrial applications, fired with fossil and renewable fuels and include advanced supercritical boilers, subcritical boilers, fluidized bed boilers, biomass-fired boilers, waste-to-energy boilers, chemical recovery boilers, industrial power boilers, package boilers, heat recovery steam generators, waste heat boilers and solar thermal power systems. Our environmental systems offer air pollution control systems and related equipment for the treatment of nitrogen oxides, sulfur dioxide, fine particulate, mercury, acid gases and other hazardous air emissions and include wet and dry flue gas desulfurization systems, catalytic and non-catalytic nitrogen oxides reduction systems, low nitrogen oxides burners and overfire air systems, fabric filter baghouses, wet and dry electrostatic precipitators, mercury control systems and dry sorbent injection for acid gas mitigation. Our customers consist of a wide range of utilities, independent power producers and industrial companies globally. • Our Global Services segment provides a comprehensive mix of aftermarket products and services to support peak efficiency and availability of steam generating and associated environmental and auxiliary equipment for power generation. Our products and services include replacement parts, field technical services, retrofit and upgrade projects, fuel switching and repowering projects, construction and maintenance services, start-up and commissioning, training programs and plant operations and maintenance for our full complement of boiler, environmental and auxiliary equipment. We deliver these aftermarket products and services to a large installed base for our and our competitors’ power generation and industrial plants globally through our extensive network of regionally located service centers, technical support personnel, and global sourcing capabilities. Our customers consist of a wide range of utilities, independent power producers and industrial companies globally. • Our Industrial Environmental segment provides environmental products and services to numerous industrial end markets through Babcock & Wilcox MEGTEC Holdings, Inc. (“MEGTEC”), which we acquired on June 20, 2014. Through this segment, we design, engineer and manufacture products including oxidizers, solvent and distillation systems, wet and dry electrostatic precipitators, fabric filter baghouses, scrubbers and heat recovery systems. The segment also provides specialized industrial process systems, coating lines and equipment. Our suite of technologies for pollution abatement include systems that control volatile organic compounds and air toxins, particulate, nitrogen oxides and acid gas air emissions from industrial processes. We serve a diverse set of industrial end markets with a current emphasis on the chemical, pharmaceutical, energy storage, packaging and automotive markets. See Note 11 for further information regarding our segments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the combined financial statements and the related footnotes included in the Form 10. |
Contracts and Revenue Recognition | Contracts and Revenue Recognition We generally recognize contract revenues and related costs on a percentage-of-completion method for individual contracts or combinations of contracts based on work performed, man hours or a cost-to-cost method, as applicable to the product or activity involved. We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress completion as a percentage of the total project. Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for materials and major third-party subcontractors, if it appears that such exclusion would result in a more meaningful measurement of actual contract progress and resulting periodic allocation of income. We include revenues and related costs so recorded, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in contracts in progress. We include in advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized under the percentage-of-completion method. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. For contracts as to which we are unable to estimate the final profitability except to assure that no loss will ultimately be incurred, we recognize equal amounts of revenue and cost until the final results can be estimated more precisely. For these deferred profit recognition contracts, we recognize revenue and cost equally and only recognize gross margin when probable and reasonably estimable, which we generally determine to be when the contract is approximately 70% complete. We treat long-term construction contracts that contain such a level of risk and uncertainty that estimation of the final outcome is impractical, except to assure that no loss will be incurred, as deferred profit recognition contracts. Our policy is to account for fixed-price contracts under the completed-contract method if we believe that we are unable to reasonably forecast cost to complete at start-up. Under the completed-contract method, income is recognized only when a contract is completed or substantially complete. For parts orders and certain aftermarket services activities, we recognize revenues as goods are delivered and work is performed. Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We include claims for extra work or changes in scope of work to the extent of costs incurred in contract revenues when we believe collection is probable. At June 30, 2015 and December 31, 2014, we recognized accrued claims totaling $10.1 million and $8.2 million, respectively. In the three and six months ended June 30, 2014, we recorded a contract loss totaling approximately $4.0 million and $11.6 million, respectively, based on our estimated costs to complete our Global Power segment’s Berlin Station project. We previously asserted that substantial completion had been achieved on this project in early 2014 and that any further delays to complete this project were the result of the customer’s failure to supply fuel complying with the contract specifications. The customer certified that we achieved substantial completion on this project effective July 19, 2014, following which the customer has no further claims for liquidated damages associated with delays. See Note 7 for legal proceedings associated with this matter. |
Comprehensive Income | Comprehensive Income The components of accumulated other comprehensive income included in stockholders’ equity are as follows: June 30, December 31, 2015 2014 (In thousands) Currency translation adjustments $ (8,781 ) $ 11,551 Net unrealized gain on investments (10 ) (22 ) Net unrealized gain on derivative financial instruments (327 ) (123 ) Unrecognized prior service cost on benefit obligations (1,289 ) (1,032 ) Accumulated other comprehensive income (loss) $ (10,407 ) $ 10,374 The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated and combined statements of operations line items are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Accumulated Other Comprehensive Income Component Recognized (In thousands) Line Item Presented Realized (losses) gains on derivative financial instruments $ (40 ) $ 13 $ 22 $ 23 Revenues (2 ) (5 ) 98 (5 ) Cost of operations (33 ) — (32 ) — Other-net (75 ) 8 88 18 Total before tax 23 (2 ) (5 ) (4 ) Provision for Income Taxes (52 ) 6 83 14 Net Income Amortization of prior service cost on benefit obligations (100 ) (125 ) (200 ) (250 ) Cost of operations 37 50 80 100 Provision for Income Taxes (63 ) (75 ) (120 ) (150 ) Net Income Realized gain on investments (2 ) — (3 ) 15 Other-net 1 — 1 (5 ) Provision for Income Taxes (1 ) — (2 ) 10 Net Income Total reclassifications for the period $ (116 ) $ (69 ) $ (39 ) $ (126 ) |
Inventories | Inventories The components of inventories are as follows: June 30, December 31, 2015 2014 (In thousands) Raw materials and supplies $ 69,680 $ 71,604 Work in progress 8,381 9,831 Finished goods 19,052 17,276 Total inventories $ 97,113 $ 98,711 |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents At June 30, 2015, we had restricted cash and cash equivalents totaling $35.5 million, $4.1 million of which was held in restricted foreign cash accounts and $31.4 million of which was held to meet reinsurance reserve requirements of our captive insurer in lieu of long-term investments. |
Goodwill | Goodwill The following summarizes the changes in the carrying amount of goodwill: Global Power Global Services Industrial Total (In thousands) Balance at December 31, 2014 $ 37,991 $ 62,486 $ 108,800 $ 209,277 Final purchase price allocation for MEGTEC — — (4,492 ) (4,492 ) Foreign currency translation adjustments and other (902 ) (1,485 ) — (2,387 ) Balance at June 30, 2015 $ 37,089 $ 61,001 $ 104,308 $ 202,398 |
Warranty Expense | Warranty Expense We accrue estimated expense included in cost of operations on our condensed consolidated and combined statements of operations to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. The following summarizes the changes in the carrying amount of our accrued warranty expense: Six Months Ended June 30, 2015 2014 (In thousands) Balance at beginning of period $ 37,735 $ 38,968 Additions 8,432 4,774 Acquisition of MEGTEC — 4,692 Expirations and other changes (202 ) (2,234 ) Payments (8,535 ) (4,549 ) Translation and other (435 ) — Balance at end of period $ 36,995 $ 41,651 |
Research and Development | Research and Development Our research and development activities are related to the development and improvement of new and existing products and equipment, as well as conceptual and engineering evaluation for translation into practical applications. We charge research and development costs unrelated to specific contracts as they are incurred. Research and development activities totaled $4.0 million and $4.3 million in the three months ended June 30, 2015 and 2014, respectively, and $8.5 million and $8.3 million in the six months ended June 30, 2015 and 2014, respectively. In the three months ended June 30, 2015, we recognized a $9.0 million impairment charge primarily related to research and development facilities and equipment dedicated to a carbon capture process that was determined during the quarter ended June 30, 2015 to not be commercially viable. The impairment is included in losses on asset disposals and impairments, net. |
Provision for Income Taxes | Provision for Income Taxes We are subject to U.S. federal income tax and income tax of multiple state and international jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to changes in our effective tax rate from period to period. We classify interest and penalties related to taxes (net of any applicable tax benefit) as a component of provision for income taxes on our condensed consolidated and combined statements of operations. Our effective tax rate for the three months ended June 30, 2015 was approximately 18.2% as compared to 53.3% for the three months ended June 30, 2014. Our effective tax rate for the three months ended June 30, 2015 was lower than our statutory rate primarily due to the jurisdictional mix of our income. Our effective tax rate for the three months ended June 30, 2014 was higher than our statutory rate primarily due to the jurisdictional mix of income as well as the favorable impact of an increase in benefits for amended federal manufacturing deductions and certain amended state return filings, offset by an increase to a valuation allowance against certain state deferred tax assets. Our effective tax rate for the six months ended June 30, 2015 was approximately 29.9% as compared to 8.6% for the six months ended June 30, 2014. Our effective tax rate for the six months ended June 30, 2015 was lower than our statutory rate primarily due to the jurisdictional mix of our income. Our effective tax rate for the six months ended June 30, 2014 was lower than our statutory rate primarily due to the receipt of a favorable ruling from the Internal Revenue Service that allowed us to amend prior year U.S. income tax returns to exclude distributions of certain of our foreign joint ventures from domestic taxable income. As of June 30, 2015, we have gross unrecognized tax benefits of $2.4 million, which, if recognized, would lower our effective tax rate from continuing operations. |
New Accounting Standards | New Accounting Standards In April 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This revised guidance is effective retrospectively for annual reporting periods beginning after December 15, 2015, and related interim periods with early adoption permitted. We are currently evaluating the impact of this standard. In April 2015, the FASB issued ASU 2015-05 – Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. The objective of this ASU is to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. This update is effective prospectively for annual periods, including interim periods within those annual periods, beginning after December 15, 2015 with early adoption permitted. We are currently evaluating the impact of this standard. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). This ASU permits a reporting entity to measure the fair value of certain investments using the net asset value per share of the investment. This update is effective retrospectively for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We are currently evaluating the impact of this standard. |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income | Comprehensive Income The components of accumulated other comprehensive income included in stockholders’ equity are as follows: June 30, December 31, 2015 2014 (In thousands) Currency translation adjustments $ (8,781 ) $ 11,551 Net unrealized gain on investments (10 ) (22 ) Net unrealized gain on derivative financial instruments (327 ) (123 ) Unrecognized prior service cost on benefit obligations (1,289 ) (1,032 ) Accumulated other comprehensive income (loss) $ (10,407 ) $ 10,374 |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | The amounts reclassified out of accumulated other comprehensive income by component and the affected condensed consolidated and combined statements of operations line items are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Accumulated Other Comprehensive Income Component Recognized (In thousands) Line Item Presented Realized (losses) gains on derivative financial instruments $ (40 ) $ 13 $ 22 $ 23 Revenues (2 ) (5 ) 98 (5 ) Cost of operations (33 ) — (32 ) — Other-net (75 ) 8 88 18 Total before tax 23 (2 ) (5 ) (4 ) Provision for Income Taxes (52 ) 6 83 14 Net Income Amortization of prior service cost on benefit obligations (100 ) (125 ) (200 ) (250 ) Cost of operations 37 50 80 100 Provision for Income Taxes (63 ) (75 ) (120 ) (150 ) Net Income Realized gain on investments (2 ) — (3 ) 15 Other-net 1 — 1 (5 ) Provision for Income Taxes (1 ) — (2 ) 10 Net Income Total reclassifications for the period $ (116 ) $ (69 ) $ (39 ) $ (126 ) |
Inventories | The components of inventories are as follows: June 30, December 31, 2015 2014 (In thousands) Raw materials and supplies $ 69,680 $ 71,604 Work in progress 8,381 9,831 Finished goods 19,052 17,276 Total inventories $ 97,113 $ 98,711 |
Changes in Carrying Amount of Goodwill | The following summarizes the changes in the carrying amount of goodwill: Global Power Global Services Industrial Total (In thousands) Balance at December 31, 2014 $ 37,991 $ 62,486 $ 108,800 $ 209,277 Final purchase price allocation for MEGTEC — — (4,492 ) (4,492 ) Foreign currency translation adjustments and other (902 ) (1,485 ) — (2,387 ) Balance at June 30, 2015 $ 37,089 $ 61,001 $ 104,308 $ 202,398 |
Summary of Changes in Carrying Amount of Accrued Warranty Expense | The following summarizes the changes in the carrying amount of our accrued warranty expense: Six Months Ended June 30, 2015 2014 (In thousands) Balance at beginning of period $ 37,735 $ 38,968 Additions 8,432 4,774 Acquisition of MEGTEC — 4,692 Expirations and other changes (202 ) (2,234 ) Payments (8,535 ) (4,549 ) Translation and other (435 ) — Balance at end of period $ 36,995 $ 41,651 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Allocation Including Finalization of Asset Valuations | Our purchase price allocation, finalized in the second quarter of 2015, is as follows: MEGTEC (in thousands) Unrestricted cash $ 14,232 Accounts receivable 23,054 Inventories 5,395 Other current assets 6,326 Property, plant and equipment 13,348 Goodwill 104,308 Intangible assets 43,150 Total assets acquired 209,813 Accounts payable 13,402 Advance billings on contracts 11,144 Other current liabilities 18,089 Pension liability 5,041 Deferred income taxes 4,994 Other liabilities 130 Total liabilities assumed 52,800 Net assets acquired 157,013 Unrestricted cash acquired 14,232 Net assets acquired, net of unrestricted cash acquired $ 142,781 Amount of tax deductible goodwill $ 34,583 |
Summary of Intangible Assets Acquired | The intangible assets included above consist of the following (dollar amounts in thousands): Amount Amortization Period Customer relationships $ 23,500 8 years Backlog 10,400 1 year Trade names / trademarks 6,000 11 years Developed technology 3,250 5 years |
Summary of Unaudited Pro Forma Financial Information | The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2013. This information should not be taken as representative of our future consolidated results of operations. Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Revenues $ 364,346 $ 719,789 Net Income Attributable to Babcock & Wilcox Enterprises, Inc. $ 7,014 $ 19,213 Basic Earnings per Common Share $ 0.13 $ 0.34 Diluted Earnings per Common Share $ 0.13 $ 0.34 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information Regarding Results of Operations | The following table presents selected financial information regarding the results of operations of our former NE segment: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Revenues $ 30,377 $ 32,335 $ 53,064 $ 68,149 Income before provision for income taxes 1,743 4,063 3,358 10,218 Provision for income taxes 325 666 555 2,879 Income from discontinued operations, net of tax $ 1,418 $ 3,397 $ 2,803 $ 7,339 |
Carrying Values of Major Accounts of Discontinued Operations Included in Condensed Consolidated and Combined Balance Sheet | The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 condensed consolidated and combined balance sheet: December 31, 2014 (in thousands) Current Assets: Cash and cash equivalents $ 426 Accounts receivable – trade, net 14,041 Accounts receivable – other 1,411 Contracts in progress 22,953 Inventories 1,306 Deferred income taxes 48 Other current assets 5,992 Total current assets of discontinued operations 46,177 Net property, plant and equipment 23,721 Goodwill 10,055 Deferred income taxes 2,375 Intangible assets 980 Other assets 1,697 Total assets of discontinued operations $ 85,005 Current Liabilities: Accounts payable $ 7,954 Accrued employee benefits 7,895 Advance billings on contracts 5,475 Accrued warranty expense 5,469 Accrued liabilities – other 17,352 Total current liabilities of discontinued operations 44,145 Accumulated postretirement benefit obligation 7,835 Pension liability 7,082 Other liabilities 1,071 Total liabilities of discontinued operations $ 60,133 |
Special Charges for Restructu26
Special Charges for Restructuring Activities and Spin-Off Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Changes in Restructuring Liabilities | An analysis of our restructuring liabilities for the six months ended June 30, 2015 and 2014 follows: Six months ended June 30, June 30, 2015 2014 (In thousands) Balance at the beginning of the period $ 5,086 $ 5,213 Special charges for restructuring activities (1) 1,199 7,124 Payments (4,102 ) (5,727 ) Balance at the end of the period $ 2,183 $ 6,610 (1) Excludes non-cash charges of $6.5 million and $1.9 million for the six months ended June 30, 2015 and 2014, respectively, which did not impact the restructuring liability. |
Pension Plans and Postretirem27
Pension Plans and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost included in net income are as follows: Pension Benefits Other Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 2015 2014 2015 2014 (In thousands) Service cost $ 3,384 $ 3,242 $ 6,774 $ 6,481 $ — $ — $ — $ — Interest cost 11,911 12,818 23,764 25,604 249 255 499 503 Expected return on plan assets (16,677 ) (15,857 ) (33,355 ) (31,710 ) — — — — Amortization of prior service cost (credit) 100 125 200 250 — — — — Net periodic benefit cost $ (1,282 ) $ 328 $ (2,617 ) $ 625 $ 249 $ 255 $ 499 $ 503 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments at June 30, 2015 and December 31, 2014: Asset and Liability Derivatives June 30, December 31, 2015 2014 (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable-other $ 132 $ 88 Other assets 6 — Accounts payable 8 89 Other liabilities 7 — Derivatives Not Designated as Hedges: FX Forward Contracts: Location Accounts receivable-other $ 374 $ 175 Other assets 8 — Accounts payable — 284 |
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | The effects of derivatives on our financial statements are outlined below: The Effects of Derivative Instruments on our Financial Statements Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain (loss) recognized in other comprehensive income $ (3,382 ) $ (61 ) $ (455 ) $ (52 ) Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion Location Revenues $ (40 ) $ 13 $ 22 $ 23 Cost of operations (2 ) (5 ) 98 (5 ) Other-net (33 ) — (32 ) — Gain (loss) recognized in income: portion excluded from effectiveness testing Location Other-net $ (136 ) $ (462 ) $ 1,009 $ (174 ) Derivatives Not Designated as Hedges: FX Forward Contracts: Gain (loss) recognized in income Location Other-net $ 181 $ 211 $ 398 $ 278 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Available-for-Sale Securities Measured at Fair Value | The following is a summary of our available-for-sale securities measured at fair value at June 30, 2015 (in thousands): 6/30/15 Level 1 Level 2 Level 3 Commercial paper $ 3,598 $ — $ 3,598 $ — Certificates of deposit 1,500 — 1,500 — Mutual funds 1,111 — 1,111 — Total $ 6,209 $ — $ 6,209 $ — The following is a summary of our available-for-sale securities measured at fair value at December 31, 2014 (in thousands): 12/31/14 Level 1 Level 2 Level 3 Commercial paper $ 1,607 $ — $ 1,607 $ — Asset-backed securities and collateralized mortgage obligations 214 — 214 — Total $ 1,821 $ — $ 1,821 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | As described in Note 1, our operations are assessed based on three reportable segments. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) REVENUES: Global Power $ 157,373 $ 109,693 $ 281,259 $ 219,985 Global Services 236,720 214,086 468,894 415,872 Industrial Environmental 43,392 3,600 84,487 3,600 $ 437,485 $ 327,379 $ 834,640 $ 639,457 GROSS PROFIT: Global Power $ 26,676 $ 19,472 $ 47,104 $ 34,719 Global Services 46,308 48,356 99,595 89,960 Industrial Environmental 8,900 1,200 18,582 1,200 81,884 69,028 165,281 125,879 Research and development costs (3,962 ) (4,281 ) (8,480 ) (8,293 ) Losses on asset disposals and impairments, net (9,009 ) (1,457 ) (9,027 ) (1,457 ) Selling, general and administrative expenses (59,709 ) (53,040 ) (116,802 ) (102,252 ) Special charges for restructuring activities (5,312 ) (7,513 ) (7,666 ) (8,991 ) Equity in income of investees 967 433 (1,104 ) 2,799 Total Operating Income $ 4,859 $ 3,170 $ 22,202 $ 7,685 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Unaudited) (In thousands, except per share amounts) Amounts attributable to Babcock & Wilcox Enterprises, Inc. Income from continuing operations $ 4,069 $ 1,539 $ 15,373 $ 8,686 Income from discontinued operations, net of tax 1,418 3,397 2,803 7,339 Net income attributable to Babcock & Wilcox Enterprises, Inc. $ 5,487 $ 4,936 $ 18,176 $ 16,025 Weighted average common shares used to calculate basic earnings per common share 53,560 54,883 53,474 55,051 Effect of dilutive securities: Stock options, restricted stock and performance shares (1) 227 175 206 200 Weighted average common shares used to calculate diluted earnings per common share 53,787 55,058 53,680 55,251 Basic earnings per common share: Continuing operations $ 0.08 $ 0.03 $ 0.29 $ 0.16 Discontinued operations 0.02 0.06 0.05 0.13 Basic earnings per common share $ 0.10 $ 0.09 $ 0.34 $ 0.29 Diluted earnings per common share: Continuing operations $ 0.07 0.03 $ 0.29 0.16 Discontinued operations 0.03 0.06 0.05 0.13 Diluted earnings per common share $ 0.10 $ 0.09 $ 0.34 $ 0.29 (1) At June 30, 2015 and 2014, we have excluded from our diluted share calculation 1,204,003 and 686,544 shares respectively, related to stock options, as their effect would have been antidilutive. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Party Transactions | In connection with the spin-off, BWC changed its name to BWX Technologies, Inc. We are a party to transactions with our former Parent and its subsidiaries in the normal course of operations. These transactions include the following: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Sales to our former Parent $ (286 ) $ (1,312 ) $ (911 ) $ (4,220 ) Corporate administrative expense $ 17,332 $ 18,332 $ 35,343 $ 36,664 |
Schedule of Change in Our Former Parent's Historical Investment Due to Net Transfers (to) from Former Parent | Net transfers (to) from former Parent represent the change in our former Parent’s historical investment in us. It primarily includes the net effect of cost allocations from transactions with our former Parent, sales to our former Parent, and the net transfers of cash and assets to our former Parent. Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands) Sales to former Parent $ (286 ) $ (1,312 ) $ (911 ) $ (4,220 ) Corporate administrative expenses 17,332 18,332 35,343 36,664 Income tax allocation 7,441 (2,439 ) 11,872 (6,484 ) Acquisition of business, net of cash acquired — 127,704 — 127,704 Cash pooling and general financing activities (44,129 ) 16,584 (91,015 ) 61,598 Cash contribution received at spin-off 125,300 — 125,300 — Net transfer from former Parent per statement of cash flows $ 105,658 $ 158,869 $ 80,589 $ 215,262 Non-cash items: Net transfer of assets and liabilities 44,706 — 44,706 — Distribution of Nuclear Energy segment (47,839 ) — (47,839 ) — Net transfer from former Parent per statement of shareholders’ equity $ 102,525 $ 158,869 $ 77,456 $ 215,262 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Number of business segments | Segment | 3 | ||||
Revenue recognition, percentage of contract completion | 70.00% | ||||
Accrued claims recognized | $ 10,100 | $ 10,100 | $ 8,200 | ||
Contract losses | $ 4,000 | $ 11,600 | |||
Restricted cash and cash equivalents | 35,538 | 35,538 | $ 26,311 | ||
Research and development activities | $ 4,000 | $ 4,300 | $ 8,500 | $ 8,300 | |
Effective tax rate | 18.20% | 53.30% | 29.90% | 8.60% | |
Gross unrecognized tax benefits | $ 2,400 | $ 2,400 | |||
Restricted Foreign Cash [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | 4,100 | 4,100 | |||
Cash Held to Meet Reinsurance Reserve Requirements [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Restricted cash and cash equivalents | 31,400 | 31,400 | |||
Research and Development Facilities and Equipment [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Impairment charge | $ 9,000 | ||||
Restricted Cash [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Change in accounting estimate subsequent to contributions to new entity | (5,500) | ||||
Investment [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Change in accounting estimate subsequent to contributions to new entity | (500) | ||||
Other Assets [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Change in accounting estimate subsequent to contributions to new entity | $ (300) | ||||
Babcock and Wilcox Enterprises Inc [Member] | |||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||||
Spin off, common stock distribution percentage | 100.00% | ||||
Spin off, description of shares distributed | The distribution of BW common stock was made on June 30, 2015 and consisted of one share of BW common stock for every two shares of BWC common stock to holders |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Currency translation adjustments | $ (8,781) | $ 11,551 |
Net unrealized gain on investments | (10) | (22) |
Net unrealized gain on derivative financial instruments | (327) | (123) |
Unrecognized prior service cost on benefit obligations | (1,289) | (1,032) |
Accumulated other comprehensive income (loss) | $ (10,407) | $ 10,374 |
Basis of Presentation and Sig35
Basis of Presentation and Significant Accounting Policies - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 437,485 | $ 327,379 | $ 834,640 | $ 639,457 |
Cost of operations | (355,601) | (258,351) | (669,359) | (513,578) |
Other - net | 201 | 323 | (110) | 1,554 |
Income from continuing operations before provision for income taxes | 5,042 | 3,457 | 22,090 | 9,712 |
Provision for Income Taxes | (919) | (1,841) | (6,611) | (833) |
Net income | 5,541 | 5,013 | 18,282 | 16,218 |
Accumulated Other Comprehensive Income Component Recognized [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period | (116) | (69) | (39) | (126) |
Accumulated Other Comprehensive Income Component Recognized [Member] | Realized (Losses) Gains on Derivative Financial Instruments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | (40) | 13 | 22 | 23 |
Cost of operations | (2) | (5) | 98 | (5) |
Other - net | (33) | (32) | ||
Income from continuing operations before provision for income taxes | (75) | 8 | 88 | 18 |
Provision for Income Taxes | 23 | (2) | (5) | (4) |
Net income | (52) | 6 | 83 | 14 |
Accumulated Other Comprehensive Income Component Recognized [Member] | Recognition of Prior Service Cost on Benefit Obligations [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | (100) | (125) | (200) | (250) |
Provision for Income Taxes | 37 | 50 | 80 | 100 |
Net income | (63) | $ (75) | (120) | (150) |
Accumulated Other Comprehensive Income Component Recognized [Member] | Realized Gain on Investments [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other - net | (2) | (3) | 15 | |
Provision for Income Taxes | 1 | 1 | (5) | |
Net income | $ (1) | $ (2) | $ 10 |
Basis of Presentation and Sig36
Basis of Presentation and Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 69,680 | $ 71,604 |
Work in progress | 8,381 | 9,831 |
Finished goods | 19,052 | 17,276 |
Total inventories | $ 97,113 | $ 98,711 |
Basis of Presentation and Sig37
Basis of Presentation and Significant Accounting Policies - Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 209,277 |
Final purchase price allocation for MEGTEC | (4,492) |
Foreign currency translation adjustments and other | (2,387) |
Ending balance | 202,398 |
Global Power [Member] | |
Goodwill [Line Items] | |
Beginning balance | 37,991 |
Foreign currency translation adjustments and other | (902) |
Ending balance | 37,089 |
Global Services [Member] | |
Goodwill [Line Items] | |
Beginning balance | 62,486 |
Foreign currency translation adjustments and other | (1,485) |
Ending balance | 61,001 |
Industrial Environmental [Member] | |
Goodwill [Line Items] | |
Beginning balance | 108,800 |
Final purchase price allocation for MEGTEC | (4,492) |
Ending balance | $ 104,308 |
Basis of Presentation and Sig38
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Carrying Amount of Accrued Warranty Expense (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Standard Product Warranty Disclosure [Abstract] | ||
Balance at beginning of period | $ 37,735 | $ 38,968 |
Additions | 8,432 | 4,774 |
Acquisition of MEGTEC | 4,692 | |
Expirations and other changes | (202) | (2,234) |
Payments | (8,535) | (4,549) |
Translation and other | (435) | |
Balance at end of period | $ 36,995 | $ 41,651 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 20, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||
Payments to acquire business | $ 127,098 | ||
Elimination of acquisition related costs | $ 12,500 | 12,500 | |
Acquisition-related Costs [Member] | |||
Business Acquisition [Line Items] | |||
Elimination of historical interest expense | 600 | 900 | |
Acquisition-related Costs [Member] | Finite-Lived Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Increase (decrease) in amortization expense related to identifiable intangible assets | $ 800 | $ 1,300 | |
MEGTEC Holdings Inc [Member] | |||
Business Acquisition [Line Items] | |||
Payments to acquire business | $ 142,800 |
Acquisitions and Dispositions40
Acquisitions and Dispositions - Summary of Purchase Price Allocation Including Finalization of Asset Valuations (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $ 202,398 | $ 209,277 |
MEGTEC Holdings Inc [Member] | ||
Business Acquisition [Line Items] | ||
Unrestricted cash | 14,232 | |
Accounts receivable | 23,054 | |
Inventories | 5,395 | |
Other current assets | 6,326 | |
Property, plant and equipment | 13,348 | |
Goodwill | 104,308 | |
Intangible assets | 43,150 | |
Total assets acquired | 209,813 | |
Accounts payable | 13,402 | |
Advance billings on contracts | 11,144 | |
Other current liabilities | 18,089 | |
Pension liability | 5,041 | |
Deferred income taxes | 4,994 | |
Other liabilities | 130 | |
Total liabilities assumed | 52,800 | |
Net assets acquired | 157,013 | |
Net assets acquired | 157,013 | |
Unrestricted cash acquired | 14,232 | |
Net assets acquired, net of unrestricted cash acquired | 142,781 | |
Amount of tax deductible goodwill | $ 34,583 |
Acquisitions and Dispositions41
Acquisitions and Dispositions - Summary of Intangible Assets Acquired (Detail) - Jun. 30, 2015 - MEGTEC Holdings Inc [Member] - USD ($) $ in Thousands | Total |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 43,150 |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 23,500 |
Intangible assets, Amortization Period | 8 years |
Backlog [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 10,400 |
Intangible assets, Amortization Period | 1 year |
Trade Names / Trademarks [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 6,000 |
Intangible assets, Amortization Period | 11 years |
Developed Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 3,250 |
Intangible assets, Amortization Period | 5 years |
Acquisitions and Dispositions42
Acquisitions and Dispositions - Summary of Unaudited Pro Forma Financial Information (Detail) - Jun. 30, 2014 - USD ($) $ / shares in Units, $ in Thousands | Total | Total |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenues | $ 364,346 | $ 719,789 |
Net Income Attributable to Babcock & Wilcox Enterprises, Inc. | $ 7,014 | $ 19,213 |
Basic Earnings per Common Share | $ 0.13 | $ 0.34 |
Diluted Earnings per Common Share | $ 0.13 | $ 0.34 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
BWX Technologies, Inc. [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Corporate allocation from former parent | $ 1.3 | $ 1.3 | $ 2.7 | $ 2.7 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | NE Segment [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets and liabilities distributed | $ 47.8 | $ 47.8 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information Regarding Results of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Income from discontinued operations, net of tax | $ 1,418 | $ 3,397 | $ 2,803 | $ 7,339 |
NE Segment [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | 30,377 | 32,335 | 53,064 | 68,149 |
Income before provision for income taxes | 1,743 | 4,063 | 3,358 | 10,218 |
Provision for income taxes | 325 | 666 | 555 | 2,879 |
Income from discontinued operations, net of tax | $ 1,418 | $ 3,397 | $ 2,803 | $ 7,339 |
Discontinued Operations - Carry
Discontinued Operations - Carrying Values of Major Accounts of Discontinued Operations Included in Condensed Consolidated and Combined Balance Sheet (Detail) $ in Thousands | Dec. 31, 2014USD ($) |
Current Assets: | |
Cash and cash equivalents | $ 426 |
Accounts receivable - trade, net | 14,041 |
Accounts receivable - other | 1,411 |
Contracts in progress | 22,953 |
Inventories | 1,306 |
Deferred income taxes | 48 |
Other current assets | 5,992 |
Total current assets of discontinued operations | 46,177 |
Net property, plant and equipment | 23,721 |
Goodwill | 10,055 |
Deferred income taxes | 2,375 |
Intangible assets | 980 |
Other assets | 1,697 |
Total assets of discontinued operations | 85,005 |
Current Liabilities: | |
Accounts payable | 7,954 |
Accrued employee benefits | 7,895 |
Advance billings on contracts | 5,475 |
Accrued warranty expense | 5,469 |
Accrued liabilities - other | 17,352 |
Total current liabilities of discontinued operations | 44,145 |
Accumulated postretirement benefit obligation | 7,835 |
Pension liability | 7,082 |
Other liabilities | 1,071 |
Total liabilities of discontinued operations | $ 60,133 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015USD ($) | May. 11, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Outstanding letter of credit | $ 11,000,000 | |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement, maximum borrowing capacity | $ 600,000,000 | |
Senior secured credit facility leverage ratio | 2 | |
Incremental term loan, maximum capacity | $ 200,000,000 | |
Maximum leverage ratio after material acquisition | 3.25 | |
Debt instrument covenant leverage ratio increase subsequent to acquisition term | 1 year | |
Senior Secured Revolving Credit Facility [Member] | One Month LIBOR [Member] | Greater of Potential Outcome Two [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.00% | |
Senior Secured Revolving Credit Facility [Member] | Federal Funds Rate [Member] | Greater of Potential Outcome One [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 0.50% | |
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee on unused portions of credit agreement, variable range | 0.25% | |
Minimum interest coverage ratio | 400.00% | |
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Financial Letter Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.375% | |
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Performance Letter Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 0.825% | |
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.375% | |
Senior Secured Revolving Credit Facility [Member] | Minimum [Member] | Prime Rate [Member] | Greater of Potential Outcome Three [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 0.375% | |
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Commitment fee on unused portions of credit agreement, variable range | 0.35% | |
Maximum leverage ratio | 3 | |
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | Financial Letter Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.875% | |
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | Performance Letter Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit fee on unused portions of credit agreement, variable range | 1.125% | |
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 1.875% | |
Senior Secured Revolving Credit Facility [Member] | Maximum [Member] | Prime Rate [Member] | Greater of Potential Outcome Three [Member] | ||
Debt Instrument [Line Items] | ||
Annual interest rate of loan outstanding under credit agreement | 0.875% | |
Term Loan,Revolving Credit Borrowings And Letter of Credit [Member] | Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, aggregate borrowings outstanding | $ 0 | |
Letter of Credit [Member] | Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 109,100,000 | |
Aggregate amount to be borrowed to meet letter of credit requirements | $ 383,900,000 |
Special Charges for Restructu47
Special Charges for Restructuring Activities and Spin-Off Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination benefits | $ 1.7 | $ 6.6 | |
Consulting and administrative costs | 0.5 | ||
Margin Improvement Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation and impairment charges related to facility consolidation | 6.5 | ||
Employee termination benefits | 0.1 | 6 | |
Consulting and administrative costs | 1.1 | 0.8 | |
Global Competitiveness Initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Facility consolidation | $ 2.2 | ||
Selling, General and Administrative Expenses [Member] | Spin-Off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Non-cash costs related to stock compensation | $ 0.9 | $ 0.9 |
Special Charges for Restructu48
Special Charges for Restructuring Activities and Spin-Off Costs - Changes in Restructuring Liabilities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||
Balance at the beginning of the period | $ 5,086 | $ 5,213 |
Special charges for restructuring activities | 1,199 | 7,124 |
Payments | (4,102) | (5,727) |
Balance at the end of the period | $ 2,183 | $ 6,610 |
Special Charges for Restructu49
Special Charges for Restructuring Activities and Spin-Off Costs - Changes in Restructuring Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restructuring and Related Activities [Abstract] | ||
Non-cash charges | $ 6.5 | $ 1.9 |
Pension Plans and Postretirem50
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,384 | $ 3,242 | $ 6,774 | $ 6,481 |
Interest cost | 11,911 | 12,818 | 23,764 | 25,604 |
Expected return on plan assets | (16,677) | (15,857) | (33,355) | (31,710) |
Amortization of prior service cost (credit) | 100 | 125 | 200 | 250 |
Net periodic benefit cost | (1,282) | 328 | (2,617) | 625 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 249 | 255 | 499 | 503 |
Net periodic benefit cost | $ 249 | $ 255 | $ 499 | $ 503 |
Pension Plans and Postretirem51
Pension Plans and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Contributions to pension and postretirement benefit plans | $ 4.5 | $ 2 | $ 6.6 | $ 4.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Dec. 17, 2014USD ($) | Aug. 29, 2014USD ($) | Jan. 16, 2014USD ($) | Jun. 30, 2015USD ($)LetterOfCredit |
Contingencies And Commitments [Line Items] | ||||
Number of partial draws | LetterOfCredit | 9 | |||
Total partial draws under letter of credit outstanding | $ 11,000,000 | |||
Total draws of Letter of Credit in LDs | 11,900,000 | |||
Outstanding letter of credit | 11,000,000 | |||
Damages in excess | $ 37,000,000 | |||
Letters of credit remaining amount | 21,900,000 | |||
New Hampshire suit [Member] | Minimum [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Recovery of damages incurred | $ 70,000,000 | |||
AREVA NP, INC. f/k/a Framatome ANP, Inc [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Litigation, claims payable | $ 16,000,000 | |||
Arkansas River Power Authority (ARPA) [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Recovery of damages incurred | 170,000,000 | |||
Estimated loss on breach of contract | $ 20,500,000 |
Derivative Financial Instrume53
Derivative Financial Instruments - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total |
Foreign Currency Derivatives [Abstract] | |
Net losses deferred on derivative financial instruments in accumulated other comprehensive income (loss) | $ 300,000 |
Notional amount of foreign currency forward contracts | $ 114,300,000 |
Maturity date of foreign currency contracts | Aug. 30, 2017 |
Derivative Financial Instrume54
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - FX Forward Contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedges [Member] | Accounts Receivable-Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 132 | $ 88 |
Derivatives Designated as Hedges [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 6 | |
Derivatives Designated as Hedges [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 7 | |
Derivatives Designated as Hedges [Member] | Accounts Payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 8 | 89 |
Derivatives Not Designated as Hedges [Member] | Accounts Receivable-Other [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 374 | 175 |
Derivatives Not Designated as Hedges [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 8 | |
Derivatives Not Designated as Hedges [Member] | Accounts Payable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 284 |
Derivative Financial Instrume55
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in other comprehensive income | $ (3,382) | $ (61) | $ (455) | $ (52) |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | (40) | 13 | 22 | 23 |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Cost of Operations [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | (2) | (5) | 98 | (5) |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | FX Forward Contracts [Member] | Other-Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | (33) | (32) | ||
Gain (loss) recognized in income: portion excluded from effectiveness testing | (136) | (462) | 1,009 | (174) |
Derivatives Not Designated as Hedges [Member] | FX Forward Contracts [Member] | Other-Net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in income | $ 181 | $ 211 | $ 398 | $ 278 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 6,209 | $ 1,821 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 3,598 | 1,607 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,500 | |
Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,111 | |
Asset-Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 214 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 6,209 | 1,821 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 3,598 | 1,607 |
Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,500 | |
Level 2 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 1,111 | |
Level 2 [Member] | Asset-Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 214 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
FX Forward Contracts [Member] | ||
Fair Values Of Financial Instruments [Line Items] | ||
Fair value of foreign currency forward contracts | $ 0.5 | $ (0.1) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Spin-off transaction Distribution ratio of common stock | 2 | |||
Stock based compensation expense | $ 1.2 | $ 0.7 | $ 2 | $ 0.8 |
Stock-based compensation, tax benefits | $ 0.4 | $ 0.3 | $ 0.7 | $ 0.3 |
2010 Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total number of shares available for award grants under the Plan | shares | 5,800,000 | 5,800,000 | ||
2010 Long-Term Incentive Plan [Member] | Babcock and Wilcox Enterprises Inc [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Spin-off transaction Distribution ratio of common stock | 2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | $ 437,485 | $ 327,379 | $ 834,640 | $ 639,457 |
Gross profit | 81,884 | 69,028 | 165,281 | 125,879 |
Research and development costs | (3,962) | (4,281) | (8,480) | (8,293) |
Losses on asset disposals and impairments, net | (9,009) | (1,457) | (9,027) | (1,457) |
Selling, general and administrative expenses | (59,709) | (53,040) | (116,802) | (102,252) |
Special charges for restructuring activities | (5,312) | (7,513) | (7,666) | (8,991) |
Equity in income of investees | 967 | 433 | (1,104) | 2,799 |
Operating income | 4,859 | 3,170 | 22,202 | 7,685 |
Operating Segments [Member] | Global Power [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 157,373 | 109,693 | 281,259 | 219,985 |
Gross profit | 26,676 | 19,472 | 47,104 | 34,719 |
Operating Segments [Member] | Global Services [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 236,720 | 214,086 | 468,894 | 415,872 |
Gross profit | 46,308 | 48,356 | 99,595 | 89,960 |
Operating Segments [Member] | Industrial Environmental [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 43,392 | 3,600 | 84,487 | 3,600 |
Gross profit | $ 8,900 | $ 1,200 | $ 18,582 | $ 1,200 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2015shares | Dec. 31, 2014shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, shares issued | 53,719,878 | 0 |
Spin-off transaction Distribution ratio of common stock | 2 | |
Spin-Off [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Common stock, shares issued | 53,719,878 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amounts attributable to Babcock & Wilcox Enterprises, Inc. | ||||
Income from continuing operations | $ 4,069 | $ 1,539 | $ 15,373 | $ 8,686 |
Income from discontinued operations, net of tax | 1,418 | 3,397 | 2,803 | 7,339 |
Net income attributable to Babcock & Wilcox Enterprises, Inc. | $ 5,487 | $ 4,936 | $ 18,176 | $ 16,025 |
Weighted average common shares used to calculate basic earnings per common share | 53,560 | 54,883 | 53,474 | 55,051 |
Effect of dilutive securities: | ||||
Stock options, restricted stock and performance shares | 227 | 175 | 206 | 200 |
Weighted average common shares used to calculate diluted earnings per common share | 53,787 | 55,058 | 53,680 | 55,251 |
Basic earnings per common share: | ||||
Continuing operations | $ 0.08 | $ 0.03 | $ 0.29 | $ 0.16 |
Discontinued operations | 0.02 | 0.06 | 0.05 | 0.13 |
Basic earnings per common share | 0.10 | 0.09 | 0.34 | 0.29 |
Diluted earnings per common share: | ||||
Continuing operations | 0.08 | 0.03 | 0.29 | 0.16 |
Discontinued operations | 0.02 | 0.06 | 0.05 | 0.13 |
Diluted earnings per common share | $ 0.10 | $ 0.09 | $ 0.34 | $ 0.29 |
Earnings Per Share - Computat63
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Antidilutive shares related to stock options excluded from the diluted share | 1,204,003 | 686,544 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - BWX Technologies, Inc. [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Sales to our former Parent | $ (286) | $ (1,312) | $ (911) | $ (4,220) |
Corporate administrative expense | $ 17,332 | $ 18,332 | $ 35,343 | $ 36,664 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | Jun. 30, 2015USD ($) |
BWX Technologies, Inc. [Member] | |
Related Party Transaction [Line Items] | |
Guarantees, original contract value | $ 1,670.3 |
Related Party Transactions - 66
Related Party Transactions - Schedule of Change in Our Former Parent's Historical Investment Due to Net Transfers (to) from Former Parent (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Acquisition of business, net of cash acquired | $ (127,098) | |||
Cash pooling and general financing activities | $ (38) | (223) | ||
Distribution of Nuclear Energy segment | 47,839 | |||
BWX Technologies, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Sales to former Parent | $ (286) | $ (1,312) | (911) | (4,220) |
Corporate administrative expenses | 17,332 | 18,332 | 35,343 | 36,664 |
Income tax allocation | 7,441 | (2,439) | 11,872 | (6,484) |
Acquisition of business, net of cash acquired | 127,704 | 127,704 | ||
Cash pooling and general financing activities | (44,129) | 16,584 | (91,015) | 61,598 |
Cash contribution received at spin-off | 125,300 | 125,300 | ||
Net transfer from former Parent per statement of cash flows | 105,658 | 158,869 | 80,589 | 215,262 |
Net transfer of assets and liabilities | 44,706 | 44,706 | ||
Distribution of Nuclear Energy segment | (47,839) | (47,839) | ||
Net transfer from former Parent per statement of shareholders' equity | $ 102,525 | $ 158,869 | $ 77,456 | $ 215,262 |