Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 51,992,669 | ||
Entity Public Float | $ 1.1 |
Consolidated and Combined State
Consolidated and Combined Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 1,757,295 | $ 1,486,029 | $ 1,767,651 |
Costs and expenses | |||
Cost of operations | 1,449,138 | 1,266,996 | 1,331,170 |
Research and development costs | 16,543 | 18,483 | 21,043 |
Losses on asset disposals and impairments | 14,597 | 1,752 | 1,181 |
Selling, general and administrative expenses | 239,968 | 225,271 | 204,070 |
Restructuring activities and spin-off transaction costs | 14,946 | 20,183 | 18,343 |
Total costs and expenses | 1,735,192 | 1,532,685 | 1,575,807 |
Equity in income (loss) of investees | (242) | 8,681 | 18,387 |
Operating income (loss) | 21,861 | (37,975) | 210,231 |
Other income (expense) | |||
Interest income | 618 | 1,060 | 1,276 |
Interest expense | (1,059) | (492) | (462) |
Other, net | (1,215) | 789 | 1,444 |
Total other income (expense) | (1,656) | 1,357 | 2,258 |
Income (loss) before income tax expense (benefit) | 20,205 | (36,618) | 212,489 |
Income tax expense (benefit) | 3,671 | (24,728) | 72,011 |
Income (loss) from continuing operations | 16,534 | (11,890) | 140,478 |
Income (loss) from discontinued operations, net of tax | 2,803 | (14,272) | 34,338 |
Net income (loss) | 19,337 | (26,162) | 174,816 |
Net income attributable to noncontrolling interest | (196) | (366) | (289) |
Net income (loss) attributable to shareholders | 19,141 | (26,528) | 174,527 |
Income (loss) from continuing operations | 16,338 | (12,256) | 140,189 |
Income (loss) from discontinued operations, net of tax | $ 2,803 | $ (14,272) | $ 34,338 |
Basic earnings (loss) per common share | |||
Basic EPS continued operations (usd per share) | $ 0.31 | $ (0.23) | $ 2.51 |
Basic EPS discontinued operations (usd per share) | 0.05 | (0.26) | 0.61 |
Basic EPS (usd per share) | 0.36 | (0.49) | 3.12 |
Diluted earnings (loss) per common share | |||
Diluted EPS continued operations (usd per share) | 0.30 | (0.23) | 2.49 |
Diluted EPS discontinued operations (usd per share) | 0.06 | (0.26) | 0.61 |
Diluted EPS (usd per share) | $ 0.36 | $ (0.49) | $ 3.10 |
Shares used in the computation of earnings per share | |||
Basic (shares) | 53,487,071 | 54,238,631 | 55,950,875 |
Diluted (shares) | 53,708,983 | 54,238,631 | 56,342,709 |
Consolidated and Combined Stat3
Consolidated and Combined Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 19,337 | $ (26,162) | $ 174,816 |
Other comprehensive income (loss): | |||
Currency translation adjustments | (19,459) | (26,895) | (2,529) |
Derivative financial instruments: | |||
Unrealized gains (losses) arising during the period | 282 | (3,184) | (3,885) |
Income taxes | 57 | 824 | 990 |
Total unrealized gains (losses) on derivative financial instruments, net of tax | 339 | (2,360) | (2,895) |
Reclassification adjustment for losses included in net income | 1,557 | 2,169 | 3,137 |
Income taxes | (424) | (559) | (773) |
Total reclassification adjustment for losses included in net income (loss), net of tax | 1,133 | 1,610 | 2,364 |
Benefit obligations: | |||
Amortization of benefit plan costs | 1,504 | 3,650 | 277 |
Income taxes | (1,180) | (1,005) | (155) |
Total amortization of benefit plan costs, net of tax | 324 | 2,645 | 122 |
Investments: | |||
Unrealized gains (losses) arising during the period | (65) | (2) | 37 |
Income taxes | 16 | 0 | 11 |
Total unrealized gains (losses) arising during the period, net of tax | (49) | (2) | 48 |
Reclassification adjustment for losses included in net income | 42 | 0 | 0 |
Income taxes | (15) | 0 | 0 |
Total reclassification adjustments for losses included in net income, net of tax | 27 | 0 | 0 |
Other comprehensive income (loss) | (17,685) | (25,002) | (2,890) |
Total comprehensive income (loss) | 1,652 | (51,164) | 171,926 |
Comprehensive income (loss) attributable to noncontrolling interest | (183) | (329) | (255) |
Comprehensive income (loss) attributable to shareholders | $ 1,469 | $ (51,493) | $ 171,671 |
Consolidated and Combined Balan
Consolidated and Combined Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 365,192 | $ 218,659 |
Restricted cash and cash equivalents | 37,144 | 26,311 |
Investments | 3,996 | 1,607 |
Accounts receivable – trade, net | 291,242 | 265,456 |
Accounts receivable – other | 44,765 | 36,147 |
Contracts in progress | 128,174 | 107,751 |
Inventories | 90,119 | 98,711 |
Deferred income taxes | 0 | 36,601 |
Other current assets | 17,552 | 11,347 |
Assets of discontinued operations | 0 | 46,177 |
Total current assets | 978,184 | 848,767 |
Net property, plant and equipment | 145,717 | 135,237 |
Investments | 1,093 | 214 |
Goodwill | 201,069 | 209,277 |
Deferred income taxes | 190,656 | 115,111 |
Investments in unconsolidated affiliates | 92,196 | 109,248 |
Intangible assets | 37,844 | 50,646 |
Other assets | 16,286 | 9,226 |
Assets of discontinued operations | 0 | 38,828 |
TOTAL ASSETS | 1,663,045 | 1,516,554 |
Current liabilities | ||
Short-term line of credit | 2,005 | 3,215 |
Accounts payable | 175,170 | 160,606 |
Accrued employee benefits | 51,476 | 39,464 |
Advance billings on contracts | 229,390 | 148,098 |
Accrued warranty expense | 39,847 | 37,735 |
Other accrued liabilities | 63,464 | 54,827 |
Liabilities of discontinued operations | 0 | 44,145 |
Total current liabilities | 561,352 | 488,090 |
Accumulated postretirement benefit obligation | 27,768 | 28,347 |
Pension liability | 282,133 | 253,763 |
Other liabilities | 43,365 | 42,929 |
Liabilities of discontinued operations | 0 | 15,988 |
TOTAL LIABILITIES | $ 914,618 | $ 829,117 |
Commitments and Contingencies | ||
Stockholders' equity | ||
Common stock, par value $0.01 per share, authorized 200,000,000 shares; issued 52,480,630 and 0 shares at December 31, 2015 and December 31, 2014, respectively | $ 540 | $ 0 |
Preferred stock, par value $0.01 per share, authorized 20,000,000 shares; no shares issued | 0 | 0 |
Capital in excess of par value | 790,464 | 0 |
Treasury stock at cost, 1,376,226 shares at December 31, 2015 | (25,408) | 0 |
Retained earnings | 965 | 0 |
Accumulated other comprehensive income (loss) | (18,853) | 10,374 |
Former net parent investment | 0 | 676,036 |
Stockholders' equity attributable to shareholders | 747,708 | 686,410 |
Noncontrolling interest | 719 | 1,027 |
TOTAL STOCKHOLDERS' EQUITY | 748,427 | 687,437 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,663,045 | $ 1,516,554 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 52,480,630 | 0 |
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock at cost, shares | 1,376,226 | 0 |
Consolidated and Combined Stat6
Consolidated and Combined Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Former Parent Investment | Noncontrolling Interest |
Balance, shares at Dec. 31, 2012 | 0 | |||||||
Balance at Dec. 31, 2012 | $ 306,716 | $ 0 | $ 0 | $ 0 | $ 0 | $ 38,647 | $ 267,286 | $ 783 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 174,816 | 174,527 | 289 | |||||
Increase in note receivable | 47,408 | 47,408 | ||||||
Currency translation adjustments | (2,529) | (2,495) | (34) | |||||
Derivative financial instruments | (531) | (531) | ||||||
Defined benefit obligations | 123 | 123 | ||||||
Available-for-sale investments | 48 | 48 | ||||||
Stock-based compensation | 160 | 160 | ||||||
Dividends to noncontrolling interests | (114) | (114) | ||||||
Distribution of Nuclear Energy segment to former Parent | (453) | (453) | ||||||
Balance, shares at Dec. 31, 2013 | 0 | |||||||
Balance at Dec. 31, 2013 | 525,644 | $ 0 | 0 | 0 | 0 | 35,339 | 489,381 | 924 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (26,162) | (26,528) | 366 | |||||
Currency translation adjustments | (26,895) | (26,858) | (37) | |||||
Derivative financial instruments | (750) | (750) | ||||||
Defined benefit obligations | 2,645 | 2,645 | ||||||
Available-for-sale investments | (2) | (2) | ||||||
Stock-based compensation | 108 | 108 | ||||||
Dividends to noncontrolling interests | (226) | (226) | ||||||
Net transfers from former Parent | $ 213,075 | 213,075 | ||||||
Balance, shares at Dec. 31, 2014 | 0 | 0 | ||||||
Balance at Dec. 31, 2014 | $ 687,437 | $ 0 | 0 | 0 | 0 | 10,374 | 676,036 | 1,027 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 19,337 | 965 | 18,176 | 196 | ||||
Currency translation adjustments | (19,459) | (19,446) | (13) | |||||
Derivative financial instruments | 1,472 | 1,472 | ||||||
Defined benefit obligations | 324 | 324 | ||||||
Available-for-sale investments | (22) | (22) | ||||||
Stock based compensation, shares | 137 | |||||||
Stock-based compensation | 6,652 | $ 17 | 7,772 | (1,143) | ||||
Repurchased shares, shares | (1,376) | |||||||
Repurchased shares | (24,279) | $ (14) | (24,265) | 0 | ||||
Dividends to noncontrolling interests | (491) | (491) | ||||||
Net transfers 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, shares | 53,720 | |||||||
Reclassification of former Parent investment to capital in excess of par value and common stock | $ 537 | 782,692 | (783,229) | |||||
Balance, shares at Dec. 31, 2015 | 52,480,630 | 52,481 | ||||||
Balance at Dec. 31, 2015 | $ 748,427 | $ 540 | $ 790,464 | $ (25,408) | $ 965 | $ (18,853) | $ 0 | $ 719 |
Consolidated and Combined Stat7
Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 19,337 | $ (26,162) | $ 174,816 |
Non-cash items included in net income (loss): | |||
Depreciation and amortization | 34,932 | 32,436 | 23,030 |
Income of investees, net of dividends | 242 | 8,743 | 1,995 |
Losses on asset disposals and impairments | 16,881 | 5,989 | 2,580 |
Write-off of accrued claims receivable | 7,832 | 0 | 0 |
Provision for (benefit from) deferred taxes | (32,121) | (42,023) | 56,107 |
Recognition of (gains) losses for pension and other postretirement plans | 40,611 | 101,792 | (91,358) |
Stock-based compensation and thrift plan expense | 7,773 | (11) | (172) |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | (33,977) | (13,797) | 4,898 |
Accounts payable | 17,863 | (8,860) | (13,354) |
Contracts in progress and advance billings on contracts | 62,971 | (99,192) | (97,360) |
Inventories | 6,060 | 4,309 | 10,769 |
Income taxes | 9,275 | 10,123 | (23,309) |
Accrued and other current liabilities | 11,464 | 9,660 | (22,520) |
Pension liability, accrued postretirement benefit obligation and employee benefits | (2,336) | (17,259) | (20,053) |
Other, net | 3,592 | 10,028 | 10,331 |
NET CASH FROM OPERATING ACTIVITIES | 170,399 | (24,224) | 16,400 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Change in restricted cash and cash equivalents | 6,298 | (5,646) | 11,419 |
Purchases of property, plant and equipment | (35,397) | (15,475) | (11,588) |
Acquisition of businesses, net of cash acquired | 0 | (127,705) | 0 |
Purchase of intangible assets | 0 | (722) | |
Purchase of available-for-sale securities | (14,008) | (4,450) | (11,111) |
Sales and maturities of available-for-sale securities | 5,266 | 10,118 | 3,973 |
Proceeds from (cost of) asset disposals | (587) | 149 | 507 |
Investment in equity and cost method investees | (7,424) | (4,900) | (6,884) |
NET CASH FROM INVESTING ACTIVITIES | (45,852) | (148,631) | (13,684) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of short-term borrowings and long-term debt | (1,080) | (4,538) | (212) |
Payment of debt issuance costs | 0 | 2,967 | 484 |
Net transfers from former Parent | 80,589 | 213,137 | 47,445 |
Repurchase of common shares | (25,408) | 0 | 0 |
Excess tax benefits from stock-based compensation | 0 | 11 | 172 |
Other | (491) | 89 | (114) |
NET CASH FROM FINANCING ACTIVITIES | 53,610 | 211,666 | 47,775 |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (6,407) | (12,573) | (4,024) |
CASH FLOWS FROM CONTINUING OPERATIONS | 171,750 | 26,238 | 46,467 |
Operating cash flows from discontinued operations, net | (25,194) | (191) | (28,723) |
Investing cash flows from discontinued operations, net | (23) | (1,729) | (4,974) |
Effects of exchange rate changes on cash | 0 | 3,023 | 3,012 |
NET CASH FLOWS FROM DISCONTINUED OPERATIONS | (25,217) | 1,103 | (30,685) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 146,533 | 27,341 | 15,782 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 218,659 | 191,318 | 175,536 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 365,192 | $ 218,659 | $ 191,318 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Babcock & Wilcox Enterprises, Inc. ("B&W", "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 in connection with the spin-off by BWC to B&W. 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, liabilities, operating results and cash flows of the NE business as a discontinued operation in our consolidated and combined financial statements. See Note 13 for further information. Our consolidated and combined balance sheet as of December 31, 2015 consists of the consolidated balances of B&W, while our consolidated and combined balance sheet as of December 31, 2014 consists of the combined balances of BW PGG. Our consolidated and combined statements of operations and our consolidated and combined statements of cash flows consist of the combined results of BW PGG for periods June 30, 2015 and prior and the consolidated results of B&W after June 30, 2015. On June 8, 2015, BWC's board of directors approved the spin-off of B&W through the distribution of shares of B&W common stock to holders of BWC common stock. The distribution of B&W common stock was made on June 30, 2015 and consisted of one share of B&W 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 B&W common stock. On June 30, 2015, B&W became a separate publicly-traded company, and BWC did not retain any ownership interest in B&W. A registration statement on Form 10 describing the spin-off was filed by B&W 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 consolidated and combined financial statements in United States dollars in accordance with accounting principles generally accepted in the United States ("GAAP"). 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 consolidated and combined financial statements on the basis of continuing operations, unless otherwise stated. Through June 30, 2015, 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 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 spin-off from BWC, we have been performing these functions using internal resources or purchased services, certain of which have been provided by BWC pursuant to a transition services agreement. Refer to Note 8 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 years ended December 31, 2015 and 2014 , attributable to the treatment of NE as a discontinued operation. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Reportable 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 and waste heat boilers. 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. For financial information about our segments, see Note 17 to our consolidated and combined financial statements. Use of Estimates We use estimates and assumptions to prepare our financial statements in conformity with GAAP. Some of our more significant estimates include our estimate of costs to complete long-term construction contracts, estimates of costs to be incurred to satisfy contractual warranty requirements, estimates of the value of acquired intangible assets and estimates we make in selecting assumptions related to the valuations of our pension and postretirement plans, including the selection of our discount rates, mortality and expected rates of return on our pension plan assets. These estimates and assumptions affect the amounts we report in our financial statements and accompanying notes. Our actual results could differ from these estimates. Variances could result in a material effect on our financial condition and results of operations in future periods. Earnings Per Share We have computed earnings per common share on the basis of the weighted average number of common shares, and, where dilutive, common share equivalents, outstanding during the indicated periods. We have a number of forms of stock-based compensation, including incentive and non-qualified stock options, restricted stock, restricted stock units, performance shares and performance units, subject to satisfaction of specific performance goals. We include the shares applicable to these plans in dilutive earnings per share when related performance criteria have been met. Investments Our investments, primarily highly liquid money market instruments, are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive income (loss). We classify investments available for current operations in the consolidated and combined balance sheets as current assets, while we classify investments held for long-term purposes as noncurrent assets. We adjust the amortized cost of debt securities for amortization of premiums and accretion of discounts to maturity. That amortization is included in interest income. We include realized gains and losses on our investments in other - net in our consolidated and combined statements of operations. The cost of securities sold is based on the specific identification method. We include interest on securities in interest income. Foreign Currency Translation We translate assets and liabilities of our foreign operations into United States dollars at current exchange rates, and we translate items in our statement of operations at average exchange rates for the periods presented. We record adjustments resulting from the translation of foreign currency financial statements as a component of accumulated other comprehensive income (loss). We report foreign currency transaction gains and losses in income. We have included in other - net transaction gains (losses) of $(0.1) million , $1.8 million and $0.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. 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. As of December 31, 2015 , we have estimated the costs to complete all of our in-process contracts in order to estimate revenues in accordance with the percentage-of-completion method of accounting. However, it is possible that current estimates could change due to unforeseen events, which could result in adjustments to overall contract costs. The risk on fixed-priced contracts is that revenue from the customer does not cover increases in our costs. It is possible that current estimates could materially change for various reasons, including, but not limited to, fluctuations in forecasted labor productivity or steel and other raw material prices. Increases in costs on our fixed-price contracts could have a material adverse impact on our consolidated financial condition, results of operations and cash flows. Alternatively, reductions in overall contract costs at completion could materially improve our consolidated financial condition, results of operations and cash flows. Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We recognize accrued claims in contract revenues for extra work or changes in scope of work to the extent of costs incurred when we believe the following accounting criteria have been met: a) The contract or other evidence provides a legal basis for the claim; or a legal opinion has been obtained, stating that under the circumstances there is a reasonable basis to support the claim. b) Additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of deficiencies in the contractor's performance. c) Costs associated with the claim are identifiable or otherwise determinable and are reasonable in view of the work performed. d) The evidence supporting the claim is objective and verifiable, not based on management's feel for the situation or on unsupported representations. At December 31, 2015 and December 31, 2014 , we recognized accrued claims totaling $2.3 million and $8.2 million , respectively. In the years ended December 31, 2015, 2014 and 2013, we recognized changes in estimates related to long-term contracts accounted for on the percentage-of-completion basis, which are summarized as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Increases in estimates for percentage-of-completion contracts $ 36,653 $ 50,565 $ 49,154 Decreases in estimates for percentage-of-completion contracts (36,235 ) (24,234 ) (40,315 ) Net changes in estimates for percentage-of-completion contracts $ 418 $ 26,331 $ 8,839 During 2015, a $12.9 million contract loss accrual associated with an updated forecast of the cost to complete a large Global Services segment construction project that experienced unfavorable labor productivity and costs that have exceeded our expectations was the primary driver of the decrease illustrated above. Additionally, In each of the past three years, we recognized contract losses for additional estimated costs to complete our Global Power segment's Berlin Station project. This project experienced unforeseen worksite conditions and fuel specification issues that caused schedule delays, resulting in us filing suit against the customer in January 2014. The dispute was settled during the third quarter of 2015. The contract losses reduced pre-tax income (loss) from continuing operations by $9.6 million , $11.6 million and $35.6 million in the years ended December 31, 2015 , 2014 and 2013 , respectively. 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, certain industrial equipment and certain aftermarket services activities, we recognize revenues as goods are delivered and work is performed. The following represent the components of our contracts in progress and advance billings on contracts included in our consolidated balance sheets: December 31, (In thousands) 2015 2014 Included in contracts in progress: Costs incurred less costs of revenue recognized $ 9,966 $ 33,685 Revenues recognized less billings to customers 118,208 74,066 Contracts in progress $ 128,174 $ 107,751 Included in advance billings on contracts: Billings to customers less revenues recognized $ 221,244 $ 143,904 Costs of revenue recognized less cost incurred 8,146 4,194 Advance billings on contracts $ 229,390 $ 148,098 The following amounts represent retainages on contracts: December 31, (In thousands) 2015 2014 Retainages expected to be collected within one year $ 24,906 $ 19,978 Retainages expected to be collected after one year 5,329 7,360 Total retainages $ 30,235 $ 27,338 We have included retainages expected to be collected in 2016 in accounts receivable – trade, net. Retainages expected to be collected after one year are included in other assets. Of the long-term retainages at December 31, 2015 , we anticipate collecting $0 million in 2016, $3.9 million in 2017 and $1.2 million in 2018. Comprehensive Income The components of accumulated other comprehensive income (loss) included in stockholders' equity are as follows: December 31, (In thousands) 2015 2014 2013 Currency translation adjustments $ (19,493 ) $ 11,551 $ 38,409 Net unrealized gain on available-for-sale investments (44 ) (22 ) (20 ) Net unrealized gain (loss) on derivative financial instruments 1,786 (123 ) 627 Unrecognized prior service cost on benefit obligations (1,102 ) (1,032 ) (3,678 ) Accumulated other comprehensive income (loss) $ (18,853 ) $ 10,374 $ 35,338 The amounts reclassified out of accumulated other comprehensive income (loss) by component and the affected consolidated statements of operations line items are as follows: Accumulated Other Comprehensive Income Component Recognized Year ended December 31, Line Item Presented 2015 2014 2013 (In thousands) Realized (loss) gain on derivative financial instruments $ 546 $ (53 ) $ (285 ) Revenues 155 13 — Cost of operations (24 ) (6 ) 143 Other-net 677 (46 ) (142 ) Total before tax (149 ) 11 2 Provision for income taxes 528 (35 ) (140 ) Net income Amortization of prior service cost on benefit obligations (1,475 ) (457 ) (772 ) Cost of operations 1,168 183 281 Provision for income taxes (307 ) (274 ) (491 ) Net income Realized gains on investments (42 ) — — Other-net 15 — — Provision for income taxes (27 ) — — Net income Total reclassification for the period $ 194 $ (309 ) $ (631 ) Warranty Expense We accrue estimated expense included in cost of operations on our consolidated and combined statements of operations to satisfy contractual warranty requirements when we recognize the associated revenues 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 accrued warranty expense: Year Ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 37,735 $ 38,968 $ 58,339 Additions 19,310 13,726 16,468 Acquisition of MEGTEC — 4,693 — Expirations and other changes (982 ) (4,052 ) (15,728 ) Payments (15,215 ) (14,787 ) (20,185 ) Translation and other (1,001 ) (813 ) 74 Balance at end of period $ 39,847 $ 37,735 $ 38,968 Research and Development Our research and development activities are related to the development and improvement of new and existing products, services and equipment. Research and development activities totaled $16.5 million , $18.5 million , and $21.0 million in the years ended December 31, 2015 , 2014 , and 2013 , respectively. In the twelve months ended December 31, 2015 , we recognized a $14.6 million impairment charge primarily related to research and development facilities and equipment dedicated to a carbon capture process that was determined not to be commercially viable and other equipment primarily related to pilot testing capabilities that are no longer viable for current or future research and development efforts. The impairment is included in losses on asset disposals and impairments in the consolidated and combined statements of operations. Pension Plans and Postretirement Benefits We sponsor various defined benefit pension and postretirement plans covering certain employees of our United States and international subsidiaries. We utilize actuarial valuations to calculate the cost and benefit obligations of our pension and postretirement benefits. The actuarial valuations utilize significant assumptions in the determination of our benefit cost and obligations, including assumptions regarding discount rates, expected returns on plan assets, mortality and health care cost trends. We determine our discount rate based on a review of published financial data and discussions with our actuary regarding rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement plan obligations. For 2016, we will change our approach to setting the discount rate from a single equivalent discount rate to an alternative spot rate method. This change in estimate will be applied prospectively in developing our annual discount rate, which will result in a lower interest and service cost in 2016. The impact of the change in estimate did not change our pension and other postretirement benefits liability as of December 31, 2015, because any change is completely offset in the net actuarial gain (loss) recorded in the annual mark to market adjustment. This new method was adopted because it more accurately applies each year’s spot rates to the projected cash flows. In 2014, we adjusted our mortality assumption to reflect mortality improvements identified by the Society of Actuaries, adjusted for our experience. The impact of the change in this assumption caused a $46.9 million increase in our pension liability. The expected rate of return on plan assets assumption is based on capital market assumptions of the long-term expected returns for the investment mix of assets currently in the portfolio. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the classes within the total asset portfolio. Expected health care cost trends represent expected annual rates of change in the cost of health care benefits and are estimated based on analysis of health care cost inflation. For the years ended December 31, 2015 and 2014 , we adjusted the mortality assumption for our domestic plans to reflect mortality improvements identified by the Society of Actuaries, adjusted for our experience. The components of benefit cost related to service cost, interest cost, expected return on plan assets and prior service cost amortization are recorded on a quarterly basis based on actuarial assumptions. In the fourth quarter of each year, or as interim remeasurements are required, we recognize net actuarial gains and losses into earnings as a component of net periodic benefit cost (mark to market adjustment). Recognized net actuarial gains and losses consist primarily of our reported actuarial gains and losses and the difference between the actual return on plan assets and the expected return on plan assets. We recognize the funded status of each plan as either an asset or a liability in the consolidated and combined balance sheets. The funded status is the difference between the fair value of plan assets and the present value of its benefit obligation, determined on a plan-by-plan basis. See Note 8 for a detailed description of our plan assets. Income Taxes Income tax expense for federal, foreign, state and local income taxes are calculated on pre-tax income based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Before the spin-off, we were included in the consolidated United States federal and certain consolidated/combined state tax returns filed by BWC. After the spin-off, we file our own federal and state income tax returns. Both prior to and after the spin-off, our foreign subsidiaries operate and file tax returns in various foreign jurisdictions. For both the pre-spin and post-spin periods, we compute the provision for income taxes on a separate tax return basis as if we filed our own tax returns. For the pre-spin period, we deem the amounts that we would have paid or received from the United States Internal Revenue Service and certain state jurisdictions had we not been a member of BWC's consolidated tax group to be immediately settled with BWC. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We assess deferred taxes and the adequacy of the valuation allowance on a quarterly basis. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We record interest and penalties (net of any applicable tax benefit) related to income taxes as a component of provision for income taxes on our consolidated and combined statements of operations. Inventories We carry our inventories at the lower of cost or market. We determine cost principally on the first-in, first-out basis, except for certain materials inventories of our Global Services segment, for which we use the last-in, first-out ("LIFO") method. We determined the cost of approximately 20% and 18% of our total inventories using the LIFO method at December 31, 2015 and 2014 , respectively, and our total LIFO reserve at December 31, 2015 and 2014 was approximately $7.7 million and $7.9 million , respectively. The components of inventories are summarized below: December 31, (In thousands) 2015 2014 Raw materials and supplies $ 68,684 $ 71,604 Work in progress 7,025 9,831 Finished goods 14,410 17,276 Total inventories $ 90,119 $ 98,711 Property, Plant and Equipment We carry our property, plant and equipment at depreciated cost, less any impairment provisions. We depreciate our property, plant and equipment using the straight-line method over estimated economic useful lives of eight to 33 years for buildings and three to 28 years for machinery and equipment. Our depreciation expense was $23.5 million , $22.3 million and $18.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. We expense the costs of maintenance, repairs and renewals that do not materially prolong the useful life of an asset as we incur them. Property, plant and equipment is stated at cost and is set forth below: December 31, (In thousands) 2015 2014 Land $ 7,460 $ 6,937 Buildings 104,963 114,088 Machinery and equipment 181,064 201,912 Property under construction 36,534 12,824 330,021 335,761 Less accumulated depreciation 184,304 200,524 Net property, plant and equipment $ 145,717 $ 135,237 Investments in Unconsolidated Affiliates We use the equity method of accounting for affiliates in which we are able to exert significant influence. Currently, substantially all of our material investments in affiliates that are not consolidated are recorded using the equity method. Affiliates in which our investment ownership is less than 20% and where we are unable to exert significant influence are carried at cost. Goodwill Goodwill represents the excess of the cost of our acquired businesses over the fair value of the net assets acquired. We perform testing of goodwill for impairment annually. We may elect to perform a qualitative test when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant events and circumstances that could affect fair value during the current year. If we conclude based on this assessment that it is more likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test. In all other circumstances, we utilize a two-step quantitative impairment test to identify potential goodwill impairment and measure the amount of any goodwill impairment. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. The following summarizes the changes in the carrying amount of goodwill: (In thousands) Global Global Industrial Total Balance at December 31, 2013 $ 38,921 $ 65,709 $ — $ 104,630 Goodwill resulting from acquisition of MEGTEC (Note 3) — — 108,800 108,800 Currency translation adjustments (930 ) (3,223 ) (4,153 ) Balance at December 31, 2014 37,991 62,486 108,800 209,277 Purchase price adjustment related to MEGTEC acquisition — — (4,492 ) (4,492 ) Currency translation adjustments (1,076 ) (2,640 ) — (3,716 ) Balance at December 31, 2015 $ 36,915 $ 59,846 $ 104,308 $ 201,069 Intangible Assets Intangible assets are recognized at fair value when acquired. Intangible assets with definite lives are amortized to operating expense using the straight-line method over their estimated useful lives and tested for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Intangible assets with indefinite lives are not amortized and are subject to annual impairment testing. We may elect to perform a qualitative assessment when testing indefinite lived intangible assets for impairment to determine whether events or circumstances affecting significant inputs related to the most recent quantitative evaluation have occurred, indicating that it is more likely than not that the indefinite lived intangible asset is impaired. Otherwise, we test indefinite lived intangible assets for impairment by quantitatively determining the fair value of the indefinite lived intangible asset and comparing the fair value of the intangible asset to its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we recognize impairment for the amount of the difference. Our intangible assets are as follows: Year Ended December 31, (In thousands) 2015 2014 Definite-lived intangible assets: Customer relationships $ 35,729 $ 36,749 Unpatented technology 4,033 4,072 Patented technology 2,532 2,521 Tradename 9,909 9,957 Acquired backlog 10,400 10,600 All other 7,504 7,565 Gross value of definite-lived intangible assets 70,107 71,464 Customer relationships $ (12,509 ) $ (8,775 ) Unpatented technology (1,471 ) (582 ) Patented technology (1,406 ) (1,122 ) Tradename (2,883 ) (1,984 ) Acquired backlog (10,400 ) (5,300 ) All other (4,899 ) (4,360 ) Accumulated amortization (33,568 ) (22,123 ) Net definite-lived intangible assets $ 36,539 $ 49,341 Indefinite-lived intangible assets: Trademarks and trade names 1,305 1,305 Total indefinite-lived intangible assets $ 1,305 $ 1,305 The following summarizes the changes in the carrying amount of intangible assets: Year Ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 50,646 $ 18,246 Business acquisitions and adjustments 500 44,972 Amortization expense (11,445 ) (9,880 ) Impairment charge — (1,730 ) Currency translation adjustments and other (1,857 ) (962 ) Balance at end of period $ 37,844 $ 50,646 Estimated amortization expense for the next five fiscal years is as follows (in thousands): Year Ending December 31, Amount 2016 $ 5,944 2017 $ 5,822 2018 $ 5,549 2019 $ 5,195 2020 $ 4,176 Cash and Cash Equivalents and Restricted Cash Our cash equivalents are highly liquid investments, with maturities of three months or less when we purchase them. We record cash and cash equivalents as restricted when we are unable to freely use such cash and cash equivalents for our general operating purposes. At December 31, 2015 , we had restricted cash and cash equivalents totaling $37.1 million , $3.7 million of which was held in restricted foreign cash accounts and $33.4 million of which was held to meet reinsurance reserve requirements of our captive insurer. Supplemental Cash Flow Information During the years ended December 31, 2015 , 2014 and 2013 , we paid the following amounts for income taxes: (In thousands) 2015 2014 2013 Income taxes (net of refunds) $ 15,008 $ 7,951 $ 21,929 During the years ended December 31, 2015 , 2014 and 2013 , we recognized the following non-cash activity in our consolidated and combined financial statements: (In thousands) 2015 2014 2013 Accrued capital expenditures included in accounts payable $ 568 $ 1,680 $ 2,607 Derivative Financial Instruments Our global operations expose us to 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 consolidated and combined balance sheets and defer the related gains and losses in stockholders' equity as a component of accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. Any ineffective portion of a derivative's change in fair value and any portion excluded from the assessment of effectiveness is immediately recognized in other – net on our 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. Gains and losses on derivative financial instruments that require immediate recognition are included as a component of other – net in our consolidated and combined statements of operations. Self-Insurance We have a wholly owned insurance subsidiary that provides employer's liability, general and automotive liability and workers' compensation insurance and, from time to time, builder's risk insurance (within certain limits) to our companies. We may also, in the future, have this insurance subsidiary accept other risks that we cannot or do not wish to transfer to outside insurance companies. Included in other liabilities on our consolidated and combined balance sheets are reserves for self-insurance totaling $24.1 million and $25.3 million at December 31, 2015 and 20 |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition | BUSINESS ACQUISITION 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: (In thousands) MEGTEC Cash and cash equivalents $ 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 Cash and cash equivalents 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): (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 consolidated and combined financial statements for the year ended December 31, 2014 includes $105.4 million of revenues and $3.3 million of net income related to MEGTEC operations occurring from the acquisition date to December 31, 2014 . Additionally, the following unaudited pro forma financial information presents our results of operations for the years ended December 31, 2014 and 2013 had the acquisition of MEGTEC occurred on January 1, 2013. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2013. This information is presented for comparative purposes only and should not be taken as representative of our future consolidated and combined results of operations. (Dollar amounts in thousands) Twelve months ended December 31, 2014 Twelve months ended December 31, 2013 Revenues $ 1,566,361 $ 1,944,040 Net Income (Loss) Attributable to Babcock & Wilcox Enterprises, Inc. $ (19,559 ) $ 170,221 Basic Earnings per Common Share $ (0.36 ) $ 3.04 Diluted Earnings per Common Share $ (0.36 ) $ 3.02 The unaudited pro forma results include the following pre-tax adjustments to the historical results presented above: • Increase (decrease) in amortization expense related to timing of amortization of the fair value of identifiable intangible assets acquired of approximately $(3.9) million and $12.6 million for the years ended December 31, 2014 and 2013 , respectively. • Elimination of historical interest expense of approximately $0.9 million and $2.4 million for the years ended December 31, 2014 and 2013 , respectively. • Elimination of $13.4 million in acquisition related costs recognized in the year ended December 31, 2014 that are not expected to be recurring. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS We have investments in entities that we account for using the equity method. Our equity method investees include joint ventures in China and India, each of which manufactures boiler parts, and a joint venture in Australia that sells and services industrial equipment and other project-related joint ventures. In the year ended December 31, 2014 , we purchased the remaining outstanding equity of a coal-fired power plant that was previously an equity method investee. Additionally, in the year ended December 31, 2014 and 2013 , we recognized income from a United States environmental project joint venture. The United States environmental project was substantially completed in 2014 and did not contribute equity income in 2015 . The undistributed earnings of our equity method investees were $63.4 million and $76.0 million at December 31, 2015 and 2014 , respectively. Summarized below is consolidated and combined balance sheet and statement of operations information for investments accounted for under the equity method: December 31, (In thousands) 2015 2014 Current assets $ 446,283 $ 528,950 Noncurrent assets 168,411 181,517 Total assets 614,694 710,467 Current liabilities 314,390 403,484 Noncurrent liabilities 140,349 97,419 Owners' equity 159,955 209,564 Total liabilities and equity $ 614,694 $ 710,467 Year Ended December 31, (In thousands) 2015 2014 2013 Revenues $ 475,459 $ 645,481 $ 592,755 Gross profit 69,021 85,378 97,226 Income before provision for income taxes 3,072 22,909 39,033 Provision for income taxes 4,500 6,159 8,603 Net income $ (1,428 ) $ 16,750 $ 30,430 Our investment in equity method investees was $5.8 million more than our underlying equity in net assets of those investees based on stated ownership percentages at December 31, 2015 . These differences were primarily related to the timing of distribution of dividends and various adjustments under GAAP. The following table summarizes the investments in unconsolidated entities by segment reflected in our consolidated and combined balance sheets: Year Ended December 31, (In thousands) 2015 2014 2013 Global Power $ 75,946 $ 93,389 $ 99,013 Global Services 16,250 15,859 45,462 Total investment in unconsolidated affiliates $ 92,196 $ 109,248 $ 144,475 The provision for income taxes is based on the tax laws and rates in the countries in which our investees operate. The taxation regimes vary not only by their nominal rates, but also by the allowability of deductions, credits and other benefits. For some of our United States investees, United States income taxes are the responsibility of the respective owners, which is primarily the reason for the provision for income taxes being low in relation to income before provision for income taxes. Reconciliation of net income in the statement of operations of our investees to equity in income of investees in our consolidated and combined statements of operations is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Equity income based on stated ownership percentages $ (542 ) $ 8,563 $ 15,280 All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments 300 118 3,107 Equity in income of investees $ (242 ) $ 8,681 $ 18,387 Our transactions with unconsolidated affiliates were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Sales to $ 18,014 $ 70,566 $ 70,793 Purchases from 45,397 5,623 4,646 Dividends received 20,830 17,407 20,382 Capital contributions, net of returns 7,424 4,900 6,884 Our accounts receivable-other includes receivables from these unconsolidated affiliates of $7.9 million and $7.0 million at December 31, 2015 and December 31, 2014 , respectively. |
Restructuring Activities and Sp
Restructuring Activities and Spin-Off Transaction Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities and Spin-Off Transaction Costs | RESTRUCTURING ACTIVITIES AND SPIN-OFF TRANSACTION COSTS Restructuring Activities Previously announced restructuring initiatives intended to better position us for growth and profitability have primarily included facility consolidation and reductions in the number of our employees. An analysis of the change in our restructuring liabilities for the years ended December 31, 2015 and 2014 is as follows: Year Ended December 31, (In thousands) 2015 2014 Liability balance at the beginning of the period $ 5,086 $ 5,601 Special charges for restructuring activities (1) 5,014 13,146 Payments (9,360 ) (13,661 ) Liability balance at the end of the period $ 740 $ 5,086 (1) Excludes non-cash charges related to accelerated depreciation and impairment charges of $ 6.7 million and $ 7.0 million for the years ended December 31, 2015 and 2014 , respectively, which did not impact the restructuring liability. At December 31, 2015 , unpaid restructuring charges totaled $0.4 million for employee termination benefits and $0.3 million related to consulting and administrative costs. Spin-off Transaction Costs We incurred $3.3 million of costs in the year ended December 31, 2015 directly related to the spin-off from BWC. The costs were primarily attributable to stock-based compensation, and are included in restructuring activities and spin-off transaction costs in the consolidated and combined statements of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We are subject to U.S. federal income tax and income tax of multiple state and international jurisdictions. Before the spin-off transaction, we were included in the consolidated United States federal and certain consolidated/combined state tax returns filed by our former Parent. After the spin-off transaction, we file our own federal and state income tax returns. Both prior to and after the spin-off, our foreign subsidiaries operate and file tax returns in various foreign jurisdictions. For both the pre-spin and post-spin periods, we compute the provision for income taxes on a separate tax return basis as if we filed our own tax returns. For the pre-spin period, we deem the amounts that we would have paid to or received from the United States Internal Revenue Service and certain state jurisdictions had we not been a member of BWC's consolidated tax group to be immediately settled with BWC. We entered into a tax sharing agreement with BWC in connection with the spin-off that allocates the responsibility for prior period taxes of BWC consolidated tax reporting group between us and BWC and its subsidiaries. However, if BWC were unable to pay, we could be required to pay the entire amount of such taxes. We provide for income taxes based on the 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 both nominal rates and the basis on which these rates are applied. This variation, along with the changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period. We are currently under audit by various state and international authorities. With few exceptions, we do not have any returns under examination for years prior to 2010. The United States Internal Revenue Service has completed its examination of the 2010 through 2012 federal tax returns of BWC, and all matters arising from such examination have been resolved. We apply the provisions of FASB Topic Income Taxes regarding the treatment of uncertain tax positions. A reconciliation of unrecognized tax benefits follows: Year Ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 3,321 $ 1,190 $ 1,204 Increases based on tax positions taken in the current year 88 213 — Increases based on tax positions taken in the prior years 248 2,268 276 Decreases based on tax positions taken in the prior years (1,161 ) — (290 ) Decreases due to settlements with tax authorities (1,355 ) (350 ) — Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 1,141 $ 3,321 $ 1,190 All of the $1.1 million balance of unrecognized tax benefits at December 31, 2015 would reduce our effective tax rate if recognized. We recognize interest and penalties related to unrecognized tax benefits in our provision for income taxes. During the year ended December 31, 2015 , we recorded a decrease in our accruals of less than $0.1 million , resulting in recorded liabilities of approximately $0.3 million for the payment of tax-related interest and penalties. At December 31, 2014 and 2013 , our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million and $0.1 million , respectively. It is unlikely that our previously unrecognized tax benefits will change significantly in the next twelve months. Deferred income taxes reflect the net tax effects of temporary differences between the financial and tax bases of assets and liabilities. Significant components of deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows: December 31, (In thousands) 2015 2014 Deferred tax assets: Pension liability $ 107,748 $ 97,447 Accrued warranty expense 12,589 10,700 Accrued vacation pay 4,482 4,635 Accrued liabilities for self-insurance (including postretirement health care benefits) 14,280 17,979 Accrued liabilities for executive and employee incentive compensation 14,255 3,582 Investments in joint ventures and affiliated companies 14,100 7,472 Long-term contracts 6,963 6,622 Net operating loss carryforward 13,544 13,044 State tax net operating loss carryforward 14,409 14,617 Foreign tax credit carryforward 2,378 2,959 Other 9,206 11,272 Total deferred tax assets 213,954 190,329 Valuation allowance for deferred tax assets (10,077 ) (9,216 ) Net, total deferred tax assets 203,877 181,113 Deferred tax liabilities: Property, plant and equipment 3,379 6,136 Long-term contracts 9,084 17,932 Intangibles 13,158 8,484 Undistributed foreign earnings 1,000 500 Goodwill 1,167 5,696 Other 1,317 3,200 Total deferred tax liabilities 29,105 41,948 Net deferred tax assets $ 174,772 $ 139,165 At December 31, 2015 , we had a valuation allowance of $10.1 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income. Any changes to our estimated valuation allowance could be material to our consolidated and combined financial statements. The following is an analysis of our valuation allowance for deferred tax assets: (In thousands) Beginning Balance Charges To Costs and Expenses Charged To Other Accounts Ending Balance Year Ended December 31, 2015 $ (9,216 ) (861 ) — $ (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) Year Ended December 31, 2013 (9,709 ) — 2,729 (6,980 ) We operate in numerous countries that have statutory tax rates below that of the United States federal statutory rate of 35%. The most significant of these foreign operations are located in Canada, Denmark and the United Kingdom with tax rates of approximately 27%, 24% and 20%, respectively. Income before provision for income taxes was as follows: Year Ended December 31, (In thousands) 2015 2014 2013 U.S. $ (20,748 ) $ (64,084 ) $ 135,966 Other than U.S. 40,953 27,466 76,523 Income before provision for income taxes $ 20,205 $ (36,618 ) $ 212,489 The provision for income taxes consisted of Year Ended December 31, (In thousands) 2015 2014 2013 Current: U.S. – federal $ 24,084 $ 1,834 $ 21,956 U.S. – state and local 3,458 1,544 3,053 Other than U.S. 8,250 13,917 (9,105 ) Total current 35,792 17,295 15,904 Deferred: U.S. – Federal (35,888 ) (32,910 ) 26,648 U.S. – State and local (111 ) (572 ) 3,354 Other than U.S. 3,878 (8,541 ) 26,105 Total deferred (benefit) provision (32,121 ) (42,023 ) 56,107 Provision for income taxes $ 3,671 $ (24,728 ) $ 72,011 The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2015 2014 2013 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes 13.8 4.1 3.9 Foreign rate differential (13.1 ) 16.6 (3.0 ) Tax credits (14.7 ) 7.5 (4.0 ) Dividends and deemed dividends from affiliates 1.7 5.7 3.3 Valuation allowances 4.3 (6.1 ) (1.3 ) Uncertain tax positions (6.6 ) (6.7 ) 0.1 Non-deductible expenses 2.4 (2.4 ) 0.5 Manufacturing deduction (2.5 ) 11.6 (0.4 ) Other (2.1 ) 2.2 (0.2 ) Effective tax rate 18.2 % 67.5 % 33.9 % We have foreign net operating loss benefits after tax of $12.8 million available to offset future taxable income in foreign jurisdictions. Of the foreign net operating loss benefits, $0.5 million is scheduled to expire in 2017 to 2020 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $0.3 million against the deferred tax asset related to the foreign loss carryforwards. We have foreign tax credit carryovers of $2.4 million , which will not expire until 2018 . We have state net operating loss benefits after tax of $14.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2016 . We are carrying a valuation allowance of $9.8 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2015 , the undistributed earnings of these subsidiaries were $396.4 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $59.7 million would be payable upon distribution of these earnings. We have provided tax of $1.0 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Credit Facilities
Credit Facilities | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facilities | CREDIT FACILITIES Short-Term Line of Credit Our short-term line of credit represents borrowings by one of our subsidiaries. The short-term line of credit balance was $2.0 million and $3.2 million at December 31, 2015 and 2014, respectively. This facility is renewable annually and the interest rate associated with this line of credit was 5.1% and 6.3% per annum at December 31, 2015 and 2014, respectively. Credit Agreement The new credit agreement ("Credit Agreement") that we entered into on May 11, 2015 closed in connection with the spin-off transaction. The Credit Agreement provides for a 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 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 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 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 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 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 Credit Agreement. Loans outstanding under the 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 0.5% , the one month LIBOR rate plus 1.0% and 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 portion of the revolving credit facility, and that fee varies between 0.25% and 0.35% 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 rates for loans, the commitment fee and the letter of credit fees set forth above vary quarterly based on our leverage ratio. The applicable margin for loans, the commitment fee and the letter of credit fees set forth above vary quarterly based on our leverage ratio. Based on our leverage ratio at December 31, 2015 , the applicable margin for LIBOR and base rate loans was 1.375% and 0.375% , respectively. The commitment fee for the unused portions of the revolving credit facility was 0.25% and the letter of credit fees for financial and performance letters of credit was 1.375% and 0.825% , respectively. The 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 Credit Agreement contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. At December 31, 2015 , we had no borrowings outstanding under the revolving credit facility, and after giving effect to the leverage ratio and $109.6 million of letters of credit issued under the Credit Agreement, we had approximately $373 million available for borrowings or to meet letter of credit requirements. The Credit Agreement generally includes customary events of default for a secured credit facility. If an event of default relating to bankruptcy or other insolvency events with respect to us occurs under the 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 Credit Agreement, we will be unable to borrow funds or have letters of credit issued. At December 31, 2015 , we were in compliance with all of the covenants set forth in the Credit Agreement. Other Credit Arrangements Certain subsidiaries have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees as of December 31, 2015 was $193.1 million . We have posted surety bonds to support contractual obligations to customers relating to certain projects. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. Although there can be no assurance that we will maintain our surety bonding capacity, we believe our current capacity is more than adequate to support our existing project requirements for the next twelve months. In addition, these bonds generally indemnify customers should we fail to perform our obligations under the applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue in support of some of our contracting activity. As of December 31, 2015 , bonds issued and outstanding under these arrangements in support of contracts totaled approximately $541.7 million . |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Postretirement Benefits | PENSION PLANS AND POSTRETIREMENT BENEFITS We have historically provided defined benefit retirement benefits to domestic employees under the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations (the "Company Plan"), a noncontributory plan. As of 2006, the Company Plan was closed to new salaried plan entrants. In October 2012, we notified employees that, effective December 31, 2015, benefit accruals for those salaried employees covered by, and continuing to accrue service and salary adjusted benefits under the Company Plan will cease. Furthermore, effective January 1, 2016, we will make service-based, cash contributions to a defined contribution plan for those employees impacted by the plan freeze. Effective January 1, 2012, a defined contribution component was adopted applicable to Babcock & Wilcox Canada, Ltd. (the "Canadian Plans"). Any employee with less than two years of continuous service as of December 31, 2011 was required to enroll in the defined contribution component of the Canadian Plans as of January 1, 2012 or upon the completion of 6 months of continuous service, whichever is later. These and future employees will not be eligible to enroll in the defined benefit component of the Canadian Plans. Additionally, during the third quarter of 2014, benefit accruals under certain hourly Canadian pension plans were ceased with an effective date of January 1, 2015. This amendment to the Canadian Plans is reflected as a curtailment in 2014. As part of the spin-off transaction, we are splitting the Canadian defined benefit plans from BWC, but as of December 31, 2015, that split is not complete. We have not presented these plans as multi-employer plans because our portion is separately identifiable and we were able to assess the assets, liabilities and periodic expense in the same manner as if it were a separate plan in each period. We do not provide retirement benefits to certain non-resident alien employees of foreign subsidiaries. Retirement benefits for salaried employees who accrue benefits in a defined benefit plan are based on final average compensation and years of service, while benefits for hourly paid employees are based on a flat benefit rate and years of service. Our funding policy is to fund the plans as recommended by the respective plan actuaries and in accordance with the Employee Retirement Income Security Act of 1974, as amended, or other applicable law. Funding provisions under the Pension Protection Act accelerate funding requirements to ensure full funding of benefits accrued. We make available other benefits which include postretirement health care and life insurance benefits to certain salaried and union retirees based on their union contracts, and on a limited basis, to future retirees. Obligations and Funded Status Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (In thousands) 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation at beginning of period $ 1,253,278 $ 1,099,717 $ 34,909 $ 36,422 Service cost 13,677 13,558 24 18 Interest cost 49,501 51,181 1,143 1,087 Plan participants’ contributions 156 175 276 777 Curtailments — (146 ) — — Settlements — (2,170 ) — — Transfers /Acquisition 15,992 4,426 234 — Amendments 244 — — — Actuarial loss (gain) (47,098 ) 156,058 (296 ) 1,804 Loss (gain) due to transfer (523 ) — — — Foreign currency exchange rate changes (11,450 ) (5,575 ) (367 ) (592 ) Benefits paid (68,614 ) (63,946 ) (4,034 ) (4,607 ) Benefit obligation at end of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Change in plan assets: Fair value of plan assets at beginning of period $ 999,515 $ 935,652 $ — $ — Actual return on plan assets (19,623 ) 124,934 — — Employer contribution 8,711 8,452 3,757 3,830 Plan participants' contributions 156 175 276 777 Settlements — (2,168 ) — — Transfers 13,974 (178 ) — — Foreign currency exchange rate changes (11,089 ) (3,406 ) — — Benefits paid (68,614 ) (63,946 ) (4,034 ) (4,607 ) Fair value of plan assets at the end of period 923,030 999,515 — — Funded status $ (282,133 ) $ (253,763 ) $ (31,889 ) $ (34,909 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,927 ) $ (1,269 ) $ (4,620 ) $ (4,856 ) Accumulated postretirement benefit obligation — — (27,269 ) (30,053 ) Pension liability (281,711 ) (253,664 ) — — Prepaid pension 1,505 1,170 — — Accrued benefit liability, net $ (282,133 ) $ (253,763 ) $ (31,889 ) $ (34,909 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 1,976 $ 2,131 $ — $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,175,511 $ 1,235,100 $ — $ — Accumulated benefit obligation $ 1,172,591 $ 1,228,085 $ 31,889 $ 34,909 Fair value of plan assets $ 891,873 $ 979,834 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 29,652 $ 18,178 $ — $ — Accumulated benefit obligation $ 29,652 $ 17,178 $ — $ — Fair value of plan assets $ 31,157 $ 19,681 $ — $ — Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (In thousands) 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 13,677 $ 13,558 $ 15,287 $ 24 $ 18 $ — Interest cost 49,501 51,181 46,266 1,143 1,087 1,046 Expected return on plan assets (68,709 ) (64,023 ) (62,481 ) — — — Amortization of prior service cost 307 274 491 — — Recognized net actuarial loss (gain) 41,574 99,090 (88,012 ) (1,364 ) 2,245 (4,064 ) Net periodic benefit cost (income) $ 36,350 $ 100,080 $ (88,449 ) $ (197 ) $ 3,350 $ (3,018 ) Recognized net actuarial loss (gain) consists primarily of our reported actuarial loss (gain), curtailments and the difference between the actual return on plan assets and the expected return on plan assets. Total mark to market adjustments for our pension and other postretirement benefit plans were gains (losses) of $(40.2) million , $(101.3) million and $92.1 million in the years ending December 31, 2015 , 2014 and 2013 , respectively. In 2015 , the mark to market adjustment reflects a $4.1 million reduction in our pension and other postretirement benefit liabilities related to the correction of prior period census data. In 2014 , we adjusted our mortality assumption, resulting in a $46.9 million increase in our pension liability. As discussed in Note 17 , we have excluded the recognized net actuarial loss (gain) from our reportable segments and such amount has been reflected in Note 17 as the mark to market adjustment in the reconciliation of reportable segment income to consolidated operating income (loss). The recognized net actuarial loss (gain) and the affected consolidated and combined statements of operations line items are as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Cost of operations $ 44,307 $ 94,204 $ (84,772 ) Selling, general and administrative expenses (4,097 ) 7,233 (7,331 ) Other-net — (102 ) 27 Total $ 40,210 $ 101,335 $ (92,076 ) Additional Information In 2015 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.4 million and $1.0 million for our pension benefits and other postretirement benefits, respectively. In 2016 , we do not expect to recognize any significant expense or income in other comprehensive income (loss) as a component of net periodic benefit cost for our pension benefits and other postretirement benefits. Assumptions Pension Benefits Other Benefits 2015 2014 2015 2014 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 3.98 % 3.99 % 3.41 % 3.40 % Rate of compensation increase 2.51 % 2.56 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 3.99 % 3.99 % 3.40 % 3.40 % Expected return on plan assets 6.98 % 7.00 % — % — % Rate of compensation increase 2.56 % 2.56 % — — The expected rate of return on plan assets is based on the long-term expected returns for the investment mix of assets currently in the portfolio. In setting this rate, we use a building-block approach. Historic real return trends for the various asset classes in the plan's portfolio are combined with anticipated future market conditions to estimate the real rate of return for each asset class. These rates are then adjusted for anticipated future inflation to determine estimated nominal rates of return for each asset class. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the asset classes within the total asset portfolio. We are using an expected return on plan assets assumption of 7.2% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2015 ). 2015 2014 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 7.50 % Rates to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches ultimate trend rate 2024 2021 Assumed health care cost trend rates have a significant effect on the amounts we report for our health care plan. A one-percentage-point change in our assumed health care cost trend rates would have the following effects: (In thousands) One-Percentage-Point Increase One-Percentage-Point Decrease Effect on total of service and interest cost $ 22 $ (21 ) Effect on postretirement benefit obligation 1,502 (898 ) Investment Goals General: The overall investment strategy of the pension trusts is to achieve long-term growth of principal, while avoiding excessive risk and to minimize the probability of loss of principal over the long term. The specific investment goals that have been set for the pension trusts in the aggregate are (1) to ensure that plan liabilities are met when due and (2) to achieve an investment return on trust assets consistent with a reasonable level of risk. Allocations to each asset class for both domestic and foreign plans are reviewed periodically and rebalanced, if appropriate, to assure the continued relevance of the goals, objectives and strategies. The pension trusts for both our domestic and foreign plans employ a professional investment advisor and a number of professional investment managers whose individual benchmarks are, in the aggregate, consistent with the plans' overall investment objectives. The goals of each investment manager are (1) to meet (in the case of passive accounts) or exceed (for actively managed accounts) the benchmark selected and agreed upon by the manager and the trust and (2) to display an overall level of risk in its portfolio that is consistent with the risk associated with the agreed upon benchmark. The investment performance of total portfolios, as well as asset class components, is periodically measured against commonly accepted benchmarks, including the individual investment manager benchmarks. In evaluating investment manager performance, consideration is also given to personnel, strategy, research capabilities, organizational and business matters, adherence to discipline and other qualitative factors that may impact the ability to achieve desired investment results. Domestic Plans: We sponsor the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations domestic defined benefit plan. The assets of this plan are commingled for investment purposes with the Company's other sponsored domestic defined benefit plans and held by the Trustee in The Babcock & Wilcox Company Master Trust (the "Master Trust"). For the years ended December 31, 2015 and 2014 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately (2)% and 14% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2015 and 2014 by asset category: 2015 2014 Asset Category: Fixed Income (excluding United States Government Securities) 33 % 38 % Commingled and Mutual Funds 37 % 33 % United States Government Securities 18 % 15 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % 5 % Derivatives 4 % — % Other 1 % 2 % The target asset allocation for the domestic defined benefit plans is 55% fixed income and 45% equities. Foreign Plans: We sponsor various plans through certain of our foreign subsidiaries. These plans are the Canadian Plans and the Diamond Power Specialty Limited Retirement Benefits Plan (the "Diamond UK Plan"). The combined weighted average asset allocations of these plans at December 31, 2015 and 2014 by asset category were as follows: 2015 2014 Asset Category: Equity Securities and Commingled Mutual Funds 48 % 46 % Fixed Income 51 % 53 % Other 1 % 1 % The target allocation for 2015 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 20 % 12 % Global Equity 30 % 14 % Fixed Income 50 % 74 % Fair Value of Plan Assets See Note 16 for a detailed description of fair value measurements and the hierarchy established for valuation inputs. The following is a summary of total investments for our plans measured at fair value at December 31, 2015 : (In thousands) 12/31/2015 Level 1 Level 2 Level 3 Fixed income $ 347,269 $ — $ 347,269 $ — Equities 79,761 79,761 — — Commingled and mutual funds 330,216 — 330,216 — U.S. government securities 155,975 155,975 — — Cash and accrued items 9,809 539 9,270 — Total pension and other postretirement benefit assets $ 923,030 $ 236,275 $ 686,755 $ — The following is a summary of total investments for our plans measured at fair value at December 31, 2014 : (In thousands) 12/31/2014 Level 1 Level 2 Level 3 Fixed Income $ 385,348 $ — $ 385,348 $ — Equities 63,109 63,109 — — Commingled and Mutual Funds 334,071 4,665 329,406 — U.S. Government Securities 144,609 137,783 6,826 — Partnerships with Security Holdings 48,967 — — 48,967 Real Estate 2,141 — — 2,141 Cash and Accrued Items 21,265 19,242 2,023 — Total pension and other postretirement benefit assets $ 999,510 $ 224,799 $ 723,603 $ 51,108 The following is a summary of the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2015 and 2014 : Year ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 51,108 $ 55,188 Issuances and acquisitions 1,266 4,633 Dispositions (53,417 ) (16,306 ) Realized gain 3,915 10,996 Unrealized gain (2,872 ) (3,403 ) Balance at end of period $ — $ 51,108 Our Level 3 instruments included assets with no market price but rather calculations of net asset values per share or its equivalent. When appropriate, we adjusted these net asset values for contributions and distributions, if any, made during the period beginning on the latest net asset value valuation date and ending on our measurement date. We also considered available market data, relevant index returns, preliminary estimates from our investees and other data obtained through research and consultation with third party advisors in determining the fair value of our Level 3 instruments. All of our Level 3 assets were transferred to our former Parent during the spin-off transaction. Cash Flows Domestic Plans Foreign Plans (In thousands) Pension Benefits Other Benefits Pension Benefits Other Benefits Expected employer contributions to trusts of defined benefit plans: 2016 $ 1,129 $ 4,500 $ 3,243 $ 144 Expected benefit payments: 2016 $ 65,997 $ 4,496 $ 2,503 $ 144 2017 67,633 3,516 3,247 148 2018 68,981 3,336 3,383 151 2019 70,165 3,125 3,508 154 2020 71,202 2,921 3,595 158 2021-2025 361,313 11,152 20,119 745 Defined Contribution Plans We provide benefits under the B&W Thrift Plan. The B&W Thrift Plan generally provides for matching employer contributions of 50% of participants' contributions up to 6% of compensation. These matching employer contributions are typically made in cash. We also provide service-based cash contributions under the Thrift Plan to employees not accruing benefits under our defined benefit plans. Amounts charged to expense for employer contributions under the Thrift Plan totaled approximately $8.9 million , $7.4 million and $7.5 million in 2015 , 2014 and 2013 , respectively. We also provide benefits under the MEGTEC Union and Non-union plans, both of which are defined contribution plans. The total employer contribution expense for the Union plan was approximately $0.3 million in each of the years ended 2015 , 2014 and 2013 . For the Non-union plan, the employer contribution expense was approximately $1.1 million , $1.2 million , and $1.1 million in 2015 , 2014 and 2013 , respectively. Effective January 1, 2012, a defined contribution component was added to those Canadian Plans previously offering defined benefits to salaried employees. As of and in the periods following January 1, 2012, we made cash, service-based contributions under this arrangement. The amount charged to expense for employer contributions was approximately $0.1 million , $0.6 million and $0.6 million in 2015 , 2014 and 2013 , respectively. Multiemployer Plans One of our subsidiaries in the Global Services segment contributes to various multiemployer plans. The plans generally provide defined benefits to substantially all unionized workers in this subsidiary. The following table summarizes our contributions to multiemployer plans for the years covered by this report: Pension Fund EIN/PIN Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions Surcharge Imposed Expiration Date Of Collective Bargaining Agreement 2015 2014 2013 2015 2014 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 20.3 $ 16.0 $ 19.0 No Described All Other 4.6 4.6 11.9 $ 24.9 $ 20.6 $ 30.9 Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust (the "Boilermaker Plan") is under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreement allows for termination by either party with a 90 -day written notice. Our contributions to the Boilermaker Plan constitute less than 5% of total contributions to the Boilermaker Plan. All other contributions expense for all periods included in this report represents multiple amounts to various plans that, individually, are deemed to be insignificant. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS In connection with the spin-off, BWC changed its name to BWX Technologies, Inc. We were party to transactions with our former Parent and its subsidiaries in the normal course of operations. These transactions prior to the June 30, 2015 spin-off included the following: Year ended December 31, (In thousands) 2015 (1) 2014 2013 Sales to our former Parent $ 911 $ 5,896 $ 37,552 Corporate administrative expense 35,343 73,329 76,739 (1) After the spin-off transaction on June 30, 2015, we no longer consider the former Parent to be a Related Party. Guarantees As of December 31, 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 total $1.0 billion and range in expiration dates from 2015 to 2040 . The master separation agreement requires that we and our former Parent 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. Subsequent to December 31, 2015, our former Parent has been released from all but approximately $90 million of the performance guarantees. Net Transfers from our former Parent Net transfers from our 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 net transfers of cash and assets to our former Parent prior to the spin-off. After the spin-off transaction on June 30, 2015, there have been no significant transfers to or from our former Parent. Year Ended December 31, (In thousands) 2015 2014 2013 Sales to former Parent $ 911 $ 5,896 $ 37,552 Corporate administrative expenses 35,343 73,329 76,739 Income tax allocation 11,872 3,378 21,956 Acquisition of business, net of cash acquired — 127,704 — Cash pooling and general financing activities (91,015 ) 14,261 (13,698 ) Cash contribution received at spin-off 125,300 — — Net transfer from former Parent per statement of cash flows 80,589 213,137 47,445 Non-cash items: Net transfer of assets and liabilities 44,706 (62 ) (37 ) Distribution of Nuclear Energy segment (47,839 ) — — Net transfer from former Parent per statement of shareholders’ equity $ 77,456 $ 213,075 $ 47,408 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION 2015 Long-Term Incentive Plan of Babcock & Wilcox Enterprises, Inc. Prior to the spin-off, executive officers, key employees, members of the board of directors and consultants of B&W 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 B&W are 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 5.8 million , of which 2.0 million remain available as of December 31, 2015. In connection with the spin-off, outstanding stock options and restricted stock units granted under the BWC Plan prior to 2015 were replaced with both an adjusted BWC award and a new B&W stock award. These awards, when combined, had 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 were generally converted into unvested rights to receive the value of deemed target performance in unrestricted shares of a combination of BWC common stock and B&W common stock, determined by reference to the ratio of one share of B&W 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. Company Stock Options The fair value of each option grant was estimated at the date of grant using Black-Scholes, with the following weighted-average assumptions: Year Ended December 31, 2015 2014 2013 Risk-free interest rate 1.38 % 0.97 % 0.56 % Expected volatility 28 % 30 % 33 % Expected life of the option in years 3.96 3.76 3.93 Expected dividend yield — % 1.22 % 1.19 % The risk-free interest rate is based on the implied yield on a United States Treasury zero-coupon issue with a remaining term equal to the expected life of the option. The expected volatility is based on implied volatility from publicly traded options on our common stock, historical volatility of the price of our common stock and other factors. The expected life of the option is based on observed historical patterns. The expected dividend yield is based on the projected annual dividend payment per share divided by the stock price at the date of grant. This amount is zero in 2015 because we did not expect to pay dividends on the dates the 2015 stock options were awarded. The following table summarizes activity for our stock options for the post-spin period from July 1, 2015 through December 31, 2015 (Share data in thousands) Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 2,747 $ 17.42 Granted 52 19.90 Exercised (433 ) 14.58 Cancelled/expired/forfeited (6 ) 19.12 Outstanding at end of period 2,360 $ 17.99 6.78 $ 6,803.3 Exercisable at end of period 759 $ 17.15 3.66 $ 2,821.6 The aggregate intrinsic value included in the table above represents the total pretax intrinsic value that would have been received by the option holders had all option holders exercised their options on December 31, 2015 . The intrinsic value is calculated as the total number of option shares multiplied by the difference between the closing price of our common stock on the last trading day of the period and the exercise price of the options. This amount changes based on the price of our common stock. The weighted-average fair value of the stock options granted in the years ended December 31, 2015 , 2014 and 2013 was $4.80 , $7.03 and $6.07 , respectively. During the years ended December 31, 2015 , 2014 and 2013 , the total intrinsic value of stock options exercised was $2.3 million , $0.9 million and $1.0 million , respectively. The actual tax benefits realized related to the stock options exercised during the year ended December 31, 2015 were not significant. Company Restricted Stock Units Nonvested restricted stock units for the post-spin period from July 1, 2015 through December 31, 2015 were as follows: (Share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period 1,103 $ 19.53 Granted 56 19.88 Vested (159 ) 19.73 Cancelled/forfeited (1 ) 21.59 Nonvested at end of period 999 $ 19.30 The actual tax benefits realized related to the restricted stock units vested during the year ended December 31, 2015 were $1.1 million . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Investigations and Litigation 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 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 announced 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 substantially completed and a trial date has been set for June 2016. 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: Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities, including, among other things: • performance- or warranty-related matters under our customer and supplier contracts and other business arrangements; and • workers' compensation claims, premises liability claims and other claims. Based upon our prior experience, we do not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Insurance: Upon the February 22, 2006 effectiveness of the settlement relating to the Chapter 11 proceedings involving several of our subsidiaries, most of our subsidiaries contributed substantial insurance rights to the asbestos personal injury trust, including rights to (1) certain pre-1979 primary and excess insurance coverages and (2) certain of our 1979-1986 excess insurance coverage. These insurance rights provided coverage for, among other things, asbestos and other personal injury claims, subject to the terms and conditions of the policies. The contribution of these insurance rights was made in exchange for the agreement on the part of the representatives of the asbestos claimants, including the representative of future claimants, to the entry of a permanent injunction, pursuant to Section 524(g) of the United States Bankruptcy Code, to channel to the asbestos trust all asbestos-related claims against our subsidiaries and former subsidiaries arising out of, resulting from or attributable to their operations, and the implementation of related releases and indemnification provisions protecting those subsidiaries and their affiliates from future liability for such claims. Although we are not aware of any significant, unresolved claims against our subsidiaries and former subsidiaries that are not subject to the channeling injunction and that relate to the periods during which such excess insurance coverage related, with the contribution of these insurance rights to the asbestos personal injury trust, it is possible that we could have underinsured or uninsured exposure for non-derivative asbestos claims or other personal injury or other claims that would have been insured under these coverages had the insurance rights not been contributed to the asbestos personal injury trust. |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Operating Leases | OPERATING LEASES Future minimum payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year at December 31, 2015 are as follows (in thousands): Fiscal Year Ending December 31, Amount 2016 $ 5,443 2017 $ 4,394 2018 $ 3,128 2019 $ 1,968 2020 $ 1,158 Thereafter $ 337 Total rental expense for the years ended December 31, 2015 , 2014 and 2013 was $13.5 million , $6.9 million and $6.3 million , respectively. These expense amounts include contingent rentals and are net of sublease income, neither of which is material. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 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 on June 30, 2015. We received corporate allocations from our former Parent as described in Note 1, which totaled $2.7 million , $5.3 million and $9.8 million for the years ended December 31, 2015, 2014 and 2013, respectively. Though these allocations relate to our discontinued NE segment, they are included as part of selling, general and administrative expenses in the results from our 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: Six Months Ended June 30, Twelve Months Ended December 31, (In thousands) 2015 2014 2013 Revenues $ 53,064 $ 103,690 $ 153,313 Income (loss) before provision for income taxes 3,358 (19,072 ) 44,532 Income tax provision (benefit) 555 (4,800 ) 10,195 Income from discontinued operations, net of tax $ 2,803 $ (14,272 ) $ 34,337 The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 consolidated and combined balance sheet: (In thousands) December 31, 2014 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 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Investments | INVESTMENTS The following is a summary of our investments at December 31, 2015 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 3,997 $ — $ (1 ) $ 3,996 Mutual funds 1,172 — (79 ) 1,093 Total $ 5,169 $ — $ (80 ) $ 5,089 The following is a summary of our investments at December 31, 2014 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 1,607 $ — $ — $ 1,607 Asset-backed securities and collateralized mortgage obligations 248 — (34 ) 214 Total $ 1,855 $ — $ (34 ) $ 1,821 Proceeds, gross realized gains and gross realized losses on sales of available-for-sale securities is as follows: (In thousands) Proceeds Gross Realized Gains Gross Realized Losses Year Ended December 31, 2015 $ (5,265 ) $ 49 $ (15 ) Year Ended December 31, 2014 (10,119 ) 15 (2 ) Year Ended December 31, 2013 (3,974 ) — — |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS We have designated all of our FX forward contracts that qualify for hedge accounting as cash flow hedges. The hedged risk is the risk of changes in functional-currency-equivalent cash flows attributable to changes in FX spot rates of forecasted transactions related to long-term contracts. We exclude from our assessment of effectiveness the portion of the fair value of the FX forward contracts attributable to the difference between FX spot rates and FX forward rates. At December 31, 2015 , we had deferred approximately $1.8 million of net gains on these derivative financial instruments in accumulated other comprehensive income (loss). Assuming market conditions continue, we expect to recognize substantially all of this amount in the next twelve months. At December 31, 2015 , our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $74.3 million at December 31, 2015 , with maturities extending to August 2017 . These instruments consist primarily of contracts to purchase or sell euros and British pounds sterling. We are exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. We attempt to mitigate this risk by using major financial institutions with high credit ratings. The counterparties to all of our FX forward contracts are financial institutions included in our credit facility. Our hedge counterparties have the benefit of the same collateral arrangements and covenants as described under our credit facility. The following tables summarize our derivative financial instruments at December 31, 2015 and 2014 : Asset and Liability Derivatives December 31, (In thousands) 2015 2014 Derivatives Designated as Hedges: Foreign Exchange Contracts: Location Accounts receivable-other $ 1,545 $ 88 Other assets 688 — Accounts payable 17 89 Other liabilities $ — — Derivatives Not Designated as Hedges: Foreign Exchange Contracts: Location Accounts receivable-other 72 175 Other assets — — Accounts payable 101 284 The effects of derivatives on our financial statements are outlined below: December 31, (In thousands) 2015 2014 Derivatives Designated as Hedges: Cash Flow Hedges Foreign Exchange Contracts Amount of loss recognized in other comprehensive income $ 2,920 $ (47 ) Location Revenues 546 (53 ) Cost of operations 155 13 Other-net (24 ) (6 ) Location Other-net 252 (339 ) Derivatives Not Designated as Hedges: Forward Contracts Location Other-net $ 206 $ (184 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS FASB Topic Fair Value Measurements and Disclosures defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. This topic also sets forth the disclosure requirements regarding fair value and establishes a hierarchy for valuation inputs that emphasizes the use of observable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy established by this topic is as follows: • Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets. • Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for similar or identical instruments in inactive markets and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets and liabilities. • Level 3 – inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models and similar valuation techniques. The following sections describe the valuation methodologies we use to measure the fair values of our investments, derivatives and nonrecurring fair value measurements. Available-for-Sale Securities Investments primarily include money market funds and commercial paper. In general, and where applicable, we principally use a composite of observable prices and quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to our Level 1 and Level 2 investments. Based on our analysis of these investments, we believe that none of our available-for-sale securities were other than temporarily impaired at December 31, 2015 . Fair Value Measurements The following is a summary of our available-for-sale securities measured at fair value at December 31, 2015 : (In thousands) 12/31/2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total $ 5,089 $ — $ 5,089 $ — The following is a summary of our available-for-sale securities measured at fair value at December 31, 2014 : (In thousands) 12/31/2014 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 $ — 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 December 31, 2015 and 2014 , we had forward contracts outstanding to purchase or sell foreign currencies, primarily Euros and British pounds sterling, with a total fair value of $2.2 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 eq u ivalents and restricted cash and cash equivalents: The carrying amounts that we have reported in the accompanying consolidated balance sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature. Guarantee: In the third quarter of 2014, B&W issued a letter of credit with a 4 year term totaling approximately $10 million in support of a bank loan borrowed by Thermax Babcock & Wilcox Energy Solutions Private Limited ("TBWES"). TBWES is an unconsolidated affiliate and the letter of credit can be drawn if TBWES defaults on the loan. We recognized the fair value of this guarantee totaling $1.7 million in other liabilities on our consolidated and combined balance sheets at December 31, 2015 and 2014 with an associated increase to our investments in unconsolidated affiliates. |
Segments and Other Financial In
Segments and Other Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments and Other Financial Information | SEGMENTS AND OTHER FINANCIAL INFORMATION Reportable segments Our reportable segments are based on three reportable segments, as described in Note 2. The operations of our segments are managed separately and each has unique technology, services and customers. We account for intersegment sales at prices that we generally establish by reference to similar transactions with unaffiliated customers. Reportable segments are measured based on gross profit. Segment financial information Year Ended December 31, (In thousands) 2015 2014 2013 REVENUES Global Power: New Build Environmental Equipment $ 150,920 $ 171,175 $ 310,327 New Build Steam Generation Systems 489,050 300,754 402,134 639,970 471,929 712,461 Global Services: Parts and Technical Services 282,369 311,294 304,598 Projects 297,567 286,094 406,196 Construction Services 279,969 242,295 279,997 Operations and Maintenance 73,725 68,999 64,399 933,630 908,682 1,055,190 Industrial Environmental: Environmental Solutions 90,343 48,938 — Engineered Equipment 32,002 21,190 — Aftermarket Services 61,350 35,290 — 183,695 105,418 — $ 1,757,295 $ 1,486,029 $ 1,767,651 (In thousands) Year Ended December 31, 2015 2014 2013 GROSS PROFIT Global Power $ 111,309 $ 94,647 $ 126,275 Global Services 192,241 193,629 225,434 Industrial Environmental 48,914 24,961 — Mark to market adjustment included in costs of operations (44,307 ) (94,204 ) 84,772 $ 308,157 $ 219,033 $ 436,481 Selling, general and administrative (244,065 ) (218,038 ) (211,401 ) Research and development (16,543 ) (18,483 ) (21,043 ) Loss on asset disposal and impairments (14,597 ) (1,752 ) (1,181 ) Equity in income of investees (242 ) 8,681 18,387 Restructuring activities (14,946 ) (20,183 ) (18,343 ) Mark to market adjustment included in selling, general and administrative expenses 4,097 (7,233 ) 7,331 Operating income (loss) $ 21,861 $ (37,975 ) $ 210,231 Included in operating income (loss) above are the following: (In thousands) Year Ended December 31, 2015 2014 2013 EQUITY IN INCOME OF INVESTEES Global Power $ (3,295 ) $ (1,717 ) $ 7,097 Global Services 3,054 10,398 11,290 $ (242 ) $ 8,681 $ 18,387 (In thousands) Year Ended December 31, 2015 2014 2013 DEPRECIATION AND AMORTIZATION Global Power $ 4,424 $ 3,988 $ 3,917 Global Services 12,655 15,806 17,950 Industrial Environmental 10,345 8,197 — Segment depreciation and amortization 27,424 27,991 21,867 Corporate 7,508 4,445 1,163 Total depreciation and amortization $ 34,932 $ 32,436 $ 23,030 We do not separately identify or report our Company's assets by segment as the majority of our assets are shared by the Global Power and Global Services segments. Additionally, our chief operating decision maker does not consider assets by segment to be a critical measure by which performance is measured. Information about our consolidated operations in different geographic areas Year Ended December 31, 2015 2014 2013 (In thousands) REVENUES (1) United States $ 1,034,653 $ 934,397 $ 1,144,853 Canada 134,276 136,382 235,815 United Kingdom 126,285 61,972 20,042 Denmark 116,064 65,436 56,336 Dominican Republic 82,916 27,399 473 Vietnam 46,803 3,829 1,946 China 41,921 53,005 52,932 Chile 19,503 15,686 9,240 Germany 19,233 22,792 22,869 Sweden 18,302 29,786 37,823 India 13,108 5,070 4,670 France 6,377 6,188 2,173 Finland 6,113 4,926 — Poland 5,437 3,343 1,748 Columbia 4,904 8,037 44,622 Italy 4,671 3,540 2,532 Netherlands 4,651 1,441 8,099 Thailand 4,606 8,113 2,650 South Africa 4,486 3,137 2,208 South Korea 4,358 14,149 5,926 Saudi Arabia 4,220 8,003 8,200 Greenland 3,172 920 — Mexico 2,933 2,344 3,461 Australia 2,817 2,540 1,808 Spain 2,311 1,102 640 Brazil 2,176 3,156 2,751 Malaysia 2,173 706 1,808 Taiwan 2,141 1,007 1,144 Tunisia 1,868 169 — Indonesia 1,730 5,324 6,227 Other Countries 33,087 52,130 84,655 $ 1,757,295 $ 1,486,029 $ 1,767,651 (1) We allocate geographic revenues based on the location of the customer's operations. NET PROPERTY, PLANT AND EQUIPMENT United States $ 88,840 $ 82,209 $ 77,993 Canada 1,201 3,757 6,581 China 13,956 12,356 10,980 Mexico 24,643 12,106 8,312 United Kingdom 8,070 8,638 9,414 Denmark 6,265 6,963 8,715 Germany 1,270 1,536 2,060 Other Countries 1,472 7,672 6,852 $ 145,717 $ 135,237 $ 130,907 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (In thousands, except shares and per share amounts) 2015 2014 2013 Income (loss) from continuing operations $ 16,338 $ (12,256 ) $ 140,189 Income (loss) from discontinued operations, net of tax 2,803 (14,272 ) 34,338 Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 19,141 $ (26,528 ) $ 174,527 Weighted average common shares used to calculate basic earnings per common share 53,487,071 54,238,631 55,950,875 Dilutive effect of stock options, restricted stock and performance shares (1) 221,912 — 391,834 Weighted average common shares used to calculate diluted earnings per common share 53,708,983 54,238,631 56,342,709 Basic earnings (loss) per common share: Continuing operations $ 0.31 $ (0.23 ) $ 2.51 Discontinued operations $ 0.05 (0.26 ) 0.61 Basic earnings (loss) per common share $ 0.36 $ (0.49 ) $ 3.12 Diluted earnings (loss) per common share: Continuing operations $ 0.30 $ (0.23 ) $ 2.49 Discontinued operations $ 0.06 (0.26 ) 0.61 Diluted earnings (loss) per common share $ 0.36 $ (0.49 ) $ 3.10 (1) At December 31, 2015 and 2013 , we excluded from the diluted share calculation 1,286,102 and 221,113 shares, respectively, related to stock options, as their effect would have been anti-dilutive. |
Share Repurchases
Share Repurchases | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Share Repurchases | SHARE REPURCHASES On August 4, 2015, we announced that our board of directors authorized the repurchase of an indeterminate number of our shares of common stock in the open market at an aggregate market value of up to $100 million . We repurchased 1.3 million shares of our common stock for $24.3 million during 2015, and 1.2 million shares of our common stock for $23.3 million in the period from January 1, 2016 through February 25, 2016. We are authorized to repurchase up to $52.4 million more of our common stock through June 8, 2017. Any shares purchased that were not part of our publicly announced plan are related to repurchases of common stock pursuant to the provisions of employee benefit plans that permit the repurchase of shares to satisfy statutory tax withholding obligations. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables set forth selected unaudited quarterly financial information for the years ended December 31, 2015 and 2014 : (In thousands, except per share amounts) Year Ended December 31, 2015 March 31, 2015 June 30, 2015 Sept. 30, 2015 Dec. 31, 2015 Revenues $ 397,155 $ 437,485 $ 419,977 $ 502,678 Gross profit $ 83,397 $ 81,884 $ 77,922 $ 64,954 Operating income (loss) (1) $ 17,343 $ 4,859 $ 9,632 $ (9,973 ) Equity in income (loss) of investees $ (2,071 ) $ 967 $ 1,047 $ (185 ) Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 12,689 $ 5,487 $ 6,169 $ (5,204 ) Earnings per common share Basic Continuing $ 0.21 $ 0.08 $ 0.11 $ (0.10 ) Discontinued $ 0.03 $ 0.02 $ — $ — Diluted Continuing $ 0.21 $ 0.08 $ 0.11 $ (0.10 ) Discontinued $ 0.03 $ 0.02 $ — $ — (1) Includes equity in income of investees. (In thousands, except per share amounts) Year Ended December 31, 2014 March 31, 2014 June 30, 2014 Sept. 30, 2014 Dec. 31, 2014 Revenues $ 312,078 $ 327,379 $ 402,016 $ 444,556 Gross profit $ 56,851 $ 69,028 $ 88,370 $ 4,784 Operating income (loss) (1) $ 4,515 $ 3,170 $ 25,542 $ (71,202 ) Equity in income (loss) of investees $ 2,366 $ 433 $ 2,859 $ 3,023 Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 11,089 $ 4,936 $ 5,609 $ (48,162 ) Earnings per common share Basic Continuing $ 0.13 $ 0.03 $ 0.24 $ (0.63 ) Discontinued $ 0.07 $ 0.06 $ (0.14 ) $ (0.27 ) Diluted Continuing $ 0.13 $ 0.03 $ 0.24 $ (0.63 ) Discontinued $ 0.07 $ 0.06 $ (0.14 ) $ (0.27 ) (1) Includes equity in income of investees. We recognize actuarial gains and losses for our pension and postretirement benefit plans into earnings in the fourth quarter of each year as a component of net periodic benefit cost. The effect of these adjustments on pre-tax income in the quarters ended December 31, 2015 and 2014 were $40.2 million and $99.3 million , respectively. Additionally, in the quarter ended September 30, 2014, we recognized a pre-tax loss of $2.0 million because of the interim remeasurement requirement resulting from settlements of certain Canadian pension obligations. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Reportable Segments | Reportable 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 and waste heat boilers. 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. For financial information about our segments, see Note 17 to our consolidated and combined financial statements. |
Use of Estimates | Use of Estimates We use estimates and assumptions to prepare our financial statements in conformity with GAAP. Some of our more significant estimates include our estimate of costs to complete long-term construction contracts, estimates of costs to be incurred to satisfy contractual warranty requirements, estimates of the value of acquired intangible assets and estimates we make in selecting assumptions related to the valuations of our pension and postretirement plans, including the selection of our discount rates, mortality and expected rates of return on our pension plan assets. These estimates and assumptions affect the amounts we report in our financial statements and accompanying notes. Our actual results could differ from these estimates. Variances could result in a material effect on our financial condition and results of operations in future periods. |
Earnings Per Share | Earnings Per Share We have computed earnings per common share on the basis of the weighted average number of common shares, and, where dilutive, common share equivalents, outstanding during the indicated periods. We have a number of forms of stock-based compensation, including incentive and non-qualified stock options, restricted stock, restricted stock units, performance shares and performance units, subject to satisfaction of specific performance goals. We include the shares applicable to these plans in dilutive earnings per share when related performance criteria have been met. |
Investments | Investments Our investments, primarily highly liquid money market instruments, are classified as available-for-sale and are carried at fair value, with the unrealized gains and losses, net of tax, reported as a component of accumulated other comprehensive income (loss). We classify investments available for current operations in the consolidated and combined balance sheets as current assets, while we classify investments held for long-term purposes as noncurrent assets. We adjust the amortized cost of debt securities for amortization of premiums and accretion of discounts to maturity. That amortization is included in interest income. We include realized gains and losses on our investments in other - net in our consolidated and combined statements of operations. The cost of securities sold is based on the specific identification method. We include interest on securities in interest income. |
Foreign Currency Translation | Foreign Currency Translation We translate assets and liabilities of our foreign operations into United States dollars at current exchange rates, and we translate items in our statement of operations at average exchange rates for the periods presented. We record adjustments resulting from the translation of foreign currency financial statements as a component of accumulated other comprehensive income (loss). We report foreign currency transaction gains and losses in income. |
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. As of December 31, 2015 , we have estimated the costs to complete all of our in-process contracts in order to estimate revenues in accordance with the percentage-of-completion method of accounting. However, it is possible that current estimates could change due to unforeseen events, which could result in adjustments to overall contract costs. The risk on fixed-priced contracts is that revenue from the customer does not cover increases in our costs. It is possible that current estimates could materially change for various reasons, including, but not limited to, fluctuations in forecasted labor productivity or steel and other raw material prices. Increases in costs on our fixed-price contracts could have a material adverse impact on our consolidated financial condition, results of operations and cash flows. Alternatively, reductions in overall contract costs at completion could materially improve our consolidated financial condition, results of operations and cash flows. Variations from estimated contract performance could result in material adjustments to operating results for any fiscal quarter or year. We recognize accrued claims in contract revenues for extra work or changes in scope of work to the extent of costs incurred when we believe the following accounting criteria have been met: a) The contract or other evidence provides a legal basis for the claim; or a legal opinion has been obtained, stating that under the circumstances there is a reasonable basis to support the claim. b) Additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of deficiencies in the contractor's performance. c) Costs associated with the claim are identifiable or otherwise determinable and are reasonable in view of the work performed. d) The evidence supporting the claim is objective and verifiable, not based on management's feel for the situation or on unsupported representations. |
Warranty Expense | Warranty Expense We accrue estimated expense included in cost of operations on our consolidated and combined statements of operations to satisfy contractual warranty requirements when we recognize the associated revenues 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. |
Research and Development | Research and Development Our research and development activities are related to the development and improvement of new and existing products, services and equipment. |
Pension Plans and Postretirement Benefits | Pension Plans and Postretirement Benefits We sponsor various defined benefit pension and postretirement plans covering certain employees of our United States and international subsidiaries. We utilize actuarial valuations to calculate the cost and benefit obligations of our pension and postretirement benefits. The actuarial valuations utilize significant assumptions in the determination of our benefit cost and obligations, including assumptions regarding discount rates, expected returns on plan assets, mortality and health care cost trends. We determine our discount rate based on a review of published financial data and discussions with our actuary regarding rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement plan obligations. For 2016, we will change our approach to setting the discount rate from a single equivalent discount rate to an alternative spot rate method. This change in estimate will be applied prospectively in developing our annual discount rate, which will result in a lower interest and service cost in 2016. The impact of the change in estimate did not change our pension and other postretirement benefits liability as of December 31, 2015, because any change is completely offset in the net actuarial gain (loss) recorded in the annual mark to market adjustment. This new method was adopted because it more accurately applies each year’s spot rates to the projected cash flows. In 2014, we adjusted our mortality assumption to reflect mortality improvements identified by the Society of Actuaries, adjusted for our experience. The impact of the change in this assumption caused a $46.9 million increase in our pension liability. The expected rate of return on plan assets assumption is based on capital market assumptions of the long-term expected returns for the investment mix of assets currently in the portfolio. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the classes within the total asset portfolio. Expected health care cost trends represent expected annual rates of change in the cost of health care benefits and are estimated based on analysis of health care cost inflation. For the years ended December 31, 2015 and 2014 , we adjusted the mortality assumption for our domestic plans to reflect mortality improvements identified by the Society of Actuaries, adjusted for our experience. The components of benefit cost related to service cost, interest cost, expected return on plan assets and prior service cost amortization are recorded on a quarterly basis based on actuarial assumptions. In the fourth quarter of each year, or as interim remeasurements are required, we recognize net actuarial gains and losses into earnings as a component of net periodic benefit cost (mark to market adjustment). Recognized net actuarial gains and losses consist primarily of our reported actuarial gains and losses and the difference between the actual return on plan assets and the expected return on plan assets. We recognize the funded status of each plan as either an asset or a liability in the consolidated and combined balance sheets. The funded status is the difference between the fair value of plan assets and the present value of its benefit obligation, determined on a plan-by-plan basis. See Note 8 for a detailed description of our plan assets. |
Income Taxes | Income Taxes Income tax expense for federal, foreign, state and local income taxes are calculated on pre-tax income based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. Before the spin-off, we were included in the consolidated United States federal and certain consolidated/combined state tax returns filed by BWC. After the spin-off, we file our own federal and state income tax returns. Both prior to and after the spin-off, our foreign subsidiaries operate and file tax returns in various foreign jurisdictions. For both the pre-spin and post-spin periods, we compute the provision for income taxes on a separate tax return basis as if we filed our own tax returns. For the pre-spin period, we deem the amounts that we would have paid or received from the United States Internal Revenue Service and certain state jurisdictions had we not been a member of BWC's consolidated tax group to be immediately settled with BWC. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We assess deferred taxes and the adequacy of the valuation allowance on a quarterly basis. In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We record interest and penalties (net of any applicable tax benefit) related to income taxes as a component of provision for income taxes on our consolidated and combined statements of operations. |
Inventories | Inventories We carry our inventories at the lower of cost or market. We determine cost principally on the first-in, first-out basis, except for certain materials inventories of our Global Services segment, for which we use the last-in, first-out ("LIFO") method. |
Property, Plant and Equipment | Property, Plant and Equipment We carry our property, plant and equipment at depreciated cost, less any impairment provisions. We depreciate our property, plant and equipment using the straight-line method over estimated economic useful lives of eight to 33 years for buildings and three to 28 years for machinery and equipment. Our depreciation expense was $23.5 million , $22.3 million and $18.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. We expense the costs of maintenance, repairs and renewals that do not materially prolong the useful life of an asset as we incur them. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates We use the equity method of accounting for affiliates in which we are able to exert significant influence. Currently, substantially all of our material investments in affiliates that are not consolidated are recorded using the equity method. Affiliates in which our investment ownership is less than 20% and where we are unable to exert significant influence are carried at cost. |
Goodwill | Goodwill Goodwill represents the excess of the cost of our acquired businesses over the fair value of the net assets acquired. We perform testing of goodwill for impairment annually. We may elect to perform a qualitative test when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant events and circumstances that could affect fair value during the current year. If we conclude based on this assessment that it is more likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test. In all other circumstances, we utilize a two-step quantitative impairment test to identify potential goodwill impairment and measure the amount of any goodwill impairment. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. |
Intangible Assets | Intangible Assets Intangible assets are recognized at fair value when acquired. Intangible assets with definite lives are amortized to operating expense using the straight-line method over their estimated useful lives and tested for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Intangible assets with indefinite lives are not amortized and are subject to annual impairment testing. We may elect to perform a qualitative assessment when testing indefinite lived intangible assets for impairment to determine whether events or circumstances affecting significant inputs related to the most recent quantitative evaluation have occurred, indicating that it is more likely than not that the indefinite lived intangible asset is impaired. Otherwise, we test indefinite lived intangible assets for impairment by quantitatively determining the fair value of the indefinite lived intangible asset and comparing the fair value of the intangible asset to its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, we recognize impairment for the amount of the difference. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Our cash equivalents are highly liquid investments, with maturities of three months or less when we purchase them. We record cash and cash equivalents as restricted when we are unable to freely use such cash and cash equivalents for our general operating purposes. |
Derivative Financial Instruments | Derivative Financial Instruments Our global operations expose us to 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 consolidated and combined balance sheets and defer the related gains and losses in stockholders' equity as a component of accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. Any ineffective portion of a derivative's change in fair value and any portion excluded from the assessment of effectiveness is immediately recognized in other – net on our 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. Gains and losses on derivative financial instruments that require immediate recognition are included as a component of other – net in our consolidated and combined statements of operations. |
Self-Insurance | Self-Insurance We have a wholly owned insurance subsidiary that provides employer's liability, general and automotive liability and workers' compensation insurance and, from time to time, builder's risk insurance (within certain limits) to our companies. We may also, in the future, have this insurance subsidiary accept other risks that we cannot or do not wish to transfer to outside insurance companies. |
Loss Contingencies | Loss Contingencies We estimate liabilities for loss contingencies when it is probable that a liability has been incurred and the amount of loss is reasonably estimable. We provide disclosure when there is a reasonable possibility that the ultimate loss will exceed the recorded provision or if such probable loss is not reasonably estimable. We are currently involved in some significant litigation, as discussed in Note 10. Our losses are typically resolved over long periods of time and are often difficult to assess and estimate due to, among other reasons, the possibility of multiple actions by third parties; the attribution of damages, if any, among multiple defendants; plaintiffs, in most cases involving personal injury claims, do not specify the amount of damages claimed; the discovery process may take multiple years to complete; during the litigation process, it is common to have multiple complex unresolved procedural and substantive issues; the potential availability of insurance and indemnity coverages; the wide-ranging outcomes reached in similar cases, including the variety of damages awarded; the likelihood of settlements for de minimus amounts prior to trial; the likelihood of success at trial; and the likelihood of success on appeal. Consequently, it is possible future earnings could be affected by changes in our assessments of the probability that a loss has been incurred in a material pending litigation against us and/or changes in our estimates related to such matters. |
Stock-Based Compensation | Stock-Based Compensation We expense stock-based compensation in accordance with Financial Accounting Standards Board ("FASB") Topic Compensation – Stock Compensation. Under this topic, the fair value of equity-classified awards, such as restricted stock, performance shares and stock options, is determined on the date of grant and is not remeasured. The fair value of liability-classified awards, such as cash-settled stock appreciation rights, restricted stock units and performance units, is determined on the date of grant and is remeasured at the end of each reporting period through the date of settlement. Grant date fair values for restricted stock, restricted stock units, performance shares and performance units are determined using the closing price of our common stock on the date of grant. Grant date fair values for stock options and stock appreciation rights are determined using a Black-Scholes option-pricing model ("Black-Scholes"). For performance shares or units granted in the year ended December 31, 2015 that contain a Relative Total Shareholder Return vesting criteria, we utilize a Monte Carlo simulation to determine the grant date fair value, which determines the probability of satisfying the market condition included in the award. The determination of the fair value of a share-based payment award using an option-pricing model requires the input of significant assumptions, such as the expected life of the award and stock price volatility. Under the provisions of this FASB topic, we recognize expense, net of an estimated forfeiture rate, for all share-based awards granted on a straight-line basis over the requisite service periods of the awards, which is generally equivalent to the vesting term. This topic requires compensation expense to be recognized, net of an estimate for forfeitures, such that compensation expense is recorded only for those awards expected to vest. We review the estimate for forfeitures periodically and record any adjustments deemed necessary for each reporting period. If our actual forfeiture rate is materially different from our estimate, the stock-based compensation expense could be significantly different from what we have recorded in the current period. Additionally, this FASB topic amended FASB Topic Statement of Cash Flows , to require excess tax benefits to be reported as a financing cash flow, rather than as a reduction of taxes paid. These excess tax benefits result from tax deductions in excess of the cumulative compensation expense recognized for options exercised and other equity-classified awards. See Note 10 for a further discussion of stock-based compensation. |
Recently Adopted Accounting Standards | Recently Adopted 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. In August 2015, ASU No. 2015-03 was updated by ASU No. 2015-15, Imputation of Interest. ASU No. 2015-15 adds paragraphs pursuant to the Securities and Exchange Commission Staff Announcement permitting companies to continue to record debt issuance costs associated with a line-of-credit as an asset. This ASU was effective upon issuance. We have elected to early adopt these standards and debt issuance costs related to our Credit Facility are included in other assets on the consolidated and combined balance sheets. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. The ASU required companies to classify all deferred tax assets and liabilities as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. Because early adoption is permitted, we adopted the standard upon issuance and have prospectively reflected the Company's deferred tax assets and liabilities as non-current in our December 31, 2015 consolidated balance sheet. Deferred taxes on our December 31, 2014 consolidated balance sheet have not been reclassified to conform with the 2015 presentation of deferred tax balances. |
New Accounting Standards | New Accounting Standards 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 adopting this standard. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The ASU outlines the principles companies must apply to measure and recognize revenue and the corresponding cash flows it expects to be entitled to for the transfer of promised goods or services to customers. The update becomes effective for reporting periods (interim and annual) beginning after December 15, 2017. We are currently evaluating the impact of adopting this standard. |
Significant Accounting Polici29
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Changes in Estimates Related to Long-Term Contracts | In the years ended December 31, 2015, 2014 and 2013, we recognized changes in estimates related to long-term contracts accounted for on the percentage-of-completion basis, which are summarized as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Increases in estimates for percentage-of-completion contracts $ 36,653 $ 50,565 $ 49,154 Decreases in estimates for percentage-of-completion contracts (36,235 ) (24,234 ) (40,315 ) Net changes in estimates for percentage-of-completion contracts $ 418 $ 26,331 $ 8,839 |
Contracts in Progress and Advance Billings | The following represent the components of our contracts in progress and advance billings on contracts included in our consolidated balance sheets: December 31, (In thousands) 2015 2014 Included in contracts in progress: Costs incurred less costs of revenue recognized $ 9,966 $ 33,685 Revenues recognized less billings to customers 118,208 74,066 Contracts in progress $ 128,174 $ 107,751 Included in advance billings on contracts: Billings to customers less revenues recognized $ 221,244 $ 143,904 Costs of revenue recognized less cost incurred 8,146 4,194 Advance billings on contracts $ 229,390 $ 148,098 |
Retainages on Contracts | The following amounts represent retainages on contracts: December 31, (In thousands) 2015 2014 Retainages expected to be collected within one year $ 24,906 $ 19,978 Retainages expected to be collected after one year 5,329 7,360 Total retainages $ 30,235 $ 27,338 |
Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income (loss) included in stockholders' equity are as follows: December 31, (In thousands) 2015 2014 2013 Currency translation adjustments $ (19,493 ) $ 11,551 $ 38,409 Net unrealized gain on available-for-sale investments (44 ) (22 ) (20 ) Net unrealized gain (loss) on derivative financial instruments 1,786 (123 ) 627 Unrecognized prior service cost on benefit obligations (1,102 ) (1,032 ) (3,678 ) Accumulated other comprehensive income (loss) $ (18,853 ) $ 10,374 $ 35,338 |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | The amounts reclassified out of accumulated other comprehensive income (loss) by component and the affected consolidated statements of operations line items are as follows: Accumulated Other Comprehensive Income Component Recognized Year ended December 31, Line Item Presented 2015 2014 2013 (In thousands) Realized (loss) gain on derivative financial instruments $ 546 $ (53 ) $ (285 ) Revenues 155 13 — Cost of operations (24 ) (6 ) 143 Other-net 677 (46 ) (142 ) Total before tax (149 ) 11 2 Provision for income taxes 528 (35 ) (140 ) Net income Amortization of prior service cost on benefit obligations (1,475 ) (457 ) (772 ) Cost of operations 1,168 183 281 Provision for income taxes (307 ) (274 ) (491 ) Net income Realized gains on investments (42 ) — — Other-net 15 — — Provision for income taxes (27 ) — — Net income Total reclassification for the period $ 194 $ (309 ) $ (631 ) |
Summary of Changes in Carrying Amount of Accrued Warranty Expense | The following summarizes the changes in the carrying amount of accrued warranty expense: Year Ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 37,735 $ 38,968 $ 58,339 Additions 19,310 13,726 16,468 Acquisition of MEGTEC — 4,693 — Expirations and other changes (982 ) (4,052 ) (15,728 ) Payments (15,215 ) (14,787 ) (20,185 ) Translation and other (1,001 ) (813 ) 74 Balance at end of period $ 39,847 $ 37,735 $ 38,968 |
Inventories | The components of inventories are summarized below: December 31, (In thousands) 2015 2014 Raw materials and supplies $ 68,684 $ 71,604 Work in progress 7,025 9,831 Finished goods 14,410 17,276 Total inventories $ 90,119 $ 98,711 |
Property, Plant and Equipment | Property, plant and equipment is stated at cost and is set forth below: December 31, (In thousands) 2015 2014 Land $ 7,460 $ 6,937 Buildings 104,963 114,088 Machinery and equipment 181,064 201,912 Property under construction 36,534 12,824 330,021 335,761 Less accumulated depreciation 184,304 200,524 Net property, plant and equipment $ 145,717 $ 135,237 |
Changes in Carrying Amount of Goodwill | The following summarizes the changes in the carrying amount of goodwill: (In thousands) Global Global Industrial Total Balance at December 31, 2013 $ 38,921 $ 65,709 $ — $ 104,630 Goodwill resulting from acquisition of MEGTEC (Note 3) — — 108,800 108,800 Currency translation adjustments (930 ) (3,223 ) (4,153 ) Balance at December 31, 2014 37,991 62,486 108,800 209,277 Purchase price adjustment related to MEGTEC acquisition — — (4,492 ) (4,492 ) Currency translation adjustments (1,076 ) (2,640 ) — (3,716 ) Balance at December 31, 2015 $ 36,915 $ 59,846 $ 104,308 $ 201,069 |
Schedule of Finite-Lived Intangible Assets | Our intangible assets are as follows: Year Ended December 31, (In thousands) 2015 2014 Definite-lived intangible assets: Customer relationships $ 35,729 $ 36,749 Unpatented technology 4,033 4,072 Patented technology 2,532 2,521 Tradename 9,909 9,957 Acquired backlog 10,400 10,600 All other 7,504 7,565 Gross value of definite-lived intangible assets 70,107 71,464 Customer relationships $ (12,509 ) $ (8,775 ) Unpatented technology (1,471 ) (582 ) Patented technology (1,406 ) (1,122 ) Tradename (2,883 ) (1,984 ) Acquired backlog (10,400 ) (5,300 ) All other (4,899 ) (4,360 ) Accumulated amortization (33,568 ) (22,123 ) Net definite-lived intangible assets $ 36,539 $ 49,341 Indefinite-lived intangible assets: Trademarks and trade names 1,305 1,305 Total indefinite-lived intangible assets $ 1,305 $ 1,305 The following summarizes the changes in the carrying amount of intangible assets: Year Ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 50,646 $ 18,246 Business acquisitions and adjustments 500 44,972 Amortization expense (11,445 ) (9,880 ) Impairment charge — (1,730 ) Currency translation adjustments and other (1,857 ) (962 ) Balance at end of period $ 37,844 $ 50,646 |
Schedule of Indefinite-Lived Intangible Assets | Our intangible assets are as follows: Year Ended December 31, (In thousands) 2015 2014 Definite-lived intangible assets: Customer relationships $ 35,729 $ 36,749 Unpatented technology 4,033 4,072 Patented technology 2,532 2,521 Tradename 9,909 9,957 Acquired backlog 10,400 10,600 All other 7,504 7,565 Gross value of definite-lived intangible assets 70,107 71,464 Customer relationships $ (12,509 ) $ (8,775 ) Unpatented technology (1,471 ) (582 ) Patented technology (1,406 ) (1,122 ) Tradename (2,883 ) (1,984 ) Acquired backlog (10,400 ) (5,300 ) All other (4,899 ) (4,360 ) Accumulated amortization (33,568 ) (22,123 ) Net definite-lived intangible assets $ 36,539 $ 49,341 Indefinite-lived intangible assets: Trademarks and trade names 1,305 1,305 Total indefinite-lived intangible assets $ 1,305 $ 1,305 The following summarizes the changes in the carrying amount of intangible assets: Year Ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 50,646 $ 18,246 Business acquisitions and adjustments 500 44,972 Amortization expense (11,445 ) (9,880 ) Impairment charge — (1,730 ) Currency translation adjustments and other (1,857 ) (962 ) Balance at end of period $ 37,844 $ 50,646 |
Estimated Amortization Expense | Estimated amortization expense for the next five fiscal years is as follows (in thousands): Year Ending December 31, Amount 2016 $ 5,944 2017 $ 5,822 2018 $ 5,549 2019 $ 5,195 2020 $ 4,176 |
Supplemental Cash Flow Information | During the years ended December 31, 2015 , 2014 and 2013 , we paid the following amounts for income taxes: (In thousands) 2015 2014 2013 Income taxes (net of refunds) $ 15,008 $ 7,951 $ 21,929 During the years ended December 31, 2015 , 2014 and 2013 , we recognized the following non-cash activity in our consolidated and combined financial statements: (In thousands) 2015 2014 2013 Accrued capital expenditures included in accounts payable $ 568 $ 1,680 $ 2,607 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 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: (In thousands) MEGTEC Cash and cash equivalents $ 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 Cash and cash equivalents 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): (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 is presented for comparative purposes only and should not be taken as representative of our future consolidated and combined results of operations. (Dollar amounts in thousands) Twelve months ended December 31, 2014 Twelve months ended December 31, 2013 Revenues $ 1,566,361 $ 1,944,040 Net Income (Loss) Attributable to Babcock & Wilcox Enterprises, Inc. $ (19,559 ) $ 170,221 Basic Earnings per Common Share $ (0.36 ) $ 3.04 Diluted Earnings per Common Share $ (0.36 ) $ 3.02 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Combined Balance Sheet Information | Summarized below is consolidated and combined balance sheet and statement of operations information for investments accounted for under the equity method: December 31, (In thousands) 2015 2014 Current assets $ 446,283 $ 528,950 Noncurrent assets 168,411 181,517 Total assets 614,694 710,467 Current liabilities 314,390 403,484 Noncurrent liabilities 140,349 97,419 Owners' equity 159,955 209,564 Total liabilities and equity $ 614,694 $ 710,467 |
Summary of Combined Income Statement Information | Year Ended December 31, (In thousands) 2015 2014 2013 Revenues $ 475,459 $ 645,481 $ 592,755 Gross profit 69,021 85,378 97,226 Income before provision for income taxes 3,072 22,909 39,033 Provision for income taxes 4,500 6,159 8,603 Net income $ (1,428 ) $ 16,750 $ 30,430 |
Equity Method Investments | The following table summarizes the investments in unconsolidated entities by segment reflected in our consolidated and combined balance sheets: Year Ended December 31, (In thousands) 2015 2014 2013 Global Power $ 75,946 $ 93,389 $ 99,013 Global Services 16,250 15,859 45,462 Total investment in unconsolidated affiliates $ 92,196 $ 109,248 $ 144,475 |
Reconciliation of Net Income to Equity in Income | Reconciliation of net income in the statement of operations of our investees to equity in income of investees in our consolidated and combined statements of operations is as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Equity income based on stated ownership percentages $ (542 ) $ 8,563 $ 15,280 All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments 300 118 3,107 Equity in income of investees $ (242 ) $ 8,681 $ 18,387 |
Schedule of Transactions with Unconsolidated Affiliates | Our transactions with unconsolidated affiliates were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Sales to $ 18,014 $ 70,566 $ 70,793 Purchases from 45,397 5,623 4,646 Dividends received 20,830 17,407 20,382 Capital contributions, net of returns 7,424 4,900 6,884 |
Restructuring Activities and 32
Restructuring Activities and Spin-Off Transaction Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Changes in Restructuring Liabilities | An analysis of the change in our restructuring liabilities for the years ended December 31, 2015 and 2014 is as follows: Year Ended December 31, (In thousands) 2015 2014 Liability balance at the beginning of the period $ 5,086 $ 5,601 Special charges for restructuring activities (1) 5,014 13,146 Payments (9,360 ) (13,661 ) Liability balance at the end of the period $ 740 $ 5,086 (1) Excludes non-cash charges related to accelerated depreciation and impairment charges of $ 6.7 million and $ 7.0 million for the years ended December 31, 2015 and 2014 , respectively, which did not impact the restructuring liability. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Unrecognized Tax Benefits | We apply the provisions of FASB Topic Income Taxes regarding the treatment of uncertain tax positions. A reconciliation of unrecognized tax benefits follows: Year Ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 3,321 $ 1,190 $ 1,204 Increases based on tax positions taken in the current year 88 213 — Increases based on tax positions taken in the prior years 248 2,268 276 Decreases based on tax positions taken in the prior years (1,161 ) — (290 ) Decreases due to settlements with tax authorities (1,355 ) (350 ) — Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 1,141 $ 3,321 $ 1,190 |
Components of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities as of December 31, 2015 and 2014 were as follows: December 31, (In thousands) 2015 2014 Deferred tax assets: Pension liability $ 107,748 $ 97,447 Accrued warranty expense 12,589 10,700 Accrued vacation pay 4,482 4,635 Accrued liabilities for self-insurance (including postretirement health care benefits) 14,280 17,979 Accrued liabilities for executive and employee incentive compensation 14,255 3,582 Investments in joint ventures and affiliated companies 14,100 7,472 Long-term contracts 6,963 6,622 Net operating loss carryforward 13,544 13,044 State tax net operating loss carryforward 14,409 14,617 Foreign tax credit carryforward 2,378 2,959 Other 9,206 11,272 Total deferred tax assets 213,954 190,329 Valuation allowance for deferred tax assets (10,077 ) (9,216 ) Net, total deferred tax assets 203,877 181,113 Deferred tax liabilities: Property, plant and equipment 3,379 6,136 Long-term contracts 9,084 17,932 Intangibles 13,158 8,484 Undistributed foreign earnings 1,000 500 Goodwill 1,167 5,696 Other 1,317 3,200 Total deferred tax liabilities 29,105 41,948 Net deferred tax assets $ 174,772 $ 139,165 |
Valuation Allowance for Deferred Tax Assets | The following is an analysis of our valuation allowance for deferred tax assets: (In thousands) Beginning Balance Charges To Costs and Expenses Charged To Other Accounts Ending Balance Year Ended December 31, 2015 $ (9,216 ) (861 ) — $ (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) Year Ended December 31, 2013 (9,709 ) — 2,729 (6,980 ) |
Income Before Provision for Income Taxes | Income before provision for income taxes was as follows: Year Ended December 31, (In thousands) 2015 2014 2013 U.S. $ (20,748 ) $ (64,084 ) $ 135,966 Other than U.S. 40,953 27,466 76,523 Income before provision for income taxes $ 20,205 $ (36,618 ) $ 212,489 |
Components of Provision for Income Taxes | The provision for income taxes consisted of Year Ended December 31, (In thousands) 2015 2014 2013 Current: U.S. – federal $ 24,084 $ 1,834 $ 21,956 U.S. – state and local 3,458 1,544 3,053 Other than U.S. 8,250 13,917 (9,105 ) Total current 35,792 17,295 15,904 Deferred: U.S. – Federal (35,888 ) (32,910 ) 26,648 U.S. – State and local (111 ) (572 ) 3,354 Other than U.S. 3,878 (8,541 ) 26,105 Total deferred (benefit) provision (32,121 ) (42,023 ) 56,107 Provision for income taxes $ 3,671 $ (24,728 ) $ 72,011 |
Reconciliation of U.S. Statutory Federal Tax Rate to Consolidated and Combined Effective Tax Rate | The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2015 2014 2013 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes 13.8 4.1 3.9 Foreign rate differential (13.1 ) 16.6 (3.0 ) Tax credits (14.7 ) 7.5 (4.0 ) Dividends and deemed dividends from affiliates 1.7 5.7 3.3 Valuation allowances 4.3 (6.1 ) (1.3 ) Uncertain tax positions (6.6 ) (6.7 ) 0.1 Non-deductible expenses 2.4 (2.4 ) 0.5 Manufacturing deduction (2.5 ) 11.6 (0.4 ) Other (2.1 ) 2.2 (0.2 ) Effective tax rate 18.2 % 67.5 % 33.9 % |
Pension Plans and Postretirem34
Pension Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Obligations and Funded Status | Obligations and Funded Status Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (In thousands) 2015 2014 2015 2014 Change in benefit obligation: Benefit obligation at beginning of period $ 1,253,278 $ 1,099,717 $ 34,909 $ 36,422 Service cost 13,677 13,558 24 18 Interest cost 49,501 51,181 1,143 1,087 Plan participants’ contributions 156 175 276 777 Curtailments — (146 ) — — Settlements — (2,170 ) — — Transfers /Acquisition 15,992 4,426 234 — Amendments 244 — — — Actuarial loss (gain) (47,098 ) 156,058 (296 ) 1,804 Loss (gain) due to transfer (523 ) — — — Foreign currency exchange rate changes (11,450 ) (5,575 ) (367 ) (592 ) Benefits paid (68,614 ) (63,946 ) (4,034 ) (4,607 ) Benefit obligation at end of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Change in plan assets: Fair value of plan assets at beginning of period $ 999,515 $ 935,652 $ — $ — Actual return on plan assets (19,623 ) 124,934 — — Employer contribution 8,711 8,452 3,757 3,830 Plan participants' contributions 156 175 276 777 Settlements — (2,168 ) — — Transfers 13,974 (178 ) — — Foreign currency exchange rate changes (11,089 ) (3,406 ) — — Benefits paid (68,614 ) (63,946 ) (4,034 ) (4,607 ) Fair value of plan assets at the end of period 923,030 999,515 — — Funded status $ (282,133 ) $ (253,763 ) $ (31,889 ) $ (34,909 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,927 ) $ (1,269 ) $ (4,620 ) $ (4,856 ) Accumulated postretirement benefit obligation — — (27,269 ) (30,053 ) Pension liability (281,711 ) (253,664 ) — — Prepaid pension 1,505 1,170 — — Accrued benefit liability, net $ (282,133 ) $ (253,763 ) $ (31,889 ) $ (34,909 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 1,976 $ 2,131 $ — $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,175,511 $ 1,235,100 $ — $ — Accumulated benefit obligation $ 1,172,591 $ 1,228,085 $ 31,889 $ 34,909 Fair value of plan assets $ 891,873 $ 979,834 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 29,652 $ 18,178 $ — $ — Accumulated benefit obligation $ 29,652 $ 17,178 $ — $ — Fair value of plan assets $ 31,157 $ 19,681 $ — $ — |
Components of Net Periodic Benefit Cost | Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (In thousands) 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 13,677 $ 13,558 $ 15,287 $ 24 $ 18 $ — Interest cost 49,501 51,181 46,266 1,143 1,087 1,046 Expected return on plan assets (68,709 ) (64,023 ) (62,481 ) — — — Amortization of prior service cost 307 274 491 — — Recognized net actuarial loss (gain) 41,574 99,090 (88,012 ) (1,364 ) 2,245 (4,064 ) Net periodic benefit cost (income) $ 36,350 $ 100,080 $ (88,449 ) $ (197 ) $ 3,350 $ (3,018 ) |
Recognized Net Actuarial Loss (Gain) and the Affected Consolidated Statements of Income | The recognized net actuarial loss (gain) and the affected consolidated and combined statements of operations line items are as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Cost of operations $ 44,307 $ 94,204 $ (84,772 ) Selling, general and administrative expenses (4,097 ) 7,233 (7,331 ) Other-net — (102 ) 27 Total $ 40,210 $ 101,335 $ (92,076 ) |
Weighted Average Assumptions | Assumptions Pension Benefits Other Benefits 2015 2014 2015 2014 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 3.98 % 3.99 % 3.41 % 3.40 % Rate of compensation increase 2.51 % 2.56 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 3.99 % 3.99 % 3.40 % 3.40 % Expected return on plan assets 6.98 % 7.00 % — % — % Rate of compensation increase 2.56 % 2.56 % — — |
Assumed Health-Care Cost Trend Rates | 2015 2014 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 7.50 % Rates to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches ultimate trend rate 2024 2021 |
Effect of One-Percentage-Point Change in Assumed Health-Care Cost Trend Rates | A one-percentage-point change in our assumed health care cost trend rates would have the following effects: (In thousands) One-Percentage-Point Increase One-Percentage-Point Decrease Effect on total of service and interest cost $ 22 $ (21 ) Effect on postretirement benefit obligation 1,502 (898 ) |
Summary of Total Investments Measured at Fair Value | The following is a summary of total investments for our plans measured at fair value at December 31, 2015 : (In thousands) 12/31/2015 Level 1 Level 2 Level 3 Fixed income $ 347,269 $ — $ 347,269 $ — Equities 79,761 79,761 — — Commingled and mutual funds 330,216 — 330,216 — U.S. government securities 155,975 155,975 — — Cash and accrued items 9,809 539 9,270 — Total pension and other postretirement benefit assets $ 923,030 $ 236,275 $ 686,755 $ — The following is a summary of total investments for our plans measured at fair value at December 31, 2014 : (In thousands) 12/31/2014 Level 1 Level 2 Level 3 Fixed Income $ 385,348 $ — $ 385,348 $ — Equities 63,109 63,109 — — Commingled and Mutual Funds 334,071 4,665 329,406 — U.S. Government Securities 144,609 137,783 6,826 — Partnerships with Security Holdings 48,967 — — 48,967 Real Estate 2,141 — — 2,141 Cash and Accrued Items 21,265 19,242 2,023 — Total pension and other postretirement benefit assets $ 999,510 $ 224,799 $ 723,603 $ 51,108 |
Summary of Changes in Plans' Level 3 Instruments Measured on Recurring Basis | The following is a summary of the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2015 and 2014 : Year ended December 31, (In thousands) 2015 2014 Balance at beginning of period $ 51,108 $ 55,188 Issuances and acquisitions 1,266 4,633 Dispositions (53,417 ) (16,306 ) Realized gain 3,915 10,996 Unrealized gain (2,872 ) (3,403 ) Balance at end of period $ — $ 51,108 |
Cash Flows | Cash Flows Domestic Plans Foreign Plans (In thousands) Pension Benefits Other Benefits Pension Benefits Other Benefits Expected employer contributions to trusts of defined benefit plans: 2016 $ 1,129 $ 4,500 $ 3,243 $ 144 Expected benefit payments: 2016 $ 65,997 $ 4,496 $ 2,503 $ 144 2017 67,633 3,516 3,247 148 2018 68,981 3,336 3,383 151 2019 70,165 3,125 3,508 154 2020 71,202 2,921 3,595 158 2021-2025 361,313 11,152 20,119 745 |
Summary of Contributions to Multiemployer Plans | The following table summarizes our contributions to multiemployer plans for the years covered by this report: Pension Fund EIN/PIN Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions Surcharge Imposed Expiration Date Of Collective Bargaining Agreement 2015 2014 2013 2015 2014 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 20.3 $ 16.0 $ 19.0 No Described All Other 4.6 4.6 11.9 $ 24.9 $ 20.6 $ 30.9 |
Domestic Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Plan Asset Allocations by Asset Category | The following is a summary of the asset allocations for the Master Trust at December 31, 2015 and 2014 by asset category: 2015 2014 Asset Category: Fixed Income (excluding United States Government Securities) 33 % 38 % Commingled and Mutual Funds 37 % 33 % United States Government Securities 18 % 15 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % 5 % Derivatives 4 % — % Other 1 % 2 % |
Foreign Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Plan Asset Allocations by Asset Category | The combined weighted average asset allocations of these plans at December 31, 2015 and 2014 by asset category were as follows: 2015 2014 Asset Category: Equity Securities and Commingled Mutual Funds 48 % 46 % Fixed Income 51 % 53 % Other 1 % 1 % |
Target Allocation by Asset Class | The target allocation for 2015 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 20 % 12 % Global Equity 30 % 14 % Fixed Income 50 % 74 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | These transactions prior to the June 30, 2015 spin-off included the following: Year ended December 31, (In thousands) 2015 (1) 2014 2013 Sales to our former Parent $ 911 $ 5,896 $ 37,552 Corporate administrative expense 35,343 73,329 76,739 (1) After the spin-off transaction on June 30, 2015, we no longer consider the former Parent to be a Related Party. |
Schedule Of Change In Companys Historical Investment Due To Net Transfers To From Parent | Net transfers from our 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 net transfers of cash and assets to our former Parent prior to the spin-off. After the spin-off transaction on June 30, 2015, there have been no significant transfers to or from our former Parent. Year Ended December 31, (In thousands) 2015 2014 2013 Sales to former Parent $ 911 $ 5,896 $ 37,552 Corporate administrative expenses 35,343 73,329 76,739 Income tax allocation 11,872 3,378 21,956 Acquisition of business, net of cash acquired — 127,704 — Cash pooling and general financing activities (91,015 ) 14,261 (13,698 ) Cash contribution received at spin-off 125,300 — — Net transfer from former Parent per statement of cash flows 80,589 213,137 47,445 Non-cash items: Net transfer of assets and liabilities 44,706 (62 ) (37 ) Distribution of Nuclear Energy segment (47,839 ) — — Net transfer from former Parent per statement of shareholders’ equity $ 77,456 $ 213,075 $ 47,408 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Options | |
Schedule of Assumptions Used to Calculate Fair Value of Option Grant | The fair value of each option grant was estimated at the date of grant using Black-Scholes, with the following weighted-average assumptions: Year Ended December 31, 2015 2014 2013 Risk-free interest rate 1.38 % 0.97 % 0.56 % Expected volatility 28 % 30 % 33 % Expected life of the option in years 3.96 3.76 3.93 Expected dividend yield — % 1.22 % 1.19 % |
Summarized Activity of Stock Options | The following table summarizes activity for our stock options for the post-spin period from July 1, 2015 through December 31, 2015 (Share data in thousands) Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at beginning of period 2,747 $ 17.42 Granted 52 19.90 Exercised (433 ) 14.58 Cancelled/expired/forfeited (6 ) 19.12 Outstanding at end of period 2,360 $ 17.99 6.78 $ 6,803.3 Exercisable at end of period 759 $ 17.15 3.66 $ 2,821.6 |
Restricted Stock Units | |
Schedule of Restricted Stock Units | Nonvested restricted stock units for the post-spin period from July 1, 2015 through December 31, 2015 were as follows: (Share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period 1,103 $ 19.53 Granted 56 19.88 Vested (159 ) 19.73 Cancelled/forfeited (1 ) 21.59 Nonvested at end of period 999 $ 19.30 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Payments Required | Future minimum payments required under operating leases that have initial or remaining noncancellable lease terms in excess of one year at December 31, 2015 are as follows (in thousands): Fiscal Year Ending December 31, Amount 2016 $ 5,443 2017 $ 4,394 2018 $ 3,128 2019 $ 1,968 2020 $ 1,158 Thereafter $ 337 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Operations of Former NE Segment | The following table presents selected financial information regarding the results of operations of our former NE segment: Six Months Ended June 30, Twelve Months Ended December 31, (In thousands) 2015 2014 2013 Revenues $ 53,064 $ 103,690 $ 153,313 Income (loss) before provision for income taxes 3,358 (19,072 ) 44,532 Income tax provision (benefit) 555 (4,800 ) 10,195 Income from discontinued operations, net of tax $ 2,803 $ (14,272 ) $ 34,337 |
Schedule of Carrying Values of Major Balance Sheet Accounts of Discontinued Operations | The following table presents the carrying values of the major accounts of discontinued operations that are included in our December 31, 2014 consolidated and combined balance sheet: (In thousands) December 31, 2014 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 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Summary of Available for Sale Securities | The following is a summary of our investments at December 31, 2015 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 3,997 $ — $ (1 ) $ 3,996 Mutual funds 1,172 — (79 ) 1,093 Total $ 5,169 $ — $ (80 ) $ 5,089 The following is a summary of our investments at December 31, 2014 : (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Commercial paper $ 1,607 $ — $ — $ 1,607 Asset-backed securities and collateralized mortgage obligations 248 — (34 ) 214 Total $ 1,855 $ — $ (34 ) $ 1,821 |
Summary of Proceeds, Gross Realized Gains and Gross Realized Losses on Sales of Available for Sale Securities | Proceeds, gross realized gains and gross realized losses on sales of available-for-sale securities is as follows: (In thousands) Proceeds Gross Realized Gains Gross Realized Losses Year Ended December 31, 2015 $ (5,265 ) $ 49 $ (15 ) Year Ended December 31, 2014 (10,119 ) 15 (2 ) Year Ended December 31, 2013 (3,974 ) — — |
Derivative Financial Instrume40
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments at December 31, 2015 and 2014 : Asset and Liability Derivatives December 31, (In thousands) 2015 2014 Derivatives Designated as Hedges: Foreign Exchange Contracts: Location Accounts receivable-other $ 1,545 $ 88 Other assets 688 — Accounts payable 17 89 Other liabilities $ — — Derivatives Not Designated as Hedges: Foreign Exchange Contracts: Location Accounts receivable-other 72 175 Other assets — — Accounts payable 101 284 |
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | The effects of derivatives on our financial statements are outlined below: December 31, (In thousands) 2015 2014 Derivatives Designated as Hedges: Cash Flow Hedges Foreign Exchange Contracts Amount of loss recognized in other comprehensive income $ 2,920 $ (47 ) Location Revenues 546 (53 ) Cost of operations 155 13 Other-net (24 ) (6 ) Location Other-net 252 (339 ) Derivatives Not Designated as Hedges: Forward Contracts Location Other-net $ 206 $ (184 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments and Available-for-Sale Securities Measured at Fair Value | The following is a summary of our available-for-sale securities measured at fair value at December 31, 2015 : (In thousands) 12/31/2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total $ 5,089 $ — $ 5,089 $ — The following is a summary of our available-for-sale securities measured at fair value at December 31, 2014 : (In thousands) 12/31/2014 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 $ — |
Segments and Other Financial 42
Segments and Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue Information from Products and Service Lines | Segment financial information Year Ended December 31, (In thousands) 2015 2014 2013 REVENUES Global Power: New Build Environmental Equipment $ 150,920 $ 171,175 $ 310,327 New Build Steam Generation Systems 489,050 300,754 402,134 639,970 471,929 712,461 Global Services: Parts and Technical Services 282,369 311,294 304,598 Projects 297,567 286,094 406,196 Construction Services 279,969 242,295 279,997 Operations and Maintenance 73,725 68,999 64,399 933,630 908,682 1,055,190 Industrial Environmental: Environmental Solutions 90,343 48,938 — Engineered Equipment 32,002 21,190 — Aftermarket Services 61,350 35,290 — 183,695 105,418 — $ 1,757,295 $ 1,486,029 $ 1,767,651 |
Schedule of Operating Results by Segment | (In thousands) Year Ended December 31, 2015 2014 2013 GROSS PROFIT Global Power $ 111,309 $ 94,647 $ 126,275 Global Services 192,241 193,629 225,434 Industrial Environmental 48,914 24,961 — Mark to market adjustment included in costs of operations (44,307 ) (94,204 ) 84,772 $ 308,157 $ 219,033 $ 436,481 Selling, general and administrative (244,065 ) (218,038 ) (211,401 ) Research and development (16,543 ) (18,483 ) (21,043 ) Loss on asset disposal and impairments (14,597 ) (1,752 ) (1,181 ) Equity in income of investees (242 ) 8,681 18,387 Restructuring activities (14,946 ) (20,183 ) (18,343 ) Mark to market adjustment included in selling, general and administrative expenses 4,097 (7,233 ) 7,331 Operating income (loss) $ 21,861 $ (37,975 ) $ 210,231 Included in operating income (loss) above are the following: (In thousands) Year Ended December 31, 2015 2014 2013 EQUITY IN INCOME OF INVESTEES Global Power $ (3,295 ) $ (1,717 ) $ 7,097 Global Services 3,054 10,398 11,290 $ (242 ) $ 8,681 $ 18,387 (In thousands) Year Ended December 31, 2015 2014 2013 DEPRECIATION AND AMORTIZATION Global Power $ 4,424 $ 3,988 $ 3,917 Global Services 12,655 15,806 17,950 Industrial Environmental 10,345 8,197 — Segment depreciation and amortization 27,424 27,991 21,867 Corporate 7,508 4,445 1,163 Total depreciation and amortization $ 34,932 $ 32,436 $ 23,030 |
Schedule of Revenues by Geographical Area | Information about our consolidated operations in different geographic areas Year Ended December 31, 2015 2014 2013 (In thousands) REVENUES (1) United States $ 1,034,653 $ 934,397 $ 1,144,853 Canada 134,276 136,382 235,815 United Kingdom 126,285 61,972 20,042 Denmark 116,064 65,436 56,336 Dominican Republic 82,916 27,399 473 Vietnam 46,803 3,829 1,946 China 41,921 53,005 52,932 Chile 19,503 15,686 9,240 Germany 19,233 22,792 22,869 Sweden 18,302 29,786 37,823 India 13,108 5,070 4,670 France 6,377 6,188 2,173 Finland 6,113 4,926 — Poland 5,437 3,343 1,748 Columbia 4,904 8,037 44,622 Italy 4,671 3,540 2,532 Netherlands 4,651 1,441 8,099 Thailand 4,606 8,113 2,650 South Africa 4,486 3,137 2,208 South Korea 4,358 14,149 5,926 Saudi Arabia 4,220 8,003 8,200 Greenland 3,172 920 — Mexico 2,933 2,344 3,461 Australia 2,817 2,540 1,808 Spain 2,311 1,102 640 Brazil 2,176 3,156 2,751 Malaysia 2,173 706 1,808 Taiwan 2,141 1,007 1,144 Tunisia 1,868 169 — Indonesia 1,730 5,324 6,227 Other Countries 33,087 52,130 84,655 $ 1,757,295 $ 1,486,029 $ 1,767,651 (1) We allocate geographic revenues based on the location of the customer's operations. |
Schedule of Property, Plant and Equipment, Net by Geographical Area | NET PROPERTY, PLANT AND EQUIPMENT United States $ 88,840 $ 82,209 $ 77,993 Canada 1,201 3,757 6,581 China 13,956 12,356 10,980 Mexico 24,643 12,106 8,312 United Kingdom 8,070 8,638 9,414 Denmark 6,265 6,963 8,715 Germany 1,270 1,536 2,060 Other Countries 1,472 7,672 6,852 $ 145,717 $ 135,237 $ 130,907 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, (In thousands, except shares and per share amounts) 2015 2014 2013 Income (loss) from continuing operations $ 16,338 $ (12,256 ) $ 140,189 Income (loss) from discontinued operations, net of tax 2,803 (14,272 ) 34,338 Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 19,141 $ (26,528 ) $ 174,527 Weighted average common shares used to calculate basic earnings per common share 53,487,071 54,238,631 55,950,875 Dilutive effect of stock options, restricted stock and performance shares (1) 221,912 — 391,834 Weighted average common shares used to calculate diluted earnings per common share 53,708,983 54,238,631 56,342,709 Basic earnings (loss) per common share: Continuing operations $ 0.31 $ (0.23 ) $ 2.51 Discontinued operations $ 0.05 (0.26 ) 0.61 Basic earnings (loss) per common share $ 0.36 $ (0.49 ) $ 3.12 Diluted earnings (loss) per common share: Continuing operations $ 0.30 $ (0.23 ) $ 2.49 Discontinued operations $ 0.06 (0.26 ) 0.61 Diluted earnings (loss) per common share $ 0.36 $ (0.49 ) $ 3.10 (1) At December 31, 2015 and 2013 , we excluded from the diluted share calculation 1,286,102 and 221,113 shares, respectively, related to stock options, as their effect would have been anti-dilutive. |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | The following tables set forth selected unaudited quarterly financial information for the years ended December 31, 2015 and 2014 : (In thousands, except per share amounts) Year Ended December 31, 2015 March 31, 2015 June 30, 2015 Sept. 30, 2015 Dec. 31, 2015 Revenues $ 397,155 $ 437,485 $ 419,977 $ 502,678 Gross profit $ 83,397 $ 81,884 $ 77,922 $ 64,954 Operating income (loss) (1) $ 17,343 $ 4,859 $ 9,632 $ (9,973 ) Equity in income (loss) of investees $ (2,071 ) $ 967 $ 1,047 $ (185 ) Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 12,689 $ 5,487 $ 6,169 $ (5,204 ) Earnings per common share Basic Continuing $ 0.21 $ 0.08 $ 0.11 $ (0.10 ) Discontinued $ 0.03 $ 0.02 $ — $ — Diluted Continuing $ 0.21 $ 0.08 $ 0.11 $ (0.10 ) Discontinued $ 0.03 $ 0.02 $ — $ — (1) Includes equity in income of investees. (In thousands, except per share amounts) Year Ended December 31, 2014 March 31, 2014 June 30, 2014 Sept. 30, 2014 Dec. 31, 2014 Revenues $ 312,078 $ 327,379 $ 402,016 $ 444,556 Gross profit $ 56,851 $ 69,028 $ 88,370 $ 4,784 Operating income (loss) (1) $ 4,515 $ 3,170 $ 25,542 $ (71,202 ) Equity in income (loss) of investees $ 2,366 $ 433 $ 2,859 $ 3,023 Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. $ 11,089 $ 4,936 $ 5,609 $ (48,162 ) Earnings per common share Basic Continuing $ 0.13 $ 0.03 $ 0.24 $ (0.63 ) Discontinued $ 0.07 $ 0.06 $ (0.14 ) $ (0.27 ) Diluted Continuing $ 0.13 $ 0.03 $ 0.24 $ (0.63 ) Discontinued $ 0.07 $ 0.06 $ (0.14 ) $ (0.27 ) (1) Includes equity in income of investees. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) | Jun. 30, 2015 | Dec. 31, 2015segment |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of business segments | 3 | |
Babcock and Wilcox Enterprises Inc. | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Distribution ratio description | The distribution of B&W common stock was made on June 30, 2015 and consisted of one share of B&W common stock for every two shares of BWC common stock to holders | |
Babcock and Wilcox Enterprises Inc. | Common Stock | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Distribution ratio | 2 |
Significant Accounting Polici46
Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Number of business segments | segment | 3 | ||
Net foreign currency transaction gains (losses) included in other expense | $ (100) | $ 1,800 | $ 500 |
Revenue recognition, percentage of contract completion (percent) | 70.00% | ||
Accrued claims | $ 2,300 | 8,200 | |
Income (loss) before income tax expense (benefit) | 20,205 | (36,618) | 212,489 |
Retainages expected to be collected within one year | 24,906 | 19,978 | |
Long-term retainages, anticipated collection in 2017 | 0 | ||
Long-term retainages, anticipated collection in 2018 | 3,900 | ||
Research and development activities | $ 16,500 | $ 18,500 | 21,000 |
Percentage of total inventories using LIFO method | 20.00% | 18.00% | |
LIFO reserve | $ 7,700 | $ 7,900 | |
Depreciation expense | 23,500 | 22,300 | 18,500 |
Restricted cash and cash equivalents | 37,100 | ||
Restricted cash and cash equivalents | 37,144 | 26,311 | |
Reserves for self-insurance | 24,100 | 25,300 | |
Contract Receivable Retainage, Year Four | $ 1,200 | ||
Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Investment ownership in percentage | 20.00% | ||
Change in Assumptions for Pension Plans | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Increase in pension liability | $ 46,900 | ||
Research and Development Facilities and Equipment | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Impairment charge recognized | $ 14,600 | ||
Buildings | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Estimated economic useful life (years) | 8 years | ||
Buildings | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Estimated economic useful life (years) | 33 years | ||
Machinery and equipment | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Estimated economic useful life (years) | 3 years | ||
Machinery and equipment | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Estimated economic useful life (years) | 28 years | ||
Restricted Foreign Cash | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Restricted cash and cash equivalents | $ 3,700 | ||
Cash Held to Meet Reinsurance Reserve Requirements | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Restricted cash and cash equivalents | 33,400 | ||
Global Services | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Contract losses | 12,900 | ||
Global Services | Settled Litigation | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Income (loss) before income tax expense (benefit) | $ 9,600 | $ 11,600 | $ 35,600 |
Significant Accounting Polici47
Significant Accounting Policies - Percentage-Of-Completion Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in Accounting Estimate [Line Items] | |||||||||||
Operating income (loss) | $ (9,973) | $ 9,632 | $ 4,859 | $ 17,343 | $ (71,202) | $ 25,542 | $ 3,170 | $ 4,515 | $ 21,861 | $ (37,975) | $ 210,231 |
Percentage-of-Completion Contracts | |||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||
Increases in estimates for percentage-of-completion contracts | 36,653 | 50,565 | 49,154 | ||||||||
Decreases in estimates for percentage-of-completion contracts | (36,235) | (24,234) | (40,315) | ||||||||
Operating income (loss) | $ 418 | $ 26,331 | $ 8,839 |
Significant Accounting Polici48
Significant Accounting Policies - Contracts in Progress, Advance Billings on Contracts and Total Retainages (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Costs incurred less costs of revenue recognized | $ 9,966 | $ 33,685 |
Revenues recognized less billings to customers | 118,208 | 74,066 |
Contracts in progress | 128,174 | 107,751 |
Billings to customers less revenues recognized | 221,244 | 143,904 |
Costs of revenue recognized less cost incurred | 8,146 | 4,194 |
Advance billings on contracts | 229,390 | 148,098 |
Retainages expected to be collected within one year | 24,906 | 19,978 |
Retainages expected to be collected after one year | 5,329 | 7,360 |
Total retainages | $ 30,235 | $ 27,338 |
Significant Accounting Polici49
Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | |||
Currency translation adjustments | $ (19,493) | $ 11,551 | $ 38,409 |
Net unrealized gain on available-for-sale investments | (44) | (22) | (20) |
Net unrealized gain (loss) on derivative financial instruments | 1,786 | (123) | 627 |
Unrecognized prior service cost on benefit obligations | (1,102) | (1,032) | (3,678) |
Accumulated other comprehensive income (loss) | $ (18,853) | $ 10,374 | $ 35,338 |
Significant Accounting Polici50
Significant Accounting Policies - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Revenues | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 444,556 | $ 402,016 | $ 327,379 | $ 312,078 | $ 1,757,295 | $ 1,486,029 | $ 1,767,651 |
Other, net | (1,215) | 789 | 1,444 | ||||||||
Income (loss) before income tax expense (benefit) | 20,205 | (36,618) | 212,489 | ||||||||
Provision for income taxes | (3,671) | 24,728 | (72,011) | ||||||||
Net income | 16,534 | (11,890) | 140,478 | ||||||||
Accumulated Other Comprehensive Income Component Recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Total reclassification for the period | 194 | (309) | (631) | ||||||||
Realized (loss) gain on derivative financial instruments | Accumulated Other Comprehensive Income Component Recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Revenues | 546 | (53) | (285) | ||||||||
Cost of operations | 155 | 13 | 0 | ||||||||
Other, net | (24) | (6) | 143 | ||||||||
Income (loss) before income tax expense (benefit) | 677 | (46) | (142) | ||||||||
Provision for income taxes | (149) | 11 | 2 | ||||||||
Net income | 528 | (35) | (140) | ||||||||
Amortization of prior service cost on benefit obligations | Accumulated Other Comprehensive Income Component Recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Cost of operations | (1,475) | (457) | (772) | ||||||||
Provision for income taxes | 1,168 | 183 | 281 | ||||||||
Net income | (307) | (274) | (491) | ||||||||
Realized gains on investments | Accumulated Other Comprehensive Income Component Recognized | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other, net | (42) | 0 | 0 | ||||||||
Provision for income taxes | 15 | 0 | 0 | ||||||||
Net income | $ (27) | $ 0 | $ 0 |
Significant Accounting Polici51
Significant Accounting Policies - Warranty Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 37,735 | $ 38,968 | $ 58,339 |
Additions | 19,310 | 13,726 | 16,468 |
Acquisition of MEGTEC | 0 | 4,693 | 0 |
Expirations and other changes | (982) | (4,052) | (15,728) |
Payments | (15,215) | (14,787) | (20,185) |
Translation and other | (1,001) | (813) | 74 |
Balance at end of period | $ 39,847 | $ 37,735 | $ 38,968 |
Significant Accounting Polici52
Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Raw materials and supplies | $ 68,684 | $ 71,604 |
Work in progress | 7,025 | 9,831 |
Finished goods | 14,410 | 17,276 |
Inventories | $ 90,119 | $ 98,711 |
Significant Accounting Polici53
Significant Accounting Policies - Property Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | $ 330,021 | $ 335,761 | |
Less accumulated depreciation | 184,304 | 200,524 | |
Net property, plant and equipment | 145,717 | 135,237 | $ 130,907 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 7,460 | 6,937 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 104,963 | 114,088 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 181,064 | 201,912 | |
Property under construction | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | $ 36,534 | $ 12,824 |
Significant Accounting Polici54
Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 209,277 | $ 104,630 |
Goodwill resulting from acquisition of MEGTEC | 108,800 | |
Purchase price adjustment related to MEGTEC acquisition | (4,492) | |
Currency translation adjustments | (3,716) | (4,153) |
Ending balance | 201,069 | 209,277 |
Global Power | ||
Goodwill [Roll Forward] | ||
Beginning balance | 37,991 | 38,921 |
Goodwill resulting from acquisition of MEGTEC | 0 | |
Purchase price adjustment related to MEGTEC acquisition | 0 | |
Currency translation adjustments | (1,076) | (930) |
Ending balance | 36,915 | 37,991 |
Global Services | ||
Goodwill [Roll Forward] | ||
Beginning balance | 62,486 | 65,709 |
Goodwill resulting from acquisition of MEGTEC | 0 | |
Purchase price adjustment related to MEGTEC acquisition | 0 | |
Currency translation adjustments | (2,640) | (3,223) |
Ending balance | 59,846 | 62,486 |
Industrial Environmental | ||
Goodwill [Roll Forward] | ||
Beginning balance | 108,800 | 0 |
Goodwill resulting from acquisition of MEGTEC | $ 108,800 | |
Purchase price adjustment related to MEGTEC acquisition | (4,492) | |
Currency translation adjustments | 0 | |
Ending balance | $ 104,308 | $ 108,800 |
Significant Accounting Polici55
Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | $ 70,107 | $ 71,464 |
Accumulated amortization | (33,568) | (22,123) |
Net definite-lived intangible assets | 36,539 | 49,341 |
Unamortized intangible assets | 1,305 | 1,305 |
Trade names / trademarks | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Unamortized intangible assets | 1,305 | 1,305 |
Customer relationships | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 35,729 | 36,749 |
Accumulated amortization | (12,509) | (8,775) |
Unpatented technology | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 4,033 | 4,072 |
Accumulated amortization | (1,471) | (582) |
Patented technology | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 2,532 | 2,521 |
Accumulated amortization | (1,406) | (1,122) |
Tradename | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 9,909 | 9,957 |
Accumulated amortization | (2,883) | (1,984) |
Acquired backlog | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 10,400 | 10,600 |
Accumulated amortization | (10,400) | (5,300) |
All other | ||
Schedule Of Amortized And Unamortized Intangible Assets [Line Items] | ||
Gross value of definite-lived intangible assets | 7,504 | 7,565 |
Accumulated amortization | $ (4,899) | $ (4,360) |
Significant Accounting Polici56
Significant Accounting Policies - Intangible Assets Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Roll Forward] | ||
Balance at beginning of period | $ 50,646 | $ 18,246 |
Business acquisitions and adjustments | 500 | 44,972 |
Amortization expense | (11,445) | (9,880) |
Impairment charge | 0 | (1,730) |
Currency translation adjustments and other | (1,857) | (962) |
Balance at end of period | $ 37,844 | $ 50,646 |
Significant Accounting Polici57
Significant Accounting Policies - Intangible Assets Amortization Expense (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Accounting Policies [Abstract] | |
2,016 | $ 5,944 |
2,017 | 5,822 |
2,018 | 5,549 |
2,019 | 5,195 |
2,019 | $ 4,176 |
Significant Accounting Polici58
Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Income taxes (net of refunds) | $ 15,008 | $ 7,951 | $ 21,929 |
Accrued capital expenditures included in accounts payable | $ 568 | $ 1,680 | $ 2,607 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Detail) - USD ($) $ in Thousands | Jun. 20, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||||||||
Acquisition of business, net of cash acquired | $ 0 | $ 127,705 | $ 0 | |||||||||
Revenues | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 444,556 | $ 402,016 | $ 327,379 | $ 312,078 | 1,757,295 | 1,486,029 | 1,767,651 | |
Net Income | $ (5,204) | $ 6,169 | $ 5,487 | $ 12,689 | $ (48,162) | $ 5,609 | $ 4,936 | $ 11,089 | $ 19,141 | (26,528) | 174,527 | |
Elimination of acquisition related costs | 13,400 | |||||||||||
Acquisition-related Costs | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Elimination of historical interest expense | 900 | 2,400 | ||||||||||
Acquisition-related Costs | Finite-Lived Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Increase (decrease) in amortization expense related to identifiable intangible assets | (3,900) | $ 12,600 | ||||||||||
MEGTEC Holdings Inc | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition of business, net of cash acquired | $ 142,800 | |||||||||||
Revenues | 105,400 | |||||||||||
Net Income | $ 3,300 |
Business Acquisition - Summary
Business Acquisition - Summary of Purchase Price Allocation Including Finalization of Asset Valuations (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 201,069 | $ 209,277 | $ 104,630 | |
MEGTEC Holdings Inc | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 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 | |||
Cash and cash equivalents acquired | 14,232 | |||
Net assets acquired, net of unrestricted cash acquired | 142,781 | |||
Amount of tax deductible goodwill | $ 34,583 |
Business Acquisition - Summar61
Business Acquisition - Summary of Intangible Assets Acquired (Detail) - MEGTEC Holdings Inc $ in Thousands | 3 Months Ended |
Jun. 30, 2015USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 43,150 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 23,500 |
Intangible assets, Amortization Period (years) | 8 years |
Backlog | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 10,400 |
Intangible assets, Amortization Period (years) | 1 year |
Trade names / trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 6,000 |
Intangible assets, Amortization Period (years) | 11 years |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, Amount | $ 3,250 |
Intangible assets, Amortization Period (years) | 5 years |
Business Acquisition - Summar62
Business Acquisition - Summary of Unaudited Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenues | $ 1,566,361 | $ 1,944,040 |
Net Income (Loss) Attributable to Babcock & Wilcox Enterprises, Inc. | $ (19,559) | $ 170,221 |
Basic Earnings per Common Share (usd per share) | $ (0.36) | $ 3.04 |
Diluted Earnings per Common Share (usd per share) | $ (0.36) | $ 3.02 |
Equity Method Investments - Nar
Equity Method Investments - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Undistributed earnings of equity method investees | $ 63.4 | $ 76 |
Difference between carrying value of investment and underlying equity based on ownership percentage | 5.8 | |
Accounts Receivable Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Receivables from unconsolidated affiliates | $ 7.9 | $ 7 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Combined Balance Sheet Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current assets | $ 446,283 | $ 528,950 |
Noncurrent assets | 168,411 | 181,517 |
Total assets | 614,694 | 710,467 |
Current liabilities | 314,390 | 403,484 |
Noncurrent liabilities | 140,349 | 97,419 |
Owners' equity | 159,955 | 209,564 |
Total liabilities and equity | $ 614,694 | $ 710,467 |
Equity Method Investments - S65
Equity Method Investments - Summary of Income Statement Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Revenues | $ 475,459 | $ 645,481 | $ 592,755 |
Gross profit | 69,021 | 85,378 | 97,226 |
Income before provision for income taxes | 3,072 | 22,909 | 39,033 |
Provision for income taxes | 4,500 | 6,159 | 8,603 |
Net income | $ (1,428) | $ 16,750 | $ 30,430 |
Equity Method Investments - Inv
Equity Method Investments - Investment in Unconsolidated Affiliates by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investments in and Advances to Affiliates [Line Items] | |||
Investments in unconsolidated affiliates | $ 92,196 | $ 109,248 | $ 144,475 |
Operating Segments | Global Power | |||
Investments in and Advances to Affiliates [Line Items] | |||
Investments in unconsolidated affiliates | 75,946 | 93,389 | 99,013 |
Operating Segments | Global Services | |||
Investments in and Advances to Affiliates [Line Items] | |||
Investments in unconsolidated affiliates | $ 16,250 | $ 15,859 | $ 45,462 |
Equity Method Investments - Rec
Equity Method Investments - Reconciliation of Net Income to Equity in Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||
Equity income based on stated ownership percentages | $ (542) | $ 8,563 | $ (542) | $ 8,563 | $ 15,280 | ||||||
All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments | 300 | 118 | 300 | 118 | 3,107 | ||||||
Equity in income (loss) of investees | $ (185) | $ 1,047 | $ 967 | $ (2,071) | $ 3,023 | $ 2,859 | $ 433 | $ 2,366 | $ (242) | $ 8,681 | $ 18,387 |
Equity Method Investments - Sch
Equity Method Investments - Schedule of Transactions with Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Sales to | $ 18,014 | $ 70,566 | $ 70,793 |
Purchases from | 45,397 | 5,623 | 4,646 |
Dividends received | 20,830 | 17,407 | 20,382 |
Capital contributions, net of returns | $ 7,424 | $ 4,900 | $ 6,884 |
Restructuring Activities and 69
Restructuring Activities and Spin-Off Transaction Costs - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Employee termination benefits | $ 400 | ||
Consulting and administrative costs | 300 | ||
Stock-based compensation and thrift plan expense | 7,773 | $ (11) | $ (172) |
Spinoff | Selling, general and administrative expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Stock-based compensation and thrift plan expense | $ 3,300 |
Restructuring Activities and 70
Restructuring Activities and Spin-Off Transaction Costs - Changes in Restructuring Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Liability balance at the beginning of the period | $ 5,086 | $ 5,601 |
Special charges for restructuring activities | 5,014 | 13,146 |
Payments | (9,360) | (13,661) |
Liability balance at the end of the period | 740 | 5,086 |
Non-cash charges | $ 6,700 | $ 7,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits that would reduce effective tax rate if recognized | $ 1,141 | $ 3,321 | $ 1,190 | $ 1,204 |
Decrease in accruals | 100 | |||
Liability for the payment of tax related interest and penalties | 300 | 300 | 100 | |
Valuation allowance for deferred tax asset | $ 10,077 | $ 9,216 | $ 6,980 | $ 9,709 |
Federal tax rate | 35.00% | 35.00% | 35.00% | |
Undistributed earnings of subsidiaries | $ 396,400 | |||
Unrecognized deferred income tax liabilities | 59,700 | |||
Tax benefit on earnings with intent to remit | $ 1,000 | |||
Domestic | Internal Revenue Service (IRS) | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax rate | 35.00% | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | $ 12,800 | |||
Foreign net operating loss carryforwards scheduled to expire | 500 | |||
Net operating loss carryforwards, valuation allowance | 300 | |||
Foreign tax credit carryovers | $ 2,400 | |||
Net operating loss carryforwards, expiration date | 2,018 | |||
Foreign | Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, expiration date | 2,017 | |||
Foreign | Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, expiration date | 2,020 | |||
Foreign | Canada | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax rate | 27.00% | |||
Foreign | United Kingdom | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax rate | 24.00% | |||
Foreign | Denmark | ||||
Income Tax Contingency [Line Items] | ||||
Federal tax rate | 20.00% | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards | $ 14,400 | |||
Net operating loss carryforwards, valuation allowance | $ 9,800 | |||
State | Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Net operating loss carryforwards, expiration date | 2,016 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 3,321 | $ 1,190 | $ 1,204 |
Increases based on tax positions taken in the current year | 88 | 213 | 0 |
Increases based on tax positions taken in the prior years | 248 | 2,268 | 276 |
Decreases based on tax positions taken in the prior years | (1,161) | 0 | (290) |
Decreases due to settlements with tax authorities | (1,355) | (350) | 0 |
Decreases due to lapse of applicable statute of limitation | 0 | 0 | 0 |
Balance at end of period | $ 1,141 | $ 3,321 | $ 1,190 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ||||
Pension liability | $ 107,748 | $ 97,447 | ||
Accrued warranty expense | 12,589 | 10,700 | ||
Accrued vacation pay | 4,482 | 4,635 | ||
Accrued liabilities for self-insurance (including postretirement health care benefits) | 14,280 | 17,979 | ||
Accrued liabilities for executive and employee incentive compensation | 14,255 | 3,582 | ||
Investments in joint ventures and affiliated companies | 14,100 | 7,472 | ||
Long-term contracts | 6,963 | 6,622 | ||
Net operating loss carryforward | 13,544 | 13,044 | ||
State tax net operating loss carryforward | 14,409 | 14,617 | ||
Foreign tax credit carryforward | 2,378 | 2,959 | ||
Other | 9,206 | 11,272 | ||
Total deferred tax assets | 213,954 | 190,329 | ||
Valuation allowance for deferred tax assets | (10,077) | (9,216) | $ (6,980) | $ (9,709) |
Net, total deferred tax assets | 203,877 | 181,113 | ||
Deferred tax liabilities: | ||||
Property, plant and equipment | 3,379 | 6,136 | ||
Long-term contracts | 9,084 | 17,932 | ||
Intangibles | 13,158 | 8,484 | ||
Undistributed foreign earnings | 1,000 | 500 | ||
Goodwill | 1,167 | 5,696 | ||
Other | 1,317 | 3,200 | ||
Total deferred tax liabilities | 29,105 | 41,948 | ||
Net deferred tax assets | $ 174,772 | $ 139,165 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ (9,216) | $ (6,980) | $ (9,709) |
Charges To Costs and Expenses | (861) | (2,236) | 0 |
Charged To Other Accounts | 0 | 0 | 2,729 |
Ending Balance | $ (10,077) | $ (9,216) | $ (6,980) |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (20,748) | $ (64,084) | $ 135,966 |
Other than U.S. | 40,953 | 27,466 | 76,523 |
Income (loss) before income tax expense (benefit) | $ 20,205 | $ (36,618) | $ 212,489 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. – federal | $ 24,084 | $ 1,834 | $ 21,956 |
U.S. – state and local | 3,458 | 1,544 | 3,053 |
Other than U.S. | 8,250 | 13,917 | (9,105) |
Total current | 35,792 | 17,295 | 15,904 |
U.S. – Federal | (35,888) | (32,910) | 26,648 |
U.S. – State and local | (111) | (572) | 3,354 |
Other than U.S. | 3,878 | (8,541) | 26,105 |
Total deferred (benefit) provision | (32,121) | (42,023) | 56,107 |
Provision for income taxes | $ 3,671 | $ (24,728) | $ 72,011 |
Income Taxes - Reconciliation77
Income Taxes - Reconciliation of U.S. Statutory Federal Tax Rate to Consolidated and Combined Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory (benefit) rate | 35.00% | 35.00% | 35.00% |
State and local income taxes | 13.80% | 4.10% | 3.90% |
Foreign rate differential | (13.10%) | 16.60% | (3.00%) |
Tax credits | (14.70%) | 7.50% | (4.00%) |
Dividends and deemed dividends from affiliates | 1.70% | 5.70% | 3.30% |
Valuation allowances | 4.30% | (6.10%) | (1.30%) |
Uncertain tax positions | (6.60%) | (6.70%) | 0.10% |
Non-deductible expenses | 2.40% | (2.40%) | 0.50% |
Manufacturing deduction | (2.50%) | 11.60% | (0.40%) |
Other | (2.10%) | 2.20% | (0.20%) |
Effective tax rate | 18.20% | 67.50% | 33.90% |
Credit Facilities - Narrative (
Credit Facilities - Narrative (Details) | May. 11, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||
Short-term line of credit | $ 2,005,000 | $ 3,215,000 | |
Weighted average interest rate on short term borrowings | 5.10% | 6.30% | |
Surety Bond | |||
Debt Instrument [Line Items] | |||
Guarantees | $ 541,700,000 | ||
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Aggregate value of letters of credit and bank guarantees | $ 193,100,000 | ||
Senior Secured Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 600,000,000 | ||
Accordion increase in borrowing capacity | $ 200,000,000 | ||
Accordion leverage ratio | 2 | ||
Unused commitment fee (percent) | 0.25% | ||
Increase in leverage ratio subsequent to acquisition | 3.25 | ||
Senior Secured Revolving Credit Facility | Term Loan Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | ||
Senior Secured Revolving Credit Facility | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letter of credit | 109,600,000 | ||
Remaining borrowing capacity | $ 373,000,000 | ||
Senior Secured Revolving Credit Facility | Financial Letter of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 1.375% | ||
Senior Secured Revolving Credit Facility | Performance Letter Of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 0.825% | ||
Senior Secured Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee (percent) | 0.25% | ||
Interest coverage ratio | 400.00% | ||
Senior Secured Revolving Credit Facility | Minimum | Financial Letter of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 1.375% | ||
Senior Secured Revolving Credit Facility | Minimum | Performance Letter Of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 0.825% | ||
Senior Secured Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Unused commitment fee (percent) | 0.35% | ||
Leverage ratio | 3 | ||
Senior Secured Revolving Credit Facility | Maximum | Financial Letter of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 1.875% | ||
Senior Secured Revolving Credit Facility | Maximum | Performance Letter Of Credit | |||
Debt Instrument [Line Items] | |||
Facility fee (percent) | 1.125% | ||
Senior Secured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 1.375% | ||
Senior Secured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 1.375% | ||
Senior Secured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 1.875% | ||
Senior Secured Revolving Credit Facility | Greater Of Potential Outcome One | Federal Funds Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0.50% | ||
Senior Secured Revolving Credit Facility | Greater Of Potential Outcome Two | One Month Libor | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 1.00% | ||
Senior Secured Revolving Credit Facility | Greater Of Potential Outcome Three | Prime Rate | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0.375% | ||
Senior Secured Revolving Credit Facility | Greater Of Potential Outcome Three | Prime Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0.375% | ||
Senior Secured Revolving Credit Facility | Greater Of Potential Outcome Three | Prime Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Spread on variable rate (percent) | 0.875% |
Pension Plans and Postretirem79
Pension Plans and Postretirement Benefits - Narrative (Detail) - USD ($) $ in Thousands | Jan. 01, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gains (losses) | $ (40,210) | $ (101,335) | $ 92,076 | |
Reduction in pensions and postretirement liabilities from mark to market adjustments | 4,100 | |||
Increase in pension liability | $ 46,900 | |||
Pension benefit expense (income) recognized in other comprehensive income as a component of net periodic benefit cost | 400 | |||
Other benefit expense (income) recognized in other comprehensive income as a component of net periodic benefit cost | $ 1,000 | |||
Expected return on plan assets assumption (percent) | 7.20% | |||
Percentage of investment return on domestic plan assets | (2.00%) | 14.00% | ||
Term of written notice required for termination from plan (in days) | 90 days | |||
Contributions as a percentage of total contributions to the Boilermaker Plan | 5.00% | |||
Thrift Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of matching contribution by employer | 50.00% | |||
Thrift Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Participants' contributions as a percentage of compensation | 6.00% | |||
Thrift Plan and MII Thrift Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | $ 8,900 | $ 7,400 | 7,500 | |
MEGTEC Union Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 300 | 300 | 300 | |
MEGTEC Non-union Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 1,100 | 1,200 | 1,100 | |
Pension Benefits Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gains (losses) | $ 47,098 | $ (156,058) | ||
Expected return on plan assets assumption (percent) | 6.98% | 7.00% | ||
Percentage of total assets | 93.00% | |||
VEBA | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gains (losses) | $ 296 | $ (1,804) | ||
Expected return on plan assets assumption (percent) | 0.00% | 0.00% | ||
Foreign Plans | Canada | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Continuous service period requirement as of December 31, 2011 (years) | 2 years | |||
Continuous service period requirement (months) | 6 months | |||
Employer contributions | $ 100 | $ 600 | $ 600 | |
Fixed Income (excluding United States Government Securities) | Domestic Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation by asset class | 55.00% | 55.00% | ||
Equity Securities | Domestic Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation by asset class | 45.00% | 45.00% |
Pension Plans and Postretirem80
Pension Plans and Postretirement Benefits - Obligations and Funded Status (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Change in benefit obligation: | |||
Actuarial loss (gain) | $ 40,210 | $ 101,335 | $ (92,076) |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 999,510 | ||
Fair value of plan assets at the end of period | 923,030 | 999,510 | |
Amounts recognized in the balance sheet consist of: | |||
Accumulated postretirement benefit obligation | (27,768) | (28,347) | |
Pension liability | (282,133) | (253,763) | |
Pension Benefits Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 1,253,278 | 1,099,717 | |
Service cost | 13,677 | 13,558 | 15,287 |
Interest cost | 49,501 | 51,181 | 46,266 |
Plan participants’ contributions | 156 | 175 | |
Curtailments | 0 | (146) | |
Settlements | 0 | (2,170) | |
Transfers /Acquisition | 15,992 | 4,426 | |
Amendments | 244 | 0 | |
Actuarial loss (gain) | (47,098) | 156,058 | |
Loss (gain) due to transfer | (523) | 0 | |
Foreign currency exchange rate changes | (11,450) | (5,575) | |
Benefits paid | (68,614) | (63,946) | |
Benefit obligation at end of period | 1,205,163 | 1,253,278 | 1,099,717 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 999,515 | 935,652 | |
Actual return on plan assets | (19,623) | 124,934 | |
Employer contribution | 8,711 | 8,452 | |
Plan participants' contributions | 156 | 175 | |
Settlements | 0 | (2,168) | |
Transfers | 13,974 | (178) | |
Foreign currency exchange rate changes | (11,089) | (3,406) | |
Benefits paid | (68,614) | (63,946) | |
Fair value of plan assets at the end of period | 923,030 | 999,515 | 935,652 |
Funded status | (282,133) | (253,763) | |
Amounts recognized in the balance sheet consist of: | |||
Accrued employee benefits | (1,927) | (1,269) | |
Accumulated postretirement benefit obligation | 0 | 0 | |
Pension liability | (281,711) | (253,664) | |
Prepaid pension | 1,505 | 1,170 | |
Accrued benefit liability, net | (282,133) | (253,763) | |
Prior service cost (credit) | 1,976 | 2,131 | |
Projected benefit obligation | 1,175,511 | 1,235,100 | |
Accumulated benefit obligation | 1,172,591 | 1,228,085 | |
Fair value of plan assets | 891,873 | 979,834 | |
Projected benefit obligation | 29,652 | 18,178 | |
Accumulated benefit obligation | 29,652 | 17,178 | |
Fair value of plan assets | 31,157 | 19,681 | |
Other Postretirement Benefit Plans | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of period | 34,909 | 36,422 | |
Service cost | 24 | 18 | 0 |
Interest cost | 1,143 | 1,087 | 1,046 |
Plan participants’ contributions | 276 | 777 | |
Curtailments | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers /Acquisition | 234 | 0 | |
Amendments | 0 | 0 | |
Actuarial loss (gain) | (296) | 1,804 | |
Loss (gain) due to transfer | 0 | 0 | |
Foreign currency exchange rate changes | (367) | (592) | |
Benefits paid | (4,034) | (4,607) | |
Benefit obligation at end of period | 31,889 | 34,909 | 36,422 |
Change in plan assets: | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contribution | 3,757 | 3,830 | |
Plan participants' contributions | 276 | 777 | |
Settlements | 0 | 0 | |
Transfers | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits paid | (4,034) | (4,607) | |
Fair value of plan assets at the end of period | 0 | 0 | $ 0 |
Funded status | (31,889) | (34,909) | |
Amounts recognized in the balance sheet consist of: | |||
Accrued employee benefits | (4,620) | (4,856) | |
Accumulated postretirement benefit obligation | (27,269) | (30,053) | |
Pension liability | 0 | ||
Prepaid pension | 0 | ||
Accrued benefit liability, net | (31,889) | (34,909) | |
Prior service cost (credit) | 0 | 0 | |
Projected benefit obligation | 0 | 0 | |
Accumulated benefit obligation | 31,889 | 34,909 | |
Fair value of plan assets | 0 | 0 | |
Projected benefit obligation | 0 | $ 0 | |
Accumulated benefit obligation | 0 | ||
Fair value of plan assets | $ 0 |
Pension Plans and Postretirem81
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 13,677 | $ 13,558 | $ 15,287 |
Interest cost | 49,501 | 51,181 | 46,266 |
Expected return on plan assets | (68,709) | (64,023) | (62,481) |
Amortization of prior service cost | 307 | 274 | 491 |
Recognized net actuarial loss (gain) | 41,574 | 99,090 | (88,012) |
Net periodic benefit cost (income) | 36,350 | 100,080 | (88,449) |
Other Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 24 | 18 | 0 |
Interest cost | 1,143 | 1,087 | 1,046 |
Expected return on plan assets | 0 | $ 0 | 0 |
Amortization of prior service cost | 0 | 0 | |
Recognized net actuarial loss (gain) | (1,364) | $ 2,245 | (4,064) |
Net periodic benefit cost (income) | $ (197) | $ 3,350 | $ (3,018) |
Pension Plans and Postretirem82
Pension Plans and Postretirement Benefits - Recognized Net Actuarial Loss (Gain) and the Affected Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Actuarial loss (gain) | $ 40,210 | $ 101,335 | $ (92,076) |
Cost of operations | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Actuarial loss (gain) | 44,307 | 94,204 | (84,772) |
Selling, general and administrative expenses | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Actuarial loss (gain) | (4,097) | 7,233 | (7,331) |
Other-net | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Actuarial loss (gain) | $ 0 | $ (102) | $ 27 |
Pension Plans and Postretirem83
Pension Plans and Postretirement Benefits - Weighted Average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Weighted average assumptions used to determine net periodic benefit cost, expected return on plan assets | 7.20% | |
Pension Benefits Plan | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Weighted average assumptions used to determine net periodic benefit obligations, discount rate | 3.98% | 3.99% |
Weighted average assumptions used to determine net periodic benefit obligations, rate of compensation increase | 2.51% | 2.56% |
Weighted average assumptions used to determine net periodic benefit cost, discount rate | 3.99% | 3.99% |
Weighted average assumptions used to determine net periodic benefit cost, expected return on plan assets | 6.98% | 7.00% |
Weighted average assumptions used to determine net periodic benefit cost, rate of compensation increase | 2.56% | 2.56% |
Other Benefits | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Weighted average assumptions used to determine net periodic benefit obligations, discount rate | 3.41% | 3.40% |
Weighted average assumptions used to determine net periodic benefit obligations, rate of compensation increase | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic benefit cost, discount rate | 3.40% | 3.40% |
Weighted average assumptions used to determine net periodic benefit cost, expected return on plan assets | 0.00% | 0.00% |
Weighted average assumptions used to determine net periodic benefit cost, rate of compensation increase | 0.00% | 0.00% |
Pension Plans and Postretirem84
Pension Plans and Postretirement Benefits - Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Health care cost trend rate assumed for next year | 8.50% | 7.50% |
Rates to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches ultimate trend rate | 2,024 | 2,021 |
Pension Plans and Postretirem85
Pension Plans and Postretirement Benefits - Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
One-Percentage-Point Increase, effect on total of service and interest cost | $ 22 |
One-Percentage-Point Increase, effect on postretirement benefit obligation | 1,502 |
One-Percentage-Point Decrease, effect on total of service and interest cost | (21) |
One-Percentage-Point Decrease, effect on postretirement benefit obligation | $ (898) |
Pension Plans and Postretirem86
Pension Plans and Postretirement Benefits - Plan Asset Allocations by Asset Category (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Domestic Plans | Fixed Income (excluding United States Government Securities) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 33.00% | 38.00% |
Domestic Plans | Commingled and Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 37.00% | 33.00% |
Domestic Plans | United States Government Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 18.00% | 15.00% |
Domestic Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 7.00% | 7.00% |
Domestic Plans | Partnerships with Security Holdings | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 0.00% | 5.00% |
Domestic Plans | Derivatives | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 4.00% | 0.00% |
Domestic Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 2.00% |
Foreign Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 1.00% |
Foreign Plans | Equity Securities and Commingled Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 48.00% | 46.00% |
Foreign Plans | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 51.00% | 53.00% |
Pension Plans and Postretirem87
Pension Plans and Postretirement Benefits - Target Allocation by Asset Class (Detail) - Foreign Plans | 12 Months Ended |
Dec. 31, 2015 | |
Fixed Income | Canada | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 50.00% |
Fixed Income | United Kingdom | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 74.00% |
U. S. Equity | Canada | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 20.00% |
U. S. Equity | United Kingdom | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 12.00% |
Global Equity | Canada | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 30.00% |
Global Equity | United Kingdom | |
Defined Benefit Plan Disclosure [Line Items] | |
Target allocation by asset class | 14.00% |
Pension Plans and Postretirem88
Pension Plans and Postretirement Benefits - Summary of Total Investments Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | $ 923,030 | $ 999,510 | |
Fixed Income | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 347,269 | 385,348 | |
Equities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 79,761 | 63,109 | |
Commingled and Mutual Funds | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 330,216 | 334,071 | |
United States Government Securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 155,975 | 144,609 | |
Partnerships with Security Holdings | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 48,967 | ||
Real Estate | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 2,141 | ||
Cash and accrued items | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 9,809 | 21,265 | |
Level 1 | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 236,275 | 224,799 | |
Level 1 | Fixed Income | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 1 | Equities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 79,761 | 63,109 | |
Level 1 | Commingled and Mutual Funds | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 4,665 | |
Level 1 | United States Government Securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 155,975 | 137,783 | |
Level 1 | Partnerships with Security Holdings | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | ||
Level 1 | Real Estate | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | ||
Level 1 | Cash and accrued items | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 539 | 19,242 | |
Level 2 | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 686,755 | 723,603 | |
Level 2 | Fixed Income | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 347,269 | 385,348 | |
Level 2 | Equities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 2 | Commingled and Mutual Funds | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 330,216 | 329,406 | |
Level 2 | United States Government Securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 6,826 | |
Level 2 | Partnerships with Security Holdings | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | ||
Level 2 | Real Estate | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | ||
Level 2 | Cash and accrued items | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 9,270 | 2,023 | |
Level 3 | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 51,108 | $ 55,188 |
Level 3 | Fixed Income | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 3 | Equities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 3 | Commingled and Mutual Funds | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 3 | United States Government Securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 0 | 0 | |
Level 3 | Partnerships with Security Holdings | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 48,967 | ||
Level 3 | Real Estate | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | 2,141 | ||
Level 3 | Cash and accrued items | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total Assets | $ 0 | $ 0 |
Pension Plans and Postretirem89
Pension Plans and Postretirement Benefits - Summary of Changes in Plans Level 3 Instruments Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | $ 999,510 | |
Fair value of plan assets at the end of period | 923,030 | $ 999,510 |
Level 3 | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 51,108 | 55,188 |
Issuances and acquisitions | 1,266 | 4,633 |
Dispositions | (53,417) | (16,306) |
Realized gain | 3,915 | 10,996 |
Unrealized gain | (2,872) | (3,403) |
Fair value of plan assets at the end of period | $ 0 | $ 51,108 |
Pension Plans and Postretirem90
Pension Plans and Postretirement Benefits - Cash Flows (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Domestic Plans | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Expected employer contributions to trusts of defined benefit plans, 2016 | $ 1,129 |
Expected benefit payments, 2016 | 65,997 |
Expected benefit payments, 2017 | 67,633 |
Expected benefit payments, 2018 | 68,981 |
Expected benefit payments, 2019 | 70,165 |
Expected benefit payments, 2020 | 71,202 |
Expected benefit payments, 2021-2025 | 361,313 |
Domestic Plans, Other Benefits | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Expected employer contributions to trusts of defined benefit plans, 2016 | 4,500 |
Expected benefit payments, 2016 | 4,496 |
Expected benefit payments, 2017 | 3,516 |
Expected benefit payments, 2018 | 3,336 |
Expected benefit payments, 2019 | 3,125 |
Expected benefit payments, 2020 | 2,921 |
Expected benefit payments, 2021-2025 | 11,152 |
Foreign Plans | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Expected employer contributions to trusts of defined benefit plans, 2016 | 3,243 |
Expected benefit payments, 2016 | 2,503 |
Expected benefit payments, 2017 | 3,247 |
Expected benefit payments, 2018 | 3,383 |
Expected benefit payments, 2019 | 3,508 |
Expected benefit payments, 2020 | 3,595 |
Expected benefit payments, 2021-2025 | 20,119 |
Foreign Plans, Other Benefits | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Expected employer contributions to trusts of defined benefit plans, 2016 | 144 |
Expected benefit payments, 2016 | 144 |
Expected benefit payments, 2017 | 148 |
Expected benefit payments, 2018 | 151 |
Expected benefit payments, 2019 | 154 |
Expected benefit payments, 2020 | 158 |
Expected benefit payments, 2021-2025 | $ 745 |
Pension Plans and Postretirem91
Pension Plans and Postretirement Benefits - Summary of Contribution to Multiemployer Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Contributions | $ 24.9 | $ 20.6 | $ 30.9 |
Boilermaker-Blacksmith National Pension Trust | |||
Multiemployer Plans [Line Items] | |||
EIN/PIN | 48-6168020/ 001 | ||
Pension Protection Act Zone Status | Yellow | Yellow | |
FIP/RP Status Pending/ Implemented | Yes | ||
Contributions | $ 20.3 | $ 16 | 19 |
Surcharge Imposed | No | ||
All Other | |||
Multiemployer Plans [Line Items] | |||
Contributions | $ 4.6 | $ 4.6 | $ 11.9 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Former Parent - USD ($) $ in Millions | Feb. 25, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Guarantees | $ 1,000 | |
Subsequent Event | ||
Related Party Transaction [Line Items] | ||
Guarantees | $ 90 |
Related Party Transactions - Sp
Related Party Transactions - Spin-off Transactions (Details) - Former Parent - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Sales to former Parent | $ 911 | $ 5,896 | $ 37,552 |
Corporate administrative expenses | $ 35,343 | $ 73,329 | $ 76,739 |
Related Party Transactions - Ne
Related Party Transactions - Net Transfers from Former Parent (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Acquisition of business, net of cash acquired | $ 0 | $ 127,705 | $ 0 |
Distribution of Nuclear Energy segment | 47,839 | 453 | |
Former Parent | |||
Related Party Transaction [Line Items] | |||
Sales to former Parent | 911 | 5,896 | 37,552 |
Corporate administrative expenses | 35,343 | 73,329 | 76,739 |
Income tax allocation | 11,872 | 3,378 | 21,956 |
Acquisition of business, net of cash acquired | 0 | 127,704 | 0 |
Cash pooling and general financing activities | (91,015) | 14,261 | (13,698) |
Cash contribution received at spin-off | 125,300 | 0 | 0 |
Net transfer from former Parent per statement of cash flows | 80,589 | 213,137 | 47,445 |
Net transfer of assets and liabilities | 44,706 | (62) | (37) |
Distribution of Nuclear Energy segment | (47,839) | 0 | 0 |
Net transfer from former Parent per statement of shareholders’ equity | $ 77,456 | $ 213,075 | $ 47,408 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Detail) $ / shares in Units, $ in Millions | Jun. 30, 2015 | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of options granted (usd per share) | $ / shares | $ 4.80 | $ 7.03 | $ 6.07 | |
Total intrinsic value of stock options exercised | $ | $ 2.3 | $ 0.9 | $ 1 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Actual tax benefits realized related to the stock options exercised | $ | $ 1.1 | |||
Babcock and Wilcox Enterprises Inc. | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Distribution ratio | 2 | |||
Two Thousand And Fifteen Long Term Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for grant | shares | 5,800,000 | |||
Remaining number of shares available for award grants | shares | 2,000,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used to Calculate Fair Value of Option Grant (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.38% | 0.97% | 0.56% |
Expected volatility | 28.00% | 30.00% | 33.00% |
Expected life of the option in years | 3 years 11 months 16 days | 3 years 9 months 4 days | 3 years 11 months 5 days |
Expected dividend yield | 0.00% | 1.22% | 1.19% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summarized Activity of Stock Options (Detail) - Stock Options $ / shares in Units, shares in Thousands | 6 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at beginning of period, Number of Shares | shares | 2,747 |
Granted, Number of Shares | shares | 52 |
Exercised, Number of Shares | shares | (433) |
Cancelled/expired/forfeited, Number of Shares | shares | (6) |
Outstanding at end of period, Number of Shares | shares | 2,360 |
Exercisable at end of period, Number of Shares | shares | 759 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at beginning of period, Weighted-Average Exercise Price (usd per share) | $ / shares | $ 17.42 |
Granted, Weighted-Average Exercise Price (usd per share) | $ / shares | 19.90 |
Exercised, Weighted-Average Exercise Price (usd per share) | $ / shares | 14.58 |
Cancelled/expired/forfeited, Weighted-Average Exercise Price (usd per share) | $ / shares | 19.12 |
Outstanding at end of period, Weighted-Average Exercise Price (usd per share) | $ / shares | 17.99 |
Exercisable at end of period, Weighted-Average Exercise Price (usd per share) | $ / shares | $ 17.15 |
Outstanding at end of period, Weighted-Average Remaining Contractual Term (years) | 6 years 9 months 11 days |
Exercisable at end of period, Weighted-Average Remaining Contractual Term (years) | 3 years 7 months 28 days |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 6,803,300 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 2,821,600 |
Stock-Based Compensation - Sc98
Stock-Based Compensation - Schedule of Changes in Nonvested Restricted Stock Units (Detail) - Restricted Stock Units shares in Thousands | 6 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested at beginning of period, Number of Shares | shares | 1,103 |
Granted, Number of Shares | shares | 56 |
Vested, Number of Shares | shares | (159) |
Cancelled/forfeited, Number of Shares | shares | (1) |
Nonvested at end of period, Number of Shares | shares | 999 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Nonvested at beginning of period, Weighted-Average Grant Date Fair Value (usd per share) | $ / shares | $ 19.53 |
Granted, Weighted-Average Grant Date Fair Value (usd per share) | $ / shares | 19.88 |
Vested, Weighted-Average Grant Date Fair Value (usd per share) | $ / shares | 19.73 |
Cancelled/forfeited, Weighted-Average Grant Date Fair Value (usd per share) | $ / shares | 21.59 |
Nonvested at end of period, Weighted-Average Grant Date Fair Value (usd per share) | $ / shares | $ 19.30 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) - Arkansas River Power Authority vs. Babcock & Wilcox Power Generation Group, Inc. $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Contingencies And Commitments [Line Items] | |
Overall cap of liability at original contract price | $ 20.5 |
Recovery of damages incurred | $ 170 |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
2,016 | $ 5,443 | ||
2,017 | 4,394 | ||
2,018 | 3,128 | ||
2,019 | 1,968 | ||
2,020 | 1,158 | ||
Thereafter | 337 | ||
Rental expense | $ 13,500 | $ 6,900 | $ 6,300 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | |
Former Parent | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Corporate allocation received from former parent | $ 2.7 | $ 5.3 | $ 9.8 | |
Nuclear Energy Segment | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets and liabilities distributed | $ 47.8 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations of Former NE Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 2,803 | $ (14,272) | $ 34,338 | |
Nuclear Energy Segment | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | $ 53,064 | 103,690 | 153,313 | |
Income (loss) before provision for income taxes | 3,358 | (19,072) | 44,532 | |
Income tax provision (benefit) | 555 | (4,800) | 10,195 | |
Income from discontinued operations, net of tax | $ 2,803 | $ (14,272) | $ 34,337 |
Discontinued Operations - Carry
Discontinued Operations - Carrying Values of Major Balance Sheet Accounts of Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
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 | $ 0 | 46,177 |
Non Current Assets: | ||
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 | $ 0 | 44,145 |
Non Current Liabilities: | ||
Accumulated postretirement benefit obligation | 7,835 | |
Pension liability | 7,082 | |
Other liabilities | 1,071 | |
Total liabilities of discontinued operations | $ 60,133 |
Investments - Summary of Availa
Investments - Summary of Available for Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 5,169 | $ 1,855 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (80) | (34) |
Estimated Fair Value | 5,089 | 1,821 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,997 | 1,607 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Estimated Fair Value | 3,996 | 1,607 |
Mutual funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,172 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (79) | |
Estimated Fair Value | $ 1,093 | |
Asset-backed securities and collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 248 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (34) | |
Estimated Fair Value | $ 214 |
Investments - Summary of Procee
Investments - Summary of Proceeds, Gross Realized Gains and Gross Realized Losses on Sales of Available for Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments Schedule [Abstract] | |||
Proceeds | $ (5,265) | $ (10,119) | $ (3,974) |
Gross Realized Gains | 49 | 15 | 0 |
Gross Realized Losses | $ (15) | $ (2) | $ 0 |
Derivative Financial Instrum106
Derivative Financial Instruments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gain (loss) expected to be reclassified from AOCI | $ 1,800,000 |
Derivative maturity date | Aug. 1, 2017 |
Derivatives Designated as Hedges | FX Forward Contracts | Cash Flow Hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional amount | $ 74,265,000 |
Derivative Financial Instrum107
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Details) - FX Forward Contracts - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives Designated as Hedges | Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 17 | $ 89 |
Derivatives Designated as Hedges | Accounts receivable-other | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1,545 | 88 |
Derivatives Designated as Hedges | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 688 | 0 |
Derivatives Designated as Hedges | Other liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 0 | 0 |
Derivatives Not Designated as Hedges | Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 101 | 284 |
Derivatives Not Designated as Hedges | Accounts receivable-other | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 72 | 175 |
Derivatives Not Designated as Hedges | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 0 |
Derivative Financial Instrum108
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives Designated as Hedges | Cash Flow Hedges | FX Forward Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of loss recognized in other comprehensive income | $ 2,920 | $ (47) |
Derivatives Designated as Hedges | Cash Flow Hedges | FX Forward Contracts | Revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | 546 | (53) |
Derivatives Designated as Hedges | Cash Flow Hedges | FX Forward Contracts | Cost of operations | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | 155 | 13 |
Derivatives Designated as Hedges | Cash Flow Hedges | FX Forward Contracts | Other-net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive income into earnings: effective portion | (24) | (6) |
Loss recognized in income: portion excluded from effectiveness testing | 252 | (339) |
Derivatives Not Designated as Hedges | Forward Contracts | Other-net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in income | $ 206 | $ (184) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Letter of Credit | |||
Fair Values Of Financial Instruments [Line Items] | |||
Letter of credit term (years) | 4 years | ||
Guarantee, issued a letter of credit | $ 10 | ||
Fair value of guarantee recognized | $ 1.7 | $ 1.7 | |
FX Forward Contracts | |||
Fair Values Of Financial Instruments [Line Items] | |||
Fair value of foreign currency forward contracts | $ 2.2 | $ (0.1) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments and Available-for-Sale Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 5,089 | $ 1,821 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 3,996 | 1,607 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,093 | |
Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 214 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Level 1 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 5,089 | 1,821 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 3,996 | 1,607 |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,093 | |
Level 2 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 214 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Level 3 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 0 | |
Level 3 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 0 |
Segments and Other Financial111
Segments and Other Financial Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2015segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segments and Other Financial112
Segments and Other Financial Information - Schedule of Revenue Information from Products and Service Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 444,556 | $ 402,016 | $ 327,379 | $ 312,078 | $ 1,757,295 | $ 1,486,029 | $ 1,767,651 |
Operating Segments | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 1,757,295 | 1,486,029 | 1,767,651 | ||||||||
Operating Segments | Global Power | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 639,970 | 471,929 | 712,461 | ||||||||
Operating Segments | Global Power | New Build Environmental Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 150,920 | 171,175 | 310,327 | ||||||||
Operating Segments | Global Power | New Build Steam Generation Systems | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 489,050 | 300,754 | 402,134 | ||||||||
Operating Segments | Global Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 933,630 | 908,682 | 1,055,190 | ||||||||
Operating Segments | Global Services | Parts and Technical Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 282,369 | 311,294 | 304,598 | ||||||||
Operating Segments | Global Services | Projects | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 297,567 | 286,094 | 406,196 | ||||||||
Operating Segments | Global Services | Construction Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 279,969 | 242,295 | 279,997 | ||||||||
Operating Segments | Global Services | Operations and Maintenance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 73,725 | 68,999 | 64,399 | ||||||||
Operating Segments | Industrial Environmental | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 183,695 | 105,418 | 0 | ||||||||
Operating Segments | Industrial Environmental | Environmental Solutions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 90,343 | 48,938 | 0 | ||||||||
Operating Segments | Industrial Environmental | Engineered Equipment | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | 32,002 | 21,190 | 0 | ||||||||
Operating Segments | Industrial Environmental | Aftermarket Services | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Revenues | $ 61,350 | $ 35,290 | $ 0 |
Segments and Other Financial113
Segments and Other Financial Information - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Gross profit | $ 64,954 | $ 77,922 | $ 81,884 | $ 83,397 | $ 4,784 | $ 88,370 | $ 69,028 | $ 56,851 | $ 308,157 | $ 219,033 | $ 436,481 |
Selling, general and administrative | (244,065) | (218,038) | (211,401) | ||||||||
Research and development | (16,543) | (18,483) | (21,043) | ||||||||
Loss on asset disposal and impairments | (14,597) | (1,752) | (1,181) | ||||||||
Equity in income (loss) of investees | (185) | 1,047 | 967 | (2,071) | 3,023 | 2,859 | 433 | 2,366 | (242) | 8,681 | 18,387 |
Restructuring activities | (14,946) | (20,183) | (18,343) | ||||||||
Mark to market adjustment included in selling, general and administrative expenses | 4,097 | (7,233) | 7,331 | ||||||||
Operating income (loss) | $ (9,973) | $ 9,632 | $ 4,859 | $ 17,343 | $ (71,202) | $ 25,542 | $ 3,170 | $ 4,515 | 21,861 | (37,975) | 210,231 |
Depreciation and amortization | 34,932 | 32,436 | 23,030 | ||||||||
Operating Segments | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Depreciation and amortization | 27,424 | 27,991 | 21,867 | ||||||||
Operating Segments | Global Power | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Gross profit | 111,309 | 94,647 | 126,275 | ||||||||
Equity in income (loss) of investees | (3,295) | (1,717) | 7,097 | ||||||||
Depreciation and amortization | 4,424 | 3,988 | 3,917 | ||||||||
Operating Segments | Global Services | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Gross profit | 192,241 | 193,629 | 225,434 | ||||||||
Equity in income (loss) of investees | 3,054 | 10,398 | 11,290 | ||||||||
Depreciation and amortization | 12,655 | 15,806 | 17,950 | ||||||||
Operating Segments | Industrial Environmental | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Gross profit | 48,914 | 24,961 | 0 | ||||||||
Depreciation and amortization | 10,345 | 8,197 | 0 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Gross profit | (44,307) | (94,204) | 84,772 | ||||||||
Corporate | |||||||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||||||||||
Depreciation and amortization | $ 7,508 | $ 4,445 | $ 1,163 |
Segments and Other Financial114
Segments and Other Financial Information - Schedule of Revenues by Geographical Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 444,556 | $ 402,016 | $ 327,379 | $ 312,078 | $ 1,757,295 | $ 1,486,029 | $ 1,767,651 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,034,653 | 934,397 | 1,144,853 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 134,276 | 136,382 | 235,815 | ||||||||
United Kingdom | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 126,285 | 61,972 | 20,042 | ||||||||
Denmark | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 116,064 | 65,436 | 56,336 | ||||||||
Dominican Republic | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 82,916 | 27,399 | 473 | ||||||||
Vietnam | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 46,803 | 3,829 | 1,946 | ||||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 41,921 | 53,005 | 52,932 | ||||||||
Chile | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 19,503 | 15,686 | 9,240 | ||||||||
Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 19,233 | 22,792 | 22,869 | ||||||||
Sweden | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 18,302 | 29,786 | 37,823 | ||||||||
India | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 13,108 | 5,070 | 4,670 | ||||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,377 | 6,188 | 2,173 | ||||||||
Finland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,113 | 4,926 | 0 | ||||||||
Poland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 5,437 | 3,343 | 1,748 | ||||||||
Columbia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,904 | 8,037 | 44,622 | ||||||||
Italy | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,671 | 3,540 | 2,532 | ||||||||
Netherlands | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,651 | 1,441 | 8,099 | ||||||||
Thailand | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,606 | 8,113 | 2,650 | ||||||||
South Africa | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,486 | 3,137 | 2,208 | ||||||||
South Korea | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,358 | 14,149 | 5,926 | ||||||||
Saudi Arabia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 4,220 | 8,003 | 8,200 | ||||||||
Greenland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 3,172 | 920 | 0 | ||||||||
Mexico | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,933 | 2,344 | 3,461 | ||||||||
Australia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,817 | 2,540 | 1,808 | ||||||||
Spain | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,311 | 1,102 | 640 | ||||||||
Brazil | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,176 | 3,156 | 2,751 | ||||||||
Malaysia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,173 | 706 | 1,808 | ||||||||
Taiwan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 2,141 | 1,007 | 1,144 | ||||||||
Tunisia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,868 | 169 | 0 | ||||||||
Indonesia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,730 | 5,324 | 6,227 | ||||||||
Other Countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 33,087 | $ 52,130 | $ 84,655 |
Segments and Other Financial115
Segments and Other Financial Information - Schedule of Property, Plant and Equipment, Net by Geographical Area (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | $ 145,717 | $ 135,237 | $ 130,907 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 88,840 | 82,209 | 77,993 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 1,201 | 3,757 | 6,581 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 13,956 | 12,356 | 10,980 |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 24,643 | 12,106 | 8,312 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 8,070 | 8,638 | 9,414 |
Denmark | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 6,265 | 6,963 | 8,715 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | 1,270 | 1,536 | 2,060 |
Other Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net property, plant and equipment | $ 1,472 | $ 7,672 | $ 6,852 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Income (loss) from continuing operations | $ 16,338 | $ (12,256) | $ 140,189 | ||||||||
Income (loss) from discontinued operations, net of tax | 2,803 | (14,272) | 34,338 | ||||||||
Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. | $ (5,204) | $ 6,169 | $ 5,487 | $ 12,689 | $ (48,162) | $ 5,609 | $ 4,936 | $ 11,089 | $ 19,141 | $ (26,528) | $ 174,527 |
Weighted average common shares used to calculate basic earnings per common share (shares) | 53,487,071 | 54,238,631 | 55,950,875 | ||||||||
Dilutive effect of stock options, restricted stock and performance shares (shares) | 221,912 | 0 | 391,834 | ||||||||
Weighted average common shares used to calculate diluted earnings per common share (shares) | 53,708,983 | 54,238,631 | 56,342,709 | ||||||||
Basic EPS continued operations (usd per share) | $ (0.10) | $ 0.11 | $ 0.08 | $ 0.21 | $ (0.63) | $ 0.24 | $ 0.03 | $ 0.13 | $ 0.31 | $ (0.23) | $ 2.51 |
Basic EPS discontinued operations (usd per share) | 0 | 0 | 0.02 | 0.03 | (0.27) | (0.14) | 0.06 | 0.07 | 0.05 | (0.26) | 0.61 |
Basic EPS (usd per share) | 0.36 | (0.49) | 3.12 | ||||||||
Diluted EPS continued operations (usd per share) | (0.10) | 0.11 | 0.08 | 0.21 | (0.63) | 0.24 | 0.03 | 0.13 | 0.30 | (0.23) | 2.49 |
Diluted EPS discontinued operations (usd per share) | $ 0 | $ 0 | $ 0.02 | $ 0.03 | $ (0.27) | $ (0.14) | $ 0.06 | $ 0.07 | 0.06 | (0.26) | 0.61 |
Diluted EPS (usd per share) | $ 0.36 | $ (0.49) | $ 3.10 | ||||||||
Antidilutive shares related to stock options excluded from the diluted share (shares) | 1,286,102 | 221,113 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) shares in Millions | 2 Months Ended | 12 Months Ended | |
Feb. 25, 2016 | Dec. 31, 2015 | Aug. 04, 2015 | |
Class of Stock [Line Items] | |||
Common stock repurchased | $ 24,279,000 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Common stock repurchase amount authorized | $ 100,000,000 | ||
Common stock repurchased (shares) | 1.3 | ||
Common stock repurchased | $ 24,300,000 | ||
Remaining common stick repurchase amount authorized | $ 52,400,000 | ||
Common Stock | Subsequent Event | |||
Class of Stock [Line Items] | |||
Common stock repurchased (shares) | 1.2 | ||
Common stock repurchased | $ 23,300,000 |
Quarterly Financial Data - Narr
Quarterly Financial Data - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Line Items] | ||||||
Actuarial gains (losses) recognized in pre-tax income | $ (40,210) | $ (101,335) | $ 92,076 | |||
Pension and Post Retirement Benefit Plans | ||||||
Quarterly Financial Data [Line Items] | ||||||
Actuarial gains (losses) recognized in pre-tax income | $ 40,200 | $ 99,300 | ||||
Foreign Plans | ||||||
Quarterly Financial Data [Line Items] | ||||||
Actuarial gains (losses) recognized in pre-tax income | $ (2,000) |
Quarterly Financial Data - Sele
Quarterly Financial Data - Selected Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 444,556 | $ 402,016 | $ 327,379 | $ 312,078 | $ 1,757,295 | $ 1,486,029 | $ 1,767,651 |
Gross profit | 64,954 | 77,922 | 81,884 | 83,397 | 4,784 | 88,370 | 69,028 | 56,851 | 308,157 | 219,033 | 436,481 |
Operating income (loss) | (9,973) | 9,632 | 4,859 | 17,343 | (71,202) | 25,542 | 3,170 | 4,515 | 21,861 | (37,975) | 210,231 |
Equity in income (loss) of investees | (185) | 1,047 | 967 | (2,071) | 3,023 | 2,859 | 433 | 2,366 | (242) | 8,681 | 18,387 |
Net income (loss) attributable to Babcock & Wilcox Enterprises, Inc. | $ (5,204) | $ 6,169 | $ 5,487 | $ 12,689 | $ (48,162) | $ 5,609 | $ 4,936 | $ 11,089 | $ 19,141 | $ (26,528) | $ 174,527 |
Basic EPS continued operations (usd per share) | $ (0.10) | $ 0.11 | $ 0.08 | $ 0.21 | $ (0.63) | $ 0.24 | $ 0.03 | $ 0.13 | $ 0.31 | $ (0.23) | $ 2.51 |
Basic EPS discontinued operations (usd per share) | 0 | 0 | 0.02 | 0.03 | (0.27) | (0.14) | 0.06 | 0.07 | 0.05 | (0.26) | 0.61 |
Diluted EPS continued operations (usd per share) | (0.10) | 0.11 | 0.08 | 0.21 | (0.63) | 0.24 | 0.03 | 0.13 | 0.30 | (0.23) | 2.49 |
Diluted EPS discontinued operations (usd per share) | $ 0 | $ 0 | $ 0.02 | $ 0.03 | $ (0.27) | $ (0.14) | $ 0.06 | $ 0.07 | $ 0.06 | $ (0.26) | $ 0.61 |