Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 20, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,698,385 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 737 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenues | $ 1,578,263 | $ 1,757,295 | $ 1,486,029 |
Costs and expenses: | |||
Cost of operations | 1,399,146 | 1,449,138 | 1,266,996 |
Research and development costs | 10,406 | 16,543 | 18,483 |
Losses (gains) on asset disposals and impairments, net | (32) | 14,597 | 1,752 |
Selling, general and administrative expenses | 247,149 | 239,968 | 225,271 |
Restructuring activities and spin-off transaction costs | 40,807 | 14,946 | 20,183 |
Total costs and expenses | 1,697,476 | 1,735,192 | 1,532,685 |
Equity in income (loss) of investees | 16,440 | (242) | 8,681 |
Operating income (loss) | (102,773) | 21,861 | (37,975) |
Other income (expense): | |||
Interest income | 810 | 618 | 1,060 |
Interest Income (Expense), Net | (3,796) | (1,059) | (492) |
Other – net | (2,380) | (1,215) | 789 |
Total other income (expense) | (5,366) | (1,656) | 1,357 |
Income (loss) before income tax expense | (108,139) | 20,205 | (36,618) |
Income tax expense (benefit) | 6,943 | 3,671 | (24,728) |
Income (loss) from continuing operations | (115,082) | 16,534 | (11,890) |
Income (loss) from discontinued operations, net of tax | 0 | 2,803 | (14,272) |
Net income (loss) | (115,082) | 19,337 | (26,162) |
Net income attributable to noncontrolling interest | (567) | (196) | (366) |
Net income (loss) attributable to shareholders | (115,649) | 19,141 | (26,528) |
Amounts attributable to shareholders: | |||
Income (loss) from continuing operations | (115,649) | 16,338 | (12,256) |
Income (loss) from discontinued operations, net of tax | 0 | 2,803 | (14,272) |
Net income (loss) attributable to shareholders | $ (115,649) | $ 19,141 | $ (26,528) |
Basic earnings per common share: | |||
Continuing operations (usd per share) | $ (2.31) | $ 0.31 | $ (0.23) |
Discontinued operations (usd per share) | 0 | 0.05 | (0.26) |
Basic earnings per common share (usd per share) | (2.31) | 0.36 | (0.49) |
Diluted earnings per common share: | |||
Continuing operations (usd per share) | (2.31) | 0.30 | (0.23) |
Discontinued operations (usd per share) | 0 | 0.06 | (0.26) |
Diluted earnings per common share (usd per share) | $ (2.31) | $ 0.36 | $ (0.49) |
Shares used in the computation of earnings per share: | |||
Basic (shares) | 50,129 | 53,487 | 54,239 |
Diluted (shares) | 50,129 | 53,709 | 54,239 |
Condensed Consolidated and Com3
Condensed Consolidated and Combined Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (115,082) | $ 19,337 | $ (26,162) |
Other comprehensive income (loss): | |||
Currency translation adjustments | (24,494) | (19,459) | (26,895) |
Derivative financial instruments: | |||
Unrealized gains (losses) on derivative financial instruments | 2,208 | 282 | (3,184) |
Income taxes | 162 | (57) | (824) |
Unrealized gains on derivative financial instruments, net of taxes | 2,046 | 339 | (2,360) |
Derivative financial instrument (gains) losses reclassified into net income | (3,598) | 1,557 | 2,169 |
Income taxes | (568) | 424 | 559 |
Reclassification adjustment for (gains) losses included in net income, net of taxes | (3,030) | 1,133 | 1,610 |
Benefit obligations: | |||
Unrealized gains (losses) on benefit obligations | 12,202 | 462 | 2,719 |
Income taxes | 4,510 | (57) | (1,237) |
Unrealized gains (losses) on benefit obligations, net of taxes | 7,692 | 519 | 3,956 |
Amortization of benefit plan costs (benefits) | (254) | 1,042 | 931 |
Income taxes | (404) | 1,237 | 2,242 |
Amortization of benefit plan costs (benefits), net of taxes | 150 | (195) | (1,311) |
Investments: | |||
Unrealized gains (losses) on investments | 11 | (65) | (2) |
Income taxes | 4 | (16) | 0 |
Unrealized gains (losses) on investments, net of taxes | 7 | (49) | (2) |
Investment gains reclassified into net income | 0 | 42 | |
Income taxes | 0 | 15 | 0 |
Reclassification adjustments for losses included in net income, net of taxes | 0 | 27 | 0 |
Other comprehensive income (loss) | (17,629) | (17,685) | (25,002) |
Total comprehensive income (loss) | (132,711) | 1,652 | (51,164) |
Comprehensive loss attributable to noncontrolling interest | (575) | (183) | (329) |
Comprehensive income (loss) attributable to shareholders | $ (133,286) | $ 1,469 | $ (51,493) |
Condensed Consolidated and Com4
Condensed Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (115,082) | $ 19,337 | $ (26,162) |
Non-cash items included in net income (loss): | |||
Depreciation and amortization | 39,583 | 34,932 | 32,436 |
Debt issuance cost amortization | 1,244 | 622 | 0 |
(Income) loss of equity method investees, net of dividends | (16,440) | 242 | 8,743 |
Losses on asset disposals and impairments | 14,938 | 16,881 | 5,989 |
Write-off of accrued claims receivable, net | 0 | 7,832 | 0 |
Provision for (benefit from) deferred taxes | (9,000) | (32,121) | (42,023) |
Recognition of losses for pension and postretirement plans | 36,346 | 40,611 | 101,792 |
Stock-based compensation charges and excess tax benefits | 16,129 | 7,773 | (11) |
Changes in assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | 58,915 | (33,977) | (13,797) |
Accrued insurance receivable | (15,000) | 0 | 0 |
Contracts in progress and advance billings on contracts | (13,259) | 62,971 | (8,860) |
Inventories | 2,869 | 6,060 | (99,192) |
Income taxes | 22,593 | 9,275 | 4,309 |
Accounts payable | 4,542 | 17,863 | 10,123 |
Accrued and other current liabilities | 25,110 | 11,464 | 9,660 |
Pension liabilities, accrued postretirement benefits and employee benefits | (46,973) | (2,336) | (17,259) |
Other, net | (4,242) | 2,970 | 10,028 |
Net cash from operating activities | 2,273 | 170,399 | (24,224) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Decrease in restricted cash and cash equivalents | 9,374 | 6,298 | (5,646) |
Purchases of property, plant and equipment | (22,450) | (35,397) | (15,475) |
Acquisition of business, net of cash acquired | (144,780) | 0 | (127,705) |
Proceeds from Sale of Equity Method Investments | 17,995 | 0 | 0 |
Investment in equity method investees | (26,256) | (7,424) | (4,900) |
Purchases of available-for-sale securities | (45,217) | (14,008) | (4,450) |
Sales and maturities of available-for-sale securities | 29,846 | 5,266 | 10,118 |
Other | 646 | (587) | (573) |
Net cash from investing activities | (180,842) | (45,852) | (148,631) |
Cash flows from financing activities: | |||
Payments of debt issuance costs | 0 | 0 | 2,967 |
Net transfers from our former Parent | 0 | 80,589 | 213,137 |
Repurchase of shares of our common stock | (78,410) | (25,408) | 0 |
Other | (246) | (491) | 100 |
Net cash from financing activities | (83,430) | 53,610 | 211,666 |
Effects of exchange rate changes on cash | (7,306) | (6,407) | (12,573) |
Cash flow from continuing operations | (269,305) | 171,750 | 26,238 |
Cash flows from discontinued operations: | |||
Operating cash flows from discontinued operations, net | 0 | (25,194) | (191) |
Investing cash flows from discontinued operations, net | 0 | (23) | (1,729) |
Effect of exchange rate changes on cash | 0 | 0 | 3,023 |
Net cash flows from discontinued operations | 0 | (25,217) | 1,103 |
Net increase (decrease) in cash and equivalents | (269,305) | 146,533 | 27,341 |
Cash and equivalents, beginning of period | 365,192 | 218,659 | 191,318 |
Cash and equivalents, end of period | 95,887 | 365,192 | 218,659 |
US Revolving Credit Facility [Member] | |||
Cash flows from financing activities: | |||
Borrowings under our revolving credit facilities | 205,600 | 0 | 0 |
Repayments of our revolving credit facilities | (195,800) | 0 | 0 |
Foreign Revolvers [Member] | |||
Cash flows from financing activities: | |||
Borrowings under our revolving credit facilities | 5,674 | 0 | 0 |
Repayments of our revolving credit facilities | $ (20,248) | $ (1,080) | $ (4,538) |
Condensed Consolidated and Com5
Condensed Consolidated and Combined Balance Sheet Statement - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 95,887 | $ 365,192 |
Restricted cash and cash equivalents | 27,770 | 37,144 |
Accounts receivable - trade, net | 282,347 | 291,242 |
Accounts receivable - other | 73,756 | 44,765 |
Contracts in progress | 166,010 | 128,174 |
Inventories | 85,807 | 90,119 |
Other current assets | 45,957 | 21,548 |
Total current assets | 777,534 | 978,184 |
NONCURRENT ASSETS | ||
Property, plant and equipment - gross | 332,537 | 330,021 |
Accumulated depreciation | 198,900 | 184,304 |
Net property, plant and equipment | 133,637 | 145,717 |
Goodwill | 267,395 | 201,069 |
Deferred income taxes | 163,388 | 190,656 |
Investments in unconsolidated affiliates | 98,682 | 92,196 |
Intangible assets | 71,039 | 37,844 |
Other assets | 17,468 | 17,379 |
Total assets | 1,529,143 | 1,663,045 |
CURRENT LIABILITIES | ||
Revolving debt | 24,041 | 2,005 |
Accounts payable | 220,737 | 175,170 |
Accrued employee benefits | 35,497 | 51,476 |
Advance billings on contracts | 210,642 | 229,390 |
Accrued warranty expense | 40,467 | 39,847 |
Other accrued liabilities | 95,954 | 63,464 |
Total current liabilities | 617,538 | 561,352 |
NONCURRENT LIABILITIES | ||
Accumulated postretirement benefit obligations | 12,822 | 27,768 |
Pension liabilities | 288,437 | 282,133 |
Other liabilities | 49,395 | 43,365 |
Total liabilities | 968,192 | 914,618 |
Common stock, par value $0.01 per share, authorized 200,000 shares; issued 48,688 and 52,481 shares at December 31, 2016 and 2015, respectively | 544 | 540 |
Capital in excess of par value | 806,589 | 790,464 |
Treasury stock at cost, 5,592 and 1,376 shares at December 31, 2016 and December 31, 2015, respectively | 103,818 | 25,408 |
Retained earnings (deficit) | (114,684) | 965 |
Accumulated other comprehensive loss | (36,482) | (18,853) |
Stockholders' equity attributable to shareholders | 552,149 | 747,708 |
Noncontrolling interest | 8,802 | 719 |
Total stockholders' equity | 560,951 | 748,427 |
Total liabilities and stockholders' equity | 1,529,143 | 1,663,045 |
Foreign Revolving Credit Facility [Member] | ||
CURRENT LIABILITIES | ||
Revolving debt | $ 14,241 | $ 2,005 |
Condensed Consolidated and Com6
Condensed Consolidated and Combined Balance Sheet Equity Section - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 48,687,814 | 52,480,630 |
Treasury Stock, Shares | 5,592,885,000 | 1,376,226 |
Condensed Consolidated and Com7
Condensed Consolidated and Combined Statement of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Former Parent Investment [Member] | Noncontrolling Interest [Member] |
Common Stock, Shares, Issued | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 525,644 | $ 0 | $ 0 | $ 0 | $ 0 | $ 35,339 | $ 489,381 | $ 924 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (26,162) | (26,528) | 366 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (26,895) | (26,858) | (37) | |||||
Foreign Currency Translation Adjustment, Description | (26,895) | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ (750) | (750) | ||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 2,645 | 2,645 | ||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (2) | (2) | ||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | (108) | (108) | ||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (226) | (226) | ||||||
Net Transfer From To Former Parent | 213,075 | 213,075 | ||||||
Common Stock, Shares, Issued | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 687,437 | $ 0 | 0 | 0 | 0 | 10,374 | 676,036 | 1,027 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 19,337 | 965 | 18,176 | 196 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (19,459) | (19,446) | (13) | |||||
Foreign Currency Translation Adjustment, Description | (19,459) | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 1,472 | 1,472 | ||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 324 | 324 | ||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | (22) | (22) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 137,000 | |||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | (6,652) | $ (17) | (7,772) | 1,143 | (6) | |||
Treasury Stock, Shares, Acquired | (1,376,000) | |||||||
Treasury Stock, Value, Acquired, Par Value Method | (24,279) | $ (14) | (24,265) | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (491) | (491) | ||||||
Net Transfer From To 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 Additional Paid-In Capital, Shares | 53,720,000 | |||||||
Reclassification of Former Parent Investment to Additional Paid-in Capital | $ 0 | $ 537 | 782,692 | (783,229) | ||||
Common Stock, Shares, Issued | 52,480,630 | 52,481,000 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 748,427 | $ 540 | 790,464 | (25,408) | 965 | (18,853) | 0 | 719 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (115,082) | (115,649) | 567 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (24,494) | (24,494) | 8 | |||||
Foreign Currency Translation Adjustment, Description | (24,486) | |||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ (984) | (984) | ||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 7,842 | 7,842 | ||||||
SPIG Acquisition | 7,754 | 7,754 | ||||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 7 | 7 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 423,000 | |||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | (13,440) | $ (46) | (16,125) | 2,731 | ||||
Treasury Stock, Shares, Acquired | (4,216,000) | |||||||
Treasury Stock, Value, Acquired, Par Value Method | (75,721) | $ (42) | (75,679) | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | $ (246) | (246) | ||||||
Common Stock, Shares, Issued | 48,687,814 | 48,688,000 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 560,951 | $ 544 | $ 806,589 | $ (103,818) | $ (114,684) | $ (36,482) | $ 0 | $ 8,802 |
Significant Accounting Policies
Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | - SIGNIFICANT ACCOUNTING POLICIES Reportable segments We operate in three reportable segments. Our reportable segments are as follows: • Power segment : Focused on the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. • Renewable segment : Focused on the supply of steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries. • Industrial segment : Focused on custom-engineered cooling, environmental, and other industrial equipment along with related aftermarket services. For financial information about our segments see Note 5 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 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 $(5.4) million , $(0.1) million and $1.8 million in the years ended December 31, 2016 , 2015 and 2014 , 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 contract loss is recognized in full in the statement of operations and an accrual for the estimated loss on the uncompleted contract is included in other current liabilities in the balance sheet. In addition, when we determine that an uncompleted contract will not be completed on-time and the contract has liquidated damages provisions, we recognize the estimated liquidated damages we will incur and record them as a reduction of revenue in the period the change in estimate occurs. 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, 2016 , 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 unsupported representations. 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 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 $10.4 million , $16.5 million and $18.5 million in the years ended December 31, 2016 , 2015 and 2014 , 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 activities that were determined not to be commercially viable. 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. In 2016, we changed our approach to developing the discount rate from a single equivalent discount rate to an alternative spot rate method. This new method was adopted because it more accurately applies each year’s spot rates to the projected cash flows. This change in estimate was applied prospectively in developing our annual discount rate, which resulted in a lower interest and service cost during 2016. 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. 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 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 18 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. 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. 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. Trade accounts receivable and allowance for doubtful accounts Our trade accounts receivable balance is stated at the amount owed by our customers, net of allowances for estimated uncollectible balances. We maintain allowances for doubtful accounts for estimated losses expected to result from the inability of our customers to make required payments. These estimates are based on management’s evaluation of the ability of customers to make payments, with emphasis on historical remittance experience, known customer financial difficulties and the age of receivable balances. Accounts receivable are charged to the allowance when it is determined they are no longer collectible. Our allowance for doubtful accounts was $9.4 million and $6.3 million at December 31, 2016 and 2015, respectively. Amounts charged to selling, general and administrative expenses or deducted from the allowance were not significant to our statement of operations in the years ended December 31, 2016 , 2015 and 2014 . 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 Power segment, for which we use the last-in, first-out ("LIFO") method. We determined the cost of approximately 18% and 20% of our total inventories using the LIFO method at December 31, 2016 and 2015 , respectively, and our total LIFO reserve at December 31, 2016 and 2015 was approximately $7.0 million and $7.7 million , respectively. The components of inventories can be found in Note 13 . 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 $19.7 million , $23.5 million and $22.3 million for the years ended December 31, 2016 , 2015 and 2014 , 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 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. 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. 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 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 balance sheets are reserves for self-insurance totaling $24.1 million at each of the years ended December 31, 2016 and 2015 . 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 20 . 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 We expense stock-based compensation in accordance with Financial Accounting Standards Board ("FASB") Topic Compensation – Stock C ompensation. 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, 2016 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 9 for a further discussion of stock-based compensation. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE On June 30, 2015, 53,719,878 shares of our common stock were distributed to BWC shareholders to complete our spin-off transaction. The basic and diluted weighted average shares outstanding were based on the weighted average number of BWC common shares outstanding for the period ending June 30, 2015, adjusted for a distribution ratio of one share of B&W common stock for every two shares of BWC common stock. The following table sets forth the computation of basic and diluted earnings per share of our common stock: Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Income (loss) from continuing operations $ (115,649 ) $ 16,338 $ (12,256 ) Income (loss) from discontinued operations, net of tax — 2,803 (14,272 ) Net income (loss) attributable to shareholders $ (115,649 ) $ 19,141 $ (26,528 ) Weighted average shares used to calculate basic earnings per share 50,129 53,487 54,239 Dilutive effect of stock options, restricted stock and performance shares (1) — 222 — Weighted average shares used to calculate diluted earnings per share 50,129 53,709 54,239 Basic earnings (loss) per share: Continuing operations $ (2.31 ) $ 0.31 $ (0.23 ) Discontinued operations — 0.05 (0.26 ) Basic earnings (loss) per share $ (2.31 ) $ 0.36 $ (0.49 ) Diluted earnings (loss) per share: Continuing operations $ (2.31 ) $ 0.30 $ (0.23 ) Discontinued operations — 0.06 (0.26 ) Diluted earnings (loss) per share $ (2.31 ) $ 0.36 $ (0.49 ) (1) Because we incurred a net loss in 2016, basic and diluted shares are the same. If we had net income in 2016, diluted shares would include an additional 0.5 million shares, and would exclude 3.4 million shares related to stock options because their effect would have been anti-dilutive. At December 31, 2015, we excluded from the diluted share calculation 1.3 million shares related to stock options, as their effect would have been anti-dilutive. |
SPIG ACQUISITION (Notes)
SPIG ACQUISITION (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information [Table Text Block] | SPIG ACQUISITION On July 1, 2016, we acquired all of the outstanding stock of SPIG S.p.A. ("SPIG") for €155 million (approximately $172.1 million ) in an all-cash transaction, which was subject to post-closing adjustments. During September 2016, €2.6 million (approximately $2.9 million ) of the transaction price was returned to B&W based on the difference between the actual working capital and pre-close estimates. Transaction costs included in the purchase price associated with closing the acquisition of SPIG on July 1, 2016 were approximately $0.3 million . Based in Arona, Italy, SPIG is a global provider of custom-engineered comprehensive dry and wet cooling solutions and aftermarket services to the power generation industry including natural gas-fired and renewable energy power plants, as well as downstream oil and gas, petrochemical and other industrial end markets. The acquisition of SPIG is consistent with B&W's goal to grow and diversify its technology-based offerings with new products and services in the industrial markets that are complementary to our core businesses. In the year ended December 31, 2016 , SPIG contributed $96.3 million of revenue and $7.8 million of gross profit to the Industrial segment. We accounted for the SPIG acquisition using the acquisition method. All of the assets acquired and liabilities assumed were recognized at their estimated fair value as of the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired was recorded as goodwill. Several valuation methods were used to determine the fair value of the assets acquired and liabilities assumed. For intangible assets, we used the income method, which required us to forecast the expected future net cash flows for each intangible asset. These cash flows were then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the projected cash flows. Some of the more significant estimates and assumptions inherent in the income method include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows and the assessment of the asset's economic life and the competitive trends impacting the asset, including consideration of any technical, legal, regulatory or economic barriers to entry. Determining the useful life of an intangible asset also required judgment as different types of intangible assets will have different useful lives, or indefinite useful lives. The allocation of the purchase price, based on the estimated fair value of assets acquired and liabilities assumed, is detailed below. (in thousands) Estimated Acquisition Date Fair Value Cash $ 25,994 Accounts receivable 58,843 Contracts in progress 61,155 Inventories 2,554 Other assets 7,341 Property, plant and equipment 6,104 Goodwill 72,401 Identifiable intangible assets 55,164 Deferred income tax assets 5,550 Revolving debt (27,530 ) Current liabilities (56,323 ) Advance billings on contracts (15,226 ) Other noncurrent liabilities (379 ) Deferred income tax liabilities (17,120 ) Noncontrolling interest in joint venture (7,754 ) Net acquisition cost $ 170,774 We finalized the purchase price allocation as of December 31, 2016, which resulted in a $2.5 million increase in goodwill. The goodwill arising from the purchase price allocation of the SPIG acquisition is believed to be a result of the synergies created from combining its operations with B&W's, and the growth it can provide from its wide scope of engineered cooling and service offerings and customer base. None of this goodwill is expected to be deductible for tax purposes. The intangible assets included above consist of the following (dollar amount in thousands): (in thousands) Estimated Fair Value Weighted Average Estimated Useful Life (in Years) Customer relationships $ 12,217 9 Backlog 17,769 2 Trade names / trademarks 8,885 20 Technology 14,438 10 Non-compete agreements 1,666 3 Internally-developed software 189 3 Total amortizable intangible assets $ 55,164 The acquisition of SPIG added $13.3 million of intangible asset amortization expense during the year ended December 31, 2016. Amortization of intangible assets is not allocated to segment results. Approximately $3.5 million of acquisition and integration related costs of SPIG was recorded as selling, general and administrative expenses in the consolidated and combined statement of operations for the year ended December 31, 2016, respectively. The following unaudited pro forma financial information below represents our results of operations for years ended December 31, 2016 and 2015 had the SPIG acquisition occurred on January 1, 2015. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2015. This information should not be taken as representative of our future consolidated results of operations. Year Ended December 31, (in thousands) 2016 2015 Revenues $ 1,663,126 $ 1,941,987 Net income (loss) attributable to B&W (111,500 ) 12,047 Basic earnings per common share (2.22 ) 0.23 Diluted earnings per common share (2.22 ) 0.22 |
Restructuring Activities and Sp
Restructuring Activities and Spin Transaction Costs | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Spin Transaction Costs | Spin-off transaction costs In the years ended December 31, 2016 and 2015 , we incurred $3.8 million and $3.3 million , respectively, of costs directly related to the spin-off from our former Parent. The costs were primarily attributable to employee retention awards. 2016 Restructuring activities On June 28, 2016, we announced actions to restructure our power business in advance of significantly lower demand now projected for power generation from coal in the United States. The new organizational structure includes a redesigned work flow to provide an efficient, flexible organization that can adapt to the changing market conditions and volumes. The costs associated with the restructuring activities were $31.4 million in the year ended December 31, 2016 , and were primarily related to employee severance of $14.1 million and non-cash impairment of the long-lived assets at B&W's one coal-fired power plant located in Ebensburg, Pennsylvania of $14.9 million . Other costs associated with the restructuring of $2.4 million are related to organizational realignment of personnel and processes and an increase in valuation allowances associated with our deferred tax assets (see Note 10 ). The 2016 restructuring activities are expected to allow our business to continue to serve the power market and maintain gross margins, despite the expected decline in volume as a result of the lower projected demand in the US coal-fired power generation market. These restructuring actions are primarily in the Power segment |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Year Ended December 31, (in thousands) 2016 2015 2014 DEPRECIATION AND AMORTIZATION Power segment $ 11,231 $ 18,532 $ 21,561 Renewable segment 2,711 2,567 2,809 Industrial segment 19,073 10,345 8,066 Segment depreciation and amortization 33,015 31,444 32,436 Corporate 6,568 3,488 — Total depreciation and amortization $ 39,583 $ 34,932 $ 32,436 SEGMENT REPORTING Our operations are assessed based on three reportable segments, which changed beginning in the third quarter of 2016 with the purchase of SPIG as described in Note 4 . Segment results for prior periods have been restated for comparative purposes. • Power segment : Focused on the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. • Renewable segment : Focused on the supply of steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries. • Industrial segment : Focused on custom-engineered cooling, environmental, and other industrial equipment along with related aftermarket services. An analysis of our operations by segment is as follows: Year Ended December 31, (in thousands) 2016 2015 2014 REVENUES Power segment Retrofits & continuous emissions monitoring systems $ 392,854 $ 427,378 $ 323,623 New build utility and environmental 292,302 403,981 343,956 Aftermarket parts and field engineering services 292,535 304,923 349,398 Industrial steam generation 107,267 219,379 208,229 Eliminations (109,480 ) (120,664 ) (68,627 ) 975,478 1,234,997 1,156,579 Renewable segment Renewable new build and services 284,684 277,326 171,004 Operations and maintenance 65,814 63,437 57,977 Eliminations (1,326 ) (2,160 ) (4,949 ) 349,172 338,603 224,032 Industrial segment Industrial aftermarket parts and services 81,690 61,350 35,290 Environmental solutions 74,726 90,343 48,938 Cooling systems 73,797 — — Engineered products 23,400 32,002 21,190 253,613 183,695 105,418 $ 1,578,263 $ 1,757,295 $ 1,486,029 The segment information presented in the table above reflects the product line revenues that are reviewed by each segment's manager. These gross product line revenues exclude any eliminations of revenues generated from sales to other segments or to other product lines within the segment. The primary component of the Power segment elimination is revenue associated with construction serv ices. Year Ended December 31, (in thousands) 2016 2015 2014 GROSS PROFIT: Power segment $ 233,550 $ 247,632 $ 237,491 Renewable segment (68,109 ) 57,682 53,449 Industrial segment 50,726 54,826 30,400 Intangible asset amortization expense included in cost of operations (15,842 ) (7,676 ) (7,501 ) Mark to market loss included in cost of operations (21,208 ) (44,307 ) (94,806 ) 179,117 308,157 219,033 Selling, general and administrative expenses (240,166 ) (240,296 ) (215,379 ) Restructuring activities and spin-off transaction costs (40,807 ) (14,946 ) (20,183 ) Equity in income (loss) of investees 16,440 (242 ) 8,681 Research and development costs (10,406 ) (16,543 ) (18,483 ) Intangible asset amortization expense included in SG&A (4,081 ) (3,769 ) (2,659 ) Mark to market (loss) gain included in SG&A (2,902 ) 4,097 (7,233 ) Gains (losses) on asset disposals and impairments, net 32 (14,597 ) (1,752 ) Operating income (loss) $ (102,773 ) $ 21,861 $ (37,975 ) Year Ended December 31, (in thousands) 2016 2015 2014 DEPRECIATION AND AMORTIZATION Power segment $ 11,231 $ 18,532 $ 21,561 Renewable segment 2,711 2,567 2,809 Industrial segment 19,073 10,345 8,066 Segment depreciation and amortization 33,015 31,444 32,436 Corporate 6,568 3,488 — Total depreciation and amortization $ 39,583 $ 34,932 $ 32,436 We do not separately identify or report our Company's asset by segment as the majority of our assets are shared by the Power and Renewable 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, (in thousands) 2016 2015 2014 REVENUES (1) United States $ 851,955 $ 1,034,653 $ 934,397 United Kingdom 201,221 126,285 61,972 Canada 74,629 134,276 136,382 Denmark 54,722 116,064 65,436 Vietnam 55,265 46,803 3,829 South Korea 44,660 4,358 14,149 Egypt 35,878 — — China 33,898 41,921 53,005 Germany 29,559 19,233 22,792 Sweden 24,809 18,302 29,786 Dominican Republic 21,366 82,916 27,399 Turkey 11,113 — — Thailand 8,051 4,606 8,113 Italy 7,862 4,671 3,540 India 6,856 13,108 5,070 Indonesia 6,723 1,730 5,324 Colombia 6,398 4,904 8,037 Finland 5,756 6,113 4,926 Australia 5,729 2,817 2,540 Aggregate of all other countries, each with less than $5 million in revenues 91,813 94,535 99,332 $ 1,578,263 $ 1,757,295 $ 1,486,029 (1) We allocate geographic revenues based on the location of the customer's operations. Year Ended December 31, (in thousands) 2016 2015 2014 NET PROPERTY, PLANT AND EQUIPMENT United States $ 75,368 $ 88,840 $ 82,209 Mexico 22,594 24,643 12,106 China 13,460 13,956 12,356 United Kingdom 6,337 8,070 8,638 Denmark 6,749 6,265 6,963 Aggregate of all other countries, each with less than $5 million of net property, plant and equipment 9,129 3,943 12,965 $ 133,637 $ 145,717 $ 135,237 |
Contracts and Revenue Recogniti
Contracts and Revenue Recognition (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Contracts and Revenue Recognition [Abstract] | |
Revenue Recognition, Multiple-deliverable Arrangements [Table Text Block] | – CONTRACTS AND REVENUE RECOGNITION We generally recognize revenues and related costs from long-term contracts on a percentage-of-completion basis. Accordingly, we review contract price and cost estimates regularly as work progresses and reflect adjustments in profit proportionate to the percentage of completion in the periods in which we revise estimates to complete the contract. To the extent that these adjustments result in a reduction of previously reported profits from a project, we recognize a charge against current earnings. Changes in the estimated results of our percentage-of-completion contracts are necessarily based on information available at the time that the estimates are made and are based on judgments that are inherently uncertain as they are predictive in nature. As with all estimates to complete used to measure contract revenue and costs, actual results can and do differ from our estimates made over time. In the years ended December 31, 2016 , 2015 and 2014 , 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) 2016 2015 2014 Increases in estimates for percentage-of-completion contracts $ 42,368 $ 36,653 $ 50,565 Decreases in estimates for percentage-of-completion contracts (149,169 ) (36,235 ) (24,234 ) Net changes in estimates for percentage-of-completion contracts $ (106,801 ) $ 418 $ 26,331 During 2016, we recorded a total of $141.1 million in losses from changes in the estimated revenues and costs to complete renewable energy contracts in Europe, of which $98.1 million were recorded in the fourth quarter of 2016. These 2016 losses include $35.8 million of anticipated liquidated damages that reduced revenue. As we disclosed in prior reports, we incurred $30.9 million in charges (net of $15.0 million of a probable insurance recovery) due to changes in the estimated cost to complete a contract during the second and third quarters of 2016 related to one European renewable energy project. Additional changes in the fourth quarter of 2016 resulted in $19.4 million of additional charges on this project, and this project adversely impacted other European renewable energy projects due to the limited pool of internal and external resources available for these projects, such as engineering, procurement and construction resources, which in turn caused us to revise downward our estimates with respect to our other European renewable energy projects, including three other projects that became loss contracts. As of December 31, 2016, this project is approximately 88% complete. We continue to expect construction activities to be completed and the unit to be operational in early 2017, with remaining commissioning and turnover activities linked to the customer's operation of the facility through mid-2017. Of the $50.3 million of 2016 charges related to this project, $6.4 million is included in "other accrued liabilities" in our consolidated balance sheet at December 31, 2016. At December 31, 2016, we have also recorded estimated liquidated damages of $3.4 million for this project. The second project became a loss contract in the fourth quarter of 2016, resulting from a charge of $28.1 million in 2016 ( $23.0 million in the fourth quarter). As of December 31, 2016, this second project was approximately 67% complete. We expect this second project to be completed in late-2017. Of the $28.1 million of charges in 2016 related to this second project, $5.1 million is included in "accrued other liabilities" in our consolidated balance sheet at December 31, 2016. At December 31, 2016, we have also recorded estimated liquidated damages of $8.0 million for this second project. The third project became a loss contract in the fourth quarter of 2016, resulting from $30.1 million of the 2016 charges ( $25.2 million in the fourth quarter). As of December 31, 2016, this third project was approximately 82% complete. We expect this third project to be completed in mid-2017. Of the $30.1 million of charges in 2016 related to this third project, $3.9 million is included in "accrued other liabilities" in our consolidated balance sheet at December 31, 2016. At December 31, 2016, we have also recorded estimated liquidated damages of $6.9 million for this third project. The fourth project became a loss contract in the fourth quarter of 2016, resulting from $16.4 million of the 2016 charges ( $16.2 million in the fourth quarter). As of December 31, 2016, this fourth project was approximately 61% complete. We expect this fourth project to be completed in 2018. Of the $16.4 million of charges in 2016 related to this fourth project, $1.6 million is included in "accrued other liabilities" in our consolidated balance sheet at December 31, 2016. At December 31, 2016, we have also recorded estimated liquidated damages of $8.4 million for this fourth project. We recorded an aggregate of $14.2 million of additional charges in the fourth quarter of 2016 for changes in estimated costs to complete other renewable energy projects. While the charges did not result in any of these other projects becoming loss projects, we expect these changes in estimates to negatively affect our 2017 results of operations by $13.7 million . Accrued liquidated damages associated with these projects total $9.0 million at December 31, 2016. During 2016, we determined it was probable that we would receive an insurance recovery of approximately $15.0 million for a portion of the losses on the first loss contract described above, which represents the full amount available under the insurance policy. Accordingly, we recognized the insurance recovery as a reduction in costs and recorded the insurance receivable in "accounts receivable - other" in the consolidated balance sheet at December 31, 2016 . 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) 2016 2015 Included in contracts in progress: Costs incurred less costs of revenue recognized $ 96,210 $ 9,966 Revenues recognized less billings to customers 69,800 118,208 Contracts in progress $ 166,010 $ 128,174 Included in advance billings on contracts: Billings to customers less revenues recognized $ 199,480 $ 221,244 Costs of revenue recognized less cost incurred 11,162 8,146 Advance billings on contracts $ 210,642 $ 229,390 The following amounts represent retainage on contracts: December 31, (in thousands) 2016 2015 Retainage expected to be collected within one year $ 18,843 $ 24,906 Retainage expected to be collected after one year 4,583 5,329 Total retainage $ 23,426 $ 30,235 We have included retainage expected to be collected in 2017 in "accounts receivable – trade, net." Retainage expected to be collected after one year are included in "other assets." Of the long-term retainage at December 31, 2016 , we anticipate collecting $3.2 million in 2018 and $0.9 million in 2019. We had no accrued claims receivable balance in our consolidated balance sheets, at December 31, 2016 , and a $2.3 million accrued claims receivable balance at December 31, 2015 . |
Equity Method Investments (Note
Equity Method Investments (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments [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. We sold all of our interest in our Australian joint venture, Halley & Mellowes Pty. Ltd. ("HMA"), on December 22, 2016 for $18.0 million , resulting in a gain of $8.3 million . 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 , 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 . Our investment in equity method investees was not significantly different from our underlying equity in net assets of those investees based on stated ownership percentages at December 31, 2016 . All of our investments in unconsolidated entities are included in our Power segment. Our investment in equity method investees includes a $40.6 million investment in a start-up venture in India, Thermax Babcock & Wilcox Energy Solutions Private Limited ("TBWES"), that completed construction of its manufacturing facility intended primarily for new build coal boiler projects in India in 2014. While TBWES has not yet recorded a profit, we have determined that an other-than-temporary-impairment is not present based on the carrying value of its long-lived assets and expected future cash flows. Continuing future losses or changes in the strategy of TBWES or other joint ventures could affect future assessments of other-than-temporary-impairment. The undistributed earnings of our equity method investees were $59.6 million and $63.4 million at December 31, 2016 and 2015 , respectively. Summarized below is consolidated balance sheet and statement of operations information for investments accounted for under the equity method: December 31, (in thousands) 2016 2015 Current assets $ 335,577 $ 446,283 Noncurrent assets 126,958 168,411 Total assets 462,535 614,694 Current liabilities 231,150 314,390 Noncurrent liabilities 40,537 140,349 Owners' equity 190,848 159,955 Total liabilities and equity $ 462,535 $ 614,694 Year Ended December 31, (in thousands) 2016 2015 2014 Revenues $ 488,101 $ 475,459 $ 645,481 Gross profit 76,986 69,021 85,378 Income before provision for income taxes 19,529 3,072 22,909 Provision for income taxes 3,715 4,500 6,159 Net income $ 15,814 $ (1,428 ) $ 16,750 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 allowable 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) 2016 2015 2014 Equity income based on stated ownership percentages $ 7,898 $ (542 ) $ 8,563 Gain on sale of our interest in HMA 8,324 — — All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments 218 300 118 Equity in income of investees $ 16,440 $ (242 ) $ 8,681 Our transactions with unconsolidated affiliates were as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Sales to $ 17,220 $ 18,014 $ 70,566 Purchases from 32,490 45,397 5,623 Dividends received 12,160 20,830 17,407 Capital contributions (1) 26,256 7,424 4,900 (1) Capital contributions includes a $26.3 million contribution in April 2016 to increase our interest in TBWES, our joint venture in India, for the purpose of extinguishing the joint venture's high-interest third-party debt and avoiding the associated future interest cost (our joint venture partner contributed the same amount to TBWES). Our accounts receivable-other includes receivables from these unconsolidated affiliates of $8.5 million and $7.9 million at December 31, 2016 and 2015 , respectively. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes activity for our stock options the year ending December 31, 2016 : (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 2,360 $ 17.99 Granted 599 19.03 Exercised (141 ) 16.33 Cancelled/expired/forfeited (166 ) 18.73 Outstanding at end of period 2,652 $ 18.27 6.52 $ 521.3 Exercisable at end of period 1,269 $ 17.77 4.58 $ 521.3 NOTE 9 – 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 Plan was amended and restated in 2016 to increase the number of shares available for issuance by 2.5 million shares. The number of shares available for award grants under the Plan, as amended and restated, is 8.3 million , of which 3.3 million million remain available as of December 31, 2016. 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, 2016 2015 2014 Risk-free interest rate 1.14 % 1.38 % 0.97 % Expected volatility 25 % 28 % 30 % Expected life of the option in years 3.95 3.96 3.76 Expected dividend yield — % — % 1.22 % 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 2016 and 2015 because we did not expect to pay dividends on the dates the 2016 and 2015 stock options were awarded. The following table summarizes activity for our stock options the year ending December 31, 2016 : (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 2,360 $ 17.99 Granted 599 19.03 Exercised (141 ) 16.33 Cancelled/expired/forfeited (166 ) 18.73 Outstanding at end of period 2,652 $ 18.27 6.52 $ 521.3 Exercisable at end of period 1,269 $ 17.77 4.58 $ 521.3 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, 2016. 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, 2016 , 2015 and 2014 , was $4.03 , $4.80 and $7.03 , respectively. During the years ended December 31, 2016 , 2015 and 2014 , the total intrinsic value of stock options exercised was $0.7 million , $2.3 million and $0.9 million , respectively. The actual tax benefits realized related to the stock options exercised during the year ended December 31, 2016 and 2015 were $0.3 million and not significant, respectively. Company restricted stock units Nonvested restricted stock units activity for the year ending December 31, 2016 were as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period 999 $ 19.30 Granted 230 18.76 Vested (407 ) 19.26 Cancelled/forfeited (109 ) 19.29 Nonvested at end of period 712 $ 19.14 The actual tax benefits realized related to the restricted stock units vested during the year ended December 31, 2016 and 2015 were $2.7 million and $1.1 million , respectively. Company performance-based restricted stock units During 2016, we granted certain B&W employees performance-based restricted stock units ("PSUs") under the Plan, which include both performance and service conditions. PSU awards vest upon satisfying certain service requirements and B&W financial metrics established by the board of directors. The fair value of each PSU granted was estimated at the date of grant using a Monte Carlo methodology based on market prices and the following weighted-average assumptions: Year Ended December 31, 2016 Risk-free interest rate 0.96 % Expected volatility 25 % Expected life of the option in years 2.83 Expected dividend yield — % PSU activity for the year ending December 31, 2016 was as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period — $ — Granted 493 19.31 Vested — — Cancelled/forfeited (42 ) 19.56 Nonvested at end of period 451 $ 19.29 |
Provision for Income Taxes (Not
Provision for Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
PROVISION FOR INCOME TAXES [Abstract] | |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Provision for Income Taxes Narr
Provision for Income Taxes Narrative (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Summary of Income Tax Contingencies [Table Text Block] | 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. It is unlikely that our previously unrecognized tax benefits will change significantly in the next twelve months. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | – CASH AND CASH EQUIVALENTS The components of cash and cash equivalents are as follows: (in thousands) December 31, 2016 December 31, 2015 Held by foreign entities $ 94,415 $ 221,151 Held by United States entities 1,472 144,041 Cash and cash equivalents $ 95,887 $ 365,192 Reinsurance reserve requirements $ 21,189 $ 33,404 Restricted foreign accounts 6,581 3,740 Restricted cash and cash equivalents $ 27,770 $ 37,144 |
Inventories (Notes)
Inventories (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Text Block] | – INVENTORIES The components of inventories are as follows: (in thousands) December 31, 2016 December 31, 2015 Raw materials and supplies $ 61,630 $ 68,684 Work in progress 6,803 7,025 Finished goods 17,374 14,410 Total inventories $ 85,807 $ 90,119 |
INTANGIBLE ASSETS (Notes)
INTANGIBLE ASSETS (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS Our intangible assets are as follows: (in thousands) December 31, 2016 December 31, 2015 Definite-lived intangible assets Customer relationships $ 47,892 $ 35,729 Unpatented technology 18,461 4,033 Patented technology 2,499 2,532 Tradename 18,774 9,909 Backlog 28,170 10,400 All other 7,430 7,504 Gross value of definite-lived intangible assets 123,225 70,107 Customer relationships amortization (17,519 ) (12,509 ) Unpatented technology amortization (2,864 ) (1,471 ) Patented technology amortization (1,532 ) (1,406 ) Tradename amortization (3,826 ) (2,883 ) Acquired backlog amortization (21,776 ) (10,400 ) All other amortization (5,974 ) (4,899 ) Accumulated amortization (53,491 ) (33,568 ) Net definite-lived intangible assets $ 69,734 $ 36,539 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: Twelve months ended (in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $ 37,844 $ 50,646 Business acquisitions and adjustments 55,438 500 Amortization expense (19,923 ) (11,445 ) Currency translation adjustments and other (2,320 ) (1,857 ) Balance at end of the period $ 71,039 $ 37,844 The acquisition of SPIG increased our intangible asset amortization expense during the year ended December 31, 2016 by $13.3 million . Amortization of intangible assets is not allocated to segment results. Estimated future intangible asset amortization expense, excluding any potential intangible asset amortization expense resulting from the January 11, 2017 acquisition of Universal, is as follows (in thousands): Year ending Amortization expense December 31, 2017 $ 14,834 December 31, 2018 $ 10,208 December 31, 2019 $ 8,545 December 31, 2020 $ 7,293 December 31, 2021 $ 6,971 Thereafter $ 21,883 |
Credit Facility
Credit Facility | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Credit Facility | The components of our revolving debt are comprised of separate revolving credit facilities in the following locations: (in thousands) December 31, 2016 December 31, 2015 United States $ 9,800 $ — Foreign 14,241 2,005 Total $ 24,041 $ 2,005 United States credit facility In connection with the spin-off, we entered into a credit agreement on May 11, 2015 (the "Credit Agreement"). 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, issuance of letters of credit and other general corporate purposes. The $9.8 million balance at December 31, 2016 is included in "other noncurrent liabilities" in our consolidated combined balance sheet. On February 24, 2017 , we entered into Amendment No. 2 to Credit Agreement (the “Amendment” and the Credit Agreement, as amended to date, the “Amended Credit Agreement”) to, among other things: (i) provide financial covenant relief by amending the definition of EBITDA (as defined in the Amended Credit Agreement) to exclude up to $98.1 million of losses for certain Renewable segment contracts for the year ended December 31, 2016; (ii) increase the maximum permitted leverage ratio to 3.50 to 1.00 during the covenant relief period; (iii) limit our ability to borrow under the Amended Credit Agreement during the covenant relief period to $300.0 million in the aggregate; (iv) increase the pricing for borrowings, letters of credit and commitment fees under the Amended Credit Agreement during the covenant relief period; (v) limit our ability to incur debt and liens during the covenant relief period; (vi) limit our ability to make acquisitions and investments in third parties during the covenant relief period; (vii) prohibit us from making dividends and stock redemptions during the covenant relief period; (viii) prohibit us from exercising the accordion described below during the covenant relief period; (ix) limit our financial letters of credit outstanding under the Amended Credit Agreement to $30.0 million during the covenant relief period; and (x) require us to reduce commitments under the Amended Credit Agreement with the proceeds of certain debt issuances and asset sales. The covenant relief period will end, at our election, when the conditions set forth in the Amendment are satisfied, but in no event earlier than the date on which we provide the compliance certificate for the fiscal quarter ending December 31, 2017. Other than during the covenant relief period described above, the Amended 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. During the covenant relief period described above, our ability to exercise the accordion feature will be prohibited. The Amended 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 Amended 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 Amended 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. During the covenant relief period described above, such prepayments may require us to reduce the commitments under the Amended Credit Agreement by a corresponding amount of such prepayments. Following the covenant relief period described above, such prepayments will not require us to reduce the commitments under the Amended Credit Agreement. Loans outstanding under the Amended Credit Agreement bear interest at our option at either (i) the LIBOR rate plus (a) during the covenant relief period described above, a margin of 2.50% per year, and (b) following the covenant relief period described above, a margin ranging from 1.375% to 1.875% per year, or (ii) the base rate (the highest of the Federal Funds rate plus 0.5%, the one month LIBOR rate plus 1.0%, or the administrative agent's prime rate) plus (a) during the covenant relief period described above, a margin of 1.50% per year, and (b) following the covenant relief period described above, a margin ranging from 0.375% to 0.875% per year. A commitment fee is charged on the unused portions of the revolving credit facility, and that fee (A) during the covenant relief period described above, is 0.50% per year, and (B) following the covenant relief period described above, varies between 0.25% and 0.35% per year. Additionally, (I) during the covenant relief period, a letter of credit fee of 2.50% per year is charged with respect to the amount of each financial letter of credit outstanding, and a letter of credit fee of 1.50% per year is charged with respect to the amount of each performance letter of credit outstanding, and (II) following the covenant relief period described above, 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 outstanding, 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 outstanding. Following the covenant relief period described above, the applicable margin for loans, the commitment fee and the letter of credit fees set forth above vary quarterly based on our leverage ratio. The Amended 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 (i) is 3.50 to 1.00 during the covenant relief period described above and (ii) is 3.00 to 1.00 following the covenant relief period described above (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 both during and following the covenant relief period described above. In addition, the Amended Credit Agreement contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. At December 31, 2016 , usage under the Amended Credit Agreement consisted of $9.8 million in borrowings at an effective interest rate of 4.125% , $7.5 million of financial letters of credit and $89.1 million of performance letters of credit. After giving effect to the maximum leverage ratio, we had $228.8 million available borrowing capacity based on trailing-twelve month EBITDA, as defined in our Amended Credit Agreement, at December 31, 2016 . The Amended 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 Amended 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 Amended Credit Agreement, we will be unable to borrow funds or have letters of credit issued. Foreign revolving credit facilities Outside of the United States, we have unsecured revolving credit facilities in Turkey, China and India that are used to provide working capital to our operations in each country. The revolving credit facilities in Turkey and India are a result of the July 1, 2016 acquisition of SPIG (see Note 4 ). These three foreign revolving credit facilities allow us to borrow up to $15.7 million in aggregate and each have a one year term. At December 31, 2016 , we had $14.2 million in borrowings outstanding under these foreign revolving credit facilities at an effective weighted-average interest rate of 4.92% . If an event of default relating to bankruptcy or insolvency events was to occur, all obligations will become due and payable. Letters of credit, bank guarantees and surety bonds Certain subsidiaries have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees associated with contracting activity. The aggregate value of all such letters of credit and bank guarantees not secured by the United States credit facility as of December 31, 2016 and December 31, 2015 was $255.2 million and $193.1 million , respectively. The increase is attributable to the July 1, 2016 acquisition of SPIG. 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, 2016 , bonds issued and outstanding under these arrangements in support of contracts totaled approximately $ 527.9 million . Universal acquisition In order to purchase Universal on January 11, 2017, we borrowed $55 million under the United States credit facility in 2017. The acquisition did not materially change the level of bank guarantees, letters of credit or surety bonds that were outstanding at December 31, 2016 . |
Goodwill (Notes)
Goodwill (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Line Items] | |
Goodwill Disclosure [Text Block] | GOODWILL The following summarizes the changes in the carrying amount of goodwill: (in thousands) Power Renewable Industrial Total Balance at December 31, 2014 $ 48,755 $ 51,722 $ 108,800 $ 209,277 Purchase price adjustment - MEGTEC acquisition — — (4,492 ) (4,492 ) Currency translation adjustments (1,618 ) (2,098 ) — (3,716 ) Balance at December 31, 2015 $ 47,137 $ 49,624 $ 104,308 $ 201,069 Increase resulting from SPIG acquisition — — 69,862 69,862 Purchase price adjustment - SPIG acquisition — — 2,539 2,539 Currency translation adjustments (917 ) (1,189 ) (3,969 ) (6,075 ) Balance at December 31, 2016 $ 46,220 $ 48,435 $ 172,740 $ 267,395 Our annual goodwill impairment assessment is performed on October 1 of each year (the "annual assessment" date). Our 2016 annual assessment for each of our five reporting units indicated that we had no impairment of goodwill. The fair value of our reporting units were all in excess of carrying value on the assessment date by at least 20%. The fair value of each reporting unit determined under Step 1 of the goodwill impairment test was based on a 50% weighting of a discounted cash flow analysis under the income approach using forward-looking projections of estimated future operating results, a 30% weighting of a guideline company methodology under the market approach using revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, and a 20% weighting using the similar transactions methodology under the market approach using revenue and EBITDA multiples. The goodwill impairment test associated with our MEGTEC reporting unit, which is included in our Industrial segment, is the most sensitive to a change in future valuation assumptions. The reporting unit has $104.3 million of goodwill, which is unchanged since June 30, 2015. As of the annual assessment date in 2016 and 2015, the fair value of our MEGTEC reporting unit exceeded its carrying value by 22% and 48% , respectively. The change in headroom was attributable to a decrease in the estimated fair value of the reporting unit from $182.8 million to $163.8 million as of our annual assessment date in 2015 and 2016, respectively, and a $11.5 million increase in the carrying value of the reporting unit. Under both the income and market valuation approaches, the independently obtained fair value estimates decreased due to lower projected net sales and EBITDA. Similar to many industrial businesses, the 2016 reduction in MEGTEC reporting unit revenues has been the result of a decline in new equipment demand, primarily in the Americas market. However, management believes the industrials market is starting to show signs of stabilizing. The Renewable segment's fourth quarter results caused us to also evaluate whether its goodwill was impaired at December 31, 2016. The Renewable segment has $48.4 million of goodwill at December 31, 2016. We estimated the fair value of the reporting unit at that date under Step 1 of the goodwill impairment test. Based on the results of the Step 1 impairment test at December 31, 2016, we determined it was not more likely than not that the segment's goodwill is impaired because the fair value of the Renewable reporting unit significantly exceeded its carrying value. We also assessed whether there was any indication of goodwill impairment in our other four reporting units at December 31, 2016, and have concluded based on our qualitative assessment that it is not more likely than not that the fair value is less than the carrying value. |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | - PROPERTY, PLANT & EQUIPMENT Property, plant and equipment is stated at cost. The composition of our property, plant and equipment less accumulated depreciation is set forth below: December 31, (in thousands) 2016 2015 Land $ 6,348 $ 7,460 Buildings 114,322 104,963 Machinery and equipment 189,489 181,064 Property under construction 22,378 36,534 332,537 330,021 Less accumulated depreciation 198,900 184,304 Net property, plant and equipment $ 133,637 $ 145,717 |
Warranty (Notes)
Warranty (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Product Warranty Liability [Table Text Block] | hanges in the carrying amount of our accrued warranty expense are as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Balance at beginning of period $ 39,847 $ 37,735 $ 38,968 Additions 22,472 19,310 13,726 Expirations and other changes (10,855 ) (982 ) (4,052 ) Increases attributable to business combinations 918 — 4,693 Payments (11,089 ) (15,215 ) (14,787 ) Translation and other (826 ) (1,001 ) (813 ) Balance at end of period $ 40,467 $ 39,847 $ 37,735 During the fourth quarter of 2016, we reduced accrued warranty expense by $2.3 million as a result of the outcome of the ARPA trial discussed further in Note 20 . Other decreases in accrued warranty expense were primarily related to improvements in warranty claims experience and lapses in contract warranty periods in our Power segment. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Income Taxes Paid (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | During the twelve -months ended December 31, 2016 , 2015 and 2014, we paid the following for income taxes: (in thousands) 2016 2015 2014 Income taxes (net of refunds) $ 10,781 $ 15,008 $ 7,951 During the twelve -months ended December 31, 2016 , 2015 and 2014, we recognized the following non-cash activity in our consolidated and combined financial statements: (in thousands) 2016 2015 2014 Accrued capital expenditures in accounts payable $ 2,751 $ 568 $ 1,680 |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Postretirement Benefits | PENSION PLANS AND OTHER 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, beginning on 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, 2016, 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) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits (in thousands) 2016 2015 2014 2016 2015 2014 Service cost $ 1,680 $ 13,677 $ 13,558 $ 23 $ 24 $ 18 Interest cost 40,875 49,501 51,181 897 1,143 1,087 Expected return on plan assets (61,939 ) (68,709 ) (64,023 ) — — — Amortization of prior service cost 250 307 274 — — — Recognized net actuarial loss (gain) 31,932 41,574 99,090 (7,822 ) (1,364 ) 2,245 Net periodic benefit cost (benefit) $ 12,798 $ 36,350 $ 100,080 $ (6,902 ) $ (197 ) $ 3,350 During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 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 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 the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The 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 $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. 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 $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Multi-employer plans One of our subsidiaries in the Power segment contributes to various multi-employer plans. The plans generally provide defined benefits to substantially all unionized workers in this subsidiary. The following table summarizes our contributions to multi-employer 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 2016 2015 2014 2016 2015 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 17.8 $ 20.3 $ 16.0 No Described All Other 3.2 4.6 4.6 $ 21.0 $ 24.9 $ 20.6 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. Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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 pla |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | CONTINGENCIES Litigation On February 28, 2014, the Arkansas River Power Authority ("ARPA") filed suit against Babcock & Wilcox Power Generation Group, Inc. (now known as The Babcock & Wilcox Company and referred to herein as “BW PGG”) 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 BW PGG's delivery of a circulating fluidized bed boiler and related equipment used in the Lamar Repowering Project pursuant to a 2005 contract. A jury trial took place in mid-November 2016. Some of ARPA’s claims were dismissed by the judge during the trial. The jury’s verdict on the remaining claims was issued on November 21, 2016. The jury found in favor of B&W with respect to ARPA’s claims of fraudulent concealment and negligent misrepresentation and on one of ARPA’s claims of breach of contract. The jury found in favor of ARPA on the three remaining claims for breach of contract and awarded damages totaling $4.2 million, which exceeded the previous $2.3 million accrual we established in 2012 by $1.9 million. ARPA has requested that pre-judgment interest of $4.1 million plus post-judgment interest at a rate of 0.77% compounded annually be added to the judgment, together with certain litigation costs. This request is pending before the court, and we believe that a substantial amount of interest and costs claimed by ARPA are without factual or legal support. Accordingly, we believe an award of some interest is possible, but that it is not probable that the amount claimed by ARPA will be awarded; therefore, we have not accrued any portion of interest in the consolidated financial statements. B&W has requested the court to modify the verdict and we will continue to evaluate options for appeal upon final ruling on the parties’ motions to modify the award of damages. We have posted a bond pending resolution of post-trial matters. Other 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, premises liability and other claims. Based on 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following table summarizes our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic Fair Value Measurements and Disclosures ). (in thousands) Available-for-sale securities December 31, 2016 Level 1 Level 2 Level 3 Commercial paper $ 6,734 $ — $ 6,734 $ — Certificates of deposit 2,251 — 2,251 — Mutual funds 1,152 — 1,152 — Corporate bonds 750 750 — — U.S. Government and agency securities 7,104 7,104 — — Total fair value of available-for-sale securities $ 17,991 $ 7,854 $ 10,137 $ — The following is a summary of our available-for-sale securities at fair value at December 31, 2015. (in thousands) Available-for-sale securities December 31, 2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total fair value of available-for-sale securities $ 5,089 $ — $ 5,089 $ — Derivatives December 31, 2016 December 31, 2015 Forward contracts to purchase/sell foreign currencies $2,940 $2,186 Available-for-sale securities We estimate the fair value of available-for-sale securities based on quoted market prices. Our investments in available-for-sale securities are presented in "other assets" on our consolidated balance sheets. Derivatives 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. Other financial instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments: • Cash and cash equivalents 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. • Revolving debt . We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our debt instruments approximated their carrying value at December 31, 2016 and December 31, 2015 . Non-recurring fair value measurements The purchase price allocation associated with the July 1, 2016 SPIG acquisition required significant fair value measurements using unobservable inputs ("Level 3" inputs as defined in the fair value hierarchy established by FASB Topic Fair Value Measurements and Disclosures ). The fair value of the acquired intangible assets was determined using the income approach (see Note 4 ). The following table summarizes our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic Fair Value Measurements and Disclosures ). (in thousands) Available-for-sale securities December 31, 2016 Level 1 Level 2 Level 3 Commercial paper $ 6,734 $ — $ 6,734 $ — Certificates of deposit 2,251 — 2,251 — Mutual funds 1,152 — 1,152 — Corporate bonds 750 750 — — U.S. Government and agency securities 7,104 7,104 — — Total fair value of available-for-sale securities $ 17,991 $ 7,854 $ 10,137 $ — | The following is a summary of our available-for-sale securities at fair value at December 31, 2015. (in thousands) Available-for-sale securities December 31, 2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total fair value of available-for-sale securities $ 5,089 $ — $ 5,089 $ — |
Share Repurchases (Notes)
Share Repurchases (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Share Repurchases [Abstract] | |
Schedule of Repurchase Agreements [Table Text Block] | 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 the year ended December 31, 2015 , and 1.6 million shares of our common stock for $75.7 million during the year ended December 31, 2016 , which completed this program. On August 4, 2016, 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 over the succeeding twenty-four months. As of December 31, 2016 , we have not made any share repurchases under the August 4, 2016 share repurchase authorization. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Prior to June 30, 2015, we were a party to transactions with our former Parent and its subsidiaries in the normal course of operations. After the spin-off, we no longer consider the former Parent to be a related party. Transactions with our former Parent prior to the spin-off included the following: Year Ended December 31, (in thousands) 2015 2014 Sales to our former Parent $ 911 $ 5,896 Corporate administrative expenses 35,343 73,329 Guarantees Our former Parent had outstanding performance guarantees for various projects executed by us in the normal course of business. As of April 21, 2016, these guarantees had all been terminated. Net transfers from former Parent Net transfers from former Parent represent the change in our former Parent's historical investment in us. It primarily includes the net effect of cost allocations from transactions with our former Parent, sales to our former Parent, and the net transfers of cash and assets to our former Parent 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. These transactions included the following: Year Ended December 31, (in thousands) 2015 2014 Sales to former Parent $ 911 $ 5,896 Corporate administrative expenses 35,343 73,329 Income tax allocation 11,872 3,378 Acquisition of business, net of cash acquired — 127,704 Cash pooling and general financing activities (91,015 ) 14,261 Cash contribution received at spin-off 125,300 — Net transfer from former Parent per statement of cash flows $ 80,589 $ 213,137 Non-cash items: Net transfer of assets and liabilities $ 44,706 $ (62 ) Distribution of Nuclear Energy segment $ (47,839 ) $ — Net transfer from former Parent per statement of shareholders' equity $ 77,456 $ 213,075 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS We distributed assets and liabilities totaling $47.8 million associated with the NE segment to BWC in conjunction with the spin-off. We received corporate allocations from our former Parent as described in Note 1 , which totaled $2.7 million , and $5.3 million for the years ended December 31, 2015 and 2014 , respectively. Though these allocations relate to our discontinued NE segment, they are included as part of continuing operations because allocations are not eligible for inclusion in discontinued operations. The following table presents selected financial information regarding the results of operations of our former NE segment through June 30, 2015, the date it was discontinued: Six Months Ended June 30, Twelve Months Ended December 31, (in thousands) 2015 2014 Revenues $ 53,064 $ 103,690 Income (loss) before income tax expense 3,358 (19,072 ) Income tax expense (benefit) 555 (4,800 ) Income (loss) from discontinued operations, net of tax $ 2,803 $ (14,272 ) |
Operating Leases (Notes)
Operating Leases (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |
Operating Leases of Lessee Disclosure [Table Text Block] | 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, 2016 are as follows (in thousands): Fiscal Year Ending December 31, 2016 Amount 2017 $ 5,224 2018 $ 3,833 2019 $ 2,433 2020 $ 1,239 2021 $ 425 Thereafter $ 35 Total rental expense for the years ended December 31, 2016 , 2015 and 2014 , was $8.3 million , $13.5 million and $6.9 million , respectively. These expense amounts include contingent rentals and are net of sublease income, neither of which is material. |
Quarterly Financial Data (Notes
Quarterly Financial Data (Notes) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | QUARTERLY FINANCIAL DATA The following tables set forth selected unaudited quarterly financial information for the years ended December 31, 2016 and 2015 : (in thousands, except per share amounts) Year Ended December 31, 2016 March 31, 2016 June 30, 2016 Sept. 30, 2016 Dec. 31, 2016 Revenues $ 404,116 $ 383,208 $ 410,955 $ 379,984 Gross profit $ 80,156 $ 26,052 $ 73,757 $ (848 ) Operating income (loss) (1) $ 17,266 $ (72,585 ) $ 11,133 $ (58,587 ) Equity in income (loss) of investees $ 2,676 $ (616 ) $ 2,827 $ 11,553 Net income (loss) attributable to shareholders $ 10,507 $ (63,490 ) $ 8,894 $ (71,560 ) Earnings per common share Basic Continuing $ 0.20 $ (1.25 ) $ 0.18 $ (1.47 ) Discontinued $ — $ — $ — $ — Diluted Continuing $ 0.20 $ (1.25 ) $ 0.18 $ (1.47 ) Discontinued $ — $ — $ — $ — (1) Includes equity in income of investees. (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 shareholders $ 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. We recognize actuarial gains and losses for our pension and postretirement benefit plans into earnings at least annually (on December 31) as a component of net periodic benefit cost. During 2016, we had interim mark to market adjustments related to plan settlements and a plan curtailment. The effect of the interim mark to market adjustments on pre-tax income in the quarters ended June 30, 2016 and September 30, 2016, was a pre-tax charge of $30.0 million and $0.5 million , respectively. In the quarter ended December 31, 2016, we recognized a pre-tax gain of $6.4 million related to net mark to market adjustments for all of our benefit plans. Mark to market adjustments for the quarter and year ended December 31, 2015 resulted in a $40.2 million pre-tax loss. In the second and fourth quarters of 2016, we recognized significant losses related to changes in the estimate of the forecasted cost to complete renewable energy contracts, which are more fully described in Note 6 to the consolidated and combined financial statements. |
Significant Accounting Polici34
Significant Accounting Policies Research and Development (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Research and Development [Abstract] | |
Research, Development, and Computer Software, Policy [Policy Text Block] | 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 $10.4 million , $16.5 million and $18.5 million in the years ended December 31, 2016 , 2015 and 2014 , 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 activities that were determined not to be commercially viable. The impairment is included in losses on asset disposals and impairments in the consolidated and combined statements of operations. |
Significant Accounting Polici35
Significant Accounting Policies Pension Plans and Postretirement Benefits (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans and Postretirement Benefits [Abstract] | |
Pension and Other Postretirement Plans, Pensions, Policy [Policy Text Block] | 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. In 2016, we changed our approach to developing the discount rate from a single equivalent discount rate to an alternative spot rate method. This new method was adopted because it more accurately applies each year’s spot rates to the projected cash flows. This change in estimate was applied prospectively in developing our annual discount rate, which resulted in a lower interest and service cost during 2016. 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. 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 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 18 for a detailed description of our plan assets. |
Significant Accounting Polici36
Significant Accounting Policies Inventories (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Inventory, Policy [Policy Text Block] | 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 Power segment, for which we use the last-in, first-out ("LIFO") method. We determined the cost of approximately 18% and 20% of our total inventories using the LIFO method at December 31, 2016 and 2015 , respectively, and our total LIFO reserve at December 31, 2016 and 2015 was approximately $7.0 million and $7.7 million , respectively. The components of inventories can be found in Note 13 . |
Significant Accounting Polici37
Significant Accounting Policies Property, Plant and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Policy [Policy Text Block] | 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 $19.7 million , $23.5 million and $22.3 million for the years ended December 31, 2016 , 2015 and 2014 , 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. |
Significant Accounting Polici38
Significant Accounting Policies Self Insurance (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Self Insurance [Abstract] | |
Self Insurance Reserve [Policy Text Block] | 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 balance sheets are reserves for self-insurance totaling $24.1 million at each of the years ended December 31, 2016 and 2015 |
Significant Accounting Polici39
Significant Accounting Policies Foreign Currency Translation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Foreign Currency Translation [Abstract] | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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 $(5.4) million , $(0.1) million and $1.8 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 of our common stock: Year Ended December 31, (in thousands, except per share amounts) 2016 2015 2014 Income (loss) from continuing operations $ (115,649 ) $ 16,338 $ (12,256 ) Income (loss) from discontinued operations, net of tax — 2,803 (14,272 ) Net income (loss) attributable to shareholders $ (115,649 ) $ 19,141 $ (26,528 ) Weighted average shares used to calculate basic earnings per share 50,129 53,487 54,239 Dilutive effect of stock options, restricted stock and performance shares (1) — 222 — Weighted average shares used to calculate diluted earnings per share 50,129 53,709 54,239 Basic earnings (loss) per share: Continuing operations $ (2.31 ) $ 0.31 $ (0.23 ) Discontinued operations — 0.05 (0.26 ) Basic earnings (loss) per share $ (2.31 ) $ 0.36 $ (0.49 ) Diluted earnings (loss) per share: Continuing operations $ (2.31 ) $ 0.30 $ (0.23 ) Discontinued operations — 0.06 (0.26 ) Diluted earnings (loss) per share $ (2.31 ) $ 0.36 $ (0.49 ) |
SPIG ACQUISITION (Tables)
SPIG ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The allocation of the purchase price, based on the estimated fair value of assets acquired and liabilities assumed, is detailed below. (in thousands) Estimated Acquisition Date Fair Value Cash $ 25,994 Accounts receivable 58,843 Contracts in progress 61,155 Inventories 2,554 Other assets 7,341 Property, plant and equipment 6,104 Goodwill 72,401 Identifiable intangible assets 55,164 Deferred income tax assets 5,550 Revolving debt (27,530 ) Current liabilities (56,323 ) Advance billings on contracts (15,226 ) Other noncurrent liabilities (379 ) Deferred income tax liabilities (17,120 ) Noncontrolling interest in joint venture (7,754 ) Net acquisition cost $ 170,774 |
Business Acquisition, Pro Forma Information [Table Text Block] | SPIG ACQUISITION On July 1, 2016, we acquired all of the outstanding stock of SPIG S.p.A. ("SPIG") for €155 million (approximately $172.1 million ) in an all-cash transaction, which was subject to post-closing adjustments. During September 2016, €2.6 million (approximately $2.9 million ) of the transaction price was returned to B&W based on the difference between the actual working capital and pre-close estimates. Transaction costs included in the purchase price associated with closing the acquisition of SPIG on July 1, 2016 were approximately $0.3 million . Based in Arona, Italy, SPIG is a global provider of custom-engineered comprehensive dry and wet cooling solutions and aftermarket services to the power generation industry including natural gas-fired and renewable energy power plants, as well as downstream oil and gas, petrochemical and other industrial end markets. The acquisition of SPIG is consistent with B&W's goal to grow and diversify its technology-based offerings with new products and services in the industrial markets that are complementary to our core businesses. In the year ended December 31, 2016 , SPIG contributed $96.3 million of revenue and $7.8 million of gross profit to the Industrial segment. We accounted for the SPIG acquisition using the acquisition method. All of the assets acquired and liabilities assumed were recognized at their estimated fair value as of the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired was recorded as goodwill. Several valuation methods were used to determine the fair value of the assets acquired and liabilities assumed. For intangible assets, we used the income method, which required us to forecast the expected future net cash flows for each intangible asset. These cash flows were then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the projected cash flows. Some of the more significant estimates and assumptions inherent in the income method include the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows and the assessment of the asset's economic life and the competitive trends impacting the asset, including consideration of any technical, legal, regulatory or economic barriers to entry. Determining the useful life of an intangible asset also required judgment as different types of intangible assets will have different useful lives, or indefinite useful lives. The allocation of the purchase price, based on the estimated fair value of assets acquired and liabilities assumed, is detailed below. (in thousands) Estimated Acquisition Date Fair Value Cash $ 25,994 Accounts receivable 58,843 Contracts in progress 61,155 Inventories 2,554 Other assets 7,341 Property, plant and equipment 6,104 Goodwill 72,401 Identifiable intangible assets 55,164 Deferred income tax assets 5,550 Revolving debt (27,530 ) Current liabilities (56,323 ) Advance billings on contracts (15,226 ) Other noncurrent liabilities (379 ) Deferred income tax liabilities (17,120 ) Noncontrolling interest in joint venture (7,754 ) Net acquisition cost $ 170,774 We finalized the purchase price allocation as of December 31, 2016, which resulted in a $2.5 million increase in goodwill. The goodwill arising from the purchase price allocation of the SPIG acquisition is believed to be a result of the synergies created from combining its operations with B&W's, and the growth it can provide from its wide scope of engineered cooling and service offerings and customer base. None of this goodwill is expected to be deductible for tax purposes. The intangible assets included above consist of the following (dollar amount in thousands): (in thousands) Estimated Fair Value Weighted Average Estimated Useful Life (in Years) Customer relationships $ 12,217 9 Backlog 17,769 2 Trade names / trademarks 8,885 20 Technology 14,438 10 Non-compete agreements 1,666 3 Internally-developed software 189 3 Total amortizable intangible assets $ 55,164 The acquisition of SPIG added $13.3 million of intangible asset amortization expense during the year ended December 31, 2016. Amortization of intangible assets is not allocated to segment results. Approximately $3.5 million of acquisition and integration related costs of SPIG was recorded as selling, general and administrative expenses in the consolidated and combined statement of operations for the year ended December 31, 2016, respectively. The following unaudited pro forma financial information below represents our results of operations for years ended December 31, 2016 and 2015 had the SPIG acquisition occurred on January 1, 2015. The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2015. This information should not be taken as representative of our future consolidated results of operations. Year Ended December 31, (in thousands) 2016 2015 Revenues $ 1,663,126 $ 1,941,987 Net income (loss) attributable to B&W (111,500 ) 12,047 Basic earnings per common share (2.22 ) 0.23 Diluted earnings per common share (2.22 ) 0.22 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The goodwill arising from the purchase price allocation of the SPIG acquisition is believed to be a result of the synergies created from combining its operations with B&W's, and the growth it can provide from its wide scope of engineered cooling and service offerings and customer base. None of this goodwill is expected to be deductible for tax purposes. The intangible assets included above consist of the following (dollar amount in thousands): (in thousands) Estimated Fair Value Weighted Average Estimated Useful Life (in Years) Customer relationships $ 12,217 9 Backlog 17,769 2 Trade names / trademarks 8,885 20 Technology 14,438 10 Non-compete agreements 1,666 3 Internally-developed software 189 3 Total amortizable intangible assets $ 55,164 |
Restructuring Activities and 42
Restructuring Activities and Spin Transaction Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Spin-off transaction costs In the years ended December 31, 2016 and 2015 , we incurred $3.8 million and $3.3 million , respectively, of costs directly related to the spin-off from our former Parent. The costs were primarily attributable to employee retention awards. 2016 Restructuring activities On June 28, 2016, we announced actions to restructure our power business in advance of significantly lower demand now projected for power generation from coal in the United States. The new organizational structure includes a redesigned work flow to provide an efficient, flexible organization that can adapt to the changing market conditions and volumes. The costs associated with the restructuring activities were $31.4 million in the year ended December 31, 2016 , and were primarily related to employee severance of $14.1 million and non-cash impairment of the long-lived assets at B&W's one coal-fired power plant located in Ebensburg, Pennsylvania of $14.9 million . Other costs associated with the restructuring of $2.4 million are related to organizational realignment of personnel and processes and an increase in valuation allowances associated with our deferred tax assets (see Note 10 ). The 2016 restructuring activities are expected to allow our business to continue to serve the power market and maintain gross margins, despite the expected decline in volume as a result of the lower projected demand in the US coal-fired power generation market. These restructuring actions are primarily in the Power segment |
Changes in Restructuring Liabilities | is as follows: Year Ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ 740 $ 5,086 Restructuring expense (1) 21,939 5,014 Payments (20,426 ) (9,360 ) Balance at December 31 $ 2,253 $ 740 (1) Excludes charges for long-lived asset impairment of $15.0 million and $6.7 million for the years ended December 31, 2016 and 2015 , respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | ur operations are assessed based on three reportable segments, which changed beginning in the third quarter of 2016 with the purchase of SPIG as described in Note 4 . Segment results for prior periods have been restated for comparative purposes. • Power segment : Focused on the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. • Renewable segment : Focused on the supply of steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries. • Industrial segment : Focused on custom-engineered cooling, environmental, and other industrial equipment along with related aftermarket services. An analysis of our operations by segment is as follows: Year Ended December 31, (in thousands) 2016 2015 2014 REVENUES Power segment Retrofits & continuous emissions monitoring systems $ 392,854 $ 427,378 $ 323,623 New build utility and environmental 292,302 403,981 343,956 Aftermarket parts and field engineering services 292,535 304,923 349,398 Industrial steam generation 107,267 219,379 208,229 Eliminations (109,480 ) (120,664 ) (68,627 ) 975,478 1,234,997 1,156,579 Renewable segment Renewable new build and services 284,684 277,326 171,004 Operations and maintenance 65,814 63,437 57,977 Eliminations (1,326 ) (2,160 ) (4,949 ) 349,172 338,603 224,032 Industrial segment Industrial aftermarket parts and services 81,690 61,350 35,290 Environmental solutions 74,726 90,343 48,938 Cooling systems 73,797 — — Engineered products 23,400 32,002 21,190 253,613 183,695 105,418 $ 1,578,263 $ 1,757,295 $ 1,486,029 |
Segment Reporting Depreciation
Segment Reporting Depreciation and Amortization by Segment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Depreciation, Depletion, and Amortization [Policy Text Block] | Year Ended December 31, (in thousands) 2016 2015 2014 DEPRECIATION AND AMORTIZATION Power segment $ 11,231 $ 18,532 $ 21,561 Renewable segment 2,711 2,567 2,809 Industrial segment 19,073 10,345 8,066 Segment depreciation and amortization 33,015 31,444 32,436 Corporate 6,568 3,488 — Total depreciation and amortization $ 39,583 $ 34,932 $ 32,436 SEGMENT REPORTING Our operations are assessed based on three reportable segments, which changed beginning in the third quarter of 2016 with the purchase of SPIG as described in Note 4 . Segment results for prior periods have been restated for comparative purposes. • Power segment : Focused on the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. • Renewable segment : Focused on the supply of steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries. • Industrial segment : Focused on custom-engineered cooling, environmental, and other industrial equipment along with related aftermarket services. An analysis of our operations by segment is as follows: Year Ended December 31, (in thousands) 2016 2015 2014 REVENUES Power segment Retrofits & continuous emissions monitoring systems $ 392,854 $ 427,378 $ 323,623 New build utility and environmental 292,302 403,981 343,956 Aftermarket parts and field engineering services 292,535 304,923 349,398 Industrial steam generation 107,267 219,379 208,229 Eliminations (109,480 ) (120,664 ) (68,627 ) 975,478 1,234,997 1,156,579 Renewable segment Renewable new build and services 284,684 277,326 171,004 Operations and maintenance 65,814 63,437 57,977 Eliminations (1,326 ) (2,160 ) (4,949 ) 349,172 338,603 224,032 Industrial segment Industrial aftermarket parts and services 81,690 61,350 35,290 Environmental solutions 74,726 90,343 48,938 Cooling systems 73,797 — — Engineered products 23,400 32,002 21,190 253,613 183,695 105,418 $ 1,578,263 $ 1,757,295 $ 1,486,029 The segment information presented in the table above reflects the product line revenues that are reviewed by each segment's manager. These gross product line revenues exclude any eliminations of revenues generated from sales to other segments or to other product lines within the segment. The primary component of the Power segment elimination is revenue associated with construction serv ices. Year Ended December 31, (in thousands) 2016 2015 2014 GROSS PROFIT: Power segment $ 233,550 $ 247,632 $ 237,491 Renewable segment (68,109 ) 57,682 53,449 Industrial segment 50,726 54,826 30,400 Intangible asset amortization expense included in cost of operations (15,842 ) (7,676 ) (7,501 ) Mark to market loss included in cost of operations (21,208 ) (44,307 ) (94,806 ) 179,117 308,157 219,033 Selling, general and administrative expenses (240,166 ) (240,296 ) (215,379 ) Restructuring activities and spin-off transaction costs (40,807 ) (14,946 ) (20,183 ) Equity in income (loss) of investees 16,440 (242 ) 8,681 Research and development costs (10,406 ) (16,543 ) (18,483 ) Intangible asset amortization expense included in SG&A (4,081 ) (3,769 ) (2,659 ) Mark to market (loss) gain included in SG&A (2,902 ) 4,097 (7,233 ) Gains (losses) on asset disposals and impairments, net 32 (14,597 ) (1,752 ) Operating income (loss) $ (102,773 ) $ 21,861 $ (37,975 ) Year Ended December 31, (in thousands) 2016 2015 2014 DEPRECIATION AND AMORTIZATION Power segment $ 11,231 $ 18,532 $ 21,561 Renewable segment 2,711 2,567 2,809 Industrial segment 19,073 10,345 8,066 Segment depreciation and amortization 33,015 31,444 32,436 Corporate 6,568 3,488 — Total depreciation and amortization $ 39,583 $ 34,932 $ 32,436 We do not separately identify or report our Company's asset by segment as the majority of our assets are shared by the Power and Renewable 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, (in thousands) 2016 2015 2014 REVENUES (1) United States $ 851,955 $ 1,034,653 $ 934,397 United Kingdom 201,221 126,285 61,972 Canada 74,629 134,276 136,382 Denmark 54,722 116,064 65,436 Vietnam 55,265 46,803 3,829 South Korea 44,660 4,358 14,149 Egypt 35,878 — — China 33,898 41,921 53,005 Germany 29,559 19,233 22,792 Sweden 24,809 18,302 29,786 Dominican Republic 21,366 82,916 27,399 Turkey 11,113 — — Thailand 8,051 4,606 8,113 Italy 7,862 4,671 3,540 India 6,856 13,108 5,070 Indonesia 6,723 1,730 5,324 Colombia 6,398 4,904 8,037 Finland 5,756 6,113 4,926 Australia 5,729 2,817 2,540 Aggregate of all other countries, each with less than $5 million in revenues 91,813 94,535 99,332 $ 1,578,263 $ 1,757,295 $ 1,486,029 (1) We allocate geographic revenues based on the location of the customer's operations. Year Ended December 31, (in thousands) 2016 2015 2014 NET PROPERTY, PLANT AND EQUIPMENT United States $ 75,368 $ 88,840 $ 82,209 Mexico 22,594 24,643 12,106 China 13,460 13,956 12,356 United Kingdom 6,337 8,070 8,638 Denmark 6,749 6,265 6,963 Aggregate of all other countries, each with less than $5 million of net property, plant and equipment 9,129 3,943 12,965 $ 133,637 $ 145,717 $ 135,237 |
Contracts and Revenue Recogni45
Contracts and Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Contracts in Progress and Advance Billings [Abstract] | |
schedule of contracts in progress and adv billings [Table Text Block] | 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) 2016 2015 Included in contracts in progress: Costs incurred less costs of revenue recognized $ 96,210 $ 9,966 Revenues recognized less billings to customers 69,800 118,208 Contracts in progress $ 166,010 $ 128,174 Included in advance billings on contracts: Billings to customers less revenues recognized $ 199,480 $ 221,244 Costs of revenue recognized less cost incurred 11,162 8,146 Advance billings on contracts $ 210,642 $ 229,390 |
Schedule of Retainages on Contract [Table Text Block] | The following amounts represent retainage on contracts: December 31, (in thousands) 2016 2015 Retainage expected to be collected within one year $ 18,843 $ 24,906 Retainage expected to be collected after one year 4,583 5,329 Total retainage $ 23,426 $ 30,235 |
Equity Method Investments Equit
Equity Method Investments Equity Method Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments [Abstract] | |
Condensed Balance Sheet [Table Text Block] | December 31, (in thousands) 2016 2015 Current assets $ 335,577 $ 446,283 Noncurrent assets 126,958 168,411 Total assets 462,535 614,694 Current liabilities 231,150 314,390 Noncurrent liabilities 40,537 140,349 Owners' equity 190,848 159,955 Total liabilities and equity $ 462,535 $ 614,694 |
Condensed Income Statement [Table Text Block] | Year Ended December 31, (in thousands) 2016 2015 2014 Revenues $ 488,101 $ 475,459 $ 645,481 Gross profit 76,986 69,021 85,378 Income before provision for income taxes 19,529 3,072 22,909 Provision for income taxes 3,715 4,500 6,159 Net income $ 15,814 $ (1,428 ) $ 16,750 The following table presents selected financial information regarding the results of operations of our former NE segment through June 30, 2015, the date it was discontinued: Six Months Ended June 30, Twelve Months Ended December 31, (in thousands) 2015 2014 Revenues $ 53,064 $ 103,690 Income (loss) before income tax expense 3,358 (19,072 ) Income tax expense (benefit) 555 (4,800 ) Income (loss) from discontinued operations, net of tax $ 2,803 $ (14,272 ) |
Equity Method Investment Reconciliation of Net Income to Equity in Income [Table Text Block] | 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) 2016 2015 2014 Equity income based on stated ownership percentages $ 7,898 $ (542 ) $ 8,563 Gain on sale of our interest in HMA 8,324 — — All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments 218 300 118 Equity in income of investees $ 16,440 $ (242 ) $ 8,681 |
Equity Method Investments Trans
Equity Method Investments Transactions with unconsolidated affiliates (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in and Advances to Affiliates, Schedule of Investments [Text Block] | Our transactions with unconsolidated affiliates were as follows: Year Ended December 31, (in thousands) 2016 2015 2014 Sales to $ 17,220 $ 18,014 $ 70,566 Purchases from 32,490 45,397 5,623 Dividends received 12,160 20,830 17,407 Capital contributions (1) 26,256 7,424 4,900 (1) Capital contributions includes a $26.3 million contribution in April 2016 to increase our interest in TBWES, our joint venture in India, for the purpose of extinguishing the joint venture's high-interest third-party debt and avoiding the associated future interest cost (our joint venture partner contributed the same amount to TBWES). Our accounts receivable-other includes receivables from these unconsolidated affiliates of $8.5 million and $7.9 million at December 31, 2016 and 2015 , respectively. |
Stock-Based Compensation Compan
Stock-Based Compensation Company Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 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, 2016 2015 2014 Risk-free interest rate 1.14 % 1.38 % 0.97 % Expected volatility 25 % 28 % 30 % Expected life of the option in years 3.95 3.96 3.76 Expected dividend yield — % — % 1.22 % |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes activity for our stock options the year ending December 31, 2016 : (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 2,360 $ 17.99 Granted 599 19.03 Exercised (141 ) 16.33 Cancelled/expired/forfeited (166 ) 18.73 Outstanding at end of period 2,652 $ 18.27 6.52 $ 521.3 Exercisable at end of period 1,269 $ 17.77 4.58 $ 521.3 NOTE 9 – 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 Plan was amended and restated in 2016 to increase the number of shares available for issuance by 2.5 million shares. The number of shares available for award grants under the Plan, as amended and restated, is 8.3 million , of which 3.3 million million remain available as of December 31, 2016. 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, 2016 2015 2014 Risk-free interest rate 1.14 % 1.38 % 0.97 % Expected volatility 25 % 28 % 30 % Expected life of the option in years 3.95 3.96 3.76 Expected dividend yield — % — % 1.22 % 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 2016 and 2015 because we did not expect to pay dividends on the dates the 2016 and 2015 stock options were awarded. The following table summarizes activity for our stock options the year ending December 31, 2016 : (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 2,360 $ 17.99 Granted 599 19.03 Exercised (141 ) 16.33 Cancelled/expired/forfeited (166 ) 18.73 Outstanding at end of period 2,652 $ 18.27 6.52 $ 521.3 Exercisable at end of period 1,269 $ 17.77 4.58 $ 521.3 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, 2016. 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, 2016 , 2015 and 2014 , was $4.03 , $4.80 and $7.03 , respectively. During the years ended December 31, 2016 , 2015 and 2014 , the total intrinsic value of stock options exercised was $0.7 million , $2.3 million and $0.9 million , respectively. The actual tax benefits realized related to the stock options exercised during the year ended December 31, 2016 and 2015 were $0.3 million and not significant, respectively. Company restricted stock units Nonvested restricted stock units activity for the year ending December 31, 2016 were as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period 999 $ 19.30 Granted 230 18.76 Vested (407 ) 19.26 Cancelled/forfeited (109 ) 19.29 Nonvested at end of period 712 $ 19.14 The actual tax benefits realized related to the restricted stock units vested during the year ended December 31, 2016 and 2015 were $2.7 million and $1.1 million , respectively. Company performance-based restricted stock units During 2016, we granted certain B&W employees performance-based restricted stock units ("PSUs") under the Plan, which include both performance and service conditions. PSU awards vest upon satisfying certain service requirements and B&W financial metrics established by the board of directors. The fair value of each PSU granted was estimated at the date of grant using a Monte Carlo methodology based on market prices and the following weighted-average assumptions: Year Ended December 31, 2016 Risk-free interest rate 0.96 % Expected volatility 25 % Expected life of the option in years 2.83 Expected dividend yield — % PSU activity for the year ending December 31, 2016 was as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period — $ — Granted 493 19.31 Vested — — Cancelled/forfeited (42 ) 19.56 Nonvested at end of period 451 $ 19.29 |
Stock-Based Compensation Comp49
Stock-Based Compensation Company Restricted Stock Units (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Nonvested restricted stock units activity for the year ending December 31, 2016 were as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period 999 $ 19.30 Granted 230 18.76 Vested (407 ) 19.26 Cancelled/forfeited (109 ) 19.29 Nonvested at end of period 712 $ 19.14 |
Stock-Based Compensation Comp50
Stock-Based Compensation Company performance-based restricted stock units (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | PSU activity for the year ending December 31, 2016 was as follows: (share data in thousands) Number of Shares Weighted-Average Grant Date Fair Value Nonvested at beginning of period — $ — Granted 493 19.31 Vested — — Cancelled/forfeited (42 ) 19.56 Nonvested at end of period 451 $ 19.29 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of each PSU granted was estimated at the date of grant using a Monte Carlo methodology based on market prices and the following weighted-average assumptions: Year Ended December 31, 2016 Risk-free interest rate 0.96 % Expected volatility 25 % Expected life of the option in years 2.83 Expected dividend yield — % |
Provision for Income Taxes Reco
Provision for Income Taxes Reconciliation of unrecognized tax benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |
Summary of Income Tax Contingencies [Table Text Block] | 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. It is unlikely that our previously unrecognized tax benefits will change significantly in the next twelve months. |
Provision for Income Taxes Na52
Provision for Income Taxes Narratives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Summary of Income Tax Contingencies [Table Text Block] | 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. It is unlikely that our previously unrecognized tax benefits will change significantly in the next twelve months. |
Provision for Income Taxes Comp
Provision for Income Taxes Components of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Tax Credit Carryforward [Line Items] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 |
Provision for Income Taxes Valu
Provision for Income Taxes Valuation allowance for deferred tax assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation Allowance [Line Items] | |
Summary of Valuation Allowance [Table Text Block] | At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) |
Provision for Income Taxes Inco
Provision for Income Taxes Income before Provision for Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income before Provision for Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Provision for Income Taxes Co56
Provision for Income Taxes Components of Provision for Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Provision for Income Tax [Abstract] | |
Income Tax Disclosure [Table Text Block] | The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Provision for Income Taxes Re57
Provision for Income Taxes Reconciliation of U.S. Statutory Federal Tax Rate (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % PROVISION FOR INCOME TAXES We are subject to federal income tax in the United States and income tax of multiple state and international jurisdictions. 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) 2016 2015 2014 Balance at beginning of period $ 1,141 $ 3,321 $ 1,190 Increases based on tax positions taken in the current year 178 88 213 Increases based on tax positions taken in the prior years 230 248 2,268 Decreases based on tax positions taken in the prior years — (1,161 ) — Decreases due to settlements with tax authorities (665 ) (1,355 ) (350 ) Decreases due to lapse of applicable statute of limitation — — — Balance at end of period $ 884 $ 1,141 $ 3,321 Of the $0.9 million balance of unrecognized tax benefits at December 31, 2016, $0.8 million 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, 2016, we recorded a decrease in our accruals of less than $0.2 million , resulting in recorded liabilities of approximately $0.1 million for the payment of tax-related interest and penalties. At December 31, 2015 and 2014, our recorded liabilities for the payment of tax-related interest and penalties totaled approximately $0.3 million for both years. 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, 2016 and 2015 were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Pension liability $ 105,426 $ 107,748 Accrued warranty expense 11,628 12,589 Accrued vacation pay 4,792 4,482 Accrued liabilities for self-insurance (including postretirement health care benefits) 6,596 14,280 Accrued liabilities for executive and employee incentive compensation 8,334 14,255 Investments in joint ventures and affiliated companies 10,742 14,100 Long-term contracts 10,318 6,963 Accrued Legal Fees 2,110 — Inventory Reserve 2,445 2,621 Property, plant and equipment 1,587 — Net operating loss carryforward 33,187 13,544 State tax net operating loss carryforward 15,372 14,409 Foreign tax credit carryforward 3,870 2,378 Other 8,589 6,585 Total deferred tax assets 224,996 213,954 Valuation allowance for deferred tax assets (40,484 ) (10,077 ) Net, total deferred tax assets 184,512 203,877 Deferred tax liabilities: Long-term contracts 3,601 9,084 Intangibles 21,892 13,158 Property, plant and equipment — 3,379 Undistributed foreign earnings 500 1,000 Goodwill 1,125 1,167 Other 2,885 1,317 Total deferred tax liabilities 30,003 29,105 Net deferred tax assets $ 154,509 $ 174,772 At December 31, 2016, we had a valuation allowance of $40.5 million for deferred tax assets, which we expect may not be realized through carrybacks, future reversals of existing taxable temporary differences and estimates 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 estimates 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, 2016 $ (10,077 ) $ (29,307 ) $ (1,100 ) $ (40,484 ) Year Ended December 31, 2015 (9,216 ) (861 ) — (10,077 ) Year Ended December 31, 2014 (6,980 ) (2,236 ) — (9,216 ) 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, Germany, Italy, Mexico, Sweden and the United Kingdom with effective tax rates ranging between 20% and approximately 30%. Income before the provision for income taxes was as follows: Year Ended December 31, (in thousands) 2016 2015 2014 United States $ 1,280 $ (20,748 ) $ (64,084 ) Other than the United States (109,419 ) 40,953 27,466 Income before provision for income taxes $ (108,139 ) $ 20,205 $ (36,618 ) The provision for income taxes consisted of: Year Ended December 31, (in thousands) 2016 2015 2014 Current: United States – federal $ 284 $ 24,084 $ 1,834 United States – state and local (415 ) 3,458 1,544 Other than in the United States 4,504 8,250 13,917 Total current 4,373 35,792 17,295 Deferred: United States – Federal 11,512 (35,888 ) (32,910 ) United States – state and local 6,365 (111 ) (572 ) Other than in the United States (15,307 ) 3,878 (8,541 ) Total deferred (benefit) provision 2,570 (32,121 ) (42,023 ) Provision for income taxes $ 6,943 $ 3,671 $ (24,728 ) The following is a reconciliation of the U.S. statutory federal tax rate (35%) to the consolidated effective tax rate: Year Ended December 31, 2016 2015 2014 U.S. federal statutory (benefit) rate 35.0 % 35.0 % 35.0 % State and local income taxes (3.5 ) 13.8 4.1 Foreign rate differential (12.8 ) (13.1 ) 16.6 Tax credits 3.0 (14.7 ) 7.5 Dividends and deemed dividends from affiliates (0.2 ) 1.7 5.7 Valuation allowances (28.1 ) 4.3 (6.1 ) Uncertain tax positions 0.3 (6.6 ) (6.7 ) Non-deductible expenses (1.8 ) 2.4 (2.4 ) Manufacturing deduction — (2.5 ) 11.6 Other 1.7 (2.1 ) 2.2 Effective tax rate (6.4 )% 18.2 % 67.5 % We have foreign net operating loss benefits after tax of $23.8 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 2027 . The remaining net operating loss benefits have unlimited lives. We are carrying a valuation allowance of $17.6 million against the deferred tax asset related to the foreign loss carryforwards. In 2016, we generated a U.S. federal net operating loss resulting in an after tax benefit of $9.4 million . We expect to fully utilize this net operating loss either through carryback to our former Parent company's tax return or through carryover to future periods. The U.S. federal operating loss will not expire until 2037 . We have foreign tax credit carryovers of $3.9 million . Of this $3.9 million , $1.2 million will expire between 2022 and 2024 . The remaining amount of the foreign tax credit carryover was generated in the current year and will expire in 2027 . We have state net operating loss benefits after tax of $15.4 million available to offset future taxable income in various states. Our state net operating loss carryforwards begin to expire in the year 2017 . We are carrying a valuation allowance of $12.4 million against the deferred tax asset related to the state loss carryforwards. We would be subject to withholding taxes as well as U.S. income tax if we were to distribute earnings from certain foreign subsidiaries. For the year ended December 31, 2016, the undistributed earnings of these subsidiaries were $278.7 million . Unrecognized deferred income tax liabilities, including withholding taxes, of approximately $33.6 million would be payable upon distribution of these earnings after taking into account any related foreign tax credits. We have provided tax of $0.5 million on earnings we intend to remit. All other earnings are considered permanently reinvested. |
Comprehensive Income Accumulate
Comprehensive Income Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (in thousands) Currency translation gain (loss) Net unrealized gain (loss) on investments (net of tax) Net unrealized gain (loss) on derivative instruments Net unrecognized gain (loss) related to benefit plans (net of tax) Total Balance at December 31, 2013 $ 38,446 $ (20 ) $ 627 $ (3,677 ) $ 35,376 Other comprehensive income (loss) before reclassifications (26,895 ) (2 ) (2,360 ) 3,956 (25,301 ) Amounts reclassified from AOCI to net income (loss) — — 1,610 (1,311 ) 299 Net current-period other comprehensive income (26,895 ) (2 ) (750 ) 2,645 (25,002 ) Balance at December 31, 2014 11,551 (22 ) (123 ) (1,032 ) 10,374 Other comprehensive income (loss) before reclassifications (19,459 ) (49 ) 339 519 (18,650 ) Amounts reclassified from AOCI to net income (loss) — 27 1,133 (195 ) 965 Net transfers from parent (11,585 ) — 437 (394 ) (11,542 ) Net current-period other comprehensive income (loss) (31,044 ) (22 ) 1,909 (70 ) (29,227 ) Balance at December 31, 2015 (19,493 ) (44 ) 1,786 (1,102 ) (18,853 ) Other comprehensive income (loss) before reclassifications (24,494 ) 7 2,046 7,692 (14,749 ) Amounts reclassified from AOCI to net income (loss) — — (3,030 ) 150 (2,880 ) Net current-period other comprehensive income (loss) (24,494 ) 7 (984 ) 7,842 (17,629 ) Balance at December 31, 2016 $ (43,987 ) $ (37 ) $ 802 $ 6,740 $ (36,482 ) The amounts reclassified out of AOCI by component and the affected consolidated and combined statements of operations line items are as follows (in thousands): AOCI Component Line Items in the Consolidated and Combined Statements of Operations Affected by Reclassifications from AOCI Year Ended December 31, 2016 2015 2014 Derivative financial instruments Revenues $ 4,624 $ 546 $ (53 ) Cost of operations 195 155 13 Other-net (1,221 ) (24 ) (6 ) Total before tax 3,598 677 (46 ) Provision for income taxes 568 149 (11 ) Net income (loss) $ 3,030 $ 528 $ (35 ) Amortization of prior service cost on benefit obligations Cost of operations $ 254 $ (1,475 ) $ (457 ) Provision for income taxes 404 (1,168 ) (183 ) Net income (loss) $ (150 ) $ (307 ) $ (274 ) Realized gain on investments Other-net $ — $ (42 ) $ — Provision for income taxes — (15 ) — Net income (loss) $ — $ (27 ) $ — |
INTANGIBLE ASSETS Intangible As
INTANGIBLE ASSETS Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following summarizes the changes in the carrying amount of intangible assets: Twelve months ended (in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $ 37,844 $ 50,646 Business acquisitions and adjustments 55,438 500 Amortization expense (19,923 ) (11,445 ) Currency translation adjustments and other (2,320 ) (1,857 ) Balance at end of the period $ 71,039 $ 37,844 Our intangible assets are as follows: (in thousands) December 31, 2016 December 31, 2015 Definite-lived intangible assets Customer relationships $ 47,892 $ 35,729 Unpatented technology 18,461 4,033 Patented technology 2,499 2,532 Tradename 18,774 9,909 Backlog 28,170 10,400 All other 7,430 7,504 Gross value of definite-lived intangible assets 123,225 70,107 Customer relationships amortization (17,519 ) (12,509 ) Unpatented technology amortization (2,864 ) (1,471 ) Patented technology amortization (1,532 ) (1,406 ) Tradename amortization (3,826 ) (2,883 ) Acquired backlog amortization (21,776 ) (10,400 ) All other amortization (5,974 ) (4,899 ) Accumulated amortization (53,491 ) (33,568 ) Net definite-lived intangible assets $ 69,734 $ 36,539 Indefinite-lived intangible assets: Trademarks and trade names $ 1,305 $ 1,305 Total indefinite-lived intangible assets $ 1,305 $ 1,305 |
Supplemental Cash Flow Inform60
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | During the twelve -months ended December 31, 2016 , 2015 and 2014, we paid the following for income taxes: (in thousands) 2016 2015 2014 Income taxes (net of refunds) $ 10,781 $ 15,008 $ 7,951 During the twelve -months ended December 31, 2016 , 2015 and 2014, we recognized the following non-cash activity in our consolidated and combined financial statements: (in thousands) 2016 2015 2014 Accrued capital expenditures in accounts payable $ 2,751 $ 568 $ 1,680 |
Pension Plans and Postretirem61
Pension Plans and Postretirement Benefits Fair value of plan assets (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value of plan assets [Abstract] | ||
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | 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, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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. 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 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 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 the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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. | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Table Text Block] | Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 | 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 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 |
Pension Plans and Postretirem62
Pension Plans and Postretirement Benefits Cash flows (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The 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 $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. 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 $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. 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: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 |
Pension Plans and Postretirem63
Pension Plans and Postretirement Benefits Defined contribution plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The 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 $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. 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 $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. 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: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 |
Pension Plans and Postretirem64
Pension Plans and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Description of Settlements and Curtailments | PENSION PLANS AND OTHER 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, beginning on 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, 2016, 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) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits (in thousands) 2016 2015 2014 2016 2015 2014 Service cost $ 1,680 $ 13,677 $ 13,558 $ 23 $ 24 $ 18 Interest cost 40,875 49,501 51,181 897 1,143 1,087 Expected return on plan assets (61,939 ) (68,709 ) (64,023 ) — — — Amortization of prior service cost 250 307 274 — — — Recognized net actuarial loss (gain) 31,932 41,574 99,090 (7,822 ) (1,364 ) 2,245 Net periodic benefit cost (benefit) $ 12,798 $ 36,350 $ 100,080 $ (6,902 ) $ (197 ) $ 3,350 During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 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 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 the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The 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 $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. 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 $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Multi-employer plans One of our subsidiaries in the Power segment contributes to various multi-employer plans. The plans generally provide defined benefits to substantially all unionized workers in this subsidiary. The following table summarizes our contributions to multi-employer 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 2016 2015 2014 2016 2015 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 17.8 $ 20.3 $ 16.0 No Described All Other 3.2 4.6 4.6 $ 21.0 $ 24.9 $ 20.6 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. Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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 pla |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | Obligations and funded status Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (in thousands) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits (in thousands) 2016 2015 2014 2016 2015 2014 Service cost $ 1,680 $ 13,677 $ 13,558 $ 23 $ 24 $ 18 Interest cost 40,875 49,501 51,181 897 1,143 1,087 Expected return on plan assets (61,939 ) (68,709 ) (64,023 ) — — — Amortization of prior service cost 250 307 274 — — — Recognized net actuarial loss (gain) 31,932 41,574 99,090 (7,822 ) (1,364 ) 2,245 Net periodic benefit cost (benefit) $ 12,798 $ 36,350 $ 100,080 $ (6,902 ) $ (197 ) $ 3,350 |
Pension Plans and Postretirem65
Pension Plans and Postretirement Benefits Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Health Care Cost Trend Rates [Table Text Block] | 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 |
Schedule of Assumptions Used [Table Text Block] | Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). |
Pension Plans and Postretirem66
Pension Plans and Postretirement Benefits Investment goals (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension Plans and Postretirement Benefits | PENSION PLANS AND OTHER 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, beginning on 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, 2016, 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) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits (in thousands) 2016 2015 2014 2016 2015 2014 Service cost $ 1,680 $ 13,677 $ 13,558 $ 23 $ 24 $ 18 Interest cost 40,875 49,501 51,181 897 1,143 1,087 Expected return on plan assets (61,939 ) (68,709 ) (64,023 ) — — — Amortization of prior service cost 250 307 274 — — — Recognized net actuarial loss (gain) 31,932 41,574 99,090 (7,822 ) (1,364 ) 2,245 Net periodic benefit cost (benefit) $ 12,798 $ 36,350 $ 100,080 $ (6,902 ) $ (197 ) $ 3,350 During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 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 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 the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The 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 $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. 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 $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Multi-employer plans One of our subsidiaries in the Power segment contributes to various multi-employer plans. The plans generally provide defined benefits to substantially all unionized workers in this subsidiary. The following table summarizes our contributions to multi-employer 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 2016 2015 2014 2016 2015 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 17.8 $ 20.3 $ 16.0 No Described All Other 3.2 4.6 4.6 $ 21.0 $ 24.9 $ 20.6 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. Investment goals 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan 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 United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. 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 net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 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 use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % 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 2024 Investment goals 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 pla | |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | 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, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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. 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, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. Fair value of plan assets See Note 22 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, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 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 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 the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, 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. | |
Schedule of Allocation of Plan Assets [Table Text Block] | The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan is 55% fixed income and 45% equities. | |
Percentage of investment return on domestic plan assets | 9.00% | (1.90%) |
Derivative Financial Instrument
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE FINANCIAL INSTRUMENTS We have designated all of our foreign currency exchange ("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, 2016 and 2015 , we had deferred approximately $0.8 million and $1.8 million , respectively, of net gains on these derivative financial instruments in AOCI. At December 31, 2016 , our derivative financial instruments consisted solely of FX forward contracts. The notional value of our FX forward contracts totaled $177.4 million at December 31, 2016 with maturities extending to November 2018. 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 party to our credit facility. Our hedge counterparties have the benefit of the same collateral arrangements and covenants as described under our United States credit facility. The following tables summarize our derivative financial instruments: Asset and Liability Derivatives (in thousands) December 31, 2016 December 31, 2015 Derivatives designated as hedges: Foreign exchange contracts: Location of FX forward contracts designated as hedges: Accounts receivable-other $ 3,805 $ 1,545 Other assets 665 688 Accounts payable 1,012 17 Other liabilities 213 — Derivatives not designated as hedges: Foreign exchange contracts: Location of FX forward contracts not designated as hedges: Accounts receivable-other $ 105 $ 72 Accounts payable 403 101 Other liabilities 7 — The effects of derivatives on our financial statements are outlined below: Year Ended December 31, (in thousands) 2016 2015 Derivatives designated as hedges: Cash flow hedges Foreign exchange contracts Amount of gain (loss) recognized in other comprehensive income $ 2,208 $ 2,920 Effective portion of gain (loss) reclassified from AOCI into earnings by location: Revenues 4,624 546 Cost of operations 195 155 Other-net (1,221 ) (24 ) Portion of gain (loss) recognized in income that is excluded from effectiveness testing by location: Other-net 4,518 252 Derivatives not designated as hedges: Forward contracts Gain (loss) recognized in income by location: Other-net $ (872 ) $ 206 |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments: Asset and Liability Derivatives (in thousands) December 31, 2016 December 31, 2015 Derivatives designated as hedges: Foreign exchange contracts: Location of FX forward contracts designated as hedges: Accounts receivable-other $ 3,805 $ 1,545 Other assets 665 688 Accounts payable 1,012 17 Other liabilities 213 — Derivatives not designated as hedges: Foreign exchange contracts: Location of FX forward contracts not designated as hedges: Accounts receivable-other $ 105 $ 72 Accounts payable 403 101 Other liabilities 7 — |
Schedule of Effect of Derivative Instruments on Statements of Financial Performance | The effects of derivatives on our financial statements are outlined below: Year Ended December 31, (in thousands) 2016 2015 Derivatives designated as hedges: Cash flow hedges Foreign exchange contracts Amount of gain (loss) recognized in other comprehensive income $ 2,208 $ 2,920 Effective portion of gain (loss) reclassified from AOCI into earnings by location: Revenues 4,624 546 Cost of operations 195 155 Other-net (1,221 ) (24 ) Portion of gain (loss) recognized in income that is excluded from effectiveness testing by location: Other-net 4,518 252 Derivatives not designated as hedges: Forward contracts Gain (loss) recognized in income by location: Other-net $ (872 ) $ 206 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS The following table summarizes our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic Fair Value Measurements and Disclosures ). (in thousands) Available-for-sale securities December 31, 2016 Level 1 Level 2 Level 3 Commercial paper $ 6,734 $ — $ 6,734 $ — Certificates of deposit 2,251 — 2,251 — Mutual funds 1,152 — 1,152 — Corporate bonds 750 750 — — U.S. Government and agency securities 7,104 7,104 — — Total fair value of available-for-sale securities $ 17,991 $ 7,854 $ 10,137 $ — The following is a summary of our available-for-sale securities at fair value at December 31, 2015. (in thousands) Available-for-sale securities December 31, 2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total fair value of available-for-sale securities $ 5,089 $ — $ 5,089 $ — Derivatives December 31, 2016 December 31, 2015 Forward contracts to purchase/sell foreign currencies $2,940 $2,186 Available-for-sale securities We estimate the fair value of available-for-sale securities based on quoted market prices. Our investments in available-for-sale securities are presented in "other assets" on our consolidated balance sheets. Derivatives 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. Other financial instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments: • Cash and cash equivalents 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. • Revolving debt . We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our debt instruments approximated their carrying value at December 31, 2016 and December 31, 2015 . Non-recurring fair value measurements The purchase price allocation associated with the July 1, 2016 SPIG acquisition required significant fair value measurements using unobservable inputs ("Level 3" inputs as defined in the fair value hierarchy established by FASB Topic Fair Value Measurements and Disclosures ). The fair value of the acquired intangible assets was determined using the income approach (see Note 4 ). The following table summarizes our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic Fair Value Measurements and Disclosures ). (in thousands) Available-for-sale securities December 31, 2016 Level 1 Level 2 Level 3 Commercial paper $ 6,734 $ — $ 6,734 $ — Certificates of deposit 2,251 — 2,251 — Mutual funds 1,152 — 1,152 — Corporate bonds 750 750 — — U.S. Government and agency securities 7,104 7,104 — — Total fair value of available-for-sale securities $ 17,991 $ 7,854 $ 10,137 $ — | The following is a summary of our available-for-sale securities at fair value at December 31, 2015. (in thousands) Available-for-sale securities December 31, 2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total fair value of available-for-sale securities $ 5,089 $ — $ 5,089 $ — |
Summary of Available-for-Sale Securities Measured at Fair Value | The following table summarizes our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic Fair Value Measurements and Disclosures ). (in thousands) Available-for-sale securities December 31, 2016 Level 1 Level 2 Level 3 Commercial paper $ 6,734 $ — $ 6,734 $ — Certificates of deposit 2,251 — 2,251 — Mutual funds 1,152 — 1,152 — Corporate bonds 750 750 — — U.S. Government and agency securities 7,104 7,104 — — Total fair value of available-for-sale securities $ 17,991 $ 7,854 $ 10,137 $ — The following is a summary of our available-for-sale securities at fair value at December 31, 2015. (in thousands) Available-for-sale securities December 31, 2015 Level 1 Level 2 Level 3 Commercial paper $ 3,996 $ — $ 3,996 $ — Mutual funds 1,093 — 1,093 — Total fair value of available-for-sale securities $ 5,089 $ — $ 5,089 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule Of Related Party Transactions | e were a party to transactions with our former Parent and its subsidiaries in the normal course of operations. After the spin-off, we no longer consider the former Parent to be a related party. Transactions with our former Parent prior to the spin-off included the following: Year Ended December 31, (in thousands) 2015 2014 Sales to our former Parent $ 911 $ 5,896 Corporate administrative expenses 35,343 73,329 |
Schedule of Change in Our Former Parent's Historical Investment Due to Net Transfers (to) from Former Parent | Net transfers from former Parent represent the change in our former Parent's historical investment in us. It primarily includes the net effect of cost allocations from transactions with our former Parent, sales to our former Parent, and the net transfers of cash and assets to our former Parent 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. These transactions included the following: Year Ended December 31, (in thousands) 2015 2014 Sales to former Parent $ 911 $ 5,896 Corporate administrative expenses 35,343 73,329 Income tax allocation 11,872 3,378 Acquisition of business, net of cash acquired — 127,704 Cash pooling and general financing activities (91,015 ) 14,261 Cash contribution received at spin-off 125,300 — Net transfer from former Parent per statement of cash flows $ 80,589 $ 213,137 Non-cash items: Net transfer of assets and liabilities $ 44,706 $ (62 ) Distribution of Nuclear Energy segment $ (47,839 ) $ — Net transfer from former Parent per statement of shareholders' equity $ 77,456 $ 213,075 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Financial Information Regarding Results of Operations | Year Ended December 31, (in thousands) 2016 2015 2014 Revenues $ 488,101 $ 475,459 $ 645,481 Gross profit 76,986 69,021 85,378 Income before provision for income taxes 19,529 3,072 22,909 Provision for income taxes 3,715 4,500 6,159 Net income $ 15,814 $ (1,428 ) $ 16,750 The following table presents selected financial information regarding the results of operations of our former NE segment through June 30, 2015, the date it was discontinued: Six Months Ended June 30, Twelve Months Ended December 31, (in thousands) 2015 2014 Revenues $ 53,064 $ 103,690 Income (loss) before income tax expense 3,358 (19,072 ) Income tax expense (benefit) 555 (4,800 ) Income (loss) from discontinued operations, net of tax $ 2,803 $ (14,272 ) |
Quarterly Financial Data Quarte
Quarterly Financial Data Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information [Table Text Block] | The following tables set forth selected unaudited quarterly financial information for the years ended December 31, 2016 and 2015 : (in thousands, except per share amounts) Year Ended December 31, 2016 March 31, 2016 June 30, 2016 Sept. 30, 2016 Dec. 31, 2016 Revenues $ 404,116 $ 383,208 $ 410,955 $ 379,984 Gross profit $ 80,156 $ 26,052 $ 73,757 $ (848 ) Operating income (loss) (1) $ 17,266 $ (72,585 ) $ 11,133 $ (58,587 ) Equity in income (loss) of investees $ 2,676 $ (616 ) $ 2,827 $ 11,553 Net income (loss) attributable to shareholders $ 10,507 $ (63,490 ) $ 8,894 $ (71,560 ) Earnings per common share Basic Continuing $ 0.20 $ (1.25 ) $ 0.18 $ (1.47 ) Discontinued $ — $ — $ — $ — Diluted Continuing $ 0.20 $ (1.25 ) $ 0.18 $ (1.47 ) Discontinued $ — $ — $ — $ — (1) Includes equity in income of investees. (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 shareholders $ 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. |
Significant Accounting Polici72
Significant Accounting Policies Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Research and Development [Abstract] | |||
Research and development costs | $ 10,406 | $ 16,543 | $ 18,483 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $ 32 | $ (14,597) | $ (1,752) |
Significant Accounting Polici73
Significant Accounting Policies Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Percentage of LIFO Inventory | 18.00% | 20.00% |
Inventory, LIFO Reserve | $ 7 | $ 8 |
Significant Accounting Polici74
Significant Accounting Policies Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 20 | $ 24 | $ 22 |
Significant Accounting Polici75
Significant Accounting Policies Self Insurance (Details) $ in Millions | Dec. 31, 2015USD ($) |
Self Insurance [Abstract] | |
Self Insurance Reserve | $ 24 |
Significant Accounting Polici76
Significant Accounting Policies Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency Translation [Abstract] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (5) | $ 0 | $ 2 |
Significant Accounting Polici77
Significant Accounting Policies Trade accounts receivable and allowance for doubtful accounts (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for Doubtful Accounts Receivable | $ 9.4 | $ 6.3 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Jun. 30, 2015 | Dec. 31, 2016shares | Jun. 30, 2016shares | Dec. 31, 2015shares |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock, shares issued (shares) | 48,687,814 | 52,480,630 | ||
Spin-Off | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Common stock, shares issued (shares) | 53,719,878 | |||
Babcock and Wilcox Enterprises Inc | Common Stock | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Spin-off transaction, distribution ratio of common stock | 2 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Excluded shares from the WAS to calculated diluted EPS as company was in a net loss position | $ 500 | ||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,400 | 1,300 | |||||||||
Amounts attributable to shareholders: | |||||||||||
Income (loss) from continuing operations | $ (115,649) | $ 16,338 | $ (12,256) | ||||||||
Income (loss) from discontinued operations, net of tax | 0 | 2,803 | (14,272) | ||||||||
Net income (loss) attributable to shareholders | $ (71,560) | $ 8,894 | $ (63,490) | $ 10,507 | $ (5,204) | $ 6,169 | $ 5,487 | $ 12,689 | $ (115,649) | $ 19,141 | $ (26,528) |
Effect of dilutive securities: | |||||||||||
Weighted average shares used to calculate basic earnings per share | 50,129 | 53,487 | 54,239 | ||||||||
Dilutive effect of stock options, restricted stock and performance shares | 0 | 222 | 0 | ||||||||
Weighted average shares used to calculate diluted earnings per share | 50,129 | 53,709 | 54,239 | ||||||||
Basic earnings per common share: | |||||||||||
Continuing operations (usd per share) | $ (1.47) | $ 0.18 | $ (1.25) | $ 0.20 | $ (0.10) | $ 0.11 | $ 0.08 | $ 0.21 | $ (2.31) | $ 0.31 | $ (0.23) |
Discontinued operations (usd per share) | 0 | 0.05 | (0.26) | ||||||||
Basic earnings (loss) per common share (usd per share) | (2.31) | 0.36 | (0.49) | ||||||||
Diluted earnings per common share: | |||||||||||
Continuing operations (usd per share) | $ (1.47) | $ 0.18 | $ (1.25) | $ 0.20 | $ (0.10) | $ 0.11 | $ 0.08 | $ 0.21 | (2.31) | 0.30 | (0.23) |
Discontinued operations (usd per share) | 0 | 0.06 | (0.26) | ||||||||
Diluted earnings (loss) per common share (usd per share) | $ (2.31) | $ 0.36 | $ (0.49) |
SPIG ACQUISITION SPIG purchase
SPIG ACQUISITION SPIG purchase price allocation (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Revenues | $ 379,984 | $ 410,955 | $ 383,208 | $ 404,116 | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 1,578,263 | $ 1,757,295 | $ 1,486,029 | |
Cash | $ 25,994 | |||||||||||
Goodwill | $ 2,539 | 2,539 | ||||||||||
Accounts receivable | 58,843 | |||||||||||
Contracts in progress | 61,155 | |||||||||||
Inventories | 2,554 | |||||||||||
Other assets | 7,341 | |||||||||||
Property, plant and equipment | 6,104 | |||||||||||
Goodwill | 72,401 | |||||||||||
Identifiable intangible assets | 55,164 | 55,438 | $ 500 | |||||||||
Deferred income tax assets | 5,550 | |||||||||||
Revolving debt | (27,530) | |||||||||||
Current liabilities | (56,323) | |||||||||||
Advance billings on contracts | (15,226) | |||||||||||
Other noncurrent liabilities | (379) | |||||||||||
Deferred income tax liabilities | (17,120) | |||||||||||
Noncontrolling interest in joint ventures | (7,754) | |||||||||||
Net acquisition cost | $ 170,774 | |||||||||||
Operating Segments [Member] | SPIG [Member] | ||||||||||||
Revenues | $ 96,300 |
SPIG ACQUISITION SPIG Proforma
SPIG ACQUISITION SPIG Proforma Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization of Intangible Assets | $ 19,923 | $ 11,445 |
Revenues | 1,663,126 | 1,941,987 |
Net income (loss) attributable to B&W | $ (111,500) | $ 12,047 |
Basic earnings per common share | $ (2.22) | $ 0.23 |
Diluted earnings per common share | $ (2.22) | $ 0.22 |
SPIG [Domain] | ||
Amortization | $ 6,500 | $ 18,600 |
Amortization of Intangible Assets | 13,300 | |
Interest Expense | 500 | 700 |
Acquisition Costs, Period Cost | $ 3,500 | $ 200 |
SPIG ACQUISITION SPIG Acquisiti
SPIG ACQUISITION SPIG Acquisition - General (Details) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016EUR (€) | Jul. 01, 2016USD ($) | |
Acquisition Costs, Cumulative | $ 170,774 | ||||||||||||
Payments to acquire business, Euro | 155,000 | ||||||||||||
Payments to acquire business, US Dollars | 172,100 | ||||||||||||
Business combination transaction price returned to company based on difference between actual working capital and pre-close estimates | $ 2,900 | € 2.6 | |||||||||||
Business Acquisition, Transaction Costs | $ 300 | ||||||||||||
Revenues | $ 379,984 | 410,955 | $ 383,208 | $ 404,116 | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 1,578,263 | $ 1,757,295 | $ 1,486,029 | ||
Gross Profit | $ (848) | $ 73,757 | $ 26,052 | $ 80,156 | $ 64,954 | $ 77,922 | $ 81,884 | $ 83,397 | (179,117) | $ (308,157) | $ (219,033) | ||
Operating Segments [Member] | Global Power [Member] | |||||||||||||
Revenues | 96,300 | ||||||||||||
Gross Profit | $ (7,800) |
SPIG ACQUISITION SPIG Intangibl
SPIG ACQUISITION SPIG Intangibles Fair Value and Useful Life (Details) - USD ($) | Jul. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Amortization of Intangible Assets | $ 19,923,000 | $ 11,445,000 | |
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 55,164,000 | ||
Customer Relationships | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 12,217,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||
Backlog | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 17,769,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||
Trade names / trademarks | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 8,885,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Technology | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 14,438,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Noncompete Agreements | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 1,666,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||
Internally-developed software | |||
Indefinite-lived Intangible Assets (Excluding Goodwill), Fair Value Disclosure | $ 189,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years | ||
SPIG [Domain] | |||
Amortization of Intangible Assets | 13,300,000 | ||
Business Combination, Integration Related Costs | $ (3,522,459) |
Restructuring Activities and 84
Restructuring Activities and Spin Transaction Costs Narrative - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Other Noncash Expense | $ 14.6 | $ 6.7 | |
Selling, General and Administrative Expenses | Spin-Off | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee Benefits and Share-based Compensation | $ 3.8 | $ 3.3 |
Restructuring Activities and 85
Restructuring Activities and Spin Transaction Costs Changes in Restructuring Liabilities - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | $ 300 | $ 15,000 | ||
Restructuring Reserve | 2,253 | $ 740 | $ 5,086 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring expense | 21,939 | 5,014 | ||
Payments | (20,426) | (9,360) | ||
Non-cash charges | $ 14,600 | 6,700 | ||
Spin-Off | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ 3,800 | $ 3,300 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of business segments (segment) | 3 |
Restructuring Activities and 87
Restructuring Activities and Spin Transaction Costs 2016 Restructuring Activities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||||
Other Noncash Expense | $ 14,600 | $ 6,700 | |||
Restructuring Charges | $ 40,807 | $ 14,946 | $ 20,183 | ||
June 28, 2016 [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 31,400 | ||||
Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 14,100 | ||||
Impaired Long-Lived Assets Held and Used, Asset Name [Domain] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected Restructuring Charges through 2017 | 6,000 | ||||
Restructuring Charges | 14,900 | ||||
Organizational realignment of personnel and processes [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 2,400 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Power [Abstract] | ||||||||||||
Retrofits & continuous emissions monitoring systems | $ 392,854 | $ 427,378 | $ 323,623 | |||||||||
New build utility and environmental | 292,302 | 403,981 | 343,956 | |||||||||
Aftermarket parts and field engineering services | 292,535 | 304,923 | 349,398 | |||||||||
Industrial steam generation | 107,267 | 219,379 | 208,229 | |||||||||
Eliminations (Power) | (109,480) | (120,664) | (68,627) | |||||||||
Revenues | $ 379,984 | $ 410,955 | $ 383,208 | $ 404,116 | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | 1,578,263 | 1,757,295 | 1,486,029 | |
Renewable [Abstract] | ||||||||||||
Renewable new build and services | 284,684 | 277,326 | 171,004 | |||||||||
Operations and maintenance | 65,814 | 63,437 | 57,977 | |||||||||
Eliminations | (1,326) | (2,160) | (4,949) | |||||||||
Revenues | 379,984 | 410,955 | 383,208 | 404,116 | 502,678 | 419,977 | 437,485 | 397,155 | 1,578,263 | 1,757,295 | 1,486,029 | |
Industrial [Abstract] | ||||||||||||
Industrial aftermarket parts and services | 81,690 | 61,350 | 35,290 | |||||||||
Environmental solutions | 74,726 | 90,343 | 48,938 | |||||||||
Cooling systems | 73,797 | 0 | 0 | |||||||||
Engineered products | 23,400 | 32,002 | 21,190 | |||||||||
Revenues | 379,984 | 410,955 | 383,208 | 404,116 | 502,678 | 419,977 | 437,485 | 397,155 | 1,578,263 | 1,757,295 | 1,486,029 | |
Gross Profit [Abstract] | ||||||||||||
Amortization of Intangible Assets | 19,923 | 11,445 | ||||||||||
Mark to market adjustment included in cost of operations | 24,110 | 40,210 | $ 24,100 | 24,110 | 40,210 | 101,335 | ||||||
Gross profit (loss) | 848 | (73,757) | (26,052) | (80,156) | (64,954) | (77,922) | (81,884) | (83,397) | 179,117 | 308,157 | 219,033 | |
SG&A less pension MTM adjustment | (240,166) | (240,296) | (215,379) | |||||||||
Restructuring activities and spin-off transaction costs | (40,807) | (14,946) | (20,183) | |||||||||
Equity in income (loss) of investees | 11,553 | 2,827 | (616) | 2,676 | (185) | 1,047 | 967 | (2,071) | 16,440 | (242) | 8,681 | |
R&D | (10,406) | (16,543) | (18,483) | |||||||||
Cost of Services, Amortization | (4,081) | (3,769) | (2,659) | |||||||||
Mark to market adjustment included in cost of operations | 24,110 | 40,210 | $ 24,100 | 24,110 | 40,210 | 101,335 | ||||||
Gains (losses) on asset disposals and impairments, net | 32 | (14,597) | (1,752) | |||||||||
Operating income (loss) | $ (58,587) | $ 11,133 | $ (72,585) | $ 17,266 | $ (9,973) | $ 9,632 | $ 4,859 | $ 17,343 | (102,773) | 21,861 | (37,975) | |
Operating Segments | Power [Member] | ||||||||||||
Power [Abstract] | ||||||||||||
Revenues | 975,478 | 1,234,997 | 1,156,579 | |||||||||
Renewable [Abstract] | ||||||||||||
Revenues | 975,478 | 1,234,997 | 1,156,579 | |||||||||
Industrial [Abstract] | ||||||||||||
Revenues | 975,478 | 1,234,997 | 1,156,579 | |||||||||
Gross Profit [Abstract] | ||||||||||||
Gross profit (loss) | (233,550) | (247,632) | (237,491) | |||||||||
Operating Segments | Renewable [Domain] [Domain] | ||||||||||||
Power [Abstract] | ||||||||||||
Revenues | 349,172 | 338,603 | 224,032 | |||||||||
Renewable [Abstract] | ||||||||||||
Revenues | 349,172 | 338,603 | 224,032 | |||||||||
Industrial [Abstract] | ||||||||||||
Revenues | 349,172 | 338,603 | 224,032 | |||||||||
Gross Profit [Abstract] | ||||||||||||
Gross profit (loss) | 68,109 | (57,682) | (53,449) | |||||||||
Operating Segments | Industrial [Domain] | ||||||||||||
Power [Abstract] | ||||||||||||
Revenues | 253,613 | 183,695 | 105,418 | |||||||||
Renewable [Abstract] | ||||||||||||
Revenues | 253,613 | 183,695 | 105,418 | |||||||||
Industrial [Abstract] | ||||||||||||
Revenues | 253,613 | 183,695 | 105,418 | |||||||||
Gross Profit [Abstract] | ||||||||||||
Gross profit (loss) | (50,726) | (54,826) | (30,400) | |||||||||
Operating Segments | Intangible Asset Amortization [Member] | ||||||||||||
Gross Profit [Abstract] | ||||||||||||
Amortization of Intangible Assets | (15,842) | (7,676) | (7,501) | |||||||||
Operating Segments | Mark to Market Adjustments [Member] | ||||||||||||
Gross Profit [Abstract] | ||||||||||||
Mark to market adjustment included in cost of operations | (21,208) | (44,307) | (94,806) | |||||||||
Mark to market adjustment included in cost of operations | (21,208) | (44,307) | (94,806) | |||||||||
Cost of operations | ||||||||||||
Gross Profit [Abstract] | ||||||||||||
Mark to market adjustment included in cost of operations | 21,208 | 44,307 | 94,204 | |||||||||
Mark to market adjustment included in cost of operations | 21,208 | 44,307 | 94,204 | |||||||||
Selling, General and Administrative Expenses | ||||||||||||
Gross Profit [Abstract] | ||||||||||||
Mark to market adjustment included in cost of operations | 2,902 | (4,097) | 7,233 | |||||||||
Mark to market adjustment included in cost of operations | $ 2,902 | $ (4,097) | $ 7,233 |
Restructuring Activities and 89
Restructuring Activities and Spin Transaction Costs Pre-2016 Restructuring activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pre-2016 Restructuring activities [Abstract] | ||||
Restructuring Costs and Asset Impairment Charges | $ 300 | $ 15,000 | ||
Other Noncash Expense | $ 14,600 | $ 6,700 | ||
Restructuring Charges | 40,807 | 14,946 | $ 20,183 | |
Pre-2016 Restructuring Charges | $ 5,600 | $ 11,700 |
Segment Reporting Depreciatio90
Segment Reporting Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | $ 39,583 | $ 34,932 | $ 32,436 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | 6,568 | 3,488 | 0 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | 33,015 | 31,444 | 32,436 |
Operating Segments [Member] | Power [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | 11,231 | 18,532 | 21,561 |
Operating Segments [Member] | Renewable [Domain] [Domain] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | 2,711 | 2,567 | 2,809 |
Operating Segments [Member] | Industrial [Domain] | |||
Segment Reporting Information [Line Items] | |||
Depreciation, Depletion and Amortization | $ 19,073 | $ 10,345 | $ 8,066 |
Segment Reporting Revenue by Co
Segment Reporting Revenue by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue - U.S. | $ 851,955 | $ 1,034,653 | $ 934,397 | ||||||||
Revenue - U.K. | 201,221 | 126,285 | 61,972 | ||||||||
Revenue - Canada | 74,629 | 134,276 | 136,382 | ||||||||
Revenue - Denmark | 54,722 | 116,064 | 65,436 | ||||||||
Revenue - Vietnam | 55,265 | 46,803 | 3,829 | ||||||||
Revenue - Korea | 44,660 | 4,358 | 14,149 | ||||||||
Revenue - Egypt | 35,878 | 0 | 0 | ||||||||
Revenue - China | 33,898 | 41,921 | 53,005 | ||||||||
Revenue - Germany | 29,559 | 19,233 | 22,792 | ||||||||
Revenue - Sweden | 24,809 | 18,302 | 29,786 | ||||||||
Revenue - Dominican Republic | 21,366 | 82,916 | 27,399 | ||||||||
Revenue - Turkey | 11,113 | 0 | 0 | ||||||||
Revenue - Thailand | 8,051 | 4,606 | 8,113 | ||||||||
Revenue - Italy | 7,862 | 4,671 | 3,540 | ||||||||
Revenue - India | 6,856 | 13,108 | 5,070 | ||||||||
Revenue - Indonesia | 6,723 | 1,730 | 5,324 | ||||||||
Revenue - Colombia | 6,398 | 4,904 | 8,037 | ||||||||
Revenue - Finland | 5,756 | 6,113 | 4,926 | ||||||||
Revenue - Australia | 5,729 | 2,817 | 2,540 | ||||||||
Revenue - All other countries | 91,813 | 94,535 | 99,332 | ||||||||
Revenues | $ 379,984 | $ 410,955 | $ 383,208 | $ 404,116 | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | $ 1,578,263 | $ 1,757,295 | $ 1,486,029 |
Segment Reporting PP&E by Count
Segment Reporting PP&E by Country (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | $ 133,637 | $ 145,717 | $ 135,237 |
United States | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 75,368 | 88,840 | 82,209 |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 22,594 | 24,643 | 12,106 |
China | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 13,460 | 13,956 | 12,356 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 6,337 | 8,070 | 8,638 |
Denmark | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | 6,749 | 6,265 | 6,963 |
All Other Countries | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Net | $ 9,129 | $ 3,943 | $ 12,965 |
Contracts and Revenue Recogni93
Contracts and Revenue Recognition (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Contracts and Revenue Recognition [Abstract] | |
Proceeds from Insurance Settlement, Operating Activities | $ 15 |
Contracts and Revenue Recogni94
Contracts and Revenue Recognition Change in Estimate (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in Accounting Estimate [Line Items] | |||||
Operating Income | $ 42,368,000 | $ 36,653,000 | $ 50,565,000 | ||
Operating loss | (149,169,000) | (36,235,000) | (24,234,000) | ||
Net changes in estimates for percentage of completion contracts | (106,801,000) | $ 418,000 | $ 26,331,000 | ||
Charge related to a change in estimate on a Renewables contract in Europe | $ (98,100,000) | $ (141,100,000) | |||
Loss Contingency, Damages Sought | 35,807 | ||||
Proceeds from Insurance Settlement, Operating Activities | $ 15,000,000 | ||||
First European renewable project [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | $ (50,300,000) | (6,400,000) | |||
Loss Contingency, Damages Sought | 3,425 | ||||
Changes in the estimated cost to complete on European renewable project | $ 30,900,000 | ||||
Additional charges on projects due to limited resources | $ (19,400,000) | ||||
Percentage of completion on European renewable energy project | 0.88 | ||||
Second European renewable project [Member] [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | (23,000,000) | $ (28,100,000) | |||
Loss Contingency, Damages Sought | 8,031 | ||||
Percentage of completion on European renewable energy project | $ 0.67 | ||||
Second European renewable project [Member] [Member] | Accrued Liabilities [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | (5,100,000) | ||||
Third European renewable project [Member] [Member] [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | (25,200,000) | $ (30,100,000) | |||
Loss Contingency, Damages Sought | 6,949 | ||||
Percentage of completion on European renewable energy project | $ 0.82 | ||||
Third European renewable project [Member] [Member] [Member] | Accrued Liabilities [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | (3,900,000) | ||||
Fourth European renewable project [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | (16,200,000) | $ (16,400,000) | |||
Loss Contingency, Damages Sought | 8,413 | ||||
Percentage of completion on European renewable energy project | $ 0.61 | ||||
Fourth European renewable project [Member] | Accrued Liabilities [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | $ (1,600,000) | ||||
Other renewable energy projects [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | $ (14,200,000) | ||||
Loss Contingency, Damages Sought | 8,989 | ||||
Other renewable energy projects [Member] | Operating Income (Loss) [Member] | |||||
Change in Accounting Estimate [Line Items] | |||||
Charge related to a change in estimate on a Renewables contract in Europe | $ (13,700,000) |
Contracts and Revenue Recogni95
Contracts and Revenue Recognition Contracts in Progress and Advance Billings (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Contracts and Revenue Accounting [Abstract] | ||
Contract Receivable, Due in Year Two | $ 3,185 | |
Contract Receivable Retainage, Next Twelve Months | 18,843 | $ 24,906 |
Contract Receivable, Due after Year One | 4,583 | 5,329 |
Cost incurred less cost of revenue recognized asset | 96,210 | 9,966 |
Revenue recognized in excess of billings to customer | 69,800 | 118,208 |
Costs in Excess of Billings, Current | 166,010 | 128,174 |
Billings less revenue recognized | 199,480 | 221,244 |
Costs of revenue net of costs incurred | 11,162 | 8,146 |
Billings in Excess of Cost | 210,642 | 229,390 |
Contract Receivable, Due after Year One | 850 | |
Contract Receivable Retainage | $ 23,426 | 30,235 |
Contracts Receivable, Claims and Uncertain Amounts | $ 2,300 |
Equity Method Investments Undis
Equity Method Investments Undistributed earnings (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Equity Method Investments [Abstract] | ||
Retained Earnings, Undistributed Earnings from Equity Method Investees | $ 59,600,000 | $ 63,400,000 |
Equity Method Investments Inves
Equity Method Investments Investments in and advances to affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments in and Advances to Affiliates [Line Items] | |||
Sales to | $ 17,220 | $ 18,014 | $ 70,566 |
Purchases from | 32,490 | 45,397 | 5,623 |
Dividends Received | 12,160 | 20,830 | 17,407 |
Payments to Acquire Assets, Investing Activities | 26,256 | $ 7,424 | $ 4,900 |
TBWES | |||
Investments in and Advances to Affiliates [Line Items] | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 40,569 |
Equity Method Investments Equ98
Equity Method Investments Equity Method Investment Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity Method Investment, Underlying Equity in Net Assets | $ 7,898 | $ (542) | $ 8,563 |
Gain on sale of our interest in HMA | 8,300 | ||
All other adjustments due to amortization of basis differences, timing of GAAP adjustments and other adjustments | 218 | 300 | 118 |
Equity in income of investees | $ 16,440 | $ (242) | $ 8,681 |
Equity Method Investments Sale
Equity Method Investments Sale of Joint Venture (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Proceeds from Sale of Equity Method Investments | $ (17,995) | $ 0 | $ 0 |
Gain on sale of our interest in HMA | $ 8,300 |
Equity Method Investments Eq100
Equity Method Investments Equity Method Investees - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Assets, Investing Activities | $ 26,256 | $ 7,424 | $ 4,900 |
Revenues | 488,101 | 475,459 | 645,481 |
Gross Profit | 76,986 | 69,021 | 85,378 |
Income before provision for income taxes | 19,529 | 3,072 | 22,909 |
Provision for income taxes | 3,715 | 4,500 | 6,159 |
Net Income | $ 15,814 | $ (1,428) | $ 16,750 |
Equity Method Investments Eq101
Equity Method Investments Equity Method Investees - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Current Assets | $ 335,577 | $ 446,283 |
Noncurrent Assets | 126,958 | 168,411 |
Total assets | 462,535 | 614,694 |
Current liabilities | 231,150 | 314,390 |
Noncurrent liabilities | 40,537 | 140,349 |
Owners equity | 190,848 | 159,955 |
Total liabilities and equity | $ 462,535 | $ 614,694 |
Equity Method Investments Accou
Equity Method Investments Accounts Receivable - Other (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Accounts Receivable, Related Parties, Current | $ 8,500,000 | $ 7,900,000 |
Equity Method Investments Tr103
Equity Method Investments Transactions with Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Proceeds from equity method investment, net sales proceeds, sales to | $ 17,220 | $ 18,014 | $ 70,566 |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | 32,490 | 45,397 | 5,623 |
Proceeds from Equity Method Investment, Dividends or Distributions | 12,160 | 20,830 | 17,407 |
Payments to Acquire Assets, Investing Activities | $ 26,256 | $ 7,424 | $ 4,900 |
Stock-Based Compensation 2015 L
Stock-Based Compensation 2015 Long-Term Incentive Plan (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016shares | |
Stock-Based Compensation [Abstract] | |
Increase in number of shares available for issuance with amended plan | 2,500 |
Number of shares available for award grants | 8,300 |
Number of shares available for award grants at December 31, 2016 | 3,300 |
Stock-Based Compensation Com105
Stock-Based Compensation Company Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 4.03 | $ 4.80 | $ 7.03 |
Intrinsic value of stock options exercised | $ 700,000 | $ 2,300,000 | $ 900,000 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 18.27 | $ 17.99 | |
Outstanding at end of period | 2,652 | 2,360 | |
Outstanding at beginning of period | 2,360 | ||
Weighted-average remaining contractual term outstanding at end of period | 6 years 6 months 7 days | ||
Aggregate intrinsic value outstanding at end of period | $ 521,300 | ||
Stock option risk-free interest rate | 1.14% | 1.38% | 0.97% |
Stock options expected volatility | 25.00% | 28.00% | 30.00% |
Expected life of the option in years | 3 years 11 months 12 days | 3 years 11 months 16 days | 3 years 9 months 4 days |
Stock option expected dividend yield | 0.00% | 0.00% | 1.00% |
Stock options granted | 599 | ||
Weighted average exercise price of stock options granted | $ 19.03 | ||
Stock options exercised | (141) | ||
Weighted average exercise price of stock options exercised | $ 16.33 | ||
Stock options cancelled/expired/forfeited | 166 | ||
Weighted average exercise price of stock options cancelled/expired/forfeited | $ 18.73 | ||
Stock options exercisable at end of period | 1,269 | ||
Weighted average exercise price of stock options exercisable at end of period | $ 17.77 | ||
Weighted average remaining contractual term of stock options exercisable at end of period | 4 years 6 months 29 days | ||
Aggregate intrinsic value of stock options exercisable at end of period | $ 521,300 | ||
Tax benefits realized related to stock options exercised during 2016 | $ 300,000 |
Stock-Based Compensation Com106
Stock-Based Compensation Company Stock Restricted Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Performance based restricted stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
PRSU risk-free interest rate | 1.00% | |
RSUs nonvested at end of period | 451 | 0 |
RSUs nonvested at beginning of period | 0 | |
Weighted average grand date fair value nonvested at end of period | $ 19.29 | $ 0 |
Weighted average grant date fair value nonvested at beginning of period | $ 0 | |
RSUs granted | 493 | |
Weighted average grant date fair value of RSUs granted | $ 19.31 | |
RSUs vested | 0 | |
Weighted average grant date fair value of RSUs vested | $ 0 | |
RSUs cancelled/forfeited | (42) | |
Weighted average grant date fair value of RSUs cancelled/forfeited | $ 19.56 | |
PRSU expected volatility | 25.00% | |
PRSU expected life in years | 2 years 9 months 29 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Tax benefits realized related to RSUs exercised vested during the year | $ 2.7 | $ 1.1 |
RSUs nonvested at end of period | 712 | 999 |
RSUs nonvested at beginning of period | 999 | |
Weighted average grand date fair value nonvested at end of period | $ 19.14 | $ 19.30 |
Weighted average grant date fair value nonvested at beginning of period | $ 19.30 | |
RSUs granted | 230 | |
Weighted average grant date fair value of RSUs granted | $ 18.76 | |
RSUs vested | (407) | |
Weighted average grant date fair value of RSUs vested | $ 19.26 | |
RSUs cancelled/forfeited | (109) | |
Weighted average grant date fair value of RSUs cancelled/forfeited | $ 19.29 |
Stock-Based Compensation Com107
Stock-Based Compensation Company performance based restricted stock (Details) - Performance based restricted stock [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 451 | 0 |
PRSU risk-free interest rate | 1.00% | |
PRSU expected volatility | 25.00% | |
PRSU expected life in years | 2 years 9 months 29 days | |
PRSU expected dividend yield | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (42) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 19.56 | |
Weighted average grant date fair value nonvested at beginning of period | 0 | |
Weighted average grand date fair value nonvested at end of period | $ 19.29 | $ 0 |
PSUs granted | 493 | |
Weighted average grant date fair value of PSUs | $ 19.31 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Assumptions Used to Calculate Fair Value of Option Grant (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option risk-free interest rate | 1.14% | 1.38% | 0.97% |
Stock options expected volatility | 25.00% | 28.00% | 30.00% |
Expected life of the option in years | 3 years 11 months 12 days | 3 years 11 months 16 days | 3 years 9 months 4 days |
PRSU expected dividend yield | 0.00% | 0.00% | 1.00% |
Performance based restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option risk-free interest rate | 1.00% | ||
Stock options expected volatility | 25.00% | ||
Expected life of the option in years | 2 years 9 months 29 days | ||
PRSU expected dividend yield | 0.00% |
Stock-Based Compensation Summar
Stock-Based Compensation Summarized Activity of Stock Options (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,652 | 2,360 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 599 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 19.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (141) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 16.33 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (166) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 18.73 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months 7 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 521,300 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,269 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 17.77 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 6 months 29 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 521,300 |
Provision for Income Taxes (Det
Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | (6.40%) | 18.20% | 67.50% | |
Deferred Tax Assets, Valuation Allowance | $ 40,484 | $ 10,077 | $ 9,216 | $ 6,980 |
Provision for Income Taxes R111
Provision for Income Taxes Reconciliation of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||
Unrecognized Tax Benefits | $ 884 | $ 1,141 | $ 3,321 | $ 1,190 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 178 | 88 | 213 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 230 | 248 | 2,268 | |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | 0 | (1,161) | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | (665) | (1,355) | (350) | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 0 | $ 0 | $ 0 |
Provision for Income Taxes C112
Provision for Income Taxes Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Tax Credit Carryforward [Line Items] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions | $ 105,426 | $ 107,748 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Warranty Reserves | 11,628 | 12,589 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Compensated Absences | 4,792 | 4,482 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 6,596 | 14,280 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 8,334 | 14,255 | ||
Deferred Tax Assets, Equity Method Investments | 10,742 | 14,100 | ||
Deferred Tax Assets, Deferred Income | 10,318 | 6,963 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Legal Settlements | 2,110 | 0 | ||
Deferred Tax Assets, Inventory | 2,445 | 2,621 | ||
Deferred Tax Assets, Property, Plant and Equipment | 1,587 | 0 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 33,187 | 13,544 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 15,372 | 14,409 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 3,870 | 2,378 | ||
Deferred Tax Assets, Other | 8,589 | 6,585 | ||
Deferred Tax Assets, Gross | 224,996 | 213,954 | ||
Deferred Tax Assets, Valuation Allowance | (40,484) | (10,077) | $ (9,216) | $ (6,980) |
Deferred Tax Assets, Net of Valuation Allowance | 184,512 | 203,877 | ||
Deferred Tax Liabilities, Deferred Expense | 3,601 | 9,084 | ||
Deferred Tax Liabilities, Intangible Assets | 21,892 | 13,158 | ||
Deferred Tax Liabilities, Property, Plant and Equipment | 0 | 3,379 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 500 | 1,000 | ||
Deferred Tax Liabilities, Goodwill | 1,125 | 1,167 | ||
Deferred Tax Liabilities, Other | 2,885 | 1,317 | ||
Deferred Tax Liabilities, Gross | 30,003 | 29,105 | ||
Deferred Tax Assets, Net | $ 154,509 | $ 174,772 |
Provision for Income Taxes V113
Provision for Income Taxes Valuation allowance for deferred tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation Allowance [Line Items] | ||||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 3,870 | $ 2,378 | ||
Deferred Tax Assets, Valuation Allowance | (40,484) | (10,077) | $ (9,216) | $ (6,980) |
Valuation Allowances and Reserves, Additions for Charges to Cost and Expense | (29,307) | (861) | (2,236) | |
Valuation Allowances and Reserves, Additions for Charges to Other Accounts | $ (1,100) | $ 0 | $ 0 |
Provision for Income Taxes I114
Provision for Income Taxes Income before Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income before Provision for Income Taxes [Abstract] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 1,280 | $ (20,748) | $ (64,084) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | (109,419) | 40,953 | 27,466 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (108,139) | $ 20,205 | $ (36,618) |
Provision for Income Taxes N115
Provision for Income Taxes Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 23,800 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 800 | |||
operating loss carryforward expiration year range start | 2,017 | |||
operating loss carryforward expiration year range end | 2,027 | |||
Valuation Allowances and Reserves, Balance | $ 17,600 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 9,400 | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 | |||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | $ 3,870 | $ 2,378 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 15,372 | 14,409 | ||
State net operating loss carryforwards expiration date | 2,017 | |||
Tax Credit Carryforward, Valuation Allowance | $ 12,400 | |||
Undistributed Earnings of Foreign Subsidiaries | 278,700 | |||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 33,600 | |||
Taxes on earnings with intent to remit | 500 | |||
Decrease in accruals | 200 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 100 | 300 | ||
Foreign tax credit carryover expiration beginning range | 2,022 | |||
Foreign tax credit carryover expiration range ending | 2,024 | |||
Foreign Tax Credit Carryforward Expiration | 2,027 | |||
Valuation Allowance, Methodologies and Assumptions | $ (40,484) | (10,077) | $ (9,216) | $ (6,980) |
Unrecognized Tax Benefits | 884 | $ 1,141 | $ 3,321 | $ 1,190 |
2017 to 2027 [Domain] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 500 | |||
2022 to 2024 [Domain] [Domain] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 1,200 |
Provision for Income Taxes C116
Provision for Income Taxes Components of Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Line Items] | |||
United States – federal | $ 284 | $ 24,084 | $ 1,834 |
Current State and Local Tax Expense (Benefit) | (415) | 3,458 | 1,544 |
Current Foreign Tax Expense (Benefit) | 4,504 | 8,250 | 13,917 |
Current Income Tax Expense (Benefit) | 4,373 | 35,792 | 17,295 |
Deferred Federal Income Tax Expense (Benefit) | 11,512 | (35,888) | (32,910) |
Deferred State and Local Income Tax Expense (Benefit) | 6,365 | (111) | (572) |
Deferred Foreign Income Tax Expense (Benefit) | (15,307) | 3,878 | (8,541) |
Deferred Income Tax Expense (Benefit) | (9,000) | (32,121) | (42,023) |
Income Tax Expense (Benefit) | 6,943 | 3,671 | (24,728) |
Includes SPIG consolidated [Member] | |||
Income Tax Disclosure [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ 2,570 | $ (32,121) | $ (42,023) |
Provision for Income Taxes R117
Provision for Income Taxes Reconciliation of U.S. Statutory Federal Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of U.S. Statutory Federal Tax Rate [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | (3.50%) | 13.80% | 4.10% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (12.80%) | (13.10%) | 16.60% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (3.00%) | (14.70%) | (7.50%) |
Effective Income Tax Rate Reconciliation, Deduction, Dividend, Percent | (0.20%) | 1.70% | 5.70% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (28.10%) | 4.30% | (6.10%) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | 0.30% | (6.60%) | (6.70%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | (1.80%) | 2.40% | (2.40%) |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Percent | 0.00% | (2.50%) | 11.60% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 1.70% | (2.10%) | 2.20% |
Effective Income Tax Rate Reconciliation, Percent | (6.40%) | 18.20% | 67.50% |
Comprehensive Income Accumul118
Comprehensive Income Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | $ (18,853) | $ 10,374 | $ 35,376 |
Other comprehensive income (loss) before reclassifications | (14,749) | (18,650) | (25,301) |
Amounts reclassified from AOCI to net income (loss) | (2,880) | 965 | 299 |
Net Transfer From To Former Parent | (11,542) | ||
Net current-period other comprehensive income | (17,629) | (17,685) | (25,002) |
Balance at end of period | (36,482) | (18,853) | 10,374 |
Currency translation gain (loss) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (19,493) | 11,551 | 38,446 |
Other comprehensive income (loss) before reclassifications | (24,494) | (19,459) | (26,895) |
Amounts reclassified from AOCI to net income (loss) | 0 | 0 | 0 |
Net Transfer From To Former Parent | (11,585) | ||
Net current-period other comprehensive income | (24,494) | (31,044) | (26,895) |
Balance at end of period | (43,987) | (19,493) | 11,551 |
Net unrealized gain (loss) on investments (net of tax) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (44) | (22) | (20) |
Other comprehensive income (loss) before reclassifications | 7 | (49) | (2) |
Amounts reclassified from AOCI to net income (loss) | 0 | 27 | 0 |
Net Transfer From To Former Parent | 0 | ||
Net current-period other comprehensive income | 7 | (22) | (2) |
Balance at end of period | (37) | (44) | (22) |
Net unrealized gain (loss) on derivative instruments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | 1,786 | (123) | 627 |
Other comprehensive income (loss) before reclassifications | 2,046 | 339 | (2,360) |
Amounts reclassified from AOCI to net income (loss) | (3,030) | 1,133 | 1,610 |
Net Transfer From To Former Parent | 437 | ||
Net current-period other comprehensive income | (984) | 1,909 | (750) |
Balance at end of period | 802 | 1,786 | (123) |
Net unrecognized gain (loss) related to benefit plans (net of tax) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at beginning of period | (1,102) | (1,032) | (3,677) |
Other comprehensive income (loss) before reclassifications | 7,692 | 519 | 3,956 |
Amounts reclassified from AOCI to net income (loss) | 150 | (195) | (1,311) |
Net Transfer From To Former Parent | (394) | ||
Net current-period other comprehensive income | 7,842 | (70) | 2,645 |
Balance at end of period | $ 6,740 | (1,102) | $ (1,032) |
Including net transfers from parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net current-period other comprehensive income | $ (29,227) |
Comprehensive Income Reclassifi
Comprehensive Income Reclassification out of Accumulated other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other comprehensive income (loss) before reclassifications | $ (14,749) | $ (18,650) | $ (25,301) | |||||||||
Revenues | $ 379,984 | $ 410,955 | $ 383,208 | $ 404,116 | $ 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | 1,578,263 | 1,757,295 | 1,486,029 | |
Other - net | (2,380) | (1,215) | 789 | |||||||||
Total before tax | (108,139) | 20,205 | (36,618) | |||||||||
Provision for income taxes | (6,943) | (3,671) | 24,728 | |||||||||
Net income (loss) | (115,082) | 16,534 | (11,890) | |||||||||
Amounts reclassified from AOCI to net income (loss) | (2,880) | 965 | 299 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (17,629) | (17,685) | (25,002) | |||||||||
Accumulated other comprehensive loss | (36,482) | (18,853) | (36,482) | (18,853) | 10,374 | $ 35,376 | ||||||
Currency translation gain (loss) | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other comprehensive income (loss) before reclassifications | (24,494) | (19,459) | (26,895) | |||||||||
Amounts reclassified from AOCI to net income (loss) | 0 | 0 | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (24,494) | (31,044) | (26,895) | |||||||||
Accumulated other comprehensive loss | (43,987) | (19,493) | (43,987) | (19,493) | 11,551 | 38,446 | ||||||
Net unrealized gain (loss) on investments (net of tax) | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other comprehensive income (loss) before reclassifications | 7 | (49) | (2) | |||||||||
Amounts reclassified from AOCI to net income (loss) | 0 | 27 | 0 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 7 | (22) | (2) | |||||||||
Accumulated other comprehensive loss | (37) | (44) | (37) | (44) | (22) | (20) | ||||||
Net unrealized gain (loss) on derivative instruments | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other comprehensive income (loss) before reclassifications | 2,046 | 339 | (2,360) | |||||||||
Amounts reclassified from AOCI to net income (loss) | (3,030) | 1,133 | 1,610 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | (984) | 1,909 | (750) | |||||||||
Accumulated other comprehensive loss | 802 | 1,786 | 802 | 1,786 | (123) | 627 | ||||||
Net unrealized gain (loss) on derivative instruments | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Revenues | 4,624 | 546 | (53) | |||||||||
Cost of Goods Sold | (195) | 155 | 13 | |||||||||
Other - net | (1,221) | (24) | (6) | |||||||||
Total before tax | 3,598 | 677 | (46) | |||||||||
Provision for income taxes | (568) | 149 | 11 | |||||||||
Net income (loss) | 3,030 | 528 | (35) | |||||||||
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of Goods Sold | 254 | 1,475 | (457) | |||||||||
Provision for income taxes | (404) | 1,168 | (183) | |||||||||
Net income (loss) | (150) | (307) | (274) | |||||||||
Realized Gain Loss On Sale Of Investment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other - net | 0 | (42) | 0 | |||||||||
Provision for income taxes | 0 | 15 | 0 | |||||||||
Net income (loss) | 0 | (27) | 0 | |||||||||
Net unrecognized gain (loss) related to benefit plans (net of tax) | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other comprehensive income (loss) before reclassifications | 7,692 | 519 | 3,956 | |||||||||
Amounts reclassified from AOCI to net income (loss) | 150 | (195) | (1,311) | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 7,842 | (70) | 2,645 | |||||||||
Accumulated other comprehensive loss | $ 6,740 | $ (1,102) | $ 6,740 | $ (1,102) | $ (1,032) | $ (3,677) |
Cash and Cash Equivalents Restr
Cash and Cash Equivalents Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 27,770 | $ 37,144 |
Reinsurance reserve requirements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | 21,189 | 33,404 |
Restricted foreign accounts | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 6,581 | $ 3,740 |
Cash and Cash Equivalents Unres
Cash and Cash Equivalents Unrestricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 95,887 | $ 365,192 | $ 218,659 | $ 191,318 |
Held by foreign entities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | 94,415 | 221,151 | ||
Held by United States entities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 1,472 | $ 144,041 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories [Abstract] | ||
Raw materials and supplies | $ 61,630 | $ 68,684 |
Work in progress | 6,803 | 7,025 |
Finished goods | 17,374 | 14,410 |
Total inventories | $ 85,807 | $ 90,119 |
INTANGIBLE ASSETS Definite-live
INTANGIBLE ASSETS Definite-lived Intangible Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 123,225,000 | $ 70,107,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (53,491,000) | (33,568,000) |
Finite-Lived Intangible Assets, Net | 69,734,000 | 36,539,000 |
Indefinite-Lived Trademarks | 1,305,000 | 1,305,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 1,305,000 | 1,305,000 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 47,892,000 | 35,729,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (17,519,000) | (12,509,000) |
Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,461,000 | 4,033,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2,864,000) | (1,471,000) |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 2,499,000 | 2,532,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (1,532,000) | (1,406,000) |
Trade names / trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 18,774,000 | 9,909,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (3,826,000) | (2,883,000) |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 28,170,000 | 10,400,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | (21,776,000) | (10,400,000) |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 7,430,000 | 7,504,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ (5,974,000) | $ (4,899,000) |
INTANGIBLE ASSETS Carrying Amou
INTANGIBLE ASSETS Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Intangible Assets, Net (Including Goodwill) | $ 71,039 | $ 37,844 | $ 50,646 | |
Finite-lived Intangible Assets Acquired | $ 55,164 | 55,438 | 500 | |
Amortization of Intangible Assets | (19,923) | (11,445) | ||
Finite Lived Intangible Assets, Foreign Currency Translation Gain (Loss) | $ (2,320) | $ (1,857) |
INTANGIBLE ASSETS Estimated Fut
INTANGIBLE ASSETS Estimated Future Intangible Asset Amortization (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
December 31, 2017 | $ 14,834 |
December 31, 2018 | 10,208 |
December 31, 2019 | 8,545 |
December 31, 2020 | 7,293 |
December 31, 2021 | 6,971 |
Thereafter | $ 21,883 |
Credit Facility - Additional In
Credit Facility - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Line of Credit, Current | $ 24,041 | $ 2,005 |
Line of Credit Facility, Interest Rate at Period End | 4.125% | |
Outstanding letter of credit | $ 255,200 | 193,100 |
Guarantor Obligations, Current Carrying Value | 527,900 | |
New Credit Agreement | ||
Debt Instrument [Line Items] | ||
Line of Credit, Current | 9,800 | 0 |
New Credit Agreement | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 89,100 | |
Aggregate amount to be borrowed to meet letter of credit requirements | 228,800 | |
Financial Standby Letter of Credit [Member] | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 7,500 | |
Foreign Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit agreement, maximum borrowing capacity | 15,700 | |
Line of Credit, Current | $ 14,241 | $ 2,005 |
Line of Credit Facility, Interest Rate at Period End | 4.92% |
Goodwill Goodwill by Segment (D
Goodwill Goodwill by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill | $ 267,395 | $ 201,069 | $ 209,277 |
Goodwill, Period Increase (Decrease) | 69,862 | ||
Goodwill, Purchase Accounting Adjustments | 2,539 | (4,492) | |
Goodwill, Foreign Currency Translation Gain (Loss) | (6,075) | (3,716) | |
Power [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 46,220 | 47,137 | 48,755 |
Goodwill, Period Increase (Decrease) | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (917) | (1,618) | |
Industrial [Domain] | |||
Goodwill [Line Items] | |||
Goodwill | 172,740 | 104,308 | 108,800 |
Goodwill, Period Increase (Decrease) | 69,862 | ||
Goodwill, Purchase Accounting Adjustments | 2,539 | (4,492) | |
Goodwill, Foreign Currency Translation Gain (Loss) | (3,969) | 0 | |
Renewable [Domain] [Domain] | |||
Goodwill [Line Items] | |||
Goodwill | 48,435 | 49,624 | $ 51,722 |
Goodwill, Period Increase (Decrease) | 0 | ||
Goodwill, Purchase Accounting Adjustments | 0 | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | $ (1,189) | $ (2,098) |
Goodwill Narrative (Details)
Goodwill Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Fair value exceeding carrying value | 22.00% | 48.00% | |
Estimated fair value of reporting unit | $ 182,800 | $ 163,800 | |
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | 11,500 | ||
Goodwill | 267,395 | 201,069 | $ 209,277 |
Renewable [Domain] [Domain] | |||
Goodwill [Line Items] | |||
Goodwill | $ 48,435 | $ 49,624 | $ 51,722 |
Property, Plant and Equipmen129
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | |||
Land | $ 6,348 | $ 7,460 | |
Buildings and Improvements, Gross | 114,322 | 104,963 | |
Machinery and Equipment, Gross | 189,489 | 181,064 | |
Construction in Progress, Gross | 22,378 | 36,534 | |
Property, plant and equipment - gross | 332,537 | 330,021 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 198,900 | 184,304 | |
Property, Plant and Equipment, Net | $ 133,637 | $ 145,717 | $ 135,237 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Product Warranty Liability [Line Items] | |||
Balance at beginning of period | $ 39,847 | $ 37,735 | $ 38,968 |
Additions | 22,472 | 19,310 | 13,726 |
Expirations and other changes | (10,855) | (982) | (4,052) |
Standard and Extended Warranty Accrual, increase from Business Acquisitions | 918 | 0 | 4,693 |
Product Warranty Accrual, Period Increase (Decrease) | (11,089) | (15,215) | (14,787) |
Translation and other | (826) | (1,001) | (813) |
Balance at end of period | 40,467 | $ 39,847 | $ 37,735 |
ARPA Trial [Member] | |||
Product Warranty Liability [Line Items] | |||
Expirations and other changes | $ 2,300 |
Supplemental Cash Flow Infor131
Supplemental Cash Flow Information Income taxes paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes Paid [Abstract] | |||
Income taxes (net of refunds) | $ 10,781 | $ 15,008 | $ 7,951 |
Supplemental Cash Flow Infor132
Supplemental Cash Flow Information Accrued capital expenditures in accounts payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accrued capital expenditures in accounts payable [Abstract] | |||
Accrued capital expenditures in accounts payable | $ 2,751 | $ 568 | $ 1,680 |
Pension Plans and Postretire133
Pension Plans and Postretirement Benefits Pension Plans and Postretirement Benefits - Obligations and funded status (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Curtailments | $ 1,800 | |||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | $ (254) | $ 1,042 | $ 931 | |
Defined Benefit Plan, Settlements, Benefit Obligation | 1,200 | |||
Other Postretirement Defined Benefit Plan, Liabilities, Noncurrent | (12,822) | (27,768) | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 0 | 0 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 1,680 | 13,677 | 13,558 | |
Defined Benefit Plan, Interest Cost | 40,875 | 49,501 | 51,181 | |
Defined Benefit Plan, Contributions by Plan Participants | 0 | 156 | ||
Defined Benefit Plan, Curtailments | 266 | 0 | ||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | 432 | 1,976 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | ||
Defined Benefit Plan, Assets Transferred to (from) Plan | 0 | 15,992 | ||
Defined Benefit Plan, Plan Amendments | 231 | 244 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | 43,410 | (47,098) | ||
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer | 3,641 | (523) | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | (5,099) | (11,450) | ||
Defined Benefit Plan, Benefits Paid | (78,447) | (68,614) | ||
Defined Benefit Plan, Benefit Obligation | 1,211,720 | 1,205,163 | 1,253,278 | |
Defined Benefit Plan, Actual Return on Plan Assets | 76,570 | (19,623) | ||
Defined Benefit Plan, Contributions by Employer | 3,986 | 8,711 | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (5,015) | (11,089) | ||
Defined Benefit Plan, Fair Value of Plan Assets | 922,868 | 923,030 | 999,515 | |
Defined Benefit Plan, Funded Status of Plan | (288,852) | (282,133) | ||
Accrued Employee Benefits | (1,099) | (1,927) | ||
Other Postretirement Defined Benefit Plan, Liabilities, Noncurrent | 0 | 0 | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | (287,753) | (281,711) | ||
Prepaid Pension Costs | 0 | 1,505 | ||
Defined Benefit Plan, Funded Status of Plan | (288,852) | (282,133) | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 1,183,345 | 1,175,511 | ||
Defined benefit plan plans with assets in excess of acccumulated benefit obligation aggregate accumulated benefit obligation | 28,375 | 29,652 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 1,206,056 | 1,172,591 | ||
Defined benefit plan plans with assets in excess of accumulated benefit obligation aggregate fair value of plan assets | 28,763 | 31,157 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Fair Value of Plan Assets | 894,105 | 891,873 | ||
Defined benefit plan plans with assets in excess of accumulated benefit obligation aggregate projected benefit obligation | 28,375 | 29,652 | ||
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 23 | 24 | 18 | |
Defined Benefit Plan, Interest Cost | 897 | 1,143 | 1,087 | |
Defined Benefit Plan, Contributions by Plan Participants | 574 | 276 | ||
Defined Benefit Plan, Curtailments | 0 | 0 | ||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | (10,801) | 0 | ||
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | ||
Defined Benefit Plan, Assets Transferred to (from) Plan | 0 | 234 | ||
Defined Benefit Plan, Plan Amendments | (10,801) | 0 | ||
Defined Benefit Plan, Actuarial Gain (Loss) | (7,162) | (296) | ||
Nonmonetary Transaction, Gain (Loss) Recognized on Transfer | 0 | 0 | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 50 | (367) | ||
Defined Benefit Plan, Benefits Paid | (3,563) | (4,034) | ||
Defined Benefit Plan, Benefit Obligation | 11,907 | 31,889 | 34,909 | |
Defined Benefit Plan, Actual Return on Plan Assets | 0 | 0 | ||
Defined Benefit Plan, Contributions by Employer | 2,989 | 3,758 | ||
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | 0 | 0 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | $ 0 | |
Defined Benefit Plan, Funded Status of Plan | (11,907) | (31,889) | ||
Accrued Employee Benefits | (1,722) | (4,620) | ||
Other Postretirement Defined Benefit Plan, Liabilities, Noncurrent | (10,185) | (27,269) | ||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | 0 | 0 | ||
Prepaid Pension Costs | 0 | 0 | ||
Defined Benefit Plan, Funded Status of Plan | (11,907) | (31,889) | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Projected Benefit Obligation | 0 | 0 | ||
Defined benefit plan plans with assets in excess of acccumulated benefit obligation aggregate accumulated benefit obligation | 0 | 0 | ||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Aggregate Accumulated Benefit Obligation | 11,907 | 31,889 | ||
Defined benefit plan plans with assets in excess of accumulated benefit obligation aggregate fair value of plan assets | 0 | 0 | ||
Defined benefit plan plans with assets in excess of accumulated benefit obligation aggregate projected benefit obligation | 0 | 0 | ||
Transferor's Continuing Involvement in Transferred Financial Assets, Transfer Description [Member] | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assets Transferred to (from) Plan | 2,744 | 13,974 | ||
Transferor's Continuing Involvement in Transferred Financial Assets, Transfer Description [Member] | Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assets Transferred to (from) Plan | $ 0 | $ 0 |
Pension Plans and Postretire134
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, MTM adjustment excluding curtailment and settlements | $ (6,390) | $ 500 | $ 30,000 | $ 27,500 | ||||
Plan settlement resulting from lump sum payments from our Canadian pension plan | 1,200 | |||||||
Mark to market adjustment included in cost of operations | $ 24,110 | $ 40,210 | $ 24,100 | 24,110 | $ 40,210 | $ 101,335 | ||
Commercial Operations Defined Benefit Plan [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, MTM adjustment excluding curtailment and settlements | 1,400 | |||||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plan settlement resulting from lump sum payments from our Canadian pension plan | 0 | 0 | ||||||
Service cost | 1,680 | 13,677 | 13,558 | |||||
Interest cost | 40,875 | 49,501 | 51,181 | |||||
Expected return on plan assets | (61,939) | (68,709) | (64,023) | |||||
Amortization of prior service cost | 250 | 307 | 274 | |||||
Mark to market adjustment included in cost of operations | 31,932 | 41,574 | 99,090 | |||||
Net periodic benefit cost (benefit) | 12,798 | 36,350 | 100,080 | |||||
Other Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Plan settlement resulting from lump sum payments from our Canadian pension plan | 0 | 0 | ||||||
Service cost | 23 | 24 | 18 | |||||
Interest cost | 897 | 1,143 | 1,087 | |||||
Expected return on plan assets | 0 | 0 | 0 | |||||
Amortization of prior service cost | 0 | 0 | 0 | |||||
Mark to market adjustment included in cost of operations | (7,822) | (1,364) | 2,245 | |||||
Net periodic benefit cost (benefit) | (6,902) | (197) | 3,350 | |||||
Cost of operations | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Mark to market adjustment included in cost of operations | 21,208 | 44,307 | 94,204 | |||||
Selling, General and Administrative Expenses | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Mark to market adjustment included in cost of operations | 2,902 | (4,097) | 7,233 | |||||
Other-net | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Mark to market adjustment included in cost of operations | $ 0 | $ 0 | $ (102) |
Pension Plans and Postretire135
Pension Plans and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 1,200 | ||||||||
Curtailment charge in our US pension plan resulting from the closure of our West Point, MS manufacturing facility | $ 1,800 | ||||||||
Mark to market adjustment included in selling, general and administrative expenses | $ (6,390) | $ 500 | $ 30,000 | 27,500 | |||||
Q4 OPEB MTM gain Medical plan | 7,200 | ||||||||
Mark to market adjustment included in cost of operations | $ (24,110) | $ (40,210) | $ (24,100) | (24,110) | $ (40,210) | $ (101,335) | |||
Diamond Power UK Q4 MTM | 2,100 | ||||||||
Canada Q4 YTD MTM adjustments | 3,900 | ||||||||
Canada Q2 Remeasurement | $ 2,900 | ||||||||
Actuarial gain - Medical Plan | 6,600 | ||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 300 | ||||||||
Commercial Operations Defined Benefit Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Mark to market adjustment included in selling, general and administrative expenses | 1,400 | ||||||||
Pension Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | |||||||
Curtailment charge in our US pension plan resulting from the closure of our West Point, MS manufacturing facility | 266 | 0 | |||||||
Mark to market adjustment included in cost of operations | $ (31,932) | $ (41,574) | $ (99,090) | ||||||
Foreign Pension Plan [Member] | Equity Securities [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Investment Strategies, Investment Fund Category | 0.44 | 0.48 | |||||||
Foreign Pension Plan [Member] | Fixed Income Investments [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Investment Strategies, Investment Fund Category | 0.55 | 0.51 |
Pension Plans and Postretire136
Pension Plans and Postretirement Benefits Curtailments and Settlements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Curtailments and Settlements [Abstract] | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 10,800 |
Pension Plans and Postretire137
Pension Plans and Postretirement Benefits Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.89% | |
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 8.50% | 8.50% |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 4.50% | 4.50% |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,024 | 2,024 |
Pension Plan [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Methodology and Source Data | 0.0413 | .0398 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 2.40% | 2.51% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.25% | 3.99% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.70% | 6.98% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.40% | 2.56% |
Other Postretirement Benefit Plan [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate Support, Methodology and Source Data | 0.0366 | .0341 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.66% | 3.40% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 0.00% | 0.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 0.00% | 0.00% |
Geographic Distribution, Domestic [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Investment Goals | 0.27 | 0.096 |
Geographic Distribution, Foreign [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Investment Goals | 0.23 | 0.122 |
Bonds [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Investment Goals | 0.5 | 0.781 |
Domestic Destination [Member] | ||
Pension Benefits Plan [Abstract] | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 93.00% |
Pension Plans and Postretire138
Pension Plans and Postretirement Benefits Investment Goals (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of investment return on domestic plan assets | 9.00% | (1.90%) |
Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 32.00% | 32.55% |
Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 38.00% | 36.80% |
US Government Agencies Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 20.00% | 18.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 7.00% | 6.76% |
Partnership Interest [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 0.00% | 0.00% |
Derivative [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 3.71% |
Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 1.00% |
Geographic Distribution, Domestic [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Goals | 0.27 | 0.096 |
Geographic Distribution, Foreign [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Goals | 0.23 | 0.122 |
Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Goals | 0.5 | 0.781 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | .55 | |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Target Allocation Percentage | .45 | |
Foreign Pension Plan [Member] | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Strategies, Investment Fund Category | 0.55 | 0.51 |
Foreign Pension Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Strategies, Investment Fund Category | 0.44 | 0.48 |
Foreign Pension Plan [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Investment Strategies, Investment Fund Category | 0.01 | 0.01 |
Pension Plans and Postretire139
Pension Plans and Postretirement Benefits Fair value of investments 2016 (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed Income Funds [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | $ 321,847 | $ 347,269 |
Fixed Income Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 0 | 0 |
Fixed Income Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 321,847 | 347,269 |
Equity Funds [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 83,441 | 79,761 |
Equity Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 78,268 | 79,761 |
Equity Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 5,173 | 0 |
Mutual Fund [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 349,348 | 330,216 |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 4,609 | 0 |
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 344,739 | 330,216 |
US Treasury and Government [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 156,599 | 155,975 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 156,599 | 155,975 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 11,630 | 9,809 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 9,391 | 539 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 2,239 | 9,270 |
Assets, Total [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 922,865 | 923,030 |
Assets, Total [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | 248,867 | 236,275 |
Assets, Total [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment, Fair Value | $ 673,998 | $ 686,755 |
Pension Plans and Postretire140
Pension Plans and Postretirement Benefits Level 3 instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 | $ 51,108 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 1,266 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | $ 0 | $ (53,417) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings, Description | 0 | 3,915 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | $ 0 | $ (2,872) |
Pension Plans and Postretire141
Pension Plans and Postretirement Benefits Cash flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
United States Pension Plan of US Entity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 14,607 |
Expected benefit payment 2017 | 68,492 |
Expected benefit payment 2018 | 69,965 |
Expected benefit payment 2019 | 71,223 |
Expected benefit payment 2020 | 72,267 |
Expected benefit payment 2021 | 72,857 |
Expected benefit payment 2022-2026 | 363,406 |
United States Postretirement Benefit Plan of US Entity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 2,100 |
Expected benefit payment 2017 | 1,593 |
Expected benefit payment 2018 | 1,459 |
Expected benefit payment 2019 | 1,330 |
Expected benefit payment 2020 | 859 |
Expected benefit payment 2021 | 797 |
Expected benefit payment 2022-2026 | 3,148 |
Foreign Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 3,127 |
Expected benefit payment 2017 | 2,769 |
Expected benefit payment 2018 | 2,835 |
Expected benefit payment 2019 | 2,977 |
Expected benefit payment 2020 | 3,050 |
Expected benefit payment 2021 | 3,099 |
Expected benefit payment 2022-2026 | 17,737 |
Foreign Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | 155 |
Expected benefit payment 2017 | 155 |
Expected benefit payment 2018 | 155 |
Expected benefit payment 2019 | 155 |
Expected benefit payment 2020 | 157 |
Expected benefit payment 2021 | 151 |
Expected benefit payment 2022-2026 | $ 591 |
Pension Plans and Postretire142
Pension Plans and Postretirement Benefits Defined contribution plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.6 | ||
Canada Defined Contribution [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.4 | $ 0.1 | |
Thrift [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 13.4 | 8.9 | 7.4 |
MEGTEC Union [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 0.3 | 0.3 | 0.3 |
MEGTEC Non-union [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 1.1 | $ 1.1 | $ 1.2 |
Pension Plans and Postretire143
Pension Plans and Postretirement Benefits Multi-employer plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Multiemployer Plans [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 600 | ||
Multiemployer Plan, Period Contributions | $ 21,000 | $ 24,900 | 20,600 |
90 days written notice | 90 days | ||
Multiemployer Plans, Period Contributions, Significance of Contributions | 5.00% | ||
Boilermaker-Blacksmith National Pension Trust [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 17,755 | 20,300 | 16,000 |
MEGTEC Non-union [Member] | |||
Multiemployer Plans [Line Items] | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 1,100 | 1,100 | 1,200 |
Other Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plan, Period Contributions | $ 3,161 | $ 4,600 | $ 4,600 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Standard and Extended Product Warranty Accrual, Increase (Decrease) for Preexisting Warranties | $ (10,855) | $ (982) | $ (4,052) |
Derivative Financial Instrum145
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net gains deferred on derivative financial instruments in accumulated other comprehensive income (loss) | $ 800,000 | $ 1,800,000 |
Cash Flow Hedging | Designated as Hedging Instrument | FX Forward Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount of foreign currency forward contracts | $ 177,400,000 |
Derivative Financial Instrum146
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 800,000 | $ 1,800,000 | |
Designated as Hedging Instrument | FX Forward Contracts | Accounts receivable-other | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 3,805,000 | 1,545,000 | |
Designated as Hedging Instrument | FX Forward Contracts | Other assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 665,000 | 688,000 | |
Designated as Hedging Instrument | FX Forward Contracts | Accounts payable | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 1,012,000 | 17,000 | |
Derivatives Not Designated as Hedges | FX Forward Contracts | Accounts receivable-other | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 105,000 | 72,000 | |
Derivatives Not Designated as Hedges | FX Forward Contracts | Accounts payable | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | 403,000 | 101,000 | |
Derivatives Not Designated as Hedges | FX Forward Contracts | Other Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability | $ 0 | $ 7,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | FX Forward Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of foreign currency forward contracts | $ 177,400,000 |
Derivative Financial Instrum147
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Detail) - FX Forward Contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | |
Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income | $ 2,208 | $ 2,920 | |
Designated as Hedging Instrument | Cash Flow Hedging | Revenues | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion of gain (loss) reclassified from accumulated other comprehensive income into earnings | 4,624 | 546 | |
Designated as Hedging Instrument | Cash Flow Hedging | Cost of operations | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion of gain (loss) reclassified from accumulated other comprehensive income into earnings | 195 | 155 | |
Designated as Hedging Instrument | Cash Flow Hedging | Other-net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion of gain (loss) reclassified from accumulated other comprehensive income into earnings | (1,221) | (24) | |
Portion of gain (loss) recognized in income that is excluded from effectiveness testing | 4,518 | 252 | |
Derivatives Not Designated as Hedges | Other-net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income | (872) | 206 | |
Other Accounts Receivable [Member] | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Asset | 3,805 | 1,545 | |
Other Accounts Receivable [Member] | Derivatives Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Asset | 105 | 72 | |
Other Assets [Member] | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Asset | 665 | 688 | |
Other Liabilities [Member] | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Liability | 0 | $ 213 | |
Accounts Payable [Member] | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Liability | 1,012 | 17 | |
Accounts Payable [Member] | Derivatives Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Liability | $ 403 | 101 | |
Other Liabilities [Member] | Derivatives Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Liability | $ 0 | $ 7 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | $ 17,991 | $ 5,089 |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 6,734 | 3,996 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 2,251 | |
Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,152 | 1,093 |
Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 750 | |
US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 7,104 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 7,854 | 0 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 750 | |
Fair Value, Inputs, Level 1 [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 7,104 | |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Fair Value, Inputs, Level 3 [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 10,137 | 5,089 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 6,734 | 3,996 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 2,251 | |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 1,152 | 1,093 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities measured at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | FX Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of foreign currency forward contracts | $ 2,940 | $ 2,186 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 2 [Member] | FX Forward Contracts | ||
Fair Values Of Financial Instruments [Line Items] | ||
Fair value of foreign currency forward contracts | $ 2,940 | $ 2,186 |
Share Repurchases (Details)
Share Repurchases (Details) - Common Stock - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Aug. 04, 2015 | |
Class of Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | $ 100,000,000 | ||
Treasury Stock, Shares, Repurchased | 1.3 | 1.6 | |
Treasury Stock, Value, Repurchased | $ 24,300,000 | $ 75,700,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||
Restructuring Charges | $ 40,807 | $ 14,946 | $ 20,183 | |
The Babcock & Wilcox Company | ||||
Related Party Transaction [Line Items] | ||||
Sales to former Parent | 911 | 5,896 | ||
Corporate administrative expense | $ 35,343 | $ 73,329 | ||
Employee Severance [Member] | ||||
Related Party Transaction [Line Items] | ||||
Restructuring Charges | $ 14,100 |
Related Party Transactions -152
Related Party Transactions - Schedule of Change in Our Former Parent's Historical Investment Due to Net Transfers (to) from Former Parent (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 144,780 | $ 0 | $ 127,705 |
Cash pooling and general financing activities | $ (246) | (491) | 100 |
The Babcock & Wilcox Company | |||
Related Party Transaction [Line Items] | |||
Sales to former Parent | 911 | 5,896 | |
Corporate administrative expenses | 35,343 | 73,329 | |
Income tax allocation | 11,872 | 3,378 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 127,704 | |
Cash pooling and general financing activities | (91,015) | 14,261 | |
Cash contribution received at spin-off | 125,300 | 0 | |
Net transfer from former Parent per statement of cash flows | 80,589 | 213,137 | |
Net ransfers of assets and liabilities with related party | 44,706 | (62) | |
Distribution of Operating Segment to Related Party | (47,839) | 0 | |
Proceeds From Payment to Form Parent per Stockholders Equity Statement | $ 77,456 | $ 213,075 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
The Babcock & Wilcox Company | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Corporate allocation from former parent | $ 2.7 | $ 5.3 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | NE Segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets and liabilities distributed | $ 47.8 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Financial Information Regarding Results of Operations (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 2,803 | $ (14,272) | |
NE Segment | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenues | $ 53,064 | 103,690 | ||
Income (loss) before income tax expense | 3,358 | (19,072) | ||
Income tax expense (benefit) | 555 | (4,800) | ||
Income (loss) from discontinued operations, net of tax | $ 2,803 | $ (14,272) |
Operating Leases (Details)
Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 8.3 | $ 13.5 | $ 6.9 |
Operating Leases Future Minimum
Operating Leases Future Minimum Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Leased Assets [Line Items] | |||||
Operating Leases, Future Minimum Payments Receivable, Current | $ 5,224 | ||||
Operating Leases, Future Minimum Payments Due | $ 1,239 | $ 2,433 | $ 3,833 | $ 425 | |
Operating Leases, Future Minimum Payments Receivable, Thereafter | $ 35 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Actuarial Gain (Loss), Mark to Market Adjustment | $ (24,110) | $ (40,210) | $ (24,100) | $ (24,110) | $ (40,210) | $ (101,335) | ||||||
Defined Benefit Plan, MTM adjustment excluding curtailment and settlements | (6,390) | $ 500 | $ 30,000 | 27,500 | ||||||||
Revenues | 379,984 | 410,955 | 383,208 | $ 404,116 | 502,678 | $ 419,977 | $ 437,485 | $ 397,155 | 1,578,263 | 1,757,295 | 1,486,029 | |
Gross Profit | (848) | 73,757 | 26,052 | 80,156 | 64,954 | 77,922 | 81,884 | 83,397 | (179,117) | (308,157) | (219,033) | |
Operating Income (Loss) | (58,587) | 11,133 | (72,585) | 17,266 | (9,973) | 9,632 | 4,859 | 17,343 | (102,773) | 21,861 | (37,975) | |
Income (Loss) from Equity Method Investments | 11,553 | 2,827 | (616) | 2,676 | (185) | 1,047 | 967 | (2,071) | 16,440 | (242) | 8,681 | |
Net income (loss) attributable to shareholders | $ (71,560) | $ 8,894 | $ (63,490) | $ 10,507 | $ (5,204) | $ 6,169 | $ 5,487 | $ 12,689 | $ (115,649) | $ 19,141 | $ (26,528) | |
Continuing operations (usd per share) | $ (1.47) | $ 0.18 | $ (1.25) | $ 0.20 | $ (0.10) | $ 0.11 | $ 0.08 | $ 0.21 | $ (2.31) | $ 0.31 | $ (0.23) | |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | 0 | 0 | 0 | 0 | 0.02 | 0.03 | ||||
Income (Loss) from Continuing Operations, Per Diluted Share | (1.47) | 0.18 | (1.25) | 0.20 | (0.10) | 0.11 | 0.08 | 0.21 | $ (2.31) | $ 0.30 | $ (0.23) | |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.02 | $ 0.03 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Jul. 01, 2016USD ($) |
Subsequent Event [Line Items] | |
Payments to acquire business, US Dollars | $ 172.1 |
Payments to Acquire SPIG | $ 155 |
Subsequent Events Universal Acq
Subsequent Events Universal Acquisition (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Acquired Business Annual Sales | $ 80,000,000 |
Acquisition employee number | 460 |
Payment to acquire business | $ 55,000,000 |