Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Babcock & Wilcox Enterprises, Inc. | |
Entity Central Index Key | 0001630805 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Common Stock | 49,312,405 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Income Statement [Abstract] | |||||
Revenues | $ 135,397 | $ 248,115 | $ 283,951 | $ 480,051 | |
Costs and expenses: | |||||
Cost of operations | 102,907 | 203,831 | 217,535 | 404,898 | |
Selling, general and administrative expenses | 34,579 | 42,076 | 72,187 | 84,475 | |
Advisory fees and settlement costs | 1,989 | 4,778 | 6,228 | 18,388 | |
Restructuring activities | 2,392 | 936 | 4,343 | 7,015 | |
Research and development costs | 1,231 | 710 | 2,572 | 1,453 | |
Loss (gain) on asset disposals, net | 2 | 42 | (913) | 42 | |
Total costs and expenses | 143,100 | 252,373 | 301,952 | 516,271 | |
Operating loss | (7,703) | (4,258) | (18,001) | (36,220) | |
Other (expense) income: | |||||
Interest expense | (15,482) | (26,837) | (37,573) | (37,971) | |
Interest income | 223 | 201 | 263 | 760 | |
Loss on debt extinguishment | (6,194) | (3,969) | (6,194) | (3,969) | |
Loss on sale of business | (108) | (3,601) | (108) | (3,601) | |
Benefit plans, net | 7,450 | 2,471 | 14,986 | 5,501 | |
Foreign exchange | 7,112 | 9,506 | (2,214) | (647) | |
Other – net | (2,586) | 43 | (2,792) | 463 | |
Total other expense | (9,585) | (22,186) | (33,632) | (39,464) | |
Loss before income tax (benefit) expense | (17,288) | (26,444) | (51,633) | (75,684) | |
Income tax expense | 845 | 1,891 | 35 | 2,517 | |
Loss from continuing operations | (18,133) | (28,335) | (51,668) | (78,201) | |
(Loss) income from discontinued operations, net of tax | (113) | 694 | 1,800 | 694 | |
Net loss | (18,246) | (27,641) | (49,868) | (77,507) | |
Net income attributable to non-controlling interest | 142 | 1 | 238 | 102 | |
Net loss attributable to stockholders | $ (18,104) | $ (27,640) | $ (49,630) | $ (77,405) | |
Basic and diluted loss per share - continuing operations (in dollars per share) | $ (0.39) | $ (1.54) | $ (1.10) | $ (4.26) | |
Basic and diluted earnings per share - discontinued operations (in dollars per share) | 0 | 0.04 | 0.04 | 0.04 | |
Basic and diluted loss per share (in dollars per share) | $ (0.39) | $ (1.50) | $ (1.06) | $ (4.22) | |
Shares used in the computation of (loss) earnings per share: | |||||
Basic and diluted (in shares) | [1] | 46,853 | 18,366 | 46,628 | 18,362 |
[1] | Basic and diluted shares at June 30, 2019 reflect the bonus element for the 2019 Rights Offering on July 23, 2019 and the one-for-ten reverse stock split on July 24, 2019. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (18,246) | $ (27,641) | $ (49,868) | $ (77,507) |
Other comprehensive income (loss): | ||||
Currency translation adjustments (CTA) | (4,095) | (7,979) | (1,715) | 2,281 |
Reclassification of CTA to net loss | 0 | 3,176 | 0 | 3,176 |
Derivative financial instruments: | ||||
Unrealized losses on derivative financial instruments | 0 | (189) | 0 | (1,367) |
Derivative financial instrument (losses) gains reclassified into net loss | 0 | (22) | 0 | 202 |
Benefit obligations: | ||||
Amortization of benefit plan benefits | (246) | (514) | (492) | (870) |
Other comprehensive (loss) income | (4,341) | (5,528) | (2,207) | 3,422 |
Total comprehensive loss | (22,587) | (33,169) | (52,075) | (74,085) |
Comprehensive income attributable to non-controlling interest | 105 | 307 | 259 | 429 |
Comprehensive loss attributable to stockholders | $ (22,482) | $ (32,862) | $ (51,816) | $ (73,656) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents | $ 36,815 | $ 43,772 |
Restricted cash and cash equivalents | 11,301 | 13,169 |
Accounts receivable – trade, net | 112,658 | 142,201 |
Accounts receivable – other | 27,585 | 23,263 |
Contracts in progress | 86,091 | 91,579 |
Inventories | 61,390 | 63,103 |
Other current assets | 25,292 | 27,044 |
Current assets held for sale | 6,726 | 8,089 |
Total current assets | 367,858 | 412,220 |
Net property, plant and equipment, and finance lease | 90,577 | 97,053 |
Goodwill | 47,020 | 47,160 |
Intangible assets | 23,665 | 25,300 |
Right-of-use assets | 11,367 | 12,498 |
Other assets | 30,170 | 24,966 |
Non-current assets held for sale | 7,296 | 7,322 |
Total assets | 577,953 | 626,519 |
Revolving credit facilities | 0 | 179,000 |
Last out term loans | 0 | 103,953 |
Financing lease liabilities | 820 | (38) |
Accounts payable | 73,995 | 109,913 |
Accrued employee benefits | 17,561 | 18,256 |
Advance billings on contracts | 60,977 | 75,287 |
Accrued warranty expense | 28,491 | 33,376 |
Operating lease liabilities | 4,280 | 4,323 |
Other accrued liabilities | 80,424 | 68,848 |
Current liabilities held for sale | 7,537 | 9,538 |
Total current liabilities | 274,085 | 602,494 |
Revolving credit facilities | 164,700 | 0 |
Last out term loans | 173,330 | 0 |
Pension and other accumulated postretirement benefit liabilities | 243,829 | 259,272 |
Non-current finance lease liabilities | 30,140 | 30,454 |
Non-current operating lease liabilities | 7,374 | 8,388 |
Other non-current liabilities | 23,149 | 20,850 |
Non-current liabilities held for sale | 46 | 0 |
Total liabilities | 916,653 | 921,458 |
Commitments and contingencies | ||
Stockholders' deficit: | ||
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 49,312 and 46,374 at June 30, 2020 and December 31, 2019, respectively | 4,732 | 4,699 |
Capital in excess of par value | 1,150,999 | 1,142,614 |
Treasury stock at cost, 619 and 616 shares at June 30, 2020 and December 31, 2019, respectively | (105,717) | (105,707) |
Accumulated deficit | (1,389,518) | (1,339,888) |
Accumulated other comprehensive income | (281) | 1,926 |
Stockholders' deficit attributable to shareholders | (339,785) | (296,356) |
Non-controlling interest | 1,085 | 1,417 |
Total stockholders' deficit | (338,700) | (294,939) |
Total liabilities and stockholders' deficit | $ 577,953 | $ 626,519 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 49,312,000 | 46,374,000 |
Common stock, outstanding (in shares) | 49,312,000 | 46,374,000 |
Treasury stock, at cost (in shares) | 619,000 | 616,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | |
Beginning balance (in shares) at Dec. 31, 2018 | [1] | 16,879,000 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | $ (277,297) | $ 1,748 | $ 1,047,062 | $ (105,590) | $ (1,217,914) | $ (11,432) | $ 8,829 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (49,866) | (49,765) | (101) | |||||
Currency translation adjustments | 10,239 | 10,260 | (21) | |||||
Derivative financial instruments | (954) | (954) | ||||||
Defined benefit obligations | (356) | (356) | ||||||
Stock-based compensation charges (in shares) | [1] | 7,000 | ||||||
Stock-based compensation charges | 382 | 404 | (22) | |||||
Ending balance (in shares) at Mar. 31, 2019 | [1] | 16,886,000 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2019 | (317,852) | $ 1,748 | 1,047,466 | (105,612) | (1,267,679) | (2,482) | 8,707 | |
Beginning balance (in shares) at Dec. 31, 2018 | [1] | 16,879,000 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | (277,297) | $ 1,748 | 1,047,062 | (105,590) | (1,217,914) | (11,432) | 8,829 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (77,507) | |||||||
Ending balance (in shares) at Jun. 30, 2019 | [1] | 16,888,000 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | (343,035) | $ 1,748 | 1,055,759 | (105,613) | (1,295,319) | (8,010) | 8,400 | |
Beginning balance (in shares) at Mar. 31, 2019 | [1] | 16,886,000 | ||||||
Stockholders' equity, beginning balance at Mar. 31, 2019 | (317,852) | $ 1,748 | 1,047,466 | (105,612) | (1,267,679) | (2,482) | 8,707 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (27,641) | (27,640) | (1) | |||||
Currency translation adjustments | (5,109) | (4,803) | (306) | |||||
Derivative financial instruments | (211) | (211) | ||||||
Defined benefit obligations | (514) | (514) | ||||||
Stock-based compensation charges (in shares) | [1] | 2,000 | ||||||
Stock-based compensation charges | 204 | 205 | (1) | |||||
Issuance of beneficial conversion option of Last Out Term Loan Tranche A-3 | 2,022 | 2,022 | ||||||
Warrants | 6,066 | 6,066 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | [1] | 16,888,000 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2019 | $ (343,035) | $ 1,748 | 1,055,759 | (105,613) | (1,295,319) | (8,010) | 8,400 | |
Beginning balance (in shares) at Dec. 31, 2019 | 46,374,000 | 46,374,000 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ (294,939) | $ 4,699 | 1,142,614 | (105,707) | (1,339,888) | 1,926 | 1,417 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (31,622) | (31,526) | (96) | |||||
Currency translation adjustments | 2,322 | 2,380 | (58) | |||||
Defined benefit obligations | (246) | (246) | ||||||
Stock-based compensation charges (in shares) | 33,000 | |||||||
Stock-based compensation charges | 871 | $ 4 | 876 | (9) | ||||
Dividends to non-controlling interest | (36) | (36) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 46,407,000 | |||||||
Stockholders' equity, ending balance at Mar. 31, 2020 | $ (323,650) | $ 4,703 | 1,143,490 | (105,716) | (1,371,414) | 4,060 | 1,227 | |
Beginning balance (in shares) at Dec. 31, 2019 | 46,374,000 | 46,374,000 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ (294,939) | $ 4,699 | 1,142,614 | (105,707) | (1,339,888) | 1,926 | 1,417 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | $ (49,868) | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 49,312,000 | 49,312,000 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2020 | $ (338,700) | $ 4,732 | 1,150,999 | (105,717) | (1,389,518) | (281) | 1,085 | |
Beginning balance (in shares) at Mar. 31, 2020 | 46,407,000 | |||||||
Stockholders' equity, beginning balance at Mar. 31, 2020 | (323,650) | $ 4,703 | 1,143,490 | (105,716) | (1,371,414) | 4,060 | 1,227 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (18,246) | (18,104) | (142) | |||||
Currency translation adjustments | (4,058) | (4,095) | 37 | |||||
Defined benefit obligations | (246) | (246) | ||||||
Stock-based compensation charges | 922 | 923 | (1) | |||||
Equitized guarantee fee payment (in shares) | 1,713,000 | |||||||
Equitized guarantee fee payment | 3,900 | $ 17 | 3,883 | |||||
Equitized Last Out Term Loan interest payment (in shares) | 1,192,000 | |||||||
Equitized Last Out Term Loan interest payment | 2,715 | $ 12 | 2,703 | |||||
Dividends to non-controlling interest | $ (37) | (37) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 49,312,000 | 49,312,000 | ||||||
Stockholders' equity, ending balance at Jun. 30, 2020 | $ (338,700) | $ 4,732 | $ 1,150,999 | $ (105,717) | $ (1,389,518) | $ (281) | $ 1,085 | |
[1] | Common stock shares reflect the one-for-ten reverse stock split on July 24, 2019. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (49,868) | $ (77,507) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of long-lived assets | 8,239 | 13,842 |
Amortization of deferred financing costs, debt discount and payment-in-kind interest | 14,785 | 23,115 |
Amortization of guaranty fee | 236 | 0 |
Non-cash operating lease expense | 2,403 | 2,861 |
Loss on sale of business | 108 | 3,601 |
Loss on debt extinguishment | 6,194 | 3,969 |
(Gains) losses on asset disposals and impairments | (913) | 42 |
Benefit from deferred income taxes, including valuation allowances | (793) | (776) |
Mark to market (gains) losses and prior service cost amortization for pension and postretirement plans | (492) | 390 |
Stock-based compensation, net of associated income taxes | 1,803 | 609 |
Changes in assets and liabilities: | ||
Accounts receivable | 36,105 | (5,765) |
Contracts in progress | 6,847 | (8,384) |
Advance billings on contracts | (14,957) | (45,187) |
Inventories | (570) | (3,951) |
Income taxes | (3,141) | 1,295 |
Accounts payable | (37,347) | (31,688) |
Accrued and other current liabilities | 15,277 | (15,670) |
Accrued contract loss | (4,432) | (45,779) |
Pension liabilities, accrued postretirement benefits and employee benefits | (16,946) | (110) |
Other, net | (11,860) | (7,918) |
Net cash used in operating activities | (49,322) | (193,011) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (1,675) | (434) |
Proceeds from sale of business | 8,000 | 7,445 |
Purchases of available-for-sale securities | (13,668) | (4,187) |
Sales and maturities of available-for-sale securities | 10,835 | 2,880 |
Other, net | 773 | (462) |
Net cash from investing activities | 4,265 | 5,242 |
Cash flows from financing activities: | ||
Shares of our common stock returned to treasury stock | (10) | (23) |
Costs related to rights offering | 0 | (682) |
Debt issuance costs | (10,356) | (14,400) |
Other, net | 326 | 0 |
Net cash from financing activities | 35,660 | 175,140 |
Effects of exchange rate changes on cash | 572 | (3,280) |
Net decrease in cash, cash equivalents and restricted cash | (8,825) | (15,909) |
Cash, cash equivalents and restricted cash, beginning of period | 56,941 | 60,279 |
Cash, cash equivalents and restricted cash, end of period | 48,116 | 44,370 |
U.S. Revolving Credit Facility | ||
Cash flows from financing activities: | ||
Borrowings under credit facilities | 94,200 | 179,700 |
Repayments of lines of credit | (108,500) | (140,200) |
Last Out Term Loan Tranche A-2 | ||
Cash flows from financing activities: | ||
Borrowings under credit facilities | 0 | 10,000 |
Last Out Term Loan Tranche A-3 | ||
Cash flows from financing activities: | ||
Borrowings under credit facilities | 0 | 141,350 |
Last Out Term Loan Tranche A-4 And Tranche A-6 | ||
Cash flows from financing activities: | ||
Borrowings under credit facilities | 60,000 | 0 |
Foreign Revolvers | ||
Cash flows from financing activities: | ||
Repayments of lines of credit | $ 0 | $ (605) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission ("SEC") instructions for interim financial information, and should be read in conjunction with our Annual Report. We have included all adjustments, in the opinion of management, consisting only of normal, recurring adjustments, necessary for a fair presentation of the interim financial statements. We have eliminated all intercompany transactions and accounts. We present the notes to our Condensed Consolidated Financial Statements on the basis of continuing operations, unless otherwise stated. Going Concern Considerations The accompanying Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2019 and March 30, 2020, the date we issued our 2019 Consolidated Financial Statements, we were in compliance with the terms of the agreements governing our debt and no events of default existed. However, the Company’s uncertainty regarding liquidity and the ability to refinance our credit agreement (as amended, the "Amended Credit Agreement") by May 11, 2020 represented conditions and events that raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the 2019 Consolidated Financial Statements were issued, as we were not able to assert that it was probable that our plans when fully implemented would alleviate the events and conditions. However, more fully explained in Note 13 and Note 14 below, on May 14, 2020, among other things, the Company refinanced and extended the term of its Revolving Credit Agreement to June 30, 2022. Additionally, as described below, the Company took other actions all of which reduced the substantial doubt of the Company’s ability to be considered a going concern. Since January 1, 2020 and through the issuance of our 2019 Consolidated Financial Statements on March 30, 2020, we took the following actions, among others, and have successfully implemented, or are in the process of implementing the following: • entered into several amendments and waivers to avoid default and improve our liquidity under the terms of our Amended Credit Agreement as described in Note 13 and Note 14 , the most recent of which were Amendments No. 19, No. 20 and No. 21 dated January 17, 2020, January 31, 2020 and March 27, 2020, respectively; • on January 31, 2020, received $30.0 million of additional gross borrowings from B. Riley Financial, Inc. (together with its affiliates, "B. Riley") under a new Tranche A-4 of Last Out Term Loans, as described in in Note 14 ; • on January 31, 2020, received an incremental Tranche A-5 of Last Out Term Loan commitment to be used in the event certain customer letters of credit are drawn, as described in Note 14 ; • on March 12, 2020, filed for waiver of required minimum contributions to the U.S. Pension Plan as described in Note 12 , that if granted, would reduce cash funding requirements in 2020 by approximately $25.0 million and would increase contributions over the following five years. The Company cannot make any assurances that such waiver will be granted; and • on March 17, 2020, we fully settled the remaining escrow associated with the sale of Palm Beach Resource Recovery Corporation ("PBRRC") and received $4.5 million in cash. In addition to the actions taken above, subsequent to March 30, 2020 we have taken the following actions: • on April 6, 2020, we fully settled the remaining escrow associated with the sale of the MEGTEC and Universal businesses and received $3.5 million in cash; • on May 14, 2020, the Company entered into an agreement with its lenders amending and restating the Amended Credit Agreement, among the Company, Bank of America, N.A., as administrative agent (the "Administrative Agent") and lender, and the other lenders party thereto. The credit agreement, as amended and restated (the “A&R Credit Agreement”), among other amendments, extends the maturity date on the revolving credit facility to June 30, 2022 and the maturity date on the last out term loans (the "Last Out Term Loans") to December 30, 2022. Under the A&R Credit Agreement, B. Riley has committed to provide the Company with up to $70.0 million of additional Last Out Term Loans. B. Riley has entered into a limited guaranty (the "B. Riley Guaranty") which provides for the guarantee of all of the Company's obligations with respect to the revolving credit facility (other than with respect to letters of credit and contingent obligations), including the obligation to repay outstanding revolving credit loans and pay earned interest and fees. For more information regarding the A&R Credit Agreement and the additional last out term loans being provided by B. Riley, see Note 13 and Note 14 ; and • on May 14, 2020, we received $30.0 million of additional gross borrowings from B. Riley under a new Tranche A- 6 of Last Out Term Loans, as described in Note 14 . In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China and has subsequently spread globally. This global pandemic has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world. Our business has been adversely impacted by the measures taken and restrictions imposed in the countries in which we operate and by local governments and others to control the spread of this virus. These measures and restrictions have varied widely and have been subject to significant changes from time to time depending on the changes in the severity of the virus in these countries and localities. These restrictions, including travel and curtailment of other activity negatively impact our ability to conduct business. In some countries restrictions have lessened, in others they have lessened and then increased. These varying and changing events have caused many of the projects we anticipated to begin in 2020 to be delayed to later in 2020 and others to be delayed further into 2021 and 2022. Also, we have experienced and continue to experience variations in the levels of restrictions and expect such restrictions to continue to change depending on the severity of the virus in various locations around the world. Many customers and projects require B&W's employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into next year and beyond. Additionally, out of concern for our employees, even where restrictions permit employees to return to our offices and worksites, we have advised those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets. Beginning in April 2020, as part of the Company’s response to the impact of the COVID-19 pandemic on its business, the Company has taken the following cash conservation and cost reduction measures which include: • temporary unpaid furloughs for certain employees: • temporarily deferring the monthly fee paid to BRPI Executive Consulting, LLC for the services of our Chief Executive Officer by 50% ; • deferrals of the base salaries of our Chief Strategy Officer by 50% , Chief Financial Officer by 30% and our Senior Vice President of The Babcock & Wilcox Company by 30% ; • suspension of our 401(k) match for U.S. employees for the remainder of 2020; • approval by the Company’s Board for a temporary deferral of 50% of the cash compensation payable to non-employee directors under the Company’s board compensation program to be paid during the first quarter of 2021; • negotiating temporary rent payment deferrals related to leased facilities located in the U.S., Canada, Italy and Denmark; • utilizing options for government loans and programs in the U.S. and abroad that are appropriate and available; and • we elected to defer, in accordance with the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") signed into law in March 2020, the contribution payments of $5.5 million each for the 2020 Plan year that would have been made on April 15, 2020 and July 15, 2020, respectively, related to our Pension Plan. Based upon the terms of the A&R Credit Agreement and the cash conservation and cost reduction measures taken to date, the Company is projecting sufficient liquidity to fund future operations and to meet its obligations as they become due for at least one year following the date that these Condensed Consolidated Financial Statements are issued. As a result, the Company has concluded that conditions and events, considered in the aggregate, no longer raise substantial doubt about the entity’s ability to continue as a going concern. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share of our common stock, net of non-controlling interest: Three months ended June 30, Six months ended June 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Loss from continuing operations $ (17,991 ) $ (28,334 ) $ (51,430 ) $ (78,099 ) Loss (income) from discontinued operations, net of tax (113 ) 694 1,800 694 Net loss attributable to stockholders $ (18,104 ) $ (27,640 ) $ (49,630 ) $ (77,405 ) Weighted average shares used to calculate basic and diluted earnings per share (1) 46,853 18,366 46,628 18,362 Basic and diluted loss per share - continuing operations $ (0.39 ) $ (1.54 ) $ (1.10 ) $ (4.26 ) Basic and diluted earnings per share - discontinued operations — 0.04 0.04 0.04 Basic and diluted loss per share $ (0.39 ) $ (1.50 ) $ (1.06 ) $ (4.22 ) (1) Weighted average shares used to calculate basic and diluted earnings (loss) per share reflect the bonus element for the 2019 Rights Offering on July 23, 2019 as described below and the one-for-ten reverse stock split on July 24, 2019 In July 2019, the Company completed the 2019 Rights Offering to existing common stockholders. Because the rights issuance was offered to all existing stockholders at an exercise price that was less than the fair value of the stock, the weighted average shares outstanding and basic and diluted earnings (loss) per share were adjusted retroactively to reflect the bonus element of the rights offering for all periods presented by a factor of 1.0875 . Weighted average shares, prior to giving effect to the 2019 Rights Offering, in the three and six months ended June 30, 2019 was 16,888 and 16,884 , respectively. Because we incurred a net loss in the three and six months ended June 30, 2020 and 2019 , basic and diluted shares are the same. If we had net income in the three and six months ended June 30, 2020 , diluted shares would include an additional 33.3 thousand and 216.1 thousand shares, respectively. If we had net income in the three and six months ended June 30, 2019 , diluted shares would include an additional 25.7 thousand and 35.8 thousand shares, respectively. We excluded 1.5 million and 0.3 million shares related to stock options from the diluted share calculation for the three months ended June 30, 2020 and 2019 , respectively, because their effect would have been anti-dilutive. We excluded 1.7 million and 0.3 million shares related to stock options from the diluted share calculation for the six months ended June 30, 2020 and 2019 , respectively, because their effect would have been anti-dilutive. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Our operations are assessed based on three reportable segments summarized as follows: • Babcock & Wilcox segment : focused on the supply of, and aftermarket services, for steam-generating, environmental and auxiliary equipment for power generation and other industrial applications. • Vølund & Other Renewable segment : focused on the supply of steam-generating systems, environmental and auxiliary equipment and operations and maintenance services for the waste-to-energy and biomass power generation industries. • SPIG segment : focused on the supply of custom-engineered cooling systems for steam applications along with related aftermarket services. Revenues exclude eliminations of revenues generated from sales to other segments or to other product lines within the segment. The primary component of the Babcock & Wilcox segment elimination is revenue associated with construction services. The primary component of total eliminations is associated with Babcock & Wilcox segment construction services provided to the SPIG segment. An analysis of our operations by segment is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues: Babcock & Wilcox segment Retrofits $ 30,240 $ 44,923 $ 59,888 $ 75,597 New build utility and environmental 5,438 55,377 11,989 124,284 Aftermarket parts and field engineering services 52,788 64,308 116,478 127,395 Industrial steam generation 19,173 49,357 42,730 96,367 Eliminations (2,849 ) (13,001 ) (4,339 ) (34,121 ) 104,790 200,964 226,746 389,522 Vølund & Other Renewable segment Renewable new build and services 16,746 31,553 28,559 61,086 Operations and maintenance services 3,504 2,313 7,002 2,873 Eliminations — (171 ) (2 ) (732 ) 20,250 33,695 35,559 63,227 SPIG segment New build cooling systems 5,950 17,385 12,952 38,391 Aftermarket cooling system services 4,903 7,303 9,242 15,474 Eliminations — (1,854 ) (4 ) (2,129 ) 10,853 22,834 22,190 51,736 Eliminations (496 ) (9,378 ) (544 ) (24,434 ) $ 135,397 $ 248,115 $ 283,951 $ 480,051 The presentation of the components of our adjusted EBITDA in the table below is consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, mark to market ("MTM") pension adjustments, restructuring and spin-off costs, impairments, losses on debt extinguishment, costs related to financial consulting required under our U.S. Revolving Credit Facility and other costs that may not be directly controllable by segment management are not allocated to the segment. Adjusted EBITDA for each segment is presented below with a reconciliation to loss before income tax. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Adjusted EBITDA (1) Babcock & Wilcox segment $ 9,498 $ 19,137 $ 20,152 $ 28,226 Vølund & Other Renewable segment (506 ) (718 ) (3,799 ) (9,507 ) SPIG segment (2,525 ) (142 ) (3,717 ) 516 Corporate (3,807 ) (9,323 ) (7,950 ) (13,914 ) Research and development costs (1,231 ) (710 ) (2,572 ) (1,453 ) 1,429 8,244 2,114 3,868 Restructuring activities (2,392 ) (936 ) (4,343 ) (7,015 ) Financial advisory services (582 ) (3,197 ) (1,511 ) (7,155 ) Settlement cost to exit Vølund contract (2) — — — (6,575 ) Advisory fees for settlement costs and liquidity planning (1,155 ) (1,581 ) (3,769 ) (4,658 ) Litigation legal costs (252 ) — (948 ) — Stock compensation (1,187 ) (210 ) (1,899 ) (801 ) Income (loss) from business held for sale 470 — (318 ) — Depreciation & amortization (4,032 ) (6,536 ) (8,240 ) (13,842 ) Gain (loss) on asset disposals, net (2 ) (42 ) 913 (42 ) Operating loss (7,703 ) (4,258 ) (18,001 ) (36,220 ) Interest expense, net (15,259 ) (26,636 ) (37,310 ) (37,211 ) Loss on debt extinguishment (6,194 ) (3,969 ) (6,194 ) (3,969 ) Loss on sale of business (108 ) (3,601 ) (108 ) (3,601 ) Net pension benefit before MTM 7,450 3,333 14,986 6,761 MTM loss from benefit plans — (862 ) — (1,260 ) Foreign exchange 7,112 9,506 (2,214 ) (647 ) Other – net (2,586 ) 43 (2,792 ) 463 Loss before income tax (benefit) expense $ (17,288 ) $ (26,444 ) $ (51,633 ) $ (75,684 ) (1) Adjusted EBITDA, for the three and six months ended June 30, 2019 , excludes stock compensation that was previously included in segment results and totals $0.1 million and $0.2 million , respectively, in the Babcock & Wilcox segment, $0.1 million and $0.1 million , respectively, in the Vølund & Other Renewable segment, and $0.0 million and $0.4 million , respectively, in Corporate. Beginning in the third quarter of 2019, stock compensation is no longer considered in Adjusted EBITDA for purposes of managing the business, and prior periods have been adjusted to be presented on a comparable basis. (2) In March 2019, we entered into a settlement in connection with an additional European waste-to-energy EPC contract, for which notice to proceed was not given and the contract was not started. The settlement eliminated our obligations to act, and our risk related to acting, as the prime EPC should the project have moved forward. We do not separately identify or report our assets by segment as our chief operating decision maker does not consider assets by segment to be a critical measure by which performance is measured. |
REVENUE RECOGNITION AND CONTRAC
REVENUE RECOGNITION AND CONTRACTS | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION AND CONTRACTS | REVENUE RECOGNITION AND CONTRACTS Revenue Recognition A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied. Revenue from goods and services transferred to customers at a point in time, which includes certain aftermarket parts and services primarily in the Babcock & Wilcox segment, accounted for 31% and 18% for the three months ended June 30, 2020 and 2019, respectively and 31% and 18% of our revenue for the six months ended June 30, 2020 and 2019, respectively. Revenue on these contracts is recognized when the customer obtains control of the asset, which is generally upon shipment or delivery and acceptance by the customer. Standard commercial payment terms generally apply to these sales. Revenue from products and services transferred to customers over time accounted for 69% and 82% of our revenue for the three months ended June 30, 2020 and 2019, respectively and 69% and 82% of our revenue for the six months ended June 30, 2020 and 2019, respectively. Revenue recognized over time primarily relates to customized, engineered solutions and construction services from all three of our segments. Typically, revenue is recognized over time using the cost-to-cost input method that uses costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material, overhead and, when appropriate, SG&A expenses. Variable consideration in these contracts includes estimates of liquidated damages, contractual bonuses and penalties, and contract modifications. Substantially all of our revenue recognized over time under the cost-to-cost input method contains a single performance obligation as the interdependent nature of the goods and services provided prevents them from being separately identifiable within the contract. Generally, we try to structure contract milestones to mirror our expected cash outflows over the course of the contract; however, the timing of milestone receipts can greatly affect our overall cash position and have in our Vølund & Other Renewable segment. Refer to Note 3 for our disaggregation of revenue by product line. As of June 30, 2020 , we have estimated the costs to complete all of our in-process contracts in order to estimate revenues using a cost-to-cost input method. 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, transportation, fluctuations in foreign exchange rates 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. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract, with cumulative adjustment to revenue. 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 we have an enforceable right to the modification or claim and the amount can be estimated reliably, and its realization is probable. In evaluating these criteria, we consider the contractual/legal basis for enforcing the claim, the cause of any additional costs incurred and whether those costs are identifiable or otherwise determinable, the nature and reasonableness of those costs, the objective evidence available to support the amount of the claim, and our relevant history with the counter-party that supports our expectations about their willingness and ability to pay for the additional cost along with a reasonable margin. We generally recognize sales commissions in equal proportion as revenue is recognized. Our sales agreements are structured such that commissions are only payable upon receipt of payment, thus a capitalized asset at contract inception has not been recorded for sales commissions as a liability has not been incurred at that point. Contract Balances The following represents the components of our contracts in progress and advance billings on contracts included in our Condensed Consolidated Balance Sheets: (in thousands) June 30, 2020 December 31, 2019 $ Change % Change Contract assets - included in contracts in progress: Costs incurred less costs of revenue recognized $ 34,507 $ 29,877 $ 4,630 15 % Revenues recognized less billings to customers 51,584 61,702 (10,118 ) (16 )% Contracts in progress $ 86,091 $ 91,579 $ (5,488 ) (6 )% Contract liabilities - included in advance billings on contracts: Billings to customers less revenues recognized $ 59,543 $ 76,468 $ (16,925 ) (22 )% Costs of revenue recognized less cost incurred 1,434 (1,181 ) 2,615 (221 )% Advance billings on contracts $ 60,977 $ 75,287 $ (14,310 ) (19 )% Net contract balance $ 25,114 $ 16,292 $ 8,822 54 % Accrued contract losses $ 1,707 $ 6,139 $ (4,432 ) (72 )% Backlog On June 30, 2020 we had $457.0 million of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 29.1% , 33.9% and 37.0% of our remaining performance obligations as revenue in the remainder of 2020, 2021 and thereafter, respectively. Changes in Contract Estimates In the three and six months ended June 30, 2020 and 2019 , we recognized changes in estimated gross profit related to long-term contracts accounted for on the percentage-of-completion basis, which are summarized as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Increases in gross profits for changes in estimates for over time contracts $ 4,037 $ 8,088 $ 7,561 $ 15,894 Decreases in gross profits for changes in estimates for over time contracts (5,102 ) (16,051 ) (5,288 ) (23,728 ) Net changes in gross profits for changes in estimates for over time contracts $ (1,065 ) $ (7,963 ) $ 2,273 $ (7,834 ) Vølund EPC Loss Contracts We had six Vølund EPC contracts for renewable energy facilities in Europe that were loss contracts at December 31, 2017. The scope of these EPC (Engineer, Procure and Construct) contracts extended beyond our core technology, products and services. In addition to these loss contracts, we have one remaining extended scope contract in our Vølund & Other Renewables segment which turned into a loss contract in the fourth quarter of 2019. In the three months ended June 30, 2020 and 2019, we recorded $0.4 million and $3.2 million in net losses, respectively, inclusive of warranty expense as described in Note 10 , resulting from changes in the estimated revenues and costs to complete the six European Vølund EPC loss contracts. In the three months ended June 30, 2020 we did no t change our estimate of liquidated damages on these contracts and in the three months ended June 30, 2019 , we reduced our estimate of liquidated damages on these contracts by $0.4 million . In the six months ended June 30, 2020 and 2019, we recorded $0.3 million and $7.4 million in net losses, respectively, inclusive of warranty expense as described in Note 10 , resulting from changes in the estimated revenues and costs to complete the six European Vølund EPC loss contracts. In the six months ended June 30, 2020 we did no t change our estimate of liquidated damages on these contracts and in the six months ended June 30, 2019 , we reduced our estimate of liquidated damages on these contracts by $0.4 million . Total anticipated liquidated damages associated with these six contracts were $88.2 million and $88.2 million at June 30, 2020 and June 30, 2019 , respectively. As of June 30, 2020, five of the six European Vølund EPC loss contracts had been turned over to the customer, with only punch list or agreed remediation items and performance testing remaining, some of which are expected to be performed during the customers' scheduled maintenance outages. Turnover is not applicable to the fifth loss contract under the terms of the March 29, 2019 settlement agreement with the customers of the second and fifth loss contracts, who are related parties to each other. Under that settlement agreement, we limited our remaining risk related to these contracts by paying a combined £70 million ( $91.5 million ) on April 5, 2019 in exchange for limiting and further defining our obligations under the second and fifth loss contracts, including waiver of the rejection and termination rights on the fifth loss contract that could have resulted in repayment of all monies paid to us and our former civil construction partner (up to approximately $144 million ), and requirement to restore the property to its original state if the customer exercised this contractual rejection right. On the fifth loss contract, we agreed to continue to support construction services to complete certain key systems of the plant by May 31, 2019, for which penalty for failure to complete these systems is limited to the unspent portion of our quoted cost of the activities through that date. The settlement eliminated all historical claims and remaining liquidated damages. In accordance with the settlement, we have no further obligation related to the fifth loss contract other than customary warranty of core products if the plant is used as a biomass plant as designed. We estimated the portion of this settlement related to waiver of the rejection right on the fifth loss contract was $81.1 million , which was recorded in the fourth quarter of 2018 as a reduction in the selling price. We are still pursuing insurance recoveries and claims against subcontractors. For the second loss contract, the settlement limited the remaining performance obligations and settled historic claims for nonconformance and delays, and we turned over the plant in May 2019, and subsequently began the operations and maintenance contract to operate this plant. As of June 30, 2020 , the status of these six Vølund EPC loss contracts was as follows: • The first contract, a waste-to-energy plant in Denmark, became a loss contract in the second quarter of 2016. As of June 30, 2020 , this contract was approximately 100% complete and construction activities are complete as of the date of this report. The unit became operational during the second quarter of 2017. A settlement was reached with the customer to achieve takeover on January 31, 2019, after which only punch list items and other agreed to remediation items remain, most of which are expected to be performed during the customer's scheduled maintenance outages. As of January 31, 2019, the contract is in the warranty phase. During the three and six months ended June 30, 2020 , we recognized additional contract losses of $0.8 million inclusive of warranty. Our estimate at completion as of June 30, 2020 includes $9.1 million of total estimated liquidated damages. As of June 30, 2020 , the reserve for estimated contract losses recorded in other accrued liabilities in our Consolidated Balance Sheets was $0.4 million . During the three and six months ended June 30, 2019 , we recognized additional contract losses of $2.0 million on the contract as a result of identifying additional remediation costs in the second quarter of 2019. As of June 30, 2019 , this contract had $3.2 million of accrued losses and was 97% complete. • The second contract, a biomass plant in the United Kingdom, became a loss contract in the fourth quarter of 2016. As of June 30, 2020 , this contract was approximately 100% complete. Trial operations began in April 2019 and takeover by the customer occurred effective May 2019. This project is subject to the March 29, 2019 settlement agreement described above. During the three months ended June 30, 2020 , we did no t recognize additional contract losses and during the six months ended June 30, 2020 , we recognized additional contract losses of $0.1 million on this contract as a result of additional punch list and other commissioning costs. Our estimate at completion as of June 30, 2020 includes $19.0 million of total estimated liquidated damages due to schedule delays. Our estimates at completion as of June 30, 2020 and 2019 also include contractual bonus opportunities for guaranteed higher power output and other performance metrics. As of June 30, 2020 , we expect no future charges due to this contract and, accordingly, have no reserve for estimated contract losses. In the three and six months ended June 30, 2019 , we recognized contract losses of $1.2 million and $1.9 million , respectively, on this contract as a result of repairs required during startup commissioning activities, additional expected punch list and other commissioning costs, and changes in construction cost estimates. As of June 30, 2019 , this contract had $0.1 million of accrued losses and was 100% complete. • The third contract, a biomass plant in Denmark, became a loss contract in the fourth quarter of 2016. As of June 30, 2020 , this contract was approximately 100% complete. Warranty began in March 2018, when we agreed to a partial takeover with the customer, and we agreed to a full takeover by the customer at the end of October 2018, when we also agreed to a scheduled timeline for remaining punch list activities to be completed around the customer's future planned outages. During the three and six months ended June 30, 2020 , we did no t recognize additional contract losses. Our estimate at completion as of June 30, 2020 includes $6.7 million total estimated liquidated damages due to schedule delays. As of June 30, 2020 , we expect no future charges due to this contract and, accordingly, we have no reserve for estimated contract losses. In the three and six months ended June 30, 2019 , we did no t recognize additional contract losses. As of June 30, 2019 , this contract had $0.1 million of accrued losses and was 100% complete. • The fourth contract, a biomass plant in the United Kingdom, became a loss contract in the fourth quarter of 2016. As of June 30, 2020 , this contract was approximately 100% complete. Trial operations began in November 2018 and takeover by the customer occurred in February 2019, after which only final performance testing, for which performance metrics have been previously demonstrated, and punch list and other agreed upon items remain, some of which are expected to be performed during the customer's scheduled maintenance outages. During the three and six months ended June 30, 2020 , we recognized additional contract charges of $0.1 million and $0.2 million , respectively, on this contract due to changes in cost to complete remaining punch list and other close out items. Our estimate at completion as of June 30, 2020 includes $20.8 million of total estimated liquidated damages due to schedule delays. Our estimates at completion as of June 30, 2020 also include contractual bonus opportunities for guaranteed higher power output and other performance metrics. As of June 30, 2020 , we expect no future charges due to this contract and, accordingly, we have no reserve for estimated contract losses. In the three and six months ended June 30, 2019 , we recognized additional contract losses of $4.0 million and $4.3 million , respectively, on this contract due to changes in estimated bonus revenue and cost to complete remaining punch list, remediation of certain performance guarantees and other close out items. Our estimates at completion as of June 30, 2019 also included contractual bonus opportunities for guaranteed higher power output and other performance metrics. As of June 30, 2019 , this contract had $0.4 million of accrued losses and was 99% complete. • The fifth contract, a biomass plant in the United Kingdom, became a loss contract in the second quarter of 2017. As of June 30, 2020 , this contract was approximately 100% complete. This project is subject to the March 29, 2019 settlement agreement described above. We estimated the portion of this settlement related to waiver of the rejection right on the fifth loss contract was $81.1 million , which was recorded in the fourth quarter of 2018 as a reduction in the selling price. Under the settlement, our remaining performance obligations were limited to construction support services to complete certain key systems of the plant by May 31, 2019. The settlement also eliminated all historical claims and remaining liquidated damages. Remaining items at June 30, 2020 are primarily related to punch list and other finalization items for the key systems under the terms of the settlement and subcontract close outs. During the three and six months ended June 30, 2020 , our estimated loss on the contract improved by $0.1 million and $0.4 million , respectively. Our estimate at completion as of June 30, 2020 , includes $13.6 million of total estimated liquidated damages due to schedule delays. As of June 30, 2020 , we expect no future charges due to this contract and, accordingly, we have no reserve for estimated contract losses. During the three and six months ended June 30, 2019 , our estimated loss on the contract improved by $4.0 million and $1.8 million , respectively, inclusive of warranty. As of June 30, 2019 , this contract had $5.3 million of accrued losses and was 97% complete. • The sixth contract, a waste-to-energy plant in the United Kingdom, became a loss contract in the second quarter of 2017. As of June 30, 2020 , this contract was approximately 99% complete. Trial operations began in December 2018 and customer takeover occurred on January 25, 2019, after which only final performance testing, for which performance metrics have been previously demonstrated, and punch list and other agreed upon items remain, some of which are expected to be performed during the customer's scheduled maintenance outages. The contract is in the warranty phase. During the three and six months ended June 30, 2020 , our estimated loss on the contract improved by $0.4 million inclusive of warranty. Our estimate at completion as of June 30, 2020 includes $19.0 million of total estimated liquidated damages due to schedule delays. As of June 30, 2020 , the reserve for estimated contract losses recorded in other accrued liabilities in our Consolidated Balance Sheets was $0.2 million . In the three and six months ended June 30, 2019 , we revised our revenue and costs at completion for this contract, which resulted in additional contract losses of $0.1 million and $0.9 million , respectively, related to matters encountered in completing punch list items. As of June 30, 2019 , this contract had $0.2 million of accrued losses and was 99% complete. In the fourth quarter of 2019, one of our other Vølund renewable energy contracts turned into a loss contract (estimated loss of $0.2 million ) due to the extension of time and other start-up costs associated with the completion of the trial operations run and turnover to the client. This contract was turned over to the client in October 2019. During the three and six months ended June 30, 2020 , we did no t recognize additional contract losses and during the three and six months ended June 30, 2019 , we recognized additional charges of $1.3 million and $1.5 million , respectively, on this contract. In September 2017, we identified the failure of a structural steel beam on the fifth contract, which stopped work in the boiler building and other areas pending corrective actions to stabilize the structure. Provisional regulatory approval to begin structural repairs to the failed beam was obtained on March 29, 2018 (later than previously estimated), and full approval to proceed with repairs was obtained in April 2018. Full access to the site was obtained on June 6, 2018 after completion of the repairs to the structure. The engineering, design and manufacturing of the steel structure were the responsibility of our subcontractors. A similar design was also used on the second and fourth contracts, and although no structural failure occurred on these two other contracts, work was also stopped in certain restricted areas while we added reinforcement to the structures, which also resulted in delays that lasted until late January 2018. The total costs related to the structural steel issues on these three contracts, including contract delays, are estimated to be approximately $36 million , which is included in the June 30, 2020 estimated losses at completion for these three contracts. We are continuing to aggressively pursue recovery of this cost under various applicable insurance policies and from responsible subcontractors. In June 2019, we agreed in principle to a settlement agreement under one insurance policy related to recover GBP 2.8 million ( $3.5 million ) of certain losses on the fifth project; which our insurer paid us in September 2019. The Company is continuing to pursue other potential insurance recoveries and claims where appropriate and available. Other Vølund Contract Settlement In March 2019, we entered into a settlement in connection with an additional European waste-to-energy EPC contract, for which notice to proceed was not given and the contract was not started. We made a payment of £ 5.0 million (approximately $6.6 million ) on April 5, 2019 for the settlement which eliminated our obligations to act, and our risk related to acting, as the prime EPC should the project have moved forward. SPIG's Loss Contracts At June 30, 2020 , SPIG had two significant loss contracts, each of which are contracts for a dry cooling system for a gas-fired power plant in the United States. In the three and six months ended June 30, 2020 , we did no t recognize additional charges on these contracts. In the three and six months ended June 30, 2019 , our estimated loss on the second contract improved by $0.7 million , respectively, due to recovery of tariffs. At June 30, 2020 , the design and procurement are substantially complete, and construction is nearing completion on the first loss contract. Overall, the contract is approximately 99% complete with only performance testing remaining which will be complete in the third quarter of 2020. As of June 30, 2020 , we have no reserve for estimated contract losses. As of June 30, 2019 , this contract had accrued losses of $0.6 million and was 96% complete. Construction is being performed by the Babcock & Wilcox segment, but the contract loss is included in the SPIG segment. At June 30, 2020 , the design and procurement are nearing completion on the second loss contract. Overall, the contract is approximately 96% complete and final completion is expected to be in the third quarter of 2020 . As of June 30, 2020 , the reserve for estimated contract losses recorded in other accrued liabilities in our Condensed Consolidated Balance Sheets was $0.3 million related to this contract. As of June 30, 2019 , this contract had accrued losses of $0.1 million and was 97% complete. The percent completion declined at June 30, 2020 compared to the prior year period due to an increase in additional contract charges of $3.3 million recognized in late 2019 due to issues with the seismic design and fans. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories are as follows: (in thousands) June 30, 2020 December 31, 2019 Raw materials and supplies $ 41,832 $ 42,685 Work in progress 7,666 7,502 Finished goods 11,892 12,916 Total inventories $ 61,390 $ 63,103 |
PROPERTY, PLANT & EQUIPMENT, &
PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE | PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE Property, plant and equipment less accumulated depreciation is as follows: (in thousands) June 30, 2020 December 31, 2019 Land $ 3,005 $ 2,998 Buildings 83,570 84,005 Machinery and equipment 152,491 154,016 Property under construction 5,836 6,204 244,902 247,223 Less accumulated depreciation 183,831 180,562 Net property, plant and equipment 61,071 66,661 Finance lease 30,549 30,405 Less finance lease accumulated amortization 1,043 13 Net property, plant and equipment, and finance lease $ 90,577 $ 97,053 |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The following summarizes the changes in the net carrying amount of goodwill as of June 30, 2020 : (in thousands) Babcock & Wilcox Segment Balance at December 31, 2019 $ 47,160 Currency translation adjustments (140 ) Balance at June 30, 2020 $ 47,020 Goodwill is tested for impairment annually and when impairment indicators exist. All of our remaining goodwill is related to the Babcock & Wilcox reporting unit and the Babcock & Wilcox Construction Company reporting unit, which are both included in the Babcock & Wilcox segment. Because the Babcock & Wilcox and the Babcock & Wilcox Construction Company reporting units each had a negative carrying value, reasonable changes in the assumptions would not indicate impairment. No impairment indicators were identified during the three months ended June 30, 2020. In the first quarter of 2020, our share price declined significantly, which we considered to be a triggering event for an interim goodwill assessment. We primarily attributed the significant decline in our share price to the current macroeconomic conditions and impacts COVID-19 will have on our operations. Based on the interim assessment, as of March 31, 2020, no impairment was indicated during the first quarter of 2020. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Our intangible assets are as follows: (in thousands) June 30, 2020 December 31, 2019 Definite-lived intangible assets Customer relationships $ 24,444 $ 24,440 Unpatented technology 14,939 14,917 Patented technology 2,601 2,598 Tradename 12,402 12,372 All other 9,248 9,225 Gross value of definite-lived intangible assets 63,634 63,552 Customer relationships amortization (19,119 ) (18,616 ) Unpatented technology amortization (5,972 ) (5,245 ) Patented technology amortization (2,538 ) (2,476 ) Tradename amortization (4,539 ) (4,257 ) All other amortization (9,106 ) (8,963 ) Accumulated amortization (41,274 ) (39,557 ) Net definite-lived intangible assets $ 22,360 $ 23,995 Indefinite-lived intangible assets Trademarks and trade names $ 1,305 $ 1,305 Total intangible assets, net $ 23,665 $ 25,300 The following summarizes the changes in the carrying amount of intangible assets: Six months ended June 30, (in thousands) 2020 2019 Balance at beginning of period $ 25,300 $ 30,793 Amortization expense (1,716 ) (2,331 ) Currency translation adjustments and other 81 (67 ) Balance at end of the period $ 23,665 $ 28,395 Amortization of intangible assets is included in cost of operations and SG&A in our Condensed Consolidated Statement of Operations but is not allocated to segment results. Estimated future intangible asset amortization expense is as follows (in thousands): Amortization Expense Year ending December 31, 2020 $ 1,590 Year ending December 31, 2021 3,057 Year ending December 31, 2022 3,034 Year ending December 31, 2023 3,033 Year ending December 31, 2024 2,960 Year ending December 31, 2025 2,470 Thereafter 6,216 The circumstances leading to the first quarter interim goodwill assessment as described in Note 7 also triggered an evaluation for long-lived assets, including intangible assets. The company performed an analysis as required by ASC 360-10-35 to assess the recoverability of other long-lived assets in its Vølund and SPIG asset groups. With respect to these asset groups no impairment was indicated during the first quarter of 2020. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows: Three months ended June 30, Six months ended June 30, (in thousands) Classification 2020 2019 2020 2019 Operating lease expense: Operating lease expense Selling, general and administrative expenses $ 1,389 $ 1,589 $ 2,896 $ 3,498 Short-term lease expense Selling, general and administrative expenses 292 2,335 480 5,196 Variable lease expense (1) Selling, general and administrative expenses (382 ) 871 394 983 Total operating lease expense $ 1,299 $ 4,795 $ 3,770 $ 9,677 Finance lease expense: Amortization of right-of-use assets Selling, general and administrative expenses $ 514 $ — $ 1,029 $ — Interest on lease liabilities Interest expense 616 — 1,231 — Total finance lease expense $ 1,130 $ — $ 2,260 $ — Sublease income (2) Other – net $ (21 ) $ (14 ) $ (43 ) $ (24 ) Net lease cost $ 2,408 $ 4,781 $ 5,987 $ 9,653 (1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases. (2) Sublease income excludes rental income from owned properties, which is not material. Other information related to leases is as follows: (in thousands) June 30, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,743 $ 6,578 Operating cash flows from finance leases 1,231 14 Financing cash flows from finance leases (399 ) (12 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 1,196 $ 3,014 Finance leases $ 146 $ 30,404 Weighted-average remaining lease term: Operating leases (in years) 3.2 3.4 Finance leases (in years) 14.4 15.0 Weighted-average discount rate: Operating leases 9.14 % 9.27 % Finance leases 8.00 % 8.00 % Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items: (in thousands) Assets: Classification June 30, 2020 December 31, 2019 Operating lease assets Right-of-use assets $ 11,367 $ 12,498 Finance lease assets Net property, plant and equipment, and finance lease 29,506 30,392 Total non-current lease assets $ 40,873 $ 42,890 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 4,280 $ 4,323 Finance lease liabilities Financing lease liabilities 820 (38 ) Non-current Operating lease liabilities Non-current operating lease liabilities 7,374 8,388 Finance lease liabilities Non-current finance lease liabilities 30,140 30,454 Total lease liabilities $ 42,614 $ 43,127 Future minimum lease payments required under non-cancellable leases as of June 30, 2020 were as follows: (in thousands) Operating Leases Finance Leases Total 2020 (excluding the six months ended June 30, 2020) $ 2,762 $ 1,607 $ 4,369 2021 4,227 3,277 7,504 2022 3,007 3,342 6,349 2023 2,034 3,408 5,442 2024 1,236 3,472 4,708 Thereafter 106 38,285 38,391 Total $ 13,372 $ 53,391 $ 66,763 Less imputed interest (1,718 ) (22,431 ) (24,149 ) Lease liability $ 11,654 $ 30,960 $ 42,614 In connection with the COVID-19 pandemic, the Company has received temporary rent payment deferrals related to leased facilities located in the U.S., Canada, Italy and Denmark. We have elected to account for the deferral in timing of lease payments as if there were no changes to the lease contract, including continued recognition of expense during the deferral period. |
ACCRUED WARRANTY EXPENSE
ACCRUED WARRANTY EXPENSE | 6 Months Ended |
Jun. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY EXPENSE | ACCRUED WARRANTY EXPENSE We may offer assurance type warranties on products and services we sell. Changes in the carrying amount of our accrued warranty expense are as follows: Six months ended June 30, (in thousands) 2020 2019 Balance at beginning of period $ 33,376 $ 45,117 Additions 2,063 2,717 Expirations and other changes (1,584 ) (4,412 ) Payments (5,410 ) (3,641 ) Translation and other 46 (192 ) Balance at end of period $ 28,491 $ 39,589 We accrue estimated expense included in cost of operations on our Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when we recognize the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty costs is accrued when the contract becomes a loss contract. 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. Warranty expense for the three and six months ended June 30, 2019 includes $3.9 million of warranty reversal related to developments in the quarter stemming from the March 29, 2019 settlement agreement for the Vølund EPC loss contracts described in Note 4 . |
REVOLVING DEBT
REVOLVING DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
REVOLVING DEBT | REVOLVING DEBT Our revolving debt is comprised of a revolving credit facility in the U.S. with balances of $164.7 million as of June 30, 2020 and $179.0 million as of December 31, 2019 . A&R Credit Agreement On May 11, 2015, we entered into the Amended Credit Agreement with a syndicate of lenders in connection with our spin-off from The Babcock & Wilcox Company (now BWX Technologies, Inc. or "BWXT") which governs the U.S. Revolving Credit Facility and the Last Out Term Loans. Since June 2016, we have entered into a number of waivers and amendments to the Amended Credit Agreement, including several to avoid default under the financial and other covenants specified in the Amended Credit Agreement. On May 14, 2020, we entered into an agreement with our lenders amending and restating the Amended Credit Agreement. The A&R Credit Agreement refinances and extends the maturity of our revolving credit facility and Last Out Term Loans. Under the A&R Credit Agreement, B. Riley has committed to provide the Company with up to $70.0 million of additional Last Out Term Loans on the same terms as the term loans extended under the Amended Credit Agreement. An aggregate $30.0 million of this new commitment was funded upon execution of the A&R Credit Agreement. Of the remaining commitments, at least $35.0 million will be funded in installments, subject to reduction for the gross proceeds from certain equity offerings conducted by the Company, and $5.0 million will be funded upon request by the Company. The proceeds from the $30.0 million of new term loans will be used to pay transaction fees and expenses and repay outstanding borrowings under the revolving credit facility governed by the A&R Credit Agreement (the "revolving credit facility"). Proceeds from the additional $40.0 million of term loans will be used to repay outstanding borrowings under the revolving credit facility, with any remaining amounts used for working capital, capital expenditures, permitted acquisitions and general corporate purposes. The A&R Credit Agreement also provides that, (i) the revolving credit facility continues to be available for issuances of existing and new letters of credit, subject to the L/C Sublimit (as defined below), (ii) the $205.0 million sublimit on borrowings under the revolving credit facility is maintained, and (iii) interest payments on the unpaid principal amount of revolving credit loans incurred during the period from May 14, 2020 through and including August 31, 2020 are deferred and will be paid in six equal installments on the last business day of each calendar month beginning on January 29, 2021 and through June 30, 2021. No swing line borrowings are permitted under the A&R Credit Agreement. The A&R Credit Agreement also amends the following terms, among others, as compared with the Amended Credit Agreement: (i) the maturity date of the revolving credit facility will be extended to June 30, 2022, and the maturity date of all Last Out Term Loans under the A&R Credit Agreement will be extended to December 30, 2022 (six months after the maturity date of the revolving credit facility); (ii) the interest rate for loans under the revolving credit facility will be reduced to LIBOR plus 7.0% or base rate (as defined in the A&R Credit Agreement) plus 6.0% . These margins will be reduced by 2.0% if commitments under the revolving credit facility are reduced to less than $200.0 million . The fee for letters of credit will be set at 4.0% ; (iii) the interest rate for all Last Out Term Loans will be set at 12.0% ; (iv) the commitments under the revolving credit facility will automatically and permanently decrease in the following amounts on the following dates, which match the funding dates and amounts for the committed term loans: (x) $10.0 million on November 30, 2020; and (y) $5.0 million on each of March 31, 2021, June 30, 2021, September 30, 2021, December 31, 2021 and March 31, 2022, respectively; (v) the amount of revolving loans and letters of credit available in currencies other than U.S. dollars will be capped at $125.0 million through April 30, 2021 and will step down to $110.0 million on May 1, 2021; and (vi) the amount of financial letters of credit will be capped at $75.0 million , and the amount of all letters of credit will be capped at $190.0 million through April 30, 2021 and step down to $175.0 million on May 1, 2021 (the “L/C Sublimit”). Affirmative and negative covenants under the A&R Credit Agreement are substantially consistent with the Amended Credit Agreement, except that, among other changes: (i) the indebtedness covenant has been modified to permit the incurrence of any governmental assistance in the form of indebtedness in connection with COVID-19 relief in an aggregate principal amount not to exceed $10.0 million ; (ii) a third-party letter of credit basket of up to $50.0 million has been added; (iii) certain liens and restricted payments are modified to permit liens and repayments of indebtedness incurred in connection with governmental assistance in connection with COVID-19 relief; and (iv) covenants related to the European Vølund EPC loss projects have been removed. The minimum required liquidity condition of $30.0 million remains constant but has been modified to exclude cash of non-loan parties in an amount in excess of $25.0 million . Certain financial covenant testing has been suspended through September 30, 2020, with the Company and the Administrative Agent having agreed to renegotiate such covenant levels and related definitions prior to October 31, 2020. Events of default under the A&R Credit Agreement are substantially consistent with the Amended Credit Agreement, except that: (i) B. Riley’s failure to fund any of its additional Last Out Term Loans committed under the A&R Credit Agreement will constitute an event of default; and (ii) the failure to renegotiate and set certain financial covenant testing levels and related definitions prior to October 31, 2020 will constitute an event of default. In connection with the A&R Credit Agreement, the Company will incur certain customary amendment and commitment fees, a portion of which will be deferred pursuant to the terms of the A&R Credit Agreement along with certain previously deferred fees incurred under the Amended Credit Agreement. B. Riley Limited Guaranty In connection with the Company’s entry into the A&R Credit Agreement, B. Riley has entered into the B. Riley Guaranty for the benefit of the Administrative Agent and the lenders under the revolving credit facility. The B. Riley Guaranty provides for the guarantee of all of the Company’s obligations with respect to the revolving credit facility (other than with respect to letters of credit and contingent obligations), including the obligation to repay outstanding revolving credit loans and pay earned interest and fees. The B. Riley Guaranty is enforceable in certain circumstances, including, among others: (i) B. Riley’s failure to timely fund in full any of its additional Last Out Term Loans committed under the A&R Credit Agreement; (ii) certain events of default relating to bankruptcy or insolvency occurring with respect to B. Riley; (iii) the acceleration of the Company’s borrowings under the revolving credit facility; (iv) the Company’s failure to pay any amount due to the Administrative Agent or any lender under the revolving credit facility; or (v) any assertion that the B. Riley Guaranty or any portion thereof is not valid, binding or enforceable. In connection with the B. Riley Guaranty, the Company entered into a fee letter with B. Riley pursuant to which the Company agreed to pay B. Riley a fee of $3.9 million (the “B. Riley Guaranty Fee”). On June 8, 2020 and June 30, 2020, the company issued 1,712,479 shares of common stock and 1,192,371 shares of common stock, respectively, to B. Riley and certain of its affiliates in settlement of the B. Riley Guaranty Fee in connection with the Fee and Interest Equitization Agreement discussed below. Fee and Interest Equitization Agreement In connection with the B. Riley Guaranty, the Company entered into a Fee and Interest Equitization Agreement (the “Equitization Agreement”) with B. Riley and, solely for certain limited purposes under the Equitization Agreement, B. Riley FBR, Inc. The Equitization Agreement provides that, in lieu of receiving (a) $13.4 million of interest payments with respect to Last Out Term Loans under the A&R Credit Agreement between May 14, 2020 and December 31, 2020 (the “Equitized Interest Payments”) and (b) the B. Riley Guaranty Fee (the “Equitized Fee Payment” and, together with the Equitized Interest Payments, the “Equitized Fees and Interest Payments”), B. Riley will receive shares of the Company’s common stock. Under the Equitization Agreement, B. Riley will receive a number of shares of common stock equal to (i) the aggregate dollar value of the Equitized Fees and Interest Payments divided by (ii) the Conversion Price. For purposes of the Equitization Agreement, the “Conversion Price” means the average volume weighted average price of the common stock over 15 consecutive trading days beginning on and including May 15, 2020 (the “Measurement Period”), subject to customary adjustments. For purposes of the listing requirements of the New York Stock Exchange (the "NYSE"), the Equitization Agreement sets a minimum for the Conversion Price of $1.55 per share of common stock, unless and until approval is obtained from the Company’s stockholders under the rules of the NYSE. On June 5, 2020, the conversion price was calculated at $2.2774 per share. The Company is required under the Equitization Agreement to use its reasonable best efforts to take all actions to obtain any necessary stockholder approval under the rules of the NYSE for the issuance of the Shares. B. Riley has agreed to cause all shares of common stock beneficially owned by B. Riley to be voted in favor of any proposal presented to the Company’s stockholders seeking approval of the issuance of shares pursuant to the Equitization Agreement. The required stockholder approvals were obtained at the Company’s 2020 annual meeting of stockholders held on June 16, 2020. U.S. Revolving Credit Facility As of June 30, 2020 , the U.S. Revolving Credit Facility provides for a senior secured revolving credit facility in an aggregate amount of up to $326.9 million , as amended and adjusted for completed asset sales. The proceeds from loans under the U.S. Revolving Credit Facility are available for working capital needs, capital expenditures, permitted acquisitions and other general corporate purposes, and the full amount is available to support the issuance of letters of credit, subject to the limits specified in the agreement. As of June 30, 2020 , in connection with Amendment No. 16, we have accrued deferred ticking fee costs of $6.7 million due to certain required actions that were not completed by December 15, 2019. At June 30, 2020 , borrowings under the U.S. Revolving Credit Facility consisted of $164.7 million at a weighted average interest rate of 7.53% . Usage under the U.S. Revolving Credit Facility consisted of $164.7 million of revolving loan borrowings, $25.0 million of financial letters of credit and $95.4 million of performance letters of credit. At June 30, 2020 , we had approximately $41.8 million available to meet letter of credit requirements based on our overall facility size, of which $40.3 million was available for additional borrowings under our sublimit. Letters of Credit, Bank Guarantees and Surety Bonds Certain subsidiaries primarily outside of the United States have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees opened outside of the U.S. Revolving Credit Facility as of June 30, 2020 and December 31, 2019 was $81.7 million and $88.5 million , respectively. The aggregate value of the letters of credit provided by the U.S. Revolving Credit Facility backstopping letters of credit or bank guarantees was $30.7 million as of June 30, 2020 . Of the letters of credit issued under the U.S. Revolving Credit Facility, $35.2 million are subject to foreign currency revaluation. We have posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. 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 June 30, 2020 , bonds issued and outstanding under these arrangements in support of contracts totaled approximately $272.0 million . The aggregate value of the letters of credit provided by the U.S. Revolving Credit facility backstopping surety bonds was $31.7 million . Our ability to obtain and maintain sufficient capacity under our U.S. Revolving Credit Facility is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES The following tables summarize the restructuring activity incurred by segment: Three months ended June 30, Three months ended June 30, 2020 2019 (in thousands) Total Severance and related costs COVID-19 related costs Other (1) Severance and related costs Babcock & Wilcox segment $ 1,514 $ 566 $ 274 $ 674 $ 127 Vølund & Other Renewable segment 622 46 576 — 437 SPIG segment — — — — 258 Corporate 256 — 92 164 114 $ 2,392 $ 612 $ 942 $ 838 $ 936 Six months ended June 30, Six months ended June 30, 2020 2019 (in thousands) Total Severance and related costs COVID-19 related costs Other (1) Severance and related costs Babcock & Wilcox segment $ 2,837 $ 1,108 $ 274 $ 1,455 $ 4,075 Vølund & Other Renewable segment 1,181 605 576 — 1,015 SPIG segment — — — — 401 Corporate 325 — 92 233 1,524 $ 4,343 $ 1,713 $ 942 $ 1,688 $ 7,015 (1) Other amounts consist primarily of exit, relocation and other costs. Restructuring liabilities are included in other accrued liabilities on our Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 5,341 $ 10,196 $ 5,358 $ 7,359 Restructuring expense 2,392 936 4,343 7,015 Payments (2,646 ) (4,158 ) (4,614 ) (7,400 ) Balance at end of period $ 5,087 $ 6,974 $ 5,087 $ 6,974 Accrued restructuring liabilities at June 30, 2020 and 2019 relate primarily to employee termination benefits. Severance payments are expected to extend through the end of 2020. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 2020 2019 2020 2019 Interest cost $ 8,250 $ 10,965 $ 16,511 $ 21,822 $ 72 $ 119 $ 144 $ 239 Expected return on plan assets (15,544 ) (13,905 ) (31,185 ) (27,799 ) — — — — Amortization of prior service cost 43 27 86 55 (271 ) (539 ) (542 ) (1,078 ) Recognized net actuarial (gain) loss — 862 — 1,260 — — — — Benefit plans, net (1) (7,251 ) (2,051 ) (14,588 ) (4,662 ) (199 ) (420 ) (398 ) (839 ) Service cost included in COS (2) 209 150 420 300 4 4 9 8 Net periodic benefit cost (benefit) $ (7,042 ) $ (1,901 ) $ (14,168 ) $ (4,362 ) $ (195 ) $ (416 ) $ (389 ) $ (831 ) (1) Benefit plans, net , which is presented separately in the Condensed Consolidated Statements of Operations, is not allocated to the segments. (2) Service cost related to a small group of active participants is presented within cost of operations in the Condensed Consolidated Statement of Operations and is allocated to the Babcock & Wilcox segment. Recognized net actuarial (gain) loss consists primarily of our reported actuarial (gain) loss, curtailments, settlements, and the difference between the actual return on plan assets and the expected return on plan assets. There were no MTM adjustments for our pension and other postretirement benefit plans during the three and six months ended June 30, 2020 and we incurred losses of $0.9 million and $1.3 million in the three and six months ended June 30, 2019 . We have excluded the recognized net actuarial (gain) loss from our reportable segments and such amount has been reflected in Note 3 as the MTM loss from benefit plans in the reconciliation of Adjusted EBITDA for each segment to consolidated loss before income tax. The recognized net actuarial (gain) loss was recorded in benefit plans, net in our Condensed Consolidated Statements of Operations. We made contributions to our pension and other postretirement benefit plans totaling $0.6 million and $1.1 million during the three and six months ended June 30, 2020 , respectively, as compared to $1.4 million and $2.8 million during the three and six months ended June 30, 2019 , respectively. Expected employer contributions to trusts of defined benefit plans assume that relief is granted under U.S. pension contribution waivers, which would defer minimum pension contributions for approximately one year to then be repaid over a five-year period. Related to the 2018 Plan year, we filed a request for waiver with the IRS in January 2019 and obtained a letter on August 27, 2019 that the waiver request had been approved subject to certain conditions. We filed a temporary hardship waiver request with the IRS on March 12, 2020 related to our contributions for our pension and other postretirement benefit plans for the 2019 Plan year. As of August 12, 2020, final determination of this waiver request had not been received. Pursuant to the provisions of the waiver granted by the IRS related to the 2018 Plan year, the Company was required to resume quarterly contributions on April 15, 2020 equal to the required quarterly contributions to the Plan. If we receive an adverse response from the IRS for the temporary hardship waiver request for the 2019 Plan year, our required minimum employer pension contributions could increase by approximately $25.0 million , to a total pension and other postretirement benefit funding requirement of approximately $46.0 million or greater in 2020, plus interest and, if assessed, penalties. On March 27, 2020, the CARES Act was signed into law and among other things, provides deferral of certain U.S. pension plan contributions until January 1, 2021. We elected to defer the contribution payments of $5.5 million each for the 2020 Plan year that would have been made on April 15, 2020 and July 15, 2020. The total funding contributions of $46.0 million estimated for 2020 that have been deferred includes $1.1 million for the 2018 Plan year, $23.7 million for the 2019 Plan year, $16.5 million for the 2020 Plan year and $4.5 million related to other non-qualified pension plans, non-U.S. pension plans and other postretirement benefits plans. The Company cannot make any assurances that such waiver will be granted. |
LAST OUT TERM LOANS
LAST OUT TERM LOANS | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
LAST OUT TERM LOANS | LAST OUT TERM LOANS The components of the Last Out Term Loans by Tranche are as follows: June 30, 2020 (in thousands) A-3 A-4 A-6 Total Proceeds (1) $ 101,660 $ 30,000 $ 30,000 $ 161,660 Discount and fees 8,650 — — 8,650 Paid-in-kind interest 3,020 — — 3,020 Net debt balance $ 113,330 $ 30,000 $ 30,000 $ 173,330 (1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment of the tranche as of July 23, 2019, the date of the Equitization Transactions. December 31, 2019 (in thousands) A-3 Proceeds (1) $ 101,660 Discount and fees 8,650 Paid-in-kind interest 3,020 Principal 113,330 Unamortized discount and fees (9,377 ) Net debt balance $ 103,953 (1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment of the tranche as of July 23, 2019, the date of the Equitization Transactions. Last Out Term Loans are incurred under our A&R Credit Agreement and are pari passu with the U.S. Revolving Credit Facility except for certain payment subordination provisions. The Last Out Term Loans are subject to the same representations and warranties, covenants and events of default as the U.S. Revolving Credit Facility. Under U.S. GAAP, a debt modification with the same borrower that results in substantially different terms is accounted for as an extinguishment of the existing debt and a reborrowing of new debt. An extinguishment gain or loss is then recognized based on the fair value of the new debt as compared to the carrying value of the extinguished debt. The Company recognized a loss on debt extinguishment of $6.2 million in the quarter ended June 30, 2020 , primarily representing the unamortized value of the original issuance discount and fees on the Tranche A-3 Last Out Term Loan. In connection with the effectiveness of the A&R Credit Agreement, the maturity date for the Last Out Term Loans was extended to December 30, 2022. On June 30, 2020, the company issued 1,192,371 shares of common stock to B. Riley in settlement of the quarterly interest payable in connection with the Fee and Interest Equitization Agreement further discussed in Note 13 . The total effective interest rate of Tranche A-3, Tranche A-4 and Tranche A-6 was 12.0% on June 30, 2020 . The interest rate on the Last Out Term Loans under the A&R Credit Agreement is a fixed rate per annum of 12.0% . Interest expense associated with the Last Out Term Loans is detailed in Note 15 . Tranche A-1 We borrowed $30.0 million of net proceeds under Tranche A-1 of the Last Out Term Loans from B. Riley, a related party, in September and October of 2018. In November 2018, Tranche A-1 was assigned to Vintage, also a related party. As part of the Equitization Transactions in July 2019, the outstanding principal of Tranche A-1 of the Last Out Term Loans including accrued paid-in-kind interest remaining as of March 31, 2019 was exchanged for shares of common stock. Tranche A-2 We borrowed $10.0 million of net proceeds under Tranche A-2 of Last Out Term Loans from B. Riley, a related party in March 2019. Tranche A-2 was fully repaid on July 23, 2019 with proceeds from the 2019 Rights Offering as part of the Equitization Transactions in July 2019. Tranche A-3 Under Amendment No. 16 to our Amended Credit Agreement, we borrowed $150.0 million face value from B. Riley, a related party, under a Tranche A-3 of Last Out Term Loans. The $141.4 million net proceeds from Tranche A-3 were primarily used to pay the amounts due under the settlement agreements covering certain European Vølund loss projects as described in Note 4 , with the remainder used for working capital and general corporate purposes. Interest rates for Tranche A-3 are described above. Tranche A-3 may be prepaid, subject to the subordination provisions under the Amended Credit Agreement as described above, but not re-borrowed. As part of the Equitization Transactions, the total prepayment of principal of Tranche A-3 of the Last Out Term Loans was $39.7 million . Tranche A-4 On January 31, 2020, we entered into Amendment No. 20 to the Amended Credit Agreement. Amendment No. 20 provides $30.0 million of additional commitments from B. Riley, a related party, under a new Tranche A-4 of Last Out Term Loans. The proceeds from Tranche A-4 may be used under the terms of Amendment No. 20 to repay revolving credit loans, for working capital and general corporate purposes, and to reimburse certain expenses of B. Riley as specified by Amendment No. 20. The terms of Tranche A-4 are the same as the terms for the Tranche A-3 under the Amended Credit Agreement. As of January 31, 2020, we borrowed $30.0 million face value of the Tranche A-4 and received net proceeds of $26.3 million after incurring total fees of $3.7 million related to Amendment No, 20 described above. Tranche A-5 On January 31, 2020, we entered into Amendment No. 20 to the Amended Credit Agreement. Amendment No. 20 provides an incremental Tranche A-5 of Last Out Term Loans to be extended prior to maturity of the Last Out Term Loans under the Amended Credit Agreement in the event certain customer letters of credit are drawn. The terms of Tranche A-5 are the same as the terms for the Tranche A-3 under the Amended Credit Agreement. As of August 12, 2020, no borrowings have occurred under Tranche A-5 . Tranche A-6 The A&R Credit Agreement provided us with up to $70.0 million of additional funding in the form of Tranche A-6 Last Out Term Loans from B. Riley, a related party, as more fully described in Note 13 . An aggregate $30.0 million of this new commitment was funded upon execution of the A&R Credit Agreement. The $35.0 million will be funded in installments, subject to reduction for the gross proceeds from certain equity offerings conducted by the Company. The remaining $5.0 million will be available upon request by the Company. On May 14, 2020, we borrowed $30.0 million face value of the Tranche A-6 and received gross proceeds of $30.0 million related to the A&R Credit Agreement that is more fully described in Note 13 . Tranche A-7 The A&R Credit Agreement provided us with up to $50.0 million of additional funding for letters of credit in the form of Tranche A-7 Last Out Term Loans from B. Riley, a related party, as more fully described in Note 13 . The $50.0 million will be available upon request by the Company, subject to certain limitations. As of August 12, 2020, no borrowings have occurred under Tranche A-7. |
INTEREST EXPENSE AND SUPPLEMENT
INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION | INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION Interest expense in our Condensed Consolidated Financial Statements consisted of the following components: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Components associated with borrowings from: U.S. Revolving Credit Facility $ 3,409 $ 3,801 $ 7,448 $ 7,351 Last Out Term Loans - cash interest 4,828 3,606 8,875 4,119 Last Out Term Loans - paid-in-kind interest — 3,881 — 4,941 8,237 11,288 16,323 16,411 Components associated with amortization or accretion of: U.S. Revolving Credit Facility - deferred financing fees and commitment fees 3,629 8,880 12,664 14,149 United States revolving credit facility contingent consent fee for Amendment 16 — 4,674 — 4,674 U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16 2 — 1,660 — Last Out Term Loans - discount and financing fees 1,579 1,479 3,729 2,069 5,210 15,033 18,053 20,892 Other interest expense 2,035 516 3,197 668 Total interest expense $ 15,482 $ 26,837 $ 37,573 $ 37,971 The following table provides a reconciliation of cash, cash equivalents and restricted cash reporting within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts in the Condensed Consolidated Statements of Cash Flows: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 Held by foreign entities $ 34,676 $ 38,921 $ 30,932 $ 35,522 Held by U.S. entities 2,139 4,851 4,258 7,692 Cash and cash equivalents of continuing operations 36,815 43,772 35,190 43,214 Reinsurance reserve requirements 5,596 9,318 5,350 11,768 Restricted foreign accounts 2,661 3,851 3,830 5,297 Bank guarantee collateral 3,044 — — — Restricted cash and cash equivalents 11,301 13,169 9,180 17,065 Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 48,116 $ 56,941 $ 44,370 $ 60,279 Our U.S. Revolving Credit Facility described in Note 13 allows for nearly immediate borrowing of available capacity to fund cash requirements in the normal course of business, meaning that the minimum United States cash on hand is maintained to minimize borrowing costs. The following cash activity is presented as a supplement to our Condensed Consolidated Statements of Cash Flows and is included in Net cash used in activities : Six months ended June 30, (in thousands) 2020 2019 Income tax payments, net $ 1,438 $ 32 Interest payments on our U.S. Revolving Credit Facility $ 8,110 $ 6,921 Interest payments on our Last Out Term Loans 6,140 1,022 Total cash paid for interest $ 14,250 $ 7,943 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES In the three months ended June 30, 2020 , income tax expense was $0.8 million , resulting in an effective tax rate of (4.9)% . In the three months ended June 30, 2019 , income tax expense was $1.9 million , with an effective tax rate of (7.2)% . Our effective tax rate for the three months ended June 30, 2020 and 2019 is not reflective of the U.S. statutory rate primarily due to valuation allowances against our net deferred tax assets. In jurisdictions where we have available net operating loss carryforwards ("NOLs"), such as the U.S., Denmark and Italy, the existence of a full valuation allowance against deferred tax assets results in income tax benefit or expense relating primarily to discrete items. We have favorable discrete items of $1.8 million and unfavorable discrete items of $0.2 million in the three months ended June 30, 2020 and 2019 , respectively. In the six months ended June 30, 2020 , income tax expense was $35 thousand , resulting in an effective tax rate of (0.1)% . In the six months ended June 30, 2019 , income tax expense was $2.5 million , resulting in an effective tax rate of (3.3)% . Our effective tax rate for the six months ended June 30, 2020 and 2019 is not reflective of the U.S. statutory rate primarily due to valuation allowances against our net deferred tax assets. In jurisdictions where we have available net operating loss carryforwards ("NOLs"), such as the U.S., Denmark and Italy, the existence of a full valuation allowance against deferred tax assets results in income tax benefit or expense relating primarily to discrete items. We have favorable discrete items of $1.3 million and unfavorable discrete items of $0.1 million in the six months ended June 30, 2020 and 2019 , respectively. We are subject to federal income tax in the United States and numerous countries that have statutory tax rates different than the United States federal statutory rate of 21%. 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 approximately 17.5% and 30% . We provide for income taxes based on the tax laws and rates in the jurisdictions where we conduct operations. These jurisdictions may have regimes of taxation that vary in both nominal rates and the basis on which these rates are applied. Our consolidated effective income tax rate can vary significantly from period to period due to these variations, changes in jurisdictional mix of our income, and valuation allowances. CARES Act On March 27, 2020, in response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” or “Act”) was signed into law. The Act contains a number of provisions designed to assist companies during the pandemic. Certain provisions may impact the Company’s income tax provision. Management has concluded the CARES Act will not have an impact to the Company’s tax attributes. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES Litigation Relating to Boiler Installation and Supply Contract On December 27, 2019, a complaint was filed against Babcock & Wilcox by P.H. Glatfelter Company (“Glatfelter”) in the United States District Court for the Middle District of Pennsylvania, Case No. 1:19-cv-02215-JPW, alleging claims of breach of contract, fraud, negligent misrepresentation, promissory estoppel and unjust enrichment (the “Glatfelter Litigation”). The complaint alleges damages in excess of $58.9 million . We are evaluating Glatfelter’s claims as well as potential counter claims against Glatfelter and intend to vigorously defend against the action. However, given the preliminary stage of the litigation, it is too early to determine if the outcome of the Glatfelter Litigation will have a material adverse impact on our condensed consolidated financial condition, results of operations or cash flows. SEC Investigation The U.S. SEC is conducting a formal investigation of the Company, focusing on the accounting charges and related matters involving the Company's Vølund and Other Renewable segment from 2015-2019. The SEC has served multiple subpoenas on the Company for documents. The Company is cooperating with the SEC related to the subpoenas and investigation. The Company is still in the process of producing documents to the SEC. In addition, the SEC has taken testimony from past and current officers and directors and has requested additional testimony from present and former employees. It is reasonably possible that the SEC may bring one or more claims against the Company and certain individuals. Due to the stage of the investigation, we are unable to estimate the amount of loss or range of potential loss of any claim. However, there can be no assurance that such claims will not have a material impact on the Company. Stockholder Derivative and Class Action Litigation On April 14, 2020, a putative B&W stockholder (“Plaintiff”) filed a derivative and class action complaint against certain of the Company’s directors (current and former), executives and significant stockholders (“Defendants”) and the Company (as a nominal defendant). The action was filed in the Delaware Court of Chancery and is captioned Parker v. Avril, et al., C.A. No. 2020-0280-PAF. Plaintiff alleges that Defendants, among other things, did not properly discharge their fiduciary duties in connection with the 2019 rights offering and related transactions. The Company is evaluating Plaintiff’s claims and intends to vigorously defend against the action. 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 condensed consolidated financial condition, results of operations or cash flows. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME Gains and losses deferred in accumulated other comprehensive income (loss) ("AOCI") are generally reclassified and recognized in the Condensed Consolidated Statements of Operations once they are realized. The changes in the components of AOCI, net of tax, for the first two quarters of 2020 and 2019 were as follows: (in thousands) Currency translation (loss) gain Net unrecognized loss related to benefit plans (net of tax) Total Balance at December 31, 2019 $ 5,743 $ (3,817 ) $ 1,926 Other comprehensive income (loss) before reclassifications 2,380 — 2,380 Reclassified from AOCI to net income (loss) — (246 ) (246 ) Net other comprehensive income (loss) 2,380 (246 ) 2,134 Balance at March 31, 2020 $ 8,123 $ (4,063 ) $ 4,060 Other comprehensive income (loss) before reclassifications (4,095 ) — (4,095 ) Reclassified from AOCI to net income (loss) — (246 ) (246 ) Net other comprehensive income (loss) (4,095 ) (246 ) (4,341 ) Balance at June 30, 2020 $ 4,028 $ (4,309 ) $ (281 ) (in thousands) Currency translation (loss) gain Net unrealized gain (loss) on derivative instruments (1) Net unrecognized loss related to benefit plans (net of tax) Total Balance at December 31, 2018 $ (10,834 ) $ 1,362 $ (1,960 ) $ (11,432 ) Other comprehensive income (loss) before reclassifications 10,260 (1,178 ) — 9,082 Reclassified from AOCI to net income (loss) — 224 (356 ) (132 ) Net other comprehensive income (loss) 10,260 (954 ) (356 ) 8,950 Balance at March 31, 2019 $ (574 ) $ 408 $ (2,316 ) $ (2,482 ) Other comprehensive loss before reclassifications (7,979 ) (189 ) — (8,168 ) Reclassified from AOCI to net income (loss) 3,176 (22 ) (514 ) 2,640 Net other comprehensive (loss) income (4,803 ) (211 ) (514 ) (5,528 ) Balance at June 30, 2019 $ (5,377 ) $ 197 $ (2,830 ) $ (8,010 ) (1) The remaining unrealized FX gain/(loss) is expected to be recognized over time as the related projects are completed. The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands): AOCI component Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Release of currency translation gain with the sale of equity method investment and the sale of business Loss on sale of business $ — $ (3,176 ) $ — $ (3,176 ) Derivative financial instruments Other – net — 22 — (202 ) Net loss $ — $ (3,154 ) $ — $ (3,378 ) Amortization of prior service cost on benefit obligations Benefit plans, net 246 514 492 870 Net income $ 246 $ 514 $ 492 $ 870 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize 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 June 30, 2020 Level 1 Level 2 Corporate notes and bonds $ 9,465 $ 9,465 $ — Mutual funds 577 — 577 United States Government and agency securities 5,617 5,617 — Total fair value of available-for-sale securities $ 15,659 $ 15,082 $ 577 (in thousands) Available-for-sale securities December 31, 2019 Level 1 Level 2 Corporate notes and bonds $ 8,310 $ 8,310 $ — Mutual funds 587 — 587 United States Government and agency securities 3,868 3,868 — Total fair value of available-for-sale securities $ 12,765 $ 12,178 $ 587 Available-For-Sale Securities Our investments in available-for-sale securities are presented in other assets on our Condensed Consolidated Balance Sheets with contractual maturities ranging from 0 - 6 years . Derivatives Derivative assets and liabilities usually 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. As of June 30, 2020 , we do not hold any derivative assets or liabilities; the last of our derivative contracts were sold during the first quarter of 2019. 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 Condensed Consolidated Balance Sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature. • Revolving debt and Last Out Term Loans . We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on Level 2 inputs such as the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our debt instruments approximated their carrying value at June 30, 2020 and December 31, 2019 . • Warrants. The fair value of the warrants was established using the Black-Scholes option pricing model value approach. Non-Recurring Fair Value Measurements The measurement of the net actuarial gain or loss associated with our pension and other postretirement plans was determined using unobservable inputs (see Note 12 ). These inputs included the estimated discount rate, expected return on plan assets and other actuarial inputs associated with the plan participants. Tests for impairment annually and when impairment indicators exist require significant fair value measurements using unobservable inputs (see Note 7 ). The fair values of the reporting units were based on an income approach using a discounted cash flow analysis, a market approach using multiples of revenue and EBITDA of guideline companies, and a market approach using multiples of revenue and EBITDA from recent, similar business combinations. Property, plant and equipment and definite-lived intangible asset amounts are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset, or asset group, may not be recoverable. An impairment loss would be recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset carrying value over its fair value. Fair value is generally determined based on an income approach using a discounted cash flow analysis or based on the price that the Company expects to receive upon the sale of these assets. Both of those approaches utilize unobservable inputs (see Note 6 and Note 8 ). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Letter Agreement entered into on April 5, 2019, pursuant to which the parties agreed to use their reasonable best efforts to effect a series of equitization transactions for a portion of the Last Out Term Loans, between B. Riley, Vintage and the Company included agreement to negotiate one or more agreements that provide B. Riley and Vintage with certain governance rights, including (i) the right for B. Riley and Vintage to each nominate up to three individuals to serve on our board of directors, subject to certain continued lending and equity ownership thresholds and (ii) pre-emptive rights permitting B. Riley to participate in future issuances of our equity securities. The Company also entered into a Registration Rights Agreement with B. Riley and Vintage on April 30, 2019 providing each with certain customary registration rights for the shares of our common stock that they hold. On April 30, 2019, the Company entered into an Investor Rights Agreement with B. Riley and Vintage providing the governance rights contemplated by the Letter Agreement. Transactions with B. Riley Based on its Schedule 13D filings, B. Riley beneficially owns 22.5% of our outstanding common stock as of June 30, 2020 . B. Riley is party to the Last Out Term Loans as described in Note 14 . B. Riley has also provided the B. Riley Guaranty as more fully described in Note 13 . In connection with the B. Riley Guaranty, the Company entered into a Fee and Interest Equitization Agreement as described in Note 13 . Under the Equitization Agreement the Company issued 1.7 million shares of common stock on June 8, 2020 and 1.2 million shares of common stock on June 30, 2020 to B. Riley in satisfaction of the B. Riley Guaranty Fee and payment of certain interest payments as more fully described in Note 13 . We entered into an agreement with BRPI Executive Consulting, LLC, an affiliate of B. Riley, on November 19, 2018 for the services of Mr. Kenny Young, to serve as our Chief Executive Officer until November 30, 2020, unless terminated by either party with thirty days written notice. Under this agreement, payments are $0.75 million per annum, paid monthly. Subject to the achievement of certain performance objectives as determined by the Compensation Committee of the Board, a bonus or bonuses may also be earned and payable to BRPI Executive Consulting, LLC. In June 2019, we granted a total of $2.0 million in cash bonuses to BRPI Executive Consulting LLC for Mr. Young's performance and services. In April 2020, we temporarily deferred the monthly fee paid to BRPI Executive Consulting, LLC for the services of our Chief Executive Officer by 50% as more fully described in Note 1 . Total fees associated with B. Riley related to the Last Out Term Loans and services of Mr. Kenny Young, both as described above, were $3.3 million and $7.5 million for the three and six months ended June 30, 2020 , respectively, and were $10.1 million and $11.5 million for the three and six months ended June 30, 2019 , respectively. On August 10, 2020, B. Riley Financial, Inc. entered into a project specific indemnity rider (the “Indemnity Rider”) to the General Agreement of Indemnity, dated May 28, 2015, between us and Berkley Insurance Company (the “Surety”). Pursuant to the terms of the Indemnity Rider, B. Riley will indemnify the Surety for losses the Surety may incur as a result of providing a payment and performance bond in an aggregate amount not to exceed $30.0 million in connection with our proposed performance on a specified project. In consideration of B. Riley's execution of the Indemnity Rider, we will pay B. Riley a fee of $0.6 million no later than 30 days following the issuance of the bond by the Surety, which represents approximately 2.0% of the bonded obligations. Under the A&R Credit Agreement, any draw or claim under the Indemnity Rider will convert into a Tranche A- 5 Last Out Term Loan for the benefit of B. Riley. Refer to Note 13 for additional related party transactions with B. Riley and its affiliates. Transactions with Vintage Capital Management, LLC Based on its Schedule 13D filings, Vintage beneficially owns 31.8% of our outstanding common stock as of June 30, 2020 . |
ASSETS HELD FOR SALE, DIVESTITU
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS | ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS Assets Held for Sale In December 2019, we determined that a small business within the Babcock & Wilcox segment met the criteria to be classified as held for sale. Assets and liabilities held for sale are required to be recorded at the lower of carrying value or fair value less any costs to sell. At June 30, 2020 , the carrying value of the assets held for sale approximated the estimated fair value less costs to sell, therefore an impairment charge was not required. The divestiture of the business held for sale could result in a gain or loss on sale to the extent the ultimate selling price differs from the current carrying value of the net assets recorded. The sale is expected to occur in 2020. The following table summarizes the carrying value of the assets and liabilities held for sale at June 30, 2020 and December 31, 2019 : (in thousands) June 30, 2020 December 31, 2019 Accounts receivable – trade, net $ 3,289 $ 5,472 Accounts receivable – other 150 147 Contracts in progress 452 586 Inventories 2,646 1,555 Other current assets 189 329 Current assets held for sale 6,726 8,089 Net property, plant and equipment 6,537 6,534 Intangible assets 708 725 Right-of-use-asset 34 63 Other assets 17 — Non-current assets held for sale 7,296 7,322 Total assets held for sale $ 14,022 $ 15,411 Accounts payable $ 5,719 $ 7,898 Accrued employee benefits 453 430 Advance billings on contracts 90 227 Accrued warranty expense 472 515 Operating lease liabilities 18 6 Other accrued liabilities 785 462 Current liabilities held for sale 7,537 9,538 Non-current liabilities held for sale 46 — Total liabilities held for sale $ 7,583 $ 9,538 Divestitures On March 17, 2020, we fully settled the remaining escrow associated with the sale of PBRRC and received $4.5 million in cash. Effective May 31, 2019, we sold all of the issued and outstanding capital stock of Loibl, a material handling business in Germany, to Lynx Holding GmbH for €10.0 million (approximately $11.4 million ), subject to adjustment. We received $7.4 million in cash and recognized a $3.6 million pre-tax loss on the sale of this business in the quarter ended June 30, 2019 , net of $0.7 million in transaction costs. Proceeds from the transaction were primarily used to reduce outstanding balances under our U.S. Revolving Credit Facility. Discontinued Operations On April 6, 2020, we fully settled the remaining escrow associated with the sale of the MEGTEC and Universal businesses and received $3.5 million in cash. |
NEW ACCOUNTING STANDARDS
NEW ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS We adopted the following new accounting standard during the first quarter of 2020: In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance requires companies acting as the customer in a cloud hosting service arrangement to follow the requirements of ASC 350-40 for capitalizing implementation costs for internal-use software and requires the amortization of these costs over the life of the related service contract. The impact of this standard on our condensed consolidated financial statements was immaterial. New accounting standards not yet adopted that could affect our Condensed Consolidated Financial Statements in the future are summarized as follows: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform of Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities upon issuance and may be adopted any date on or after March 12, 2020 up to December 31, 2022. We are currently evaluating the impact of the standard on our condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing exceptions related to the incremental approach for intra-period tax allocation, certain deferred tax liabilities, and the general methodology for calculating income taxes in an interim period. The amendment also provides simplification related to accounting for franchise (or similar) tax, evaluating the tax basis step up of goodwill, allocation of consolidated current and deferred tax expense, reflection of the impact of enacted tax law or rate changes in annual effective tax rate calculations in the interim period that includes enactment date, and other minor codification improvements. For public business entities, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods in which financial statements have not yet been issued. We are currently evaluating the impact of the standard on our condensed consolidated financial statements. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss (CECL) model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on our trade receivables, contracts in progress, and potentially our impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the impact of both standards on our condensed consolidated financial statements. |
NEW ACCOUNTING STANDARDS (Polic
NEW ACCOUNTING STANDARDS (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recently adopted and new accounting standards | We adopted the following new accounting standard during the first quarter of 2020: In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The new guidance requires companies acting as the customer in a cloud hosting service arrangement to follow the requirements of ASC 350-40 for capitalizing implementation costs for internal-use software and requires the amortization of these costs over the life of the related service contract. The impact of this standard on our condensed consolidated financial statements was immaterial. New accounting standards not yet adopted that could affect our Condensed Consolidated Financial Statements in the future are summarized as follows: In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform of Financial Reporting. The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities upon issuance and may be adopted any date on or after March 12, 2020 up to December 31, 2022. We are currently evaluating the impact of the standard on our condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing exceptions related to the incremental approach for intra-period tax allocation, certain deferred tax liabilities, and the general methodology for calculating income taxes in an interim period. The amendment also provides simplification related to accounting for franchise (or similar) tax, evaluating the tax basis step up of goodwill, allocation of consolidated current and deferred tax expense, reflection of the impact of enacted tax law or rate changes in annual effective tax rate calculations in the interim period that includes enactment date, and other minor codification improvements. For public business entities, the amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for public business entities for periods in which financial statements have not yet been issued. We are currently evaluating the impact of the standard on our condensed consolidated financial statements. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss (CECL) model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on our trade receivables, contracts in progress, and potentially our impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the impact of both standards on our condensed consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, net of non-controlling interest: Three months ended June 30, Six months ended June 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Loss from continuing operations $ (17,991 ) $ (28,334 ) $ (51,430 ) $ (78,099 ) Loss (income) from discontinued operations, net of tax (113 ) 694 1,800 694 Net loss attributable to stockholders $ (18,104 ) $ (27,640 ) $ (49,630 ) $ (77,405 ) Weighted average shares used to calculate basic and diluted earnings per share (1) 46,853 18,366 46,628 18,362 Basic and diluted loss per share - continuing operations $ (0.39 ) $ (1.54 ) $ (1.10 ) $ (4.26 ) Basic and diluted earnings per share - discontinued operations — 0.04 0.04 0.04 Basic and diluted loss per share $ (0.39 ) $ (1.50 ) $ (1.06 ) $ (4.22 ) (1) Weighted average shares used to calculate basic and diluted earnings (loss) per share reflect the bonus element for the 2019 Rights Offering on July 23, 2019 as described below and the one-for-ten reverse stock split on July 24, 2019 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | An analysis of our operations by segment is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Revenues: Babcock & Wilcox segment Retrofits $ 30,240 $ 44,923 $ 59,888 $ 75,597 New build utility and environmental 5,438 55,377 11,989 124,284 Aftermarket parts and field engineering services 52,788 64,308 116,478 127,395 Industrial steam generation 19,173 49,357 42,730 96,367 Eliminations (2,849 ) (13,001 ) (4,339 ) (34,121 ) 104,790 200,964 226,746 389,522 Vølund & Other Renewable segment Renewable new build and services 16,746 31,553 28,559 61,086 Operations and maintenance services 3,504 2,313 7,002 2,873 Eliminations — (171 ) (2 ) (732 ) 20,250 33,695 35,559 63,227 SPIG segment New build cooling systems 5,950 17,385 12,952 38,391 Aftermarket cooling system services 4,903 7,303 9,242 15,474 Eliminations — (1,854 ) (4 ) (2,129 ) 10,853 22,834 22,190 51,736 Eliminations (496 ) (9,378 ) (544 ) (24,434 ) $ 135,397 $ 248,115 $ 283,951 $ 480,051 Adjusted EBITDA for each segment is presented below with a reconciliation to loss before income tax. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Adjusted EBITDA (1) Babcock & Wilcox segment $ 9,498 $ 19,137 $ 20,152 $ 28,226 Vølund & Other Renewable segment (506 ) (718 ) (3,799 ) (9,507 ) SPIG segment (2,525 ) (142 ) (3,717 ) 516 Corporate (3,807 ) (9,323 ) (7,950 ) (13,914 ) Research and development costs (1,231 ) (710 ) (2,572 ) (1,453 ) 1,429 8,244 2,114 3,868 Restructuring activities (2,392 ) (936 ) (4,343 ) (7,015 ) Financial advisory services (582 ) (3,197 ) (1,511 ) (7,155 ) Settlement cost to exit Vølund contract (2) — — — (6,575 ) Advisory fees for settlement costs and liquidity planning (1,155 ) (1,581 ) (3,769 ) (4,658 ) Litigation legal costs (252 ) — (948 ) — Stock compensation (1,187 ) (210 ) (1,899 ) (801 ) Income (loss) from business held for sale 470 — (318 ) — Depreciation & amortization (4,032 ) (6,536 ) (8,240 ) (13,842 ) Gain (loss) on asset disposals, net (2 ) (42 ) 913 (42 ) Operating loss (7,703 ) (4,258 ) (18,001 ) (36,220 ) Interest expense, net (15,259 ) (26,636 ) (37,310 ) (37,211 ) Loss on debt extinguishment (6,194 ) (3,969 ) (6,194 ) (3,969 ) Loss on sale of business (108 ) (3,601 ) (108 ) (3,601 ) Net pension benefit before MTM 7,450 3,333 14,986 6,761 MTM loss from benefit plans — (862 ) — (1,260 ) Foreign exchange 7,112 9,506 (2,214 ) (647 ) Other – net (2,586 ) 43 (2,792 ) 463 Loss before income tax (benefit) expense $ (17,288 ) $ (26,444 ) $ (51,633 ) $ (75,684 ) (1) Adjusted EBITDA, for the three and six months ended June 30, 2019 , excludes stock compensation that was previously included in segment results and totals $0.1 million and $0.2 million , respectively, in the Babcock & Wilcox segment, $0.1 million and $0.1 million , respectively, in the Vølund & Other Renewable segment, and $0.0 million and $0.4 million , respectively, in Corporate. Beginning in the third quarter of 2019, stock compensation is no longer considered in Adjusted EBITDA for purposes of managing the business, and prior periods have been adjusted to be presented on a comparable basis. (2) In March 2019, we entered into a settlement in connection with an additional European waste-to-energy EPC contract, for which notice to proceed was not given and the contract was not started. The settlement eliminated our obligations to act, and our risk related to acting, as the prime EPC should the project have moved forward. |
REVENUE RECOGNITION AND CONTR_2
REVENUE RECOGNITION AND CONTRACTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contracts in Progress and Advance Billings on Contracts | The following represents the components of our contracts in progress and advance billings on contracts included in our Condensed Consolidated Balance Sheets: (in thousands) June 30, 2020 December 31, 2019 $ Change % Change Contract assets - included in contracts in progress: Costs incurred less costs of revenue recognized $ 34,507 $ 29,877 $ 4,630 15 % Revenues recognized less billings to customers 51,584 61,702 (10,118 ) (16 )% Contracts in progress $ 86,091 $ 91,579 $ (5,488 ) (6 )% Contract liabilities - included in advance billings on contracts: Billings to customers less revenues recognized $ 59,543 $ 76,468 $ (16,925 ) (22 )% Costs of revenue recognized less cost incurred 1,434 (1,181 ) 2,615 (221 )% Advance billings on contracts $ 60,977 $ 75,287 $ (14,310 ) (19 )% Net contract balance $ 25,114 $ 16,292 $ 8,822 54 % Accrued contract losses $ 1,707 $ 6,139 $ (4,432 ) (72 )% |
Schedule of Recognized Changes in Estimated Gross Profit | In the three and six months ended June 30, 2020 and 2019 , we recognized changes in estimated gross profit related to long-term contracts accounted for on the percentage-of-completion basis, which are summarized as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Increases in gross profits for changes in estimates for over time contracts $ 4,037 $ 8,088 $ 7,561 $ 15,894 Decreases in gross profits for changes in estimates for over time contracts (5,102 ) (16,051 ) (5,288 ) (23,728 ) Net changes in gross profits for changes in estimates for over time contracts $ (1,065 ) $ (7,963 ) $ 2,273 $ (7,834 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | The components of inventories are as follows: (in thousands) June 30, 2020 December 31, 2019 Raw materials and supplies $ 41,832 $ 42,685 Work in progress 7,666 7,502 Finished goods 11,892 12,916 Total inventories $ 61,390 $ 63,103 |
PROPERTY, PLANT & EQUIPMENT, _2
PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Finance Lease | Property, plant and equipment less accumulated depreciation is as follows: (in thousands) June 30, 2020 December 31, 2019 Land $ 3,005 $ 2,998 Buildings 83,570 84,005 Machinery and equipment 152,491 154,016 Property under construction 5,836 6,204 244,902 247,223 Less accumulated depreciation 183,831 180,562 Net property, plant and equipment 61,071 66,661 Finance lease 30,549 30,405 Less finance lease accumulated amortization 1,043 13 Net property, plant and equipment, and finance lease $ 90,577 $ 97,053 |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following summarizes the changes in the net carrying amount of goodwill as of June 30, 2020 : (in thousands) Babcock & Wilcox Segment Balance at December 31, 2019 $ 47,160 Currency translation adjustments (140 ) Balance at June 30, 2020 $ 47,020 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Our intangible assets are as follows: (in thousands) June 30, 2020 December 31, 2019 Definite-lived intangible assets Customer relationships $ 24,444 $ 24,440 Unpatented technology 14,939 14,917 Patented technology 2,601 2,598 Tradename 12,402 12,372 All other 9,248 9,225 Gross value of definite-lived intangible assets 63,634 63,552 Customer relationships amortization (19,119 ) (18,616 ) Unpatented technology amortization (5,972 ) (5,245 ) Patented technology amortization (2,538 ) (2,476 ) Tradename amortization (4,539 ) (4,257 ) All other amortization (9,106 ) (8,963 ) Accumulated amortization (41,274 ) (39,557 ) Net definite-lived intangible assets $ 22,360 $ 23,995 Indefinite-lived intangible assets Trademarks and trade names $ 1,305 $ 1,305 Total intangible assets, net $ 23,665 $ 25,300 |
Schedule of Finite-Lived Intangible Assets | The following summarizes the changes in the carrying amount of intangible assets: Six months ended June 30, (in thousands) 2020 2019 Balance at beginning of period $ 25,300 $ 30,793 Amortization expense (1,716 ) (2,331 ) Currency translation adjustments and other 81 (67 ) Balance at end of the period $ 23,665 $ 28,395 |
Schedule of Indefinite-Lived Intangible Assets | The following summarizes the changes in the carrying amount of intangible assets: Six months ended June 30, (in thousands) 2020 2019 Balance at beginning of period $ 25,300 $ 30,793 Amortization expense (1,716 ) (2,331 ) Currency translation adjustments and other 81 (67 ) Balance at end of the period $ 23,665 $ 28,395 |
Schedule of Estimated Future Intangible Asset Amortization Expense | Estimated future intangible asset amortization expense is as follows (in thousands): Amortization Expense Year ending December 31, 2020 $ 1,590 Year ending December 31, 2021 3,057 Year ending December 31, 2022 3,034 Year ending December 31, 2023 3,033 Year ending December 31, 2024 2,960 Year ending December 31, 2025 2,470 Thereafter 6,216 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows: Three months ended June 30, Six months ended June 30, (in thousands) Classification 2020 2019 2020 2019 Operating lease expense: Operating lease expense Selling, general and administrative expenses $ 1,389 $ 1,589 $ 2,896 $ 3,498 Short-term lease expense Selling, general and administrative expenses 292 2,335 480 5,196 Variable lease expense (1) Selling, general and administrative expenses (382 ) 871 394 983 Total operating lease expense $ 1,299 $ 4,795 $ 3,770 $ 9,677 Finance lease expense: Amortization of right-of-use assets Selling, general and administrative expenses $ 514 $ — $ 1,029 $ — Interest on lease liabilities Interest expense 616 — 1,231 — Total finance lease expense $ 1,130 $ — $ 2,260 $ — Sublease income (2) Other – net $ (21 ) $ (14 ) $ (43 ) $ (24 ) Net lease cost $ 2,408 $ 4,781 $ 5,987 $ 9,653 (1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases. (2) Sublease income excludes rental income from owned properties, which is not material. Other information related to leases is as follows: (in thousands) June 30, 2020 December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,743 $ 6,578 Operating cash flows from finance leases 1,231 14 Financing cash flows from finance leases (399 ) (12 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 1,196 $ 3,014 Finance leases $ 146 $ 30,404 Weighted-average remaining lease term: Operating leases (in years) 3.2 3.4 Finance leases (in years) 14.4 15.0 Weighted-average discount rate: Operating leases 9.14 % 9.27 % Finance leases 8.00 % 8.00 % |
Supplemental Balance Sheet Information | Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items: (in thousands) Assets: Classification June 30, 2020 December 31, 2019 Operating lease assets Right-of-use assets $ 11,367 $ 12,498 Finance lease assets Net property, plant and equipment, and finance lease 29,506 30,392 Total non-current lease assets $ 40,873 $ 42,890 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 4,280 $ 4,323 Finance lease liabilities Financing lease liabilities 820 (38 ) Non-current Operating lease liabilities Non-current operating lease liabilities 7,374 8,388 Finance lease liabilities Non-current finance lease liabilities 30,140 30,454 Total lease liabilities $ 42,614 $ 43,127 |
Operating Lease Maturity | Future minimum lease payments required under non-cancellable leases as of June 30, 2020 were as follows: (in thousands) Operating Leases Finance Leases Total 2020 (excluding the six months ended June 30, 2020) $ 2,762 $ 1,607 $ 4,369 2021 4,227 3,277 7,504 2022 3,007 3,342 6,349 2023 2,034 3,408 5,442 2024 1,236 3,472 4,708 Thereafter 106 38,285 38,391 Total $ 13,372 $ 53,391 $ 66,763 Less imputed interest (1,718 ) (22,431 ) (24,149 ) Lease liability $ 11,654 $ 30,960 $ 42,614 |
ACCRUED WARRANTY EXPENSE (Table
ACCRUED WARRANTY EXPENSE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Changes in Carrying Amount of Accrued Warranty Expense | Changes in the carrying amount of our accrued warranty expense are as follows: Six months ended June 30, (in thousands) 2020 2019 Balance at beginning of period $ 33,376 $ 45,117 Additions 2,063 2,717 Expirations and other changes (1,584 ) (4,412 ) Payments (5,410 ) (3,641 ) Translation and other 46 (192 ) Balance at end of period $ 28,491 $ 39,589 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Activity Related to the Restructuring Liabilities | Activity related to the restructuring liabilities is as follows: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Balance at beginning of period $ 5,341 $ 10,196 $ 5,358 $ 7,359 Restructuring expense 2,392 936 4,343 7,015 Payments (2,646 ) (4,158 ) (4,614 ) (7,400 ) Balance at end of period $ 5,087 $ 6,974 $ 5,087 $ 6,974 The following tables summarize the restructuring activity incurred by segment: Three months ended June 30, Three months ended June 30, 2020 2019 (in thousands) Total Severance and related costs COVID-19 related costs Other (1) Severance and related costs Babcock & Wilcox segment $ 1,514 $ 566 $ 274 $ 674 $ 127 Vølund & Other Renewable segment 622 46 576 — 437 SPIG segment — — — — 258 Corporate 256 — 92 164 114 $ 2,392 $ 612 $ 942 $ 838 $ 936 Six months ended June 30, Six months ended June 30, 2020 2019 (in thousands) Total Severance and related costs COVID-19 related costs Other (1) Severance and related costs Babcock & Wilcox segment $ 2,837 $ 1,108 $ 274 $ 1,455 $ 4,075 Vølund & Other Renewable segment 1,181 605 576 — 1,015 SPIG segment — — — — 401 Corporate 325 — 92 233 1,524 $ 4,343 $ 1,713 $ 942 $ 1,688 $ 7,015 (1) Other amounts consist primarily of exit, relocation and other costs. |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 2020 2019 2020 2019 Interest cost $ 8,250 $ 10,965 $ 16,511 $ 21,822 $ 72 $ 119 $ 144 $ 239 Expected return on plan assets (15,544 ) (13,905 ) (31,185 ) (27,799 ) — — — — Amortization of prior service cost 43 27 86 55 (271 ) (539 ) (542 ) (1,078 ) Recognized net actuarial (gain) loss — 862 — 1,260 — — — — Benefit plans, net (1) (7,251 ) (2,051 ) (14,588 ) (4,662 ) (199 ) (420 ) (398 ) (839 ) Service cost included in COS (2) 209 150 420 300 4 4 9 8 Net periodic benefit cost (benefit) $ (7,042 ) $ (1,901 ) $ (14,168 ) $ (4,362 ) $ (195 ) $ (416 ) $ (389 ) $ (831 ) (1) Benefit plans, net , which is presented separately in the Condensed Consolidated Statements of Operations, is not allocated to the segments. (2) Service cost related to a small group of active participants is presented within cost of operations in the Condensed Consolidated Statement of Operations and is allocated to the Babcock & Wilcox segment. |
LAST OUT TERM LOANS (Tables)
LAST OUT TERM LOANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The components of the Last Out Term Loans by Tranche are as follows: June 30, 2020 (in thousands) A-3 A-4 A-6 Total Proceeds (1) $ 101,660 $ 30,000 $ 30,000 $ 161,660 Discount and fees 8,650 — — 8,650 Paid-in-kind interest 3,020 — — 3,020 Net debt balance $ 113,330 $ 30,000 $ 30,000 $ 173,330 (1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment of the tranche as of July 23, 2019, the date of the Equitization Transactions. December 31, 2019 (in thousands) A-3 Proceeds (1) $ 101,660 Discount and fees 8,650 Paid-in-kind interest 3,020 Principal 113,330 Unamortized discount and fees (9,377 ) Net debt balance $ 103,953 (1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment of the tranche as of July 23, 2019, the date of the Equitization Transactions. |
INTEREST EXPENSE AND SUPPLEME_2
INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Summary of Interest Expenses | Interest expense in our Condensed Consolidated Financial Statements consisted of the following components: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Components associated with borrowings from: U.S. Revolving Credit Facility $ 3,409 $ 3,801 $ 7,448 $ 7,351 Last Out Term Loans - cash interest 4,828 3,606 8,875 4,119 Last Out Term Loans - paid-in-kind interest — 3,881 — 4,941 8,237 11,288 16,323 16,411 Components associated with amortization or accretion of: U.S. Revolving Credit Facility - deferred financing fees and commitment fees 3,629 8,880 12,664 14,149 United States revolving credit facility contingent consent fee for Amendment 16 — 4,674 — 4,674 U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16 2 — 1,660 — Last Out Term Loans - discount and financing fees 1,579 1,479 3,729 2,069 5,210 15,033 18,053 20,892 Other interest expense 2,035 516 3,197 668 Total interest expense $ 15,482 $ 26,837 $ 37,573 $ 37,971 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reporting within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts in the Condensed Consolidated Statements of Cash Flows: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 Held by foreign entities $ 34,676 $ 38,921 $ 30,932 $ 35,522 Held by U.S. entities 2,139 4,851 4,258 7,692 Cash and cash equivalents of continuing operations 36,815 43,772 35,190 43,214 Reinsurance reserve requirements 5,596 9,318 5,350 11,768 Restricted foreign accounts 2,661 3,851 3,830 5,297 Bank guarantee collateral 3,044 — — — Restricted cash and cash equivalents 11,301 13,169 9,180 17,065 Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 48,116 $ 56,941 $ 44,370 $ 60,279 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reporting within the Condensed Consolidated Balance Sheets that sum to the total of the same amounts in the Condensed Consolidated Statements of Cash Flows: (in thousands) June 30, 2020 December 31, 2019 June 30, 2019 December 31, 2018 Held by foreign entities $ 34,676 $ 38,921 $ 30,932 $ 35,522 Held by U.S. entities 2,139 4,851 4,258 7,692 Cash and cash equivalents of continuing operations 36,815 43,772 35,190 43,214 Reinsurance reserve requirements 5,596 9,318 5,350 11,768 Restricted foreign accounts 2,661 3,851 3,830 5,297 Bank guarantee collateral 3,044 — — — Restricted cash and cash equivalents 11,301 13,169 9,180 17,065 Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows $ 48,116 $ 56,941 $ 44,370 $ 60,279 |
Schedule of Other Significant Noncash Transactions | The following cash activity is presented as a supplement to our Condensed Consolidated Statements of Cash Flows and is included in Net cash used in activities : Six months ended June 30, (in thousands) 2020 2019 Income tax payments, net $ 1,438 $ 32 Interest payments on our U.S. Revolving Credit Facility $ 8,110 $ 6,921 Interest payments on our Last Out Term Loans 6,140 1,022 Total cash paid for interest $ 14,250 $ 7,943 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of AOCI, net of tax, for the first two quarters of 2020 and 2019 were as follows: (in thousands) Currency translation (loss) gain Net unrecognized loss related to benefit plans (net of tax) Total Balance at December 31, 2019 $ 5,743 $ (3,817 ) $ 1,926 Other comprehensive income (loss) before reclassifications 2,380 — 2,380 Reclassified from AOCI to net income (loss) — (246 ) (246 ) Net other comprehensive income (loss) 2,380 (246 ) 2,134 Balance at March 31, 2020 $ 8,123 $ (4,063 ) $ 4,060 Other comprehensive income (loss) before reclassifications (4,095 ) — (4,095 ) Reclassified from AOCI to net income (loss) — (246 ) (246 ) Net other comprehensive income (loss) (4,095 ) (246 ) (4,341 ) Balance at June 30, 2020 $ 4,028 $ (4,309 ) $ (281 ) (in thousands) Currency translation (loss) gain Net unrealized gain (loss) on derivative instruments (1) Net unrecognized loss related to benefit plans (net of tax) Total Balance at December 31, 2018 $ (10,834 ) $ 1,362 $ (1,960 ) $ (11,432 ) Other comprehensive income (loss) before reclassifications 10,260 (1,178 ) — 9,082 Reclassified from AOCI to net income (loss) — 224 (356 ) (132 ) Net other comprehensive income (loss) 10,260 (954 ) (356 ) 8,950 Balance at March 31, 2019 $ (574 ) $ 408 $ (2,316 ) $ (2,482 ) Other comprehensive loss before reclassifications (7,979 ) (189 ) — (8,168 ) Reclassified from AOCI to net income (loss) 3,176 (22 ) (514 ) 2,640 Net other comprehensive (loss) income (4,803 ) (211 ) (514 ) (5,528 ) Balance at June 30, 2019 $ (5,377 ) $ 197 $ (2,830 ) $ (8,010 ) (1) The remaining unrealized FX gain/(loss) is expected to be recognized over time as the related projects are completed. |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands): AOCI component Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Release of currency translation gain with the sale of equity method investment and the sale of business Loss on sale of business $ — $ (3,176 ) $ — $ (3,176 ) Derivative financial instruments Other – net — 22 — (202 ) Net loss $ — $ (3,154 ) $ — $ (3,378 ) Amortization of prior service cost on benefit obligations Benefit plans, net 246 514 492 870 Net income $ 246 $ 514 $ 492 $ 870 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Assets and Liabilities | The following tables summarize 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 June 30, 2020 Level 1 Level 2 Corporate notes and bonds $ 9,465 $ 9,465 $ — Mutual funds 577 — 577 United States Government and agency securities 5,617 5,617 — Total fair value of available-for-sale securities $ 15,659 $ 15,082 $ 577 (in thousands) Available-for-sale securities December 31, 2019 Level 1 Level 2 Corporate notes and bonds $ 8,310 $ 8,310 $ — Mutual funds 587 — 587 United States Government and agency securities 3,868 3,868 — Total fair value of available-for-sale securities $ 12,765 $ 12,178 $ 587 |
ASSETS HELD FOR SALE, DIVESTI_2
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Carrying Value of Assets and Liabilities Held for Sale | The following table summarizes the carrying value of the assets and liabilities held for sale at June 30, 2020 and December 31, 2019 : (in thousands) June 30, 2020 December 31, 2019 Accounts receivable – trade, net $ 3,289 $ 5,472 Accounts receivable – other 150 147 Contracts in progress 452 586 Inventories 2,646 1,555 Other current assets 189 329 Current assets held for sale 6,726 8,089 Net property, plant and equipment 6,537 6,534 Intangible assets 708 725 Right-of-use-asset 34 63 Other assets 17 — Non-current assets held for sale 7,296 7,322 Total assets held for sale $ 14,022 $ 15,411 Accounts payable $ 5,719 $ 7,898 Accrued employee benefits 453 430 Advance billings on contracts 90 227 Accrued warranty expense 472 515 Operating lease liabilities 18 6 Other accrued liabilities 785 462 Current liabilities held for sale 7,537 9,538 Non-current liabilities held for sale 46 — Total liabilities held for sale $ 7,583 $ 9,538 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | May 14, 2020 | Apr. 06, 2020 | Mar. 27, 2020 | Mar. 17, 2020 | Jan. 31, 2020 | Apr. 30, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||||||
Additional expected benefit payment | $ 46 | ||||||
Amount received after remaining escrow is settled | $ 3.5 | $ 4.5 | |||||
Percent reduction of deferred cash compensation | 50.00% | ||||||
Deferred contribution payments | $ 5.5 | ||||||
Chief Strategy Officer | |||||||
Debt Instrument [Line Items] | |||||||
Percentage reduction of base salaries | 50.00% | ||||||
Chief Financial Officer | |||||||
Debt Instrument [Line Items] | |||||||
Percentage reduction of base salaries | 30.00% | ||||||
Senior Vice President | |||||||
Debt Instrument [Line Items] | |||||||
Percentage reduction of base salaries | 30.00% | ||||||
United States | Pension Benefits | |||||||
Debt Instrument [Line Items] | |||||||
Additional expected benefit payment | 25 | ||||||
BPRI Executive Consulting, LLC | Chief Executive Officer | |||||||
Debt Instrument [Line Items] | |||||||
Deferral percentage of monthly fee payment | 50.00% | ||||||
Amended Credit Agreement | Last Out Term Loan Tranche A-4 | B. Riley Financial, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from related party | $ 30 | ||||||
A&R Credit Agreement | Last Out Term Loan Tranche A-6 | B. Riley Financial, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from related party | $ 30 | $ 70 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 24, 2019 | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | |
Earnings Per Share [Abstract] | ||||||
Loss from continuing operations | $ | $ (17,991) | $ (28,334) | $ (51,430) | $ (78,099) | ||
Loss (income) from discontinued operations, net of tax | $ | (113) | 694 | 1,800 | 694 | ||
Net loss attributable to stockholders | $ | $ (18,104) | $ (27,640) | $ (49,630) | $ (77,405) | ||
Weighted average shares used to calculate basic and diluted earnings per share (in shares) | shares | [1] | 46,853 | 18,366 | 46,628 | 18,362 | |
Basic and diluted loss per share - continuing operations (in dollars per share) | $ / shares | $ (0.39) | $ (1.54) | $ (1.10) | $ (4.26) | ||
Basic and diluted earnings per share - discontinued operations (in dollars per share) | $ / shares | 0 | 0.04 | 0.04 | 0.04 | ||
Basic and diluted loss per share (in dollars per share) | $ / shares | $ (0.39) | $ (1.50) | $ (1.06) | $ (4.22) | ||
Reverse stock split | 0.1 | |||||
[1] | Basic and diluted shares at June 30, 2019 reflect the bonus element for the 2019 Rights Offering on July 23, 2019 and the one-for-ten reverse stock split on July 24, 2019. |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2019factor | Jun. 30, 2020shares | Jun. 30, 2019shares | Jun. 30, 2020shares | Jun. 30, 2019shares | |
Earnings Per Share [Abstract] | |||||
Factor for retroactive adjustment | factor | 1.0875 | ||||
Weighted average shares outstanding prior to the rights offering (in shares) | 16,888,000 | 16,884,000 | |||
Excluded shares from the WAS to calculated diluted EPS as company was in a net loss position (in shares) | 33,300 | 25,700 | 216,100 | 35,800 | |
Antidilutive securities excluded from computation of EPS (in shares) | 1,500,000 | 300,000 | 1,700,000 | 300,000 |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Operating Results by Segment (Details) $ in Thousands, £ in Millions | Apr. 05, 2019USD ($) | Apr. 05, 2019GBP (£) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 135,397 | $ 248,115 | $ 283,951 | $ 480,051 | ||
Adjusted EBITDA | 1,429 | 8,244 | 2,114 | 3,868 | ||
Research and development costs | (1,231) | (710) | (2,572) | (1,453) | ||
Restructuring activities | (2,392) | (936) | (4,343) | (7,015) | ||
Financial advisory services | (582) | (3,197) | (1,511) | (7,155) | ||
Settlement cost to amend Vølund contract | $ (6,600) | £ (5) | 0 | 0 | 0 | (6,575) |
Advisory fees for settlement costs and liquidity planning | (1,155) | (1,581) | (3,769) | (4,658) | ||
Litigation legal costs | (252) | 0 | (948) | 0 | ||
Stock compensation | (1,187) | (210) | (1,899) | (801) | ||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax | 470 | 0 | (318) | 0 | ||
Depreciation & amortization | (4,032) | (6,536) | (8,240) | (13,842) | ||
Gain (loss) on asset disposals, net | (2) | (42) | 913 | (42) | ||
Operating loss | (7,703) | (4,258) | (18,001) | (36,220) | ||
Interest expense, net | (15,259) | (26,636) | (37,310) | (37,211) | ||
Loss on debt extinguishment | (6,194) | (3,969) | (6,194) | (3,969) | ||
Loss on sale of business | (108) | (3,601) | (108) | (3,601) | ||
Net pension benefit before MTM | 7,450 | 3,333 | 14,986 | 6,761 | ||
MTM loss from benefit plans | 0 | (862) | 0 | (1,260) | ||
Foreign exchange | 7,112 | 9,506 | (2,214) | (647) | ||
Other – net | (2,586) | 43 | (2,792) | 463 | ||
Loss before income tax (benefit) expense | (17,288) | (26,444) | (51,633) | (75,684) | ||
Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (496) | (9,378) | (544) | (24,434) | ||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | (3,807) | (9,323) | (7,950) | (13,914) | ||
Stock compensation | 0 | (400) | ||||
Research and development costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Research and development costs | (1,231) | (710) | (2,572) | (1,453) | ||
Babcock & Wilcox segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 104,790 | 200,964 | 226,746 | 389,522 | ||
Stock compensation | (100) | (200) | ||||
Babcock & Wilcox segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | 9,498 | 19,137 | 20,152 | 28,226 | ||
Babcock & Wilcox segment | Operating Segments | Retrofits | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 30,240 | 44,923 | 59,888 | 75,597 | ||
Babcock & Wilcox segment | Operating Segments | New build utility and environmental | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 5,438 | 55,377 | 11,989 | 124,284 | ||
Babcock & Wilcox segment | Operating Segments | Aftermarket parts and field engineering services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 52,788 | 64,308 | 116,478 | 127,395 | ||
Babcock & Wilcox segment | Operating Segments | Industrial steam generation | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 19,173 | 49,357 | 42,730 | 96,367 | ||
Babcock & Wilcox segment | Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | (2,849) | (13,001) | (4,339) | (34,121) | ||
Vølund & Other Renewable segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 20,250 | 33,695 | 35,559 | 63,227 | ||
Stock compensation | (100) | (100) | ||||
Vølund & Other Renewable segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | (506) | (718) | (3,799) | (9,507) | ||
Vølund & Other Renewable segment | Operating Segments | Renewable new build and services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 16,746 | 31,553 | 28,559 | 61,086 | ||
Vølund & Other Renewable segment | Operating Segments | Operations and maintenance services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 3,504 | 2,313 | 7,002 | 2,873 | ||
Vølund & Other Renewable segment | Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 0 | (171) | (2) | (732) | ||
SPIG segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 10,853 | 22,834 | 22,190 | 51,736 | ||
SPIG segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted EBITDA | (2,525) | (142) | (3,717) | 516 | ||
SPIG segment | Operating Segments | New build cooling systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 5,950 | 17,385 | 12,952 | 38,391 | ||
SPIG segment | Operating Segments | Aftermarket cooling system services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,903 | 7,303 | 9,242 | 15,474 | ||
SPIG segment | Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 0 | $ (1,854) | $ (4) | $ (2,129) |
REVENUE RECOGNITION AND CONTR_3
REVENUE RECOGNITION AND CONTRACTS - Revenue Recognition (Details) - segment | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Number of reportable segments | 3 | |||
Transferred at Point in Time | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Percent of revenue | 31.00% | 18.00% | 31.00% | 18.00% |
Transferred over Time | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Percent of revenue | 69.00% | 82.00% | 69.00% | 82.00% |
REVENUE RECOGNITION AND CONTR_4
REVENUE RECOGNITION AND CONTRACTS - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Contract assets - included in contracts in progress: | |||||
Costs incurred less costs of revenue recognized | $ 34,507 | $ 29,877 | |||
Revenues recognized less billings to customers | 51,584 | 61,702 | |||
Contracts in progress | $ 86,091 | 86,091 | 91,579 | ||
Contract liabilities - included in advance billings on contracts: | |||||
Billings to customers less revenues recognized | 59,543 | 76,468 | |||
Costs of revenue recognized less cost incurred | 1,434 | (1,181) | |||
Advance billings on contracts | 60,977 | 60,977 | 75,287 | ||
Net contract balance | 25,114 | 16,292 | |||
Accrued contract losses | 1,707 | $ 6,139 | |||
Transferred over Time | |||||
Contract liabilities - included in advance billings on contracts: | |||||
Increases in gross profits for changes in estimates for over time contracts | 4,037 | $ 8,088 | 7,561 | $ 15,894 | |
Decreases in gross profits for changes in estimates for over time contracts | (5,102) | (16,051) | (5,288) | (23,728) | |
Net changes in gross profits for changes in estimates for over time contracts | (1,065) | $ (7,963) | 2,273 | $ (7,834) | |
Accounting Standards Update 2014-09 | Topic 606 | |||||
Contract assets - included in contracts in progress: | |||||
Costs incurred less costs of revenue recognized | $ 4,630 | ||||
Costs incurred less costs of revenue recognized, % Change | 15.00% | ||||
Revenues recognized less billings to customers | $ (10,118) | ||||
Revenues recognized less billings to customers, % Change | (16.00%) | ||||
Contracts in progress | $ (5,488) | $ (5,488) | |||
Contracts in progress, % Change | (6.00%) | (6.00%) | |||
Contract liabilities - included in advance billings on contracts: | |||||
Billings to customers less revenues recognized | $ (16,925) | ||||
Billings to customers less revenues recognized, % Change | (22.00%) | ||||
Costs of revenue recognized less cost incurred | $ 2,615 | ||||
Costs of revenue recognized less cost incurred, % Change | (221.00%) | ||||
Advance billings on contracts | $ (14,310) | $ (14,310) | |||
Advance billings on contracts, % Change | (19.00%) | (19.00%) | |||
Net contract balance | $ 8,822 | ||||
Net contract balance, % Change | 54.00% | ||||
Accrued contract losses | $ (4,432) | ||||
Accrued contract losses, % Change | (72.00%) |
REVENUE RECOGNITION AND CONTR_5
REVENUE RECOGNITION AND CONTRACTS - Backlog (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 457 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations (as a percent) | 29.10% |
Expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations (as a percent) | 33.90% |
Expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations (as a percent) | 37.00% |
Expected timing of satisfaction, period |
REVENUE RECOGNITION AND CONTR_6
REVENUE RECOGNITION AND CONTRACTS - Volund EPC Loss Contracts (Details) £ in Millions | Apr. 05, 2019USD ($) | Apr. 05, 2019GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2019GBP (£) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($) | Dec. 31, 2017contract |
Disaggregation of Revenue [Line Items] | |||||||||||
Number of contracts in a loss position | contract | 6 | ||||||||||
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $ (400,000) | $ (3,200,000) | $ (300,000) | $ (7,400,000) | |||||||
Number of contracts with an increase in estimates of anticipated liquidated damages | contract | 6 | ||||||||||
Increase (decrease) in estimate of liquidated damages | 0 | (400,000) | $ 0 | (400,000) | |||||||
Estimate of anticipated liquidated damages | $ 88,200,000 | 88,200,000 | 88,200,000 | 88,200,000 | 88,200,000 | ||||||
Settlement cost to amend Vølund contract | $ 6,600,000 | £ 5 | 0 | 0 | 0 | $ 6,575,000 | |||||
First European renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 9,100,000 | $ 9,100,000 | |||||||||
Percentage of completion on European renewable energy project | 100.00% | 97.00% | |||||||||
Change in construction cost estimates | (800,000) | (2,000,000) | $ (800,000) | $ (2,000,000) | |||||||
Reserve for estimated contract losses | 400,000 | 400,000 | |||||||||
Contract, accrued losses | 3,200,000 | 3,200,000 | $ 3,200,000 | ||||||||
Second European renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 19,000,000 | $ 19,000,000 | |||||||||
Percentage of completion on European renewable energy project | 100.00% | 100.00% | |||||||||
Change in construction cost estimates | 0 | (1,200,000) | $ (100,000) | $ (1,900,000) | |||||||
Reserve for estimated contract losses | 0 | 0 | |||||||||
Contract, accrued losses | 100,000 | 100,000 | $ 100,000 | ||||||||
Third European renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 6,700,000 | $ 6,700,000 | |||||||||
Percentage of completion on European renewable energy project | 100.00% | 100.00% | |||||||||
Change in construction cost estimates | 0 | ||||||||||
Reserve for estimated contract losses | 0 | $ 0 | |||||||||
Contract, accrued losses | 100,000 | 100,000 | $ 100,000 | ||||||||
Reduction (increase) in estimated contract losses at completion | 0 | 0 | $ 0 | ||||||||
Fourth European renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 20,800,000 | $ 20,800,000 | |||||||||
Percentage of completion on European renewable energy project | 100.00% | 99.00% | |||||||||
Change in construction cost estimates | (100,000) | $ (200,000) | |||||||||
Reserve for estimated contract losses | 0 | 0 | |||||||||
Contract, accrued losses | 400,000 | 400,000 | $ 400,000 | ||||||||
Reduction (increase) in estimated contract losses at completion | (4,000,000) | $ (4,300,000) | |||||||||
Fifth European Renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 13,600,000 | $ 13,600,000 | |||||||||
Payment for limiting obligations | 91,500,000 | £ 70 | 3,500,000 | £ 2.8 | |||||||
Rejection clause | $ 144,000,000 | ||||||||||
Rejection clause settlement reserve | $ 81,100,000 | ||||||||||
Percentage of completion on European renewable energy project | 100.00% | 97.00% | |||||||||
Change in construction cost estimates | 100,000 | 4,000,000 | $ 400,000 | $ 1,800,000 | |||||||
Reserve for estimated contract losses | 0 | 0 | |||||||||
Contract, accrued losses | 5,300,000 | 5,300,000 | $ 5,300,000 | ||||||||
Structural steel beam costs | 36,000,000 | ||||||||||
Sixth European renewable project | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Estimate of anticipated liquidated damages | 19,000,000 | $ 19,000,000 | |||||||||
Percentage of completion on European renewable energy project | 99.00% | 99.00% | |||||||||
Change in construction cost estimates | (100,000) | $ 400,000 | $ (900,000) | ||||||||
Reserve for estimated contract losses | 200,000 | 200,000 | |||||||||
Contract, accrued losses | $ 200,000 | 200,000 | 200,000 | ||||||||
Other renewable energy projects | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $ (200,000) | ||||||||||
Change in construction cost estimates | $ 0 | $ (1,300,000) | $ 0 | $ (1,500,000) |
REVENUE RECOGNITION AND CONTR_7
REVENUE RECOGNITION AND CONTRACTS - SPIG's Loss Contract (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($) | Dec. 31, 2017contract | |
Disaggregation of Revenue [Line Items] | |||||
Number of contracts in a loss position | contract | 6 | ||||
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $ (400,000) | $ (3,200,000) | $ (300,000) | $ (7,400,000) | |
SPIG segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of contracts in a loss position | contract | 2 | 2 | |||
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $ 0 | $ 0 | |||
SPIG segment | First SPIG Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Percent complete | 99.00% | 96.00% | 99.00% | 96.00% | |
Reserve for estimated contract losses | $ 0 | $ 0 | |||
Contract, accrued losses | $ 600,000 | $ 600,000 | |||
SPIG segment | Second SPIG Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $ 700,000 | $ 700,000 | |||
Percent complete | 96.00% | 97.00% | 96.00% | 97.00% | |
Reserve for estimated contract losses | $ 300,000 | $ 300,000 | |||
Contract, accrued losses | $ 100,000 | $ 100,000 | |||
Additional contract charges | $ 3,300,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 41,832 | $ 42,685 |
Work in progress | 7,666 | 7,502 |
Finished goods | 11,892 | 12,916 |
Total inventories | $ 61,390 | $ 63,103 |
PROPERTY, PLANT & EQUIPMENT, _3
PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - gross | $ 244,902 | $ 247,223 |
Less accumulated depreciation | 183,831 | 180,562 |
Net property, plant and equipment | 61,071 | 66,661 |
Finance lease | 30,549 | 30,405 |
Less finance lease accumulated amortization | 1,043 | 13 |
Net property, plant and equipment, and finance lease | 90,577 | 97,053 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - gross | 3,005 | 2,998 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - gross | 83,570 | 84,005 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - gross | 152,491 | 154,016 |
Property under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment - gross | $ 5,836 | $ 6,204 |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 47,160 |
Currency translation adjustments | (140) |
Ending balance | $ 47,020 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Goodwill and other intangible asset impairment | $ 0 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | $ 63,634 | $ 63,552 |
Accumulated amortization | (41,274) | (39,557) |
Net definite-lived intangible assets | 22,360 | 23,995 |
Indefinite-lived intangible assets | ||
Total intangible assets, net | 23,665 | 25,300 |
Trademarks and trade names | ||
Indefinite-lived intangible assets | ||
Trademarks and trade names | 1,305 | 1,305 |
Customer relationships | ||
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | 24,444 | 24,440 |
Accumulated amortization | (19,119) | (18,616) |
Unpatented technology | ||
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | 14,939 | 14,917 |
Accumulated amortization | (5,972) | (5,245) |
Patented technology | ||
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | 2,601 | 2,598 |
Accumulated amortization | (2,538) | (2,476) |
Tradename | ||
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | 12,402 | 12,372 |
Accumulated amortization | (4,539) | (4,257) |
All other | ||
Definite-lived intangible assets | ||
Gross value of definite-lived intangible assets | 9,248 | 9,225 |
Accumulated amortization | $ (9,106) | $ (8,963) |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Intangible Assets [Roll Forward] | ||
Balance at beginning of period | $ 25,300 | $ 30,793 |
Amortization expense | (1,716) | (2,331) |
Currency translation adjustments and other | 81 | (67) |
Balance at end of the period | $ 23,665 | $ 28,395 |
INTANGIBLE ASSETS - Estimated F
INTANGIBLE ASSETS - Estimated Future Intangible Asset Amortization (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Year ending December 31, 2020 | $ 1,590 |
Year ending December 31, 2021 | 3,057 |
Year ending December 31, 2022 | 3,034 |
Year ending December 31, 2023 | 3,033 |
Year ending December 31, 2024 | 2,960 |
Year ending December 31, 2025 | 2,470 |
Thereafter | $ 6,216 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Operating lease expense | $ 1,389 | $ 1,589 | $ 2,896 | $ 3,498 | |
Short-term lease expense | 292 | 2,335 | 480 | 5,196 | |
Variable lease expense | (382) | 871 | 394 | 983 | |
Total operating lease expense | 1,299 | 4,795 | 3,770 | 9,677 | |
Amortization of right-of-use assets | 514 | 0 | 1,029 | 0 | |
Interest on lease liabilities | 616 | 0 | 1,231 | 0 | $ 14 |
Total finance lease expense | 1,130 | 0 | 2,260 | 0 | |
Sublease income | (21) | (14) | (43) | (24) | |
Net lease cost | $ 2,408 | $ 4,781 | $ 5,987 | $ 9,653 |
LEASES - Other Information Rela
LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ 2,743 | $ 6,578 | |||
Operating cash flows from finance leases | $ 616 | $ 0 | 1,231 | $ 0 | 14 |
Financing cash flows from finance leases | (399) | (12) | |||
Right-of-use assets obtained in exchange for lease liabilities: | |||||
Operating leases | 1,196 | 3,014 | |||
Finance leases | $ 146 | $ 30,404 | |||
Weighted-average remaining lease term: | |||||
Operating leases (in years) | 3 years 2 months 20 days | 3 years 2 months 20 days | 3 years 4 months 24 days | ||
Finance leases (in years) | 14 years 4 months 25 days | 14 years 4 months 25 days | 14 years 11 months 22 days | ||
Weighted-average discount rate: | |||||
Operating leases | 9.14% | 9.14% | 9.27% | ||
Finance leases | 8.00% | 8.00% | 8.00% |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease assets | $ 11,367 | $ 12,498 |
Finance lease assets | 29,506 | 30,392 |
Total non-current lease assets | 40,873 | 42,890 |
Current | ||
Operating lease liabilities | 4,280 | 4,323 |
Finance lease liabilities | 820 | (38) |
Non-current | ||
Operating lease liabilities | 7,374 | 8,388 |
Finance lease liabilities | 30,140 | 30,454 |
Total lease liabilities | $ 42,614 | $ 43,127 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments Required (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Operating Leases | |
2020 (excluding the six months ended June 30, 2020) | $ 2,762 |
2021 | 4,227 |
2022 | 3,007 |
2023 | 2,034 |
2024 | 1,236 |
Thereafter | 106 |
Total | 13,372 |
Less imputed interest | (1,718) |
Lease liability | 11,654 |
Finance Leases | |
2020 (excluding the six months ended June 30, 2020) | 1,607 |
2021 | 3,277 |
2022 | 3,342 |
2023 | 3,408 |
2024 | 3,472 |
Thereafter | 38,285 |
Total | 53,391 |
Less imputed interest | (22,431) |
Lease liability | 30,960 |
Total | |
2020 (excluding the six months ended June 30, 2020) | 4,369 |
2021 | 7,504 |
2022 | 6,349 |
2023 | 5,442 |
2024 | 4,708 |
Thereafter | 38,391 |
Total | 66,763 |
Less imputed interest | (24,149) |
Lease liability | $ 42,614 |
ACCRUED WARRANTY EXPENSE (Detai
ACCRUED WARRANTY EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Movement in Extended Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 33,376 | $ 45,117 | |
Additions | 2,063 | 2,717 | |
Expirations and other changes | (1,584) | (4,412) | |
Payments | (5,410) | (3,641) | |
Translation and other | 46 | (192) | |
Balance at end of period | $ 39,589 | $ 28,491 | 39,589 |
Warranty reversal | $ 3,900 | $ 3,900 |
RESTRUCTURING ACTIVITIES (Detai
RESTRUCTURING ACTIVITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total | $ 2,392 | $ 936 | $ 4,343 | $ 7,015 |
Severance and related costs | 612 | 936 | 1,713 | 7,015 |
COVID-19 related costs | 942 | 942 | ||
Other | 838 | 1,688 | ||
Babcock & Wilcox segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 1,514 | 2,837 | ||
Severance and related costs | 566 | 127 | 1,108 | 4,075 |
COVID-19 related costs | 274 | 274 | ||
Other | 674 | 1,455 | ||
Vølund & Other Renewable segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 622 | 1,181 | ||
Severance and related costs | 46 | 437 | 605 | 1,015 |
COVID-19 related costs | 576 | 576 | ||
Other | 0 | 0 | ||
SPIG segment | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 0 | 0 | ||
Severance and related costs | 0 | 258 | 0 | 401 |
COVID-19 related costs | 0 | 0 | ||
Other | 0 | 0 | ||
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total | 256 | 325 | ||
Severance and related costs | 0 | $ 114 | 0 | $ 1,524 |
COVID-19 related costs | 92 | 92 | ||
Other | $ 164 | $ 233 |
RESTRUCTURING ACTIVITIES - Rest
RESTRUCTURING ACTIVITIES - Restructuring Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 5,341 | $ 10,196 | $ 5,358 | $ 7,359 |
Restructuring expense | 2,392 | 936 | 4,343 | 7,015 |
Payments | (2,646) | (4,158) | (4,614) | (7,400) |
Balance at end of period | $ 5,087 | $ 6,974 | $ 5,087 | $ 6,974 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 8,250 | $ 10,965 | $ 16,511 | $ 21,822 |
Expected return on plan assets | (15,544) | (13,905) | (31,185) | (27,799) |
Amortization of prior service cost | 43 | 27 | 86 | 55 |
Recognized net actuarial (gain) loss | 0 | 862 | 0 | 1,260 |
Benefit plans, net | (7,251) | (2,051) | (14,588) | (4,662) |
Service cost included in COS | 209 | 150 | 420 | 300 |
Net periodic benefit cost (benefit) | (7,042) | (1,901) | (14,168) | (4,362) |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 72 | 119 | 144 | 239 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (271) | (539) | (542) | (1,078) |
Recognized net actuarial (gain) loss | 0 | 0 | 0 | 0 |
Benefit plans, net | (199) | (420) | (398) | (839) |
Service cost included in COS | 4 | 4 | 9 | 8 |
Net periodic benefit cost (benefit) | $ (195) | $ (416) | $ (389) | $ (831) |
PENSION PLANS AND OTHER POSTR_4
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - USD ($) | Mar. 27, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Gain (loss) on sale mark to market adjustments | $ 0 | $ 900,000 | $ 0 | $ 1,300,000 | |
Company contributions | 600,000 | $ 1,400,000 | 1,100,000 | $ 2,800,000 | |
Additional expected benefit payment | 46,000,000 | 46,000,000 | |||
Deferred contribution payments | $ 5,500,000 | ||||
2018 Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Additional expected benefit payment | 1,100,000 | 1,100,000 | |||
2019 Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Additional expected benefit payment | 23,700,000 | 23,700,000 | |||
2020 Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Additional expected benefit payment | 16,500,000 | 16,500,000 | |||
Pension Benefits | United States | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Additional expected benefit payment | 25,000,000 | 25,000,000 | |||
Other Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Additional expected benefit payment | $ 4,500,000 | $ 4,500,000 |
REVOLVING DEBT - Narrative (Det
REVOLVING DEBT - Narrative (Details) | Nov. 30, 2020USD ($) | May 14, 2020USD ($)day$ / shares | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | May 01, 2021USD ($) | Apr. 30, 2021USD ($) | Jun. 08, 2020shares | Jun. 05, 2020$ / shares | Jan. 31, 2020USD ($) | Dec. 31, 2019USD ($)$ / sharesshares |
Debt Instrument [Line Items] | ||||||||||
Borrowing amount | $ 164,700,000 | $ 179,000,000 | ||||||||
Common stock, issued (in shares) | shares | 49,312,000 | 46,374,000 | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Deferred ticking fee expense | $ 6,700,000 | |||||||||
Effective interest rate | 7.53% | |||||||||
Letters of credit outstanding | $ 30,700,000 | |||||||||
Letters of credit not secured by the US Credit Facility | 81,700,000 | $ 88,500,000 | ||||||||
Letters of credit subject to foreign currency revaluation | 35,200,000 | |||||||||
Guarantor obligations | 272,000,000 | |||||||||
Surety Bond | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | $ 31,700,000 | |||||||||
A&R Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 205,000,000 | ||||||||
Fixed rate per annum | 12.00% | |||||||||
Minimum require liquidity condition | $ 30,000,000 | |||||||||
Cash of non-loan parties, excess amount | 25,000,000 | |||||||||
A&R Credit Agreement | Subsequent Event | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Decrease in credit facility | $ 10,000,000 | $ 5,000,000 | ||||||||
Amount available in currencies other than U.S. | $ 125,000,000 | |||||||||
Amount available in currencies other than U.S., step down | $ 110,000,000 | |||||||||
A&R Credit Agreement | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||||
Commitment fee percentage | 4.00% | |||||||||
Third-party letter of credit basket | $ 50,000,000 | |||||||||
Execution fee payable | 3,900,000 | |||||||||
Interest payments due under credit agreement | $ 13,400,000 | |||||||||
Number of trading days | day | 15 | |||||||||
Conversation price threshold (in dollars per share) | $ / shares | $ 1.55 | |||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 2.2774 | |||||||||
A&R Credit Agreement | Letter of Credit | Subsequent Event | Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 190,000,000 | |||||||||
Borrowing capacity, step down | $ 175,000,000 | |||||||||
A&R Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 7.00% | |||||||||
Percentage margins will be reduced by | 2.00% | |||||||||
A&R Credit Agreement | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 6.00% | |||||||||
A&R Credit Agreement | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Governmental assistance principal amount | $ 10,000,000 | |||||||||
A&R Credit Agreement | B. Riley Financial, Inc. | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Common stock, issued (in shares) | shares | 1,192,371 | 1,712,479 | ||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Remaining borrowing capacity | $ 41,800,000 | |||||||||
Additional borrowing capacity | 40,300,000 | |||||||||
Last Out Term Loan Tranche A-6 | A&R Credit Agreement | B. Riley Financial, Inc. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from related party | 30,000,000 | 70,000,000 | ||||||||
Proceeds from issuance of debt | $ 40,000,000 | |||||||||
Installment proceeds | 35,000,000 | |||||||||
Proceeds available upon request | 5,000,000 | |||||||||
Senior Secured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 326,900,000 | |||||||||
Senior Secured Revolving Credit Facility | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | 95,400,000 | |||||||||
Financial Standby Letter of Credit | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Letters of credit outstanding | $ 25,000,000 |
LAST OUT TERM LOANS (Details)
LAST OUT TERM LOANS (Details) - USD ($) | May 14, 2020 | Jan. 31, 2020 | Jul. 23, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 08, 2020 | Oct. 31, 2018 |
Debt Instrument [Line Items] | |||||||||||
Loss on debt extinguishment | $ (6,194,000) | $ (3,969,000) | $ (6,194,000) | $ (3,969,000) | |||||||
Effective interest rate | 7.53% | 7.53% | |||||||||
Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate per annum | 12.00% | ||||||||||
A&R Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate per annum | 12.00% | ||||||||||
B. Riley Financial, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Common stock issued equitization agreement (in shares) | 1,192,371 | 1,192,371 | 1,700,000 | ||||||||
Last Out Term Loan Tranche A-3 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Effective interest rate | 12.00% | 12.00% | |||||||||
Last Out Term Loan Tranche A-3 | Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt prepayment amount | $ 39,700,000 | ||||||||||
Borrowings under last out term loans | $ 141,400,000 | ||||||||||
Last Out Term Loan Tranche A-3 | B. Riley Financial, Inc. | Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party | 150,000,000 | ||||||||||
Last Out Term Loan Tranche A-4 | B. Riley Financial, Inc. | Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party | $ 30,000,000 | ||||||||||
Borrowings under last out term loans | 26,300,000 | ||||||||||
Borrowing fees | $ 3,700,000 | ||||||||||
Last Out Term Loan Tranche A-6 | B. Riley Financial, Inc. | A&R Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party | $ 30,000,000 | 70,000,000 | |||||||||
Borrowings under last out term loans | $ 30,000,000 | ||||||||||
Installment proceeds | 35,000,000 | ||||||||||
Proceeds available upon request | 5,000,000 | ||||||||||
Last Out Term Loan Tranche A-1 | B. Riley Financial, Inc. | Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 30,000,000 | ||||||||||
Last Out Term Loan Tranche A-2 | B. Riley Financial, Inc. | Amended Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party | $ 10,000,000 | ||||||||||
Last Out Term Loan Tranche A-7 | B. Riley Financial, Inc. | A&R Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds from related party | 50,000,000 | ||||||||||
Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds | 161,660,000 | ||||||||||
Discount and fees | $ 8,650,000 | 8,650,000 | |||||||||
Paid-in-kind interest | 3,020,000 | 3,020,000 | |||||||||
Net debt balance | 173,330,000 | 173,330,000 | |||||||||
Line of Credit | Last Out Term Loan Tranche A-3 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds | 101,660,000 | $ 101,660,000 | |||||||||
Discount and fees | 8,650,000 | 8,650,000 | 8,650,000 | ||||||||
Paid-in-kind interest | 3,020,000 | 3,020,000 | 3,020,000 | ||||||||
Principal | 113,330,000 | ||||||||||
Unamortized debt discount and financing fees | (9,377,000) | ||||||||||
Net debt balance | 113,330,000 | 113,330,000 | $ 103,953,000 | ||||||||
Line of Credit | Last Out Term Loan Tranche A-4 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds | 30,000,000 | ||||||||||
Discount and fees | 0 | 0 | |||||||||
Paid-in-kind interest | 0 | 0 | |||||||||
Net debt balance | 30,000,000 | 30,000,000 | |||||||||
Line of Credit | Last Out Term Loan Tranche A-6 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds | 30,000,000 | ||||||||||
Discount and fees | 0 | 0 | |||||||||
Paid-in-kind interest | 0 | 0 | |||||||||
Net debt balance | $ 30,000,000 | $ 30,000,000 |
INTEREST EXPENSE AND SUPPLEME_3
INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Interest expense on borrowings | $ 8,237 | $ 11,288 | $ 16,323 | $ 16,411 |
Amortization of deferred origination fees, net | 5,210 | 15,033 | 18,053 | 20,892 |
Other interest expense | 2,035 | 516 | 3,197 | 668 |
Total interest expense | 15,482 | 26,837 | 37,573 | 37,971 |
Income tax payments, net | 1,438 | 32 | ||
Total cash paid for interest | 14,250 | 7,943 | ||
U.S. Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest expense on borrowings | 3,409 | 3,801 | 7,448 | 7,351 |
Total cash paid for interest | 8,110 | 6,921 | ||
Last Out Term Loans - cash interest | ||||
Debt Instrument [Line Items] | ||||
Interest expense on borrowings | 4,828 | 3,606 | 8,875 | 4,119 |
Amortization of deferred origination fees, net | 1,579 | 1,479 | 3,729 | 2,069 |
Total cash paid for interest | 6,140 | 1,022 | ||
Last Out Term Loans - paid-in-kind interest | ||||
Debt Instrument [Line Items] | ||||
Interest expense on borrowings | 0 | 3,881 | 0 | 4,941 |
U.S. Revolving Credit Facility - deferred financing fees and commitment fees | ||||
Debt Instrument [Line Items] | ||||
Amortization of deferred origination fees, net | 3,629 | 8,880 | 12,664 | 14,149 |
United States revolving credit facility contingent consent fee for Amendment 16 | ||||
Debt Instrument [Line Items] | ||||
Amortization of deferred origination fees, net | 0 | 4,674 | 0 | 4,674 |
U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16 | ||||
Debt Instrument [Line Items] | ||||
Amortization of deferred origination fees, net | $ 2 | $ 0 | $ 1,660 | $ 0 |
INTEREST EXPENSE AND SUPPLEME_4
INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents of continuing operations | $ 36,815 | $ 43,772 | $ 35,190 | $ 43,214 |
Restricted cash and cash equivalents | 11,301 | 13,169 | 9,180 | 17,065 |
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows | 48,116 | 56,941 | 44,370 | 60,279 |
Held by foreign entities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents of continuing operations | 34,676 | 38,921 | 30,932 | 35,522 |
Held by U.S. entities | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents of continuing operations | 2,139 | 4,851 | 4,258 | 7,692 |
Reinsurance reserve requirements | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash and cash equivalents | 5,596 | 9,318 | 5,350 | 11,768 |
Restricted foreign accounts | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash and cash equivalents | 2,661 | 3,851 | 3,830 | 5,297 |
Bank guarantee collateral | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash and cash equivalents | $ 3,044 | $ 0 | $ 0 | $ 0 |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 845 | $ 1,891 | $ 35 | $ 2,517 |
Effective tax rate | (4.90%) | (7.20%) | (0.10%) | (3.30%) |
Favorable (unfavorable) discrete items | $ 1,800 | $ (200) | $ 1,300 | $ 100 |
Minimum | Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 17.50% | |||
Maximum | Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 30.00% |
CONTINGENCIES - Narrative (Deta
CONTINGENCIES - Narrative (Details) $ in Millions | Dec. 27, 2019USD ($) |
Pending Litigation | |
Loss Contingencies [Line Items] | |
Alleged damages | $ 58.9 |
COMPREHENSIVE INCOME - Accumula
COMPREHENSIVE INCOME - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | $ (323,650) | $ (294,939) | $ (317,852) | $ (277,297) | $ (294,939) | $ (277,297) |
Other comprehensive income (loss) before reclassifications | (4,095) | 2,380 | (8,168) | 9,082 | ||
Reclassified from AOCI to net income (loss) | (246) | (246) | 2,640 | (132) | ||
Net other comprehensive income (loss) | (4,341) | 2,134 | (5,528) | 8,950 | (2,207) | 3,422 |
Stockholders' equity, ending balance | (338,700) | (323,650) | (343,035) | (317,852) | (338,700) | (343,035) |
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 4,060 | 1,926 | (2,482) | (11,432) | 1,926 | (11,432) |
Stockholders' equity, ending balance | (281) | 4,060 | (8,010) | (2,482) | (281) | (8,010) |
Currency translation (loss) gain | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 8,123 | 5,743 | (574) | (10,834) | 5,743 | (10,834) |
Other comprehensive income (loss) before reclassifications | (4,095) | 2,380 | (7,979) | 10,260 | ||
Reclassified from AOCI to net income (loss) | 0 | 0 | 3,176 | 0 | ||
Net other comprehensive income (loss) | (4,095) | 2,380 | (4,803) | 10,260 | ||
Stockholders' equity, ending balance | 4,028 | 8,123 | (5,377) | (574) | 4,028 | (5,377) |
Net unrealized gain (loss) on derivative instruments | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 408 | 1,362 | 1,362 | |||
Other comprehensive income (loss) before reclassifications | (189) | (1,178) | ||||
Reclassified from AOCI to net income (loss) | (22) | 224 | ||||
Net other comprehensive income (loss) | (211) | (954) | ||||
Stockholders' equity, ending balance | 197 | 408 | 197 | |||
Net unrecognized loss related to benefit plans (net of tax) | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (4,063) | (3,817) | (2,316) | (1,960) | (3,817) | (1,960) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
Reclassified from AOCI to net income (loss) | (246) | (246) | (514) | (356) | ||
Net other comprehensive income (loss) | (246) | (246) | (514) | (356) | ||
Stockholders' equity, ending balance | $ (4,309) | $ (4,063) | $ (2,830) | $ (2,316) | $ (4,309) | $ (2,830) |
COMPREHENSIVE INCOME - Reclassi
COMPREHENSIVE INCOME - Reclassification out of Accumulated other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss on sale of business | $ (108) | $ (3,601) | $ (108) | $ (3,601) |
Other – net | (2,586) | 43 | (2,792) | 463 |
Benefit plans, net | 7,450 | 2,471 | 14,986 | 5,501 |
Net income | (18,133) | (28,335) | (51,668) | (78,201) |
Reclassification out of Accumulated Other Comprehensive Income | Release of currency translation gain with the sale of equity method investment and the sale of business | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Loss on sale of business | 0 | (3,176) | 0 | (3,176) |
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other – net | 0 | 22 | 0 | (202) |
Net income | 0 | (3,154) | 0 | (3,378) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost on benefit obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Benefit plans, net | 246 | 514 | 492 | 870 |
Net income | $ 246 | $ 514 | $ 492 | $ 870 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Available-for-Sale Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | $ 15,659 | $ 12,765 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 15,082 | 12,178 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 577 | 587 |
Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 9,465 | 8,310 |
Corporate notes and bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 9,465 | 8,310 |
Corporate notes and bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 0 | 0 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 577 | 587 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 0 | 0 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 577 | 587 |
United States Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 5,617 | 3,868 |
United States Government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | 5,617 | 3,868 |
United States Government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of available-for-sale securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) | Jun. 30, 2020 |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available for sale securities contractual maturities | 0 years |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Available for sale securities contractual maturities | 6 years |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Thousands | Aug. 10, 2020USD ($) | Nov. 19, 2018USD ($) | Apr. 30, 2020 | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)individualshares | Jun. 30, 2019USD ($) | Jun. 08, 2020shares |
Related Party Transaction [Line Items] | ||||||||
Number of individuals to serve on the board of directors | individual | 3 | |||||||
BPRI Executive Consulting, LLC | Chief Executive Officer | ||||||||
Related Party Transaction [Line Items] | ||||||||
Deferral percentage of monthly fee payment | 50.00% | |||||||
B. Riley Financial, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common stock issued equitization agreement (in shares) | shares | 1,192,371 | 1,192,371 | 1,700,000 | |||||
Total fees | $ 3,300 | $ 10,100 | $ 7,500 | $ 11,500 | ||||
Financial advisory services | BPRI Executive Consulting, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party payments | $ 750 | |||||||
Cash bonus | $ 2,000 | $ 2,000 | ||||||
Babcock & Wilcox Enterprises, Inc. | B. Riley Capital Management, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percent of common stock | 22.50% | |||||||
Babcock & Wilcox Enterprises, Inc. | Vintage Capital Management, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percent of common stock | 31.80% | |||||||
Subsequent Event | B. Riley Financial, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Performance bond amount | $ 30,000 | |||||||
Indemnity rider fee | $ 600 | |||||||
Indemnity rider fee, payment period | 30 days | |||||||
Indemnity rider fee, percentage of bonded obligation | 2.00% |
ASSETS HELD FOR SALE, DIVESTI_3
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS - Carrying Value of Assets and Liabilities Held for Sale (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||
Accounts receivable – trade, net | $ 3,289 | $ 5,472 |
Accounts receivable – other | 150 | 147 |
Contracts in progress | 452 | 586 |
Inventories | 2,646 | 1,555 |
Other current assets | 189 | 329 |
Current assets held for sale | 6,726 | 8,089 |
Net property, plant and equipment | 6,537 | 6,534 |
Intangible assets | 708 | 725 |
Right-of-use assets | 34 | 63 |
Other assets | 17 | 0 |
Non-current assets held for sale | 7,296 | 7,322 |
Total assets held for sale | 14,022 | 15,411 |
Accounts payable | 5,719 | 7,898 |
Accrued employee benefits | 453 | 430 |
Advance billings on contracts | 90 | 227 |
Accrued warranty expense | 472 | 515 |
Operating lease liabilities | 18 | 6 |
Other accrued liabilities | 785 | 462 |
Current liabilities held for sale | 7,537 | 9,538 |
Non-current liabilities held for sale | 46 | 0 |
Total liabilities held for sale | $ 7,583 | $ 9,538 |
ASSETS HELD FOR SALE, DIVESTI_4
ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands, € in Millions | Apr. 06, 2020USD ($) | Mar. 17, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | May 31, 2019USD ($) | May 31, 2019EUR (€) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Amount received after remaining escrow is settled | $ 3,500 | $ 4,500 | ||||||
Proceeds from sale of business | $ 8,000 | $ 7,445 | ||||||
Gain on sale of business | $ (108) | $ (3,601) | $ (108) | (3,601) | ||||
Lynx Holding GmbH | Discontinued Operations | Loibl GmbH | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Discontinued operation, consideration transferred | $ 11,400 | € 10 | ||||||
Proceeds from sale of business | 7,400 | |||||||
Gain on sale of business | 3,600 | |||||||
Expected transaction costs | $ 700 | $ 700 |