Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 02, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BWXT | |
Entity Registrant Name | BWX Technologies, Inc. | |
Entity Central Index Key | 1,486,957 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 99,708,611 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 317,624 | $ 203,404 |
Restricted cash and cash equivalents | 5,870 | 7,105 |
Investments | 1,824 | 2,934 |
Accounts receivable – trade, net | 200,889 | 189,217 |
Accounts receivable – other | 14,742 | 19,365 |
Contracts in progress | 317,405 | 420,628 |
Other current assets | 32,343 | 30,437 |
Total Current Assets | 890,697 | 873,090 |
Property, Plant and Equipment | 1,034,015 | 1,013,141 |
Less accumulated depreciation | 676,813 | 664,512 |
Net Property, Plant and Equipment | 357,202 | 348,629 |
Investments | 8,932 | 9,301 |
Goodwill | 215,547 | 218,331 |
Deferred Income Taxes | 84,868 | 86,740 |
Investments in Unconsolidated Affiliates | 57,854 | 43,266 |
Intangible Assets | 103,008 | 110,405 |
Other Assets | 24,357 | 22,577 |
TOTAL | 1,742,465 | 1,712,339 |
Current Liabilities: | ||
Current maturities of long-term debt | 14,556 | 27,870 |
Accounts payable | 88,421 | 93,421 |
Accrued employee benefits | 67,417 | 82,477 |
Accrued liabilities – other | 48,377 | 64,738 |
Advance billings on contracts | 77,775 | 246,192 |
Accrued warranty expense | 12,822 | 13,428 |
Total Current Liabilities | 309,368 | 528,126 |
Long-Term Debt | 666,200 | 481,059 |
Accumulated Postretirement Benefit Obligation | 20,065 | 21,368 |
Environmental Liabilities | 80,708 | 79,786 |
Pension Liability | 259,231 | 296,444 |
Other Liabilities | 18,576 | 19,799 |
Commitments and Contingencies (Note 5) | ||
Stockholders' Equity: | ||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 125,748,071 and 125,381,591 shares at June 30, 2018 and December 31, 2017, respectively | 1,257 | 1,254 |
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued | 0 | 0 |
Capital in excess of par value | 108,919 | 98,843 |
Retained earnings | 1,097,665 | 990,652 |
Treasury stock at cost, 26,057,475 and 25,964,088 shares at June 30, 2018 and December 31, 2017, respectively | (820,826) | (814,809) |
Accumulated other comprehensive income | 1,248 | 9,454 |
Stockholders' Equity – BWX Technologies, Inc. | 388,263 | 285,394 |
Noncontrolling interest | 54 | 363 |
Total Stockholders' Equity | 388,317 | 285,757 |
TOTAL | $ 1,742,465 | $ 1,712,339 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 325,000,000 | 325,000,000 |
Common stock, shares issued (in shares) | 125,748,071 | 125,381,591 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Treasury stock at cost, shares (in shares) | 26,057,475 | 25,964,088 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 438,921 | $ 410,011 | $ 896,384 | $ 838,240 |
Costs and Expenses: | ||||
Cost of operations | 318,209 | 278,356 | 645,573 | 581,572 |
Research and development costs | 4,107 | 1,152 | 7,714 | 2,671 |
Gains on asset disposals and impairments, net | (237) | (31) | (245) | (31) |
Selling, general and administrative expenses | 51,518 | 48,433 | 105,280 | 99,530 |
Total Costs and Expenses | 373,597 | 327,910 | 758,322 | 683,742 |
Equity in Income of Investees | 6,225 | 3,327 | 13,375 | 7,202 |
Operating Income | 71,549 | 85,428 | 151,437 | 161,700 |
Other Income (Expense): | ||||
Interest income | 441 | 211 | 1,219 | 348 |
Interest expense | (7,869) | (3,906) | (11,429) | (7,423) |
Other – net | 15,106 | 6,749 | 23,016 | 14,235 |
Total Other Income (Expense) | 7,678 | 3,054 | 12,806 | 7,160 |
Income before Provision for Income Taxes | 79,227 | 88,482 | 164,243 | 168,860 |
Provision for Income Taxes | 18,493 | 27,062 | 37,096 | 51,654 |
Net Income | 60,734 | 61,420 | 127,147 | 117,206 |
Net Income Attributable to Noncontrolling Interest | (71) | (157) | (43) | (224) |
Net Income Attributable to BWX Technologies, Inc. | $ 60,663 | $ 61,263 | $ 127,104 | $ 116,982 |
Basic: | ||||
Net Income Attributable to BWX Technologies, Inc. (in usd per share) | $ 0.61 | $ 0.62 | $ 1.28 | $ 1.18 |
Diluted: | ||||
Net Income Attributable to BWX Technologies, Inc. (in usd per share) | $ 0.60 | $ 0.61 | $ 1.26 | $ 1.16 |
Shares used in the computation of earnings per share (Note 10): | ||||
Basic (in shares) | 99,681,580 | 99,166,205 | 99,603,884 | 99,305,558 |
Diluted (in shares) | 100,571,737 | 100,150,926 | 100,542,014 | 100,420,948 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 60,734 | $ 61,420 | $ 127,147 | $ 117,206 |
Other Comprehensive Income (Loss): | ||||
Currency translation adjustments | (3,609) | 2,044 | (6,733) | 2,835 |
Derivative financial instruments: | ||||
Unrealized (losses) gains arising during the period, net of tax benefit (provision) of $30, $(142), $(29) and $(239), respectively | (127) | 409 | 46 | 688 |
Reclassification adjustment for losses (gains) included in net income, net of tax (benefit) provision of $(21), $58, $9 and $71, respectively | 64 | (170) | (15) | (207) |
Amortization of benefit plan costs, net of tax benefit of $(25), $(157), $(208) and $(313), respectively | 463 | 289 | 785 | 579 |
Investments: | ||||
Unrealized gains (losses) arising during the period, net of tax provision of $0, $(60), $0 and $(130), respectively | 22 | (1,210) | (44) | (1,304) |
Reclassification adjustment for gains included in net income, net of tax provision of $0, $6, $0 and $14, respectively | 0 | (120) | 0 | (134) |
Other Comprehensive Income (Loss) | (3,187) | 1,242 | (5,961) | 2,457 |
Total Comprehensive Income | 57,547 | 62,662 | 121,186 | 119,663 |
Comprehensive Income Attributable to Noncontrolling Interest | (71) | (157) | (43) | (224) |
Comprehensive Income Attributable to BWX Technologies, Inc. | $ 57,476 | $ 62,505 | $ 121,143 | $ 119,439 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax provision of unrealized gains on derivative financial instruments | $ 30 | $ (142) | $ (29) | $ (239) |
Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | (21) | 58 | 9 | 71 |
Tax benefit of amortization of benefit plan costs | (25) | (157) | (208) | (313) |
Tax (provision) benefit of unrealized gains (losses) | 0 | (60) | 0 | (130) |
Tax provision on reclassification adjustment for gain on investment | $ 0 | $ 6 | $ 0 | $ 14 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital In Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Stockholders' Equity | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2016 | 124,149,609 | |||||||
Beginning balance at Dec. 31, 2016 | $ 150,410 | $ 1,241 | $ 22,018 | $ 885,117 | $ 3,811 | $ (762,169) | $ 150,018 | $ 392 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 117,206 | 116,982 | 116,982 | 224 | ||||
Dividends declared | (20,075) | (20,075) | (20,075) | |||||
Currency translation adjustments | 2,835 | 2,835 | 2,835 | |||||
Derivative financial instruments | 481 | 481 | 481 | |||||
Defined benefit obligations | 579 | 579 | 579 | |||||
Available-for-sale investments | (1,438) | (1,438) | (1,438) | |||||
Exercise of stock options (in shares) | 790,922 | |||||||
Exercise of stock options | 18,645 | $ 8 | 18,637 | 18,645 | ||||
Shares placed in treasury | (11,174) | 39,907 | (51,081) | (11,174) | ||||
Stock-based compensation charges (in shares) | 279,776 | |||||||
Stock-based compensation charges | 7,098 | $ 3 | 7,095 | 7,098 | ||||
Distributions to noncontrolling interests | (266) | (266) | ||||||
Ending balance (in shares) at Jun. 30, 2017 | 125,220,307 | |||||||
Ending balance at Jun. 30, 2017 | $ 264,301 | $ 1,252 | 87,657 | 982,024 | 6,268 | (813,250) | 263,951 | 350 |
Beginning balance (in shares) at Dec. 31, 2017 | 125,381,591 | 125,381,591 | ||||||
Beginning balance at Dec. 31, 2017 | $ 285,757 | $ 1,254 | 98,843 | 990,652 | 9,454 | (814,809) | 285,394 | 363 |
Recently adopted accounting standards at Dec. 31, 2017 | 9,926 | 12,171 | (2,245) | 9,926 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 127,147 | 127,104 | 127,104 | 43 | ||||
Dividends declared | (32,262) | (32,262) | (32,262) | |||||
Currency translation adjustments | (6,733) | (6,733) | (6,733) | |||||
Derivative financial instruments | 31 | 31 | 31 | |||||
Defined benefit obligations | 785 | 785 | 785 | |||||
Available-for-sale investments | (44) | (44) | (44) | |||||
Exercise of stock options (in shares) | 182,520 | |||||||
Exercise of stock options | 4,324 | $ 1 | 4,323 | 4,324 | ||||
Shares placed in treasury | (6,017) | (6,017) | (6,017) | |||||
Stock-based compensation charges (in shares) | 183,960 | |||||||
Stock-based compensation charges | 5,755 | $ 2 | 5,753 | 5,755 | ||||
Distributions to noncontrolling interests | $ (352) | (352) | ||||||
Ending balance (in shares) at Jun. 30, 2018 | 125,748,071 | 125,748,071 | ||||||
Ending balance at Jun. 30, 2018 | $ 388,317 | $ 1,257 | $ 108,919 | $ 1,097,665 | $ 1,248 | $ (820,826) | $ 388,263 | $ 54 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in usd per share) | $ 0.32 | $ 0.2 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 127,147 | $ 117,206 |
Non-cash items included in net income from continuing operations: | ||
Depreciation and amortization | 28,420 | 28,199 |
Income of investees, net of dividends | (3,384) | 987 |
Gains on asset disposals and impairments, net | (245) | (31) |
Gain on forward contracts | (5,997) | 0 |
Recognition of debt issuance costs from Former Credit Facility | 2,441 | 0 |
Recognition of losses for pension and postretirement plans | 993 | 892 |
Stock-based compensation expense | 5,755 | 7,098 |
Changes in assets and liabilities: | ||
Accounts receivable | (10,858) | (154) |
Accounts payable | (3,835) | (26,905) |
Contracts in progress and advance billings on contracts | (53,902) | (3,869) |
Income taxes | (12,302) | 18,477 |
Accrued and other current liabilities | 973 | (39,325) |
Pension liability, accrued postretirement benefit obligation and employee benefits | (57,439) | (43,790) |
Other, net | (457) | 5,320 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 17,310 | 64,105 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (33,960) | (28,747) |
Purchases of securities | (1,822) | (12,049) |
Sales and maturities of securities | 2,955 | 19,986 |
Investments, net of return of capital, in equity method investees - payments | (9,800) | |
Investments, net of return of capital, in equity method investees - proceeds | 211 | |
Proceeds from asset disposals | 249 | 140 |
Other, net | 997 | (24) |
NET CASH USED IN INVESTING ACTIVITIES | (41,381) | (20,483) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings of long-term debt | 700,000 | 73,600 |
Repayments of long-term debt | (509,968) | (87,344) |
Payment of debt issuance costs | (8,197) | 0 |
Dividends paid to common shareholders | (32,063) | (20,139) |
Exercise of stock options | 3,018 | 14,608 |
Cash paid for shares withheld to satisfy employee taxes | (4,710) | (7,045) |
Other | (352) | (266) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 147,728 | (26,586) |
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | (10,660) | 6,294 |
TOTAL INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | 112,997 | 23,330 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 213,144 | 134,600 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD | 326,141 | 157,930 |
Cash paid during the period for: | ||
Interest | 7,625 | 7,049 |
Income taxes (net of refunds) | 49,848 | 33,997 |
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||
Accrued capital expenditures included in accounts payable | $ 8,775 | $ 3,886 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES We have presented the condensed consolidated financial statements of BWX Technologies, Inc. ("BWXT" or the "Company") in U.S. dollars in accordance with the interim reporting requirements of Form 10-Q, Rule 10-01 of Regulation S-X and accounting principles generally accepted in the United States ("GAAP"). Certain financial information and disclosures normally included in our financial statements prepared annually in accordance with GAAP have been condensed or omitted. Readers of these financial statements should, therefore, refer to the consolidated financial statements and notes in our annual report on Form 10-K for the year ended December 31, 2017 (our " 2017 10-K"). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation. We use the equity method to account for investments in entities that we do not control, but over which we have the ability to exercise significant influence. We generally refer to these entities as "joint ventures." We have eliminated all intercompany transactions and accounts. We have reclassified certain amounts previously reported to conform to the presentation at June 30, 2018 and for the three and six months ended June 30, 2018 related to recently adopted accounting standards. We present the notes to our condensed consolidated financial statements on the basis of continuing operations, unless otherwise stated. Unless the context otherwise indicates, "we," "us" and "our" mean BWXT and its consolidated subsidiaries. Reportable Segments We operate in three reportable segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. Our reportable segments are further described as follows: • Our Nuclear Operations Group segment manufactures naval nuclear reactors for the Naval Nuclear Propulsion Program for use in U.S. Navy submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Barberton, Ohio; Mount Vernon, Indiana; Euclid, Ohio; and Erwin, Tennessee. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components inclusive of development and fabrication activities for submarine missile launch tubes. The Euclid facility fabricates electro-mechanical equipment and performs design, manufacturing, inspection, assembly and testing activities. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. ("NFS"), one of our wholly owned subsidiaries. Located in Erwin, NFS also downblends Cold War-era government stockpiles of high-enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. • Our Nuclear Services Group segment provides various services to the U.S. Government and the commercial nuclear industry. Services provided to the U.S. Government include nuclear materials management and operation, environmental management and administrative and operating services for various U.S. Government-owned facilities. These services are provided to the U.S. Department of Energy ("DOE"), including the National Nuclear Security Administration ("NNSA"), the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management, and NASA. Through this segment we deliver services and management solutions to nuclear and high-consequence operations. A significant portion of this segment's operations are conducted through joint ventures. Our Nuclear Services Group segment also provides inspection and maintenance services primarily for the U.S. commercial nuclear industry including steam generator and heat exchanger inspection services, high pressure water lancing, non-destructive examination and customized tooling solutions. This segment also offers complete advanced fuel and reactor engineering, licensing and manufacturing services for new advanced nuclear reactors. • Our Nuclear Power Group segment fabricates steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level waste, for nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide and is the only heavy nuclear component, N-Stamp certified manufacturer in North America. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering. In addition, this segment offers in-plant inspection, maintenance and modification services for nuclear steam generators, heat exchangers, reactors, fuel handling systems and balance of plant equipment, as well as specialized non-destructive examination and tooling/repair solutions. See Note 9 for financial information about our segments. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the consolidated financial statements and the related footnotes included in our 2017 10-K. Acquisition of Sotera Health LLC's Nordion Medical Isotope Business On April 17, 2018, we signed a definitive agreement to acquire Sotera Health LLC's Nordion medical isotope business. Nordion's medical radioisotopes business is a leading global manufacturer and supplier of critical medical isotopes and radiopharmaceuticals for research, diagnostic and therapeutic uses. Its customers include radiopharmaceutical companies, hospitals and radiopharmacies. Its primary operations are located in Kanata, Ontario and Vancouver, British Columbia. This acquisition was completed on July 30, 2018 and will allow us to accelerate our entry into the medical radioisotope market by adding licensed infrastructure, approximately 150 highly trained and experienced personnel and two production centers. Beginning in the third quarter of 2018, this business will be reported as part of our Nuclear Power Group segment. Deconsolidation of Generation mPower LLC On March 2, 2016, we entered into a framework agreement with Bechtel Power Corporation ("Bechtel"), BWXT Modular Reactors, LLC and BDC NexGen Power, LLC for the potential restructuring and restart of our mPower small modular reactor program (the "Framework Agreement"). As a result of entering into the Framework Agreement, we deconsolidated Generation mPower LLC ("GmP") from our financial statements as of the date of the Framework Agreement and recognized a $30.0 million loss contingency, which was ultimately paid to Bechtel in the first quarter of 2017 following the receipt of Bechtel's notice that the mPower program would not be restarted. Contracts and Revenue Recognition We generally recognize contract revenues and related costs over time for individual performance obligations based on a cost-to-cost method in accordance with Financial Accounting Standards Board ("FASB") Topic Revenue from Contracts with Customers . We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress toward completion as a percentage of the total project (percentage-of-completion basis). Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for uninstalled materials, if such costs do not depict our performance in transferring control of goods or services to the customer. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. Certain of our contracts recognize revenue at a point in time, and revenue on these contracts is recognized when control transfers to the customer. The majority of our revenue that is recognized at a point in time is related to parts in our Nuclear Power Group segment. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. Accumulated Other Comprehensive Income The components of Accumulated other comprehensive income included in Stockholders' Equity are as follows: June 30, December 31, (In thousands) Currency translation adjustments $ 6,415 $ 13,148 Net unrealized gain on derivative financial instruments 384 353 Unrecognized prior service cost on benefit obligations (5,452 ) (6,237 ) Net unrealized gain (loss) on available-for-sale investments (99 ) 2,190 Accumulated other comprehensive income $ 1,248 $ 9,454 Upon adopting the FASB update to the Topic Financial Instruments , we reclassified $2.2 million of net unrealized gains on available-for-sale investments from Accumulated other comprehensive income to Retained earnings on January 1, 2018. The amounts reclassified out of Accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Accumulated Other Comprehensive Income (Loss) Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ 7 $ (9 ) $ (4 ) $ (13 ) Revenues (92 ) 237 28 291 Cost of operations (85 ) 228 24 278 Total before tax 21 (58 ) (9 ) (71 ) Provision for Income Taxes $ (64 ) $ 170 $ 15 $ 207 Net Income Amortization of prior service cost on benefit obligations $ (488 ) $ (446 ) $ (993 ) $ (892 ) Other – net 25 157 208 313 Provision for Income Taxes $ (463 ) $ (289 ) $ (785 ) $ (579 ) Net Income Realized gain on investments $ — $ 126 $ — $ 148 Other – net — (6 ) — (14 ) Provision for Income Taxes $ — $ 120 $ — $ 134 Net Income Total reclassification for the period $ (527 ) $ 1 $ (770 ) $ (238 ) Inventories At June 30, 2018 and December 31, 2017 , included in Other current assets, we had inventories totaling $11.7 million and $8.6 million , respectively, consisting entirely of raw materials and supplies. Deferred Debt Issuance Costs We have included deferred debt issuance costs in the condensed consolidated balance sheets as a direct deduction from the carrying amount of our Long-Term Debt. We amortize deferred debt issuance costs as interest expense over the life of the related debt. The following summarizes the changes in the carrying amount of our deferred debt issuance costs. Six Months Ended 2018 2017 (In thousands) Balance at beginning of period $ 4,202 $ 5,892 Additions 9,443 — Interest expense (1) (3,273 ) (850 ) Balance at end of period $ 10,372 $ 5,042 (1) Includes the recognition of prior deferred debt issuance costs associated with the Former Credit Facility of $2.4 million for the six months ended June 30, 2018 . Restricted Cash and Cash Equivalents At June 30, 2018 , we had restricted cash and cash equivalents totaling $8.5 million , $2.6 million of which was held for future decommissioning of facilities (which is included in Other Assets on our condensed consolidated balance sheets) and $5.9 million of which was held to meet reinsurance reserve requirements of our captive insurer. The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents within our condensed consolidated balance sheets to the totals presented in our condensed consolidated statement of cash flows: June 30, December 31, (In thousands) Cash and cash equivalents $ 317,624 $ 203,404 Restricted cash and cash equivalents 5,870 7,105 Restricted cash and cash equivalents included in Other Assets 2,647 2,635 Total cash and cash equivalents and restricted cash and cash equivalents as presented in our condensed consolidated statement of cash flows $ 326,141 $ 213,144 Warranty Expense We accrue estimated expense, included in Cost of operations on our condensed consolidated statements of income, to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. The following summarizes the changes in the carrying amount of our Accrued warranty expense: Six Months Ended 2018 2017 (In thousands) Balance at beginning of period $ 13,428 $ 11,477 Additions 810 667 Expirations and other changes (709 ) (84 ) Payments (347 ) (16 ) Translation (360 ) 173 Balance at end of period $ 12,822 $ 12,217 Provision for Income Taxes We are subject to federal income tax in the U.S. and Canada as well as income tax within multiple U.S. state jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period. On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was enacted, making significant changes to existing U.S. tax laws that impact BWXT, including, but not limited to, a reduction to the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, the taxation of global intangible low-taxed income ("GILTI") and additional deduction limitations related to executive compensation. We recognized the income tax effects of the Act within our condensed consolidated financial statements in accordance with FASB Topic Income Taxes . Our Canadian operations continue to be subject to tax at a local statutory rate of approximately 25% . Our effective tax rate for the three months ended June 30, 2018 was 23.3% as compared to 30.6% for the three months ended June 30, 2017 . Our effective tax rate for the six months ended June 30, 2018 was 22.6% as compared to 30.6% for the six months ended June 30, 2017 . The effective tax rates for the three and six months ended June 30, 2018 were slightly higher than the U.S. corporate income tax rate of 21% primarily due to state income taxes within the U.S. and the unfavorable rate differential associated with our Canadian earnings. Our effective tax rate for the three months ended June 30, 2018 and 2017 was favorably impacted by benefits recognized for excess tax benefits related to employee share-based payments of $0.2 million and $2.6 million , respectively. Our effective tax rate for the six months ended June 30, 2018 and 2017 was favorably impacted by benefits recognized for excess tax benefits related to employee share-based payments of $2.4 million and $4.9 million , respectively. As of June 30, 2018 , we had gross unrecognized tax benefits of $0.8 million (exclusive of interest and federal and state benefits), all of which would reduce our effective tax rate if recognized. New Accounting Standards In February 2016, the FASB issued an update to the Topic Leases , which supersedes the lease reporting requirements in Topic Leases (previously "FAS 13"). This update requires that a lessee recognize on its balance sheet the assets and liabilities for all leases with lease terms of more than 12 months, along with additional qualitative and quantitative disclosures. The effect of leases in a consolidated statement of income and a consolidated statement of cash flows is expected to be largely unchanged. Accounting by lessors was not significantly impacted by this update. This update will be effective for us in 2019, with early adoption permitted. We expect to adopt the provisions in this update effective January 1, 2019 using the modified retrospective approach. We do not anticipate a material impact on our financial statements upon adoption. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The initial impact of the adoption of the FASB Topic Revenue from Contracts with Customers , which was recognized in a cumulative catch-up adjustment on January 1, 2018, is illustrated below: January 1, December 31, 2018 2017 (In thousands) Assets: Contracts in progress $ 260,932 $ 420,628 Deferred Income Taxes $ 85,193 $ 86,740 Liabilities: Accrued liabilities – other $ 66,371 $ 64,738 Advance billings on contracts $ 73,390 $ 246,192 Stockholders' Equity: Retained earnings $ 1,000,578 $ 990,652 Within our Nuclear Operations Group segment, we continue to recognize revenue over time and now measure progress on performance obligations using a cost-to-cost method. Historically, we utilized man-hours or a cost-to-cost method to measure progress on certain performance obligations within this segment. The performance obligations identified for recognizing revenue are similar to our historical units of account. As a result of the change to a cost-to-cost method, the timing of revenue recognition on affected contracts, in the aggregate, results in the recognition of revenue and cost of operations earlier in the process of satisfying performance obligations. This change impacted the life-to-date revenue and cost of operations recognized on performance obligations, and the adjustment to capture the impact of the new revenue recognition standard was recorded as a cumulative catch-up adjustment in Retained earnings. The new standard also resulted in a reduction in both our Contracts in progress and Advance billings on contracts account balances as a result of measuring the asset and liability at the contract level. Historically, contract assets and liabilities were measured at the unit of account, which we concluded was at a lower level than that of the contract. The impact of the adoption of the new revenue standard on our Nuclear Power Group and Nuclear Services Group segments was not material. Contracts and Revenue Recognition Nuclear Operations Group Our Nuclear Operations Group segment recognizes revenue over time for the manufacturing of naval nuclear reactor components and fuel, submarine missile launch tubes and the downblending of high-enriched uranium. Certain of our contracts contain two or more different types of components, each of which we identify as a separate performance obligation. We recognize revenue using a cost-to-cost method to measure progress as control is continually transferred to the customer as we incur costs on the performance obligations. We allocate revenue to the individual performance obligations within contracts with multiple performance obligations based on the stand-alone selling price of the individual performance obligations. Our fixed-price incentive fee contracts include incentives that we concluded to be variable consideration. The amount of the variable consideration to which we are entitled is dependent on our actual costs incurred on the performance obligation compared to the target costs for that performance obligation and subject to incentive price revisions included within the contracts. We include these incentive fees in revenue when there is sufficient evidence to determine that the variable consideration is not constrained. The remaining contracts typically have immaterial amounts of variable consideration and have a single performance obligation. Our estimates of variable consideration and total estimated costs at completion are determined through a detailed process based on historical performance and our expertise using the most likely method. Variations from estimated contract performance could result in a material effect on our financial condition and results of operations in future periods. Our Nuclear Operations Group segment's contracts allow for billings as costs are incurred, subject to certain retainages on our fixed-price incentive fee contracts, that require milestones to be reached for the remaining consideration to be paid. Nuclear Services Group Our contracts within our Nuclear Services Group segment are primarily cost-plus service contracts on which we recognize revenue over time based on a cost-to-cost method, which is consistent with the structure of the billings associated with these contracts. Ownership continuously transfers to the customer as we perform the services. The contracts within this segment do not contain significant variable consideration and contain a single performance obligation. Certain of these contracts contain assurance warranties and/or provisions for liquidated damages, which are expected to have an immaterial impact on the contracts based on our historical experience. Nuclear Power Group Our Nuclear Power Group segment recognizes revenue over time using a cost-to-cost method for the manufacturing of large components, non-standard parts, fuel bundles and service contracts as control continually transfers to the customers. For standard parts, revenue is recognized at the point in time control transfers to the customer, which is consistent with the transfer of ownership. This segment generates revenue primarily from firm-fixed-price contracts that do not contain variable consideration as well as time-and-materials based contracts. Certain of these contracts contain assurance warranties and/or provisions for liquidated damages, which are expected to have an immaterial impact to the contracts based on our historical experience. We are entitled to payment on the majority of our Nuclear Power Group segment contracts when we achieve certain milestones related to our progress. Disaggregated Revenues Revenues by geographical area and customer type are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) United States: Government $ 327,896 $ 28,174 $ — $ 356,070 $ 644,527 $ 54,055 $ — $ 698,582 Non-Government 3,849 3,910 327 8,086 3,849 7,087 587 11,523 $ 331,745 $ 32,084 $ 327 $ 364,156 $ 648,376 $ 61,142 $ 587 $ 710,105 Canada: Government $ — $ — $ — $ — $ — $ — $ — $ — Non-Government — 510 64,743 65,253 — 1,485 147,068 148,553 $ — $ 510 $ 64,743 $ 65,253 $ — $ 1,485 $ 147,068 $ 148,553 Other: Government $ — $ — $ — $ — $ — $ — $ — $ — Non-Government 395 2 10,627 11,024 395 2 40,858 41,255 $ 395 $ 2 $ 10,627 $ 11,024 $ 395 $ 2 $ 40,858 $ 41,255 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 Revenues by timing of transfer of goods or services are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) Over-time $ 332,140 $ 32,596 $ 69,324 $ 434,060 $ 648,771 $ 62,629 $ 174,433 $ 885,833 Point-in-time — — 6,373 6,373 — — 14,080 14,080 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 Revenues by contract type are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) Fixed-Price Incentive Fee $ 258,150 $ — $ 5,589 $ 263,739 $ 507,390 $ — $ 9,617 $ 517,007 Firm-Fixed-Price 52,472 5,632 44,302 102,406 99,530 11,042 118,584 229,156 Cost-Plus Fee 21,450 26,086 — 47,536 41,683 50,039 45 91,767 Time-and-Materials 68 878 25,806 26,752 168 1,548 60,267 61,983 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 Performance Obligations As we progress on our contracts and the underlying performance obligations for which we recognize revenue over time, we refine our estimates of variable consideration and total estimated costs at completion, which impact the overall profitability on our contracts and performance obligations. Changes in these estimates result in the recognition of cumulative catch-up adjustments that impact our revenue and/or costs of contracts. During the six months ended June 30, 2018 , we recognized net favorable changes in estimates that resulted in increases in revenue of $14.5 million . During the three months ended June 30, 2018, we identified rework issues related to non-nuclear components being produced within our Nuclear Operations Group segment. As we work to resolve these issues, we do not expect additional costs to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Contract Assets and Liabilities We include revenues and related costs incurred, plus accumulated contract costs that exceed amounts invoiced to customers under the terms of the contracts, in Contracts in progress. We include in Advance billings on contracts billings that exceed accumulated contract costs and revenues and costs recognized over time. Most long-term contracts contain provisions for progress payments. Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues. Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers. During the six months ended June 30, 2018 , our unbilled receivables increased $56.2 million , primarily as a result of revenue in excess of billings on certain firm-fixed-price contracts within our Nuclear Operations Group segment and the timing of milestone billings on large components and contracts started in 2018 within our Nuclear Power Group segment. Our fixed-price incentive fee contracts for our Nuclear Operations Group segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments made during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts. This resulted in an increase in retainages on contracts from January 1 to June 30, 2018 as shown below: June 30, January 1, 2018 2018 (In thousands) Included in Contracts in progress: Unbilled receivables $ 306,535 $ 250,325 Included in Accounts receivable – trade, net: Retainages $ 96,731 $ 82,801 Included in Other Assets: Retainages $ 1,626 $ 1,669 Advance billings on contracts $ 77,775 $ 73,390 During the six months ended June 30, 2018 , we recognized $44.7 million of revenue that was in Advance billings on contracts at January 1, 2018. Remaining Performance Obligations Remaining performance obligations represent the dollar amount of revenue we expect to recognize in the future from performance obligations on contracts previously awarded and in progress. Of the June 30, 2018 remaining performance obligations on our contracts with customers, we expect to recognize revenues as follows: 2018 2019 Thereafter Total (In approximate millions) Nuclear Operations Group $ 630 $ 798 $ 1,258 $ 2,686 Nuclear Services Group 35 3 6 44 Nuclear Power Group 141 143 599 883 Total Remaining Performance Obligations $ 806 $ 944 $ 1,863 $ 3,613 Historical Method Prior to the adoption of FASB Topic Revenue from Contracts with Customers , we accounted for revenue under previous GAAP. In accordance with our adoption of the new revenue recognition standard utilizing the modified retrospective approach, we are required to disclose the impact on our financial statements on a line item basis. A comparison of certain line items in our condensed consolidated balance sheet is shown below: June 30, 2018 Current Method Historical Method (In thousands) Assets: Contracts in progress $ 317,405 $ 348,762 Deferred Income Taxes $ 84,868 $ 85,295 Liabilities: Accrued liabilities – other $ 48,377 $ 45,572 Advance billings on contracts $ 77,775 $ 121,902 Stockholders' Equity: Retained earnings $ 1,097,665 $ 1,088,127 Differences in the amounts above are primarily the result of the initial adoption of the new revenue recognition standard. Additional differences were caused by revenue under the current method being $9.2 million lower than the historical method as discussed below. A comparison of certain line items in our condensed consolidated statements of income is shown below: Three Months Ended Six Months Ended Current Method Historical Method Current Method Historical Method (In thousands) Revenues $ 438,921 $ 440,103 $ 896,384 $ 905,633 Cost of operations $ 318,209 $ 319,945 $ 645,573 $ 654,487 Operating Income $ 71,549 $ 70,995 $ 151,437 $ 151,772 Provision for Income Taxes $ 18,493 $ 18,311 $ 37,096 $ 37,043 Net Income $ 60,734 $ 60,362 $ 127,147 $ 127,535 We recognized $1.2 million and $9.2 million less revenue under the current method compared to the historical method for the three and six months ended June 30, 2018 , respectively. This was primarily driven by less progress being achieved on contracts as a result of using a cost-to-cost method for measuring progress under the current method as compared to man-hours or units of output under our historical method. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT Our Long-Term Debt consists of the following: June 30, December 31, (In thousands) Long-Term Debt: Senior Notes $ 400,000 $ — New Credit Facility 291,128 — Former Credit Facility — 513,131 Less: Amounts due within one year 14,556 27,870 Long-term debt, gross 676,572 485,261 Less: Deferred debt issuance costs 10,372 4,202 Long-term debt $ 666,200 $ 481,059 Maturities of long-term debt subsequent to June 30, 2018 are as follows: 2018 – $7.3 million ; 2019 – $14.6 million ; 2020 – $14.6 million ; 2021 – $14.6 million ; 2022 – $14.6 million ; 2023 – $225.6 million ; and thereafter – $400.0 million . On May 24, 2018, we and certain of our subsidiaries entered into a credit agreement (the "New Credit Facility") with Wells Fargo Bank, N.A., as administrative agent, and the other lenders party thereto. We also issued notes pursuant to an indenture among the Company, certain of our subsidiaries, as guarantors, and U.S. Bank National Association, as trustee. In connection with the closing of the New Credit Facility and the issuance of the notes, we concurrently repaid all outstanding debt obligations and terminated our credit agreement dated as of May 11, 2015, as amended, among the Company, certain of our subsidiaries, Bank of America, N.A., as administrative agent, and the other lenders party thereto (the "Former Credit Facility"). The Former Credit Facility consisted of (1) a $400.0 million revolving credit facility, (2) a $300.0 million term loan facility, (3) a $137.5 million (U.S. dollar equivalent) Canadian dollar term loan facility, and (4) a $112.5 million term loan facility. Credit Facility The New Credit Facility includes a $500.0 million senior secured revolving credit facility (the "New Revolving Credit Facility"), a $50.0 million U.S. dollar senior secured term loan A made available to the Company (the "New USD Term Loan") and a $250.0 million (U.S. dollar equivalent) Canadian dollar senior secured term loan A made available to BWXT Canada Ltd. (the "New CAD Term Loan"). All obligations under the New Credit Facility are scheduled to mature on May 24, 2023. The proceeds of loans under the New Credit Facility are available for working capital needs and other general corporate purposes. The New Credit Facility allows for additional parties to become lenders and, subject to certain conditions, for the increase of the commitments under the New Revolving Credit Facility, the New USD Term Loan or the New CAD Term Loan, subject to an aggregate maximum for all additional commitments of (1) the greater of (a) $250 million and (b) 65% of EBITDA, as defined in the New Credit Facility, for the last four full fiscal quarters, plus (2) all voluntary prepayments of term loans, plus (3) additional amounts provided the Company is in compliance with a pro forma first lien leverage ratio test of less than or equal to 2.50 to 1.00 . The Company's obligations under the New Credit Facility are guaranteed, subject to certain exceptions, by substantially all of the Company's present and future wholly owned domestic restricted subsidiaries (other than its captive insurance subsidiary and the domestic holding company of its Canadian subsidiaries). The obligations of BWXT Canada Ltd. under the New Credit Facility are guaranteed, subject to certain exceptions, by (1) substantially all of the present and future wholly owned Canadian restricted subsidiaries of BWXT Canada Ltd., (2) substantially all of the Company's present and future wholly owned domestic restricted subsidiaries (other than its captive insurance subsidiary and the domestic holding company of its Canadian subsidiaries), (3) BWXT Canada Holdings Corp. and (4) BWXT ITG Canada Inc. The New Credit Facility is secured by first-priority liens on certain assets owned by the Company (other than its subsidiaries comprising its Nuclear Operations Group segment and a portion of its Nuclear Services Group segment); provided that (1) the Company's domestic obligations are only secured by assets and property of the domestic loan parties and (2) the obligations of BWXT Canada Ltd. and the Canadian guarantors are secured by assets and property of the Canadian guarantors and the domestic loan parties. The New Credit Facility requires interest payments on revolving loans on a periodic basis until maturity. We will be required to make quarterly amortization payments on the New USD Term Loan and the New CAD Term Loan in an amount equal to 1.25% of the initial aggregate principal amount of each term loan beginning in the third quarter of 2018. We may prepay all loans under the New Credit Facility at any time without premium or penalty (other than customary Eurocurrency breakage costs), subject to notice requirements. The New Credit Facility includes financial covenants that are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter. The maximum permitted leverage ratio is 4.00 to 1.00 , which may be increased to 4.50 to 1.00 for up to four consecutive fiscal quarters after a material acquisition. The minimum consolidated interest coverage ratio is 3.00 to 1.00 . In addition, the New Credit Facility contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. As of June 30, 2018 , we were in compliance with all covenants set forth in the New Credit Facility. Outstanding loans under the New Credit Facility bear interest at our option at either (1) the Eurocurrency rate plus a margin ranging from 1.25% to 2.00% per year or (2) the base rate or Canadian index rate, as applicable (described in the New Credit Facility as the highest of (a) with respect to the base rate only, the federal funds rate plus 0.50% , (b) the one-month Eurocurrency rate plus 1.0% and (c) the administrative agent's prime rate or the Canadian prime rate, as applicable), plus, in each case, a margin ranging from 0.25% to 1.00% per year. We are charged a commitment fee on the unused portion of the New Revolving Credit Facility, and that fee ranges from 0.150% to 0.275% per year. Additionally, we are charged a letter of credit fee of between 1.25% and 2.00% per year with respect to the amount of each financial letter of credit issued under the New Credit Facility, and a letter of credit fee of between 0.75% and 1.20% per year is charged with respect to the amount of each performance letter of credit issued under the New Credit Facility. The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on our leverage ratio. Based on the leverage ratio applicable at June 30, 2018 , the margin for Eurocurrency rate and base rate or Canadian index rate loans was 1.375% and 0.375% , respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.375% and 0.825% , respectively, and the commitment fee for the unused portion of the New Revolving Credit Facility was 0.175% . As of June 30, 2018 , borrowings outstanding totaled $291.1 million and $0.0 million under our term loans and revolving line of credit, respectively, and letters of credit issued under the New Credit Facility totaled $71.5 million . As a result, we had $428.5 million available for borrowings or to meet letter of credit requirements as of June 30, 2018 . As of June 30, 2018 , the weighted-average interest rate on outstanding borrowings under our New Credit Facility was 3.09% . The New Credit Facility generally includes customary events of default for a secured credit facility, some of which allow for an opportunity to cure. Under the New Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occurs, all related obligations will immediately become due and payable, (2) if any other event of default exists, the lenders will be permitted to accelerate the maturity of the related obligations outstanding and (3) if any event of default exists, the lenders will be permitted to terminate their commitments thereunder and exercise other rights and remedies, including the commencement of foreclosure or other actions against the collateral. If any default occurs under the New Credit Facility, or if we are unable to make any of the representations and warranties in the New Credit Facility, we will be unable to borrow funds or have letters of credit issued under the New Credit Facility. Senior Notes The Company issued $400.0 million aggregate principal amount of its 5.375% senior notes due 2026 (the "Senior Notes") pursuant to an indenture dated May 24, 2018 (the "Indenture"), among the Company, the guarantors and U.S. Bank National Association, as trustee. The Senior Notes are guaranteed by each of the Company's present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the New Credit Facility. Interest on the Senior Notes is payable semi-annually in cash in arrears on January 15 and July 15 of each year, commencing on July 15, 2018, at a rate of 5.375% per annum. The Senior Notes will mature on July 15, 2026. The Company may redeem the Senior Notes, in whole or in part, at any time on or after July 15, 2021 at established redemption prices. At any time prior to July 15, 2021, the Company may also redeem up to 40% of the Senior Notes with net cash proceeds of certain equity offerings at a redemption price equal to 105.375% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, at any time prior to July 15, 2021, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable "make-whole" premium. The Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the Indenture or the Senior Notes and certain provisions related to bankruptcy events. The Indenture also contains customary negative covenants. As of June 30, 2018 , we were in compliance with all covenants and agreements set forth in the Indenture and the Senior Notes. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension Plans and Postretirement Benefits | PENSION PLANS AND POSTRETIREMENT BENEFITS We record the service cost component of net periodic benefit cost within Operating income on our condensed consolidated statements of income. For the three months ended June 30, 2018 and 2017 , these amounts were $2.6 million and $2.3 million , respectively. For the six months ended June 30, 2018 and 2017 , these amounts were $5.1 million and $4.6 million , respectively. All other components of net periodic benefit cost are included in Other – net within the condensed consolidated statements of income. For the three months ended June 30, 2018 and 2017 , these amounts were $(8.8) million and $(6.9) million respectively. For the six months ended June 30, 2018 and 2017 , these amounts were $(17.7) million and $(13.9) million , respectively. Components of net periodic benefit cost included in net income are as follows: Pension Benefits Other Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Service cost $ 2,405 $ 2,145 $ 4,818 $ 4,296 $ 162 $ 153 $ 327 $ 307 Interest cost 12,307 13,495 24,650 27,008 351 538 900 1,078 Expected return on plan assets (21,553 ) (20,803 ) (43,178 ) (41,640 ) (399 ) (596 ) (1,033 ) (1,191 ) Amortization of prior service cost (credit) 550 525 1,100 1,050 (62 ) (78 ) (107 ) (157 ) Net periodic benefit (income) cost $ (6,291 ) $ (4,638 ) $ (12,610 ) $ (9,286 ) $ 52 $ 17 $ 87 $ 37 In July 2018, we completed the purchase of a group annuity contract to transfer certain domestic pension benefit obligations of approximately $240 million to an insurance company for approximately 1,300 retirees. This transaction will result in the recognition of pension settlement-related charges and net actuarial gains and losses related to an interim remeasurement of our domestic pension benefit obligation (Mark to Market Adjustment) during the quarter ending September 30, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES There were no material contingencies during the period covered by this Form 10-Q. For more information regarding commitments and contingencies, refer to Note 10 to the consolidated financial statements in Part II of our 2017 10-K, as updated by our Form 10-Q for the quarter ended March 31, 2018. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Our operations give rise to exposure to market risks from changes in foreign currency exchange ("FX") rates. We use derivative financial instruments, primarily FX forward contracts, to reduce the impact of changes in FX rates on our operating results. We use these instruments primarily to hedge our exposure associated with revenues or costs on our long-term contracts that are denominated in currencies other than our operating entities' functional currencies. In addition, we have entered into FX forward contracts to hedge our exposure on pending acquisitions. We do not hold or issue derivative financial instruments for trading or other speculative purposes. We enter into derivative financial instruments primarily as hedges of certain firm purchase and sale commitments denominated in foreign currencies. We record these contracts at fair value on our condensed consolidated balance sheets. Based on the hedge designation at the inception of the contract, the related gains and losses on these contracts are deferred in stockholders' equity as a component of Accumulated other comprehensive income until the hedged item is recognized in earnings. Any ineffective portion of a derivative's change in fair value and any portion excluded from the assessment of effectiveness are immediately recognized in Other – net in our condensed consolidated statements of income. The gain or loss on a derivative instrument not designated as a hedging instrument is also immediately recognized in earnings. Gains and losses on derivative financial instruments that require immediate recognition are included as a component of Other – net in our condensed consolidated statements of income. We have designated the majority of our FX forward contracts that qualify for hedge accounting as cash flow hedges. The hedged risk is the risk of changes in functional-currency-equivalent cash flows attributable to changes in FX spot rates of forecasted transactions related to long-term contracts. We exclude from our assessment of effectiveness the portion of the fair value of the FX forward contracts attributable to the difference between FX spot rates and FX forward rates. At June 30, 2018 , we had deferred approximately $0.4 million of net gains on these derivative financial instruments in Accumulated other comprehensive income. Assuming market conditions continue, we expect to recognize the majority of this amount in the next 12 months. At June 30, 2018 , our derivative financial instruments consisted of FX forward contracts. The notional value of our FX forward contracts totaled $249.4 million at June 30, 2018 , with maturities extending to December 2021 . These instruments consist primarily of contracts to purchase or sell Canadian dollars. We are exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments. We attempt to mitigate this risk by using major financial institutions with high credit ratings. Our counterparties have the benefit of the same collateral arrangements and covenants as described under our credit facility. The following tables summarize our derivative financial instruments at June 30, 2018 and December 31, 2017 : Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 444 $ 250 Other Assets $ 468 $ 348 Accounts payable $ 219 $ 177 Other Liabilities $ 284 $ 93 Derivatives Not Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 5,000 $ — The effects of derivatives on our financial statements are outlined below: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain recognized in other comprehensive income $ (157 ) $ 551 $ 75 $ 927 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ 7 $ (9 ) $ (4 ) $ (13 ) Cost of operations $ (92 ) $ 237 $ 28 $ 291 Derivatives Not Designated as Hedges: FX Forward Contracts: Gain (loss) recognized in income Location Other – net $ 5,997 $ — $ 5,997 $ — |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Investments The following is a summary of our investments measured at fair value at June 30, 2018 : Total Level 1 Level 2 Level 3 (In thousands) Equity securities Equities $ 2,366 $ — $ 2,366 $ — Mutual funds 4,933 — 4,933 — Available-for-sale securities U.S. Government and agency securities 1,824 1,824 — — Corporate bonds 1,493 1,493 — — Asset-backed securities and collateralized mortgage obligations 140 — 140 — Total $ 10,756 $ 3,317 $ 7,439 $ — The following is a summary of our investments measured at fair value at December 31, 2017 : Total Level 1 Level 2 Level 3 (In thousands) Available-for-sale securities U.S. Government and agency securities $ 1,299 $ 1,299 $ — $ — Corporate bonds 3,169 1,534 1,635 — Equities 2,759 — 2,759 — Mutual funds 4,847 — 4,847 — Asset-backed securities and collateralized mortgage obligations 161 — 161 — Total $ 12,235 $ 2,833 $ 9,402 $ — We estimate the fair value of investments based on quoted market prices. For investments for which there are no quoted market prices, we derive fair values from available yield curves for investments of similar quality and terms. Derivatives Level 2 derivative assets and liabilities currently consist of FX forward contracts. Where applicable, the value of these derivative assets and liabilities is computed by discounting the projected future cash flow amounts to present value using market-based observable inputs, including FX forward and spot rates, interest rates and counterparty performance risk adjustments. At June 30, 2018 and December 31, 2017 , we had forward contracts outstanding to purchase or sell Canadian dollars, with a total fair value of $5.4 million and $0.3 million , respectively. Other Financial Instruments We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments, as follows: Cash and cash equivalents and restricted cash and cash equivalents . The carrying amounts that we have reported in the accompanying condensed consolidated balance sheets for Cash and cash equivalents and Restricted cash and cash equivalents approximate their fair values due to their highly liquid nature. Long-term and short-term debt . We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair values of our debt instruments approximated their carrying values at June 30, 2018 and December 31, 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-based compensation recognized for all of our plans for the three months ended June 30, 2018 and 2017 totaled $1.4 million and $4.0 million , respectively, with associated tax benefit totaling $0.3 million and $1.4 million , respectively. Stock-based compensation recognized for all of our plans for the six months ended June 30, 2018 and 2017 totaled $6.3 million and $8.7 million , respectively, with associated tax benefit totaling $1.2 million and $3.0 million , respectively. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING As described in Note 1 , our operations are assessed based on three reportable segments. An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands) REVENUES: Nuclear Operations Group $ 332,140 $ 312,866 $ 648,771 $ 637,947 Nuclear Services Group 32,596 44,785 62,629 72,639 Nuclear Power Group 75,697 54,569 188,513 132,243 Adjustments and Eliminations (1) (1,512 ) (2,209 ) (3,529 ) (4,589 ) $ 438,921 $ 410,011 $ 896,384 $ 838,240 (1) Segment revenues are net of the following intersegment transfers and other adjustments: Nuclear Operations Group Transfers $ (841 ) $ (205 ) $ (1,980 ) $ (400 ) Nuclear Services Group Transfers (702 ) (1,913 ) (1,540 ) (4,070 ) Nuclear Power Group Transfers 31 (91 ) (9 ) (119 ) $ (1,512 ) $ (2,209 ) $ (3,529 ) $ (4,589 ) OPERATING INCOME: Nuclear Operations Group $ 67,046 $ 69,295 $ 134,703 $ 137,044 Nuclear Services Group 3,511 15,399 4,688 15,801 Nuclear Power Group 7,810 5,712 29,574 18,668 Other (4,357 ) (1,070 ) (8,400 ) (2,682 ) $ 74,010 $ 89,336 $ 160,565 $ 168,831 Unallocated Corporate (2) (2,461 ) (3,908 ) (9,128 ) (7,131 ) Total Operating Income $ 71,549 $ 85,428 $ 151,437 $ 161,700 Other Income (Expense) : Interest income 441 211 1,219 348 Interest expense (7,869 ) (3,906 ) (11,429 ) (7,423 ) Other – net 15,106 6,749 23,016 14,235 Total Other Income (Expense) 7,678 3,054 12,806 7,160 Income before Provision for Income Taxes $ 79,227 $ 88,482 $ 164,243 $ 168,860 (2) Unallocated corporate includes general corporate overhead not allocated to segments. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands, except share and per share amounts) Basic: Net Income Attributable to BWX Technologies, Inc. $ 60,663 $ 61,263 $ 127,104 $ 116,982 Weighted-average common shares 99,681,580 99,166,205 99,603,884 99,305,558 Basic earnings per common share $ 0.61 $ 0.62 $ 1.28 $ 1.18 Diluted: Net Income Attributable to BWX Technologies, Inc. $ 60,663 $ 61,263 $ 127,104 $ 116,982 Weighted-average common shares (basic) 99,681,580 99,166,205 99,603,884 99,305,558 Effect of dilutive securities: Stock options, restricted stock units and performance shares (1) 890,157 984,721 938,130 1,115,390 Adjusted weighted-average common shares 100,571,737 100,150,926 100,542,014 100,420,948 Diluted earnings per common share $ 0.60 $ 0.61 $ 1.26 $ 1.16 (1) At June 30, 2018 and 2017 , none of our shares were antidilutive. |
Basis of Presentation and Sig20
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We have presented the condensed consolidated financial statements of BWX Technologies, Inc. ("BWXT" or the "Company") in U.S. dollars in accordance with the interim reporting requirements of Form 10-Q, Rule 10-01 of Regulation S-X and accounting principles generally accepted in the United States ("GAAP"). Certain financial information and disclosures normally included in our financial statements prepared annually in accordance with GAAP have been condensed or omitted. Readers of these financial statements should, therefore, refer to the consolidated financial statements and notes in our annual report on Form 10-K for the year ended December 31, 2017 (our " 2017 10-K"). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation. |
Consolidation | We use the equity method to account for investments in entities that we do not control, but over which we have the ability to exercise significant influence. We generally refer to these entities as "joint ventures." We have eliminated all intercompany transactions and accounts. We have reclassified certain amounts previously reported to conform to the presentation at June 30, 2018 and for the three and six months ended June 30, 2018 related to recently adopted accounting standards. We present the notes to our condensed consolidated financial statements on the basis of continuing operations, unless otherwise stated. Unless the context otherwise indicates, "we," "us" and "our" mean BWXT and its consolidated subsidiaries. |
Reportable Segments | Reportable Segments We operate in three reportable segments: Nuclear Operations Group, Nuclear Services Group and Nuclear Power Group. Our reportable segments are further described as follows: • Our Nuclear Operations Group segment manufactures naval nuclear reactors for the Naval Nuclear Propulsion Program for use in U.S. Navy submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Barberton, Ohio; Mount Vernon, Indiana; Euclid, Ohio; and Erwin, Tennessee. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components inclusive of development and fabrication activities for submarine missile launch tubes. The Euclid facility fabricates electro-mechanical equipment and performs design, manufacturing, inspection, assembly and testing activities. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. ("NFS"), one of our wholly owned subsidiaries. Located in Erwin, NFS also downblends Cold War-era government stockpiles of high-enriched uranium into material suitable for further processing into commercial nuclear reactor fuel. • Our Nuclear Services Group segment provides various services to the U.S. Government and the commercial nuclear industry. Services provided to the U.S. Government include nuclear materials management and operation, environmental management and administrative and operating services for various U.S. Government-owned facilities. These services are provided to the U.S. Department of Energy ("DOE"), including the National Nuclear Security Administration ("NNSA"), the Office of Nuclear Energy, the Office of Science and the Office of Environmental Management, and NASA. Through this segment we deliver services and management solutions to nuclear and high-consequence operations. A significant portion of this segment's operations are conducted through joint ventures. Our Nuclear Services Group segment also provides inspection and maintenance services primarily for the U.S. commercial nuclear industry including steam generator and heat exchanger inspection services, high pressure water lancing, non-destructive examination and customized tooling solutions. This segment also offers complete advanced fuel and reactor engineering, licensing and manufacturing services for new advanced nuclear reactors. • Our Nuclear Power Group segment fabricates steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level waste, for nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide and is the only heavy nuclear component, N-Stamp certified manufacturer in North America. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering. In addition, this segment offers in-plant inspection, maintenance and modification services for nuclear steam generators, heat exchangers, reactors, fuel handling systems and balance of plant equipment, as well as specialized non-destructive examination and tooling/repair solutions. See Note 9 for financial information about our segments. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the consolidated financial statements and the related footnotes included in our 2017 10-K. |
Contracts and Revenue Recognition | Contracts and Revenue Recognition We generally recognize contract revenues and related costs over time for individual performance obligations based on a cost-to-cost method in accordance with Financial Accounting Standards Board ("FASB") Topic Revenue from Contracts with Customers . We recognize estimated contract revenue and resulting income based on the measurement of the extent of progress toward completion as a percentage of the total project (percentage-of-completion basis). Certain costs may be excluded from the cost-to-cost method of measuring progress, such as significant costs for uninstalled materials, if such costs do not depict our performance in transferring control of goods or services to the customer. We review contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised. Certain of our contracts recognize revenue at a point in time, and revenue on these contracts is recognized when control transfers to the customer. The majority of our revenue that is recognized at a point in time is related to parts in our Nuclear Power Group segment. For all contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full when determined. |
Inventories | Inventories At June 30, 2018 and December 31, 2017 , included in Other current assets, we had inventories totaling $11.7 million and $8.6 million , respectively, consisting entirely of raw materials and supplies. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents At June 30, 2018 , we had restricted cash and cash equivalents totaling $8.5 million , $2.6 million of which was held for future decommissioning of facilities (which is included in Other Assets on our condensed consolidated balance sheets) and $5.9 million of which was held to meet reinsurance reserve requirements of our captive insurer. |
Warranty Expense | Warranty Expense We accrue estimated expense, included in Cost of operations on our condensed consolidated statements of income, to satisfy contractual warranty requirements when we recognize the associated revenue on the related contracts. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows. |
Provision for Income Taxes | Provision for Income Taxes We are subject to federal income tax in the U.S. and Canada as well as income tax within multiple U.S. state jurisdictions. We provide for income taxes based on the enacted tax laws and rates in the jurisdictions in which we conduct our operations. These jurisdictions may have regimes of taxation that vary with respect to nominal rates and with respect to the basis on which these rates are applied. This variation, along with changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period. |
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued an update to the Topic Leases , which supersedes the lease reporting requirements in Topic Leases (previously "FAS 13"). This update requires that a lessee recognize on its balance sheet the assets and liabilities for all leases with lease terms of more than 12 months, along with additional qualitative and quantitative disclosures. The effect of leases in a consolidated statement of income and a consolidated statement of cash flows is expected to be largely unchanged. Accounting by lessors was not significantly impacted by this update. This update will be effective for us in 2019, with early adoption permitted. We expect to adopt the provisions in this update effective January 1, 2019 using the modified retrospective approach. We do not anticipate a material impact on our financial statements upon adoption. |
Basis of Presentation and Sig21
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Components of Accumulated Other Comprehensive Income | The components of Accumulated other comprehensive income included in Stockholders' Equity are as follows: June 30, December 31, (In thousands) Currency translation adjustments $ 6,415 $ 13,148 Net unrealized gain on derivative financial instruments 384 353 Unrecognized prior service cost on benefit obligations (5,452 ) (6,237 ) Net unrealized gain (loss) on available-for-sale investments (99 ) 2,190 Accumulated other comprehensive income $ 1,248 $ 9,454 |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated other comprehensive income by component and the affected condensed consolidated statements of income line items are as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 Accumulated Other Comprehensive Income (Loss) Component Recognized (In thousands) Line Item Presented Realized gain (loss) on derivative financial instruments $ 7 $ (9 ) $ (4 ) $ (13 ) Revenues (92 ) 237 28 291 Cost of operations (85 ) 228 24 278 Total before tax 21 (58 ) (9 ) (71 ) Provision for Income Taxes $ (64 ) $ 170 $ 15 $ 207 Net Income Amortization of prior service cost on benefit obligations $ (488 ) $ (446 ) $ (993 ) $ (892 ) Other – net 25 157 208 313 Provision for Income Taxes $ (463 ) $ (289 ) $ (785 ) $ (579 ) Net Income Realized gain on investments $ — $ 126 $ — $ 148 Other – net — (6 ) — (14 ) Provision for Income Taxes $ — $ 120 $ — $ 134 Net Income Total reclassification for the period $ (527 ) $ 1 $ (770 ) $ (238 ) |
Schedule of Changes in Carrying Amount of Debt Issuance Costs | The following summarizes the changes in the carrying amount of our deferred debt issuance costs. Six Months Ended 2018 2017 (In thousands) Balance at beginning of period $ 4,202 $ 5,892 Additions 9,443 — Interest expense (1) (3,273 ) (850 ) Balance at end of period $ 10,372 $ 5,042 (1) Includes the recognition of prior deferred debt issuance costs associated with the Former Credit Facility of $2.4 million for the six months ended June 30, 2018 . |
Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents within our condensed consolidated balance sheets to the totals presented in our condensed consolidated statement of cash flows: June 30, December 31, (In thousands) Cash and cash equivalents $ 317,624 $ 203,404 Restricted cash and cash equivalents 5,870 7,105 Restricted cash and cash equivalents included in Other Assets 2,647 2,635 Total cash and cash equivalents and restricted cash and cash equivalents as presented in our condensed consolidated statement of cash flows $ 326,141 $ 213,144 |
Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents within our condensed consolidated balance sheets to the totals presented in our condensed consolidated statement of cash flows: June 30, December 31, (In thousands) Cash and cash equivalents $ 317,624 $ 203,404 Restricted cash and cash equivalents 5,870 7,105 Restricted cash and cash equivalents included in Other Assets 2,647 2,635 Total cash and cash equivalents and restricted cash and cash equivalents as presented in our condensed consolidated statement of cash flows $ 326,141 $ 213,144 |
Summary of Changes in Carrying Amount of Accrued Warranty Expense | The following summarizes the changes in the carrying amount of our Accrued warranty expense: Six Months Ended 2018 2017 (In thousands) Balance at beginning of period $ 13,428 $ 11,477 Additions 810 667 Expirations and other changes (709 ) (84 ) Payments (347 ) (16 ) Translation (360 ) 173 Balance at end of period $ 12,822 $ 12,217 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Initial Impact of the New Revenue Recognition Standard | A comparison of certain line items in our condensed consolidated statements of income is shown below: Three Months Ended Six Months Ended Current Method Historical Method Current Method Historical Method (In thousands) Revenues $ 438,921 $ 440,103 $ 896,384 $ 905,633 Cost of operations $ 318,209 $ 319,945 $ 645,573 $ 654,487 Operating Income $ 71,549 $ 70,995 $ 151,437 $ 151,772 Provision for Income Taxes $ 18,493 $ 18,311 $ 37,096 $ 37,043 Net Income $ 60,734 $ 60,362 $ 127,147 $ 127,535 The initial impact of the adoption of the FASB Topic Revenue from Contracts with Customers , which was recognized in a cumulative catch-up adjustment on January 1, 2018, is illustrated below: January 1, December 31, 2018 2017 (In thousands) Assets: Contracts in progress $ 260,932 $ 420,628 Deferred Income Taxes $ 85,193 $ 86,740 Liabilities: Accrued liabilities – other $ 66,371 $ 64,738 Advance billings on contracts $ 73,390 $ 246,192 Stockholders' Equity: Retained earnings $ 1,000,578 $ 990,652 A comparison of certain line items in our condensed consolidated balance sheet is shown below: June 30, 2018 Current Method Historical Method (In thousands) Assets: Contracts in progress $ 317,405 $ 348,762 Deferred Income Taxes $ 84,868 $ 85,295 Liabilities: Accrued liabilities – other $ 48,377 $ 45,572 Advance billings on contracts $ 77,775 $ 121,902 Stockholders' Equity: Retained earnings $ 1,097,665 $ 1,088,127 |
Schedule of Disaggregated Revenues | Revenues by geographical area and customer type are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) United States: Government $ 327,896 $ 28,174 $ — $ 356,070 $ 644,527 $ 54,055 $ — $ 698,582 Non-Government 3,849 3,910 327 8,086 3,849 7,087 587 11,523 $ 331,745 $ 32,084 $ 327 $ 364,156 $ 648,376 $ 61,142 $ 587 $ 710,105 Canada: Government $ — $ — $ — $ — $ — $ — $ — $ — Non-Government — 510 64,743 65,253 — 1,485 147,068 148,553 $ — $ 510 $ 64,743 $ 65,253 $ — $ 1,485 $ 147,068 $ 148,553 Other: Government $ — $ — $ — $ — $ — $ — $ — $ — Non-Government 395 2 10,627 11,024 395 2 40,858 41,255 $ 395 $ 2 $ 10,627 $ 11,024 $ 395 $ 2 $ 40,858 $ 41,255 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 Revenues by timing of transfer of goods or services are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) Over-time $ 332,140 $ 32,596 $ 69,324 $ 434,060 $ 648,771 $ 62,629 $ 174,433 $ 885,833 Point-in-time — — 6,373 6,373 — — 14,080 14,080 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 Revenues by contract type are as follows: Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Nuclear Nuclear Nuclear Total Nuclear Nuclear Nuclear Total (In thousands) Fixed-Price Incentive Fee $ 258,150 $ — $ 5,589 $ 263,739 $ 507,390 $ — $ 9,617 $ 517,007 Firm-Fixed-Price 52,472 5,632 44,302 102,406 99,530 11,042 118,584 229,156 Cost-Plus Fee 21,450 26,086 — 47,536 41,683 50,039 45 91,767 Time-and-Materials 68 878 25,806 26,752 168 1,548 60,267 61,983 Segment Revenues $ 332,140 $ 32,596 $ 75,697 440,433 $ 648,771 $ 62,629 $ 188,513 899,913 Adjustments and Eliminations (1,512 ) (3,529 ) Revenues $ 438,921 $ 896,384 |
Schedule of Contract Assets and Liabilities | Our fixed-price incentive fee contracts for our Nuclear Operations Group segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments made during the second and fourth quarters. Retainages also vary as a result of timing differences between incurring costs and achieving milestones that allow us to recover these amounts. This resulted in an increase in retainages on contracts from January 1 to June 30, 2018 as shown below: June 30, January 1, 2018 2018 (In thousands) Included in Contracts in progress: Unbilled receivables $ 306,535 $ 250,325 Included in Accounts receivable – trade, net: Retainages $ 96,731 $ 82,801 Included in Other Assets: Retainages $ 1,626 $ 1,669 Advance billings on contracts $ 77,775 $ 73,390 |
Schedule of Remaining Performance Obligations | Of the June 30, 2018 remaining performance obligations on our contracts with customers, we expect to recognize revenues as follows: 2018 2019 Thereafter Total (In approximate millions) Nuclear Operations Group $ 630 $ 798 $ 1,258 $ 2,686 Nuclear Services Group 35 3 6 44 Nuclear Power Group 141 143 599 883 Total Remaining Performance Obligations $ 806 $ 944 $ 1,863 $ 3,613 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our Long-Term Debt consists of the following: June 30, December 31, (In thousands) Long-Term Debt: Senior Notes $ 400,000 $ — New Credit Facility 291,128 — Former Credit Facility — 513,131 Less: Amounts due within one year 14,556 27,870 Long-term debt, gross 676,572 485,261 Less: Deferred debt issuance costs 10,372 4,202 Long-term debt $ 666,200 $ 481,059 |
Pension Plans and Postretirem24
Pension Plans and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost included in net income are as follows: Pension Benefits Other Benefits Three Months Ended Six Months Ended Three Months Ended Six Months Ended 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Service cost $ 2,405 $ 2,145 $ 4,818 $ 4,296 $ 162 $ 153 $ 327 $ 307 Interest cost 12,307 13,495 24,650 27,008 351 538 900 1,078 Expected return on plan assets (21,553 ) (20,803 ) (43,178 ) (41,640 ) (399 ) (596 ) (1,033 ) (1,191 ) Amortization of prior service cost (credit) 550 525 1,100 1,050 (62 ) (78 ) (107 ) (157 ) Net periodic benefit (income) cost $ (6,291 ) $ (4,638 ) $ (12,610 ) $ (9,286 ) $ 52 $ 17 $ 87 $ 37 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following tables summarize our derivative financial instruments at June 30, 2018 and December 31, 2017 : Asset and Liability Derivatives June 30, December 31, (In thousands) Derivatives Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 444 $ 250 Other Assets $ 468 $ 348 Accounts payable $ 219 $ 177 Other Liabilities $ 284 $ 93 Derivatives Not Designated as Hedges: FX Forward Contracts: Location Accounts receivable – other $ 5,000 $ — |
Schedule of Effect of Derivative Instruments on Financial Statements | The effects of derivatives on our financial statements are outlined below: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands) Derivatives Designated as Hedges: Cash Flow Hedges: FX Forward Contracts: Amount of gain recognized in other comprehensive income $ (157 ) $ 551 $ 75 $ 927 Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion Location Revenues $ 7 $ (9 ) $ (4 ) $ (13 ) Cost of operations $ (92 ) $ 237 $ 28 $ 291 Derivatives Not Designated as Hedges: FX Forward Contracts: Gain (loss) recognized in income Location Other – net $ 5,997 $ — $ 5,997 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments Measured at Fair Value | The following is a summary of our investments measured at fair value at June 30, 2018 : Total Level 1 Level 2 Level 3 (In thousands) Equity securities Equities $ 2,366 $ — $ 2,366 $ — Mutual funds 4,933 — 4,933 — Available-for-sale securities U.S. Government and agency securities 1,824 1,824 — — Corporate bonds 1,493 1,493 — — Asset-backed securities and collateralized mortgage obligations 140 — 140 — Total $ 10,756 $ 3,317 $ 7,439 $ — The following is a summary of our investments measured at fair value at December 31, 2017 : Total Level 1 Level 2 Level 3 (In thousands) Available-for-sale securities U.S. Government and agency securities $ 1,299 $ 1,299 $ — $ — Corporate bonds 3,169 1,534 1,635 — Equities 2,759 — 2,759 — Mutual funds 4,847 — 4,847 — Asset-backed securities and collateralized mortgage obligations 161 — 161 — Total $ 12,235 $ 2,833 $ 9,402 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Segment | An analysis of our operations by reportable segment is as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands) REVENUES: Nuclear Operations Group $ 332,140 $ 312,866 $ 648,771 $ 637,947 Nuclear Services Group 32,596 44,785 62,629 72,639 Nuclear Power Group 75,697 54,569 188,513 132,243 Adjustments and Eliminations (1) (1,512 ) (2,209 ) (3,529 ) (4,589 ) $ 438,921 $ 410,011 $ 896,384 $ 838,240 (1) Segment revenues are net of the following intersegment transfers and other adjustments: Nuclear Operations Group Transfers $ (841 ) $ (205 ) $ (1,980 ) $ (400 ) Nuclear Services Group Transfers (702 ) (1,913 ) (1,540 ) (4,070 ) Nuclear Power Group Transfers 31 (91 ) (9 ) (119 ) $ (1,512 ) $ (2,209 ) $ (3,529 ) $ (4,589 ) OPERATING INCOME: Nuclear Operations Group $ 67,046 $ 69,295 $ 134,703 $ 137,044 Nuclear Services Group 3,511 15,399 4,688 15,801 Nuclear Power Group 7,810 5,712 29,574 18,668 Other (4,357 ) (1,070 ) (8,400 ) (2,682 ) $ 74,010 $ 89,336 $ 160,565 $ 168,831 Unallocated Corporate (2) (2,461 ) (3,908 ) (9,128 ) (7,131 ) Total Operating Income $ 71,549 $ 85,428 $ 151,437 $ 161,700 Other Income (Expense) : Interest income 441 211 1,219 348 Interest expense (7,869 ) (3,906 ) (11,429 ) (7,423 ) Other – net 15,106 6,749 23,016 14,235 Total Other Income (Expense) 7,678 3,054 12,806 7,160 Income before Provision for Income Taxes $ 79,227 $ 88,482 $ 164,243 $ 168,860 (2) Unallocated corporate includes general corporate overhead not allocated to segments. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 2018 2017 2018 2017 (In thousands, except share and per share amounts) Basic: Net Income Attributable to BWX Technologies, Inc. $ 60,663 $ 61,263 $ 127,104 $ 116,982 Weighted-average common shares 99,681,580 99,166,205 99,603,884 99,305,558 Basic earnings per common share $ 0.61 $ 0.62 $ 1.28 $ 1.18 Diluted: Net Income Attributable to BWX Technologies, Inc. $ 60,663 $ 61,263 $ 127,104 $ 116,982 Weighted-average common shares (basic) 99,681,580 99,166,205 99,603,884 99,305,558 Effect of dilutive securities: Stock options, restricted stock units and performance shares (1) 890,157 984,721 938,130 1,115,390 Adjusted weighted-average common shares 100,571,737 100,150,926 100,542,014 100,420,948 Diluted earnings per common share $ 0.60 $ 0.61 $ 1.26 $ 1.16 (1) At June 30, 2018 and 2017 , none of our shares were antidilutive. |
Basis of Presentation and Sig29
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) $ in Thousands | Apr. 17, 2018centerpersonnel | Mar. 02, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)componentsegment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Number of reportable segments | segment | 3 | |||||||
Number of components supplied to worldwide (more than) | component | 1,300 | |||||||
Accumulated other comprehensive income | $ (1,248) | $ (1,248) | $ (9,454) | |||||
Total inventories | 11,700 | 11,700 | 8,600 | |||||
Restricted cash and cash equivalents | $ 8,500 | $ 8,500 | ||||||
Effective tax rate | 23.30% | 30.60% | 22.60% | 30.60% | ||||
Effective income tax rate reconciliation, share-based compensation cost (benefit) amount | $ (200) | $ (2,600) | $ (2,400) | $ (4,900) | ||||
Gross unrecognized tax benefits | 800 | 800 | ||||||
Increase in cash and cash equivalents and restricted cash and cash equivalents | 326,141 | $ 157,930 | 326,141 | $ 157,930 | 213,144 | $ 134,600 | ||
Accounting Standards Update 2016-01 | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Accumulated other comprehensive income | $ 2,200 | |||||||
Cash Held for Future Decommissioning of Facilities | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Restricted cash and cash equivalents | 2,600 | 2,600 | ||||||
Cash Held to Meet Reinsurance Reserve Requirements | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Restricted cash and cash equivalents | $ 5,900 | $ 5,900 | ||||||
Unsuccessful Outcome of Framework Agreement | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Loss contingency as a result of the Framework Agreement | $ 30,000 | |||||||
Canada Revenue Agency | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Statutory tax rate for Canada operations | 25.00% | |||||||
Sotera Health LLC's Nordion Medical Isotope Business | ||||||||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||||||||
Number of personnel acquired | personnel | 150 | |||||||
Number of businesses acquired | center | 2 |
Basis of Presentation and Sig30
Basis of Presentation and Significant Accounting Policies - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Currency translation adjustments | $ 6,415 | $ 13,148 |
Net unrealized gain on derivative financial instruments | 384 | 353 |
Unrecognized prior service cost on benefit obligations | (5,452) | (6,237) |
Net unrealized gain (loss) on available-for-sale investments | (99) | 2,190 |
Accumulated other comprehensive income | $ 1,248 | $ 9,454 |
Basis of Presentation and Sig31
Basis of Presentation and Significant Accounting Policies - Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | $ 438,921 | $ 410,011 | $ 896,384 | $ 838,240 |
Cost of operations | (318,209) | (278,356) | (645,573) | (581,572) |
Total before tax | 79,227 | 88,482 | 164,243 | 168,860 |
Other – net | 15,106 | 6,749 | 23,016 | 14,235 |
Provision for Income Taxes | (18,493) | (27,062) | (37,096) | (51,654) |
Net Income | 60,734 | 61,420 | 127,147 | 117,206 |
Accumulated Other Comprehensive Income (Loss) Component Recognized | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income | (527) | 1 | (770) | (238) |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Realized gain (loss) on derivative financial instruments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenues | 7 | (9) | (4) | (13) |
Cost of operations | (92) | 237 | 28 | 291 |
Total before tax | (85) | 228 | 24 | 278 |
Provision for Income Taxes | 21 | (58) | (9) | (71) |
Net Income | (64) | 170 | 15 | 207 |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Amortization of prior service cost on benefit obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of operations | (488) | (446) | ||
Other – net | (993) | (892) | ||
Provision for Income Taxes | 25 | 157 | 208 | 313 |
Net Income | (463) | (289) | (785) | (579) |
Accumulated Other Comprehensive Income (Loss) Component Recognized | Realized gain on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other – net | 0 | 126 | 0 | 148 |
Provision for Income Taxes | 0 | (6) | 0 | (14) |
Net Income | $ 0 | $ 120 | $ 0 | $ 134 |
Basis of Presentation and Sig32
Basis of Presentation and Significant Accounting Policies Basis of Presentation and Significant Accounting Policies - Changes in Deferred Debt Issuance Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Finance Costs [Roll Forward] | ||||
Balance at beginning of period | $ 4,202 | $ 5,892 | ||
Additions | $ 9,443 | $ 0 | ||
Interest expense | (3,273) | (850) | ||
Balance at end of period | 10,372 | 5,042 | ||
Recognition of debt issuance costs from Former Credit Facility | $ 2,441 | $ 0 |
Basis of Presentation and Sig33
Basis of Presentation and Significant Accounting Policies - Reconciliation of Cash and Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 317,624 | $ 203,404 | ||
Restricted cash and cash equivalents | 5,870 | 7,105 | ||
Restricted cash and cash equivalents included in Other Assets | 2,647 | 2,635 | ||
Total cash and cash equivalents and restricted cash and cash equivalents as presented in our condensed consolidated statement of cash flows | $ 326,141 | $ 213,144 | $ 157,930 | $ 134,600 |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies - Summary of Changes in Carrying Amount of Accrued Warranty Expense (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 13,428 | $ 11,477 |
Additions | 810 | 667 |
Expirations and other changes | (709) | (84) |
Payments | (347) | (16) |
Translation | (360) | 173 |
Balance at end of period | $ 12,822 | $ 12,217 |
Revenue Recognition - Initial I
Revenue Recognition - Initial Impact of New Revenue Recognition Standard (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Contracts in progress | $ 317,405 | $ 420,628 | |
Deferred Income Taxes | 84,868 | 86,740 | |
Liabilities | |||
Accrued liabilities – other | 48,377 | 64,738 | |
Advance billings on contracts | 77,775 | 246,192 | |
Stockholders' Equity | |||
Retained earnings | 1,097,665 | 990,652 | |
Accounting Standards Update 2014-09 | |||
Assets | |||
Contracts in progress | 317,405 | $ 260,932 | |
Deferred Income Taxes | 84,868 | 85,193 | |
Liabilities | |||
Accrued liabilities – other | 48,377 | 66,371 | |
Advance billings on contracts | 77,775 | 73,390 | |
Stockholders' Equity | |||
Retained earnings | 1,097,665 | $ 1,000,578 | |
Accounting Standards Update 2014-09 | Calculated under Revenue Guidance in Effect before Topic 606 | |||
Assets | |||
Contracts in progress | 348,762 | 420,628 | |
Deferred Income Taxes | 85,295 | 86,740 | |
Liabilities | |||
Accrued liabilities – other | 45,572 | 64,738 | |
Advance billings on contracts | 121,902 | 246,192 | |
Stockholders' Equity | |||
Retained earnings | $ 1,088,127 | $ 990,652 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 440,433 | $ 899,913 | ||
Revenues | 438,921 | $ 410,011 | 896,384 | $ 838,240 |
Fixed-Price Incentive Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 263,739 | 517,007 | ||
Firm-Fixed-Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 102,406 | 229,156 | ||
Cost-Plus Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 47,536 | 91,767 | ||
Time-and-Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 26,752 | 61,983 | ||
Over-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 434,060 | 885,833 | ||
Point-in-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 6,373 | 14,080 | ||
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 364,156 | 710,105 | ||
UNITED STATES | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 356,070 | 698,582 | ||
UNITED STATES | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 8,086 | 11,523 | ||
CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 65,253 | 148,553 | ||
CANADA | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
CANADA | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 65,253 | 148,553 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 11,024 | 41,255 | ||
Other | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Other | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 11,024 | 41,255 | ||
Nuclear Operations Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 332,140 | 648,771 | ||
Nuclear Operations Group | Fixed-Price Incentive Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 258,150 | 507,390 | ||
Nuclear Operations Group | Firm-Fixed-Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 52,472 | 99,530 | ||
Nuclear Operations Group | Cost-Plus Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 21,450 | 41,683 | ||
Nuclear Operations Group | Time-and-Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 68 | 168 | ||
Nuclear Operations Group | Over-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 332,140 | 648,771 | ||
Nuclear Operations Group | Point-in-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Nuclear Services Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32,596 | 62,629 | ||
Nuclear Services Group | Fixed-Price Incentive Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Nuclear Services Group | Firm-Fixed-Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 5,632 | 11,042 | ||
Nuclear Services Group | Cost-Plus Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 26,086 | 50,039 | ||
Nuclear Services Group | Time-and-Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 878 | 1,548 | ||
Nuclear Services Group | Over-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32,596 | 62,629 | ||
Nuclear Services Group | Point-in-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Nuclear Power Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 75,697 | 188,513 | ||
Nuclear Power Group | Fixed-Price Incentive Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 5,589 | 9,617 | ||
Nuclear Power Group | Firm-Fixed-Price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 44,302 | 118,584 | ||
Nuclear Power Group | Cost-Plus Fee | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 45 | ||
Nuclear Power Group | Time-and-Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 25,806 | 60,267 | ||
Nuclear Power Group | Over-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 69,324 | 174,433 | ||
Nuclear Power Group | Point-in-time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 6,373 | 14,080 | ||
Operating Segments | Nuclear Operations Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 332,140 | 648,771 | ||
Revenues | 332,140 | 312,866 | 648,771 | 637,947 |
Operating Segments | Nuclear Operations Group | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 331,745 | 648,376 | ||
Operating Segments | Nuclear Operations Group | UNITED STATES | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 327,896 | 644,527 | ||
Operating Segments | Nuclear Operations Group | UNITED STATES | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3,849 | 3,849 | ||
Operating Segments | Nuclear Operations Group | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Operations Group | CANADA | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Operations Group | CANADA | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Operations Group | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 395 | 395 | ||
Operating Segments | Nuclear Operations Group | Other | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Operations Group | Other | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 395 | 395 | ||
Operating Segments | Nuclear Services Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32,596 | 62,629 | ||
Operating Segments | Nuclear Services Group | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 32,084 | 61,142 | ||
Operating Segments | Nuclear Services Group | UNITED STATES | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 28,174 | 54,055 | ||
Operating Segments | Nuclear Services Group | UNITED STATES | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3,910 | 7,087 | ||
Operating Segments | Nuclear Services Group | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 510 | 1,485 | ||
Operating Segments | Nuclear Services Group | CANADA | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Services Group | CANADA | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 510 | 1,485 | ||
Operating Segments | Nuclear Services Group | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 2 | ||
Operating Segments | Nuclear Services Group | Other | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Services Group | Other | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 2 | 2 | ||
Operating Segments | Nuclear Power Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 75,697 | 188,513 | ||
Operating Segments | Nuclear Power Group | UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 327 | 587 | ||
Operating Segments | Nuclear Power Group | UNITED STATES | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Power Group | UNITED STATES | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 327 | 587 | ||
Operating Segments | Nuclear Power Group | CANADA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 64,743 | 147,068 | ||
Operating Segments | Nuclear Power Group | CANADA | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Power Group | CANADA | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 64,743 | 147,068 | ||
Operating Segments | Nuclear Power Group | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10,627 | 40,858 | ||
Operating Segments | Nuclear Power Group | Other | Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 0 | 0 | ||
Operating Segments | Nuclear Power Group | Other | Non-Government | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 10,627 | 40,858 | ||
Adjustments and Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (1,512) | (2,209) | (3,529) | (4,589) |
Adjustments and Eliminations | Nuclear Operations Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ (841) | $ (205) | $ (1,980) | $ (400) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net favorable changes in estimate that resulted in an increase in revenue | $ 14,500 | |
Contracts in progress increase | 56,200 | |
Revenue recognized from advance billings on contracts | 44,700 | |
Revenue from contract with customer | $ 440,433 | 899,913 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from contract with customer | $ 1,200 | $ 9,200 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 |
Contracts with Customers, Asset and Liability [Line Items] | ||
Advance billings on contracts | $ 77,775 | $ 73,390 |
Contracts in Progress | ||
Contracts with Customers, Asset and Liability [Line Items] | ||
Contract with customer, asset | 306,535 | 250,325 |
Accounts Receivable | ||
Contracts with Customers, Asset and Liability [Line Items] | ||
Contract with customer, asset | 96,731 | 82,801 |
Other Assets | ||
Contracts with Customers, Asset and Liability [Line Items] | ||
Contract with customer, asset | $ 1,626 | $ 1,669 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 806 |
Remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 944 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 1,863 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 3,613 |
Nuclear Operations Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 630 |
Nuclear Operations Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 798 |
Nuclear Operations Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 1,258 |
Nuclear Operations Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 2,686 |
Nuclear Services Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 35 |
Nuclear Services Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 3 |
Nuclear Services Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 6 |
Nuclear Services Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 44 |
Nuclear Power Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 141 |
Nuclear Power Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 143 |
Nuclear Power Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | 599 |
Nuclear Power Group | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total Remaining Performance Obligations | $ 883 |
Revenue Recognition - Historica
Revenue Recognition - Historical Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Assets | ||||||
Contracts in progress | $ 317,405 | $ 317,405 | $ 420,628 | |||
Deferred Income Taxes | 84,868 | 84,868 | 86,740 | |||
Liabilities | ||||||
Accrued liabilities – other | 48,377 | 48,377 | 64,738 | |||
Advance billings on contracts | 77,775 | 77,775 | 246,192 | |||
Stockholders' Equity | ||||||
Retained earnings | 1,097,665 | 1,097,665 | 990,652 | |||
Revenues | 438,921 | $ 410,011 | 896,384 | $ 838,240 | ||
Cost of operations | 318,209 | 278,356 | 645,573 | 581,572 | ||
Operating Income | 71,549 | 85,428 | 151,437 | 161,700 | ||
Provision for Income Taxes | 18,493 | 27,062 | 37,096 | 51,654 | ||
Net Income | 60,734 | $ 61,420 | 127,147 | $ 117,206 | ||
Accounting Standards Update 2014-09 | ||||||
Assets | ||||||
Contracts in progress | 317,405 | 317,405 | $ 260,932 | |||
Deferred Income Taxes | 84,868 | 84,868 | 85,193 | |||
Liabilities | ||||||
Accrued liabilities – other | 48,377 | 48,377 | 66,371 | |||
Advance billings on contracts | 77,775 | 77,775 | 73,390 | |||
Stockholders' Equity | ||||||
Retained earnings | 1,097,665 | 1,097,665 | $ 1,000,578 | |||
Revenues | 438,921 | 896,384 | ||||
Cost of operations | 318,209 | 645,573 | ||||
Operating Income | 71,549 | 151,437 | ||||
Provision for Income Taxes | 18,493 | 37,096 | ||||
Net Income | 60,734 | 127,147 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||||
Assets | ||||||
Contracts in progress | 348,762 | 348,762 | 420,628 | |||
Deferred Income Taxes | 85,295 | 85,295 | 86,740 | |||
Liabilities | ||||||
Accrued liabilities – other | 45,572 | 45,572 | 64,738 | |||
Advance billings on contracts | 121,902 | 121,902 | 246,192 | |||
Stockholders' Equity | ||||||
Retained earnings | 1,088,127 | 1,088,127 | $ 990,652 | |||
Revenues | 440,103 | 905,633 | ||||
Cost of operations | 319,945 | 654,487 | ||||
Operating Income | 70,995 | 151,772 | ||||
Provision for Income Taxes | 18,311 | 37,043 | ||||
Net Income | $ 60,362 | $ 127,535 |
Long-term Debt - Components of
Long-term Debt - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Less: Amounts due within one year | $ 14,556 | $ 27,870 | ||
Long-term debt, gross | 676,572 | 485,261 | ||
Less: Deferred debt issuance costs | 10,372 | 4,202 | $ 5,042 | $ 5,892 |
Long-term debt | 666,200 | 481,059 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross, including current maturities | 400,000 | 0 | ||
Credit Facility | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross, including current maturities | 291,128 | 0 | ||
Credit Facility | Former Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross, including current maturities | $ 0 | $ 513,131 |
Long-term Debt (Details)
Long-term Debt (Details) | May 24, 2018USD ($) | Jun. 30, 2018USD ($) | Sep. 02, 2016USD ($) | May 11, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Maturity of long-term debt - 2018 | $ 7,300,000 | |||
Maturity of long-term debt - 2019 | 14,600,000 | |||
Maturity of long-term debt - 2020 | 14,600,000 | |||
Maturity of long-term debt - 2021 | 14,600,000 | |||
Maturity of long-term debt - 2022 | 14,600,000 | |||
Maturity of long-term debt - 2023 | 225,600,000 | |||
Maturity of long-term debt - Thereafter | $ 400,000,000 | |||
Debt instrument redemption price percentage of principal amount redeemed | 105.375% | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 100.00% | |||
Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt instrument redemption price percentage | 40.00% | |||
New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||
EBITDA percentage | 65.00% | |||
Maximum leverage ratio | 2.50 | |||
Commitment fee percentage of unused capacity | 0.175% | |||
Remaining borrowing capacity | $ 428,500,000 | |||
Weighted-average interest rate on outstanding borrowings | 3.09% | |||
Senior Notes | Senior Notes Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, aggregate principal amount | $ 400,000,000 | |||
Debt instrument, interest rate | 5.375% | |||
Secured Debt | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum leverage ratio | 4 | |||
Maximum leverage ratio, future increase | 4.5 | |||
Maximum interest coverage ratio | 3 | |||
Base Rate Loans | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Base Rate Loans | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
New Revolving Credit Facility | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 0 | |||
New Revolving Credit Facility | New Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 0.275% | |||
New Revolving Credit Facility | New Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 0.15% | |||
New Revolving Credit Facility | Secured Debt | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||
Revolving Credit Facility | Secured Debt | Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | |||
New USD Term Loan | Secured Debt | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | |||
New CAD Term Loan | Secured Debt | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 250,000,000 | |||
Quarterly amortization payment, percentage of principal | 1.25% | |||
Term Loan Credit Facility | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 291,100,000 | |||
Term Loan Credit Facility | Secured Debt | Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | |||
Canadian Dollar Term Loan Facility | Secured Debt | Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 137,500,000 | |||
U.S. Dollar Term Loan Facility | Secured Debt | Amended Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 112,500,000 | |||
Letter of Credit | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 1.375% | |||
Borrowings outstanding | $ 71,500,000 | |||
Letter of Credit | New Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 2.00% | |||
Letter of Credit | New Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 1.25% | |||
Performance Letter Of Credit | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.825% | |||
Performance Letter Of Credit | New Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 1.20% | |||
Performance Letter Of Credit | New Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage of unused capacity | 0.75% | |||
Eurodollar | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.375% | |||
Eurodollar | New Credit Facility | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Eurodollar | New Credit Facility | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Federal Funds Effective Swap Rate | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Thirty Day London Interbank Offered Rate LIBOR Plus | Base Rate Loans | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Base Rate | New Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.375% |
Pension Plans and Postretirem43
Pension Plans and Postretirement Benefits - (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2018USD ($)retiree | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 2,600 | $ 2,300 | $ 5,100 | $ 4,600 | |
Net periodic benefit (income) cost, excluding service costs | (8,800) | (6,900) | (17,700) | (13,900) | |
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 2,405 | $ 2,145 | $ 4,818 | $ 4,296 | |
Subsequent Event | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of retirees transferred to annuity contract | retiree | 1,300 | ||||
Subsequent Event | Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Transfer of domestic pension benefit obligation to annuity contract | $ 240,000 |
Pension Plans and Postretirem44
Pension Plans and Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,600 | $ 2,300 | $ 5,100 | $ 4,600 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2,405 | 2,145 | 4,818 | 4,296 |
Interest cost | 12,307 | 13,495 | 24,650 | 27,008 |
Expected return on plan assets | (21,553) | (20,803) | (43,178) | (41,640) |
Amortization of prior service cost (credit) | 550 | 525 | 1,100 | 1,050 |
Net periodic benefit (income) cost | (6,291) | (4,638) | (12,610) | (9,286) |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 162 | 153 | 327 | 307 |
Interest cost | 351 | 538 | 900 | 1,078 |
Expected return on plan assets | (399) | (596) | (1,033) | (1,191) |
Amortization of prior service cost (credit) | (62) | (78) | (107) | (157) |
Net periodic benefit (income) cost | $ 52 | $ 17 | $ 87 | $ 37 |
Derivative Financial Instrume45
Derivative Financial Instruments - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net losses on derivative financial instruments in accumulated other comprehensive income | $ 0.4 |
Notional amount of foreign currency forward contracts | $ 249.4 |
Derivative Financial Instrume46
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Details) - FX Forward Contracts - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives Designated as Hedges | Accounts receivable – other | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 444 | $ 250 |
Derivatives Designated as Hedges | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 468 | 348 |
Derivatives Designated as Hedges | Accounts payable | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 219 | 177 |
Derivatives Designated as Hedges | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 284 | 93 |
Derivatives Not Designated as Hedges | Accounts receivable – other | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 5,000 | $ 0 |
Derivative Financial Instrume47
Derivative Financial Instruments - Schedule of Effect of Derivative Instruments on Statements of Financial Performance (Details) - Cash Flow Hedges - FX Forward Contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivatives Designated as Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in other comprehensive income | $ (157) | $ 551 | $ 75 | $ 927 |
Derivatives Designated as Hedges | Revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | 7 | (9) | (4) | (13) |
Derivatives Designated as Hedges | Cost of operations | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings: effective portion | (92) | 237 | 28 | 291 |
Derivatives Not Designated as Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain recognized in other comprehensive income | $ 5,997 | $ 0 | $ 5,997 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Investments and Available-for-Sale Securities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 10,756 | |
Available-for-sale securities | $ 12,235 | |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,366 | |
Available-for-sale securities | 2,759 | |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 4,933 | |
Available-for-sale securities | 4,847 | |
U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,824 | |
Available-for-sale securities | 1,299 | |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,493 | |
Available-for-sale securities | 3,169 | |
Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 140 | |
Available-for-sale securities | 161 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 3,317 | |
Available-for-sale securities | 2,833 | |
Level 1 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Available-for-sale securities | 0 | |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Available-for-sale securities | 0 | |
Level 1 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,824 | |
Available-for-sale securities | 1,299 | |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,493 | |
Available-for-sale securities | 1,534 | |
Level 1 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,439 | |
Available-for-sale securities | 9,402 | |
Level 2 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,366 | |
Available-for-sale securities | 2,759 | |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 4,933 | |
Available-for-sale securities | 4,847 | |
Level 2 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 1,635 | |
Level 2 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 140 | |
Available-for-sale securities | 161 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Level 3 | Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Available-for-sale securities | 0 | |
Level 3 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Available-for-sale securities | 0 | |
Level 3 | U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | |
Available-for-sale securities | 0 | |
Level 3 | Asset-backed securities and collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 0 | |
Available-for-sale securities | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
FX Forward Contracts | ||
Fair Values Of Financial Instruments [Line Items] | ||
Fair value of foreign currency forward contracts | $ 5.4 | $ 0.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock based compensation expense | $ 1.4 | $ 4 | $ 6.3 | $ 8.7 |
Stock-based compensation, tax benefits | $ 0.3 | $ 1.4 | $ 1.2 | $ 3 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018segment | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Number of reportable segments | 3 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Operating Results by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | $ 438,921 | $ 410,011 | $ 896,384 | $ 838,240 |
Operating Income | 71,549 | 85,428 | 151,437 | 161,700 |
Interest income | 441 | 211 | 1,219 | 348 |
Interest expense | (7,869) | (3,906) | (11,429) | (7,423) |
Other – net | 15,106 | 6,749 | 23,016 | 14,235 |
Total Other Income (Expense) | 7,678 | 3,054 | 12,806 | 7,160 |
Income before Provision for Income Taxes | 79,227 | 88,482 | 164,243 | 168,860 |
Operating Segments | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | 74,010 | 89,336 | 160,565 | 168,831 |
Operating Segments | Nuclear Operations Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 332,140 | 312,866 | 648,771 | 637,947 |
Operating Income | 67,046 | 69,295 | 134,703 | 137,044 |
Operating Segments | Nuclear Services Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 32,596 | 44,785 | 62,629 | 72,639 |
Operating Income | 3,511 | 15,399 | 4,688 | 15,801 |
Operating Segments | Nuclear Power Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 75,697 | 54,569 | 188,513 | 132,243 |
Operating Income | 7,810 | 5,712 | 29,574 | 18,668 |
Operating Segments | Other | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | (4,357) | (1,070) | (8,400) | (2,682) |
Adjustments and Eliminations | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (1,512) | (2,209) | (3,529) | (4,589) |
Adjustments and Eliminations | Nuclear Operations Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (841) | (205) | (1,980) | (400) |
Adjustments and Eliminations | Nuclear Services Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | (702) | (1,913) | (1,540) | (4,070) |
Adjustments and Eliminations | Nuclear Power Group | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Revenues | 31 | (91) | (9) | (119) |
Unallocated Corporate | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Operating Income | $ (2,461) | $ (3,908) | $ (9,128) | $ (7,131) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic | ||||
Net income attributable to BWX Technologies, Inc. | $ 60,663 | $ 61,263 | $ 127,104 | $ 116,982 |
Weighted-average common shares (in shares) | 99,681,580 | 99,166,205 | 99,603,884 | 99,305,558 |
Basic earnings per common share (in usd per share) | $ 0.61 | $ 0.62 | $ 1.28 | $ 1.18 |
Diluted | ||||
Net income attributable to BWX Technologies, Inc. | $ 60,663 | $ 61,263 | $ 127,104 | $ 116,982 |
Weighted-average common shares (in shares) | 99,681,580 | 99,166,205 | 99,603,884 | 99,305,558 |
Effect of dilutive securities | ||||
Stock options, restricted stock units and performance shares (in shares) | 890,157 | 984,721 | 938,130 | 1,115,390 |
Adjusted weighted-average common shares (in shares) | 100,571,737 | 100,150,926 | 100,542,014 | 100,420,948 |
Diluted earnings per common share (in usd per share) | $ 0.60 | $ 0.61 | $ 1.26 | $ 1.16 |