Special Charges for Restructuring Activities

6 Months Ended

Jun. 30, 2014

Restructuring And Related Activities [Abstract]

Special Charges for Restructuring Activities

NOTE 4 – SPECIAL CHARGES FOR RESTRUCTURING ACTIVITIES

Global Competitiveness Initiative

In the third quarter of 2012, we announced the Global Competitiveness Initiative (“GCI”) to enhance competitiveness, better position B&W for growth and improve profitability. In conjunction with GCI, during the six months ended June 30, 2014, we incurred $0.2 million of expenses related to employee termination benefits and $2.2 million of expenses related to facility consolidation. During the six months ended June 30, 2013, we recorded $15.1 million of expenses related to employee termination benefits and $5.6 million of expenses related to consulting and administrative costs.

Other Restructuring Actions

In the first quarter of 2014, we announced a business optimization project focused on increasing margins in our Power Generation and Nuclear Energy segments. In the six months ended June 30, 2014, we incurred $9.4 million of expenses related to this project, including $8.5 million of expenses related to employee termination benefits, $0.7 million of expenses related to consulting and administrative costs and $0.2 million of expenses related to facility consolidation.

In the six months ended June 30, 2014, we also incurred $7.9 million of expenses related to the restructuring of our mPower program, including $5.7 million of expenses related to employee termination benefits, $2.0 million of expenses related to consulting and administrative costs and $0.2 million of expenses related to facility consolidation.

Additionally, we incurred expenses related to employee termination benefits totaling $0.4 million for the six months ended June 30, 2014 related to the restructuring of our Technical Services segment.

The following summarizes the changes in our restructuring liability for the six months ended June 30, 2014 and 2013:

	Six months ended
	June 30,			June 30,
	2014			2013
	(In thousands)
Balance at the beginning of the period	$	10,054		$	—
Special charges for restructuring activities(1)		17,743			20,655
Payments		(11,327	)		(10,705	)
Translation and other		(7	)		—
Balance at the end of the period	$	16,463		$	9,950

(1) Excludes non-cash charges of $2.4 million for the six months ended June 30, 2014, which did not impact the restructuring liability.

At June 30, 2014, unpaid restructuring charges totaled $16.3 million for employee termination benefits and $0.2 million for consulting and administrative costs.