(Mark One) | |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) | ||||
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||
Emerging growth company | ||||||
PAGE | ||
March 31, 2020 and December 31, 2019 (Unaudited) | ||
Three Months Ended March 31, 2020 and 2019 (Unaudited) | ||
Three Months Ended March 31, 2020 and 2019 (Unaudited) | ||
Three Months Ended March 31, 2020 and 2018 (Unaudited) | ||
Three Months Ended March 31, 2020 and 2019 (Unaudited) | ||
Item 1. | CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
March 31, 2020 | December 31, 2019 | |||||||
(Unaudited) (In thousands) | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash and cash equivalents | ||||||||
Investments | ||||||||
Accounts receivable – trade, net | ||||||||
Accounts receivable – other | ||||||||
Retainages | ||||||||
Contracts in progress | ||||||||
Other current assets | ||||||||
Assets held for sale | ||||||||
Total Current Assets | ||||||||
Property, Plant and Equipment, Net | ||||||||
Investments | ||||||||
Goodwill | ||||||||
Deferred Income Taxes | ||||||||
Investments in Unconsolidated Affiliates | ||||||||
Intangible Assets | ||||||||
Other Assets | ||||||||
TOTAL | $ | $ | ||||||
March 31, 2020 | December 31, 2019 | |||||||
(Unaudited) (In thousands, except share and per share amounts) | ||||||||
Current Liabilities: | ||||||||
Current maturities of long-term debt | $ | $ | ||||||
Accounts payable | ||||||||
Accrued employee benefits | ||||||||
Accrued liabilities – other | ||||||||
Advance billings on contracts | ||||||||
Accrued warranty expense | ||||||||
Income taxes payable | ||||||||
Liabilities associated with assets held for sale | ||||||||
Total Current Liabilities | ||||||||
Long-Term Debt | ||||||||
Accumulated Postretirement Benefit Obligation | ||||||||
Environmental Liabilities | ||||||||
Pension Liability | ||||||||
Other Liabilities | ||||||||
Commitments and Contingencies (Note 6) | ||||||||
Stockholders' Equity: | ||||||||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 126,888,659 and 126,579,285 shares at March 31, 2020 and December 31, 2019, respectively | ||||||||
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued | ||||||||
Capital in excess of par value | ||||||||
Retained earnings | ||||||||
Treasury stock at cost, 31,660,046 and 31,266,670 shares at March 31, 2020 and December 31, 2019, respectively | ( | ) | ( | ) | ||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | ||||
Stockholders' Equity – BWX Technologies, Inc. | ||||||||
Noncontrolling interest | ||||||||
Total Stockholders' Equity | ||||||||
TOTAL | $ | $ | ||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Unaudited) (In thousands, except share and per share amounts) | ||||||||
Revenues | $ | $ | ||||||
Costs and Expenses: | ||||||||
Cost of operations | ||||||||
Research and development costs | ||||||||
Selling, general and administrative expenses | ||||||||
Total Costs and Expenses | ||||||||
Equity in Income of Investees | ||||||||
Operating Income | ||||||||
Other Income (Expense): | ||||||||
Interest income | ||||||||
Interest expense | ( | ) | ( | ) | ||||
Other – net | ||||||||
Total Other Income (Expense) | ( | ) | ||||||
Income before Provision for Income Taxes | ||||||||
Provision for Income Taxes | ||||||||
Net Income | $ | $ | ||||||
Net Income Attributable to Noncontrolling Interest | ( | ) | ( | ) | ||||
Net Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Earnings per Common Share: | ||||||||
Basic: | ||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Diluted: | ||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Shares used in the computation of earnings per share (Note 10): | ||||||||
Basic | ||||||||
Diluted | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Unaudited) (In thousands) | ||||||||
Net Income | $ | $ | ||||||
Other Comprehensive Income (Loss): | ||||||||
Currency translation adjustments | ( | ) | ||||||
Derivative financial instruments: | ||||||||
Unrealized gains (losses) arising during the period, net of tax (provision) benefit of $(109) and $164, respectively | ( | ) | ||||||
Reclassification adjustment for losses (gains) included in net income, net of tax (benefit) provision of $(138) and $49, respectively | ( | ) | ||||||
Amortization of benefit plan costs, net of tax benefit of $(167) and $(136), respectively | ||||||||
Investments: | ||||||||
Unrealized (losses) gains arising during the period, net of tax provision of $(2) and $(7), respectively | ( | ) | ||||||
Other Comprehensive Income (Loss) | ( | ) | ||||||
Total Comprehensive Income | ||||||||
Comprehensive Income Attributable to Noncontrolling Interest | ( | ) | ( | ) | ||||
Comprehensive Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Common Stock | Capital In Excess of Par Value | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
Shares | Par Value | Retained Earnings | Treasury Stock | Stockholders' Equity | Noncontrolling Interest | ||||||||||||||||||||||||||||||
(In thousands, except share and per share amounts) | |||||||||||||||||||||||||||||||||||
Balance December 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividends declared ($0.19 per share) | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Currency translation adjustments | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Defined benefit obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Available-for-sale investments | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Exercises of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Shares placed in treasury | — | — | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||||||||||||||
Stock-based compensation charges | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||
Balance March 31, 2020 (unaudited) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
Balance December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
Recently adopted accounting standards | — | — | — | ( | ) | — | ( | ) | — | ( | ) | ||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||
Dividends declared ($0.17 per share) | — | — | — | ( | ) | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Currency translation adjustments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Derivative financial instruments | — | — | — | — | ( | ) | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Defined benefit obligations | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Available-for-sale investments | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Exercises of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Shares placed in treasury | — | — | — | — | ( | ) | ( | ) | — | ( | ) | ||||||||||||||||||||||||
Stock-based compensation charges | — | — | — | — | |||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||||||||||||||
Balance March 31, 2019 (unaudited) | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | $ | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(Unaudited) (In thousands) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Income of investees, net of dividends | ( | ) | ( | ) | ||||
Recognition of losses for pension and postretirement plans | ||||||||
Stock-based compensation expense | ||||||||
Other, net | ( | ) | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | ( | ) | ||||||
Accounts payable | ( | ) | ||||||
Retainages | ( | ) | ( | ) | ||||
Contracts in progress and advance billings on contracts | ( | ) | ( | ) | ||||
Income taxes | ||||||||
Accrued and other current liabilities | ( | ) | ( | ) | ||||
Pension liabilities, accrued postretirement benefit obligations and employee benefits | ( | ) | ( | ) | ||||
Other, net | ( | ) | ( | ) | ||||
NET CASH USED IN OPERATING ACTIVITIES | ( | ) | ( | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment | ( | ) | ( | ) | ||||
Acquisition of business | ( | ) | ||||||
Purchases of securities | ( | ) | ( | ) | ||||
Sales and maturities of securities | ||||||||
NET CASH USED IN INVESTING ACTIVITIES | ( | ) | ( | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Borrowings of long-term debt | ||||||||
Repayments of long-term debt | ( | ) | ( | ) | ||||
Payment of debt issuance costs | ( | ) | ||||||
Repurchases of common shares | ( | ) | ( | ) | ||||
Dividends paid to common shareholders | ( | ) | ( | ) | ||||
Exercises of stock options | ||||||||
Cash paid for shares withheld to satisfy employee taxes | ( | ) | ( | ) | ||||
Other, net | ||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | ||||||||
EFFECTS OF EXCHANGE RATE CHANGES ON CASH | ( | ) | ||||||
TOTAL DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS | ( | ) | ( | ) | ||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | ||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | $ | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | $ | ||||||
Income taxes (net of refunds) | $ | $ | ||||||
SCHEDULE OF NON-CASH INVESTING ACTIVITY: | ||||||||
Accrued capital expenditures included in accounts payable | $ | $ | ||||||
• | Our Nuclear Operations Group segment manufactures naval nuclear reactors for the U.S. Naval Nuclear Propulsion Program for use in 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 Power Group segment fabricates commercial nuclear 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 and supplies nuclear-grade materials and precisely machined components for nuclear utility customers. BWXT has supplied the nuclear industry with more than |
• | 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 |
March 31, 2020 | December 31, 2019 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash and cash equivalents | ||||||||
Restricted cash and cash equivalents included in Other Assets | ||||||||
Total cash and cash equivalents and restricted cash and cash equivalents as presented on our condensed consolidated statement of cash flows | $ | $ | ||||||
March 31, 2020 | December 31, 2019 | |||||||
(In thousands) | ||||||||
Land | $ | $ | ||||||
Buildings | ||||||||
Machinery and equipment | ||||||||
Property under construction | ||||||||
Less: Accumulated depreciation | ||||||||
Property, Plant and Equipment, Net | $ | $ | ||||||
March 31, 2020 | December 31, 2019 | |||||||
(In thousands) | ||||||||
Currency translation adjustments | $ | ( | ) | $ | ||||
Net unrealized gain on derivative financial instruments | ||||||||
Unrecognized prior service cost on benefit obligations | ( | ) | ( | ) | ||||
Net unrealized gain (loss) on available-for-sale investments | ( | ) | ||||||
Accumulated other comprehensive income (loss) | $ | ( | ) | $ | ( | ) | ||
Three Months Ended March 31, | ||||||||||
2020 | 2019 | |||||||||
Accumulated Other Comprehensive Income (Loss) Component Recognized | (In thousands) | Line Item Presented | ||||||||
Realized gain (loss) on derivative financial instruments | $ | ( | ) | $ | ( | ) | Revenues | |||
( | ) | Cost of operations | ||||||||
( | ) | Total before tax | ||||||||
( | ) | Provision for Income Taxes | ||||||||
$ | ( | ) | $ | Net Income | ||||||
Amortization of prior service cost on benefit obligations | $ | ( | ) | $ | ( | ) | Other – net | |||
Provision for Income Taxes | ||||||||||
$ | ( | ) | $ | ( | ) | Net Income | ||||
Total reclassification for the period | $ | ( | ) | $ | ( | ) | ||||
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||
Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
United States: | ||||||||||||||||||||||||||||||||
Government | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Non-Government | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Canada: | ||||||||||||||||||||||||||||||||
Non-Government | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Non-Government | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Segment Revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Adjustments and Eliminations | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Revenues | $ | $ | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||
Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Over time | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Point-in-time | ||||||||||||||||||||||||||||||||
Segment Revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Adjustments and Eliminations | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Revenues | $ | $ | ||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||
Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | Nuclear Operations Group | Nuclear Power Group | Nuclear Services Group | Total | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Fixed-Price Incentive Fee | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Firm-Fixed-Price | ||||||||||||||||||||||||||||||||
Cost-Plus Fee | ||||||||||||||||||||||||||||||||
Time-and-Materials | ||||||||||||||||||||||||||||||||
Segment Revenues | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Adjustments and Eliminations | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Revenues | $ | $ | ||||||||||||||||||||||||||||||
March 31, | December 31, | |||||||
2020 | 2019 | |||||||
(In thousands) | ||||||||
Included in Contracts in progress: | ||||||||
Unbilled receivables | $ | $ | ||||||
Retainages | $ | $ | ||||||
Included in Other Assets: | ||||||||
Retainages | $ | $ | ||||||
Advance billings on contracts | $ | $ | ||||||
2020 | 2021 | Thereafter | Total | |||||||||||||
(In approximate millions) | ||||||||||||||||
Nuclear Operations Group | $ | $ | $ | $ | ||||||||||||
Nuclear Power Group | ||||||||||||||||
Nuclear Services Group | ||||||||||||||||
Total Remaining Performance Obligations | $ | $ | $ | $ | ||||||||||||
March 31, 2020 | December 31, 2019 | |||||||
(In thousands) | ||||||||
Secured Debt: | ||||||||
Senior Notes | $ | $ | ||||||
Credit Facility | ||||||||
Less: Amounts due within one year | ||||||||
Long-Term Debt, gross | ||||||||
Less: Deferred debt issuance costs | ||||||||
Long-Term Debt | $ | $ | ||||||
Pension Benefits | Other Benefits | |||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(In thousands) | ||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service cost (credit) | ( | ) | ( | ) | ||||||||||||
Net periodic benefit (income) cost | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | ||||||||||||||||
Mutual funds | $ | $ | $ | $ | ||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Government and agency securities | ||||||||||||||||
Corporate bonds | ||||||||||||||||
Asset-backed securities and collateralized mortgage obligations | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||
Equity securities | ||||||||||||||||
Equities | $ | $ | $ | $ | ||||||||||||
Mutual funds | ||||||||||||||||
Available-for-sale securities | ||||||||||||||||
U.S. Government and agency securities | ||||||||||||||||
Corporate bonds | ||||||||||||||||
Asset-backed securities and collateralized mortgage obligations | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(In thousands) | ||||||||
REVENUES: | ||||||||
Nuclear Operations Group | $ | $ | ||||||
Nuclear Power Group | ||||||||
Nuclear Services Group | ||||||||
Eliminations (1) | ( | ) | ( | ) | ||||
$ | $ | |||||||
(1) | Segment revenues are net of the following intersegment transfers: |
Nuclear Operations Group Transfers | $ | ( | ) | $ | ( | ) | ||
Nuclear Power Group Transfers | ( | ) | ( | ) | ||||
Nuclear Services Group Transfers | ( | ) | ( | ) | ||||
$ | ( | ) | $ | ( | ) | |||
OPERATING INCOME: | ||||||||
Nuclear Operations Group | $ | $ | ||||||
Nuclear Power Group | ||||||||
Nuclear Services Group | ||||||||
Other | ( | ) | ( | ) | ||||
$ | $ | |||||||
Unallocated Corporate (2) | ( | ) | ( | ) | ||||
Total Operating Income | $ | $ | ||||||
Other Income (Expense) | ( | ) | ||||||
Income before Provision for Income Taxes | $ | $ | ||||||
(2) | Unallocated corporate includes general corporate overhead not allocated to segments. |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(In thousands, except share and per share amounts) | ||||||||
Basic: | ||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Weighted-average common shares | ||||||||
Basic earnings per common share | $ | $ | ||||||
Diluted: | ||||||||
Net Income Attributable to BWX Technologies, Inc. | $ | $ | ||||||
Weighted-average common shares (basic) | ||||||||
Effect of dilutive securities: | ||||||||
Stock options, restricted stock units and performance shares (1) | ||||||||
Adjusted weighted-average common shares | ||||||||
Diluted earnings per common share | $ | $ | ||||||
(1) | At March 31, 2020 and 2019, we excluded |
Item 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
REVENUES: | ||||||||||||
Nuclear Operations Group | $ | 423,775 | $ | 304,801 | $ | 118,974 | ||||||
Nuclear Power Group | 87,917 | 84,399 | 3,518 | |||||||||
Nuclear Services Group | 36,765 | 29,094 | 7,671 | |||||||||
Eliminations | (6,249 | ) | (1,840 | ) | (4,409 | ) | ||||||
$ | 542,208 | $ | 416,454 | $ | 125,754 | |||||||
OPERATING INCOME: | ||||||||||||
Nuclear Operations Group | $ | 90,359 | $ | 57,625 | $ | 32,734 | ||||||
Nuclear Power Group | 8,470 | 12,583 | (4,113 | ) | ||||||||
Nuclear Services Group | 6,400 | 1,571 | 4,829 | |||||||||
Other | (5,359 | ) | (6,096 | ) | 737 | |||||||
$ | 99,870 | $ | 65,683 | $ | 34,187 | |||||||
Unallocated Corporate | (1,603 | ) | (2,039 | ) | 436 | |||||||
Total Operating Income | $ | 98,267 | $ | 63,644 | $ | 34,623 | ||||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 423,775 | $ | 304,801 | $ | 118,974 | ||||||
Operating Income | $ | 90,359 | $ | 57,625 | $ | 32,734 | ||||||
% of Revenues | 21.3% | 18.9% | ||||||||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 87,917 | $ | 84,399 | $ | 3,518 | ||||||
Operating Income | $ | 8,470 | $ | 12,583 | $ | (4,113 | ) | |||||
% of Revenues | 9.6% | 14.9% | ||||||||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
Revenues | $ | 36,765 | $ | 29,094 | $ | 7,671 | ||||||
Operating Income | $ | 6,400 | $ | 1,571 | $ | 4,829 | ||||||
% of Revenues | 17.4% | 5.4% | ||||||||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
Operating Income | $ | (5,359 | ) | $ | (6,096 | ) | $ | 737 | ||||
Three Months Ended March 31, | ||||||||||||
2020 | 2019 | $ Change | ||||||||||
(In thousands) | ||||||||||||
Income before Provision for Income Taxes | $ | 98,448 | $ | 62,877 | $ | 35,571 | ||||||
Provision for Income Taxes | $ | 22,828 | $ | 13,767 | $ | 9,061 | ||||||
Effective Tax Rate | 23.2% | 21.9% | ||||||||||
March 31, 2020 | December 31, 2019 | |||||||
(In approximate millions) | ||||||||
Nuclear Operations Group | $ | 4,282 | $ | 4,515 | ||||
Nuclear Power Group | 778 | 730 | ||||||
Nuclear Services Group | 51 | 43 | ||||||
Total Backlog | $ | 5,111 | $ | 5,288 | ||||
2020 | 2021 | Thereafter | Total | |||||||||||||
(In approximate millions) | ||||||||||||||||
Nuclear Operations Group | $ | 1,116 | $ | 1,043 | $ | 2,123 | $ | 4,282 | ||||||||
Nuclear Power Group | 183 | 183 | 412 | 778 | ||||||||||||
Nuclear Services Group | 34 | 6 | 11 | 51 | ||||||||||||
Total Backlog | $ | 1,333 | $ | 1,232 | $ | 2,546 | $ | 5,111 | ||||||||
March 31, 2020 | December 31, 2019 | |||||||
(In thousands) | ||||||||
Domestic | $ | 70,826 | $ | 76,337 | ||||
Foreign | 22,701 | 29,526 | ||||||
Total | $ | 93,527 | $ | 105,863 | ||||
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
Item 1A. | RISK FACTORS |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total number of shares purchased (1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions) (2) | ||||||||||
January 1, 2020 - January 31, 2020 | 186,639 | $ | 65.41 | 186,639 | $ | 153.1 | ||||||||
February 1, 2020 - February 29, 2020 | 129,796 | $ | 66.16 | 116,001 | $ | 145.3 | ||||||||
March 1, 2020 - March 31, 2020 | 77,173 | $ | 55.47 | — | $ | 145.3 | ||||||||
Total | 393,608 | $ | 63.71 | 302,640 | ||||||||||
(1) | Includes 0, 13,795 and 77,173 shares repurchased during January, February and March, respectively, pursuant to the provisions of employee benefit plans that permit the repurchase of shares to satisfy statutory tax withholding obligations. |
(2) | On November 6, 2018, we announced that our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $250 million during a three-year period that expires on November 6, 2021. |
Item 6. | EXHIBITS |
Exhibit Number | Description | |
3.1 | ||
3.2 | ||
3.3 | ||
10.1 | ||
10.2* | ||
10.3* | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
BWX TECHNOLOGIES, INC. | ||||
/s/ David S. Black | ||||
By: | David S. Black | |||
Senior Vice President and Chief Financial Officer | ||||
(Principal Financial Officer and Duly Authorized | ||||
Representative) | ||||
/s/ Jason S. Kerr | ||||
By: | Jason S. Kerr | |||
Vice President and Chief Accounting Officer | ||||
(Principal Accounting Officer and Duly Authorized | ||||
Representative) | ||||
May 4, 2020 | ||||
· | a percentage of the Initial Performance RSUs shall become vested on the third anniversary of the Date of Grant, provided you are still employed by BWXT (with the number in which you vest |
· | if you terminate employment on or after the first anniversary of the Date of Grant but prior to the third anniversary of the Date of Grant due to Retirement or an involuntary termination by BWXT without Cause (in each case as defined below), you will be eligible to vest in a number of Performance RSUs equal to the product of (a) the number of Performance RSUs that would have vested if you would have remained in the continuous employ of BWXT until the third anniversary of the Date of Grant or the occurrence of a Change in Control (whichever occurs first) multiplied by (b) a fraction, the numerator of which is the number of calendar days you are employed by BWXT during the Performance Period, and the denominator of which is the total number of calendar days in the Performance Period; |
· | 100% of the Initial Performance RSUs shall become vested prior to the third anniversary of the Date of Grant on the earliest to occur of: (a) the date of termination of your employment from BWXT due to death, (b) your Disability, or (c) the date of a Change in Control; and |
· | the Committee may provide for additional vesting under other circumstances, in its sole discretion. |
Net Income | = | Pre-tax Income - Tax Expense |
Invested Capital | Total Assets - Current Liabilities | |
Diluted EPS | = | Net Income to Common Shareholders + Net Income Impact of Dilutive Securities |
WACSO assuming all Dilutive Securities are converted to Common Stock | ||
1. | Nature of Grant. In accepting the grant of Performance RSUs, you acknowledge that: |
· | the Plan is established voluntarily by BWXT, is discretionary in nature and may be modified, amended, suspended or terminated by BWXT at any time; |
· | the grant of the Performance RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of Performance RSUs, or benefits in lieu of Performance RSUs, even if Performance RSUs have been granted repeatedly in the past; |
· | all decisions with respect to future Performance RSUs grants, if any, will be at the sole discretion of BWXT; |
· | you are voluntarily participating in the Plan; |
· | the Performance RSUs and the Shares subject to the Performance RSUs are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to BWXT or the Employer, and which is outside the scope of your employment contract, if any; |
· | the Performance RSUs and the Shares subject to the Performance RSUs are not intended to replace any pension rights or compensation; |
· | the Performance RSUs and the Shares subject to the Performance RSUs are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for BWXT, the Employer, or any Subsidiary; |
· | the Performance RSUs and your participation in the Plan will not be interpreted to form an employment contract or relationship with BWXT or any Subsidiary; |
· | the future value of the underlying Shares is unknown and cannot be predicted with certainty; |
· | in consideration of the grant of the Performance RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the Performance RSUs resulting from termination of your service with BWXT or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and you irrevocably release BWXT and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, you shall be deemed irrevocably to have waive any entitlement to pursue such claim; |
· | For purposes of the Agreement, the date of occurrence of your termination of employment by BWXT or a Subsidiary is the later of: (a) the date that you actually cease to perform services for BWXT or a Subsidiary, as recorded by BWXT or its Subsidiary, as applicable; and (b) the last day of the period during which you are entitled to notice of termination under applicable minimum employment standards legislation (the “Termination Date”). |
· | the Performance RSUs and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability. |
2. | Data Privacy. You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other award materials by and among, as applicable, the Employer, BWXT, and its Subsidiaries for the exclusive purpose of implementing, administering and managing your participation in the Plan. |
3. | Settlement of Performance RSUs. Section 5 of the Agreement (the “Settlement of Performance RSUs” provision) is hereby amended in its entirety to read as follows: |
5. | Dividend Equivalents Settled in Shares Only. Notwithstanding anything to the contrary in the Plan and/or this Agreement, any vested dividend equivalents will be settled in Shares. |
6. | Performance RSUs Settled in Shares Only. Notwithstanding anything to the contrary in the Plan and/or this Agreement, any Performance RSUs granted to you shall be paid in Shares only and do not provide any right to receive a cash payment. |
7. | Form of Payment. Due to legal restrictions in Canada and notwithstanding any language to the contrary in the Plan, you are prohibited from surrendering Shares that you already own or from attesting to the ownership of Shares to pay any tax withholding in connection with Performance RSUs granted to you. |
1. | Additional Restrictions on Resale. In addition to the restrictions on resale and transfer noted in Plan materials, securities purchased under the Plan may be subject to certain restrictions on resale imposed by Canadian provincial securities laws. You are encouraged to seek legal advice prior to any resale of such securities. In general, participants resident in Canada may resell their securities in transactions carried out on exchanges outside of Canada and, in particular, you are generally permitted to sell Shares acquired pursuant to the Plan through the designated broker appointed under the Plan, if any, provided that BWXT is a foreign issuer that is not public in Canada and the sale of the Shares acquired pursuant to the Plan takes place: (i) through an exchange, or a market, outside of Canada on the distribution date; or (ii) to a person or company outside of Canada. For purposes hereof, a foreign issuer is an issuer that: (a) is not incorporated or existing pursuant to the laws of Canada or any jurisdiction of Canada; (b) does not have its head office in Canada; and (c) does not have a majority of its executive officers or directors ordinarily resident in Canada. |
2. | Tax Reporting. The Tax Act and the regulations thereunder require a Canadian resident individual (among others) to file an information return disclosing prescribed information where, at any time in a tax year, the total cost amount of such individual’s “specified foreign property” (which includes shares, options, restricted stock units, and performance-based restricted stock units) exceeds Cdn.$100,000. You should consult your own tax advisor regarding this reporting requirement. |
· | in one-third (1/3) increments on the first, second and third anniversaries of the Date of Grant (the date of each, an “Anniversary Date”); |
· | if you Retire on or after the first anniversary of the Date of Grant and prior to the second anniversary of the Date of Grant, in one-half (1/2) increments of the then-outstanding and unvested RSUs on the second and third anniversaries of the Date of Grant; |
· | if you Retire on or after the second anniversary of the Date of Grant and prior to the third anniversary of the Date of Grant, 100% of the then-outstanding and unvested RSUs on the third anniversary of the Date of Grant; |
· | 100% of the then-outstanding and unvested RSUs on the earliest of the following to occur prior to the third anniversary of the Date of Grant: (a) your death, (b) your Disability or (c) the date of a Change in Control; and |
· | the Committee may provide for additional vesting under other circumstances, in its sole discretion. |
· | the occurrence of a Change in Control, unless such Change in Control does not constitute a “change in control” for purposes of Section 409A(a)(2)(A)(v) of the Code; |
· | your death; or |
· | your Disability. |
· | the Plan is established voluntarily by BWXT, is discretionary in nature and may be modified, amended, suspended or terminated by BWXT at any time; |
· | the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted repeatedly in the past; |
· | all decisions with respect to future RSUs grants, if any, will be at the sole discretion of BWXT; |
· | you are voluntarily participating in the Plan; |
· | the RSUs and the Shares subject to the RSUs are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to BWXT or the Employer, and which is outside the scope of your employment contract, if any; |
· | the RSUs and the Shares subject to the RSUs are not intended to replace any pension rights or compensation; |
· | the RSUs and the Shares subject to the RSUs are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for BWXT, the Employer, or any Subsidiary; |
· | the RSUs and your participation in the Plan will not be interpreted to form an employment contract or relationship with BWXT or any Subsidiary; |
· | the future value of the underlying Shares is unknown and cannot be predicted with certainty; |
· | in consideration of the grant of the RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of your service with BWXT or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and you irrevocably release BWXT and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, you shall be deemed irrevocably to have waive any entitlement to pursue such claim; |
· | in the event of termination of your service with BWXT (whether or not in breach of local labor laws), your right to vest in the RSUs under the Plan, if any, will terminate effective as of the date that you are no longer actively providing services and will not be extended by any notice period mandated under local law (e.g., active service would not include a period of “garden leave” or similar period pursuant to local law); you hereby waive and release any claims you may have against BWXT, its subsidiaries, affiliates, employees, officers and directors for the termination of any such right to vest during such notice period; the Board/Committee shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of the RSUs; notwithstanding the foregoing, if your service terminates due to certain termination events as described in this Agreement, the RSUs will be fully vested; and |
· | the RSUs and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability. |
2. | Data Privacy. You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Agreement and any other award materials by and among, as applicable, the Employer, BWXT, and its Subsidiaries for the exclusive purpose of implementing, administering and managing your participation in the Plan. |
3. | Settlement of RSUs. Section 4 of the Agreement (the “Settlement of RSUs” provision) is amended in its entirety to read as follows: |
5. | Dividend Equivalents Settled in Shares Only. Notwithstanding anything to the contrary in the Plan and/or this Agreement, any vested dividend equivalents will be settled in Shares. |
6. | RSUs Settled in Shares Only. Notwithstanding anything to the contrary in the Plan and/or this Agreement, any RSUs granted to you shall be paid in Shares only and do not provide any right to receive a cash payment. |
7. | Form of Payment. Due to legal restrictions in Canada and notwithstanding any language to the contrary in the Plan, you are prohibited from surrendering Shares that you already own or from attesting to the ownership of Shares to pay any tax withholding in connection with RSUs granted to you. |
1. | Additional Restrictions on Resale. In addition to the restrictions on resale and transfer noted in Plan materials, securities purchased under the Plan may be subject to certain restrictions on resale imposed by Canadian provincial securities laws. You are encouraged to seek legal advice prior to any resale of such securities. In general, participants resident in Canada may resell their securities in transactions carried out on exchanges outside of Canada and, in particular, you are generally permitted to sell Shares acquired pursuant to the Plan through the designated broker appointed under the Plan, if any, provided that BWXT is a foreign issuer that is not public in Canada and the sale of the Shares acquired pursuant to the Plan takes place: (i) through an exchange, or a market, outside of Canada on the distribution date; or (ii) to a person or company outside of Canada. For purposes hereof, a foreign issuer is an issuer that: (a) is not incorporated or existing pursuant to the laws of Canada or any jurisdiction of Canada; (b) does not have its head office in Canada; and (c) does not have a majority of its executive officers or directors ordinarily resident in Canada. |
2. | Tax Reporting. The Tax Act and the regulations thereunder require a Canadian resident individual (among others) to file an information return disclosing prescribed information where, at any time in a tax year, the total cost amount of such individual’s “specified foreign property” (which includes shares, options, restricted stock units, and performance-based restricted stock units) exceeds Cdn.$100,000. You should consult your own tax advisor regarding this reporting requirement. |
1. | I have reviewed this quarterly report on Form 10-Q of BWX Technologies, Inc. for the quarterly period ended March 31, 2020; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Rex D. Geveden | |
Rex D. Geveden | |
President and Chief Executive Officer | |
1. | I have reviewed this quarterly report on Form 10-Q of BWX Technologies, Inc. for the quarterly period ended March 31, 2020; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ David S. Black | |
David S. Black | |
Senior Vice President and Chief Financial Officer | |
(1) | the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: May 4, 2020 | /s/ Rex D. Geveden | |
Rex D. Geveden | ||
President and Chief Executive Officer | ||
(1) | the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: May 4, 2020 | /s/ David S. Black | |
David S. Black | ||
Senior Vice President and Chief Financial Officer | ||
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
| Basic: | ||
| Net Income Attributable to BWX Technologies, Inc. | $ 75,499 | $ 48,978 |
| Weighted-average common shares (in shares) | 95,412,351 | 95,255,109 |
| Basic earnings per common share (in usd per share) | $ 0.79 | $ 0.51 |
| Diluted: | ||
| Net Income Attributable to BWX Technologies, Inc. | $ 75,499 | $ 48,978 |
| Weighted-average common shares (in shares) | 95,412,351 | 95,255,109 |
| Effect of dilutive securities: | ||
| Stock options, restricted stock units and performance shares (in shares) | 344,021 | 566,245 |
| Adjusted weighted-average common shares (in shares) | 95,756,372 | 95,821,354 |
| Diluted earnings per common share (in usd per share) | $ 0.79 | $ 0.51 |
| Number of shares that would be antidilutive (in shares) | 99,102 | 181,358 |
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Senior Notes | ||
| Fair Values Of Financial Instruments [Line Items] | ||
| Fair value of senior notes | $ 389.5 | $ 423.5 |
| FX Forward Contracts | ||
| Fair Values Of Financial Instruments [Line Items] | ||
| Fair value of foreign currency forward contracts | $ 0.3 | $ (0.8) |
| Senior Notes | ||
| Fair Values Of Financial Instruments [Line Items] | ||
| Stated interest rate on senior notes | 5.375% |
Basis of Presentation and Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 | |||||||||||||
| 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, 2019 (our "2019 10-K"). We have included all adjustments, in the opinion of management, consisting only of normal recurring adjustments, necessary for a fair presentation.
|
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| 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 March 31, 2020 and for the three months ended March 31, 2020. 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.
|
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| Reclassification | We have reclassified certain amounts previously reported to conform to the presentation at March 31, 2020 and for the three months ended March 31, 2020. | ||||||||||||
| Reportable Segments | Reportable Segments We operate in three reportable segments: Nuclear Operations Group, Nuclear Power Group and Nuclear Services Group. Our reportable segments are further described as follows:
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 is also engaged in inspection and maintenance services for the commercial nuclear industry primarily in the U.S. These services include steam generator, heat exchanger and balance of plant inspection and servicing as well as high pressure water lancing, non-destructive examination and the development of customized tooling solutions. This segment also offers complete advanced nuclear fuel and reactor design and engineering, licensing and manufacturing services for new advanced nuclear reactors and other nuclear technologies.
|
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| Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On January 1, 2020, we adopted the update to the Financial Accounting Standards Board ("FASB") Topic Financial Instruments – Credit Losses. This update requires entities to recognize expected credit losses immediately in the financial statements. We considered our customer base, credit loss history and expected loss rate in our evaluation of expected credit losses. The adoption of the provisions in this update did not have an impact on our financial position, results of operations or cash flows. On January 1, 2020, we adopted the update to the FASB Topic Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the accounting for goodwill impairment by eliminating the second step from the goodwill impairment test. Goodwill impairment will now be determined by comparing the fair value of a reporting unit with its carrying amount. The adoption of the provisions in this update did not have an impact on our financial position, results of operations or cash flows.
|
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| 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 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. 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 and certain medical radioisotopes and radiopharmaceuticals 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.
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| 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 the changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period.
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| Cash and Cash Equivalents and Restricted Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents At March 31, 2020, we had restricted cash and cash equivalents totaling $5.9 million, $2.8 million of which was held for future decommissioning of facilities (which is included in Other Assets on our condensed consolidated balance sheets) and $3.1 million of which was held to meet reinsurance reserve requirements of our captive insurer.
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| Inventories | Inventories At March 31, 2020 and December 31, 2019, Other current assets included inventories totaling $11.6 million and $17.1 million, respectively, consisting entirely of raw materials and supplies.
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| 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 to hedge our exposure associated with revenues or costs on our long-term contracts and other transactions that are denominated in currencies other than our operating entities' functional currencies. We do not hold or issue derivative financial instruments for trading or other speculative purposes. We enter into derivative financial instruments primarily as hedges of certain firm purchase and sale commitments denominated in foreign currencies. We record these contracts at fair value on our 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. The gain or loss on a derivative instrument not designated as a hedging instrument is immediately recognized in earnings. Gains and losses on derivative financial instruments that require immediate recognition are included as a component of Other – net on 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 primarily 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.
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Pension Plans and Postretirement Benefits (Tables) |
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| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Periodic Benefit Cost | Components of net periodic benefit cost included in net income were as follows:
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Basis of Presentation and Significant Accounting Policies - Additional Information (Details) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
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Mar. 31, 2020
USD ($)
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Mar. 31, 2019
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Dec. 31, 2019
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| Long Lived Assets Held-for-sale [Line Items] | |||
| Number of reportable segments | segment | 3 | ||
| Number of components supplied to worldwide (more than) | component | 1,300 | ||
| Effective tax rate | 23.20% | 21.90% | |
| Benefits recognized for excess tax benefits related to employee share-based payments | $ 0.7 | $ 1.7 | |
| Gross unrecognized tax benefits | 3.9 | ||
| Restricted cash and cash equivalents | 5.9 | ||
| Total inventories | 11.6 | $ 17.1 | |
| Net gains on foreign exchange forward contracts | 0.8 | ||
| Recognized gain on FX forward contracts not designated as hedges | 5.2 | $ 1.6 | |
| Notional amount of foreign currency forward contracts | 118.2 | ||
| U.S. Commercial Nuclear Inspection and Maintenance Services Business | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
| Long Lived Assets Held-for-sale [Line Items] | |||
| Assets held-for-sale | $ 18.3 | ||
Long-term Debt - Components of Long-term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Less: Amounts due within one year | $ 13,924 | $ 14,711 |
| Long-term debt, gross | 920,191 | 817,448 |
| Less: Deferred debt issuance costs | 8,879 | 8,006 |
| Long-term debt | 911,312 | 809,442 |
| Senior Notes | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, gross, including current maturities | 400,000 | 400,000 |
| Revolving Credit Facility | Line of Credit | ||
| Debt Instrument [Line Items] | ||
| Long-term debt, gross, including current maturities | $ 534,115 | $ 432,159 |
Revenue Recognition - Additional Details (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Revenue from Contract with Customer [Abstract] | ||
| Net favorable changes in estimate that resulted in an increase in revenue | $ 9.6 | $ 4.8 |
| Contracts in progress increase | 32.1 | |
| Revenue recognized from advance billings on contracts | $ 30.2 | $ 33.8 |
Revenue Recognition |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | REVENUE RECOGNITION Disaggregated Revenues Revenues by geographical area and customer type were as follows:
Revenues by timing of transfer of goods or services were as follows:
Revenues by contract type were as follows:
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 revenues and/or costs of contracts. During the three months ended March 31, 2020 and 2019, we recognized net favorable changes in estimates that resulted in increases in revenues of $9.6 million and $4.8 million, respectively. 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 recognized over time. Amounts that are withheld on our fixed-price incentive fee contracts are classified within Retainages. Certain of these amounts require conditions other than the passage of time to be achieved, with the remaining amounts only requiring the passage of 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 three months ended March 31, 2020, our unbilled receivables increased $32.1 million primarily as a result of the timing of milestone billings on certain firm-fixed-price contracts 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.
During the three months ended March 31, 2020 and 2019, we recognized $30.2 million and $33.8 million of revenues that were in Advance billings on contracts at December 31, 2019 and 2018, respectively. 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 March 31, 2020 remaining performance obligations on our contracts with customers, we expect to recognize revenues as follows:
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Fair Value Measurements |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | FAIR VALUE MEASUREMENTS Investments The following is a summary of our investments measured at fair value at March 31, 2020:
The following is a summary of our investments measured at fair value at December 31, 2019:
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 March 31, 2020 and December 31, 2019, we had forward contracts outstanding to purchase or sell foreign currencies, primarily Canadian dollars and Euros, with a total fair value of $0.3 million and $(0.8) 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, including our 5.375% senior notes due 2026 (the "Senior Notes"), 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. At March 31, 2020 and December 31, 2019, the fair value of our Senior Notes was $389.5 million and $423.5 million, respectively. The fair value of our remaining debt instruments approximated their carrying values at March 31, 2020 and December 31, 2019.
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| Label | Element | Value |
|---|---|---|
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,142,000) |
| AOCI Attributable to Parent [Member] | ||
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 77,000 |
| Parent [Member] | ||
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,142,000) |
| Retained Earnings [Member] | ||
| Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,219,000) |
Basis of Presentation and Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment | $ 1,275,334 | $ 1,272,093 |
| Less: Accumulated depreciation | 681,177 | 691,852 |
| Property, Plant and Equipment, Net | 594,157 | 580,241 |
| Land | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment | 9,338 | 8,919 |
| Buildings | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment | 233,544 | 221,462 |
| Machinery and equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment | 761,300 | 775,997 |
| Property under construction | ||
| Property, Plant and Equipment [Line Items] | ||
| Property, Plant and Equipment | $ 271,152 | $ 265,715 |
Long-term Debt |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt | LONG-TERM DEBT Our Long-Term Debt consists of the following:
Maturities of long-term debt subsequent to March 31, 2020 are as follows: 2020 – $10.4 million; 2021 – $13.9 million; 2022 – $13.9 million; 2023 – $215.8 million; 2024 – $0.0 million; 2025 – $280.0 million; and thereafter – $400.0 million. Credit Facility On March 24, 2020, we entered into an Amendment No. 1 to Credit Agreement (the "Amendment"), which amended the Credit Agreement dated May 24, 2018 (the "Credit Facility") with Wells Fargo Bank, N.A., as administrative agent, and the other lenders party thereto. The Credit Facility originally provided for a $500 million senior secured revolving credit facility (the "Revolving Credit Facility"), a $50 million U.S. dollar senior secured term loan A made available to the Company (the "USD Term Loan") and a $250 million (U.S. dollar equivalent) Canadian dollar senior secured term loan A made available to BWXT Canada Ltd. (the "CAD Term Loan" and together with the USD Term Loan, the "Term Loans"). The Amendment, among other things, (1) provided additional commitments to increase the Revolving Credit Facility by $250 million, such that the Revolving Credit Facility is now $750 million; (2) extended the maturity date of the Revolving Credit Facility to March 24, 2025; (3) removed BWXT Canada Ltd. as a borrower under the Revolving Credit Facility; (4) modified the applicable margin for borrowings under the Revolving Credit Facility to be, at the Company's option, either (i) the Eurocurrency rate plus a margin ranging from 1.0% to 1.75% per year or (ii) the base rate plus a margin ranging from 0.0% to 0.75% per year, in each case depending on the Company's leverage ratio; (5) modified the commitment fee on the unused portion of the Revolving Credit Facility to range from 0.15% to 0.225% per year, depending on the Company's leverage ratio; and (6) modified the letter of credit fee with respect to each financial letter of credit and performance letter of credit issued under the Revolving Credit Facility to range from 1.0% to 1.75% and 0.75% to 1.05% per year, respectively, in each case, depending on the Company's leverage ratio. The Term Loans are scheduled to mature on May 24, 2023, and all obligations under the Revolving Credit Facility are scheduled to mature on March 24, 2025. The proceeds of loans under the Revolving Credit Facility are available for working capital needs, permitted acquisitions and other general corporate purposes. The Credit Facility allows for additional parties to become lenders and, subject to certain conditions, for the increase of the commitments under the Credit Facility, 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 Credit Facility, for the last four full fiscal quarters, plus (2) all voluntary prepayments of the 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 Credit Facility are guaranteed, subject to certain exceptions, by substantially all of the Company's present and future wholly owned domestic restricted subsidiaries. The obligations of BWXT Canada Ltd. under the CAD Term Loan are guaranteed, subject to certain exceptions, by substantially all of the Company's present and future wholly owned Canadian and domestic restricted subsidiaries. The Credit Facility is secured by first-priority liens on certain assets owned by the Company and its subsidiary guarantors (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 Credit Facility requires interest payments on revolving loans on a periodic basis until maturity. We began making quarterly amortization payments on the Term Loans in amounts equal to 1.25% of the initial aggregate principal amount of each loan in the third quarter of 2018. We may prepay all loans under the Credit Facility at any time without premium or penalty (other than customary Eurocurrency breakage costs), subject to notice requirements. The 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 Credit Facility contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales. As of March 31, 2020, we were in compliance with all covenants set forth in the Credit Facility. The Term Loans bear interest at our option at either (1) the Eurocurrency rate plus a margin ranging from 1.25% to 2.0% per year or (2) the base rate or Canadian index rate, as applicable (described in the Credit Facility as the highest of (a) with respect to the base rate only, the federal funds rate plus 0.5%, (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 1.0% per year. Outstanding loans under the Revolving Credit Facility bear interest at our option at either (1) the Eurocurrency rate plus a margin ranging from 1.0% to 1.75% per year or (2) the base rate plus a margin ranging from 0.0% to 0.75% per year. We are charged a commitment fee on the unused portion of the Revolving Credit Facility, and that fee ranges from 0.15% to 0.225% per year. Additionally, we are charged a letter of credit fee of between 1.0% and 1.75% per year with respect to the amount of each financial letter of credit issued under the Credit Facility, and a letter of credit fee of between 0.75% and 1.05% per year with respect to the amount of each performance letter of credit issued under the 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 March 31, 2020, the margin for Eurocurrency rate and base rate or Canadian index rate term loans was 1.375% and 0.375%, respectively, the margin for Eurocurrency rate and base rate revolving loans was 1.25% and 0.25%, respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.25% and 0.825%, respectively, and the commitment fee for the unused portion of the Revolving Credit Facility was 0.175%. As of March 31, 2020, borrowings outstanding totaled $254.1 million and $280.0 million under the Term Loans and Revolving Credit Facility, respectively, and letters of credit issued under the Revolving Credit Facility totaled $65.7 million. As a result, we had $404.3 million available under the Revolving Credit Facility for borrowings or to meet letter of credit requirements as of March 31, 2020. As of March 31, 2020, the weighted-average interest rate on outstanding borrowings under our Credit Facility was 2.40%. The Credit Facility generally includes customary events of default for a secured credit facility. Under the Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occurs with respect to the Company, 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 Credit Facility, or if we are unable to make any of the representations and warranties in the Credit Facility, we will be unable to borrow funds or have letters of credit issued under the Credit Facility.
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Stock-Based Compensation |
3 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Share-based Payment Arrangement [Abstract] | |
| Stock-Based Compensation | STOCK-BASED COMPENSATION Stock-based compensation recognized for all of our plans for the three months ended March 31, 2020 and 2019 totaled $2.6 million and $3.6 million, respectively, with associated tax benefit totaling $0.4 million and $0.6 million, respectively.
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Long-term Debt - Maturities of long-term debt (Details) $ in Millions |
3 Months Ended |
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Mar. 31, 2020
USD ($)
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| Debt Disclosure [Abstract] | |
| Maturities of long-term debt, 2020 | $ 10.4 |
| Maturities of long-term debt, 2021 | 13.9 |
| Maturities of long-term debt, 2022 | 13.9 |
| Maturities of long-term debt, 2023 | 215.8 |
| Maturities of long-term debt, 2024 | 0.0 |
| Maturities of long-term debt, 2025 | 280.0 |
| Maturities of long-term debt, thereafter | $ 400.0 |
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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| Statement of Stockholders' Equity [Abstract] | ||
| Dividends declared per share (in usd per share) | $ 0.19 | $ 0.17 |
Basis of Presentation and Significant Accounting Policies (Tables) |
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| Property, Plant and Equipment, Net | Property, Plant and Equipment, Net Property, plant and equipment, net is stated at cost and is set forth below:
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| Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents on our condensed consolidated balance sheets to the totals presented on our condensed consolidated statement of cash flows:
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| Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash and cash equivalents on our condensed consolidated balance sheets to the totals presented on our condensed consolidated statement of cash flows:
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| Components of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) The components of Accumulated other comprehensive income (loss) included in Stockholders' Equity are as follows:
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| Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated other comprehensive income (loss) by component and the affected condensed consolidated statements of income line items are as follows:
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Fair Value Measurements (Tables) |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Investments Measured at Fair Value | The following is a summary of our investments measured at fair value at March 31, 2020:
The following is a summary of our investments measured at fair value at December 31, 2019:
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Acquisitions |
3 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Business Combinations [Abstract] | |
| Acquisitions | ACQUISITIONS Laker Energy Products Ltd. On January 2, 2020, our subsidiary BWXT Canada Ltd. acquired Laker Energy Products Ltd. ("Laker Energy Products") for CAD 21.1 million ($16.2 million U.S. dollar equivalent), subject to contingent consideration of up to an additional CAD 12.0 million. Our preliminary purchase price allocation resulted in the recognition of $8.3 million of Property, Plant and Equipment, Net, $6.4 million of Intangible Assets and $3.5 million of Goodwill. In addition, we recognized right of use assets and lease liabilities of $2.7 million. Laker Energy Products is a global supplier of nuclear-grade materials and precisely machined components for CANDU nuclear power utilities and employs approximately 140 personnel. Laker Energy Products is reported as part of our Nuclear Power Group segment.
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Commitments and Contingencies |
3 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES There were no material contingencies during the period covered by this Form 10-Q. For more information regarding commitments and contingencies, refer to Note 10 to the consolidated financial statements in Part II of our 2019 10-K.
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Earnings Per Share |
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| Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share:
(1) At March 31, 2020 and 2019, we excluded 99,102 and 181,358 shares, respectively, from our diluted share calculation as their effect would have been antidilutive.
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Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Contracts with Customers, Asset and Liability [Line Items] | ||
| Advance billings on contracts | $ 80,065 | $ 75,425 |
| Unbilled receivables | ||
| Contracts with Customers, Asset and Liability [Line Items] | ||
| Contract with customer, asset | 397,925 | 365,861 |
| Retainages | ||
| Contracts with Customers, Asset and Liability [Line Items] | ||
| Contract with customer, asset | 62,385 | 46,670 |
| Other Assets | ||
| Contracts with Customers, Asset and Liability [Line Items] | ||
| Contract with customer, asset | $ 1,457 | $ 1,412 |
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Share-based Payment Arrangement [Abstract] | ||
| Stock based compensation expense | $ 2.6 | $ 3.6 |
| Stock-based compensation, tax benefits | $ 0.4 | $ 0.6 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Statement of Comprehensive Income [Abstract] | ||
| Tax provision of unrealized (losses) gains on derivative financial instruments | $ (109) | $ 164 |
| Tax provision (benefit) on reclassification adjustment for (gains) losses on derivative financial instruments | (138) | 49 |
| Tax benefit of amortization of benefit plan costs | (167) | (136) |
| Tax (provision) benefit of unrealized gains (losses) | (2) | (7) |
| Tax provision on reclassification adjustment for gain (loss) on investment | ||
Pension Plans and Postretirement Benefits Pension Plans and Postretirement Benefits - Additional Details (Details) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Retirement Benefits [Abstract] | ||
| Service cost | $ 3.0 | $ 2.6 |
| Net periodic benefit (income) cost, excluding service costs | $ (9.5) | $ (5.2) |
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