10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File No. 001-36876 

BABCOCK & WILCOX ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Delaware	47-2783641
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
1200 East Market Street, Suite 650
Akron, Ohio	44305
(Address of Principal Executive Offices)	(Zip Code)

Registrant's Telephone Number, Including Area Code: (330) 753-4511

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	BW	New York Stock Exchange
8.125% Senior Notes due 2026	BWSN	New York Stock Exchange
7.75% Series A Cumulative Perpetual Preferred Stock	BW PRA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Yes  ☐    No  ☒

The number of shares of the registrant's common stock outstanding at August 6, 2021 was 85,820,578.

1

TABLE OF CONTENTS

		PAGE
Cautionary Statement Concerning Forward-Looking Information		3
PART I - FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements	4
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2021 and 2020 (Unaudited)	5
	Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 (Unaudited)	6
	Condensed Consolidated Statement of Stockholders' (Deficit) Equity for the Three Months Ended March 31 and June 30 of 2021 and 2020 (Unaudited)	7
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 (Unaudited)	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operation	35
	Overview	35
	Results of Operations - Three and Six Months Ended June 30, 2021 and 2020	37
	Liquidity and Capital Resources	44
	Critical Accounting Policies and Estimates	47
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	47
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	48
Item 1A.	Risk Factors	48
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 6.	Exhibits	49
SIGNATURES		51

2

***** Cautionary Statement Concerning Forward-Looking Information *****

This quarterly report, including Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You should not place undue reliance on these statements. Statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature identify forward-looking statements.

These forward-looking statements are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, the impact of COVID-19 on us and the capital markets and global economic climate generally; our recognition of any asset impairments as a result of any decline in the value of our assets or our efforts to dispose of any assets in the future; our ability to obtain and maintain sufficient financing to provide liquidity to meet our business objectives, surety bonds, letters of credit and similar financing; our ability to comply with the requirements of, and to service the indebtedness under, our debt facility agreements; our ability to pay dividends on our 7.75% Series A Cumulative Perpetual Preferred Stock, the highly competitive nature of our businesses and our ability to win work, including identified project opportunities in our pipeline; general economic and business conditions, including changes in interest rates and currency exchange rates; cancellations of and adjustments to backlog and the resulting impact from using backlog as an indicator of future earnings; our ability to perform contracts on time and on budget, in accordance with the schedules and terms established by the applicable contracts with customers; failure by third-party subcontractors, partners or suppliers to perform their obligations on time and as specified; our ability to successfully resolve claims by vendors for goods and services provided and claims by customers for items under warranty; our ability to realize anticipated savings and operational benefits from our restructuring plans, and other cost savings initiatives; our ability to successfully address productivity and schedule issues in our B&W Renewable, B&W Environmental and B&W Thermal segments, including the ability to complete our B&W Renewable's European EPC projects and B&W Environmental's U.S. loss projects within the expected time frame and the estimated costs; our ability to successfully partner with third parties to win and execute contracts within our B&W Environmental, B&W Renewable and B&W Thermal segments; changes in our effective tax rate and tax positions, including any limitation on our ability to use our net operating loss carryforwards and other tax assets; our ability to successfully manage research and development projects and costs, including our efforts to successfully develop and commercialize new technologies and products; the operating risks normally incident to our lines of business, including professional liability, product liability, warranty and other claims against us; difficulties we may encounter in obtaining regulatory or other necessary permits or approvals; changes in actuarial assumptions and market fluctuations that affect our net pension liabilities and income; our ability to successfully compete with current and future competitors; our ability to negotiate and maintain good relationships with labor unions; changes in pension and medical expenses associated with our retirement benefit programs; social, political, competitive and economic situations in foreign countries where we do business or seek new business; and the other factors specified and set forth under "Risk Factors" in our periodic reports filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K.

These forward-looking statements are made based upon detailed assumptions and reflect management’s current expectations and beliefs. While we believe that these assumptions underlying the forward-looking statements are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect actual results.

The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law.

3

PART I - FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share amounts)	2021		2020		2021		2020
Revenues	$	202,860	$	135,397	$	371,108	$	283,951
Costs and expenses:
Cost of operations	158,799		102,907		290,184		217,535
Selling, general and administrative expenses	33,704		34,579		74,161		72,187
Advisory fees and settlement costs	4,526		1,989		7,817		6,228
Restructuring activities	2,400		2,392		3,393		4,343
Research and development costs	609		1,231		1,197		2,572
Loss (gain) on asset disposals, net	38		2		(1,966)		(913)
Total costs and expenses	200,076		143,100		374,786		301,952
Operating income (loss)	2,784		(7,703)		(3,678)		(18,001)
Other income (expense):
Interest expense	(8,021)		(15,482)		(22,244)		(37,573)
Interest income	146		223		255		263
Gain (loss) on debt extinguishment	6,530		(6,194)		6,530		(6,194)
(Loss) gain on sale of business	(2,598)		(108)		(2,240)		(108)
Benefit plans, net	5,924		7,450		15,022		14,986
Foreign exchange	1,826		7,112		617		(2,214)
Other – net	96		(2,586)		(182)		(2,792)
Total other income (expense)	3,903		(9,585)		(2,242)		(33,632)
Income (loss) before income tax expense	6,687		(17,288)		(5,920)		(51,633)
Income tax expense	3,546		845		6,382		35
Income (loss) from continuing operations	3,141		(18,133)		(12,302)		(51,668)
(Loss) income from discontinued operations, net of tax	—		(113)		—		1,800
Net income (loss)	3,141		(18,246)		(12,302)		(49,868)
Net (income) loss attributable to non-controlling interest	(15)		142		(36)		238
Net income (loss) attributable to stockholders	3,126		(18,104)		(12,338)		(49,630)
Less: Dividend on Series A preferred stock	1,731		—		1,731		—
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)
Basic earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Basic earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)
Diluted earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Diluted earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)
Shares used in the computation of earnings (loss) per share:
Basic	85,724		46,853		78,589		46,628
Diluted	87,003		46,853		78,589		46,628

See accompanying notes to Condensed Consolidated Financial Statements.

4

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Net income (loss)	$	3,141	$	(18,246)	$	(12,302)	$	(49,868)
Other comprehensive income (loss):
Currency translation adjustments (CTA)	(1,478)		(4,095)		(1,548)		(1,715)
Reclassification of CTA to net loss	—		—		(4,512)		—
Benefit obligations:
Amortization of benefit plan benefits	198		(246)		396		(492)
Other comprehensive loss	(1,280)		(4,341)		(5,664)		(2,207)
Total comprehensive income (loss)	1,861		(22,587)		(17,966)		(52,075)
Comprehensive income attributable to non-controlling interest	(10)		105		(7)		259
Comprehensive income (loss) attributable to stockholders	$	1,851	$	(22,482)	$	(17,973)	$	(51,816)

See accompanying notes to Condensed Consolidated Financial Statements.

5

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amount)	June 30, 2021		December 31, 2020
Cash, cash equivalents and restricted cash	$	143,598	$	67,423
Accounts receivable – trade, net	132,341		128,317
Accounts receivable – other	34,622		35,442
Contracts in progress	63,937		59,308
Inventories	71,003		67,161
Other current assets	15,355		26,421
Current assets held for sale	—		4,728
Total current assets	460,856		388,800
Net property, plant and equipment, and finance lease	83,366		85,078
Goodwill	47,413		47,363
Intangible assets	21,652		23,908
Right-of-use assets	9,399		10,814
Other assets	40,688		24,673
Non-current assets held for sale	1,766		11,156
Total assets	$	665,140	$	591,792
Accounts payable	$	87,541	$	73,481
Accrued employee benefits	13,998		13,906
Advance billings on contracts	53,142		64,002
Accrued warranty expense	16,376		25,399
Operating lease liabilities	3,728		3,995
Other accrued liabilities	60,213		81,744
Loan payable	2,564		—
Current liabilities held for sale	—		8,305
Total current liabilities	237,562		270,832
Senior notes	168,357		—
Last out term loans	—		183,330
Revolving credit facilities	—		164,300
Pension and other accumulated postretirement benefit liabilities	213,042		252,292
Non-current finance lease liabilities	33,237		29,690
Non-current operating lease liabilities	5,888		7,031
Other non-current liabilities	22,773		22,579
Total liabilities	680,859		930,054
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,362 and 0 at June 30, 2021 and December 30, 2020, respectively	74		—
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 85,729 and 54,452 at June 30, 2021 and December 31, 2020, respectively	5,103		4,784
Capital in excess of par value	1,509,697		1,164,436
Treasury stock at cost, 1,313 and 718 shares at June 30, 2021 and December 31, 2020, respectively	(109,301)		(105,990)
Accumulated deficit	(1,364,275)		(1,350,206)
Accumulated other comprehensive loss	(58,054)		(52,390)
Stockholders' deficit attributable to shareholders	(16,756)		(339,366)
Non-controlling interest	1,037		1,104
Total stockholders' deficit	(15,719)		(338,262)
Total liabilities and stockholders' deficit	$	665,140	$	591,792

See accompanying notes to Condensed Consolidated Financial Statements.

6

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) EQUITY

	Common Stock			Preferred Stock			Capital In Excess of Par Value		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive Loss		Non-controlling Interest		Total Stockholders’ Deficit
	Shares	Par  Value		Shares	Par  Value
		(in thousands, except share and per share amounts)
Balance at December 31, 2020	54,452	$	4,784	—	$	—	$	1,164,436	$	(105,990)	$	(1,350,206)	$	(52,390)	$	1,104	$	(338,262)
Net (loss) income	—	—		—	—		—		—		(15,464)		—		21		(15,443)
Currency translation adjustments	—	—		—	—		—		—		—		(4,582)		(24)		(4,606)
Defined benefit obligations	—	—		—	—		—		—		—		198		—		198
Stock-based compensation charges	1,725	22		—	—		4,480		(3,308)		—		—		—		1,194
Common stock offering, net	29,487	295		—	—		161,218		—		—		—		—		161,513
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(38)		(38)
Balance at March 31, 2021	85,664	$	5,101	—	$	—	$	1,330,134	$	(109,298)	$	(1,365,670)	$	(56,774)	$	1,063	$	(195,444)
Net income	—	—		—	—		—		—		3,126		—		15		3,141
Currency translation adjustments	—	—		—	—		—		—		—		(1,478)		(5)		(1,483)
Defined benefit obligations	—	—		—	—		—		—		—		198		—		198
Stock-based compensation charges	65	2		—	—		1,201		(3)		—		—		—		1,200
Common stock offering	—	—		—	—		(529)		—		—		—		—		(529)
Preferred stock offering, net	—	—		4,445	45		105,998		—		—		—		—		106,043
Equitized Last Out Term Loan principal payment	—	—		2,917	29		72,893		—		—		—		—		72,922
Dividends to preferred stockholders	—	—		—	—		—		—		(1,731)		—		—		(1,731)
Dividends to non-controlling interest	—	—		—	—		—		—		—		—		(36)		(36)
Balance at June 30, 2021	85,729	$	5,103	7,362	$	74	$	1,509,697	$	(109,301)	$	(1,364,275)	$	(58,054)	$	1,037	$	(15,719)

7

	Common Stock			Capital In Excess of Par Value		Treasury Stock		Accumulated Deficit		Accumulated Other Comprehensive Income		Non-controlling Interest		Total Stockholders’ Deficit
	Shares	Par Value
		(in thousands, except share and per share amounts)
Balance at December 31, 2019	46,374	$	4,699	$	1,142,614	$	(105,707)	$	(1,339,888)	$	1,926	$	1,417	$	(294,939)
Net loss	—	—		—		—		(31,526)		—		(96)		(31,622)
Currency translation adjustments	—	—		—		—		—		2,380		(58)		2,322
Defined benefit obligations	—	—		—		—		—		(246)		—		(246)
Stock-based compensation charges	33	4		876		(9)		—		—		—		871
Dividends to non-controlling interest	—	—		—		—		—		—		(36)		(36)
Balance at March 31, 2020	46,407	$	4,703	$	1,143,490	$	(105,716)	$	(1,371,414)	$	4,060	$	1,227	$	(323,650)
Net loss	—	—		—		—		(18,104)		—		(142)		(18,246)
Currency translation adjustments	—	—		—		—		—		(4,095)		37		(4,058)
Defined benefit obligations	—	—		—		—		—		(246)		—		(246)
Stock-based compensation charges	—	—		923		(1)		—		—		—		922
Equitized guarantee fee payment	1,713	17		3,883		—		—		—		—		3,900
Equitized Last Out Term Loan interest payment	1,192	12		2,703		—		—		—		—		2,715
Dividends to non-controlling interest	—	—		—		—		—		—		(37)		(37)
Balance at June 30, 2020	49,312	$	4,732	$	1,150,999	$	(105,717)	$	(1,389,518)	$	(281)	$	1,085	$	(338,700)

See accompanying notes to Condensed Consolidated Financial Statements.

8

BABCOCK & WILCOX ENTERPRISES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six months ended June 30,
(in thousands)	2021		2020
Cash flows from operating activities:
Net loss	$	(12,302)	$	(49,868)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets	8,379		8,239
Amortization of deferred financing costs, debt discount and payment-in-kind interest	6,464		14,785
Amortization of guaranty fee	908		236
Non-cash operating lease expense	2,238		2,403
(Gain) loss on sale of business	2,240		108
(Gain) loss on debt extinguishment	(6,530)		6,194
Gains on asset disposals	(1,966)		(913)
Provision for (benefit from) deferred income taxes, including valuation allowances	2,002		(793)
Prior service cost amortization for pension and postretirement plans	396		(492)
Stock-based compensation, net of associated income taxes	5,705		1,803
Foreign exchange	(617)		2,214
Changes in assets and liabilities:
Accounts receivable	(576)		36,105
Contracts in progress	(5,014)		6,847
Advance billings on contracts	(10,512)		(14,957)
Inventories	(4,821)		(570)
Income taxes	(1,961)		(3,141)
Accounts payable	10,227		(37,347)
Accrued and other current liabilities	(34,717)		15,277
Accrued contract loss	(261)		(4,432)
Pension liabilities, accrued postretirement benefits and employee benefits	(40,339)		(16,946)
Other, net	(5,018)		(14,074)
Net cash used in operating activities	(86,075)		(49,322)
Cash flows from investing activities:
Purchase of property, plant and equipment	(2,168)		(1,675)
Proceeds from sale of business and assets, net	7,170		8,773
Purchases of available-for-sale securities	(6,694)		(13,668)
Sales and maturities of available-for-sale securities	8,303		10,835
Net cash from investing activities	6,611		4,265
Cash flows from financing activities:
Issuance of senior notes, net	138,287		—
Borrowings on loan payable	2,566		—
Borrowings under last out term loans	—		60,000
Repayments under last out term loans	(75,408)		—
Borrowings under U.S. revolving credit facility	14,500		94,200
Repayments of U.S. revolving credit facility	(178,800)		(108,500)
Issuance of preferred stock, net	106,043		—
Payment of preferred stock dividends	(1,731)		—
Shares of common stock returned to treasury stock	(3,311)		(10)
Issuance of common stock, net	160,984		—
Debt issuance costs	(10,933)		(10,356)
Other, net	(908)		326
Net cash from financing activities	151,289		35,660
Effects of exchange rate changes on cash	4,350		572
Net increase (decrease) in cash, cash equivalents and restricted cash	76,175		(8,825)
Cash, cash equivalents and restricted cash, beginning of period	67,423		56,941
Cash, cash equivalents and restricted cash, end of period	$	143,598	$	48,116

See accompanying notes to Condensed Consolidated Financial Statements.

9

BABCOCK & WILCOX ENTERPRISES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2021

NOTE 1 – BASIS OF PRESENTATION

These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report. We have included all adjustments, in the opinion of management, consisting only of normal, recurring adjustments, necessary for a fair presentation of the interim financial statements. We have eliminated all intercompany transactions and accounts. We present the notes to our Condensed Consolidated Financial Statements on the basis of continuing operations, unless otherwise stated.

COVID-19

In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China and subsequently spread globally. This global pandemic has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world. Our business has been, and continues to be, adversely impacted by the measures taken and restrictions imposed in the countries in which we operate and by local governments and others to control the spread of this virus. These measures and restrictions have varied widely and have been subject to significant changes from time to time depending on changes in the severity of the virus in these countries and localities. These restrictions, including curtailment of travel and other activity, negatively impact our ability to conduct business. The volatility and variability of the virus has limited our ability to forecast the impact of the virus on our customers and our business. The continuing resurgence of COVID-19, including new strains such as the delta variant, has resulted in the reimposition of certain restrictions and may lead to other restrictions being implemented in response to efforts to reduce the spread of the virus. These varying and changing events have caused many of the projects we had anticipated would begin in 2020 to be delayed into the second half of 2021 and beyond. Many customers and projects require B&W's employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into the second half of 2021 and beyond. Additionally, out of concern for our employees, even where restrictions permit employees to return to our offices and worksites, we incurred additional costs to protect our employees and advised those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets. The full extent of the COVID-19 impact, including new strains such as the delta variant, that may arise along with the availability of vaccines and anti-vaccination attitudes of the public, that could negatively impact our evaluation on our operational and financial performance will depend on future developments, including the ultimate duration and spread of the pandemic and related actions taken by the U.S. government, state and local government officials, and international governments to prevent disease spread, as well as the availability and effectiveness of COVID-19 vaccinations in the U.S. and abroad, all of which are uncertain, out of our control, and cannot be predicted.

Beginning in April 2020 and continuing as of August 12, 2021, as part of the Company’s response to the impact of the COVID-19 pandemic on its business, the Company continues to take a number of cash conservation and cost reduction measures which include:

•suspension of our 401(k) company match for U.S. employees;

•utilizing options for government loans and programs in the U.S. and abroad that are appropriate and available; and

•deferring $20.9 million of the estimated Pension Plan contribution payments of $45.6 million that would have been due during 2021, in accordance with the American Rescue Plan Act of 2021 (the “ARPA relief plan”) signed into law in March 2021. In January 2021, we made Pension Plan contributions of $23.1 million, excluding interest.

10

NOTE 2 – EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share of our common stock, net of non-controlling interest and dividends on preferred stock:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share amounts)	2021		2020		2021		2020
Income (loss) from continuing operations attributable to stockholders of common stock	$	1,395	$	(17,991)	$	(14,069)	$	(51,430)
Income (loss) from discontinued operations attributable to stockholders of common stock, net of tax	—		(113)		—		1,800
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)
Weighted average shares used to calculate basic earnings (loss) per share	85,724		46,853		78,589		46,628
Dilutive effect of stock options, restricted stock and performance units	1,279		—		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	87,003		46,853		78,589		46,628
Basic earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Basic earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)
Diluted earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Diluted earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)

Because we incurred a net loss in the six months ended June 30, 2021 and in the three and six months ended June 30, 2020, basic and diluted shares are the same.

If we had net income in the six months ended June 30, 2021, diluted shares would include an additional 1.4 million shares. If we had net income in the three and six months ended June 30, 2020, diluted shares would include an additional 33.3 thousand and 216.1 thousand shares, respectively.

We excluded 0.3 million and 1.5 million shares related to stock options from the diluted share calculation for the three months ended June 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive. We excluded 0.4 million and 1.7 million shares related to stock options from the diluted share calculation for the six months ended June 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive.

NOTE 3 – SEGMENT REPORTING

B&W’s innovative products and services are organized into three market-facing segments which changed in the third quarter of 2020 as part of the Company's strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders improved visibility into our renewable and environmental growth platforms. Segment results for all periods have been restated for comparative purposes. Our reportable segments are as follows:

•Babcock & Wilcox Renewable: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass energy and black liquor systems for the pulp and paper

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industry. B&W’s leading technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications around the world. B&W’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.

•Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. B&W has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

Total revenues exclude revenues generated from sales to other segments. An analysis of our operations by segment is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Revenues:
B&W Renewable segment
B&W Renewable	$	24,701	$	27,066	$	42,698	$	49,404
Vølund	13,643		16,443		24,457		30,104
	38,344		43,509		67,155		79,508
B&W Environmental segment
B&W Environmental	10,995		10,513		28,428		23,448
SPIG	13,194		10,850		24,378		22,187
GMAB	4,169		3,809		6,712		5,457
	28,358		25,172		59,518		51,092
B&W Thermal segment
B&W Thermal	136,316		67,212		244,597		153,895
	136,316		67,212		244,597		153,895
Other	(158)		(496)		(162)		(544)
Total Revenues	$	202,860	$	135,397	$	371,108	$	283,951

The presentation of the components of our adjusted EBITDA in the table below is consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management are not allocated to the segments.

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Adjusted EBITDA for each segment is presented below with a reconciliation to net income (loss) attributable to stockholders of common stock.

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Adjusted EBITDA (1)
B&W Renewable segment	$	3,427	$	(138)	$	3,631	$	(1,572)
B&W Environmental segment	2,698		(1,146)		3,799		(769)
B&W Thermal segment	12,431		8,018		22,861		15,592
Corporate	(2,997)		(3,805)		(5,682)		(7,948)
Research and development costs	(485)		(1,231)		(1,073)		(2,572)
	15,074		1,698		23,536		2,731
Restructuring activities	(2,400)		(2,392)		(3,393)		(4,343)
Financial advisory services	(1,299)		(582)		(2,232)		(1,511)
Advisory fees for settlement costs and liquidity planning	(2,059)		(1,155)		(4,037)		(3,769)
Litigation legal costs	(1,167)		(252)		(1,547)		(948)
Stock compensation	(51)		(1,187)		(7,880)		(1,899)
Interest on letters of credit included in cost of operations	(320)		(172)		(606)		(399)
Income (loss) from business held for sale	—		470		(483)		(318)
Depreciation & amortization	(4,321)		(4,032)		(8,379)		(8,240)
Contract asset amortization	(73)		—		(73)		—
ClimateBrightTM product development	(263)		—		(263)		—
Gain (loss) from a non-strategic business	(299)		(97)		(287)		(218)
Gain (loss) on asset disposals, net	(38)		(2)		1,966		913
Operating income (loss)	2,784		(7,703)		(3,678)		(18,001)
Interest expense, net	(7,875)		(15,259)		(21,989)		(37,310)
Gain (loss) on debt extinguishment	6,530		(6,194)		6,530		(6,194)
(Loss) gain on sale of business	(2,598)		(108)		(2,240)		(108)
Net pension benefit	5,924		7,450		15,022		14,986
Foreign exchange	1,826		7,112		617		(2,214)
Other – net	96		(2,586)		(182)		(2,792)
Total other income (expense)	3,903		(9,585)		(2,242)		(33,632)
Income (loss) before income tax expense	6,687		(17,288)		(5,920)		(51,633)
Income tax expense	3,546		845		6,382		35
Income (loss) from continuing operations	3,141		(18,133)		(12,302)		(51,668)
(Loss) income from discontinued operations, net of tax	—		(113)		—		1,800
Net income (loss)	3,141		(18,246)		(12,302)		(49,868)
Net (income) loss attributable to non-controlling interest	(15)		142		(36)		238
Net income (loss) attributable to stockholders	3,126		(18,104)		(12,338)		(49,630)
Less: Dividend on Series A preferred stock	1,731		—		1,731		—
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)

(1) Adjusted EBITDA for the three and six months ended June 30, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total $0.1 million and $0.2 million, respectively, and $0.2 million and $0.4 million, respectively.

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We do not separately identify or report our assets by segment as our chief operating decision maker does not consider assets by segment to be a critical measure by which performance is measured.

NOTE 4 – REVENUE RECOGNITION AND CONTRACTS

Revenue Recognition

A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Revenue from goods and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for 18% and 31% for the three months ended June 30, 2021 and 2020, respectively, and 22% and 31% of our revenue for the six months ended June 30, 2021 and 2020, respectively. Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for 82% and 69% for the three months ended June 30, 2021 and 2020, respectively, and 78% and 69% of our revenue for the six months ended June 30, 2021 and 2020, respectively.

Refer to Note 3 for our disaggregation of revenue by product line.

Contract Balances

The following represents the components of our contracts in progress and advance billings on contracts included in our Condensed Consolidated Balance Sheets:

(in thousands)	June 30, 2021		December 31, 2020		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	25,766	$	25,888	$	(122)	—	%
Revenues recognized less billings to customers	38,171		33,420		4,751		14	%
Contracts in progress	$	63,937	$	59,308	$	4,629	8	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	51,361	$	61,884	$	(10,523)	(17)	%
Costs of revenue recognized less cost incurred	1,781		2,118		(337)		(16)	%
Advance billings on contracts	$	53,142	$	64,002	$	(10,860)	(17)	%
Net contract balance	$	10,795	$	(4,694)	$	15,489	(330)	%
Accrued contract losses	$	321	$	582	$	(261)	(45)	%

Backlog

On June 30, 2021 we had $500.0 million of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 45.2%, 21.2% and 33.6% of our remaining performance obligations as revenue in the remainder of 2021, 2022 and thereafter, respectively.

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Changes in Contract Estimates

In the three and six months ended June 30, 2021 and 2020, we recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Increases in gross profit for changes in estimates for over time contracts	$	2,314	$	4,037	$	5,339	$	7,561
Decreases in gross profit for changes in estimates for over time contracts	(3,137)		(5,102)		(4,495)		(5,288)
Net changes in gross profit for changes in estimates for over time contracts	$	(823)	$	(1,065)	$	844	$	2,273

B&W Renewable EPC Loss Contracts

We had six B&W Renewable EPC contracts for renewable energy facilities in Europe that were loss contracts at December 31, 2017. The scope of these EPC (Engineer, Procure and Construct) contracts extended beyond our core technology, products and services. In addition to these loss contracts, we have one remaining extended scope contract in our Babcock & Wilcox Renewable segment which turned into a loss contract in the fourth quarter of 2019.

Four of the six contracts were 100% complete and the remaining two contracts were nearly 100% complete at June 30, 2021, with only limited warranty obligations remaining, and all have been turned over to the customers. In the three months ended June 30, 2021 and 2020, we recorded $0.0 million and $0.4 million in net losses, respectively, and in the six months ended June 30, 2021 and 2020, we recorded $0.1 million in net gains and $0.3 million in net losses, respectively, inclusive of warranty expense as described in Note 10, resulting from changes in the estimated revenues and costs to complete those contracts. All liquidated damages associated with these six contracts have been settled and paid as of December 31, 2020.

In 2019, one of our other B&W Renewable energy contracts turned into a loss contract due to delays and other start-up costs prior to turnover to the client in October 2019. In the three and six months ended June 30, 2021 our estimated loss on the contract improved by $0.7 million, and in the three and six months ended June 30, 2020, we did not recognize additional charges on this contract. As of June 30, 2021, this contract was approximately 99% complete.

In September 2017, we identified the failure of a structural steel beam on a contact for a biomass plant in the United Kingdom, The engineering, design and manufacturing of the steel structure were the responsibility of our subcontractors. A similar design was also used on two other contracts, and although no structural failure occurred on these two other contracts, work was also stopped in certain restricted areas while we added reinforcement to the structures, which also resulted in delays. The total cost related to the structural steel issues on these three contracts was estimated to be approximately $36 million, which is included in the June 30, 2021 estimated losses at completion for these three contracts. We are continuing to aggressively pursue recovery of this cost from responsible subcontractors. In October 2020, we entered into a settlement agreement with an insurer under which we received a settlement of $26.0 million to settle claims in connection with five of six European B&W Renewable EPC loss contracts disclosed above.

The Company is continuing to pursue other additional potential claims where appropriate and available.

B&W Environmental Loss Contracts

At June 30, 2021, the B&W Environmental segment had two significant loss contracts, each of which are contracts for a dry cooling system for a gas-fired power plant in the United States. In the three and six months ended June 30, 2021 our estimated loss on these contracts improved by $0.4 million and in the three and six months ended June 30, 2020, we did not recognize additional charges on these contracts. As of June 30, 2021, both contracts were nearly 100% complete.

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NOTE 5 – INVENTORIES

The components of inventories are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials and supplies	$	47,482	$	46,659
Work in progress	7,364		8,195
Finished goods	16,157		12,307
Total inventories	$	71,003	$	67,161

NOTE 6 – PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	June 30, 2021		December 31, 2020
Land	$	1,550	$	1,584
Buildings	34,096		34,207
Machinery and equipment	151,352		151,399
Property under construction	2,749		5,336
	189,747		192,526
Less accumulated depreciation	139,850		135,925
Net property, plant and equipment	49,897		56,601
Finance lease	37,142		30,551
Less finance lease accumulated amortization	3,673		2,074
Net property, plant and equipment, and finance lease	$	83,366	$	85,078

NOTE 7 - GOODWILL

The following summarizes the changes in the net carrying amount of goodwill as of June 30, 2021:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2020	$	10,211	$	5,673	$	31,479	$	47,363
Currency translation adjustments	7		4		39		50
Balance at June 30, 2021	$	10,218	$	5,677	$	31,518	$	47,413

Goodwill is tested for impairment annually and when impairment indicators exist. No impairment indicators were identified during the three months ended June 30, 2021. Because the B&W Thermal, B&W Construction Co., LLC, B&W Renewable and B&W Environmental reporting units each had negative carrying values, reasonable changes in assumptions would not indicate impairment.

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NOTE 8 – INTANGIBLE ASSETS

Our intangible assets are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Definite-lived intangible assets
Customer relationships	$	24,110	$	24,862
Unpatented technology	15,489		15,713
Patented technology	3,124		2,642
Tradename	12,879		13,088
All other	9,414		9,262
Gross value of definite-lived intangible assets	65,016		65,567
Customer relationships amortization	(20,047)		(19,537)
Unpatented technology amortization	(7,546)		(6,751)
Patented technology amortization	(2,662)		(2,593)
Tradename amortization	(5,133)		(4,831)
All other amortization	(9,281)		(9,252)
Accumulated amortization	(44,669)		(42,964)
Net definite-lived intangible assets	$	20,347	$	22,603
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	21,652	$	23,908

The following summarizes the changes in the carrying amount of intangible assets:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	23,908	$	25,300
Amortization expense	(1,705)		(1,716)
Currency translation adjustments	(551)		81
Balance at end of the period	$	21,652	$	23,665

Amortization of intangible assets is included in cost of operations and SG&A in our Condensed Consolidated Statement of Operations but is not allocated to segment results.

Estimated future intangible asset amortization expense is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2021	$	1,701
Year ending December 31, 2022	3,409
Year ending December 31, 2023	3,409
Year ending December 31, 2024	3,325
Year ending December 31, 2025	2,559
Year ending December 31, 2026	1,283
Thereafter	4,661

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NOTE 9 – LEASES

Certain real property assets for our Copley, Ohio location were sold on March 15, 2021, as described in Note 24. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033. The lease is classified as a finance lease with total future minimum payments during the initial term of the lease of approximately $5.7 million as of June 30, 2021. An incremental borrowing rate of 7.19% was used to determine the right-of-use (the "ROU") asset. We recorded a $3.6 million ROU asset in net property, plant and equipment, and finance lease and corresponding liabilities of $3.8 million in other accrued liabilities and other non-current finance liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2021.

The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows:

		Three months ended June 30,				Six months ended June 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease expense:
Operating lease expense	Selling, general and administrative expenses	$	1,308	$	1,389	$	2,647	$	2,896
Short-term lease expense	Selling, general and administrative expenses	1,486		292		2,641		480
Variable lease expense (1)	Selling, general and administrative expenses	471		(382)		679		394
Total operating lease expense		$	3,265	$	1,299	$	5,967	$	3,770
Finance lease expense:
Amortization of right-of-use assets	Selling, general and administrative expenses	$	1,069	$	514	$	1,598	$	1,029
Interest on lease liabilities	Interest expense	708		616		1,324		1,231
Total finance lease expense		$	1,777	$	1,130	$	2,922	$	2,260
Sublease income (2)	Other – net	$	(21)	$	(21)	$	(43)	$	(43)
Net lease cost		$	5,021	$	2,408	$	8,846	$	5,987

(1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases.

(2) Sublease income excludes rental income from owned properties, which is not material.

Other information related to leases is as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,674	$	2,743
Operating cash flows from finance leases	1,324		1,231
Financing cash flows from finance leases	834		(399)

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(in thousands)	June 30, 2021			December 31, 2020
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1,281		$	2,629
Finance leases	$	6,589		$	146
Weighted-average remaining lease term:
Operating leases (in years)	2.8			3.1
Finance leases (in years)	12.5			13.9
Weighted-average discount rate:
Operating leases	9.11		%	9.26		%
Finance leases	7.88		%	8.00		%

Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items:

(in thousands)
Assets:	Classification	June 30, 2021		December 31, 2020
Operating lease assets	Right-of-use assets	$	9,399	$	10,814
Finance lease assets	Net property, plant and equipment, and finance lease	33,469		28,477
Total non-current lease assets		$	42,868	$	39,291
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	3,728	$	3,995
Finance lease liabilities	Other accrued liabilities	3,095		886
Non-current
Operating lease liabilities	Non-current operating lease liabilities	5,888		7,031
Finance lease liabilities	Non-current finance lease liabilities	33,237		29,690
Total lease liabilities		$	45,948	$	41,602

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

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NOTE 10 – ACCRUED WARRANTY EXPENSE

We may offer assurance type warranties on products and services we sell. Changes in the carrying amount of our accrued warranty expense are as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	25,399	$	33,376
Additions	3,608		2,063
Expirations and other changes	(4,309)		(1,584)
Payments	(8,576)		(5,410)
Translation and other	254		46
Balance at end of period	$	16,376	$	28,491

We accrue estimated expense included in cost of operations on our Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when we recognize the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty costs is accrued when the contract becomes a loss contract. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows.

NOTE 11 – RESTRUCTURING ACTIVITIES

The Company incurred restructuring charges in the three months ended June 30, 2021 and 2020. The charges primarily consist of severance costs related to actions taken, including as part of the Company’s strategic, market-focused organizational and re-branding initiative. During 2020, these charges also include actions taken to address the impact of COVID-19 on our business.

The following table summarizes the restructuring activity incurred by segment:

	Three months ended June 30,						Three months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	557	$	466	$	91	$	951	$	155	$	796
B&W Environmental segment	209		172		37		237		154		83
B&W Thermal segment	1,542		1,035		507		948		303		645
Corporate	92		8		84		256		—		256
	$	2,400	$	1,681	$	719	$	2,392	$	612	$	1,780

	Six months ended June 30,						Six months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	1,066	$	919	$	147	$	1,752	$	813	$	939
B&W Environmental segment	298		207		91		377		211		166
B&W Thermal segment	1,890		1,047		843		1,889		689		1,200
Corporate	139		8		131		325		—		325
	$	3,393	$	2,181	$	1,212	$	4,343	$	1,713	$	2,630
Cumulative costs to date	$	43,707	35,394		8,313

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

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Restructuring liabilities are included in other accrued liabilities on our Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Balance at beginning of period	$	8,022	$	5,341	$	8,146	$	5,358
Restructuring expense	2,400		2,392		3,393		4,343
Payments	(2,477)		(2,646)		(3,594)		(4,614)
Balance at end of period	$	7,945	$	5,087	$	7,945	$	5,087

The payments shown above for the three months ended June 30, 2021 and 2020 relate primarily to severance. Accrued restructuring liabilities at June 30, 2021 and 2020 relate primarily to employee termination benefits.

NOTE 12 – PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of net periodic benefit cost (benefit) included in net income (loss) are as follows:

	Pension Benefits								Other Benefits
	Three months ended June 30,				Six months ended June 30,				Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020		2021		2020		2021		2020
Interest cost	$	5,609	$	8,250	$	11,280	$	16,511	$	39	$	72	$	78	$	144
Expected return on plan assets	(11,773)		(15,544)		(26,782)		(31,185)		—		—		—		—
Amortization of prior service cost (credit)	28		43		56		86		173		(271)		346		(542)
Benefit plans, net (1)	(6,136)		(7,251)		(15,446)		(14,588)		212		(199)		424		(398)
Service cost included in COS (2)	218		209		435		420		6		4		12		9
Net periodic benefit cost (benefit)	$	(5,918)	$	(7,042)	$	(15,011)	$	(14,168)	$	218	$	(195)	$	436	$	(389)

(1)    Benefit plans, net, which is presented separately in the Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within cost of operations in the Condensed Consolidated Statement of Operations and is allocated to the B&W Thermal segment.

There were no mark-to-market adjustments for our pension and other postretirement benefit plans during the three and six months ended June 30, 2021 and 2020.

We made contributions to our pension and other postretirement benefit plans totaling $0.3 million and $24.3 million during the three and six months ended June 30, 2021, respectively, as compared to $0.6 million and $1.1 million during the three and six months ended June 30, 2020, respectively. Contributions made during the three months ended June 30, 2021 includes no interest and during the six months ended June 30, 2021 includes $0.4 million of interest as required per the CARES Act that was signed into law on March 27, 2020.

In accordance with the American Rescue Plan Act of 2021, we elected to defer $20.9 million of the estimated Pension Plan contribution payments of $45.6 million that would have been due during 2021.

NOTE 13 – 2021 SENIOR NOTES OFFERING

On February 12, 2021, we completed a public offering of $125.0 million aggregate principal amount of our 8.125% senior notes due 2026. At the completion of the offering, we received net proceeds of approximately $120.0 million after deducting underwriting discounts, commissions, and before expenses.

In addition to the public offering, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Last Out Term Loan Tranche A-3 in a concurrent private offering.

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On March 31, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell to or through B. Riley Securities, Inc., from time to time, additional Senior Notes up to an aggregate principal amount of $150.0 million of Senior Notes. The Senior Notes have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Senior Notes issued February 12, 2021, as described above.

As of June 30, 2021, the Company has sold $12.9 million aggregate principal amount of Senior Notes under the sales agreement disclosed above for $13.1 million of net proceeds after commissions and fees.

Subsequent to June 30, 2021 and as of August 12, 2021, the Company has sold $12.7 million aggregate principal amount of Senior Notes under the March 31, 2021 sales agreement disclosed above for $12.9 million of net proceeds after commission and fees.

The components of the Senior Notes are as follows:

(in thousands)	June 30, 2021
8.125% Senior Notes due 2026	$	172,882
Unamortized deferred financing costs	(4,913)
Unamortized premium	388
Net debt balance	$	168,357

The Senior Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other existing and future senior unsecured and unsubordinated indebtedness. The Senior Notes bear interest at the rate of 8.125% per annum. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on April 30, 2021. The Senior Notes mature on February 28, 2026.

NOTE 14 – LAST OUT TERM LOANS

Effective with the new debt facilities the Company entered into on June 30, 2021, as described in Note 15 below, the Company has no remaining Last Out Term Loans and no further borrowings thereunder are available. At December 31, 2020, the components of our Last Out Term Loans by tranche were as follows:

	December 31, 2020
(in thousands)	A-3		A-4		A-6		Total
Proceeds (1)	$	101,660	$	30,000	$	40,000	$	171,660
Discount and fees	8,650		—		—		8,650
Paid-in-kind interest	3,020		—		—		3,020
Net debt balance	$	113,330	$	30,000	$	40,000	$	183,330

(1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment from the July 2019 Equitization Transactions.

On February 12, 2021, in connection with the Exchange described in Note 13, the interest rate on the remaining Last Out Term Loans were reduced to 6.625% from 12.0%. Interest expense associated with the Last Out Term Loans is detailed in Note 18. The Company recognized a loss on debt extinguishment of $6.2 million in the quarter ended June 30, 2020, primarily representing the unamortized value of the original issuance discount and fees on the Tranche A-3 Last Out Term Loan.

Tranche A-3

On March 4, 2021, we paid down an additional $40.0 million on our existing Tranche A-3. Also, as described in Note 16, on June 1, 2021, we issued 2,916,880 shares of the Company’s 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Tranche A-3 and paid $0.9 million in cash for accrued interest.

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Tranche A-4

On January 31, 2020, we borrowed $30.0 million face value of the Tranche A-4 from B. Riley, a related party and received net proceeds of $26.3 million after incurring total fees of $3.7 million. On March 4, 2021, we paid down the $30.0 million outstanding on our existing Tranche A-4.

Tranche A-6

On May 14, 2020, we borrowed $30.0 million face value of the Tranche A-6 from B. Riley, a related party, as described in Note 15. On November 30, 2020, we borrowed an additional $10.0 million face value of the Tranche A-6 pursuant to the terms of the A&R Credit Agreement which required the proceeds to be applied as a permanent reduction of the U.S. Revolving Credit Facility.

As described in Note 13, on February 12, 2021, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Tranche A-6 as part of the Exchange. Also, on March 4, 2021, we paid down the remaining $5.0 million outstanding on our existing Tranche A-6.

NOTE 15 – REVOLVING DEBT

Debt Facilities

On June 30, 2021, we entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) with PNC Bank, National Association, as administrative agent (“PNC”) and a letter of credit agreement (the “Letter of Credit Agreement”) with PNC, pursuant to which PNC has agreed to issue up to $110 million in letters of credit that is secured in part by cash collateral provided by an affiliate of MSD Partners, MSD PCOF Partners XLV, LLC (“MSD”), as well as a reimbursement, guaranty and security agreement with MSD, as administrative agent, and the cash collateral providers from time to time party thereto, along with certain of our subsidiaries as guarantors, pursuant to which we are obligated to reimburse MSD and any other cash collateral provider to the extent the cash collateral provided by MSD and any other cash collateral provider to secure the Letter of Credit Agreement is drawn to satisfy draws on letters of credit (“Reimbursement Agreement” and collectively with the Revolving Credit Agreement and Letter of Credit Agreement, the “Debt Documents” and the facilities thereunder, the “Debt Facilities”). The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. (“B. Riley”), a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as described below. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes, including to backstop certain letters of credit issued under our previous A&R Credit Agreement, dated as of May 14, 2020 (as amended, restated or otherwise modified from time to time), by and among the Company, as borrower, Bank of America, N.A., as administrative agent, the lenders and the other parties from time to time party thereto, which was repaid and commitments thereunder terminated as of June 30, 2021. The Revolving Credit Agreement matures on June 30, 2025.

Each of the Debt Facilities has a maturity date of June 30, 2025. The interest rates applicable under the Revolving Credit Agreement float at a rate per annum equal to either (i) a base rate plus 2.0% or (ii) 1 or 3 month reserve-adjusted LIBOR rate plus 3.0%. The interest rates applicable to the Reimbursement Agreement float at a rate per annum equal to either (i) a base rate plus 6.50% or (ii) 1 or 3 month reserve-adjusted LIBOR plus 7.50%. Under the Letter of Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) the applicable spread over LIBOR on the aggregate face amount of the letters of credit issued under the Revolving Credit Agreement, (ii) administrative fees of 0.75% and (iii) fronting fees of 0.25%. Under each of the Revolving Credit Agreement and the Letter of Credit Agreement, we are required to pay a facility fee equal to 0.375% per annum of the unused portion of the Revolving Credit Agreement or the Letter of Credit Agreement, respectively. The Company is permitted to prepay all or any portion of the loans under the Revolving Credit Agreement prior to maturity without premium or penalty. Prepayments under the Reimbursement Agreement shall be subject to a prepayment fee of 2.25% in the first year after closing, 2.0% in the second year after closing and 1.25% in the third year after closing, with no prepayment fee payable thereafter.

The Company has mandatory prepayment obligations under the Reimbursement Agreement upon the receipt of proceeds from certain dispositions or casualty or condemnation events. The Revolving Credit Agreement and Letter of Credit Agreement require mandatory prepayments to the extent of an over-advance.

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The obligations under the Debt Facilities are secured by substantially all assets of the Company and each of the guarantors, in each case subject to inter-creditor arrangements. As noted above, the obligations under the Letter of Credit Facility are also secured by the cash collateral provided by MSD and any other cash collateral provider thereunder.

The Debt Documents contain certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The Debt Documents require the Company to comply with certain financial maintenance covenants, including a quarterly fixed charge coverage test of not less than 1.00 to 1.00, a quarterly senior net leverage ratio test of not greater than 2.50 to 1.00, a non-guarantor cash repatriation covenant not to exceed $35 million at any one time, a minimum liquidity covenant of at least $30.0 million at all times, and an annual cap on maintenance capital expenditures of $7.5 million. The Debt Documents also contain customary events of default (subject, in certain instances, to specified grace periods) including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal under the respective facility, the failure to comply with certain covenants and agreements specified in the applicable Debt Agreement, defaults in respect of certain other indebtedness, and certain events of insolvency. If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Debt Documents may become due and payable immediately.

In connection with the Company’s entry into the Debt Documents, on June 30, 2021, B. Riley, a related party, entered into a Guaranty Agreement in favor of MSD, in its capacity as administrative agent under the Reimbursement Agreement, for the ratable benefit of MSD, the cash collateral providers and each co-agent or sub-agent appointed by MSD from time to time (the “B. Riley Guaranty”). The B. Riley Guaranty provides for the guarantee of all of the Company’s obligations under the Reimbursement Agreement. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of the Company’s obligations under the Reimbursement Agreement. Under a fee letter with B. Riley, the Company agreed to pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty. The Company entered into a reimbursement agreement with B. Riley governing the Company’s obligation to reimburse B. Riley to the extent the B. Riley Guaranty is called upon by the agent or lenders under the Reimbursement Agreement.

A&R Credit Agreement

As described above, the A&R Credit Agreement commitments were terminated, all loans were repaid and all outstanding and undrawn letters of credit were collateralized on June 30, 2021. The Company recognized a gain on debt extinguishment of $6.5 million in the quarter ended June 30, 2021, primarily representing the write-off of accrued revolver fees of $11.3 million offset by the unamortized deferred financing fees of $4.8 million related to the prior A&R Credit Agreement.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of our subsidiaries primarily outside of the United States have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outstanding outside our prior A&R Credit Agreement as of June 30, 2021 was $57.3 million. The aggregate value of the outstanding letters of credit provided by our prior A&R Credit Agreement backstopping letters of credit or bank guarantees was $22.1 million as of June 30, 2021. Of the outstanding letters of credit issued under our prior A&R Credit Agreement, $32.1 million are subject to foreign currency revaluation. At June 30, 2021, usage under the prior A&R Credit Agreement consisted of $22.0 million of financial letters of credit and $79.7 million of performance letters of credit.

We have also posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should we fail to perform our obligations under the applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue in support of some of our contracting activity. As of June 30, 2021, bonds issued and outstanding under these arrangements in support of contracts totaled approximately $259.3 million. The aggregate value of the letters of credit provided by our prior A&R Credit Agreement backstopping surety bonds was $24.6 million.

Our ability to obtain and maintain sufficient capacity under our new Debt Facilities is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished.

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Other Indebtedness - Loan Payable

During the six months ended June 30, 2021, our Denmark subsidiary received two unsecured interest free loans totaling $2.6 million under a local government loan program related to COVID-19. The loans of $0.9 million and $1.7 million are payable in April 2022 and May 2022, respectively.

Subsequent to June 30, 2021, our Denmark subsidiary received an unsecured interest free loan totaling $0.9 million under a local government loan program related to COVID-19. The loan is payable in May 2023.

NOTE 16 – PREFERRED STOCK

On May 7, 2021, we completed a public offering of our 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) dated May 4, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters (the “Underwriters”). At the closing, we issued to the public 4,000,000 shares of our Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $95.7 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by our Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

On May 26, 2021, we completed the additional sale of 444,700 shares of our Preferred Stock, related to the grant to the underwriters described above, at an offering price of $25.00 per share for net proceeds of approximately $10.7 million after deducting underwriting fees.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon our liquidation, dissolution or winding-up: (1) senior to all classes or series of our common stock and to all other capital stock issued by us expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of our capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of our capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all our existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. We will pay cumulative cash dividends on the Preferred Stock when, as and if declared by our Board of Directors (or a duly authorized committee of our Board of Directors), only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Series A Preferred Stock declared by our Board of Directors (or a duly authorized committee of our Board of Directors) will be payable quarterly in arrears on March 31, June 30, September 30 and December 31, beginning on June 30, 2021.

On June 8, 2021, the Company's Board of Directors approved a dividend of $0.290625 per share of the Company's outstanding Preferred Stock, with a record date for the dividend of June 18, 2021 and a payment date of June 30, 2021. On June 30, 2021, the Company paid dividends totaling $1.7 million. After the Company paid the dividends on June 30, 2021, there are no cumulative undeclared dividends of the Preferred Stock at June 30, 2021.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which we (i) issued B. Riley 2,916,880 shares of our Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of our then existing term loans with B. Riley under the Company’s A&R Credit Agreement.

On July 7, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer and to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock will have the same terms as (other than date of issuance and first dividend) with and have the same CUSIP number and be fungible with, the Preferred Stock issued during May 2021. The first dividend for the Preferred Stock issued thereunder, when, as and if declared, will accumulate and be cumulative from the dividend payment date (March 31, June 30, September 30 and December 31 of each year) for which full cumulative dividends have been paid immediately prior to the original issue date for each such share.

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Subsequent to June 30, 2021 and as of August 12, 2021, the Company sold $5.9 million aggregate amount of Preferred Stock for $5.9 million net proceeds after commission and fees related to the July 7, 2021 sales agreement disclosed above.

The net proceeds of the offerings are intended to be used for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage.

NOTE 17 – COMMON STOCK

On February 12, 2021, we completed a public offering of our common stock pursuant to an underwriting agreement (the “Underwriting Agreement”) dated February 9, 2021, between us and B. Riley Securities, Inc., as representative of the several underwriters (the “Underwriters”). At the closing, we issued to the public 29,487,180 shares of our common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses.

The net proceeds of the offering were used to make a prepayment toward the balance outstanding under our U.S. Revolving Credit Facility and permanently reduce the commitments under our senior secured credit facilities.

On May 20, 2021, at the 2021 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The 2021 Plan became effective upon such stockholder approval. The maximum number of shares of the Company’s common stock (the “Common Stock”) that may be issued or transferred pursuant to awards under the 2021 Plan equals: (1) 1,250,000 shares, plus (2) the number of any shares subject to awards granted under the Company’s Amended and Restated 2015 Long-Term Incentive Plan (the “2015 Plan”) and outstanding as of May 20, 2021 which expire, or are terminated, surrendered, or forfeited for any reason without issuance of such shares (including for outstanding performance share awards to the extent they are earned at less than maximum). No new awards may be granted under the 2015 Plan. As of May 20, 2021 (immediately prior to the stockholder approval of the 2021 Plan), the total number of shares of Common Stock subject to outstanding awards granted under the 2015 Plan was 2,007,152 shares.

NOTE 18 –INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

Interest expense in our Condensed Consolidated Financial Statements consisted of the following components:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Components associated with borrowings from:
Senior Notes	$	3,459	$	—	$	5,192	$	—
Last Out Term Loans	837		4,828		4,349		8,875
U.S. Revolving Credit Facility	—		3,409		1,416		7,448
	4,296		8,237		10,957		16,323
Components associated with amortization or accretion of:
Senior Notes	298		—		1,766		—
Last Out Term Loans - discount and financing fees	—		1,579		—		3,729
U.S. Revolving Credit Facility - deferred financing fees and commitment fees	1,595		3,629		5,995		12,664
U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16	—		2		—		1,660
	1,893		5,210		7,761		18,053
Other interest expense	1,832		2,035		3,526		3,197
Total interest expense	$	8,021	$	15,482	$	22,244	$	37,573

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The following table provides a reconciliation of cash and cash equivalents and restricted cash reporting that sum to the total cash amount in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows:

(in thousands)	June 30, 2021		December 31, 2020		June 30, 2020
Held by foreign entities	$	27,822	$	38,726	$	34,676
Held by U.S. entities	2,238		18,612		2,139
Cash and cash equivalents	30,060		57,338		36,815
Reinsurance reserve requirements	590		4,551		5,596
Restricted foreign accounts	—		2,869		2,661
Bank guarantee collateral	2,240		2,665		3,044
Letters of credit collateral	110,708		—		—
Restricted cash and cash equivalents	113,538		10,085		11,301
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows	$	143,598	$	67,423	$	48,116

As disclosed above, letters of credit collateral of $110.7 million as of June 30, 2021 represents cash pledged to secure the outstanding and undrawn letters of credit issued under our prior A&R Credit Agreement, most of which are expected to be cancelled and replaced by new letters of credit issued by PNC, as described in Note 15 – Revolving Debt. Subsequent to June 30, 2021 and as of August 12, 2021, we have issued $60.7 million of backstop letters of credit issued by PNC and reclassified this amount from restricted cash and cash equivalents to cash and cash equivalents. We expect to issue new PNC letters of credit to the beneficiaries such that the letters of credit issued under the prior A&R Credit Agreement will be cancelled along with the backstop letters of credit issued by PNC. Further, we expect the completion of the issuance of new letters of credit to cover the remaining collateral balance of $50.0 million by PNC by September 30, 2021 which will alleviate any restricted use of the letters of credit collateral amount by the Company.

The following cash activity is presented as a supplement to our Condensed Consolidated Statements of Cash Flows and is included in Net cash used in activities:

	Six months ended June 30,
(in thousands)	2021		2020
Income tax payments, net	$	3,331	$	1,438
Interest payments on our 8.125% Senior Notes due 2026	$	2,911	$	—
Interest payments on our U.S. Revolving Credit Facility	5,979		8,110
Interest payments on our Last Out Term Loans	6,140		6,140
Total cash paid for interest	$	15,030	$	14,250

NOTE 19 – PROVISION FOR INCOME TAXES

In the three months ended June 30, 2021, income tax expense was $3.5 million, resulting in an effective tax rate of 53.0%. In the three months ended June 30, 2020, income tax expense was $0.8 million, with an effective tax rate of (4.9)%.

In the six months ended June 30, 2021, income tax expense was $6.4 million, resulting in an effective tax rate of (107.8)%. In the six months ended June 30, 2020, income tax expense was $35.0 thousand, resulting in an effective tax rate of (0.1)%.

Our effective tax rate for the three and six months ended June 30, 2021 and 2020 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets and discrete items. We have unfavorable discrete items of`$0.9 million and $3.5 million for the three and six months ended June 30, 2021, respectively, which primarily represent withholding taxes and adjustment to our United Kingdom deferred tax liabilities due to an enacted change in tax rate. We had favorable discrete items of $1.8 million and $1.3 million for the three and six months ended June 30, 2020, respectively.

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We are subject to federal income tax in the United States and numerous countries that have statutory tax rates different than the United States federal statutory rate of 21%. The most significant of these foreign operations are located in Canada, Denmark, Germany, Italy, Mexico, Sweden, and the United Kingdom, with effective tax rates ranging between approximately 19% and 30%. We provide for income taxes based on the tax laws and rates in the jurisdictions where we conduct operations. These jurisdictions may have regimes of taxation that vary in both nominal rates and the basis on which these rates are applied. Our consolidated effective income tax rate can vary from period to period due to these variations, changes in jurisdictional mix of our income, and valuation allowances.

NOTE 20 – CONTINGENCIES

Litigation Relating to Boiler Installation and Supply Contract

On December 27, 2019, a complaint was filed against Babcock & Wilcox by P.H. Glatfelter Company (“Glatfelter”) in the United States District Court for the Middle District of Pennsylvania, Case No. 1:19-cv-02215-JPW, alleging claims of breach of contract, fraud, negligent misrepresentation, promissory estoppel and unjust enrichment (the “Glatfelter Litigation”). The complaint alleges damages in excess of $58.9 million. On March 16, 2020 we filed a motion to dismiss, and on December 14, 2020 the court issued its order dismissing the fraud and negligent misrepresentation claims and finding that, in the event that parties’ contract is found to be valid, Plaintiffs’ claims for damages will be subject to the contractual cap on liability (defined as the $11.7 million purchase price subject to certain adjustments). On January 11, 2021, we filed our answer and a counterclaim for breach of contract, seeking damages in excess of $2.9 million. We intend to continue to vigorously litigate the action. However, given the preliminary stage of the litigation, it is too early to determine if the outcome of the Glatfelter Litigation will have a material adverse impact on our condensed consolidated financial condition, results of operations or cash flows.

SEC Investigation

The U.S. SEC is conducting a formal investigation of the Company, focusing on the accounting charges and related matters involving the Company's B&W Renewable segment from 2015-2019. The SEC has served multiple subpoenas on the Company for documents. The Company is cooperating with the SEC related to the subpoenas and investigation. The SEC has taken testimony from past and current officers, directors, and employees in addition to also seeking testimony from certain third-parties. It is reasonably possible that the SEC may bring one or more claims against the Company and certain individuals. Due to the stage of the investigation, we are unable to estimate the amount of loss or range of potential loss of any claim. However, there can be no assurance that such claims will not have a material impact on the Company.

Stockholder Derivative and Class Action Litigation

On April 14, 2020, a putative B&W stockholder (“Plaintiff”) filed a derivative and class action complaint against certain of the Company’s directors (current and former), executives and significant stockholders (“Defendants”) and the Company (as a nominal defendant). The action was filed in the Delaware Court of Chancery and is captioned Parker v. Avril, et al., C.A. No. 2020-0280-PAF ("Stockholder Litigation"). Plaintiff alleges that Defendants, among other things, did not properly discharge their fiduciary duties in connection with the 2019 rights offering and related transactions. The case is currently in discovery. We believe that the outcome of the Stockholder Litigation will not have a material adverse impact on our condensed consolidated financial condition, results of operations or cash flows, net of any insurance coverage.

Other

Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities, including, among other things: performance or warranty-related matters under our customer and supplier contracts and other business arrangements; and workers' compensation, premises liability and other claims. Based on our prior experience, we do not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on our condensed consolidated financial condition, results of operations or cash flows.

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NOTE 21 – COMPREHENSIVE INCOME

Gains and losses deferred in accumulated other comprehensive income (loss) ("AOCI") are generally reclassified and recognized in the Condensed Consolidated Statements of Operations once they are realized. The changes in the components of AOCI, net of tax, for the first two quarters of 2021 and 2020 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net income (loss)	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)

(in thousands)	Currency translation gain		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2019	$	5,743	$	(3,817)	$	1,926
Other comprehensive income before reclassifications	2,380		—		2,380
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive income (loss)	2,380		(246)		2,134
Balance at March 31, 2020	$	8,123	$	(4,063)	$	4,060
Other comprehensive loss before reclassifications	(4,095)		—		(4,095)
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive loss	(4,095)		(246)		(4,341)
Balance at June 30, 2020	$	4,028	$	(4,309)	$	(281)

The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three months ended June 30,				Six months ended June 30,
		2021		2020		2021		2020
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	4,512	$	—
Amortization of prior service cost on benefit obligations	Benefit plans, net	(198)		246		(396)		492
	Net (loss) income	$	(198)	$	246	$	4,116	$	492

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NOTE 22 – FAIR VALUE MEASUREMENTS

The following tables summarize our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	June 30, 2021		Level 1		Level 2
Corporate notes and bonds	$	7,919	$	7,919	$	—
Mutual funds	678		—		678
United States Government and agency securities	5,144		5,144		—
Total fair value of available-for-sale securities	$	13,741	$	13,063	$	678

(in thousands)
Available-for-sale securities	December 31, 2020		Level 1		Level 2
Corporate notes and bonds	$	6,139	$	6,139	$	—
Mutual funds	636		—		636
Corporate Stocks	4,168		4,168		—
United States Government and agency securities	4,365		4,365		—
Total fair value of available-for-sale securities	$	15,308	$	14,672	$	636

Available-For-Sale Securities

Our investments in available-for-sale securities are presented in other assets on our Condensed Consolidated Balance Sheets with contractual maturities ranging from 0-5 years.

Senior Notes

See Note 13 above for a discussion of our recent offerings of Senior Notes. The fair value of the Senior Notes is based on readily available quoted market prices as of June 30, 2021.

(in thousands)	June 30, 2021
Senior Notes	Carrying Value		Estimated Fair Value
8.125% Senior Notes due 2026 ('BWSN')	$	172,882	$	179,105

Other Financial Instruments

We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments:

•Cash and cash equivalents and restricted cash and cash equivalents. The carrying amounts that we have reported in the accompanying Condensed Consolidated Balance Sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature.

•Last Out Term Loans and Revolving Debt. We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on Level 2 inputs such as the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our Last Out Term Loans and Revolving Debt approximated their carrying value at December 31, 2020.

•Warrants. The fair value of the warrants was established using the Black-Scholes option pricing model value approach.

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NOTE 23 – RELATED PARTY TRANSACTIONS

Transactions with B. Riley

Based on its Schedule 13D filings, B. Riley beneficially owns 33.1% of our outstanding common stock as of June 30, 2021.

B. Riley was party to the Last Out Term Loans under our A&R Credit Agreement described in Note 14.

We entered into an agreement with BRPI Executive Consulting, LLC, an affiliate of B. Riley, on November 19, 2018 and amended the agreement on November 9, 2020 to retain the services of Mr. Kenny Young, to serve as our Chief Executive Officer until December 31, 2023, unless terminated by either party with thirty days written notice. Under this agreement, payments are $0.75 million per annum, paid monthly. Subject to the achievement of certain performance objectives as determined by the Compensation Committee of the Board, a bonus or bonuses may also be earned and payable to BRPI Executive Consulting, LLC.

Total fees associated with B. Riley related to the Last Out Term Loans and services of Mr. Kenny Young, both as described above, were $0.2 million and $0.4 million for the three and six months ended June 30, 2021, respectively, and were $3.3 million and $7.5 million for the three and six months ended June 30, 2020, respectively.

On November 13, 2020 we entered into an agreement with B. Riley Principal Merger Corp. II, an affiliate of B. Riley, to purchase 200,000 shares of Class A common stock of Eos Energy Storage LLC for an aggregate purchase price of $2.0 million. The shares were sold in January 2021 for which the Company recognized net proceeds of $4.5 million.

The public offering of our Senior Notes in February 2021, as described in Note 13, was conducted pursuant to an underwriting agreement dated February 10, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on February 12, 2021, we paid B. Riley Securities, Inc. $5.2 million for underwriting fees and other transaction cost related to the Senior Notes offering.

The public offering of our common stock, as described in Note 17, was conducted pursuant to an underwriting agreement dated February 9, 2021, between us and B. Riley Securities, Inc., as representative of the several underwriters. Also on February 12, 2021, we paid B. Riley Securities, Inc. $9.5 million for underwriting fees and other transaction costs related to the offering.

On February 12, 2021, the Company and B. Riley entered into the Exchange Agreement pursuant to which we agreed to issue to B. Riley $35.0 million aggregate principal amount of Senior Notes in exchange for a deemed prepayment of $35.0 million of our existing Tranche A term loan with B. Riley Financial in the Exchange, as described in Note 13.

On March 31, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell, from time to time, up to an aggregated principal amount of $150.0 million of 8.125% senior notes due 2026 to or through B. Riley Securities, Inc., as described in Note 13. As of June 30, 2021, we paid B. Riley Securities, Inc. $0.3 million for underwriting fees and other transaction costs related to the offering.

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The public offering of our 7.75% Series A Cumulative Perpetual Preferred Stock, as described in Note 16, was conducted pursuant to an underwriting agreement dated May 4, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on May 7, 2021, we paid B. Riley Securities, Inc. $4.3 million for underwriting fees and other transaction cost related to the Preferred Stock offering.

On May 26, 2021, we completed the additional sale of 444,700 shares of our Preferred Stock, related to the grant to the underwriters, as described in Note 16, and paid B. Riley Securities, Inc. $0.4 million for underwriting fees in conjunction with the transaction.

On June 1, 2021, we issued 2,916,880 shares of the Company’s 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash due to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Last Out Term Loans and paid $0.9 million in cash for accrued interest, as described in Note 16.

On June 30, 2021, we entered into new Debt Facilities, as described in Note 15. In connection with the Company’s entry into the Debt Facilities, B. Riley Financial, Inc., an affiliate of B. Riley, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as describe in Note 15. Under a fee letter with B. Riley, the Company shall pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty.

Transactions with B. Riley - Subsequent Events

On July 7, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell, from time to time, up to an aggregated principal amount of $76 million of Preferred Stock to or through B. Riley Securities, Inc., as described in Note 16.

Transactions with Vintage Capital Management, LLC

On March 26, 2021, Vintage and B. Riley completed a transaction pursuant to which B. Riley agreed to purchase from Vintage, and Vintage agreed to sell to B. Riley, all 10,720,785 shares of our common stock owned by Vintage.

Based on its Schedule 13D filings, Vintage beneficially owns 0% of our outstanding common stock as of June 30, 2021.

NOTE 24 – ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

Assets Held for Sale

Certain real property assets for the Copley, Ohio location were sold on March 15, 2021 for $4.0 million. We received $3.3 million of net proceeds after adjustments and recognized a gain on sale of $1.9 million. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033.

In December 2019, we determined that a small business within the B&W Thermal segment met the criteria to be classified as held for sale. At December 31, 2020, the carrying value of the net assets planned to be sold approximated the estimated fair value less costs to sell. Refer to Divestitures below as this sale closed March 5, 2021.

In December 2020, we determined that certain real property assets within the B&W Thermal segment met the criteria to be classified as held for sale. At June 30, 2021, the carrying value of the assets held for sale of $1.8 million was lower than the estimated fair value less costs to sell.

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The following table summarizes the carrying value of the assets and liabilities held for sale at June 30, 2021 and December 31, 2020:

(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable – trade, net	$	—	$	2,103
Accounts receivable – other	—		86
Contracts in progress	—		458
Inventories	—		1,676
Other current assets	—		405
Current assets held for sale	—		4,728
Net property, plant and equipment	1,766		10,365
Intangible assets	—		759
Right-of-use-asset	—		32
Non-current assets held for sale	1,766		11,156
Total assets held for sale	$	1,766	$	15,884
Accounts payable	$	—	$	5,211
Accrued employee benefits	—		178
Advance billings on contracts	—		370
Accrued warranty expense	—		466
Operating lease liabilities	—		32
Other accrued liabilities	—		2,048
Current liabilities held for sale	—		8,305
Total liabilities held for sale	$	—	$	8,305

Divestitures

Effective March 5, 2021, we sold all of the issued and outstanding capital stock of Diamond Power Machine (Hubei) Co., Inc, for $2.8 million. We received $2.0 million in gross proceeds before expenses and recorded an $0.8 million favorable contract asset for the amortization period from March 8, 2021 through December 31, 2023. We recognized a $0.4 million pre-tax gain, inclusive of the recognition of $4.5 million of currency translation adjustment, on the sale of the business in the three months ended March 31, 2021. For the three months ended June 30, 2021, we recorded an adjustment of $2.6 million related to certain working capital amounts that are in dispute. Additional adjustments may be necessary as this is finalized. For the six months ended June 30, 2021, the net pre-tax loss on the sale was $2.2 million.

On March 17, 2020, we fully settled the remaining escrow associated with the sale of PBRRC and received $4.5 million in cash.

Discontinued Operations

On April 6, 2020, we fully settled the remaining escrow associated with the sale of the MEGTEC and Universal businesses and received $3.5 million in cash.

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NOTE 25 – NEW ACCOUNTING STANDARDS

We adopted the following accounting standard during the first six months of 2021:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing exceptions related to the incremental approach for intra-period tax allocation, certain deferred tax liabilities, and the general methodology for calculating income taxes in an interim period. The amendment also provides simplification related to accounting for franchise (or similar) tax, evaluating the tax basis step up of goodwill, allocation of consolidated current and deferred tax expense, reflection of the impact of enacted tax law or rate changes in annual effective tax rate calculations in the interim period that includes enactment date, and other minor codification improvements. The impact of this standard on our condensed consolidated financial statements was immaterial.

New accounting standards not yet adopted that could affect our Condensed Consolidated Financial Statements in the future are summarized as follows:

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Equity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The amendments in this update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Earnings Per Share (Topic 260). The amendments in this update do not apply to modifications or exchanges of financial instruments that are within the scope of another Topic. That is, accounting for those instruments continues to be subject to the requirements in other Topics. The amendments in this update do not affect a holder’s accounting for freestanding call options. The update is applicable to B&W as we have previously issued freestanding written call options however those options remain unexercised as of June 30, 2021 and they have not been modified or exchanged to date. The amendments are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In March 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This update is an amendment to ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform of Financial Reporting, which was issued in March 2020 and provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in the updates apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the updates do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in both updates are effective for all entities upon issuance and may be adopted any date on or after March 12, 2020 up to December 31, 2022. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The amendments in this update are effective for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after

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December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of the standard on our condensed consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss (CECL) model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on our trade receivables, contracts in progress, and potentially our impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the impact of both standards on our condensed consolidated financial statements.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW OF RESULTS

B&W is a growing, globally-focused renewable, environmental and thermal technologies provider with decades of experience providing diversified energy and emissions control solutions to a broad range of industrial, electrical utility, municipal and other customers. B&W’s innovative products and services are organized into three market-facing segments:

•Babcock & Wilcox Renewable: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass energy and black liquor systems for the pulp and paper industry. B&W’s leading technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications around the world. B&W’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.

•Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. B&W has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

Our business depends significantly on the capital, operations and maintenance expenditures of global electric power generating companies, including renewable and thermal powered heat generation industries and industrial facilities with environmental compliance policy requirements. Several factors may influence these expenditures, including:

•climate change initiatives promoting environmental policies which include renewable energy options utilizing waste-to-energy or biomass to meet legislative requirements and clean energy portfolio standards in the United States, European, Middle East and Asian markets;

•requirements for environmental improvements in various global markets;

•expectation of future governmental requirements to further limit or reduce greenhouse gas and other emissions in the United States, Europe and other international climate change sensitive countries;

•prices for electricity, along with the cost of production and distribution including the cost of fuels within the United States, Europe, Middle East and Asian based countries;

•demand for electricity and other end products of steam-generating facilities;

•level of capacity utilization at operating power plants and other industrial uses of steam production;

•requirements for maintenance and upkeep at operating power plants to combat the accumulated effects of usage;

•overall strength of the industrial industry; and

•ability of electric power generating companies and other steam users to raise capital.

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Customer demand is heavily affected by the variations in our customers' business cycles and by the overall economies and energy, environmental and noise abatement needs of the countries in which they operate.

We recorded operating income of $2.8 million and an operating loss of $3.7 million in the three and six months ended June 30, 2021, respectively, compared to operating losses of $7.7 million and $18.0 million in the three and six months ended June 30, 2020, respectively, and we showed improved results in all three segments as described below.

Adjusted EBITDA in the B&W Renewable segment was $3.4 million and $3.6 million in the three and six months ended June 30, 2021, respectively, compared to $(0.1) million and $(1.6) million in the three and six months ended June 30, 2020, respectively. The improvement is primarily attributable to lower levels of direct overhead support and SG&A, reflecting the benefits of cost savings and restructuring initiatives, offset partially by the decrease in volume.

Adjusted EBITDA in the B&W Environmental segment was $2.7 million and $3.8 million in the three and six months ended June 30, 2021, respectively, compared to $(1.1) million and $(0.8) million in the three and six months ended June 30, 2020, respectively. The increase is driven primarily by the higher volume and the decrease in shared resources.

Adjusted EBITDA in the B&W Thermal segment was $12.4 million and $22.9 million in the three and six months ended June 30, 2021, respectively, compared to $8.0 million and $15.6 million in the three and six months ended June 30, 2020, respectively. This increase is primarily attributable to the increase in volume offset partially by product mix, an increase in expenses due to growth in Asia and Mid-East, and a increase in shared resources due to higher volume.

We have manufacturing facilities in Mexico, the United States, Denmark and Scotland. Many aspects of our operations and properties could be affected by political developments, environmental regulations and operating risks. These and other factors may have a material impact on our international and domestic operations or our business as a whole.

Through our restructuring efforts, we continue to make significant progress to make our cost structure more variable and to reduce costs. We expect our cost saving measures to continue to translate to bottom-line results, with top-line growth driven by opportunities for our core technologies and support services across the B&W Renewable, B&W Environmental, and B&W Thermal segments globally.

We have identified additional initiatives that are underway as of the date of this filing that are expected to further reduce costs, and we expect to continue to explore other cost saving initiatives to improve cash generation and evaluate additional non-core asset sales to continue to strengthen our liquidity. There are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate.

Year-over-year comparisons of our results from continuing operations were also impacted by:

•$2.4 million and $3.4 million of restructuring costs were recognized in the three and six months ended June 30, 2021, respectively, compared to $2.4 million and $4.3 million of restructuring costs recognized in the three and six months ended June 30, 2020, respectively. The restructuring costs primarily related to severance.

•$1.3 million and $2.2 million of financial advisory service fees were recognized in the three and six months ended June 30, 2021, respectively, as compared to $0.6 million and $1.5 million in the corresponding periods of 2020. Financial advisory service fees are included in advisory fees and settlement costs in the Condensed Consolidated Statement of Operations.

•$2.1 million and $4.0 million of legal and other advisory fees were recognized in the three and six months ended June 30, 2021, respectively, as compared to $1.2 million and $3.8 million in the corresponding periods of 2020 These fees are related to the contract settlement and liquidity planning and are included in advisory fees and settlement costs in the Condensed Consolidated Statement of Operations.

•$1.2 million and $1.5 million of litigation legal costs were recognized in the three and six months ended June 30, 2021, respectively, as compared to $0.3 million and $0.9 million in the corresponding periods of 2020. These fees are included in advisory fees and settlement costs in the Condensed Consolidated Statement of Operations.

In addition to the discussions described above, we continue to evaluate further dispositions, opportunities for additional cost savings and opportunities for subcontractor recoveries and other claims where appropriate and available. If the value of our

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business was to decline, or if we were to determine that we were unable to recognize an amount in connection with any proposed disposition in excess of the carrying value of any disposed asset, we may be required to recognize impairments for one or more of our assets that may adversely impact our business, financial condition and results of operations.

RESULTS OF OPERATIONS

Condensed Consolidated Results of Operations

The presentation of the components of our adjusted EBITDA in the table below is consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management are not allocated to the segments.

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2021		2020		$ Change		2021		2020		$ Change
Revenues:
B&W Renewable segment	$	38,344	$	43,509	$	(5,165)	$	67,155	$	79,508	$	(12,353)
B&W Environmental segment	28,358		25,172		3,186		59,518		51,092		8,426
B&W Thermal segment	136,316		67,212		69,104		244,597		153,895		90,702
Other	(158)		(496)		338		(162)		(544)		382
	$	202,860	$	135,397	$	67,463	$	371,108	$	283,951	$	87,157

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2021		2020		$ Change		2021		2020		$ Change
Adjusted EBITDA (1)
B&W Renewable segment	$	3,427	$	(138)	$	3,565	$	3,631	$	(1,572)	$	5,203
B&W Environmental segment	2,698		(1,146)		3,844		3,799		(769)		4,568
B&W Thermal segment	12,431		8,018		4,413		22,861		15,592		7,269
Corporate	(2,997)		(3,805)		808		(5,682)		(7,948)		2,266
Research and development costs	(485)		(1,231)		746		(1,073)		(2,572)		1,499
	$	15,074	$	1,698	$	13,376	$	23,536	$	2,731	$	20,805

(1) Adjusted EBITDA for the three and six months ended June 30, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total $(0.1) million and $(0.2) million, respectively, and $(0.2) million and $(0.4) million, respectively.

Three Months Ended June 30, 2021 and 2020

Revenues increased by $67.5 million to $202.9 million in the second quarter of 2021 compared to $135.4 million in the corresponding period of 2020, primarily due to a higher level of construction project activity in the current period. Notwithstanding revenue increases in our Thermal and Environmental segments, revenues for each of our segments have been impacted by COVID-19 including the postponement and delay of several projects. Additionally, revenue was impacted by segment specific changes which are discussed in further detail in the sections below.

Operating income (loss) improved $10.5 million to $2.8 million in the second quarter of 2021 compared to $(7.7) million in the corresponding period of 2020. The increase is primarily due to the higher construction volume as described above, improved project execution and the benefits of costs savings and restructuring initiatives. Restructuring expenses, advisory fees, amortization expense, gains (losses) on dispositions of equity method investees, and impairments are discussed in further detail in the sections below.

Six Months Ended June 30, 2021 and 2020

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Revenues increased by $87.2 million to $371.1 million in the six months ended June 30, 2021 compared to $284.0 million in the corresponding period of 2020, primarily due to a higher level of construction project activity in the current period. Revenues for each of our segments have been impacted by COVID-19 including the postponement and delay of several projects. In addition, revenue was impacted by segment specific changes which are discussed in further detail in the sections below.

Operating losses improved $14.3 million to $(3.7) million in the six months ended June 30, 2021 compared to $(18.0) million in the corresponding period of 2020. The increase is primarily due to the higher construction volume as described above, improved project execution and the benefits of costs savings and restructuring initiatives. Restructuring expenses, advisory fees, amortization expense, gains (losses) on dispositions of equity method investees, and impairments are discussed in further detail in the sections below.

Non-GAAP Financial Measures

The following discussion of our business segment results of operations includes a discussion of adjusted gross profit, a non-GAAP financial measure. Adjusted gross profit differs from the most directly comparable measure calculated in accordance with generally accepted accounting principles (“GAAP”). Amortization expense is not allocated to the segments’ adjusted gross profit. A reconciliation of operating income (loss), the most directly comparable GAAP measure, to adjusted gross profit is included in the table below. Management believes that this financial measure is useful to investors because it excludes certain expenses, allowing investors to more easily compare our financial performance period to period.

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2021		2020		$ Change		2021		2020		$ Change
Adjusted gross profit (1)(2)
Operating income (loss)	$	2,784	$	(7,703)	$	10,487	$	(3,678)	$	(18,001)	$	14,323
Selling, general and administrative ("SG&A") expenses	33,162		34,504		(1,342)		73,553		72,036		1,517
Advisory fees and settlement costs	4,526		1,989		2,537		7,817		6,228		1,589
Amortization expense	1,991		1,335		656		3,376		2,745		631
Restructuring activities	2,400		2,392		8		3,393		4,343		(950)
Research and development costs	609		1,231		(622)		1,197		2,572		(1,375)
Losses from a non-strategic business	299		97		202		287		218		69
Losses (gains) on asset disposals, net	38		2		36		(1,966)		(913)		(1,053)
	$	45,809	$	33,847	$	11,962	$	83,979	$	69,228	$	14,751

(1) Amortization is not allocated to the segments' adjusted gross profit, but depreciation is allocated to the segments' adjusted gross profit.

(2) Adjusted gross profit for the three and six months ended June 30, 2020, excludes losses related to a non-strategic business that was previously included in Adjusted gross profit and totals $0.1 million and $0.2 million, respectively

Adjusted gross profit by segment is as follows:

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2021		2020		$ Change		2021		2020		$ Change
Adjusted gross profit
B&W Renewable segment	$	9,825	$	9,388	$	437	$	16,725	$	16,309	$	416
B&W Environmental segment	6,671		4,455		2,216		12,613		9,754		2,859
B&W Thermal segment	29,313		20,004		9,309		54,641		43,165		11,476
	$	45,809	$	33,847	$	11,962	$	83,979	$	69,228	$	14,751

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B&W Renewable Segment Results

	Three months ended June 30,								Six months ended June 30,
(in thousands)	2021			2020			$ Change		2021			2020			$ Change
Revenues	$	38,344		$	43,509		$	(5,165)	$	67,155		$	79,508		$	(12,353)
Adjusted EBITDA	$	3,427		$	(138)		$	3,565	$	3,631		$	(1,572)		$	5,203
Adjusted gross profit	$	9,825		$	9,388		$	437	$	16,725		$	16,309		$	416
Adjusted gross profit %	25.6		%	21.6		%			24.9		%	20.5		%

Three Months Ended June 30, 2021 and 2020

Revenues in the B&W Renewable segment decreased 12%, or $5.2 million to $38.3 million in the second quarter of 2021 compared to $43.5 million in the corresponding period of 2020. The reduction in revenue is primarily due to project delays of large orders due to the continued adverse effects of COVID-19 in the second quarter of 2021 coupled with the completion of prior year large service and licensing projects and loss contracts that have not been replaced.

Adjusted EBITDA in the B&W Renewable segment increased $3.6 million, to $3.4 million in the second quarter of 2021 compared to $(0.1) million in the corresponding period of 2020. The improvement is primarily attributable to lower levels of direct overhead support and SG&A, reflecting the benefits of cost savings and restructuring initiatives, offset partially by the decrease in volume, as discussed above.

Adjusted gross profit in the B&W Renewable segment increased $0.4 million, to $9.8 million in the second quarter of 2021 compared to $9.4 million. The increase is primarily driven by lower levels of direct overhead, offset partially by the decrease in volume, as discussed above.

Six Months Ended June 30, 2021 and 2020

Revenues in the B&W Renewable segment decreased 16%, or $12.4 million to $67.2 million in the six months ended June 30, 2021 compared to $79.5 million in the corresponding period of 2020. The reduction in revenue is primarily due to project delays of large orders due to the continued adverse effects of COVID-19 in the first six months of 2021 coupled with the completion of prior year large service and licensing projects and loss contracts that have not been replaced.

Adjusted EBITDA in the B&W Renewable segment increased $5.2 million, to $3.6 million in the six months ended June 30, 2021 compared to $(1.6) million in the corresponding period of 2020. The benefits of cost savings and restructuring initiatives, decrease in shared resources due to lower volume and no additional changes in the estimated revenues and costs to complete the six European B&W Renewable EPC loss contracts, as described in Note 4, more than offset the decrease in volume, as discussed above.

Adjusted gross profit in the B&W Renewable segment increased $0.4 million, to $16.7 million in the second quarter of 2021 compared to $16.3 million due to the benefits of cost savings and restructuring initiatives and no additional changes in the estimated revenues and costs to complete the six European B&W Renewable EPC loss contracts, as described in Note 4, offset partially by the decrease in volume, as discussed above.

B&W Environmental Segment Results

	Three months ended June 30,								Six months ended June 30,
(In thousands)	2021			2020			$ Change		2021			2020			$ Change
Revenues	$	28,358		$	25,172		$	3,186	$	59,518		$	51,092		$	8,426
Adjusted EBITDA	$	2,698		$	(1,146)		$	3,844	$	3,799		$	(769)		$	4,568
Adjusted gross profit	$	6,671		$	4,455		$	2,216	$	12,613		$	9,754		$	2,859
Adjusted gross profit %	23.5		%	17.7		%			21.2		%	19.1		%

Three Months Ended June 30, 2021 and 2020

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Revenues in the B&W Environmental segment increased 13%, or $3.2 million to $28.4 million in the second quarter of 2021 compared to $25.2 million in the corresponding period of 2020. The increase is primarily due to higher project activity in the current quarter as compared to the prior quarter which was impacted due to the postponement of new projects as a result of COVID-19.

Adjusted EBITDA in the B&W Environmental segment was $2.7 million in the second quarter of 2021 compared to $(1.1) million in the corresponding period of 2020. The increase is driven primarily by the higher volume, as described above and a decrease in shared resources.

Adjusted gross profit in the B&W Environmental segment increased $2.2 million to $6.7 million in the second quarter of 2021 compared to $4.5 million in the corresponding period of 2020. The increase is primarily attributable to the increase in volume and product mix.

Six Months Ended June 30, 2021 and 2020

Revenues in the B&W Environmental segment increased 16%, or $8.4 million to $59.5 million in the six months ended June 30, 2021 compared to $51.1 million in the corresponding period of 2020. The increase is primarily due to higher project activity in the current period as compared to the prior period which was impacted due to the postponement of new projects as a result of COVID-19.

Adjusted EBITDA in the B&W Environmental segment was $3.8 million in the six months ended June 30, 2021 compared to $(0.8) million in the corresponding period of 2020. The increase is driven primarily by the higher volume, as described above, the benefits of cost-savings and restructuring initiatives and a $0.4 million improvement to complete the two B&W Environmental loss contracts, as described in Note 4.

Adjusted gross profit in the B&W Environmental segment increased $2.9 million to $12.6 million in the six months ended June 30, 2021 compared to $9.8 million in the corresponding period of 2020. The increase is primarily attributable to the increase in volume, lower levels of shared overhead and a $0.4 million improvement to complete the two B&W Environmental loss contracts, as described in Note 4.

B&W Thermal Segment Results

	Three months ended June 30,								Six months ended June 30,
(In thousands)	2021			2020			$ Change		2021			2020			$ Change
Revenues	$	136,316		$	67,212		$	69,104	$	244,597		$	153,895		$	90,702
Adjusted EBITDA	$	12,431		$	8,018		$	4,413	$	22,861		$	15,592		$	7,269
Adjusted gross profit	$	29,313		$	20,004		$	9,309	$	54,641		$	43,165		$	11,476
Adjusted gross profit %	21.5		%	29.8		%			22.3		%	28.0		%

Three Months Ended March 31, 2021 and 2020

Revenues in the B&W Thermal segment increased 103%, or $69.1 million, to $136.3 million in the second quarter of 2021 compared to $67.2 million generated in the corresponding period of 2020. The revenue increase is attributable to a higher level of activity on construction projects in the current quarter as compared to the prior quarter which was impacted by project delays due to COVID-19.

Adjusted EBITDA in the B&W Thermal segment increased $4.4 million to $12.4 million in the second quarter of 2021 compared to $8.0 million in the corresponding period of 2020, which is consistent with the increase in volume as described above offset partially by product mix, an increase in expenses due to growth in Asia and Mid-East, and a increase in shared resources due to higher volume.

Adjusted gross profit in the B&W Thermal segment increased $9.3 million, to $29.3 million in the second quarter of 2021, compared to $20.0 million in the corresponding period of 2020, which is mainly attributable to the increase in revenue as described above.

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Six Months Ended March 31, 2021 and 2020

Revenues in the B&W Thermal segment increased 59%, or $90.7 million, to $244.6 million in the six months ended June 30, 2021 compared to $153.9 million generated in the corresponding period of 2020. The revenue increase is attributable to a higher level of activity on construction projects in the current period as compared to the prior period which was impacted by project delays due to COVID-19.

Adjusted EBITDA in the B&W Thermal segment increased $7.3 million to $22.9 million in the six months ended June 30, 2021 compared to $15.6 million in the corresponding period of 2020, which is mainly attributable to the increase in volume as described above offset partially by product mix, an increase in expenses due to growth in Asia and Mid-East, and a increase in shared resources due to higher volume.

Adjusted gross profit in the B&W Thermal segment increased $11.5 million, to $54.6 million in the six months ended June 30, 2021, compared to $43.2 million in the corresponding period of 2020, which is consistent with the increase in revenue as described above.

Bookings and Backlog

Bookings and backlog are our measure of remaining performance obligations under our sales contracts. It is possible that our methodology for determining bookings and backlog may not be comparable to methods used by other companies.

We generally include expected revenue from contracts in our backlog when we receive written confirmation from our customers authorizing the performance of work and committing the customers to payment for work performed. Backlog may not be indicative of future operating results, and contracts in our backlog may be canceled, modified or otherwise altered by customers. Backlog can vary significantly from period to period, particularly when large new build projects or operations and maintenance contracts are booked because they may be fulfilled over multiple years. Because we operate globally, our backlog is also affected by changes in foreign currencies each period. We do not include orders of our unconsolidated joint ventures in backlog.

Bookings represent changes to the backlog. Bookings include additions from booking new business, subtractions from customer cancellations or modifications, changes in estimates of liquidated damages that affect selling price and revaluation of backlog denominated in foreign currency. We believe comparing bookings on a quarterly basis or for periods less than one year is less meaningful than for longer periods, and that shorter-term changes in bookings may not necessarily indicate a material trend.

	Three months ended June 30,				Six months ended June 30,
(In approximate millions)	2021		2020		2021		2020
B&W Renewable(1)	$	44	$	31	$	81	$	65
B&W Environmental	27		11		68		56
B&W Thermal	97		43		188		174
Other/eliminations	—		(1)		—		(1)
Bookings	$	168	$	84	$	337	$	294

(1) B&W Renewable bookings includes the revaluation of backlog denominated in currency other than U.S. dollars. The foreign exchange impact on B&W Renewable bookings in the second quarter of 2021 and 2020 was $(2.6) million and $(1.6) million, respectively. The foreign exchange impact on B&W Renewable bookings in the six months ended June 30, 2021 and 2020 was $4.5 million and $(0.6) million, respectively.

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Our backlog as of June 30, 2021 and 2020 was as follows:

	As of June 30,
(In approximate millions)	2021		2020
B&W Renewable(1)	$	221	$	215
B&W Environmental	117		85
B&W Thermal	166		157
Other/eliminations	(4)		—
Backlog	$	500	$	457

(1)     B&W Renewable backlog at June 30, 2021, includes $163.0 million related to long-term operation and maintenance contracts for renewable energy plants, with remaining durations extending until 2034. Generally, such contracts have a duration of 10-20 years and include options to extend.

Of the backlog at June 30, 2021, we expect to recognize revenues as follows:

(In approximate millions)	2021		2022		Thereafter		Total
B&W Renewable	$	57	$	26	$	138	$	221
B&W Environmental	59		30		28		117
B&W Thermal	114		50		2		166
Other/eliminations	(4)		—		—		(4)
Expected revenue from backlog	$	226	$	106	$	168	$	500

Corporate

Corporate costs in adjusted EBITDA include SG&A expenses that are not allocated to the reportable segments. These costs include, among others, certain executive, compliance, strategic, reporting and legal expenses associated with governance of the total organization and being an SEC registrant. Corporate costs decreased $0.8 million to $3.0 million compared to $3.8 million incurred for the three months ended June 30, 2021 and 2020, respectively. The decrease is primarily due to lower incentive compensation in the second quarter of 2021.

Corporate costs decreased $2.3 million to $5.7 million compared to $7.9 million incurred for the six months ended June 30, 2021 and 2020, respectively. The decrease is primarily due to lower incentive compensation, audit fees, and temporary consultant fees incurred in the first six months of 2021.

Advisory Fees and Settlement Costs

Advisory fees and settlement costs increased by $2.5 million to $4.5 million in the second quarter of 2021 compared to $2.0 million in the corresponding period of 2020 and advisory fees and settlement costs increased $1.6 million to $7.8 million in the six months ended June 30, 2021 as compared to $6.2 million in the corresponding period of 2020. The change is primarily due to increased use of external consultants in the second quarter of 2021.

Research and Development

Our research and development activities are focused on improving our products through innovations to reduce the cost of our products and make them more competitive, as well as to reduce performance risk of our products to better meet our and our customers' expectations. Research and development expenses totaled $0.6 million and $1.2 million in the second quarter of 2021 and 2020, respectively, and totaled $1.2 million and $2.6 million in the six months ended June 30, 2021 and 2020, respectively. The decrease resulted primarily from timing of specific research and development efforts.

Restructuring

Restructuring actions across our business units and corporate functions resulted in $2.4 million and $2.4 million in the second quarter of 2021 and 2020, respectively, and totaled $3.4 million and $4.3 million of expense in the six months ended June 30, 2021 and 2020, respectively.

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Depreciation and Amortization

Depreciation expense was $2.4 million and $2.9 million in the second quarter of 2021 and 2020, respectively and depreciation expense was $5.1 million and $5.5 million in the six months ended June 30, 2021 and 2020, respectively.

Amortization expense was $2.0 million and $1.3 million in the second quarter of 2021 and 2020, respectively and amortization expense was $3.4 million and $2.7 million in the six months ended June 30, 2021 and 2020, respectively.

Pension and Other Postretirement Benefit Plans

We recognize benefits from our defined benefit and other postretirement benefit plans based on actuarial calculations primarily because our expected return on assets is greater than our service costs. Service cost is low because our plan benefits are frozen except for a small number of hourly participants. Pension benefits were $5.9 million and $7.5 million in the second quarter of 2021 and 2020, respectively. Pension benefits were $15.0 million and $15.0 million in the six months ended June 30, 2021 and 2020, respectively.

Our pension costs also include MTM adjustments from time to time. Interim MTM charges are a result of curtailments or settlements. Any MTM charge or gain should not be considered to be representative of future MTM adjustments as such events are not currently predicted and are in each case subject to market conditions and actuarial assumptions as of the date of the event giving rise to the MTM adjustment.There were no MTM adjustments for our pension and other postretirement benefit plans during the three and six months ended June 30, 2021 and 2020

Other than service cost of $0.2 million and $0.2 million in the second quarter of 2021 and 2020, respectively, and $0.4 million and $0.4 million in the six months ended June 30, 2021 and 2020, respectively, which are related to the small number of hourly participants still accruing benefits within the Babcock & Wilcox Thermal segment, pension benefit and MTM adjustments are excluded from the results of our segments.

The costs and funding requirements of our pension and postretirement benefit plans depend on our various assumptions, including estimates of rates of return on benefit-related assets, discount rates for future payment obligations, rates of future cost growth, mortality assumptions and trends for future costs. Variances from these estimates could have a material adverse effect on us. Our policy to recognize these variances annually through MTM accounting could result in volatility in our results of operations, which could be material. The funding obligations for the Company’s pension plans are impacted by the performance of the financial markets, particularly the equity markets, and interest rates. If the financial markets do not provide the long-term returns that are expected, or discount rates increase the present value of liabilities, the Company could be required to make larger contributions. Refer to Note 12 to the Condensed Consolidated Financial Statements for further information regarding our pension and other postretirement plans.

Foreign Exchange

We translate assets and liabilities of our foreign operations into United States dollars at current exchange rates, and we translate items in our statement of operations at average exchange rates for the periods presented. We record adjustments resulting from the translation of foreign currency financial statements as a component of accumulated other comprehensive income (loss). We report foreign currency transaction gains and losses in Condensed Consolidated Statements of Operations.

Foreign exchange was a gain of $1.8 million and $7.1 million for the three months ended June 30, 2021 and 2020, respectively, and a gain/(loss) of $0.6 million and $(2.2) million for the six months ended June 30, 2021 and 2020, respectively. Foreign exchange gains and losses are primarily related to unhedged intercompany loans denominated in European currencies to fund foreign operations.

Income Taxes

	Three months ended June 30,								Six months ended June 30,
(In thousands, except for percentages)	2021			2020			$ Change		2021			2020			$ Change
Income (loss) before income taxes	$	6,687		$	(17,288)		$	23,975	$	(5,920)		$	(51,633)		$	45,713
Income tax expense	$	3,546		$	845		$	2,701	$	6,382		$	35		$	6,347
Effective tax rate	53.0		%	(4.9)		%			(107.8)		%	(0.1)		%

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Our income tax expense in the second quarter of 2021 reflects a full valuation allowance against our net deferred tax assets, except in Mexico, Canada, the United Kingdom, Brazil, Finland, Germany, Thailand, the Philippines, Indonesia, and Sweden. Deferred tax assets are evaluated each period to determine whether realization is more likely than not. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Valuation allowances may be removed in the future if sufficient positive evidence exists to outweigh the negative evidence under the framework of ASC 740, Income Taxes.

Our effective tax rate for the second quarter of 2021 is not reflective of the United States statutory rate, primarily due to a valuation allowance against certain net deferred tax assets and unfavorable discrete items, including the adjustment of deferred tax liabilities for the effect of an enacted change in the United Kingdom tax rate from 19% to 25% beginning in 2023. In certain jurisdictions (namely, Denmark and Italy) where the company anticipates a loss for the fiscal year or incurs a loss for the year-to-date for which a tax benefit cannot be realized in accordance with ASC 740, the company excludes the loss in that jurisdiction from the overall computation of the estimated annual effective tax rate. For the period ended June 30, 2021, the United States was not considered a loss jurisdiction and was included in the estimated annual effective tax rate. .

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. ASU No. 2019-12 removes certain exceptions to the general principles in Topic 740, primarily related to intraperiod tax allocation, recognizing deferred tax liabilities for changes in ownership of foreign equity method investments or foreign subsidiaries, and exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The Company adopted ASU No. 2019-12 on January 1, 2021, on a prospective basis. The adoption did not have a material impact on our interim consolidated financial statements, estimated income for the full fiscal year 2021 or to the trend of earnings.

Liquidity and Capital Resources

Liquidity

Our primary liquidity requirements include debt service, funding dividends on preferred stock and working capital needs. We fund our liquidity requirements primarily through cash generated from operations, external sources of financing, including our recent Revolving Credit Agreement, Senior Notes, and equity offerings, including our Preferred Stock, each of which are described below and in the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of the Quarterly Report in further detail along with other sources of liquidity.

We recently executed the following actions:

•on March 4, 2021, we entered into A&R Amendment No. 3 to Amended and Restated Credit Agreement (“A&R Amendment No. 3”) with Bank of America, N.A., as administrative agent to the lenders under our A&R Credit Agreement. A&R Amendment No. 3, among other matters, at the date of effectiveness (i) permits the prepayment of certain term loans, (ii) reduces the revolving credit commitments under our A&R Credit Agreement to $130.0 million and removes the ability to obtain revolving loans under our A&R Credit Agreement, and (iii) amends certain covenants and conditions to the extension of credit under our A&R Credit Agreement;

•on March 4, 2021, effective with the execution of A&R Amendment No. 3, we paid $75.0 million toward our existing Last Out Term Loans and paid $21.8 million of accrued and deferred fees related to the revolving credit facility;

•on March 5, 2021, we sold all of the issued and outstanding capital stock of Diamond Power Machine (Hubei) Co., Inc. for $2.8 million. We received $2.0 million in cash and recorded an $0.8 million favorable contract asset for the amortization period from March 8, 2021 through December 31, 2023. We recognized a $0.4 million gain on the sale of the business and recorded an adjustment of $2.6 million in the second quarter;

•on March 15, 2021, we completed the sale of certain fixed assets for the Copley, Ohio location for $4.0 million, received $3.3 million of net cash proceeds after adjustments and recognized a gain on sale of $1.9 million. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033;

•on March 26, 2021, we entered into A&R Amendment No. 4 to Amended and Restated Credit Agreement (“A&R Amendment No. 4”) with Bank of America, N.A., as administrative agent to the lenders under our A&R Credit Agreement. A&R Amendment No. 4, among other matters, at the date of effectiveness (i) permits the issuance of additional Senior Notes of up to an aggregate principle amount of $150 million, and (ii) modifies the calculation of

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the senior leverage ratio, as described in Note 15 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report;

•on May 7, 2021, we completed a public offering of our Preferred Stock, in which we ultimately issued an aggregate 4,444,700 shares of our Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $106.4 million after deducting underwriting discounts, commissions but before expenses, as described in Note 16 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report;

•on June 1, 2021, we issued 2,916,880 shares of our Preferred Stock and paid $0.4 million in cash to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Tranche A-3 term loan and paid $0.9 million in cash for accrued interest due to B. Riley, as described in Note 14 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report. As a result of such deemed prepayment, the total amount outstanding under our Last Out Term Loans was reduced to zero;

•on June 30, 2021, we paid dividends on our outstanding Preferred Stock totaling $1.7 million, as described in Note 16 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report;

•as of June 30, 2021, we issued an additional $12.9 million aggregate principal amount of Senior Notes for $13.1 million net proceeds under the March 31, 2021 sales agreement as described in Note 13 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report;

•subsequent to June 30, 2021 and as of August 12, 2021, we issued additional shares of our Preferred Stock for $5.9 million net proceeds under the sales agreement as described in Note 16 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report;

•subsequent to June 30, 2021 and as of August 12, 2021, we issued additional Senior Notes for $12.9 million net proceeds under the sales agreement as described in Note 13 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report; and

•on June 30, 2021, we entered the Revolving Credit Agreement with PNC, as administrative agent and swing loan lender which provides for an up to $50.0 million asset-based revolving credit facility, including a $15 million letter of credit sublimit and a $5 million swingline sublimit. In addition, we entered into the Letter of Credit Agreement with PNC, pursuant to which PNC has agreed to issue up to $110 million in letters of credit secured in part by cash collateral provided by an affiliate of MSD. Lastly, we entered into the Reimbursement Agreement with MSD, as administrative agent, and the cash collateral providers from time to time party thereto, pursuant to which we shall reimburse MSD and any other cash collateral provider to the extent the up to $110 million of cash collateral provided by MSD and any other cash collateral provider to secure the Letter of Credit Agreement is drawn to satisfy draws on letters of credit, as described in Note 15 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report.

See Note 13, Note 14, Note 15, Note 16, and Note 17 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of the Quarterly Report for additional information on our external sources of financing and equity offerings.

Beginning in April 2020 and continuing as of August 12, 2021, as part of the Company’s response to the impact of the COVID-19 pandemic on its business, the Company continues to take a number of cash conservation and cost reduction measures which include:

•suspension of our 401(k) company match for U.S. employees;

•utilizing options for government loans and programs in the U.S. and abroad that are appropriate and available; and

•deferring the remaining $20.9 million of the estimated Pension Plan contribution payments of $45.6 million that would have been due during 2021, in accordance with the American Rescue Plan Act of 2021 (the “ARPA relief plan”) signed into law in March 2021. In January 2021, we made Pension Plan contributions of $23.1 million, excluding interest.

Cash and Cash Flows

At June 30, 2021, our unrestricted cash and cash equivalents totaled $30.1 million and we had total debt of $170.9 million. Our foreign business locations held $27.8 million of our total unrestricted cash and cash equivalents at June 30, 2021. In general, our foreign cash balances are not available to fund our U.S. operations unless the funds are repatriated or used to repay intercompany loans made from the U.S. to foreign entities, which could expose us to taxes we presently have not made a provision for in our results of operations. We presently have no plans to repatriate these funds to the U.S.. In addition, we had $110.7 million of restricted cash at June 30, 2021 related to collateral for certain letters of credit of which $60.7 million has been returned to us as of August 12, 2021.

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Cash used in operations was $86.1 million in the six months ended June 30, 2021, which is primarily represented in the $40.3 million change in pension, postretirement and employee benefit liabilities and a $45.7 million net decrease in operating cash outflows associated with changes in working capital. In the six months ended June 30, 2020, cash used in operations was $49.3 million primarily represented in the net loss before depreciation and amortization. There also was a $0.9 million net increase in operating cash outflows associated with changes in working capital.

Cash flows from investing activities provided net cash of $6.6 million in the six months ended June 30, 2021, primarily related to proceeds from the sale of business and assets and net change in available-for-sale securities, offset by $2.2 million of capital expenditures. In the six months ended June 30, 2020, cash flows from investing activities provided net cash of $4.3 million, primarily related to $8.0 million from the settlement of remaining escrows associated with the sale of Palm Beach Resource Recovery Corporation and MEGTEC and Universal businesses, offset by the net change in available-for-sale securities and $1.7 million of capital expenditures.

Cash flows from financing activities provided net cash of $151.3 million in the six months ended June 30, 2021, primarily related to the issuance of Senior Notes, Preferred Stock and common stock offset by $75.4 million Last Out Term Loans repayments, a $164.3 million net reduction on the prior U.S. Revolving Credit Facility and $10.9 million of financing fees. Cash flows from financing activities provided net cash of $35.7 million in the six months ended June 30, 2020, primarily related to $60.0 million face value borrowings from the Last Out Term Loans offset by $14.3 million of net borrowings from the prior U.S. Revolving Credit Facility and $10.4 million of financing fees.

Debt Facilities

As described above and in the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report, on June 30, 2021, we entered into the Debt Facilities, including the Revolving Credit Agreement. The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. (“B. Riley”), a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as described below. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes, including to backstop certain letters of credit issued under our previous A&R Credit Agreement, for which commitments were terminated, all loans were repaid and ll outstanding and undrawn letters of credit were collateralized on June 30, 2021.

Last Out Term Loans

Effective with the new debt facilities the Company entered into on June 30, 2021, as described in Note 15 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of the Quarterly Report, the Company has no remaining Last Out Term Loans and no further borrowings thereunder are available.

The Company recognized a loss on debt extinguishment of $6.2 million in the quarter ended June 30, 2020, primarily representing the unamortized value of the original issuance discount and fees on the Tranche A-3 Last Out Term Loan.

See Note 14 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of the Quarterly Report for additional information on our Last Out Term Loans.

A&R Credit Agreement

As described above, the A&R Credit Agreement commitments were terminated, all loans were repaid and all outstanding and undrawn letters of credit were collateralized on June 30, 2021. The Company recognized a gain on debt extinguishment of $6.5 million in the quarter ended June 30, 2021, primarily representing the write-off of accrued revolver fees of $11.3 million offset by the unamortized deferred financing fees of $4.8 million related to the prior A&R Credit Agreement.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of our subsidiaries primarily outside of the United States have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outstanding outside our prior A&R Credit Agreement as of June 30, 2021 was $57.3 million. The aggregate value of the outstanding letters of credit provided by our prior A&R Credit Agreement backstopping letters of credit or bank guarantees was $22.1 million as of June 30, 2021. Of the

46

outstanding letters of credit issued under our prior A&R Credit Agreement, $32.1 million are subject to foreign currency revaluation.

We have also posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should we fail to perform our obligations under the applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue in support of some of our contracting activity. As of June 30, 2021, bonds issued and outstanding under these arrangements in support of contracts totaled approximately $259.3 million. The aggregate value of the letters of credit provided by our prior A&R Credit Agreement backstopping surety bonds was $24.6 million.

Our ability to obtain and maintain sufficient capacity under our new Debt Facilities is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished.

Other Indebtedness - Loan Payable

As described in Note 15, during the six months ended June 30, 2021, our Denmark subsidiary received two unsecured interest free loans totaling $2.6 million under a local government loan program related to COVID-19. The loans of $0.9 million and $1.7 million are payable in April 2022 and May 2022, respectively.

Subsequent to June 30, 2021, our Denmark subsidiary received an unsecured interest free loan totaling $0.9 million under a local government loan program related to COVID-19. The loan is payable in May 2023.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have, or are reasonably expected to have, a material current or future effect on its financial condition, results of operations, liquidity, capital expenditures or capital resources at June 30, 2021.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

For a summary of the critical accounting policies and estimates that we use in the preparation of our unaudited Condensed Consolidated Financial Statements, see “Critical Accounting Policies and Estimates” in our Annual Report. There have been no significant changes to our policies during the six months ended June 30, 2021.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our exposures to market risks have not changed materially from those disclosed under “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2020.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company's management, with the participation of our Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the "Exchange Act")). Our disclosure controls and procedures, by their nature, can provide only reasonable assurance regarding the control objectives. It should be noted that the design of any system of disclosure controls and procedures is based in part upon various assumptions about the likelihood of future events, and we cannot assure that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

Based on the evaluation referred to above, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of our disclosure controls and procedures are effective as of June 30, 2021 to provide reasonable assurance that

47

information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and such information is accumulated and communicated to management as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the six months ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal controls over financial reporting, despite the fact that some of our team members are working remotely in response to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 situation on our internal controls to ensure their operating effectiveness.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding ongoing investigations and litigation, see Note 20 to the unaudited Condensed Consolidated Financial Statements in Part I of this report, which we incorporate by reference into this Item.

Item 1A. Risk Factors

We are subject to various risks and uncertainties in the course of our business. The discussion of such risks and uncertainties may be found under “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and

in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. There are material changes to the following risk factors:

We repaid our A&R Credit Agreement and our new Revolving Credit Agreement restricts our operations.

As disclosed in Note 17 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of the Quarterly Report, we repaid our A&R Credit Agreement on June 30, 2021. Also as of June 30, 2021, we entered into the Debt Documents, including our new Revolving Credit agreement.

The Debt Documents contain certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The Debt Documents require the Company to comply with certain financial maintenance covenants, including a quarterly fixed charge coverage test, a quarterly senior net leverage ratio test, a non-guarantor cash repatriation covenant, a minimum liquidity covenant and an annual cap on maintenance capital expenditures. The Debt Documents also contains customary events of default (subject, in certain instances, to specified grace periods) including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal under the respective facility, the failure to comply with certain covenants and agreements specified in the applicable Debt Agreement, defaults in respect of certain other indebtedness, and certain events of insolvency. If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Debt Documents may become due and payable immediately.

Our ability to comply with the covenants, restrictions and specified financial ratios contained in the Debt Documents, including our Revolving Credit Agreement, may be affected by events beyond our control, including prevailing macroeconomic, financial and industry conditions, as well as the other risks discussed in this Quarterly Report. If market or other macroeconomic conditions deteriorate, or if we experience any of the other risks discussed in this Quarterly Report, our ability to comply with these covenants may be impaired. A breach of any of the covenants in our Debt Documents could result in an event of default under our Debt Documents, which would result in our inability to access our Revolving Credit Agreement for additional borrowings and letters of credit while any default exists. Upon the occurrence of such an event of default, all amounts outstanding under our Revolving Credit Agreement could also be declared to be immediately due and payable and all applicable commitments to extend further credit could be terminated. If indebtedness under our Revolving Credit Agreement is accelerated, there can be no assurance that we will have sufficient assets to repay the indebtedness. The operating and financial restrictions and covenants in our Debt Documents and any future financing agreements may adversely affect our ability to finance future operations or capital needs or to engage in other business activities.

48

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In accordance with the provisions of the employee benefit plans, the Company acquired the following shares in connection with the vesting of employee restricted stock that require us to withhold shares to satisfy employee statutory income tax withholding obligations. The following table identifies the number of common shares and average price per share for each month during the quarter ended June 30, 2021. The Company does not have a general share repurchase program at this time.

(data in whole amounts)
Period	Total number of shares acquired (1)	Average price 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
April 2021	—	$	—	—	$	—
May 2021	158	$	9.02	—	$	—
June 2021	—	$	—	—	$	—
Total	158	$	9.02	—	$	—

(1) Acquired shares are recorded in treasury stock in our Condensed Consolidated Balance Sheets.

Item 6. Exhibits

3.1	Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (File No. 001-36876)).
3.2	Certificate of Amendment of the Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on June 17, 2019 (File No. 001-36876)).
3.3	Certificate of Amendment of the Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 24, 2019 (File No. 001-36876)).
3.4	Amended and Restated Bylaws (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 (File No. 001-36876)).
3.5	Certificate of Designations with respect to the 7.75% Series A Cumulative Perpetual Preferred Stock, dated May 6, 2021, filed with the Secretary of State of Delaware and effective on May 6, 2021 (incorporated by reference to Exhibit 3.4 to the Babcock & Wilcox Enterprises, Inc. Form 8-A filed on May 7, 2021 (File No. 001-36876)).
3.6	Certificate of Increase in Number of Shares of 7.75% Series A Cumulative Perpetual Preferred Stock, dated June 1, 2021 (incorporated by reference to Exhibit 3.1 to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 4, 2021 (File No. 001-36876)).
4.1	Form of Certificate representing 7.75% Series A Cumulative Perpetual Preferred Stock ( incorporated by reference to Exhibit 4.1 to the Babcock & Wilcox Enterprises, Inc. Form 8-A filed on May 7, 2021 (File No. 001-36876)).
10.1	Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on May 26, 2021 (File No. 001-36876)).
10.2	Amendment No. 5 to Amended and Restated Credit Agreement dated May 10, 2021 (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on May 13, 2021 (File No. 001-36876)).
10.3	Revolving Credit, Guaranty and Security Agreement, dated as of June 30, 2021, by and among Babcock & Wilcox Enterprises, Inc. and PNC Bank, National Association, as administrative agent, lender and swing loan lender (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 7, 2021 (File No. 001-36876)).
10.4	Letter of Credit Issuance and Reimbursement and Guaranty Agreement, dated as of June 30, 2021, by and among Babcock & Wilcox Enterprises, Inc. and PNC Bank, National Association, as issuer (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 7, 2021 (File No. 001-36876))

49

10.5	Reimbursement, Guaranty and Security Agreement, dated as of June 30, 2021, by and among Babcock & Wilcox Enterprises, Inc. and MSD PCOF Partners XLV, LLC, as administrative agent (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 7, 2021 (File No. 001-36876)).
10.6	Guaranty Agreement, dated as of June 30, 2021, by B. Riley Financial, Inc. in favor of MSD PCOF Partners XLV, LLC, as administrative agent (incorporated by reference to the Babcock & Wilcox Enterprises, Inc. Current Report on Form 8-K filed on July 7, 2021 (File No. 001-36876)).
31.1	Rule 13a-14(a)/15d-14(a) certification of Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) certification of Chief Financial Officer.
32.1	Section 1350 certification of Chief Executive Officer.
32.2	Section 1350 certification of Chief Financial Officer.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (embedded within the inline XBRL document)

50

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		BABCOCK & WILCOX ENTERPRISES, INC.
August 12, 2021	By:	/s/ Louis Salamone
		Louis Salamone
		Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer and Duly Authorized Representative)

51

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Kenneth M. Young, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Babcock & Wilcox Enterprises, Inc.;

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)) 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 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.

Dated: August 12, 2021	/s/ Kenneth M. Young
	Kenneth M. Young
	Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Louis Salamone, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Babcock & Wilcox Enterprises, Inc.;

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)) 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 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.

Dated: August 12, 2021	/s/ Louis Salamone
	Louis Salamone
	Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

BABCOCK & WILCOX ENTERPRISES, INC.

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Kenneth M. Young, President and Chief Executive Officer of Babcock & Wilcox Enterprises, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

(1)the Company’s quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (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 B&W as of the dates and for the periods expressed in the Report.

Dated: August 12, 2021	/s/ Kenneth M. Young
	Kenneth M. Young
	Chairman and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

BABCOCK & WILCOX ENTERPRISES, INC.

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), I, Louis Salamone, Chief Financial Officer of Babcock & Wilcox Enterprises, Inc., a Delaware corporation (the “Company”), hereby certify, to my knowledge, that:

(1)the Company’s quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (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 B&W as of the dates and for the periods expressed in the Report.

Dated: August 12, 2021	/s/ Louis Salamone
	Louis Salamone
	Executive Vice President, Chief Financial Officer and Chief Accounting Officer (Principal Financial and Accounting Officer)

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 06, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-36876
Entity Registrant Name	BABCOCK & WILCOX ENTERPRISES, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-2783641
Entity Address, Address Line One	1200 East Market Street
Entity Address, Address Line Two	Suite 650
Entity Address, City or Town	Akron
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44305
City Area Code	(330)
Local Phone Number	753-4511
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		85,820,578
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001630805
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	BW
Security Exchange Name	NYSE
Senior notes 8.125% due 2026
Entity Information [Line Items]
Title of 12(b) Security	8.125% Senior Notes due 2026
Trading Symbol	BWSN
Security Exchange Name	NYSE
7.75% Series A Cumulative Perpetual Preferred Stock
Entity Information [Line Items]
Title of 12(b) Security	7.75% Series A Cumulative Perpetual Preferred Stock
Trading Symbol	BW PRA
Security Exchange Name	NYSE

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenues	$ 202,860,000	$ 135,397,000	$ 371,108,000	$ 283,951,000
Costs and expenses:
Cost of operations	158,799,000	102,907,000	290,184,000	217,535,000
Selling, general and administrative expenses	33,704,000	34,579,000	74,161,000	72,187,000
Advisory fees and settlement costs	4,526,000	1,989,000	7,817,000	6,228,000
Restructuring activities	2,400,000	2,392,000	3,393,000	4,343,000
Research and development costs	609,000	1,231,000	1,197,000	2,572,000
Loss (gain) on asset disposals, net	38,000	2,000	(1,966,000)	(913,000)
Total costs and expenses	200,076,000	143,100,000	374,786,000	301,952,000
Operating income (loss)	2,784,000	(7,703,000)	(3,678,000)	(18,001,000)
Other income (expense):
Interest expense	(8,021,000)	(15,482,000)	(22,244,000)	(37,573,000)
Interest income	146,000	223,000	255,000	263,000
Gain (loss) on debt extinguishment	6,530,000	(6,194,000)	6,530,000	(6,194,000)
(Loss) gain on sale of business	(2,598,000)	(108,000)	(2,240,000)	(108,000)
Benefit plans, net	5,924,000	7,450,000	15,022,000	14,986,000
Foreign exchange	1,826,000	7,112,000	617,000	(2,214,000)
Other – net	96,000	(2,586,000)	(182,000)	(2,792,000)
Total other income (expense)	3,903,000	(9,585,000)	(2,242,000)	(33,632,000)
Income (loss) before income tax expense	6,687,000	(17,288,000)	(5,920,000)	(51,633,000)
Income tax expense	3,546,000	845,000	6,382,000	35,000.0
Income (loss) from continuing operations	3,141,000	(18,133,000)	(12,302,000)	(51,668,000)
(Loss) income from discontinued operations, net of tax	0	(113,000)	0	1,800,000
Net income (loss)	3,141,000	(18,246,000)	(12,302,000)	(49,868,000)
Net (income) loss attributable to non-controlling interest	(15,000)	142,000	(36,000)	238,000
Net income (loss) attributable to stockholders	3,126,000	(18,104,000)	(12,338,000)	(49,630,000)
Less: Dividend on Series A preferred stock	(1,731,000)	0	(1,731,000)	0
Net income (loss) attributable to stockholders of common stock	$ 1,395,000	$ (18,104,000)	$ (14,069,000)	$ (49,630,000)
Basic earnings (loss) per share
Continuing operations (in dollars per share)	$ 0.02	$ (0.39)	$ (0.18)	$ (1.10)
Discontinued operations (in dollars per share)	0	0	0	0.04
Basic earnings (loss) per share (in dollars per share)	0.02	(0.39)	(0.18)	(1.06)
Diluted earnings (loss) per share
Continuing operations (in dollars per share)	0.02	(0.39)	(0.18)	(1.10)
Discontinued operations (in dollars per share)	0	0	0	0.04
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ (0.39)	$ (0.18)	$ (1.06)
Shares used in the computation of earnings (loss) per share:
Basic (in shares)	85,724	46,853	78,589	46,628
Diluted (in shares)	87,003	46,853	78,589	46,628

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,141	$ (18,246)	$ (12,302)	$ (49,868)
Other comprehensive income (loss):
Currency translation adjustments (CTA)	(1,478)	(4,095)	(1,548)	(1,715)
Reclassification of CTA to net loss	0	0	(4,512)	0
Benefit obligations:
Amortization of benefit plan benefits	198	(246)	396	(492)
Other comprehensive loss	(1,280)	(4,341)	(5,664)	(2,207)
Total comprehensive income (loss)	1,861	(22,587)	(17,966)	(52,075)
Comprehensive income attributable to non-controlling interest	(10)	105	(7)	259
Comprehensive income (loss) attributable to stockholders	$ 1,851	$ (22,482)	$ (17,973)	$ (51,816)

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Cash, cash equivalents and restricted cash	$ 143,598	$ 67,423
Accounts receivable – trade, net	132,341	128,317
Accounts receivable – other	34,622	35,442
Contracts in progress	63,937	59,308
Inventories	71,003	67,161
Other current assets	15,355	26,421
Current assets held for sale	0	4,728
Total current assets	460,856	388,800
Net property, plant and equipment, and finance lease	83,366	85,078
Goodwill	47,413	47,363
Intangible assets	21,652	23,908
Right-of-use assets	9,399	10,814
Other assets	40,688	24,673
Non-current assets held for sale	1,766	11,156
Total assets	665,140	591,792
Accounts payable	87,541	73,481
Accrued employee benefits	13,998	13,906
Advance billings on contracts	53,142	64,002
Accrued warranty expense	16,376	25,399
Operating lease liabilities	3,728	3,995
Other accrued liabilities	60,213	81,744
Loan payable	2,564	0
Current liabilities held for sale	0	8,305
Total current liabilities	237,562	270,832
Senior notes	168,357	0
Last out term loans	0	183,330
Revolving credit facilities	0	164,300
Pension and other accumulated postretirement benefit liabilities	213,042	252,292
Non-current finance lease liabilities	33,237	29,690
Non-current operating lease liabilities	5,888	7,031
Other non-current liabilities	22,773	22,579
Total liabilities	680,859	930,054
Commitments and contingencies
Stockholders' deficit:
Preferred stock, par value $0.01 per share, authorized shares of 20,000; issued and outstanding shares of 7,362 and 0 at June 30, 2021 and December 30, 2020, respectively	74	0
Common stock, par value $0.01 per share, authorized shares of 500,000; issued and outstanding shares of 85,729 and 54,452 at June 30, 2021 and December 31, 2020, respectively	5,103	4,784
Capital in excess of par value	1,509,697	1,164,436
Treasury stock at cost, 1,313 and 718 shares at June 30, 2021 and December 31, 2020, respectively	(109,301)	(105,990)
Accumulated deficit	(1,364,275)	(1,350,206)
Accumulated other comprehensive loss	(58,054)	(52,390)
Stockholders' deficit attributable to shareholders	(16,756)	(339,366)
Non-controlling interest	1,037	1,104
Total stockholders' deficit	(15,719)	(338,262)
Total liabilities and stockholders' deficit	$ 665,140	$ 591,792

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	20,000,000	20,000,000
Preferred stock, issued (in shares)	7,362,000	0
Preferred stock, outstanding (in shares)	7,362,000	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	85,729,000	54,452,000
Common stock, outstanding (in shares)	85,729,000	54,452,000
Treasury stock, at cost (in shares)	1,313,000	718,000

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CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Preferred Stock	Capital In Excess of Par Value	Treasury Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2019		46,374
Beginning balance at Dec. 31, 2019	$ (294,939)	$ 4,699		$ 1,142,614	$ (105,707)	$ (1,339,888)	$ 1,926	$ 1,417
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(31,622)					(31,526)		(96)
Currency translation adjustments	2,322						2,380	(58)
Defined benefit obligations	(246)						(246)
Stock-based compensation charges (in shares)		33
Stock-based compensation charges	871	$ 4		876	(9)
Dividends to non-controlling interest	(36)							(36)
Ending balance (in shares) at Mar. 31, 2020		46,407
Ending balance at Mar. 31, 2020	(323,650)	$ 4,703		1,143,490	(105,716)	(1,371,414)	4,060	1,227
Beginning balance (in shares) at Dec. 31, 2019		46,374
Beginning balance at Dec. 31, 2019	(294,939)	$ 4,699		1,142,614	(105,707)	(1,339,888)	1,926	1,417
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(49,868)
Ending balance (in shares) at Jun. 30, 2020		49,312
Ending balance at Jun. 30, 2020	(338,700)	$ 4,732		1,150,999	(105,717)	(1,389,518)	(281)	1,085
Beginning balance (in shares) at Mar. 31, 2020		46,407
Beginning balance at Mar. 31, 2020	(323,650)	$ 4,703		1,143,490	(105,716)	(1,371,414)	4,060	1,227
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(18,246)					(18,104)		(142)
Currency translation adjustments	(4,058)						(4,095)	37
Defined benefit obligations	(246)						(246)
Stock-based compensation charges	922			923	(1)
Dividends to non-controlling interest	(37)
Equitized guarantee fee payment (in shares)		1,713
Equitized guarantee fee payment	3,900	$ 17		3,883
Equitized Last Out Term Loan interest payment (in shares)		1,192
Equitized Last Out Term Loan interest payment	2,715	$ 12		2,703
Ending balance (in shares) at Jun. 30, 2020		49,312
Ending balance at Jun. 30, 2020	$ (338,700)	$ 4,732		1,150,999	(105,717)	(1,389,518)	(281)	1,085
Beginning balance (in shares) at Dec. 31, 2020	54,452	54,452	0
Beginning balance at Dec. 31, 2020	$ (338,262)	$ 4,784	$ 0	1,164,436	(105,990)	(1,350,206)	(52,390)	1,104
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(15,443)					(15,464)		21
Currency translation adjustments	(4,606)						(4,582)	(24)
Defined benefit obligations	198						198
Stock-based compensation charges (in shares)		1,725
Stock-based compensation charges	1,194	$ 22		4,480	(3,308)
Common stock offering, net (in shares)		29,487
Common stock offering, net	161,513	$ 295		161,218
Dividends to non-controlling interest	(38)							(38)
Ending balance (in shares) at Mar. 31, 2021		85,664	0
Ending balance at Mar. 31, 2021	$ (195,444)	$ 5,101	$ 0	1,330,134	(109,298)	(1,365,670)	(56,774)	1,063
Beginning balance (in shares) at Dec. 31, 2020	54,452	54,452	0
Beginning balance at Dec. 31, 2020	$ (338,262)	$ 4,784	$ 0	1,164,436	(105,990)	(1,350,206)	(52,390)	1,104
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ (12,302)
Ending balance (in shares) at Jun. 30, 2021	85,729	85,729	7,362
Ending balance at Jun. 30, 2021	$ (15,719)	$ 5,103	$ 74	1,509,697	(109,301)	(1,364,275)	(58,054)	1,037
Beginning balance (in shares) at Mar. 31, 2021		85,664	0
Beginning balance at Mar. 31, 2021	(195,444)	$ 5,101	$ 0	1,330,134	(109,298)	(1,365,670)	(56,774)	1,063
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	3,141					3,126		15
Currency translation adjustments	(1,483)						(1,478)	(5)
Defined benefit obligations	198						198
Stock-based compensation charges (in shares)		65
Stock-based compensation charges	1,200	$ 2		1,201	(3)
Common stock offering, net	(529)			(529)
Preferred stock offering, net (in shares)			4,445
Preferred stock offering, net	106,043		$ 45	105,998
Equitized Last Out Term Loan principal payment (in shares)			2,917
Equitized Last Out Term Loan principal payment	72,922		$ 29	72,893
Dividends to preferred stockholders	(1,731)					(1,731)
Dividends to non-controlling interest	$ (36)							(36)
Ending balance (in shares) at Jun. 30, 2021	85,729	85,729	7,362
Ending balance at Jun. 30, 2021	$ (15,719)	$ 5,103	$ 74	$ 1,509,697	$ (109,301)	$ (1,364,275)	$ (58,054)	$ 1,037

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (12,302)	$ (49,868)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of long-lived assets	8,379	8,239
Amortization of deferred financing costs, debt discount and payment-in-kind interest	6,464	14,785
Amortization of guaranty fee	908	236
Non-cash operating lease expense	2,238	2,403
(Gain) loss on sale of business	2,240	108
(Gain) loss on debt extinguishment	(6,530)	6,194
Gains on asset disposals	(1,966)	(913)
Provision for (benefit from) deferred income taxes, including valuation allowances	2,002	(793)
Prior service cost amortization for pension and postretirement plans	396	(492)
Stock-based compensation, net of associated income taxes	5,705	1,803
Foreign exchange	(617)	2,214
Changes in assets and liabilities:
Accounts receivable	(576)	36,105
Contracts in progress	(5,014)	6,847
Advance billings on contracts	(10,512)	(14,957)
Inventories	(4,821)	(570)
Income taxes	(1,961)	(3,141)
Accounts payable	10,227	(37,347)
Accrued and other current liabilities	(34,717)	15,277
Accrued contract loss	(261)	(4,432)
Pension liabilities, accrued postretirement benefits and employee benefits	(40,339)	(16,946)
Other, net	(5,018)	(14,074)
Net cash used in operating activities	(86,075)	(49,322)
Cash flows from investing activities:
Purchase of property, plant and equipment	(2,168)	(1,675)
Proceeds from sale of business and assets, net	7,170	8,773
Purchases of available-for-sale securities	(6,694)	(13,668)
Sales and maturities of available-for-sale securities	8,303	10,835
Net cash from investing activities	6,611	4,265
Cash flows from financing activities:
Issuance of senior notes, net	138,287	0
Borrowings on loan payable	2,566	0
Issuance of preferred stock, net	106,043	0
Payment of preferred stock dividends	(1,731)	0
Shares of common stock returned to treasury stock	(3,311)	(10)
Issuance of common stock, net	160,984	0
Debt issuance costs	(10,933)	(10,356)
Other, net	(908)	326
Net cash from financing activities	151,289	35,660
Effects of exchange rate changes on cash	4,350	572
Net increase (decrease) in cash, cash equivalents and restricted cash	76,175	(8,825)
Cash, cash equivalents and restricted cash, beginning of period	67,423	56,941
Cash, cash equivalents and restricted cash, end of period	143,598	48,116
Last Out Term Loans
Cash flows from financing activities:
Borrowings under credit facilities	0	60,000
Repayments of lines of credit	(75,408)	0
U.S. Revolving Credit Facility
Cash flows from financing activities:
Borrowings under credit facilities	14,500	94,200
Repayments of lines of credit	$ (178,800)	$ (108,500)

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

These interim Condensed Consolidated Financial Statements of Babcock & Wilcox Enterprises, Inc. (“B&W,” “management,” “we,” “us,” “our” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States and Securities and Exchange Commission (“SEC”) instructions for interim financial information, and should be read in conjunction with our Annual Report. We have included all adjustments, in the opinion of management, consisting only of normal, recurring adjustments, necessary for a fair presentation of the interim financial statements. We have eliminated all intercompany transactions and accounts. We present the notes to our Condensed Consolidated Financial Statements on the basis of continuing operations, unless otherwise stated.

COVID-19

In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China and subsequently spread globally. This global pandemic has disrupted business operations, trade, commerce, financial and credit markets, and daily life throughout the world. Our business has been, and continues to be, adversely impacted by the measures taken and restrictions imposed in the countries in which we operate and by local governments and others to control the spread of this virus. These measures and restrictions have varied widely and have been subject to significant changes from time to time depending on changes in the severity of the virus in these countries and localities. These restrictions, including curtailment of travel and other activity, negatively impact our ability to conduct business. The volatility and variability of the virus has limited our ability to forecast the impact of the virus on our customers and our business. The continuing resurgence of COVID-19, including new strains such as the delta variant, has resulted in the reimposition of certain restrictions and may lead to other restrictions being implemented in response to efforts to reduce the spread of the virus. These varying and changing events have caused many of the projects we had anticipated would begin in 2020 to be delayed into the second half of 2021 and beyond. Many customers and projects require B&W's employees to travel to customer and project worksites. Certain customers and significant projects are located in areas where travel restrictions have been imposed, certain customers have closed or reduced on-site activities, and timelines for completion of certain projects have, as noted above, been extended into the second half of 2021 and beyond. Additionally, out of concern for our employees, even where restrictions permit employees to return to our offices and worksites, we incurred additional costs to protect our employees and advised those who are uncomfortable returning to worksites due to the pandemic that they are not required to do so for an indefinite period of time. The resulting uncertainty concerning, among other things, the spread and economic impact of the virus has also caused significant volatility and, at times, illiquidity in global equity and credit markets. The full extent of the COVID-19 impact, including new strains such as the delta variant, that may arise along with the availability of vaccines and anti-vaccination attitudes of the public, that could negatively impact our evaluation on our operational and financial performance will depend on future developments, including the ultimate duration and spread of the pandemic and related actions taken by the U.S. government, state and local government officials, and international governments to prevent disease spread, as well as the availability and effectiveness of COVID-19 vaccinations in the U.S. and abroad, all of which are uncertain, out of our control, and cannot be predicted.

Beginning in April 2020 and continuing as of August 12, 2021, as part of the Company’s response to the impact of the COVID-19 pandemic on its business, the Company continues to take a number of cash conservation and cost reduction measures which include:

•suspension of our 401(k) company match for U.S. employees;

•utilizing options for government loans and programs in the U.S. and abroad that are appropriate and available; and

•deferring $20.9 million of the estimated Pension Plan contribution payments of $45.6 million that would have been due during 2021, in accordance with the American Rescue Plan Act of 2021 (the “ARPA relief plan”) signed into law in March 2021. In January 2021, we made Pension Plan contributions of $23.1 million, excluding interest.

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EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share of our common stock, net of non-controlling interest and dividends on preferred stock:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share amounts)	2021		2020		2021		2020
Income (loss) from continuing operations attributable to stockholders of common stock	$	1,395	$	(17,991)	$	(14,069)	$	(51,430)
Income (loss) from discontinued operations attributable to stockholders of common stock, net of tax	—		(113)		—		1,800
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)
Weighted average shares used to calculate basic earnings (loss) per share	85,724		46,853		78,589		46,628
Dilutive effect of stock options, restricted stock and performance units	1,279		—		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	87,003		46,853		78,589		46,628
Basic earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Basic earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)
Diluted earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Diluted earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)

Because we incurred a net loss in the six months ended June 30, 2021 and in the three and six months ended June 30, 2020, basic and diluted shares are the same.

If we had net income in the six months ended June 30, 2021, diluted shares would include an additional 1.4 million shares. If we had net income in the three and six months ended June 30, 2020, diluted shares would include an additional 33.3 thousand and 216.1 thousand shares, respectively.

We excluded 0.3 million and 1.5 million shares related to stock options from the diluted share calculation for the three months ended June 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive. We excluded 0.4 million and 1.7 million shares related to stock options from the diluted share calculation for the six months ended June 30, 2021 and 2020, respectively, because their effect would have been anti-dilutive.

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SEGMENT REPORTING

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

B&W’s innovative products and services are organized into three market-facing segments which changed in the third quarter of 2020 as part of the Company's strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders improved visibility into our renewable and environmental growth platforms. Segment results for all periods have been restated for comparative purposes. Our reportable segments are as follows:

•Babcock & Wilcox Renewable: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass energy and black liquor systems for the pulp and paper

industry. B&W’s leading technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications around the world. B&W’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.

•Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. B&W has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

Total revenues exclude revenues generated from sales to other segments. An analysis of our operations by segment is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Revenues:
B&W Renewable segment
B&W Renewable	$	24,701	$	27,066	$	42,698	$	49,404
Vølund	13,643		16,443		24,457		30,104
	38,344		43,509		67,155		79,508
B&W Environmental segment
B&W Environmental	10,995		10,513		28,428		23,448
SPIG	13,194		10,850		24,378		22,187
GMAB	4,169		3,809		6,712		5,457
	28,358		25,172		59,518		51,092
B&W Thermal segment
B&W Thermal	136,316		67,212		244,597		153,895
	136,316		67,212		244,597		153,895
Other	(158)		(496)		(162)		(544)
Total Revenues	$	202,860	$	135,397	$	371,108	$	283,951

The presentation of the components of our adjusted EBITDA in the table below is consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, net pension benefits, restructuring costs, impairments, gains and losses on debt extinguishment, costs related to financial consulting, research and development costs and other costs that may not be directly controllable by segment management are not allocated to the segments.

Adjusted EBITDA for each segment is presented below with a reconciliation to net income (loss) attributable to stockholders of common stock.

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Adjusted EBITDA (1)
B&W Renewable segment	$	3,427	$	(138)	$	3,631	$	(1,572)
B&W Environmental segment	2,698		(1,146)		3,799		(769)
B&W Thermal segment	12,431		8,018		22,861		15,592
Corporate	(2,997)		(3,805)		(5,682)		(7,948)
Research and development costs	(485)		(1,231)		(1,073)		(2,572)
	15,074		1,698		23,536		2,731
Restructuring activities	(2,400)		(2,392)		(3,393)		(4,343)
Financial advisory services	(1,299)		(582)		(2,232)		(1,511)
Advisory fees for settlement costs and liquidity planning	(2,059)		(1,155)		(4,037)		(3,769)
Litigation legal costs	(1,167)		(252)		(1,547)		(948)
Stock compensation	(51)		(1,187)		(7,880)		(1,899)
Interest on letters of credit included in cost of operations	(320)		(172)		(606)		(399)
Income (loss) from business held for sale	—		470		(483)		(318)
Depreciation & amortization	(4,321)		(4,032)		(8,379)		(8,240)
Contract asset amortization	(73)		—		(73)		—
ClimateBrightTM product development	(263)		—		(263)		—
Gain (loss) from a non-strategic business	(299)		(97)		(287)		(218)
Gain (loss) on asset disposals, net	(38)		(2)		1,966		913
Operating income (loss)	2,784		(7,703)		(3,678)		(18,001)
Interest expense, net	(7,875)		(15,259)		(21,989)		(37,310)
Gain (loss) on debt extinguishment	6,530		(6,194)		6,530		(6,194)
(Loss) gain on sale of business	(2,598)		(108)		(2,240)		(108)
Net pension benefit	5,924		7,450		15,022		14,986
Foreign exchange	1,826		7,112		617		(2,214)
Other – net	96		(2,586)		(182)		(2,792)
Total other income (expense)	3,903		(9,585)		(2,242)		(33,632)
Income (loss) before income tax expense	6,687		(17,288)		(5,920)		(51,633)
Income tax expense	3,546		845		6,382		35
Income (loss) from continuing operations	3,141		(18,133)		(12,302)		(51,668)
(Loss) income from discontinued operations, net of tax	—		(113)		—		1,800
Net income (loss)	3,141		(18,246)		(12,302)		(49,868)
Net (income) loss attributable to non-controlling interest	(15)		142		(36)		238
Net income (loss) attributable to stockholders	3,126		(18,104)		(12,338)		(49,630)
Less: Dividend on Series A preferred stock	1,731		—		1,731		—
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)

(1) Adjusted EBITDA for the three and six months ended June 30, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total $0.1 million and $0.2 million, respectively, and $0.2 million and $0.4 million, respectively.

We do not separately identify or report our assets by segment as our chief operating decision maker does not consider assets by segment to be a critical measure by which performance is measured.

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REVENUE RECOGNITION AND CONTRACTS

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION AND CONTRACTS

REVENUE RECOGNITION AND CONTRACTS

Revenue Recognition

A performance obligation is a contractual promise to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and is recognized as revenue when (point in time) or as (over time) the performance obligation is satisfied.

Revenue from goods and services transferred to customers at a point in time, which includes certain aftermarket parts and services, accounted for 18% and 31% for the three months ended June 30, 2021 and 2020, respectively, and 22% and 31% of our revenue for the six months ended June 30, 2021 and 2020, respectively. Revenue from products and services transferred to customers over time, which primarily relates to customized, engineered solutions and construction services, accounted for 82% and 69% for the three months ended June 30, 2021 and 2020, respectively, and 78% and 69% of our revenue for the six months ended June 30, 2021 and 2020, respectively.

Refer to Note 3 for our disaggregation of revenue by product line.

Contract Balances

The following represents the components of our contracts in progress and advance billings on contracts included in our Condensed Consolidated Balance Sheets:

(in thousands)	June 30, 2021		December 31, 2020		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	25,766	$	25,888	$	(122)	—	%
Revenues recognized less billings to customers	38,171		33,420		4,751		14	%
Contracts in progress	$	63,937	$	59,308	$	4,629	8	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	51,361	$	61,884	$	(10,523)	(17)	%
Costs of revenue recognized less cost incurred	1,781		2,118		(337)		(16)	%
Advance billings on contracts	$	53,142	$	64,002	$	(10,860)	(17)	%
Net contract balance	$	10,795	$	(4,694)	$	15,489	(330)	%
Accrued contract losses	$	321	$	582	$	(261)	(45)	%

Backlog

On June 30, 2021 we had $500.0 million of remaining performance obligations, which we also refer to as total backlog. We expect to recognize approximately 45.2%, 21.2% and 33.6% of our remaining performance obligations as revenue in the remainder of 2021, 2022 and thereafter, respectively.

Changes in Contract Estimates

In the three and six months ended June 30, 2021 and 2020, we recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Increases in gross profit for changes in estimates for over time contracts	$	2,314	$	4,037	$	5,339	$	7,561
Decreases in gross profit for changes in estimates for over time contracts	(3,137)		(5,102)		(4,495)		(5,288)
Net changes in gross profit for changes in estimates for over time contracts	$	(823)	$	(1,065)	$	844	$	2,273

B&W Renewable EPC Loss Contracts

We had six B&W Renewable EPC contracts for renewable energy facilities in Europe that were loss contracts at December 31, 2017. The scope of these EPC (Engineer, Procure and Construct) contracts extended beyond our core technology, products and services. In addition to these loss contracts, we have one remaining extended scope contract in our Babcock & Wilcox Renewable segment which turned into a loss contract in the fourth quarter of 2019.

Four of the six contracts were 100% complete and the remaining two contracts were nearly 100% complete at June 30, 2021, with only limited warranty obligations remaining, and all have been turned over to the customers. In the three months ended June 30, 2021 and 2020, we recorded $0.0 million and $0.4 million in net losses, respectively, and in the six months ended June 30, 2021 and 2020, we recorded $0.1 million in net gains and $0.3 million in net losses, respectively, inclusive of warranty expense as described in Note 10, resulting from changes in the estimated revenues and costs to complete those contracts. All liquidated damages associated with these six contracts have been settled and paid as of December 31, 2020.

In 2019, one of our other B&W Renewable energy contracts turned into a loss contract due to delays and other start-up costs prior to turnover to the client in October 2019. In the three and six months ended June 30, 2021 our estimated loss on the contract improved by $0.7 million, and in the three and six months ended June 30, 2020, we did not recognize additional charges on this contract. As of June 30, 2021, this contract was approximately 99% complete.

In September 2017, we identified the failure of a structural steel beam on a contact for a biomass plant in the United Kingdom, The engineering, design and manufacturing of the steel structure were the responsibility of our subcontractors. A similar design was also used on two other contracts, and although no structural failure occurred on these two other contracts, work was also stopped in certain restricted areas while we added reinforcement to the structures, which also resulted in delays. The total cost related to the structural steel issues on these three contracts was estimated to be approximately $36 million, which is included in the June 30, 2021 estimated losses at completion for these three contracts. We are continuing to aggressively pursue recovery of this cost from responsible subcontractors. In October 2020, we entered into a settlement agreement with an insurer under which we received a settlement of $26.0 million to settle claims in connection with five of six European B&W Renewable EPC loss contracts disclosed above.

The Company is continuing to pursue other additional potential claims where appropriate and available.

B&W Environmental Loss Contracts

At June 30, 2021, the B&W Environmental segment had two significant loss contracts, each of which are contracts for a dry cooling system for a gas-fired power plant in the United States. In the three and six months ended June 30, 2021 our estimated loss on these contracts improved by $0.4 million and in the three and six months ended June 30, 2020, we did not recognize additional charges on these contracts. As of June 30, 2021, both contracts were nearly 100% complete.

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INVENTORIES

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

The components of inventories are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials and supplies	$	47,482	$	46,659
Work in progress	7,364		8,195
Finished goods	16,157		12,307
Total inventories	$	71,003	$	67,161

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE

PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	June 30, 2021		December 31, 2020
Land	$	1,550	$	1,584
Buildings	34,096		34,207
Machinery and equipment	151,352		151,399
Property under construction	2,749		5,336
	189,747		192,526
Less accumulated depreciation	139,850		135,925
Net property, plant and equipment	49,897		56,601
Finance lease	37,142		30,551
Less finance lease accumulated amortization	3,673		2,074
Net property, plant and equipment, and finance lease	$	83,366	$	85,078

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GOODWILL

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

The following summarizes the changes in the net carrying amount of goodwill as of June 30, 2021:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2020	$	10,211	$	5,673	$	31,479	$	47,363
Currency translation adjustments	7		4		39		50
Balance at June 30, 2021	$	10,218	$	5,677	$	31,518	$	47,413

Goodwill is tested for impairment annually and when impairment indicators exist. No impairment indicators were identified during the three months ended June 30, 2021. Because the B&W Thermal, B&W Construction Co., LLC, B&W Renewable and B&W Environmental reporting units each had negative carrying values, reasonable changes in assumptions would not indicate impairment.

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INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

INTANGIBLE ASSETS

Our intangible assets are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Definite-lived intangible assets
Customer relationships	$	24,110	$	24,862
Unpatented technology	15,489		15,713
Patented technology	3,124		2,642
Tradename	12,879		13,088
All other	9,414		9,262
Gross value of definite-lived intangible assets	65,016		65,567
Customer relationships amortization	(20,047)		(19,537)
Unpatented technology amortization	(7,546)		(6,751)
Patented technology amortization	(2,662)		(2,593)
Tradename amortization	(5,133)		(4,831)
All other amortization	(9,281)		(9,252)
Accumulated amortization	(44,669)		(42,964)
Net definite-lived intangible assets	$	20,347	$	22,603
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	21,652	$	23,908

The following summarizes the changes in the carrying amount of intangible assets:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	23,908	$	25,300
Amortization expense	(1,705)		(1,716)
Currency translation adjustments	(551)		81
Balance at end of the period	$	21,652	$	23,665

Amortization of intangible assets is included in cost of operations and SG&A in our Condensed Consolidated Statement of Operations but is not allocated to segment results.

Estimated future intangible asset amortization expense is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2021	$	1,701
Year ending December 31, 2022	3,409
Year ending December 31, 2023	3,409
Year ending December 31, 2024	3,325
Year ending December 31, 2025	2,559
Year ending December 31, 2026	1,283
Thereafter	4,661

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LEASES

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

LEASES

LEASES

Certain real property assets for our Copley, Ohio location were sold on March 15, 2021, as described in Note 24. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033. The lease is classified as a finance lease with total future minimum payments during the initial term of the lease of approximately $5.7 million as of June 30, 2021. An incremental borrowing rate of 7.19% was used to determine the right-of-use (the "ROU") asset. We recorded a $3.6 million ROU asset in net property, plant and equipment, and finance lease and corresponding liabilities of $3.8 million in other accrued liabilities and other non-current finance liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2021.

The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows:

		Three months ended June 30,				Six months ended June 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease expense:
Operating lease expense	Selling, general and administrative expenses	$	1,308	$	1,389	$	2,647	$	2,896
Short-term lease expense	Selling, general and administrative expenses	1,486		292		2,641		480
Variable lease expense (1)	Selling, general and administrative expenses	471		(382)		679		394
Total operating lease expense		$	3,265	$	1,299	$	5,967	$	3,770
Finance lease expense:
Amortization of right-of-use assets	Selling, general and administrative expenses	$	1,069	$	514	$	1,598	$	1,029
Interest on lease liabilities	Interest expense	708		616		1,324		1,231
Total finance lease expense		$	1,777	$	1,130	$	2,922	$	2,260
Sublease income (2)	Other – net	$	(21)	$	(21)	$	(43)	$	(43)
Net lease cost		$	5,021	$	2,408	$	8,846	$	5,987

(1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases.

(2) Sublease income excludes rental income from owned properties, which is not material.

Other information related to leases is as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,674	$	2,743
Operating cash flows from finance leases	1,324		1,231
Financing cash flows from finance leases	834		(399)

(in thousands)	June 30, 2021			December 31, 2020
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1,281		$	2,629
Finance leases	$	6,589		$	146
Weighted-average remaining lease term:
Operating leases (in years)	2.8			3.1
Finance leases (in years)	12.5			13.9
Weighted-average discount rate:
Operating leases	9.11		%	9.26		%
Finance leases	7.88		%	8.00		%

Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items:

(in thousands)
Assets:	Classification	June 30, 2021		December 31, 2020
Operating lease assets	Right-of-use assets	$	9,399	$	10,814
Finance lease assets	Net property, plant and equipment, and finance lease	33,469		28,477
Total non-current lease assets		$	42,868	$	39,291
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	3,728	$	3,995
Finance lease liabilities	Other accrued liabilities	3,095		886
Non-current
Operating lease liabilities	Non-current operating lease liabilities	5,888		7,031
Finance lease liabilities	Non-current finance lease liabilities	33,237		29,690
Total lease liabilities		$	45,948	$	41,602

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

LEASES

LEASES

Certain real property assets for our Copley, Ohio location were sold on March 15, 2021, as described in Note 24. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033. The lease is classified as a finance lease with total future minimum payments during the initial term of the lease of approximately $5.7 million as of June 30, 2021. An incremental borrowing rate of 7.19% was used to determine the right-of-use (the "ROU") asset. We recorded a $3.6 million ROU asset in net property, plant and equipment, and finance lease and corresponding liabilities of $3.8 million in other accrued liabilities and other non-current finance liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2021.

The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows:

		Three months ended June 30,				Six months ended June 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease expense:
Operating lease expense	Selling, general and administrative expenses	$	1,308	$	1,389	$	2,647	$	2,896
Short-term lease expense	Selling, general and administrative expenses	1,486		292		2,641		480
Variable lease expense (1)	Selling, general and administrative expenses	471		(382)		679		394
Total operating lease expense		$	3,265	$	1,299	$	5,967	$	3,770
Finance lease expense:
Amortization of right-of-use assets	Selling, general and administrative expenses	$	1,069	$	514	$	1,598	$	1,029
Interest on lease liabilities	Interest expense	708		616		1,324		1,231
Total finance lease expense		$	1,777	$	1,130	$	2,922	$	2,260
Sublease income (2)	Other – net	$	(21)	$	(21)	$	(43)	$	(43)
Net lease cost		$	5,021	$	2,408	$	8,846	$	5,987

(1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases.

(2) Sublease income excludes rental income from owned properties, which is not material.

Other information related to leases is as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,674	$	2,743
Operating cash flows from finance leases	1,324		1,231
Financing cash flows from finance leases	834		(399)

(in thousands)	June 30, 2021			December 31, 2020
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1,281		$	2,629
Finance leases	$	6,589		$	146
Weighted-average remaining lease term:
Operating leases (in years)	2.8			3.1
Finance leases (in years)	12.5			13.9
Weighted-average discount rate:
Operating leases	9.11		%	9.26		%
Finance leases	7.88		%	8.00		%

Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items:

(in thousands)
Assets:	Classification	June 30, 2021		December 31, 2020
Operating lease assets	Right-of-use assets	$	9,399	$	10,814
Finance lease assets	Net property, plant and equipment, and finance lease	33,469		28,477
Total non-current lease assets		$	42,868	$	39,291
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	3,728	$	3,995
Finance lease liabilities	Other accrued liabilities	3,095		886
Non-current
Operating lease liabilities	Non-current operating lease liabilities	5,888		7,031
Finance lease liabilities	Non-current finance lease liabilities	33,237		29,690
Total lease liabilities		$	45,948	$	41,602

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

LEASES

LEASES

Certain real property assets for our Copley, Ohio location were sold on March 15, 2021, as described in Note 24. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033. The lease is classified as a finance lease with total future minimum payments during the initial term of the lease of approximately $5.7 million as of June 30, 2021. An incremental borrowing rate of 7.19% was used to determine the right-of-use (the "ROU") asset. We recorded a $3.6 million ROU asset in net property, plant and equipment, and finance lease and corresponding liabilities of $3.8 million in other accrued liabilities and other non-current finance liabilities in the Condensed Consolidated Balance Sheets as of June 30, 2021.

The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows:

		Three months ended June 30,				Six months ended June 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease expense:
Operating lease expense	Selling, general and administrative expenses	$	1,308	$	1,389	$	2,647	$	2,896
Short-term lease expense	Selling, general and administrative expenses	1,486		292		2,641		480
Variable lease expense (1)	Selling, general and administrative expenses	471		(382)		679		394
Total operating lease expense		$	3,265	$	1,299	$	5,967	$	3,770
Finance lease expense:
Amortization of right-of-use assets	Selling, general and administrative expenses	$	1,069	$	514	$	1,598	$	1,029
Interest on lease liabilities	Interest expense	708		616		1,324		1,231
Total finance lease expense		$	1,777	$	1,130	$	2,922	$	2,260
Sublease income (2)	Other – net	$	(21)	$	(21)	$	(43)	$	(43)
Net lease cost		$	5,021	$	2,408	$	8,846	$	5,987

(1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases.

(2) Sublease income excludes rental income from owned properties, which is not material.

Other information related to leases is as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,674	$	2,743
Operating cash flows from finance leases	1,324		1,231
Financing cash flows from finance leases	834		(399)

(in thousands)	June 30, 2021			December 31, 2020
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1,281		$	2,629
Finance leases	$	6,589		$	146
Weighted-average remaining lease term:
Operating leases (in years)	2.8			3.1
Finance leases (in years)	12.5			13.9
Weighted-average discount rate:
Operating leases	9.11		%	9.26		%
Finance leases	7.88		%	8.00		%

Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items:

(in thousands)
Assets:	Classification	June 30, 2021		December 31, 2020
Operating lease assets	Right-of-use assets	$	9,399	$	10,814
Finance lease assets	Net property, plant and equipment, and finance lease	33,469		28,477
Total non-current lease assets		$	42,868	$	39,291
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	3,728	$	3,995
Finance lease liabilities	Other accrued liabilities	3,095		886
Non-current
Operating lease liabilities	Non-current operating lease liabilities	5,888		7,031
Finance lease liabilities	Non-current finance lease liabilities	33,237		29,690
Total lease liabilities		$	45,948	$	41,602

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

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ACCRUED WARRANTY EXPENSE

6 Months Ended

Jun. 30, 2021

Product Warranties Disclosures [Abstract]

ACCRUED WARRANTY EXPENSE

ACCRUED WARRANTY EXPENSE

We may offer assurance type warranties on products and services we sell. Changes in the carrying amount of our accrued warranty expense are as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	25,399	$	33,376
Additions	3,608		2,063
Expirations and other changes	(4,309)		(1,584)
Payments	(8,576)		(5,410)
Translation and other	254		46
Balance at end of period	$	16,376	$	28,491

We accrue estimated expense included in cost of operations on our Condensed Consolidated Statements of Operations to satisfy contractual warranty requirements when we recognize the associated revenues on the related contracts, or in the case of a loss contract, the full amount of the estimated warranty costs is accrued when the contract becomes a loss contract. In addition, we record specific provisions or reductions where we expect the actual warranty costs to significantly differ from the accrued estimates. Such changes could have a material effect on our consolidated financial condition, results of operations and cash flows.

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RESTRUCTURING ACTIVITIES

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES

The Company incurred restructuring charges in the three months ended June 30, 2021 and 2020. The charges primarily consist of severance costs related to actions taken, including as part of the Company’s strategic, market-focused organizational and re-branding initiative. During 2020, these charges also include actions taken to address the impact of COVID-19 on our business.

The following table summarizes the restructuring activity incurred by segment:

	Three months ended June 30,						Three months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	557	$	466	$	91	$	951	$	155	$	796
B&W Environmental segment	209		172		37		237		154		83
B&W Thermal segment	1,542		1,035		507		948		303		645
Corporate	92		8		84		256		—		256
	$	2,400	$	1,681	$	719	$	2,392	$	612	$	1,780

	Six months ended June 30,						Six months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	1,066	$	919	$	147	$	1,752	$	813	$	939
B&W Environmental segment	298		207		91		377		211		166
B&W Thermal segment	1,890		1,047		843		1,889		689		1,200
Corporate	139		8		131		325		—		325
	$	3,393	$	2,181	$	1,212	$	4,343	$	1,713	$	2,630
Cumulative costs to date	$	43,707	35,394		8,313

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

Restructuring liabilities are included in other accrued liabilities on our Condensed Consolidated Balance Sheets. Activity related to the restructuring liabilities is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Balance at beginning of period	$	8,022	$	5,341	$	8,146	$	5,358
Restructuring expense	2,400		2,392		3,393		4,343
Payments	(2,477)		(2,646)		(3,594)		(4,614)
Balance at end of period	$	7,945	$	5,087	$	7,945	$	5,087

The payments shown above for the three months ended June 30, 2021 and 2020 relate primarily to severance. Accrued restructuring liabilities at June 30, 2021 and 2020 relate primarily to employee termination benefits.

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS

Components of net periodic benefit cost (benefit) included in net income (loss) are as follows:

	Pension Benefits								Other Benefits
	Three months ended June 30,				Six months ended June 30,				Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020		2021		2020		2021		2020
Interest cost	$	5,609	$	8,250	$	11,280	$	16,511	$	39	$	72	$	78	$	144
Expected return on plan assets	(11,773)		(15,544)		(26,782)		(31,185)		—		—		—		—
Amortization of prior service cost (credit)	28		43		56		86		173		(271)		346		(542)
Benefit plans, net (1)	(6,136)		(7,251)		(15,446)		(14,588)		212		(199)		424		(398)
Service cost included in COS (2)	218		209		435		420		6		4		12		9
Net periodic benefit cost (benefit)	$	(5,918)	$	(7,042)	$	(15,011)	$	(14,168)	$	218	$	(195)	$	436	$	(389)

(1)    Benefit plans, net, which is presented separately in the Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within cost of operations in the Condensed Consolidated Statement of Operations and is allocated to the B&W Thermal segment.

There were no mark-to-market adjustments for our pension and other postretirement benefit plans during the three and six months ended June 30, 2021 and 2020.

We made contributions to our pension and other postretirement benefit plans totaling $0.3 million and $24.3 million during the three and six months ended June 30, 2021, respectively, as compared to $0.6 million and $1.1 million during the three and six months ended June 30, 2020, respectively. Contributions made during the three months ended June 30, 2021 includes no interest and during the six months ended June 30, 2021 includes $0.4 million of interest as required per the CARES Act that was signed into law on March 27, 2020.

In accordance with the American Rescue Plan Act of 2021, we elected to defer $20.9 million of the estimated Pension Plan contribution payments of $45.6 million that would have been due during 2021.

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2021 SENIOR NOTES OFFERING

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

2021 SENIOR NOTES OFFERING

2021 SENIOR NOTES OFFERING

On February 12, 2021, we completed a public offering of $125.0 million aggregate principal amount of our 8.125% senior notes due 2026. At the completion of the offering, we received net proceeds of approximately $120.0 million after deducting underwriting discounts, commissions, and before expenses.

In addition to the public offering, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Last Out Term Loan Tranche A-3 in a concurrent private offering.

On March 31, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell to or through B. Riley Securities, Inc., from time to time, additional Senior Notes up to an aggregate principal amount of $150.0 million of Senior Notes. The Senior Notes have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Senior Notes issued February 12, 2021, as described above.

As of June 30, 2021, the Company has sold $12.9 million aggregate principal amount of Senior Notes under the sales agreement disclosed above for $13.1 million of net proceeds after commissions and fees.

Subsequent to June 30, 2021 and as of August 12, 2021, the Company has sold $12.7 million aggregate principal amount of Senior Notes under the March 31, 2021 sales agreement disclosed above for $12.9 million of net proceeds after commission and fees.

The components of the Senior Notes are as follows:

(in thousands)	June 30, 2021
8.125% Senior Notes due 2026	$	172,882
Unamortized deferred financing costs	(4,913)
Unamortized premium	388
Net debt balance	$	168,357

The Senior Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other existing and future senior unsecured and unsubordinated indebtedness. The Senior Notes bear interest at the rate of 8.125% per annum. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on April 30, 2021. The Senior Notes mature on February 28, 2026.

LAST OUT TERM LOANS

Effective with the new debt facilities the Company entered into on June 30, 2021, as described in Note 15 below, the Company has no remaining Last Out Term Loans and no further borrowings thereunder are available. At December 31, 2020, the components of our Last Out Term Loans by tranche were as follows:

	December 31, 2020
(in thousands)	A-3		A-4		A-6		Total
Proceeds (1)	$	101,660	$	30,000	$	40,000	$	171,660
Discount and fees	8,650		—		—		8,650
Paid-in-kind interest	3,020		—		—		3,020
Net debt balance	$	113,330	$	30,000	$	40,000	$	183,330

(1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment from the July 2019 Equitization Transactions.

On February 12, 2021, in connection with the Exchange described in Note 13, the interest rate on the remaining Last Out Term Loans were reduced to 6.625% from 12.0%. Interest expense associated with the Last Out Term Loans is detailed in Note 18. The Company recognized a loss on debt extinguishment of $6.2 million in the quarter ended June 30, 2020, primarily representing the unamortized value of the original issuance discount and fees on the Tranche A-3 Last Out Term Loan.

Tranche A-3

On March 4, 2021, we paid down an additional $40.0 million on our existing Tranche A-3. Also, as described in Note 16, on June 1, 2021, we issued 2,916,880 shares of the Company’s 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Tranche A-3 and paid $0.9 million in cash for accrued interest.

Tranche A-4

On January 31, 2020, we borrowed $30.0 million face value of the Tranche A-4 from B. Riley, a related party and received net proceeds of $26.3 million after incurring total fees of $3.7 million. On March 4, 2021, we paid down the $30.0 million outstanding on our existing Tranche A-4.

Tranche A-6

On May 14, 2020, we borrowed $30.0 million face value of the Tranche A-6 from B. Riley, a related party, as described in Note 15. On November 30, 2020, we borrowed an additional $10.0 million face value of the Tranche A-6 pursuant to the terms of the A&R Credit Agreement which required the proceeds to be applied as a permanent reduction of the U.S. Revolving Credit Facility.

As described in Note 13, on February 12, 2021, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Tranche A-6 as part of the Exchange. Also, on March 4, 2021, we paid down the remaining $5.0 million outstanding on our existing Tranche A-6.

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LAST OUT TERM LOANS

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

LAST OUT TERM LOANS

2021 SENIOR NOTES OFFERING

On February 12, 2021, we completed a public offering of $125.0 million aggregate principal amount of our 8.125% senior notes due 2026. At the completion of the offering, we received net proceeds of approximately $120.0 million after deducting underwriting discounts, commissions, and before expenses.

In addition to the public offering, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Last Out Term Loan Tranche A-3 in a concurrent private offering.

On March 31, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell to or through B. Riley Securities, Inc., from time to time, additional Senior Notes up to an aggregate principal amount of $150.0 million of Senior Notes. The Senior Notes have the same terms as (other than date of issuance), form a single series of debt securities with and have the same CUSIP number and be fungible with, the Senior Notes issued February 12, 2021, as described above.

As of June 30, 2021, the Company has sold $12.9 million aggregate principal amount of Senior Notes under the sales agreement disclosed above for $13.1 million of net proceeds after commissions and fees.

Subsequent to June 30, 2021 and as of August 12, 2021, the Company has sold $12.7 million aggregate principal amount of Senior Notes under the March 31, 2021 sales agreement disclosed above for $12.9 million of net proceeds after commission and fees.

The components of the Senior Notes are as follows:

(in thousands)	June 30, 2021
8.125% Senior Notes due 2026	$	172,882
Unamortized deferred financing costs	(4,913)
Unamortized premium	388
Net debt balance	$	168,357

The Senior Notes are senior unsecured obligations of the Company and rank equally in right of payment with all of the Company’s other existing and future senior unsecured and unsubordinated indebtedness. The Senior Notes bear interest at the rate of 8.125% per annum. Interest on the Senior Notes is payable quarterly in arrears on January 31, April 30, July 31 and October 31 of each year, commencing on April 30, 2021. The Senior Notes mature on February 28, 2026.

LAST OUT TERM LOANS

Effective with the new debt facilities the Company entered into on June 30, 2021, as described in Note 15 below, the Company has no remaining Last Out Term Loans and no further borrowings thereunder are available. At December 31, 2020, the components of our Last Out Term Loans by tranche were as follows:

	December 31, 2020
(in thousands)	A-3		A-4		A-6		Total
Proceeds (1)	$	101,660	$	30,000	$	40,000	$	171,660
Discount and fees	8,650		—		—		8,650
Paid-in-kind interest	3,020		—		—		3,020
Net debt balance	$	113,330	$	30,000	$	40,000	$	183,330

(1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment from the July 2019 Equitization Transactions.

On February 12, 2021, in connection with the Exchange described in Note 13, the interest rate on the remaining Last Out Term Loans were reduced to 6.625% from 12.0%. Interest expense associated with the Last Out Term Loans is detailed in Note 18. The Company recognized a loss on debt extinguishment of $6.2 million in the quarter ended June 30, 2020, primarily representing the unamortized value of the original issuance discount and fees on the Tranche A-3 Last Out Term Loan.

Tranche A-3

On March 4, 2021, we paid down an additional $40.0 million on our existing Tranche A-3. Also, as described in Note 16, on June 1, 2021, we issued 2,916,880 shares of the Company’s 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Tranche A-3 and paid $0.9 million in cash for accrued interest.

Tranche A-4

On January 31, 2020, we borrowed $30.0 million face value of the Tranche A-4 from B. Riley, a related party and received net proceeds of $26.3 million after incurring total fees of $3.7 million. On March 4, 2021, we paid down the $30.0 million outstanding on our existing Tranche A-4.

Tranche A-6

On May 14, 2020, we borrowed $30.0 million face value of the Tranche A-6 from B. Riley, a related party, as described in Note 15. On November 30, 2020, we borrowed an additional $10.0 million face value of the Tranche A-6 pursuant to the terms of the A&R Credit Agreement which required the proceeds to be applied as a permanent reduction of the U.S. Revolving Credit Facility.

As described in Note 13, on February 12, 2021, we issued $35.0 million of Senior Notes to B. Riley Financial, Inc. in exchange for a deemed prepayment of our existing Tranche A-6 as part of the Exchange. Also, on March 4, 2021, we paid down the remaining $5.0 million outstanding on our existing Tranche A-6.

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REVOLVING DEBT

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

REVOLVING DEBT

REVOLVING DEBT

Debt Facilities

On June 30, 2021, we entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”) with PNC Bank, National Association, as administrative agent (“PNC”) and a letter of credit agreement (the “Letter of Credit Agreement”) with PNC, pursuant to which PNC has agreed to issue up to $110 million in letters of credit that is secured in part by cash collateral provided by an affiliate of MSD Partners, MSD PCOF Partners XLV, LLC (“MSD”), as well as a reimbursement, guaranty and security agreement with MSD, as administrative agent, and the cash collateral providers from time to time party thereto, along with certain of our subsidiaries as guarantors, pursuant to which we are obligated to reimburse MSD and any other cash collateral provider to the extent the cash collateral provided by MSD and any other cash collateral provider to secure the Letter of Credit Agreement is drawn to satisfy draws on letters of credit (“Reimbursement Agreement” and collectively with the Revolving Credit Agreement and Letter of Credit Agreement, the “Debt Documents” and the facilities thereunder, the “Debt Facilities”). The obligations of the Company under each of the Debt Facilities are guaranteed by certain existing and future domestic and foreign subsidiaries of the Company. B. Riley Financial, Inc. (“B. Riley”), a related party, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as described below. The Company expects to use the proceeds and letter of credit availability under the Debt Facilities for working capital purposes and general corporate purposes, including to backstop certain letters of credit issued under our previous A&R Credit Agreement, dated as of May 14, 2020 (as amended, restated or otherwise modified from time to time), by and among the Company, as borrower, Bank of America, N.A., as administrative agent, the lenders and the other parties from time to time party thereto, which was repaid and commitments thereunder terminated as of June 30, 2021. The Revolving Credit Agreement matures on June 30, 2025.

Each of the Debt Facilities has a maturity date of June 30, 2025. The interest rates applicable under the Revolving Credit Agreement float at a rate per annum equal to either (i) a base rate plus 2.0% or (ii) 1 or 3 month reserve-adjusted LIBOR rate plus 3.0%. The interest rates applicable to the Reimbursement Agreement float at a rate per annum equal to either (i) a base rate plus 6.50% or (ii) 1 or 3 month reserve-adjusted LIBOR plus 7.50%. Under the Letter of Credit Agreement, the Company is required to pay letter of credit fees on outstanding letters of credit equal to (i) the applicable spread over LIBOR on the aggregate face amount of the letters of credit issued under the Revolving Credit Agreement, (ii) administrative fees of 0.75% and (iii) fronting fees of 0.25%. Under each of the Revolving Credit Agreement and the Letter of Credit Agreement, we are required to pay a facility fee equal to 0.375% per annum of the unused portion of the Revolving Credit Agreement or the Letter of Credit Agreement, respectively. The Company is permitted to prepay all or any portion of the loans under the Revolving Credit Agreement prior to maturity without premium or penalty. Prepayments under the Reimbursement Agreement shall be subject to a prepayment fee of 2.25% in the first year after closing, 2.0% in the second year after closing and 1.25% in the third year after closing, with no prepayment fee payable thereafter.

The Company has mandatory prepayment obligations under the Reimbursement Agreement upon the receipt of proceeds from certain dispositions or casualty or condemnation events. The Revolving Credit Agreement and Letter of Credit Agreement require mandatory prepayments to the extent of an over-advance.

The obligations under the Debt Facilities are secured by substantially all assets of the Company and each of the guarantors, in each case subject to inter-creditor arrangements. As noted above, the obligations under the Letter of Credit Facility are also secured by the cash collateral provided by MSD and any other cash collateral provider thereunder.

The Debt Documents contain certain representations and warranties, affirmative covenants, negative covenants and conditions that are customarily required for similar financings. The Debt Documents require the Company to comply with certain financial maintenance covenants, including a quarterly fixed charge coverage test of not less than 1.00 to 1.00, a quarterly senior net leverage ratio test of not greater than 2.50 to 1.00, a non-guarantor cash repatriation covenant not to exceed $35 million at any one time, a minimum liquidity covenant of at least $30.0 million at all times, and an annual cap on maintenance capital expenditures of $7.5 million. The Debt Documents also contain customary events of default (subject, in certain instances, to specified grace periods) including, but not limited to, the failure to make payments of interest or premium, if any, on, or principal under the respective facility, the failure to comply with certain covenants and agreements specified in the applicable Debt Agreement, defaults in respect of certain other indebtedness, and certain events of insolvency. If any event of default occurs, the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Debt Documents may become due and payable immediately.

In connection with the Company’s entry into the Debt Documents, on June 30, 2021, B. Riley, a related party, entered into a Guaranty Agreement in favor of MSD, in its capacity as administrative agent under the Reimbursement Agreement, for the ratable benefit of MSD, the cash collateral providers and each co-agent or sub-agent appointed by MSD from time to time (the “B. Riley Guaranty”). The B. Riley Guaranty provides for the guarantee of all of the Company’s obligations under the Reimbursement Agreement. The B. Riley Guaranty is enforceable in certain circumstances, including, among others, certain events of default and the acceleration of the Company’s obligations under the Reimbursement Agreement. Under a fee letter with B. Riley, the Company agreed to pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty. The Company entered into a reimbursement agreement with B. Riley governing the Company’s obligation to reimburse B. Riley to the extent the B. Riley Guaranty is called upon by the agent or lenders under the Reimbursement Agreement.

A&R Credit Agreement

As described above, the A&R Credit Agreement commitments were terminated, all loans were repaid and all outstanding and undrawn letters of credit were collateralized on June 30, 2021. The Company recognized a gain on debt extinguishment of $6.5 million in the quarter ended June 30, 2021, primarily representing the write-off of accrued revolver fees of $11.3 million offset by the unamortized deferred financing fees of $4.8 million related to the prior A&R Credit Agreement.

Letters of Credit, Bank Guarantees and Surety Bonds

Certain of our subsidiaries primarily outside of the United States have credit arrangements with various commercial banks and other financial institutions for the issuance of letters of credit and bank guarantees in association with contracting activity. The aggregate value of all such letters of credit and bank guarantees outstanding outside our prior A&R Credit Agreement as of June 30, 2021 was $57.3 million. The aggregate value of the outstanding letters of credit provided by our prior A&R Credit Agreement backstopping letters of credit or bank guarantees was $22.1 million as of June 30, 2021. Of the outstanding letters of credit issued under our prior A&R Credit Agreement, $32.1 million are subject to foreign currency revaluation. At June 30, 2021, usage under the prior A&R Credit Agreement consisted of $22.0 million of financial letters of credit and $79.7 million of performance letters of credit.

We have also posted surety bonds to support contractual obligations to customers relating to certain contracts. We utilize bonding facilities to support such obligations, but the issuance of bonds under those facilities is typically at the surety's discretion. These bonds generally indemnify customers should we fail to perform our obligations under the applicable contracts. We, and certain of our subsidiaries, have jointly executed general agreements of indemnity in favor of surety underwriters relating to surety bonds those underwriters issue in support of some of our contracting activity. As of June 30, 2021, bonds issued and outstanding under these arrangements in support of contracts totaled approximately $259.3 million. The aggregate value of the letters of credit provided by our prior A&R Credit Agreement backstopping surety bonds was $24.6 million.

Our ability to obtain and maintain sufficient capacity under our new Debt Facilities is essential to allow us to support the issuance of letters of credit, bank guarantees and surety bonds. Without sufficient capacity, our ability to support contract security requirements in the future will be diminished.

Other Indebtedness - Loan Payable

During the six months ended June 30, 2021, our Denmark subsidiary received two unsecured interest free loans totaling $2.6 million under a local government loan program related to COVID-19. The loans of $0.9 million and $1.7 million are payable in April 2022 and May 2022, respectively.

Subsequent to June 30, 2021, our Denmark subsidiary received an unsecured interest free loan totaling $0.9 million under a local government loan program related to COVID-19. The loan is payable in May 2023.

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PREFERRED STOCK

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

PREFERRED STOCK

PREFERRED STOCK

On May 7, 2021, we completed a public offering of our 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) dated May 4, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters (the “Underwriters”). At the closing, we issued to the public 4,000,000 shares of our Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $95.7 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by our Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

On May 26, 2021, we completed the additional sale of 444,700 shares of our Preferred Stock, related to the grant to the underwriters described above, at an offering price of $25.00 per share for net proceeds of approximately $10.7 million after deducting underwriting fees.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon our liquidation, dissolution or winding-up: (1) senior to all classes or series of our common stock and to all other capital stock issued by us expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of our capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of our capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all our existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. We will pay cumulative cash dividends on the Preferred Stock when, as and if declared by our Board of Directors (or a duly authorized committee of our Board of Directors), only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Series A Preferred Stock declared by our Board of Directors (or a duly authorized committee of our Board of Directors) will be payable quarterly in arrears on March 31, June 30, September 30 and December 31, beginning on June 30, 2021.

On June 8, 2021, the Company's Board of Directors approved a dividend of $0.290625 per share of the Company's outstanding Preferred Stock, with a record date for the dividend of June 18, 2021 and a payment date of June 30, 2021. On June 30, 2021, the Company paid dividends totaling $1.7 million. After the Company paid the dividends on June 30, 2021, there are no cumulative undeclared dividends of the Preferred Stock at June 30, 2021.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which we (i) issued B. Riley 2,916,880 shares of our Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of our then existing term loans with B. Riley under the Company’s A&R Credit Agreement.

On July 7, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer and to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock will have the same terms as (other than date of issuance and first dividend) with and have the same CUSIP number and be fungible with, the Preferred Stock issued during May 2021. The first dividend for the Preferred Stock issued thereunder, when, as and if declared, will accumulate and be cumulative from the dividend payment date (March 31, June 30, September 30 and December 31 of each year) for which full cumulative dividends have been paid immediately prior to the original issue date for each such share.

Subsequent to June 30, 2021 and as of August 12, 2021, the Company sold $5.9 million aggregate amount of Preferred Stock for $5.9 million net proceeds after commission and fees related to the July 7, 2021 sales agreement disclosed above.

The net proceeds of the offerings are intended to be used for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage.

COMMON STOCK

On February 12, 2021, we completed a public offering of our common stock pursuant to an underwriting agreement (the “Underwriting Agreement”) dated February 9, 2021, between us and B. Riley Securities, Inc., as representative of the several underwriters (the “Underwriters”). At the closing, we issued to the public 29,487,180 shares of our common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses.

The net proceeds of the offering were used to make a prepayment toward the balance outstanding under our U.S. Revolving Credit Facility and permanently reduce the commitments under our senior secured credit facilities.

On May 20, 2021, at the 2021 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The 2021 Plan became effective upon such stockholder approval. The maximum number of shares of the Company’s common stock (the “Common Stock”) that may be issued or transferred pursuant to awards under the 2021 Plan equals: (1) 1,250,000 shares, plus (2) the number of any shares subject to awards granted under the Company’s Amended and Restated 2015 Long-Term Incentive Plan (the “2015 Plan”) and outstanding as of May 20, 2021 which expire, or are terminated, surrendered, or forfeited for any reason without issuance of such shares (including for outstanding performance share awards to the extent they are earned at less than maximum). No new awards may be granted under the 2015 Plan. As of May 20, 2021 (immediately prior to the stockholder approval of the 2021 Plan), the total number of shares of Common Stock subject to outstanding awards granted under the 2015 Plan was 2,007,152 shares.

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COMMON STOCK

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

COMMON STOCK

PREFERRED STOCK

On May 7, 2021, we completed a public offering of our 7.75% Series A Cumulative Perpetual Preferred Stock (the "Preferred Stock") pursuant to an underwriting agreement (the “Underwriting Agreement”) dated May 4, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters (the “Underwriters”). At the closing, we issued to the public 4,000,000 shares of our Preferred Stock, at an offering price of $25.00 per share for net proceeds of approximately $95.7 million after deducting underwriting discounts, commissions but before expenses. The Preferred Stock has a par value of $0.01 per share and is perpetual and has no maturity date. The Preferred Stock has a cumulative cash dividend, when and as if declared by our Board of Directors, at a rate of 7.75% per year on the liquidation preference amount of $25.00 per share and payable quarterly in arrears.

On May 26, 2021, we completed the additional sale of 444,700 shares of our Preferred Stock, related to the grant to the underwriters described above, at an offering price of $25.00 per share for net proceeds of approximately $10.7 million after deducting underwriting fees.

The Preferred Stock ranks, as to dividend rights and rights as to the distribution of assets upon our liquidation, dissolution or winding-up: (1) senior to all classes or series of our common stock and to all other capital stock issued by us expressly designated as ranking junior to the Preferred Stock; (2) on parity with any future class or series of our capital stock expressly designated as ranking on parity with the Preferred Stock; (3) junior to any future class or series of our capital stock expressly designated as ranking senior to the Preferred Stock; and (4) junior to all our existing and future indebtedness.

The Preferred Stock has no stated maturity and is not subject to mandatory redemption or any sinking fund. We will pay cumulative cash dividends on the Preferred Stock when, as and if declared by our Board of Directors (or a duly authorized committee of our Board of Directors), only out of funds legally available for payment of dividends. Dividends on the Preferred Stock will accrue on the stated amount of $25.00 per share of the Preferred Stock at a rate per annum equal to 7.75% (equivalent to $1.9375 per year), payable quarterly in arrears. Dividends on the Series A Preferred Stock declared by our Board of Directors (or a duly authorized committee of our Board of Directors) will be payable quarterly in arrears on March 31, June 30, September 30 and December 31, beginning on June 30, 2021.

On June 8, 2021, the Company's Board of Directors approved a dividend of $0.290625 per share of the Company's outstanding Preferred Stock, with a record date for the dividend of June 18, 2021 and a payment date of June 30, 2021. On June 30, 2021, the Company paid dividends totaling $1.7 million. After the Company paid the dividends on June 30, 2021, there are no cumulative undeclared dividends of the Preferred Stock at June 30, 2021.

On June 1, 2021, the Company and B. Riley, a related party, entered into an agreement (the “Exchange Agreement”) pursuant to which we (i) issued B. Riley 2,916,880 shares of our Preferred Stock, representing an exchange price of $25.00 per share and paid $0.4 million in cash, and (ii) paid $0.9 million in cash to B. Riley for accrued interest due, in exchange for a deemed prepayment of $73.3 million of our then existing term loans with B. Riley under the Company’s A&R Credit Agreement.

On July 7, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in connection with the offer and to or through B. Riley Securities, Inc., from time to time, additional shares of Preferred Stock up to an aggregate amount of $76.0 million of Preferred Stock. The Preferred Stock will have the same terms as (other than date of issuance and first dividend) with and have the same CUSIP number and be fungible with, the Preferred Stock issued during May 2021. The first dividend for the Preferred Stock issued thereunder, when, as and if declared, will accumulate and be cumulative from the dividend payment date (March 31, June 30, September 30 and December 31 of each year) for which full cumulative dividends have been paid immediately prior to the original issue date for each such share.

Subsequent to June 30, 2021 and as of August 12, 2021, the Company sold $5.9 million aggregate amount of Preferred Stock for $5.9 million net proceeds after commission and fees related to the July 7, 2021 sales agreement disclosed above.

The net proceeds of the offerings are intended to be used for general corporate purposes, including clean energy growth initiatives, potential future acquisitions and reduction of net leverage.

COMMON STOCK

On February 12, 2021, we completed a public offering of our common stock pursuant to an underwriting agreement (the “Underwriting Agreement”) dated February 9, 2021, between us and B. Riley Securities, Inc., as representative of the several underwriters (the “Underwriters”). At the closing, we issued to the public 29,487,180 shares of our common stock and received net proceeds of approximately $163.0 million after deducting underwriting discounts and commissions, but before expenses.

The net proceeds of the offering were used to make a prepayment toward the balance outstanding under our U.S. Revolving Credit Facility and permanently reduce the commitments under our senior secured credit facilities.

On May 20, 2021, at the 2021 annual meeting of stockholders of the Company, the stockholders of the Company, upon the recommendation of the Company’s Board of Directors, approved the Babcock & Wilcox Enterprises, Inc. 2021 Long-Term Incentive Plan. The 2021 Plan became effective upon such stockholder approval. The maximum number of shares of the Company’s common stock (the “Common Stock”) that may be issued or transferred pursuant to awards under the 2021 Plan equals: (1) 1,250,000 shares, plus (2) the number of any shares subject to awards granted under the Company’s Amended and Restated 2015 Long-Term Incentive Plan (the “2015 Plan”) and outstanding as of May 20, 2021 which expire, or are terminated, surrendered, or forfeited for any reason without issuance of such shares (including for outstanding performance share awards to the extent they are earned at less than maximum). No new awards may be granted under the 2015 Plan. As of May 20, 2021 (immediately prior to the stockholder approval of the 2021 Plan), the total number of shares of Common Stock subject to outstanding awards granted under the 2015 Plan was 2,007,152 shares.

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jun. 30, 2021

Supplemental Cash Flow Information [Abstract]

INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION

Interest expense in our Condensed Consolidated Financial Statements consisted of the following components:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Components associated with borrowings from:
Senior Notes	$	3,459	$	—	$	5,192	$	—
Last Out Term Loans	837		4,828		4,349		8,875
U.S. Revolving Credit Facility	—		3,409		1,416		7,448
	4,296		8,237		10,957		16,323
Components associated with amortization or accretion of:
Senior Notes	298		—		1,766		—
Last Out Term Loans - discount and financing fees	—		1,579		—		3,729
U.S. Revolving Credit Facility - deferred financing fees and commitment fees	1,595		3,629		5,995		12,664
U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16	—		2		—		1,660
	1,893		5,210		7,761		18,053
Other interest expense	1,832		2,035		3,526		3,197
Total interest expense	$	8,021	$	15,482	$	22,244	$	37,573

The following table provides a reconciliation of cash and cash equivalents and restricted cash reporting that sum to the total cash amount in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows:

(in thousands)	June 30, 2021		December 31, 2020		June 30, 2020
Held by foreign entities	$	27,822	$	38,726	$	34,676
Held by U.S. entities	2,238		18,612		2,139
Cash and cash equivalents	30,060		57,338		36,815
Reinsurance reserve requirements	590		4,551		5,596
Restricted foreign accounts	—		2,869		2,661
Bank guarantee collateral	2,240		2,665		3,044
Letters of credit collateral	110,708		—		—
Restricted cash and cash equivalents	113,538		10,085		11,301
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows	$	143,598	$	67,423	$	48,116

As disclosed above, letters of credit collateral of $110.7 million as of June 30, 2021 represents cash pledged to secure the outstanding and undrawn letters of credit issued under our prior A&R Credit Agreement, most of which are expected to be cancelled and replaced by new letters of credit issued by PNC, as described in Note 15 – Revolving Debt. Subsequent to June 30, 2021 and as of August 12, 2021, we have issued $60.7 million of backstop letters of credit issued by PNC and reclassified this amount from restricted cash and cash equivalents to cash and cash equivalents. We expect to issue new PNC letters of credit to the beneficiaries such that the letters of credit issued under the prior A&R Credit Agreement will be cancelled along with the backstop letters of credit issued by PNC. Further, we expect the completion of the issuance of new letters of credit to cover the remaining collateral balance of $50.0 million by PNC by September 30, 2021 which will alleviate any restricted use of the letters of credit collateral amount by the Company.

The following cash activity is presented as a supplement to our Condensed Consolidated Statements of Cash Flows and is included in Net cash used in activities:

	Six months ended June 30,
(in thousands)	2021		2020
Income tax payments, net	$	3,331	$	1,438
Interest payments on our 8.125% Senior Notes due 2026	$	2,911	$	—
Interest payments on our U.S. Revolving Credit Facility	5,979		8,110
Interest payments on our Last Out Term Loans	6,140		6,140
Total cash paid for interest	$	15,030	$	14,250

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PROVISION FOR INCOME TAXES

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

PROVISION FOR INCOME TAXES

PROVISION FOR INCOME TAXES

In the three months ended June 30, 2021, income tax expense was $3.5 million, resulting in an effective tax rate of 53.0%. In the three months ended June 30, 2020, income tax expense was $0.8 million, with an effective tax rate of (4.9)%.

In the six months ended June 30, 2021, income tax expense was $6.4 million, resulting in an effective tax rate of (107.8)%. In the six months ended June 30, 2020, income tax expense was $35.0 thousand, resulting in an effective tax rate of (0.1)%.

Our effective tax rate for the three and six months ended June 30, 2021 and 2020 is not reflective of the U.S. statutory rate due to valuation allowances against certain net deferred tax assets and discrete items. We have unfavorable discrete items of`$0.9 million and $3.5 million for the three and six months ended June 30, 2021, respectively, which primarily represent withholding taxes and adjustment to our United Kingdom deferred tax liabilities due to an enacted change in tax rate. We had favorable discrete items of $1.8 million and $1.3 million for the three and six months ended June 30, 2020, respectively.

We are subject to federal income tax in the United States and numerous countries that have statutory tax rates different than the United States federal statutory rate of 21%. The most significant of these foreign operations are located in Canada, Denmark, Germany, Italy, Mexico, Sweden, and the United Kingdom, with effective tax rates ranging between approximately 19% and 30%. We provide for income taxes based on the tax laws and rates in the jurisdictions where we conduct operations. These jurisdictions may have regimes of taxation that vary in both nominal rates and the basis on which these rates are applied. Our consolidated effective income tax rate can vary from period to period due to these variations, changes in jurisdictional mix of our income, and valuation allowances.

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CONTINGENCIES

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

Litigation Relating to Boiler Installation and Supply Contract

On December 27, 2019, a complaint was filed against Babcock & Wilcox by P.H. Glatfelter Company (“Glatfelter”) in the United States District Court for the Middle District of Pennsylvania, Case No. 1:19-cv-02215-JPW, alleging claims of breach of contract, fraud, negligent misrepresentation, promissory estoppel and unjust enrichment (the “Glatfelter Litigation”). The complaint alleges damages in excess of $58.9 million. On March 16, 2020 we filed a motion to dismiss, and on December 14, 2020 the court issued its order dismissing the fraud and negligent misrepresentation claims and finding that, in the event that parties’ contract is found to be valid, Plaintiffs’ claims for damages will be subject to the contractual cap on liability (defined as the $11.7 million purchase price subject to certain adjustments). On January 11, 2021, we filed our answer and a counterclaim for breach of contract, seeking damages in excess of $2.9 million. We intend to continue to vigorously litigate the action. However, given the preliminary stage of the litigation, it is too early to determine if the outcome of the Glatfelter Litigation will have a material adverse impact on our condensed consolidated financial condition, results of operations or cash flows.

SEC Investigation

The U.S. SEC is conducting a formal investigation of the Company, focusing on the accounting charges and related matters involving the Company's B&W Renewable segment from 2015-2019. The SEC has served multiple subpoenas on the Company for documents. The Company is cooperating with the SEC related to the subpoenas and investigation. The SEC has taken testimony from past and current officers, directors, and employees in addition to also seeking testimony from certain third-parties. It is reasonably possible that the SEC may bring one or more claims against the Company and certain individuals. Due to the stage of the investigation, we are unable to estimate the amount of loss or range of potential loss of any claim. However, there can be no assurance that such claims will not have a material impact on the Company.

Stockholder Derivative and Class Action Litigation

On April 14, 2020, a putative B&W stockholder (“Plaintiff”) filed a derivative and class action complaint against certain of the Company’s directors (current and former), executives and significant stockholders (“Defendants”) and the Company (as a nominal defendant). The action was filed in the Delaware Court of Chancery and is captioned Parker v. Avril, et al., C.A. No. 2020-0280-PAF ("Stockholder Litigation"). Plaintiff alleges that Defendants, among other things, did not properly discharge their fiduciary duties in connection with the 2019 rights offering and related transactions. The case is currently in discovery. We believe that the outcome of the Stockholder Litigation will not have a material adverse impact on our condensed consolidated financial condition, results of operations or cash flows, net of any insurance coverage.

Other

Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities, including, among other things: performance or warranty-related matters under our customer and supplier contracts and other business arrangements; and workers' compensation, premises liability and other claims. Based on our prior experience, we do not expect that any of these other litigation proceedings, disputes and claims will have a material adverse effect on our condensed consolidated financial condition, results of operations or cash flows.

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COMPREHENSIVE INCOME

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

COMPREHENSIVE INCOME

COMPREHENSIVE INCOME

Gains and losses deferred in accumulated other comprehensive income (loss) ("AOCI") are generally reclassified and recognized in the Condensed Consolidated Statements of Operations once they are realized. The changes in the components of AOCI, net of tax, for the first two quarters of 2021 and 2020 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net income (loss)	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)

(in thousands)	Currency translation gain		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2019	$	5,743	$	(3,817)	$	1,926
Other comprehensive income before reclassifications	2,380		—		2,380
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive income (loss)	2,380		(246)		2,134
Balance at March 31, 2020	$	8,123	$	(4,063)	$	4,060
Other comprehensive loss before reclassifications	(4,095)		—		(4,095)
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive loss	(4,095)		(246)		(4,341)
Balance at June 30, 2020	$	4,028	$	(4,309)	$	(281)

The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three months ended June 30,				Six months ended June 30,
		2021		2020		2021		2020
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	4,512	$	—
Amortization of prior service cost on benefit obligations	Benefit plans, net	(198)		246		(396)		492
	Net (loss) income	$	(198)	$	246	$	4,116	$	492

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The following tables summarize our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	June 30, 2021		Level 1		Level 2
Corporate notes and bonds	$	7,919	$	7,919	$	—
Mutual funds	678		—		678
United States Government and agency securities	5,144		5,144		—
Total fair value of available-for-sale securities	$	13,741	$	13,063	$	678

(in thousands)
Available-for-sale securities	December 31, 2020		Level 1		Level 2
Corporate notes and bonds	$	6,139	$	6,139	$	—
Mutual funds	636		—		636
Corporate Stocks	4,168		4,168		—
United States Government and agency securities	4,365		4,365		—
Total fair value of available-for-sale securities	$	15,308	$	14,672	$	636

Available-For-Sale Securities

Our investments in available-for-sale securities are presented in other assets on our Condensed Consolidated Balance Sheets with contractual maturities ranging from 0-5 years.

Senior Notes

See Note 13 above for a discussion of our recent offerings of Senior Notes. The fair value of the Senior Notes is based on readily available quoted market prices as of June 30, 2021.

(in thousands)	June 30, 2021
Senior Notes	Carrying Value		Estimated Fair Value
8.125% Senior Notes due 2026 ('BWSN')	$	172,882	$	179,105

Other Financial Instruments

We used the following methods and assumptions in estimating our fair value disclosures for our other financial instruments:

•Cash and cash equivalents and restricted cash and cash equivalents. The carrying amounts that we have reported in the accompanying Condensed Consolidated Balance Sheets for cash and cash equivalents and restricted cash and cash equivalents approximate their fair values due to their highly liquid nature.

•Last Out Term Loans and Revolving Debt. We base the fair values of debt instruments on quoted market prices. Where quoted prices are not available, we base the fair values on Level 2 inputs such as the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms. The fair value of our Last Out Term Loans and Revolving Debt approximated their carrying value at December 31, 2020.

•Warrants. The fair value of the warrants was established using the Black-Scholes option pricing model value approach.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Transactions with B. Riley

Based on its Schedule 13D filings, B. Riley beneficially owns 33.1% of our outstanding common stock as of June 30, 2021.

B. Riley was party to the Last Out Term Loans under our A&R Credit Agreement described in Note 14.

We entered into an agreement with BRPI Executive Consulting, LLC, an affiliate of B. Riley, on November 19, 2018 and amended the agreement on November 9, 2020 to retain the services of Mr. Kenny Young, to serve as our Chief Executive Officer until December 31, 2023, unless terminated by either party with thirty days written notice. Under this agreement, payments are $0.75 million per annum, paid monthly. Subject to the achievement of certain performance objectives as determined by the Compensation Committee of the Board, a bonus or bonuses may also be earned and payable to BRPI Executive Consulting, LLC.

Total fees associated with B. Riley related to the Last Out Term Loans and services of Mr. Kenny Young, both as described above, were $0.2 million and $0.4 million for the three and six months ended June 30, 2021, respectively, and were $3.3 million and $7.5 million for the three and six months ended June 30, 2020, respectively.

On November 13, 2020 we entered into an agreement with B. Riley Principal Merger Corp. II, an affiliate of B. Riley, to purchase 200,000 shares of Class A common stock of Eos Energy Storage LLC for an aggregate purchase price of $2.0 million. The shares were sold in January 2021 for which the Company recognized net proceeds of $4.5 million.

The public offering of our Senior Notes in February 2021, as described in Note 13, was conducted pursuant to an underwriting agreement dated February 10, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on February 12, 2021, we paid B. Riley Securities, Inc. $5.2 million for underwriting fees and other transaction cost related to the Senior Notes offering.

The public offering of our common stock, as described in Note 17, was conducted pursuant to an underwriting agreement dated February 9, 2021, between us and B. Riley Securities, Inc., as representative of the several underwriters. Also on February 12, 2021, we paid B. Riley Securities, Inc. $9.5 million for underwriting fees and other transaction costs related to the offering.

On February 12, 2021, the Company and B. Riley entered into the Exchange Agreement pursuant to which we agreed to issue to B. Riley $35.0 million aggregate principal amount of Senior Notes in exchange for a deemed prepayment of $35.0 million of our existing Tranche A term loan with B. Riley Financial in the Exchange, as described in Note 13.

On March 31, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell, from time to time, up to an aggregated principal amount of $150.0 million of 8.125% senior notes due 2026 to or through B. Riley Securities, Inc., as described in Note 13. As of June 30, 2021, we paid B. Riley Securities, Inc. $0.3 million for underwriting fees and other transaction costs related to the offering.

The public offering of our 7.75% Series A Cumulative Perpetual Preferred Stock, as described in Note 16, was conducted pursuant to an underwriting agreement dated May 4, 2021, between us and B. Riley Securities, Inc., as representative of several underwriters. At the closing date on May 7, 2021, we paid B. Riley Securities, Inc. $4.3 million for underwriting fees and other transaction cost related to the Preferred Stock offering.

On May 26, 2021, we completed the additional sale of 444,700 shares of our Preferred Stock, related to the grant to the underwriters, as described in Note 16, and paid B. Riley Securities, Inc. $0.4 million for underwriting fees in conjunction with the transaction.

On June 1, 2021, we issued 2,916,880 shares of the Company’s 7.75% Series A Cumulative Perpetual Preferred Stock and paid $0.4 million in cash due to B. Riley, a related party, in exchange for a deemed prepayment of $73.3 million of our then existing Last Out Term Loans and paid $0.9 million in cash for accrued interest, as described in Note 16.

On June 30, 2021, we entered into new Debt Facilities, as described in Note 15. In connection with the Company’s entry into the Debt Facilities, B. Riley Financial, Inc., an affiliate of B. Riley, has provided a guaranty of payment with regard to the Company’s obligations under the Reimbursement Agreement, as describe in Note 15. Under a fee letter with B. Riley, the Company shall pay B. Riley $0.9 million per annum in connection with the B. Riley Guaranty.

Transactions with B. Riley - Subsequent Events

On July 7, 2021, we entered into a sales agreement with B. Riley Securities, Inc., a related party, in which we may sell, from time to time, up to an aggregated principal amount of $76 million of Preferred Stock to or through B. Riley Securities, Inc., as described in Note 16.

Transactions with Vintage Capital Management, LLC

On March 26, 2021, Vintage and B. Riley completed a transaction pursuant to which B. Riley agreed to purchase from Vintage, and Vintage agreed to sell to B. Riley, all 10,720,785 shares of our common stock owned by Vintage.

Based on its Schedule 13D filings, Vintage beneficially owns 0% of our outstanding common stock as of June 30, 2021.

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ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS

Assets Held for Sale

Certain real property assets for the Copley, Ohio location were sold on March 15, 2021 for $4.0 million. We received $3.3 million of net proceeds after adjustments and recognized a gain on sale of $1.9 million. In conjunction with the sale, we executed a leaseback agreement commencing March 16, 2021 and expiring on March 31, 2033.

In December 2019, we determined that a small business within the B&W Thermal segment met the criteria to be classified as held for sale. At December 31, 2020, the carrying value of the net assets planned to be sold approximated the estimated fair value less costs to sell. Refer to Divestitures below as this sale closed March 5, 2021.

In December 2020, we determined that certain real property assets within the B&W Thermal segment met the criteria to be classified as held for sale. At June 30, 2021, the carrying value of the assets held for sale of $1.8 million was lower than the estimated fair value less costs to sell.

The following table summarizes the carrying value of the assets and liabilities held for sale at June 30, 2021 and December 31, 2020:

(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable – trade, net	$	—	$	2,103
Accounts receivable – other	—		86
Contracts in progress	—		458
Inventories	—		1,676
Other current assets	—		405
Current assets held for sale	—		4,728
Net property, plant and equipment	1,766		10,365
Intangible assets	—		759
Right-of-use-asset	—		32
Non-current assets held for sale	1,766		11,156
Total assets held for sale	$	1,766	$	15,884
Accounts payable	$	—	$	5,211
Accrued employee benefits	—		178
Advance billings on contracts	—		370
Accrued warranty expense	—		466
Operating lease liabilities	—		32
Other accrued liabilities	—		2,048
Current liabilities held for sale	—		8,305
Total liabilities held for sale	$	—	$	8,305

Divestitures

Effective March 5, 2021, we sold all of the issued and outstanding capital stock of Diamond Power Machine (Hubei) Co., Inc, for $2.8 million. We received $2.0 million in gross proceeds before expenses and recorded an $0.8 million favorable contract asset for the amortization period from March 8, 2021 through December 31, 2023. We recognized a $0.4 million pre-tax gain, inclusive of the recognition of $4.5 million of currency translation adjustment, on the sale of the business in the three months ended March 31, 2021. For the three months ended June 30, 2021, we recorded an adjustment of $2.6 million related to certain working capital amounts that are in dispute. Additional adjustments may be necessary as this is finalized. For the six months ended June 30, 2021, the net pre-tax loss on the sale was $2.2 million.

On March 17, 2020, we fully settled the remaining escrow associated with the sale of PBRRC and received $4.5 million in cash.

Discontinued Operations

On April 6, 2020, we fully settled the remaining escrow associated with the sale of the MEGTEC and Universal businesses and received $3.5 million in cash.

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NEW ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS

We adopted the following accounting standard during the first six months of 2021:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing exceptions related to the incremental approach for intra-period tax allocation, certain deferred tax liabilities, and the general methodology for calculating income taxes in an interim period. The amendment also provides simplification related to accounting for franchise (or similar) tax, evaluating the tax basis step up of goodwill, allocation of consolidated current and deferred tax expense, reflection of the impact of enacted tax law or rate changes in annual effective tax rate calculations in the interim period that includes enactment date, and other minor codification improvements. The impact of this standard on our condensed consolidated financial statements was immaterial.

New accounting standards not yet adopted that could affect our Condensed Consolidated Financial Statements in the future are summarized as follows:

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Equity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The amendments in this update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Earnings Per Share (Topic 260). The amendments in this update do not apply to modifications or exchanges of financial instruments that are within the scope of another Topic. That is, accounting for those instruments continues to be subject to the requirements in other Topics. The amendments in this update do not affect a holder’s accounting for freestanding call options. The update is applicable to B&W as we have previously issued freestanding written call options however those options remain unexercised as of June 30, 2021 and they have not been modified or exchanged to date. The amendments are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In March 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This update is an amendment to ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform of Financial Reporting, which was issued in March 2020 and provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in the updates apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the updates do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in both updates are effective for all entities upon issuance and may be adopted any date on or after March 12, 2020 up to December 31, 2022. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The amendments in this update are effective for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after

December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of the standard on our condensed consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss (CECL) model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on our trade receivables, contracts in progress, and potentially our impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the impact of both standards on our condensed consolidated financial statements.

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NEW ACCOUNTING STANDARDS (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

New accounting standards

We adopted the following accounting standard during the first six months of 2021:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing exceptions related to the incremental approach for intra-period tax allocation, certain deferred tax liabilities, and the general methodology for calculating income taxes in an interim period. The amendment also provides simplification related to accounting for franchise (or similar) tax, evaluating the tax basis step up of goodwill, allocation of consolidated current and deferred tax expense, reflection of the impact of enacted tax law or rate changes in annual effective tax rate calculations in the interim period that includes enactment date, and other minor codification improvements. The impact of this standard on our condensed consolidated financial statements was immaterial.

New accounting standards not yet adopted that could affect our Condensed Consolidated Financial Statements in the future are summarized as follows:

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Equity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The amendments in this update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Earnings Per Share (Topic 260). The amendments in this update do not apply to modifications or exchanges of financial instruments that are within the scope of another Topic. That is, accounting for those instruments continues to be subject to the requirements in other Topics. The amendments in this update do not affect a holder’s accounting for freestanding call options. The update is applicable to B&W as we have previously issued freestanding written call options however those options remain unexercised as of June 30, 2021 and they have not been modified or exchanged to date. The amendments are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In March 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The amendments in this update clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This update is an amendment to ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform of Financial Reporting, which was issued in March 2020 and provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in the updates apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the updates do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in both updates are effective for all entities upon issuance and may be adopted any date on or after March 12, 2020 up to December 31, 2022. We are currently evaluating the impact of the standards on our condensed consolidated financial statements.

In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40). The amendments in this update simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity by removing major separation models required under current U.S. GAAP. The amendments also improve the consistency of diluted earnings per share calculations. The amendments in this update are effective for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after

December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact of the standard on our condensed consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326: Financial Instruments - Credit Losses. This update is an amendment to the new credit losses standard, ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, that was issued in June 2016 and clarifies that operating lease receivables are not within the scope of Topic 326. The new credit losses standard changes the accounting for credit losses for certain instruments. The new measurement approach is based on expected losses, commonly referred to as the current expected credit loss (CECL) model, and applies to financial assets measured at amortized cost, including loans, held-to-maturity debt securities, net investment in leases, and reinsurance and trade receivables, as well as certain off-balance sheet credit exposures, such as loan commitments. The standard also changes the impairment model for available-for-sale debt securities. The provisions of this standard will primarily impact the allowance for doubtful accounts on our trade receivables, contracts in progress, and potentially our impairment model for available-for-sale debt securities (to the extent we have any upon adoption). For public, smaller reporting companies, this standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the impact of both standards on our condensed consolidated financial statements.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share of our common stock, net of non-controlling interest and dividends on preferred stock:

	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share amounts)	2021		2020		2021		2020
Income (loss) from continuing operations attributable to stockholders of common stock	$	1,395	$	(17,991)	$	(14,069)	$	(51,430)
Income (loss) from discontinued operations attributable to stockholders of common stock, net of tax	—		(113)		—		1,800
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)
Weighted average shares used to calculate basic earnings (loss) per share	85,724		46,853		78,589		46,628
Dilutive effect of stock options, restricted stock and performance units	1,279		—		—		—
Weighted average shares used to calculate diluted earnings (loss) per share	87,003		46,853		78,589		46,628
Basic earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Basic earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)
Diluted earnings (loss) per share
Continuing operations	$	0.02	$	(0.39)	$	(0.18)	$	(1.10)
Discontinued operations	—		—		—		0.04
Diluted earnings (loss) per share	$	0.02	$	(0.39)	$	(0.18)	$	(1.06)

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SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

An analysis of our operations by segment is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Revenues:
B&W Renewable segment
B&W Renewable	$	24,701	$	27,066	$	42,698	$	49,404
Vølund	13,643		16,443		24,457		30,104
	38,344		43,509		67,155		79,508
B&W Environmental segment
B&W Environmental	10,995		10,513		28,428		23,448
SPIG	13,194		10,850		24,378		22,187
GMAB	4,169		3,809		6,712		5,457
	28,358		25,172		59,518		51,092
B&W Thermal segment
B&W Thermal	136,316		67,212		244,597		153,895
	136,316		67,212		244,597		153,895
Other	(158)		(496)		(162)		(544)
Total Revenues	$	202,860	$	135,397	$	371,108	$	283,951

Adjusted EBITDA for each segment is presented below with a reconciliation to net income (loss) attributable to stockholders of common stock.

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Adjusted EBITDA (1)
B&W Renewable segment	$	3,427	$	(138)	$	3,631	$	(1,572)
B&W Environmental segment	2,698		(1,146)		3,799		(769)
B&W Thermal segment	12,431		8,018		22,861		15,592
Corporate	(2,997)		(3,805)		(5,682)		(7,948)
Research and development costs	(485)		(1,231)		(1,073)		(2,572)
	15,074		1,698		23,536		2,731
Restructuring activities	(2,400)		(2,392)		(3,393)		(4,343)
Financial advisory services	(1,299)		(582)		(2,232)		(1,511)
Advisory fees for settlement costs and liquidity planning	(2,059)		(1,155)		(4,037)		(3,769)
Litigation legal costs	(1,167)		(252)		(1,547)		(948)
Stock compensation	(51)		(1,187)		(7,880)		(1,899)
Interest on letters of credit included in cost of operations	(320)		(172)		(606)		(399)
Income (loss) from business held for sale	—		470		(483)		(318)
Depreciation & amortization	(4,321)		(4,032)		(8,379)		(8,240)
Contract asset amortization	(73)		—		(73)		—
ClimateBrightTM product development	(263)		—		(263)		—
Gain (loss) from a non-strategic business	(299)		(97)		(287)		(218)
Gain (loss) on asset disposals, net	(38)		(2)		1,966		913
Operating income (loss)	2,784		(7,703)		(3,678)		(18,001)
Interest expense, net	(7,875)		(15,259)		(21,989)		(37,310)
Gain (loss) on debt extinguishment	6,530		(6,194)		6,530		(6,194)
(Loss) gain on sale of business	(2,598)		(108)		(2,240)		(108)
Net pension benefit	5,924		7,450		15,022		14,986
Foreign exchange	1,826		7,112		617		(2,214)
Other – net	96		(2,586)		(182)		(2,792)
Total other income (expense)	3,903		(9,585)		(2,242)		(33,632)
Income (loss) before income tax expense	6,687		(17,288)		(5,920)		(51,633)
Income tax expense	3,546		845		6,382		35
Income (loss) from continuing operations	3,141		(18,133)		(12,302)		(51,668)
(Loss) income from discontinued operations, net of tax	—		(113)		—		1,800
Net income (loss)	3,141		(18,246)		(12,302)		(49,868)
Net (income) loss attributable to non-controlling interest	(15)		142		(36)		238
Net income (loss) attributable to stockholders	3,126		(18,104)		(12,338)		(49,630)
Less: Dividend on Series A preferred stock	1,731		—		1,731		—
Net income (loss) attributable to stockholders of common stock	$	1,395	$	(18,104)	$	(14,069)	$	(49,630)

(1) Adjusted EBITDA for the three and six months ended June 30, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total $0.1 million and $0.2 million, respectively, and $0.2 million and $0.4 million, respectively.

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REVENUE RECOGNITION AND CONTRACTS (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Contracts in Progress and Advance Billings on Contracts

The following represents the components of our contracts in progress and advance billings on contracts included in our Condensed Consolidated Balance Sheets:

(in thousands)	June 30, 2021		December 31, 2020		$ Change		% Change
Contract assets - included in contracts in progress:
Costs incurred less costs of revenue recognized	$	25,766	$	25,888	$	(122)	—	%
Revenues recognized less billings to customers	38,171		33,420		4,751		14	%
Contracts in progress	$	63,937	$	59,308	$	4,629	8	%
Contract liabilities - included in advance billings on contracts:
Billings to customers less revenues recognized	$	51,361	$	61,884	$	(10,523)	(17)	%
Costs of revenue recognized less cost incurred	1,781		2,118		(337)		(16)	%
Advance billings on contracts	$	53,142	$	64,002	$	(10,860)	(17)	%
Net contract balance	$	10,795	$	(4,694)	$	15,489	(330)	%
Accrued contract losses	$	321	$	582	$	(261)	(45)	%

Schedule of Recognized Changes in Estimated Gross Profit

In the three and six months ended June 30, 2021 and 2020, we recognized changes in estimated gross profit related to long-term contracts accounted for on the over time basis, which are summarized as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Increases in gross profit for changes in estimates for over time contracts	$	2,314	$	4,037	$	5,339	$	7,561
Decreases in gross profit for changes in estimates for over time contracts	(3,137)		(5,102)		(4,495)		(5,288)
Net changes in gross profit for changes in estimates for over time contracts	$	(823)	$	(1,065)	$	844	$	2,273

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INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

The components of inventories are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Raw materials and supplies	$	47,482	$	46,659
Work in progress	7,364		8,195
Finished goods	16,157		12,307
Total inventories	$	71,003	$	67,161

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment and Finance Lease

Property, plant and equipment less accumulated depreciation is as follows:

(in thousands)	June 30, 2021		December 31, 2020
Land	$	1,550	$	1,584
Buildings	34,096		34,207
Machinery and equipment	151,352		151,399
Property under construction	2,749		5,336
	189,747		192,526
Less accumulated depreciation	139,850		135,925
Net property, plant and equipment	49,897		56,601
Finance lease	37,142		30,551
Less finance lease accumulated amortization	3,673		2,074
Net property, plant and equipment, and finance lease	$	83,366	$	85,078

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GOODWILL (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following summarizes the changes in the net carrying amount of goodwill as of June 30, 2021:

(in thousands)	B&W Renewable		B&W Environmental		B&W Thermal		Total
Balance at December 31, 2020	$	10,211	$	5,673	$	31,479	$	47,363
Currency translation adjustments	7		4		39		50
Balance at June 30, 2021	$	10,218	$	5,677	$	31,518	$	47,413

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INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Our intangible assets are as follows:

(in thousands)	June 30, 2021		December 31, 2020
Definite-lived intangible assets
Customer relationships	$	24,110	$	24,862
Unpatented technology	15,489		15,713
Patented technology	3,124		2,642
Tradename	12,879		13,088
All other	9,414		9,262
Gross value of definite-lived intangible assets	65,016		65,567
Customer relationships amortization	(20,047)		(19,537)
Unpatented technology amortization	(7,546)		(6,751)
Patented technology amortization	(2,662)		(2,593)
Tradename amortization	(5,133)		(4,831)
All other amortization	(9,281)		(9,252)
Accumulated amortization	(44,669)		(42,964)
Net definite-lived intangible assets	$	20,347	$	22,603
Indefinite-lived intangible assets
Trademarks and trade names	$	1,305	$	1,305
Total intangible assets, net	$	21,652	$	23,908

Schedule of Finite-Lived Intangible Assets

The following summarizes the changes in the carrying amount of intangible assets:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	23,908	$	25,300
Amortization expense	(1,705)		(1,716)
Currency translation adjustments	(551)		81
Balance at end of the period	$	21,652	$	23,665

Schedule of Indefinite-Lived Intangible Assets

The following summarizes the changes in the carrying amount of intangible assets:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	23,908	$	25,300
Amortization expense	(1,705)		(1,716)
Currency translation adjustments	(551)		81
Balance at end of the period	$	21,652	$	23,665

Schedule of Estimated Future Intangible Asset Amortization Expense

Estimated future intangible asset amortization expense is as follows (in thousands):

	Amortization Expense
Year ending December 31, 2021	$	1,701
Year ending December 31, 2022	3,409
Year ending December 31, 2023	3,409
Year ending December 31, 2024	3,325
Year ending December 31, 2025	2,559
Year ending December 31, 2026	1,283
Thereafter	4,661

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LEASES (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Components of Lease Cost

The components of lease expense included on our Condensed Consolidated Statements of Operations were as follows:

		Three months ended June 30,				Six months ended June 30,
(in thousands)	Classification	2021		2020		2021		2020
Operating lease expense:
Operating lease expense	Selling, general and administrative expenses	$	1,308	$	1,389	$	2,647	$	2,896
Short-term lease expense	Selling, general and administrative expenses	1,486		292		2,641		480
Variable lease expense (1)	Selling, general and administrative expenses	471		(382)		679		394
Total operating lease expense		$	3,265	$	1,299	$	5,967	$	3,770
Finance lease expense:
Amortization of right-of-use assets	Selling, general and administrative expenses	$	1,069	$	514	$	1,598	$	1,029
Interest on lease liabilities	Interest expense	708		616		1,324		1,231
Total finance lease expense		$	1,777	$	1,130	$	2,922	$	2,260
Sublease income (2)	Other – net	$	(21)	$	(21)	$	(43)	$	(43)
Net lease cost		$	5,021	$	2,408	$	8,846	$	5,987

(1) Variable lease expense primarily consists of common area maintenance expenses paid directly to lessors of real estate leases.

(2) Sublease income excludes rental income from owned properties, which is not material.

Other information related to leases is as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,674	$	2,743
Operating cash flows from finance leases	1,324		1,231
Financing cash flows from finance leases	834		(399)

(in thousands)	June 30, 2021			December 31, 2020
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1,281		$	2,629
Finance leases	$	6,589		$	146
Weighted-average remaining lease term:
Operating leases (in years)	2.8			3.1
Finance leases (in years)	12.5			13.9
Weighted-average discount rate:
Operating leases	9.11		%	9.26		%
Finance leases	7.88		%	8.00		%

Supplemental Balance Sheet Information

Amounts relating to leases were presented on our Condensed Consolidated Balance Sheets in the following line items:

(in thousands)
Assets:	Classification	June 30, 2021		December 31, 2020
Operating lease assets	Right-of-use assets	$	9,399	$	10,814
Finance lease assets	Net property, plant and equipment, and finance lease	33,469		28,477
Total non-current lease assets		$	42,868	$	39,291
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	3,728	$	3,995
Finance lease liabilities	Other accrued liabilities	3,095		886
Non-current
Operating lease liabilities	Non-current operating lease liabilities	5,888		7,031
Finance lease liabilities	Non-current finance lease liabilities	33,237		29,690
Total lease liabilities		$	45,948	$	41,602

Finance Lease Maturity

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

Operating Lease Maturity

Future minimum lease payments required under non-cancellable leases as of June 30, 2021 were as follows:

(in thousands)	Operating Leases		Finance Leases		Total
2021 (excluding the six months ended June 30, 2021)	$	2,410	$	2,860	$	5,270
2022	3,864		5,233		9,097
2023	2,572		3,879		6,451
2024	1,468		3,944		5,412
2025	411		3,969		4,380
Thereafter	7		38,412		38,419
Total	$	10,732	$	58,297	$	69,029
Less imputed interest	(1,116)		(21,965)		(23,081)
Lease liability	$	9,616	$	36,332	$	45,948

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ACCRUED WARRANTY EXPENSE (Tables)

6 Months Ended

Jun. 30, 2021

Product Warranties Disclosures [Abstract]

Schedule of Changes in Carrying Amount of Accrued Warranty Expense

Changes in the carrying amount of our accrued warranty expense are as follows:

	Six months ended June 30,
(in thousands)	2021		2020
Balance at beginning of period	$	25,399	$	33,376
Additions	3,608		2,063
Expirations and other changes	(4,309)		(1,584)
Payments	(8,576)		(5,410)
Translation and other	254		46
Balance at end of period	$	16,376	$	28,491

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RESTRUCTURING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Summary of Restructuring Activity

The following table summarizes the restructuring activity incurred by segment:

	Three months ended June 30,						Three months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	557	$	466	$	91	$	951	$	155	$	796
B&W Environmental segment	209		172		37		237		154		83
B&W Thermal segment	1,542		1,035		507		948		303		645
Corporate	92		8		84		256		—		256
	$	2,400	$	1,681	$	719	$	2,392	$	612	$	1,780

	Six months ended June 30,						Six months ended June 30,
	2021						2020
(in thousands)	Total		Severance and related costs		Other (1)		Total		Severance and related costs		Other (1)
B&W Renewable segment	$	1,066	$	919	$	147	$	1,752	$	813	$	939
B&W Environmental segment	298		207		91		377		211		166
B&W Thermal segment	1,890		1,047		843		1,889		689		1,200
Corporate	139		8		131		325		—		325
	$	3,393	$	2,181	$	1,212	$	4,343	$	1,713	$	2,630
Cumulative costs to date	$	43,707	35,394		8,313

(1) Other amounts consist primarily of exit, relocation, COVID-19 related and other costs.

Activity Related to the Restructuring Liabilities

Activity related to the restructuring liabilities is as follows:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Balance at beginning of period	$	8,022	$	5,341	$	8,146	$	5,358
Restructuring expense	2,400		2,392		3,393		4,343
Payments	(2,477)		(2,646)		(3,594)		(4,614)
Balance at end of period	$	7,945	$	5,087	$	7,945	$	5,087

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)

6 Months Ended

Jun. 30, 2021

Retirement Benefits [Abstract]

Schedule of Net Benefit Costs

Components of net periodic benefit cost (benefit) included in net income (loss) are as follows:

	Pension Benefits								Other Benefits
	Three months ended June 30,				Six months ended June 30,				Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020		2021		2020		2021		2020
Interest cost	$	5,609	$	8,250	$	11,280	$	16,511	$	39	$	72	$	78	$	144
Expected return on plan assets	(11,773)		(15,544)		(26,782)		(31,185)		—		—		—		—
Amortization of prior service cost (credit)	28		43		56		86		173		(271)		346		(542)
Benefit plans, net (1)	(6,136)		(7,251)		(15,446)		(14,588)		212		(199)		424		(398)
Service cost included in COS (2)	218		209		435		420		6		4		12		9
Net periodic benefit cost (benefit)	$	(5,918)	$	(7,042)	$	(15,011)	$	(14,168)	$	218	$	(195)	$	436	$	(389)

(1)    Benefit plans, net, which is presented separately in the Condensed Consolidated Statements of Operations, is not allocated to the segments.

(2)    Service cost related to a small group of active participants is presented within cost of operations in the Condensed Consolidated Statement of Operations and is allocated to the B&W Thermal segment.

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2021 SENIOR NOTES OFFERING (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Components of The Senior Notes

The components of the Senior Notes are as follows:

(in thousands)	June 30, 2021
8.125% Senior Notes due 2026	$	172,882
Unamortized deferred financing costs	(4,913)
Unamortized premium	388
Net debt balance	$	168,357

At December 31, 2020, the components of our Last Out Term Loans by tranche were as follows:

	December 31, 2020
(in thousands)	A-3		A-4		A-6		Total
Proceeds (1)	$	101,660	$	30,000	$	40,000	$	171,660
Discount and fees	8,650		—		—		8,650
Paid-in-kind interest	3,020		—		—		3,020
Net debt balance	$	113,330	$	30,000	$	40,000	$	183,330

(1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment from the July 2019 Equitization Transactions.

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LAST OUT TERM LOANS (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The components of the Senior Notes are as follows:

(in thousands)	June 30, 2021
8.125% Senior Notes due 2026	$	172,882
Unamortized deferred financing costs	(4,913)
Unamortized premium	388
Net debt balance	$	168,357

At December 31, 2020, the components of our Last Out Term Loans by tranche were as follows:

	December 31, 2020
(in thousands)	A-3		A-4		A-6		Total
Proceeds (1)	$	101,660	$	30,000	$	40,000	$	171,660
Discount and fees	8,650		—		—		8,650
Paid-in-kind interest	3,020		—		—		3,020
Net debt balance	$	113,330	$	30,000	$	40,000	$	183,330

(1) Tranche A-3 proceeds represent the net proceeds after the $39.7 million principal prepayment from the July 2019 Equitization Transactions.

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

Supplemental Cash Flow Information [Abstract]

Summary of Interest Expenses

Interest expense in our Condensed Consolidated Financial Statements consisted of the following components:

	Three months ended June 30,				Six months ended June 30,
(in thousands)	2021		2020		2021		2020
Components associated with borrowings from:
Senior Notes	$	3,459	$	—	$	5,192	$	—
Last Out Term Loans	837		4,828		4,349		8,875
U.S. Revolving Credit Facility	—		3,409		1,416		7,448
	4,296		8,237		10,957		16,323
Components associated with amortization or accretion of:
Senior Notes	298		—		1,766		—
Last Out Term Loans - discount and financing fees	—		1,579		—		3,729
U.S. Revolving Credit Facility - deferred financing fees and commitment fees	1,595		3,629		5,995		12,664
U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16	—		2		—		1,660
	1,893		5,210		7,761		18,053
Other interest expense	1,832		2,035		3,526		3,197
Total interest expense	$	8,021	$	15,482	$	22,244	$	37,573

Schedule of Cash and Cash Equivalents Reconciliation

The following table provides a reconciliation of cash and cash equivalents and restricted cash reporting that sum to the total cash amount in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows:

(in thousands)	June 30, 2021		December 31, 2020		June 30, 2020
Held by foreign entities	$	27,822	$	38,726	$	34,676
Held by U.S. entities	2,238		18,612		2,139
Cash and cash equivalents	30,060		57,338		36,815
Reinsurance reserve requirements	590		4,551		5,596
Restricted foreign accounts	—		2,869		2,661
Bank guarantee collateral	2,240		2,665		3,044
Letters of credit collateral	110,708		—		—
Restricted cash and cash equivalents	113,538		10,085		11,301
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows	$	143,598	$	67,423	$	48,116

Schedule of Restricted Cash and Cash Equivalents

The following table provides a reconciliation of cash and cash equivalents and restricted cash reporting that sum to the total cash amount in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows:

(in thousands)	June 30, 2021		December 31, 2020		June 30, 2020
Held by foreign entities	$	27,822	$	38,726	$	34,676
Held by U.S. entities	2,238		18,612		2,139
Cash and cash equivalents	30,060		57,338		36,815
Reinsurance reserve requirements	590		4,551		5,596
Restricted foreign accounts	—		2,869		2,661
Bank guarantee collateral	2,240		2,665		3,044
Letters of credit collateral	110,708		—		—
Restricted cash and cash equivalents	113,538		10,085		11,301
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows	$	143,598	$	67,423	$	48,116

Schedule of Supplemental Cash Flow Disclosures

The following cash activity is presented as a supplement to our Condensed Consolidated Statements of Cash Flows and is included in Net cash used in activities:

	Six months ended June 30,
(in thousands)	2021		2020
Income tax payments, net	$	3,331	$	1,438
Interest payments on our 8.125% Senior Notes due 2026	$	2,911	$	—
Interest payments on our U.S. Revolving Credit Facility	5,979		8,110
Interest payments on our Last Out Term Loans	6,140		6,140
Total cash paid for interest	$	15,030	$	14,250

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COMPREHENSIVE INCOME (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in the components of AOCI, net of tax, for the first two quarters of 2021 and 2020 were as follows:

(in thousands)	Currency translation loss		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2020	$	(47,575)	$	(4,815)	$	(52,390)
Other comprehensive loss before reclassifications	(70)		—		(70)
Reclassified from AOCI to net income (loss)	(4,512)		198		(4,314)
Net other comprehensive (loss) income	(4,582)		198		(4,384)
Balance at March 31, 2021	$	(52,157)	$	(4,617)	$	(56,774)
Other comprehensive loss before reclassifications	(1,478)		—		(1,478)
Reclassified from AOCI to net income	—		198		198
Net other comprehensive (loss) income	(1,478)		198		(1,280)
Balance at June 30, 2021	$	(53,635)	$	(4,419)	$	(58,054)

(in thousands)	Currency translation gain		Net unrecognized loss related to benefit plans (net of tax)		Total
Balance at December 31, 2019	$	5,743	$	(3,817)	$	1,926
Other comprehensive income before reclassifications	2,380		—		2,380
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive income (loss)	2,380		(246)		2,134
Balance at March 31, 2020	$	8,123	$	(4,063)	$	4,060
Other comprehensive loss before reclassifications	(4,095)		—		(4,095)
Reclassified from AOCI to net loss	—		(246)		(246)
Net other comprehensive loss	(4,095)		(246)		(4,341)
Balance at June 30, 2020	$	4,028	$	(4,309)	$	(281)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of AOCI by component and the affected Condensed Consolidated Statements of Operations line items are as follows (in thousands):

AOCI component	Line items in the Condensed Consolidated Statements of Operations affected by reclassifications from AOCI	Three months ended June 30,				Six months ended June 30,
		2021		2020		2021		2020
Release of currency translation adjustment with the sale of business	Loss on sale of business	$	—	$	—	$	4,512	$	—
Amortization of prior service cost on benefit obligations	Benefit plans, net	(198)		246		(396)		492
	Net (loss) income	$	(198)	$	246	$	4,116	$	492

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Assets and Liabilities

The following tables summarize our financial assets and liabilities carried at fair value, all of which were valued from readily available prices or using inputs based upon quoted prices for similar instruments in active markets (known as "Level 1" and "Level 2" inputs, respectively, in the fair value hierarchy established by the FASB Topic, Fair Value Measurements and Disclosures).

(in thousands)
Available-for-sale securities	June 30, 2021		Level 1		Level 2
Corporate notes and bonds	$	7,919	$	7,919	$	—
Mutual funds	678		—		678
United States Government and agency securities	5,144		5,144		—
Total fair value of available-for-sale securities	$	13,741	$	13,063	$	678

(in thousands)
Available-for-sale securities	December 31, 2020		Level 1		Level 2
Corporate notes and bonds	$	6,139	$	6,139	$	—
Mutual funds	636		—		636
Corporate Stocks	4,168		4,168		—
United States Government and agency securities	4,365		4,365		—
Total fair value of available-for-sale securities	$	15,308	$	14,672	$	636

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ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Carrying Value of Assets and Liabilities Held for Sale

The following table summarizes the carrying value of the assets and liabilities held for sale at June 30, 2021 and December 31, 2020:

(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable – trade, net	$	—	$	2,103
Accounts receivable – other	—		86
Contracts in progress	—		458
Inventories	—		1,676
Other current assets	—		405
Current assets held for sale	—		4,728
Net property, plant and equipment	1,766		10,365
Intangible assets	—		759
Right-of-use-asset	—		32
Non-current assets held for sale	1,766		11,156
Total assets held for sale	$	1,766	$	15,884
Accounts payable	$	—	$	5,211
Accrued employee benefits	—		178
Advance billings on contracts	—		370
Accrued warranty expense	—		466
Operating lease liabilities	—		32
Other accrued liabilities	—		2,048
Current liabilities held for sale	—		8,305
Total liabilities held for sale	$	—	$	8,305

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BASIS OF PRESENTATION (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Jan. 31, 2021	Jun. 30, 2021
Accounting Policies [Abstract]
Deferred contribution payments		$ 20.9
Company contributions	$ 23.1

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EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) attributable to stockholders of common stock	$ 1,395	$ (18,104)	$ (14,069)	$ (49,630)
Net income (loss) attributable to stockholders of common stock, diluted	$ 1,395	$ (18,104)	$ (14,069)	$ (49,630)
Weighted average shares used to calculate basic earnings (loss) per share (in shares)	85,724	46,853	78,589	46,628
Dilutive effect of stock options, restricted stock and performance units (in shares)	1,279	0	0	0
Weighted average shares used to calculate diluted earnings (loss) per share (in shares)	87,003	46,853	78,589	46,628
Basic earnings (loss) per share
Continuing operations (in dollars per share)	$ 0.02	$ (0.39)	$ (0.18)	$ (1.10)
Discontinued operations (in dollars per share)	0	0	0	0.04
Basic earnings (loss) per share (in dollars per share)	0.02	(0.39)	(0.18)	(1.06)
Diluted earnings (loss) per share
Continuing operations (in dollars per share)	0.02	(0.39)	(0.18)	(1.10)
Discontinued operations (in dollars per share)	0	0	0	0.04
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ (0.39)	$ (0.18)	$ (1.06)
Continuing Operations
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) attributable to stockholders of common stock	$ 1,395	$ (17,991)	$ (14,069)	$ (51,430)
Discontinued Operations
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss) attributable to stockholders of common stock	$ 0	$ (113)	$ 0	$ 1,800

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EARNINGS PER SHARE - Additional Information (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Excluded shares from the WAS to calculated diluted EPS as company was in a net loss position (in shares)		33,300	1,400,000	216,100
Stock options from diluted share (in shares)	300,000	1,500,000	400,000	1,700,000

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SEGMENT REPORTING - Narrative (Details)	6 Months Ended
	Jun. 30, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	3

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SEGMENT REPORTING - Schedule of Operating Results by Segment (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 202,860,000		$ 135,397,000		$ 371,108,000	$ 283,951,000
Adjusted EBITDA	15,074,000		1,698,000		23,536,000	2,731,000
Research and development costs	(609,000)		(1,231,000)		(1,197,000)	(2,572,000)
Restructuring activities	(2,400,000)		(2,392,000)		(3,393,000)	(4,343,000)
Financial advisory services	(1,299,000)		(582,000)		(2,232,000)	(1,511,000)
Advisory fees for settlement costs and liquidity planning	(2,059,000)		(1,155,000)		(4,037,000)	(3,769,000)
Litigation legal costs	(1,167,000)		(252,000)		(1,547,000)	(948,000)
Stock compensation	(51,000)		(1,187,000)		(7,880,000)	(1,899,000)
Interest on letters of credit included in cost of operations	(320,000)		(172,000)		(606,000)	(399,000)
Income (loss) from business held for sale	0		470,000		(483,000)	(318,000)
Depreciation & amortization	(4,321,000)		(4,032,000)		(8,379,000)	(8,240,000)
Contract asset amortization	(73,000)		0		(73,000)	0
ClimateBrightTM product development	(263,000)		0		(263,000)	0
Gain (loss) from a non-strategic business	(299,000)		(97,000)		(287,000)	(218,000)
Gain (loss) on asset disposals, net	(38,000)		(2,000)		1,966,000	913,000
Operating income (loss)	2,784,000		(7,703,000)		(3,678,000)	(18,001,000)
Interest expense, net	(7,875,000)		(15,259,000)		(21,989,000)	(37,310,000)
Gain (loss) on debt extinguishment	6,530,000		(6,194,000)		6,530,000	(6,194,000)
(Loss) gain on sale of business	(2,598,000)		(108,000)		(2,240,000)	(108,000)
Net pension benefit	5,924,000		7,450,000		15,022,000	14,986,000
Foreign exchange	1,826,000		7,112,000		617,000	(2,214,000)
Other – net	96,000		(2,586,000)		(182,000)	(2,792,000)
Total other income (expense)	3,903,000		(9,585,000)		(2,242,000)	(33,632,000)
Income (loss) before income tax expense	6,687,000		(17,288,000)		(5,920,000)	(51,633,000)
Income tax expense	3,546,000		845,000		6,382,000	35,000.0
Income (loss) from continuing operations	3,141,000		(18,133,000)		(12,302,000)	(51,668,000)
(Loss) income from discontinued operations, net of tax	0		(113,000)		0	1,800,000
Net income (loss)	3,141,000	$ (15,443,000)	(18,246,000)	$ (31,622,000)	(12,302,000)	(49,868,000)
Net (income) loss attributable to non-controlling interest	(15,000)		142,000		(36,000)	238,000
Net income (loss) attributable to stockholders	3,126,000		(18,104,000)		(12,338,000)	(49,630,000)
Less: Dividend on Series A preferred stock	1,731,000		0		1,731,000	0
Net income (loss) attributable to stockholders of common stock	1,395,000		(18,104,000)		(14,069,000)	(49,630,000)
Losses related to a non-strategic business, previously included in adjusted EBITDA			(100,000)			(200,000)
Interest on letters of credit included in cost of operations, previously included in adjusted EBITDA			(200,000)			(400,000)
Other
Segment Reporting Information [Line Items]
Revenues	(158,000)		(496,000)		(162,000)	(544,000)
Corporate
Segment Reporting Information [Line Items]
Adjusted EBITDA	(2,997,000)		(3,805,000)		(5,682,000)	(7,948,000)
Research and development costs
Segment Reporting Information [Line Items]
Research and development costs	(485,000)		(1,231,000)		(1,073,000)	(2,572,000)
B&W Renewable segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	38,344,000		43,509,000		67,155,000	79,508,000
Adjusted EBITDA	3,427,000		(138,000)		3,631,000	(1,572,000)
B&W Renewable segment | Operating Segments | B&W Renewable
Segment Reporting Information [Line Items]
Revenues	24,701,000		27,066,000		42,698,000	49,404,000
B&W Renewable segment | Operating Segments | Vølund
Segment Reporting Information [Line Items]
Revenues	13,643,000		16,443,000		24,457,000	30,104,000
B&W Environmental segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	28,358,000		25,172,000		59,518,000	51,092,000
Adjusted EBITDA	2,698,000		(1,146,000)		3,799,000	(769,000)
B&W Environmental segment | Operating Segments | B&W Environmental
Segment Reporting Information [Line Items]
Revenues	10,995,000		10,513,000		28,428,000	23,448,000
B&W Environmental segment | Operating Segments | SPIG
Segment Reporting Information [Line Items]
Revenues	13,194,000		10,850,000		24,378,000	22,187,000
B&W Environmental segment | Operating Segments | GMAB
Segment Reporting Information [Line Items]
Revenues	4,169,000		3,809,000		6,712,000	5,457,000
B&W Thermal segment | Operating Segments
Segment Reporting Information [Line Items]
Revenues	136,316,000		67,212,000		244,597,000	153,895,000
Adjusted EBITDA	12,431,000		8,018,000		22,861,000	15,592,000
B&W Thermal segment | Operating Segments | B&W Thermal
Segment Reporting Information [Line Items]
Revenues	$ 136,316,000		$ 67,212,000		$ 244,597,000	$ 153,895,000

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REVENUE RECOGNITION AND CONTRACTS - Revenue Recognition (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Transferred at Point in Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue	18.00%	31.00%	22.00%	31.00%
Transferred over Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percent of revenue	82.00%	69.00%	78.00%	69.00%

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REVENUE RECOGNITION AND CONTRACTS - Contract Balances (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 63,937	$ 59,308
Contract assets - included in contracts in progress, $ change	$ 4,629
Contract assets - included in contracts in progress, % change	8.00%
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 53,142	64,002
Contract liabilities - included in advance billings on contracts, $ change	$ (10,860)
Contract liabilities - included in advance billings on contracts, % change	(17.00%)
Net contract balance	$ 10,795	(4,694)
Net contract balance, $ change	$ 15,489
Net contract balance, % change	(330.00%)
Accrued contract losses	$ 321	582
Accrued contract losses, $ change	$ (261)
Accrued contract losses, % change	(45.00%)
Billings to customers less revenues recognized
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 51,361	61,884
Contract liabilities - included in advance billings on contracts, $ change	$ (10,523)
Contract liabilities - included in advance billings on contracts, % change	(17.00%)
Costs of revenue recognized less cost incurred
Contract liabilities - included in advance billings on contracts:
Contract liabilities - included in advance billings on contracts	$ 1,781	2,118
Contract liabilities - included in advance billings on contracts, $ change	$ (337)
Contract liabilities - included in advance billings on contracts, % change	(16.00%)
Costs incurred less costs of revenue recognized
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 25,766	25,888
Contract assets - included in contracts in progress, $ change	$ (122)
Contract assets - included in contracts in progress, % change	0.00%
Revenues recognized less billings to customers
Contract assets - included in contracts in progress:
Contract assets - included in contracts in progress	$ 38,171	$ 33,420
Contract assets - included in contracts in progress, $ change	$ 4,751
Contract assets - included in contracts in progress, % change	14.00%

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REVENUE RECOGNITION AND CONTRACTS - Backlog (Details) $ in Millions	Jun. 30, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 500.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	45.20%
Expected timing of satisfaction, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	21.20%
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations (as a percent)	33.60%
Expected timing of satisfaction, period

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REVENUE RECOGNITION AND CONTRACTS - Changes in Contract Estimates (Details) - Transferred over Time - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Increases in gross profit for changes in estimates for over time contracts	$ 2,314	$ 4,037	$ 5,339	$ 7,561
Decreases in gross profit for changes in estimates for over time contracts	(3,137)	(5,102)	(4,495)	(5,288)
Net changes in gross profit for changes in estimates for over time contracts	$ (823)	$ (1,065)	$ 844	$ 2,273

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REVENUE RECOGNITION AND CONTRACTS - B&W Renewable EPC Loss Contracts (Details)	1 Months Ended	3 Months Ended		6 Months Ended
	Oct. 31, 2020 USD ($) contract	Jun. 30, 2021 USD ($) contract	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) contract	Jun. 30, 2020 USD ($)	Oct. 23, 2020 contract	Dec. 31, 2017 contract
Disaggregation of Revenue [Line Items]
Number of EPC contracts 100% completed | contract		4		4
Number of EPC contracts nearly 100% completed | contract		2		2
B&W Renewable segment
Disaggregation of Revenue [Line Items]
Number of contracts in a loss position | contract						6	6
Percentage of completion on European renewable energy project				100.00%
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $		$ (0.0)	$ (400,000)	$ 100,000	$ (300,000)
Number of loss contracts settled | contract	5
Other renewable energy projects | B&W Renewable segment
Disaggregation of Revenue [Line Items]
Percentage of completion on European renewable energy project				99.00%
Change in construction cost estimates | $		$ 700,000	$ 0	$ 700,000	$ 0
Fifth European Renewable project | B&W Renewable segment
Disaggregation of Revenue [Line Items]
Structural steel beam costs | $				$ 36,000,000
Five of Six European Renewable Project | B&W Renewable segment
Disaggregation of Revenue [Line Items]
Proceeds from insurance settlement | $	$ 26,000,000.0

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REVENUE RECOGNITION AND CONTRACTS - B&W Environmental Loss Contracts (Details) - B&W Environmental segment	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) contract	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) contract	Jun. 30, 2020 USD ($)
Disaggregation of Revenue [Line Items]
Number of contracts in a loss position | contract	2		2
Renewable loss contracts, net gain (loss) recognized on changes in estimated revenues and costs | $	$ 400,000	$ 0	$ 400,000	$ 0
Percent complete	100.00%		100.00%

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INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 47,482	$ 46,659
Work in progress	7,364	8,195
Finished goods	16,157	12,307
Total inventories	$ 71,003	$ 67,161

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PROPERTY, PLANT & EQUIPMENT, & FINANCE LEASE (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	$ 189,747	$ 192,526
Less accumulated depreciation	139,850	135,925
Net property, plant and equipment	49,897	56,601
Finance lease	37,142	30,551
Less finance lease accumulated amortization	3,673	2,074
Net property, plant and equipment, and finance lease	83,366	85,078
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	1,550	1,584
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	34,096	34,207
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	151,352	151,399
Property under construction
Property, Plant and Equipment [Line Items]
Property, plant and equipment - gross	$ 2,749	$ 5,336

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GOODWILL - Schedule of Goodwill (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Goodwill [Roll Forward]
Beginning balance		$ 47,363,000
Currency translation adjustments		50,000
Ending balance	$ 47,413,000	47,413,000
Goodwill and other intangible asset impairment	0
B&W Renewable
Goodwill [Roll Forward]
Beginning balance		10,211,000
Currency translation adjustments		7,000
Ending balance	10,218,000	10,218,000
B&W Environmental
Goodwill [Roll Forward]
Beginning balance		5,673,000
Currency translation adjustments		4,000
Ending balance	5,677,000	5,677,000
B&W Thermal
Goodwill [Roll Forward]
Beginning balance		31,479,000
Currency translation adjustments		39,000
Ending balance	$ 31,518,000	$ 31,518,000

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INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Definite-lived intangible assets
Gross value of definite-lived intangible assets	$ 65,016	$ 65,567
Accumulated amortization	(44,669)	(42,964)
Net definite-lived intangible assets	20,347	22,603
Indefinite-lived intangible assets
Total intangible assets, net	21,652	23,908	$ 23,665	$ 25,300
Trademarks and trade names
Indefinite-lived intangible assets
Trademarks and trade names	1,305	1,305
Customer relationships
Definite-lived intangible assets
Gross value of definite-lived intangible assets	24,110	24,862
Accumulated amortization	(20,047)	(19,537)
Unpatented technology
Definite-lived intangible assets
Gross value of definite-lived intangible assets	15,489	15,713
Accumulated amortization	(7,546)	(6,751)
Patented technology
Definite-lived intangible assets
Gross value of definite-lived intangible assets	3,124	2,642
Accumulated amortization	(2,662)	(2,593)
Tradename
Definite-lived intangible assets
Gross value of definite-lived intangible assets	12,879	13,088
Accumulated amortization	(5,133)	(4,831)
All other
Definite-lived intangible assets
Gross value of definite-lived intangible assets	9,414	9,262
Accumulated amortization	$ (9,281)	$ (9,252)

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INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Intangible Assets [Roll Forward]
Balance at beginning of period	$ 23,908	$ 25,300
Amortization expense	(1,705)	(1,716)
Currency translation adjustments	(551)	81
Balance at end of the period	$ 21,652	$ 23,665

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INTANGIBLE ASSETS - Estimated Future Intangible Asset Amortization (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Year ending December 31, 2021	$ 1,701
Year ending December 31, 2022	3,409
Year ending December 31, 2023	3,409
Year ending December 31, 2024	3,325
Year ending December 31, 2025	2,559
Year ending December 31, 2026	1,283
Thereafter	$ 4,661

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LEASES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Lessor, Lease, Description [Line Items]
Additional future minimum payments	$ 58,297
Finance lease assets	33,469	$ 28,477
Lease liability	36,332
Office Space Akron Ohio
Lessor, Lease, Description [Line Items]
Additional future minimum payments	$ 5,700
Finance lease, borrowing rate	7.19%
Finance lease assets	$ 3,600
Lease liability	$ 3,800

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LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease expense	$ 1,308	$ 1,389	$ 2,647	$ 2,896
Short-term lease expense	1,486	292	2,641	480
Variable lease expense	471	(382)	679	394
Total operating lease expense	3,265	1,299	5,967	3,770
Amortization of right-of-use assets	1,069	514	1,598	1,029
Interest on lease liabilities	708	616	1,324	1,231
Total finance lease expense	1,777	1,130	2,922	2,260
Sublease income	(21)	(21)	(43)	(43)
Net lease cost	$ 5,021	$ 2,408	$ 8,846	$ 5,987

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LEASES - Other Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			$ 2,674	$ 2,743
Operating cash flows from finance leases	$ 708	$ 616	1,324	1,231
Financing cash flows from finance leases			834	$ (399)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases			1,281		$ 2,629
Finance leases			$ 6,589		$ 146
Weighted-average remaining lease term:
Operating leases (in years)	2 years 9 months 18 days		2 years 9 months 18 days		3 years 1 month 6 days
Finance leases (in years)	12 years 6 months		12 years 6 months		13 years 10 months 24 days
Weighted-average discount rate:
Operating leases	9.11%		9.11%		9.26%
Finance leases	7.88%		7.88%		8.00%

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LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Operating lease assets	$ 9,399	$ 10,814
Finance lease assets	33,469	28,477
Total non-current lease assets	42,868	39,291
Current
Operating lease liabilities	3,728	3,995
Finance lease liabilities	3,095	886
Non-current
Operating lease liabilities	5,888	7,031
Finance lease liabilities	33,237	29,690
Total lease liabilities	$ 45,948	$ 41,602

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LEASES - Future Minimum Lease Payments Required (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Operating Leases
2021 (excluding the six months ended June 30, 2021)	$ 2,410
2022	3,864
2023	2,572
2024	1,468
2025	411
Thereafter	7
Total	10,732
Less imputed interest	(1,116)
Lease liability	9,616
Finance Leases
2021 (excluding the six months ended June 30, 2021)	2,860
2022	5,233
2023	3,879
2024	3,944
2025	3,969
Thereafter	38,412
Total	58,297
Less imputed interest	(21,965)
Lease liability	36,332
Total
2021 (excluding the six months ended June 30, 2021)	5,270
2022	9,097
2023	6,451
2024	5,412
2025	4,380
Thereafter	38,419
Total	69,029
Less imputed interest	(23,081)
Lease liability	$ 45,948

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ACCRUED WARRANTY EXPENSE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 25,399	$ 33,376
Additions	3,608	2,063
Expirations and other changes	(4,309)	(1,584)
Payments	(8,576)	(5,410)
Translation and other	254	46
Balance at end of period	$ 16,376	$ 28,491

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RESTRUCTURING ACTIVITIES - Summary of Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Total	$ 2,400	$ 2,392	$ 3,393	$ 4,343
Severance and related costs	1,681	612	2,181	1,713
Other	719	1,780	1,212	2,630
Cumulative costs to date		43,707		43,707
Employee Severance
Restructuring Cost and Reserve [Line Items]
Cumulative costs to date		35,394		35,394
Other
Restructuring Cost and Reserve [Line Items]
Cumulative costs to date		8,313		8,313
Operating Segments | B&W Renewable segment
Restructuring Cost and Reserve [Line Items]
Total	557	951	1,066	1,752
Severance and related costs	466	155	919	813
Other	91	796	147	939
Operating Segments | B&W Environmental segment
Restructuring Cost and Reserve [Line Items]
Total	209	237	298	377
Severance and related costs	172	154	207	211
Other	37	83	91	166
Operating Segments | B&W Thermal segment
Restructuring Cost and Reserve [Line Items]
Total	1,542	948	1,890	1,889
Severance and related costs	1,035	303	1,047	689
Other	507	645	843	1,200
Corporate
Restructuring Cost and Reserve [Line Items]
Total	92	256	139	325
Severance and related costs	8	0	8	0
Other	$ 84	$ 256	$ 131	$ 325

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RESTRUCTURING ACTIVITIES - Restructuring Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 8,022	$ 5,341	$ 8,146	$ 5,358
Restructuring expense	2,400	2,392	3,393	4,343
Payments	(2,477)	(2,646)	(3,594)	(4,614)
Balance at end of period	$ 7,945	$ 5,087	$ 7,945	$ 5,087

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$ 5,609	$ 8,250	$ 11,280	$ 16,511
Expected return on plan assets	(11,773)	(15,544)	(26,782)	(31,185)
Amortization of prior service cost (credit)	28	43	56	86
Benefit plans, net	(6,136)	(7,251)	(15,446)	(14,588)
Service cost included in COS	218	209	435	420
Net periodic benefit cost (benefit)	(5,918)	(7,042)	(15,011)	(14,168)
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	39	72	78	144
Expected return on plan assets	0	0	0	0
Amortization of prior service cost (credit)	173	(271)	346	(542)
Benefit plans, net	212	(199)	424	(398)
Service cost included in COS	6	4	12	9
Net periodic benefit cost (benefit)	$ 218	$ (195)	$ 436	$ (389)

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PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Retirement Benefits [Abstract]
Mark-to-market adjustments for our pension and other postretirement benefit plans	$ 0	$ 0	$ 0	$ 0
Employer contribution	300,000	$ 600,000	24,300,000	$ 1,100,000
Employer contributions, interest	0		400,000
Deferred contribution payments	20,900,000
Employer contribution for Pension Plan due	$ 45,600,000		$ 45,600,000

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2021 SENIOR NOTES OFFERING - Narrative (Details) - USD ($)		1 Months Ended	6 Months Ended
	Feb. 12, 2021	Aug. 12, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Feb. 11, 2021	Feb. 08, 2021
Debt Instrument [Line Items]
Issuance of senior notes, net			$ 138,287,000	$ 0
Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount of Senior Notes sold to date			12,900,000
Net cash proceeds after commission and fees			$ 13,100,000
Senior Notes | Subsequent Event
Debt Instrument [Line Items]
Aggregate principal amount of Senior Notes sold to date		$ 12,700,000
Net cash proceeds after commission and fees		$ 12,900,000
B. Riley Financial, Inc.
Debt Instrument [Line Items]
Fixed rate per annum	6.625%					12.00%
B. Riley Financial, Inc. | Senior Notes
Debt Instrument [Line Items]
Debt face amount	$ 35,000,000.0
Senior notes 8.125% due 2026 | Senior Notes
Debt Instrument [Line Items]
Issuance of senior notes, net	$ 125,000,000.0
Fixed rate per annum	8.125%						8.125%
Proceeds from issuance of debt, net	$ 120,000,000.0
Senior notes 8.125% due 2026 | B. Riley Securities, Inc. | Senior Notes
Debt Instrument [Line Items]
Debt face amount					$ 150,000,000.0

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2021 SENIOR NOTES OFFERING - Components of The Senior Notes (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Feb. 12, 2021	Feb. 08, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Unamortized deferred financing costs	$ (4,913)
Unamortized premium	388
Net debt balance	168,357			$ 183,330
Senior Notes | Senior notes 8.125% due 2026
Debt Instrument [Line Items]
Fixed rate per annum		8.125%	8.125%
Long-term debt, gross	$ 172,882

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LAST OUT TERM LOANS - Last Out Term Loans by Tranche (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 23, 2019	Dec. 31, 2020	Jun. 30, 2021
Debt Instrument [Line Items]
Proceeds		$ 171,660
Discount and fees		8,650
Paid-in-kind interest		3,020
Net debt balance		183,330	$ 168,357
A-3
Debt Instrument [Line Items]
Debt prepayment amount	$ 39,700
Line of Credit | A-3
Debt Instrument [Line Items]
Proceeds		101,660
Discount and fees		8,650
Paid-in-kind interest		3,020
Net debt balance		113,330
Line of Credit | A-4
Debt Instrument [Line Items]
Proceeds		30,000
Discount and fees		0
Paid-in-kind interest		0
Net debt balance		30,000
Line of Credit | A-6
Debt Instrument [Line Items]
Proceeds		40,000
Discount and fees		0
Paid-in-kind interest		0
Net debt balance		$ 40,000

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LAST OUT TERM LOANS - Narrative (Details) - USD ($)								3 Months Ended		6 Months Ended
	Jun. 01, 2021	May 26, 2021	May 07, 2021	Mar. 04, 2021	Feb. 12, 2021	Jan. 31, 2020	Jul. 23, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Feb. 11, 2021	Nov. 30, 2020	May 14, 2020
Debt Instrument [Line Items]
Loss on debt extinguishment								$ (6,530,000)	$ 6,194,000	$ (6,530,000)	$ 6,194,000
Sale of stock, number of shares issued (in shares)					29,487,180
Series A Preferred Stock
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)		444,700	4,000,000
Preferred stock, dividend rate			7.75%
B. Riley Financial, Inc.
Debt Instrument [Line Items]
Fixed rate per annum					6.625%							12.00%
B. Riley Financial, Inc. | Senior Notes
Debt Instrument [Line Items]
Debt face amount					$ 35,000,000.0
B. Riley Financial, Inc. | Series A Preferred Stock
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)	2,916,880
A-3
Debt Instrument [Line Items]
Loss on debt extinguishment									$ 6,200,000
Repayments of debt							$ 40,000,000.0
Debt prepayment amount							$ 39,700,000
A-3 | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Payment to related party in exchange for debt prepayment	$ 400,000
Debt prepayment amount	73,300,000
Cash paid for accrued interest	$ 900,000
A-4 | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Repayments of debt				$ 30,000,000.0
Debt face amount						$ 30,000,000.0
Proceeds from related party debt						26,300,000
Borrowing fees						$ 3,700,000
A-6 | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Repayments of debt				$ 5,000,000.0
Debt face amount													$ 10,000,000.0	$ 30,000,000.0

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REVOLVING DEBT - Debt Facilities (Details)	6 Months Ended
	Jun. 30, 2021 USD ($)
Letter of credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 110,000,000
Revolving credit facility
Debt Instrument [Line Items]
Administrative fees, percentage	0.75%
Fronting fees, percentage	0.25%
Commitment fee, percent	0.375%
Revolving credit facility | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
Reimbursement agreement | First year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	2.25%
Reimbursement agreement | Second year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	2.00%
Reimbursement agreement | Third year after closing
Debt Instrument [Line Items]
Prepayment fees, percentage	1.25%
Reimbursement agreement | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	6.50%
Reimbursement agreement | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	7.50%
Debt facilities
Debt Instrument [Line Items]
Quarterly fixed charge coverage test ratio (no less than)	1.00
Maximum senior leverage ratio	2.50
Non-guarantor cash repatriation covenant	$ 35,000,000
Minimum liquidity covenant	30,000,000.0
Annual cap maintenance capital expenditures	7,500,000
B. Riley Financial, Inc. | Reimbursement agreement
Debt Instrument [Line Items]
Annual fees agreed for Guaranty	$ 900,000

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REVOLVING DEBT - A&R Credit Agreement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Gain on debt extinguishment	$ 6,530	$ (6,194)	$ 6,530	$ (6,194)
Unamortized deferred financing costs	4,913		4,913
A&R Credit Agreement
Debt Instrument [Line Items]
Gain on debt extinguishment	6,500
Write off of deferred debt issuance cost	11,300
Unamortized deferred financing costs	$ 4,800		$ 4,800

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REVOLVING DEBT - Letters of Credit, Bank Guarantees and Surety Bonds (Details) $ in Millions	Jun. 30, 2021 USD ($)
Debt Instrument [Line Items]
Guarantor obligations	$ 259.3
Prior A&R Credit Agreement
Debt Instrument [Line Items]
Letters of credit outstanding amount	22.1
Outstanding letters of credit subject to foreign currency revaluation	32.1
Prior A&R Credit Agreement | Surety Bond
Debt Instrument [Line Items]
Letters of credit outstanding amount	24.6
Prior A&R Credit Agreement | Financial letters of credit
Debt Instrument [Line Items]
Letters of credit outstanding amount	22.0
Prior A&R Credit Agreement | Performance letters of credit
Debt Instrument [Line Items]
Letters of credit outstanding amount	79.7
Letters of Credit, and Bank Guarantees
Debt Instrument [Line Items]
Line of credit amount	$ 57.3

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REVOLVING DEBT - Other Indebtedness - Loan Payable (Details) $ in Millions	6 Months Ended
	Jun. 30, 2021 USD ($) loan	Aug. 12, 2021 USD ($)
Debt Instrument [Line Items]
Unsecured interest free loans	$ 2.6
Number of unsecured interest free loans received | loan	2
Loan payable in April 2022
Debt Instrument [Line Items]
Unsecured interest free loans	$ 0.9
Loans payable in May 2022
Debt Instrument [Line Items]
Unsecured interest free loans	$ 1.7
Subsequent Event | Loan payable in May 2023
Debt Instrument [Line Items]
Unsecured interest free loans		$ 0.9

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PREFERRED STOCK (Details) - USD ($)								1 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 08, 2021	Jun. 01, 2021	May 26, 2021	May 07, 2021	Feb. 12, 2021	Jul. 23, 2019	Aug. 12, 2021	Jun. 30, 2021	Jun. 30, 2020	Jul. 07, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)						29,487,180
Proceeds from sale of preferred stock									$ 106,043,000	$ 0
Preferred stock, par value (in dollars per share)	$ 0.01								$ 0.01			$ 0.01
Sale of stock, consideration received						$ 163,000,000.0
Subsequent Event | B. Riley Securities, Inc.
Debt Instrument [Line Items]
Stock sale agreement, aggregate amount offered (up to)											$ 76,000,000
A-3
Debt Instrument [Line Items]
Debt prepayment amount							$ 39,700,000
A-3 | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Payment to related party in exchange for debt prepayment			$ 400,000
Cash paid for accrued interest			900,000
Debt prepayment amount			$ 73,300,000
7.75% Series A Cumulative Perpetual Preferred Stock
Debt Instrument [Line Items]
Preferred stock, dividend rate					7.75%
Sale of stock, number of shares issued (in shares)				444,700	4,000,000
Price per share (In dollars per share)				$ 25.00	$ 25.00
Proceeds from sale of preferred stock				$ 10,700,000	$ 95,700,000
Preferred stock, par value (in dollars per share)					$ 0.01
Liquidation preference (in dollars per share)					25.00
Preferred stock, equivalent dividend per year (in dollars per share)					1.9375
Preferred stock, dividends (in USD per share)		$ 0.290625
Dividends paid	$ 1,700,000
Undeclared dividends of Preferred Stock	$ 0
7.75% Series A Cumulative Perpetual Preferred Stock | B. Riley Financial, Inc.
Debt Instrument [Line Items]
Sale of stock, number of shares issued (in shares)			2,916,880
Price per share (In dollars per share)					$ 25.00
7.75% Series A Cumulative Perpetual Preferred Stock | Subsequent Event
Debt Instrument [Line Items]
Proceeds from sale of preferred stock								$ 5,900,000
Sale of stock, consideration received								$ 5,900,000

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COMMON STOCK (Details) - USD ($) $ in Millions	Feb. 12, 2021	May 20, 2021
Class of Stock [Line Items]
Sale of stock, number of shares issued (in shares)	29,487,180
Sale of stock, consideration received	$ 163.0
2021 Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares)		1,250,000
2015 Plan
Class of Stock [Line Items]
Number of shares available for grant (in shares)		2,007,152

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Summary of Interest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Interest expense on borrowings	$ 4,296	$ 8,237	$ 10,957	$ 16,323
Amortization of deferred origination fees, net	1,893	5,210	7,761	18,053
Other interest expense	1,832	2,035	3,526	3,197
Total interest expense	8,021	15,482	22,244	37,573
Senior Notes
Debt Instrument [Line Items]
Interest expense on borrowings	3,459	0	5,192	0
Amortization of deferred origination fees, net	298	0	1,766	0
Last Out Term Loans
Debt Instrument [Line Items]
Interest expense on borrowings	837	4,828	4,349	8,875
Amortization of deferred origination fees, net	0	1,579	0	3,729
U.S. Revolving Credit Facility
Debt Instrument [Line Items]
Interest expense on borrowings	0	3,409	1,416	7,448
U.S. Revolving Credit Facility - deferred financing fees and commitment fees
Debt Instrument [Line Items]
Amortization of deferred origination fees, net	1,595	3,629	5,995	12,664
U.S. Revolving Credit Facility - deferred ticking fee for Amendment 16
Debt Instrument [Line Items]
Amortization of deferred origination fees, net	$ 0	$ 2	$ 0	$ 1,660

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Additional Information (Details) - USD ($) $ in Thousands	Aug. 11, 2021	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents		$ 113,538	$ 10,085	$ 11,301
Subsequent Event
Cash and Cash Equivalents [Line Items]
Backstop letters of credit issued	$ 60,700
Letters of credit expected to cover remaining collateral	$ 50,000
Letters of credit collateral
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents		$ 110,708	$ 0	$ 0

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Cash and Cash Equivalents Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 30,060	$ 57,338	$ 36,815
Restricted cash and cash equivalents	113,538	10,085	11,301
Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows	143,598	67,423	48,116
Held by foreign entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	27,822	38,726	34,676
Held by U.S. entities
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	2,238	18,612	2,139
Reinsurance reserve requirements
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents	590	4,551	5,596
Restricted foreign accounts
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents	0	2,869	2,661
Bank guarantee collateral
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents	2,240	2,665	3,044
Letters of credit collateral
Cash and Cash Equivalents [Line Items]
Restricted cash and cash equivalents	$ 110,708	$ 0	$ 0

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INTEREST EXPENSE AND SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Debt Instrument [Line Items]
Income tax payments, net	$ 3,331	$ 1,438
Total cash paid for interest	15,030	14,250
U.S. Revolving Credit Facility
Debt Instrument [Line Items]
Total cash paid for interest	5,979	8,110
Last Out Term Loan
Debt Instrument [Line Items]
Total cash paid for interest	6,140	6,140
Senior notes 8.125% due 2026 | Senior Notes
Debt Instrument [Line Items]
Total cash paid for interest	$ 2,911	$ 0

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PROVISION FOR INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Contingency [Line Items]
Income tax expense	$ 3,546,000	$ 845,000	$ 6,382,000	$ 35,000.0
Effective tax rate	53.00%	(4.90%)	(107.80%)	(0.10%)
Favorable (unfavorable) discrete items	$ (900,000)	$ 1,800,000	$ (3,500,000)	$ 1,300,000
Minimum | Foreign Tax Authority
Income Tax Contingency [Line Items]
Effective tax rate			19.00%
Maximum | Foreign Tax Authority
Income Tax Contingency [Line Items]
Effective tax rate			30.00%

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CONTINGENCIES (Details) - USD ($) $ in Millions	Jan. 11, 2021	Dec. 14, 2020	Dec. 27, 2019
Loss Contingencies [Line Items]
Loss contingency, damages sought, contractual cap		$ 11.7
Pending Litigation
Loss Contingencies [Line Items]
Alleged damages	$ 2.9		$ 58.9

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COMPREHENSIVE INCOME - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ (195,444)	$ (338,262)	$ (323,650)	$ (294,939)	$ (338,262)	$ (294,939)
Other comprehensive income (loss) before reclassifications	(1,478)	(70)	(4,095)	2,380
Reclassified from AOCI to net income (loss)	198	(4,314)	(246)	(246)
Other comprehensive loss	(1,280)	(4,384)	(4,341)	2,134	(5,664)	(2,207)
Ending balance	(15,719)	(195,444)	(338,700)	(323,650)	(15,719)	(338,700)
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(56,774)	(52,390)	4,060	1,926	(52,390)	1,926
Ending balance	(58,054)	(56,774)	(281)	4,060	(58,054)	(281)
Currency translation gain (loss)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(52,157)	(47,575)	8,123	5,743	(47,575)	5,743
Other comprehensive income (loss) before reclassifications	(1,478)	(70)	(4,095)	2,380
Reclassified from AOCI to net income (loss)	0	(4,512)	0	0
Other comprehensive loss	(1,478)	(4,582)	(4,095)	2,380
Ending balance	(53,635)	(52,157)	4,028	8,123	(53,635)	4,028
Net unrecognized loss related to benefit plans (net of tax)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	(4,617)	(4,815)	(4,063)	(3,817)	(4,815)	(3,817)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Reclassified from AOCI to net income (loss)	198	198	(246)	(246)
Other comprehensive loss	198	198	(246)	(246)
Ending balance	$ (4,419)	$ (4,617)	$ (4,309)	$ (4,063)	$ (4,419)	$ (4,309)

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COMPREHENSIVE INCOME - Reclassification out of Accumulated other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss on sale of business	$ (2,598)	$ (108)	$ (2,240)	$ (108)
Benefit plans, net	5,924	7,450	15,022	14,986
Net (loss) income	3,141	(18,133)	(12,302)	(51,668)
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost on benefit obligations
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Loss on sale of business	0	0	4,512	0
Benefit plans, net	(198)	246	(396)	492
Net (loss) income	$ (198)	$ 246	$ 4,116	$ 492

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FAIR VALUE MEASUREMENTS - Summary of Available-for-Sale Securities Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	$ 13,741	$ 15,308
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	13,063	14,672
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	678	636
Corporate notes and bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	7,919	6,139
Corporate notes and bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	7,919	6,139
Corporate notes and bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	0	0
Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	678	636
Mutual funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	0	0
Mutual funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	678	636
Corporate Stocks
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities		4,168
Corporate Stocks | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities		4,168
Corporate Stocks | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities		0
United States Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	5,144	4,365
United States Government and agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	5,144	4,365
United States Government and agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of available-for-sale securities	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Narrative (Details)	Jun. 30, 2021
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities contractual maturities	0 years
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities contractual maturities	5 years

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FAIR VALUE MEASUREMENTS - Senior Notes (Details) - Senior notes 8.125% due 2026 - Senior Notes - USD ($) $ in Thousands	Jun. 30, 2021	Feb. 12, 2021	Feb. 08, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed rate per annum		8.125%	8.125%
Carrying Value	$ 172,882
Estimated Fair Value	$ 179,105

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RELATED PARTY TRANSACTIONS (Details) - USD ($)									1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 01, 2021	May 26, 2021	May 07, 2021	Mar. 26, 2021	Feb. 12, 2021	Nov. 13, 2020	Jul. 23, 2019	Nov. 19, 2018	Jan. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Feb. 11, 2021	Feb. 08, 2021	Nov. 30, 2020	May 14, 2020
Related Party Transaction [Line Items]
Payment of debt issuance costs												$ 10,933,000	$ 10,356,000
Sale of stock, number of shares issued (in shares)					29,487,180
Last Out Term Loan Tranche A | Senior Notes
Related Party Transaction [Line Items]
Debt instrument, allowed prepayment, amount					$ 35,000,000.0
Senior notes 8.125% due 2026 | Senior Notes
Related Party Transaction [Line Items]
Fixed rate per annum					8.125%											8.125%
A-3
Related Party Transaction [Line Items]
Debt prepayment amount							$ 39,700,000
7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, dividend rate			7.75%
Sale of stock, number of shares issued (in shares)		444,700	4,000,000
BPRI Executive Consulting, LLC | Financial advisory services
Related Party Transaction [Line Items]
Related party transaction, period with written notice to terminate agreement								30 days
Related party transaction monthly payments								$ 750,000
B. Riley Financial, Inc.
Related Party Transaction [Line Items]
Total fees										$ 200,000	$ 3,300,000	$ 400,000	$ 7,500,000
Proceeds from sale of stock									$ 4,500,000
Fixed rate per annum					6.625%										12.00%
B. Riley Financial, Inc. | Senior Notes
Related Party Transaction [Line Items]
Debt face amount					$ 35,000,000.0
B. Riley Financial, Inc. | A-6
Related Party Transaction [Line Items]
Debt face amount																	$ 10,000,000.0	$ 30,000,000.0
B. Riley Financial, Inc. | A-3
Related Party Transaction [Line Items]
Payment to related party in exchange for debt prepayment	$ 400,000
Cash paid for accrued interest	900,000
Debt prepayment amount	$ 73,300,000
B. Riley Financial, Inc. | 7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Sale of stock, number of shares issued (in shares)	2,916,880
Eos Energy Storage LLC | Common Class A
Related Party Transaction [Line Items]
Purchase of common stock (in shares)						200,000
Payments to acquire stock						$ 2,000,000.0
B. Riley Securities, Inc.
Related Party Transaction [Line Items]
Payments of stock issuance costs					9,500,000
B. Riley Securities, Inc. | Senior Notes
Related Party Transaction [Line Items]
Payment of debt issuance costs					$ 5,200,000
B. Riley Securities, Inc. | Senior notes 8.125% due 2026 | Senior Notes
Related Party Transaction [Line Items]
Payment of debt issuance costs										$ 300,000
Debt face amount														$ 150,000,000.0
B. Riley Securities, Inc. | 7.75% Series A Cumulative Perpetual Preferred Stock
Related Party Transaction [Line Items]
Payment of debt issuance costs		$ 400,000	$ 4,300,000
Babcock & Wilcox Enterprises, Inc. | B. Riley Capital Management, LLC
Related Party Transaction [Line Items]
Ownership percent of common stock												33.10%
Babcock & Wilcox Enterprises, Inc. | Vintage Capital Management, LLC
Related Party Transaction [Line Items]
Ownership percent of common stock												0.00%
Common stock shares issued (in shares)				10,720,785

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ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS - Narrative (Details) - USD ($) $ in Thousands					3 Months Ended			6 Months Ended
	Mar. 15, 2021	Mar. 08, 2021	Apr. 06, 2020	Mar. 17, 2020	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 05, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of certain fixed assets, gross	$ 4,000
Proceeds from sale of certain fixed assets, net	3,300
Gain on sale of fixed assets	$ 1,900							$ (2,240)	$ (108)
Proceeds from sale of business and assets, net								7,170	8,773
(Loss) gain on sale of business					$ (2,598)		$ (108)	(2,240)	$ (108)
Amount received after remaining escrow is settled			$ 3,500	$ 4,500
Disposal Group, Disposed of by Sale | Diamond Power Machine (Hubei) Co., Inc
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration from divestitures										$ 2,800
Proceeds from sale of business and assets, net		$ 2,000
Favorable contract asset recognized						$ 800
(Loss) gain on sale of business						400		(2,200)
Gain on sale of business, CTA						$ 4,500
Gain (loss) on disposition of business, adjustment					2,600
Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale					$ 1,766			$ 1,766			$ 15,884

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ASSETS HELD FOR SALE, DIVESTITURES AND DISCONTINUED OPERATIONS - Carrying Value of Assets and Liabilities Held for Sale (Details) - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable – trade, net	$ 0	$ 2,103
Accounts receivable – other	0	86
Contracts in progress	0	458
Inventories	0	1,676
Other current assets	0	405
Current assets held for sale	0	4,728
Net property, plant and equipment	1,766	10,365
Intangible assets	0	759
Right-of-use-asset	0	32
Non-current assets held for sale	1,766	11,156
Total assets held for sale	1,766	15,884
Accounts payable	0	5,211
Accrued employee benefits	0	178
Advance billings on contracts	0	370
Accrued warranty expense	0	466
Operating lease liabilities	0	32
Other accrued liabilities	0	2,048
Current liabilities held for sale	0	8,305
Total liabilities held for sale	$ 0	$ 8,305