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FORM 10-Q
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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The Netherlands
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Prinses Beatrixlaan 35
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98-0420223
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(State or other jurisdiction of
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2595 AK The Hague
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(I.R.S. Employer Identification No.)
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incorporation or organization)
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The Netherlands
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31 70 373 2010
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(Address and telephone number of principal executive offices)
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o
(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Page
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Three Months Ended September 30,
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Nine Months Ended September 30,
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||||||||||||
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2016
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2015
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2016
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2015
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||||||||
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(Unaudited)
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||||||||||||||
Revenue
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$
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2,776,177
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$
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3,321,682
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$
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8,139,525
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$
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9,654,540
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Cost of revenue
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2,449,609
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2,943,965
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7,230,826
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8,523,529
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||||
Gross profit
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326,568
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377,717
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908,699
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1,131,011
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||||
Selling and administrative expense
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87,814
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93,672
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263,142
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287,926
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||||
Intangibles amortization
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10,485
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14,948
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32,256
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45,542
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||||
Equity earnings
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(5,394
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)
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(1,154
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)
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(11,369
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)
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(5,750
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)
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||||
Goodwill impairment
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—
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453,100
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—
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453,100
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||||
Loss on net assets held for sale and intangible assets impairment
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—
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707,380
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—
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707,380
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||||
Other operating expense (income), net
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141
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(267
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)
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1,075
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1,870
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||||
Income (loss) from operations
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233,522
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(889,962
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)
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623,595
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(359,057
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)
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||||
Interest expense
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(26,433
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)
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(25,025
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)
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(78,404
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)
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(68,425
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)
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||||
Interest income
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2,608
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2,058
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8,156
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6,290
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||||
Income (loss) before taxes
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209,697
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(912,929
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)
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553,347
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(421,192
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)
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||||
Income tax (expense) benefit
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(41,278
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)
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187,375
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(132,418
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)
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38,275
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Net income (loss)
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168,419
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(725,554
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)
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420,929
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(382,917
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)
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Less: Net income attributable to noncontrolling interests
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(46,659
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)
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(14,879
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)
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(68,405
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)
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(55,773
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)
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Net income (loss) attributable to CB&I
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$
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121,760
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$
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(740,433
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)
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$
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352,524
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$
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(438,690
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)
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Net income (loss) attributable to CB&I per share:
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Basic
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$
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1.20
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$
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(7.02
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)
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$
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3.40
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$
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(4.08
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)
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Diluted
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$
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1.20
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$
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(7.02
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)
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$
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3.37
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$
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(4.08
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)
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Weighted average shares outstanding:
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||||||||
Basic
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101,102
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105,454
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103,725
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107,440
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||||
Diluted
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101,863
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105,454
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104,555
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107,440
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Cash dividends on shares:
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||||||||
Amount
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$
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6,995
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$
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7,333
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$
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21,726
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$
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22,540
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Per share
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$
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0.07
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$
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0.07
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$
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0.21
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$
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0.21
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Three Months Ended September 30,
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Nine Months Ended September 30,
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||||||||||||
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2016
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2015
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2016
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2015
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(Unaudited)
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||||||||||||||
Net income (loss)
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$
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168,419
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$
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(725,554
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)
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$
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420,929
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$
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(382,917
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)
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Other comprehensive income (loss), net of tax:
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||||||||
Change in cumulative translation adjustment
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2,259
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(24,944
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)
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1,290
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(61,069
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)
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||||
Change in unrealized fair value of cash flow hedges
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155
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948
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1,198
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868
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||||
Change in unrecognized prior service pension credits/costs
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(80
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)
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(103
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)
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(236
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)
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(623
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)
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Change in unrecognized actuarial pension gains/losses
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427
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2,036
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2,843
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12,035
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Comprehensive income (loss)
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171,180
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(747,617
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)
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426,024
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(431,706
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)
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||||
Net income attributable to noncontrolling interests
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(46,659
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)
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(14,879
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)
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(68,405
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)
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(55,773
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)
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Change in cumulative translation adjustment attributable to noncontrolling interests
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(750
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)
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2,717
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(1,294
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)
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3,838
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||||
Comprehensive income (loss) attributable to CB&I
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$
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123,771
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$
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(759,779
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)
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$
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356,325
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$
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(483,641
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)
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September 30,
2016 |
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December 31,
2015 |
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(Unaudited)
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Assets
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||||
Cash and cash equivalents ($406,225 and $410,989 related to variable interest entities ("VIEs"))
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$
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614,966
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$
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550,221
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Accounts receivable, net ($194,874 and $334,232 related to VIEs)
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1,284,799
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1,331,217
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Inventory
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240,185
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289,658
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|
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Costs and estimated earnings in excess of billings ($22,514 and $28,130 related to VIEs)
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744,923
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688,314
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Other current assets ($444,468 and $372,523 related to VIEs)
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580,079
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507,889
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|
||
Total current assets
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3,464,952
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3,367,299
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Equity investments
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159,326
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136,845
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|
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Property and equipment, net ($17,455 and $19,040 related to VIEs)
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578,371
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604,043
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Goodwill
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3,712,608
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3,711,506
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|
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Other intangibles, net
|
379,578
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|
|
410,949
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Deferred income taxes
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540,670
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633,627
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Other non-current assets
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333,794
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327,791
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|
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Total assets
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$
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9,169,299
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$
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9,192,060
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Liabilities
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||||
Revolving facility and other short-term borrowings
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$
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569,000
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$
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653,000
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Current maturities of long-term debt, net
|
372,686
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|
|
147,871
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Accounts payable ($437,203 and $405,853 related to VIEs)
|
1,173,907
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|
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1,162,077
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|
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Billings in excess of costs and estimated earnings ($577,193 and $846,180 related to VIEs)
|
1,737,863
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|
1,934,111
|
|
||
Other current liabilities
|
1,134,315
|
|
|
959,889
|
|
||
Total current liabilities
|
4,987,771
|
|
|
4,856,948
|
|
||
Long-term debt, net
|
1,456,114
|
|
|
1,791,832
|
|
||
Deferred income taxes
|
8,300
|
|
|
10,239
|
|
||
Other non-current liabilities
|
370,258
|
|
|
369,451
|
|
||
Total liabilities
|
6,822,443
|
|
|
7,028,470
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Common stock, Euro .01 par value; shares authorized: 250,000; shares issued: 108,857 and 108,857; shares outstanding: 99,936 and 104,427
|
1,288
|
|
|
1,288
|
|
||
Additional paid-in capital
|
778,516
|
|
|
800,641
|
|
||
Retained earnings
|
2,043,306
|
|
|
1,712,508
|
|
||
Treasury stock, at cost: 8,921 and 4,430 shares
|
(353,463
|
)
|
|
(206,407
|
)
|
||
Accumulated other comprehensive loss
|
(290,239
|
)
|
|
(294,040
|
)
|
||
Total CB&I shareholders’ equity
|
2,179,408
|
|
|
2,013,990
|
|
||
Noncontrolling interests
|
167,448
|
|
|
149,600
|
|
||
Total shareholders’ equity
|
2,346,856
|
|
|
2,163,590
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,169,299
|
|
|
$
|
9,192,060
|
|
|
Nine Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
|
(Unaudited)
|
||||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net income (loss)
|
$
|
420,929
|
|
|
$
|
(382,917
|
)
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
93,285
|
|
|
128,261
|
|
||
Goodwill impairment
|
—
|
|
|
453,100
|
|
||
Loss on net assets held for sale and intangible assets impairment
|
—
|
|
|
707,380
|
|
||
Deferred income taxes
|
87,161
|
|
|
(112,880
|
)
|
||
Stock-based compensation expense
|
31,172
|
|
|
48,324
|
|
||
Other operating expense, net
|
1,075
|
|
|
1,870
|
|
||
Unrealized loss on foreign currency hedges
|
1,525
|
|
|
611
|
|
||
Excess tax benefits from stock-based compensation
|
(48
|
)
|
|
(326
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Decrease (increase) in receivables, net
|
46,418
|
|
|
(157,645
|
)
|
||
Change in contracts in progress, net
|
(252,857
|
)
|
|
(783,027
|
)
|
||
Decrease (increase) in inventory
|
49,473
|
|
|
(13,111
|
)
|
||
Increase (decrease) in accounts payable
|
11,830
|
|
|
(28,671
|
)
|
||
Increase in other current and non-current assets
|
(13,106
|
)
|
|
(44,303
|
)
|
||
Increase (decrease) in other current and non-current liabilities
|
13,525
|
|
|
(36,355
|
)
|
||
(Increase) decrease in equity investments
|
(3,974
|
)
|
|
24,859
|
|
||
Change in other, net
|
8,633
|
|
|
21,408
|
|
||
Net cash provided by (used in) operating activities
|
495,041
|
|
|
(173,422
|
)
|
||
Cash Flows from Investing Activities
|
|
|
|
||||
Capital expenditures
|
(37,855
|
)
|
|
(53,894
|
)
|
||
Advances with partners of proportionately consolidated ventures, net
|
(54,158
|
)
|
|
(218,098
|
)
|
||
Proceeds from sale of property and equipment
|
2,973
|
|
|
6,273
|
|
||
Other, net
|
(62,646
|
)
|
|
(52,149
|
)
|
||
Net cash used in investing activities
|
(151,686
|
)
|
|
(317,868
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
||||
Revolving facility and other short-term (repayments) borrowings, net
|
(84,000
|
)
|
|
338,259
|
|
||
Long-term borrowings
|
—
|
|
|
700,000
|
|
||
Advances with equity method and proportionately consolidated ventures, net
|
195,645
|
|
|
184,029
|
|
||
Repayments on long-term debt
|
(112,500
|
)
|
|
(354,479
|
)
|
||
Excess tax benefits from stock-based compensation
|
48
|
|
|
326
|
|
||
Purchase of treasury stock
|
(206,443
|
)
|
|
(210,748
|
)
|
||
Issuance of stock
|
12,405
|
|
|
15,698
|
|
||
Dividends paid
|
(21,726
|
)
|
|
(22,540
|
)
|
||
Distributions to noncontrolling interests
|
(51,851
|
)
|
|
(28,662
|
)
|
||
Net cash (used in) provided by financing activities
|
(268,422
|
)
|
|
621,883
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(10,188
|
)
|
|
(58,016
|
)
|
||
Increase in cash and cash equivalents
|
64,745
|
|
|
72,577
|
|
||
Cash and cash equivalents, beginning of the year
|
550,221
|
|
|
351,323
|
|
||
Cash and cash equivalents, end of the period
|
$
|
614,966
|
|
|
$
|
423,900
|
|
|
Nine Months Ended September 30, 2016
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In Capital
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive (Loss) Income
|
|
Non -
controlling Interests
|
|
Total
Shareholders’ Equity
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||
Balance at December 31, 2015
|
104,427
|
|
|
$
|
1,288
|
|
|
$
|
800,641
|
|
|
$
|
1,712,508
|
|
|
4,430
|
|
|
$
|
(206,407
|
)
|
|
$
|
(294,040
|
)
|
|
$
|
149,600
|
|
|
$
|
2,163,590
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
352,524
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,405
|
|
|
420,929
|
|
|||||||
Change in cumulative translation adjustment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
1,294
|
|
|
1,290
|
|
|||||||
Change in unrealized fair value of cash flow hedges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,198
|
|
|
—
|
|
|
1,198
|
|
|||||||
Change in unrecognized prior service pension credits/costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(236
|
)
|
|
—
|
|
|
(236
|
)
|
|||||||
Change in unrecognized actuarial pension gains/losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,843
|
|
|
—
|
|
|
2,843
|
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,851
|
)
|
|
(51,851
|
)
|
|||||||
Dividends paid ($0.21 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,726
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,726
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
31,172
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,172
|
|
|||||||
Purchase of treasury stock
|
(5,768
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,768
|
|
|
(206,443
|
)
|
|
—
|
|
|
—
|
|
|
(206,443
|
)
|
|||||||
Issuance of stock
|
1,277
|
|
|
—
|
|
|
(53,297
|
)
|
|
—
|
|
|
(1,277
|
)
|
|
59,387
|
|
|
—
|
|
|
—
|
|
|
6,090
|
|
|||||||
Balance at September 30, 2016
|
99,936
|
|
|
$
|
1,288
|
|
|
$
|
778,516
|
|
|
$
|
2,043,306
|
|
|
8,921
|
|
|
$
|
(353,463
|
)
|
|
$
|
(290,239
|
)
|
|
$
|
167,448
|
|
|
$
|
2,346,856
|
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||||||||||||
|
Common Stock
|
|
Additional
Paid-In Capital
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive (Loss) Income
|
|
Non -
controlling Interests
|
|
Total
Shareholders’ Equity
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
Shares
|
|
Amount
|
|
|
|
|||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||
Balance at December 31, 2014
|
107,806
|
|
|
$
|
1,283
|
|
|
$
|
776,864
|
|
|
$
|
2,246,770
|
|
|
601
|
|
|
$
|
(24,428
|
)
|
|
$
|
(262,397
|
)
|
|
$
|
138,211
|
|
|
$
|
2,876,303
|
|
Net (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
(438,690
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
55,773
|
|
|
(382,917
|
)
|
|||||||
Change in cumulative translation adjustment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(57,231
|
)
|
|
(3,838
|
)
|
|
(61,069
|
)
|
|||||||
Change in unrealized fair value of cash flow hedges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
868
|
|
|
—
|
|
|
868
|
|
|||||||
Change in unrecognized prior service pension credits/costs, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(623
|
)
|
|
—
|
|
|
(623
|
)
|
|||||||
Change in unrecognized actuarial pension gains/losses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,035
|
|
|
—
|
|
|
12,035
|
|
|||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,662
|
)
|
|
(28,662
|
)
|
|||||||
Dividends paid ($0.21 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,540
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,540
|
)
|
|||||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
48,324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,324
|
|
|||||||
Issuance to treasury stock
|
—
|
|
|
5
|
|
|
19,894
|
|
|
—
|
|
|
450
|
|
|
(19,899
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Purchase of treasury stock
|
(4,480
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,480
|
|
|
(210,748
|
)
|
|
—
|
|
|
—
|
|
|
(210,748
|
)
|
|||||||
Issuance of stock
|
1,396
|
|
|
—
|
|
|
(47,418
|
)
|
|
—
|
|
|
(1,396
|
)
|
|
58,449
|
|
|
—
|
|
|
—
|
|
|
11,031
|
|
|||||||
Balance at September 30, 2015
|
104,722
|
|
|
$
|
1,288
|
|
|
$
|
797,664
|
|
|
$
|
1,785,540
|
|
|
4,135
|
|
|
$
|
(196,626
|
)
|
|
$
|
(307,348
|
)
|
|
$
|
161,484
|
|
|
$
|
2,242,002
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Costs and estimated earnings on contracts in progress
|
|
$
|
10,639,073
|
|
|
$
|
28,309,401
|
|
|
$
|
14,853,683
|
|
|
$
|
21,942,765
|
|
Billings on contracts in progress
|
|
(9,894,150
|
)
|
|
(30,047,264
|
)
|
|
(14,165,369
|
)
|
|
(23,876,876
|
)
|
||||
Contracts in Progress, net
|
|
$
|
744,923
|
|
|
$
|
(1,737,863
|
)
|
|
$
|
688,314
|
|
|
$
|
(1,934,111
|
)
|
•
|
Foreign Currency Exchange Rate Derivatives
—We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency-related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time-value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges are recognized within cost of revenue.
|
•
|
Interest Rate Derivatives
—At
September 30, 2016
, we continued to utilize a swap arrangement to hedge against interest rate variability associated with
$309,313
of our outstanding
$337,500
unsecured term loan (the “Term Loan”). The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through
September 30, 2016
. Accordingly, changes in the fair value of the swap arrangement are included in AOCI until the associated underlying exposure impacts our earnings.
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income (loss) attributable to CB&I
|
|
$
|
121,760
|
|
|
$
|
(740,433
|
)
|
|
$
|
352,524
|
|
|
$
|
(438,690
|
)
|
Weighted average shares outstanding—basic
|
|
101,102
|
|
|
105,454
|
|
|
103,725
|
|
|
107,440
|
|
||||
Effect of restricted shares/performance based shares/stock options
(1)
|
|
746
|
|
|
—
|
|
|
816
|
|
|
—
|
|
||||
Effect of directors’ deferred-fee shares
(1)
|
|
15
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Weighted average shares outstanding—diluted
|
|
101,863
|
|
|
105,454
|
|
|
104,555
|
|
|
107,440
|
|
||||
Net income (loss) attributable to CB&I per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.20
|
|
|
$
|
(7.02
|
)
|
|
$
|
3.40
|
|
|
$
|
(4.08
|
)
|
Diluted
|
|
$
|
1.20
|
|
|
$
|
(7.02
|
)
|
|
$
|
3.37
|
|
|
$
|
(4.08
|
)
|
(1)
|
Antidilutive shares excluded from diluted EPS were not material for the
three and nine months ended September 30, 2016
. The effect of restricted, performance based, stock options and directors’ deferred-fee shares were not included in the calculation of diluted EPS for the
three and nine months ended September 30, 2015
due to the net loss for the periods.
|
|
|
Three and Nine Months Ended September 30, 2015
|
||
Loss on net assets held for sale
|
|
$
|
628,280
|
|
Intangible assets impairment
|
|
79,100
|
|
|
Loss on net assets held for sale and intangible assets impairment
|
|
707,380
|
|
|
Goodwill impairment
|
|
453,100
|
|
|
Total pre-tax charge
|
|
$
|
1,160,480
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
September 30, 2015
|
||||||
Revenue
|
|
$
|
502,922
|
|
|
$
|
1,555,508
|
|
Pre-tax income
|
|
$
|
45,715
|
|
|
$
|
163,115
|
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Raw materials
|
|
$
|
71,378
|
|
|
$
|
142,170
|
|
Work in process
|
|
94,322
|
|
|
58,884
|
|
||
Finished goods
|
|
74,485
|
|
|
88,604
|
|
||
Total
|
|
$
|
240,185
|
|
|
$
|
289,658
|
|
|
|
Total
(1)
|
||
Balance at December 31, 2015
|
|
$
|
3,711,506
|
|
Foreign currency translation and other
|
|
3,679
|
|
|
Amortization of tax goodwill in excess of book goodwill
|
|
(2,577
|
)
|
|
Balance at September 30, 2016
|
|
$
|
3,712,608
|
|
(1)
|
At
September 30, 2016
, we had approximately
$453,100
of cumulative impairment losses, which were recorded during the three months ended September 30, 2015 related to the sale of our Nuclear Operations.
|
•
|
Engineering & Construction
—Our Engineering & Construction operating group represented a reporting unit.
|
•
|
Fabrication Services
—Our Fabrication Services operating group included
three
reporting units: Steel Plate Structures, Fabrication & Manufacturing and Engineered Products.
|
•
|
Technology
—Our Technology operating group represented a reporting unit.
|
•
|
Capital Services
—Our Capital Services operating group included
two
reporting units: Facilities & Plant Services and Federal Services.
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
Weighted Average Life
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||
Backlog and customer relationships
(1)
|
|
18 Years
|
|
$
|
261,586
|
|
|
$
|
(60,535
|
)
|
|
$
|
281,072
|
|
|
$
|
(66,666
|
)
|
Process technologies
|
|
15 Years
|
|
272,894
|
|
|
(130,023
|
)
|
|
271,028
|
|
|
(115,608
|
)
|
||||
Tradenames
|
|
10 Years
|
|
64,887
|
|
|
(29,231
|
)
|
|
64,790
|
|
|
(23,667
|
)
|
||||
Total
(2)
|
|
16 Years
|
|
$
|
599,367
|
|
|
$
|
(219,789
|
)
|
|
$
|
616,890
|
|
|
$
|
(205,941
|
)
|
(1)
|
Backlog and customer relationships intangibles totaling approximately
$19,500
became fully amortized during the three months ended March 31, 2016 and were therefore removed from the
September 30, 2016
gross carrying and accumulated amortization balances above.
|
(2)
|
The remaining decrease in other intangibles, net during the
nine months ended September 30, 2016
primarily related to amortization expense of approximately
$32,300
.
|
•
|
CB&I/Zachry—
We have a venture with Zachry (CB&I—
50%
/ Zachry—
50%
) to perform EPC work for
two
liquefied natural gas (“LNG”) liquefaction trains in Freeport, Texas. Our proportionate share of the venture project value is approximately
$2,700,000
. In addition, we have subcontract and risk sharing arrangements with Chiyoda to support our responsibilities to the venture. The costs of these arrangements are recorded in cost of revenue.
|
•
|
CB&I/Zachry/Chiyoda—
We have a venture with Zachry and Chiyoda (CB&I—
33.3%
/ Zachry—
33.3%
/ Chiyoda—
33.3%
) to perform EPC work for an additional LNG liquefaction train at the aforementioned project site in Freeport, Texas. Our proportionate share of the venture project value is approximately
$675,000
.
|
•
|
CB&I/Chiyoda—
We have a venture with Chiyoda (CB&I—
50%
/ Chiyoda—
50%
) to perform EPC work for
three
LNG liquefaction trains in Hackberry, Louisiana. Our proportionate share of the venture project value is approximately
$3,100,000
.
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
CB&I/Zachry
|
|
|
|
|
||||
Current assets
(1)
|
|
$
|
291,047
|
|
|
$
|
298,916
|
|
Non-current assets
|
|
3,837
|
|
|
6,689
|
|
||
Total assets
|
|
$
|
294,884
|
|
|
$
|
305,605
|
|
Current liabilities
(1)
|
|
$
|
434,367
|
|
|
$
|
454,943
|
|
CB&I/Zachry/Chiyoda
|
|
|
|
|
||||
Current assets
(1)
|
|
$
|
84,983
|
|
|
$
|
84,696
|
|
Current liabilities
(1)
|
|
$
|
76,039
|
|
|
$
|
86,124
|
|
CB&I/Chiyoda
|
|
|
|
|
||||
Current assets
(1)
|
|
$
|
401,896
|
|
|
$
|
424,781
|
|
Current liabilities
(1)
|
|
$
|
263,162
|
|
|
$
|
433,526
|
|
(1)
|
Our venture arrangements allow for excess working capital of the ventures to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. Accordingly, at a reporting period end a venture may have advances to its partners which are reflected as an advance receivable within current assets of the venture. At
September 30, 2016
and
December 31, 2015
, other current assets on the Balance Sheet included approximately
$379,200
and
$325,000
, respectively, related to our proportionate share of advances from the ventures to our venture partners, and other current liabilities included approximately
$392,500
and
$334,900
, respectively, related to advances to CB&I from the ventures.
|
•
|
Chevron-Lummus Global (“CLG”)—
We have a venture with Chevron (CB&I—
50%
/ Chevron—
50%
), which provides licenses, engineering services and catalyst, primarily for the refining industry. As sufficient capital investments in CLG have been made by the venture partners, it does not qualify as a VIE.
|
•
|
NetPower LLC (“NetPower”)—
We have a venture with Exelon and 8 Rivers Capital (CB&I—
33.3%
/ Exelon—
33.3%
/ 8 Rivers Capital—
33.3%
), which was formed for the purpose of developing, commercializing and monetizing a new natural gas power generation system that recovers essentially all the carbon dioxide produced during combustion. NetPower is building a first-of-its-kind demonstration plant which is being funded by contributions and services from the venture partners and other parties. We have determined the venture to be a VIE; however, we do not effectively control NetPower and therefore do not consolidate it. Our cash commitment for NetPower totals
$47,300
and at
September 30, 2016
, we had made cumulative investments totaling approximately
$32,900
of the
$47,300
.
|
•
|
CB&I/CTCI Corporation (“CTCI”)—
We have a venture with CTCI (CB&I—
50%
/ CTIC—
50%
) to perform EPC work for a liquids ethylene cracker and associated units in Sohar, Oman. We have determined the venture to be a VIE; however, we do not effectively control CB&I/CTCI and therefore do not consolidate it. Our proportionate share of the venture project value is approximately
$1,400,000
. Our venture arrangement allows for excess working capital of the venture to be advanced to the venture partners. Such advances are returned to the venture for working capital needs as necessary. At
September 30, 2016
, other current liabilities included approximately
$138,000
related to advances to CB&I from the venture.
|
•
|
CB&I/Kentz—
We have a venture with Kentz (CB&I—
65%
/ Kentz—
35%
) to perform the structural, mechanical, piping, electrical and instrumentation work on, and to provide commissioning support for,
three
LNG trains, including associated utilities and a gas processing and compression plant, for the Gorgon LNG project, located on Barrow Island, Australia. Our venture project value is approximately
$5,800,000
.
|
•
|
CB&I/AREVA—
We have a venture with AREVA (CB&I
—
52%
/ AREVA—
48%
) to design, license and construct a mixed oxide fuel fabrication facility in Aiken, South Carolina. Our venture project value is approximately
$5,800,000
.
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
CB&I/Kentz
|
|
|
|
|
||||
Current assets
|
|
$
|
162,499
|
|
|
$
|
214,291
|
|
Current liabilities
|
|
$
|
171,855
|
|
|
$
|
191,471
|
|
CB&I/AREVA
|
|
|
|
|
||||
Current assets
|
|
$
|
23,864
|
|
|
$
|
24,269
|
|
Current liabilities
|
|
$
|
55,503
|
|
|
$
|
65,674
|
|
All Other
(1)
|
|
|
|
|
||||
Current assets
|
|
$
|
109,272
|
|
|
$
|
112,532
|
|
Non-current assets
|
|
17,647
|
|
|
19,253
|
|
||
Total assets
|
|
$
|
126,919
|
|
|
$
|
131,785
|
|
Current liabilities
|
|
$
|
22,517
|
|
|
$
|
32,001
|
|
(1)
|
Other ventures that we consolidate are not individually material to our financial results and are therefore aggregated as “All Other”.
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
Current
|
|
|
|
|
||||
Revolving facility and other short-term borrowings
|
|
$
|
569,000
|
|
|
$
|
653,000
|
|
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
375,000
|
|
|
150,000
|
|
||
Less: unamortized debt issuance costs
|
|
(2,314
|
)
|
|
(2,129
|
)
|
||
Current maturities of long-term debt, net of unamortized debt issuance costs
|
|
372,686
|
|
|
147,871
|
|
||
Current debt, net of unamortized debt issuance costs
|
|
$
|
941,686
|
|
|
$
|
800,871
|
|
Long-Term
|
|
|
|
|
||||
Term Loan: $1,000,000 term loan (interest at LIBOR plus a floating margin)
|
|
$
|
337,500
|
|
|
$
|
450,000
|
|
Second Term Loan: $500,000 term loan (interest at LIBOR plus a floating margin)
|
|
500,000
|
|
|
500,000
|
|
||
Senior Notes: $800,000 senior notes, series A-D (fixed interest ranging from 4.15% to 5.30%)
|
|
800,000
|
|
|
800,000
|
|
||
Second Senior Notes: $200,000 senior notes (fixed interest of 4.53%)
|
|
200,000
|
|
|
200,000
|
|
||
Less: unamortized debt issuance costs
|
|
(6,386
|
)
|
|
(8,168
|
)
|
||
Less: current maturities of long-term debt
|
|
(375,000
|
)
|
|
(150,000
|
)
|
||
Long-term debt, net of unamortized debt issuance costs
|
|
$
|
1,456,114
|
|
|
$
|
1,791,832
|
|
•
|
Series A—Interest due semi-annually at a fixed rate of
4.15%
, with principal of
$150,000
due in December 2017
|
•
|
Series B—Interest due semi-annually at a fixed rate of
4.57%
, with principal of
$225,000
due in December 2019
|
•
|
Series C—Interest due semi-annually at a fixed rate of
5.15%
, with principal of
$275,000
due in December 2022
|
•
|
Series D—Interest due semi-annually at a fixed rate of
5.30%
, with principal of
$150,000
due in December 2024
|
•
|
Level 1
—Fair value is based upon quoted prices in active markets.
|
•
|
Level 2
—Fair value is based upon internally-developed models that use, as their basis, readily observable market parameters. Our derivative positions are classified within level 2 of the valuation hierarchy as they are valued using quoted market prices for similar assets and liabilities in active markets. These level 2 derivatives are valued utilizing an income approach, which discounts future cash flow based upon current market expectations and adjusts for credit risk.
|
•
|
Level 3
—Fair value is based upon internally-developed models that use, as their basis, significant unobservable market parameters. We did not have any level 3 classifications at
September 30, 2016
or
December 31, 2015
.
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Derivative Assets
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other current assets
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
—
|
|
|
$
|
1,111
|
|
|
$
|
—
|
|
|
$
|
3,344
|
|
|
$
|
—
|
|
|
$
|
3,344
|
|
Other non-current assets
|
|
—
|
|
|
305
|
|
|
—
|
|
|
305
|
|
|
—
|
|
|
180
|
|
|
—
|
|
|
180
|
|
||||||||
Total assets at fair value
|
|
$
|
—
|
|
|
$
|
1,416
|
|
|
$
|
—
|
|
|
$
|
1,416
|
|
|
$
|
—
|
|
|
$
|
3,524
|
|
|
$
|
—
|
|
|
$
|
3,524
|
|
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other current liabilities
|
|
$
|
—
|
|
|
$
|
(3,186
|
)
|
|
$
|
—
|
|
|
$
|
(3,186
|
)
|
|
$
|
—
|
|
|
$
|
(7,568
|
)
|
|
$
|
—
|
|
|
$
|
(7,568
|
)
|
Other non-current liabilities
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(607
|
)
|
|
—
|
|
|
(607
|
)
|
||||||||
Total liabilities at fair value
|
|
$
|
—
|
|
|
$
|
(3,243
|
)
|
|
$
|
—
|
|
|
$
|
(3,243
|
)
|
|
$
|
—
|
|
|
$
|
(8,175
|
)
|
|
$
|
—
|
|
|
$
|
(8,175
|
)
|
(1)
|
We are exposed to credit risk on our hedging instruments associated with potential counterparty non-performance, and the fair value of our derivatives reflects this credit risk. The total level 2 assets at fair value above represent the maximum loss that we would incur on our outstanding hedges if the applicable counterparties failed to perform according to the hedge contracts. To help mitigate counterparty credit risk, we transact only with counterparties that are rated as investment grade or higher and monitor all counterparties on a continuous basis.
|
|
|
Other Current and
Non-Current Assets
|
|
Other Current and
Non-Current Liabilities
|
||||||||||||
|
|
September 30,
2016 |
|
December 31,
2015 |
|
September 30,
2016 |
|
December 31,
2015 |
||||||||
Derivatives designated as cash flow hedges
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
471
|
|
|
$
|
(69
|
)
|
|
$
|
(192
|
)
|
Foreign currency
|
|
373
|
|
|
944
|
|
|
(9
|
)
|
|
(1,858
|
)
|
||||
Fair value
|
|
$
|
373
|
|
|
$
|
1,415
|
|
|
$
|
(78
|
)
|
|
$
|
(2,050
|
)
|
Derivatives not designated as cash flow hedges
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
|
$
|
1,043
|
|
|
$
|
2,109
|
|
|
$
|
(3,165
|
)
|
|
$
|
(6,125
|
)
|
Fair value
|
|
$
|
1,043
|
|
|
$
|
2,109
|
|
|
$
|
(3,165
|
)
|
|
$
|
(6,125
|
)
|
Total fair value
|
|
$
|
1,416
|
|
|
$
|
3,524
|
|
|
$
|
(3,243
|
)
|
|
$
|
(8,175
|
)
|
|
|
Gross
Amounts Recognized (i) |
|
Gross Amounts
Offset on the Balance Sheet (ii) |
|
Net Amounts
Presented on the Balance Sheet (iii) = (i) - (ii) |
|
Gross Amounts Not Offset on
the Balance Sheet (iv) |
|
Net Amount
(v) = (iii) - (iv) |
||||||||||||||
|
|
Financial
Instruments |
|
Cash Collateral Received
|
|
|||||||||||||||||||
Derivative Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign currency
|
|
1,416
|
|
|
—
|
|
|
1,416
|
|
|
(13
|
)
|
|
—
|
|
|
1,403
|
|
||||||
Total assets
|
|
$
|
1,416
|
|
|
$
|
—
|
|
|
$
|
1,416
|
|
|
$
|
(13
|
)
|
|
$
|
—
|
|
|
$
|
1,403
|
|
Derivative Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate
|
|
$
|
(69
|
)
|
|
$
|
—
|
|
|
$
|
(69
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(69
|
)
|
Foreign currency
|
|
(3,174
|
)
|
|
—
|
|
|
(3,174
|
)
|
|
13
|
|
|
—
|
|
|
(3,161
|
)
|
||||||
Total liabilities
|
|
$
|
(3,243
|
)
|
|
$
|
—
|
|
|
$
|
(3,243
|
)
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
(3,230
|
)
|
(1)
|
Net unrealized gains totaling
$133
are anticipated to be reclassified from AOCI into earnings during the next
12 months
due to settlement of the associated underlying obligations.
|
|
|
Amount of Gain (Loss) Recognized in Earnings
|
||||||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Derivatives not designated as cash flow hedges
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency
|
|
$
|
(3,058
|
)
|
|
$
|
7,969
|
|
|
$
|
(12,217
|
)
|
|
$
|
5,686
|
|
Total
|
|
$
|
(3,058
|
)
|
|
$
|
7,969
|
|
|
$
|
(12,217
|
)
|
|
$
|
5,686
|
|
|
|
Pension Plans
|
|
Other Postretirement Plans
|
||||
Contributions made through September 30, 2016
|
|
$
|
12,379
|
|
|
$
|
1,826
|
|
Contributions expected for the remainder of 2016
|
|
4,820
|
|
|
608
|
|
||
Total contributions expected for 2016
|
|
$
|
17,199
|
|
|
$
|
2,434
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Pension Plans
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
2,364
|
|
|
$
|
2,656
|
|
|
$
|
7,075
|
|
|
$
|
7,992
|
|
Interest cost
|
|
5,754
|
|
|
5,849
|
|
|
17,647
|
|
|
17,500
|
|
||||
Expected return on plan assets
|
|
(6,548
|
)
|
|
(7,135
|
)
|
|
(20,165
|
)
|
|
(21,341
|
)
|
||||
Amortization of prior service credits
|
|
(156
|
)
|
|
(156
|
)
|
|
(468
|
)
|
|
(467
|
)
|
||||
Recognized net actuarial losses
|
|
1,423
|
|
|
1,921
|
|
|
4,359
|
|
|
5,759
|
|
||||
Net periodic benefit cost
|
|
$
|
2,837
|
|
|
$
|
3,135
|
|
|
$
|
8,448
|
|
|
$
|
9,443
|
|
Other Postretirement Plans
|
|
|
|
|
|
|
|
|
||||||||
Service cost
|
|
$
|
176
|
|
|
$
|
158
|
|
|
$
|
528
|
|
|
$
|
593
|
|
Interest cost
|
|
340
|
|
|
357
|
|
|
1,021
|
|
|
1,158
|
|
||||
Recognized net actuarial gains
|
|
(840
|
)
|
|
(757
|
)
|
|
(2,521
|
)
|
|
(2,022
|
)
|
||||
Net periodic benefit income
|
|
$
|
(324
|
)
|
|
$
|
(242
|
)
|
|
$
|
(972
|
)
|
|
$
|
(271
|
)
|
|
|
Currency
Translation Adjustment (1) |
|
Unrealized
Fair Value Of Cash Flow Hedges |
|
Defined Benefit
Pension and Other Postretirement Plans |
|
Total
|
||||||||
Balance at December 31, 2015
|
|
$
|
(209,281
|
)
|
|
$
|
(967
|
)
|
|
$
|
(83,792
|
)
|
|
$
|
(294,040
|
)
|
OCI before reclassifications
|
|
(4
|
)
|
|
569
|
|
|
1,209
|
|
|
1,774
|
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
629
|
|
|
1,398
|
|
|
2,027
|
|
||||
Net OCI
|
|
(4
|
)
|
|
1,198
|
|
|
2,607
|
|
|
3,801
|
|
||||
Balance at September 30, 2016
|
|
$
|
(209,285
|
)
|
|
$
|
231
|
|
|
$
|
(81,185
|
)
|
|
$
|
(290,239
|
)
|
(1)
|
During the
nine months ended September 30, 2016
, the currency translation adjustment component of AOCI was not materially impacted by net movements in the
Australian Dollar
,
British Pound
,
Colombian Peso
and
Euro
exchange rates against the U.S. Dollar.
|
|
|
Amount Reclassified From AOCI
|
||
Unrealized Fair Value Of Cash Flow Hedges
(1)
|
|
|
||
Interest rate derivatives (interest expense)
|
|
$
|
454
|
|
Foreign currency derivatives (cost of revenue)
|
|
772
|
|
|
Total before tax
|
|
$
|
1,226
|
|
Tax
|
|
(597
|
)
|
|
Total net of tax
|
|
$
|
629
|
|
Defined Benefit Pension and Other Postretirement Plans
(2)
|
|
|
||
Amortization of prior service credits
|
|
$
|
(468
|
)
|
Recognized net actuarial losses
|
|
1,838
|
|
|
Total before tax
|
|
$
|
1,370
|
|
Tax
|
|
28
|
|
|
Total net of tax
|
|
$
|
1,398
|
|
(1)
|
See
Note 9
for further discussion of our cash flow hedges, including the total value reclassified from AOCI to earnings.
|
(2)
|
See
Note 10
for further discussion of our defined benefit and other postretirement plans, including the components of net periodic benefit cost.
|
|
|
Shares
(1)
|
|
Weighted Average
Grant-Date Fair
Value per Share
|
|||
RSUs
|
|
1,057
|
|
|
$
|
33.36
|
|
Financial performance based shares
|
|
665
|
|
|
$
|
33.56
|
|
Stock performance based shares
|
|
166
|
|
|
$
|
37.41
|
|
Total shares granted
|
|
1,888
|
|
|
|
(1)
|
No
stock options were granted during the
nine months ended September 30, 2016
.
|
|
|
Shares
|
|
Financial performance based shares (issued upon vesting)
|
|
370
|
|
RSUs (issued upon vesting)
|
|
504
|
|
Stock options (issued upon exercise)
|
|
44
|
|
ESPP shares (issued upon sale)
|
|
359
|
|
Total shares issued
|
|
1,277
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenue
|
|
|
|
|
|
|
|
|
||||||||
Engineering & Construction
|
|
$
|
1,660,149
|
|
|
$
|
1,946,426
|
|
|
$
|
4,719,603
|
|
|
$
|
5,681,134
|
|
Fabrication Services
|
|
512,772
|
|
|
640,201
|
|
|
1,556,972
|
|
|
1,889,340
|
|
||||
Technology
|
|
90,487
|
|
|
118,269
|
|
|
219,561
|
|
|
310,605
|
|
||||
Capital Services
|
|
512,769
|
|
|
616,786
|
|
|
1,643,389
|
|
|
1,773,461
|
|
||||
Total revenue
|
|
$
|
2,776,177
|
|
|
$
|
3,321,682
|
|
|
$
|
8,139,525
|
|
|
$
|
9,654,540
|
|
Income (Loss) From Operations
|
|
|
|
|
|
|
|
|
||||||||
Engineering & Construction
(1)
|
|
$
|
133,946
|
|
|
$
|
(1,007,354
|
)
|
|
$
|
341,504
|
|
|
$
|
(694,469
|
)
|
Fabrication Services
|
|
55,624
|
|
|
61,408
|
|
|
160,726
|
|
|
169,744
|
|
||||
Technology
|
|
27,310
|
|
|
31,911
|
|
|
76,718
|
|
|
116,676
|
|
||||
Capital Services
|
|
16,642
|
|
|
24,073
|
|
|
44,647
|
|
|
48,992
|
|
||||
Total income (loss) from operations
|
|
$
|
233,522
|
|
|
$
|
(889,962
|
)
|
|
$
|
623,595
|
|
|
$
|
(359,057
|
)
|
(1)
|
As discussed further in
Note 4
, due to the Agreement to sell our Nuclear Operations, during the
three months ended September 30, 2015
, we recorded a non-cash pre-tax charge of approximately
$1,160,500
within our Engineering & Construction operating group.
|
|
|
September 30, 2016
|
|
% of Total
|
|
December 31, 2015
|
|
% of Total
|
||||||||||||||||||
Backlog
|
|
(In thousands)
|
||||||||||||||||||||||||
Engineering & Construction
|
|
$
|
11,070,405
|
|
|
56%
|
|
$
|
12,892,804
|
|
|
57%
|
||||||||||||||
Fabrication Services
|
|
2,309,333
|
|
|
12%
|
|
3,107,500
|
|
|
14%
|
||||||||||||||||
Technology
|
|
940,960
|
|
|
5%
|
|
963,058
|
|
|
4%
|
||||||||||||||||
Capital Services
|
|
5,451,159
|
|
|
27%
|
|
5,680,577
|
|
|
25%
|
||||||||||||||||
Total backlog
|
|
$
|
19,771,857
|
|
|
|
|
|
|
$
|
22,643,939
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||
|
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
||||||||||
New Awards
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engineering & Construction
|
|
$
|
1,492,429
|
|
|
55%
|
|
$
|
2,407,835
|
|
|
60%
|
|
$
|
2,779,238
|
|
|
49%
|
|
$
|
4,923,193
|
|
|
50%
|
||
Fabrication Services
|
|
225,716
|
|
|
8%
|
|
840,658
|
|
|
21%
|
|
852,383
|
|
|
15%
|
|
2,612,747
|
|
|
26%
|
||||||
Technology
|
|
119,348
|
|
|
5%
|
|
97,539
|
|
|
3%
|
|
310,737
|
|
|
5%
|
|
255,648
|
|
|
3%
|
||||||
Capital Services
|
|
878,930
|
|
|
32%
|
|
654,270
|
|
|
16%
|
|
1,730,303
|
|
|
31%
|
|
2,084,413
|
|
|
21%
|
||||||
Total new awards
|
|
$
|
2,716,423
|
|
|
|
|
$
|
4,000,302
|
|
|
|
|
$
|
5,672,661
|
|
|
|
|
$
|
9,876,001
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engineering & Construction
|
|
$
|
1,660,149
|
|
|
60%
|
|
$
|
1,946,426
|
|
|
59%
|
|
$
|
4,719,603
|
|
|
58%
|
|
$
|
5,681,134
|
|
|
59%
|
||
Fabrication Services
|
|
512,772
|
|
|
19%
|
|
640,201
|
|
|
19%
|
|
1,556,972
|
|
|
19%
|
|
1,889,340
|
|
|
20%
|
||||||
Technology
|
|
90,487
|
|
|
3%
|
|
118,269
|
|
|
3%
|
|
219,561
|
|
|
3%
|
|
310,605
|
|
|
3%
|
||||||
Capital Services
|
|
512,769
|
|
|
18%
|
|
616,786
|
|
|
19%
|
|
1,643,389
|
|
|
20%
|
|
1,773,461
|
|
|
18%
|
||||||
Total revenue
|
|
$
|
2,776,177
|
|
|
|
|
$
|
3,321,682
|
|
|
|
|
$
|
8,139,525
|
|
|
|
|
$
|
9,654,540
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
||||||||||
Income (Loss) From Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Engineering & Construction
|
|
$
|
133,946
|
|
|
8.1%
|
|
$
|
(1,007,354
|
)
|
|
(51.8)%
|
|
$
|
341,504
|
|
|
7.2%
|
|
$
|
(694,469
|
)
|
|
(12.2)%
|
||
Fabrication Services
|
|
55,624
|
|
|
10.8%
|
|
61,408
|
|
|
9.6%
|
|
160,726
|
|
|
10.3%
|
|
169,744
|
|
|
9.0%
|
||||||
Technology
|
|
27,310
|
|
|
30.2%
|
|
31,911
|
|
|
27.0%
|
|
76,718
|
|
|
34.9%
|
|
116,676
|
|
|
37.6%
|
||||||
Capital Services
|
|
16,642
|
|
|
3.2%
|
|
24,073
|
|
|
3.9%
|
|
44,647
|
|
|
2.7%
|
|
48,992
|
|
|
2.8%
|
||||||
Total income (loss) from operations
|
|
$
|
233,522
|
|
|
8.4%
|
|
$
|
(889,962
|
)
|
|
(26.8)%
|
|
$
|
623,595
|
|
|
7.7%
|
|
$
|
(359,057
|
)
|
|
(3.7)%
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
|
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
||||||||
Excluding Nuclear Operations
|
|
$
|
2,776,177
|
|
|
100%
|
|
$
|
2,818,760
|
|
|
85%
|
|
$
|
8,139,525
|
|
|
100%
|
|
$
|
8,099,032
|
|
|
84%
|
Nuclear Operations
|
|
—
|
|
|
—%
|
|
502,922
|
|
|
15%
|
|
—
|
|
|
—%
|
|
1,555,508
|
|
|
16%
|
||||
Total revenue
|
|
$
|
2,776,177
|
|
|
|
|
$
|
3,321,682
|
|
|
|
|
$
|
8,139,525
|
|
|
|
|
$
|
9,654,540
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
|
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
||||||||
Excluding Nuclear Operations
|
|
$
|
326,568
|
|
|
11.8%
|
|
$
|
325,502
|
|
|
11.5%
|
|
$
|
908,699
|
|
|
11.2%
|
|
$
|
948,596
|
|
|
11.7%
|
Nuclear Operations
|
|
—
|
|
|
—%
|
|
52,215
|
|
|
10.4%
|
|
—
|
|
|
—%
|
|
182,415
|
|
|
11.7%
|
||||
Total gross profit
|
|
$
|
326,568
|
|
|
11.8%
|
|
$
|
377,717
|
|
|
11.4%
|
|
$
|
908,699
|
|
|
11.2%
|
|
$
|
1,131,011
|
|
|
11.7%
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
|
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
||||||||
Excluding Nuclear Operations and Charge
|
|
$
|
233,522
|
|
|
8.4%
|
|
$
|
224,803
|
|
|
8.0%
|
|
$
|
623,595
|
|
|
7.7%
|
|
$
|
638,308
|
|
|
7.9%
|
Nuclear Operations
|
|
—
|
|
|
—%
|
|
45,715
|
|
|
9.1%
|
|
—
|
|
|
—%
|
|
163,115
|
|
|
10.5%
|
||||
Charge related to Nuclear Operations
|
|
—
|
|
|
—%
|
|
(1,160,480
|
)
|
|
—%
|
|
—
|
|
|
—%
|
|
(1,160,480
|
)
|
|
—%
|
||||
Total income (loss) from operations
|
|
$
|
233,522
|
|
|
8.4%
|
|
$
|
(889,962
|
)
|
|
(26.8)%
|
|
$
|
623,595
|
|
|
7.7%
|
|
$
|
(359,057
|
)
|
|
(3.7)%
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
|
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
|
2016
|
|
% of
Total |
|
2015
|
|
% of
Total |
||||||||
Excluding Nuclear Operations
|
|
$
|
1,660,149
|
|
|
100%
|
|
$
|
1,443,504
|
|
|
74%
|
|
$
|
4,719,603
|
|
|
100%
|
|
$
|
4,125,626
|
|
|
73%
|
Nuclear Operations
|
|
—
|
|
|
—%
|
|
502,922
|
|
|
26%
|
|
—
|
|
|
—%
|
|
1,555,508
|
|
|
27%
|
||||
Total revenue
|
|
$
|
1,660,149
|
|
|
|
|
$
|
1,946,426
|
|
|
|
|
$
|
4,719,603
|
|
|
|
|
$
|
5,681,134
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
|
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
|
2016
|
|
% of
Revenue |
|
2015
|
|
% of
Revenue |
||||||||
Excluding Nuclear Operations and Charge
|
|
$
|
133,946
|
|
|
8.1%
|
|
$
|
107,411
|
|
|
7.4%
|
|
$
|
341,504
|
|
|
7.2%
|
|
$
|
302,896
|
|
|
7.3%
|
Nuclear Operations
|
|
—
|
|
|
—%
|
|
45,715
|
|
|
9.1%
|
|
—
|
|
|
—%
|
|
163,115
|
|
|
10.5%
|
||||
Charge related to Nuclear Operations
|
|
—
|
|
|
—%
|
|
(1,160,480
|
)
|
|
—%
|
|
—
|
|
|
—%
|
|
(1,160,480
|
)
|
|
—%
|
||||
Total income (loss) from operations
|
|
$
|
133,946
|
|
|
8.1%
|
|
$
|
(1,007,354
|
)
|
|
(51.8)%
|
|
$
|
341,504
|
|
|
7.2%
|
|
$
|
(694,469
|
)
|
|
(12.2)%
|
|
September 30,
2016 |
|
December 31,
2015 |
|
Change
|
||||||
|
(In thousands)
|
||||||||||
Total billings in excess of costs and estimated earnings
(1)
|
$
|
(1,737,863
|
)
|
|
$
|
(1,934,111
|
)
|
|
$
|
196,248
|
|
Total costs and estimated earnings in excess of billings
(1)
|
744,923
|
|
|
688,314
|
|
|
56,609
|
|
|||
Contracts in Progress, net
|
(992,940
|
)
|
|
(1,245,797
|
)
|
|
252,857
|
|
|||
Accounts receivable, net
|
1,284,799
|
|
|
1,331,217
|
|
|
(46,418
|
)
|
|||
Inventory
|
240,185
|
|
|
289,658
|
|
|
(49,473
|
)
|
|||
Accounts payable
|
(1,173,907
|
)
|
|
(1,162,077
|
)
|
|
(11,830
|
)
|
|||
Contract Capital, net
|
$
|
(641,863
|
)
|
|
$
|
(786,999
|
)
|
|
$
|
145,136
|
|
(1)
|
Represents our cash position relative to revenue recognized on projects, with (i) billings in excess of costs and estimated earnings representing a liability reflective of future cash expenditures and non-cash earnings, and (ii) costs and estimated earnings in excess of billings representing an asset reflective of future cash receipts.
|
•
|
Series A—Interest due semi-annually at a fixed rate of
4.15%
, with principal of
$150.0 million
due in December 2017
|
•
|
Series B—Interest due semi-annually at a fixed rate of
4.57%
, with principal of
$225.0 million
due in December 2019
|
•
|
Series C—Interest due semi-annually at a fixed rate of
5.15%
, with principal of
$275.0 million
due in December 2022
|
•
|
Series D—Interest due semi-annually at a fixed rate of
5.30%
, with principal of
$150.0 million
due in December 2024
|
•
|
Engineering & Construction
—Our Engineering & Construction operating group represented a reporting unit.
|
•
|
Fabrication Services
—Our Fabrication Services operating group included three reporting units: Steel Plate Structures, Fabrication & Manufacturing and Engineered Products.
|
•
|
Technology
—Our Technology operating group represented a reporting unit.
|
•
|
Capital Services
—Our Capital Services operating group included two reporting units: Facilities & Plant Services and Federal Services.
|
•
|
Federal Services
—Goodwill associated with the Federal Services reporting unit was approximately $190.0 million at October 1, 2015, and the fair value of the reporting unit exceeded its net book value by approximately 12%. Key assumptions used in deriving the reporting unit’s fair value included a discount rate of 11.5%; an EBITDA CAGR of approximately 12% from 2016 through 2022; and a terminal growth rate of 2.5%.
|
•
|
Facilities & Plant Services
—Goodwill associated with the Facilities & Plant Services reporting unit was approximately $695.0 million at October 1, 2015, and the fair value of the reporting unit exceeded its net book value by approximately 10%. Key assumptions used in deriving the reporting unit’s fair value included a discount rate of 10%; an EBITDA CAGR of approximately 8% from 2016 through 2022; and a terminal growth rate of 2.5%.
|
•
|
Other Factors
—The fair value of each of our reporting units is also sensitive to changes in estimated discount rates. A hypothetical change in a reporting unit’s discount rate of 0.5% would have resulted in a change in the fair value of the reporting unit by approximately 6%.
|
•
|
Foreign Currency Exchange Rate Derivatives—
We do not engage in currency speculation; however, we utilize foreign currency exchange rate derivatives on an ongoing basis to hedge against certain foreign currency related operating exposures. We generally seek hedge accounting treatment for contracts used to hedge operating exposures and designate them as cash flow hedges. Therefore, gains and losses, exclusive of credit risk and forward points (which represent the time value component of the fair value of our derivative positions), are included in AOCI until the associated underlying operating exposure impacts our earnings. Changes in the fair value of (1) credit risk and forward points, (2) instruments deemed ineffective during the period, and (3) instruments that we do not designate as cash flow hedges, are recognized within cost of revenue.
|
•
|
Interest Rate Derivatives—
At
September 30, 2016
, we continued to utilize a swap arrangement to hedge against interest rate variability associated with
$309.3 million
of our outstanding
$337.5 million
Term Loan. The swap arrangement has been designated as a cash flow hedge as its critical terms matched those of the Term Loan at inception and through
September 30, 2016
. Accordingly, changes in the fair value of the swap arrangement are included in AOCI until the associated underlying exposure impacts our earnings.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plan
(1)(2)
|
|||||
|
|
(a)
|
|
(b)
|
|
(c)
|
|
(d)
|
|||||
7/1/2016 - 7/31/2016
|
|
4,221
|
|
|
$
|
36.56
|
|
|
4,221
|
|
|
5,773
|
|
8/1/2016 - 8/31/2016
|
|
1,301
|
|
|
$
|
33.72
|
|
|
1,301
|
|
|
4,472
|
|
Total
|
|
5,522
|
|
|
$
|
35.89
|
|
|
5,522
|
|
|
4,472
|
|
(1)
|
Table does not include shares withheld for tax purposes or forfeitures under our equity plans.
|
(2)
|
On May 4, 2016, our shareholders authorized us to repurchase up to 10% of our issued share capital (or approximately
10.0 million
shares based on the number of shares currently outstanding) through November 4, 2017. However, the number of shares repurchased in the future, if any, and the timing and manner of any repurchases are determined by us in light of prevailing market conditions, our available resources and other factors, including those discussed elsewhere in this Quarterly Report on Form 10-Q.
|
10.1
(1)
|
|
Chicago Bridge & Iron Savings Plan as amended and restated as of January 1, 2016
|
|
|
|
31.1
(1)
|
|
Certification of the Company’s Chief Executive Officer pursuant to Rule 13A-14 of the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
31.2
(1)
|
|
Certification of the Company’s Chief Financial Officer pursuant to Rule 13A-14 of the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
32.1
(1)
|
|
Certification of the Company’s Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
32.2
(1)
|
|
Certification of the Company’s Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
101.INS
(1),(2)
|
|
XBRL Instance Document
|
|
|
|
101.SCH
(1),(2)
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
(1),(2)
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
(1),(2)
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
(1),(2)
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
(1),(2)
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
(1)
|
Filed herewith
|
(2)
|
Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations for the
three and nine months ended September 30, 2016 and 2015
, (ii) the Condensed Consolidated Statements of Comprehensive Income for the
three and nine months ended September 30, 2016 and 2015
, (iii) the Condensed Consolidated Balance Sheets at
September 30, 2016
and
December 31, 2015
, (iv) the Condensed Consolidated Statements of Cash Flows for the
nine months ended September 30, 2016
and
2015
, (v) the Condensed Consolidated Statements of Changes in Shareholders’ Equity for the
nine months ended September 30, 2016
and
2015
, and (vi) the Notes to Financial Statements.
|
|
|
|
Chicago Bridge & Iron Company N.V.
|
|
|
|
|
By:
|
Chicago Bridge & Iron Company B.V.
|
|
|
|
Its:
|
Managing Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Michael S. Taff
|
|
|
|
|
Michael S. Taff
|
|
|
|
|
Managing Director
|
|
|
|
|
(Principal Financial Officer and Duly Authorized Officer)
|
|
|
PAGE
|
|
|
Adoption
|
1
|
|
|
Adoption, Amendment and Restatement
|
1
|
|
|
|
|
|
Article
II
|
|
Definitions
|
2
|
2.01
|
|
"Account"
|
2
|
2.02
|
|
"Account Balance"
|
2
|
2.03
|
|
"Active Account"
|
2
|
2.04
|
|
"Active Participant"
|
3
|
2.05
|
|
"Authorized Leave of Absence"
|
4
|
2.06
|
|
"Beneficiary"
|
4
|
2.07
|
|
"Board"
|
4
|
2.08
|
|
"Code"
|
4
|
2.09
|
|
"Company"
|
4
|
2.10
|
|
"Company Contributions"
|
4
|
2.11
|
|
"Company Stock"
|
4
|
2.12
|
|
"Company Stock Fund"
|
4
|
2.13
|
|
"Compensation"
|
4
|
2.14
|
|
"Compensation Limit"
|
6
|
2.15
|
|
"Disability" or "Disabled"
|
6
|
2.16
|
|
"Dollar Limit"
|
7
|
2.17
|
|
"Effective Date"
|
7
|
2.18
|
|
"Elective Deferrals"
|
7
|
2.19
|
|
"Eligible Employee"
|
7
|
2.20
|
|
"Employee"
|
8
|
2.21
|
|
"Employer" or "Employers"
|
8
|
2.22
|
|
"ERISA"
|
8
|
2.23
|
|
"Forfeiture"
|
8
|
2.24
|
|
"Former Plan"
|
8
|
2.25
|
|
"Hardship"
|
8
|
2.26
|
|
"Highly Compensated Employee"
|
9
|
2.27
|
|
"Hour of Service"
|
11
|
2.28
|
|
"Hourly Plan"
|
11
|
2.29
|
|
"Inactive Account"
|
11
|
2.30
|
|
"Investment Committee"
|
11
|
2.31
|
|
"Investment Fund"
|
12
|
2.32
|
|
"Investment Manager"
|
12
|
2.33
|
|
"Matching Contributions"
|
12
|
2.34
|
|
"Maternity or Paternity Leave"
|
12
|
2.35
|
|
"Normal Retirement Date"
|
12
|
2.36
|
|
"Participant"
|
12
|
2.37
|
|
"Period of Severance"
|
12
|
2.38
|
|
"Plan"
|
13
|
2.39
|
|
"Plan Administrator"
|
13
|
2.40
|
|
"Plan Year"
|
13
|
2.41
|
|
"QMAC"
|
13
|
2.42
|
|
"Qualified Military Leave"
|
13
|
2.43
|
|
"QNEC"
|
13
|
2.44
|
|
"Reduction-in-Force Termination"
|
13
|
2.45
|
|
"Related Company"
|
14
|
2.46
|
|
"Related Plan"
|
14
|
2.47
|
|
"Required Distribution Date"
|
14
|
2.48
|
|
"Restricted Account"
|
14
|
2.49
|
|
"Retirement"
|
14
|
2.50
|
|
"Rollover Contribution"
|
14
|
2.51
|
|
"Roth Contribution"
|
15
|
2.52
|
|
"Safe Harbor Matching Contribution"
|
15
|
2.53
|
|
"Safe Harbor Notice"
|
15
|
2.54
|
|
"Salary Reduction Agreement"
|
16
|
2.55
|
|
"Service"
|
16
|
2.56
|
|
"Termination of Employment"
|
16
|
2.57
|
|
"Transferor Plan"
|
17
|
2.58
|
|
"True-Up Contributions"
|
17
|
2.59
|
|
"Trust"
|
17
|
2.60
|
|
"Trust Agreement"
|
17
|
2.61
|
|
"Trust Fund"
|
17
|
2.62
|
|
"Trustee"
|
17
|
2.63
|
|
"Valuation Date"
|
17
|
|
|
|
|
Article
III
|
|
Participation
|
18
|
3.01
|
|
Participation
|
18
|
3.02
|
|
Duration of Participation
|
18
|
3.03
|
|
Participation Upon Re-Employment
|
18
|
3.04
|
|
Transferred Participants
|
19
|
3.05
|
|
Participation Forms
|
19
|
|
|
|
|
Article
IV
|
|
Contributions and Vesting
|
20
|
4.01
|
|
Elective Deferrals
|
20
|
4.02
|
|
Matching Contributions
|
22
|
4.03
|
|
Company Contributions
|
24
|
4.04
|
|
Rollover Contributions into the Plan
|
24
|
4.05
|
|
Special Contributions; QNECs and QMACs
|
25
|
4.06
|
|
Crediting of Contributions
|
27
|
4.07
|
|
Determination and Amount of Employer Contributions
|
27
|
4.08
|
|
Condition on Company Contributions
|
27
|
4.09
|
|
Form of Company Contributions
|
27
|
4.10
|
|
Vesting
|
27
|
4.11
|
|
Catch-Up Deferrals
|
30
|
4.12
|
|
Military Service
|
31
|
|
|
|
|
Article
V
|
|
Limitations on Contributions
|
33
|
5.01
|
|
Excess Deferrals
|
33
|
5.02
|
|
Excess Contributions: The ADP Test
|
33
|
5.03
|
|
Excess Aggregate Contributions: The ACP Test
|
36
|
5.04
|
|
Order of Application of Limitations
|
39
|
5.05
|
|
Allocation of Income or Loss
|
39
|
5.06
|
|
Section 415 Limitation on Contributions
|
39
|
|
|
|
|
Article VI
|
|
Trustee and Trust Fund
|
42
|
6.01
|
|
Trust Agreement
|
42
|
6.02
|
|
Selection of Trustee
|
42
|
6.03
|
|
Plan and Trust Expenses
|
42
|
6.04
|
|
Trust Fund
|
42
|
6.05
|
|
Separate Accounts
|
42
|
6.06
|
|
Investment Committee
|
43
|
6.07
|
|
Investment Funds
|
43
|
6.08
|
|
Investment of Participants' Accounts
|
44
|
6.09
|
|
Shareholder Rights in Company Stock
|
45
|
6.10
|
|
Trust Income
|
46
|
6.11
|
|
Correction of Error
|
46
|
6.12
|
|
Right of the Employers to Trust Assets
|
46
|
6.13
|
|
Group Trust
|
47
|
|
|
|
|
Article VII
|
|
Loans and Withdrawals
|
48
|
7.01
|
|
Participant Withdrawals
|
48
|
7.02
|
|
Participant Loans
|
49
|
7.03
|
|
Request for Distribution
|
52
|
|
|
|
|
Article VIII
|
|
Benefits
|
53
|
8.01
|
|
Payment of Benefits in General
|
53
|
8.02
|
|
Payment on Termination of Employment
|
53
|
8.03
|
|
Time of Payment
|
53
|
8.04
|
|
Lump Sum Payment Without Election
|
54
|
8.05
|
|
Payment Upon Death
|
54
|
8.06
|
|
Minimum Distribution Requirements
|
57
|
8.07
|
|
Facility of Payment
|
60
|
8.08
|
|
Form of Payment
|
60
|
8.09
|
|
Direct Rollover to Another Plan
|
60
|
8.10
|
|
Deduction of Taxes from Amounts Payable
|
62
|
|
|
|
|
Article IX
|
|
Administration
|
63
|
9.01
|
|
Sponsor Rights and Duties
|
63
|
9.02
|
|
Plan Administrator Rights and Duties
|
63
|
9.03
|
|
Plan Administrator Bonding and Expenses
|
64
|
9.04
|
|
Information To Be Supplied by Participants
|
64
|
9.05
|
|
Information To Be Supplied by Employers
|
64
|
9.06
|
|
Records
|
64
|
9.07
|
|
Electronic Media
|
64
|
9.08
|
|
Plan Administrative Decisions Final
|
65
|
|
|
|
|
Article X
|
|
Claims Procedure
|
66
|
10.01
|
|
Initial Claim for Benefits
|
66
|
10.02
|
|
Review of Claim Denial
|
66
|
|
|
|
|
Article XI
|
|
Amendment, Merger and Termination of the Plan
|
68
|
11.01
|
|
Amendments
|
68
|
11.02
|
|
Plan Merger
|
68
|
11.03
|
|
Plan Termination
|
69
|
11.04
|
|
Payment Upon Termination
|
69
|
11.05
|
|
Withdrawal from the Plan by an Employer
|
69
|
|
|
|
|
Article XII
|
|
Top Heavy Provisions
|
71
|
12.01
|
|
Application
|
71
|
12.02
|
|
Special Top Heavy Definitions
|
71
|
12.03
|
|
Special Top Heavy Provisions
|
76
|
|
|
|
|
Article XIII
|
|
Miscellaneous Provisions
|
78
|
13.01
|
|
Employer Joinder
|
78
|
13.02
|
|
Non-Alienation of Benefits
|
78
|
13.03
|
|
Qualified Domestic Relations Order
|
79
|
13.04
|
|
Unclaimed Amounts
|
80
|
13.05
|
|
No Contract of Employment
|
80
|
13.06
|
|
Recoupment of or Reduction for Overpayment
|
81
|
13.07
|
|
Employees' Trust
|
81
|
13.08
|
|
Source of Benefits
|
81
|
13.09
|
|
Interest of Participants
|
81
|
13.10
|
|
Indemnification
|
81
|
13.11
|
|
Company Action
|
81
|
13.12
|
|
Company Merger
|
81
|
13.13
|
|
Multiple Capacity
|
82
|
13.14
|
|
Gender and Number
|
82
|
13.15
|
|
Headings
|
82
|
13.16
|
|
Uniform and Non-Discriminatory Application of Provisions
|
82
|
13.17
|
|
Invalidity of Certain Provisions
|
82
|
13.18
|
|
Law Governing
|
82
|
|
|
|
|
Appendix A
|
84
|
||
|
|
||
Schedule 1
|
87
|
(ii)
|
hired on or after January 1, 2014, shall become a Participant:
|
(A)
|
with respect to Elective Deferrals and Rollover Contributions, on the first day of the pay period coincident with or immediately following the date on which he or she becomes an Eligible Employee;
|
(B)
|
with respect to Matching Contributions, Company Contributions and corrective contributions described in Section 4.05, on the first day of the pay period coincident with or immediately following the date on which he or she completes one (1) year of Service.
|
Plan Account
|
Source Code
|
Source
|
Exchanges
|
Mix Changes
|
Withdraws
|
Vesting Schedule
|
Annuity
Restrictions
|
Comments
|
Employee 401(k)
|
Emp 401K
|
A
|
Permitted
|
Permitted
|
Age 59 ½
Hardship
Termination
Loans
|
100% Vested
|
N/A
|
Converted 12/31/96 from Towers Perrin for 401(k) Plan
|
Prior Employee
|
PR Employee
|
B
|
Permitted
|
N/A
|
Age 59 ½
Hardship
Termination
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Contains pretax deferral money from Callidus, Howe-Baker, A&B, and Matrix Plans, Shop employees (10/01/2002) (401(k) Plans, no Pension funds)
Annuity/spousal consent requirements removed effective 3-1-2014
|
Prior Shaw Legacy Matching and Profit Sharing Contributions
|
ER Match
|
D
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
5-year graded
1-20%
2-40%
3-60%
4-80%
5-100%
|
N/A
|
Contains pre-2014 Matching Contributions and Profit Sharing Contributions made to The Shaw Group, Inc. 401(k) Plan
|
Prior Shaw Legacy Matching and Profit Sharing Contributions - Energy & Chemicals Group
|
FRR Comp
|
C
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
Contains Matching and Profit Sharing Contributions made to The Shaw Group, Inc. 401(k) Plan on behalf of participants in the E&C Group whose employment terminated as a result of the sale of the E&C Group to Technip SA
|
Force Reduction Rehire Company Contribution
|
FRR Comp
|
C
|
Permitted
|
Permitted
|
Age 59 ½ Termination
Loans
|
100% Vested
|
N/A
|
When RIF participants are rehired, money from source For J is moved into this 100% vested source
|
Prior Employer
|
PR Employer
|
D
|
Permitted
|
N/A
|
Age 59 ½
Hardship
Termination
Loans
|
3-yr. cliff
|
N/A
|
CHANGED SOURCE Contains match and stock sources from Callidus Plan (401(k) Plan, no Pension funds)
Annuity/spousal consent requirements removed effective 3-1-2014
|
Plan Account
|
Source Code
|
Source
|
Exchanges
|
Mix Changes
|
Withdraws
|
Vesting Schedule
|
Annuity
Restrictions
|
Comments
|
Prior Hourly Employee 401(k)
|
PR
HRLY
EE
|
E
|
Permitted
|
N/A
|
Age 59 ½
Hardship
Termination
Loans
|
100% Vested
|
N/A
|
Converted 12/31/96 from Principal Financial for Hourly Employees Plan (401(k) Plan)
Annuity/spousal consent requirements removed effective 3-1-2014
|
Annual Company Contribution
|
Ann
Co
Cont
|
F
|
Permitted
|
Permitted
|
Age 59½
Termination
Loans
|
5-yr. cliff
|
N/A
|
Also includes USERRA Annual Company Contributions and Shop employees (10/01/2002-12/31/2006)
|
MPPP Employee Contribution
|
MPPP
EE
|
G
|
Permitted
|
N/A
|
Age 62
Termination
In-service
Loans
|
100% Vested
|
Annuity and Spousal Consent provisions apply
|
Converted 12/31/96 from Principal Financial for Hourly Employees Plan (MPPP funds come from CBI Macon (CBI Services) union employees
|
Post 86 After-Tax
|
Post
86 AT
|
H
|
Permitted
|
N/A
|
Age 59 ½
In-Service
Loans
Termination
|
100% Vested
|
N/A
|
ADDED SOURCE Contains Howe-Baker, Matrix, A&B and Shop (10/01/2002) After-tax sources
|
USERRA Employee 401(k)
|
Emp 401K
|
I
|
Permitted
|
Permitted
|
Age 59 ½
Hardship
Termination
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Contains USERRA Pre-tax deferrals made by participants on Military leave
|
Post 2006 Company Contribution
|
Post 06
|
J
|
Permitted
|
Permitted
|
Age 59 ½ Termination
Loans
|
3-yr. cliff
|
N/A
|
New source for annual company contribution after 2006
|
Roth Rollover
|
|
L
|
Permitted
|
Permitted
|
Age 59 ½
In-service at any time
Termination
|
100% Vested
|
N/A
|
|
Safe Harbor Match
|
Safe Harbor
|
M
|
Permitted
|
Permitted
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
Effective January 1, 2014
|
Lummus
Rollover
|
Lumm
Roll
|
O
|
Permitted
|
N/A
|
Age 59 ½
Termination
In-service
Loans
|
100% Vested
|
N/A
|
Added source contains pre-tax rollover contributions from Lummus
|
Travelers Benefit
|
Travelers
|
P
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Contains what was previously in source 4
|
Lummus After Tax Rollover
|
Lumm AT Roll
|
Q
|
Permitted
|
N/A
|
Age 59 ½
In-service
Termination
|
100% Vested
|
N/A
|
Added source contains after tax rollover contributions from Lummus (401(k) Plan, no Pension funds)
|
Plan Account
|
Source Code
|
Source
|
Exchanges
|
Mix Changes
|
Withdraws
|
Vesting Schedule
|
Annuity
Restrictions
|
Comments
|
Prior Plan
|
Prior
Plan
|
R
|
Permitted
|
N/A
|
Age 62
Termination
In-service
Loans
|
100% Vested
|
Annuity and Spousal Consent provisions apply
|
Converted 12/31/96 from Principal Financial for Hourly Employees Plan
Contains rollover money from CB&I, Callidus, Howe-Baker, A&B, and Matrix Plans (401(k) Plans, no Pension funds)
|
Roth
|
|
S
|
Permitted
|
Permitted
|
Age 59 ½
Termination
|
100% Vested
|
N/A
|
|
MPPP Company Contribution
|
MPPP
Comp
|
T
|
Permitted
|
N/A
|
Age 62
Termination
Loans
|
100% Vested
|
Annuity and Spousal Consent provisions apply
|
Converted 12/31/96 from Principal Financial for Hourly Employees Plan (MPPP funds come from CBI Macon (CBI Services) union employees)
Annuity provisions apply
Spousal Consent Needed
|
Pre-2001 Company Match
|
Pre ‘01
Match
|
V
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Previously source D
|
Prior QNEC
|
Prior
QNEC
|
W
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Contains Howe-Baker QNEC (401(k) Plan, no Pension funds)
Annuity/spousal consent requirements removed effective 3-1-2014
|
Prior Profit Sharing
|
Prior
P/S
|
X
|
Permitted
|
N/A
|
Age 59 ½
Termination
In-service (20% available after 5 yrs of service)
Loans
|
100% Vested
|
N/A
|
ADDED SOURCE Contains Howe-Baker, Matrix, A&B PS sources
Annuity/spousal consent requirements removed effective 3-1-2014
|
Force Reduction Rehire Match Contribution
|
FRR Match
|
Y
|
Permitted
|
Permitted
|
Age 59 ½ Termination
Loans
|
100% Vested
|
N/A
|
When RIF participants are rehired, money from source 5 is moved into this 100% vested source
|
Company Contribution CB&I Stock
|
Co
CB&I
Stk
|
1
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
CHANGED SOURCE Removed exchange restrictions on source 12/01/2006
|
Plan Account
|
Source Code
|
Source
|
Exchanges
|
Mix Changes
|
Withdraws
|
Vesting Schedule
|
Annuity
Restrictions
|
Comments
|
Prior Employer Match
|
Prior ER
Match
|
4
|
Permitted
|
N/A
|
Age 59 ½
Termination
Loans
|
5-yr. graded
(0/25/25/25/25)
|
N/A
|
CHANGED SOURCE Contains match sources from Howe-Baker, Matrix, and A&B Plans
Annuity/spousal consent requirements removed effective 3-1-2014
|
Company Match
|
Co Match
|
5
|
Permitted
|
Permitted
|
Age 59 ½
Termination
Loans
|
3-yr. cliff
|
N/A
|
ADDED SOURCE contains new company match for 2001 through December 31, 2013
|
USERRA Company Match
|
Co Match
|
6
|
Permitted
|
Permitted
|
Age 59 ½
Termination
Loans
|
3-yr. cliff
|
N/A
|
ADDED SOURCE contains USERRA company match contributions for participants on Military leave through December 31, 2013
|
Prior Plan & Rollovers
|
Prior &
Roll
|
9
|
Permitted
|
Permitted
|
Age 59 ½
Termination
In-service
Loans
|
100% Vested
|
N/A
|
Converted 12/31/96 from Towers Perrin for 401(k) Plan
|
Post-2013 Discretionary Match
|
Match
|
|
Permitted
|
Permitted
|
Age 59 ½
Termination
Loans
|
100% Vested
|
N/A
|
Effective January 1, 2014
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Chicago Bridge & Iron Company N.V.;
|
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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Philip K. Asherman
|
Philip K. Asherman
|
Principal Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Chicago Bridge & Iron Company N.V.;
|
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 officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Michael S. Taff
|
Michael S. Taff
|
Principal Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Philip K. Asherman
|
Philip K. Asherman
|
Principal Executive Officer
|
Date: October 27, 2016
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Michael S. Taff
|
Michael S. Taff
|
Principal Financial Officer
|
Date: October 27, 2016
|