(Mark One)
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
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80-0558025
|
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(State or other jurisdiction of incorporation or organization)
|
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(I.R.S. Employer Identification No.)
|
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800 Main Street, 4th Floor
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Lynchburg,
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Virginia
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24504
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(Address of principal executive offices)
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(Zip Code)
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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
|
BWXT
|
New York Stock Exchange
|
Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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PAGE
|
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|
|
|
|
|
September 30, 2019 and December 31, 2018 (Unaudited)
|
|
|
|
|
|
Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)
|
|
|
|
|
|
Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)
|
|
|
|
|
|
Three Months Ended March 31, June 30 and September 30, 2019 and 2018 (Unaudited)
|
|
|
|
|
|
Nine Months Ended September 30, 2019 and 2018 (Unaudited)
|
|
|
||
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|
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|
|
Item 1.
|
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(Unaudited)
(In thousands)
|
||||||
Current Assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
13,641
|
|
|
$
|
29,871
|
|
Restricted cash and cash equivalents
|
|
3,524
|
|
|
3,834
|
|
||
Investments
|
|
3,618
|
|
|
3,597
|
|
||
Accounts receivable – trade, net
|
|
71,484
|
|
|
71,574
|
|
||
Accounts receivable – other
|
|
18,872
|
|
|
13,374
|
|
||
Retainages
|
|
70,294
|
|
|
57,885
|
|
||
Contracts in progress
|
|
399,002
|
|
|
318,454
|
|
||
Other current assets
|
|
41,015
|
|
|
43,859
|
|
||
Total Current Assets
|
|
621,450
|
|
|
542,448
|
|
||
Property, Plant and Equipment
|
|
1,233,151
|
|
|
1,132,392
|
|
||
Less accumulated depreciation
|
|
719,151
|
|
|
693,153
|
|
||
Net Property, Plant and Equipment
|
|
514,000
|
|
|
439,239
|
|
||
Investments
|
|
9,333
|
|
|
7,382
|
|
||
Goodwill
|
|
277,078
|
|
|
274,082
|
|
||
Deferred Income Taxes
|
|
60,901
|
|
|
63,908
|
|
||
Investments in Unconsolidated Affiliates
|
|
70,963
|
|
|
63,746
|
|
||
Intangible Assets
|
|
191,318
|
|
|
228,676
|
|
||
Other Assets
|
|
81,377
|
|
|
35,615
|
|
||
TOTAL
|
|
$
|
1,826,420
|
|
|
$
|
1,655,096
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(Unaudited)
(In thousands, except share
and per share amounts)
|
||||||
Current Liabilities:
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
$
|
14,535
|
|
|
$
|
14,227
|
|
Accounts payable
|
|
122,277
|
|
|
114,751
|
|
||
Accrued employee benefits
|
|
70,450
|
|
|
77,386
|
|
||
Accrued liabilities – other
|
|
48,892
|
|
|
62,163
|
|
||
Advance billings on contracts
|
|
66,526
|
|
|
98,477
|
|
||
Accrued warranty expense
|
|
11,060
|
|
|
10,344
|
|
||
Total Current Liabilities
|
|
333,740
|
|
|
377,348
|
|
||
Long-Term Debt
|
|
849,589
|
|
|
753,617
|
|
||
Accumulated Postretirement Benefit Obligation
|
|
19,082
|
|
|
19,236
|
|
||
Environmental Liabilities
|
|
90,421
|
|
|
86,372
|
|
||
Pension Liability
|
|
162,403
|
|
|
173,469
|
|
||
Other Liabilities
|
|
16,652
|
|
|
9,353
|
|
||
Commitments and Contingencies (Note 5)
|
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
|
||||
Common stock, par value $0.01 per share, authorized 325,000,000 shares; issued 126,508,355 and 125,871,866 shares at September 30, 2019 and December 31, 2018, respectively
|
|
1,265
|
|
|
1,259
|
|
||
Preferred stock, par value $0.01 per share, authorized 75,000,000 shares; No shares issued
|
|
—
|
|
|
—
|
|
||
Capital in excess of par value
|
|
128,876
|
|
|
115,725
|
|
||
Retained earnings
|
|
1,299,279
|
|
|
1,166,762
|
|
||
Treasury stock at cost, 31,258,239 and 30,625,074 shares at September 30, 2019 and December 31, 2018, respectively
|
|
(1,067,622
|
)
|
|
(1,037,795
|
)
|
||
Accumulated other comprehensive income
|
|
(7,322
|
)
|
|
(10,289
|
)
|
||
Stockholders' Equity – BWX Technologies, Inc.
|
|
354,476
|
|
|
235,662
|
|
||
Noncontrolling interest
|
|
57
|
|
|
39
|
|
||
Total Stockholders' Equity
|
|
354,533
|
|
|
235,701
|
|
||
TOTAL
|
|
$
|
1,826,420
|
|
|
$
|
1,655,096
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
(In thousands, except share and per share amounts)
|
||||||||||||||
Revenues
|
|
$
|
506,000
|
|
|
$
|
425,507
|
|
|
$
|
1,393,685
|
|
|
$
|
1,321,891
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
||||||||
Cost of operations
|
|
357,732
|
|
|
326,314
|
|
|
999,390
|
|
|
971,887
|
|
||||
Research and development costs
|
|
5,125
|
|
|
3,959
|
|
|
15,631
|
|
|
11,673
|
|
||||
Losses (gains) on asset disposals and impairments, net
|
|
(6
|
)
|
|
243
|
|
|
145
|
|
|
(2
|
)
|
||||
Selling, general and administrative expenses
|
|
52,561
|
|
|
53,919
|
|
|
158,296
|
|
|
159,199
|
|
||||
Total Costs and Expenses
|
|
415,412
|
|
|
384,435
|
|
|
1,173,462
|
|
|
1,142,757
|
|
||||
Equity in Income of Investees
|
|
7,874
|
|
|
9,323
|
|
|
22,418
|
|
|
22,698
|
|
||||
Operating Income
|
|
98,462
|
|
|
50,395
|
|
|
242,641
|
|
|
201,832
|
|
||||
Other Income (Expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
232
|
|
|
1,121
|
|
|
784
|
|
|
2,340
|
|
||||
Interest expense
|
|
(8,858
|
)
|
|
(7,925
|
)
|
|
(27,103
|
)
|
|
(19,354
|
)
|
||||
Other – net
|
|
4,670
|
|
|
40,968
|
|
|
18,795
|
|
|
63,984
|
|
||||
Total Other Income (Expense)
|
|
(3,956
|
)
|
|
34,164
|
|
|
(7,524
|
)
|
|
46,970
|
|
||||
Income before Provision for Income Taxes
|
|
94,506
|
|
|
84,559
|
|
|
235,117
|
|
|
248,802
|
|
||||
Provision for Income Taxes
|
|
19,508
|
|
|
6,482
|
|
|
52,009
|
|
|
43,578
|
|
||||
Net Income
|
|
$
|
74,998
|
|
|
$
|
78,077
|
|
|
$
|
183,108
|
|
|
$
|
205,224
|
|
Net Income Attributable to Noncontrolling Interest
|
|
(188
|
)
|
|
(158
|
)
|
|
(442
|
)
|
|
(201
|
)
|
||||
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
74,810
|
|
|
$
|
77,919
|
|
|
$
|
182,666
|
|
|
$
|
205,023
|
|
Earnings per Common Share:
|
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
$
|
1.92
|
|
|
$
|
2.06
|
|
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
$
|
1.91
|
|
|
$
|
2.04
|
|
Shares used in the computation of earnings per share (Note 9):
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
95,420,626
|
|
|
99,421,031
|
|
|
95,344,349
|
|
|
99,542,933
|
|
||||
Diluted
|
|
95,811,198
|
|
|
100,420,766
|
|
|
95,769,919
|
|
|
100,501,597
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
(In thousands)
|
||||||||||||||
Net Income
|
|
$
|
74,998
|
|
|
$
|
78,077
|
|
|
$
|
183,108
|
|
|
$
|
205,224
|
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustments
|
|
(2,535
|
)
|
|
2,008
|
|
|
2,703
|
|
|
(4,725
|
)
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized (losses) gains arising during the period, net of tax benefit (provision) of $79, $24, $469 and $(5), respectively
|
|
(248
|
)
|
|
(39
|
)
|
|
(1,323
|
)
|
|
7
|
|
||||
Reclassification adjustment for gains included in net income, net of tax provision of $26, $7, $5 and $16, respectively
|
|
(72
|
)
|
|
(26
|
)
|
|
(10
|
)
|
|
(41
|
)
|
||||
Amortization of benefit plan costs, net of tax benefit of $(130), $(78), $(421) and $(286), respectively
|
|
519
|
|
|
360
|
|
|
1,523
|
|
|
1,145
|
|
||||
Investments:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized losses arising during the period, net of tax benefit (provision) of $0, $270, $(10) and $270, respectively
|
|
(54
|
)
|
|
(388
|
)
|
|
(3
|
)
|
|
(432
|
)
|
||||
Reclassification adjustment for losses included in net income, net of tax provision of $0, $25, $0 and $25, respectively
|
|
—
|
|
|
379
|
|
|
—
|
|
|
379
|
|
||||
Other Comprehensive Income (Loss)
|
|
(2,390
|
)
|
|
2,294
|
|
|
2,890
|
|
|
(3,667
|
)
|
||||
Total Comprehensive Income
|
|
72,608
|
|
|
80,371
|
|
|
185,998
|
|
|
201,557
|
|
||||
Comprehensive Income Attributable to Noncontrolling Interest
|
|
(188
|
)
|
|
(158
|
)
|
|
(442
|
)
|
|
(201
|
)
|
||||
Comprehensive Income Attributable to BWX Technologies, Inc.
|
|
$
|
72,420
|
|
|
$
|
80,213
|
|
|
$
|
185,556
|
|
|
$
|
201,356
|
|
|
|
Common Stock
|
|
Capital In
Excess of
Par Value
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
Total
Stockholders'
Equity
|
|||||||||||||||||||
|
|
Shares
|
|
Par
Value
|
|
|
Retained
Earnings
|
|
|
Treasury
Stock
|
|
Stockholders'
Equity
|
|
Noncontrolling
Interest
|
|
||||||||||||||||||||
|
|
|
|
(In thousands, except share and per share amounts)
|
|||||||||||||||||||||||||||||||
Balance December 31, 2018
|
|
125,871,866
|
|
|
$
|
1,259
|
|
|
$
|
115,725
|
|
|
$
|
1,166,762
|
|
|
$
|
(10,289
|
)
|
|
$
|
(1,037,795
|
)
|
|
$
|
235,662
|
|
|
$
|
39
|
|
|
$
|
235,701
|
|
Recently adopted accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,219
|
)
|
|
77
|
|
|
—
|
|
|
(1,142
|
)
|
|
—
|
|
|
(1,142
|
)
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,978
|
|
|
—
|
|
|
—
|
|
|
48,978
|
|
|
132
|
|
|
49,110
|
|
||||||||
Dividends declared ($0.17 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,323
|
)
|
|
—
|
|
|
—
|
|
|
(16,323
|
)
|
|
—
|
|
|
(16,323
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
943
|
|
|
—
|
|
|
943
|
|
|
—
|
|
|
943
|
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(582
|
)
|
|
—
|
|
|
(582
|
)
|
|
—
|
|
|
(582
|
)
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
511
|
|
|
—
|
|
|
511
|
|
|
—
|
|
|
511
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
24
|
|
||||||||
Exercises of stock options
|
|
58,655
|
|
|
1
|
|
|
1,275
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,276
|
|
|
—
|
|
|
1,276
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,027
|
)
|
|
(29,027
|
)
|
|
—
|
|
|
(29,027
|
)
|
||||||||
Stock-based compensation charges
|
|
449,275
|
|
|
4
|
|
|
2,525
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,529
|
|
|
—
|
|
|
2,529
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(146
|
)
|
|
(146
|
)
|
||||||||
Balance March 31, 2019 (unaudited)
|
|
126,379,796
|
|
|
$
|
1,264
|
|
|
$
|
119,525
|
|
|
$
|
1,198,198
|
|
|
$
|
(9,316
|
)
|
|
$
|
(1,066,822
|
)
|
|
$
|
242,849
|
|
|
$
|
25
|
|
|
$
|
242,874
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,878
|
|
|
—
|
|
|
—
|
|
|
58,878
|
|
|
122
|
|
|
59,000
|
|
||||||||
Dividends declared ($0.17 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,301
|
)
|
|
—
|
|
|
—
|
|
|
(16,301
|
)
|
|
—
|
|
|
(16,301
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,295
|
|
|
—
|
|
|
4,295
|
|
|
—
|
|
|
4,295
|
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(431
|
)
|
|
—
|
|
|
(431
|
)
|
|
—
|
|
|
(431
|
)
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
493
|
|
|
—
|
|
|
493
|
|
|
—
|
|
|
493
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
27
|
|
||||||||
Exercises of stock options
|
|
32,023
|
|
|
—
|
|
|
757
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
757
|
|
|
—
|
|
|
757
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(260
|
)
|
|
(260
|
)
|
|
—
|
|
|
(260
|
)
|
||||||||
Stock-based compensation charges
|
|
4,927
|
|
|
—
|
|
|
3,823
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,823
|
|
|
—
|
|
|
3,823
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(128
|
)
|
|
(128
|
)
|
||||||||
Balance June 30, 2019 (unaudited)
|
|
126,416,746
|
|
|
$
|
1,264
|
|
|
$
|
124,105
|
|
|
$
|
1,240,775
|
|
|
$
|
(4,932
|
)
|
|
$
|
(1,067,082
|
)
|
|
$
|
294,130
|
|
|
$
|
19
|
|
|
$
|
294,149
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
74,810
|
|
|
—
|
|
|
—
|
|
|
74,810
|
|
|
188
|
|
|
74,998
|
|
||||||||
Dividends declared ($0.17 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,306
|
)
|
|
—
|
|
|
—
|
|
|
(16,306
|
)
|
|
—
|
|
|
(16,306
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,535
|
)
|
|
—
|
|
|
(2,535
|
)
|
|
—
|
|
|
(2,535
|
)
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(320
|
)
|
|
—
|
|
|
(320
|
)
|
|
—
|
|
|
(320
|
)
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
519
|
|
|
—
|
|
|
519
|
|
|
—
|
|
|
519
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
(54
|
)
|
|
—
|
|
|
(54
|
)
|
||||||||
Exercises of stock options
|
|
86,888
|
|
|
1
|
|
|
1,984
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,985
|
|
|
—
|
|
|
1,985
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(540
|
)
|
|
(540
|
)
|
|
—
|
|
|
(540
|
)
|
||||||||
Stock-based compensation charges
|
|
4,721
|
|
|
—
|
|
|
2,787
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,787
|
|
|
—
|
|
|
2,787
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(150
|
)
|
||||||||
Balance September 30, 2019 (unaudited)
|
|
126,508,355
|
|
|
$
|
1,265
|
|
|
$
|
128,876
|
|
|
$
|
1,299,279
|
|
|
$
|
(7,322
|
)
|
|
$
|
(1,067,622
|
)
|
|
$
|
354,476
|
|
|
$
|
57
|
|
|
$
|
354,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
Capital In
Excess of
Par Value
|
|
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
|
|
|
|
|
|
Total
Stockholders'
Equity
|
|||||||||||||||||||
|
|
Shares
|
|
Par
Value
|
|
|
Retained
Earnings
|
|
|
Treasury
Stock
|
|
Stockholders'
Equity
|
|
Noncontrolling
Interest
|
|
||||||||||||||||||||
|
|
|
|
(In thousands, except share and per share amounts)
|
|||||||||||||||||||||||||||||||
Balance December 31, 2017
|
|
125,381,591
|
|
|
$
|
1,254
|
|
|
$
|
98,843
|
|
|
$
|
990,652
|
|
|
$
|
9,454
|
|
|
$
|
(814,809
|
)
|
|
$
|
285,394
|
|
|
$
|
363
|
|
|
$
|
285,757
|
|
Recently adopted accounting standards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,311
|
|
|
(3,385
|
)
|
|
—
|
|
|
9,926
|
|
|
—
|
|
|
9,926
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
66,441
|
|
|
—
|
|
|
—
|
|
|
66,441
|
|
|
(28
|
)
|
|
66,413
|
|
||||||||
Dividends declared ($0.16 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,174
|
)
|
|
—
|
|
|
—
|
|
|
(16,174
|
)
|
|
—
|
|
|
(16,174
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,124
|
)
|
|
—
|
|
|
(3,124
|
)
|
|
—
|
|
|
(3,124
|
)
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
94
|
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
322
|
|
|
—
|
|
|
322
|
|
|
—
|
|
|
322
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(66
|
)
|
|
—
|
|
|
(66
|
)
|
|
—
|
|
|
(66
|
)
|
||||||||
Exercises of stock options
|
|
159,126
|
|
|
1
|
|
|
3,806
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,807
|
|
|
—
|
|
|
3,807
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,940
|
)
|
|
(5,940
|
)
|
|
—
|
|
|
(5,940
|
)
|
||||||||
Stock-based compensation charges
|
|
181,317
|
|
|
2
|
|
|
4,459
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,461
|
|
|
—
|
|
|
4,461
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(226
|
)
|
|
(226
|
)
|
||||||||
Balance March 31, 2018 (unaudited)
|
|
125,722,034
|
|
|
$
|
1,257
|
|
|
$
|
107,108
|
|
|
$
|
1,054,230
|
|
|
$
|
3,295
|
|
|
$
|
(820,749
|
)
|
|
$
|
345,141
|
|
|
$
|
109
|
|
|
$
|
345,250
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,663
|
|
|
—
|
|
|
—
|
|
|
60,663
|
|
|
71
|
|
|
60,734
|
|
||||||||
Dividends declared ($0.16 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,088
|
)
|
|
—
|
|
|
—
|
|
|
(16,088
|
)
|
|
—
|
|
|
(16,088
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,609
|
)
|
|
—
|
|
|
(3,609
|
)
|
|
—
|
|
|
(3,609
|
)
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
463
|
|
|
—
|
|
|
463
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
22
|
|
||||||||
Exercises of stock options
|
|
23,394
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
(77
|
)
|
|
—
|
|
|
(77
|
)
|
||||||||
Stock-based compensation charges
|
|
2,643
|
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
1,294
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
|
(126
|
)
|
||||||||
Balance June 30, 2018 (unaudited)
|
|
125,748,071
|
|
|
$
|
1,257
|
|
|
$
|
108,919
|
|
|
$
|
1,098,805
|
|
|
$
|
108
|
|
|
$
|
(820,826
|
)
|
|
$
|
388,263
|
|
|
$
|
54
|
|
|
$
|
388,317
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,919
|
|
|
—
|
|
|
—
|
|
|
77,919
|
|
|
158
|
|
|
78,077
|
|
||||||||
Dividends declared ($0.16 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,032
|
)
|
|
—
|
|
|
—
|
|
|
(16,032
|
)
|
|
—
|
|
|
(16,032
|
)
|
||||||||
Currency translation adjustments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,008
|
|
|
—
|
|
|
2,008
|
|
|
—
|
|
|
2,008
|
|
||||||||
Derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||||||
Defined benefit obligations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360
|
|
|
—
|
|
|
360
|
|
|
—
|
|
|
360
|
|
||||||||
Available-for-sale investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||||
Exercises of stock options
|
|
25,166
|
|
|
1
|
|
|
617
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
618
|
|
|
—
|
|
|
618
|
|
||||||||
Shares placed in treasury
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,374
|
)
|
|
(63,374
|
)
|
|
—
|
|
|
(63,374
|
)
|
||||||||
Stock-based compensation charges
|
|
23,434
|
|
|
—
|
|
|
2,764
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,764
|
|
|
—
|
|
|
2,764
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(163
|
)
|
|
(163
|
)
|
||||||||
Balance September 30, 2018 (unaudited)
|
|
125,796,671
|
|
|
$
|
1,258
|
|
|
$
|
112,300
|
|
|
$
|
1,160,692
|
|
|
$
|
2,402
|
|
|
$
|
(884,200
|
)
|
|
$
|
392,452
|
|
|
$
|
49
|
|
|
$
|
392,501
|
|
|
|
Nine Months Ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited) (In thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
||||||
Net Income
|
|
$
|
183,108
|
|
|
$
|
205,224
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
46,028
|
|
|
43,692
|
|
||
Income of investees, net of dividends
|
|
(8,642
|
)
|
|
(8,471
|
)
|
||
Gain on forward contracts
|
|
—
|
|
|
(4,743
|
)
|
||
Recognition of debt issuance costs from Former Credit Facility
|
|
—
|
|
|
2,441
|
|
||
Provision for deferred taxes
|
|
—
|
|
|
38,685
|
|
||
Recognition of losses (gains) for pension and postretirement plans
|
|
1,944
|
|
|
(33,699
|
)
|
||
Stock-based compensation expense
|
|
9,139
|
|
|
8,519
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||||
Accounts receivable
|
|
3,075
|
|
|
23,096
|
|
||
Accounts payable
|
|
18,124
|
|
|
2,061
|
|
||
Retainages
|
|
(12,341
|
)
|
|
(19,712
|
)
|
||
Contracts in progress and advance billings on contracts
|
|
(111,660
|
)
|
|
(35,049
|
)
|
||
Income taxes
|
|
(5,130
|
)
|
|
(46,511
|
)
|
||
Accrued and other current liabilities
|
|
(15,046
|
)
|
|
3,344
|
|
||
Pension liabilities, accrued postretirement benefit obligations and employee benefits
|
|
(21,608
|
)
|
|
(184,898
|
)
|
||
Other, net
|
|
4,010
|
|
|
(2,420
|
)
|
||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
91,001
|
|
|
(8,441
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Purchases of property, plant and equipment
|
|
(122,629
|
)
|
|
(60,488
|
)
|
||
Acquisition of business
|
|
—
|
|
|
(212,993
|
)
|
||
Purchases of securities
|
|
(2,686
|
)
|
|
(3,111
|
)
|
||
Sales and maturities of securities
|
|
2,706
|
|
|
3,378
|
|
||
Investments, net of return of capital, in equity method investees
|
|
—
|
|
|
(9,037
|
)
|
||
Other, net
|
|
208
|
|
|
5,242
|
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
|
(122,401
|
)
|
|
(277,009
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Borrowings of long-term debt
|
|
587,500
|
|
|
901,300
|
|
||
Repayments of long-term debt
|
|
(498,363
|
)
|
|
(624,987
|
)
|
||
Payment of debt issuance costs
|
|
—
|
|
|
(9,443
|
)
|
||
Repurchases of common shares
|
|
(20,000
|
)
|
|
(62,558
|
)
|
||
Dividends paid to common shareholders
|
|
(49,167
|
)
|
|
(48,014
|
)
|
||
Exercises of stock options
|
|
3,133
|
|
|
3,511
|
|
||
Cash paid for shares withheld to satisfy employee taxes
|
|
(8,942
|
)
|
|
(5,402
|
)
|
||
Other, net
|
|
847
|
|
|
(515
|
)
|
||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
15,008
|
|
|
153,892
|
|
||
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
|
|
(7
|
)
|
|
(8,464
|
)
|
||
TOTAL DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS
|
|
(16,399
|
)
|
|
(140,022
|
)
|
||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
36,408
|
|
|
213,144
|
|
||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
20,009
|
|
|
$
|
73,122
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
|
|
|
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest
|
|
$
|
35,342
|
|
|
$
|
13,325
|
|
Income taxes (net of refunds)
|
|
$
|
57,179
|
|
|
$
|
51,779
|
|
SCHEDULE OF NON-CASH INVESTING ACTIVITY:
|
|
|
|
|
||||
Accrued capital expenditures included in accounts payable
|
|
$
|
18,199
|
|
|
$
|
13,457
|
|
•
|
Our Nuclear Operations Group segment manufactures naval nuclear reactors for the U.S. Naval Nuclear Propulsion Program for use in submarines and aircraft carriers. Through this segment, we own and operate manufacturing facilities located in Lynchburg, Virginia; Barberton, Ohio; Mount Vernon, Indiana; Euclid, Ohio; and Erwin, Tennessee. The Lynchburg operations fabricate fuel-bearing precision components that range in weight from a few grams to hundreds of tons. In-house capabilities also include wet chemistry uranium processing, advanced heat treatment to optimize component material properties and a controlled, clean-room environment with the capacity to assemble railcar-size components. The Barberton and Mount Vernon locations specialize in the design and manufacture of heavy components inclusive of development and fabrication activities for submarine missile launch tubes. The Euclid facility fabricates electro-mechanical equipment and performs design, manufacturing, inspection, assembly and testing activities. Fuel for the naval nuclear reactors is provided by Nuclear Fuel Services, Inc. ("NFS"), one of our wholly owned subsidiaries. Located in Erwin, NFS also downblends Cold War-era government stockpiles of high-enriched uranium into material suitable for further processing into commercial nuclear reactor fuel.
|
•
|
Our Nuclear Power Group segment fabricates commercial nuclear steam generators, nuclear fuel, fuel handling systems, pressure vessels, reactor components, heat exchangers, tooling delivery systems and other auxiliary equipment, including containers for the storage of spent nuclear fuel and other high-level waste, for nuclear utility customers. BWXT has supplied the nuclear industry with more than 1,300 large, heavy components worldwide and is the only commercial heavy nuclear component manufacturer in North America. This segment also provides specialized engineering services that include structural component design, 3-D thermal-hydraulic engineering analysis, weld and robotic process development, electrical and controls engineering and metallurgy and materials engineering. In addition, this segment offers in-plant inspection, maintenance and modification services for nuclear steam generators, heat exchangers, reactors, fuel handling systems and balance of plant equipment, as well as specialized non-destructive examination and tooling/repair solutions. This segment is also a leading global manufacturer and supplier of critical medical radioisotopes and radiopharmaceuticals for research, diagnostic and therapeutic uses. See Note 2 for information about a 2018 acquisition related to this segment.
|
•
|
Our Nuclear Services Group segment provides various services to the U.S. Government and the commercial nuclear industry. Services provided to the U.S. Government include nuclear materials management and operation, environmental management and administrative and operating services for various U.S. Government-owned facilities. These services are provided to the U.S. Department of Energy ("DOE"), including the National Nuclear Security Administration ("NNSA"), the Office of Nuclear Energy, the Office of Science and the Office of Environmental
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In thousands)
|
||||||
Cash and cash equivalents
|
|
$
|
13,641
|
|
|
$
|
29,871
|
|
Restricted cash and cash equivalents
|
|
3,524
|
|
|
3,834
|
|
||
Restricted cash and cash equivalents included in Other Assets
|
|
2,844
|
|
|
2,703
|
|
||
Total cash and cash equivalents and restricted cash and cash equivalents as presented on our condensed consolidated statement of cash flows
|
|
$
|
20,009
|
|
|
$
|
36,408
|
|
2019
|
|
$
|
1,785
|
|
2020
|
|
3,239
|
|
|
2021
|
|
2,176
|
|
|
2022
|
|
1,341
|
|
|
2023
|
|
606
|
|
|
2024
|
|
170
|
|
|
Thereafter
|
|
1,107
|
|
|
Total lease payments
|
|
$
|
10,424
|
|
Less: interest
|
|
(1,044
|
)
|
|
Present value of lease liabilities (1)
|
|
$
|
9,380
|
|
(1)
|
Includes current lease liabilities of $4.2 million.
|
2019
|
|
$
|
5,650
|
|
2020
|
|
$
|
2,655
|
|
2021
|
|
$
|
1,969
|
|
2022
|
|
$
|
1,216
|
|
2023
|
|
$
|
511
|
|
Thereafter
|
|
$
|
1,231
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In thousands)
|
||||||
Currency translation adjustments
|
|
$
|
6,209
|
|
|
$
|
3,506
|
|
Net unrealized gain (loss) on derivative financial instruments
|
|
(571
|
)
|
|
685
|
|
||
Unrecognized prior service cost on benefit obligations
|
|
(12,872
|
)
|
|
(14,395
|
)
|
||
Net unrealized loss on available-for-sale investments
|
|
(88
|
)
|
|
(85
|
)
|
||
Accumulated other comprehensive income
|
|
$
|
(7,322
|
)
|
|
$
|
(10,289
|
)
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
||||||||
Accumulated Other Comprehensive Income (Loss) Component Recognized
|
|
(In thousands)
|
|
Line Item Presented
|
||||||||||||||
Realized gain (loss) on derivative financial instruments
|
|
$
|
(130
|
)
|
|
$
|
(86
|
)
|
|
$
|
(78
|
)
|
|
$
|
(90
|
)
|
|
Revenues
|
|
|
228
|
|
|
119
|
|
|
93
|
|
|
147
|
|
|
Cost of operations
|
||||
|
|
98
|
|
|
33
|
|
|
15
|
|
|
57
|
|
|
Total before tax
|
||||
|
|
(26
|
)
|
|
(7
|
)
|
|
(5
|
)
|
|
(16
|
)
|
|
Provision for Income Taxes
|
||||
|
|
$
|
72
|
|
|
$
|
26
|
|
|
$
|
10
|
|
|
$
|
41
|
|
|
Net Income
|
Amortization of prior service cost on benefit obligations
|
|
$
|
(649
|
)
|
|
$
|
(438
|
)
|
|
$
|
(1,944
|
)
|
|
$
|
(1,431
|
)
|
|
Other – net
|
|
|
130
|
|
|
78
|
|
|
421
|
|
|
286
|
|
|
Provision for Income Taxes
|
||||
|
|
$
|
(519
|
)
|
|
$
|
(360
|
)
|
|
$
|
(1,523
|
)
|
|
$
|
(1,145
|
)
|
|
Net Income
|
Realized loss on investments
|
|
$
|
—
|
|
|
$
|
(354
|
)
|
|
$
|
—
|
|
|
$
|
(354
|
)
|
|
Other – net
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
(25
|
)
|
|
Provision for Income Taxes
|
||||
|
|
$
|
—
|
|
|
$
|
(379
|
)
|
|
$
|
—
|
|
|
$
|
(379
|
)
|
|
Net Income
|
Total reclassification for the period
|
|
$
|
(447
|
)
|
|
$
|
(713
|
)
|
|
$
|
(1,513
|
)
|
|
$
|
(1,483
|
)
|
|
|
Accounts receivable – trade
|
|
$
|
7,732
|
|
Contracts in progress
|
|
51
|
|
|
Inventories
|
|
2,113
|
|
|
Other current assets
|
|
97
|
|
|
Property, plant and equipment
|
|
12,948
|
|
|
Goodwill
|
|
62,495
|
|
|
Deferred Income Taxes
|
|
3,006
|
|
|
Intangible assets
|
|
139,257
|
|
|
Total assets acquired
|
|
$
|
227,699
|
|
Accounts payable
|
|
$
|
654
|
|
Accrued employee benefits
|
|
579
|
|
|
Accrued liabilities – other
|
|
1,665
|
|
|
Environmental liabilities
|
|
2,062
|
|
|
Pension liability
|
|
9,746
|
|
|
Total liabilities assumed
|
|
$
|
14,706
|
|
Net assets acquired
|
|
$
|
212,993
|
|
Amount of tax deductible goodwill
|
|
$
|
53,693
|
|
|
|
Amount
|
|
Amortization Period
|
||
Technical support agreement
|
|
$
|
67,500
|
|
|
23 years
|
Unpatented technology
|
|
$
|
33,000
|
|
|
23 years
|
Favorable operating leases
|
|
$
|
28,157
|
|
|
13-30 years
|
Customer relationship
|
|
$
|
10,600
|
|
|
23 years
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
September 30, 2018
|
|
September 30, 2018
|
||||
|
|
(In thousands, except per share amounts)
|
||||||
Revenues
|
|
$
|
429,558
|
|
|
$
|
1,347,031
|
|
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
79,141
|
|
|
$
|
206,435
|
|
Basic Earnings per Common Share
|
|
$
|
0.80
|
|
|
$
|
2.07
|
|
Diluted Earnings per Common Share
|
|
$
|
0.79
|
|
|
$
|
2.05
|
|
•
|
Increase in amortization expense related to timing of amortization of the fair value of identifiable intangible assets acquired of approximately $0.5 million and $3.7 million for the three and nine months ended September 30, 2018, respectively.
|
•
|
Additional interest expense associated with the incremental borrowings that would have been incurred to acquire the MI business as of January 1, 2017 of approximately $2.4 million for the nine months ended September 30, 2018.
|
•
|
Elimination of $0.9 million and $2.5 million in acquisition related costs recognized in the three and nine months ended September 30, 2018, respectively, that are not expected to be recurring.
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
United States:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government
|
|
$
|
376,243
|
|
|
$
|
—
|
|
|
$
|
28,767
|
|
|
$
|
405,010
|
|
|
$
|
1,016,594
|
|
|
$
|
—
|
|
|
$
|
82,041
|
|
|
$
|
1,098,635
|
|
Non-Government
|
|
16,407
|
|
|
10,130
|
|
|
3,781
|
|
|
30,318
|
|
|
36,357
|
|
|
28,265
|
|
|
8,922
|
|
|
73,544
|
|
||||||||
|
|
$
|
392,650
|
|
|
$
|
10,130
|
|
|
$
|
32,548
|
|
|
$
|
435,328
|
|
|
$
|
1,052,951
|
|
|
$
|
28,265
|
|
|
$
|
90,963
|
|
|
$
|
1,172,179
|
|
Canada:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-Government
|
|
$
|
—
|
|
|
$
|
69,138
|
|
|
$
|
689
|
|
|
$
|
69,827
|
|
|
$
|
—
|
|
|
$
|
203,909
|
|
|
$
|
1,197
|
|
|
$
|
205,106
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-Government
|
|
$
|
1,834
|
|
|
$
|
5,108
|
|
|
$
|
—
|
|
|
$
|
6,942
|
|
|
$
|
4,686
|
|
|
$
|
23,240
|
|
|
$
|
—
|
|
|
$
|
27,926
|
|
Segment Revenues
|
|
$
|
394,484
|
|
|
$
|
84,376
|
|
|
$
|
33,237
|
|
|
512,097
|
|
|
$
|
1,057,637
|
|
|
$
|
255,414
|
|
|
$
|
92,160
|
|
|
1,405,211
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(6,097
|
)
|
|
|
|
|
|
|
|
(11,526
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
506,000
|
|
|
|
|
|
|
|
|
$
|
1,393,685
|
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
United States:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government
|
|
$
|
315,744
|
|
|
$
|
—
|
|
|
$
|
27,120
|
|
|
$
|
342,864
|
|
|
$
|
960,271
|
|
|
$
|
—
|
|
|
$
|
81,175
|
|
|
$
|
1,041,446
|
|
Non-Government
|
|
2,066
|
|
|
3,890
|
|
|
536
|
|
|
6,492
|
|
|
5,915
|
|
|
4,477
|
|
|
7,623
|
|
|
18,015
|
|
||||||||
|
|
$
|
317,810
|
|
|
$
|
3,890
|
|
|
$
|
27,656
|
|
|
$
|
349,356
|
|
|
$
|
966,186
|
|
|
$
|
4,477
|
|
|
$
|
88,798
|
|
|
$
|
1,059,461
|
|
Canada:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government
|
|
$
|
358
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
358
|
|
|
$
|
358
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
358
|
|
Non-Government
|
|
161
|
|
|
65,234
|
|
|
611
|
|
|
66,006
|
|
|
161
|
|
|
212,302
|
|
|
2,096
|
|
|
214,559
|
|
||||||||
|
|
$
|
519
|
|
|
$
|
65,234
|
|
|
$
|
611
|
|
|
$
|
66,364
|
|
|
$
|
519
|
|
|
$
|
212,302
|
|
|
$
|
2,096
|
|
|
$
|
214,917
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-Government
|
|
$
|
996
|
|
|
$
|
10,038
|
|
|
$
|
99
|
|
|
$
|
11,133
|
|
|
$
|
1,391
|
|
|
$
|
50,896
|
|
|
$
|
101
|
|
|
$
|
52,388
|
|
Segment Revenues
|
|
$
|
319,325
|
|
|
$
|
79,162
|
|
|
$
|
28,366
|
|
|
426,853
|
|
|
$
|
968,096
|
|
|
$
|
267,675
|
|
|
$
|
90,995
|
|
|
1,326,766
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(1,346
|
)
|
|
|
|
|
|
|
|
(4,875
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
425,507
|
|
|
|
|
|
|
|
|
$
|
1,321,891
|
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Over time
|
|
$
|
394,407
|
|
|
$
|
74,582
|
|
|
$
|
33,237
|
|
|
$
|
502,226
|
|
|
$
|
1,057,434
|
|
|
$
|
218,036
|
|
|
$
|
92,160
|
|
|
$
|
1,367,630
|
|
Point-in-time
|
|
77
|
|
|
9,794
|
|
|
—
|
|
|
9,871
|
|
|
203
|
|
|
37,378
|
|
|
—
|
|
|
37,581
|
|
||||||||
Segment Revenues
|
|
$
|
394,484
|
|
|
$
|
84,376
|
|
|
$
|
33,237
|
|
|
512,097
|
|
|
$
|
1,057,637
|
|
|
$
|
255,414
|
|
|
$
|
92,160
|
|
|
1,405,211
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(6,097
|
)
|
|
|
|
|
|
|
|
(11,526
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
506,000
|
|
|
|
|
|
|
|
|
$
|
1,393,685
|
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Over time
|
|
$
|
319,325
|
|
|
$
|
66,219
|
|
|
$
|
28,366
|
|
|
$
|
413,910
|
|
|
$
|
968,096
|
|
|
$
|
240,652
|
|
|
$
|
90,995
|
|
|
$
|
1,299,743
|
|
Point-in-time
|
|
—
|
|
|
12,943
|
|
|
—
|
|
|
12,943
|
|
|
—
|
|
|
27,023
|
|
|
—
|
|
|
27,023
|
|
||||||||
Segment Revenues
|
|
$
|
319,325
|
|
|
$
|
79,162
|
|
|
$
|
28,366
|
|
|
426,853
|
|
|
$
|
968,096
|
|
|
$
|
267,675
|
|
|
$
|
90,995
|
|
|
1,326,766
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(1,346
|
)
|
|
|
|
|
|
|
|
(4,875
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
425,507
|
|
|
|
|
|
|
|
|
$
|
1,321,891
|
|
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Fixed-Price Incentive Fee
|
|
$
|
302,181
|
|
|
$
|
497
|
|
|
$
|
—
|
|
|
$
|
302,678
|
|
|
$
|
846,823
|
|
|
$
|
2,078
|
|
|
$
|
—
|
|
|
$
|
848,901
|
|
Firm-Fixed-Price
|
|
72,820
|
|
|
64,758
|
|
|
5,806
|
|
|
143,384
|
|
|
148,860
|
|
|
203,961
|
|
|
15,878
|
|
|
368,699
|
|
||||||||
Cost-Plus Fee
|
|
19,483
|
|
|
591
|
|
|
26,830
|
|
|
46,904
|
|
|
61,622
|
|
|
599
|
|
|
75,145
|
|
|
137,366
|
|
||||||||
Time-and-Materials
|
|
—
|
|
|
18,530
|
|
|
601
|
|
|
19,131
|
|
|
332
|
|
|
48,776
|
|
|
1,137
|
|
|
50,245
|
|
||||||||
Segment Revenues
|
|
$
|
394,484
|
|
|
$
|
84,376
|
|
|
$
|
33,237
|
|
|
512,097
|
|
|
$
|
1,057,637
|
|
|
$
|
255,414
|
|
|
$
|
92,160
|
|
|
1,405,211
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(6,097
|
)
|
|
|
|
|
|
|
|
(11,526
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
506,000
|
|
|
|
|
|
|
|
|
$
|
1,393,685
|
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||||||||
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
|
Nuclear
Operations Group |
|
Nuclear
Power Group |
|
Nuclear
Services Group |
|
Total
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Fixed-Price Incentive Fee
|
|
$
|
255,944
|
|
|
$
|
3,748
|
|
|
$
|
—
|
|
|
$
|
259,692
|
|
|
$
|
763,334
|
|
|
$
|
13,365
|
|
|
$
|
—
|
|
|
$
|
776,699
|
|
Firm-Fixed-Price
|
|
38,262
|
|
|
58,451
|
|
|
4,393
|
|
|
101,106
|
|
|
137,792
|
|
|
177,035
|
|
|
15,435
|
|
|
330,262
|
|
||||||||
Cost-Plus Fee
|
|
25,117
|
|
|
—
|
|
|
23,496
|
|
|
48,613
|
|
|
66,800
|
|
|
45
|
|
|
73,535
|
|
|
140,380
|
|
||||||||
Time-and-Materials
|
|
2
|
|
|
16,963
|
|
|
477
|
|
|
17,442
|
|
|
170
|
|
|
77,230
|
|
|
2,025
|
|
|
79,425
|
|
||||||||
Segment Revenues
|
|
$
|
319,325
|
|
|
$
|
79,162
|
|
|
$
|
28,366
|
|
|
426,853
|
|
|
$
|
968,096
|
|
|
$
|
267,675
|
|
|
$
|
90,995
|
|
|
1,326,766
|
|
||
Adjustments and Eliminations
|
|
|
|
|
|
|
|
(1,346
|
)
|
|
|
|
|
|
|
|
(4,875
|
)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
$
|
425,507
|
|
|
|
|
|
|
|
|
$
|
1,321,891
|
|
|
|
September 30,
|
|
December 31,
|
||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Included in Contracts in progress:
|
|
|
|
|
||||
Unbilled receivables
|
|
$
|
388,739
|
|
|
$
|
308,723
|
|
Retainages
|
|
$
|
70,294
|
|
|
$
|
57,885
|
|
Included in Other Assets:
|
|
|
|
|
||||
Retainages
|
|
$
|
1,606
|
|
|
$
|
1,674
|
|
Advance billings on contracts
|
|
$
|
66,526
|
|
|
$
|
98,477
|
|
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
||||||||
|
|
(In approximate millions)
|
||||||||||||||
Nuclear Operations Group
|
|
$
|
357
|
|
|
$
|
1,065
|
|
|
$
|
2,023
|
|
|
$
|
3,445
|
|
Nuclear Power Group
|
|
96
|
|
|
200
|
|
|
433
|
|
|
729
|
|
||||
Nuclear Services Group
|
|
21
|
|
|
12
|
|
|
13
|
|
|
46
|
|
||||
Total Remaining Performance Obligations
|
|
$
|
474
|
|
|
$
|
1,277
|
|
|
$
|
2,469
|
|
|
$
|
4,220
|
|
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||||||
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Service cost
|
|
$
|
1,914
|
|
|
$
|
2,380
|
|
|
$
|
6,839
|
|
|
$
|
7,198
|
|
|
$
|
145
|
|
|
$
|
132
|
|
|
$
|
434
|
|
|
$
|
459
|
|
Interest cost
|
|
11,567
|
|
|
11,575
|
|
|
34,722
|
|
|
36,225
|
|
|
586
|
|
|
504
|
|
|
1,756
|
|
|
1,404
|
|
||||||||
Expected return on plan assets
|
|
(17,490
|
)
|
|
(19,272
|
)
|
|
(52,344
|
)
|
|
(62,450
|
)
|
|
(627
|
)
|
|
(548
|
)
|
|
(1,882
|
)
|
|
(1,581
|
)
|
||||||||
Amortization of prior service cost (credit)
|
|
727
|
|
|
565
|
|
|
2,177
|
|
|
1,665
|
|
|
(78
|
)
|
|
(127
|
)
|
|
(233
|
)
|
|
(234
|
)
|
||||||||
Recognized net actuarial gain
|
|
—
|
|
|
(35,130
|
)
|
|
—
|
|
|
(35,130
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net periodic benefit (income) cost
|
|
$
|
(3,282
|
)
|
|
$
|
(39,882
|
)
|
|
$
|
(8,606
|
)
|
|
$
|
(52,492
|
)
|
|
$
|
26
|
|
|
$
|
(39
|
)
|
|
$
|
75
|
|
|
$
|
48
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
Equities
|
|
$
|
2,511
|
|
|
$
|
—
|
|
|
$
|
2,511
|
|
|
$
|
—
|
|
Mutual funds
|
|
5,316
|
|
|
—
|
|
|
5,316
|
|
|
—
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
|
1,991
|
|
|
1,991
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
|
3,050
|
|
|
1,423
|
|
|
1,627
|
|
|
—
|
|
||||
Asset-backed securities and collateralized mortgage obligations
|
|
83
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||
Total
|
|
$
|
12,951
|
|
|
$
|
3,414
|
|
|
$
|
9,537
|
|
|
$
|
—
|
|
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
|
(In thousands)
|
||||||||||||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
Equities
|
|
$
|
1,163
|
|
|
$
|
—
|
|
|
$
|
1,163
|
|
|
$
|
—
|
|
Mutual funds
|
|
4,694
|
|
|
—
|
|
|
4,694
|
|
|
—
|
|
||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
|
2,227
|
|
|
2,227
|
|
|
—
|
|
|
—
|
|
||||
Corporate bonds
|
|
2,803
|
|
|
1,433
|
|
|
1,370
|
|
|
—
|
|
||||
Asset-backed securities and collateralized mortgage obligations
|
|
92
|
|
|
—
|
|
|
92
|
|
|
—
|
|
||||
Total
|
|
$
|
10,979
|
|
|
$
|
3,660
|
|
|
$
|
7,319
|
|
|
$
|
—
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In thousands)
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
||||||||
Nuclear Operations Group
|
|
$
|
394,484
|
|
|
$
|
319,325
|
|
|
$
|
1,057,637
|
|
|
$
|
968,096
|
|
Nuclear Power Group
|
|
84,376
|
|
|
79,162
|
|
|
255,414
|
|
|
267,675
|
|
||||
Nuclear Services Group
|
|
33,237
|
|
|
28,366
|
|
|
92,160
|
|
|
90,995
|
|
||||
Adjustments and Eliminations (1)
|
|
(6,097
|
)
|
|
(1,346
|
)
|
|
(11,526
|
)
|
|
(4,875
|
)
|
||||
|
|
$
|
506,000
|
|
|
$
|
425,507
|
|
|
$
|
1,393,685
|
|
|
$
|
1,321,891
|
|
(1)
|
Segment revenues are net of the following intersegment transfers and other adjustments:
|
Nuclear Operations Group Transfers
|
|
$
|
(1,260
|
)
|
|
$
|
(978
|
)
|
|
$
|
(3,164
|
)
|
|
$
|
(2,958
|
)
|
Nuclear Power Group Transfers
|
|
(73
|
)
|
|
(95
|
)
|
|
(146
|
)
|
|
(104
|
)
|
||||
Nuclear Services Group Transfers
|
|
(4,764
|
)
|
|
(273
|
)
|
|
(8,216
|
)
|
|
(1,813
|
)
|
||||
|
|
$
|
(6,097
|
)
|
|
$
|
(1,346
|
)
|
|
$
|
(11,526
|
)
|
|
$
|
(4,875
|
)
|
OPERATING INCOME:
|
|
|
|
|
|
|
|
|
||||||||
Nuclear Operations Group
|
|
$
|
93,667
|
|
|
$
|
45,580
|
|
|
$
|
226,518
|
|
|
$
|
180,283
|
|
Nuclear Power Group
|
|
8,967
|
|
|
9,063
|
|
|
36,433
|
|
|
38,637
|
|
||||
Nuclear Services Group
|
|
5,516
|
|
|
6,494
|
|
|
8,577
|
|
|
11,182
|
|
||||
Other
|
|
(6,948
|
)
|
|
(5,142
|
)
|
|
(19,788
|
)
|
|
(13,542
|
)
|
||||
|
|
$
|
101,202
|
|
|
$
|
55,995
|
|
|
$
|
251,740
|
|
|
$
|
216,560
|
|
Unallocated Corporate (2)
|
|
(2,740
|
)
|
|
(5,600
|
)
|
|
(9,099
|
)
|
|
(14,728
|
)
|
||||
Total Operating Income
|
|
$
|
98,462
|
|
|
$
|
50,395
|
|
|
$
|
242,641
|
|
|
$
|
201,832
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
232
|
|
|
1,121
|
|
|
784
|
|
|
2,340
|
|
||||
Interest expense
|
|
(8,858
|
)
|
|
(7,925
|
)
|
|
(27,103
|
)
|
|
(19,354
|
)
|
||||
Other – net
|
|
4,670
|
|
|
40,968
|
|
|
18,795
|
|
|
63,984
|
|
||||
Total Other Income (Expense)
|
|
(3,956
|
)
|
|
34,164
|
|
|
(7,524
|
)
|
|
46,970
|
|
||||
Income before Provision for Income Taxes
|
|
$
|
94,506
|
|
|
$
|
84,559
|
|
|
$
|
235,117
|
|
|
$
|
248,802
|
|
(2)
|
Unallocated corporate includes general corporate overhead not allocated to segments.
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(In thousands, except share and per share amounts)
|
||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
74,810
|
|
|
$
|
77,919
|
|
|
$
|
182,666
|
|
|
$
|
205,023
|
|
Weighted-average common shares
|
|
95,420,626
|
|
|
99,421,031
|
|
|
95,344,349
|
|
|
99,542,933
|
|
||||
Basic earnings per common share
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
$
|
1.92
|
|
|
$
|
2.06
|
|
Diluted:
|
|
|
|
|
|
|
|
|
||||||||
Net Income Attributable to BWX Technologies, Inc.
|
|
$
|
74,810
|
|
|
$
|
77,919
|
|
|
$
|
182,666
|
|
|
$
|
205,023
|
|
Weighted-average common shares (basic)
|
|
95,420,626
|
|
|
99,421,031
|
|
|
95,344,349
|
|
|
99,542,933
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock options, restricted stock units and performance shares (1)
|
|
390,572
|
|
|
999,735
|
|
|
425,570
|
|
|
958,664
|
|
||||
Adjusted weighted-average common shares
|
|
95,811,198
|
|
|
100,420,766
|
|
|
95,769,919
|
|
|
100,501,597
|
|
||||
Diluted earnings per common share
|
|
$
|
0.78
|
|
|
$
|
0.78
|
|
|
$
|
1.91
|
|
|
$
|
2.04
|
|
(1)
|
At September 30, 2019 and 2018, none of our shares were antidilutive.
|
Item 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nuclear Operations Group
|
|
$
|
394,484
|
|
|
$
|
319,325
|
|
|
$
|
75,159
|
|
|
$
|
1,057,637
|
|
|
$
|
968,096
|
|
|
$
|
89,541
|
|
Nuclear Power Group
|
|
84,376
|
|
|
79,162
|
|
|
5,214
|
|
|
255,414
|
|
|
267,675
|
|
|
(12,261
|
)
|
||||||
Nuclear Services Group
|
|
33,237
|
|
|
28,366
|
|
|
4,871
|
|
|
92,160
|
|
|
90,995
|
|
|
1,165
|
|
||||||
Adjustments and Eliminations
|
|
(6,097
|
)
|
|
(1,346
|
)
|
|
(4,751
|
)
|
|
(11,526
|
)
|
|
(4,875
|
)
|
|
(6,651
|
)
|
||||||
|
|
$
|
506,000
|
|
|
$
|
425,507
|
|
|
$
|
80,493
|
|
|
$
|
1,393,685
|
|
|
$
|
1,321,891
|
|
|
$
|
71,794
|
|
OPERATING INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nuclear Operations Group
|
|
$
|
93,667
|
|
|
$
|
45,580
|
|
|
$
|
48,087
|
|
|
$
|
226,518
|
|
|
$
|
180,283
|
|
|
$
|
46,235
|
|
Nuclear Power Group
|
|
8,967
|
|
|
9,063
|
|
|
(96
|
)
|
|
36,433
|
|
|
38,637
|
|
|
(2,204
|
)
|
||||||
Nuclear Services Group
|
|
5,516
|
|
|
6,494
|
|
|
(978
|
)
|
|
8,577
|
|
|
11,182
|
|
|
(2,605
|
)
|
||||||
Other
|
|
(6,948
|
)
|
|
(5,142
|
)
|
|
(1,806
|
)
|
|
(19,788
|
)
|
|
(13,542
|
)
|
|
(6,246
|
)
|
||||||
|
|
$
|
101,202
|
|
|
$
|
55,995
|
|
|
$
|
45,207
|
|
|
$
|
251,740
|
|
|
$
|
216,560
|
|
|
$
|
35,180
|
|
Unallocated Corporate
|
|
(2,740
|
)
|
|
(5,600
|
)
|
|
2,860
|
|
|
(9,099
|
)
|
|
(14,728
|
)
|
|
5,629
|
|
||||||
Total Operating Income
|
|
$
|
98,462
|
|
|
$
|
50,395
|
|
|
$
|
48,067
|
|
|
$
|
242,641
|
|
|
$
|
201,832
|
|
|
$
|
40,809
|
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Revenues
|
|
$
|
394,484
|
|
|
$
|
319,325
|
|
|
$
|
75,159
|
|
|
$
|
1,057,637
|
|
|
$
|
968,096
|
|
|
$
|
89,541
|
|
Operating Income
|
|
$
|
93,667
|
|
|
$
|
45,580
|
|
|
$
|
48,087
|
|
|
$
|
226,518
|
|
|
$
|
180,283
|
|
|
$
|
46,235
|
|
% of Revenues
|
|
23.7%
|
|
|
14.3%
|
|
|
|
|
21.4%
|
|
|
18.6%
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Revenues
|
|
$
|
84,376
|
|
|
$
|
79,162
|
|
|
$
|
5,214
|
|
|
$
|
255,414
|
|
|
$
|
267,675
|
|
|
$
|
(12,261
|
)
|
Operating Income
|
|
$
|
8,967
|
|
|
$
|
9,063
|
|
|
$
|
(96
|
)
|
|
$
|
36,433
|
|
|
$
|
38,637
|
|
|
$
|
(2,204
|
)
|
% of Revenues
|
|
10.6%
|
|
|
11.4%
|
|
|
|
|
14.3%
|
|
|
14.4%
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Revenues
|
|
$
|
33,237
|
|
|
$
|
28,366
|
|
|
$
|
4,871
|
|
|
$
|
92,160
|
|
|
$
|
90,995
|
|
|
$
|
1,165
|
|
Operating Income
|
|
$
|
5,516
|
|
|
$
|
6,494
|
|
|
$
|
(978
|
)
|
|
$
|
8,577
|
|
|
$
|
11,182
|
|
|
$
|
(2,605
|
)
|
% of Revenues
|
|
16.6%
|
|
|
22.9%
|
|
|
|
|
9.3%
|
|
|
12.3%
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Operating Income
|
|
$
|
(6,948
|
)
|
|
$
|
(5,142
|
)
|
|
$
|
(1,806
|
)
|
|
$
|
(19,788
|
)
|
|
$
|
(13,542
|
)
|
|
$
|
(6,246
|
)
|
|
|
Three Months Ended
September 30, |
|
|
|
Nine Months Ended
September 30, |
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
$ Change
|
|
2019
|
|
2018
|
|
$ Change
|
||||||||||||
|
|
(In thousands)
|
||||||||||||||||||||||
Income before Provision for Income Taxes
|
|
$
|
94,506
|
|
|
$
|
84,559
|
|
|
$
|
9,947
|
|
|
$
|
235,117
|
|
|
$
|
248,802
|
|
|
$
|
(13,685
|
)
|
Provision for Income Taxes
|
|
$
|
19,508
|
|
|
$
|
6,482
|
|
|
$
|
13,026
|
|
|
$
|
52,009
|
|
|
$
|
43,578
|
|
|
$
|
8,431
|
|
Effective Tax Rate
|
|
20.6%
|
|
|
7.7%
|
|
|
|
|
22.1%
|
|
|
17.5%
|
|
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In approximate millions)
|
||||||
Nuclear Operations Group
|
|
$
|
3,445
|
|
|
$
|
2,637
|
|
Nuclear Power Group
|
|
729
|
|
|
804
|
|
||
Nuclear Services Group
|
|
46
|
|
|
38
|
|
||
Total Backlog
|
|
$
|
4,220
|
|
|
$
|
3,479
|
|
|
|
2019
|
|
2020
|
|
Thereafter
|
|
Total
|
||||||||
|
|
(In approximate millions)
|
||||||||||||||
Nuclear Operations Group
|
|
$
|
357
|
|
|
$
|
1,065
|
|
|
$
|
2,023
|
|
|
$
|
3,445
|
|
Nuclear Power Group
|
|
96
|
|
|
200
|
|
|
433
|
|
|
729
|
|
||||
Nuclear Services Group
|
|
21
|
|
|
12
|
|
|
13
|
|
|
46
|
|
||||
Total Backlog
|
|
$
|
474
|
|
|
$
|
1,277
|
|
|
$
|
2,469
|
|
|
$
|
4,220
|
|
|
|
September 30,
2019 |
|
December 31,
2018 |
||||
|
|
(In thousands)
|
||||||
Domestic
|
|
$
|
28,887
|
|
|
$
|
37,108
|
|
Foreign
|
|
4,073
|
|
|
10,279
|
|
||
Total
|
|
$
|
32,960
|
|
|
$
|
47,387
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4.
|
CONTROLS AND PROCEDURES
|
Item 1.
|
LEGAL PROCEEDINGS
|
Item 1A.
|
RISK FACTORS
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total number
of shares
purchased (1)
|
|
Average
price
paid
per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar
value of shares that
may yet be
purchased under the
plans or programs
(in millions) (2)
|
||||||
July 1, 2019 - July 31, 2019
|
|
24
|
|
|
$
|
49.83
|
|
|
—
|
|
|
$
|
165.3
|
|
August 1, 2019 - August 31, 2019
|
|
505
|
|
|
$
|
56.82
|
|
|
—
|
|
|
$
|
165.3
|
|
September 1, 2019 - September 30, 2019
|
|
8,547
|
|
|
$
|
59.71
|
|
|
—
|
|
|
$
|
165.3
|
|
Total
|
|
9,076
|
|
|
$
|
59.52
|
|
|
—
|
|
|
|
(1)
|
Includes 24, 505 and 8,547 shares repurchased during July, August and September, respectively, pursuant to the provisions of employee benefit plans that permit the repurchase of shares to satisfy statutory tax withholding obligations.
|
(2)
|
On November 6, 2018, we announced that our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock at an aggregate market value of up to $250 million during a three-year period that expires on November 6, 2021.
|
Item 5.
|
OTHER INFORMATION
|
Item 6.
|
EXHIBITS
|
Exhibit
Number
|
|
Description
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
3.3
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
104
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
|
|
|
|
|
|
|
|
|
BWX TECHNOLOGIES, INC.
|
|
|
|
||
|
|
|
|
/s/ David S. Black
|
|
|
By:
|
|
David S. Black
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer and Duly Authorized
|
|
|
|
|
Representative)
|
|
|
|
||
|
|
|
|
/s/ Jason S. Kerr
|
|
|
By:
|
|
Jason S. Kerr
|
|
|
|
|
Vice President and Chief Accounting Officer
|
|
|
|
|
(Principal Accounting Officer and Duly Authorized
|
|
|
|
|
Representative)
|
|
|
|
||
November 4, 2019
|
|
|
|
|
|
|
|
Page
|
Article I
|
STOCKHOLDERS
|
1
|
|
|
|
|
|
|
Section 1.1
|
Annual Meetings
|
1
|
|
Section 1.2
|
Special Meetings
|
1
|
|
Section 1.3
|
Notice of Meetings
|
1
|
|
Section 1.4
|
Fixing Date for Determination of Stockholders of Record
|
2
|
|
Section 1.5
|
List of Stockholders Entitled To Vote
|
2
|
|
Section 1.6
|
Adjournments
|
2
|
|
Section 1.7
|
Quorum
|
3
|
|
Section 1.8
|
Organization
|
3
|
|
Section 1.9
|
Voting by Stockholders
|
3
|
|
Section 1.10
|
Stockholder Proposals
|
4
|
|
Section 1.11
|
Proxies
|
6
|
|
Section 1.12
|
Conduct of Meetings
|
7
|
|
|
|
|
Article II
|
BOARD OF DIRECTORS
|
7
|
|
|
|
|
|
|
Section 2.1
|
Powers, Number and Vacancies
|
7
|
|
Section 2.2
|
Regular Meetings
|
8
|
|
Section 2.3
|
Special Meetings
|
8
|
|
Section 2.4
|
Telephonic Meetings
|
8
|
|
Section 2.5
|
Organization
|
8
|
|
Section 2.6
|
Order of Business
|
8
|
|
Section 2.7
|
Notice of Meetings
|
8
|
|
Section 2.8
|
Quorum; Vote Required for Action
|
9
|
|
Section 2.9
|
Board Action by Unanimous Written Consent in Lieu of Meeting
|
9
|
|
Section 2.10
|
Nomination of Directors; Qualifications
|
9
|
|
Section 2.11
|
Compensation
|
12
|
|
|
|
|
Article III
|
BOARD COMMITTEES
|
12
|
|
|
|
|
|
|
Section 3.1
|
Board Committees
|
12
|
|
Section 3.2
|
Board Committee Rules
|
13
|
|
|
|
|
Article IV
|
OFFICERS
|
13
|
|
|
|
|
|
|
Section 4.1
|
Designation
|
13
|
|
Section 4.2
|
Executive Chairman
|
13
|
|
Section 4.3
|
Chief Executive Officer
|
13
|
|
Section 4.4
|
Chief Financial Officer
|
13
|
|
Section 4.5
|
General Counsel
|
13
|
|
Section 4.6
|
Executive Vice President, Senior Vice President, Vice President
|
13
|
|
Section 4.7
|
Secretary and Assistant Secretary
|
14
|
|
Section 4.8
|
Treasurer and Assistant Treasurer
|
14
|
|
Section 4.9
|
Other Officers
|
14
|
|
Section 4.10
|
Other Positions
|
14
|
|
Section 4.11
|
Vacancies
|
14
|
|
Section 4.12
|
Removal
|
14
|
|
Section 4.13
|
Action with Respect to Securities of Other Corporations
|
15
|
|
|
|
|
Article V
|
CAPITAL STOCK
|
15
|
|
|
|
|
|
|
Section 5.1
|
Uncertificated Shares
|
15
|
|
Section 5.2
|
Transfer of Shares
|
15
|
|
Section 5.3
|
Ownership of Shares
|
15
|
|
Section 5.4
|
Regulations Regarding Shares
|
15
|
|
|
|
|
Article VI
|
INDEMNIFICATION
|
15
|
|
|
|
|
|
|
Section 6.1
|
General
|
15
|
|
Section 6.2
|
Expenses
|
15
|
|
Section 6.3
|
Advances
|
16
|
|
Section 6.4
|
Request for Indemnification
|
16
|
|
Section 6.5
|
Determination of Entitlement; No Change of Control
|
16
|
|
Section 6.6
|
Determination of Entitlement; Change of Control
|
16
|
|
Section 6.7
|
Procedures of Independent Counsel
|
16
|
|
Section 6.8
|
Independent Counsel Expenses
|
17
|
|
Section 6.9
|
Adjudication
|
17
|
|
Section 6.10
|
Participation by the Corporation
|
18
|
|
Section 6.11
|
Nonexclusivity of Rights
|
19
|
|
Section 6.12
|
Insurance and Subrogation
|
19
|
|
Section 6.13
|
Severability
|
19
|
|
Section 6.14
|
Certain Actions Where Indemnification Is Not Provided
|
19
|
|
Section 6.15
|
Definitions
|
19
|
|
Section 6.16
|
Notices
|
20
|
|
Section 6.17
|
Contractual Rights
|
21
|
|
Section 6.18
|
Indemnification of Employees, Agents and Fiduciaries
|
21
|
|
|
|
|
Article VII
|
MISCELLANEOUS
|
21
|
|
|
|
|
|
|
Section 7.1
|
Fiscal Year
|
21
|
|
Section 7.2
|
Seal
|
21
|
|
Section 7.3
|
Interested Directors; Quorum
|
21
|
|
Section 7.4
|
Form of Records
|
21
|
|
Section 7.5
|
Bylaw Amendments
|
22
|
|
Section 7.6
|
Notices; Waiver of Notice
|
22
|
|
Section 7.7
|
Resignations
|
22
|
|
Section 7.8
|
Books, Reports and Records
|
22
|
|
Section 7.9
|
Facsimile Signatures
|
22
|
|
Section 7.10
|
Certain Definitional Provisions
|
23
|
|
Section 7.11
|
Captions
|
23
|
|
Section 7.12
|
Forum for Adjudication of Disputes
|
23
|
1.
|
I have reviewed this quarterly report on Form 10-Q of BWX Technologies, Inc. for the quarterly period ended September 30, 2019;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Rex D. Geveden
|
|
Rex D. Geveden
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of BWX Technologies, Inc. for the quarterly period ended September 30, 2019;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ David S. Black
|
|
David S. Black
|
|
Senior Vice President and Chief Financial Officer
|
(1)
|
the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
Dated: November 4, 2019
|
|
/s/ Rex D. Geveden
|
|
|
Rex D. Geveden
|
|
|
President and Chief Executive Officer
|
(1)
|
the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
|
Dated: November 4, 2019
|
|
/s/ David S. Black
|
|
|
David S. Black
|
|
|
Senior Vice President and Chief Financial Officer
|