What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2022-02-22 compared with 2021-02-22 · 145 added, 230 removed, 1558 unchanged (19% of the section changed)

25 unchanged sentences

The Company recognizes estimated contract revenue and resulting income based on the measurement of the extent of progress toward completion as a percentage of the total project.

The Company reviews contract price and cost estimates periodically as the work progresses and reflects adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised.

The Company reviews contract price and cost estimates periodically as the work progresses and reflect adjustments proportionate to the percentage-of-completion in income in the period when those estimates are revised.

The accounting for these contracts involves judgment, particularly as it relates to the process of estimating total costs to complete the performance obligation.

3 unchanged sentences

• We tested the effectiveness of controls over revenue recognized over time, including those over cost estimates at completion for performance obligations.

• For select cumulative adjustments recorded, we performed a retrospective review to determine that the adjustments were the result of changes in facts and circumstances and not estimates that were previously inaccurate.

• We tested the recorded revenue using a combination of analytical procedures and detailed contract testing.

• For select contracts with customers recognized over time, our detail testing performed included the following:

◦ Read the contract to understand the contract terms and evaluated the appropriateness of the accounting treatment in accordance with generally accepted accounting principles.

• We tested recorded revenue using analytical procedures.

• We analyzed cumulative adjustments recorded during the year and tested those with characteristics of audit interest to determine that the adjustments were the result of changes in facts and circumstances.

• We analyzed contracts with customers recognized over time to identify whether there are contracts with characteristics of audit interest.

For each contract determined to exhibit characteristics of audit interest, we performed detail testing, including the following:

◦ Read the contract to understand the contract terms and the accounting treatment in accordance with generally accepted accounting principles.

◦ Compared the transaction price to the consideration expected to be received based on current rights and obligations under the contract, including modifications that were agreed upon with the customer.

◦ Tested management’s identification of distinct performance obligations.

◦ Tested the mathematical accuracy of management’s calculation of the percent complete, the profit margin and the revenue recognized over time.

◦ Evaluated a selection of cost estimates within the selected contract as follows:

▪ Compared costs incurred to date or costs of similar performance obligations to evaluate the reasonableness of management’s estimates.

▪ Evaluated management’s ability to achieve the cost estimates by performing corroborating inquiries with the Company’s project managers and engineers, as appropriate;

comparing the estimates to management’s work plans, engineering specifications, purchase orders, and/or supplier contracts as appropriate;

and when considered necessary, observation of the work site to evaluate project status.

▪ Evaluated costs incurred to date and costs of similar performance obligations, as appropriate, to evaluate the reasonableness of management’s estimates.

▪ Evaluated management’s ability to achieve the cost estimates by performing corroborating inquiries with the Company’s project manager and comparing the estimates to management’s work plans and/or supplier contracts, as appropriate.

/S/ DELOITTE & TOUCHE LLP

30 unchanged sentences

Current Liabilities:

Current maturities of long-term debt $ — $ 14,711

Bank overdraft $ — $ 88,694

55 unchanged sentences

Interest income

518 942 2,479

Interest expense

30 unchanged sentences

Derivative financial instruments:

Unrealized (losses) gains arising during the period, net of tax benefit (provision) of $ 24 , $ 442 and $( 167 ), respectively

Unrealized losses arising during the period, net of tax benefit of $ 170 , $ 24 and $ 442 , respectively

( 500 ) ( 73 ) ( 1,586 )

Reclassification adjustment for (gains) losses included in net income, net of tax provision (benefit) of $ 173 , $( 310 ) and $ 47 , respectively

Reclassification adjustment for losses (gains) included in net income, net of tax (benefit) provision of $( 103 ), $ 173 and $( 310 ), respectively

302 ( 487 ) 888

4 unchanged sentences

2,295 2,532 2,030

Unrealized (losses) gains arising during the period, net of tax provision of $( 56 ), $( 3 ) and $( 6 ), respectively

Unrealized gains (losses) arising during the period, net of tax provision of $( 24 ), $( 56 ) and $( 3 ), respectively

90 ( 191 ) 418

Reclassification adjustment for gains included in net income, net of tax provision of $ 0 , $ 0 and $ 1 , respectively

Other Comprehensive Income (Loss)

71 unchanged sentences

Provision for deferred taxes 40,091 7,890 3,794

Recognition of losses for pension and postretirement plans 9,548 6,222 34,554

Recognition of (gains) losses for pension and postretirement plans ( 36,647 ) 9,548 6,222

Stock-based compensation expense 18,613 16,844 12,726

Premium for early redemption of senior notes 10,752 — —

Recognition of debt issuance costs from former debt instruments 4,212 665 —

Other, net 1,401 ( 1,457 ) 963

14 unchanged sentences

Sales and maturities of securities 5,553 6,360 5,874

Investments, net of return of capital, in equity method investees 88 255 ( 9,059 )

Other, net 5,585 3,485 463

3 unchanged sentences

Repayments of long-term debt ( 999,300 ) ( 794,676 ) ( 654,095 )

Premium for early redemption of senior notes ( 10,752 ) — —

Payment of debt issuance costs ( 4,838 ) ( 6,803 ) —

Bank overdraft 88,694 — —

Repurchases of common shares ( 21,960 ) ( 20,000 ) ( 214,759 )

Borrowings and repayments of bank overdraft ( 88,694 ) 88,694 —

Repurchases of common stock ( 225,786 ) ( 21,960 ) ( 20,000 )

Dividends paid to common shareholders ( 79,668 ) ( 72,940 ) ( 65,374 )

2 unchanged sentences

Other, net ( 2,389 ) ( 9,332 ) 900

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 25,046 ( 43,713 ) ( 9,323 )

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES ( 90,136 ) 25,046 ( 43,713 )

EFFECTS OF EXCHANGE RATE CHANGES ON CASH 240 ( 271 ) 332

53 unchanged sentences

This segment also develops technology for a variety of applications, including advanced nuclear power sources, and offers complete advanced nuclear fuel and reactor design and engineering, licensing and manufacturing services for new advanced nuclear reactors.

See Note 15 for financial information about our segments.

See Note 15 and Note 3 for financial information about our segments.

During the first quarter of 2022, we made changes to our reportable segments to better align our businesses by their government and commercial nature, which reflects the manner in which resources will be allocated and operating performance will be assessed going forward.

Beginning with first quarter of 2022 reporting, our reportable segments will be Government Operations and Commercial Operations, and both segments will now include research and development and certain commercialization activities associated with new technologies previously reported centrally, outside of our reportable segments.

Our Government Operations segment will consist of our legacy Nuclear Operations Group and Nuclear Services Group segments with certain research and development activities in the areas of advanced reactors and autonomous manufacturing.

Our Commercial Operations segment will consist of our legacy Nuclear Power Group with certain research and development and commercialization activities in the areas of medical and industrial radioisotopes.

Divestiture of U.S.-Based Commercial Nuclear Services Business

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Recently Adopted Accounting Standards

On January 1, 2020, we adopted the update to the Financial Accounting Standards Board ("FASB") Topic Financial Instruments – Credit Losses .

This update requires entities to recognize expected credit losses immediately in the financial statements.

We considered our customer base, credit loss history and expected loss rate in our evaluation of expected credit losses.

The adoption of the provisions in this update did not have an impact on our financial position, results of operations or cash flows.

On January 1, 2020, we adopted the update to the FASB Topic Intangibles – Goodwill and Other (Topic 350):

Simplifying the Test for Goodwill Impairment .

This update simplifies the accounting for goodwill impairment by eliminating the second step from the goodwill impairment test.

Goodwill impairment is now determined by comparing the fair value of a reporting unit with its carrying amount.

The adoption of the provisions in this update did not have an impact on our financial position, results of operations or cash flows.

In December 2019, the FASB issued an update to the FASB Topic Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes .

This update simplifies various aspects related to the accounting for income taxes by eliminating certain exceptions to the general principles in Topic 740, simplifies when companies recognize deferred taxes in an interim period and clarifies certain aspects of the current guidance to promote consistent application.

We elected to early adopt this update effective January 1, 2020, which did not have a material impact on our financial position, results of operations or cash flows.

On January 1, 2020, we adopted the update to the FASB Topic Compensation – Retirement Benefits – Defined Benefit Plans – General .

This update modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans.

This update requires disclosure changes to be presented on a retrospective basis.

The adoption of the provisions in this update did not have an impact on our financial position, results of operations or cash flows.

There were no accounting standards adopted during the year ended December 31, 2021 that had an impact on our financial position, results of operations, cash flows or disclosures.

Use of Estimates

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Balance at end of period $ 5,321 $ 5,292 $ 9,042

(1) Includes discounts provided to customers in satisfaction of warranty obligations totaling $( 1.2 ) million in each of the years ended December 31, 2019 and 2018.

(1) Includes discounts provided to customers in satisfaction of warranty obligations totaling $( 1.2 ) million in the year ended December 31, 2019.

(2) Includes $( 2.5 ) million related to the divestiture of the U.S.-based commercial nuclear services business during the year ended December 31, 2020.

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These excess tax benefits result from tax deductions in excess of the cumulative compensation expense recognized for options exercised and other equity-classified awards.

Additionally, this FASB topic amended FASB Topic Statement of Cash Flows to require excess tax benefits to be classified along with other income tax cash flows as an operating activity.

In addition, cash flows related to employee taxes paid for withheld shares are classified as a financing activity.

See Note 9 for a further discussion of stock-based compensation.

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On April 11, 2020, the Canadian Government enacted the Canada Emergency Wage Subsidy ("CEWS") under the COVID-19 Economic Response Plan to prevent large layoffs and help employers offset a portion of their employee salaries and wages for a limited period.

During the year ended December 31, 2020, we recognized $ 20.4 million of subsidies under CEWS as an offset to operating expenses.

During the years ended December 31, 2021 and 2020, we recognized subsidies under the CEWS as offsets to operating expenses of $ 5.4 million and $ 20.4 million, respectively.

Research and Development

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We charge the costs of research and development unrelated to specific contracts as incurred.

Contractual arrangements for customer-sponsored research and development can vary on a case-by-case basis and include contracts, cooperative agreements and grants.

Contractual arrangements for customer-sponsored research and development can vary on a case-by-case basis.

Research and development activities totaled $ 31.4 million, $ 40.8 million and $ 66.9 million in the years ended December 31, 2021, 2020 and 2019, respectively.

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Our investment portfolio consists primarily of U.S.

Government and agency securities, corporate bonds and equities and mutual funds.

Our debt securities are carried at fair value and are either classified as trading, with unrealized gains and losses reported in earnings, or as available-for-sale, with the unrealized gains and losses, net of tax, reported as a component of Accumulated other comprehensive income.

Government securities, corporate bonds and equities and mutual funds.

other comprehensive income.

Our equity securities are carried at fair value with the unrealized gains and losses reported in earnings.

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The cost of securities sold is based on the specific identification method.

We include interest on securities in Interest income.

We include interest on investments in Interest income.

We carry our inventory at the lower of cost or net realizable value using either the weighted average or first-in, first-out methods.

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Goodwill represents the excess of the cost of our acquired businesses over the fair value of the net assets acquired.

We perform testing of goodwill for impairment annually.

We perform testing of goodwill for impairment annually or more frequently whenever events or circumstances indicate the carrying value of goodwill may be impaired.

We may elect to perform a qualitative test when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant events and circumstances that could affect fair value during the current year.

If we conclude based on this assessment that it is more

likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test.

If we conclude based on this assessment that it is more likely than not that the reporting unit is not impaired, we do not perform a quantitative impairment test.

In all other circumstances, we compare the fair value of a reporting unit to its carrying amount, including goodwill.

6 unchanged sentences

Balance at December 31, 2019 $ 110,939 $ 119,563 $ 45,000 $ 275,502

Translation and other (1)

— 1,420 — 1,420

Acquisition of Precision Manufacturing (Note 2) — 5,753 — 5,753

Translation — 2,453 — 2,453

Balance at December 31, 2020 $ 110,939 $ 127,769 $ 45,000 $ 283,708

Acquisition of Laker Energy Products (Note 2) — 5,753 — 5,753

Translation — 1,794 — 1,794

Balance at December 31, 2021 $ 110,939 $ 129,563 $ 45,000 $ 285,502

(1) Includes an adjustment of $( 3.2 ) million, net of tax, to correct the business combination accounting for our 2016 acquisition.

Investments in Unconsolidated Affiliates

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Unpatented technology 38,073 37,529 36,785

Favorable operating leases — — 35,161

CNSC class 1B nuclear facility license 26,911 26,528 26,002

7 unchanged sentences

Unpatented technology ( 6,398 ) ( 4,584 ) ( 2,805 )

Favorable operating leases — — ( 1,295 )

CNSC class 1B nuclear facility license ( 4,521 ) ( 3,573 ) ( 2,635 )

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Leases with initial terms of 12 months or less are excluded from our right-of-use assets and lease liabilities.

Our right-of-use assets are included in Other Assets on our consolidated balance sheet.

Our current lease liabilities are included in Accrued liabilities – other , and our noncurrent lease liabilities are included in Other Liabilities on our consolidated balance sheet.

Our right-of-use assets are included in Other Assets on our consolidated balance sheets.

Our current lease liabilities are included in Accrued liabilities – other , and our noncurrent lease liabilities are included in Other Liabilities on our consolidated balance sheets.

We use discount rates based on our incremental borrowing rate as most of our leases do not provide an implicit rate that can be readily determined.

9 unchanged sentences

At December 31, 2021, our right-of-use assets totaled $ 46.4 million.

The difference between the right-of-use assets and lease liabilities was primarily the result of our adoption of the update to the FASB Topic Leases on January 1, 2019, which resulted in reclassifications from Intangible Assets of favorable leases related to recent acquisitions.

Deferred Debt Issuance Costs

10 unchanged sentences

Balance at end of period $ 10,696 $ 12,269 $ 8,006

(1) Includes the recognition of prior deferred debt issuance costs associated with former credit facilities of $( 0.7 ) million and $( 2.4 ) million for the years ended December 31, 2020 and 2018, respectively.

(1) Includes the recognition of prior deferred debt issuance costs associated with former debt instruments of $( 4.2 ) million and $( 0.7 ) million for the years ended December 31, 2021 and 2020, respectively.

Pension Plans and Postretirement Benefits

3 unchanged sentences

The actuarial valuations utilize significant assumptions in the determination of our benefit cost and obligations, including assumptions regarding discount rates, expected returns on plan assets, mortality and health care cost trends.

We determine our discount rate based on a yield curve comprised of rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement

We determine our discount rate based on a yield curve comprising rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of our pension and postretirement

benefit plan obligations.

63 unchanged sentences

Currency translation adjustments $ 30,627 $ 24,454

Net unrealized (loss) gain on derivative financial instruments ( 496 ) 64

Net unrealized loss on derivative financial instruments ( 694 ) ( 496 )

Unrecognized prior service cost on benefit obligations ( 18,022 ) ( 15,902 )

16 unchanged sentences

$ ( 2,295 ) $ ( 2,532 ) $ ( 2,030 ) Net Income

Realized gains on investments

$ — $ — $ 3 Other – net

— — ( 1 ) Provision for Income Taxes

$ — $ — $ 2 Net Income

Total reclassification for the period

21 unchanged sentences

Assuming market conditions continue, we expect to recognize the majority of this amount in the next twelve months.

For the years ended December 31, 2020, 2019 and 2018, we recognized $ 8.7 million, $( 1.0 ) million and $( 4.7 ) million, respectively, of (gains) losses associated with FX forward contracts not designated as hedges.

At December 31, 2020, our derivative financial instruments consisted of FX forward contracts with a total notional value of $ 245.3 million with maturities extending to March 2023.

For the years ended December 31, 2021, 2020 and 2019, we recognized $( 0.1 ) million, $ 8.7 million and $( 1.0 ) million, respectively, of (gains) losses associated with FX forward contracts not designated as hedging instruments.

At December 31, 2021, our derivative financial instruments consisted of FX forward contracts with a total notional value of $ 352.2 million with maturities extending to November 2023.

These instruments consist primarily of FX forward contracts to purchase or sell Canadian dollars and Euros.

2 unchanged sentences

Our counterparties to derivative financial instruments have the benefit of the same collateral arrangements and covenants as described under our credit facility.

New Accounting Standards

In October 2021, the FASB issued an update to the Topic Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers .

This update requires entities to recognize and measure contract assets and liabilities acquired in a business combination in accordance with FASB Topic Revenue from Contracts with Customers .

The update will generally result in an entity recognizing contract assets and liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value.

The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted.

We are currently evaluating the impact, if any, of the adoption of this standard on our financial statements.

NOTE 2 – ACQUISITIONS

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On January 2, 2020, our subsidiary BWXT Canada Ltd.

acquired Laker Energy Products Ltd.

("Laker Energy Products") for CAD 23.3 million ($ 17.8 million U.S.

acquired Laker Energy Products Ltd., which was renamed BWXT Precision Manufacturing Inc.

("Precision Manufacturing"), for CAD 23.3 million ($ 17.8 million U.S.

dollar equivalent).

At December 31, 2020, we are subject to the payment of contingent consideration totaling CAD 5.0 million, of which we have recognized CAD 2.5 million as a component of the purchase price.

We were subject to the payment of contingent consideration of which we had recognized CAD 2.5 million as a component of the purchase price.

Our purchase price allocation resulted in the recognition of $ 8.4 million of Property, Plant and Equipment, Net, $ 8.2 million of Intangible Assets and $ 5.8 million of Goodwill.

In addition, we recognized right-of-use assets and lease liabilities of $ 2.7 million.

Laker Energy Products is a global supplier of nuclear-grade materials and precisely machined components for CANDU nuclear power utilities and employs approximately 140 personnel.

Laker Energy Products is reported as part of our Nuclear Power Group segment.

Nordion Medical Isotope Business

On July 30, 2018, our subsidiary BWXT ITG Canada, Inc.

acquired the Nordion medical isotope business (the "MI business") for $ 213.0 million.

The MI business is a leading global manufacturer and supplier of critical medical radioisotopes and radiopharmaceuticals for research, diagnostic and therapeutic uses.

Its customers include radiopharmaceutical companies, hospitals and radiopharmacies.

Its primary operations are located in Kanata, Ontario, Canada and Vancouver, British Columbia, Canada.

This acquisition added approximately 150 highly trained and experienced personnel, two specialized production centers and a uniquely licensed infrastructure.

In addition to the growing portfolio of radioisotope products we acquired, the MI business will be the platform from which we plan to launch our Molybdenum-99 product line and a number of future radioisotope-based imaging, diagnostic and therapeutic products.

This business is reported as part of our Nuclear Power Group segment.

The purchase price of the acquisition has been allocated among assets acquired and liabilities assumed at fair value, with the excess purchase price recorded as goodwill.

Our purchase price allocation is as follows (amounts in thousands):

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

The intangible assets included above consist of the following (dollar amounts in thousands):

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

The following unaudited pro forma financial information presents our results of operations for the years ended December 31, 2018 and 2017 as if the acquisition of the MI business had occurred on January 1, 2017.

The unaudited pro forma financial information below is not intended to represent or be indicative of our actual consolidated results had we completed the acquisition at January 1, 2017.

This information is presented for comparative purposes only and should not be taken as representative of our future consolidated results of operations.

Year Ended December 31,

(In thousands, except per share amounts)

Revenues $ 1,825,029 $ 1,726,135

Net Income Attributable to BWX Technologies, Inc.

$ 228,545 $ 143,475

Basic Earnings per Common Share $ 2.31 $ 1.44

Diluted Earnings per Common Share $ 2.29 $ 1.43

The unaudited pro forma results include the following pre-tax adjustments to the historical results presented above:

• Increase in amortization expense related to timing of amortization of the fair value of identifiable intangible assets acquired of approximately $ 3.5 million and $ 6.0 million for the years ended December 31, 2018 and 2017, 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 and $ 5.2 million for the years ended December 31, 2018 and 2017, respectively.

• Elimination of $ 2.5 million in acquisition related costs recognized in the year ended December 31, 2018 that are not expected to be recurring.

In addition, we recognized right-of-use assets and lease

liabilities of $ 2.7 million.

During the year ended December 31, 2021, we entered into an agreement with the seller resulting in no contingent consideration due and recognized a gain of $ 2.0 million (CAD 2.5 million) as a component of Cost of operations.

Precision Manufacturing is a global supplier of nuclear-grade materials and precisely machined components for CANDU nuclear power utilities and is reported as part of our Nuclear Power Group segment.

NOTE 3 – REVENUE RECOGNITION

The adoption of FASB Topic Revenue from Contracts with Customers , which was recognized in a cumulative catch-up adjustment on January 1, 2018, resulted in an increase to Retained earnings of $ 9.9 million.

Within our Nuclear Operations Group segment, we continue to recognize revenue over time and now measure progress on performance obligations using a cost-to-cost method.

Prior to January 1, 2018, we utilized man-hours or a cost-to-cost method to measure progress on certain performance obligations within this segment.

The performance obligations identified for recognizing revenue are similar to our historical units of account.

As a result of the change to a cost-to-cost method, the timing of revenue recognition on affected contracts, in the aggregate, results in the recognition of revenue and cost of operations earlier in the process of satisfying performance obligations.

This change impacted the life-to-date revenue and cost of operations recognized on performance obligations, and the adjustment to capture the impact of the new revenue recognition standard was recorded as a cumulative catch-up adjustment in Retained earnings.

The impact of the adoption of the new revenue standard on our Nuclear Power Group and Nuclear Services Group segments was not material.

Contracts and Revenue Recognition

1 unchanged sentence

Our Nuclear Operations Group segment recognizes revenue over time for the manufacturing of naval nuclear reactor components and fuel, submarine missile launch tubes and the downblending of high-enriched uranium.

Certain of our contracts

contain two or more different types of components, each of which we identify as a separate performance obligation.

Certain of our contracts contain two or more different types of components, each of which we identify as a separate performance obligation.

We recognize revenue using a cost-to-cost method to measure progress as control is continually transferred to the customer as we incur costs on the performance obligations.

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Disaggregated Revenues

Revenues by geographical area and customer type were as follows:

We allocate geographic revenues based on the location of the customers' operations.

Revenues by geographic area and customer type were as follows:

Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019

55 unchanged sentences

During the years ended December 31, 2021, 2020 and 2019, we recognized net favorable changes in estimates that resulted in increases in revenues of $ 30.7 million, $ 44.9 million and $ 70.9 million, respectively, as well as increases (decreases) in cost of operations of $ 4.2 million, $ 2.1 million and $( 0.7 ) million, respectively.

Included in these 2018 amounts are contract adjustments resulting from rework issues related to the manufacture of non-nuclear components being produced within our Nuclear Operations Group segment.

We recognized a decrease in operating income of $ 29.2 million for the year ended December 31, 2018 related to this matter, which resulted in a decrease in earnings per share of $ 0.23 .

Contract Assets and Liabilities

4 unchanged sentences

Most long-term contracts contain provisions for progress payments.

Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled revenues.

Our unbilled receivables do not contain an allowance for credit losses as we expect to invoice customers and collect all amounts for unbilled receivables.

Changes in Contracts in progress and Advance billings on contracts are primarily driven by differences in the timing of revenue recognition and billings to our customers.

During the year ended December 31, 2020, our unbilled receivables increased $ 70.4 million primarily as a result of the timing of milestone billings in our Nuclear Power Group segment and the acquisition of Laker Energy Products.

During the year ended December 31, 2021, our unbilled receivables increased $ 92.4 million primarily as a result of fixed-price incentive fee contracts within our Nuclear Operations Group segment and the timing of milestone billings on certain firm-fixed-price contracts within our Nuclear Power Group segment.

During the year ended December 31, 2021, our Advance billings on contracts increased $ 28.0 million primarily as a result of billings in excess of revenue recognized on certain firm-fixed-price contracts within our Nuclear Operations Group segment.

Our fixed-price incentive fee contracts for our Nuclear Operations Group segment include provisions that result in an increase in retainages on contracts during the first and third quarters of the year, with larger payments made during the second and fourth quarters.

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Of the long-term retainages at December 31, 2021, we anticipate collecting $ 0.3 million in 2023 and $ 1.0 million in 2024.

During the years ended December 31, 2020 and 2019, we recognized $ 51.5 million and $ 62.3 million of revenue that was in Advance billings on contracts at December 31, 2019 and 2018, respectively.

During the years ended December 31, 2021 and 2020, we recognized $ 67.5 million and $ 51.5 million of revenue that was in Advance billings on contracts at the beginning of each year, respectively.

Remaining Performance Obligations

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Our share of the undistributed earnings of our equity method investees were $ 39.4 million and $ 26.6 million at December 31, 2021 and 2020, respectively.

These amounts are included in Investments in Unconsolidated Affiliates on our consolidated balance sheets.

The following tables summarize combined balance sheet and income statement information for investments accounted for under the equity method:

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This variation, along with the changes in our mix of income within these jurisdictions, can contribute to shifts in our effective tax rate from period to period.

We are currently under audit by various state and international authorities.

We are currently under audit by various state authorities.

With few exceptions, we do not have any returns under examination for years prior to 2017.

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Balance at end of period $ — $ 5,852 $ 3,899

The unrecognized tax benefits balance of $ 5.9 million at December 31, 2020 would reduce our effective tax rate if recognized.

We believe that, within the next 12 months, it is reasonably possible that our entire previously unrecognized tax benefits will be resolved with the appropriate taxing jurisdiction.

Deferred income taxes reflect the net tax effects of temporary differences between the financial and tax bases of assets and liabilities.

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Excess tax deductions on equity compensation ( 0.1 ) % ( 0.3 ) % ( 0.7 ) %

Impact of U.S.

Tax Cuts & Jobs Act — % — % ( 4.7 ) %

Other — % ( 0.3 ) % 0.1 %

Effective tax rate 22.6 % 22.9 % 22.0 %

In the year ended December 31, 2018, we recognized $ 13.5 million of benefit in our provision for income taxes related to the remeasurement of our deferred tax assets as a result of accelerating additional contributions to certain of our domestic pension plans for inclusion in our 2017 U.S.

At December 31, 2021, we had a valuation allowance of $ 13.2 million for deferred tax assets, which we expect cannot be realized through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income.

We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences and our estimate of future taxable income.

We believe that our remaining deferred tax assets are more likely than not realizable through carrybacks, future reversals of existing taxable temporary differences, our estimate of future taxable income and potential tax planning.

Any changes to our estimated valuation allowance could be material to our consolidated financial statements.

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Year Ended December 31, 2019 $ ( 13,257 ) ( 414 ) 93 $ ( 13,578 )

We have federal capital losses of $ 7.2 million available to offset future capital gains.

These federal capital losses begin to expire in the year 2023.

We are carrying a full valuation allowance of $ 7.2 million against the deferred tax asset related to these federal capital loss carryforwards.

We have domestic federal and foreign capital losses of $ 9.3 million available to offset future capital gains.

The domestic federal capital losses begin to expire in 2023, while the foreign capital losses have an indefinite carryforward period.

We are carrying a full valuation allowance of $ 9.3 million against the deferred tax asset related to these domestic federal and foreign capital loss carryforwards.

In addition, we have state credits and state net operating losses of $ 6.1 million ($ 4.9 million net of federal tax benefit) available to offset future taxable income in various states.

These state net operating loss carryforwards begin to expire in the

These state net operating loss carryforwards begin to expire in 2022.

We are carrying a valuation allowance of $ 4.9 million ($ 3.9 million net of federal tax benefit) against the deferred tax asset related to the state credits and state loss carryforwards.

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(In thousands)

Secured Debt:

Debt Instruments:

Senior Notes $ 800,000 $ 800,000

Credit Facility 400,000 75,000

Amounts due within one year — 14,711

Long-Term Debt, gross 1,200,000 875,000

4 unchanged sentences

2025 – $ 400.0 million;

2026 – $ 0.0 million ;

and thereafter – $ 800.0 million.

On June 12, 2020, we issued $ 400 million aggregate principal amount of our 4.125 % senior notes due 2028 (the "Senior Notes due 2028") pursuant to an indenture dated June 12, 2020 (the "2020 Indenture") among the Company, the guarantors party thereto and U.S.

Bank National Association, as trustee.

The proceeds from the issuance of the Senior Notes due 2028 were used to (1) repay in full the Term Loans, as defined below, under our Credit Agreement dated as of May 24, 2018 (as amended, the "Credit Facility"), (2) repay a portion of the borrowings under the Revolving Credit Facility, as defined below, under the Credit Facility and (3) pay all fees and expenses related to the issuance of the Senior Notes due 2028.

Credit Facility

On March 24, 2020, we entered into an Amendment No.

1 to Credit Agreement (the "Amendment"), which amended the Credit Facility with Wells Fargo Bank, N.A., as administrative agent, and the other lenders party thereto.

The Credit Facility originally provided for a $ 500 million senior secured revolving credit facility (the "Revolving Credit Facility"), a $ 50 million U.S.

dollar senior secured term loan A made available to the Company (the "USD Term Loan") and a $ 250 million (U.S.

dollar equivalent) Canadian dollar senior secured term loan A made available to BWXT Canada Ltd.

(the "CAD Term Loan" and together with the USD Term Loan, the "Term Loans").

On June 12, 2020, we repaid in full the Term Loans, at par, with a portion of the proceeds from the issuance of the Senior Notes due 2028.

The Amendment, among other things, (1) provided additional commitments to increase the Revolving Credit Facility by $ 250 million, such that the Revolving Credit Facility is now $ 750 million;

(2) extended the maturity date of the Revolving Credit Facility to March 24, 2025;

(3) removed BWXT Canada Ltd.

as a borrower under the Revolving Credit Facility;

(4) modified the applicable margin for borrowings under the Revolving Credit Facility to be, at the Company's option, either (i) the Eurocurrency rate plus a margin ranging from 1.0 % to 1.75 % per year or (ii) the base rate plus a margin ranging from 0.0 % to 0.75 % per year, in each case depending on the Company's leverage ratio;

(5) modified the commitment fee on the unused portion of the Revolving Credit Facility to range from 0.15 % to 0.225 % per year, depending on the Company's leverage ratio;

and (6) modified the letter of credit fee with respect to each financial letter of credit and performance letter of credit issued under the Revolving Credit Facility to range from 1.0 % to 1.75 % and 0.75 % to 1.05 % per year, respectively, in each case, depending on the Company's leverage ratio.

1 to Credit Agreement, which amended the Credit Agreement dated as of May 24, 2018 (as amended, the "Credit Facility") with Wells Fargo Bank, N.A., as administrative agent, and the other lenders party thereto.

The Credit Facility provides for a $ 750 million senior secured revolving credit facility (the "Revolving Credit Facility").

All obligations under the Revolving Credit Facility are scheduled to mature on March 24, 2025.

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We are charged a commitment fee on the unused portion of the Revolving Credit Facility, and that fee ranges from 0.15 % to 0.225 % per year.

Additionally, we are charged a letter of credit fee of between 1.0 % and 1.75 % per year with respect to the amount of each financial letter of credit issued under the Credit Facility, and a letter of credit fee of between 0.75 % and 1.05 % per year with respect to the amount of each performance letter of credit issued under the Credit Facility.

with respect to the amount of each performance letter of credit issued under the Credit Facility.

The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on our leverage ratio.

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Senior Notes due 2026

On May 24, 2018, we issued $ 400 million aggregate principal amount of 5.375 % senior notes due 2026 (the "Senior Notes due 2026") pursuant to an indenture dated May 24, 2018 (the "2018 Indenture"), among the Company, certain of our subsidiaries, as guarantors, and U.S.

We issued $ 400 million aggregate principal amount of 5.375 % senior notes due 2026 (the "Senior Notes due 2026") pursuant to an indenture dated May 24, 2018, among the Company, certain of our subsidiaries, as guarantors, and U.S.

Bank National Association, as trustee.

The Senior Notes due 2026 are guaranteed by each of the Company's present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Credit Facility.

Interest on the Senior Notes due 2026 is payable semi-annually in cash in arrears on January 15 and July 15 of each year at a rate of 5.375 % per annum.

The Senior Notes due 2026 will mature on July 15, 2026.

On and after July 15, 2021, we may redeem the Senior Notes due 2026, in whole or in part, at a redemption price equal to (i) 102.688 % of the principal amount to be redeemed if the redemption occurs during the twelve-month period beginning on July 15, 2021, (ii) 101.344 % of the principal amount to be redeemed if the redemption occurs during the twelve-month period beginning on July 15, 2022 and (iii) 100.0 % of the principal amount to be redeemed if the redemption occurs on or after July 15, 2023, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

At any time prior to July 15, 2021, we may also redeem up to 40.0 % of the Senior Notes due 2026 with net cash proceeds of certain equity offerings at a redemption price equal to 105.375 % of the principal amount of the Senior Notes due 2026 to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

In addition, at any time prior to July 15, 2021, we may redeem the Senior Notes due 2026, in whole or in part, at a redemption price equal to 100.0 % of the principal amount of the Senior Notes due 2026 to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable "make-whole" premium.

The 2018 Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the 2018 Indenture or the Senior Notes due 2026 and certain provisions related to bankruptcy events.

The 2018 Indenture also contains customary negative covenants.

As of December 31, 2020, we were in compliance with all covenants set forth in the 2018 Indenture and the Senior Notes due 2026.

On July 15, 2021, using cash on hand and borrowings under the Credit Facility, we redeemed the Senior Notes due 2026 at a redemption price equal to 102.688 % of the principal amount, resulting in an early redemption premium of $ 10.8 million and the write-off of deferred debt issuance costs totaling $ 4.2 million.

These charges were recorded in our consolidated statement of income during the year ended December 31, 2021 as components of Other – net and Interest expense, respectively.

Senior Notes due 2028

On June 12, 2020, we issued $ 400 million aggregate principal amount of our Senior Notes due 2028 pursuant to the 2020 Indenture.

We issued $ 400 million aggregate principal amount of 4.125 % senior notes due 2028 (the "Senior Notes due 2028") pursuant to an indenture dated June 12, 2020 (the "2020 Indenture"), among the Company, certain of our subsidiaries, as guarantors, and U.S.

Bank Trust Company, National Association (formerly known as U.S.

Bank National Association) ("U.S.

Bank"), as trustee.

The Senior Notes due 2028 are guaranteed by each of the Company's present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Credit Facility.

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As of December 31, 2021, we were in compliance with all covenants set forth in the 2020 Indenture and the Senior Notes due 2028.

Senior Notes due 2029

We issued $ 400 million aggregate principal amount of 4.125 % senior notes due 2029 (the "Senior Notes due 2029") pursuant to an indenture dated April 13, 2021 (the "2021 Indenture"), among the Company, certain of our subsidiaries, as guarantors, and U.S.

Bank, as trustee.

The Senior Notes due 2029 are guaranteed by each of the Company's present and future direct and indirect wholly owned domestic subsidiaries that is a guarantor under the Credit Facility.

Interest on the Senior Notes due 2029 is payable semi-annually in cash in arrears on April 15 and October 15 of each year at a rate of 4.125 % per annum.

The Senior Notes due 2029 will mature on April 15, 2029.

We may redeem the Senior Notes due 2029, in whole or in part, at any time on or after April 15, 2024 at a redemption price equal to (i) 102.063 % of the principal amount to be redeemed if the redemption occurs during the twelve-month period beginning on April 15, 2024, (ii) 101.031 % of the principal amount to be redeemed if the redemption occurs during the twelve-month period beginning on April 15, 2025 and (iii) 100.0 % of the principal amount to be redeemed if the redemption occurs on or after April 15, 2026, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

At any time prior to April 15, 2024, we may also redeem up to 40.0 % of the Senior Notes due 2029 with net cash proceeds of certain equity offerings at a redemption price equal to 104.125 % of the principal amount of the Senior Notes due 2029 to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

In addition, at any time prior to April 15, 2024, we may redeem the Senior Notes due 2029, in whole or in part, at a redemption price equal to 100.0 % of the principal amount of the Senior Notes due 2029 to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable "make-whole" premium.

The 2021 Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the 2021 Indenture or the Senior Notes due 2029 and certain provisions related to bankruptcy events.

The 2021 Indenture also contains customary negative covenants.

As of December 31, 2021, we were in compliance with all covenants set forth in the 2021 Indenture and the Senior Notes due 2029.

Other Arrangements

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We have historically provided defined benefit retirement benefits, primarily through noncontributory pension plans, for most of our regular employees.

Certain of our subsidiaries have made other benefits available to certain groups of employees,

including postretirement health care and life insurance benefits.

Certain of our subsidiaries have made other benefits available to certain groups of employees, including postretirement health care and life insurance benefits.

For salaried employees, all major U.S.

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Government contracts to the extent applicable.

See further discussion of CAS pension costs in our discussion of Critical Accounting Policies and Estimates included in Item 7 of this Annual Report on Form 10-K.

See further discussion of CAS pension costs under the heading "Critical Accounting Estimates" in Item 7 of this Annual Report on Form 10-K.

Recognized net actuarial losses (gains) consist primarily of our reported actuarial losses (gains), settlements, and the differences between the actual returns on plan assets and the expected returns on plan assets.

The benefit obligation of our pension plans as of December 31, 2020 and 2019 increased by $ 124.2 million and $ 156.8 million, respectively, due primarily to decreases in the discount rate.

In July 2018, we completed the purchase of a group annuity contract that transferred certain domestic pension benefit obligations of approximately $ 240 million to an insurance company for approximately 1,300 retirees.

As a result, we recognized pension settlement-related charges of $ 10.4 million during 2018.

We made contributions to our pension and postretirement benefit plans totaling $ 159.0 million during the year ended December 31, 2018.

In August 2018, we accelerated $ 118.1 million of pension contributions to certain domestic pension plans in order to capture a tax benefit in our 2017 U.S.

tax return due to the change in corporate tax rates.

The benefit obligation of our pension plans as of December 31, 2021 and 2020 increased (decreased) by $( 43.0 ) million and $ 124.2 million, respectively, due to changes in the discount rate.

In December 2021, we purchased a group annuity contract that transferred certain foreign hourly pension benefit obligations of approximately $ 38.3 million to an insurance company for approximately 400 retirees.

As a result, we recognized pension settlement-related charges of $ 1.1 million during the year ended December 31, 2021.

Additional Information

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Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:

Discount rate to determine service cost

3.00 % 3.74 % 3.32 % 3.01 % 3.93 % 3.91 %

Discount rate to determine interest cost

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Fixed Income 20 % 98 %

Equity Securities and Commingled Mutual Funds — % 35 %

Other 2 % 3 %

Commingled and Mutual Funds 11 % — %

Cash and Other 69 % 2 %

Total 100 % 100 %

The target allocation for 2021 for the Canadian plans, by asset class, is entirely fixed income securities.

The target allocation for 2022 for the Canadian plans, by asset class, is as follows:

Fixed Income 20 %

Equities 11 %

Cash and Other 69 %

See Note 14 for a detailed description of fair value measurements and the hierarchy established for valuation inputs.

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Pension and Other Benefits:

Fixed Income $ 391,418 $ — $ 228,857 $ — $ 162,561

Commingled and Mutual Funds 338,473 72,764 — — 265,709

Government Securities $ 369,980 $ 365,295 $ 4,685 $ — $ —

Commingled and Mutual Funds 358,423 77,680 — — 280,743

Fixed Income 182,169 31,856 128,829 — 21,484

Diversified Credit 133,508 — — — 133,508

Real Estate 126,886 — — — 126,886

Investment Contract (1)

46,817 — — 46,817 —

Partnerships with Security Holdings 46,515 — — — 46,515

Cash and Accrued Items (1)

Cash, Cash Equivalents and Accrued Items (2)

46,013 — — — 46,013

Total Assets $ 1,310,311 $ 474,831 $ 133,514 $ 46,817 $ 655,149

(1) During 2021, we filed for regulatory approval for the windup of our foreign salaried pension benefit plan.

Based on those participants who elected to receive annuities upon retirement, we purchased a group annuity contract totaling $ 45.6 million.

(2) Includes items that are not required to be categorized in the fair value hierarchy in order to permit reconciliation of the fair value hierarchy to the fair value of plan assets presented in the Obligations and Funded Status table.

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Government Securities 316,375 310,975 5,400 — —

Partnerships with Security Holdings 52,840 — — — 52,840

Diversified Credit 126,823 — — — 126,823

Real Estate 77,437 — — — 77,437

Other 47,550 — — — 47,550

Cash and Accrued Items 23,823 17,180 6,643 — —

Partnerships with Security Holdings 49,007 — — — 49,007

Cash, Cash Equivalents and Accrued Items (1)

33,776 — — — 33,776

Total Assets $ 1,333,309 $ 383,739 $ 234,257 $ — $ 715,313

(1) Includes items that are not required to be categorized in the fair value hierarchy in order to permit reconciliation of the fair value hierarchy to the fair value of plan assets presented in the Obligations and Funded Status table.

The following is a summary of the changes in the Plans' Level 3 instruments for the year ended December 31, 2021:

Year Ended December 31,

(In thousands)

Balance at beginning of period $ —

Purchases 45,645

Unrealized gain 652

Translation 520

Balance at end of period $ 46,817

Domestic Plans Foreign Plans

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We also provide benefits under the BWXT Thrift Plan (the "Thrift Plan").

The Thrift Plan generally provides for matching employer contributions of 50 % of the first 6 % of compensation, as defined in the Thrift Plan, contributed by

participants, and fully vest and are nonforfeitable after three years of service or upon retirement, death, lay-off or approved disability.

The Thrift Plan generally provides for matching employer contributions of 50 % of the first 6 % of compensation, as defined in the Thrift Plan, contributed by participants, and fully vest and are nonforfeitable after three years of service or upon retirement, death, lay-off or approved disability.

These matching employer contributions are made in cash and invested at the employees' discretion.

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NOTE 8 – CAPITAL STOCK

In October 2015, our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock of up to an aggregate market value of $ 300 million;

this authorization expired on February 26, 2018.

On February 24, 2017, our Board of Directors authorized an additional share repurchase of up to an aggregate market value of $ 150 million;

this authorization became fully utilized in November 2018.

On November 6, 2018, our Board of Directors authorized an additional share repurchase of up to an aggregate market value of $ 250 million during a three-year period from November 6, 2018 to November 6, 2021.

This authorization became fully utilized in September 2021.

On April 30, 2021, 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 $ 500 million with no expiration date.

In the year ended December 31, 2021, we repurchased 4,134,767 shares of our common stock for $ 225.8 million.

In the year ended December 31, 2020, we repurchased 338,521 shares of our common stock for $ 22.0 million.

In the year ended December 31, 2018, we repurchased 4,523,934 shares of our common stock for approximately $ 214.7 million.

In the year ended December 31, 2019, we repurchased 443,877 shares of our common stock for $ 20.0 million.

As of December 31, 2021, we had approximately $ 417.6 million available to us for share repurchase under the $ 500 million authorization described above.

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In June 2012, we established the 2012 Long-Term Incentive Plan of BWXT Technical Services Group, Inc., a cash-settled plan for employees of certain subsidiaries and unconsolidated affiliates as selected by the plan committee.

settled plan provides for a number of forms of stock-based compensation, including stock appreciation rights, restricted stock units and performance units, subject to satisfaction of specific performance goals.

The cash-settled plan provides for a number of forms of stock-based compensation, including stock appreciation rights, restricted stock units and performance units, subject to satisfaction of specific performance goals.

Stock appreciation rights are granted at not less than 100 % of the fair market value closing price of a share of BWXT common stock on the date of grant, become exercisable at such time or times as determined when granted and expire not more than ten years after the date of grant.

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Environmental Protection Agency and the NRC.

We are also involved in manufacturing activities at licensed facilities in Canada that are also subject to continuing reviews by governmental agencies in Canada, including the CNSC.

We are also involved in manufacturing activities at licensed facilities in Canada that are subject to continuing reviews by governmental agencies in Canada, including the CNSC.

The NRC's decommissioning regulations require our Nuclear Operations Group segment to provide financial assurance that it will be able to pay the expected cost of decommissioning its two licensed facilities at the end of their service lives.

We provided financial assurance totaling $ 61.8 million during the years ended December 31, 2020 and 2019 with surety bonds for

the ultimate decommissioning of these licensed facilities.

We provided financial assurance totaling $ 61.8 million during the years ended December 31, 2021 and 2020 with surety bonds for the ultimate decommissioning of these licensed facilities.

These facilities have provisions in their government contracts pursuant to which substantially all of our decommissioning costs and financial assurance obligations are covered by the DOE, including the costs to complete the decommissioning projects underway at the facility in Erwin, Tennessee.

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Our Nuclear Power Group segment's major customers are large utilities.

These concentrations of customers may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be

similarly affected by changes in economic or other conditions.

These concentrations of customers may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic or other conditions.

In the years ended December 31, 2021, 2020 and 2019, U.S.

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Government represented 68 % and 83 % of net receivables at December 31, 2021 and 2020, respectively.

See Note 15 for additional information about our operations in different geographic areas.

See Note 15 and Note 3 for additional information about our operations in different geographic areas.

We believe that our provision for possible losses on uncollectable accounts receivable is adequate for our credit loss exposure.

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$ 6,001 $ 1,649 $ — $ 7,650

5,323 1,432 — 6,755

Available-for-sale securities

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• Level 1 – inputs are based upon quoted prices for identical instruments traded in active markets.

are observable in the market or can be corroborated by observable market data for substantially the full term of the assets and liabilities.

• Level 2 – inputs are based upon quoted prices for similar instruments in active markets, quoted prices for similar or identical instruments in inactive markets and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets and liabilities.

• Level 3 – inputs are generally unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability.

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When appropriate, we adjust these net asset values for contributions and distributions, if any, made during the period beginning on the latest NAV valuation date and ending on our measurement date.

We also consider available market data, relevant index returns, preliminary estimates from our investees and other data obtained through research and consultation with third-party advisors in determining the fair value of these investments.

We also consider available market data, relevant index returns, preliminary estimates from

our investees and other data obtained through research and consultation with third-party advisors in determining the fair value of these investments.

The following sections describe the valuation methodologies we use to measure the fair values of our investments, derivatives and nonrecurring fair value measurements.

Investments primarily include U.S.

Government and agency securities, corporate bonds and equities and mutual funds.

Government securities, corporate bonds and equities and mutual funds.

In general, and where applicable, we principally use a composite of observable prices and quoted prices in active markets for identical assets or liabilities to determine fair value.

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$ 7,650 $ — $ 7,650 $ — $ —

6,755 — 6,755 — —

Available-for-sale securities

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Other Financial Instruments

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

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

Cash and cash equivalents and restricted cash and cash equivalents .

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Where quoted prices are not available, we base the fair values on the present value of future cash flows discounted at estimated borrowing rates for similar debt instruments or on estimated prices based on current yields for debt issues of similar quality and terms.

At December 31, 2020 and 2019, the fair values of our Senior Notes due 2026 were $ 415.5 million and $ 423.5 million, respectively.

At December 31, 2020, the fair value of our Senior Notes due 2026 was $ 415.5 million.

At December 31, 2021 and 2020, the fair value of our Senior Notes due 2028 was $ 406.3 million and $ 416.7 million, respectively.

At December 31, 2021, the fair value of our Senior Notes due 2029 was $ 406.5 million.

The fair value of our remaining debt instruments approximated their carrying values at December 31, 2021 and 2020.

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Nuclear Services Group — 328 2,727

Other — — 467

Unallocated Corporate ( 976 ) — —

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Information about our Consolidated Operations in Different Geographic Areas:

Year Ended December 31,

2021 2020 2019

(In thousands)

REVENUES (1) :

$ 1,780,409 $ 1,572,085 $ 1,446,791

Canada 309,688 287,971 294,913

All Other Countries 33,419 34,864 58,185

$ 2,123,516 $ 1,894,920 $ 1,799,889

(1) We allocate geographic revenues based on the location of the customers' operations .

2020 2019 2018

(In thousands)

NET PROPERTY, PLANT AND EQUIPMENT:

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$ 1,045,640 $ 816,471 $ 580,241

See Note 3 for revenues by geographic area for each of our segments.

Information about our Major Customers:

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(1) Includes equity in income of investees.

In the quarter ended September 30, 2021, we recognized an early redemption premium of $ 10.8 million and wrote-off deferred debt issuance costs totaling $ 4.2 million.

We immediately recognize actuarial gains (losses) for our pension and postretirement benefit plans in earnings as a component of net periodic benefit cost.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data