Company: BWXT
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001486957-25-000008
Chunk: 148

Company: BWX Technologies, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 148
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 which is a requirement of our licenses from the NRC and the CNSC. In estimating fair value, we use present value of cash flows expected to be incurred in settling our obligations. To the extent possible, we perform a marketplace assessment of the cost and timing of performing the retirement activities. We apply a credit-adjusted risk-free interest rate to our expected cash flows in our determination of fair value. Actual costs incurred to decommission our facilities may differ from the accreted liability. For environmental liabilities associated with assets that we no longer operate, we have accrued amounts based on the estimated costs of cleanup activities, net of the anticipated effect of any applicable cost-sharing arrangements. We adjust the estimated costs as further information develops or circumstances change. Given the long-lived nature of these facilities, we are required to estimate retirement costs that will be incurred in the future, which may extend up to 40 years at the time the asset retirement obligation is established. Due to the significance of the remaining useful life of these facilities, the timing of retirement and future costs for material components of the asset retirement obligations, such as labor and waste disposal fees, could differ from our estimates. An exception to this accounting treatment relates to the work we perform for two facilities for which the U.S. Government is obligated to pay substantially all the decommissioning costs.

35

Results of Operations – Years Ended December 31, 2024, 2023 and 2022

Selected financial highlights are presented in the table below:

 Year Ended December 31, 202420232022 (In thousands)REVENUES:Government Operations$2,183,040 $2,031,337 $1,808,483 Commercial Operations523,972 466,344 427,358 Eliminations(3,358)(1,372)(3,007)$2,703,654 $2,496,309 $2,232,834 OPERATING INCOME:Government Operations$377,875 $374,682 $336,501 Commercial Operations46,816 37,532 27,418 $424,691 $412,214 $363,919 Unallocated Corporate(44,084)(29,155)(15,348)Total Operating Income$380,607 $383,059 $348,571 

This section discusses our 2024 and 2023 results of operations and contains year-to-year comparisons between 2024 and 2023. Discussions of our 202