Company: BWXT
Filing Date: 2025-03-19
Form Type: 10-K/A
Source: 0001486957-25-000015
Chunk: 88

Company: BWX Technologies, Inc.
Filing Date: 2025-03-19
Form: 10-K/A
Chunk 88
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 development capabilities and offset a portion of the costs incurred related to these development efforts.

Research and development activities totaled $53.7 million, $53.0 million and $45.4 million in the years ended December 31, 2024, 2023 and 2022, respectively. This includes amounts paid for by our customers of $46.2 million, $45.4 million and $35.9 million in the years ended December 31, 2024, 2023 and 2022, respectively.

#### Capitalization of Interest Cost
We capitalize interest in accordance with FASB Topic Interest . We incurred total interest of $65.7 million, $73.6 million and $53.9 million in the years ended December 31, 2024, 2023 and 2022, respectively, of which we capitalized $26.3 million, $26.6 million and $17.5 million in the years ended December 31, 2024, 2023 and 2022, respectively.

#### Income Taxes
Income tax expense for federal, foreign, state and local income taxes is calculated on pre-tax income based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We assess deferred taxes and the adequacy of the valuation allowance on a quarterly basis. In the ordinary course of business, there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax benefits for all years subject to examination based upon management's evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. We record interest and penalties (net of any applicable tax benefit) related to income taxes as a component of Provision for Income Taxes on our consolidated statements of income.

We would be subject to withholding taxes if we were to distribute earnings from certain foreign subsidiaries, and unrecognized deferred income tax liabilities, including withholding taxes, would be payable upon distribution