Company: BWXT
Filing Date: 2025-03-19
Form Type: 10-K/A
Source: 0001486957-25-000015
Chunk: 59

Company: BWX Technologies, Inc.
Filing Date: 2025-03-19
Form: 10-K/A
Chunk 59
---
 point change in the assumed discount rate and return on plan assets on our FAS pension benefit plan obligations and expense for the year ended December 31, 2024:

| Discount Rate:                                 |     | .25% Increase 
 (In millions) |       |     | .25% Decrease |      |
|:-----------------------------------------------|:----|:--------------|------:|:----|:--------------|-----:|
| Effect on ongoing net periodic benefit cost(1) |     | $             |   0.6 |     | $             | -0.7 |
| Effect on projected benefit obligation         |     | $             | -21.0 |     | $             | 21.8 |
| Return on Plan Assets:                         |     |               |       |     |               |      |
| Effect on ongoing net periodic benefit cost    |     | $             |  -2.1 |     | $             |  2.1 |

(1) Excludes effect of annual mark to market adjustment.

Goodwill and Intangible Assets

Each year, we evaluate goodwill at each reporting unit to assess recoverability, and impairments, if any, are recognized in earnings. We perform a qualitative analysis when we believe that there is sufficient excess fair value over carrying value based on our most recent quantitative assessment, adjusted for relevant facts and circumstances that could affect fair value. Deterioration in macroeconomic, industry and market conditions, cost factors, overall financial performance, share price decline or entity and reporting unit specific events could cause us to believe a qualitative test is no longer appropriate.

When we determine that it is appropriate to test goodwill for impairment utilizing a quantitative test, we compare the fair value of a reporting unit to its carrying amount, including goodwill. We utilize both the income and market valuation approaches to provide inputs into the estimate of the fair value of our reporting units, which would be considered by market participants.

Under the income valuation approach, we employ a discounted cash flow model to estimate the fair value of each reporting unit. This model requires the use of significant estimates and assumptions regarding future revenues, costs, margins, capital expenditures, changes in working capital, terminal year growth rate and cost of capital. Our cash flow models are based on our forecasted results for the applicable reporting units. Actual results could differ materially from our projections. Some assumptions, such as future revenues, costs and changes in working capital are company driven and could be affected by a loss of one or more significant contracts or customers, failure