Company: BWXT
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001486957-25-000008
Chunk: 151

Company: BWX Technologies, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 151
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, which include mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans which changed to a gain of $0.8 million during the year ended December 31, 2024 compared to a loss of $20.9 million for the year ended December 31, 2023. This was caused by a decrease in losses related to mark to market adjustments totaling $20.2 million. In addition, we experienced a decrease in interest expense of $7.6 million in 2024 when compared to the prior year due primarily to a decrease in borrowings coupled with a decline in the weighted-average interest rate on outstanding borrowings under our Credit Facility, as defined below.

Provision for Income Taxes

 Year Ended December 31, 20242023$ Change(In thousands)Income before Provision for Income Taxes$348,720 $321,400 $27,320 Provision for Income Taxes$66,422 $75,079 $(8,657)Effective Tax Rate19.0%23.4%

For the year ended December 31, 2024, our provision for income taxes decreased $8.7 million to $66.4 million, while income before provision for income taxes increased $27.3 million to $348.7 million when compared to the prior year. Our effective tax rate was 19.0% for the year ended December 31, 2024 compared to 23.4% for the year ended December 31, 2023. Our effective tax rate for the year ended December 31, 2024 was lower than the U.S. corporate income tax rate of 21% primarily due to increased benefits from U.S. federal research and development tax credits. Our effective tax rate for the year ended December 31, 2023 was higher than the U.S. corporate income tax rate of 21% primarily due to state income taxes within the U.S. and the unfavorable rate differential associated with our non-U.S. earnings.

See Note 5 to our consolidated financial statements included in this Report for further information on income taxes.

37

Effects of Inflation and Changing Prices

Our financial statements are prepared in accordance with GAAP, using historical U.S. dollar accounting ("historical cost"). Statements based on historical cost, however, do not adequately reflect the cumulative effect of increasing costs and changes in the purchasing power of the U.S. dollar, especially during times of