SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

B&W’s innovative products and services are organized into three market-facing segments which changed in the third quarter of 2020 as part of the Company's strategic, market-focused organizational and re-branding initiative to accelerate growth and provide stakeholders improved visibility into our renewable and environmental growth platforms. Segment results for all periods have been restated for comparative purposes. Our reportable segments are as follows:

•Babcock & Wilcox Renewable: Cost-effective technologies for efficient and environmentally sustainable power and heat generation, including waste-to-energy, biomass energy and black liquor systems for the pulp and paper industry. B&W’s leading technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions.

•Babcock & Wilcox Environmental: A full suite of best-in-class emissions control and environmental technology solutions for utility, waste to energy, biomass, carbon black, and industrial steam generation applications around the world. B&W’s broad experience includes systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control.

•Babcock & Wilcox Thermal: Steam generation equipment, aftermarket parts, construction, maintenance and field services for plants in the power generation, oil and gas, and industrial sectors. B&W has an extensive global base of installed equipment for utilities and general industrial applications including refining, petrochemical, food processing, metals and others.

Revenues exclude eliminations of revenues generated from sales to other segments or to other product lines within the segment. An analysis of our operations by segment is as follows:

	Three months ended March 31,
(in thousands)	2021		2020
Revenues:
B&W Renewable segment
B&W Renewable	$	17,997	$	22,338
Vølund	10,814		13,661
	28,811		35,999
B&W Environmental segment
B&W Environmental	17,433		12,935
SPIG	11,184		11,337
GMAB	2,543		1,648
	31,160		25,920
B&W Thermal segment
B&W Thermal	108,281		86,683
	108,281		86,683
Other	(4)		(48)
	$	168,248	$	148,554

The presentation of the components of our adjusted EBITDA in the table below is consistent with the way our chief operating decision maker reviews the results of our operations and makes strategic decisions about our business. Items such as gains or losses on asset sales, MTM pension adjustments, restructuring costs, impairments, losses on debt extinguishment, costs related to financial consulting required under our U.S. Revolving Credit Facility, research and development costs and other costs that may not be directly controllable by segment management are not allocated to the segments.

Adjusted EBITDA for each segment is presented below with a reconciliation to net income (loss) attributable to stockholders.

	Three months ended March 31,
(in thousands)	2021		2020
Adjusted EBITDA (1)
B&W Renewable segment	$	204	$	(1,434)
B&W Environmental segment	1,101		270
B&W Thermal segment	10,430		7,606
Corporate	(2,685)		(4,143)
Research and development costs	(588)		(1,341)
	8,462		958
Restructuring activities	(993)		(1,951)
Financial advisory services	(933)		(929)
Advisory fees for settlement costs and liquidity planning	(1,978)		(2,614)
Litigation legal costs	(380)		(696)
Stock compensation	(7,829)		(712)
Interest on letters of credit included in cost of operations	(286)		(152)
Loss from business held for sale	(483)		(788)
Depreciation & amortization	(4,058)		(4,208)
Gain (loss) from a non-strategic business	12		(121)
Gain on asset disposals, net	2,004		915
Operating loss	(6,462)		(10,298)
Interest expense, net	(14,114)		(22,051)
Gain on sale of business	358		—
Net pension benefit	9,098		7,536
Foreign exchange	(1,209)		(9,326)
Other – net	(278)		(206)
Total other income (expense)	(6,145)		(24,047)
Loss before income tax (benefit) expense	(12,607)		(34,345)
Income tax (benefit) expense	2,836		(810)
Loss from continuing operations	(15,443)		(33,535)
Income from discontinued operations, net of tax	—		1,913
Net loss	(15,443)		(31,622)
Net (income) loss attributable to non-controlling interest	(21)		96
Net loss attributable to stockholders	$	(15,464)	$	(31,526)

(1) Adjusted EBITDA for the three months ended March 31, 2020, excludes losses related to a non-strategic business and interest on letters of credit included in cost of operations that were previously included in Adjusted EBITDA and total $(0.1) million and $(0.2) million, respectively.

We do not separately identify or report our assets by segment as our chief operating decision maker does not consider assets by segment to be a critical measure by which performance is measured.