VSE (VSEC) 10-Q 27 Jul 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	VSE CORP
Entity Central Index Key	102,752
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)		10,881,106
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 624	$ 624
Receivables, net	54,629	55,760
Unbilled receivables, net	37,955	42,577
Inventories, net	164,390	132,591
Other current assets	13,551	16,988
Total current assets	271,149	248,540
Property and equipment, net	52,670	55,146
Intangible assets, net	102,901	110,909
Goodwill	198,622	198,622
Other assets	15,401	15,796
Total assets	640,743	629,013
Current liabilities:
Current portion of long-term debt	9,468	6,960
Accounts payable	57,648	66,015
Accrued expenses and other current liabilities	32,619	40,243
Dividends payable	870	759
Total current liabilities	100,605	113,977
Long-term debt, less current portion	171,857	165,614
Deferred compensation	18,028	16,323
Long-term lease obligations, less current portion	19,765	20,581
Deferred tax liabilities	19,172	19,423
Total liabilities	329,427	335,918
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.05 per share, authorized 15,000,000 shares; issued and outstanding 10,881,106 and 10,838,747, respectively	544	542
Additional paid-in capital	26,490	24,470
Retained earnings	283,767	267,902
Accumulated other comprehensive income	515	181
Total stockholders' equity	311,316	293,095
Total liabilities and stockholders' equity	$ 640,743	$ 629,013

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 0.05	$ 0.05
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	10,881,106	10,838,747
Common stock, outstanding (in shares)	10,881,106	10,838,747

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 170,394	$ 193,860	$ 347,291	$ 391,154
Costs and operating expenses:
Selling, general and administrative expenses	730	479	1,549	923
Amortization of intangible assets	4,004	4,004	8,008	8,008
Total costs and operating expenses	156,539	178,855	321,843	361,953
Operating income	13,855	15,005	25,448	29,201
Interest expense, net	2,182	2,376	4,357	4,811
Income before income taxes	11,673	12,629	21,091	24,390
Provision for income taxes	2,922	4,822	5,288	9,290
Net income	$ 8,751	$ 7,807	$ 15,803	$ 15,100
Basic earnings per share (in dollars per share)	$ 0.80	$ 0.72	$ 1.45	$ 1.39
Basic weighted average common shares outstanding (in shares)	10,881,106	10,838,435	10,870,887	10,830,595
Diluted earnings per share (in dollars per share)	$ 0.80	$ 0.72	$ 1.45	$ 1.39
Diluted weighted average shares outstanding (in shares)	10,918,927	10,861,769	10,907,777	10,855,632
Dividends declared per share (in dollars per share)	$ 0.08	$ 0.07	$ 0.15	$ 0.13
Products
Revenues:
Total revenues	$ 90,119	$ 89,254	$ 178,792	$ 178,271
Costs and operating expenses:
Costs and operating expenses	75,834	74,222	150,560	148,928
Services
Revenues:
Total revenues	80,275	104,606	168,499	212,883
Costs and operating expenses:
Costs and operating expenses	$ 75,971	$ 100,150	$ 161,726	$ 204,094

Unaudited Consolidated Stateme5

Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 8,751	$ 7,807	$ 15,803	$ 15,100
Change in fair value of interest rate swap agreements, net of tax	123	(24)	334	69
Other comprehensive income (loss), net of tax	123	(24)	334	69
Comprehensive income	$ 8,874	$ 7,783	$ 16,137	$ 15,169

Unaudited Consolidated Stateme6

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 15,803	$ 15,100
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,723	13,204
Deferred taxes	(888)	(974)
Stock-based compensation	1,676	1,464
Changes in operating assets and liabilities:
Receivables, net	1,131	6,412
Unbilled receivables, net	9,604	13,861
Inventories, net	(34,352)	528
Other current assets and noncurrent assets	4,227	9,725
Accounts payable and deferred compensation	(6,164)	(39,511)
Accrued expenses and other current liabilities	(6,568)	(105)
Long-term lease obligations	(816)	(667)
Net cash (used in) provided by operating activities	(3,624)	19,037
Cash flows from investing activities:
Purchases of property and equipment	(1,880)	(1,252)
Proceeds from the sale of property and equipment	46	400
Net cash used in investing activities	(1,834)	(852)
Cash flows from financing activities:
Borrowings on loan agreement	359,554	181,673
Repayments on loan agreement	(349,534)	(197,142)
Payment of debt financing costs	(1,692)	0
Payments on capital lease obligations	(707)	(627)
Payments of taxes for equity transactions	(641)	(500)
Dividends paid	(1,522)	(1,300)
Net cash provided by (used in) financing activities	5,458	(17,896)
Net (decrease) increase in cash and cash equivalents	0	289
Cash and cash equivalents at beginning of period	624	428
Cash and cash equivalents at end of period	$ 624	$ 717

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 . For further information refer to the consolidated financial statements and footnotes thereto included in our 2017 Form 10-K. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include accruals for contract disallowance reserves, award fee revenues, costs to complete on fixed price contracts, and recoverability of goodwill and intangible assets. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASC 606 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018 , including the aggregate effect of modifications to such contracts through January 1, 2018. We recognized the cumulative effect of initially applying the new standard through an increase to the opening balance of retained earnings of $1.7 million . The primary effects of adopting ASC 606 are: (1) the timing of when we recognize revenue on our contracts with award fees, which previously was based on when we received customer authorization, changed to recognition of the award fees to the extent that it is probable that a significant reversal will not occur as the related performance obligation is satisfied, resulting in revenue being recognized earlier in the contract period, (2) the timing of when we recognize revenues and costs on maintenance, repair and overhaul ("MRO") services for aviation clients and certain fixed price delivery contracts, which changed from the date of delivery to recognition over time as control of the good or service transfers to the customer and progress is made to satisfy the performance obligation, and (3) the pattern in which we recognize revenue on certain fixed price services contracts changed from a straight-line basis over the contract period to measuring progress using input measures, such as costs incurred. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of ASC 606 also resulted in the establishment of “Unbilled receivables, net” as a separate line item on our unaudited consolidated balance sheets and reclassification of balances to this new line item from “Receivables, net”. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on our reported financial condition, results of operations, or cash flows. The cumulative effect of the changes made to our January 1, 2018 unaudited consolidated balance sheet for the adoption of the ASC 606 update was as follows (in thousands): Balance at Adjustment for Adjusted balance at December 31, 2017 ASC 606 January 1, 2018 Assets: Unbilled receivables, net $ 42,577 $ 4,982 $ 47,559 Inventories, net $ 132,591 $ (2,553 ) $ 130,038 Liabilities: Accounts payable $ 66,015 $ (498 ) $ 65,517 Accrued expenses and other current liabilities $ 40,243 $ 655 $ 40,898 Deferred tax liabilities $ 19,423 $ 577 $ 20,000 Stockholders’ equity: Retained earnings $ 267,902 $ 1,695 $ 269,597 In accordance with the new revenue standard requirements for entities adopting ASC 606 using the modified retrospective method, the disclosure of the impact of adoption on our unaudited consolidated balance sheet as of June 30, 2018 and statement of income for the three months and six months ended June 30, 2018 was as follows (in thousands): Balance Sheet As Reported Without Adoption of ASC 606 Assets: Unbilled receivables, net $ 37,955 $ 31,294 Inventories, net $ 164,390 $ 167,958 Other current assets $ 13,551 $ 13,551 Liabilities: Accrued expenses and other current liabilities $ 32,619 $ 32,619 Deferred tax liabilities $ 19,172 $ 18,386 Stockholders’ equity: Retained earnings $ 283,767 $ 281,460 Statement of Income For the three months ended June 30, 2018 For the six months ended June 30, 2018 As Reported Without Adoption of ASC 606 As Reported Without Adoption of ASC 606 Revenues: Products $ 90,119 $ 88,785 $ 178,792 $ 177,470 Services $ 80,275 $ 80,120 $ 168,499 $ 167,986 Costs and operating expenses: Products $ 75,834 $ 74,841 $ 150,560 $ 149,545 Services $ 75,971 $ 75,971 $ 161,726 $ 161,726 Provision for income taxes $ 2,922 $ 2,796 $ 5,288 $ 5,080 Net income $ 8,751 $ 8,381 $ 15,803 $ 15,191 Significant Accounting Policies Update Our significant accounting policies are discussed in "Note 1: Nature of Business and Significant Accounting Policies" of our 2017 Form 10-K. Significant changes to our policies related to revenue recognition as a result of adopting ASC 606 are discussed below: We account for revenue in accordance with ASC 606. The unit of account in ASC 606 is a performance obligation. At the inception of each contract with a customer, we determine our performance obligations within the contract and the contract's transaction price. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and is, therefore, not distinct. For product sales, each product sold to a customer typically represents a distinct performance obligation. Our performance obligations are satisfied over time as work progresses or at a point in time based on transfer of control of products and services to our customers. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and therefore are accounted for as part of the existing contract. Substantially all of our Supply Chain Management Group revenue from the sale of vehicle parts to customers is recognized at the point in time of the transfer of control to the customer. Sales returns and allowances for vehicle parts are not significant. Our Aviation Group revenues result from the sale of aircraft parts and performance of MRO services for private and commercial aircraft owners, other aviation MRO providers, and aviation original equipment manufacturers. Our Aviation Group recognizes revenues at a point in time for the sale of aircraft parts when control is transferred to the customer, which usually occurs when the parts are shipped. Our Aviation Group recognizes revenues for MRO services over time as the services are transferred to the customer. MRO services revenue recognized is measured based on the cost-to-cost input method, as costs incurred reflect the work completed, and therefore the services transferred to date. Sales returns and allowances are not significant Our Federal Services Group revenues result from professional and technical services, which we perform for customers on a contract basis. Revenue is recognized for performance obligations over time as we transfer the services to the customer. The three primary types of contracts used are cost-type, fixed-price and time and materials. Revenues result from work performed on these contracts by our employees and our subcontractors and from costs for materials and other work related costs allowed under our contracts. Revenues on cost-type contracts are recorded as contract allowable costs are incurred and fees are earned. Variable consideration, typically in the form of an award fees, is included in the estimated transaction price, to the extent that it is probable that a significant reversal will not occur, when there is a basis to reasonably estimate the amount of the fee. These estimates are based on historical award experience, anticipated performance and our best judgment based on current facts and circumstances. Revenues on fixed-price contracts are recorded as work is performed over the period. Revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with the transfer of control to the customer. For such contracts, we estimate total costs at the inception of the contract based on our assumptions of the cost elements required to complete the associated tasks of the contract and assess the affects of the risks on our estimates of total costs to complete the contract. Our cost estimates are based on assumptions that include the complexity of the work, our employee labor costs, the cost of materials, and the performance of our subcontractors. These cost estimates are subject to change as we perform under the contract and as a result, the timing of revenues and amount of profit on a contract may change as there are changes in estimated costs to complete the contract. Such adjustments are recognized on a cumulative catch-up basis in the period we identify the changes. Revenues for time and materials contracts are recorded based on the amount for which we have the right to invoice our customers, because the amount directly reflects the value of our work performed for the customer. Time and materials contracts are recorded on the basis of contract allowable labor hours worked multiplied by the contract defined billing rates, plus the direct costs and indirect cost burdens associated with materials and subcontract work used in performance on the contract. Generally, profits on time and materials contracts result from the difference between the cost of services performed and the contract defined billing rates for these services.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregated Revenue Our revenues are derived from contract services performed for United States Department of Defense ("DoD") agencies or federal civilian agencies and from the delivery of products to our clients. Our customers also include various other government agencies and commercial entities. A summary of revenues for our operating groups by customer for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Customer Supply Chain Management Aviation Federal Services Total U.S. Postal Services $ 43,089 $ — $ — $ 43,089 DoD 7,525 1,025 73,637 82,187 Commercial 3,413 34,037 31 37,481 Other Government 236 742 6,659 7,637 $ 54,263 $ 35,804 $ 80,327 $ 170,394 Six months ended June 30, 2018 Customer Supply Chain Management Aviation Federal Services Total U.S. Postal Services $ 87,120 $ — $ — $ 87,120 DoD 15,701 2,240 151,899 169,840 Commercial 6,799 65,572 233 72,604 Other Government 507 742 16,478 17,727 $ 110,127 $ 68,554 $ 168,610 $ 347,291 A summary of revenues for our operating groups by contract type for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 701 $ 41,801 $ 42,502 Fixed-price 54,263 19,869 17,204 91,336 Time and materials — 15,234 21,322 36,556 Total revenues $ 54,263 $ 35,804 $ 80,327 $ 170,394 Six months ended June 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 1,098 $ 92,922 $ 94,020 Fixed-price 110,127 39,373 32,343 181,843 Time and materials — 28,083 43,345 71,428 Total revenues $ 110,127 $ 68,554 $ 168,610 $ 347,291 Contract Balances Billed receivables, unbilled receivables (contract assets), and contract liabilities are the results of revenue recognition, customer billing, and timing of payment receipts. Billed receivables, net, represent unconditional rights to consideration under the terms of the contract and include amounts billed and currently due from our customers. Unbilled receivables represent our right to consideration in exchange for goods or services that we have transferred to the customer prior to us having the right to payment for such goods or services. Contract liabilities are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements, including those with performance obligations to be satisfied over a period of time. We present our unbilled receivables and contract liabilities on a contract-by-contract basis. If a contract liability exists, it is netted against the unbilled receivables balance for that contract. Unbilled receivables decreased from $47.6 million at adoption of ASC 606 on January 1, 2018 to $38.0 million at June 30, 2018 , primarily due to billings in excess of revenue recognized. Contract liabilities, which are included in accrued expenses and other current liabilities in our consolidated balance sheet, decreased from $9.8 million at adoption of ASC 606 on January 1, 2018 to $3.9 million at June 30, 2018 , primarily due to revenue recognized in excess of advance payments received. For the three and six months ended June 30, 2018 , we recognized revenue of $1.2 million and $7.7 million that was previously included in the beginning balance of contract liabilities. Performance Obligations Our performance obligations are satisfied over time as work progresses or at a point in time. Revenues from products and services transferred to customers over time accounted for approximately 57% of our revenues for the three and six months ended June 30, 2018 , primarily related to revenues in our Federal Services Group and for MRO services in our Aviation Group. Revenues from products and services transferred to customers at a point in time accounted for approximately 43% of our revenues for the three and six months ended June 30, 2018 . The majority of our revenue recognized at a point in time is for the sale of vehicle and aircraft parts in our Supply Chain Management and Aviation groups. As of June 30, 2018 , the aggregate amount of transaction prices allocated to unsatisfied or partially unsatisfied performance obligations was $339 million . Performance obligations expected to be satisfied within one year and greater than one year are 96% and 4% , respectively. We have applied the practical expedient for certain parts sales and MRO services to exclude the amount of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which we recognize revenue in proportion to the amount we have the right to invoice for services performed. During the six months ended June 30, 2018 , revenue recognized from performance obligations related to prior periods was not material.

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	Debt We have a loan agreement with a group of banks to provide working capital support, letters of credit and finance acquisitions. The loan agreement, which was amended in January 2018 and expires in January 2023 , has a term loan facility and a revolving loan facility. The revolving loan facility provides for revolving loans and letters of credit. Financing costs associated with the inception of the amended loan agreement of approximately $1.7 million were capitalized and are being amortized over the five -year life of the loan. Our required term loan payments after June 30, 2018 are approximately $5.0 million in 2018, $10.0 million in 2019, $11.9 million in 2020, $14.4 million in 2021, $15 million in 2022, and $41.2 million in 2023. The amount of term loan borrowings outstanding as of June 30, 2018 was $97.5 million . The maximum amount of credit available to us under the loan agreement for revolving loans and letters of credit as of June 30, 2018 was $300 million . Subject to the terms of the loan agreement, we may borrow and repay the revolving loan borrowings as our cash flows require or permit. We pay an unused commitment fee and fees on letters of credit that are issued. We had $86.2 million in revolving loan amounts outstanding and $22 thousand in letters of credit outstanding as of June 30, 2018 . We had approximately $79.3 million in revolving loan amounts outstanding and no letters of credit outstanding as of December 31, 2017 . Under the loan agreement we may elect to increase the maximum availability of the term loan facility, the revolving loan facility, or both facilities, up to an aggregate additional amount of $100 million . Total bank loan borrowed funds outstanding, including term loan borrowings and revolving loan borrowings, were $183.7 million and $173.7 million , as of June 30, 2018 and December 31, 2017 , respectively. These amounts exclude unamortized deferred financing costs of approximately $2.4 million and $1.1 million as of June 30, 2018 and December 31, 2017 . The fair value of outstanding debt as of June 30, 2018 under our bank loan facilities approximates its carrying value using Level 2 inputs based on market data on companies with a corporate rating similar to ours that have recently priced credit facilities. We pay interest on the term loan borrowings and revolving loan borrowings at LIBOR plus a base margin or at a base rate (typically the prime rate) plus a base margin. As of June 30, 2018 , the LIBOR base margin was 1.75% and the base rate base margin was 0.50% . The base margins increase or decrease in increments as our Total Funded Debt/EBITDA Ratio increases or decreases. The loan agreement requires us to have interest rate hedges on a portion of the outstanding term loan for the first three years after the January 2018 amendment date of the agreement. We executed interest rate swap agreements in February 2015 and February 2018. The notional amount of the interest rate swap agreements was $50 million and $85 million as of June 30, 2018 and December 31, 2017 , respectively. After taking into account the impact of interest rate swap agreements, as of June 30, 2018 , interest rates on portions of our outstanding debt ranged from 3.00% to 5.50% , and the effective interest rate on our aggregate outstanding debt was 3.77% . Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $1.7 million and $1.9 million for the three months ended June 30, 2018 and 2017 , respectively. Interest expense incurred on bank loan borrowings and interest rate hedges was approximately $3.2 million and $3.8 million for the six months ended June 30, 2018 and 2017 , respectively. The loan agreement contains collateral requirements to secure our loan agreement obligations, restrictive covenants, a limit on annual dividends, and other affirmative and negative covenants, conditions, and limitations. Restrictive covenants include a maximum Total Funded Debt/EBITDA Ratio, which decreases over time, and a minimum Fixed Charge Coverage Ratio. We were in compliance with required ratios and other terms and conditions at June 30, 2018 .

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share ("EPS") has been computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Basic weighted average common shares outstanding 10,881,106 10,838,435 10,870,887 10,830,595 Effect of dilutive shares 37,821 23,334 36,890 25,037 Diluted weighted average common shares outstanding 10,918,927 10,861,769 10,907,777 10,855,632

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Contingencies In November 2016, a lawsuit, Arrieta et al vs. Prime Turbines LLC et al, was filed in the District Court of Texas in Dallas County, by Edgar Arrieta, and four other plaintiffs against VSE subsidiaries, Kansas Aviation of Independence, L.L.C. and Prime Turbines LLC, and three other unrelated defendants. The other named defendants are Pratt & Whitney of Canada Corporation, Cessna Aircraft Company and Woodward Inc. The plaintiffs allege that on April 1, 2016, a plane crashed resulting in the death of three plaintiffs and serious injuries to six other plaintiffs and that VSE's subsidiaries were negligent in providing maintenance, service and inspection of the airplane engine prior to the crash. Plaintiffs are seeking monetary relief over $1.0 million from the defendants. Trial is scheduled for November 2018. VSE together with its insurance carrier, will aggressively defend the proceedings. While the results of legal proceedings cannot be predicted with certainty and the amount of loss, if any, cannot be reasonably estimated at this time, we believe the likelihood that this lawsuit will have a material adverse effect on our results of operation, financial condition, or cash flows is remote. On or about April 19, 2018 Joseph Waggoner and Clifford Tefteller, on behalf of themselves and all similarly situated individuals, filed a lawsuit against VSE Corporation, XOTECH Solutions, LLC (Tefteller's employer) and White's Paint and Blast (Waggoner's employer) in the United State District Court, Eastern District of Texas, Texarkana Division, alleging overtime compensation entitlement at a rate of one and on-half times their regular rate of pay for all hours worked over 40 hours in a workweek. The plaintiffs are seeking to certify the case as a collective action for similarly situated individuals. The plaintiffs work under a contract between defendants and the United States Army at the Red River Army Depot in Texas. The plaintiffs assert that employees' fifteen minute unpaid work breaks should have been included as "working hours" for the purposes of calculating overtime. While the results of legal proceedings cannot be predicted with certainty and the amount of loss, if any, cannot be reasonably estimated at this time, we believe the likelihood that this lawsuit will have a material adverse effect on our results of operation, financial condition, or cash flows is remote. In a letter dated May 21, 2018, Dyncorp International ("Dyncorp") notified VSE's subsidiary Prime Turbines LLC that the U.S. Air Force ("USAF") had filed a claim against Dyncorp for approximately $27 million in respect of work performed by Dyncorp and Prime Turbines in support of the USAF program for servicing fuel nozzle tips on aircraft engines. Dyncorp's notification also asserts that Dyncorp believes any liability arising from the USAF claim will be borne by Prime Turbines under its agreement dated August 21, 2013, with Dyncorp. As the events leading to the USAF claim against Dyncorp, including the work performed by Prime Turbines as a subcontractor, occurred prior to VSE's acquisition of Prime Turbines in January 2015, VSE notified the sellers of Prime Turbines of the Dyncorp and USAF claims and VSE's intention to seek restitution from the sellers for any damages arising from such claims. While the sellers have not acknowledged any liability in respect of Dyncorp's claim against Prime Turbines, they have assumed the defense of such claim under the acquisition agreement between the sellers and VSE. VSE believes that Dyncorp and Prime Turbines together with its insurance carrier, will appeal the USAF claim against Dyncorp and will otherwise aggressively defend against such claim. While the results of any resulting legal proceedings cannot be predicted with certainty and the amount of loss, if any, cannot be reasonably estimated at this time, we believe the likelihood that this claim will have a material adverse effect on our results of operation, financial condition, or cash flows is remote. Other Matters In addition to the above-referenced legal proceedings and Dyncorp claim, we may have certain claims in the normal course of business, including legal proceedings, against us and against other parties. In our opinion, the resolution of these other claims will not have a material adverse effect on our results of operations, financial position, or cash flows. However, because the results of any legal proceedings cannot be predicted with certainty, the amount of loss, if any, cannot be reasonably estimated. Further, from time-to-time, government agencies investigate whether our operations are being conducted in accordance with applicable contractual and regulatory requirements. Government investigations of us, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed upon us, or could lead to suspension or debarment from future government contracting. Government investigations often take years to complete and many result in no adverse action against us. We believe, based upon current information, that the outcome of any such government disputes and investigations will not have a material adverse effect on our results of operations, financial condition, or cash flows.

Business Segments and Customer

Business Segments and Customer Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Business Segments and Customer Information	Business Segments and Customer Information Business Segments Management of our business operations is conducted under three reportable operating segments: Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS"), the United States Department of Defense ("DoD") and to other commercial customers. Aviation Group – Our Aviation Group provides maintenance, repair and overhaul ("MRO") services, parts supply and distribution, and supply chain solutions for commercial aviation and business and general aviation jet aircraft engines and engine accessories. Federal Services Group – Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, legacy equipment sustainment services, IT and technical and consulting services primarily to DoD and other government agencies. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Our segment information is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Revenues: Supply Chain Management Group $ 54,263 $ 56,404 $ 110,127 $ 112,489 Aviation Group 35,804 32,590 68,554 64,944 Federal Services Group 80,327 104,866 168,610 213,721 Total revenues $ 170,394 $ 193,860 $ 347,291 $ 391,154 Operating income: Supply Chain Management Group $ 8,168 $ 8,950 $ 15,764 $ 17,433 Aviation Group 2,846 2,579 5,107 4,915 Federal Services Group 3,606 3,992 6,084 7,910 Corporate/unallocated expenses (765 ) (516 ) (1,507 ) (1,057 ) Operating income $ 13,855 $ 15,005 $ 25,448 $ 29,201 Customer Information Our revenues by customer is as follows (dollars in thousands): Three months ended June 30, Six months ended June 30, Customer 2018 % 2017 % 2018 % 2017 % U.S. Postal Service $ 43,089 25.3 % $ 45,959 23.7 % $ 87,120 25.1 % $ 92,428 23.6 % U.S. Navy 35,696 20.9 % 52,030 26.8 % 78,281 22.5 % 104,526 26.7 % U.S. Army 41,548 24.4 % 50,399 26.1 % 84,335 24.3 % 104,500 26.7 % U.S. Air Force 4,943 2.9 % 1,822 0.9 % 7,224 2.1 % 2,840 0.7 % Total - DoD 82,187 48.2 % 104,251 53.8 % 169,840 48.9 % 211,866 54.1 % Commercial aviation 34,037 20.0 % 32,265 16.6 % 65,572 18.9 % 64,069 16.4 % Other commercial 3,444 2.0 % 3,308 1.7 % 7,032 2.0 % 6,437 1.7 % Total - Commercial 37,481 22.0 % 35,573 18.3 % 72,604 20.9 % 70,506 18.1 % Other government 7,637 4.5 % 8,077 4.2 % 17,727 5.1 % 16,354 4.2 % Total $ 170,394 100 % $ 193,860 100 % $ 347,291 100 % $ 391,154 100 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Changes in goodwill for the six months ended June 30, 2018 are as follows (in thousands): Supply Chain Management Federal Services Aviation Total Balance as of December 31, 2017 $ 63,190 $ 30,883 $ 104,549 $ 198,622 Balance as of June 30, 2018 $ 63,190 $ 30,883 $ 104,549 $ 198,622 Intangible assets consist of the value of contract and customer-related intangible assets, acquired technologies and trade names. Amortization expense was approximately $4.0 million and $8.0 million for the three and six months ended June 30, 2018 and June 30, 2017 , respectively. Intangible assets, net were comprised of the following (in thousands): Cost Accumulated Amortization Accumulated Impairment Loss Net Intangible Assets June 30, 2018 Contract and customer-related $ 173,094 $ (79,506 ) $ (1,025 ) $ 92,563 Acquired technologies 12,400 (7,969 ) — 4,431 Trade names 16,670 (10,763 ) — 5,907 Total $ 202,164 $ (98,238 ) $ (1,025 ) $ 102,901 December 31, 2017 Contract and customer-related $ 173,094 $ (72,937 ) $ (1,025 ) $ 99,132 Acquired technologies 12,400 (7,406 ) — 4,994 Trade names 16,670 (9,887 ) — 6,783 Total $ 202,164 $ (90,230 ) $ (1,025 ) $ 110,909

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The accounting standard for fair value measurements defines fair value, and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1–Observable inputs–quoted prices in active markets for identical assets and liabilities; Level 2–Observable inputs-other than the quoted prices in active markets for identical assets and liabilities–includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3–Unobservable inputs–includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions. The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value June 30, 2018 Fair Value December 31, 2017 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 409 $ 389 Interest rate swap agreements Other current assets Level 2 $ 689 $ 294 Non-COLI assets held in our deferred supplemental compensation plan consist of equity funds with fair value based on observable inputs such as quoted prices for identical assets in active markets and changes in fair value are recorded as selling, general and administrative expenses. We account for our interest rate swap agreements under the provisions of ASC 815, Derivatives and Hedging , and have determined that our swap agreements qualify as highly effective cash flow hedges. The fair value of the swap agreements was approximately $689 thousand and $294 thousand at June 30, 2018 and December 31, 2017 , respectively. The offset, net of an income tax effect of approximately $174 thousand and $113 thousand , was included in accumulated other comprehensive income in the accompanying balance sheets as of June 30, 2018 and December 31, 2017 , respectively. The amounts paid and received on the swap agreements are recorded in interest expense in the period during which the related floating-rate interest is incurred. We determine the fair value of the swap agreements based on a valuation model using primarily observable market data inputs.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our effective tax rate was 25.0% and 25.1% for the three and six months ended June 30, 2018 , respectively, and 38.2% and 38.1% for the three and six months ended June 30, 2017 , respectively. The decrease in our effective income tax rate was primarily due to the enactment of the Tax Cuts and Jobs Act in December 2017 ("the Tax Act") which reduced the statutory U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. Income tax expense during interim periods is based on our estimated annual effective income tax rate plus any discrete items that are recorded in the period in which they occur. Our tax rate is affected by discrete items that may occur in any given year, but may not be consistent from year to year. While we substantially completed our provisional analysis of the income tax effects of the Tax Act as of December 31, 2017 and recorded a reasonable estimate in 2017 of such effects, actual effects may differ, possibly materially, due to, among other things, further refinement of our calculations, changes in interpretations and assumptions that we have made, additional guidance that may be issued by the U.S. Government, and actions and related accounting policy decisions we may take as a result of the Tax Act. We will complete our analysis of the impact of the Tax Act for 2017 over a one-year measurement period ending December 22, 2018, and any adjustments during this measurement period will be included in net earnings from continuing operations as an adjustment to income tax expense in the reporting period when such adjustments are determined. During the six months ended June 30, 2018 , we did not identify any adjustment to the net one-time charge for the period ending December 31, 2017 related to the Tax Act.

Recently Issued Accounting Pron

Recently Issued Accounting Pronouncements Not Yet Adopted	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides companies with an option to reclassify stranded tax effects resulting from enactment of the Tax Act from accumulated other comprehensive income to retained earnings. The new standard is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The new standard is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The new standard is effective for reporting periods beginning after December 15, 2019 with early adoption permitted for reporting periods beginning after December 15, 2018. We currently are assessing the impact that this standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently evaluating our lease portfolio to assess the impact on our consolidated financial statements and evaluating our accounting policies and internal controls that would be impacted by the new standard. We expect to adopt the requirements of the new standard effective January 1, 2019.

Nature of Business and Basis 17

Nature of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	Our accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to SEC Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018 . For further information refer to the consolidated financial statements and footnotes thereto included in our 2017 Form 10-K.
Use of Estimates	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates affecting the financial statements include accruals for contract disallowance reserves, award fee revenues, costs to complete on fixed price contracts, and recoverability of goodwill and intangible assets.
Recently Adopted Accounting Pronouncements, Significant Accounting Policies Update, and Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606"), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASC 606 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. ASC 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. On January 1, 2018, we adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018 , including the aggregate effect of modifications to such contracts through January 1, 2018. We recognized the cumulative effect of initially applying the new standard through an increase to the opening balance of retained earnings of $1.7 million . The primary effects of adopting ASC 606 are: (1) the timing of when we recognize revenue on our contracts with award fees, which previously was based on when we received customer authorization, changed to recognition of the award fees to the extent that it is probable that a significant reversal will not occur as the related performance obligation is satisfied, resulting in revenue being recognized earlier in the contract period, (2) the timing of when we recognize revenues and costs on maintenance, repair and overhaul ("MRO") services for aviation clients and certain fixed price delivery contracts, which changed from the date of delivery to recognition over time as control of the good or service transfers to the customer and progress is made to satisfy the performance obligation, and (3) the pattern in which we recognize revenue on certain fixed price services contracts changed from a straight-line basis over the contract period to measuring progress using input measures, such as costs incurred. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of ASC 606 also resulted in the establishment of “Unbilled receivables, net” as a separate line item on our unaudited consolidated balance sheets and reclassification of balances to this new line item from “Receivables, net”. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no effect on our reported financial condition, results of operations, or cash flows. The cumulative effect of the changes made to our January 1, 2018 unaudited consolidated balance sheet for the adoption of the ASC 606 update was as follows (in thousands): Balance at Adjustment for Adjusted balance at December 31, 2017 ASC 606 January 1, 2018 Assets: Unbilled receivables, net $ 42,577 $ 4,982 $ 47,559 Inventories, net $ 132,591 $ (2,553 ) $ 130,038 Liabilities: Accounts payable $ 66,015 $ (498 ) $ 65,517 Accrued expenses and other current liabilities $ 40,243 $ 655 $ 40,898 Deferred tax liabilities $ 19,423 $ 577 $ 20,000 Stockholders’ equity: Retained earnings $ 267,902 $ 1,695 $ 269,597 In accordance with the new revenue standard requirements for entities adopting ASC 606 using the modified retrospective method, the disclosure of the impact of adoption on our unaudited consolidated balance sheet as of June 30, 2018 and statement of income for the three months and six months ended June 30, 2018 was as follows (in thousands): Balance Sheet As Reported Without Adoption of ASC 606 Assets: Unbilled receivables, net $ 37,955 $ 31,294 Inventories, net $ 164,390 $ 167,958 Other current assets $ 13,551 $ 13,551 Liabilities: Accrued expenses and other current liabilities $ 32,619 $ 32,619 Deferred tax liabilities $ 19,172 $ 18,386 Stockholders’ equity: Retained earnings $ 283,767 $ 281,460 Statement of Income For the three months ended June 30, 2018 For the six months ended June 30, 2018 As Reported Without Adoption of ASC 606 As Reported Without Adoption of ASC 606 Revenues: Products $ 90,119 $ 88,785 $ 178,792 $ 177,470 Services $ 80,275 $ 80,120 $ 168,499 $ 167,986 Costs and operating expenses: Products $ 75,834 $ 74,841 $ 150,560 $ 149,545 Services $ 75,971 $ 75,971 $ 161,726 $ 161,726 Provision for income taxes $ 2,922 $ 2,796 $ 5,288 $ 5,080 Net income $ 8,751 $ 8,381 $ 15,803 $ 15,191 Significant Accounting Policies Update Our significant accounting policies are discussed in "Note 1: Nature of Business and Significant Accounting Policies" of our 2017 Form 10-K. Significant changes to our policies related to revenue recognition as a result of adopting ASC 606 are discussed below: We account for revenue in accordance with ASC 606. The unit of account in ASC 606 is a performance obligation. At the inception of each contract with a customer, we determine our performance obligations within the contract and the contract's transaction price. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is defined as the unit of account. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and is, therefore, not distinct. For product sales, each product sold to a customer typically represents a distinct performance obligation. Our performance obligations are satisfied over time as work progresses or at a point in time based on transfer of control of products and services to our customers. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and therefore are accounted for as part of the existing contract. Substantially all of our Supply Chain Management Group revenue from the sale of vehicle parts to customers is recognized at the point in time of the transfer of control to the customer. Sales returns and allowances for vehicle parts are not significant. Our Aviation Group revenues result from the sale of aircraft parts and performance of MRO services for private and commercial aircraft owners, other aviation MRO providers, and aviation original equipment manufacturers. Our Aviation Group recognizes revenues at a point in time for the sale of aircraft parts when control is transferred to the customer, which usually occurs when the parts are shipped. Our Aviation Group recognizes revenues for MRO services over time as the services are transferred to the customer. MRO services revenue recognized is measured based on the cost-to-cost input method, as costs incurred reflect the work completed, and therefore the services transferred to date. Sales returns and allowances are not significant Our Federal Services Group revenues result from professional and technical services, which we perform for customers on a contract basis. Revenue is recognized for performance obligations over time as we transfer the services to the customer. The three primary types of contracts used are cost-type, fixed-price and time and materials. Revenues result from work performed on these contracts by our employees and our subcontractors and from costs for materials and other work related costs allowed under our contracts. Revenues on cost-type contracts are recorded as contract allowable costs are incurred and fees are earned. Variable consideration, typically in the form of an award fees, is included in the estimated transaction price, to the extent that it is probable that a significant reversal will not occur, when there is a basis to reasonably estimate the amount of the fee. These estimates are based on historical award experience, anticipated performance and our best judgment based on current facts and circumstances. Revenues on fixed-price contracts are recorded as work is performed over the period. Revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with the transfer of control to the customer. For such contracts, we estimate total costs at the inception of the contract based on our assumptions of the cost elements required to complete the associated tasks of the contract and assess the affects of the risks on our estimates of total costs to complete the contract. Our cost estimates are based on assumptions that include the complexity of the work, our employee labor costs, the cost of materials, and the performance of our subcontractors. These cost estimates are subject to change as we perform under the contract and as a result, the timing of revenues and amount of profit on a contract may change as there are changes in estimated costs to complete the contract. Such adjustments are recognized on a cumulative catch-up basis in the period we identify the changes. Revenues for time and materials contracts are recorded based on the amount for which we have the right to invoice our customers, because the amount directly reflects the value of our work performed for the customer. Time and materials contracts are recorded on the basis of contract allowable labor hours worked multiplied by the contract defined billing rates, plus the direct costs and indirect cost burdens associated with materials and subcontract work used in performance on the contract. Generally, profits on time and materials contracts result from the difference between the cost of services performed and the contract defined billing rates for these services. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides companies with an option to reclassify stranded tax effects resulting from enactment of the Tax Act from accumulated other comprehensive income to retained earnings. The new standard is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The new standard is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. We currently are assessing the impact that this standard will have on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The new standard is effective for reporting periods beginning after December 15, 2019 with early adoption permitted for reporting periods beginning after December 15, 2018. We currently are assessing the impact that this standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The new standard is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. We are currently evaluating our lease portfolio to assess the impact on our consolidated financial statements and evaluating our accounting policies and internal controls that would be impacted by the new standard. We expect to adopt the requirements of the new standard effective January 1, 2019.
Earnings Per Share	Basic earnings per share ("EPS") has been computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Shares issued during the period are weighted for the portion of the period that they were outstanding. Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards.
Business Segments	Business Segments Management of our business operations is conducted under three reportable operating segments: Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS"), the United States Department of Defense ("DoD") and to other commercial customers. Aviation Group – Our Aviation Group provides maintenance, repair and overhaul ("MRO") services, parts supply and distribution, and supply chain solutions for commercial aviation and business and general aviation jet aircraft engines and engine accessories. Federal Services Group – Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, legacy equipment sustainment services, IT and technical and consulting services primarily to DoD and other government agencies. The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.
Fair Value Measurements	The accounting standard for fair value measurements defines fair value, and establishes a market-based framework or hierarchy for measuring fair value. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1–Observable inputs–quoted prices in active markets for identical assets and liabilities; Level 2–Observable inputs-other than the quoted prices in active markets for identical assets and liabilities–includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3–Unobservable inputs–includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.

Nature of Business and Basis 18

Nature of Business and Basis of Presentation (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The cumulative effect of the changes made to our January 1, 2018 unaudited consolidated balance sheet for the adoption of the ASC 606 update was as follows (in thousands): Balance at Adjustment for Adjusted balance at December 31, 2017 ASC 606 January 1, 2018 Assets: Unbilled receivables, net $ 42,577 $ 4,982 $ 47,559 Inventories, net $ 132,591 $ (2,553 ) $ 130,038 Liabilities: Accounts payable $ 66,015 $ (498 ) $ 65,517 Accrued expenses and other current liabilities $ 40,243 $ 655 $ 40,898 Deferred tax liabilities $ 19,423 $ 577 $ 20,000 Stockholders’ equity: Retained earnings $ 267,902 $ 1,695 $ 269,597 In accordance with the new revenue standard requirements for entities adopting ASC 606 using the modified retrospective method, the disclosure of the impact of adoption on our unaudited consolidated balance sheet as of June 30, 2018 and statement of income for the three months and six months ended June 30, 2018 was as follows (in thousands): Balance Sheet As Reported Without Adoption of ASC 606 Assets: Unbilled receivables, net $ 37,955 $ 31,294 Inventories, net $ 164,390 $ 167,958 Other current assets $ 13,551 $ 13,551 Liabilities: Accrued expenses and other current liabilities $ 32,619 $ 32,619 Deferred tax liabilities $ 19,172 $ 18,386 Stockholders’ equity: Retained earnings $ 283,767 $ 281,460 Statement of Income For the three months ended June 30, 2018 For the six months ended June 30, 2018 As Reported Without Adoption of ASC 606 As Reported Without Adoption of ASC 606 Revenues: Products $ 90,119 $ 88,785 $ 178,792 $ 177,470 Services $ 80,275 $ 80,120 $ 168,499 $ 167,986 Costs and operating expenses: Products $ 75,834 $ 74,841 $ 150,560 $ 149,545 Services $ 75,971 $ 75,971 $ 161,726 $ 161,726 Provision for income taxes $ 2,922 $ 2,796 $ 5,288 $ 5,080 Net income $ 8,751 $ 8,381 $ 15,803 $ 15,191

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	A summary of revenues for our operating groups by customer for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Customer Supply Chain Management Aviation Federal Services Total U.S. Postal Services $ 43,089 $ — $ — $ 43,089 DoD 7,525 1,025 73,637 82,187 Commercial 3,413 34,037 31 37,481 Other Government 236 742 6,659 7,637 $ 54,263 $ 35,804 $ 80,327 $ 170,394 Six months ended June 30, 2018 Customer Supply Chain Management Aviation Federal Services Total U.S. Postal Services $ 87,120 $ — $ — $ 87,120 DoD 15,701 2,240 151,899 169,840 Commercial 6,799 65,572 233 72,604 Other Government 507 742 16,478 17,727 $ 110,127 $ 68,554 $ 168,610 $ 347,291 A summary of revenues for our operating groups by contract type for the three and six months ended June 30, 2018 is as follows (in thousands): Three months ended June 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 701 $ 41,801 $ 42,502 Fixed-price 54,263 19,869 17,204 91,336 Time and materials — 15,234 21,322 36,556 Total revenues $ 54,263 $ 35,804 $ 80,327 $ 170,394 Six months ended June 30, 2018 Contract Type Supply Chain Management Aviation Federal Services Total Cost-type $ — $ 1,098 $ 92,922 $ 94,020 Fixed-price 110,127 39,373 32,343 181,843 Time and materials — 28,083 43,345 71,428 Total revenues $ 110,127 $ 68,554 $ 168,610 $ 347,291

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Our calculation of diluted earnings per common share includes the dilutive effects for an assumed vesting of restricted stock awards. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Basic weighted average common shares outstanding 10,881,106 10,838,435 10,870,887 10,830,595 Effect of dilutive shares 37,821 23,334 36,890 25,037 Diluted weighted average common shares outstanding 10,918,927 10,861,769 10,907,777 10,855,632

Business Segments and Custome21

Business Segments and Customer Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Our segment information is as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Revenues: Supply Chain Management Group $ 54,263 $ 56,404 $ 110,127 $ 112,489 Aviation Group 35,804 32,590 68,554 64,944 Federal Services Group 80,327 104,866 168,610 213,721 Total revenues $ 170,394 $ 193,860 $ 347,291 $ 391,154 Operating income: Supply Chain Management Group $ 8,168 $ 8,950 $ 15,764 $ 17,433 Aviation Group 2,846 2,579 5,107 4,915 Federal Services Group 3,606 3,992 6,084 7,910 Corporate/unallocated expenses (765 ) (516 ) (1,507 ) (1,057 ) Operating income $ 13,855 $ 15,005 $ 25,448 $ 29,201
Revenue by Customer	Our revenues by customer is as follows (dollars in thousands): Three months ended June 30, Six months ended June 30, Customer 2018 % 2017 % 2018 % 2017 % U.S. Postal Service $ 43,089 25.3 % $ 45,959 23.7 % $ 87,120 25.1 % $ 92,428 23.6 % U.S. Navy 35,696 20.9 % 52,030 26.8 % 78,281 22.5 % 104,526 26.7 % U.S. Army 41,548 24.4 % 50,399 26.1 % 84,335 24.3 % 104,500 26.7 % U.S. Air Force 4,943 2.9 % 1,822 0.9 % 7,224 2.1 % 2,840 0.7 % Total - DoD 82,187 48.2 % 104,251 53.8 % 169,840 48.9 % 211,866 54.1 % Commercial aviation 34,037 20.0 % 32,265 16.6 % 65,572 18.9 % 64,069 16.4 % Other commercial 3,444 2.0 % 3,308 1.7 % 7,032 2.0 % 6,437 1.7 % Total - Commercial 37,481 22.0 % 35,573 18.3 % 72,604 20.9 % 70,506 18.1 % Other government 7,637 4.5 % 8,077 4.2 % 17,727 5.1 % 16,354 4.2 % Total $ 170,394 100 % $ 193,860 100 % $ 347,291 100 % $ 391,154 100 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill by Operating Segment	Changes in goodwill for the six months ended June 30, 2018 are as follows (in thousands): Supply Chain Management Federal Services Aviation Total Balance as of December 31, 2017 $ 63,190 $ 30,883 $ 104,549 $ 198,622 Balance as of June 30, 2018 $ 63,190 $ 30,883 $ 104,549 $ 198,622
Schedule of Intangible Assets	Intangible assets, net were comprised of the following (in thousands): Cost Accumulated Amortization Accumulated Impairment Loss Net Intangible Assets June 30, 2018 Contract and customer-related $ 173,094 $ (79,506 ) $ (1,025 ) $ 92,563 Acquired technologies 12,400 (7,969 ) — 4,431 Trade names 16,670 (10,763 ) — 5,907 Total $ 202,164 $ (98,238 ) $ (1,025 ) $ 102,901 December 31, 2017 Contract and customer-related $ 173,094 $ (72,937 ) $ (1,025 ) $ 99,132 Acquired technologies 12,400 (7,406 ) — 4,994 Trade names 16,670 (9,887 ) — 6,783 Total $ 202,164 $ (90,230 ) $ (1,025 ) $ 110,909

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Assets and Liabilities	The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 and the level they fall within the fair value hierarchy (in thousands): Amounts Recorded at Fair Value Financial Statement Classification Fair Value Hierarchy Fair Value June 30, 2018 Fair Value December 31, 2017 Non-COLI assets held in Deferred Supplemental Compensation Plan Other assets Level 1 $ 409 $ 389 Interest rate swap agreements Other current assets Level 2 $ 689 $ 294

Nature of Business and Basis 24

Nature of Business and Basis of Presentation - Narrative (Details) $ in Millions	Jan. 01, 2018USD ($)	Jun. 30, 2018contract
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenue from contracts with customer, number of contracts | contract		3
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Cumulative effect on retained earnings | $	$ 1.7

Nature of Business and Basis 25

Nature of Business and Basis of Presentation - ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables, net	$ 37,955		$ 37,955		$ 47,559	$ 42,577
Inventories, net	164,390		164,390		130,038	132,591
Other current assets	13,551		13,551			16,988
Accounts payable	57,648		57,648		65,517	66,015
Accrued expenses and other current liabilities	32,619		32,619		40,898	40,243
Deferred tax liabilities	19,172		19,172		20,000	19,423
Retained earnings	283,767		283,767		269,597	267,902
Revenues	170,394	$ 193,860	347,291	$ 391,154
Provision for income taxes	2,922	4,822	5,288	9,290
Net income	8,751	7,807	15,803	15,100
Products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	90,119	89,254	178,792	178,271
Costs and expenses	75,834	74,222	150,560	148,928
Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	80,275	104,606	168,499	212,883
Costs and expenses	75,971	$ 100,150	161,726	$ 204,094
As Adjusted
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables, net	31,294		31,294			42,577
Inventories, net	167,958		167,958			132,591
Other current assets	13,551		13,551
Accounts payable						66,015
Accrued expenses and other current liabilities	32,619		32,619			40,243
Deferred tax liabilities	18,386		18,386			19,423
Retained earnings	281,460		281,460			$ 267,902
Accounting Standards Update 2014-09 | Effect of ASC 606 Increase/(Decrease)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Unbilled receivables, net					4,982
Inventories, net					(2,553)
Accounts payable					(498)
Accrued expenses and other current liabilities					655
Deferred tax liabilities					577
Retained earnings					$ 1,695
Provision for income taxes	2,796		5,080
Net income	8,381		15,191
Accounting Standards Update 2014-09 | Effect of ASC 606 Increase/(Decrease) | Products
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	88,785		177,470
Costs and expenses	74,841		149,545
Accounting Standards Update 2014-09 | Effect of ASC 606 Increase/(Decrease) | Services
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Revenues	80,120		167,986
Costs and expenses	$ 75,971		$ 161,726

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 170,394	$ 193,860	$ 347,291	$ 391,154
Cost-type
Disaggregation of Revenue [Line Items]
Revenues	42,502		94,020
Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	91,336		181,843
Time and materials
Disaggregation of Revenue [Line Items]
Revenues	36,556		71,428
U.S. Postal Service
Disaggregation of Revenue [Line Items]
Revenues	43,089	45,959	87,120	92,428
DoD
Disaggregation of Revenue [Line Items]
Revenues	82,187		169,840
Commercial
Disaggregation of Revenue [Line Items]
Revenues	37,481	35,573	72,604	70,506
Other government
Disaggregation of Revenue [Line Items]
Revenues	7,637	$ 8,077	17,727	$ 16,354
Supply Chain Management
Disaggregation of Revenue [Line Items]
Revenues	54,263		110,127
Supply Chain Management | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	0		0
Supply Chain Management | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	54,263		110,127
Supply Chain Management | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	0		0
Supply Chain Management | U.S. Postal Service
Disaggregation of Revenue [Line Items]
Revenues	43,089		87,120
Supply Chain Management | DoD
Disaggregation of Revenue [Line Items]
Revenues	7,525		15,701
Supply Chain Management | Commercial
Disaggregation of Revenue [Line Items]
Revenues	3,413		6,799
Supply Chain Management | Other government
Disaggregation of Revenue [Line Items]
Revenues	236		507
Aviation
Disaggregation of Revenue [Line Items]
Revenues	35,804		68,554
Aviation | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	701		1,098
Aviation | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	19,869		39,373
Aviation | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	15,234		28,083
Aviation | U.S. Postal Service
Disaggregation of Revenue [Line Items]
Revenues	0		0
Aviation | DoD
Disaggregation of Revenue [Line Items]
Revenues	1,025		2,240
Aviation | Commercial
Disaggregation of Revenue [Line Items]
Revenues	34,037		65,572
Aviation | Other government
Disaggregation of Revenue [Line Items]
Revenues	742		742
Federal Services Group
Disaggregation of Revenue [Line Items]
Revenues	80,327		168,610
Federal Services Group | Cost-type
Disaggregation of Revenue [Line Items]
Revenues	41,801		92,922
Federal Services Group | Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	17,204		32,343
Federal Services Group | Time and materials
Disaggregation of Revenue [Line Items]
Revenues	21,322		43,345
Federal Services Group | U.S. Postal Service
Disaggregation of Revenue [Line Items]
Revenues	0		0
Federal Services Group | DoD
Disaggregation of Revenue [Line Items]
Revenues	73,637		151,899
Federal Services Group | Commercial
Disaggregation of Revenue [Line Items]
Revenues	31		233
Federal Services Group | Other government
Disaggregation of Revenue [Line Items]
Revenues	$ 6,659		$ 16,478

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unbilled receivables, net	$ 37,955		$ 37,955		$ 47,559	$ 42,577
Contract with customer, liability	3,900		3,900		$ 9,800
Contract with Customer, Liability, Revenue Recognized	$ 1,200		$ 7,700
Concentration risk, percentage	100.00%	100.00%	100.00%	100.00%
Revenue, remaining performance obligation	$ 339,000		$ 339,000
Sales Revenue, Net | Product Concentration Risk | Transferred over Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk, percentage	57.00%		57.00%
Sales Revenue, Net | Product Concentration Risk | Transferred at Point in Time
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk, percentage	43.00%		43.00%

Revenue - Performance Obligatio

Revenue - Performance Obligations (Details)	Jun. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	96.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	4.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period

Debt (Details)

Debt (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Deferred financing costs		$ 2,400,000		$ 2,400,000		$ 1,100,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Debt outstanding		183,700,000		$ 183,700,000		173,700,000
LIBOR
Long-term Debt, Fiscal Year Maturity [Abstract]
Base margin				1.75%
Base Rate
Long-term Debt, Fiscal Year Maturity [Abstract]
Base margin				0.50%
Amended and Restated
Debt Instrument [Line Items]
Deferred financing costs		$ 1,700,000		$ 1,700,000
Amortization period of debt issuance costs	5 years
Long-term Debt, Fiscal Year Maturity [Abstract]
Increase in maximum availability				$ 100,000,000
Duration of interest rate cash flow hedge				3 years
Effective interest rate		3.77%		3.77%
Interest expense, net		$ 1,700,000	$ 1,900,000	$ 3,200,000	$ 3,800,000
Amended and Restated | Minimum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate range		3.00%		3.00%
Amended and Restated | Maximum
Long-term Debt, Fiscal Year Maturity [Abstract]
Interest rate range		5.50%		5.50%
Amended and Restated | Swap
Long-term Debt, Fiscal Year Maturity [Abstract]
Derivative notional amount		$ 50,000,000		$ 50,000,000		85,000,000
Term Loan Facility
Long-term Debt, Fiscal Year Maturity [Abstract]
Term loan payments 2018		5,000,000		5,000,000
Term loan payments 2019		10,000,000		10,000,000
Term loan payments 2020		11,900,000		11,900,000
Term loan payments 2021		14,400,000		14,400,000
Term loan payments 2022		15,000,000		15,000,000
Term loan payments 2023		41,200,000		41,200,000
Borrowings outstanding		97,500,000		97,500,000
Revolving Loan Facility
Long-term Debt, Fiscal Year Maturity [Abstract]
Revolving loans maximum borrowing capacity		300,000,000		300,000,000
Revolving loans amount outstanding		86,200,000		86,200,000		79,300,000
Letters of credit outstanding		$ 22,000		$ 22,000		$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Basic weighted average common shares outstanding (in shares)	10,881,106	10,838,435	10,870,887	10,830,595
Effect of dilutive shares (in shares)	37,821	23,334	36,890	25,037
Diluted weighted average common shares outstanding (in shares)	10,918,927	10,861,769	10,907,777	10,855,632

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	May 21, 2018USD ($)	Apr. 01, 2016plaintiff	Nov. 30, 2016USD ($)defendantplaintiff
Aviation Litigation
Loss Contingencies [Line Items]
Number of plaintiffs			5
Number of defendants | defendant			6
Number of plaintiff deaths		3
Number of plaintiffs injured		6
Loss contingency, damages sought | $			$ 1
Dyncorp International
Loss Contingencies [Line Items]
Loss contingency, damages sought | $	$ 27

Business Segments and Custome32

Business Segments and Customer Information - Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment Reporting [Abstract]
Number of reportable operating segments | segment			3
Segment Reporting Information [Line Items]
Revenues	$ 170,394	$ 193,860	$ 347,291	$ 391,154
Operating income	13,855	15,005	25,448	29,201
Supply Chain Management Group
Segment Reporting Information [Line Items]
Revenues	54,263		110,127
Aviation Group
Segment Reporting Information [Line Items]
Revenues	35,804		68,554
Federal Services Group
Segment Reporting Information [Line Items]
Revenues	80,327		168,610
Operating Segments | Supply Chain Management Group
Segment Reporting Information [Line Items]
Revenues	54,263	56,404	110,127	112,489
Operating income	8,168	8,950	15,764	17,433
Operating Segments | Aviation Group
Segment Reporting Information [Line Items]
Revenues	35,804	32,590	68,554	64,944
Operating income	2,846	2,579	5,107	4,915
Operating Segments | Federal Services Group
Segment Reporting Information [Line Items]
Revenues	80,327	104,866	168,610	213,721
Operating income	3,606	3,992	6,084	7,910
Corporate/unallocated expenses
Segment Reporting Information [Line Items]
Operating income	$ (765)	$ (516)	$ (1,507)	$ (1,057)

Business Segments and Custome33

Business Segments and Customer Information - Major Customers (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Major Customer [Line Items]
Revenues	$ 170,394	$ 193,860	$ 347,291	$ 391,154
Percentage of revenue by customer	100.00%	100.00%	100.00%	100.00%
U.S. Postal Service
Revenue, Major Customer [Line Items]
Revenues	$ 43,089	$ 45,959	$ 87,120	$ 92,428
Percentage of revenue by customer	25.30%	23.70%	25.10%	23.60%
U.S. Navy
Revenue, Major Customer [Line Items]
Revenues	$ 35,696	$ 52,030	$ 78,281	$ 104,526
Percentage of revenue by customer	20.90%	26.80%	22.50%	26.70%
U.S. Army
Revenue, Major Customer [Line Items]
Revenues	$ 41,548	$ 50,399	$ 84,335	$ 104,500
Percentage of revenue by customer	24.40%	26.10%	24.30%	26.70%
U.S. Air Force
Revenue, Major Customer [Line Items]
Revenues	$ 4,943	$ 1,822	$ 7,224	$ 2,840
Percentage of revenue by customer	2.90%	0.90%	2.10%	0.70%
Total - DoD
Revenue, Major Customer [Line Items]
Revenues	$ 82,187	$ 104,251	$ 169,840	$ 211,866
Percentage of revenue by customer	48.20%	53.80%	48.90%	54.10%
Commercial aviation
Revenue, Major Customer [Line Items]
Revenues	$ 34,037	$ 32,265	$ 65,572	$ 64,069
Percentage of revenue by customer	20.00%	16.60%	18.90%	16.40%
Other commercial
Revenue, Major Customer [Line Items]
Revenues	$ 3,444	$ 3,308	$ 7,032	$ 6,437
Percentage of revenue by customer	2.00%	1.70%	2.00%	1.70%
Total - Commercial
Revenue, Major Customer [Line Items]
Revenues	$ 37,481	$ 35,573	$ 72,604	$ 70,506
Percentage of revenue by customer	22.00%	18.30%	20.90%	18.10%
Other government
Revenue, Major Customer [Line Items]
Revenues	$ 7,637	$ 8,077	$ 17,727	$ 16,354
Percentage of revenue by customer	4.50%	4.20%	5.10%	4.20%

Goodwill and Intangible Asset34

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill [Roll Forward]
Balance as of beginning of period			$ 198,622
Adjustments from the Ultra Seating acquisition
Balance as of end of period	$ 198,622		198,622
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	4,004	$ 4,004	8,008	$ 8,008
Finite-Lived Intangible Assets, Net [Abstract]
Cost	202,164		202,164		$ 202,164
Accumulated Amortization	(98,238)		(98,238)		(90,230)
Accumulated Impairment Loss	(1,025)		(1,025)		(1,025)
Net Intangible Assets	102,901		102,901		110,909
Supply Chain Management
Goodwill [Roll Forward]
Balance as of beginning of period			63,190
Adjustments from the Ultra Seating acquisition
Balance as of end of period	63,190		63,190
Federal Services
Goodwill [Roll Forward]
Balance as of beginning of period			30,883
Adjustments from the Ultra Seating acquisition
Balance as of end of period	30,883		30,883
Aviation
Goodwill [Roll Forward]
Balance as of beginning of period			104,549
Adjustments from the Ultra Seating acquisition
Balance as of end of period	104,549		104,549
Contract and customer-related
Finite-Lived Intangible Assets, Net [Abstract]
Cost	173,094		173,094		173,094
Accumulated Amortization	(79,506)		(79,506)		(72,937)
Accumulated Impairment Loss	(1,025)		(1,025)		(1,025)
Net Intangible Assets	92,563		92,563		99,132
Acquired technologies
Finite-Lived Intangible Assets, Net [Abstract]
Cost	12,400		12,400		12,400
Accumulated Amortization	(7,969)		(7,969)		(7,406)
Accumulated Impairment Loss	0		0		0
Net Intangible Assets	4,431		4,431		4,994
Trade names
Finite-Lived Intangible Assets, Net [Abstract]
Cost	16,670		16,670		16,670
Accumulated Amortization	(10,763)		(10,763)		(9,887)
Accumulated Impairment Loss	0		0		0
Net Intangible Assets	$ 5,907		$ 5,907		$ 6,783

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Level 1 | Other assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Non-COLI assets held in Deferred Supplemental Compensation Plan	$ 409	$ 389
Level 2 | Other current assets
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements	$ 689	$ 294

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Income tax expense benefit on interest rate swap	$ 174	$ 113
Other current assets | Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap agreements	$ 689	$ 294

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate	25.00%	38.20%	25.10%	38.10%