Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2017 | Oct. 26, 2017 | |
Class Of Stock [Line Items] | ||
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. | |
Entity Central Index Key | 1,364,885 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Amendment Flag | false | |
Trading Symbol | SPR | |
Class A [Member] | ||
Class Of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 115,624,845 | |
Class B [Member] | ||
Class Of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Revenues [Abstract] | ||||
Net revenues | $ 1,748.2 | $ 1,711.4 | $ 5,268.4 | $ 5,222.9 |
Operating costs and expenses | ||||
Cost of sales | 1,478.5 | 1,439.4 | 4,738.3 | 4,470.4 |
Selling, general and administrative | 48.8 | 52.2 | 146.8 | 172.4 |
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | 19.9 | 0 |
Research and development | 9.5 | 5.4 | 21.2 | 15.9 |
Total operating costs and expenses | 1,536.8 | 1,497 | 4,926.2 | 4,658.7 |
Operating income | 211.4 | 214.4 | 342.2 | 564.2 |
Interest expense and financing fee amortization | (10.4) | (12.2) | (30.1) | (47.5) |
Other income (expense), net | (1.9) | 0.3 | (4.6) | 8.7 |
Income before income taxes and equity in net income of affiliate | 202.9 | 201.9 | 316.7 | 508 |
Income tax provision | (55.9) | (57.3) | (84.9) | (147.8) |
Income before equity in net income of affiliate | 147 | 144.6 | 231.8 | 360.2 |
Equity in net income of affiliate | 0.2 | 0.5 | 0.3 | 1.3 |
Net income | $ 147.2 | $ 145.1 | $ 232.1 | $ 361.5 |
Earnings per share | ||||
Basic (in dollars per share) | $ 1.27 | $ 1.16 | $ 1.97 | $ 2.82 |
Diluted (in dollars per share) | 1.26 | 1.16 | 1.95 | 2.80 |
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0 | $ 0.30 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 147.2 | $ 145.1 | $ 232.1 | $ 361.5 |
Changes in other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 13.1 | (7.8) | 31.2 | (38.8) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.6) | 0.4 | (1.5) | 1.4 |
Unrealized foreign exchange loss on intercompany loan, net of tax effect of ($0.4) and $0.8 for three months ended, respectively, and ($0.6) and $1.1 for the six months ended, respectively | 1.3 | (1.1) | 3.9 | (5.5) |
Total other comprehensive income (loss) | 13.8 | (8.5) | 33.6 | (42.9) |
Total comprehensive income | $ 161 | $ 136.6 | $ 265.7 | $ 318.6 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0.2 | $ (0.2) | $ 1.2 | $ (0.6) |
Unrealized exchange (loss) on intercompany loan, tax | $ (0.4) | $ 0.3 | $ (1) | $ 1.4 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 726.6 | $ 697.7 |
Restricted Cash and Cash Equivalents | 3.2 | 0 |
Accounts receivable, net | 851.7 | 660.5 |
Inventory, net | 1,363.2 | 1,515.3 |
Other current assets | 67.3 | 36.9 |
Total current assets | 3,012 | 2,910.4 |
Property, plant and equipment, net | 2,018.7 | 1,991.6 |
Pension assets | 309.2 | 282.3 |
Other assets | 197.3 | 220.9 |
Total assets | 5,537.2 | 5,405.2 |
Current liabilities | ||
Accounts payable | 762.1 | 579.7 |
Accrued expenses | 258.3 | 216.2 |
Profit sharing | 65.7 | 101.4 |
Current portion of long-term debt | 27.9 | 26.7 |
Advance payments, short-term | 131 | 199.3 |
Deferred revenue and other deferred credits, short-term | 68.3 | 312.1 |
Deferred grant income liability - current | 21 | 14.4 |
Other current liabilities | 601.7 | 94.4 |
Total current liabilities | 1,936 | 1,544.2 |
Liabilities Noncurrent | ||
Long-term debt | 1,060.9 | 1,060 |
Advance payments, long-term | 255.6 | 342 |
Pension/OPEB obligation | 40.3 | 43.9 |
Deferred grant income liability - non-current | 44.9 | 63.4 |
Deferred revenue and other deferred credits | 166.5 | 146.8 |
Other liabilities | 273.6 | 276.1 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued | 0 | 0 |
Additional Paid in Capital [Abstract] | ||
Additional paid-in capital | 1,081 | 1,078.9 |
AccumulatedOtherComprehensiveIncomeLossNetOfTaxAbstract | ||
Accumulated other comprehensive loss | (153.3) | (186.9) |
Retained Earnings Accumulated Deficit [Abstract] | ||
Retained earnings | 2,310.9 | 2,113.9 |
Treasury Stock, Value | (1,480.9) | (1,078.8) |
Total stockholders’ equity | 1,758.9 | 1,928.3 |
Noncontrolling interest | 0.5 | 0.5 |
Total equity | 1,759.4 | 1,928.8 |
Total liabilities and equity | 5,537.2 | 5,405.2 |
Class A [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock | $ 1.2 | $ 1.2 |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 28, 2017 | Dec. 31, 2016 |
Shareholders' equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 210,000,000 | |
Treasury Stock, Shares | 30,273,833 | 23,936,092 |
Class A [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 115,624,845 | 121,642,556 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2017 | Sep. 29, 2016 | |
Operating activities | ||
Net income | $ 232.1 | $ 361.5 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense | 159 | 149.1 |
Amortization expense | 0.2 | 0.2 |
Amortization of deferred financing fees | 2.5 | 18.5 |
Accretion of customer supply agreement | 1.5 | 3.5 |
Share-based Compensation | 15.9 | 35.7 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | 0.1 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | (1.1) | 0 |
(Gain) loss from foreign currency transactions | (5.9) | 15.9 |
Gain (Loss) on Disposition of Property Plant Equipment | 7.9 | (0.5) |
Deferred taxes | 29 | 34.7 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (32.5) | (5) |
Grant liability amortization | (13.9) | (8.6) |
Equity in net income of affiliate | (0.3) | (1.3) |
Changes in assets and liabilities | ||
Accounts receivable | (177.8) | (220.8) |
Inventory, net | 433.9 | 257.3 |
Accounts payable and accrued liabilities | 212.8 | (18.6) |
Profit sharing/deferred compensation | (35.9) | 2.8 |
Advance payments | (154.7) | (101.8) |
Income taxes receivable/payable | (36) | 1.3 |
Deferred revenue and other deferred credits | (222.8) | 26 |
Other | 208.5 | 24.4 |
Net cash provided by operating activities | 624.6 | 574.4 |
Investing activities | ||
Purchase of property, plant and equipment | (138.7) | (156.8) |
Proceeds from sale of assets | 0.3 | 0.6 |
Net cash used in investing activities | (138.4) | (156.2) |
Financing activities | ||
Proceeds from Issuance of Senior Long-term Debt | 0 | 299.8 |
Principal payments of debt | (2.3) | (16.7) |
Repayments of Debt | (12.5) | 0 |
Repayments of Senior Debt | 0 | (300) |
Payments Related to Tax Withholding for Share-based Compensation | (13.8) | (15.2) |
Excess tax benefit of share-based payment arrangements | 0 | (0.1) |
Debt issuance and financing costs | (0.9) | (17.2) |
Proceeds from Other Debt | 7.6 | 0 |
Payments for Repurchase of Common Stock | (402.1) | (649.6) |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (3.2) | 0 |
Payments of Dividends | (35.7) | 0 |
Net cash used in financing activities | (462.9) | (699) |
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (6.1) |
Net decrease in cash and cash equivalents for the period | 28.9 | (286.9) |
Cash and cash equivalents, beginning of period | 697.7 | 957.3 |
Cash and cash equivalents, end of period | $ 726.6 | $ 670.4 |
Organization and Basis of Inter
Organization and Basis of Interim Presentation | 9 Months Ended |
Sep. 28, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Interim Presentation | Organization and Basis of Interim Presentation Spirit AeroSystems Holdings, Inc. (“Holdings” or the “Company”) provides manufacturing and design expertise in a wide range of fuselage, propulsion, and wing products and services for aircraft original equipment manufacturers (“OEM”) and operators through its subsidiary, Spirit AeroSystems, Inc. (“Spirit”). The Company's headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Tulsa and McAlester, Oklahoma; Prestwick, Scotland; Wichita, Kansas; Kinston, North Carolina; Subang, Malaysia; and Saint-Nazaire, France. The accompanying unaudited interim condensed consolidated financial statements include the Company’s financial statements and the financial statements of its majority-owned or controlled subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. The Company’s fiscal quarters are 13 weeks in length. Because the Company’s fiscal year ends on December 31, the number of days in the Company’s first and fourth quarters varies slightly from year to year. All intercompany balances and transactions have been eliminated in consolidation. As part of the monthly consolidation process, the Company’s international entities that have functional currencies other than the U.S. dollar are translated to U.S. dollars using the end-of-month translation rate for balance sheet accounts and average period currency translation rates for revenue and income accounts. The U.K. and Malaysian subsidiaries use the British pound as their functional currency; and the Singapore subsidiary uses the Singapore dollar as its functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments and elimination of intercompany balances and transactions) considered necessary to fairly present the results of operations for the interim period. The results of operations for the nine months ended September 28, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Certain reclassifications have been made to the prior year financial statements and notes to conform to the 2017 presentation. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events through the date the financial statements were issued. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2016 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 10, 2017 (the “2016 Form 10-K”). |
Changes in Estimates
Changes in Estimates | 9 Months Ended |
Sep. 28, 2017 | |
Changes in Estimates [Abstract] | |
Change In Estimate [Text Block] | 3. Changes in Estimates The Company has a Company-wide quarterly Estimate at Completion (“EAC”) process in which management assesses the progress and performance of the Company’s contracts. This process requires management to review each program’s progress towards completion by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated contract revenues and estimated contract costs over the current contract block, and any outstanding contract matters. Risks and opportunities include management’s judgment about the cost associated with a program’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product) and any other contract requirements. Due to the span of years it may take to complete a contract block and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs at completion is complicated and subject to many variables and, accordingly, is subject to change. When adjustments in estimated total contract block revenue or estimated total cost are required, any changes from prior estimates for delivered units are recognized in the current period as a cumulative catch-up adjustment for the inception-to-date effect of such changes. Cumulative catch-up adjustments are driven by several factors including improved production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work, and contract modifications. When the total cost estimate exceeds the total revenue estimate on a contract block, a provision for the entire loss on the contract block is recorded in the period in which the loss is determined. Changes in estimates are summarized below: For the Three Months Ended For the Nine Months Ended Changes in Estimates September 28, 2017 September 29, 2016 September 28, 2017 September 29, 2016 (Unfavorable) Favorable Cumulative Catch-up Adjustment by Segment Fuselage Systems $ (2.4 ) $ (1.9 ) $ 5.3 $ 15.1 Propulsion Systems 2.4 (1.6 ) 4.3 (1.8 ) Wing Systems (2.8 ) (0.8 ) 19.1 18.7 Total (Unfavorable) Favorable Cumulative Catch-up Adjustment $ (2.8 ) $ (4.3 ) $ 28.7 $ 32.0 (Forward Loss) and Changes in Estimates on Loss Programs by Segment Fuselage Systems $ (0.9 ) $ (1.6 ) $ (238.5 ) $ (133.0 ) Propulsion Systems 1.3 (0.5 ) (46.7 ) 6.0 Wing Systems (2.4 ) 0.9 (74.4 ) 5.1 Total Forward Loss $ (2.0 ) $ (1.2 ) $ (359.6 ) $ (121.9 ) Total Change in Estimate $ (4.8 ) $ (5.5 ) $ (330.9 ) $ (89.9 ) EPS Impact (diluted per share based upon statutory rates) $ (0.03 ) $ (0.03 ) $ (1.75 ) $ (0.44 ) Boeing Memorandum of Understanding and Definitive Documentation On August 1, 2017, Boeing and the Company through its subsidiary, Spirit, entered into a Memorandum of Understanding (the “MOU”), which required Boeing and Spirit to negotiate and execute definitive documentation implementing the agreements set forth in the MOU by September 29, 2017. On September 22, 2017, Boeing and Spirit completed their negotiation of such definitive documentation and entered into Amendment No. 30 to the long-term supply agreement covering products for Boeing’s B737, B747, B767, and B777 commercial aircraft programs (“Sustaining Amendment #30”). Sustaining Amendment #30 generally establishes pricing terms for the B737, B747, B767, and B777 models (excluding the B777x) through 2022 (with certain limited exceptions). Sustaining Amendment #30 further provides that Boeing and Spirit will negotiate follow-on pricing for periods beyond January 1, 2023 beginning 24 months prior to January 1, 2023. If Boeing and Spirit are unable to reach an agreement with respect to follow-on pricing prior to January 1, 2023, Sustaining Amendment #30 provides a mechanism to establish interim pricing that takes into account escalation and reduces certain rate-based discounts. In addition, Sustaining Amendment #30 provides that the parties will make certain investments for rate increases on the B737 program and implements industry standard payment terms. In addition, Boeing and Spirit also entered into Amendment No. 25 to the long-term supply agreement covering products for Boeing’s B787 commercial aircraft program (the “787 Amendment,” and, together with Sustaining Amendment #30, the “Definitive Documentation”). The 787 Amendment establishes pricing terms for the B787-8, -9, and -10 derivative models between line unit 501 and line unit 1405. The 787 Amendment provides that the parties will negotiate pricing for B787 line units 1406 and beyond beginning 24 months prior to the scheduled delivery date for line unit 1405. In the second quarter of 2017, as a result of the expected completion of the 787 Amendment, the Company formally extended the current contract block ending at line unit 1003 to line unit 1300 and established a planning block from line units 1301 to 1405. Based on the pricing updates, contract block extension, and planning block addition, the Company updated its estimated contract costs and revenue for the B787 program. As a result, the Company recorded a second quarter 2017 reach-forward loss of $352.8 on its B787 program. See Note 8, Advance Payments and Deferred Revenue/Credits, and Note 21, Boeing Definitive Documentation, as well as Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, for further details regarding the Definitive Documentation. |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Sep. 28, 2017 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable, net | 4. Accounts Receivable, net Accounts receivable, net consists of the following: September 28, December 31, Trade receivables $ 837.7 $ 647.3 Other 14.7 18.4 Less: allowance for doubtful accounts (0.7 ) (5.2 ) Accounts receivable, net $ 851.7 $ 660.5 Accounts receivable, net includes unbilled receivables on long-term aerospace contracts, comprised principally of revenue recognized on contracts for which amounts were earned but not contractually billable as of the balance sheet date, or amounts earned for which the recovery will occur over the term of the contract, which could exceed one year. |
Inventory
Inventory | 9 Months Ended |
Sep. 28, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Capitalized pre-production costs include certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis. Significant statement of work changes considered not reimbursable by the customer can also cause pre-production costs to be incurred. These costs are typically amortized over a certain number of shipset deliveries. Capitalized pre-production may be amortized over multiple blocks. See the contract block and deliveries table noted below. Deferred production includes costs for the excess of production costs over the estimated average cost per shipset, and credit balances for favorable variances on contracts between actual costs incurred and the estimated average cost per shipset for units delivered under the current production blocks. Recovery of excess-over-average deferred production costs is dependent on the number of shipsets ultimately sold and the ultimate selling prices and lower production costs associated with future production under these contract blocks. The Company believes these amounts, net of forward loss provisions, will be fully recovered over the contract block quantities noted in the contract block and deliveries table below. Should orders not materialize in future periods to fulfill the block, potential forward loss charges may be necessary to the extent the final delivered quantity does not absorb deferred inventory costs. Sales significantly under estimates or costs significantly over estimates could result in losses on these contracts in future periods. Capitalized pre-production and deferred production inventories are at risk to the extent that the Company does not achieve the orders in the forecasted blocks or if future actual costs exceed current projected estimates, as those categories of inventory are recoverable over future deliveries. Forward loss provisions on contract blocks are recorded in the period in which they become evident and included in inventory with any remaining amount reflected in accrued contract liabilities. Inventories are summarized as follows: September 28, December 31, Raw materials $ 314.6 $ 281.9 Work-in-process 760.4 790.7 Finished goods 34.1 30.9 Product inventory 1,109.1 1,103.5 Capitalized pre-production (1) 85.4 103.5 Deferred production (2) 657.6 717.4 Forward loss provision (3) (488.9 ) (409.1 ) Total inventory, net $ 1,363.2 $ 1,515.3 For contract blocks that have not closed, the following non-product inventory amounts were included in the inventory table above: (1) For the period ended September 28, 2017, includes $73.6 and $7.9 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, includes $83.7 and $15.2 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (2) For the period ended September 28, 2017, includes $629.1 and $126.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, includes $657.2 and $114.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (3) For the period ended September 28, 2017, includes ($263.1) , ($139.4) , and ($76.9) on the A350 XWB, Rolls-Royce BR725, and B787 programs, respectively. For the period ended December 31, 2016, includes ($255.8) and ($140.8) on the A350 XWB and Rolls-Royce BR725 programs, respectively. The forward loss charge recorded on the B787 program in the second quarter of 2017 exceeded the program's inventory balance. The excess of the charge over the program's inventory was classified as a contract liability and reported in other current liabilities on the balance sheet in the amount of $275.9 as of September 28, 2017. Includes a $2.1 reclassification between Work-in-process and Forward loss provision as of December 31, 2016. Significant amortization of capitalized pre-production and deferred production inventory has occurred over the following contract block deliveries and will continue to occur over the following contract blocks: Model Current Block Deliveries Contract Block Quantity A350 XWB 198 800 Rolls-Royce BR725 302 350 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consists of the following: September 28, December 31, Land $ 15.8 $ 14.9 Buildings (including improvements) 693.5 642.5 Machinery and equipment (1) 1,452.1 1,373.9 Tooling 999.6 982.4 Capitalized software (1) 262.1 261.9 Construction-in-progress 239.6 193.7 Total 3,662.7 3,469.3 Less: accumulated depreciation (1,644.0 ) (1,477.7 ) Property, plant and equipment, net $ 2,018.7 $ 1,991.6 (1) Includes a $6.9 reclassification between Machinery and equipment and Capitalized software for the period ended December 31, 2016. Repair and maintenance costs are expensed as incurred. The Company recognized repair and maintenance costs of $37.6 and $31.2 for the three months ended September 28, 2017 and September 29, 2016 , respectively, and $88.9 and $85.5 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. The Company capitalizes certain costs, such as software coding, installation, and testing, that are incurred to purchase or to create and implement internal-use computer software. Depreciation expense related to capitalized software was $4.5 and $4.5 for the three months ended September 28, 2017 and September 29, 2016 , respectively, and $14.8 and $13.4 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluated its long-lived assets at its locations and determined no impairment was necessary for the three months ended September 28, 2017 . |
Other Assets
Other Assets | 9 Months Ended |
Sep. 28, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | 7. Other Assets Other assets are summarized as follows: September 28, December 31, Intangible assets Patents $ 1.9 $ 1.9 Favorable leasehold interests 6.3 6.3 Total intangible assets 8.2 8.2 Less: Accumulated amortization - patents (1.8 ) (1.8 ) Accumulated amortization - favorable leasehold interest (4.5 ) (4.2 ) Intangible assets, net 1.9 2.2 Deferred financing Deferred financing costs 39.5 38.5 Less: Accumulated amortization - deferred financing costs (33.4 ) (32.2 ) Deferred financing costs, net 6.1 6.3 Other Goodwill - Europe 2.5 2.3 Equity in net assets of affiliates 4.7 4.4 Supply agreements (1) 21.1 17.0 Restricted cash - collateral requirements 20.0 19.9 Deferred Tax Asset - non-current 100.3 128.8 Other 40.7 40.0 Total $ 197.3 $ 220.9 (1) Under two agreements, certain payments accounted for as consideration paid by the Company to a customer and a supplier are being amortized as reductions to net revenues. |
Advance Payments and Deferred R
Advance Payments and Deferred Revenue/Credits | 9 Months Ended |
Sep. 28, 2017 | |
Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments And Deferred Revenue Credits | Advance Payments and Deferred Revenue/Credits Advance payments. Advance payments are those payments made to Spirit by customers in contemplation of the future performance of services, receipt of goods, incurrence of expenditures, or for other assets to be provided by Spirit under a contract and are repayable if such obligation is not satisfied. The amount of advance payments to be recovered against production units expected to be delivered within a year is classified as a short-term liability on the Company’s consolidated balance sheet, with the balance of the unliquidated advance payments classified as a long-term liability. Boeing has made advance payments to Spirit under the B787 Supply Agreement, which are required to be repaid to Boeing by way of offsets against the purchase price for future shipset deliveries. Advance repayments were scheduled to be spread evenly over the remainder of the first 1,000 B787 shipsets delivered to Boeing. In April 2014, the Company signed a memorandum of agreement with Boeing which suspended advance repayments related to the B787 programs for a period of twelve months beginning April 1, 2014. The Company recommenced our repayment on April 1, 2015 and any repayments which otherwise would have become due during the twelve-month period beginning April 1, 2014 will be offset against the purchase price for B787 shipsets 1001 through 1120 . Deferred revenue/credits. Deferred revenue/credits generally consist of nonrefundable amounts received in advance of revenue being earned for specific contractual deliverables. However, certain amounts of deferred revenue/credits could be required to be refunded if certain performance obligations or conditions are not met. These payments are classified as deferred revenue/credits on the Company’s condensed consolidated balance sheet when received, and recognized as revenue as the production units are delivered or performance obligations or conditions are met. In November 2014, Spirit and Boeing entered into a Memorandum of Agreement (“November 2014 MOA”). As part of the November 2014 MOA, Boeing and Spirit established interim prices for certain B787 shipsets, and the parties agreed to negotiate future rate increases, recurring prices, and other issues across multiple programs during 2015. The parties did not reach an agreement on pricing until August 1, 2017, when Boeing and the Company executed the MOU. As described in Note 3, Changes in Estimates, and Note 21, Boeing Definitive Documentation, as well as Item 2-Management’s Discussion and Analysis of Financial Condition and Results of Operations, the MOU and the Definitive Documentation provide that the Company will repay to Boeing $235.0 less certain adjustments, as a retroactive adjustment for payments that were based on interim pricing. As a result, the $235.0 is reflected in other current liabilities on the Company's balance sheet as of September 28, 2017. This amount was repaid in October 2017. Advance payments and deferred revenue/credits are summarized by program as follows: September 28, December 31, B787 $ 549.8 $ 834.8 Boeing - All other programs 9.6 18.6 A350 XWB 34.5 116.7 Airbus — All other programs 1.6 2.2 Other 25.9 27.9 Total advance payments and deferred revenue/credits $ 621.4 $ 1,000.2 |
Government Grants
Government Grants | 9 Months Ended |
Sep. 28, 2017 | |
Government Grants [Abstract] | |
Government Grants | Government Grants The Company received grants in the form of government funding for a portion of the site construction and other specific capital asset costs at the Company’s Kinston, North Carolina and Subang, Malaysia sites. Deferred grant income is being amortized as a reduction to production cost. This amortization is based on specific terms associated with the different grants. In North Carolina, the deferred grant income related to the capital investment criteria, which represents half of the grant, is being amortized over the lives of the assets purchased to satisfy the capital investment performance criteria. The other half of the deferred grant income is being amortized over a ten -year period, which began in 2010, in a manner consistent with the job performance criteria. Under the agreement, failure by Spirit to meet job performance criteria, including creation of a targeted number of jobs, could result in Spirit being obligated to make incremental rent payments to the North Carolina Global TransPark Authority over the initial term of the lease. The amount of the incremental rent payments would vary depending on Spirit’s level of attainment of the specified requirements not to exceed a certain dollar threshold. In Malaysia, the deferred grant income is being amortized based on the estimated lives of the eligible assets constructed with the grant funds as there are no performance criteria. The assets related to deferred grant income are consolidated within property, plant and equipment. Deferred grant income liability, net consists of the following: Balance, December 31, 2016 $ 77.8 Grant liability amortized (13.8 ) Exchange rate 1.9 Total deferred grant income liability, September 28, 2017 $ 65.9 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB’s authoritative guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. At September 28, 2017 and December 31, 2016, the Company did not hold any cash within money market funds. The Company’s long-term debt includes a senior unsecured term loan and senior unsecured notes. The estimated fair value of the Company’s debt obligations is based on the quoted market prices for such obligations or the historical default rate for debt with similar credit ratings. The following table presents the carrying amount and estimated fair value of long-term debt: September 28, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Senior unsecured term loan A (including current portion) $ 473.1 $ 473.1 (2) $ 485.2 $ 484.8 (2) Senior unsecured notes due 2022 294.5 306.4 (1) 293.8 307.0 (1) Senior unsecured notes due 2026 297.2 298.2 (1) 296.9 292.4 (1) Malaysian loan — — (2) 1.0 0.9 (2) Total $ 1,064.8 $ 1,077.7 $ 1,076.9 $ 1,085.1 (1) Level 1 Fair Value hierarchy. (2) Level 2 Fair Value hierarchy. |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 9 Months Ended |
Sep. 28, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Company has historically entered into interest rate swap agreements to reduce its exposure to the variable rate portion of its long-term debt. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has historically entered into derivative instruments covered by master netting arrangements whereby, in the event of a default as defined by the A&R Credit Agreement (as defined below) or termination event, the non-defaulting party has the right to offset any amounts payable against any obligation of the defaulting party under the same counterparty agreement. See Note 12, Debt, for more information. Interest Rate Swaps On March 15, 2017, the Company entered into an interest rate swap agreement, with an effective date of March 31, 2017. The swaps have a notional value of $250.0 and fix the variable portion of the Company’s floating rate debt at 1.815% . The fair value of the interest rate swaps, using Level 2 inputs, was a liability of $1.1 as of September 28, 2017. For the nine months ended September 28, 2017, the Company recorded a loss related to swap activity of $1.1 . |
Debt
Debt | 9 Months Ended |
Sep. 28, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt shown on the balance sheet is comprised of the following: September 28, 2017 December 31, 2016 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 448.2 $ 24.9 $ 460.3 Senior notes due 2022 — 294.5 — 293.8 Senior notes due 2026 — 297.2 — 296.9 Malaysian term loan — — 1.0 — Present value of capital lease obligations 3.0 21.0 0.8 9.0 Total $ 27.9 $ 1,060.9 $ 26.7 $ 1,060.0 Senior Unsecured Credit Facility On June 6, 2016, we entered into the senior unsecured Amended and Restated Credit Agreement, among Spirit, as borrower, the Company, as parent guarantor, the lenders party thereto, Bank of America, N.A., as administrative agent, and the other agents named therein (the “A&R Credit Agreement”). The A&R Credit Agreement provides for a $650.0 revolving credit facility (the “Revolver”) and a $500.0 term loan A facility (the “Term Loan”). Each of the Revolver and the Term Loan has a maturity date of June 4, 2021 , and each bears interest, at Spirit’s option, at either LIBOR plus 1.5% or a defined “base rate” plus 0.50% , subject to adjustment to amounts between and including LIBOR plus 1.125% and LIBOR plus 2.0% (or amounts between and including base rate plus 0.125% and base rate plus 1.0% , as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc. The principal obligations under the Term Loan are to be repaid in equal quarterly installments of $6.25 , with the remaining balance due at maturity of the Term Loan. The A&R Credit Agreement contains affirmative and negative covenants available to investment grade companies, including certain financial covenants that are tested on a quarterly basis. The A&R Credit Agreement contains an accordion feature that provides Spirit with the option to increase the Revolver commitments and/or institute one or more additional term loans by an amount not to exceed $500.0 in the aggregate, subject to the satisfaction of certain conditions and the participation of the lenders. Spirit used the proceeds of the Term Loan, along with cash on hand, to pay off the outstanding amounts of the term loan under our prior credit agreement and to pay a portion of the fees and expenses payable in connection with the A&R Credit Agreement. On September 22, 2017, the Company, the lenders, and the administrative agent entered into Amendment No. 1 to the A&R Credit Agreement, which made certain minor administrative changes to the A&R Credit Agreement to account for the Company’s upcoming adoption of ASU 2014-09, among other things. As of September 28, 2017, the outstanding balance of the Term Loan was $475.0 and the carrying value was $473.1 . Senior Notes 2022 Notes. In March 2014, the Company issued $300.0 in aggregate principal amount of 5.25% Senior Notes due March 15, 2022 (the “2022 Notes”) with interest payable, in cash in arrears, on March 15 and September 15 of each year, beginning September 15, 2014. The carrying value of the 2022 Notes was $294.5 as of September 28, 2017. 2026 Notes. In June, 2016, the Company issued $300.0 in aggregate principal amount of 3.850% Senior Notes due June 15, 2026 (the “2026 Notes”) with interest payable, in cash in arrears, on June 15 and December 15 of each year, beginning December 15, 2016. The carrying value of the 2026 Notes was $297.2 as of September 28, 2017. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 9 Months Ended |
Sep. 28, 2017 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits Defined Benefit Plans For the Three Months Ended For the Nine Months Ended Components of Net Periodic Pension Expense/(Income) September 28, September 29, September 28, September 29, Service cost $ 0.2 $ 0.2 $ 0.7 $ 0.8 Interest cost 9.4 11.4 28.3 34.5 Expected return on plan assets (18.2 ) (19.7 ) (54.6 ) (59.0 ) Amortization of net loss 0.1 1.6 0.1 4.0 Special termination benefits (1) — — — 10.9 Net periodic pension (income) expense $ (8.5 ) $ (6.5 ) $ (25.5 ) $ (8.8 ) (1) Special termination benefits related to early retirement incentives offered as part of a voluntary retirement plan in the first quarter of 2016. Other Benefits For the Three Months Ended For the Nine Months Ended Components of Other Benefit Expense September 28, September 29, September 28, September 29, Service cost $ 0.3 $ 0.5 $ 0.9 $ 1.4 Interest cost 0.3 0.5 0.9 1.6 Amortization of prior service cost (0.2 ) (0.2 ) (0.7 ) (0.7 ) Amortization of net gain (0.5 ) — (1.6 ) — Special termination benefits (1) — — — 3.1 Net periodic other benefit (income) expense $ (0.1 ) $ 0.8 $ (0.5 ) $ 5.4 (1) Special termination benefits related to early retirement incentives offered as part of a voluntary retirement plan in the first quarter of 2016. Employer Contributions The Company expects to contribute zero dollars to the U.S. qualified pension plan and a combined total of approximately $8.6 for the Supplemental Executive Retirement Plan (“SERP”) and post-retirement medical plans in 2017. The Company’s projected contribution to the U.K. pension plan for 2017 is zero . The entire amount contributed can vary based on exchange rate fluctuations. |
Stock Compensation
Stock Compensation | 9 Months Ended |
Sep. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Stock Compensation The Company recognized net stock compensation expense of $4.8 and $6.3 for the three months ended September 28, 2017 and September 29, 2016 , respectively, and $15.9 and $35.2 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. The additional stock compensation expense recognized during 2016 was related to executive retirements and severance recorded in the second quarter of 2016. During the nine months ended September 28, 2017 , 650,899 shares of class A common stock were granted under the Company's stock compensation plan with aggregate grant date fair values of $35.4 . Additionally, awards of 671,545 shares of class A common stock granted under the Company's stock compensation plans with an aggregate grant date fair value of $25.7 vested during the nine months ended September 28, 2017 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The process for calculating the Company’s income tax expense involves estimating actual current taxes due plus assessing temporary differences arising from differing treatment for tax and accounting purposes that are recorded as deferred tax assets and liabilities. Deferred tax assets are periodically evaluated to determine their recoverability. The total net deferred tax asset at September 28, 2017 and December 31, 2016 was $100.3 and $128.7 , respectively. The difference is primarily due to the utilization of deductible temporary differences within current year taxable income. The Company files income tax returns in all jurisdictions in which it operates. The Company establishes reserves to provide for additional income taxes that may be due upon audit. These reserves are established based on management’s assessment as to the potential exposure attributable to permanent tax adjustments and associated interest. All tax reserves are analyzed quarterly and adjustments made as events occur that warrant modification. In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share-based compensation, finalizing amounts in income tax returns filed, finalizing audit examinations for open tax years and expiration of statutes of limitations and changes in tax law. The 26.8% effective tax rate for the nine months ended September 28, 2017 differs from the 29.1% effective tax rate for the same period of 2016 primarily due to higher pre-tax income in jurisdictions with tax rates lower than the U.S. rate in 2017 and the proportional tax rate effects of lower pre-tax income in 2017. The Company will continue to participate in the Internal Revenue Service’s Compliance Assurance Process (“CAP”) program for its 2016 and 2017 tax years. The CAP program’s objective is to resolve issues in a timely, contemporaneous manner and eliminate the need for a lengthy post-filing examination. There are no open audits in the Company’s foreign jurisdictions. The Company expects no material change in its recorded unrecognized tax benefit liability in the next 12 months. |
Equity
Equity | 9 Months Ended |
Sep. 28, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Elimination of Class B Common Stock In April 2017, the Company's stockholders approved the proposed Third Amended and Restated Certificate of Incorporation of the Company (the “Certificate”) which eliminated all references to class B common stock, including but not limited to the provisions relating to the rights, preferences and limitations of class B common stock, and made related conforming changes. As a result of the elimination of 150,000,000 previously authorized shares of class B common stock, the Company's total number of shares of capital stock authorized to be issued was reduced from 360,000,000 to 210,000,000 , comprised of 200,000,000 shares of class A common stock and 10,000,000 shares of preferred stock. The Certificate did not change any substantive terms of the Company's class A common stock or preferred stock or any powers or rights of their respective holders. Earnings Per Share Calculation Basic net income per share is computed using the weighted-average number of outstanding shares of common stock during the measurement period. Diluted net income per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential outstanding shares of common stock during the measurement period. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of September 28, 2017 , no treasury shares have been reissued or retired. The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended September 28, 2017 September 29, 2016 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common stockholders $ 147.1 115.8 $ 1.27 $ 144.9 124.4 $ 1.16 Income allocated to participating securities 0.1 0.1 0.2 0.1 Net income $ 147.2 $ 145.1 Diluted potential common shares 1.1 0.8 Diluted EPS Net income $ 147.2 117.0 $ 1.26 $ 145.1 125.3 $ 1.16 For the Nine Months Ended September 28, 2017 September 29, 2016 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common shareholders $ 231.9 117.8 $ 1.97 $ 361.2 128.2 $ 2.82 Income allocated to participating securities 0.2 0.1 0.3 0.1 Net income $ 232.1 $ 361.5 Diluted potential common shares 1.1 0.7 Diluted EPS Net income $ 232.1 119.0 $ 1.95 $ 361.5 129.0 $ 2.80 Included in the outstanding common shares were 1.5 million and 1.6 million of issued but unvested shares at September 28, 2017 and September 29, 2016 , respectively, which are excluded from the basic EPS calculation. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of September 28, 2017 December 31, 2016 Pension $ (98.5 ) $ (98.5 ) SERP/Retiree medical 19.0 20.5 Foreign currency impact on long term intercompany loan (15.2 ) (19.1 ) Currency translation adjustment (58.6 ) (89.8 ) Total accumulated other comprehensive loss $ (153.3 ) $ (186.9 ) |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 28, 2017 | |
Commitments Contingencies And Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation From time to time the Company is subject to, and is presently involved in, litigation or other legal proceedings arising in the ordinary course of business. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the meritorious legal defenses available, it is the opinion of the Company that none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. The Company had outstanding obligations with respect to litigation or other legal proceedings of zero and $25.0 as of September 28, 2017 and December 31, 2016, respectively. From time to time, in the ordinary course of business and similar to others in the industry, the Company receives requests for information from government agencies in connection with their regulatory or investigational authority. Such requests can include subpoenas or demand letters for documents to assist the government in audits or investigations. The Company reviews such requests and notices and takes appropriate action. Additionally, the Company is subject to federal and state requirements for protection of the environment, including those for disposal of hazardous waste and remediation of contaminated sites. As a result, the Company is required to participate in certain government investigations regarding environmental remediation actions. On December 5, 2014, Boeing filed a complaint in Delaware Superior Court, Complex Commercial Litigation Division, entitled The Boeing Co. v. Spirit AeroSystems, Inc., No. N14C-12-055 (EMD) (the “Complaint”). Boeing seeks indemnification from Spirit for (a) damages assessed against Boeing in International Union, United Automobile, Aerospace and Agricultural Workers of America v. Boeing Co., AAA Case No. 54 300 00795 07 (“UAW Arbitration”), which was brought on behalf of certain former Boeing employees in Tulsa and McAlester, Oklahoma, and (b) claims that Boeing settled in Society of Professional Engineering Employees in Aerospace v. Boeing Co., Nos. 05-1251-MLB, 07-1043-MLB (D. Kan.) (“Harkness Class Action”). The Company, Spirit, and certain Spirit retirement plan entities were parties to the Harkness Class Action, but all claims against the Spirit entities were subsequently dismissed. Boeing’s Complaint asserts that the damages assessed against Boeing in the UAW Arbitration and the claims settled by Boeing in the Harkness Class Action are liabilities that Spirit assumed under an Asset Purchase Agreement between Boeing and Spirit, dated February 22, 2005 (the “APA”). Boeing asserts claims for breach of contract and declaratory judgment regarding its indemnification rights under the APA. Boeing's Complaint alleges that the UAW Arbitration decision had a net present value of $39.0 . In regard to the Harkness Class Action, the district court approved a settlement in an amount of $90.0 . In addition to the amounts related to the UAW Arbitration and Harkness Class Action, Boeing seeks indemnification for more than $10.0 in attorneys’ fees it alleges it expended to defend the UAW Arbitration and Harkness Class Action, as well as for the reasonable fees, costs and expenses Boeing expends litigating the case against Spirit. Following a motion to dismiss (which was denied by Court Order dated August 14, 2015), Spirit answered Boeing’s Complaint and asserted a Counterclaim against Boeing, on the ground that the liabilities at issue were Boeing’s responsibility under the APA. Spirit’s Counterclaim alleges breach of contract and seeks a declaratory judgment regarding Spirit’s right to indemnification from Boeing under the APA. Spirit’s Counterclaim seeks to recover the amounts that Spirit spent litigating the Harkness Class Action, responding to Boeing’s indemnification demands concerning the Harkness Class Action and UAW Arbitration, and also litigating the current lawsuit against Boeing. On December 20, 2016, Boeing and Spirit moved for summary judgment. Summary judgment briefing was completed on February 9, 2017 and oral argument was held on the parties’ motions for summary judgment on March 22, 2017. On June 27, 2017, the Delaware Superior Court issued an order denying Boeing’s Motion for Summary Judgment and granting Spirit’s Motion for Summary Judgment, finding that the liabilities at issue were excluded liabilities under the APA and holding that Spirit is entitled to recover reasonable attorneys' fees, costs and other expenses from Boeing. On July 10, 2017, Boeing filed a Motion for Entry of Judgment so that Boeing could pursue an appeal of the Court's June 27, 2017 Order prior to the determination of the amount of reasonable attorneys' fees, costs and other expenses to which Spirit is entitled. On July 17, 2017, Spirit filed its response opposing Boeing's Motion for Entry of Judgment and oral argument occurred on July 24, 2017. On July 28, 2017, the Court denied Boeing’s Motion for Entry of Judgment finding that there was just reason to delay an appeal to allow the Court to rule on Spirit’s Motion for Attorneys’ Fees, Costs, Expenses, and Pre- and Post-Judgment Interest (“Motion for Fees”). Spirit’s Motion for Fees is fully briefed and the Court has set a hearing on the Motion for Fees on December 1, 2017. Spirit intends to pursue its Motion for Fees and to defend vigorously against any future appeals. Guarantees Outstanding guarantees were $20.5 and $20.7 at September 28, 2017 and December 31, 2016 , respectively. Restricted Cash - Collateral Requirements The Company was required to maintain $20.0 and $19.9 of restricted cash as of September 28, 2017 and December 31, 2016 , respectively, related to certain collateral requirements for obligations under its workers’ compensation programs. The restricted cash is included in “Other assets” in the Company’s condensed consolidated balance sheets. Indemnification The Company has entered into customary indemnification agreements with each of its nonemployee directors, and some of its executive employment agreements include indemnification provisions. Under those agreements, the Company agrees to indemnify each of these individuals against claims arising out of events or occurrences related to that individual’s service as the Company’s agent or the agent of any of its subsidiaries to the fullest extent legally permitted. The Company has agreed to indemnify parties for specified liabilities incurred, or that may be incurred, in connection with transactions they have entered into with the Company. The Company is unable to assess the potential number of future claims that may be asserted under these indemnities, nor the amounts thereof (if any). As a result, the Company cannot estimate the maximum potential amount of future payments under these indemnities and therefore, no liability has been recorded. Service and Product Warranties and Extraordinary Rework Provisions for estimated expenses related to service and product warranties and certain extraordinary rework are evaluated on a quarterly basis. These costs are accrued and are recorded to unallocated cost of goods sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims, including the experience of industry peers. In the case of new development products or new customers, Spirit considers other factors including the experience of other entities in the same business and management judgment, among others. Service warranty and extraordinary work is reported in current liabilities and other liabilities in the condensed consolidated balance sheet. The warranty balance presented in the table below includes unresolved warranty claims that are in dispute in regards to their value as well as their contractual liability. The Company estimated the total costs related to some of these claims, however there is significant uncertainty surrounding the disposition of these disputed claims and as such, the ultimate determination of the provision’s adequacy requires significant management judgment. The amount of the specific provisions recorded against disputed warranty claims was $99.7 and $99.0 as of September 28, 2017 and December 31, 2016 , respectively. These specific provisions represent the Company’s best estimate of reasonably possible warranty costs. Should the Company incur higher than expected warranty costs and/or discover new or additional information related to these warranty provisions, the Company may incur charges that exceed these recorded amounts. The Company utilized available information to make appropriate assessments, however the Company recognizes that data on actual claims experience is of limited duration and therefore, claims projections are subject to judgment. The amount of the disputed warranty claims in excess of the specific warranty provision was $218.3 and $209.0 , as of September 28, 2017 and December 31, 2016 , respectively. The following is a roll forward of the service warranty and extraordinary rework balance at September 28, 2017 : Balance, December 31, 2016 $ 163.7 Charges to costs and expenses 5.4 Payouts (3.6 ) Exchange rate 0.8 Balance, September 28, 2017 $ 166.3 |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 28, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net is summarized as follows: For the Three Months Ended For the Nine Months Ended September 28, September 29, September 28, September 29, Kansas Development Finance Authority bond $ 0.6 $ 0.8 $ 2.3 $ 2.7 Rental and miscellaneous income (loss) 0.5 0.2 (0.9 ) 0.3 Interest income 1.9 1.0 4.4 2.7 Foreign currency losses (1.1 ) (2.3 ) (1.2 ) (14.4 ) Total $ 1.9 $ (0.3 ) $ 4.6 $ (8.7 ) Foreign currency losses are due to the impact of movement in foreign currency exchange rates on an intercompany revolver and long-term contractual rights/obligations, as well as trade and intercompany receivables/payables which are denominated in a currency other than the entity’s functional currency. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 28, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in three principal segments: Fuselage Systems, Propulsion Systems, and Wing Systems. All other Company activities fall within the All Other segment, principally made up of sundry sales of miscellaneous services, tooling contracts, and sales of natural gas through Kansas Industrial Energy Supply Company (“KIESC”), a tenancy-in-common with other companies that have operations in Wichita, Kansas. The Company’s Fuselage Systems segment includes development, production and marketing of forward, mid and rear fuselage sections and systems, primarily to aircraft OEMs, as well as related spares and maintenance, repairs and overhaul (“MRO”) services. The Fuselage Systems segment manufactures products at the Company’s facilities in Wichita, Kansas and Kinston, North Carolina. The Fuselage Systems segment also includes an assembly plant for the A350 XWB aircraft in Saint-Nazaire, France. The Company’s Propulsion Systems segment includes development, production, and marketing of struts/pylons, nacelles (including thrust reversers), and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Propulsion Systems segment manufactures products at the Company’s facility in Wichita, Kansas. The Company’s Wing Systems segment includes development, production, and marketing of wings and wing components (including flight control surfaces) as well as other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. These activities take place at the Company’s facilities in Tulsa and McAlester, Oklahoma; Kinston, North Carolina; Prestwick, Scotland; and Subang, Malaysia. The Company’s segments are consistent with the organization and responsibilities of management reporting to the chief operating decision-maker for the purpose of assessing performance. The Company’s definition of segment operating income differs from net profit margin as presented in its primary financial statements and a reconciliation of the segment and consolidated results is provided in the table set forth below. The Company’s primary profitability measure to review a segment’s operating performance is segment operating income before corporate selling, general and administrative expenses, research and development and unallocated cost of sales. Corporate selling, general and administrative expenses include centralized functions such as accounting, treasury and human resources that are not specifically related to the Company’s operating segments and are not allocated in measuring the operating segments’ profitability and performance and net profit margins. Research and development includes research and development efforts that benefit the Company as a whole and are not unique to a specific segment. Unallocated cost of sales includes general costs not directly attributable to segment operations, such as warranty, early retirement, and other incentives. All of these items are not specifically related to the Company’s operating segments and are not utilized in measuring the operating segments’ profitability and performance. While some working capital accounts are maintained on a segment basis, much of the Company’s assets are not managed or maintained on a segment basis. Property, plant and equipment, including tooling, are used in the design and production of products for each of the segments and, therefore, are not allocated to any individual segment. In addition, cash, prepaid expenses, other assets, and deferred taxes are managed and maintained on a consolidated basis and generally do not pertain to any particular segment. Raw materials and certain component parts are used in the production of aerostructures across all segments. Work-in-process inventory is identifiable by segment, but is managed and evaluated at the program level. As there is no segmentation of the Company’s productive assets, depreciation expense (included in fixed manufacturing costs and selling, general and administrative expenses) and capital expenditures, no allocation of these amounts has been made solely for purposes of segment disclosure requirements. The following table shows segment revenues and operating income for the three and nine months ended September 28, 2017 and September 29, 2016 : Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Segment Revenues Fuselage Systems $ 957.0 $ 880.3 $ 2,812.1 $ 2,679.7 Propulsion Systems 407.9 453.0 1,250.7 1,373.3 Wing Systems 382.2 376.8 1,201.7 1,161.5 All Other 1.1 1.3 3.9 8.4 $ 1,748.2 $ 1,711.4 $ 5,268.4 $ 5,222.9 Segment Operating Income Fuselage Systems (1) $ 148.3 $ 142.5 $ 218.5 $ 340.9 Propulsion Systems (1) 74.2 77.5 188.9 250.9 Wing Systems (1) 50.9 51.1 140.2 174.7 All Other 0.2 0.6 (0.5 ) 2.0 273.6 271.7 547.1 768.5 Corporate SG&A (48.8 ) (52.2 ) (146.8 ) (172.4 ) Impact of severe weather event — — (19.9 ) — Research and development (9.5 ) (5.4 ) (21.2 ) (15.9 ) Unallocated cost of sales (2) (3.9 ) 0.3 (17.0 ) (16.0 ) Total Operating Income $ 211.4 $ 214.4 $ 342.2 $ 564.2 (1) Includes forward losses, changes in estimates on loss programs, and cumulative catch-up adjustments. These changes in estimates are further detailed in Note 3, Changes in Estimates. (2) Includes $1.5 and $7.7 of warranty expense for the three months ended September 28, 2017 and September 29, 2016 , respectively and $3.2 and $12.0 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. Also includes a charge for excess purchases and purchase commitments of $11.5 for the nine months ended September 28, 2017 and $11.8 related to early retirement incentives for the nine months ended September 29, 2016 . |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 28, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The 2022 Notes and 2026 Notes are fully and unconditionally guaranteed on a senior unsecured basis by the Company. No subsidiaries are guarantors to the 2022 Notes or 2026 Notes. The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for: (i) Holdings, as the parent company and parent guarantor to the A&R Credit Agreement, as further detailed in Note 12, Debt; (ii) Spirit, as the subsidiary issuer of the 2022 Notes and the 2026 Notes; (iii) The Company’s subsidiaries (“Non-Guarantor Subsidiaries”) on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Holdings and the Non-Guarantor Subsidiaries, (b) eliminate the investments in the Company’s subsidiaries, and (c) record consolidating entries; and (v) Holdings and its subsidiaries on a consolidated basis. Condensed Consolidating Statements of Operations For the Three Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 1,573.0 $ 311.8 $ (136.6 ) $ 1,748.2 Operating costs and expenses Cost of sales — 1,331.1 284.0 (136.6 ) 1,478.5 Selling, general and administrative 3.9 41.3 3.6 — 48.8 Research and development — 8.8 0.7 — 9.5 Total operating costs and expenses 3.9 1,381.2 288.3 (136.6 ) 1,536.8 Operating (loss) income (3.9 ) 191.8 23.5 — 211.4 Interest expense and financing fee amortization — (10.5 ) (1.3 ) 1.4 (10.4 ) Other income (expense), net — 4.0 (0.7 ) (1.4 ) 1.9 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.9 ) 185.3 21.5 — 202.9 Income tax benefit (provision) 0.8 (53.0 ) (3.7 ) — (55.9 ) (Loss) income before equity in net income of affiliate and subsidiaries (3.1 ) 132.3 17.8 — 147.0 Equity in net income of affiliate 0.2 — 0.2 (0.2 ) 0.2 Equity in net income of subsidiaries 150.1 17.7 — (167.8 ) — Net income 147.2 150.0 18.0 (168.0 ) 147.2 Other comprehensive income (loss) 13.8 13.8 14.3 (28.1 ) 13.8 Comprehensive income (loss) $ 161.0 $ 163.8 $ 32.3 $ (196.1 ) $ 161.0 Condensed Consolidating Statements of Operations For the Three Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 1,549.3 $ 308.7 $ (146.6 ) $ 1,711.4 Operating costs and expenses Cost of sales — 1,298.8 287.2 (146.6 ) 1,439.4 Selling, general and administrative 2.2 46.6 3.4 — 52.2 Research and development — 5.0 0.4 — 5.4 Total operating costs and expenses 2.2 1,350.4 291.0 (146.6 ) 1,497.0 Operating (loss) income (2.2 ) 198.9 17.7 — 214.4 Interest expense and financing fee amortization — (12.1 ) (1.9 ) 1.8 (12.2 ) Other income (expense), net — 4.0 (2.5 ) (1.8 ) (0.3 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (2.2 ) 190.8 13.3 — 201.9 Income tax benefit (provision) 0.6 (55.8 ) (2.1 ) — (57.3 ) (Loss) income before equity in net income of affiliate and subsidiaries (1.6 ) 135.0 11.2 — 144.6 Equity in net income of affiliate 0.5 — 0.5 (0.5 ) 0.5 Equity in net income of subsidiaries 146.2 11.2 — (157.4 ) — Net income 145.1 146.2 11.7 (157.9 ) 145.1 Other comprehensive (loss) income (8.5 ) (8.5 ) (17.7 ) 26.2 (8.5 ) Comprehensive income (loss) $ 136.6 $ 137.7 $ (6.0 ) $ (131.7 ) $ 136.6 Condensed Consolidating Statements of Operations For the Nine Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 4,701.1 $ 1,025.4 $ (458.1 ) $ 5,268.4 Operating costs and expenses Cost of sales — 4,282.9 913.5 (458.1 ) 4,738.3 Selling, general and administrative 8.8 127.3 10.7 — 146.8 Impact of severe weather event — 19.9 — — 19.9 Research and development — 19.4 1.8 — 21.2 Total operating costs and expenses 8.8 4,449.5 926.0 (458.1 ) 4,926.2 Operating (loss) income (8.8 ) 251.6 99.4 — 342.2 Interest expense and financing fee amortization — (30.1 ) (4.5 ) 4.5 (30.1 ) Other income (expense), net — 9.8 (0.7 ) (4.5 ) 4.6 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (8.8 ) 231.3 94.2 — 316.7 Income tax benefit (provision) 2.7 (70.2 ) (17.4 ) — (84.9 ) (Loss) income before equity in net income of affiliate and subsidiaries (6.1 ) 161.1 76.8 — 231.8 Equity in net income of affiliate 0.3 — 0.3 (0.3 ) 0.3 Equity in net income of subsidiaries 237.9 76.8 — (314.7 ) — Net income 232.1 237.9 77.1 (315.0 ) 232.1 Other comprehensive (loss) income 33.6 33.6 35.0 (68.6 ) 33.6 Comprehensive income (loss) $ 265.7 $ 271.5 $ 112.1 $ (383.6 ) $ 265.7 Condensed Consolidating Statements of Operations For the Nine Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 4,711.7 $ 984.5 $ (473.3 ) $ 5,222.9 Operating costs and expenses Cost of sales — 4,047.0 896.7 (473.3 ) 4,470.4 Selling, general and administrative 6.0 154.4 12.0 — 172.4 Research and development — 14.4 1.5 — 15.9 Total operating costs and expenses 6.0 4,215.8 910.2 (473.3 ) 4,658.7 Operating (loss) income (6.0 ) 495.9 74.3 — 564.2 Interest expense and financing fee amortization — (47.2 ) (6.0 ) 5.7 (47.5 ) Other income (expense), net — 11.5 (14.5 ) (5.7 ) (8.7 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (6.0 ) 460.2 53.8 — 508.0 Income tax benefit (provision) 1.8 (140.1 ) (9.5 ) — (147.8 ) (Loss) income before equity in net income of affiliate and subsidiaries (4.2 ) 320.1 44.3 — 360.2 Equity in net income of affiliate 1.3 — 1.3 (1.3 ) 1.3 Equity in net income of subsidiaries 364.4 44.3 — (408.7 ) — Net income 361.5 364.4 45.6 (410.0 ) 361.5 Other comprehensive (loss) income (42.9 ) (42.9 ) (44.5 ) 87.4 (42.9 ) Comprehensive income (loss) $ 318.6 $ 321.5 $ 1.1 $ (322.6 ) $ 318.6 Condensed Consolidating Balance Sheet September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 687.8 $ 38.8 $ — $ 726.6 Restricted cash — 3.2 — — 3.2 Accounts receivable, net — 876.9 330.4 (355.6 ) 851.7 Inventory, net — 925.1 438.1 — 1,363.2 Other current assets — 63.7 3.6 — 67.3 Total current assets — 2,556.7 810.9 (355.6 ) 3,012.0 Property, plant and equipment, net — 1,499.4 519.3 — 2,018.7 Pension assets, net — 293.8 15.4 — 309.2 Investment in subsidiary 1,759.4 677.0 — (2,436.4 ) — Other assets — 333.6 121.1 (257.4 ) 197.3 Total assets $ 1,759.4 $ 5,360.5 $ 1,466.7 $ (3,049.4 ) $ 5,537.2 Liabilities Accounts payable $ — $ 685.9 $ 431.8 $ (355.6 ) $ 762.1 Accrued expenses — 231.8 26.5 — 258.3 Profit sharing — 63.0 2.7 — 65.7 Current portion of long-term debt — 27.1 0.8 — 27.9 Advance payments, short-term — 131.0 — — 131.0 Deferred revenue and other deferred credits, short-term — 66.8 1.5 — 68.3 Deferred grant income liability - current — — 21.0 — 21.0 Other current liabilities — 597.2 4.5 — 601.7 Total current liabilities — 1,802.8 488.8 (355.6 ) 1,936.0 Long-term debt — 1,052.4 165.3 (156.8 ) 1,060.9 Advance payments, long-term — 255.6 — — 255.6 Pension/OPEB obligation — 40.3 — — 40.3 Deferred grant income liability - non-current — — 44.9 — 44.9 Deferred revenue and other deferred credits — 163.6 2.9 — 166.5 Other liabilities — 366.3 7.9 (100.6 ) 273.6 Total equity 1,759.4 1,679.5 756.9 (2,436.4 ) 1,759.4 Total liabilities and stockholders’ equity $ 1,759.4 $ 5,360.5 $ 1,466.7 $ (3,049.4 ) $ 5,537.2 Condensed Consolidating Balance Sheet December 31, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 680.1 $ 17.6 $ — $ 697.7 Accounts receivable, net — 785.0 249.4 (373.9 ) 660.5 Inventory, net — 1,058.8 456.5 — 1,515.3 Other current assets — 29.0 7.9 — 36.9 Total current assets — 2,552.9 731.4 (373.9 ) 2,910.4 Property, plant and equipment, net — 1,462.3 529.3 — 1,991.6 Pension assets, net — 268.1 14.2 — 282.3 Investment in subsidiary 1,928.8 544.4 — (2,473.2 ) — Other assets — 398.9 101.4 (279.4 ) 220.9 Total assets $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Liabilities Accounts payable $ — $ 527.0 $ 426.6 $ (373.9 ) $ 579.7 Accrued expenses — 192.8 23.4 — 216.2 Profit sharing — 97.2 4.2 — 101.4 Current portion of long-term debt — 25.1 1.6 — 26.7 Advance payments, short-term — 199.3 — — 199.3 Deferred revenue and other deferred credits, short-term — 310.8 1.3 — 312.1 Deferred grant income liability - current — — 14.4 — 14.4 Other current liabilities — 94.2 0.2 — 94.4 Total current liabilities — 1,446.4 471.7 (373.9 ) 1,544.2 Long-term debt — 1,052.5 206.9 (199.4 ) 1,060.0 Advance payments, long-term — 342.0 — — 342.0 Pension/OPEB obligation — 43.9 — — 43.9 Deferred grant income liability - non-current — — 63.4 — 63.4 Deferred revenue and other deferred credits — 143.4 3.4 — 146.8 Other liabilities — 349.5 6.6 (80.0 ) 276.1 Total equity 1,928.8 1,848.9 624.3 (2,473.2 ) 1,928.8 Total liabilities and stockholders’ equity $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 525.7 $ 98.9 $ — $ 624.6 Investing activities Purchase of property, plant and equipment — (122.1 ) (16.6 ) — (138.7 ) Proceeds from sale of assets — 0.3 — — 0.3 Net cash used in investing activities — (121.8 ) (16.6 ) — (138.4 ) Financing activities Principal payments of debt — (0.7 ) (1.6 ) — (2.3 ) Payment on term loan — (12.5 ) — — (12.5 ) Proceeds (payments) from intercompany debt — 65.1 (65.1 ) — — Taxes paid related to net share settlement of awards — (13.8 ) — — (13.8 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Proceeds from financing under the New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 402.1 (402.1 ) — — — Purchase of treasury stock (402.1 ) — — — (402.1 ) Change in restricted cash — (3.2 ) — — (3.2 ) Proceeds (payments) from subsidiary for dividends paid 35.7 (35.7 ) — — — Dividends paid (35.7 ) — — (35.7 ) Net cash used in financing activities — (396.2 ) (66.7 ) — (462.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.6 — 5.6 Net increase in cash and cash equivalents for the period — 7.7 21.2 — 28.9 Cash and cash equivalents, beginning of period — 680.1 17.6 — 697.7 Cash and cash equivalents, end of period $ — $ 687.8 $ 38.8 $ — $ 726.6 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 481.3 $ 93.1 $ — $ 574.4 Investing activities Purchase of property, plant and equipment — (121.4 ) (35.4 ) — (156.8 ) Proceeds from sale of assets — 0.6 — — 0.6 Other — 0.4 (0.4 ) — — Net cash used in investing activities — (120.4 ) (35.8 ) — (156.2 ) Financing activities Proceeds from issuance of bonds — 299.8 — — 299.8 Principal payments of debt — (14.4 ) (2.3 ) — (16.7 ) Payments on bonds — (300.0 ) — — (300.0 ) Excess tax benefits from share-based payment arrangements — (0.1 ) — — (0.1 ) Proceeds (payments) from intercompany debt — 51.0 (51.0 ) — — Debt issuance and financing costs — (17.2 ) — — (17.2 ) Taxes paid related to net share settlement of awards — (15.2 ) — — (15.2 ) Proceeds (payments) from subsidiary for purchase of treasury stock 649.6 (649.6 ) — — — Purchase of treasury stock (649.6 ) — — — (649.6 ) Net cash used in financing activities — (645.7 ) (53.3 ) — (699.0 ) Effect of exchange rate changes on cash and cash equivalents — — (6.1 ) — (6.1 ) Net decrease in cash and cash equivalents for the period — (284.8 ) (2.1 ) — (286.9 ) Cash and cash equivalents, beginning of period — 894.2 63.1 — 957.3 Cash and cash equivalents, end of period $ — $ 609.4 $ 61.0 $ — $ 670.4 |
New Market Tax Credit (Notes)
New Market Tax Credit (Notes) | 9 Months Ended |
Sep. 28, 2017 | |
Variable Interest Entity [Line Items] | |
New Market Tax credit [Text Block] | 22. New Markets Tax Credit During the first quarter of 2017, the Company entered into a financing transaction with Chase Community Equity, LLC (“Chase”) related to the purchase and installation of certain equipment at the Company’s facility in Wichita, Kansas. Chase made a capital contribution and the Company made a loan to Chase NMTC Spirit Investment Fund, LLC (“Investment Fund”) under a qualified New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (“Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDE”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments. In connection with the financing, the Company loaned $20.6 aggregate principal amount of a 1.0% loan (“Leverage Loan”) due December 2050, to the Investment Fund. Additionally, Chase contributed $9.7 to the Investment Fund, and as such, Chase is entitled to substantially all of the benefits derived from the NMTCs. The Investment Fund then contributed the proceeds to certain CDEs, which, in turn, loaned the funds on similar terms as the Leverage Loan to Spirit AeroSystems, Inc. a wholly-owned subsidiary of the Company. The proceeds of the loans from the CDEs, including loans representing the capital contribution made by Chase, net of syndication fees, are restricted for use on the purchase and installation of equipment outlined within the NMTC agreement. As of September 28, 2017, after qualifying capital expenditures, the Company held restricted cash of $3.2 . The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to comply with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, require the Company to indemnify Chase for any loss or recapture of NMTCs related to the financing until such time as the Company’s obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. This transaction also includes a put/call provision whereby the Company may be obligated or entitled to repurchase Chase’s interest in the Investment Fund. The Company believes that Chase will exercise the put option in March 2024, at the end of the recapture period. The value attributed to the put/call is negligible. The Company has determined that the financing arrangement with the Investment Fund and CDEs is a variable interest entity (“VIE”), and that it is the primary beneficiary of the VIE. This conclusion was reached based on the following: • The ongoing activities of the VIE, collecting and remitting interest and fees, and NMTC compliance were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE; • Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investment Fund and CDEs; • Chase lacks a material interest in the underlying economics of the project; and • The Company is obligated to absorb losses of the VIE. Because the Company is the primary beneficiary of the VIE, it has been included in the Company’s condensed consolidated financial statements. Chase’s contribution of $9.7 was initially recorded as restricted cash and its interest in the Investment Fund is included in other liabilities. |
Boeing MOU (Notes)
Boeing MOU (Notes) | 9 Months Ended |
Sep. 28, 2017 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 21. Boeing Definitive Documentation On August 1, 2017, Boeing and the Company through its subsidiary, Spirit, entered into the MOU. Subsequently, on September 22, 2017, the parties entered into the Definitive Documentation. On September 22, 2017, Boeing and Spirit completed their negotiation of such definitive documentation and entered into Sustaining Amendment #30. Sustaining Amendment #30 generally establishes pricing terms for the B737, B747, B767, and B777 models (excluding the B777x) through 2022 (with certain limited exceptions). Sustaining Amendment #30 further provides that Boeing and Spirit will negotiate follow-on pricing for periods beyond January 1, 2023 beginning 24 months prior to January 1, 2023. If Boeing and Spirit are unable to reach an agreement with respect to follow-on pricing prior to January 1, 2023, Sustaining Amendment #30 provides a mechanism to establish interim pricing that takes into account escalation and reduces certain rate-based discounts. In addition, Sustaining Amendment #30 provides that the parties will make certain investments for rate increases on the B737 program and implements industry standard payment terms. As contemplated by the MOU, Boeing and Spirit also executed the 787 Amendment. The 787 Amendment establishes pricing terms for the B787-8, -9, and -10 derivative models between line unit 501 and line unit 1405. The 787 Amendment provides that the parties will negotiate pricing for B787 line units 1406 and beyond beginning 24 months prior to the scheduled delivery date for line unit 1405. In addition, the 787 Amendment provides that Spirit will repay to Boeing $235.0 , less certain adjustments as a retroactive adjustment for payments that were based on interim pricing, and that Boeing will assist Spirit regarding supply chain cost reduction opportunities on the B787 program. This amount was repaid in October 2017. In the second quarter of 2017, as a result of the expected completion of the 787 Amendment, the Company formally extended the current contract block ending at line unit 1003 to line unit 1300 and established a planning block from line units 1301 to 1405. Based on the pricing updates, contract block extension, and planning block addition, the Company updated its estimated contract costs and revenue for the B787 program. As a result, the Company recorded a second quarter 2017 reach-forward loss $352.8 on its B787 program. The foregoing descriptions of the Definitive Documentation do not purport to be complete and are qualified in their entirety by reference to the full text of the MOU, which was filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended June 29, 2017, and Sustaining Amendment #30 and the 787 Amendment, each of which are filed as an exhibit hereto. The B787 Special Business Provisions BCA-MS-65530-0019, dated June 16, 2005, as amended up to the 787 Amendment, and the related General Terms Agreement, dated June 16, 2005, as amended, are also filed as exhibits hereto. See Note 3, Changes in Estimates, Note 8, Advance Payments and Deferred Revenue/Credits, and Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional discussion of the Definitive Documentation. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 28, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 2. New Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 requires entities to report the service cost component of net periodic pension and net periodic postretirement benefit cost in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. Further, ASU 2017-07 requires the other components of net periodic pension and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. Additionally, only the service cost component is eligible for capitalization, when applicable. The amendments as set forth in ASU 2017-07 are effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2017-07 is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 provides guidance on eight specific cash flow classification issues that GAAP does not address. ASU 2016-15 is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is currently evaluating the new guidance to determine the impact it may have to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). Subsequently, the FASB issued several updates to ASU 2014-09, which are codified in Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”). ASC 606 also includes new guidance on costs related to a contract, which is codified in ASC Subtopic 340-40 (“ASC 340-40”). In applying ASC 606, revenue is recognized when control of promised goods or services transfers to a customer and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The major provisions of the new standard include: the determination of enforceable rights and obligations between parties; the identification of performance obligations, including performance obligations for options that represent material rights granted to a customer; accounting for variable consideration; the determination of whether performance obligations are satisfied over time or at a point in time; and enhanced disclosure requirements. ASC 606 will be effective for the Company beginning January 1, 2018 and permits two methods of adoption: retrospectively to each prior reporting period presented (“full retrospective method”) or retrospectively with the cumulative effect of the initial application recognized at the date of initial application (“modified retrospective method”). The Company will adopt the standard using the modified retrospective method and will record an adjustment to Retained Earnings for the cumulative effect of initial application on January 1, 2018 (“Transition Adjustment”). In 2016, the Company established a cross-functional team to assess and prepare for implementation of ASC 606. Earlier this year, the Company completed its implementation assessment as well as the design of the processes, including internal controls, and related systems solutions. The Company has reviewed all of its contracts with customers and has implemented the required process, data, and system changes. The Company is currently performing testing of systems and business processes to ensure that the results are consistent with the new accounting policies and procedures. The Company is currently running parallel systems and processes in anticipation of ASC 606 adoption. Upon adoption of ASC 606, the Company will no longer recognize revenue using the units-of-delivery method under ASC Topic 605 (“legacy GAAP”). ASC 606 is applied by analyzing each contract, or a combination of contracts, to determine if revenue is recognized over time or at a point in time. The Company has determined that some of its contracts will have performance obligations that are satisfied over time and some at a point in time based on when control of goods and services transfers to the customer. For performance obligations that are satisfied over time, the Company will use an input method as the basis for recognizing revenue. Input methods recognize revenue on the basis of an entity’s efforts or inputs toward satisfying a performance obligation (for example, resources consumed, labor hours expended, costs incurred, time lapsed, or machine hours used) relative to the total expected inputs to satisfy the performance obligation. Performance obligations that are not recognized over time will be recognized at a point in time. ASC 606 requires the Company to record performance obligations for material rights granted to the customer when contracts offer the customer future purchase options at an incremental discount. The Company has determined that performance obligations for material rights exist for certain contracts which will result in deferral of revenues attributable to such rights. Primarily due to the material rights identified, the revenue recognized under ASC 606 results in a different revenue recognition pattern when compared to the revenue recognized under legacy GAAP. However, the Company’s operating cash flows from our contracts with customers will not change. The Transition Adjustment will include the establishment of contract assets and liabilities for billings that are lower than, or in excess of, revenue that has been recognized. The adoption of ASC 606 will not change the Company's accounting method for forward losses. Forward losses relating to unfulfilled contracts and options will continue to be recorded consistent with historical accounting policies. Under ASC 606, production costs are generally expensed as incurred and not deferred. Additionally, ASC 340-40 is to be applied if existing guidance is not applicable. The Company’s accounting for preproduction, tooling, and certain other costs is expected to continue under existing guidance since they generally do not fall within the scope of ASC 340-40. The Company typically does not incur costs for obtaining contracts that would be capitalized under ASC 340-40. The Company expects the Transition Adjustment to decrease Retained Earnings, primarily due to the elimination of deferred production costs. The elimination of deferred production is expected to lead to an increase in 2018 pre-tax income compared to what would have been recognized under legacy GAAP due to the fact that these costs deferred under legacy GAAP will no longer impact future earnings under ASC 606. Finally, the Company anticipates that the deferral of revenue related to identified material rights will reduce 2018 revenue under ASC 606 compared to what would have been recognized under legacy GAAP. However, the definitive amounts and associated tax impacts for 2018 revenue and profits have not yet been fully determined. The enhanced disclosure requirements of ASC 606 include discussions on the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This will result in changes to our existing disclosures, as well as new disclosures, which will impact the information reported in our financial statements. |
Changes in Estimates Changes in
Changes in Estimates Changes in Estimates (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | The Company has a Company-wide quarterly Estimate at Completion (“EAC”) process in which management assesses the progress and performance of the Company’s contracts. This process requires management to review each program’s progress towards completion by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated contract revenues and estimated contract costs over the current contract block, and any outstanding contract matters. Risks and opportunities include management’s judgment about the cost associated with a program’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product) and any other contract requirements. Due to the span of years it may take to complete a contract block and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs at completion is complicated and subject to many variables and, accordingly, is subject to change. When adjustments in estimated total contract block revenue or estimated total cost are required, any changes from prior estimates for delivered units are recognized in the current period as a cumulative catch-up adjustment for the inception-to-date effect of such changes. Cumulative catch-up adjustments are driven by several factors including improved production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work, and contract modifications. When the total cost estimate exceeds the total revenue estimate on a contract block, a provision for the entire loss on the contract block is recorded in the period in which the loss is determined. Changes in estimates are summarized below: For the Three Months Ended For the Nine Months Ended Changes in Estimates September 28, 2017 September 29, 2016 September 28, 2017 September 29, 2016 (Unfavorable) Favorable Cumulative Catch-up Adjustment by Segment Fuselage Systems $ (2.4 ) $ (1.9 ) $ 5.3 $ 15.1 Propulsion Systems 2.4 (1.6 ) 4.3 (1.8 ) Wing Systems (2.8 ) (0.8 ) 19.1 18.7 Total (Unfavorable) Favorable Cumulative Catch-up Adjustment $ (2.8 ) $ (4.3 ) $ 28.7 $ 32.0 (Forward Loss) and Changes in Estimates on Loss Programs by Segment Fuselage Systems $ (0.9 ) $ (1.6 ) $ (238.5 ) $ (133.0 ) Propulsion Systems 1.3 (0.5 ) (46.7 ) 6.0 Wing Systems (2.4 ) 0.9 (74.4 ) 5.1 Total Forward Loss $ (2.0 ) $ (1.2 ) $ (359.6 ) $ (121.9 ) Total Change in Estimate $ (4.8 ) $ (5.5 ) $ (330.9 ) $ (89.9 ) EPS Impact (diluted per share based upon statutory rates) $ (0.03 ) $ (0.03 ) $ (1.75 ) $ (0.44 ) |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consists of the following: September 28, December 31, Trade receivables $ 837.7 $ 647.3 Other 14.7 18.4 Less: allowance for doubtful accounts (0.7 ) (5.2 ) Accounts receivable, net $ 851.7 $ 660.5 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | nventories are summarized as follows: September 28, December 31, Raw materials $ 314.6 $ 281.9 Work-in-process 760.4 790.7 Finished goods 34.1 30.9 Product inventory 1,109.1 1,103.5 Capitalized pre-production (1) 85.4 103.5 Deferred production (2) 657.6 717.4 Forward loss provision (3) (488.9 ) (409.1 ) Total inventory, net $ 1,363.2 $ 1,515.3 For contract blocks that have not closed, the following non-product inventory amounts were included in the inventory table above: (1) For the period ended September 28, 2017, includes $73.6 and $7.9 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, includes $83.7 and $15.2 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (2) For the period ended September 28, 2017, includes $629.1 and $126.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, includes $657.2 and $114.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (3) For the period ended September 28, 2017, includes ($263.1) , ($139.4) , and ($76.9) on the A350 XWB, Rolls-Royce BR725, and B787 programs, respectively. For the period ended December 31, 2016, includes ($255.8) and ($140.8) on the A350 XWB and Rolls-Royce BR725 programs, respectively. The forward loss charge recorded on the B787 program in the second quarter of 2017 exceeded the program's inventory balance. The excess of the charge over the program's inventory was classified as a contract liability and reported in other current liabilities on the balance sheet in the amount of $275.9 as of September 28, 2017. Includes a $2.1 reclassification between Work-in-process and Forward loss provision as of December 31, 2016. |
Block and Orders | Significant amortization of capitalized pre-production and deferred production inventory has occurred over the following contract block deliveries and will continue to occur over the following contract blocks: Model Current Block Deliveries Contract Block Quantity A350 XWB 198 800 Rolls-Royce BR725 302 350 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consists of the following: September 28, December 31, Land $ 15.8 $ 14.9 Buildings (including improvements) 693.5 642.5 Machinery and equipment (1) 1,452.1 1,373.9 Tooling 999.6 982.4 Capitalized software (1) 262.1 261.9 Construction-in-progress 239.6 193.7 Total 3,662.7 3,469.3 Less: accumulated depreciation (1,644.0 ) (1,477.7 ) Property, plant and equipment, net $ 2,018.7 $ 1,991.6 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other assets are summarized as follows: September 28, December 31, Intangible assets Patents $ 1.9 $ 1.9 Favorable leasehold interests 6.3 6.3 Total intangible assets 8.2 8.2 Less: Accumulated amortization - patents (1.8 ) (1.8 ) Accumulated amortization - favorable leasehold interest (4.5 ) (4.2 ) Intangible assets, net 1.9 2.2 Deferred financing Deferred financing costs 39.5 38.5 Less: Accumulated amortization - deferred financing costs (33.4 ) (32.2 ) Deferred financing costs, net 6.1 6.3 Other Goodwill - Europe 2.5 2.3 Equity in net assets of affiliates 4.7 4.4 Supply agreements (1) 21.1 17.0 Restricted cash - collateral requirements 20.0 19.9 Deferred Tax Asset - non-current 100.3 128.8 Other 40.7 40.0 Total $ 197.3 $ 220.9 (1) Under two agreements, certain payments accounted for as consideration paid by the Company to a customer and a supplier are being amortized as reductions to net revenues. |
Advance Payments and Deferred35
Advance Payments and Deferred Revenue/Credits (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments And Deferred Revenue Credits Summarized | Advance payments and deferred revenue/credits are summarized by program as follows: September 28, December 31, B787 $ 549.8 $ 834.8 Boeing - All other programs 9.6 18.6 A350 XWB 34.5 116.7 Airbus — All other programs 1.6 2.2 Other 25.9 27.9 Total advance payments and deferred revenue/credits $ 621.4 $ 1,000.2 |
Government Grants (Tables)
Government Grants (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Government Grants [Abstract] | |
Deferred Grant Income Liability Net | Deferred grant income liability, net consists of the following: Balance, December 31, 2016 $ 77.8 Grant liability amortized (13.8 ) Exchange rate 1.9 Total deferred grant income liability, September 28, 2017 $ 65.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Carrying Amount And Estimated Fair Value Of Long Term Debt | The following table presents the carrying amount and estimated fair value of long-term debt: September 28, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Senior unsecured term loan A (including current portion) $ 473.1 $ 473.1 (2) $ 485.2 $ 484.8 (2) Senior unsecured notes due 2022 294.5 306.4 (1) 293.8 307.0 (1) Senior unsecured notes due 2026 297.2 298.2 (1) 296.9 292.4 (1) Malaysian loan — — (2) 1.0 0.9 (2) Total $ 1,064.8 $ 1,077.7 $ 1,076.9 $ 1,085.1 (1) Level 1 Fair Value hierarchy. (2) Level 2 Fair Value hierarchy |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Debt Disclosure [Abstract] | |
Long Term Debt And Capital Lease Obligations Current And Non Current | Total debt shown on the balance sheet is comprised of the following: September 28, 2017 December 31, 2016 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 448.2 $ 24.9 $ 460.3 Senior notes due 2022 — 294.5 — 293.8 Senior notes due 2026 — 297.2 — 296.9 Malaysian term loan — — 1.0 — Present value of capital lease obligations 3.0 21.0 0.8 9.0 Total $ 27.9 $ 1,060.9 $ 26.7 $ 1,060.0 |
Pension and Other Post-Retire39
Pension and Other Post-Retirement Benefits (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Defined Benefit Plan [Abstract] | |
Change in projected benefit obligations | 3. Pension and Other Post-Retirement Benefits Defined Benefit Plans For the Three Months Ended For the Nine Months Ended Components of Net Periodic Pension Expense/(Income) September 28, September 29, September 28, September 29, Service cost $ 0.2 $ 0.2 $ 0.7 $ 0.8 Interest cost 9.4 11.4 28.3 34.5 Expected return on plan assets (18.2 ) (19.7 ) (54.6 ) (59.0 ) Amortization of net loss 0.1 1.6 0.1 4.0 Special termination benefits (1) — — — 10.9 Net periodic pension (income) expense $ (8.5 ) $ (6.5 ) $ (25.5 ) $ (8.8 ) (1) Special termination benefits related to early retirement incentives offered as part of a voluntary r |
Equity (Tables)
Equity (Tables) - shares | 9 Months Ended | |
Sep. 28, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Shares Authorized | 210,000,000 | |
Common stock, shares previously authorized | 360,000,000 | |
Basic and Diluted Earnings per share | The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended September 28, 2017 September 29, 2016 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common stockholders $ 147.1 115.8 $ 1.27 $ 144.9 124.4 $ 1.16 Income allocated to participating securities 0.1 0.1 0.2 0.1 Net income $ 147.2 $ 145.1 Diluted potential common shares 1.1 0.8 Diluted EPS Net income $ 147.2 117.0 $ 1.26 $ 145.1 125.3 $ 1.16 For the Nine Months Ended September 28, 2017 September 29, 2016 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common shareholders $ 231.9 117.8 $ 1.97 $ 361.2 128.2 $ 2.82 Income allocated to participating securities 0.2 0.1 0.3 0.1 Net income $ 232.1 $ 361.5 Diluted potential common shares 1.1 0.7 Diluted EPS Net income $ 232.1 119.0 $ 1.95 $ 361.5 129.0 $ 2.80 | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of September 28, 2017 December 31, 2016 Pension $ (98.5 ) $ (98.5 ) SERP/Retiree medical 19.0 20.5 Foreign currency impact on long term intercompany loan (15.2 ) (19.1 ) Currency translation adjustment (58.6 ) (89.8 ) Total accumulated other comprehensive loss $ (153.3 ) $ (186.9 ) | |
Class A [Member] | ||
Class Of Stock [Line Items] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Class B [Member] | ||
Class Of Stock [Line Items] | ||
Common stock, shares eliminated | 150,000,000 |
Commitments, Contingencies an41
Commitments, Contingencies and Guarantees (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Commitments Contingencies And Guarantees [Abstract] | |
Service warranty roll forward | The following is a roll forward of the service warranty and extraordinary rework balance at September 28, 2017 : Balance, December 31, 2016 $ 163.7 Charges to costs and expenses 5.4 Payouts (3.6 ) Exchange rate 0.8 Balance, September 28, 2017 $ 166.3 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income Expense Net | Other income (expense), net is summarized as follows: For the Three Months Ended For the Nine Months Ended September 28, September 29, September 28, September 29, Kansas Development Finance Authority bond $ 0.6 $ 0.8 $ 2.3 $ 2.7 Rental and miscellaneous income (loss) 0.5 0.2 (0.9 ) 0.3 Interest income 1.9 1.0 4.4 2.7 Foreign currency losses (1.1 ) (2.3 ) (1.2 ) (14.4 ) Total $ 1.9 $ (0.3 ) $ 4.6 $ (8.7 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The following table shows segment revenues and operating income for the three and nine months ended September 28, 2017 and September 29, 2016 : Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Segment Revenues Fuselage Systems $ 957.0 $ 880.3 $ 2,812.1 $ 2,679.7 Propulsion Systems 407.9 453.0 1,250.7 1,373.3 Wing Systems 382.2 376.8 1,201.7 1,161.5 All Other 1.1 1.3 3.9 8.4 $ 1,748.2 $ 1,711.4 $ 5,268.4 $ 5,222.9 Segment Operating Income Fuselage Systems (1) $ 148.3 $ 142.5 $ 218.5 $ 340.9 Propulsion Systems (1) 74.2 77.5 188.9 250.9 Wing Systems (1) 50.9 51.1 140.2 174.7 All Other 0.2 0.6 (0.5 ) 2.0 273.6 271.7 547.1 768.5 Corporate SG&A (48.8 ) (52.2 ) (146.8 ) (172.4 ) Impact of severe weather event — — (19.9 ) — Research and development (9.5 ) (5.4 ) (21.2 ) (15.9 ) Unallocated cost of sales (2) (3.9 ) 0.3 (17.0 ) (16.0 ) Total Operating Income $ 211.4 $ 214.4 $ 342.2 $ 564.2 (1) Includes forward losses, changes in estimates on loss programs, and cumulative catch-up adjustments. These changes in estimates are further detailed in Note 3, Changes in Estimates. (2) Includes $1.5 and $7.7 of warranty expense for the three months ended September 28, 2017 and September 29, 2016 , respectively and $3.2 and $12.0 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. |
Condensed Consolidating Finan44
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 28, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Income Statement | Condensed Consolidating Statements of Operations For the Three Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 1,573.0 $ 311.8 $ (136.6 ) $ 1,748.2 Operating costs and expenses Cost of sales — 1,331.1 284.0 (136.6 ) 1,478.5 Selling, general and administrative 3.9 41.3 3.6 — 48.8 Research and development — 8.8 0.7 — 9.5 Total operating costs and expenses 3.9 1,381.2 288.3 (136.6 ) 1,536.8 Operating (loss) income (3.9 ) 191.8 23.5 — 211.4 Interest expense and financing fee amortization — (10.5 ) (1.3 ) 1.4 (10.4 ) Other income (expense), net — 4.0 (0.7 ) (1.4 ) 1.9 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.9 ) 185.3 21.5 — 202.9 Income tax benefit (provision) 0.8 (53.0 ) (3.7 ) — (55.9 ) (Loss) income before equity in net income of affiliate and subsidiaries (3.1 ) 132.3 17.8 — 147.0 Equity in net income of affiliate 0.2 — 0.2 (0.2 ) 0.2 Equity in net income of subsidiaries 150.1 17.7 — (167.8 ) — Net income 147.2 150.0 18.0 (168.0 ) 147.2 Other comprehensive income (loss) 13.8 13.8 14.3 (28.1 ) 13.8 Comprehensive income (loss) $ 161.0 $ 163.8 $ 32.3 $ (196.1 ) $ 161.0 Condensed Consolidating Statements of Operations For the Three Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 1,549.3 $ 308.7 $ (146.6 ) $ 1,711.4 Operating costs and expenses Cost of sales — 1,298.8 287.2 (146.6 ) 1,439.4 Selling, general and administrative 2.2 46.6 3.4 — 52.2 Research and development — 5.0 0.4 — 5.4 Total operating costs and expenses 2.2 1,350.4 291.0 (146.6 ) 1,497.0 Operating (loss) income (2.2 ) 198.9 17.7 — 214.4 Interest expense and financing fee amortization — (12.1 ) (1.9 ) 1.8 (12.2 ) Other income (expense), net — 4.0 (2.5 ) (1.8 ) (0.3 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (2.2 ) 190.8 13.3 — 201.9 Income tax benefit (provision) 0.6 (55.8 ) (2.1 ) — (57.3 ) (Loss) income before equity in net income of affiliate and subsidiaries (1.6 ) 135.0 11.2 — 144.6 Equity in net income of affiliate 0.5 — 0.5 (0.5 ) 0.5 Equity in net income of subsidiaries 146.2 11.2 — (157.4 ) — Net income 145.1 146.2 11.7 (157.9 ) 145.1 Other comprehensive (loss) income (8.5 ) (8.5 ) (17.7 ) 26.2 (8.5 ) Comprehensive income (loss) $ 136.6 $ 137.7 $ (6.0 ) $ (131.7 ) $ 136.6 |
Condensed Balance Sheet | Condensed Consolidating Statements of Operations For the Nine Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 4,701.1 $ 1,025.4 $ (458.1 ) $ 5,268.4 Operating costs and expenses Cost of sales — 4,282.9 913.5 (458.1 ) 4,738.3 Selling, general and administrative 8.8 127.3 10.7 — 146.8 Impact of severe weather event — 19.9 — — 19.9 Research and development — 19.4 1.8 — 21.2 Total operating costs and expenses 8.8 4,449.5 926.0 (458.1 ) 4,926.2 Operating (loss) income (8.8 ) 251.6 99.4 — 342.2 Interest expense and financing fee amortization — (30.1 ) (4.5 ) 4.5 (30.1 ) Other income (expense), net — 9.8 (0.7 ) (4.5 ) 4.6 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (8.8 ) 231.3 94.2 — 316.7 Income tax benefit (provision) 2.7 (70.2 ) (17.4 ) — (84.9 ) (Loss) income before equity in net income of affiliate and subsidiaries (6.1 ) 161.1 76.8 — 231.8 Equity in net income of affiliate 0.3 — 0.3 (0.3 ) 0.3 Equity in net income of subsidiaries 237.9 76.8 — (314.7 ) — Net income 232.1 237.9 77.1 (315.0 ) 232.1 Other comprehensive (loss) income 33.6 33.6 35.0 (68.6 ) 33.6 Comprehensive income (loss) $ 265.7 $ 271.5 $ 112.1 $ (383.6 ) $ 265.7 Condensed Consolidating Statements of Operations For the Nine Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 4,711.7 $ 984.5 $ (473.3 ) $ 5,222.9 Operating costs and expenses Cost of sales — 4,047.0 896.7 (473.3 ) 4,470.4 Selling, general and administrative 6.0 154.4 12.0 — 172.4 Research and development — 14.4 1.5 — 15.9 Total operating costs and expenses 6.0 4,215.8 910.2 (473.3 ) 4,658.7 Operating (loss) income (6.0 ) 495.9 74.3 — 564.2 Interest expense and financing fee amortization — (47.2 ) (6.0 ) 5.7 (47.5 ) Other income (expense), net — 11.5 (14.5 ) (5.7 ) (8.7 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (6.0 ) 460.2 53.8 — 508.0 Income tax benefit (provision) 1.8 (140.1 ) (9.5 ) — (147.8 ) (Loss) income before equity in net income of affiliate and subsidiaries (4.2 ) 320.1 44.3 — 360.2 Equity in net income of affiliate 1.3 — 1.3 (1.3 ) 1.3 Equity in net income of subsidiaries 364.4 44.3 — (408.7 ) — Net income 361.5 364.4 45.6 (410.0 ) 361.5 Other comprehensive (loss) income (42.9 ) (42.9 ) (44.5 ) 87.4 (42.9 ) Comprehensive income (loss) $ 318.6 $ 321.5 $ 1.1 $ (322.6 ) $ 318.6 Condensed Consolidating Balance Sheet September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 687.8 $ 38.8 $ — $ 726.6 Restricted cash — 3.2 — — 3.2 Accounts receivable, net — 876.9 330.4 (355.6 ) 851.7 Inventory, net — 925.1 438.1 — 1,363.2 Other current assets — 63.7 3.6 — 67.3 Total current assets — 2,556.7 810.9 (355.6 ) 3,012.0 Property, plant and equipment, net — 1,499.4 519.3 — 2,018.7 Pension assets, net — 293.8 15.4 — 309.2 Investment in subsidiary 1,759.4 677.0 — (2,436.4 ) — Other assets — 333.6 121.1 (257.4 ) 197.3 Total assets $ 1,759.4 $ 5,360.5 $ 1,466.7 $ (3,049.4 ) $ 5,537.2 Liabilities Accounts payable $ — $ 685.9 $ 431.8 $ (355.6 ) $ 762.1 Accrued expenses — 231.8 26.5 — 258.3 Profit sharing — 63.0 2.7 — 65.7 Current portion of long-term debt — 27.1 0.8 — 27.9 Advance payments, short-term — 131.0 — — 131.0 Deferred revenue and other deferred credits, short-term — 66.8 1.5 — 68.3 Deferred grant income liability - current — — 21.0 — 21.0 Other current liabilities — 597.2 4.5 — 601.7 Total current liabilities — 1,802.8 488.8 (355.6 ) 1,936.0 Long-term debt — 1,052.4 165.3 (156.8 ) 1,060.9 Advance payments, long-term — 255.6 — — 255.6 Pension/OPEB obligation — 40.3 — — 40.3 Deferred grant income liability - non-current — — 44.9 — 44.9 Deferred revenue and other deferred credits — 163.6 2.9 — 166.5 Other liabilities — 366.3 7.9 (100.6 ) 273.6 Total equity 1,759.4 1,679.5 756.9 (2,436.4 ) 1,759.4 Total liabilities and stockholders’ equity $ 1,759.4 $ 5,360.5 $ 1,466.7 $ (3,049.4 ) $ 5,537.2 Condensed Consolidating Balance Sheet December 31, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 680.1 $ 17.6 $ — $ 697.7 Accounts receivable, net — 785.0 249.4 (373.9 ) 660.5 Inventory, net — 1,058.8 456.5 — 1,515.3 Other current assets — 29.0 7.9 — 36.9 Total current assets — 2,552.9 731.4 (373.9 ) 2,910.4 Property, plant and equipment, net — 1,462.3 529.3 — 1,991.6 Pension assets, net — 268.1 14.2 — 282.3 Investment in subsidiary 1,928.8 544.4 — (2,473.2 ) — Other assets — 398.9 101.4 (279.4 ) 220.9 Total assets $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Liabilities Accounts payable $ — $ 527.0 $ 426.6 $ (373.9 ) $ 579.7 Accrued expenses — 192.8 23.4 — 216.2 Profit sharing — 97.2 4.2 — 101.4 Current portion of long-term debt — 25.1 1.6 — 26.7 Advance payments, short-term — 199.3 — — 199.3 Deferred revenue and other deferred credits, short-term — 310.8 1.3 — 312.1 Deferred grant income liability - current — — 14.4 — 14.4 Other current liabilities — 94.2 0.2 — 94.4 Total current liabilities — 1,446.4 471.7 (373.9 ) 1,544.2 Long-term debt — 1,052.5 206.9 (199.4 ) 1,060.0 Advance payments, long-term — 342.0 — — 342.0 Pension/OPEB obligation — 43.9 — — 43.9 Deferred grant income liability - non-current — — 63.4 — 63.4 Deferred revenue and other deferred credits — 143.4 3.4 — 146.8 Other liabilities — 349.5 6.6 (80.0 ) 276.1 Total equity 1,928.8 1,848.9 624.3 (2,473.2 ) 1,928.8 Total liabilities and stockholders’ equity $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 |
Condensed Cash Flow Statement | Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 680.1 $ 17.6 $ — $ 697.7 Accounts receivable, net — 785.0 249.4 (373.9 ) 660.5 Inventory, net — 1,058.8 456.5 — 1,515.3 Other current assets — 29.0 7.9 — 36.9 Total current assets — 2,552.9 731.4 (373.9 ) 2,910.4 Property, plant and equipment, net — 1,462.3 529.3 — 1,991.6 Pension assets, net — 268.1 14.2 — 282.3 Investment in subsidiary 1,928.8 544.4 — (2,473.2 ) — Other assets — 398.9 101.4 (279.4 ) 220.9 Total assets $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Liabilities Accounts payable $ — $ 527.0 $ 426.6 $ (373.9 ) $ 579.7 Accrued expenses — 192.8 23.4 — 216.2 Profit sharing — 97.2 4.2 — 101.4 Current portion of long-term debt — 25.1 1.6 — 26.7 Advance payments, short-term — 199.3 — — 199.3 Deferred revenue and other deferred credits, short-term — 310.8 1.3 — 312.1 Deferred grant income liability - current — — 14.4 — 14.4 Other current liabilities — 94.2 0.2 — 94.4 Total current liabilities — 1,446.4 471.7 (373.9 ) 1,544.2 Long-term debt — 1,052.5 206.9 (199.4 ) 1,060.0 Advance payments, long-term — 342.0 — — 342.0 Pension/OPEB obligation — 43.9 — — 43.9 Deferred grant income liability - non-current — — 63.4 — 63.4 Deferred revenue and other deferred credits — 143.4 3.4 — 146.8 Other liabilities — 349.5 6.6 (80.0 ) 276.1 Total equity 1,928.8 1,848.9 624.3 (2,473.2 ) 1,928.8 Total liabilities and stockholders’ equity $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 28, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 525.7 $ 98.9 $ — $ 624.6 Investing activities Purchase of property, plant and equipment — (122.1 ) (16.6 ) — (138.7 ) Proceeds from sale of assets — 0.3 — — 0.3 Net cash used in investing activities — (121.8 ) (16.6 ) — (138.4 ) Financing activities Principal payments of debt — (0.7 ) (1.6 ) — (2.3 ) Payment on term loan — (12.5 ) — — (12.5 ) Proceeds (payments) from intercompany debt — 65.1 (65.1 ) — — Taxes paid related to net share settlement of awards — (13.8 ) — — (13.8 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Proceeds from financing under the New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 402.1 (402.1 ) — — — Purchase of treasury stock (402.1 ) — — — (402.1 ) Change in restricted cash — (3.2 ) — — (3.2 ) Proceeds (payments) from subsidiary for dividends paid 35.7 (35.7 ) — — — Dividends paid (35.7 ) — — (35.7 ) Net cash used in financing activities — (396.2 ) (66.7 ) — (462.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.6 — 5.6 Net increase in cash and cash equivalents for the period — 7.7 21.2 — 28.9 Cash and cash equivalents, beginning of period — 680.1 17.6 — 697.7 Cash and cash equivalents, end of period $ — $ 687.8 $ 38.8 $ — $ 726.6 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended September 29, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 481.3 $ 93.1 $ — $ 574.4 Investing activities Purchase of property, plant and equipment — (121.4 ) (35.4 ) — (156.8 ) Proceeds from sale of assets — 0.6 — — 0.6 Other — 0.4 (0.4 ) — — Net cash used in investing activities — (120.4 ) (35.8 ) — (156.2 ) Financing activities Proceeds from issuance of bonds — 299.8 — — 299.8 Principal payments of debt — (14.4 ) (2.3 ) — (16.7 ) Payments on bonds — (300.0 ) — — (300.0 ) Excess tax benefits from share-based payment arrangements — (0.1 ) — — (0.1 ) Proceeds (payments) from intercompany debt — 51.0 (51.0 ) — — Debt issuance and financing costs — (17.2 ) — — (17.2 ) Taxes paid related to net share settlement of awards — (15.2 ) — — (15.2 ) Proceeds (payments) from subsidiary for purchase of treasury stock 649.6 (649.6 ) — — — Purchase of treasury stock (649.6 ) — — — (649.6 ) Net cash used in financing activities — (645.7 ) (53.3 ) — (699.0 ) Effect of exchange rate changes on cash and cash equivalents — — (6.1 ) — (6.1 ) Net decrease in cash and cash equivalents for the period — (284.8 ) (2.1 ) — (286.9 ) Cash and cash equivalents, beginning of period — 894.2 63.1 — 957.3 Cash and cash equivalents, end of period $ — $ 609.4 $ 61.0 $ — $ 670.4 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ / shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | $ (359.6) | |||
Cumulative Catch Up Adjustment | $ 28.7 | $ 32 | ||
Changes in Contract Estimates, aggregate, Affecting earnings from Continuing Operations, per Share diluted | $ (30) | $ (30) | $ (1,750) | $ (440) |
Change In Accounting Estimate, aggregate | $ (4.8) | $ (5.5) | $ (330.9) | $ (89.9) |
Reduction In Previously Reported Forward-Loss | (121.9) | |||
Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (2.8) | (4.3) | ||
Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (1.2) | |||
Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (2) | |||
Inventory Type B787 [Member] | ||||
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | 352.8 | |||
Fuselage Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | (238.5) | |||
Cumulative Catch Up Adjustment | 5.3 | 15.1 | ||
Reduction In Previously Reported Forward-Loss | (133) | |||
Fuselage Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (2.4) | (1.9) | ||
Fuselage Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (1.6) | |||
Fuselage Systems [Member] | Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (0.9) | |||
Wing Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Cumulative Catch Up Adjustment | 19.1 | 18.7 | ||
Reduction In Previously Reported Forward-Loss | (74.4) | 5.1 | ||
Wing Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (2.8) | (0.8) | ||
Wing Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (2.4) | 0.9 | ||
Propulsion Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | 6 | |||
Cumulative Catch Up Adjustment | 4.3 | $ (1.8) | ||
Reduction In Previously Reported Forward-Loss | $ (46.7) | |||
Change in Accounting Estimate - Contract Accounting | 1.3 | |||
Propulsion Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | $ 2.4 | (1.6) | ||
Propulsion Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | $ (0.5) |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Accounts Receivable, Net, Current [Abstract] | ||
Trade receivables | $ 837.7 | $ 647.3 |
Other | 14.7 | 18.4 |
Less: allowance for doubtful accounts | (0.7) | (5.2) |
Accounts receivable, net | $ 851.7 | $ 660.5 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Summary Of Inventories [Abstract] | ||
Raw materials | $ 314.6 | $ 281.9 |
Work-in-process | 760.4 | 790.7 |
Finished goods | 34.1 | 30.9 |
Product inventory | 1,109.1 | 1,103.5 |
Capitalized pre-production | 85.4 | 103.5 |
Deferred Production Costs | 657.6 | 717.4 |
Forward loss provision | (488.9) | (409.1) |
Total inventory, net | $ 1,363.2 | $ 1,515.3 |
Inventory (Details 1)
Inventory (Details 1) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 29, 2016 | Sep. 28, 2017 | Dec. 31, 2016 | |
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Capitalized pre-production | $ 85.4 | $ 103.5 | |
Deferred Production Costs | 657.6 | 717.4 | |
Forward loss provision | (488.9) | (409.1) | |
Total inventory, net | 1,363.2 | 1,515.3 | |
Contract Liability | 275.9 | ||
Reduction In Previously Reported Forward-Loss | $ (121.9) | ||
B787 [Member] | |||
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Forward loss provision | (76.9) | ||
Airbus Three Hundred Fifty XWB [Member] | |||
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Capitalized pre-production | 73.6 | 83.7 | |
Deferred Production Costs | 629.1 | 657.2 | |
Forward loss provision | (263.1) | (255.8) | |
Rolls-Royce | |||
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Capitalized pre-production | 7.9 | 15.2 | |
Deferred Production Costs | 126.3 | 114.6 | |
Forward loss provision | $ (139.4) | $ (140.8) |
Inventory (Details 2)
Inventory (Details 2) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 28, 2017USD ($)ship_set | Sep. 28, 2017USD ($)pure / $ | |
Inventories [Line Items] | ||
Reclassification - inventory | $ | $ 2.1 | $ 2.1 |
Airbus Three Hundred Fifty XWB [Member] | ||
Block And Order Detail [Abstract] | ||
Contract Block Quantity | 800 | |
Contract Block Deliveries | 198 | |
Rolls-Royce | ||
Block And Order Detail [Abstract] | ||
Contract Block Quantity | 350 | |
Contract Block Deliveries | 302 |
Property, Plant and Equipment50
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Property, plant and equipment, net | ||
Land | $ 15.8 | $ 14.9 |
Buildings (including improvements) | 693.5 | 642.5 |
Machinery and equipment (1) | 1,452.1 | 1,373.9 |
Tooling | 999.6 | 982.4 |
Capitalized software (1) | 262.1 | 261.9 |
Construction-in-progress | 239.6 | 193.7 |
Total | 3,662.7 | 3,469.3 |
Less: accumulated depreciation | (1,644) | (1,477.7) |
Property, plant and equipment, net | $ 2,018.7 | $ 1,991.6 |
Property, Plant and Equipment51
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Property Plant And Equipment Textuals [Abstract] | ||||
Repair and maintenance costs | $ 37.6 | $ 31.2 | $ 88.9 | $ 85.5 |
Depreciation expense related to capitalized software | 4.5 | $ 4.5 | 14.8 | $ 13.4 |
Reclassification - PPE | $ 6.9 | $ 6.9 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Intangible assets | ||
Total intangible assets | $ 8.2 | $ 8.2 |
Intangible assets, net | 1.9 | 2.2 |
Deferred financing costs | 39.5 | 38.5 |
Less: Accumulated amortization-deferred financing costs | (33.4) | (32.2) |
Deferred financing costs, net | 6.1 | 6.3 |
Goodwill - Europe | 2.5 | 2.3 |
Equity in net assets of affiliates | 4.7 | 4.4 |
Customer Supply Agreement | 21.1 | 17 |
Restricted Cash and Investments, Noncurrent | 20 | 19.9 |
Deferred Tax Assets, Net, Noncurrent | 100.3 | 128.8 |
Other | 40.7 | 40 |
Total | 197.3 | 220.9 |
Patents [Member] | ||
Intangible assets | ||
Total intangible assets | 1.9 | 1.9 |
Less: Accumulated amortization | (1.8) | (1.8) |
Favorable Leasehold Interests [Member] | ||
Intangible assets | ||
Total intangible assets | 6.3 | 6.3 |
Less: Accumulated amortization | $ (4.5) | $ (4.2) |
Advance Payments and Deferred53
Advance Payments and Deferred Revenue/Credits (Details) $ in Millions | 9 Months Ended | ||
Sep. 28, 2017USD ($)pure / $ | Sep. 29, 2016USD ($) | Dec. 31, 2016USD ($) | |
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | $ 621.4 | $ 1,000.2 | |
Increase (Decrease) in Customer Advances | 154.7 | $ 101.8 | |
B737 [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | 9.6 | 18.6 | |
B787 [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | 549.8 | 834.8 | |
Increase (Decrease) in Customer Advances | 235 | ||
Airbus Three Hundred Fifty XWB [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | 34.5 | 116.7 | |
Airbus - All other platforms [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | 1.6 | 2.2 | |
Other Inventory [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Advance Payments And Deferred Revenue Credits | $ 25.9 | $ 27.9 | |
Minimum [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Boeing Advance Payment ShipSet | 1,001 | ||
Maximum [Member] | |||
Advance payments and deferred revenue/credits summarized | |||
Boeing Advance Payment ShipSet | 1,120 |
Government Grants (Details)
Government Grants (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2017USD ($) | |
Government Grants [Abstract] | |
Deferred Grant Income Liability beginning balance | $ 77.8 |
Deferred Grant Income Liability Net [Abstract] | |
Grant Liability Recorded | (13.8) |
Deferred Grant Income Liability | 65.9 |
Exchange Rate Effect On Deferred Grant Income Liability | $ 1.9 |
Government Grants (Details Text
Government Grants (Details Textuals) | 9 Months Ended |
Sep. 28, 2017 | |
Government Grants Textuals [Abstract] | |
Deferred Grant Income Amortization Period | 10 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | $ 1,064.8 | $ 1,076.9 |
Fair Value | 1,077.7 | 1,085.1 |
Secured Debt Term A [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt, Current | 24.9 | 24.9 |
Secured Long-term Debt, Noncurrent | 448.2 | 460.3 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 473.1 | 485.2 |
Fair Value | 473.1 | 484.8 |
Senior unsecured notes due 2022 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 294.5 | 293.8 |
Fair Value | 306.4 | 307 |
SeniorUnsecuredNotesDueTwoThousandAndTwentySix [Member] [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 297.2 | 296.9 |
Fair Value | 298.2 | 292.4 |
Malaysian loan [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 0 | 1 |
Fair Value | $ 0 | $ 0.9 |
Derivative and Hedging Activi57
Derivative and Hedging Activities (Details) $ in Millions | Sep. 28, 2017USD ($) |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 250 |
Derivative and Hedging Activi58
Derivative and Hedging Activities (Details 1) - Interest Rate Swap [Member] $ in Millions | Sep. 28, 2017USD ($) |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 250 |
Derivative, Fixed Interest Rate | 0.00% |
Derivative and Hedging Activi59
Derivative and Hedging Activities (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2017 | Sep. 29, 2016 | |
Derivatives Fair Value [Line Items] | ||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | $ 1.1 | $ 0 |
Interest Rate Derivative Liabilities, at Fair Value | $ 1.1 | |
LIBOR floor | 0.75% | |
Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 250 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Loans Payable to Bank, Current | $ 0 | $ 1 |
Loans Payable to Bank, Noncurrent | 0 | 0 |
Capital Lease Obligations, Current | 3 | 0.8 |
Capital Lease Obligations, Noncurrent | 21 | 9 |
Long-term Debt and Capital Lease Obligations, Current | 27.9 | 26.7 |
Long-term Debt and Capital Lease Obligations | 1,060.9 | 1,060 |
Secured Debt Term A [Member] | ||
Debt Disclosure [Abstract] | ||
Secured Debt, Current | 24.9 | 24.9 |
Secured Long-term Debt, Noncurrent | 448.2 | 460.3 |
Senior unsecured notes due 2022 [Member] | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Senior Notes, Current | 0 | 0 |
Senior Notes, Noncurrent | 294.5 | 293.8 |
Senior Unsecured Notes Due 2026 [Member] | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Senior Notes, Current | 0 | 0 |
Senior Notes, Noncurrent | $ 297.2 | $ 296.9 |
Debt (Details Textual)
Debt (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 28, 2017USD ($) | Sep. 29, 2016USD ($) | Sep. 28, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 01, 2016USD ($) | Mar. 18, 2015USD ($) | Mar. 18, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650,000 | $ 650,000 | |||||
Senior Secured Credit Facility Term Libor Floor | 0.75% | ||||||
MinimumAdjustmentMarginOnLibor | 1.125% | ||||||
MaximumAdjustmentMarginOnLibor | 2.00% | ||||||
Minimum Adjustment Margin on Base Rate | 0.125% | ||||||
Maximum Adjustment Margin on Base Rate | 1.00% | ||||||
Proceeds from (Payments for) Other Financing Activities | 0 | $ 0 | |||||
Optional Revolver Commitment | 500,000 | $ 500,000 | |||||
Restricted Cash and Cash Equivalents | 3,200 | 3,200 | $ 0 | ||||
Senior unsecured notes due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||
Senior Notes | 294,500 | $ 294,500 | |||||
Maturity Date 2022 Notes | Mar. 15, 2022 | ||||||
Senior Notes, Noncurrent | 294,500 | $ 294,500 | 293,800 | ||||
Senior Notes, Current | 0 | $ 0 | 0 | ||||
Senior Unsecured Notes Due 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 300,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||||
Maturity Date 2022 Notes | Jun. 15, 2026 | ||||||
Senior Notes, Noncurrent | 297,200 | $ 297,200 | 296,900 | ||||
Senior Notes, Current | $ 0 | 0 | $ 0 | ||||
Amended and Restated Credit Agreement Due 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||
Maturity Date 2012 Senior Secured Credit Facility Term | Jun. 4, 2021 | ||||||
Credit Agreement Margin on LIBOR | 0.015 | ||||||
Margin On Base Rate Borrowing Term Loan | 0.50% | ||||||
Outstanding Balance Term Loan | $ 475,000 | 475,000 | |||||
Debt Instrument, Periodic Payment, Principal | 6,250 | ||||||
Carry Value Term Loan | $ 473,100 | $ 473,100 |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Other Benefits [Member] | ||||
Pension and Other Post-Retirement Benefits | ||||
Service cost | $ 0.3 | $ 0.5 | $ 0.9 | $ 1.4 |
Interest cost | 0.3 | 0.5 | 0.9 | 1.6 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.2) | (0.2) | (0.7) | (0.7) |
Amortization of net loss | (0.5) | 0 | (1.6) | 0 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0 | 3.1 |
Net periodic pension income | (0.1) | 0.8 | (0.5) | 5.4 |
Pension Plan [Member] | ||||
Pension and Other Post-Retirement Benefits | ||||
Service cost | 0.2 | 0.2 | 0.7 | 0.8 |
Interest cost | 9.4 | 11.4 | 28.3 | 34.5 |
Expected return on plan assets | (18.2) | (19.7) | (54.6) | (59) |
Amortization of net loss | 0.1 | 1.6 | 0.1 | 4 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0 | 10.9 |
Net periodic pension income | (8.5) | $ (6.5) | (25.5) | $ (8.8) |
U.K. pension plan [Member] | Pension Plan [Member] | ||||
Pension [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | 0 | 0 | ||
Domestic Plan [Member] | Supplemental Employee Retirement Plan [Member] | ||||
Pension [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 8.6 | $ 8.6 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ 15,900,000 | $ 35,700,000 | ||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Stock Compensation The Company recognized net stock compensation expense of $4.8 and $6.3 for the three months ended September 28, 2017 and September 29, 2016 , respectively, and $15.9 and $35.2 for the nine months ended September 28, 2017 and September 29, 2016 , respectively. The additional stock compensation expense recognized during 2016 was related to executive retirements and severance recorded in the second quarter of 2016. During the nine months ended September 28, 2017 , 650,899 shares of class A common stock were granted under the Company's stock compensation plan with aggregate grant date fair values of $35.4 . Additionally, awards of 671,545 shares of class A common stock granted under the Company's stock compensation plans with an aggregate grant date fair value of $25.7 vested during the nine months ended September 28, 2017 . | |||
Class A [Member] | Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 650,899 | |||
Fair Value Of Shares Granted | $ 35,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 671,545 | |||
Grant date value of shares vested | $ 25,700,000 | |||
Selling General And Administrative Expense [Member] | LTIA AND Prior Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation | $ 4,800,000 | $ 6,300,000 | $ 15,900,000 | $ 35,200,000 |
Income Tax (details)
Income Tax (details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Dec. 31, 2016 | |
Income Taxes Textuals [Abstract] | |||
Deferred tax assets net total | $ (100.3) | $ (128.7) | |
Valuation Allowance [Line Items] | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 0 | $ (0.1) | |
Effective tax rate | 26.80% | 29.10% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||||
Common Stock, Shares Authorized | 210,000,000 | 210,000,000 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0 | $ 0.30 | $ 0 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (153.3) | $ (153.3) | $ (186.9) | ||
Basic EPS | |||||
Income available to common shareholders | $ 147.1 | $ 144.9 | $ 231.9 | $ 361.2 | |
Income available to common shareholders, shares | 115,800,000 | 124,400,000 | 117,800,000 | 128,200,000 | |
Income available to common shareholders, per share amount | $ 1.27 | $ 1.16 | $ 1.97 | $ 2.82 | |
Income allocated to participating securities | $ 0.1 | $ 0.2 | $ 0.2 | $ 0.3 | |
Income allocated to participating securities, shares | 100,000 | 100,000 | 100,000 | 100,000 | |
Net income | $ 147.2 | $ 145.1 | $ 232.1 | $ 361.5 | |
Diluted potential common shares | 1,100,000 | 800,000 | 1,100,000 | 700,000 | |
Diluted EPS | |||||
Net income | $ 147.2 | $ 145.1 | $ 232.1 | $ 361.5 | |
Shares | 117,000,000 | 125,300,000 | 119,000,000 | 129,000,000 | |
Per share amount | $ 1.26 | $ 1.16 | $ 1.95 | $ 2.80 | |
Equity Textuals [Abstract] | |||||
Common shares outstanding issued but unvested | 1,500,000 | 1,600,000 | 1,500,000 | 1,600,000 | |
Noncontrolling interest | $ 0.5 | $ 0.5 | 0.5 | ||
Pension [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (98.5) | (98.5) | (98.5) | ||
SERP and Retiree medical [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 19 | 19 | 20.5 | ||
Foreign currency impact on long term intercompany loan [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (15.2) | (15.2) | (19.1) | ||
Currency translation adjustment [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (58.6) | $ (58.6) | $ (89.8) |
Commitments, Contingencies an66
Commitments, Contingencies and Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 28, 2017 | Sep. 28, 2017 | Dec. 31, 2016 | |
Commitments Contingencies And Guarantees [Abstract] | |||
Loss Contingency Accrual | $ 0 | $ 0 | $ 25 |
net present value of alleged amount of UAW arbitration liability | 39 | ||
Litigation settlement amount against Boeing | 90 | ||
Attorneys fees sought by Boeing related to UAW arbitration | 10 | ||
Current Period Forward Loss Recorded | (359.6) | ||
Service warranty roll forward | |||
Product Warranty And Extraordinary Rework | 163.7 | ||
Charges to costs and expenses | 5.4 | ||
Product Warranty Accrual, Payments | (3.6) | ||
Product Warranty And Extraordinary Rework | 166.3 | 166.3 | 163.7 |
Product Warranty Extraordinary Rework Accrual Currency Translation Increase Decrease | 0.8 | ||
Commitments Contingencies And Guarantees Textuals [Abstract] | |||
Outstanding amount of guarantees | 20.5 | 20.5 | 20.7 |
Restricted Cash and Investments, Noncurrent | 20 | 20 | 19.9 |
Product Liability Accrual, Component Amount | 99.7 | $ 99.7 | 99 |
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | $ 218.3 | $ 209 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Kansas Development Finance Authority bond | $ 0.6 | $ 0.8 | $ 2.3 | $ 2.7 |
Rental and miscellaneous income | (0.5) | (0.2) | 0.9 | (0.3) |
Interest Income, Other | 1.9 | 1 | 4.4 | 2.7 |
Foreign currency losses | (1.1) | (2.3) | (1.2) | (14.4) |
Total | $ 1.9 | $ (0.3) | $ 4.6 | $ (8.7) |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2017USD ($) | Sep. 29, 2016USD ($) | Sep. 28, 2017USD ($)segment | Sep. 29, 2016USD ($) | |
Segment Revenues | ||||
Revenues | $ 1,748.2 | $ 1,711.4 | $ 5,268.4 | $ 5,222.9 |
Segment Operating Income | ||||
Business Segment Operating Income | 273.6 | 271.7 | 547.1 | 768.5 |
Segment Information Unallocated Corporate Selling General And Administrative | (48.8) | (52.2) | (146.8) | (172.4) |
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | (19.9) | 0 |
Segment Information Unallocated Research And Development | (9.5) | (5.4) | (21.2) | (15.9) |
Segment Information Unallocated Cost Of Sales | (3.9) | 0.3 | (17) | (16) |
Operating income | 211.4 | 214.4 | 342.2 | 564.2 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | $ (359.6) | |||
Reduction In Previously Reported Forward-Loss | (121.9) | |||
Number Of Principal Segments | segment | 3 | |||
Cumulative Catch Up Adjustment | $ 28.7 | 32 | ||
Product Warranty Expense | 1.5 | 7.7 | 3.2 | 12 |
Inventory Write-down | 11.5 | |||
Early Retirement Incentive | 11.8 | |||
Fuselage Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 957 | 880.3 | 2,812.1 | 2,679.7 |
Segment Operating Income | ||||
Business Segment Operating Income | 148.3 | 142.5 | 218.5 | 340.9 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | (238.5) | |||
Reduction In Previously Reported Forward-Loss | (133) | |||
Cumulative Catch Up Adjustment | 5.3 | 15.1 | ||
Propulsion Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 407.9 | 453 | 1,250.7 | 1,373.3 |
Segment Operating Income | ||||
Business Segment Operating Income | 74.2 | 77.5 | 188.9 | 250.9 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | 6 | |||
Reduction In Previously Reported Forward-Loss | (46.7) | |||
Cumulative Catch Up Adjustment | 4.3 | (1.8) | ||
Wing Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 382.2 | 376.8 | 1,201.7 | 1,161.5 |
Segment Operating Income | ||||
Business Segment Operating Income | 50.9 | 51.1 | 140.2 | 174.7 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Reduction In Previously Reported Forward-Loss | (74.4) | 5.1 | ||
Cumulative Catch Up Adjustment | 19.1 | 18.7 | ||
Other Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 1.1 | 1.3 | 3.9 | 8.4 |
Segment Operating Income | ||||
Business Segment Operating Income | 0.2 | $ 0.6 | $ (0.5) | $ 2 |
B787 [Member] | ||||
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | $ 352.8 |
Condensed Consolidating Finan69
Condensed Consolidating Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Sep. 29, 2016 | Sep. 28, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Net revenues | $ 1,748.2 | $ 1,711.4 | $ 5,268.4 | $ 5,222.9 | ||
Operating costs and expenses | ||||||
Cost of sales | 1,478.5 | 1,439.4 | 4,738.3 | 4,470.4 | ||
Selling, general and administrative | 48.8 | 52.2 | 146.8 | 172.4 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | 19.9 | 0 | ||
Research and development | 9.5 | 5.4 | 21.2 | 15.9 | ||
Total operating costs and expenses | 1,536.8 | 1,497 | 4,926.2 | 4,658.7 | ||
Operating income | 211.4 | 214.4 | 342.2 | 564.2 | ||
Interest expense and financing fee amortization | (10.4) | (12.2) | (30.1) | (47.5) | ||
Other expense, net | 1.9 | (0.3) | 4.6 | (8.7) | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 202.9 | 201.9 | 316.7 | 508 | ||
Income tax provision | (55.9) | (57.3) | (84.9) | (147.8) | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 147 | 144.6 | 231.8 | 360.2 | ||
Equity in net income of affiliate | 0.2 | 0.5 | 0.3 | 1.3 | ||
Equity in net income of subsidiaries | 0 | 0 | ||||
Net income | 147.2 | 145.1 | 232.1 | 361.5 | ||
Total other comprehensive income (loss) | 13.8 | (8.5) | 33.6 | (42.9) | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 161 | 136.6 | 265.7 | 318.6 | ||
Current assets | ||||||
Cash and cash equivalents | 726.6 | 670.4 | 697.7 | 957.3 | $ 726.6 | $ 697.7 |
Restricted Cash and Cash Equivalents | 3.2 | 0 | ||||
Accounts receivable, net | 851.7 | 660.5 | ||||
Inventory | 1,363.2 | 1,515.3 | ||||
Other current assets | 67.3 | 36.9 | ||||
Total current assets | 3,012 | 2,910.4 | ||||
Property, plant and equipment, net | 2,018.7 | 1,991.6 | ||||
Pension assets | 309.2 | 282.3 | ||||
Other assets | 197.3 | 220.9 | ||||
Total assets | 5,537.2 | 5,405.2 | ||||
Current liabilities | ||||||
Accounts payable | 762.1 | 579.7 | ||||
Accrued expenses | 258.3 | 216.2 | ||||
Profit sharing | 65.7 | 101.4 | ||||
Current portion of long-term debt | 27.9 | 26.7 | ||||
Advance payments, short-term | 131 | 199.3 | ||||
Deferred revenue and other deferred credits, short-term | 68.3 | 312.1 | ||||
Deferred grant income liability - current | 21 | 14.4 | ||||
Other current liabilities | 601.7 | 94.4 | ||||
Total current liabilities | 1,936 | 1,544.2 | ||||
Long-term debt | 1,060.9 | 1,060 | ||||
Advance payments, long-term | 255.6 | 342 | ||||
Pension/OPEB obligation | 40.3 | 43.9 | ||||
Deferred grant income liability - non-current | 44.9 | 63.4 | ||||
Deferred revenue and other deferred credits | 166.5 | 146.8 | ||||
Other liabilities | 273.6 | 276.1 | ||||
Total equity | 1,759.4 | 1,928.8 | ||||
Total liabilities and equity | 5,537.2 | 5,405.2 | ||||
Operating activities | ||||||
Net cash (used in) operating activities | 624.6 | 574.4 | 624.6 | 574.4 | ||
Investing activities | ||||||
Purchase of property, plant and equipment | (138.7) | (156.8) | (138.7) | (156.8) | ||
Proceeds from Sales of Assets, Investing Activities | 0.3 | 0.6 | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Proceeds from sale of assets | 0.3 | 0.6 | ||||
Net cash used in investing activities | (138.4) | (156.2) | (138.4) | (156.2) | ||
Proceeds from Issuance of Senior Long-term Debt | 0 | 299.8 | ||||
Financing activities | ||||||
Principal payments of debt | (2.3) | (16.7) | (2.3) | (16.7) | ||
Repayments of Debt | 12.5 | 0 | ||||
Repayments of Senior Debt | 300 | 0 | 300 | |||
Payments Related to Tax Withholding for Share-based Compensation | (13.8) | (15.2) | (13.8) | (15.2) | ||
Proceeds from Issuance of Long-term Debt | 299.8 | |||||
Debt issuance and financing costs | (0.9) | (17.2) | (0.9) | (17.2) | ||
Proceeds from Other Debt | 7.6 | 7.6 | 0 | |||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | (402.1) | (649.6) | (402.1) | (649.6) | ||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (3.2) | (3.2) | 0 | |||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||
Payments of Dividends | (35.7) | (35.7) | 0 | |||
Excess tax benefit of share-based payment arrangements | (0.1) | 0 | (0.1) | |||
Net cash used in financing activities | (462.9) | (699) | (462.9) | (699) | ||
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (6.1) | 5.6 | (6.1) | ||
Net decrease in cash and cash equivalents for the period | 28.9 | (286.9) | 28.9 | (286.9) | ||
Cash and cash equivalents, beginning of period | 697.7 | 957.3 | ||||
Cash and cash equivalents, end of period | 726.6 | 670.4 | 726.6 | 670.4 | ||
Consolidation, Eliminations [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Net revenues | (136.6) | (146.6) | (458.1) | (473.3) | ||
Operating costs and expenses | ||||||
Cost of sales | (136.6) | (146.6) | (458.1) | (473.3) | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | |||||
Total operating costs and expenses | (136.6) | (146.6) | (458.1) | (473.3) | ||
Interest expense and financing fee amortization | 1.4 | 1.8 | 4.5 | 5.7 | ||
Other expense, net | (1.4) | (1.8) | (4.5) | (5.7) | ||
Equity in net income of affiliate | (0.2) | (0.5) | (0.3) | (1.3) | ||
Equity in net income of subsidiaries | (167.8) | (157.4) | (314.7) | (408.7) | ||
Net income | (168) | (157.9) | (315) | (410) | ||
Total other comprehensive income (loss) | (28.1) | 26.2 | (68.6) | 87.4 | ||
Comprehensive Income, Net of Tax, Attributable to Parent | (196.1) | (131.7) | (383.6) | (322.6) | ||
Current assets | ||||||
Restricted Cash and Cash Equivalents | 0 | |||||
Accounts receivable, net | (355.6) | (373.9) | ||||
Total current assets | (355.6) | (373.9) | ||||
Investment in subsidiary | (2,436.4) | (2,473.2) | ||||
Other assets | (257.4) | (279.4) | ||||
Total assets | (3,049.4) | (3,126.5) | ||||
Current liabilities | ||||||
Accounts payable | (355.6) | (373.9) | ||||
Total current liabilities | (355.6) | (373.9) | ||||
Long-term debt | (156.8) | (199.4) | ||||
Other liabilities | (100.6) | (80) | ||||
Total equity | (2,436.4) | (2,473.2) | ||||
Total liabilities and equity | (3,049.4) | (3,126.5) | ||||
Investing activities | ||||||
Proceeds from Sales of Assets, Investing Activities | 0 | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Financing activities | ||||||
Repayments of Debt | 0 | |||||
Repayments of Senior Debt | 0 | |||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||
Payments of Dividends | 0 | |||||
Excess tax benefit of share-based payment arrangements | 0 | |||||
Parent Company [Member] | ||||||
Operating costs and expenses | ||||||
Selling, general and administrative | 3.9 | 2.2 | 8.8 | 6 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | |||||
Total operating costs and expenses | 3.9 | 2.2 | 8.8 | 6 | ||
Operating income | (3.9) | (2.2) | (8.8) | (6) | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | (3.9) | (2.2) | (8.8) | (6) | ||
Income tax provision | 0.8 | 0.6 | 2.7 | 1.8 | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | (3.1) | (1.6) | (6.1) | (4.2) | ||
Equity in net income of affiliate | 0.2 | 0.5 | 0.3 | 1.3 | ||
Equity in net income of subsidiaries | 150.1 | 146.2 | 237.9 | 364.4 | ||
Net income | 147.2 | 145.1 | 232.1 | 361.5 | ||
Total other comprehensive income (loss) | 13.8 | (8.5) | 33.6 | (42.9) | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 161 | 136.6 | 265.7 | 318.6 | ||
Current assets | ||||||
Restricted Cash and Cash Equivalents | 0 | |||||
Investment in subsidiary | 1,759.4 | 1,928.8 | ||||
Total assets | 1,759.4 | 1,928.8 | ||||
Current liabilities | ||||||
Total equity | 1,759.4 | 1,928.8 | ||||
Total liabilities and equity | 1,759.4 | 1,928.8 | ||||
Investing activities | ||||||
Proceeds from Sales of Assets, Investing Activities | 0 | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | 0 | |||||
Financing activities | ||||||
Repayments of Debt | 0 | |||||
Repayments of Senior Debt | 0 | |||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 402.1 | 649.6 | ||||
Payments for Repurchase of Common Stock | (402.1) | (649.6) | ||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 35.7 | |||||
Payments of Dividends | (35.7) | |||||
Excess tax benefit of share-based payment arrangements | 0 | |||||
Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Net revenues | 311.8 | 308.7 | 1,025.4 | 984.5 | ||
Operating costs and expenses | ||||||
Cost of sales | 284 | 287.2 | 913.5 | 896.7 | ||
Selling, general and administrative | 3.6 | 3.4 | 10.7 | 12 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | |||||
Research and development | 0.7 | 0.4 | 1.8 | 1.5 | ||
Total operating costs and expenses | 288.3 | 291 | 926 | 910.2 | ||
Operating income | 23.5 | 17.7 | 99.4 | 74.3 | ||
Interest expense and financing fee amortization | (1.3) | (1.9) | (4.5) | (6) | ||
Other expense, net | (0.7) | (2.5) | (0.7) | (14.5) | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 21.5 | 13.3 | 94.2 | 53.8 | ||
Income tax provision | (3.7) | (2.1) | (17.4) | (9.5) | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 17.8 | 11.2 | 76.8 | 44.3 | ||
Equity in net income of affiliate | 0.2 | 0.5 | 0.3 | 1.3 | ||
Net income | 18 | 11.7 | 77.1 | 45.6 | ||
Total other comprehensive income (loss) | 14.3 | (17.7) | 35 | (44.5) | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 32.3 | (6) | 112.1 | 1.1 | ||
Current assets | ||||||
Cash and cash equivalents | 38.8 | 61 | 17.6 | 63.1 | 38.8 | 17.6 |
Restricted Cash and Cash Equivalents | 0 | |||||
Accounts receivable, net | 330.4 | 249.4 | ||||
Inventory | 438.1 | 456.5 | ||||
Other current assets | 3.6 | 7.9 | ||||
Total current assets | 810.9 | 731.4 | ||||
Property, plant and equipment, net | 519.3 | 529.3 | ||||
Pension assets | 15.4 | 14.2 | ||||
Other assets | 121.1 | 101.4 | ||||
Total assets | 1,466.7 | 1,376.3 | ||||
Current liabilities | ||||||
Accounts payable | 431.8 | 426.6 | ||||
Accrued expenses | 26.5 | 23.4 | ||||
Profit sharing | 2.7 | 4.2 | ||||
Current portion of long-term debt | 0.8 | 1.6 | ||||
Deferred revenue and other deferred credits, short-term | 1.5 | 1.3 | ||||
Deferred grant income liability - current | 21 | 14.4 | ||||
Other current liabilities | 4.5 | 0.2 | ||||
Total current liabilities | 488.8 | 471.7 | ||||
Long-term debt | 165.3 | 206.9 | ||||
Deferred grant income liability - non-current | 44.9 | 63.4 | ||||
Deferred revenue and other deferred credits | 2.9 | 3.4 | ||||
Other liabilities | 7.9 | 6.6 | ||||
Total equity | 756.9 | 624.3 | ||||
Total liabilities and equity | 1,466.7 | 1,376.3 | ||||
Operating activities | ||||||
Net cash (used in) operating activities | 98.9 | 93.1 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (16.6) | (35.4) | ||||
Proceeds from Sales of Assets, Investing Activities | 0 | 0 | ||||
Payments for (Proceeds from) Other Investing Activities | (0.4) | |||||
Net cash used in investing activities | (16.6) | (35.8) | ||||
Financing activities | ||||||
Principal payments of debt | (1.6) | (2.3) | ||||
Repayments of Debt | 0 | |||||
Repayments of Senior Debt | 0 | |||||
Collection on (repayment of) intercompany debt | (65.1) | (51) | ||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||
Payments of Dividends | 0 | |||||
Excess tax benefit of share-based payment arrangements | 0 | |||||
Net cash used in financing activities | (66.7) | (53.3) | ||||
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (6.1) | ||||
Net decrease in cash and cash equivalents for the period | 21.2 | (2.1) | ||||
Cash and cash equivalents, beginning of period | 17.6 | 63.1 | ||||
Cash and cash equivalents, end of period | 38.8 | 61 | 38.8 | 61 | ||
Subsidiary Issuer [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Net revenues | 1,573 | 1,549.3 | 4,701.1 | 4,711.7 | ||
Operating costs and expenses | ||||||
Cost of sales | 1,331.1 | 1,298.8 | 4,282.9 | 4,047 | ||
Selling, general and administrative | 41.3 | 46.6 | 127.3 | 154.4 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 19.9 | |||||
Research and development | 8.8 | 5 | 19.4 | 14.4 | ||
Total operating costs and expenses | 1,381.2 | 1,350.4 | 4,449.5 | 4,215.8 | ||
Operating income | 191.8 | 198.9 | 251.6 | 495.9 | ||
Interest expense and financing fee amortization | (10.5) | (12.1) | (30.1) | (47.2) | ||
Other expense, net | 4 | 4 | 9.8 | 11.5 | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 185.3 | 190.8 | 231.3 | 460.2 | ||
Income tax provision | (53) | (55.8) | (70.2) | (140.1) | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 132.3 | 135 | 161.1 | 320.1 | ||
Equity in net income of subsidiaries | 17.7 | 11.2 | 76.8 | 44.3 | ||
Net income | 150 | 146.2 | 237.9 | 364.4 | ||
Total other comprehensive income (loss) | 13.8 | (8.5) | 33.6 | (42.9) | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 163.8 | 137.7 | 271.5 | 321.5 | ||
Current assets | ||||||
Cash and cash equivalents | 687.8 | 609.4 | 680.1 | 894.2 | 687.8 | 680.1 |
Restricted Cash and Cash Equivalents | 3.2 | |||||
Accounts receivable, net | 876.9 | 785 | ||||
Inventory | 925.1 | 1,058.8 | ||||
Other current assets | 63.7 | 29 | ||||
Total current assets | 2,556.7 | 2,552.9 | ||||
Property, plant and equipment, net | 1,499.4 | 1,462.3 | ||||
Pension assets | 293.8 | 268.1 | ||||
Investment in subsidiary | 677 | 544.4 | ||||
Other assets | 333.6 | 398.9 | ||||
Total assets | 5,360.5 | 5,226.6 | ||||
Current liabilities | ||||||
Accounts payable | 685.9 | 527 | ||||
Accrued expenses | 231.8 | 192.8 | ||||
Profit sharing | 63 | 97.2 | ||||
Current portion of long-term debt | 27.1 | 25.1 | ||||
Advance payments, short-term | 131 | 199.3 | ||||
Deferred revenue and other deferred credits, short-term | 66.8 | 310.8 | ||||
Other current liabilities | 597.2 | 94.2 | ||||
Total current liabilities | 1,802.8 | 1,446.4 | ||||
Long-term debt | 1,052.4 | 1,052.5 | ||||
Advance payments, long-term | 255.6 | 342 | ||||
Pension/OPEB obligation | 40.3 | 43.9 | ||||
Deferred revenue and other deferred credits | 163.6 | 143.4 | ||||
Other liabilities | 366.3 | 349.5 | ||||
Total equity | 1,679.5 | 1,848.9 | ||||
Total liabilities and equity | $ 5,360.5 | $ 5,226.6 | ||||
Operating activities | ||||||
Net cash (used in) operating activities | 525.7 | 481.3 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (122.1) | (121.4) | ||||
Proceeds from Sales of Assets, Investing Activities | 0.3 | 0.6 | ||||
Payments for (Proceeds from) Other Investing Activities | 0.4 | |||||
Net cash used in investing activities | (121.8) | (120.4) | ||||
Financing activities | ||||||
Principal payments of debt | (0.7) | (14.4) | ||||
Repayments of Debt | (12.5) | |||||
Repayments of Senior Debt | (300) | |||||
Collection on (repayment of) intercompany debt | 65.1 | 51 | ||||
Payments Related to Tax Withholding for Share-based Compensation | (13.8) | (15.2) | ||||
Proceeds from Issuance of Long-term Debt | 299.8 | |||||
Debt issuance and financing costs | (0.9) | (17.2) | ||||
Proceeds from Other Debt | 7.6 | |||||
Proceeds from (Payments for) Other Financing Activities | (402.1) | (649.6) | ||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (3.2) | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | (35.7) | |||||
Payments of Dividends | ||||||
Excess tax benefit of share-based payment arrangements | (0.1) | |||||
Net cash used in financing activities | (396.2) | (645.7) | ||||
Net decrease in cash and cash equivalents for the period | 7.7 | (284.8) | ||||
Cash and cash equivalents, beginning of period | 680.1 | 894.2 | ||||
Cash and cash equivalents, end of period | $ 687.8 | $ 609.4 | $ 687.8 | $ 609.4 |
New Market Tax Credit (Details)
New Market Tax Credit (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 9.7 | |
Restricted Cash and Cash Equivalents | 3.2 | $ 0 |
New Market Tax Credit [Member] | ||
Variable Interest Entity [Line Items] | ||
Loans Receivable, Net | $ 20.6 |
Boeing MOU (Details)
Boeing MOU (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2017 | Sep. 28, 2017 | Sep. 29, 2016 | |
Subsequent Event [Line Items] | |||
Increase (Decrease) in Customer Advances | $ (154.7) | $ (101.8) | |
Current Period Forward Loss Recorded | (359.6) | ||
Inventory Type B787 [Member] | |||
Subsequent Event [Line Items] | |||
Increase (Decrease) in Customer Advances | $ (235) | ||
Current Period Forward Loss Recorded | $ 352.8 |