Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 02, 2018 | Jun. 29, 2017 | |
Class of Stock [Line Items] | |||
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. | ||
Entity Central Index Key | 1,364,885 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Public Float | $ 6,733,804,971 | ||
Trading Symbol | SPR | ||
Class A [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 114,489,203 | ||
Class B [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Net Revenues | $ 1,714.6 | $ 1,748.2 | $ 1,826.1 | $ 1,694.1 | $ 1,570 | $ 1,711.4 | $ 1,829.9 | $ 1,681.6 | $ 6,983 | $ 6,792.9 | $ 6,643.9 |
Operating costs and expenses | |||||||||||
Cost of sales | 6,162.5 | 5,803.6 | 5,532.3 | ||||||||
Selling, general and administrative | 200.3 | 228.3 | 220.8 | ||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 19.9 | 12.1 | 0 | ||||||||
Research and development | 31.2 | 23.8 | 27.8 | ||||||||
Total operating costs and expenses | 6,413.9 | 6,067.8 | 5,780.9 | ||||||||
Operating income | 226.9 | 211.4 | (82.8) | 213.6 | 160.9 | 214.4 | 83.3 | 266.5 | 569.1 | 725.1 | 863 |
Interest expense and financing fee amortization | (41.7) | (57.3) | (52.7) | ||||||||
Other income (expense), net | (7.2) | 7.3 | 2.2 | ||||||||
Income before income taxes and equity in net income of affiliates | 534.6 | 660.5 | 808.1 | ||||||||
Income tax provision | (180) | (192.1) | (20.6) | ||||||||
Income before equity in net income of affiliates | 354.6 | 468.4 | 787.5 | ||||||||
Equity in net income of affiliates | 0.3 | 1.3 | 1.2 | ||||||||
Net income | $ 122.8 | $ 147.2 | $ (56.8) | $ 141.7 | $ 108.2 | $ 145.1 | $ 44.8 | $ 171.6 | $ 354.9 | $ 469.7 | $ 788.7 |
Earnings per share | |||||||||||
Basic (in dollars per share) | $ 1.08 | $ 1.27 | $ (0.48) | $ 1.19 | $ 0.90 | $ 1.16 | $ 0.35 | $ 1.30 | $ 3.04 | $ 3.72 | $ 5.69 |
Diluted (in dollars per share) | 1.07 | $ 1.26 | $ (0.48) | $ 1.17 | $ 0.89 | $ 1.16 | $ 0.35 | $ 1.29 | 3.01 | 3.70 | 5.66 |
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0.40 | $ 0.10 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 354.9 | $ 469.7 | $ 788.7 |
Other comprehensive (loss) income, net of tax: | |||
Less: reclassification adjustment for loss realized in net other assets, net of tax effect | 0 | 0 | 0.7 |
Pension, SERP and Retiree medical adjustments, net of tax | 19.8 | 36.9 | 12.5 |
Unrealized foreign exchange gain (loss) on intercompany loan, net of effect | 4.9 | (9.9) | (3.5) |
Foreign currency translation adjustments | 33.7 | (53.4) | (16.4) |
Total other comprehensive income (loss) | 58.4 | (26.4) | (6.7) |
Total comprehensive income | $ 413.3 | $ 443.3 | $ 782 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension, SERP and Retiree medical adjustments, tax | $ (6) | $ (20.8) | $ (7.7) |
Unrealized foreign exchange gain (loss) on intercompany loan, tax | (1.2) | 2.5 | 0.9 |
Foreign Exchange Contract [Member] | |||
Unrealized gain (loss) on derivatives arising during period, tax | $ 0 | $ 0 | $ (0.4) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 423.3 | $ 697.7 |
Restricted Cash, Current | 2.2 | 0 |
Accounts receivable, net | 722.2 | 660.5 |
Inventory, net | 1,449.9 | 1,515.3 |
Other current assets | 53.5 | 36.9 |
Total current assets | 2,651.1 | 2,910.4 |
Property, plant and equipment, net | 2,105.3 | 1,991.6 |
Pension assets | 347.1 | 282.3 |
Deferred tax asset-non-current, net | 72.5 | 128.8 |
Other assets | 164.3 | 220.9 |
Total assets | 5,267.8 | 5,405.2 |
Liabilities | ||
Accounts payable | 693.1 | 579.7 |
Accrued expenses | 269.3 | 216.2 |
Profit sharing | 109.5 | 101.4 |
Current portion of long-term debt | 31.1 | 26.7 |
Advance payments, short-term | 100 | 199.3 |
Deferred revenue and other deferred credits, short-term | 64.6 | 312.1 |
Deferred grant income liability — current | 21.6 | 14.4 |
Other current liabilities | 331.8 | 94.4 |
Total current liabilities | 1,621 | 1,544.2 |
Long-term debt | 1,119.9 | 1,060 |
Advance payments, long-term | 231.7 | 342 |
Pension/OPEB obligation | 40.8 | 43.9 |
Deferred grant income liability — non-current | 39.3 | 63.4 |
Deferred revenue and other deferred credits | 161 | 146.8 |
Other liabilities | 252.6 | 276.1 |
Stockholders’ Equity | ||
Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 1,086.9 | 1,078.9 |
Accumulated other comprehensive loss | (128.5) | (186.9) |
Retained earnings | 2,422.4 | 2,113.9 |
Treasury Stock, Value | (1,580.9) | (1,078.8) |
Total stockholders' equity | 1,801 | 1,928.3 |
Noncontrolling interest | 0.5 | 0.5 |
Total equity | 1,801.5 | 1,928.8 |
Total liabilities and equity | 5,267.8 | 5,405.2 |
Class A [Member] | ||
Stockholders’ Equity | ||
Common stock | $ 1.1 | $ 1.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 360,000,000 |
Treasury Stock, Shares | 31,467,709 | 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 | 114,447,605 | 11,642,556 |
Class B [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 0 | 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Stockholders' Equity, Total [Member] | Treasury Stock, Common [Member] |
Treasury Stock, Value | $ (129,200,000) | ||||||
Balance, shares at Dec. 31, 2014 | 141,089,123 | ||||||
Balance at Dec. 31, 2014 | $ 1,400,000 | $ 1,035,600,000 | $ (153,800,000) | $ 867,500,000 | $ 1,621,500,000 | ||
Net income | 788,700,000 | 788,700,000 | 788,700,000 | ||||
Equity in joint venture | (1,656,200,000) | ||||||
Employee equity awards, shares | 653,011 | ||||||
Employee equity awards, value | 26,000,000 | ||||||
Stock forfeitures, shares | 170,789 | ||||||
Net shares settled | 395,447 | ||||||
Payments Related to Tax Withholding for Share-based Compensation | (20,700,000) | ||||||
Stock Forfeitures, value | (26,000,000) | 0 | |||||
Excess tax benefits from share-based payment arrangements | 10,700,000 | 10,700,000 | |||||
SERP shares issued | 133,677 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (300,000,000) | ||||||
Other Comprehensive Income | (6,700,000) | (6,700,000) | (6,700,000) | ||||
Balance, shares at Dec. 31, 2015 | 135,617,710 | ||||||
Balance at Dec. 31, 2015 | $ 1,400,000 | 1,051,600,000 | (160,500,000) | 2,119,500,000 | $ (100,000) | ||
Treasury Stock, Carrying Basis | (5,691,865) | ||||||
Treasury Stock, Value | (429,200,000) | ||||||
Net income | 469,700,000 | 469,700,000 | |||||
Dividends, Common Stock, Cash | (12,000,000) | ||||||
Employee equity awards, shares | 856,232 | ||||||
Employee equity awards, value | 42,500,000 | 42,500,000 | |||||
Stock forfeitures, shares | 280,349 | ||||||
Net shares settled | 335,436 | ||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 15,200,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||||||
Excess tax benefits from share-based payment arrangements | (200,000) | (200,000) | 200,000 | ||||
SERP shares issued | 28,626 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ (649,600,000) | ||||||
Stock Repurchased During Period, Value | (649,600,000) | ||||||
Other Comprehensive Income | (26,400,000) | (26,400,000) | (26,400,000) | ||||
Balance, shares at Dec. 31, 2016 | 121,642,556 | ||||||
Balance at Dec. 31, 2016 | 1,928,300,000 | $ 1,200,000 | 1,078,900,000 | (186,900,000) | 2,113,900,000 | 1,928,300,000 | (200,000) |
Treasury Stock, Carrying Basis | (14,244,227) | ||||||
Treasury Stock, Value | (1,078,800,000) | ||||||
Net income | 354,900,000 | 354,900,000 | |||||
Dividends, Common Stock, Cash | (46,400,000) | ||||||
Employee equity awards, shares | 667,845 | ||||||
Employee equity awards, value | 22,100,000 | 22,100,000 | |||||
Stock forfeitures, shares | 92,482 | ||||||
Net shares settled | 250,066 | ||||||
Payments Related to Tax Withholding for Share-based Compensation | $ 14,200,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | $ 100,000 | ||||
SERP shares issued | 11,369 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ (502,100,000) | ||||||
Stock Repurchased During Period, Value | (502,100,000) | ||||||
Other Comprehensive Income | 58,400,000 | 58,400,000 | 58,400,000 | ||||
Balance, shares at Dec. 31, 2017 | 114,447,605 | ||||||
Balance at Dec. 31, 2017 | 1,801,000,000 | $ 1,100,000 | $ 1,086,900,000 | $ (128,500,000) | $ 2,422,400,000 | $ 1,801,000,000 | |
Treasury Stock, Carrying Basis | (7,531,617) | ||||||
Treasury Stock, Value | $ (1,580,900,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 354.9 | $ 469.7 | $ 788.7 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation expense | 214.1 | 208.6 | 180.5 |
Amortization expense | 0.2 | 0.2 | 0.6 |
Amortization of deferred financing fees | 3.4 | 19.3 | 6.9 |
Accretion of customer supply agreement | 2.6 | 4.9 | 2.6 |
Employee stock compensation expense | 22.1 | 42.5 | 26 |
Excess tax benefit of share-based payment arrangements | 0 | 0.1 | (10.7) |
Gain from interest rate swaps | (0.9) | 0 | 0 |
Loss from hedge contracts | 0 | 0 | 1.6 |
(Gain) loss from foreign currency transactions | (8.1) | 17.4 | 8.6 |
Loss on disposition of assets | 9.5 | 0.4 | 14.7 |
Deferred taxes | 52.4 | 0.9 | (162.2) |
Pension and other post retirement benefits, net | (34.7) | 3.5 | (26) |
Grant liability amortization | (19) | (11.9) | (10.4) |
Equity in net income of affiliates | (0.3) | (1.3) | (1.2) |
Changes in assets and liabilities | |||
Accounts receivable, net | (48.5) | (139.1) | 62.2 |
Inventory, net | 319.6 | 207.8 | (44.2) |
Accounts payable and accrued liabilities | 160.3 | (34.3) | (89.1) |
Profit sharing/deferred compensation | 7.6 | 40.5 | (50) |
Advance payments | (209.6) | (144.4) | (113.3) |
Income taxes receivable/payable | 25.7 | (3.3) | 251.9 |
Deferred revenue and other deferred credits | (231.2) | 12.4 | 407.3 |
Other | (46.4) | 23 | 45.2 |
Net cash provided by operating activities | 573.7 | 716.9 | 1,289.7 |
Investing activities | |||
Purchase of property, plant and equipment | (273.1) | (254) | (360.1) |
Proceeds from sale of assets | 0.4 | 0.6 | 2.7 |
Repayments of Debt | 0 | (300) | 0 |
Increase (Decrease) in Restricted Cash | (0.1) | 0 | 0 |
Net cash used in investing activities | (272.8) | (253.4) | (357.4) |
Payments Related to Tax Withholding for Share-based Compensation | (14.2) | (15.2) | 20.7 |
Financing activities | |||
Proceeds from issuance of debt | 0 | 0 | 535 |
Principal payments of debt | 2.8 | 36.4 | 36.5 |
Excess tax benefit of share-based payment arrangements | 0 | (0.1) | 10.7 |
Debt issuance and financing costs | 0.9 | 17.2 | 4.7 |
Proceeds from Other Debt | 7.6 | 0 | 0 |
Payments for Repurchase of Common Stock | (496.3) | (649.6) | (300) |
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (2.2) | 0 | 0 |
Payments of Dividends | (47.1) | 0 | 0 |
Net cash used in financing activities | (580.9) | (718.7) | (351.1) |
Repayments of Debt | (25) | 0 | (534.9) |
Proceeds from (Repayments of) Notes Payable | 0 | 299.8 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (4.4) | (1.8) |
Net (decrease) increase in cash and cash equivalents for the period | (274.4) | (259.6) | 579.4 |
Cash and cash equivalents, beginning of period | 697.7 | 957.3 | 377.9 |
Cash and cash equivalents, end of period | 423.3 | 697.7 | 957.3 |
Supplemental information | |||
Interest paid | 43.6 | 45.2 | 51.5 |
Proceeds from Income Tax Refunds | $ 101.9 | ||
Income taxes paid | $ 191.4 | $ (69.7) |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | Nature of Business 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying 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 U.S. (“GAAP”) and Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year financial statements and notes to conform to the 2017 presentation. Investments in business entities in which the Company does not have control, but has the ability to exercise influence over operating and financial policies are accounted for under the equity method. Taikoo Spirit AeroSystems Composite Co. Ltd. ("TSACCL"), a joint venture of which Spirit's ownership interest is 31.5%, is accounted for under the equity method. TSACCL was formed to develop and implement a state-of-the-art composite and metal bond component repair station in the Asia-Pacific region. The Company is the majority participant in the Kansas Industrial Energy Supply Company ("KIESC"), a tenancy-in-common with other Wichita companies established to purchase natural gas. KIESC is fully consolidated as the Company owns 77.8% of the entity’s equity. All intercompany balances and transactions have been eliminated in consolidation. The Company’s U.K. subsidiary uses local currency, the British pound, as its functional currency; the Malaysian subsidiary uses the British pound and the Singapore subsidiary uses the Singapore dollar. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. As part of the monthly consolidation process, the functional currencies of the Company’s international subsidiaries 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. Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to use estimates and assumptions. The results of these estimates form the basis for making judgments which may affect the reported amounts of assets and liabilities, including the impacts of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Provisions for estimated expenses related to service and product warranties, service life policies, and certain extraordinary rework are made at the time products are sold. These costs are accrued at the time of the sale 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, and service life policy 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. Actual results could differ from those estimates and assumptions. Revenues and Profit Recognition A significant portion of the Company’s revenues are recognized under long-term, volume-based pricing contracts, requiring delivery of products over several years. Historically, the Company has recognized revenue under the contract method of accounting and recorded sales and profits on each contract in accordance with the percentage-of-completion method of accounting, primarily using the units-of-delivery method. Under the units-of-delivery method revenue is recognized based upon the number of units delivered during a period and the contract price and expenditures are recognized as the cost allocable to the delivered units. Costs allocable to undelivered units are reported in the balance sheet as inventory. The method is used in circumstances in which an entity produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. Recurring long-term production contracts are usually divided into contract blocks for this purpose, with each block treated as a separate contract for “units-of-delivery” production-type contract accounting purposes. The total quantity of production units to be delivered under a contract may be set as a single contract accounting block, or it can be split into multiple blocks. Unless the life of the contract is so long that it prevents reliable estimates, the entire contract will typically be set as the contract accounting block quantity. “Life-of-program” or “requirements-based” contracts often lead to continuing sales of more than twenty years. Since this is much longer than can be reliably estimated, Spirit has used parameters based on the contract facts and circumstances to determine the length of the contract block. This analysis includes: considering the customer’s firm orders, internal assessment of the market, reliability of cost estimates, potential segmentation of non-recurring elements of the contract, and other factors. Contract block sizes may also be determined based on certain contractual terms such as pricing renegotiation dates, such that certain contract blocks may use an approximate date instead of a defined unit quantity in order to increase the ability to estimate accurately given that the renegotiated pricing is unknown for the planning block. Shorter contract blocks for mature, ongoing programs are common due to the presence of recent cost history and probable forecast accuracy. Initial contract blocks often require a longer time period and a greater number of units in order to take into account the higher cost of early units due to a steeper experience curve and pre-production design costs. As these programs mature, costs stabilize and efficiencies are realized, subsequent contract block length shortens to take into account the steady state of the continuing production. Revenues from non-recurring design work are recognized based on substantive milestones or use of the cost-to-cost method, that are indicative of the Company’s progress toward completion depending on facts and circumstances. The Company follows the requirements of Financial Accounting Standards Board (“FASB”) authoritative guidance on accounting for the performance of construction-type and certain production-type contracts (the contract method of accounting), and uses the cumulative catch-up method in accounting for revisions in estimates. Under the cumulative catch-up method, the impacts of revisions in estimates are recognized immediately when changes in estimated contract profitability become known. A profit rate is estimated based on the difference between total revenues and total costs over a contract block. Total revenues at any given time include actual historical revenues up to that time plus future estimated revenues. Total costs at any given time include actual historical costs up to that time plus future estimated costs. Estimated revenues include negotiated or expected values for units delivered, estimates of probable recoveries asserted against the customer for changes in specifications, price adjustments for contract and volume changes, escalation and assumed but currently unnegotiated price increases for derivative models. Costs include the estimated cost of certain pre-production efforts (including non-recurring engineering and planning subsequent to completion of final design) plus the estimated cost of manufacturing a specified number of production units. Estimates take into account assumptions related to future labor performance and rates, and projections related to material and overhead costs including expected “learning curve” cost reductions over the term of the contract. Estimated revenues and costs also take into account the expected impact of specific contingencies that the Company believes are probable. Estimates of revenues and costs for the Company’s contract blocks span a period of multiple years and are based on a substantial number of underlying assumptions. The Company believes that the underlying assumptions are sufficiently reliable to provide a reasonable estimate of the profit to be generated. However, due to the significant length of time over which revenue streams will be generated, the variability of the revenue and cost streams can be significant if the assumptions change. Estimates of profit margins for contract accounting blocks are typically reviewed at least annually or at an earlier point if evidence suggests a change in margin may be necessary. Assuming the initial estimates of sales and costs under the contract block are accurate, the percentage-of-completion method results in the profit margin being recorded evenly as revenue is recognized under the contract block. Changes in these underlying estimates due to revisions in sales and cost estimates may result in profit margins being recognized unevenly over a contract block as such changes are accounted for on a cumulative basis in the period estimates are revised, which the Company refers to as cumulative catch-up adjustments. The Company’s Estimate at Completion estimating process is not solely an accounting process, but is instead an integrated part of the management of the Company’s business, involving numerous personnel in the Company’s planning, production control, contracts, cost management, supply chain, and program and business management functions. Spirit regularly commences work and incorporates customer-directed changes prior to negotiating pricing terms for engineering work, for work related to the modification of the product, and/or other statements of work. Spirit typically has the legal right to negotiate pricing for customer-directed changes. In those cases, Spirit asserts to its customers its contractual rights to be paid the additional revenue or cost reimbursement the Company expects to receive upon finalizing pricing terms. For revenues not recognized under the contract method of accounting, the Company recognizes revenues from the sale of products at the point of passage of title, which is generally at the time of shipment. Shipping and handling costs are included in cost of sales. Revenues earned from providing maintenance services, including any contracted research and development, are recognized when the service is complete or other contractual milestones are attained. Revenues from non-recurring design work are recognized based on substantive milestones or use of the cost-to-cost method, that are indicative of the Company’s progress toward completion. Non-recurring revenues, which are derived primarily from engineering and design efforts, were $466.9 , $302.1 , and $307.4 for each of the periods ended December 31, 2017, 2016, and 2015, respectively. As required by FASB authoritative guidance related to accounting for consideration given by a vendor to a customer certain payments are amortized as a reduction to revenues on units delivered. Research and Development Research and development includes costs incurred for experimentation, design, and testing that are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents represent all highly liquid investments with original maturities of three months or less. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Consistent with industry practice, the Company classifies unbilled receivables related to contracts accounted for under the long-term contract method of accounting as current. The Company determines an allowance for doubtful accounts based on a review of outstanding receivables. Account balances are charged off against the allowance after the potential for recovery is considered remote. The Company’s allowance for doubtful accounts was approximately $1.3 and $5.2 at December 31, 2017 and December 31, 2016, respectively. 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. In October 2017, the Company entered into an agreement (the “Receivable Sales Agreement”), to sell, on a revolving basis, certain trade accounts receivable balances to a third party financial institution. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the balance sheet. The Receivable Sales Agreement provides for the continuing sale of certain receivables on a revolving basis until terminated by either party. The receivables under the Receivable Sales Agreement are sold without recourse to the third party financial institution. See Note 4, Accounts Receivable, net , for further discussion. Inventory Raw materials are stated at lower of cost (principally on an actual or average cost basis) or market. Inventoried costs attributed to units delivered under long-term contracts are based on the estimated average cost of all units expected to be produced and are determined under the learning curve concept which anticipates a predictable decrease in unit costs. Lower unit costs are achieved as tasks and production techniques become more efficient through repetition, supply chain costs are reduced as contracts are negotiated and design changes result in lower cost. This cost averaging usually results in an increase in inventory (referred to as “excess-over-average” or “deferred production costs”) during the early years of a contract. These costs are deferred only to the extent the amount of actual or expected excess-over-average is reasonably expected to be fully offset by lower-than-average costs in future periods of a contract. If in-process inventory plus estimated costs to complete a specific contract exceed the actual plus anticipated remaining sales value of such contract, such excess is charged to cost of sales in the period the loss becomes known, thus reducing inventory to estimated realizable value. Costs in inventory include amounts relating to contracts with long production cycles, some of which are not expected to be realized within one year. The Company reviews its general stock materials and spare parts inventory each quarter to identify impaired inventory, including excess or obsolete inventory, based on historical sales trends and expected production usage. Impaired inventories are written off to work-in-process in the period identified. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by Spirit, and has an acquisition cost of greater than $0.1 . Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. Impairment or Disposal of Long-Lived Assets and Goodwill Spirit reviews capital and amortization of intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the recorded amount may not be recoverable. Under the standard, assets must be classified as either held-for-use or available-for-sale. An impairment loss is recognized when the recorded amount of an asset that is held for use exceeds the projected undiscounted future net cash flows expected from its use and disposal, and is measured as the amount by which the recorded amount of the asset exceeds its fair value, which is measured by discounted cash flows when quoted market prices are not available. For assets available-for-sale, an impairment loss is recognized when the recorded amount exceeds the fair value less cost to sell. The Company performs an annual impairment test for goodwill in the fourth quarter of each year, or more frequently, if an event occurs or circumstances change that would more likely than not reduce fair value below current value. Deferred Financing Costs Costs relating to long-term debt are deferred and included in other long-term assets. These costs are amortized over the term of the related debt or debt facilities and are included as a component of interest expense. Derivative Instruments and Hedging Activity The Company uses derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates and interest rates. Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Changes in fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item or when the hedge is no longer effective. Cash flows associated with the Company’s derivatives are presented as a component of the operating section of the statement of cash flows. The use of derivatives has generally been limited to interest rate swaps and foreign currency forward contracts. The Company enters into foreign currency forward contracts to reduce the risks associated with the changes in foreign exchange rates on sales and cost of sales denominated in currencies other than the entities’ functional currency. Fair Value of Financial Instruments Financial instruments are measured in accordance with FASB authoritative guidance related to fair value measurements. This guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. See Note 10, Fair Value Measurements . Income Taxes Income taxes are accounted for in accordance with FASB authoritative guidance on accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Tax rate changes impacting these assets and liabilities are recognized in the period during which the rate change occurs. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, we assess all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. We record an income tax expense or benefit based on the income earned or loss incurred in each tax jurisdiction and the tax rate applicable to that income or loss. In the ordinary course of business, there are transactions for which the ultimate tax outcome is uncertain. These uncertainties are accounted for in accordance with FASB authoritative guidance on accounting for the uncertainty in income taxes. The final tax outcome for these matters may be different than management's original estimates made in determining the income tax provision. A change to these estimates could impact the effective tax rate and net income or loss in subsequent periods. We use the flow-through accounting method for tax credits. Under this method, tax credits reduce income tax expense. See Note 16, Income Taxes , for further discussion. Stock-Based Compensation and Other Share-Based Payments Many of the Company’s employees are participants in various stock compensation plans. The expense attributable to the Company’s employees is recognized over the period the amounts are earned and vested, as described in Note 15, Stock Compensation . New Accounting Pronouncements In March 2017, the 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. The Company adopted the requirements of ASU 2017-07 on January 1, 2018, using the retrospective transition method. The Company expects the adoption of ASU 2017-07 to result in an unfavorable impact to consolidated operating profit and a corresponding favorable impact in non-operating income for each year. Further, in 2018, the Company expects a decrease to operating income in the range of $15.0 to $20.0, primarily related to the impact on the B787 program. 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. 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 those related to material right obligations; the allocation of consideration based upon relative standalone selling price; 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 (the “Transition Adjustment”). Contracts that are substantially completed will be excluded from the Transition Adjustment. The Company has reviewed all of its contracts with customers and has implemented the required process, data, and system changes to comply with the requirements of ASC 606. Upon adoption of ASC 606, the Company will no longer recognize revenue using the units-of-delivery method. 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. The Company will generally use costs incurred as the measure of performance; and therefore will generally not defer any production costs. Performance obligations that are not recognized over time will be recognized at the point in time when control transfers to the customer. ASC 606 requires the Company to allocate contract consideration to performance obligations on the basis of their relative standalone selling price. The Company has determined that certain contracts require a deferral of revenues due to the requirement to allocate revenue based upon relative standalone selling price. Accordingly, contract liabilities will be established at the Transition Date to defer revenue that was previously recognized under ASC 605 (“legacy GAAP”). Based on currently available information, the Company estimates the following Transition Adjustment impact: Opening Balance Sheet Impact : Pretax Retained Earnings Decrease $350.0 - $370.0 Net Estimated Tax Benefit $75.0 - $85.0 As explained above, under legacy GAAP, the Company used the units-of-delivery method and certain production costs were deferred over the life of the contract block. Under ASC 606, the Company will not use contract blocks and costs will no longer be deferred and allocated to future units as under the units-of-delivery method. Accordingly, deferred production costs of $651.0 (pretax), net of previously recognized forward loss reserves of $367.0 (pretax) will be eliminated and result in a decrease to retained earnings as part of the Transition Adjustment. The Transition Adjustment will include a net increase of $80.0 - $100.0 (pretax) to retained earnings to establish contract assets for contracts that are in progress for which revenue is not yet recognized under legacy GAAP but for which revenue is recognized under ASC 606 over time as contract costs are incurred. Finally, a $113.0 (pretax) decrease to retained earnings will be recorded as part of the Transition Adjustment to defer revenue to reflect the relative standalone selling price of certain future performance obligations. ASC 340-40 is applied to costs to obtain or fulfill a contract 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 the costs generally do not fall within the scope of ASC 340-40. However, certain preproduction costs of $49.0 (pretax) that were deferred under legacy GAAP but which related to fully satisfied performance obligations under ASC 606, will be eliminated as part of the Transition Adjustment. The Company anticipates that in 2018, revenue for certain contracts that would have been recognized under legacy GAAP will be deferred because of the allocation of revenue to future performance obligations based upon relative standalone selling price. Additionally, based upon the information currently available, the Company expects that there will be an increase in gross margin in 2018 for certain other contracts because production costs previously deferred under legacy GAAP have been included in the Transition Adjustment as discussed above. 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. The Company expects the disclosures to include qualitative and quantitative information about its contracts with customers; information about contract assets and liabilities; information about the performance obligation for customer contracts; and, the significant judgments made in applying the guidance in ASC 606. This will result in changes to the Company's existing disclosures, as well as new disclosures, which will impact the information reported in the Company's financial statements. |
Changes in Estimates
Changes in Estimates | 12 Months Ended |
Dec. 31, 2017 | |
Changes in Estimates [Abstract] | |
Accounting Changes [Text Block] | 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. The majority of the Company’s fixed priced contracts are life of aircraft program contracts. 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 estimates of total costs to be incurred on a contract block exceed estimates of total revenue to be earned, 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: Changes in Estimates December 31, 2017 December 31, 2016 December 31, 2015 Favorable (Unfavorable) Cumulative Catch-up Adjustments by Segment Fuselage 4.0 13.6 16.1 Propulsion 3.8 (0.4 ) 22.8 Wing 23.4 23.4 2.7 Total Favorable Cumulative Catch-up Adjustment 31.2 36.6 41.6 (Forward Loss) and Changes in Estimates on Loss Programs by Segment Fuselage (223.2 ) (133.4 ) 8.7 Propulsion (40.2 ) 10.1 2.4 Wing (63.9 ) 5.1 (0.3 ) Total (Forward Loss) and Change in Estimate on Loss Program (327.3 ) (118.2 ) 10.8 Total Change in Estimate (296.1 ) (81.6 ) 52.4 EPS Impact (diluted per share based on statutory rates) (1.58 ) (0.40 ) 0.24 2017 Changes in Estimates On August 1, 2017, Boeing and the Company through its subsidiary, Spirit, entered into a Collective Resolution 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 December 31, 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, as part of the definitive documentation implementing the agreements set forth in the MOU, on September 22, 2017 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 #25” and, together with the Sustaining Amendment #30, the “Definitive Documentation”). 787 Amendment #25 establishes pricing terms for the B787-8, -9, and -10 models through line unit 1405. 787 Amendment #25 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, 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 cost 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. In the fourth quarter of 2017, favorable cost initiatives and benefits from absorption of fixed costs due to announced rate increases, resulted in a favorable change in estimate on the B787 program of $41.1 . During 2017, the Company recorded a forward loss on the A350XWB program of $19.4 , primarily related to unfavorable exchange rate impacts on labor and non-labor costs and supplier claims. The Company could record additional forward loss charges if there are further changes to revenue and cost estimates and/or if risks are not mitigated. 2016 Changes in Estimates Favorable cumulative catch-up adjustments for the periods prior to 2016 were primarily driven by productivity and efficiency improvements, favorable cost performance, mitigation of risk on maturing programs and favorable pricing negotiations on a maturing program. During the second quarter of 2016, Spirit signed a memorandum of agreement with Airbus (the “Airbus 2016 MOA”) which, in part, materially reset the pricing for 800 units on the A350 XWB Fuselage and Wing requirements contracts. The Airbus 2016 MOA was negotiated to economically compensate Spirit for significant engineering changes to aircraft design. The new pricing provided the Company with a higher degree of certainty of revenue that will be realized over the 800 unit contracts. Further, the Company analyzed A350 XWB market demand using third party publications as well as Airbus firm orders which indicated that the sustained demand for the A350 XWB program was in excess of 800 units. The Company determined that due to the higher degree of precision of the A350 XWB revenue along with the strong, sustained market demand, it was appropriate to extend the accounting block quantity to 800 units in the second quarter of 2016. The contract block quantity change was made in accordance with applicable accounting guidance as well as the Company’s accounting policies and past practices. As a result of the Airbus 2016 MOA, the Company updated its estimated revenues that will be realized over the 800 unit A350 XWB Fuselage and Wing contract accounting blocks. While the Company continued to make progress on the A350 XWB Fuselage program, the Company experienced various disruption and production inefficiencies that exceeded estimates made in previous quarters primarily related to achieving production rate increases. As a result of these disruptions and inefficiencies, cost estimates were updated in the second quarter of 2016 to account for increased labor costs in fabrication and assembly and expedited shipping costs to meet current and future customer production rate increases. The Company also updated its estimates in the second quarter of 2016 due to uncertainty of supply chain cost reductions and achievement of cost affordability projects. The changes in revenue and cost estimates during the second quarter of 2016 resulted in a net forward loss charge of ($135.7) on the A350 XWB program. Increased scrap and rework as well as increased production labor costs resulted in an additional net forward loss charge of ($6.1) recorded on the A350 XWB program during the fourth quarter of 2016. For the twelve months ended December 31, 2016, the changes in revenue and cost estimates during the second and fourth quarters of 2016 (as described above) resulted in a net forward loss charge of ($141.8) on the A350 XWB program. 2015 Changes in Estimates Favorable cumulative catch-up adjustments for the periods prior to 2015 and changes in estimates on loss programs were primarily driven by productivity and efficiency improvements, favorable cost performance, mitigation of risk, benefits from increased production rates related to the absorption of fixed costs and favorable pricing negotiations on a maturing program. Forward loss charges were due to a production rate decrease on a mature program. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net consists of the following: December 31, December 31, Trade receivables $ 710.5 $ 647.3 Other 13.0 18.4 Less: allowance for doubtful accounts (1.3 ) (5.2 ) Accounts receivable, net $ 722.2 $ 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. In October 2017, the Company entered into an agreement (the “Receivable Sales Agreement”), to sell, on a revolving basis, certain trade accounts receivable balances to a third party financial institution. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the balance sheet. The Receivable Sales Agreement provides for the continuing sale of certain receivables on a revolving basis until terminated by either party. The receivables under the Receivable Sales Agreement are sold without recourse to the third party financial institution. During 2017, $1,133.8 of accounts receivable have been sold via this arrangement. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on sale of receivables is $3.3 for the year ended December 31, 2017 and is included in Other income and expense. See Note 19, Other Income (Expense), net . |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 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 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 orders 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. For discussion of the impacts of the adoption of ASC 606 on deferred production, capitalized pre-production, forward loss provision, and contract blocks, see Note 2, Summary of Significant Accounting Policies . Inventories are summarized as follows: December 31, 2017 December 31, 2016 Raw materials $ 321.0 $ 281.9 Work-in-process 854.4 790.7 Finished goods 35.8 30.9 Product inventory 1,211.2 1,103.5 Capitalized pre-production (1) 78.9 103.5 Deferred production (2) 640.3 717.4 Forward loss provision (3) (480.5 ) (409.1 ) Total inventory, net $ 1,449.9 $ 1,515.3 _______________________________________ For contract blocks that have not closed, the following non-product inventory amounts were included in the summarized inventory table above: (1) For the period ended December 31, 2017, $69.7 and $5.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, $83.7 and $15.2 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (2) For the period ended December 31, 2017 $632.8 and $129.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, $657.2 and $114.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (3) For the period ended December 31, 2017, ($275.5) , ($137.4) , and ($57.2) on A350 XWB, Rolls-Royce BR725, and B787 programs, respectively. For the period ended December 31, 2016, ($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 $254.5 as of December 31, 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 Contract Block Quantity A350 XWB 223 800 Rolls-Royce BR725 316 350 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 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: December 31, 2017 December 31, 2016 Land $ 15.9 $ 14.9 Buildings (including improvements) 764.1 642.5 Machinery and equipment (1) 1,529.9 1,373.9 Tooling 1,013.9 982.4 Capitalized software (1) 263.3 261.9 Construction-in-progress 213.4 193.7 Total 3,800.5 3,469.3 Less: accumulated depreciation (1,695.2 ) (1,477.7 ) Property, plant and equipment, net $ 2,105.3 $ 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 $130.0 , $123.1 , and $139.0 for the twelve months ended December 31, 2017 , 2016 and 2015 , 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 $19.2 , $18.6 , and $16.9 for the twelve months ended December 31, 2017 , 2016 , and 2015 , 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 that an impairment of $8.2 primarily related to abandoned construction-in-progress, $8.3 primarily related to obsolete machinery and equipment and tooling, and $10.0 primarily related to obsolete machinery and equipment was necessary for the twelve months ended December 31, 2017, 2016, and 2015, respectively. The Company records impairments related to property, plant and equipment to costs of sales on the statement of operations. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets are summarized as follows: December 31, 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 (4.6 ) (4.2 ) Intangible assets, net 1.8 2.2 Deferred financing Deferred financing costs 39.5 38.5 Less: Accumulated amortization-deferred financing costs (33.7 ) (32.2 ) Deferred financing costs, net (1) 5.8 6.3 Other Goodwill — Europe 2.5 2.3 Equity in net assets of affiliates 4.7 4.4 Supply agreement (1) 19.9 17.0 Restricted Cash 20.0 19.9 Deferred Tax Asset - non-current 72.5 128.8 Other 37.1 40.0 Total $ 164.3 $ 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 | 12 Months Ended |
Dec. 31, 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 balance sheet, with the balance of the unliquidated advance payments classified as a long-term liability. In February 2012, Spirit and Airbus entered into an agreement whereby Spirit received a series of payments totaling $250.0 million, which were recorded as advance payments within our balance sheet. The agreement provides for repayment of the $250.0 million in cash advances made by Airbus to be offset against the purchase price of the first 200 Section 15 A350 XWB shipsets delivered to Airbus prior to December 31, 2017. As of December 31, 2017, all amounts of advance payments received by us from Airbus under the advance agreement have been repaid. Boeing has made advance payments to Spirit under the B787 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 its 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 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 , the MOU and the Definitive Documentation provide that the Company will repay to Boeing $236.0 less certain adjustments, as a retroactive adjustment for payments that were based on interim pricing. This amount was repaid in October 2017. Advance payments and deferred revenue/credits are summarized by program as follows: December 31, 2017 December 31, 2016 B787 $ 515.6 $ 834.8 Boeing — All other programs 12.6 18.6 A350 XWB 2.0 116.7 Airbus — All other programs 1.3 2.2 Other 25.8 27.9 Total advance payments and deferred revenue/credits $ 557.3 $ 1,000.2 |
Government Grants
Government Grants | 12 Months Ended |
Dec. 31, 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: 2017 2016 Balance, January 1 $ 77.8 $ 94.2 Grant liability amortized (19.0 ) (11.9 ) Exchange rate 2.1 (4.5 ) Total liability related to deferred grant income, December 31 $ 60.9 $ 77.8 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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. 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: December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Senior secured term loan A (including current portion) $ 460.7 $ 461.9 (2) $ 485.2 $ 484.8 (2) Senior unsecured notes due 2022 294.8 304.6 (1) 293.8 307.0 (1) Senior unsecured notes due 2026 297.2 301.0 (1) 296.9 292.4 (1) Malaysian loan — — (2) 1.0 0.9 (2) Total $ 1,052.7 $ 1,067.5 $ 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 | 12 Months Ended |
Dec. 31, 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 an asset of $0.9 as of December 31, 2017. For the twelve months ended December 31, 2017, the Company recorded a gain related to swap activity of $0.9 . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt shown on the balance sheet is comprised of the following: December 31, 2017 December 31, 2016 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 435.8 $ 24.9 $ 460.3 Senior notes due 2022 — 294.8 — 293.8 Senior notes due 2026 — 297.2 — 296.9 Malaysian term loan — — 1.0 — Present value of capital lease obligations 5.2 33.6 0.8 9.0 Other 1.0 58.5 — — Total $ 31.1 $ 1,119.9 $ 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 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 December 31, 2017, the outstanding balance of the Term Loan was $462.5 and the carrying value was $460.7 . In addition to paying interest on outstanding principal under the A&R Credit Agreement, Spirit is required to pay an unused line fee at a rate per annum equal to the applicable percentage for the applicable pricing tier set forth in the table below under the heading “Commitment Fee” on the unused portion of the commitments under the revolving credit facility. Spirit is required to pay letter of credit fees at a rate per annum equal to the applicable percentage for the applicable pricing tier set forth in the table below under the heading “Letter of Credit Fee” on the amounts available to be drawn under each standby letter of credit. Spirit is also required to pay fronting fees in respect of letters of credit to the issuing banks and customary administrative fees to the administrative agent. At December 31, 2017, Spirit had no letters of credit outstanding. The Company was subject to pricing tier 3 at December 31, 2017. Pricing Tier Credit Rating (S&P/Moody's) Commitment Fee Letter of Credit Fee LIBOR Loans Base Rate Loans 1 ≥BBB+/Baa1 0.125% 1.125% 1.125% 0.125% 2 BBB/Baa2 0.175% 1.250% 1.250% 0.250% 3 BBB-/Baa3 0.225% 1.500% 1.500% 0.500% 4 BB+/Ba1 0.275% 1.750% 1.750% 0.750% 5 ≤BB/Ba2 0.350% 2.000% 2.000% 1.000% The A&R Credit Agreement contains customary affirmative and negative covenants, including restrictions on indebtedness, liens, type of business, acquisitions, investments, sales or transfers of assets, payments of dividends, transactions with affiliates, change in control and other matters customarily restricted in such agreements. The A&R Credit Agreement also contains the following financial covenants (as defined in the A&R Credit Agreement): Interest Coverage Ratio Shall not be less than 4.0:1.0 Total Leverage Ratio Shall not exceed 3.5:1.0 As of December 31, 2017, Spirit was and expects to remain in full compliance with all covenants contained within the A&R Credit Agreement through December 31, 2018. 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 $294.8 as of December 31, 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 December 31, 2017. As of December 31, 2017, we were and expect to remain in full compliance with all covenants contained in the indentures governing the 2022 Notes and the 2026 Notes through December 31, 2018. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits Multi-employer Pension Plan In connection with the collective bargaining agreement signed with the International Association of Machinists and Aerospace Workers (“IAM”), the Company contributes to a multi-employer defined benefit pension plan (“IAM National Pension Fund”). The level of contribution, as specified in the bargaining agreement was, in whole dollars, $1.75 per hour of employee service as of July 1, 2015. The IAM bargaining agreement provides for a $0.05 per hour increase, in whole dollars, effective July 1 of each year through 2019. The collective bargaining agreement with the International Union, Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) requires the Company to contribute a specified amount per hour of service to the IAM National Pension Fund. The specified amount was $1.60 in 2016. Per the negotiated UAW collective bargaining agreement, the pension contributions, in whole dollars, will be as follows: Effective 1/1/2016 — $1.60 Effective 1/1/2018 — $1.65 Effective 1/1/2019 — $1.70 Effective 1/1/2020-2025 — $1.75 The risk of this multi-employer plan is different from single-employer plans in the following aspects: 1. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. 2. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3. If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table summarizes the multi-employer plan to which the Company contributes: Pension Protection Act Zone Status Expiration Date of Collective- Bargaining Agreement FIP/RP Status Pending/ Implemented Contributions of the Company EIN/Pension Plan Number Surcharge Imposed Pension Fund 2016 2017 2015 2016 2017 IAM National Pension Fund 51-60321295 Green Green No $ 29.8 $ 26.9 $ 30.3 No IAM June 27, 2020 UAW December 7, 2025 Pension Fund Year Company Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan ’ s Year-End) IAM National Pension Fund 2015, 2016, 2017 Defined Contribution Plans The Company contributes to a defined contribution plan available to all U.S. employees, excluding IAM and UAW represented employees. Under the plan, the Company makes a matching contribution of 75% of the employee contribution to a maximum 8% of eligible individual employee compensation. In addition, non-matching contributions based on an employee’s age and years of service are paid at the end of each calendar year for certain employee groups. The Company recorded $33.6 , $33.8 , and $34.1 in contributions to these plans for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined contribution pension plan for those employees who are hired after the date of acquisition. Under the plan, the Company contributes 8% of base salary while participating employees are required to contribute 4% of base salary. The Company recorded $5.4 in contributions to this plan for the period ended December 31, 2017 , $3.8 in contributions for the period ended December 31, 2016 and $7.0 in contributions for the period ended December 31, 2015 . Defined Benefit Pension Plans Effective June 17, 2005, pension assets and liabilities were spun-off from three Boeing qualified plans into four qualified Spirit plans for each Spirit employee who did not retire from Boeing by August 1, 2005. Effective December 31, 2005, all four qualified plans were merged together. In addition, Spirit has one nonqualified plan providing supplemental benefits to executives (SERP) who transferred from a Boeing nonqualified plan to a Spirit plan and elected to keep their benefits in this plan. Both plans are frozen as of the date of the Boeing Acquisition (i.e., no future service benefits are being earned in these plans). The Company intends to fund its qualified pension plan through a trust. Pension assets are placed in trust solely for the benefit of the pension plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined benefit pension plan for those employees that had pension benefits remaining in BAE Systems’ pension plan. In accordance with U.K. legislation, the plan and its assets are managed by an independent trustee company. The investment strategy adopted by this trustee is documented in a Statement of Investment Principles in line with U.K. legislation. The principles for the investment strategy are to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. The trustee has invested the plan assets in pooled arrangements with authorized investment companies which were selected to be consistent with the plan's overall investment principles and strategy. Effective December 31, 2013, the U.K. pension plan was closed and benefits were frozen and thereafter subject only to statutory pension revaluation. Other Post-Retirement Benefit Plans The Company also has post-retirement health care coverage for eligible U.S. retirees and qualifying dependents prior to age 65 . Eligibility for employer-provided benefits is limited to those employees who were employed at the date of the Boeing Acquisition and retire on or after attainment of age 62 and 10 years of service. Employees who do not satisfy these eligibility requirements can retire with post-retirement medical benefits at age 55 and 10 years of service, but they must pay the full cost of medical benefits provided. Obligations and Funded Status The following tables reconcile the funded status of both pension and post-retirement medical benefits to the balance on the balance sheets for the fiscal years 2017 and 2016 . Benefit obligation balances presented in the tables reflect the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the Company’s pension plans, and accumulated post-retirement benefit obligations (APBO) for the Company’s post-retirement medical plan. The Company uses an end of fiscal year measurement date of December 31 for the Company's U.S. pension and post-retirement medical plans. Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2017 2016 Change in projected benefit obligation: Beginning balance $ 1,036.0 $ 1,011.1 $ 51.5 $ 73.3 Service cost — — 1.2 1.8 Employee contributions — — 1.1 0.8 Interest cost 35.6 42.8 1.2 2.1 Actuarial losses (gains) 80.0 12.9 1.0 (16.7 ) Special Termination Benefits — 23.6 — 3.1 Plan Amendments — — — (7.2 ) Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Projected benefit obligation at the end of the period $ 1,084.4 $ 1,036.0 $ 47.2 $ 51.5 Assumptions used to determine benefit obligation: Discount rate 3.59 % 4.15 % 3.03 % 3.21 % Rate of compensation increase N/A N/A N/A N/A Medical assumptions: Trend assumed for the year N/A N/A 6.59 % 6.93 % Ultimate trend rate N/A N/A 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A 2038 2038 Change in fair value of plan assets: Beginning balance $ 1,302.9 $ 1,243.2 $ — $ — Actual return on assets 174.5 114.1 — — Employer contributions to plan 0.1 — 7.7 4.9 Employee contributions to plan — — 1.1 0.8 Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Expenses paid — — — — Ending balance $ 1,410.3 $ 1,302.9 $ — $ — Reconciliation of funded status to net amounts recognized: Funded status (deficit) $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts recognized in the balance sheet: Noncurrent assets $ 327.2 $ 268.1 $ — $ — Current liabilities — — (7.7 ) (8.9 ) Noncurrent liabilities (1.3 ) (1.3 ) (39.5 ) (42.6 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive (loss) income $ (89.6 ) $ (114.4 ) $ 28.3 $ 32.5 Cumulative employer contributions in excess of net periodic benefit cost 415.5 381.2 (75.5 ) (84.0 ) Net amount recognized in the balance sheet $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ 1.3 $ 1.2 $ 47.2 $ 51.5 Accumulated benefit obligation 1.3 1.2 — — Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 Change in projected benefit obligation: Beginning balance $ 82.1 $ 82.8 Service cost 1.3 1.0 Interest cost 2.0 2.9 Actuarial (gains) losses (1.1 ) 17.4 Benefits paid (0.8 ) (0.8 ) Expense paid (1.3 ) (1.0 ) Plan settlements (12.5 ) (5.5 ) Exchange rate changes 7.2 (14.7 ) Projected benefit obligation at the end of the period $ 76.9 $ 82.1 Assumptions used to determine benefit obligation: Discount rate 2.60 % 2.70 % Rate of compensation increase 3.35 % 3.20 % Change in fair value of plan assets: Beginning balance $ 96.2 $ 96.4 Actual return on assets 8.7 25.3 Plan settlements (14.7 ) (6.5 ) Expenses paid (1.3 ) (1.0 ) Benefits paid (0.8 ) (0.8 ) Exchange rate changes 8.7 (17.2 ) Ending balance $ 96.8 $ 96.2 Reconciliation of funded status to net amounts recognized: Funded status 19.9 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts recognized in the balance sheet: Noncurrent assets $ 19.9 $ 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive income (loss) 4.3 (0.2 ) Prepaid pension cost 15.6 14.4 Net amount recognized in the balance sheet $ 19.9 $ 14.2 Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ — $ — Accumulated benefit obligation — — Fair value of assets $ — $ — Annual Expense The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 1.2 $ 1.8 $ 2.2 Interest cost 35.7 42.7 44.4 1.2 2.1 2.2 Expected return on plan assets (69.8 ) (74.9 ) (78.1 ) — — — Amortization of net loss — 5.7 3.7 (2.2 ) — — Amortization of prior service costs — — — (0.9 ) (0.9 ) — Special Termination Benefits — 23.6 — — 3.1 — Net periodic benefit (income) cost (34.1 ) (2.9 ) (30.0 ) (0.7 ) 6.1 4.4 Other changes recognized in OCI: Total recognized in OCI (income) loss $ (24.8 ) $ (31.8 ) $ (15.5 ) $ 4.2 $ (23.0 ) $ (6.1 ) Total recognized in net periodic benefit cost and OCI $ (58.9 ) $ (34.7 ) $ (45.5 ) $ 3.5 $ (16.9 ) $ (1.7 ) Assumptions used to determine net periodic benefit costs: Discount rate 4.15 % 4.38 % 3.99 % 3.21 % 3.43 % 3.14 % Expected return on plan assets 5.50 % 6.00 % 6.00 % N/A N/A N/A Salary increases N/A N/A N/A N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 6.93 % 7.27 % 7.62 % Ultimate trend rate N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A N/A 2038 2038 2030 The estimated net gain that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year is zero for Pension Benefits and $3.2 for Other Post-Retirement Benefits plans. The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ 1.3 $ 1.0 $ 1.2 Interest cost 2.0 2.9 3.3 Expected return on plan assets (2.9 ) (3.6 ) (4.9 ) Settlement gain (0.3 ) — — Net periodic benefit cost (income) $ 0.1 $ 0.3 $ (0.4 ) Other changes recognized in OCI: Total (income) loss recognized in OCI $ (6.7 ) $ (4.6 ) $ 1.5 Total recognized in net periodic benefit cost and OCI $ (6.6 ) $ (4.3 ) $ 1.1 Assumptions used to determine net periodic benefit costs: Discount rate 2.70 % 4.00 % 3.80 % Expected return on plan assets 3.20 % 4.30 % 4.80 % Salary increases 3.20 % 3.10 % 3.05 % The estimated net (gain) loss that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year for the U.K. plan is zero . Currently, the Company records all components of net periodic benefit costs in operating profit as part of cost of sales. As described in Note 2, Summary of Significant Accounting Policies , the adoption of ASU 2017-07 in 2018 requires the Company to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income. Assumptions The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. In 2016, the Company incorporated the MMP-2016 improvement scale. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership. The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trends. A one-percentage point increase in the initial through ultimate assumed health care trend rates would have increased the accumulated post-retirement benefit obligation by $2.2 at December 31, 2017 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . A one-percentage point decrease would have decreased the obligation by $2.1 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . U.S. Plans The Company’s investment objective is to achieve long-term growth of capital, with exposure to risk set at an appropriate level. This objective shall be accomplished through the utilization of a diversified asset mix consisting of equities (domestic and international) and taxable fixed income securities. The allowable asset allocation range is: Equities 20 - 50% Fixed income 50 - 80% Real estate 0 - 7% Investment guidelines include that no security, except issues of the U.S. Government, shall comprise more than 5% of total Plan assets and further, no individual portfolio shall hold more than 7% of its assets in the securities of any single entity, except issues of the U.S. Government. The following derivative transactions are prohibited — leverage, unrelated speculation and “exotic” collateralized mortgage obligations or CMOs. Investments in hedge funds, private placements, oil and gas and venture capital must be specifically approved by the Company in advance of their purchase. The Company’s plans have asset allocations for the U.S., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.S. Equity securities — U.S. 24 % 29 % Equity securities — International 4 % 4 % Debt securities 70 % 65 % Real estate 2 % 2 % Total 100 % 100 % U.K. Plans The Trustee’s investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plan. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is: Equity securities 35 % Debt securities 60 % Property 5 % The Company’s plans have asset allocations for the U.K., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.K. Equity securities 36 % 24 % Debt securities 58 % 71 % Other 6 % 5 % Total 100 % 100 % Projected contributions and benefit payments Required pension contributions under Employee Retirement Income Security Act (ERISA) regulations are expected to be zero in 2018 and discretionary contributions are not expected in 2018 . SERP and post-retirement medical plan contributions in 2018 are not expected to exceed $7.8 . Expected contributions to the U.K. plan for 2018 are $1.4 . The Company monitors its defined benefit pension plan asset investments on a quarterly basis and believes that the Company is not exposed to any significant credit risk in these investments. The total benefits expected to be paid over the next ten years from the plans' assets or the assets of the Company, by country, are as follows: U.S. Pension Plans Other Post-Retirement Benefit Plans 2018 $ 34.7 $ 7.7 2019 $ 38.1 $ 6.8 2020 $ 41.7 $ 5.4 2021 $ 45.2 $ 5.1 2022 $ 49.0 $ 4.7 2023-2026 $ 287.0 $ 19.9 U.K. Pension Plans 2018 $ 0.8 2019 $ 0.8 2020 $ 0.9 2021 $ 0.9 2022 $ 0.9 2023-2026 $ 4.8 Fair Value Measurements The pension plan assets are valued at fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Temporary Cash Investments — These investments consist of U.S. dollars and foreign currencies held in master trust accounts. Foreign currencies held are reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as level 1 investments. Collective Investment Trusts — These investments are public investment vehicles valued using market prices and performance of the fund. The trust allocates notional units to the policy holder based on the underlying notional unit buy (offer) price using the middle market price plus transaction costs. These investments are classified within level 2 of the valuation hierarchy. In addition, the collective investment trust includes a real estate fund which is classified within level 3 of the valuation hierarchy. Commingled Equity and Bond Funds — These investments are valued at the closing price reported by the Plan Trustee. These investments are not being traded in an active market, but are backed by various investment securities managed by the Bank of New York. Fair value is being calculated using inputs that rely on the Bank of New York’s own assumptions that are based on underlying investments which are traded on an active market and classified within level 2 of the valuation hierarchy. As of December 31, 2017 and December 31, 2016 , the pension plan assets measured at fair value on a recurring basis were as follows: At December 31, 2017 Using Description December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.3 $ 0.3 $ — $ — Collective Investment Trusts 96.5 — 90.6 5.9 Commingled Equity and Bond Funds 1,410.3 — 1,410.3 — $ 1,507.1 $ 0.3 $ 1,500.9 $ 5.9 At December 31, 2016 Using Description December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.2 $ 0.2 $ — $ — Collective Investment Trusts 96 — 91.2 4.8 Commingled Equity and Bond Funds 1,302.9 — 1,302.9 — $ 1,399.1 $ 0.2 $ 1,394.1 $ 4.8 The table below sets forth a summary of changes in the fair value of the Plan’s level 3 investment assets and liabilities for the years ended December 31, 2017 and December 31, 2016 : December 31, 2017 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 December 31, 2016 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 Defined Contribution Plans The Company contributes to a defined contribution plan available to all U.S. employees, excluding IAM and UAW represented employees. Under the plan, the Company makes a matching contribution of 75% of the employee contribution to a maximum 8% of eligible individual employee compensation. In addition, non-matching contributions based on an employee’s age and years of service are paid at the end of each calendar year for certain employee groups. The Company recorded $33.6 , $33.8 , and $34.1 in contributions to these plans for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined contribution pension plan for those employees who are hired after the date of acquisition. Under the plan, the Company contributes 8% of base salary while participating employees are required to contribute 4% of base salary. The Company recorded $5.4 in contributions to this plan for the period ended December 31, 2017 , $3.8 in contributions for the period ended December 31, 2016 and $7.0 in contributions for the period ended December 31, 2015 . Defined Benefit Pension Plans Effective June 17, 2005, pension assets and liabilities were spun-off from three Boeing qualified plans into four qualified Spirit plans for each Spirit employee who did not retire from Boeing by August 1, 2005. Effective December 31, 2005, all four qualified plans were merged together. In addition, Spirit has one nonqualified plan providing supplemental benefits to executives (SERP) who transferred from a Boeing nonqualified plan to a Spirit plan and elected to keep their benefits in this plan. Both plans are frozen as of the date of the Boeing Acquisition (i.e., no future service benefits are being earned in these plans). The Company intends to fund its qualified pension plan through a trust. Pension assets are placed in trust solely for the benefit of the pension plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined benefit pension plan for those employees that had pension benefits remaining in BAE Systems’ pension plan. In accordance with U.K. legislation, the plan and its assets are managed by an independent trustee company. The investment strategy adopted by this trustee is documented in a Statement of Investment Principles in line with U.K. legislation. The principles for the investment strategy are to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. The trustee has invested the plan assets in pooled arrangements with authorized investment companies which were selected to be consistent with the plan's overall investment principles and strategy. Effective December 31, 2013, the U.K. pension plan was closed and benefits were frozen and thereafter subject only to statutory pension revaluation |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock Holdings has authorized 210,000,000 shares of stock. Of that, 200,000,000 shares are class A common stock, par value $0.01 per share, one vote per share and 10,000,000 shares are preferred stock, par value $0.01 per share. In association with the Boeing Acquisition, Spirit executives with balances in Boeing’s Supplemental Executive Retirement Plan (“SERP”) were authorized to purchase a fixed number of units of Holdings “phantom stock” at $3.33 per unit based on the present value of their SERP balances. Under this arrangement, 860,244 phantom units were purchased. Any payment on account of units may be made in cash or shares of common stock at the sole discretion of Holdings. The balance of SERP units was 47,487 and 64,170 as of December 31, 2017 and December 31, 2016, respectively. Repurchases of Common Stock During the period ended December 31, 2016, the Company repurchased 14.2 million shares of its class A common stock for $649.6 . During the period ended December 31, 2017, the Company repurchased 7.5 million shares of its class A common stock for $502.1 . |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock Compensation | Stock Compensation Holdings has established the stockholder-approved 2014 Omnibus Incentive Plan (the “Omnibus Plan”) to grant cash and equity awards to certain individuals. Compensation values are based on the value of Holdings’ class A common stock on the grant date. The common stock value is added to equity and charged to period expense. Holdings has recognized a net total of $22.1 , $42.5 , and $26.0 of stock compensation expense for the periods ended December 31, 2017, 2016, and 2015, respectively. Stock compensation expense is charged in its entirety directly to selling, general and administrative expense. Short-Term Incentive Plan The Short-Term Incentive Program under the Omnibus Plan enables eligible employees to receive incentive benefits in the form of cash as determined by the Compensation Committee. Board of Directors Stock Awards The Company’s Omnibus Plan provides non-employee directors the opportunity to receive grants of restricted shares of class A common stock, or Restricted Stock Units (“RSUs”) or a combination of both class A common stock and RSUs. The class A common stock grants and RSU grants vest one year from the grant date subject to the directors compliance with the one-year service condition; however, the RSU grants are not payable until the director’s separation from service. The Board of Directors is authorized to make discretionary grants of shares or RSUs from time to time. Compensation values are based on the value of Holdings’ class A common stock on the grant date. The common stock value is added to equity and charged to period expense or included in inventory and cost of sales. The Company expensed a net amount of $1.0 , $1.2 , and $0.9 for the Board of Directors shares for the periods ended December 31, 2017, 2016, and 2015, respectively. The Company’s unamortized stock compensation related to these restricted shares is $0.5 , which will be recognized over a weighted average remaining period of 5 months . The intrinsic value of the unvested shares based on the value of the Company's stock at December 31, 2017 was $2.1 , based on the value of the Company’s stock and the number of unvested shares. The following table summarizes restricted stock and RSU grants to members of the Company’s Board of Directors for the periods ended December 31, 2017, 2016, and 2015: Shares Value (1) Class A Class A (Thousands) Board of Directors Stock Grants Nonvested at December 31, 2014 30 $ 1.1 Granted during period 21 1.1 Vested during period (27 ) (1.0 ) Forfeited during period (3 ) (0.1 ) Nonvested at December 31, 2015 21 1.1 Granted during period 26 1.2 Vested during period (21 ) (1.1 ) Forfeited during period — — Nonvested at December 31, 2016 26 1.2 Granted during period 24 1.2 Vested during period (26 ) (1.2 ) Forfeited during period — — Nonvested at December 31, 2017 24 $ 1.2 _______________________________________ (1) Value represents grant date fair value. Long-Term Incentive Awards Holdings has established the Long-Term Incentive Plan (the “LTIP”) under the Omnibus Plan to grant equity awards to certain employees. Generally, specified employees are entitled to receive a long-term incentive award that consists of the following: • 60% of the award consists of time-based, service-condition restricted stock that vests in equal installments over a three-year period (the “RS Award”). Values for these awards are based on the value of Holdings’ class A common stock on the grant date. • 20% of the award consists of performance-based, market-condition restricted stock that vests on the three-year anniversary of the grant date contingent upon TSR compared to the Company’s peers (the “TSR Award”). Values for these awards are initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. • 20% of the award consists of performance-based, (performance-condition) restricted stock that vests on the three-year anniversary of the grant date contingent upon the Company’s cumulative three-year free cash flow as a percentage of the Company’s cumulative three-year revenues meeting certain pre-established goals (the “FCF Percentage Award”). Values for these awards are based on the dividend adjusted value of Holdings’ class A common stock on the grant date. For the twelve months ended December 31, 2017, 352,043 shares of class A common stock with an aggregate grant date fair value of $20.4 were granted as RS Awards under the Company's LTIP. In addition, 292,160 shares of class A common stock with an aggregate grant date fair value of $15.0 were granted as TSR Awards and FCF Percentage Awards under the Company’s LTIP. For the twelve months ended December 31, 2016, 623,620 shares of class A common stock with an aggregate grant date fair value of $27.4 were granted as RS Awards under the Company's LTIP. In addition, 206,132 shares of class A common stock with an aggregate grant date fair value of $10.9 were granted as TSR Awards under the Company’s LTIP. Additionally, 503,543 shares of class A common stock with an aggregate grant date fair value of $14.9 awarded under the Company’s LTIP vested during the twelve months ended 2016. For the twelve months ended December 31, 2015, the Board of Directors approved grants of 535,648 shares of class A common stock with an aggregate grant date fair value of $26.6 as RS Awards under the Company’s LTIP. Additionally, 96,423 shares of class A common stock with an aggregate grant date fair value of $6.2 were granted as TSR Awards under the Company’s LTIP. Additionally, 878,706 shares of class A common stock with an aggregate grant date fair value of $21.6 awarded under the Company’s LTIP vested during 2015. The Company expensed a net total of $21.1 , $41.3 , and $24.9 for class A LTIP shares for the twelve month periods ended December 31, 2017, 2016, and 2015, respectively. The Company’s unamortized stock compensation related to these unvested class A shares is $26.5 which will be recognized over a weighted average remaining period of 1.7 years . The intrinsic value of the unvested class A LTIP shares at December 31, 2017 was $111.4 , based on the value of the Company’s common stock and the number of unvested shares. The following table summarizes the activity of the restricted shares under the LTIP for the twelve month periods ended December 31, 2017, 2016, and 2015: Shares Value (1) Class A Class A (Thousands) Long-Term Incentive Plan/Long-Term Incentive Award under Omnibus Plan Nonvested at December 31, 2014 2,255 $ 58.3 Granted during period 632 32.8 Vested during period (879 ) (21.6 ) Forfeited during period (171 ) (5.1 ) Nonvested at December 31, 2015 1,837 64.4 Granted during period 830 38.3 Vested during period (830 ) (24.5 ) Forfeited during period (280 ) (10.9 ) Nonvested at December 31, 2016 1,557 67.3 Granted during period 644 35.5 Vested during period (655 ) (25.0 ) Forfeited during period (93 ) (4.4 ) Nonvested at December 31, 2017 1,453 $ 73.4 _______________________________________ (1) Value represents grant date fair value. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following summarizes pretax income: 2017 2016 2015 U.S. $ 426.6 $ 593.3 $ 739.4 International 108.0 67.2 68.7 Total (before equity earnings) $ 534.6 $ 660.5 $ 808.1 The tax provision contains the following components: 2017 2016 2015 Current Federal $ 107.3 $ 158.0 $ 175.5 State 0.7 3.6 3.5 Foreign 20.0 29.2 5.5 Total current $ 128.0 $ 190.8 $ 184.5 Deferred Federal $ 53.6 $ 20.0 $ (119.1 ) State (0.2 ) (1.0 ) (48.9 ) Foreign (1.4 ) (17.7 ) 4.1 Total deferred 52.0 1.3 (163.9 ) Total tax provision $ 180.0 $ 192.1 $ 20.6 The income tax provision from operations differs from the tax provision computed at the U.S. federal statutory income tax rate due to the following: 2017 2016 2015 Tax at U.S. Federal statutory rate $ 187.1 35.0 % $ 231.2 35.0 % $ 283.3 35.0 % State income taxes, net of Federal benefit 8.8 1.6 11.6 1.8 15.0 1.9 State income tax credits, net of Federal benefit (9.7 ) (1.8 ) (9.4 ) (1.4 ) (4.1 ) (0.5 ) Foreign rate differences (20.6 ) (3.8 ) (13.5 ) (2.0 ) (13.5 ) (1.7 ) Research and Experimentation (2.6 ) (0.5 ) (3.6 ) (0.6 ) (3.3 ) (0.4 ) Domestic Production Activities Deduction (7.1 ) (1.3 ) (16.4 ) (2.5 ) (17.8 ) (2.2 ) Interest on assessments (0.1 ) — 0.6 0.1 (1.0 ) (0.1 ) Excess tax benefits (4.8 ) (0.9 ) (4.6 ) (0.7 ) — — Valuation Allowance - U.S. Deferred Tax Asset — — — — (241.9 ) (29.9 ) Transition Tax 44.9 8.4 — — — — Re-measurement of Deferred Taxes (16.2 ) (3.0 ) — — — — Other 0.3 — (3.8 ) (0.6 ) 3.9 0.5 Total provision for income taxes $ 180.0 33.7 % $ 192.1 29.1 % $ 20.6 2.6 % On December 22, 2017, President Trump signed into law legislation referred to as the “Tax Cuts and Jobs Act” (the “TCJA”). Substantially all of the provisions of the TCJA are effective for taxable years beginning after December 31, 2017. The TCJA includes significant changes to the Internal Revenue Code of 1986 (as amended, the Code), including amendments which significantly change the taxation of business entities. The more significant changes that impact the Company included in the TCJA are reductions in the corporate federal income tax rate from 35% to 21%, the elimination of the domestic manufacturing deduction, the ability to immediately expense certain property for specific tax years, the requirement for companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and new taxes on certain foreign sourced earnings as the U.S. transitions to a territorial tax system. The staff of the U.S. Securities and Exchange Commission (SEC) has recognized the complexity of reflecting the impacts of the TCJA, and on December 22, 2017 issued guidance in Staff Accounting Bulletin 118 (SAB 118) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the TCJA; however, in certain cases, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In other cases, the Company has not been able to make a reasonable estimate and continue to account for those items based on its existing accounting under ASC 740, Income Taxes, and the provisions of the tax laws that were in effect immediately prior to enactment. For the items for which the Company was able to determine a reasonable estimate, The Company recognized a provisional amount of $28.7 , which is included as a component of income tax expense from continuing operations. The one-time transition tax is based on its total post-1986 earnings and profits (“E&P”) that the Company previously deferred from U.S. income taxes. The Company recorded a provisional amount for its one-time transition tax liability for all of its operating foreign subsidiaries, resulting in an increase in income tax expense of $44.9 , including the anticipated state income tax effect. The Company has analyzed and calculated a provisional estimate for the cumulative post-1986 E&P for these foreign subsidiaries, the impact of certain expense allocations, the potential impact of any recapture of an Overall Foreign Loss balance and an assessment of potential foreign tax credits. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. The Company re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. However, the Company is still analyzing certain aspects of the TCJA and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. Included within its net deferred tax assets and liabilities are state income tax credits, which are recorded net of federal tax expense. With a lower federal income tax rate of 21%, the net value of these credits has increased. The provisional amount recorded related to the re-measurement of its net deferred tax asset balance was a tax benefit recorded as a component of income tax from continuing operations of $16.2 . Significant tax effected temporary differences comprising the net deferred tax asset are as follows: 2017 2016 Long-term contracts $ 69.0 $ 127.7 Post-retirement benefits other than pensions 11.2 19.1 Pension and other employee benefit plans (65.1 ) (77.5 ) Employee compensation accruals 33.8 68.0 Depreciation and amortization (104.4 ) (154.4 ) Inventory 1.9 1.7 State income tax credits 89.8 71.7 Accruals and reserves 58.3 91.7 Deferred production (1.7 ) (3.7 ) Net operating loss carryforward 0.3 3.7 Other (5.9 ) (5.7 ) Net deferred tax asset 87.2 142.3 Valuation allowance (15.0 ) (13.6 ) Net deferred tax asset $ 72.2 $ 128.7 Deferred tax detail above is included in the balance sheet and supplemental information as follows: 2017 2016 Non-current deferred tax assets 72.5 128.8 Non-current deferred tax liabilities (0.3 ) (0.1 ) Net non-current deferred tax assets $ 72.2 $ 128.7 Total deferred tax asset $ 72.2 $ 128.7 The following is a roll forward of the deferred tax valuation allowance at December 31, 2017, 2016 and 2015: Deferred Tax Asset Valuation Allowance 2017 2016 2015 Balance, January 1 $ 13.5 $ 15.1 $ 257.3 U.S. deferred tax asset — — (109.3 ) Income tax credits 1.6 (0.9 ) (57.4 ) Depreciation and amortization 0.1 (0.1 ) 119.6 Long-term contracts — — (194.6 ) Other (0.2 ) (0.6 ) (0.5 ) Balance, December 31 $ 15.0 $ 13.5 $ 15.1 At December 31, 2017, the Company has not completed its accounting for the tax effects of enactment of the TCJA; however, the Company has made a reasonable estimate of the effects on its existing deferred tax balances. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assess all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. The Company continues to maintain $15.0 in valuation allowances primarily against separate company state income tax credit deferred tax assets. The Company continues to maintain that earnings of all operating foreign subsidiaries are indefinitely invested outside the U.S. on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and its specific plans for reinvestment of those subsidiary earnings to fund working capital requirements, service existing obligations and invest in efforts to secure future business. As a result, no additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities. The Company has completed analysis regarding potential withholding tax related to potential future dividends and anticipate that any associated withholding taxes would be immaterial based upon current law. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable at this time. The beginning and ending unrecognized tax benefits reconciliation is as follows: 2017 2016 2015 Beginning balance $ 6.3 $ 6.2 $ 5.9 Gross increases related to current period tax positions — — — Gross increases related to prior period tax positions 0.4 0.1 0.3 Gross decreases related to prior period tax positions — — — Statute of limitations' expiration — — — Settlements — — — Ending balance $ 6.7 $ 6.3 $ 6.2 Included in the December 31, 2017 balance was $5.3 in unrecognized tax benefits which, if ultimately recognized, will reduce the Company's effective tax rate. The Internal Revenue Service's examination of the Company's 2016 U.S. Federal income tax return is substantially complete. The Company will continue to participate in the Compliance Assurance Process ("CAP") program for its 2017 and 2018 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 state and foreign jurisdictions and the statute of limitations has lapsed on its 2014 U.K. tax return. While a change could result from the ongoing examinations, the Company expects no material change in its recorded unrecognized tax liability in the next 12 months. The Company reports interest and penalties, if any, related to unrecognized tax benefits in the income tax provision. As of December 31, 2017, and December 31, 2016, there was no accrued interest on the unrecognized tax benefit liability included in the balance sheets and there was no impact of interest on the Company’s unrecognized tax benefit liability during 2017 and 2016. The Company continues to operate under a tax holiday in Malaysia effective through September 2024. In 2014, the Company received formal approval of the tax holiday from the Malaysian tax authorities, with conditional renewals once every five years beginning in September 2014. The Company expects to meet the requirements for the conditional renewals. The Company’s 2017 income tax expense reflects $7.2 of Malaysia tax holiday benefit for the year ended December 31, 2017. At December 31, 2017, the Company had total North Carolina state net operating loss carryforwards of $17.0 which begin to expire in 2026. Included in the deferred tax assets at December 31, 2017 are $62.4 in Kansas High Performance Incentive Program ("HPIP") Credit, $10.0 in Kansas Research & Development ("R&D") Credit, and $3.3 in Kansas Business and Jobs Development Credit, totaling $75.7 in gross Kansas state income tax credit carryforwards, net of federal benefit. The HPIP Credit provides a 10% investment tax credit for qualified business facilities located in Kansas for which $8.8 expires in 2028, $14.3 expires in 2029, $10.8 expires in 2030, $6.4 expires in 2031, $10.8 expires in 2032, and $11.3 expires in 2033. The R&D Credit provides a credit for qualified research and development expenditures conducted within Kansas. This credit can be carried forward indefinitely. The Business and Jobs Development Credit provides a tax credit for increased employment in Kansas. This credit can be carried forward indefinitely. Included in the deferred tax assets at December 31, 2017 are $6.9 in North Carolina Investing in Business Property Credit, $4.0 in North Carolina Investment in Real Property Credit, and $3.3 in North Carolina Creating Jobs Credit, totaling $14.2 in gross North Carolina state income tax credit carryforwards, net of federal benefit. The Investing in Business Property Credit provides a 7% investment tax credit for property located in a North Carolina development area and the Investment in Real Property Credit provides a 30% investment tax credit for real property located in a North Carolina development area. The Creating Jobs Credit provides a tax credit for increased employment in North Carolina. These North Carolina state income tax credits can be carried forward 20 years. It is management's opinion that none of these North Carolina state income tax credits will be utilized before they expire and a $14.2 valuation allowance is recorded against the deferred tax asset, net of federal benefit. The Company had $27.1 and $7.4 of income tax receivable as of December 31, 2017 and December 31, 2016, respectively, which is reflected within other current assets on the balance sheet. The Company had $38.6 of non-current income tax payable as of December 31, 2017, which is reflected within other liabilities on the balance sheet. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity Employee Stock Purchase Plan In April 2017, the stockholders approved the Spirit AeroSystems Holdings, Inc. Employee Stock Purchase Plan (the “ESPP”) with the associated registration statement on Form S-8 filed on September 6, 2017. The ESPP became effective on October 1, 2017. The ESPP is implemented over consecutive six-month offering periods, beginning on April 1 and October 1 of each year and ending on the last day of September and March, respectively. Shares are issued on the last trading day of each six-month offering period. Generally, any person who is employed by the Company, Spirit or by a subsidiary or affiliate of the Company that has been designated by the Compensation Committee may participate in the ESPP. The maximum number of shares of the Company's class A common stock that may be purchased under the ESPP will be 1,000,000 shares, subject to adjustment for stock dividends, stock splits or combinations of shares of the Company's stock.The per-share purchase price for the Company's class A common stock purchased under the ESPP is 95% of the fair market value of a share of such stock on the last day of the offering period. 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 Dividends The Company paid cash dividends of $0.10 per share of class A common stock each quarter in 2017. The total amount of dividends paid during 2017 was $47.1 . On January 24, 2018, the Company announced that its Board of Directors declared a $0.10 per share quarterly cash dividend on the outstanding common stock of the Company payable on April 9, 2018 to stockholders of record at the close of business on March 19, 2018. Any future determination to continue to pay dividends will be at the discretion of our Board of Directors and will depend upon, among other factors, our results of operations, financial condition, capital requirements and contractual restrictions, including the requirements of financing agreements to which we may be a party. No assurance can be given that cash dividends will continue to be declared and paid at historical levels or at all. 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 following table sets forth the computation of basic and diluted earnings per share: For the Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Income Shares Per Share Amount Income Shares Per Share Amount Loss Shares Per Share Amount Basic EPS Income available to common shareholders $ 354.7 116.8 $ 3.04 $ 469.4 126.1 $ 3.72 $ 788.0 138.4 $ 5.69 Income allocated to participating securities 0.2 0.1 0.3 0.1 0.7 0.1 Net income $ 354.9 $ 469.7 $ 788.7 Diluted potential common shares 1.0 0.8 0.9 Diluted EPS Net income $ 354.9 117.9 $ 3.01 $ 469.7 127.0 $ 3.70 $ 788.7 139.4 $ 5.66 Included in the outstanding common shares were 1.5 million , 1.6 million and 1.9 million of issued but unvested shares at December 31, 2017 , 2016 and 2015 , respectively, which are excluded from the basic EPS calculation. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss, net of tax, is summarized by component as follows: December 31, 2017 December 31, 2016 Pension $ (75.9 ) $ (98.5 ) SERP/ Retiree medical 17.7 20.5 Foreign currency impact on long term intercompany loan (14.2 ) (19.1 ) Currency translation adjustment (56.1 ) (89.8 ) Total accumulated other comprehensive loss $ (128.5 ) $ (186.9 ) Amortization of the pension plans’ net loss reclassified from accumulated other comprehensive loss and realized into costs of sales and selling, general and administrative on the consolidated statements of operations was $0.3 , $5.7 and 3.7 for the twelve months ended December 31, 2017 , 2016 and 2015 , respectively. Noncontrolling Interest Noncontrolling interest at December 31, 2017 remained unchanged from the prior year at $0.5 . Repurchases of Common Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of December 31, 2017, no treasury shares have been reissued or retired. On January 27, 2016, the Company announced that its Board of Directors authorized an additional new share repurchase program for the purchase of up to $600.0 of the Company's class A common stock (the “2016 Share Repurchase Program”). During the period ended December 31, 2016, the Company repurchased 14.2 million shares of its class A common stock for $649.6 , which consisted of the remaining $50.0 from the prior share repurchase program and approximately all of the $600.0 of the authorized amount of the 2016 Share Repurchase Program. On November 1, 2016, the Company's Board of Directors authorized a share repurchase program for the purchase of up to $600.0 of the Company's common stock (the “2017 Share Repurchase Program”). On July 25, 2017, the Company's Board of Directors authorized an increase to the 2017 Share Repurchase Program authorization up to an additional $400.0 of the Company's class A common stock. On January 24, 2018, the Board of Directors approved an increase to the 2017 Share Repurchase Program authorization up to an additional $500.0 . As a result, the total amount remaining in the authorization is approximately $1,000.0 . During the period ended December 31, 2017, the Company repurchased 7.5 million shares of its class A common stock for $502.1 . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [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. 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. The Court granted Spirit’s motion as to fees, costs, and expenses incurred as a result of the litigation and underlying matters and denied the motion as to pre- and post-trial interest. On January 3, 2018, Boeing filed a Notice of Appeal and on that same date the Court issued a briefing schedule establishing that Boeing’s opening brief is due on or before February 19, 2018. Spirit will timely file its answering brief and intends to defend vigorously against the appeal. Commitments The Company leases equipment and facilities under various non-cancelable capital and operating leases. The capital leasing arrangements extend through 2024. Minimum future lease payments under these leases at December 31, 2017 are as follows: Capital Operating Present Value Interest Total 2018 $ 8.3 $ 5.2 $ 1.5 $ 15.0 2019 $ 7.4 $ 5.5 $ 1.3 $ 14.2 2020 $ 6.0 $ 5.7 $ 1.0 $ 12.7 2021 $ 4.8 $ 5.8 $ 1.1 $ 11.7 2022 $ 3.9 $ 5.9 $ 0.6 $ 10.4 2023 and thereafter $ 15.2 $ 8.5 $ 0.5 $ 24.2 Operating lease payments were as follows: 2017 2016 2015 Minimum rentals $ 14.1 $ 15.4 $ 17.8 Total $ 14.1 $ 15.4 $ 17.8 Spirit's aggregate capital commitments totaled $243.0 and $180.9 at December 31, 2017 and December 31, 2016 , respectively. Guarantees Contingent liabilities in the form of letters of guarantee have been provided by the Company. Outstanding guarantees were $23.2 and $20.7 at December 31, 2017 and December 31, 2016 , respectively. Restricted Cash The Company was required to maintain $20.0 and $19.9 of restricted cash as of December 31, 2017 and December 31, 2016, respectively, related to certain collateral requirements for obligations under its workers’ compensation programs. Restricted cash is included in other assets on the balance sheet. Indemnification The Company has entered into customary indemnification agreements with each of its non-employee 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 on the 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 $101.0 and $99.0 as of December 31, 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 $223.0 and $209.0 , as of December 31, 2017 and December 31, 2016, respectively. The following is a roll forward of the service warranty and extraordinary rework balance at December 31, 2017, 2016 and 2015: 2017 2016 2015 Balance, January 1 $ 163.7 $ 158.7 $ 119.9 Charges to costs and expenses 5.8 16.7 43.8 Payouts (4.0 ) (9.5 ) (4.8 ) Exchange rate 0.9 (2.2 ) (0.2 ) Balance, December 31 $ 166.4 $ 163.7 $ 158.7 Bonds Since the Company's incorporation, Spirit and its predecessor have periodically utilized City of Wichita issued Industrial Revenue Bonds (“IRBs”) to finance self-constructed and purchased real property at its Wichita site. Tax benefits associated with IRBs include provisions for a ten-year complete property tax abatement and a Kansas Department of Revenue sales tax exemption on all IRB funded purchases. Spirit and its predecessor purchased these IRBs so they are bondholders and debtor / lessee for the property purchased with the IRB proceeds. Spirit recorded the property net of a capital lease obligation to repay the IRB proceeds on its balance sheet. Gross assets and liabilities associated with these IRBs were $288.5 and $399.7 as of December 31, 2017 and December 31, 2016, respectively. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net is summarized as follows: For the Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Kansas Development Finance Authority bond $ 3.2 $ 3.4 $ 3.9 Rental and miscellaneous income (expense) 1.2 0.3 (2.0 ) Interest Income 6.4 3.6 2.1 Loss on sale of accounts receivable (see Note 4, Accounts Receivable, net ) (3.3 ) — — Foreign currency losses (0.3 ) (14.6 ) (6.2 ) Total $ 7.2 $ (7.3 ) $ (2.2 ) 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. |
Significant Concentration of Ri
Significant Concentration of Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Significant Concentration Risk | Significant Concentrations of Risk Economic Dependence The Company’s largest customer (Boeing) accounted for approximately 79% , 81% , and 84% of the revenues for the periods ended December 31, 2017, 2016, and 2015, respectively. Approximately 44% and 56% of the Company's accounts receivable balance at December 31, 2017, 2016, and 2015, respectively, was attributable to Boeing. The Company’s second largest customer (Airbus) accounted for approximately 16% , 15% , and 11% of the revenues for the periods ended December 31, 2017, 2016 and 2015, respectively. Approximately 38% and 28% of the Company's accounts receivable balance at December 31, 2017, 2016 and 2015, respectively, was attributable to Airbus. Employees As of December 31, 2017 , the Company had approximately 13,700 employees located in the Company's four U.S. facilities. Approximately 87% of the Company’s U.S. employees are represented by five unions. As of December 31, 2017 , the Company had 900 employees located in the Company's two U.K. facilities. Approximately 67% , of the Company’s U.K. employees are represented by one union. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accrued expenses and other liabilities consist of the following: December 31, 2017 December 31, Accrued expenses Accrued wages and bonuses $ 40.8 $ 32.9 Accrued fringe benefits 116.3 117.5 Accrued interest 5.8 5.3 Workers' compensation 8.1 6.7 Property and sales tax 24.7 15.5 Warranty/extraordinary rework reserve — current 2.2 2.9 Other 71.4 35.4 Total $ 269.3 $ 216.2 Other liabilities Deferred tax liability — non-current $ 0.3 $ 0.1 Warranty/extraordinary rework reserve — non-current 164.2 160.8 Customer cost recovery 22.9 40.7 Other 65.2 74.5 Total $ 252.6 $ 276.1 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment and Geographical Information The Company operates in three principal segments: Fuselage Systems, Propulsion Systems and Wing Systems. Revenue from Boeing represents a substantial portion of our revenues in all segments. Wing Systems also includes significant revenues from Airbus. Approximately 95% of the Company's net revenues for the twelve months ended December 31, 2017 came from the Company's two largest customers, Boeing and Airbus. All other activities fall within the All Other segment, principally made up of sundry sales of miscellaneous services, tooling contracts and sales of natural gas through a tenancy-in-common with other companies that have operations in Wichita, Kansas. 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. The Company’s Fuselage Systems segment includes development, production and marketing of forward, mid and rear fuselage sections and systems, primarily to aircraft OEMs (OEM refers to aircraft original equipment manufacturer), 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. 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, is used in the design and production of products for each of the segments and, therefore, is 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 aerostructure production 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 twelve months ended December 31, 2017 , 2016 and 2015 : Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Twelve Months Ended December 31, 2015 Segment Revenues Fuselage Systems $ 3,730.8 $ 3,498.8 $ 3,447.0 Propulsion Systems 1,666.2 1,777.3 1,750.7 Wing Systems 1,578.8 1,508.7 1,437.7 All Other 7.2 8.1 8.5 $ 6,983.0 $ 6,792.9 $ 6,643.9 Segment Operating Income (1) Fuselage Systems $ 347.7 $ 468.6 $ 607.3 Propulsion Systems 275.1 325.9 378.2 Wing Systems 212.4 223.6 178.5 All Other 2.0 1.6 1.3 837.2 1,019.7 1,165.3 Corporate SG&A (200.3 ) (228.3 ) (220.8 ) Unallocated impact of severe weather event (see Note 25) (19.9 ) (12.1 ) — Research and development (31.2 ) (23.8 ) (27.8 ) Unallocated cost of sales (2) (16.7 ) (30.4 ) (53.7 ) Total operating income $ 569.1 $ 725.1 $ 863.0 _______________________________________ (1) Inclusive of forward losses, changes in estimate on loss programs and cumulative catch-up adjustments. These changes in estimates for the periods ended December 31, 2017, 2016 and 2015 are further detailed in Note 3, Changes in Estimates . (2) For 2017, includes charges of $1.8 and $12.7 , related to warranty reserve and charges for excess purchases and purchase commitments, respectively. For 2016, includes charges of $13.8 and $23.6 related to warranty reserve and early retirement incentives, respectively, offset by $7.9 for the settlement of historical claims with suppliers. In 2015, includes charges of $40.7 , $0.8 , and $6.4 related to warranty reserve, reduction in workforce and unallocated inventory write-offs, respectively. Most of the Company’s revenue is obtained from sales inside the U.S. However the Company does generate international sales, primarily from sales to Airbus. The following chart illustrates the split between domestic and foreign revenues: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Revenue Source (1) Net Revenues Percent of Total Net Revenues Net Revenues Percent of Total Net Revenues Net Revenues Percent of Total Net Revenues United States $ 5,722.9 82 % $ 5,650.1 83 % $ 5,709.0 86 % International United Kingdom 740.9 11 % 690.7 10 % 570.1 9 % Other 519.2 7 % 452.1 7 % 364.8 5 % Total International 1,260.1 18 % 1,142.8 17 % 934.9 14 % Total Revenues $ 6,983.0 100 % $ 6,792.9 100 % $ 6,643.9 100 % _______________________________________ (1) Net Revenues are attributable to countries based on destination where goods are delivered. Most of the Company’s long-lived assets are located within the U.S. Approximately 4% of the Company's long-lived assets based on book value are located in the U.K. with approximately another 4% of the Company's total long-lived assets located in countries outside the U.S. and the U.K. The following chart illustrates the split between domestic and foreign assets: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Asset Location Total Long-Lived Assets Percent of Total Long-Lived Assets Total Long-Lived Assets Percent of Total Long-Lived Assets Total Long-Lived Assets Percent of Total Long-Lived Assets United States $ 1,939.0 92 % $ 1,828.2 92 % $ 1,755.6 90 % International United Kingdom 82.5 4 % 80.0 4 % 95.0 5 % Other 83.8 4 % 83.4 4 % 100.1 5 % Total International 166.3 8 % 163.4 8 % 195.1 10 % Total Long-Lived Assets $ 2,105.3 100 % $ 1,991.6 100 % $ 1,950.7 100 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Data (Unaudited) Quarter Ended 2017 December 31, 2017 (1) September 28, 2017 (2) June 29, 2017 (3) March 30, 2017 (4) Revenues $ 1,714.6 $ 1,748.2 $ 1,826.1 $ 1,694.1 Gross profit (loss) $ 290.4 $ 269.7 $ (20.9 ) $ 281.3 Operating income (loss) $ 226.9 $ 211.4 $ (82.8 ) $ 213.6 Net income (loss) $ 122.8 $ 147.2 $ (56.8 ) $ 141.7 Earnings (loss) per share, basic $ 1.08 $ 1.27 $ (0.48 ) $ 1.19 Earnings (loss) per share, diluted $ 1.07 $ 1.26 $ (0.48 ) $ 1.17 Dividends declared per common share $ 0.10 $ 0.10 $ 0.10 $ 0.10 Quarter Ended 2016 December 31, (5) September 29, June 30, March 31, Revenues $ 1,570.0 $ 1,711.4 $ 1,829.9 $ 1,681.6 Gross profit $ 236.8 $ 272.0 $ 157.9 $ 322.6 Operating income $ 160.9 $ 214.4 $ 83.3 $ 266.5 Net income $ 108.2 $ 145.1 $ 44.8 $ 171.6 Earnings per share, basic $ 0.90 $ 1.16 $ 0.35 $ 1.30 Earnings per share, diluted $ 0.89 $ 1.16 $ 0.35 $ 1.29 Dividends declared per common share $ 0.10 $ — $ — $ — ______________________________________ (1) Fourth quarter 2017 earnings include the impact of net favorable changes in estimate of $12.9 . (2) Third quarter 2017 earnings include the impact of net unfavorable changes in estimate of $4.8 . (3) Second quarter 2017 earnings include the impact of net unfavorable changes in estimate of $329.2 . (4) First quarter 2017 earnings include the impact of net favorable changes in estimate of $5.2 . (5) Fourth quarter 2016 earnings include the impact of net favorable changes in estimate of $7.5 , as well as $11.8 related to early retirement incentives. (6) Third quarter 2016 earnings include the impact of net favorable changes in estimate of $5.5 . (7) Second quarter 2016 earnings include the impact of net unfavorable changes in estimate of $134.7 . (8) First quarter 2016 earnings include the impact of net favorable changes in estimate of $47.2 , as well as $11.8 related to early retirement incentives. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The 2022 Notes and 2026 Notes were fully and unconditionally guaranteed on a joint and several senior unsecured basis by Holdings and its 100% owned domestic subsidiaries, other than Spirit (the “Subsidiary Guarantors”). Following the effectiveness of the A&R Credit Agreement, the guarantees of the 2022 Notes and 2026 Notes by the Subsidiary Guarantors were released, and the 2022 Notes and 2026 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Holdings. No subsidiaries are guarantors to any of Spirit’s senior notes. For comparative purposes, all statements below have been updated to reflect the effects of the A&R Credit Agreement on the guarantor structure. 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, as well as the 2020 Notes which were outstanding through July 1, 2016; (iii) The Company’s subsidiaries, (the “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 and Comprehensive Income For the Twelve Months Ended December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,236.4 $ 1,362.3 $ (615.7 ) $ 6,983.0 Operating costs and expenses Cost of sales — 5,559.4 1,218.8 (615.7 ) 6,162.5 Selling, general and administrative 12.4 173.1 14.8 — 200.3 Impact of severe weather event — 19.9 — — 19.9 Research and development — 27.8 3.4 — 31.2 Total operating costs and expenses 12.4 5,780.2 1,237.0 (615.7 ) 6,413.9 Operating (loss) income (12.4 ) 456.2 125.3 — 569.1 Interest expense and financing fee amortization — (41.6 ) (5.7 ) 5.6 (41.7 ) Other income (expense), net — 12.4 0.4 (5.6 ) 7.2 (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (12.4 ) 427.0 120.0 — 534.6 Income tax benefit (provision) 4.7 (161.7 ) (23.0 ) — (180.0 ) (Loss) income before equity in net income of affiliates and subsidiaries (7.7 ) 265.3 97.0 — 354.6 Equity in net income of affiliates 0.3 — 0.3 (0.3 ) 0.3 Equity in net income of subsidiaries 362.3 97.0 — (459.3 ) — Net income 354.9 362.3 97.3 (459.6 ) 354.9 Other comprehensive loss 58.4 58.4 42.2 (100.6 ) 58.4 Comprehensive income $ 413.3 $ 420.7 $ 139.5 $ (560.2 ) $ 413.3 Condensed Consolidating Statements of Operations and Comprehensive Loss For the Twelve Months Ended December 31, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,124.6 $ 1,284.2 $ (615.9 ) $ 6,792.9 Operating costs and expenses Cost of sales — 5,255.0 1,164.5 (615.9 ) 5,803.6 Selling, general and administrative 8.7 203.6 16.0 — 228.3 Impact of severe weather event — 12.1 — — 12.1 Research and development — 20.8 3.0 — 23.8 Total operating costs and expenses 8.7 5,491.5 1,183.5 (615.9 ) 6,067.8 Operating (loss) income (8.7 ) 633.1 100.7 — 725.1 Interest expense and financing fee amortization — (57.0 ) (7.8 ) 7.5 (57.3 ) Other income (expense), net — 14.9 (14.7 ) (7.5 ) (7.3 ) (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (8.7 ) 591.0 78.2 — 660.5 Income tax benefit (provision) 2.6 (179.2 ) (15.5 ) (192.1 ) (Loss) income before equity in net income of affiliates and subsidiaries (6.1 ) 411.8 62.7 — 468.4 Equity in net income of affiliates 1.3 — 1.3 (1.3 ) 1.3 Equity in net income of subsidiaries 474.5 62.6 — (537.1 ) — Net income 469.7 474.4 64.0 (538.4 ) 469.7 Other comprehensive loss (26.4 ) (26.4 ) (61.3 ) 87.7 (26.4 ) Comprehensive income $ 443.3 $ 448.0 $ 2.7 $ (450.7 ) $ 443.3 Condensed Consolidating Statements of Operations and Comprehensive Income For the Twelve Months Ended December 31, 2015 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,096.1 $ 1,030.6 $ (482.8 ) $ 6,643.9 Operating costs and expenses Cost of sales — 5,095.4 919.7 (482.8 ) 5,532.3 Selling, general and administrative 7.1 194.9 18.8 — 220.8 Research and development — 25.7 2.1 — 27.8 Total operating costs and expenses 7.1 5,316.0 940.6 (482.8 ) 5,780.9 Operating (loss) income (7.1 ) 780.1 90.0 — 863.0 Interest expense and financing fee amortization — (52.2 ) (7.8 ) 7.3 (52.7 ) Other income (expense), net — 11.3 (6.3 ) (7.2 ) (2.2 ) (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (7.1 ) 739.2 75.9 0.1 808.1 Income tax (provision) benefit 0.1 (8.4 ) (12.3 ) (20.6 ) (Loss) income before equity in net income of affiliates and subsidiaries (7.0 ) 730.8 63.6 0.1 787.5 Equity in net income of affiliates 1.2 — 1.2 (1.2 ) 1.2 Equity in net income of subsidiaries 794.5 63.6 — (858.1 ) — Net income 788.7 794.4 64.8 (859.2 ) 788.7 Other comprehensive loss (6.7 ) (6.7 ) (21.1 ) 27.8 (6.7 ) Comprehensive income $ 782.0 $ 787.7 $ 43.7 $ (831.4 ) $ 782.0 Condensed Consolidating Balance Sheet December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 365.1 $ 58.2 $ — $ 423.3 Restricted cash — 2.2 — — 2.2 Accounts receivable, net — 752.6 330.9 (361.3 ) 722.2 Inventory, net — 1,010.0 439.9 — 1,449.9 Other current assets — 50.3 3.2 — 53.5 Total current assets — 2,180.2 832.2 (361.3 ) 2,651.1 Property, plant and equipment, net — 1,585.8 519.5 — 2,105.3 Pension assets — 327.2 19.9 — 347.1 Investment in subsidiary 1,801.5 704.4 — (2,505.9 ) — Other assets — 298.2 124.5 (258.4 ) 164.3 Total assets $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Liabilities Accounts payable $ — $ 629.0 $ 425.4 $ (361.3 ) $ 693.1 Accrued expenses — 239.5 29.8 — 269.3 Profit sharing — 103.4 6.1 — 109.5 Current portion of long-term debt — 30.2 0.9 — 31.1 Advance payments, short-term — 100.0 — — 100.0 Deferred revenue, short-term — 63.6 1.0 — 64.6 Deferred grant income liability — current — — 21.6 — 21.6 Other current liabilities — 324.3 7.5 — 331.8 Total current liabilities — 1,490.0 492.3 (361.3 ) 1,621.0 Long-term debt — 1,110.6 167.1 (157.8 ) 1,119.9 Advance payments, long-term — 231.7 — — 231.7 Pension/OPEB obligation — 40.8 — — 40.8 Deferred grant income liability — non-current — — 39.3 — 39.3 Deferred revenue and other deferred credits — 158.2 2.8 — 161.0 Other liabilities — 343.1 10.1 (100.6 ) 252.6 Total equity 1,801.5 1,721.4 784.5 (2,505.9 ) 1,801.5 Total liabilities and shareholders’ equity $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 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 — 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, 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 shareholders’ equity $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 450.5 $ 123.2 $ — $ 573.7 Investing activities Purchase of property, plant and equipment — (241.4 ) (31.7 ) (273.1 ) Proceeds from sale of assets — 0.4 — — 0.4 Other — (0.1 ) — — (0.1 ) Net cash used in investing activities — (241.1 ) (31.7 ) — (272.8 ) Financing activities Principal payments of debt — (1.2 ) (1.6 ) — (2.8 ) Collection on (repayment of) intercompany debt — 54.9 (54.9 ) — — Payments on term loan — (25.0 ) — — (25.0 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Taxes paid related to net share settlement awards — (14.2 ) — — (14.2 ) Proceeds from financing under New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 496.3 (496.3 ) — — — Purchase of treasury stock (496.3 ) — — — (496.3 ) Proceeds (payments) from subsidiary for dividends paid 47.1 (47.1 ) — — — Dividends paid (47.1 ) — — — (47.1 ) Change in restricted cash — (2.2 ) — — (2.2 ) Net cash used in financing activities — (524.4 ) (56.5 ) — (580.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.6 — 5.6 Net (decrease) increase in cash and cash equivalents for the period — (315.0 ) 40.6 — (274.4 ) Cash and cash equivalents, beginning of period — 680.1 17.6 — 697.7 Cash and cash equivalents, end of period $ — $ 365.1 $ 58.2 $ — $ 423.3 Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2016 Holdings Spirit Non-Guarantor Consolidating Total Operating activities Net cash provided by operating activities $ — $ 645.9 $ 71.0 $ — $ 716.9 Investing activities Purchase of property, plant and equipment — (206.4 ) (47.6 ) (254.0 ) Proceeds from sale of assets — 0.6 — — 0.6 Other — 0.4 (0.4 ) — — Net cash used in investing activities — (205.4 ) (48.0 ) — (253.4 ) Financing activities Proceeds from issuance of bonds — 299.8 — — 299.8 Principal payments of debt — (33.9 ) (2.5 ) — (36.4 ) Collection on (repayment of) intercompany debt — 61.6 (61.6 ) — — Payments on term loan — (300.0 ) — — (300.0 ) Debt issuance and financing costs — (17.2 ) — — (17.2 ) Taxes paid related to net share settlement awards — (15.2 ) — — (15.2 ) Excess tax benefits from share-based payment arrangements — (0.1 ) — — (0.1 ) 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 — (654.6 ) (64.1 ) — (718.7 ) Effect of exchange rate changes on cash and cash equivalents — — (4.4 ) — (4.4 ) Net decrease in cash and cash equivalents for the period — (214.1 ) (45.5 ) — (259.6 ) Cash and cash equivalents, beginning of period — 894.2 63.1 — 957.3 Cash and cash equivalents, end of period $ — $ 680.1 $ 17.6 $ — $ 697.7 Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2015 Holdings Spirit Non-Guarantor Consolidating Total Operating activities Net cash provided by operating activities $ — $ 1,167.5 $ 122.2 $ — $ 1,289.7 Investing activities Purchase of property, plant and equipment — (273.3 ) (86.8 ) (360.1 ) Proceeds from sale of assets — 2.7 — — 2.7 Other — (0.2 ) 0.2 — — Net cash used in investing activities — (270.8 ) (86.6 ) — (357.4 ) Financing activities Proceeds from issuance of debt — 535.0 — — 535.0 Principal payments of debt — (33.4 ) (3.1 ) — (36.5 ) Collection on (repayment of) intercompany debt — (8.9 ) 8.9 — — Payments on term loan — (534.9 ) — — (534.9 ) Debt issuance and financing costs — (4.7 ) — — (4.7 ) Taxes paid related to net share settlement awards — (20.7 ) — — (20.7 ) Excess tax benefits from share-based payment arrangements — 10.5 0.2 — 10.7 Proceeds (payments) from subsidiary for purchase of treasury stock 300.0 (300.0 ) — — — Purchase of treasury stock (300.0 ) — — — (300.0 ) Net cash (used in) provided by financing activities — (357.1 ) 6.0 — (351.1 ) Effect of exchange rate changes on cash and cash equivalents — — (1.8 ) — (1.8 ) Net increase in cash and cash equivalents for the period — 539.6 39.8 — 579.4 Cash and cash equivalents, beginning of period — 354.6 23.3 — 377.9 Cash and cash equivalents, end of period $ — $ 894.2 $ 63.1 $ — $ 957.3 |
New Market Tax Credit (Notes)
New Market Tax Credit (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |
New Market Tax credit [Text Block] | 26. 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. 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 December 31, 2017, after qualifying capital expenditures, the Company held restricted cash of $2.2 . The NMTC is subject to 100% recapture for a period of seven years as provided in the 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. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to use estimates and assumptions. The results of these estimates form the basis for making judgments which may affect the reported amounts of assets and liabilities, including the impacts of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Provisions for estimated expenses related to service and product warranties, service life policies, and certain extraordinary rework are made at the time products are sold. These costs are accrued at the time of the sale 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, and service life policy 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. Actual results could differ from those estimates and assumptions. |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying 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 U.S. (“GAAP”) and Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior year financial statements and notes to conform to the 2017 presentation. Investments in business entities in which the Company does not have control, but has the ability to exercise influence over operating and financial policies are accounted for under the equity method. Taikoo Spirit AeroSystems Composite Co. Ltd. ("TSACCL"), a joint venture of which Spirit's ownership interest is 31.5%, is accounted for under the equity method. TSACCL was formed to develop and implement a state-of-the-art composite and metal bond component repair station in the Asia-Pacific region. The Company is the majority participant in the Kansas Industrial Energy Supply Company ("KIESC"), a tenancy-in-common with other Wichita companies established to purchase natural gas. KIESC is fully consolidated as the Company owns 77.8% of the entity’s equity. All intercompany balances and transactions have been eliminated in consolidation. The Company’s U.K. subsidiary uses local currency, the British pound, as its functional currency; the Malaysian subsidiary uses the British pound and the Singapore subsidiary uses the Singapore dollar. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. As part of the monthly consolidation process, the functional currencies of the Company’s international subsidiaries 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. |
Research and Development | Research and Development Research and development includes costs incurred for experimentation, design, and testing that are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent all highly liquid investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Consistent with industry practice, the Company classifies unbilled receivables related to contracts accounted for under the long-term contract method of accounting as current. The Company determines an allowance for doubtful accounts based on a review of outstanding receivables. Account balances are charged off against the allowance after the potential for recovery is considered remote. The Company’s allowance for doubtful accounts was approximately $1.3 and $5.2 at December 31, 2017 and December 31, 2016, respectively. 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 Raw materials are stated at lower of cost (principally on an actual or average cost basis) or market. Inventoried costs attributed to units delivered under long-term contracts are based on the estimated average cost of all units expected to be produced and are determined under the learning curve concept which anticipates a predictable decrease in unit costs. Lower unit costs are achieved as tasks and production techniques become more efficient through repetition, supply chain costs are reduced as contracts are negotiated and design changes result in lower cost. This cost averaging usually results in an increase in inventory (referred to as “excess-over-average” or “deferred production costs”) during the early years of a contract. These costs are deferred only to the extent the amount of actual or expected excess-over-average is reasonably expected to be fully offset by lower-than-average costs in future periods of a contract. If in-process inventory plus estimated costs to complete a specific contract exceed the actual plus anticipated remaining sales value of such contract, such excess is charged to cost of sales in the period the loss becomes known, thus reducing inventory to estimated realizable value. Costs in inventory include amounts relating to contracts with long production cycles, some of which are not expected to be realized within one year. The Company reviews its general stock materials and spare parts inventory each quarter to identify impaired inventory, including excess or obsolete inventory, based on historical sales trends and expected production usage. Impaired inventories are written off to work-in-process in the period identified. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by Spirit, and has an acquisition cost of greater than $0.1 . Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. |
Impairment or Disposal of Long-Lived Assets, and Goodwill | Impairment or Disposal of Long-Lived Assets and Goodwill Spirit reviews capital and amortization of intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the recorded amount may not be recoverable. Under the standard, assets must be classified as either held-for-use or available-for-sale. An impairment loss is recognized when the recorded amount of an asset that is held for use exceeds the projected undiscounted future net cash flows expected from its use and disposal, and is measured as the amount by which the recorded amount of the asset exceeds its fair value, which is measured by discounted cash flows when quoted market prices are not available. For assets available-for-sale, an impairment loss is recognized when the recorded amount exceeds the fair value less cost to sell. The Company performs an annual impairment test for goodwill in the fourth quarter of each year, or more frequently, if an event occurs or circumstances change that would more likely than not reduce fair value below current value. |
Deferred Financing Costs | Deferred Financing Costs Costs relating to long-term debt are deferred and included in other long-term assets. These costs are amortized over the term of the related debt or debt facilities and are included as a component of interest expense. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activity The Company uses derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates and interest rates. Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Changes in fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item or when the hedge is no longer effective. Cash flows associated with the Company’s derivatives are presented as a component of the operating section of the statement of cash flows. The use of derivatives has generally been limited to interest rate swaps and foreign currency forward contracts. The Company enters into foreign currency forward contracts to reduce the risks associated with the changes in foreign exchange rates on sales and cost of sales denominated in currencies other than the entities’ functional currency |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments are measured in accordance with FASB authoritative guidance related to fair value measurements. This guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. See Note 10, Fair Value Measurements . |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with FASB authoritative guidance on accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Tax rate changes impacting these assets and liabilities are recognized in the period during which the rate change occurs. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, we assess all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. We record an income tax expense or benefit based on the income earned or loss incurred in each tax jurisdiction and the tax rate applicable to that income or loss. In the ordinary course of business, there are transactions for which the ultimate tax outcome is uncertain. These uncertainties are accounted for in accordance with FASB authoritative guidance on accounting for the uncertainty in income taxes. The final tax outcome for these matters may be different than management's original estimates made in determining the income tax provision. A change to these estimates could impact the effective tax rate and net income or loss in subsequent periods. We use the flow-through accounting method for tax credits. Under this method, tax credits reduce income tax expense. |
Stock-Based Compensation and Other Share-based Payments | Stock-Based Compensation and Other Share-Based Payments Many of the Company’s employees are participants in various stock compensation plans. The expense attributable to the Company’s employees is recognized over the period the amounts are earned and vested, as described in Note 15, Stock Compensation . |
New Accounting Pronouncements | New Accounting Pronouncements In March 2017, the 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. The Company adopted the requirements of ASU 2017-07 on January 1, 2018, using the retrospective transition method. The Company expects the adoption of ASU 2017-07 to result in an unfavorable impact to consolidated operating profit and a corresponding favorable impact in non-operating income for each year. Further, in 2018, the Company expects a decrease to operating income in the range of $15.0 to $20.0, primarily related to the impact on the B787 program. 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. 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 those related to material right obligations; the allocation of consideration based upon relative standalone selling price; 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 (the “Transition Adjustment”). Contracts that are substantially completed will be excluded from the Transition Adjustment. The Company has reviewed all of its contracts with customers and has implemented the required process, data, and system changes to comply with the requirements of ASC 606. Upon adoption of ASC 606, the Company will no longer recognize revenue using the units-of-delivery method. 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. The Company will generally use costs incurred as the measure of performance; and therefore will generally not defer any production costs. Performance obligations that are not recognized over time will be recognized at the point in time when control transfers to the customer. ASC 606 requires the Company to allocate contract consideration to performance obligations on the basis of their relative standalone selling price. The Company has determined that certain contracts require a deferral of revenues due to the requirement to allocate revenue based upon relative standalone selling price. Accordingly, contract liabilities will be established at the Transition Date to defer revenue that was previously recognized under ASC 605 (“legacy GAAP”). Based on currently available information, the Company estimates the following Transition Adjustment impact: Opening Balance Sheet Impact : Pretax Retained Earnings Decrease $350.0 - $370.0 Net Estimated Tax Benefit $75.0 - $85.0 As explained above, under legacy GAAP, the Company used the units-of-delivery method and certain production costs were deferred over the life of the contract block. Under ASC 606, the Company will not use contract blocks and costs will no longer be deferred and allocated to future units as under the units-of-delivery method. Accordingly, deferred production costs of $651.0 (pretax), net of previously recognized forward loss reserves of $367.0 (pretax) will be eliminated and result in a decrease to retained earnings as part of the Transition Adjustment. The Transition Adjustment will include a net increase of $80.0 - $100.0 (pretax) to retained earnings to establish contract assets for contracts that are in progress for which revenue is not yet recognized under legacy GAAP but for which revenue is recognized under ASC 606 over time as contract costs are incurred. Finally, a $113.0 (pretax) decrease to retained earnings will be recorded as part of the Transition Adjustment to defer revenue to reflect the relative standalone selling price of certain future performance obligations. ASC 340-40 is applied to costs to obtain or fulfill a contract 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 the costs generally do not fall within the scope of ASC 340-40. However, certain preproduction costs of $49.0 (pretax) that were deferred under legacy GAAP but which related to fully satisfied performance obligations under ASC 606, will be eliminated as part of the Transition Adjustment. The Company anticipates that in 2018, revenue for certain contracts that would have been recognized under legacy GAAP will be deferred because of the allocation of revenue to future performance obligations based upon relative standalone selling price. Additionally, based upon the information currently available, the Company expects that there will be an increase in gross margin in 2018 for certain other contracts because production costs previously deferred under legacy GAAP have been included in the Transition Adjustment as discussed above. 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. The Company expects the disclosures to include qualitative and quantitative information about its contracts with customers; information about contract assets and liabilities; information about the performance obligation for customer contracts; and, the significant judgments made in applying the guidance in ASC 606. This will result in changes to the Company's existing disclosures, as well as new disclosures, which will impact the information reported in the Company's financial statements. |
Revenue Recognition, Long-term Contracts [Policy Text Block] | Revenues and Profit Recognition A significant portion of the Company’s revenues are recognized under long-term, volume-based pricing contracts, requiring delivery of products over several years. Historically, the Company has recognized revenue under the contract method of accounting and recorded sales and profits on each contract in accordance with the percentage-of-completion method of accounting, primarily using the units-of-delivery method. Under the units-of-delivery method revenue is recognized based upon the number of units delivered during a period and the contract price and expenditures are recognized as the cost allocable to the delivered units. Costs allocable to undelivered units are reported in the balance sheet as inventory. The method is used in circumstances in which an entity produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. Recurring long-term production contracts are usually divided into contract blocks for this purpose, with each block treated as a separate contract for “units-of-delivery” production-type contract accounting purposes. The total quantity of production units to be delivered under a contract may be set as a single contract accounting block, or it can be split into multiple blocks. Unless the life of the contract is so long that it prevents reliable estimates, the entire contract will typically be set as the contract accounting block quantity. “Life-of-program” or “requirements-based” contracts often lead to continuing sales of more than twenty years. Since this is much longer than can be reliably estimated, Spirit has used parameters based on the contract facts and circumstances to determine the length of the contract block. This analysis includes: considering the customer’s firm orders, internal assessment of the market, reliability of cost estimates, potential segmentation of non-recurring elements of the contract, and other factors. Contract block sizes may also be determined based on certain contractual terms such as pricing renegotiation dates, such that certain contract blocks may use an approximate date instead of a defined unit quantity in order to increase the ability to estimate accurately given that the renegotiated pricing is unknown for the planning block. Shorter contract blocks for mature, ongoing programs are common due to the presence of recent cost history and probable forecast accuracy. Initial contract blocks often require a longer time period and a greater number of units in order to take into account the higher cost of early units due to a steeper experience curve and pre-production design costs. As these programs mature, costs stabilize and efficiencies are realized, subsequent contract block length shortens to take into account the steady state of the continuing production. Revenues from non-recurring design work are recognized based on substantive milestones or use of the cost-to-cost method, that are indicative of the Company’s progress toward completion depending on facts and circumstances. The Company follows the requirements of Financial Accounting Standards Board (“FASB”) authoritative guidance on accounting for the performance of construction-type and certain production-type contracts (the contract method of accounting), and uses the cumulative catch-up method in accounting for revisions in estimates. Under the cumulative catch-up method, the impacts of revisions in estimates are recognized immediately when changes in estimated contract profitability become known. A profit rate is estimated based on the difference between total revenues and total costs over a contract block. Total revenues at any given time include actual historical revenues up to that time plus future estimated revenues. Total costs at any given time include actual historical costs up to that time plus future estimated costs. Estimated revenues include negotiated or expected values for units delivered, estimates of probable recoveries asserted against the customer for changes in specifications, price adjustments for contract and volume changes, escalation and assumed but currently unnegotiated price increases for derivative models. Costs include the estimated cost of certain pre-production efforts (including non-recurring engineering and planning subsequent to completion of final design) plus the estimated cost of manufacturing a specified number of production units. Estimates take into account assumptions related to future labor performance and rates, and projections related to material and overhead costs including expected “learning curve” cost reductions over the term of the contract. Estimated revenues and costs also take into account the expected impact of specific contingencies that the Company believes are probable. Estimates of revenues and costs for the Company’s contract blocks span a period of multiple years and are based on a substantial number of underlying assumptions. The Company believes that the underlying assumptions are sufficiently reliable to provide a reasonable estimate of the profit to be generated. However, due to the significant length of time over which revenue streams will be generated, the variability of the revenue and cost streams can be significant if the assumptions change. Estimates of profit margins for contract accounting blocks are typically reviewed at least annually or at an earlier point if evidence suggests a change in margin may be necessary. Assuming the initial estimates of sales and costs under the contract block are accurate, the percentage-of-completion method results in the profit margin being recorded evenly as revenue is recognized under the contract block. Changes in these underlying estimates due to revisions in sales and cost estimates may result in profit margins being recognized unevenly over a contract block as such changes are accounted for on a cumulative basis in the period estimates are revised, which the Company refers to as cumulative catch-up adjustments. The Company’s Estimate at Completion estimating process is not solely an accounting process, but is instead an integrated part of the management of the Company’s business, involving numerous personnel in the Company’s planning, production control, contracts, cost management, supply chain, and program and business management functions. Spirit regularly commences work and incorporates customer-directed changes prior to negotiating pricing terms for engineering work, for work related to the modification of the product, and/or other statements of work. Spirit typically has the legal right to negotiate pricing for customer-directed changes. In those cases, Spirit asserts to its customers its contractual rights to be paid the additional revenue or cost reimbursement the Company expects to receive upon finalizing pricing terms. For revenues not recognized under the contract method of accounting, the Company recognizes revenues from the sale of products at the point of passage of title, which is generally at the time of shipment. Shipping and handling costs are included in cost of sales. Revenues earned from providing maintenance services, including any contracted research and development, are recognized when the service is complete or other contractual milestones are attained. Revenues from non-recurring design work are recognized based on substantive milestones or use of the cost-to-cost method, that are indicative of the Company’s progress toward completion. Non-recurring revenues, which are derived primarily from engineering and design efforts, were $466.9 , $302.1 , and $307.4 for each of the periods ended December 31, 2017, 2016, and 2015, respectively. As required by FASB authoritative guidance related to accounting for consideration given by a vendor to a customer certain payments are amortized as a reduction to revenues on units delivered. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by Spirit, and has an acquisition cost of greater than $0.1 . Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. |
Changes in Estimates Changes in
Changes in Estimates Changes in Estimate (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Changes in Estimates December 31, 2017 December 31, 2016 December 31, 2015 Favorable (Unfavorable) Cumulative Catch-up Adjustments by Segment Fuselage 4.0 13.6 16.1 Propulsion 3.8 (0.4 ) 22.8 Wing 23.4 23.4 2.7 Total Favorable Cumulative Catch-up Adjustment 31.2 36.6 41.6 (Forward Loss) and Changes in Estimates on Loss Programs by Segment Fuselage (223.2 ) (133.4 ) 8.7 Propulsion (40.2 ) 10.1 2.4 Wing (63.9 ) 5.1 (0.3 ) Total (Forward Loss) and Change in Estimate on Loss Program (327.3 ) (118.2 ) 10.8 Total Change in Estimate (296.1 ) (81.6 ) 52.4 EPS Impact (diluted per share based on statutory rates) (1.58 ) (0.40 ) 0.24 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consists of the following: December 31, December 31, Trade receivables $ 710.5 $ 647.3 Other 13.0 18.4 Less: allowance for doubtful accounts (1.3 ) (5.2 ) Accounts receivable, net $ 722.2 $ 660.5 _______________________________________ |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | Inventories are summarized as follows: December 31, 2017 December 31, 2016 Raw materials $ 321.0 $ 281.9 Work-in-process 854.4 790.7 Finished goods 35.8 30.9 Product inventory 1,211.2 1,103.5 Capitalized pre-production (1) 78.9 103.5 Deferred production (2) 640.3 717.4 Forward loss provision (3) (480.5 ) (409.1 ) Total inventory, net $ 1,449.9 $ 1,515.3 _______________________________________ For contract blocks that have not closed, the following non-product inventory amounts were included in the summarized inventory table above: (1) For the period ended December 31, 2017, $69.7 and $5.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, $83.7 and $15.2 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (2) For the period ended December 31, 2017 $632.8 and $129.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, $657.2 and $114.6 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (3) For the period ended December 31, 2017, ($275.5) , ($137.4) , and ($57.2) on A350 XWB, Rolls-Royce BR725, and B787 programs, respectively. For the period ended December 31, 2016, ($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 $254.5 as of December 31, 2017. Includes a $2.1 reclassification between Work-in-process and Forward loss provision as of December 31, 2016. |
Block And Orders Table | 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 Contract Block Quantity A350 XWB 223 800 Rolls-Royce BR725 316 350 |
Property, Plant and Equipment39
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consists of the following: December 31, 2017 December 31, 2016 Land $ 15.9 $ 14.9 Buildings (including improvements) 764.1 642.5 Machinery and equipment (1) 1,529.9 1,373.9 Tooling 1,013.9 982.4 Capitalized software (1) 263.3 261.9 Construction-in-progress 213.4 193.7 Total 3,800.5 3,469.3 Less: accumulated depreciation (1,695.2 ) (1,477.7 ) Property, plant and equipment, net $ 2,105.3 $ 1,991.6 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Assets | Other assets are summarized as follows: December 31, 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 (4.6 ) (4.2 ) Intangible assets, net 1.8 2.2 Deferred financing Deferred financing costs 39.5 38.5 Less: Accumulated amortization-deferred financing costs (33.7 ) (32.2 ) Deferred financing costs, net (1) 5.8 6.3 Other Goodwill — Europe 2.5 2.3 Equity in net assets of affiliates 4.7 4.4 Supply agreement (1) 19.9 17.0 Restricted Cash 20.0 19.9 Deferred Tax Asset - non-current 72.5 128.8 Other 37.1 40.0 Total $ 164.3 $ 220.9 _______________________________________ (1) |
Advance Payments and Deferred41
Advance Payments and Deferred Revenue/Credits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Advance Payments And Deferred Revenue Credits Tables [Abstract] | |
Advance Payments And Deferred Revenue Credits Summarized | December 31, 2017 December 31, 2016 B787 $ 515.6 $ 834.8 Boeing — All other programs 12.6 18.6 A350 XWB 2.0 116.7 Airbus — All other programs 1.3 2.2 Other 25.8 27.9 Total advance payments and deferred revenue/credits $ 557.3 $ 1,000.2 |
Government Grants (Tables)
Government Grants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Government Grants [Abstract] | |
Deferred Grant Income Liability, Net | Deferred grant income liability, net consists of the following: 2017 2016 Balance, January 1 $ 77.8 $ 94.2 Grant liability amortized (19.0 ) (11.9 ) Exchange rate 2.1 (4.5 ) Total liability related to deferred grant income, December 31 $ 60.9 $ 77.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount And Estimated Fair Value Of Long Term Debt | December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Senior secured term loan A (including current portion) $ 460.7 $ 461.9 (2) $ 485.2 $ 484.8 (2) Senior unsecured notes due 2022 294.8 304.6 (1) 293.8 307.0 (1) Senior unsecured notes due 2026 297.2 301.0 (1) 296.9 292.4 (1) Malaysian loan — — (2) 1.0 0.9 (2) Total $ 1,052.7 $ 1,067.5 $ 1,076.9 $ 1,085.1 _______________________________________ (1) Level 1 Fair Value hierarchy (2) Level 2 Fair Value hierarchy |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2017 December 31, 2016 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 435.8 $ 24.9 $ 460.3 Senior notes due 2022 — 294.8 — 293.8 Senior notes due 2026 — 297.2 — 296.9 Malaysian term loan — — 1.0 — Present value of capital lease obligations 5.2 33.6 0.8 9.0 Other 1.0 58.5 — — Total $ 31.1 $ 1,119.9 $ 26.7 $ 1,060.0 |
Covenant Ratio | The A&R Credit Agreement contains customary affirmative and negative covenants, including restrictions on indebtedness, liens, type of business, acquisitions, investments, sales or transfers of assets, payments of dividends, transactions with affiliates, change in control and other matters customarily restricted in such agreements. The A&R Credit Agreement also contains the following financial covenants (as defined in the A&R Credit Agreement): Interest Coverage Ratio Shall not be less than 4.0:1.0 Total Leverage Ratio Shall not exceed 3.5:1.0 |
Pension and Other Post-Retire45
Pension and Other Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Pension and Other Post-Retirement Benefits Multi-employer Pension Plan In connection with the collective bargaining agreement signed with the International Association of Machinists and Aerospace Workers (“IAM”), the Company contributes to a multi-employer defined benefit pension plan (“IAM National Pension Fund”). The level of contribution, as specified in the bargaining agreement was, in whole dollars, $1.75 per hour of employee service as of July 1, 2015. The IAM bargaining agreement provides for a $0.05 per hour increase, in whole dollars, effective July 1 of each year through 2019. The collective bargaining agreement with the International Union, Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) requires the Company to contribute a specified amount per hour of service to the IAM National Pension Fund. The specified amount was $1.60 in 2016. Per the negotiated UAW collective bargaining agreement, the pension contributions, in whole dollars, will be as follows: Effective 1/1/2016 — $1.60 Effective 1/1/2018 — $1.65 Effective 1/1/2019 — $1.70 Effective 1/1/2020-2025 — $1.75 The risk of this multi-employer plan is different from single-employer plans in the following aspects: 1. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. 2. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3. If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table summarizes the multi-employer plan to which the Company contributes: Pension Protection Act Zone Status Expiration Date of Collective- Bargaining Agreement FIP/RP Status Pending/ Implemented Contributions of the Company EIN/Pension Plan Number Surcharge Imposed Pension Fund 2016 2017 2015 2016 2017 IAM National Pension Fund 51-60321295 Green Green No $ 29.8 $ 26.9 $ 30.3 No IAM June 27, 2020 UAW December 7, 2025 Pension Fund Year Company Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan ’ s Year-End) IAM National Pension Fund 2015, 2016, 2017 Defined Contribution Plans The Company contributes to a defined contribution plan available to all U.S. employees, excluding IAM and UAW represented employees. Under the plan, the Company makes a matching contribution of 75% of the employee contribution to a maximum 8% of eligible individual employee compensation. In addition, non-matching contributions based on an employee’s age and years of service are paid at the end of each calendar year for certain employee groups. The Company recorded $33.6 , $33.8 , and $34.1 in contributions to these plans for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined contribution pension plan for those employees who are hired after the date of acquisition. Under the plan, the Company contributes 8% of base salary while participating employees are required to contribute 4% of base salary. The Company recorded $5.4 in contributions to this plan for the period ended December 31, 2017 , $3.8 in contributions for the period ended December 31, 2016 and $7.0 in contributions for the period ended December 31, 2015 . Defined Benefit Pension Plans Effective June 17, 2005, pension assets and liabilities were spun-off from three Boeing qualified plans into four qualified Spirit plans for each Spirit employee who did not retire from Boeing by August 1, 2005. Effective December 31, 2005, all four qualified plans were merged together. In addition, Spirit has one nonqualified plan providing supplemental benefits to executives (SERP) who transferred from a Boeing nonqualified plan to a Spirit plan and elected to keep their benefits in this plan. Both plans are frozen as of the date of the Boeing Acquisition (i.e., no future service benefits are being earned in these plans). The Company intends to fund its qualified pension plan through a trust. Pension assets are placed in trust solely for the benefit of the pension plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined benefit pension plan for those employees that had pension benefits remaining in BAE Systems’ pension plan. In accordance with U.K. legislation, the plan and its assets are managed by an independent trustee company. The investment strategy adopted by this trustee is documented in a Statement of Investment Principles in line with U.K. legislation. The principles for the investment strategy are to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. The trustee has invested the plan assets in pooled arrangements with authorized investment companies which were selected to be consistent with the plan's overall investment principles and strategy. Effective December 31, 2013, the U.K. pension plan was closed and benefits were frozen and thereafter subject only to statutory pension revaluation. Other Post-Retirement Benefit Plans The Company also has post-retirement health care coverage for eligible U.S. retirees and qualifying dependents prior to age 65 . Eligibility for employer-provided benefits is limited to those employees who were employed at the date of the Boeing Acquisition and retire on or after attainment of age 62 and 10 years of service. Employees who do not satisfy these eligibility requirements can retire with post-retirement medical benefits at age 55 and 10 years of service, but they must pay the full cost of medical benefits provided. Obligations and Funded Status The following tables reconcile the funded status of both pension and post-retirement medical benefits to the balance on the balance sheets for the fiscal years 2017 and 2016 . Benefit obligation balances presented in the tables reflect the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the Company’s pension plans, and accumulated post-retirement benefit obligations (APBO) for the Company’s post-retirement medical plan. The Company uses an end of fiscal year measurement date of December 31 for the Company's U.S. pension and post-retirement medical plans. Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2017 2016 Change in projected benefit obligation: Beginning balance $ 1,036.0 $ 1,011.1 $ 51.5 $ 73.3 Service cost — — 1.2 1.8 Employee contributions — — 1.1 0.8 Interest cost 35.6 42.8 1.2 2.1 Actuarial losses (gains) 80.0 12.9 1.0 (16.7 ) Special Termination Benefits — 23.6 — 3.1 Plan Amendments — — — (7.2 ) Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Projected benefit obligation at the end of the period $ 1,084.4 $ 1,036.0 $ 47.2 $ 51.5 Assumptions used to determine benefit obligation: Discount rate 3.59 % 4.15 % 3.03 % 3.21 % Rate of compensation increase N/A N/A N/A N/A Medical assumptions: Trend assumed for the year N/A N/A 6.59 % 6.93 % Ultimate trend rate N/A N/A 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A 2038 2038 Change in fair value of plan assets: Beginning balance $ 1,302.9 $ 1,243.2 $ — $ — Actual return on assets 174.5 114.1 — — Employer contributions to plan 0.1 — 7.7 4.9 Employee contributions to plan — — 1.1 0.8 Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Expenses paid — — — — Ending balance $ 1,410.3 $ 1,302.9 $ — $ — Reconciliation of funded status to net amounts recognized: Funded status (deficit) $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts recognized in the balance sheet: Noncurrent assets $ 327.2 $ 268.1 $ — $ — Current liabilities — — (7.7 ) (8.9 ) Noncurrent liabilities (1.3 ) (1.3 ) (39.5 ) (42.6 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive (loss) income $ (89.6 ) $ (114.4 ) $ 28.3 $ 32.5 Cumulative employer contributions in excess of net periodic benefit cost 415.5 381.2 (75.5 ) (84.0 ) Net amount recognized in the balance sheet $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ 1.3 $ 1.2 $ 47.2 $ 51.5 Accumulated benefit obligation 1.3 1.2 — — Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 Change in projected benefit obligation: Beginning balance $ 82.1 $ 82.8 Service cost 1.3 1.0 Interest cost 2.0 2.9 Actuarial (gains) losses (1.1 ) 17.4 Benefits paid (0.8 ) (0.8 ) Expense paid (1.3 ) (1.0 ) Plan settlements (12.5 ) (5.5 ) Exchange rate changes 7.2 (14.7 ) Projected benefit obligation at the end of the period $ 76.9 $ 82.1 Assumptions used to determine benefit obligation: Discount rate 2.60 % 2.70 % Rate of compensation increase 3.35 % 3.20 % Change in fair value of plan assets: Beginning balance $ 96.2 $ 96.4 Actual return on assets 8.7 25.3 Plan settlements (14.7 ) (6.5 ) Expenses paid (1.3 ) (1.0 ) Benefits paid (0.8 ) (0.8 ) Exchange rate changes 8.7 (17.2 ) Ending balance $ 96.8 $ 96.2 Reconciliation of funded status to net amounts recognized: Funded status 19.9 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts recognized in the balance sheet: Noncurrent assets $ 19.9 $ 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive income (loss) 4.3 (0.2 ) Prepaid pension cost 15.6 14.4 Net amount recognized in the balance sheet $ 19.9 $ 14.2 Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ — $ — Accumulated benefit obligation — — Fair value of assets $ — $ — Annual Expense The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 1.2 $ 1.8 $ 2.2 Interest cost 35.7 42.7 44.4 1.2 2.1 2.2 Expected return on plan assets (69.8 ) (74.9 ) (78.1 ) — — — Amortization of net loss — 5.7 3.7 (2.2 ) — — Amortization of prior service costs — — — (0.9 ) (0.9 ) — Special Termination Benefits — 23.6 — — 3.1 — Net periodic benefit (income) cost (34.1 ) (2.9 ) (30.0 ) (0.7 ) 6.1 4.4 Other changes recognized in OCI: Total recognized in OCI (income) loss $ (24.8 ) $ (31.8 ) $ (15.5 ) $ 4.2 $ (23.0 ) $ (6.1 ) Total recognized in net periodic benefit cost and OCI $ (58.9 ) $ (34.7 ) $ (45.5 ) $ 3.5 $ (16.9 ) $ (1.7 ) Assumptions used to determine net periodic benefit costs: Discount rate 4.15 % 4.38 % 3.99 % 3.21 % 3.43 % 3.14 % Expected return on plan assets 5.50 % 6.00 % 6.00 % N/A N/A N/A Salary increases N/A N/A N/A N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 6.93 % 7.27 % 7.62 % Ultimate trend rate N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A N/A 2038 2038 2030 The estimated net gain that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year is zero for Pension Benefits and $3.2 for Other Post-Retirement Benefits plans. The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ 1.3 $ 1.0 $ 1.2 Interest cost 2.0 2.9 3.3 Expected return on plan assets (2.9 ) (3.6 ) (4.9 ) Settlement gain (0.3 ) — — Net periodic benefit cost (income) $ 0.1 $ 0.3 $ (0.4 ) Other changes recognized in OCI: Total (income) loss recognized in OCI $ (6.7 ) $ (4.6 ) $ 1.5 Total recognized in net periodic benefit cost and OCI $ (6.6 ) $ (4.3 ) $ 1.1 Assumptions used to determine net periodic benefit costs: Discount rate 2.70 % 4.00 % 3.80 % Expected return on plan assets 3.20 % 4.30 % 4.80 % Salary increases 3.20 % 3.10 % 3.05 % The estimated net (gain) loss that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year for the U.K. plan is zero . Currently, the Company records all components of net periodic benefit costs in operating profit as part of cost of sales. As described in Note 2, Summary of Significant Accounting Policies , the adoption of ASU 2017-07 in 2018 requires the Company to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income. Assumptions The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. In 2016, the Company incorporated the MMP-2016 improvement scale. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership. The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trends. A one-percentage point increase in the initial through ultimate assumed health care trend rates would have increased the accumulated post-retirement benefit obligation by $2.2 at December 31, 2017 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . A one-percentage point decrease would have decreased the obligation by $2.1 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . U.S. Plans The Company’s investment objective is to achieve long-term growth of capital, with exposure to risk set at an appropriate level. This objective shall be accomplished through the utilization of a diversified asset mix consisting of equities (domestic and international) and taxable fixed income securities. The allowable asset allocation range is: Equities 20 - 50% Fixed income 50 - 80% Real estate 0 - 7% Investment guidelines include that no security, except issues of the U.S. Government, shall comprise more than 5% of total Plan assets and further, no individual portfolio shall hold more than 7% of its assets in the securities of any single entity, except issues of the U.S. Government. The following derivative transactions are prohibited — leverage, unrelated speculation and “exotic” collateralized mortgage obligations or CMOs. Investments in hedge funds, private placements, oil and gas and venture capital must be specifically approved by the Company in advance of their purchase. The Company’s plans have asset allocations for the U.S., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.S. Equity securities — U.S. 24 % 29 % Equity securities — International 4 % 4 % Debt securities 70 % 65 % Real estate 2 % 2 % Total 100 % 100 % U.K. Plans The Trustee’s investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plan. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is: Equity securities 35 % Debt securities 60 % Property 5 % The Company’s plans have asset allocations for the U.K., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.K. Equity securities 36 % 24 % Debt securities 58 % 71 % Other 6 % 5 % Total 100 % 100 % Projected contributions and benefit payments Required pension contributions under Employee Retirement Income Security Act (ERISA) regulations are expected to be zero in 2018 and discretionary contributions are not expected in 2018 . SERP and post-retirement medical plan contributions in 2018 are not expected to exceed $7.8 . Expected contributions to the U.K. plan for 2018 are $1.4 . The Company monitors its defined benefit pension plan asset investments on a quarterly basis and believes that the Company is not exposed to any significant credit risk in these investments. The total benefits expected to be paid over the next ten years from the plans' assets or the assets of the Company, by country, are as follows: U.S. Pension Plans Other Post-Retirement Benefit Plans 2018 $ 34.7 $ 7.7 2019 $ 38.1 $ 6.8 2020 $ 41.7 $ 5.4 2021 $ 45.2 $ 5.1 2022 $ 49.0 $ 4.7 2023-2026 $ 287.0 $ 19.9 U.K. Pension Plans 2018 $ 0.8 2019 $ 0.8 2020 $ 0.9 2021 $ 0.9 2022 $ 0.9 2023-2026 $ 4.8 Fair Value Measurements The pension plan assets are valued at fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Temporary Cash Investments — These investments consist of U.S. dollars and foreign currencies held in master trust accounts. Foreign currencies held are reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as level 1 investments. Collective Investment Trusts — These investments are public investment vehicles valued using market prices and performance of the fund. The trust allocates notional units to the policy holder based on the underlying notional unit buy (offer) price using the middle market price plus transaction costs. These investments are classified within level 2 of the valuation hierarchy. In addition, the collective investment trust includes a real estate fund which is classified within level 3 of the valuation hierarchy. Commingled Equity and Bond Funds — These investments are valued at the closing price reported by the Plan Trustee. These investments are not being traded in an active market, but are backed by various investment securities managed by the Bank of New York. Fair value is being calculated using inputs that rely on the Bank of New York’s own assumptions that are based on underlying investments which are traded on an active market and classified within level 2 of the valuation hierarchy. As of December 31, 2017 and December 31, 2016 , the pension plan assets measured at fair value on a recurring basis were as follows: At December 31, 2017 Using Description December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.3 $ 0.3 $ — $ — Collective Investment Trusts 96.5 — 90.6 5.9 Commingled Equity and Bond Funds 1,410.3 — 1,410.3 — $ 1,507.1 $ 0.3 $ 1,500.9 $ 5.9 At December 31, 2016 Using Description December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.2 $ 0.2 $ — $ — Collective Investment Trusts 96 — 91.2 4.8 Commingled Equity and Bond Funds 1,302.9 — 1,302.9 — $ 1,399.1 $ 0.2 $ 1,394.1 $ 4.8 The table below sets forth a summary of changes in the fair value of the Plan’s level 3 investment assets and liabilities for the years ended December 31, 2017 and December 31, 2016 : December 31, 2017 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 December 31, 2016 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 Defined Contribution Plans The Company contributes to a defined contribution plan available to all U.S. employees, excluding IAM and UAW represented employees. Under the plan, the Company makes a matching contribution of 75% of the employee contribution to a maximum 8% of eligible individual employee compensation. In addition, non-matching contributions based on an employee’s age and years of service are paid at the end of each calendar year for certain employee groups. The Company recorded $33.6 , $33.8 , and $34.1 in contributions to these plans for the twelve months ended December 31, 2017 , 2016 , and 2015 , respectively. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined contribution pension plan for those employees who are hired after the date of acquisition. Under the plan, the Company contributes 8% of base salary while participating employees are required to contribute 4% of base salary. The Company recorded $5.4 in contributions to this plan for the period ended December 31, 2017 , $3.8 in contributions for the period ended December 31, 2016 and $7.0 in contributions for the period ended December 31, 2015 . Defined Benefit Pension Plans Effective June 17, 2005, pension assets and liabilities were spun-off from three Boeing qualified plans into four qualified Spirit plans for each Spirit employee who did not retire from Boeing by August 1, 2005. Effective December 31, 2005, all four qualified plans were merged together. In addition, Spirit has one nonqualified plan providing supplemental benefits to executives (SERP) who transferred from a Boeing nonqualified plan to a Spirit plan and elected to keep their benefits in this plan. Both plans are frozen as of the date of the Boeing Acquisition (i.e., no future service benefits are being earned in these plans). The Company intends to fund its qualified pension plan through a trust. Pension assets are placed in trust solely for the benefit of the pension plans’ participants and are structured to maintain liquidity that is sufficient to pay benefit obligations. On April 1, 2006, as part of the acquisition of BAE Aerostructures, the Company established a defined benefit pension plan for those employees that had pension benefits remaining in BAE Systems’ pension plan. In accordance with U.K. legislation, the plan and its assets are managed by an independent trustee company. The investment strategy adopted by this trustee is documented in a Statement of Investment Principles in line with U.K. legislation. The principles for the investment strategy are to maximize the long-term rate of return on plan assets within an acceptable level of risk while maintaining adequate funding levels. The trustee has invested the plan assets in pooled arrangements with authorized investment companies which were selected to be consistent with the plan's overall investment principles and strategy. Effective December 31, 2013, the U.K. pension plan was closed and benefits were frozen and thereafter subject only to statutory pension revaluation |
Defined Contribution Plan Disclosure [Line Items] | |
Multiemployer Plan Table | Multi-employer Pension Plan In connection with the collective bargaining agreement signed with the International Association of Machinists and Aerospace Workers (“IAM”), the Company contributes to a multi-employer defined benefit pension plan (“IAM National Pension Fund”). The level of contribution, as specified in the bargaining agreement was, in whole dollars, $1.75 per hour of employee service as of July 1, 2015. The IAM bargaining agreement provides for a $0.05 per hour increase, in whole dollars, effective July 1 of each year through 2019. The collective bargaining agreement with the International Union, Automobile, Aerospace and Agricultural Implement Workers of America (“UAW”) requires the Company to contribute a specified amount per hour of service to the IAM National Pension Fund. The specified amount was $1.60 in 2016. Per the negotiated UAW collective bargaining agreement, the pension contributions, in whole dollars, will be as follows: Effective 1/1/2016 — $1.60 Effective 1/1/2018 — $1.65 Effective 1/1/2019 — $1.70 Effective 1/1/2020-2025 — $1.75 The risk of this multi-employer plan is different from single-employer plans in the following aspects: 1. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. 2. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3. If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table summarizes the multi-employer plan to which the Company contributes: Pension Protection Act Zone Status Expiration Date of Collective- Bargaining Agreement FIP/RP Status Pending/ Implemented Contributions of the Company EIN/Pension Plan Number Surcharge Imposed Pension Fund 2016 2017 2015 2016 2017 IAM National Pension Fund 51-60321295 Green Green No $ 29.8 $ 26.9 $ 30.3 No IAM June 27, 2020 UAW December 7, 2025 Pension Fund Year Company Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan ’ s Year-End) IAM National Pension Fund 2015, 2016, 2017 |
Change in projected benefit obligations | Obligations and Funded Status The following tables reconcile the funded status of both pension and post-retirement medical benefits to the balance on the balance sheets for the fiscal years 2017 and 2016 . Benefit obligation balances presented in the tables reflect the projected benefit obligation (PBO) and accumulated benefit obligation (ABO) for the Company’s pension plans, and accumulated post-retirement benefit obligations (APBO) for the Company’s post-retirement medical plan. The Company uses an end of fiscal year measurement date of December 31 for the Company's U.S. pension and post-retirement medical plans. Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2017 2016 Change in projected benefit obligation: Beginning balance $ 1,036.0 $ 1,011.1 $ 51.5 $ 73.3 Service cost — — 1.2 1.8 Employee contributions — — 1.1 0.8 Interest cost 35.6 42.8 1.2 2.1 Actuarial losses (gains) 80.0 12.9 1.0 (16.7 ) Special Termination Benefits — 23.6 — 3.1 Plan Amendments — — — (7.2 ) Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Projected benefit obligation at the end of the period $ 1,084.4 $ 1,036.0 $ 47.2 $ 51.5 Assumptions used to determine benefit obligation: Discount rate 3.59 % 4.15 % 3.03 % 3.21 % Rate of compensation increase N/A N/A N/A N/A Medical assumptions: Trend assumed for the year N/A N/A 6.59 % 6.93 % Ultimate trend rate N/A N/A 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A 2038 2038 Change in fair value of plan assets: Beginning balance $ 1,302.9 $ 1,243.2 $ — $ — Actual return on assets 174.5 114.1 — — Employer contributions to plan 0.1 — 7.7 4.9 Employee contributions to plan — — 1.1 0.8 Benefits paid (67.2 ) (54.4 ) (8.8 ) (5.7 ) Expenses paid — — — — Ending balance $ 1,410.3 $ 1,302.9 $ — $ — Reconciliation of funded status to net amounts recognized: Funded status (deficit) $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts recognized in the balance sheet: Noncurrent assets $ 327.2 $ 268.1 $ — $ — Current liabilities — — (7.7 ) (8.9 ) Noncurrent liabilities (1.3 ) (1.3 ) (39.5 ) (42.6 ) Net amounts recognized $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive (loss) income $ (89.6 ) $ (114.4 ) $ 28.3 $ 32.5 Cumulative employer contributions in excess of net periodic benefit cost 415.5 381.2 (75.5 ) (84.0 ) Net amount recognized in the balance sheet $ 325.9 $ 266.8 $ (47.2 ) $ (51.5 ) Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ 1.3 $ 1.2 $ 47.2 $ 51.5 Accumulated benefit obligation 1.3 1.2 — — Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 Change in projected benefit obligation: Beginning balance $ 82.1 $ 82.8 Service cost 1.3 1.0 Interest cost 2.0 2.9 Actuarial (gains) losses (1.1 ) 17.4 Benefits paid (0.8 ) (0.8 ) Expense paid (1.3 ) (1.0 ) Plan settlements (12.5 ) (5.5 ) Exchange rate changes 7.2 (14.7 ) Projected benefit obligation at the end of the period $ 76.9 $ 82.1 Assumptions used to determine benefit obligation: Discount rate 2.60 % 2.70 % Rate of compensation increase 3.35 % 3.20 % Change in fair value of plan assets: Beginning balance $ 96.2 $ 96.4 Actual return on assets 8.7 25.3 Plan settlements (14.7 ) (6.5 ) Expenses paid (1.3 ) (1.0 ) Benefits paid (0.8 ) (0.8 ) Exchange rate changes 8.7 (17.2 ) Ending balance $ 96.8 $ 96.2 Reconciliation of funded status to net amounts recognized: Funded status 19.9 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts recognized in the balance sheet: Noncurrent assets $ 19.9 $ 14.2 Net amounts recognized $ 19.9 $ 14.2 Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive income (loss) 4.3 (0.2 ) Prepaid pension cost 15.6 14.4 Net amount recognized in the balance sheet $ 19.9 $ 14.2 Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation/APBO $ — $ — Accumulated benefit obligation — — Fair value of assets $ — $ — |
Annual Expense | Annual Expense The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Other Post-Retirement Benefits Periods Ended December 31, Periods Ended December 31, U.S. Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 1.2 $ 1.8 $ 2.2 Interest cost 35.7 42.7 44.4 1.2 2.1 2.2 Expected return on plan assets (69.8 ) (74.9 ) (78.1 ) — — — Amortization of net loss — 5.7 3.7 (2.2 ) — — Amortization of prior service costs — — — (0.9 ) (0.9 ) — Special Termination Benefits — 23.6 — — 3.1 — Net periodic benefit (income) cost (34.1 ) (2.9 ) (30.0 ) (0.7 ) 6.1 4.4 Other changes recognized in OCI: Total recognized in OCI (income) loss $ (24.8 ) $ (31.8 ) $ (15.5 ) $ 4.2 $ (23.0 ) $ (6.1 ) Total recognized in net periodic benefit cost and OCI $ (58.9 ) $ (34.7 ) $ (45.5 ) $ 3.5 $ (16.9 ) $ (1.7 ) Assumptions used to determine net periodic benefit costs: Discount rate 4.15 % 4.38 % 3.99 % 3.21 % 3.43 % 3.14 % Expected return on plan assets 5.50 % 6.00 % 6.00 % N/A N/A N/A Salary increases N/A N/A N/A N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 6.93 % 7.27 % 7.62 % Ultimate trend rate N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A N/A 2038 2038 2030 The estimated net gain that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year is zero for Pension Benefits and $3.2 for Other Post-Retirement Benefits plans. The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2017 , 2016 , and 2015 are as follows: Pension Benefits Periods Ended December 31, U.K. Plans 2017 2016 2015 Components of net periodic benefit cost (income): Service cost $ 1.3 $ 1.0 $ 1.2 Interest cost 2.0 2.9 3.3 Expected return on plan assets (2.9 ) (3.6 ) (4.9 ) Settlement gain (0.3 ) — — Net periodic benefit cost (income) $ 0.1 $ 0.3 $ (0.4 ) Other changes recognized in OCI: Total (income) loss recognized in OCI $ (6.7 ) $ (4.6 ) $ 1.5 Total recognized in net periodic benefit cost and OCI $ (6.6 ) $ (4.3 ) $ 1.1 Assumptions used to determine net periodic benefit costs: Discount rate 2.70 % 4.00 % 3.80 % Expected return on plan assets 3.20 % 4.30 % 4.80 % Salary increases 3.20 % 3.10 % 3.05 % The estimated net (gain) loss that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year for the U.K. plan is zero . Currently, the Company records all components of net periodic benefit costs in operating profit as part of cost of sales. As described in Note 2, Summary of Significant Accounting Policies , the adoption of ASU 2017-07 in 2018 requires the Company to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income. Assumptions The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. In 2016, the Company incorporated the MMP-2016 improvement scale. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership. The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trends. A one-percentage point increase in the initial through ultimate assumed health care trend rates would have increased the accumulated post-retirement benefit obligation by $2.2 at December 31, 2017 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . A one-percentage point decrease would have decreased the obligation by $2.1 and the aggregate service and interest cost components of non-pension post-retirement benefit expense for 2017 by $0.1 . |
U.S. Plans Investment Objectives | The allowable asset allocation range is: Equities 20 - 50% Fixed income 50 - 80% Real estate 0 - 7% |
Asset Category U.S. | The Company’s plans have asset allocations for the U.S., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.S. Equity securities — U.S. 24 % 29 % Equity securities — International 4 % 4 % Debt securities 70 % 65 % Real estate 2 % 2 % Total 100 % 100 % |
U.K. Plans Investment Objecives | U.K. Plans The Trustee’s investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plan. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is: Equity securities 35 % Debt securities 60 % Property 5 % |
Asset Category U.K. | The Company’s plans have asset allocations for the U.K., as of December 31, 2017 and December 31, 2016 , as follows: 2017 2016 Asset Category — U.K. Equity securities 36 % 24 % Debt securities 58 % 71 % Other 6 % 5 % Total 100 % 100 % |
Total Benefits Expected To Be Paid Over Next Ten Years | The total benefits expected to be paid over the next ten years from the plans' assets or the assets of the Company, by country, are as follows: U.S. Pension Plans Other Post-Retirement Benefit Plans 2018 $ 34.7 $ 7.7 2019 $ 38.1 $ 6.8 2020 $ 41.7 $ 5.4 2021 $ 45.2 $ 5.1 2022 $ 49.0 $ 4.7 2023-2026 $ 287.0 $ 19.9 U.K. Pension Plans 2018 $ 0.8 2019 $ 0.8 2020 $ 0.9 2021 $ 0.9 2022 $ 0.9 2023-2026 $ 4.8 |
Pension Plan Assets Measured at Fair Value on a Recurring Basis | Fair Value Measurements The pension plan assets are valued at fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Temporary Cash Investments — These investments consist of U.S. dollars and foreign currencies held in master trust accounts. Foreign currencies held are reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as level 1 investments. Collective Investment Trusts — These investments are public investment vehicles valued using market prices and performance of the fund. The trust allocates notional units to the policy holder based on the underlying notional unit buy (offer) price using the middle market price plus transaction costs. These investments are classified within level 2 of the valuation hierarchy. In addition, the collective investment trust includes a real estate fund which is classified within level 3 of the valuation hierarchy. Commingled Equity and Bond Funds — These investments are valued at the closing price reported by the Plan Trustee. These investments are not being traded in an active market, but are backed by various investment securities managed by the Bank of New York. Fair value is being calculated using inputs that rely on the Bank of New York’s own assumptions that are based on underlying investments which are traded on an active market and classified within level 2 of the valuation hierarchy. As of December 31, 2017 and December 31, 2016 , the pension plan assets measured at fair value on a recurring basis were as follows: At December 31, 2017 Using Description December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.3 $ 0.3 $ — $ — Collective Investment Trusts 96.5 — 90.6 5.9 Commingled Equity and Bond Funds 1,410.3 — 1,410.3 — $ 1,507.1 $ 0.3 $ 1,500.9 $ 5.9 At December 31, 2016 Using Description December 31, 2016 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Temporary Cash Investments $ 0.2 $ 0.2 $ — $ — Collective Investment Trusts 96 — 91.2 4.8 Commingled Equity and Bond Funds 1,302.9 — 1,302.9 — $ 1,399.1 $ 0.2 $ 1,394.1 $ 4.8 The table below sets forth a summary of changes in the fair value of the Plan’s level 3 investment assets and liabilities for the years ended December 31, 2017 and December 31, 2016 : December 31, 2017 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 $ 4.8 $ — $ 0.6 $ — $ 0.5 $ 5.9 December 31, 2016 Description Beginning Fair Value Purchases Gain (Loss) Sales, Maturities, Settlements, Net Exchange rate Ending Fair Value Collective Investment Trusts $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 $ 5.6 $ — $ 0.1 $ — $ (0.9 ) $ 4.8 |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Shares Value (1) Class A Class A (Thousands) Long-Term Incentive Plan/Long-Term Incentive Award under Omnibus Plan Nonvested at December 31, 2014 2,255 $ 58.3 Granted during period 632 32.8 Vested during period (879 ) (21.6 ) Forfeited during period (171 ) (5.1 ) Nonvested at December 31, 2015 1,837 64.4 Granted during period 830 38.3 Vested during period (830 ) (24.5 ) Forfeited during period (280 ) (10.9 ) Nonvested at December 31, 2016 1,557 67.3 Granted during period 644 35.5 Vested during period (655 ) (25.0 ) Forfeited during period (93 ) (4.4 ) Nonvested at December 31, 2017 1,453 $ 73.4 _______________________________________ (1) Value represents grant date fair value. Shares Value (1) Class A Class A (Thousands) Board of Directors Stock Grants Nonvested at December 31, 2014 30 $ 1.1 Granted during period 21 1.1 Vested during period (27 ) (1.0 ) Forfeited during period (3 ) (0.1 ) Nonvested at December 31, 2015 21 1.1 Granted during period 26 1.2 Vested during period (21 ) (1.1 ) Forfeited during period — — Nonvested at December 31, 2016 26 1.2 Granted during period 24 1.2 Vested during period (26 ) (1.2 ) Forfeited during period — — Nonvested at December 31, 2017 24 $ 1.2 _______________________________________ (1) Value represents grant date fair value. 15. Stock Compensation Holdings has established the stockholder-approved 2014 Omnibus Incentive Plan (the “Omnibus Plan”) to grant cash and equity awards to certain individuals. Compensation values are based on the value of Holdings’ class A common stock on the grant date. The common stock value is added to equity and charged to period expense. Holdings has recognized a net total of $22.1 , $42.5 , and $26.0 of stock compensation expense for the periods ended December 31, 2017, 2016, and 2015, respectively. Stock compensation expense is charged in its entirety directly to selling, general and administrative expense. Short-Term Incentive Plan The Short-Term Incentive Program under the Omnibus Plan enables eligible employees to receive incentive benefits in the form of cash as determined by the Compensation Committee. Board of Directors Stock Awards The Company’s Omnibus Plan provides non-employee directors the opportunity to receive grants of restricted shares of class A common stock, or Restricted Stock Units (“RSUs”) or a combination of both class A common stock and RSUs. The class A common stock grants and RSU grants vest one year from the grant date subject to the directors compliance with the one-year service condition; however, the RSU grants are not payable until the director’s separation from service. The Board of Directors is authorized to make discretionary grants of shares or RSUs from time to time. Compensation values are based on the value of Holdings’ class A common stock on the grant date. The common stock value is added to equity and charged to period expense or included in inventory and cost of sales. The Company expensed a net amount of $1.0 , $1.2 , and $0.9 for the Board of Directors shares for the periods ended December 31, 2017, 2016, and 2015, respectively. The Company’s unamortized stock compensation related to these restricted shares is $0.5 , which will be recognized over a weighted average remaining period of 5 months . The intrinsic value of the unvested shares based on the value of the Company's stock at December 31, 2017 was $2.1 , based on the value of the Company’s stock and the number of unvested shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | The following summarizes pretax income: 2017 2016 2015 U.S. $ 426.6 $ 593.3 $ 739.4 International 108.0 67.2 68.7 Total (before equity earnings) $ 534.6 $ 660.5 $ 808.1 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The tax provision contains the following components: 2017 2016 2015 Current Federal $ 107.3 $ 158.0 $ 175.5 State 0.7 3.6 3.5 Foreign 20.0 29.2 5.5 Total current $ 128.0 $ 190.8 $ 184.5 Deferred Federal $ 53.6 $ 20.0 $ (119.1 ) State (0.2 ) (1.0 ) (48.9 ) Foreign (1.4 ) (17.7 ) 4.1 Total deferred 52.0 1.3 (163.9 ) Total tax provision $ 180.0 $ 192.1 $ 20.6 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2017 2016 2015 Tax at U.S. Federal statutory rate $ 187.1 35.0 % $ 231.2 35.0 % $ 283.3 35.0 % State income taxes, net of Federal benefit 8.8 1.6 11.6 1.8 15.0 1.9 State income tax credits, net of Federal benefit (9.7 ) (1.8 ) (9.4 ) (1.4 ) (4.1 ) (0.5 ) Foreign rate differences (20.6 ) (3.8 ) (13.5 ) (2.0 ) (13.5 ) (1.7 ) Research and Experimentation (2.6 ) (0.5 ) (3.6 ) (0.6 ) (3.3 ) (0.4 ) Domestic Production Activities Deduction (7.1 ) (1.3 ) (16.4 ) (2.5 ) (17.8 ) (2.2 ) Interest on assessments (0.1 ) — 0.6 0.1 (1.0 ) (0.1 ) Excess tax benefits (4.8 ) (0.9 ) (4.6 ) (0.7 ) — — Valuation Allowance - U.S. Deferred Tax Asset — — — — (241.9 ) (29.9 ) Transition Tax 44.9 8.4 — — — — Re-measurement of Deferred Taxes (16.2 ) (3.0 ) — — — — Other 0.3 — (3.8 ) (0.6 ) 3.9 0.5 Total provision for income taxes $ 180.0 33.7 % $ 192.1 29.1 % $ 20.6 2.6 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2017 2016 Long-term contracts $ 69.0 $ 127.7 Post-retirement benefits other than pensions 11.2 19.1 Pension and other employee benefit plans (65.1 ) (77.5 ) Employee compensation accruals 33.8 68.0 Depreciation and amortization (104.4 ) (154.4 ) Inventory 1.9 1.7 State income tax credits 89.8 71.7 Accruals and reserves 58.3 91.7 Deferred production (1.7 ) (3.7 ) Net operating loss carryforward 0.3 3.7 Other (5.9 ) (5.7 ) Net deferred tax asset 87.2 142.3 Valuation allowance (15.0 ) (13.6 ) Net deferred tax asset $ 72.2 $ 128.7 |
Unrecognized Tax Benefits reconciliation Table | 2017 2016 2015 Beginning balance $ 6.3 $ 6.2 $ 5.9 Gross increases related to current period tax positions — — — Gross increases related to prior period tax positions 0.4 0.1 0.3 Gross decreases related to prior period tax positions — — — Statute of limitations' expiration — — — Settlements — — — Ending balance $ 6.7 $ 6.3 $ 6.2 |
Equity (Tables)
Equity (Tables) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss, net of tax, is summarized by component as follows: December 31, 2017 December 31, 2016 Pension $ (75.9 ) $ (98.5 ) SERP/ Retiree medical 17.7 20.5 Foreign currency impact on long term intercompany loan (14.2 ) (19.1 ) Currency translation adjustment (56.1 ) (89.8 ) Total accumulated other comprehensive loss $ (128.5 ) $ (186.9 ) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ 0.3 | $ 5.7 | $ 3.7 | |
Accumulated Other Comprehensive Income (Loss) | $ (128.5) | (128.5) | (186.9) | |
Stock Repurchased During Period, Value | 649.6 | $ 502.1 | 649.6 | |
Schedule Of Earnings Per Share, Basic And Diluted | 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 following table sets forth the computation of basic and diluted earnings per share: For the Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Income Shares Per Share Amount Income Shares Per Share Amount Loss Shares Per Share Amount Basic EPS Income available to common shareholders $ 354.7 116.8 $ 3.04 $ 469.4 126.1 $ 3.72 $ 788.0 138.4 $ 5.69 Income allocated to participating securities 0.2 0.1 0.3 0.1 0.7 0.1 Net income $ 354.9 $ 469.7 $ 788.7 Diluted potential common shares 1.0 0.8 0.9 Diluted EPS Net income $ 354.9 117.9 $ 3.01 $ 469.7 127.0 $ 3.70 $ 788.7 139.4 $ 5.66 Included in the outstanding common shares were 1.5 million , 1.6 million and 1.9 million of issued but unvested shares at December 31, 2017 , 2016 and 2015 , respectively, which are excluded from the basic EPS calculation. | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | (75.9) | $ (75.9) | (98.5) | |
Accumulated SERP And Retiree Medical [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | 17.7 | 17.7 | 20.5 | |
Foreign Currency Impact On Long Term Intercompany Loan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | (14.2) | (14.2) | (19.1) | |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | $ (56.1) | $ (56.1) | $ (89.8) |
Commitments, Contingencies an49
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Lease Or Rental Payments For Leases Table [Text Block] | Commitments The Company leases equipment and facilities under various non-cancelable capital and operating leases. The capital leasing arrangements extend through 2024. Minimum future lease payments under these leases at December 31, 2017 are as follows: Capital Operating Present Value Interest Total 2018 $ 8.3 $ 5.2 $ 1.5 $ 15.0 2019 $ 7.4 $ 5.5 $ 1.3 $ 14.2 2020 $ 6.0 $ 5.7 $ 1.0 $ 12.7 2021 $ 4.8 $ 5.8 $ 1.1 $ 11.7 2022 $ 3.9 $ 5.9 $ 0.6 $ 10.4 2023 and thereafter $ 15.2 $ 8.5 $ 0.5 $ 24.2 |
Schedule Of Operating Lease Expenses | Operating lease payments were as follows: 2017 2016 2015 Minimum rentals $ 14.1 $ 15.4 $ 17.8 Total $ 14.1 $ 15.4 $ 17.8 |
Service Warranty Roll Forward | The following is a roll forward of the service warranty and extraordinary rework balance at December 31, 2017, 2016 and 2015: 2017 2016 2015 Balance, January 1 $ 163.7 $ 158.7 $ 119.9 Charges to costs and expenses 5.8 16.7 43.8 Payouts (4.0 ) (9.5 ) (4.8 ) Exchange rate 0.9 (2.2 ) (0.2 ) Balance, December 31 $ 166.4 $ 163.7 $ 158.7 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income Expense Net | Other income (expense), net is summarized as follows: For the Twelve Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Kansas Development Finance Authority bond $ 3.2 $ 3.4 $ 3.9 Rental and miscellaneous income (expense) 1.2 0.3 (2.0 ) Interest Income 6.4 3.6 2.1 Loss on sale of accounts receivable (see Note 4, Accounts Receivable, net ) (3.3 ) — — Foreign currency losses (0.3 ) (14.6 ) (6.2 ) Total $ 7.2 $ (7.3 ) $ (2.2 ) |
Supplemental Balance Sheet In51
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2017 December 31, Accrued expenses Accrued wages and bonuses $ 40.8 $ 32.9 Accrued fringe benefits 116.3 117.5 Accrued interest 5.8 5.3 Workers' compensation 8.1 6.7 Property and sales tax 24.7 15.5 Warranty/extraordinary rework reserve — current 2.2 2.9 Other 71.4 35.4 Total $ 269.3 $ 216.2 Other liabilities Deferred tax liability — non-current $ 0.3 $ 0.1 Warranty/extraordinary rework reserve — non-current 164.2 160.8 Customer cost recovery 22.9 40.7 Other 65.2 74.5 Total $ 252.6 $ 276.1 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The following table shows segment revenues and operating income for the twelve months ended December 31, 2017 , 2016 and 2015 : Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2016 Twelve Months Ended December 31, 2015 Segment Revenues Fuselage Systems $ 3,730.8 $ 3,498.8 $ 3,447.0 Propulsion Systems 1,666.2 1,777.3 1,750.7 Wing Systems 1,578.8 1,508.7 1,437.7 All Other 7.2 8.1 8.5 $ 6,983.0 $ 6,792.9 $ 6,643.9 Segment Operating Income (1) Fuselage Systems $ 347.7 $ 468.6 $ 607.3 Propulsion Systems 275.1 325.9 378.2 Wing Systems 212.4 223.6 178.5 All Other 2.0 1.6 1.3 837.2 1,019.7 1,165.3 Corporate SG&A (200.3 ) (228.3 ) (220.8 ) Unallocated impact of severe weather event (see Note 25) (19.9 ) (12.1 ) — Research and development (31.2 ) (23.8 ) (27.8 ) Unallocated cost of sales (2) (16.7 ) (30.4 ) (53.7 ) Total operating income $ 569.1 $ 725.1 $ 863.0 _______________________________________ (1) Inclusive of forward losses, changes in estimate on loss programs and cumulative catch-up adjustments. These changes in estimates for the periods ended December 31, 2017, 2016 and 2015 are further detailed in Note 3, Changes in Estimates . (2) For 2017, includes charges of $1.8 and $12.7 , related to warranty reserve and charges for excess purchases and purchase commitments, respectively. For 2016, includes charges of $13.8 and $23.6 related to warranty reserve and early retirement incentives, respectively, offset by $7.9 for the settlement of historical claims with suppliers. In 2015, includes charges of $40.7 , $0.8 , and $6.4 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following chart illustrates the split between domestic and foreign revenues: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Revenue Source (1) Net Revenues Percent of Total Net Revenues Net Revenues Percent of Total Net Revenues Net Revenues Percent of Total Net Revenues United States $ 5,722.9 82 % $ 5,650.1 83 % $ 5,709.0 86 % International United Kingdom 740.9 11 % 690.7 10 % 570.1 9 % Other 519.2 7 % 452.1 7 % 364.8 5 % Total International 1,260.1 18 % 1,142.8 17 % 934.9 14 % Total Revenues $ 6,983.0 100 % $ 6,792.9 100 % $ 6,643.9 100 % _______________________________________ (1) Net Revenues are attributable to countries based on destination where goods are delivered. Most of the Company’s long-lived assets are located within the U.S. Approximately 4% of the Company's long-lived assets based on book value are located in the U.K. with approximately another 4% of the Company's total long-lived assets located in countries outside the U.S. and the U.K. The following chart illustrates the split between domestic and foreign assets: Year Ended December 31, 2017 Year Ended December 31, 2016 Year Ended December 31, 2015 Asset Location Total Long-Lived Assets Percent of Total Long-Lived Assets Total Long-Lived Assets Percent of Total Long-Lived Assets Total Long-Lived Assets Percent of Total Long-Lived Assets United States $ 1,939.0 92 % $ 1,828.2 92 % $ 1,755.6 90 % International United Kingdom 82.5 4 % 80.0 4 % 95.0 5 % Other 83.8 4 % 83.4 4 % 100.1 5 % Total International 166.3 8 % 163.4 8 % 195.1 10 % Total Long-Lived Assets $ 2,105.3 100 % $ 1,991.6 100 % $ 1,950.7 100 % |
Quarterly Financial Data (Una53
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly Financial Data (Unaudited) Quarter Ended 2017 December 31, 2017 (1) September 28, 2017 (2) June 29, 2017 (3) March 30, 2017 (4) Revenues $ 1,714.6 $ 1,748.2 $ 1,826.1 $ 1,694.1 Gross profit (loss) $ 290.4 $ 269.7 $ (20.9 ) $ 281.3 Operating income (loss) $ 226.9 $ 211.4 $ (82.8 ) $ 213.6 Net income (loss) $ 122.8 $ 147.2 $ (56.8 ) $ 141.7 Earnings (loss) per share, basic $ 1.08 $ 1.27 $ (0.48 ) $ 1.19 Earnings (loss) per share, diluted $ 1.07 $ 1.26 $ (0.48 ) $ 1.17 Dividends declared per common share $ 0.10 $ 0.10 $ 0.10 $ 0.10 Quarter Ended 2016 December 31, (5) September 29, June 30, March 31, Revenues $ 1,570.0 $ 1,711.4 $ 1,829.9 $ 1,681.6 Gross profit $ 236.8 $ 272.0 $ 157.9 $ 322.6 Operating income $ 160.9 $ 214.4 $ 83.3 $ 266.5 Net income $ 108.2 $ 145.1 $ 44.8 $ 171.6 Earnings per share, basic $ 0.90 $ 1.16 $ 0.35 $ 1.30 Earnings per share, diluted $ 0.89 $ 1.16 $ 0.35 $ 1.29 Dividends declared per common share $ 0.10 $ — $ — $ — ______________________________________ (1) Fourth quarter 2017 earnings include the impact of net favorable changes in estimate of $12.9 . (2) Third quarter 2017 earnings include the impact of net unfavorable changes in estimate of $4.8 . (3) Second quarter 2017 earnings include the impact of net unfavorable changes in estimate of $329.2 . (4) First quarter 2017 earnings include the impact of net favorable changes in estimate of $5.2 . (5) Fourth quarter 2016 earnings include the impact of net favorable changes in estimate of $7.5 , as well as $11.8 related to early retirement incentives. (6) Third quarter 2016 earnings include the impact of net favorable changes in estimate of $5.5 . (7) Second quarter 2016 earnings include the impact of net unfavorable changes in estimate of $134.7 . (8) First quarter 2016 earnings include the impact of net favorable changes in estimate of $47.2 , as well as $11.8 related to early retirement incentives. |
Condensed Consolidating Finan54
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations and Comprehensive Income For the Twelve Months Ended December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,236.4 $ 1,362.3 $ (615.7 ) $ 6,983.0 Operating costs and expenses Cost of sales — 5,559.4 1,218.8 (615.7 ) 6,162.5 Selling, general and administrative 12.4 173.1 14.8 — 200.3 Impact of severe weather event — 19.9 — — 19.9 Research and development — 27.8 3.4 — 31.2 Total operating costs and expenses 12.4 5,780.2 1,237.0 (615.7 ) 6,413.9 Operating (loss) income (12.4 ) 456.2 125.3 — 569.1 Interest expense and financing fee amortization — (41.6 ) (5.7 ) 5.6 (41.7 ) Other income (expense), net — 12.4 0.4 (5.6 ) 7.2 (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (12.4 ) 427.0 120.0 — 534.6 Income tax benefit (provision) 4.7 (161.7 ) (23.0 ) — (180.0 ) (Loss) income before equity in net income of affiliates and subsidiaries (7.7 ) 265.3 97.0 — 354.6 Equity in net income of affiliates 0.3 — 0.3 (0.3 ) 0.3 Equity in net income of subsidiaries 362.3 97.0 — (459.3 ) — Net income 354.9 362.3 97.3 (459.6 ) 354.9 Other comprehensive loss 58.4 58.4 42.2 (100.6 ) 58.4 Comprehensive income $ 413.3 $ 420.7 $ 139.5 $ (560.2 ) $ 413.3 Condensed Consolidating Statements of Operations and Comprehensive Loss For the Twelve Months Ended December 31, 2016 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,124.6 $ 1,284.2 $ (615.9 ) $ 6,792.9 Operating costs and expenses Cost of sales — 5,255.0 1,164.5 (615.9 ) 5,803.6 Selling, general and administrative 8.7 203.6 16.0 — 228.3 Impact of severe weather event — 12.1 — — 12.1 Research and development — 20.8 3.0 — 23.8 Total operating costs and expenses 8.7 5,491.5 1,183.5 (615.9 ) 6,067.8 Operating (loss) income (8.7 ) 633.1 100.7 — 725.1 Interest expense and financing fee amortization — (57.0 ) (7.8 ) 7.5 (57.3 ) Other income (expense), net — 14.9 (14.7 ) (7.5 ) (7.3 ) (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (8.7 ) 591.0 78.2 — 660.5 Income tax benefit (provision) 2.6 (179.2 ) (15.5 ) (192.1 ) (Loss) income before equity in net income of affiliates and subsidiaries (6.1 ) 411.8 62.7 — 468.4 Equity in net income of affiliates 1.3 — 1.3 (1.3 ) 1.3 Equity in net income of subsidiaries 474.5 62.6 — (537.1 ) — Net income 469.7 474.4 64.0 (538.4 ) 469.7 Other comprehensive loss (26.4 ) (26.4 ) (61.3 ) 87.7 (26.4 ) Comprehensive income $ 443.3 $ 448.0 $ 2.7 $ (450.7 ) $ 443.3 Condensed Consolidating Statements of Operations and Comprehensive Income For the Twelve Months Ended December 31, 2015 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Revenues $ — $ 6,096.1 $ 1,030.6 $ (482.8 ) $ 6,643.9 Operating costs and expenses Cost of sales — 5,095.4 919.7 (482.8 ) 5,532.3 Selling, general and administrative 7.1 194.9 18.8 — 220.8 Research and development — 25.7 2.1 — 27.8 Total operating costs and expenses 7.1 5,316.0 940.6 (482.8 ) 5,780.9 Operating (loss) income (7.1 ) 780.1 90.0 — 863.0 Interest expense and financing fee amortization — (52.2 ) (7.8 ) 7.3 (52.7 ) Other income (expense), net — 11.3 (6.3 ) (7.2 ) (2.2 ) (Loss) income before income taxes and equity in net income of affiliates and subsidiaries (7.1 ) 739.2 75.9 0.1 808.1 Income tax (provision) benefit 0.1 (8.4 ) (12.3 ) (20.6 ) (Loss) income before equity in net income of affiliates and subsidiaries (7.0 ) 730.8 63.6 0.1 787.5 Equity in net income of affiliates 1.2 — 1.2 (1.2 ) 1.2 Equity in net income of subsidiaries 794.5 63.6 — (858.1 ) — Net income 788.7 794.4 64.8 (859.2 ) 788.7 Other comprehensive loss (6.7 ) (6.7 ) (21.1 ) 27.8 (6.7 ) Comprehensive income $ 782.0 $ 787.7 $ 43.7 $ (831.4 ) $ 782.0 |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 365.1 $ 58.2 $ — $ 423.3 Restricted cash — 2.2 — — 2.2 Accounts receivable, net — 752.6 330.9 (361.3 ) 722.2 Inventory, net — 1,010.0 439.9 — 1,449.9 Other current assets — 50.3 3.2 — 53.5 Total current assets — 2,180.2 832.2 (361.3 ) 2,651.1 Property, plant and equipment, net — 1,585.8 519.5 — 2,105.3 Pension assets — 327.2 19.9 — 347.1 Investment in subsidiary 1,801.5 704.4 — (2,505.9 ) — Other assets — 298.2 124.5 (258.4 ) 164.3 Total assets $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Liabilities Accounts payable $ — $ 629.0 $ 425.4 $ (361.3 ) $ 693.1 Accrued expenses — 239.5 29.8 — 269.3 Profit sharing — 103.4 6.1 — 109.5 Current portion of long-term debt — 30.2 0.9 — 31.1 Advance payments, short-term — 100.0 — — 100.0 Deferred revenue, short-term — 63.6 1.0 — 64.6 Deferred grant income liability — current — — 21.6 — 21.6 Other current liabilities — 324.3 7.5 — 331.8 Total current liabilities — 1,490.0 492.3 (361.3 ) 1,621.0 Long-term debt — 1,110.6 167.1 (157.8 ) 1,119.9 Advance payments, long-term — 231.7 — — 231.7 Pension/OPEB obligation — 40.8 — — 40.8 Deferred grant income liability — non-current — — 39.3 — 39.3 Deferred revenue and other deferred credits — 158.2 2.8 — 161.0 Other liabilities — 343.1 10.1 (100.6 ) 252.6 Total equity 1,801.5 1,721.4 784.5 (2,505.9 ) 1,801.5 Total liabilities and shareholders’ equity $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 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 — 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, 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 shareholders’ equity $ 1,928.8 $ 5,226.6 $ 1,376.3 $ (3,126.5 ) $ 5,405.2 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 450.5 $ 123.2 $ — $ 573.7 Investing activities Purchase of property, plant and equipment — (241.4 ) (31.7 ) (273.1 ) Proceeds from sale of assets — 0.4 — — 0.4 Other — (0.1 ) — — (0.1 ) Net cash used in investing activities — (241.1 ) (31.7 ) — (272.8 ) Financing activities Principal payments of debt — (1.2 ) (1.6 ) — (2.8 ) Collection on (repayment of) intercompany debt — 54.9 (54.9 ) — — Payments on term loan — (25.0 ) — — (25.0 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Taxes paid related to net share settlement awards — (14.2 ) — — (14.2 ) Proceeds from financing under New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 496.3 (496.3 ) — — — Purchase of treasury stock (496.3 ) — — — (496.3 ) Proceeds (payments) from subsidiary for dividends paid 47.1 (47.1 ) — — — Dividends paid (47.1 ) — — — (47.1 ) Change in restricted cash — (2.2 ) — — (2.2 ) Net cash used in financing activities — (524.4 ) (56.5 ) — (580.9 ) Effect of exchange rate changes on cash and cash equivalents — — 5.6 — 5.6 Net (decrease) increase in cash and cash equivalents for the period — (315.0 ) 40.6 — (274.4 ) Cash and cash equivalents, beginning of period — 680.1 17.6 — 697.7 Cash and cash equivalents, end of period $ — $ 365.1 $ 58.2 $ — $ 423.3 Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2016 Holdings Spirit Non-Guarantor Consolidating Total Operating activities Net cash provided by operating activities $ — $ 645.9 $ 71.0 $ — $ 716.9 Investing activities Purchase of property, plant and equipment — (206.4 ) (47.6 ) (254.0 ) Proceeds from sale of assets — 0.6 — — 0.6 Other — 0.4 (0.4 ) — — Net cash used in investing activities — (205.4 ) (48.0 ) — (253.4 ) Financing activities Proceeds from issuance of bonds — 299.8 — — 299.8 Principal payments of debt — (33.9 ) (2.5 ) — (36.4 ) Collection on (repayment of) intercompany debt — 61.6 (61.6 ) — — Payments on term loan — (300.0 ) — — (300.0 ) Debt issuance and financing costs — (17.2 ) — — (17.2 ) Taxes paid related to net share settlement awards — (15.2 ) — — (15.2 ) Excess tax benefits from share-based payment arrangements — (0.1 ) — — (0.1 ) 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 — (654.6 ) (64.1 ) — (718.7 ) Effect of exchange rate changes on cash and cash equivalents — — (4.4 ) — (4.4 ) Net decrease in cash and cash equivalents for the period — (214.1 ) (45.5 ) — (259.6 ) Cash and cash equivalents, beginning of period — 894.2 63.1 — 957.3 Cash and cash equivalents, end of period $ — $ 680.1 $ 17.6 $ — $ 697.7 Condensed Consolidating Statements of Cash Flows For the Twelve Months Ended December 31, 2015 Holdings Spirit Non-Guarantor Consolidating Total Operating activities Net cash provided by operating activities $ — $ 1,167.5 $ 122.2 $ — $ 1,289.7 Investing activities Purchase of property, plant and equipment — (273.3 ) (86.8 ) (360.1 ) Proceeds from sale of assets — 2.7 — — 2.7 Other — (0.2 ) 0.2 — — Net cash used in investing activities — (270.8 ) (86.6 ) — (357.4 ) Financing activities Proceeds from issuance of debt — 535.0 — — 535.0 Principal payments of debt — (33.4 ) (3.1 ) — (36.5 ) Collection on (repayment of) intercompany debt — (8.9 ) 8.9 — — Payments on term loan — (534.9 ) — — (534.9 ) Debt issuance and financing costs — (4.7 ) — — (4.7 ) Taxes paid related to net share settlement awards — (20.7 ) — — (20.7 ) Excess tax benefits from share-based payment arrangements — 10.5 0.2 — 10.7 Proceeds (payments) from subsidiary for purchase of treasury stock 300.0 (300.0 ) — — — Purchase of treasury stock (300.0 ) — — — (300.0 ) Net cash (used in) provided by financing activities — (357.1 ) 6.0 — (351.1 ) Effect of exchange rate changes on cash and cash equivalents — — (1.8 ) — (1.8 ) Net increase in cash and cash equivalents for the period — 539.6 39.8 — 579.4 Cash and cash equivalents, beginning of period — 354.6 23.3 — 377.9 Cash and cash equivalents, end of period $ — $ 894.2 $ 63.1 $ — $ 957.3 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
Textuals [Line Items] | ||||
Non-recurring Revenues | $ 466.9 | $ 302.1 | $ 307.4 | |
Allowance for Doubtful Accounts Receivable | $ 1.3 | 5.2 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by Spirit, and has an acquisition cost of greater than $0.1 . Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. | |||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Product Warranty And Extraordinary Rework, Beginning Balance | $ 163.7 | 158.7 | 119.9 | |
Charges to costs and expenses | 5.8 | 16.7 | 43.8 | |
Product Warranty Accrual, Payments | (4) | (9.5) | (4.8) | |
Exchange rate | 0.9 | (2.2) | (0.2) | |
Product Warranty And Extraordinary Rework, Ending Balance | 166.4 | 163.7 | 158.7 | |
Affiliates [Line Items] | ||||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1.6 | (0.9) | $ (57.4) | |
Equity in net assets of affiliates | 4.7 | 4.4 | ||
Deferred Tax Assets, Valuation Allowance | $ 15 | $ 13.6 | ||
Land and Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 45 years | |||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Machinery and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Tooling Airplane Program B787 Rolls Royce [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Tooling Airplane Program B787 Rolls Royce [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Tooling Airplane Program All Others [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Tooling Airplane Program All Others [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 2 years | |||
Software [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Software [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Policy [Policy Text Block] | 0.1 | |||
Property, Plant and Equipment, Useful Life | 3 years | |||
Capitalization Policy, Service Life | 1 year | |||
Capitalization Policy, Software, Acquisition Cost | $ 0.1 | |||
Accounting Standards Update 2014-09 [Member] | Maximum [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 370 | |||
Accounting Standards Update 2014-09 [Member] | Minimum [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 350 | |||
Net Estimated Tax Benefit in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | Maximum [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 85 | |||
Net Estimated Tax Benefit in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | Minimum [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 75 | |||
PreTax Impact on Deferred Production in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 651 | |||
PreTax Impact on Forward Loss Provision in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 367 | |||
PreTax Impact on Deferred Revenue in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | 113 | |||
PreTax Impact on Capitalized PreProduction in Retained Earnings Transition Adjustment Upon Adoption of AS014-09 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Retrospective Adjustments [Abstract] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 49 | |||
State and Local Jurisdiction [Member] | ||||
Affiliates [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $ 15 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 15 | $ 13.6 | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1.6 | $ (0.9) | $ (57.4) |
State and Local Jurisdiction [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 15 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change In Estimate [Line Items] | |||||||||||
Change In Accounting Estimate, aggregate, affecting earnings from continuing operations | $ 12,900,000 | $ 4,800,000 | $ 329,200,000 | $ 5,200,000 | $ 7,500,000 | $ 5,500,000 | $ 134,700,000 | $ 47,200,000 | $ (296,100,000) | $ (81,600,000) | $ 52,400,000 |
Changes in Accounting Estimates - Contract Accounting, aggregate, Affecting earnings from Continuing Operations, per Share diluted | $ (1.58) | $ (0.40) | $ 0.24 | ||||||||
Change in Accounting Estimate - Contract Accounting | $ (327,300,000) | $ (118,200,000) | $ 10,800,000 | ||||||||
Cumulative catch-up adjustment [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 31,200,000 | 36,600,000 | 41,600,000 | ||||||||
Wing Systems [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | (63,900,000) | ||||||||||
Wing Systems [Member] | Cumulative catch-up adjustment [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 23,400,000 | 23,400,000 | 2,700,000 | ||||||||
Wing Systems [Member] | Forward Loss [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 5,100,000 | (300,000) | |||||||||
Fuselage Systems [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | (223,200,000) | (133,400,000) | 8,700,000 | ||||||||
Fuselage Systems [Member] | Cumulative catch-up adjustment [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 4,000,000 | 13,600,000 | 16,100,000 | ||||||||
Propulsion Systems [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | (40,200,000) | 10,100,000 | 2,400,000 | ||||||||
Propulsion Systems [Member] | Cumulative catch-up adjustment [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 3,800,000 | (400,000) | $ 22,800,000 | ||||||||
B787 [Member] | Change in Estimate on Loss Program [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | 41,100,000 | ||||||||||
B787 [Member] | Forward Loss [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | $ 353,000,000 | ||||||||||
Airbus350 XWB [Member] | Forward Loss [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | $ 19,400,000 | ||||||||||
Airbus350 XWB [Member] | Fuselage Systems [Member] | |||||||||||
Change In Estimate [Line Items] | |||||||||||
Change in Accounting Estimate - Contract Accounting | $ (6,100,000) | $ (135,700,000) | $ (141,800,000) |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 1,133.8 | ||
Accounts Receivable, Net | |||
Trade receivables | 710.5 | $ 647.3 | |
Other | 13 | 18.4 | |
Less: allowance for doubtful accounts | (1.3) | (5.2) | |
Accounts receivable, net | 722.2 | 660.5 | |
Gain (Loss) on Sale of Accounts Receivable | $ (3.3) | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Summary Of Inventories [Abstract] | ||
Raw materials | $ 321 | $ 281.9 |
Work-in-process | 854.4 | 790.7 |
Finished goods | 35.8 | 30.9 |
Product inventory | 1,211.2 | 1,103.5 |
Capitalized pre-production(1) | 78.9 | 103.5 |
Deferred production(2) | 640.3 | 717.4 |
Forward loss provision(3) | (480.5) | (409.1) |
Total inventory, net | $ 1,449.9 | $ 1,515.3 |
Inventory (Details 1)
Inventory (Details 1) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory By Platform [Abstract] | ||
Total capitalized pre-production | $ 78,900,000 | $ 103,500,000 |
Deferred production(2) | 640,300,000 | 717,400,000 |
Forward loss provision(3) | (480,500,000) | (409,100,000) |
Total inventory, net | 1,449,900,000 | 1,515,300,000 |
Contract Liability | 254,500,000 | |
Reclassification - inventory | 2,100,000 | |
B787 [Member] | ||
Inventory By Platform [Abstract] | ||
Forward loss provision(3) | (57,200,000) | |
A350 XWB [Member] | ||
Inventory By Platform [Abstract] | ||
Total capitalized pre-production | 70,000,000 | 84,000,000 |
Deferred production(2) | 632,800,000 | 657,200,000 |
Forward loss provision(3) | (275,500,000) | (255,800,000) |
Rolls-Royce [Member] | ||
Inventory By Platform [Abstract] | ||
Total capitalized pre-production | 6,000,000 | 15,000,000 |
Deferred production(2) | 129,300,000 | 114,600,000 |
Forward loss provision(3) | $ (137,400,000) | $ (140,800,000) |
Inventory (Details 2)
Inventory (Details 2) $ in Millions | Dec. 31, 2017USD ($) |
Capitalized Pre Production Inventory [Roll Forward] | |
Total capitalized pre-production, Beginning Balance | $ 103.5 |
Total capitalized pre-production, Ending Balance | $ 78.9 |
Inventory (Details 3)
Inventory (Details 3) $ in Millions | Dec. 31, 2017USD ($) |
Deferred Production Inventory [Roll Forward] | |
Deferred production costs, Beginning Balance | $ 717.4 |
Deferred production costs, Ending Balance | $ 640.3 |
Inventory (Details 4)
Inventory (Details 4) | 12 Months Ended |
Dec. 31, 2017USD ($)pure / $ | |
Inventories [Line Items] | |
Contract Liability | $ 254,500,000 |
A350 XWB [Member] | |
Block And Order Detail [Abstract] | |
Contract Block Quantity | 800 |
Contract Block Deliveries | 223 |
Rolls-Royce [Member] | |
Block And Order Detail [Abstract] | |
Contract Block Quantity | 350 |
Business/Regional Jets [Member] | |
Block And Order Detail [Abstract] | |
Contract Block Deliveries | 316 |
Property, Plant and Equipment64
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Cost of Property Repairs and Maintenance | $ 130 | $ 123.1 | $ 139 |
Capitalized Computer Software, Amortization | 19.2 | 18.6 | 16.9 |
Property, plant and equipment, net | |||
Land | 15.9 | 14.9 | |
Buildings (including improvements) | 764.1 | 642.5 | |
Machinery and equipment (1) | 1,529.9 | 1,373.9 | |
Tooling | 1,013.9 | 982.4 | |
Capitalized software (1) | 263.3 | 261.9 | |
Construction-in-progress | 213.4 | 193.7 | |
Total | 3,800.5 | 3,469.3 | |
Less: accumulated depreciation | (1,695.2) | (1,477.7) | |
Property, plant and equipment, net | $ 2,105.3 | $ 1,991.6 | $ 1,950.7 |
Property, Plant and Equipment65
Property, Plant and Equipment, net (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Reclassification - PPE | $ 7 | ||
Impairment of Long-Lived Assets Held-for-use | $ 8.2 | 8.3 | $ 10 |
Property Plant And Equipment Textuals [Abstract] | |||
Repair And Maintenance Costs | 130 | 123.1 | 139 |
Depreciation Expense Related To Capitalized Software | $ 19.2 | $ 18.6 | $ 16.9 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible assets | ||
Total intangible assets | $ 8.2 | $ 8.2 |
Intangible assets, net | 1.8 | 2.2 |
Deferred financing costs | 39.5 | 38.5 |
Less: Accumulated amortization-deferred financing costs | (33.7) | (32.2) |
Deferred financing costs, net(1) | 5.8 | 6.3 |
Goodwill — Europe | 2.5 | 2.3 |
Equity in net assets of affiliates | 4.7 | 4.4 |
Supply agreement(1) | 19.9 | 17 |
Restricted Cash and Investments, Noncurrent | 20 | 19.9 |
Non-current deferred tax assets | 72.5 | 128.8 |
Other | 37.1 | 40 |
Total | 164.3 | 220.9 |
Patents [Member] | ||
Intangible assets | ||
Total intangible assets | 1.9 | 1.9 |
Less: Accumulated amortization-patents | 1.8 | (1.8) |
Favorable Leasehold Interests [Member] | ||
Intangible assets | ||
Total intangible assets | 6.3 | 6.3 |
Less: Accumulated amortization-patents | $ 4.6 | $ (4.2) |
Advance Payments and Deferred67
Advance Payments and Deferred Revenue/Credits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Revenue Arrangement [Line Items] | ||||
Increase (Decrease) in Customer Advances | $ (209.6) | $ (144.4) | $ (113.3) | |
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | $ 557.3 | 557.3 | 1,000.2 | |
B737 [Member] | ||||
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | 12.6 | 12.6 | 18.6 | |
B787 [Member] | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Increase (Decrease) in Customer Advances | 236 | |||
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | 515.6 | 515.6 | 834.8 | |
A350 XWB [Member] | ||||
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | 2 | 2 | 116.7 | |
Airbus - All Other Platforms [Member] | ||||
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | 1.3 | 1.3 | 2.2 | |
Other [Member] | ||||
Advance payments and deferred revenue/credits summarized | ||||
Advance Payments And Deferred Revenue Credits | $ 25.8 | $ 25.8 | $ 27.9 |
Government Grants (Details)
Government Grants (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Government Grants [Abstract] | ||
amortization of deferred grant liability | $ (19) | $ (11.9) |
Deferred Grant Income Liability Net [Roll Forward] | ||
Deferred grant income liability, Beginning Balance | 77.8 | 94.2 |
Exchange rate | 2.1 | (4.5) |
Deferred grant income liability, Ending Balance | $ 60.9 | $ 77.8 |
Government Grants (Details Text
Government Grants (Details Textuals) | 12 Months Ended |
Dec. 31, 2017 | |
Government Grants Textuals [Abstract] | |
Deferred Grant Income Amortization Period | 10 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | $ 1,052.7 | $ 1,076.9 |
Long-term Debt, Fair Value | 1,067.5 | 1,085.1 |
Secured Debt Term A [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 460.7 | 485.2 |
Long-term Debt, Fair Value | 461.9 | 484.8 |
Malaysian Loan [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 0 | 1 |
Long-term Debt, Fair Value | 0 | 0.9 |
Senior Unsecured Notes Due 2022 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 294.8 | 293.8 |
Long-term Debt, Fair Value | 304.6 | 307 |
Senior Unsecured Notes Due 2026 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 297.2 | 296.9 |
Long-term Debt, Fair Value | $ 301 | $ 292.4 |
Derivative and Hedging Activi71
Derivative and Hedging Activities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Interest Rate Swaps | |
Notional Amount | $ 250 |
Variable Rate | 1.815% |
Derivative, Fair Value, Net | $ 0.9 |
Derivative, Gain (Loss) on Derivative, Net | $ 0.9 |
Derivative and Hedging Activi72
Derivative and Hedging Activities (Details Textual) $ in Millions | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 250 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Loans Payable to Bank, Current | $ 0 | $ 1 |
Loans Payable to Bank, Noncurrent | 0 | 0 |
Capital Lease Obligations, Current | 5.2 | 0.8 |
Capital Lease Obligations, Noncurrent | 33.6 | 9 |
Other Long-term Debt, Current | 1 | 0 |
Other Long-term Debt, Noncurrent | 58.5 | 0 |
Long-term Debt and Capital Lease Obligations, Current | 31.1 | 26.7 |
Long-term Debt and Capital Lease Obligations | 1,119.9 | 1,060 |
Secured Debt Term A [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt, Current | 24.9 | 24.9 |
Secured Long-term Debt, Noncurrent | 435.8 | 460.3 |
Senior Unsecured Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt, Current | 0 | 0 |
Secured Long-term Debt, Noncurrent | 294.8 | 293.8 |
Senior Unsecured Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt, Current | 0 | 0 |
Secured Long-term Debt, Noncurrent | $ 297.2 | $ 296.9 |
Debt (Details Textual)
Debt (Details Textual) $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jun. 06, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Treasury Stock, Shares, Acquired | shares | 7.5 | 14.2 | |
Borrowing capacity under the revolving credit facility | $ 650,000 | ||
Optional Revolver Commitment | $ 500,000 | ||
Amended and Restated Credit Agreement Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500,000 | ||
Credit Agreement Margin on LIBOR | 0.015 | ||
Quarterly principal repayment from September 2011 through May 2017 until entirely repaid | $ 6,250 | ||
Level 1 Commitment Fee | 0.125% | ||
Level 2 Commitment Fee | 0.175% | ||
Level 3 Commitment Fee | 0.225% | ||
Level 4 Commitment Fee | 0.275% | ||
Level 1 Letter Of Credit Fee | 1.125% | ||
Level 2 Letter Of Credit Fee | 1.25% | ||
Level 3 Letter Of Credit Fee | 1.50% | ||
Level 4 Letter Of Credit Fee | 1.75% | ||
Level 1 Margin On Libor Borrowing On Revolving Loan | 1.125% | ||
Level 2 Margin On Libor Borrowing On Revolving Loan | 1.25% | ||
Level 3 Margin On Libor Borrowing On Revolving Loan | 1.50% | ||
Level 4 Margin On Libor Borrowing Revolving Loan | 1.75% | ||
Level 1 Margin On Alternate Base Rate Borrowing On Revolving Loan | 0.125% | ||
Level 2 Margin On Alternate Base Rate Borrowing On Revolving Loan | 0.25% | ||
Level 3 Margin On Alternate Base Rate Borrowing On Revolving Loan | 0.50% | ||
Level 4 Margin On Alternate Base Rate Revolving Loan | 0.75% | ||
Margin On Base Rate Borrowing Term Loan | 0.50% | ||
Minimum Adjustment Margin on Libor | 1.125% | ||
Maximum Adjustment Margin on Libor | 2.00% | ||
Minimum Adjustment on Margin on Base rate | 0.125% | ||
Maximum Adjustment on Margin on Base Rate | 1.00% | ||
Outstanding Balance Term Loan | $ 462,500 | ||
Carrying Value Term Loan | $ 460,700 | ||
Level 5 Commitment Fee | 0.35% | ||
Level 5 Letter Of Credit Fee | 2.00% | ||
Level 5 Margin On Libor Borrowing Revolving Loan | 2.00% | ||
Level 5 Margin On Alternate Base Rate Revolving Loan | 1.00% | ||
Senior Unsecured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Secured Long-term Debt, Noncurrent | $ 294,800 | $ 293,800 | |
Senior Unsecured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Secured Long-term Debt, Noncurrent | $ 297,200 | $ 296,900 |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefits (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / hour | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
IAM Level of Contribution per hour until June 2010 | $ / hour | 1.75 | ||
Amounts recognized in balance sheet | |||
Noncurrent assets | $ 347.1 | $ 282.3 | |
Noncurrent liabilities | 40.8 | 43.9 | |
Domestic Plan [Member] | |||
Change in fair value of plan assets: | |||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | |
Other Benefits [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 51.5 | 73.3 | |
Service cost | 1.2 | 1.8 | |
Interest cost | 1.2 | 2.1 | |
Actuarial (gains) losses | (1) | 16.7 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 3.1 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | (7.2) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 8.8 | 5.7 | |
Projected benefit obligation at the end of the period | 47.2 | 51.5 | $ 73.3 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 1.1 | $ 0.8 | |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.03% | 3.21% | |
Medical Assumptions: | |||
Trend assumed for the year | 6.59% | 6.93% | |
Ultimate trend rate | 4.50% | 4.50% | |
Year that ultimate trend rate is reached | 2,038 | 2,038 | |
Change in fair value of plan assets: | |||
Beginning balance | $ 0 | $ 0 | |
Company contributions | 7.7 | 4.9 | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1.1 | 0.8 | |
Defined Benefit Plan, Plan Assets, Administration Expense | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 8.8 | 5.7 | |
Ending balance | 0 | 0 | 0 |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | (47.2) | (51.5) | |
Net amounts recognized | (47.2) | (51.5) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | 7.7 | 8.9 | |
Noncurrent liabilities | (39.5) | (42.6) | |
Net amounts recognized | (47.2) | (51.5) | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | 28.3 | 32.5 | |
Accumulated other comprehensive income (AOCI) | 28.3 | 32.5 | |
Cumulative employer contributions in excess of net periodic benefit cost | (75.5) | (84) | |
Net amount recognized in the balance sheet | (47.2) | (51.5) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation/APBO | 47.2 | 51.5 | |
Accumulated benefit obligation | 0 | 0 | |
Pension Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 174.5 | 114.1 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 1,036 | 1,011.1 | |
Service cost | 0 | 0 | |
Interest cost | 35.6 | 42.8 | |
Actuarial (gains) losses | (80) | (12.9) | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 23.6 | |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 67.2 | 54.4 | |
Projected benefit obligation at the end of the period | 1,084.4 | 1,036 | 1,011.1 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 0 | $ 0 | |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.59% | 4.15% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 1,302.9 | $ 1,243.2 | |
Company contributions | 0.1 | 0 | |
Defined Benefit Plan, Plan Assets, Administration Expense | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 67.2 | 54.4 | |
Ending balance | 1,410.3 | 1,302.9 | 1,243.2 |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | 325.9 | 266.8 | |
Net amounts recognized | 325.9 | 266.8 | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 327.2 | 268.1 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | (1.3) | (1.3) | |
Net amounts recognized | 325.9 | 266.8 | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | (89.6) | (114.4) | |
Accumulated other comprehensive income (AOCI) | (89.6) | (114.4) | |
Cumulative employer contributions in excess of net periodic benefit cost | 415.5 | 381.2 | |
Net amount recognized in the balance sheet | 325.9 | 266.8 | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation/APBO | 1.3 | 1.2 | |
Accumulated benefit obligation | 1.3 | 1.2 | |
Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 8.7 | 25.3 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (12.5) | (5.5) | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 82.1 | 82.8 | |
Service cost | 1.3 | 1 | |
Interest cost | 2 | 2.9 | |
Actuarial (gains) losses | 1.1 | (17.4) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 0.8 | 0.8 | |
Expense paid | (1.3) | (1) | |
Exchange rate changes | 7.2 | (14.7) | |
Projected benefit obligation at the end of the period | $ 76.9 | $ 82.1 | 82.8 |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 2.60% | 2.70% | |
Salary increases | 3.35% | 3.20% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 96.2 | $ 96.4 | |
Expense paid | (1.3) | (1) | |
Defined Benefit Plan, Plan Assets, Administration Expense | (1.3) | (1) | |
Exchange rate changes | 8.7 | (17.2) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (14.7) | (6.5) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 0.8 | 0.8 | |
Ending balance | 96.8 | 96.2 | 96.4 |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | 19.9 | 14.2 | |
Net amounts recognized | 19.9 | 14.2 | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 19.9 | 14.2 | |
Net amounts recognized | 19.9 | 14.2 | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | 4.3 | (0.2) | |
Accumulated other comprehensive income (AOCI) | 4.3 | (0.2) | |
Prepaid pension cost | 15.6 | 14.4 | |
Net amount recognized in the balance sheet | 19.9 | 14.2 | |
Annual Expense [Member] | Other Benefits [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Amortization of Gain (Loss) | (2.2) | 0 | 0 |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 3.5 | 16.9 | 1.7 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 1.2 | 1.8 | 2.2 |
Interest cost | 1.2 | 2.1 | 2.2 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ 0 | $ (3.1) | $ 0 |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.21% | 3.43% | 3.14% |
Medical Assumptions: | |||
Trend assumed for the year | 6.93% | 7.27% | 7.62% |
Ultimate trend rate | 4.50% | 4.50% | 4.50% |
Year that ultimate trend rate is reached | 2,038 | 2,038 | 2,030 |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | $ 4.2 | $ (23) | $ (6.1) |
Accumulated other comprehensive income (AOCI) | 4.2 | (23) | (6.1) |
Annual Expense [Member] | Pension Plan [Member] | Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 5.7 | 3.7 |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (58.9) | 34.7 | 45.5 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 35.7 | 42.7 | 44.4 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | $ 0 | $ (23.6) | $ 0 |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 4.15% | 4.38% | 3.99% |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | $ (24.8) | $ (31.8) | $ (15.5) |
Accumulated other comprehensive income (AOCI) | (24.8) | (31.8) | (15.5) |
Annual Expense [Member] | Pension Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (0.3) | 0 | 0 |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (6.6) | 4.3 | (1.1) |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 1.3 | 1 | 1.2 |
Interest cost | $ 2 | $ 2.9 | $ 3.3 |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 2.70% | 4.00% | 3.80% |
Salary increases | 3.20% | 3.10% | 3.05% |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | $ (6.7) | $ (4.6) | $ 1.5 |
Accumulated other comprehensive income (AOCI) | $ (6.7) | $ (4.6) | $ 1.5 |
Pension and Other Post Retire76
Pension and Other Post Retirement Benefits (Details 1) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)$ / hour | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Retirement Benefits [Abstract] | |||
Serp And Post Retirement Medical Plan Contributions Maximum | $ | $ 7.8 | ||
Expected Contributions Uk Plan | $ | $ 1.4 | ||
Multiemployer Plans [Line Items] | |||
IAM Level of Contribution per hour until June 2010 | 1.75 | ||
Level of Contribution per hour Increase | 0.05 | ||
EIN/Pensions plan number | 51-60321295 | ||
Multiemployer Plans, Certified Zone Status | Green | Green | |
FIP RP Status | No | ||
Contributions | $ | $ 30.3 | $ 26.9 | $ 29.8 |
Multiemployer Plans Surcharge | No | ||
Year Company Contributions Exceed 5 Percent | 2015, 2016, 2017 | ||
IAM [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans Collective Bargaining Arrangement Expiration Date | Jun. 27, 2020 | ||
UAW [Member] | |||
Multiemployer Plans [Line Items] | |||
Multiemployer Plans Collective Bargaining Arrangement Expiration Date | Dec. 7, 2025 | ||
2015 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.60 | ||
2016 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.60 | ||
2018 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.65 | ||
2019 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.70 | ||
2020 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.75 | ||
Other Benefits [Member] | |||
Multiemployer Plans [Line Items] | |||
Description of Multiemployer Plan | Other Post-Retirement Benefit Plans The Company also has post-retirement health care coverage for eligible U.S. retirees and qualifying dependents prior to age 65 . Eligibility for employer-provided benefits is limited to those employees who were employed at the date of the Boeing Acquisition and retire on or after attainment of age 62 and 10 years of service. Employees who do not satisfy these eligibility requirements can retire with post-retirement medical benefits at age 55 and 10 years of service, but they must pay the full cost of medical benefits provided. |
Pension and Other Post Retire77
Pension and Other Post Retirement Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 3.2 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 0 | ||
Domestic Plan [Member] | Other Benefits [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | 1.2 | $ 1.8 | |
Interest cost | 1.2 | 2.1 | |
Special Termination Benefits | 0 | (3.1) | |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | $ 28.3 | $ 32.5 | |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.03% | 3.21% | |
Medical Assumptions: | |||
Trend assumed for the year | 6.59% | 6.93% | |
Ultimate trend rate | 4.50% | 4.50% | |
Year that ultimate trend rate is reached | 2,038 | 2,038 | |
Domestic Plan [Member] | Other Benefits [Member] | Annual Expense [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 1.2 | $ 1.8 | $ 2.2 |
Interest cost | 1.2 | 2.1 | 2.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net (gain) | (2.2) | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0.9 | 0.9 | 0 |
Special Termination Benefits | 0 | 3.1 | 0 |
Net periodic benefit cost (income) | (0.7) | 6.1 | 4.4 |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | 4.2 | (23) | (6.1) |
Total recognized in net periodic benefit cost and OCI | $ (3.5) | $ (16.9) | $ (1.7) |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.21% | 3.43% | 3.14% |
Medical Assumptions: | |||
Trend assumed for the year | 6.93% | 7.27% | 7.62% |
Ultimate trend rate | 4.50% | 4.50% | 4.50% |
Year that ultimate trend rate is reached | 2,038 | 2,038 | 2,030 |
Domestic Plan [Member] | Pension Plan [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 0 | $ 0 | |
Interest cost | 35.6 | 42.8 | |
Special Termination Benefits | 0 | (23.6) | |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | $ (89.6) | $ (114.4) | |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 3.59% | 4.15% | |
Domestic Plan [Member] | Pension Plan [Member] | Annual Expense [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 35.7 | 42.7 | 44.4 |
Expected return on plan assets | (69.8) | (74.9) | (78.1) |
Amortization of net (gain) | 0 | 5.7 | 3.7 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 |
Special Termination Benefits | 0 | 23.6 | 0 |
Net periodic benefit cost (income) | (34.1) | (2.9) | (30) |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | (24.8) | (31.8) | (15.5) |
Total recognized in net periodic benefit cost and OCI | $ 58.9 | $ (34.7) | $ (45.5) |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 4.15% | 4.38% | 3.99% |
Expected return on plan assets | 5.50% | 6.00% | 6.00% |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | $ 0 | ||
Components of net periodic benefit cost (income): | |||
Service cost | 1.3 | $ 1 | |
Interest cost | 2 | 2.9 | |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | $ 4.3 | $ (0.2) | |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 2.60% | 2.70% | |
Salary increases | 3.35% | 3.20% | |
Foreign Plan [Member] | Pension Plan [Member] | Annual Expense [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 1.3 | $ 1 | $ 1.2 |
Interest cost | 2 | 2.9 | 3.3 |
Expected return on plan assets | (2.9) | (3.6) | (4.9) |
Net periodic benefit cost (income) | 0.1 | 0.3 | (0.4) |
Other changes recognized in OCI: | |||
Total (income) loss recognized in OCI | (6.7) | (4.6) | 1.5 |
Total recognized in net periodic benefit cost and OCI | $ 6.6 | $ (4.3) | $ 1.1 |
Total recognized in net periodic benefit cost and OCI | |||
Discount rate | 2.70% | 4.00% | 3.80% |
Expected return on plan assets | 3.20% | 4.30% | 4.80% |
Salary increases | 3.20% | 3.10% | 3.05% |
Pension and Other Post Retire78
Pension and Other Post Retirement Plans (Details 3) | Dec. 31, 2017 | Dec. 31, 2016 |
Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Domestic Plan [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 70.00% | 65.00% |
Domestic Plan [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 2.00% |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Foreign Plan [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% | |
Defined Benefit Plan, Actual Plan Asset Allocations | 58.00% | 71.00% |
Foreign Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35.00% | |
Defined Benefit Plan, Actual Plan Asset Allocations | 36.00% | 24.00% |
Foreign Plan [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 5.00% | |
Defined Benefit Plan, Actual Plan Asset Allocations | 6.00% | 5.00% |
United States [Member] | Domestic Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 24.00% | 29.00% |
international [Member] | Domestic Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 4.00% |
Maximum [Member] | Domestic Plan [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 80.00% | |
Maximum [Member] | Domestic Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | |
Maximum [Member] | Domestic Plan [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 7.00% | |
Minimum [Member] | Domestic Plan [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | |
Minimum [Member] | Domestic Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20.00% | |
Minimum [Member] | Domestic Plan [Member] | Real Estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 0.00% |
Pension and Other Post Retire79
Pension and Other Post Retirement Plans (Details 4) $ in Millions | Dec. 31, 2017USD ($) |
Pension Plan [Member] | UNITED KINGDOM | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 0.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0.9 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0.9 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0.9 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 4.8 |
Pension Plan [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 34.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 38.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 41.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 45.2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 49 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 287 |
Other Benefits [Member] | United States [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 7.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 6.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 5.4 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 5.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 4.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 19.9 |
Pension and Other Post Retire80
Pension and Other Post Retirement Plans (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | $ 0.5 | $ (0.9) |
Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0.3 | 0.2 |
Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 96.5 | 96 |
Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,410.3 | 1,302.9 |
Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 1,399.1 | |
Ending Fair Value | 1,507.1 | 1,399.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0.3 | 0.2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 0.2 | |
Ending Fair Value | 0.3 | 0.2 |
Significant Other Observable Inputs (Level 2) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 90.6 | 91.2 |
Significant Other Observable Inputs (Level 2) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1,410.3 | 1,302.9 |
Significant Other Observable Inputs (Level 2) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 1,394.1 | |
Ending Fair Value | 1,500.9 | 1,394.1 |
Significant Unobservable Inputs (Level 3) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5.9 | 4.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 4.8 | 5.6 |
Purchases | 0 | 0 |
Gain (loss) | 0.6 | 0.1 |
Ending Fair Value | 5.9 | 4.8 |
Significant Unobservable Inputs (Level 3) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 4.8 | 5.6 |
Purchases | 0 | 0 |
Gain (loss) | 0.6 | 0.1 |
Ending Fair Value | $ 5.9 | $ 4.8 |
Pension and Other Post Retire81
Pension and Other Post Retirement Plans (Details 6) - USD ($) $ in Millions | Apr. 01, 2006 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Contribution Plan [Abstract] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 75.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8.00% | 8.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | |||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | ||||
Post Retirement one percentage change increase | $ 2.2 | |||
Service and interest on percentage change increase | 0.1 | |||
Post Retirement one percentage change decrease | 2.1 | |||
Service and interest on percentage change decrease | 0.1 | |||
U.S. [Member] | ||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | ||||
Defined Contribution Plan, Cost | 33.6 | $ 33.8 | $ 34.1 | |
U.K. [Member] | ||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | ||||
Defined Contribution Plan, Cost | $ 5.4 | $ 3.8 | $ 7 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)vote / share$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | |||
Total Shares Authorized | 210,000,000 | 210,000,000 | |
Common Stock, Shares Authorized | 210,000,000 | 210,000,000 | 360,000,000 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred Stock, Par Value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Phantom Stock Value Per Share | $ / shares | $ 3.33 | $ 3.33 | |
Phantom Stock Units | 860,244 | 860,244 | |
SERP units | 47,487 | 47,487 | 64,170 |
Treasury Stock, Shares, Acquired | 7,500,000 | 14,200,000 | |
Stock Repurchased During Period, Value | $ | $ (649.6) | $ (502.1) | $ (649.6) |
Class A [Member] | |||
Class Of Stock [Line Items] | |||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 |
Common Stock, Par Value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Vote Per Share | vote / share | 1 | ||
Class B [Member] | |||
Class Of Stock [Line Items] | |||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 |
Common Stock, Par Value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Company recognized total stock compensation expense, net of forfeitures | $ 22.1 | $ 42.5 | $ 26 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, beginning balance | 1,600,000 | 1,900,000 | ||
Nonvested, ending balance | 1,500,000 | 1,600,000 | 1,900,000 | |
Director Stock Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1 | $ 1.2 | $ 0.9 | |
Intrinsic value of the unvested | $ 2,100,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 5 months | |||
Number of shares granted | 24,000 | 26,000 | 21,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 0.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, beginning balance | 26,000 | 21,000 | 30,000 | |
Vested during period | (26,000) | (21,000) | (27,000) | |
Forfeited during period | 0 | 0 | (3,000) | |
Nonvested, ending balance | 24,000 | 26,000 | 21,000 | |
Restricted Share Activity [Roll Forward] | ||||
Nonvested, beginning balance, value | $ 1.2 | $ 1.1 | $ 1.1 | |
Granted during period, value | 1.2 | 1.2 | 1.1 | |
Vested during period, value | (1.2) | (1.1) | (1) | |
Forfeited during period, value | 0 | 0 | (0.1) | |
Nonvested, ending balance, value | $ 1.2 | $ 1.1 | $ 1.1 | $ 1.2 |
Market Based LTIA [Member] | Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 292,160 | 206,132 | 96,423 | |
Grant Date Of Fair Value Of Shares Granted | $ 15 | $ 10.9 | $ 6.2 | |
Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of the unvested | $ 111,400,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 26.5 | |||
Long Term Incentive Plan [Member] | Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 21.1 | 41.3 | 24.9 | |
Grant Date Value Of Shares Vested | $ 14.9 | $ 21.6 | ||
Shares Vested | 503,543 | 878,706 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, beginning balance | 1,557,000 | 1,837,000 | 2,255,000 | |
Granted during period | 644,000 | 830,000 | 632,000 | |
Vested during period | (655,000) | (830,000) | (879,000) | |
Forfeited during period | (93,000) | (280,000) | (171,000) | |
Nonvested, ending balance | 1,453,000 | 1,557,000 | 1,837,000 | |
Restricted Share Activity [Roll Forward] | ||||
Nonvested, beginning balance, value | $ 67.3 | $ 64.4 | $ 58.3 | |
Granted during period, value | 35.5 | 38.3 | 32.8 | |
Vested during period, value | (25) | (24.5) | (21.6) | |
Forfeited during period, value | (4.4) | (10.9) | (5.1) | |
Nonvested, ending balance, value | $ 67.3 | $ 64.4 | $ 58.3 | $ 73.4 |
Service Based LTIA [Member] | Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 352,043 | 623,620 | 535,648 | |
Grant Date Of Fair Value Of Shares Granted | $ 20.4 | $ 27.4 | $ 26.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation Allowances and Reserves, Balance | $ 15 | $ 13.5 | $ 15.1 | $ 257.3 |
Summary Pretax Income [Abstract] | ||||
U.S. | 426.6 | 593.3 | 739.4 | |
International | 108 | 67.2 | 68.7 | |
Income before income taxes and equity in net income of affiliates | 534.6 | 660.5 | 808.1 | |
Valuation Allowances and Reserves, Domestic Deferred Tax Asset | 0 | 0 | (109.3) | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1.6 | (0.9) | (57.4) | |
Valuation Allowances and Reserves, Depreciation and Amortization | 0.1 | (0.1) | 119.6 | |
ValuationAllowancesandReservesLongTermContracts | 0 | 0 | (194.6) | |
Valuation Allowances and Reserves, Other | (0.2) | (0.6) | (0.5) | |
Current | ||||
Federal | 107.3 | 158 | 175.5 | |
State | 0.7 | 3.6 | 3.5 | |
Foreign | 20 | 29.2 | 5.5 | |
Total current | 128 | 190.8 | 184.5 | |
Deferred | ||||
Federal | 53.6 | 20 | (119.1) | |
State | (0.2) | (1) | (48.9) | |
Foreign | (1.4) | (17.7) | 4.1 | |
Total Deferred | 52 | 1.3 | (163.9) | |
Total provision for income taxes | 180 | 192.1 | 20.6 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Tax at U.S. Federal statutory rate | 187.1 | 231.2 | 283.3 | |
State income taxes, net of Federal benefit | 8.8 | 11.6 | 15 | |
State income tax credits, net of Federal benefit | (9.7) | (9.4) | (4.1) | |
Foreign rate differences | (20.6) | (13.5) | (13.5) | |
Research and Experimentation | (2.6) | (3.6) | (3.3) | |
Domestic Production Activities Deduction | (7.1) | (16.4) | (17.8) | |
Interest on assessments | (0.1) | 0.6 | (1) | |
Valuation Allowance - U.S. Deferred Tax Asset | 0 | 0 | (241.9) | |
Other | 0.3 | (3.8) | 3.9 | |
Total provision for income taxes | $ 180 | $ 192.1 | $ 20.6 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Tax at U.S. Federal statutory rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of Federal benefit | 1.60% | 1.80% | 1.90% | |
State income tax credits, net of Federal benefit | (1.80%) | (1.40%) | (0.50%) | |
Foreign rate differences | (3.80%) | (2.00%) | (1.70%) | |
Research and Experimentation | 0.50% | 0.60% | 0.40% | |
Domestic Production Activities Deduction | 1.30% | 2.50% | 2.20% | |
Interest on assessments | 0.00% | 0.10% | (0.10%) | |
Valuation Allowance - U.S. Deferred Tax Asset | 0.00% | 0.00% | (29.90%) | |
Other | 0.00% | (0.60%) | 0.50% | |
Total provision for income taxes | 33.70% | 29.10% | 2.60% | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 44.9 | $ 0 | $ 0 | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 8.40% | 0.00% | 0.00% | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (16.2) | $ 0 | $ 0 | |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | (3.00%) | 0.00% | 0.00% | |
Effective Income Tax Rate Reconciliation, Excess Tax Benefit | $ (4.8) | $ (4.6) | ||
EffectiveTaxRateRecon, ExcessTaxBenefit, Percentage | (0.90%) | (0.70%) | 0.00% | |
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ||||
Long-term contracts | $ 69 | $ 127.7 | ||
Post-retirement benefits other than pensions | 11.2 | 19.1 | ||
Pension and other employee benefit plans | (65.1) | (77.5) | ||
Employee compensation accruals | 33.8 | 68 | ||
Depreciation and amortization | (104.4) | (154.4) | ||
Inventory | 1.9 | 1.7 | ||
State income tax credits | 89.8 | 71.7 | ||
Accruals and reserves | 58.3 | 91.7 | ||
Deferred production | (1.7) | (3.7) | ||
Net operating loss carryforward | 0.3 | 3.7 | ||
Other | (5.9) | (5.7) | ||
Net deferred tax asset | 87.2 | 142.3 | ||
Valuation allowance | (15) | (13.6) | ||
Net deferred tax asset | 72.2 | 128.7 | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Non-current deferred tax assets | 72.5 | 128.8 | ||
Non-current deferred tax liabilities | (0.3) | (0.1) | ||
Net non-current deferred tax assets | 72.2 | 128.7 | ||
Total deferred tax asset | 72.2 | 128.7 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning Balance | 6.3 | 6.2 | $ 5.9 | |
Gross increases related to current period tax positions | 0 | 0 | 0 | |
Gross increases related to prior period tax positions | 0.4 | 0.1 | 0.3 | |
Gross decreases related to prior period tax positions | 0 | 0 | 0 | |
Statute of limitations' expiration | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Ending Balance | 6.7 | $ 6.3 | $ 6.2 | |
State and Local Jurisdiction [Member] | ||||
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ||||
Valuation allowance | (15) | |||
North Carolina [Member] | ||||
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ||||
Valuation allowance | $ (14.2) |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 5,300,000 | ||
Effective Income Tax Rate Reconciliation, Percent | 33.70% | 29.10% | 2.60% |
Income Tax Holiday, Description | The Company continues to operate under a tax holiday in Malaysia effective through September 2024. In 2014, the Company received formal approval of the tax holiday from the Malaysian tax authorities, with conditional renewals once every five years beginning in September 2014. The Company expects to meet the requirements for the conditional renewals. The Company’s 2017 income tax expense reflects $7.2 of Malaysia tax holiday benefit for the year ended December 31, 2017. | ||
Operating Loss Carryforwards [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 28,700,000 | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 44,900,000 | $ 0 | $ 0 |
Deferred Tax Assets, Net | 72,200,000 | 128,700,000 | |
Deferred Tax Assets, Gross | 87,200,000 | 142,300,000 | |
Deferred Tax Assets, Net of Valuation Allowance | 72,200,000 | 128,700,000 | |
Deferred Tax Assets, Valuation Allowance | 15,000,000 | 13,600,000 | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1,600,000 | (900,000) | (57,400,000) |
Income Taxes Receivable | 27,100,000 | 7,400,000 | |
Accrued Income Taxes, Noncurrent | 38,600,000 | ||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | (16,200,000) | $ 0 | $ 0 |
North Carolina [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 17,000,000 | ||
Deferred Tax Assets, Valuation Allowance | $ 14,200,000 | ||
Compliance Assurance Process [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Description | The Internal Revenue Service's examination of the Company's 2016 U.S. Federal income tax return is substantially complete. The Company will continue to participate in the Compliance Assurance Process ("CAP") program for its 2017 and 2018 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 state and foreign jurisdictions and the statute of limitations has lapsed on its 2014 U.K. tax return CAP program's objective is to resolve issues in a timely, contemporaneous manner and eliminate the need for a lengthy post-filing examination. | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 15,000,000 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Holiday, Aggregate Dollar Amount | 7,200,000 | ||
Kansas High Performance Incentive Program (HPIP) Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 62,400,000 | ||
Tax Credit Carryforward, Description | The HPIP Credit provides a 10% investment tax credit for qualified business facilities located in Kansas | ||
Kansas Research & Development Credit (R&D) [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 10,000,000 | ||
Kansas Business and Jobs Development Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 3,300,000 | ||
Kansas State Income Tax Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 75,700,000 | ||
North Carolina Investing in Business Property Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 6,900,000 | ||
North Carolina Investment in Real Property Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 4,000,000 | ||
North Carolina Creating Jobs Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 3,300,000 | ||
Tax Credit Carryforward, Description | The Investing in Business Property Credit provides a 7% investment tax credit for property located in a North Carolina development area and the Investment in Real Property Credit provides a 30% investment tax credit for real property located in a North Carolina development area. The Creating Jobs Credit provides a tax credit for increased employment in North Carolina. These North Carolina state income tax credits can be carried forward 20 years. . | ||
North Carolina State Income Tax Credit [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 14,200,000 | ||
2028 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 8,800,000 | ||
2029 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 14,300,000 | ||
2030 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 10,800,000 | ||
2031 [Domain] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 6,400,000 | ||
2032 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 10,800,000 | ||
2033 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 11,300,000 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 24, 2018 | Jul. 25, 2017 | Nov. 01, 2016 | |
Class of Stock [Line Items] | ||||||||||||||
Employee Stock Purchase Plan, Number of Allocated Shares | 1,000,000 | 1,000,000 | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Common Stock, Shares Authorized | 210,000,000 | 360,000,000 | 210,000,000 | 360,000,000 | ||||||||||
Common stock, shares eliminated | 150,000,000 | 150,000,000 | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0.40 | $ 0.10 | $ 0 | ||||||||||
Treasury Stock, Shares, Acquired | 7,500,000 | 14,200,000 | ||||||||||||
Issued But Unvested Shares (in shares) | 1,500,000 | 1,600,000 | 1,500,000 | 1,600,000 | 1,900,000 | |||||||||
Noncontrolling interest | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||||
Stock Repurchased During Period, Value | $ 649,600,000 | 502,100,000 | 649,600,000 | |||||||||||
Payments of Dividends | (47,100,000) | 0 | $ 0 | |||||||||||
Basic EPS | ||||||||||||||
(Loss) income available to common shareholders | $ 354,700,000 | $ 469,400,000 | $ 788,000,000 | |||||||||||
(Loss) income available to common shareholders (in shares) | 116,800,000 | 126,100,000 | 138,400,000 | |||||||||||
(Loss) earnings per share, basic (in dollars per share) | $ 1.08 | $ 1.27 | $ (0.48) | $ 1.19 | $ 0.90 | $ 1.16 | $ 0.35 | $ 1.30 | $ 3.04 | $ 3.72 | $ 5.69 | |||
Income allocated to participating securities | $ 200,000 | $ 300,000 | $ 700,000 | |||||||||||
Income allocated to participating securities, shares | 100,000 | 100,000 | 100,000 | |||||||||||
Net income | $ 122,800,000 | $ 147,200,000 | $ (56,800,000) | $ 141,700,000 | $ 108,200,000 | $ 145,100,000 | $ 44,800,000 | $ 171,600,000 | $ 354,900,000 | $ 469,700,000 | $ 788,700,000 | |||
Diluted potential common shares (in shares) | 1,000,000 | 800,000 | 900,000 | |||||||||||
Diluted EPS | ||||||||||||||
Net (loss) income | $ 122,800,000 | $ 147,200,000 | $ (56,800,000) | $ 141,700,000 | $ 108,200,000 | $ 145,100,000 | $ 44,800,000 | $ 171,600,000 | $ 354,900,000 | $ 469,700,000 | $ 788,700,000 | |||
Shares | 117,900,000 | 127,000,000 | 139,400,000 | |||||||||||
(Loss) earnings per share, diluted (in dollars per share) | $ 1.07 | $ 1.26 | $ (0.48) | $ 1.17 | $ 0.89 | $ 1.16 | $ 0.35 | $ 1.29 | $ 3.01 | $ 3.70 | $ 5.66 | |||
2015 Share Repurchase Program [Member] | ||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Stock Repurchased During Period, Value | $ 50,000,000 | |||||||||||||
2016 Share Repurchase Program [Member] | ||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 600,000,000 | $ 600,000,000 | ||||||||||||
Stock Repurchased During Period, Value | $ 600,000,000 | |||||||||||||
2017 Share Repurchase Program [Member] [Member] | ||||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 500,000,000 | $ 400,000,000 | $ 600,000,000 | |||||||||
Common Class A [Member] | ||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||
Class B [Member] | ||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||
Preferred Stock [Member] | ||||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Commitments, Contingencies an87
Commitments, Contingencies and Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contingencies [Line Items] | |||
Valuation allowance | $ (15) | $ (13.6) | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1.6 | (0.9) | $ (57.4) |
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 | ||
Service warranty roll forward | |||
Charges to costs and expenses | 5.8 | 16.7 | 43.8 |
Product Warranty Accrual, Payments | (4) | (9.5) | (4.8) |
Exchange rate | 0.9 | (2.2) | (0.2) |
Product Warranty And Extraordinary Rework, Ending Balance | 166.4 | 163.7 | $ 158.7 |
Commitments Contingencies And Guarantees Textuals [Abstract] | |||
Capital Commitments | 243 | 180.9 | |
Outstanding Amount Of Guarantees | 23.2 | 20.7 | |
Restricted Cash and Investments, Noncurrent | 20 | 19.9 | |
Product Liability Accrual, Component Amount | 101 | 99 | |
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | 223 | 209 | |
Industrial Revenue Bond [Member] | |||
Commitments Contingencies And Guarantees Textuals [Abstract] | |||
Tax Exempt Bonds | $ 288.5 | $ 399.7 | |
international [Member] | |||
Contingencies [Line Items] | |||
percentage of represented workers | 67.00% |
Commitments Lease Table (Detail
Commitments Lease Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,014 | $ 8.3 | ||
2,015 | 7.4 | ||
2,016 | 6 | ||
2,017 | 4.8 | ||
2,018 | 3.9 | ||
2019 and thereafter | 15.2 | ||
Contractual Obligation, Fiscal Year Maturity Schedule [Abstract] | |||
2,014 | 15 | ||
2,015 | 14.2 | ||
2,016 | 12.7 | ||
2,017 | 11.7 | ||
2,018 | 10.4 | ||
2019 and thereafter | 24.2 | ||
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating Leases, Rent Expense, Minimum Rentals | 14.1 | $ 15.4 | $ 17.8 |
Operating Leases, Rent Expense, Net | 14.1 | $ 15.4 | $ 17.8 |
Present Value Leases [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,014 | 5.2 | ||
2,015 | 5.5 | ||
2,016 | 5.7 | ||
2,017 | 5.8 | ||
2,018 | 5.9 | ||
2019 and thereafter | 8.5 | ||
Lease Interest [Member] | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,014 | 1.5 | ||
2,015 | 1.3 | ||
2,016 | 1 | ||
2,017 | 1.1 | ||
2,018 | 0.6 | ||
2019 and thereafter | $ 0.5 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |||
KDFA bond | $ 3.2 | $ 3.4 | $ 3.9 |
Rental and miscellaneous income (expense) | 1.2 | 0.3 | (2) |
Interest Income, Other | 6.4 | 3.6 | 2.1 |
Gain (Loss) on Sale of Accounts Receivable | (3.3) | 0 | 0 |
Foreign currency losses | (0.3) | (14.6) | (6.2) |
Total | $ 7.2 | $ (7.3) | $ (2.2) |
Significant Concentrations of R
Significant Concentrations of Risk (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Boeing [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 79.00% | 81.00% | 84.00% |
Boeing [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 44.00% | 56.00% | |
Airbus [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 15.00% | 11.00% |
Airbus [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 38.00% | 28.00% | |
Domestic Destination [Member] | |||
Concentration Risk [Line Items] | |||
Number of employees | 13,700 | ||
percentage of represented workers | 87.00% | ||
international [Member] | |||
Concentration Risk [Line Items] | |||
Number of employees | 900 | ||
percentage of represented workers | 67.00% |
Supplemental Balance Sheet In91
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Expenses other [Line Items] | ||
Other Accrued Liabilities, Current | $ 71.4 | $ 35.4 |
Accrued Liabilities, Current [Abstract] | ||
Accrued wages and bonuses | 40.8 | 32.9 |
Accrued fringe benefits | 116.3 | 117.5 |
Accrued interest | 5.8 | 5.3 |
Workers' compensation | 8.1 | 6.7 |
Property and sales tax | 24.7 | 15.5 |
Warranty/extraordinary rework reserve — current | 2.2 | 2.9 |
Other | 71.4 | 35.4 |
Total | 269.3 | 216.2 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred tax liability — non-current | 0.3 | 0.1 |
Warranty/extraordinary rework reserve — non-current | 164.2 | 160.8 |
Customer cost recovery | 22.9 | 40.7 |
Other | 65.2 | 74.5 |
Total | $ 252.6 | $ 276.1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 28, 2017USD ($) | Jun. 29, 2017USD ($) | Mar. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 29, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Percentage Of Net Revenue Derived From Two Largest Customers | 95.00% | ||||||||||
Number Of Largest Customers | customer | 2 | ||||||||||
Segment Revenues | |||||||||||
Revenues | $ 1,714.6 | $ 1,748.2 | $ 1,826.1 | $ 1,694.1 | $ 1,570 | $ 1,711.4 | $ 1,829.9 | $ 1,681.6 | $ 6,983 | $ 6,792.9 | $ 6,643.9 |
Segment Operating Income | |||||||||||
Business Segment Operating Income | 837.2 | 1,019.7 | 1,165.3 | ||||||||
Corporate SG&A | (200.3) | (228.3) | (220.8) | ||||||||
Unallocated impact of severe weather event | (19.9) | (12.1) | 0 | ||||||||
Research and development | (31.2) | (23.8) | (27.8) | ||||||||
Unallocated cost of sales | (16.7) | (30.4) | (53.7) | ||||||||
Operating income | $ 226.9 | $ 211.4 | $ (82.8) | $ 213.6 | $ 160.9 | $ 214.4 | $ 83.3 | $ 266.5 | 569.1 | 725.1 | 863 |
Textuals [Abstract] | |||||||||||
Incentive Compensation Included In Unallocated Cost Of Sale | 12.7 | 23.6 | 0.8 | ||||||||
Inventory Write-down | 7.9 | ||||||||||
Change In Estimate To Increase Warranty And Extraordinary Rework Reserve Included In Unallocated Cost Of Sale | 1.8 | 13.8 | 40.7 | ||||||||
Early Retirement Incentive | 6.4 | ||||||||||
Fuselage Systems [Member] | |||||||||||
Segment Revenues | |||||||||||
Revenues | 3,730.8 | 3,498.8 | 3,447 | ||||||||
Segment Operating Income | |||||||||||
Business Segment Operating Income | 347.7 | 468.6 | 607.3 | ||||||||
Propulsion Systems [Member] | |||||||||||
Segment Revenues | |||||||||||
Revenues | 1,666.2 | 1,777.3 | 1,750.7 | ||||||||
Segment Operating Income | |||||||||||
Business Segment Operating Income | 275.1 | 325.9 | 378.2 | ||||||||
Wing Systems [Member] | |||||||||||
Segment Revenues | |||||||||||
Revenues | 1,578.8 | 1,508.7 | 1,437.7 | ||||||||
Segment Operating Income | |||||||||||
Business Segment Operating Income | 212.4 | 223.6 | 178.5 | ||||||||
Other Systems [Member] | |||||||||||
Segment Revenues | |||||||||||
Revenues | 7.2 | 8.1 | 8.5 | ||||||||
Segment Operating Income | |||||||||||
Business Segment Operating Income | $ 2 | $ 1.6 | $ 1.3 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 1,714.6 | $ 1,748.2 | $ 1,826.1 | $ 1,694.1 | $ 1,570 | $ 1,711.4 | $ 1,829.9 | $ 1,681.6 | $ 6,983 | $ 6,792.9 | $ 6,643.9 |
Total Percentage Revenues | 100.00% | 100.00% | 100.00% | ||||||||
Total Percentage Long Lived Assets | 100.00% | 100.00% | 100.00% | ||||||||
Total Long-Lived Assets | 2,105.3 | 1,991.6 | $ 2,105.3 | $ 1,991.6 | $ 1,950.7 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenues | $ 5,722.9 | $ 5,650.1 | $ 5,709 | ||||||||
Percent of Total Net Revenues, United States | 81.95475% | 83.17655% | 85.92845% | ||||||||
Long-Lived Assets | 1,939 | 1,828.2 | $ 1,939 | $ 1,828.2 | $ 1,755.6 | ||||||
United States | 92.10089% | 92.00% | 90.00% | ||||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenues | $ 740.9 | $ 690.7 | $ 570.1 | ||||||||
Percent of Total Net Revenues, International | 10.61005% | 10.16797% | 8.5808% | ||||||||
Long-Lived Assets | 82.5 | 80 | $ 82.5 | $ 80 | $ 95 | ||||||
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 4.00% | 4.00% | 5.00% | ||||||||
Other [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenues | $ 519.2 | $ 452.1 | $ 364.8 | ||||||||
Percent of Total Net Revenues, International | 7.4352% | 6.65548% | 5.49075% | ||||||||
Long-Lived Assets | 83.8 | 83.4 | $ 83.8 | $ 83.4 | $ 100.1 | ||||||
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 4.00% | 4.00% | 5.00% | ||||||||
Total International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net Revenues | $ 1,260.1 | $ 1,142.8 | $ 934.9 | ||||||||
Percent of Total Net Revenues, International | 18.00% | 17.00% | 14.00% | ||||||||
Long-Lived Assets | $ 166.3 | $ 163.4 | $ 166.3 | $ 163.4 | $ 195.1 | ||||||
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 8.00% | 8.00% | 10.00% |
Quarterly Financial Data (Una94
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 1,714.6 | $ 1,748.2 | $ 1,826.1 | $ 1,694.1 | $ 1,570 | $ 1,711.4 | $ 1,829.9 | $ 1,681.6 | $ 6,983 | $ 6,792.9 | $ 6,643.9 |
Gross Profit | 290.4 | 269.7 | (20.9) | 281.3 | 236.8 | 272 | 157.9 | 322.6 | |||
Operating (loss) income | 226.9 | 211.4 | (82.8) | 213.6 | 160.9 | 214.4 | 83.3 | 266.5 | 569.1 | 725.1 | 863 |
Net income | $ 122.8 | $ 147.2 | $ (56.8) | $ 141.7 | $ 108.2 | $ 145.1 | $ 44.8 | $ 171.6 | $ 354.9 | $ 469.7 | $ 788.7 |
(Loss) earnings per share, basic (in dollars per share) | $ 1.08 | $ 1.27 | $ (0.48) | $ 1.19 | $ 0.90 | $ 1.16 | $ 0.35 | $ 1.30 | $ 3.04 | $ 3.72 | $ 5.69 |
(Loss) earnings per share, diluted (in dollars per share) | $ 1.07 | $ 1.26 | $ (0.48) | $ 1.17 | $ 0.89 | $ 1.16 | $ 0.35 | $ 1.29 | $ 3.01 | $ 3.70 | $ 5.66 |
Quarterly Financial Data (Una95
Quarterly Financial Data (Unaudited)- Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Information [Line Items] | |||||||||||
Change In Accounting Estimate, aggregate, affecting earnings from continuing operations | $ 12.9 | $ 4.8 | $ 329.2 | $ 5.2 | $ 7.5 | $ 5.5 | $ 134.7 | $ 47.2 | $ (296.1) | $ (81.6) | $ 52.4 |
Provision For Loss On Contracts | 480.5 | 409.1 | 480.5 | 409.1 | |||||||
Incentive Compensation Included In Unallocated Cost Of Sale | 12.7 | 23.6 | $ 0.8 | ||||||||
Airbus Three Hundred Fifty XWB [Member] | |||||||||||
Quarterly Information [Line Items] | |||||||||||
Provision For Loss On Contracts | 275.5 | 255.8 | 275.5 | 255.8 | |||||||
B787 [Member] | |||||||||||
Quarterly Information [Line Items] | |||||||||||
Provision For Loss On Contracts | 57.2 | 57.2 | |||||||||
Rolls-Royce [Member] | |||||||||||
Quarterly Information [Line Items] | |||||||||||
Provision For Loss On Contracts | $ 137.4 | $ 140.8 | $ 137.4 | $ 140.8 |
Condensed Consolidating Finan96
Condensed Consolidating Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 28, 2017 | Jun. 29, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Restricted Cash, Current | $ 2.2 | $ 0 | ||||||||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||||||||||
Net Revenues | $ 1,714.6 | $ 1,748.2 | $ 1,826.1 | $ 1,694.1 | $ 1,570 | $ 1,711.4 | $ 1,829.9 | $ 1,681.6 | $ 6,983 | $ 6,792.9 | $ 6,643.9 | |||
Operating costs and expenses | ||||||||||||||
Cost of sales | 6,162.5 | 5,803.6 | 5,532.3 | |||||||||||
Selling, general and administrative | 200.3 | 228.3 | 220.8 | |||||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 19.9 | 12.1 | 0 | |||||||||||
Research and development | 31.2 | 23.8 | 27.8 | |||||||||||
Total operating costs and expenses | 6,413.9 | 6,067.8 | 5,780.9 | |||||||||||
Operating (loss) income | 226.9 | 211.4 | (82.8) | 213.6 | 160.9 | 214.4 | 83.3 | 266.5 | 569.1 | 725.1 | 863 | |||
Interest expense and financing fee amortization | (41.7) | (57.3) | (52.7) | |||||||||||
Other income, net | 7.2 | (7.3) | (2.2) | |||||||||||
(Loss) income before income taxes and equity in net income of affiliates and subsidiaries | 534.6 | 660.5 | 808.1 | |||||||||||
Income tax provision | (180) | (192.1) | (20.6) | |||||||||||
(Loss) income before equity in net income of affiliates and subsidiaries | 354.6 | 468.4 | 787.5 | |||||||||||
Equity in net income of affiliates | 0.3 | 1.3 | 1.2 | |||||||||||
Equity in net income of subsidiaries | 0 | 0 | 0 | |||||||||||
Net income | 122.8 | $ 147.2 | $ (56.8) | 141.7 | 108.2 | $ 145.1 | $ 44.8 | 171.6 | 354.9 | 469.7 | 788.7 | |||
Total other comprehensive income (loss) | 58.4 | (26.4) | (6.7) | |||||||||||
Comprehensive income | 413.3 | 443.3 | 782 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 423.3 | 697.7 | 697.7 | 957.3 | 697.7 | 957.3 | 377.9 | 423.3 | 697.7 | $ 957.3 | ||||
Accounts receivable, net | 722.2 | 660.5 | ||||||||||||
Inventory, net | 1,449.9 | 1,515.3 | ||||||||||||
Other current assets | 53.5 | 36.9 | ||||||||||||
Total current assets | 2,651.1 | 2,910.4 | ||||||||||||
Property, plant and equipment, net | 2,105.3 | 1,991.6 | 1,950.7 | |||||||||||
Pension assets | 347.1 | 282.3 | ||||||||||||
Investment in subsidiary | 0 | 0 | ||||||||||||
Deferred tax asset-non-current, net | 72.5 | 128.8 | ||||||||||||
Other assets | 164.3 | 220.9 | ||||||||||||
Total assets | 5,267.8 | 5,405.2 | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable | 693.1 | 579.7 | ||||||||||||
Accrued expenses | 269.3 | 216.2 | ||||||||||||
Profit sharing | 109.5 | 101.4 | ||||||||||||
Current portion of long-term debt | 31.1 | 26.7 | ||||||||||||
Advance payments, short-term | 100 | 199.3 | ||||||||||||
Deferred revenue and other deferred credits, short-term | 64.6 | 312.1 | ||||||||||||
Deferred grant income liability — current | 21.6 | 14.4 | ||||||||||||
Other current liabilities | 331.8 | 94.4 | ||||||||||||
Total current liabilities | 1,621 | 1,544.2 | ||||||||||||
Long-term debt | 1,119.9 | 1,060 | ||||||||||||
Advance payments, long-term | 231.7 | 342 | ||||||||||||
Pension/OPEB obligation | 40.8 | 43.9 | ||||||||||||
Deferred grant income liability — non-current | 39.3 | 63.4 | ||||||||||||
Deferred revenue and other deferred credits | 161 | 146.8 | ||||||||||||
Other liabilities | 252.6 | 276.1 | ||||||||||||
Total equity | 1,801.5 | 1,928.8 | ||||||||||||
Total liabilities and equity | 5,267.8 | 5,405.2 | ||||||||||||
Operating activities | ||||||||||||||
Net cash provided by operating activities | 573.7 | 716.9 | 1,289.7 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (273.1) | (254) | (360.1) | |||||||||||
Proceeds from sale of assets | 0.4 | 0.6 | 2.7 | |||||||||||
Increase (Decrease) in Restricted Cash | (0.1) | 0 | 0 | |||||||||||
Other | (0.1) | 0 | 0 | |||||||||||
Net cash used in investing activities | (272.8) | (253.4) | (357.4) | |||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | 0 | 535 | |||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | 299.8 | 0 | |||||||||||
Financing activities | ||||||||||||||
Principal payments of debt | 2.8 | 36.4 | 36.5 | |||||||||||
Collection on (repayment of) intercompany debt | 0 | 0 | 0 | |||||||||||
Repayments of Senior Debt | 0 | 300 | 0 | |||||||||||
Repayments of Debt | 25 | 0 | 534.9 | |||||||||||
Debt issuance and financing costs | 0.9 | 17.2 | 4.7 | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 14.2 | 15.2 | (20.7) | |||||||||||
Proceeds from Other Debt | 7.6 | 0 | 0 | |||||||||||
Excess tax benefit of share-based payment arrangements | 0 | 0.1 | (10.7) | |||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||||
Payments for Repurchase of Common Stock | 496.3 | 649.6 | 300 | |||||||||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||||||||||
Payments of Dividends | (47.1) | 0 | 0 | |||||||||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (2.2) | 0 | 0 | |||||||||||
Net cash used in financing activities | (580.9) | (718.7) | (351.1) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (4.4) | (1.8) | |||||||||||
Net (decrease) increase in cash and cash equivalents for the period | (274.4) | (259.6) | 579.4 | |||||||||||
Cash and cash equivalents, beginning of period | 697.7 | 957.3 | 697.7 | 957.3 | 377.9 | |||||||||
Cash and cash equivalents, end of period | 423.3 | 697.7 | 423.3 | 697.7 | 957.3 | |||||||||
Parent Company [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Restricted Cash, Current | 0 | |||||||||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||||||||||
Net Revenues | 0 | 0 | 0 | |||||||||||
Operating costs and expenses | ||||||||||||||
Cost of sales | 0 | 0 | 0 | |||||||||||
Selling, general and administrative | 12.4 | 8.7 | 7.1 | |||||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||||||||||
Research and development | 0 | 0 | 0 | |||||||||||
Total operating costs and expenses | 12.4 | 8.7 | 7.1 | |||||||||||
Operating (loss) income | (12.4) | (8.7) | (7.1) | |||||||||||
Interest expense and financing fee amortization | 0 | 0 | 0 | |||||||||||
Other income, net | 0 | 0 | 0 | |||||||||||
(Loss) income before income taxes and equity in net income of affiliates and subsidiaries | (12.4) | (8.7) | (7.1) | |||||||||||
Income tax provision | 4.7 | 2.6 | 0.1 | |||||||||||
(Loss) income before equity in net income of affiliates and subsidiaries | (7.7) | (6.1) | (7) | |||||||||||
Equity in net income of affiliates | 0.3 | 1.3 | 1.2 | |||||||||||
Equity in net income of subsidiaries | 362.3 | 474.5 | 794.5 | |||||||||||
Net income | 354.9 | 469.7 | 788.7 | |||||||||||
Total other comprehensive income (loss) | 58.4 | (26.4) | (6.7) | |||||||||||
Comprehensive income | 413.3 | 443.3 | 782 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Accounts receivable, net | 0 | 0 | ||||||||||||
Inventory, net | 0 | 0 | ||||||||||||
Other current assets | 0 | 0 | ||||||||||||
Total current assets | 0 | 0 | ||||||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||||||
Pension assets | 0 | 0 | ||||||||||||
Investment in subsidiary | 1,801.5 | 1,928.8 | ||||||||||||
Other assets | 0 | 0 | ||||||||||||
Total assets | 1,801.5 | 1,928.8 | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable | 0 | 0 | ||||||||||||
Accrued expenses | 0 | 0 | ||||||||||||
Profit sharing | 0 | 0 | ||||||||||||
Current portion of long-term debt | 0 | 0 | ||||||||||||
Advance payments, short-term | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits, short-term | 0 | 0 | ||||||||||||
Deferred grant income liability — current | 0 | 0 | ||||||||||||
Other current liabilities | 0 | 0 | ||||||||||||
Total current liabilities | 0 | 0 | ||||||||||||
Long-term debt | 0 | 0 | ||||||||||||
Advance payments, long-term | 0 | 0 | ||||||||||||
Pension/OPEB obligation | 0 | 0 | ||||||||||||
Deferred grant income liability — non-current | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits | 0 | 0 | ||||||||||||
Other liabilities | 0 | 0 | ||||||||||||
Total equity | 1,801.5 | 1,928.8 | ||||||||||||
Total liabilities and equity | 1,801.5 | 1,928.8 | ||||||||||||
Operating activities | ||||||||||||||
Net cash provided by operating activities | 0 | 0 | 0 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Proceeds from sale of assets | 0 | 0 | 0 | |||||||||||
Other | 0 | 0 | 0 | |||||||||||
Net cash used in investing activities | 0 | 0 | 0 | |||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Financing activities | ||||||||||||||
Principal payments of debt | 0 | 0 | 0 | |||||||||||
Collection on (repayment of) intercompany debt | 0 | 0 | 0 | |||||||||||
Repayments of Senior Debt | 0 | |||||||||||||
Repayments of Debt | 0 | 0 | ||||||||||||
Debt issuance and financing costs | 0 | 0 | 0 | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | |||||||||||
Proceeds from Other Debt | 0 | |||||||||||||
Excess tax benefit of share-based payment arrangements | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 496.3 | 649.6 | 300 | |||||||||||
Payments for Repurchase of Common Stock | (496.3) | (649.6) | (300) | |||||||||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 47.1 | |||||||||||||
Payments of Dividends | (47.1) | |||||||||||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||||||||||
Net cash used in financing activities | 0 | 0 | 0 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Net (decrease) increase in cash and cash equivalents for the period | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 | 0 | |||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Restricted Cash, Current | 0 | |||||||||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||||||||||
Net Revenues | 1,362.3 | 1,284.2 | 1,030.6 | |||||||||||
Operating costs and expenses | ||||||||||||||
Cost of sales | 1,218.8 | 1,164.5 | 919.7 | |||||||||||
Selling, general and administrative | 14.8 | 16 | 18.8 | |||||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||||||||||
Research and development | 3.4 | 3 | 2.1 | |||||||||||
Total operating costs and expenses | 1,237 | 1,183.5 | 940.6 | |||||||||||
Operating (loss) income | 125.3 | 100.7 | 90 | |||||||||||
Interest expense and financing fee amortization | (5.7) | (7.8) | (7.8) | |||||||||||
Other income, net | 0.4 | (14.7) | (6.3) | |||||||||||
(Loss) income before income taxes and equity in net income of affiliates and subsidiaries | 120 | 78.2 | 75.9 | |||||||||||
Income tax provision | (23) | (15.5) | (12.3) | |||||||||||
(Loss) income before equity in net income of affiliates and subsidiaries | 97 | 62.7 | 63.6 | |||||||||||
Equity in net income of affiliates | 0.3 | 1.3 | 1.2 | |||||||||||
Equity in net income of subsidiaries | 0 | 0 | 0 | |||||||||||
Net income | 97.3 | 64 | 64.8 | |||||||||||
Total other comprehensive income (loss) | 42.2 | (61.3) | (21.1) | |||||||||||
Comprehensive income | 139.5 | 2.7 | 43.7 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 58.2 | 17.6 | 17.6 | 63.1 | 17.6 | 63.1 | 23.3 | 58.2 | 17.6 | 63.1 | ||||
Accounts receivable, net | 330.9 | 249.4 | ||||||||||||
Inventory, net | 439.9 | 456.5 | ||||||||||||
Other current assets | 3.2 | 7.9 | ||||||||||||
Total current assets | 832.2 | 731.4 | ||||||||||||
Property, plant and equipment, net | 519.5 | 529.3 | ||||||||||||
Pension assets | 19.9 | 14.2 | ||||||||||||
Investment in subsidiary | 0 | 0 | ||||||||||||
Other assets | 124.5 | 101.4 | ||||||||||||
Total assets | 1,496.1 | 1,376.3 | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable | 425.4 | 426.6 | ||||||||||||
Accrued expenses | 29.8 | 23.4 | ||||||||||||
Profit sharing | 6.1 | 4.2 | ||||||||||||
Current portion of long-term debt | 0.9 | 1.6 | ||||||||||||
Advance payments, short-term | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits, short-term | 1 | 1.3 | ||||||||||||
Deferred grant income liability — current | 21.6 | 14.4 | ||||||||||||
Other current liabilities | 7.5 | 0.2 | ||||||||||||
Total current liabilities | 492.3 | 471.7 | ||||||||||||
Long-term debt | 167.1 | 206.9 | ||||||||||||
Advance payments, long-term | 0 | 0 | ||||||||||||
Pension/OPEB obligation | 0 | 0 | ||||||||||||
Deferred grant income liability — non-current | 39.3 | 63.4 | ||||||||||||
Deferred revenue and other deferred credits | 2.8 | 3.4 | ||||||||||||
Other liabilities | 10.1 | 6.6 | ||||||||||||
Total equity | 784.5 | 624.3 | ||||||||||||
Total liabilities and equity | 1,496.1 | 1,376.3 | ||||||||||||
Operating activities | ||||||||||||||
Net cash provided by operating activities | 123.2 | 71 | 122.2 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (31.7) | (47.6) | (86.8) | |||||||||||
Proceeds from sale of assets | 0 | 0 | 0 | |||||||||||
Other | 0 | (0.4) | 0.2 | |||||||||||
Net cash used in investing activities | (31.7) | (48) | (86.6) | |||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Financing activities | ||||||||||||||
Principal payments of debt | (1.6) | (2.5) | (3.1) | |||||||||||
Collection on (repayment of) intercompany debt | (54.9) | (61.6) | 8.9 | |||||||||||
Repayments of Senior Debt | 0 | |||||||||||||
Repayments of Debt | 0 | 0 | ||||||||||||
Debt issuance and financing costs | 0 | 0 | 0 | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | |||||||||||
Proceeds from Other Debt | 0 | |||||||||||||
Excess tax benefit of share-based payment arrangements | 0 | (0.2) | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |||||||||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||||||||||
Payments of Dividends | 0 | |||||||||||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||||||||||
Net cash used in financing activities | (56.5) | (64.1) | 6 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 5.6 | (4.4) | (1.8) | |||||||||||
Net (decrease) increase in cash and cash equivalents for the period | 40.6 | (45.5) | 39.8 | |||||||||||
Cash and cash equivalents, beginning of period | 17.6 | 63.1 | 17.6 | 63.1 | 23.3 | |||||||||
Cash and cash equivalents, end of period | 58.2 | 17.6 | 58.2 | 17.6 | 63.1 | |||||||||
Subsidiary Issuer [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Restricted Cash, Current | 2.2 | |||||||||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||||||||||
Net Revenues | 6,236.4 | 6,124.6 | 6,096.1 | |||||||||||
Operating costs and expenses | ||||||||||||||
Cost of sales | 5,559.4 | 5,255 | 5,095.4 | |||||||||||
Selling, general and administrative | 173.1 | 203.6 | 194.9 | |||||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 19.9 | 12.1 | ||||||||||||
Research and development | 27.8 | 20.8 | 25.7 | |||||||||||
Total operating costs and expenses | 5,780.2 | 5,491.5 | 5,316 | |||||||||||
Operating (loss) income | 456.2 | 633.1 | 780.1 | |||||||||||
Interest expense and financing fee amortization | (41.6) | (57) | (52.2) | |||||||||||
Other income, net | 12.4 | 14.9 | 11.3 | |||||||||||
(Loss) income before income taxes and equity in net income of affiliates and subsidiaries | 427 | 591 | 739.2 | |||||||||||
Income tax provision | (161.7) | (179.2) | (8.4) | |||||||||||
(Loss) income before equity in net income of affiliates and subsidiaries | 265.3 | 411.8 | 730.8 | |||||||||||
Equity in net income of affiliates | 0 | 0 | 0 | |||||||||||
Equity in net income of subsidiaries | 97 | 62.6 | 63.6 | |||||||||||
Net income | 362.3 | 474.4 | 794.4 | |||||||||||
Total other comprehensive income (loss) | 58.4 | (26.4) | (6.7) | |||||||||||
Comprehensive income | 420.7 | 448 | 787.7 | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 365.1 | 680.1 | 680.1 | 894.2 | 680.1 | 894.2 | 354.6 | 365.1 | 680.1 | 894.2 | ||||
Accounts receivable, net | 752.6 | 785 | ||||||||||||
Inventory, net | 1,010 | 1,058.8 | ||||||||||||
Other current assets | 50.3 | 29 | ||||||||||||
Total current assets | 2,180.2 | 2,552.9 | ||||||||||||
Property, plant and equipment, net | 1,585.8 | 1,462.3 | ||||||||||||
Pension assets | 327.2 | 268.1 | ||||||||||||
Investment in subsidiary | 704.4 | 544.4 | ||||||||||||
Other assets | 298.2 | 398.9 | ||||||||||||
Total assets | 5,095.8 | 5,226.6 | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable | 629 | 527 | ||||||||||||
Accrued expenses | 239.5 | 192.8 | ||||||||||||
Profit sharing | 103.4 | 97.2 | ||||||||||||
Current portion of long-term debt | 30.2 | 25.1 | ||||||||||||
Advance payments, short-term | 100 | 199.3 | ||||||||||||
Deferred revenue and other deferred credits, short-term | 63.6 | 310.8 | ||||||||||||
Deferred grant income liability — current | 0 | 0 | ||||||||||||
Other current liabilities | 324.3 | 94.2 | ||||||||||||
Total current liabilities | 1,490 | 1,446.4 | ||||||||||||
Long-term debt | 1,110.6 | 1,052.5 | ||||||||||||
Advance payments, long-term | 231.7 | 342 | ||||||||||||
Pension/OPEB obligation | 40.8 | 43.9 | ||||||||||||
Deferred grant income liability — non-current | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits | 158.2 | 143.4 | ||||||||||||
Other liabilities | 343.1 | 349.5 | ||||||||||||
Total equity | 1,721.4 | 1,848.9 | ||||||||||||
Total liabilities and equity | 5,095.8 | 5,226.6 | ||||||||||||
Operating activities | ||||||||||||||
Net cash provided by operating activities | 450.5 | 645.9 | 1,167.5 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | (241.4) | (206.4) | (273.3) | |||||||||||
Proceeds from sale of assets | 0.4 | 0.6 | 2.7 | |||||||||||
Other | (0.1) | 0.4 | (0.2) | |||||||||||
Net cash used in investing activities | (241.1) | (205.4) | (270.8) | |||||||||||
Proceeds from (Repayments of) Notes Payable | 535 | |||||||||||||
Proceeds from (Repayments of) Notes Payable | 299.8 | |||||||||||||
Financing activities | ||||||||||||||
Principal payments of debt | 1.2 | 33.9 | (33.4) | |||||||||||
Collection on (repayment of) intercompany debt | (54.9) | (61.6) | (8.9) | |||||||||||
Repayments of Senior Debt | (300) | |||||||||||||
Repayments of Debt | 25 | 534.9 | ||||||||||||
Debt issuance and financing costs | 0.9 | 17.2 | (4.7) | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 14.2 | 15.2 | 20.7 | |||||||||||
Proceeds from Other Debt | 7.6 | |||||||||||||
Excess tax benefit of share-based payment arrangements | 0.1 | (10.5) | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | (496.3) | (649.6) | (300) | |||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |||||||||||
Proceeds from subsidiary (payments to Parent) to pay dividends | (47.1) | |||||||||||||
Payments of Dividends | 0 | |||||||||||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | (2.2) | |||||||||||||
Net cash used in financing activities | (524.4) | (654.6) | (357.1) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Net (decrease) increase in cash and cash equivalents for the period | (315) | (214.1) | 539.6 | |||||||||||
Cash and cash equivalents, beginning of period | 680.1 | 894.2 | 680.1 | 894.2 | 354.6 | |||||||||
Cash and cash equivalents, end of period | 365.1 | 680.1 | 365.1 | 680.1 | 894.2 | |||||||||
Consolidation, Eliminations [Member] | ||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||
Restricted Cash, Current | 0 | |||||||||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||||||||||
Net Revenues | (615.7) | (615.9) | (482.8) | |||||||||||
Operating costs and expenses | ||||||||||||||
Cost of sales | (615.7) | (615.9) | (482.8) | |||||||||||
Selling, general and administrative | 0 | 0 | 0 | |||||||||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||||||||||
Research and development | 0 | 0 | 0 | |||||||||||
Total operating costs and expenses | (615.7) | (615.9) | (482.8) | |||||||||||
Operating (loss) income | 0 | 0 | 0 | |||||||||||
Interest expense and financing fee amortization | 5.6 | 7.5 | 7.3 | |||||||||||
Other income, net | (5.6) | (7.5) | (7.2) | |||||||||||
(Loss) income before income taxes and equity in net income of affiliates and subsidiaries | 0 | 0 | 0.1 | |||||||||||
Income tax provision | 0 | |||||||||||||
(Loss) income before equity in net income of affiliates and subsidiaries | 0 | 0 | 0.1 | |||||||||||
Equity in net income of affiliates | (0.3) | (1.3) | (1.2) | |||||||||||
Equity in net income of subsidiaries | (459.3) | (537.1) | (858.1) | |||||||||||
Net income | (459.6) | (538.4) | (859.2) | |||||||||||
Total other comprehensive income (loss) | (100.6) | 87.7 | 27.8 | |||||||||||
Comprehensive income | (560.2) | (450.7) | (831.4) | |||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $ 0 | ||||
Accounts receivable, net | (361.3) | (373.9) | ||||||||||||
Inventory, net | 0 | 0 | ||||||||||||
Other current assets | 0 | 0 | ||||||||||||
Total current assets | (361.3) | (373.9) | ||||||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||||||
Pension assets | 0 | 0 | ||||||||||||
Investment in subsidiary | (2,505.9) | (2,473.2) | ||||||||||||
Other assets | (258.4) | (279.4) | ||||||||||||
Total assets | (3,125.6) | (3,126.5) | ||||||||||||
Liabilities | ||||||||||||||
Accounts payable | (361.3) | (373.9) | ||||||||||||
Accrued expenses | 0 | 0 | ||||||||||||
Profit sharing | 0 | 0 | ||||||||||||
Current portion of long-term debt | 0 | 0 | ||||||||||||
Advance payments, short-term | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits, short-term | 0 | 0 | ||||||||||||
Deferred grant income liability — current | 0 | 0 | ||||||||||||
Other current liabilities | 0 | 0 | ||||||||||||
Total current liabilities | (361.3) | (373.9) | ||||||||||||
Long-term debt | (157.8) | (199.4) | ||||||||||||
Advance payments, long-term | 0 | 0 | ||||||||||||
Pension/OPEB obligation | 0 | 0 | ||||||||||||
Deferred grant income liability — non-current | 0 | 0 | ||||||||||||
Deferred revenue and other deferred credits | 0 | 0 | ||||||||||||
Other liabilities | (100.6) | (80) | ||||||||||||
Total equity | (2,505.9) | (2,473.2) | ||||||||||||
Total liabilities and equity | $ (3,125.6) | $ (3,126.5) | ||||||||||||
Operating activities | ||||||||||||||
Net cash provided by operating activities | 0 | 0 | 0 | |||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | ||||||||||||||
Proceeds from sale of assets | 0 | 0 | 0 | |||||||||||
Other | 0 | 0 | 0 | |||||||||||
Net cash used in investing activities | 0 | 0 | 0 | |||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Proceeds from (Repayments of) Notes Payable | 0 | |||||||||||||
Financing activities | ||||||||||||||
Principal payments of debt | 0 | 0 | 0 | |||||||||||
Collection on (repayment of) intercompany debt | 0 | 0 | 0 | |||||||||||
Repayments of Senior Debt | 0 | |||||||||||||
Repayments of Debt | 0 | 0 | ||||||||||||
Debt issuance and financing costs | 0 | 0 | 0 | |||||||||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | 0 | |||||||||||
Proceeds from Other Debt | 0 | |||||||||||||
Excess tax benefit of share-based payment arrangements | 0 | 0 | ||||||||||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | 0 | |||||||||||
Payments for Repurchase of Common Stock | 0 | 0 | 0 | |||||||||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | |||||||||||||
Payments of Dividends | 0 | |||||||||||||
Proceeds from (Repayments of) Restricted Cash, Financing Activities | 0 | |||||||||||||
Net cash used in financing activities | 0 | 0 | 0 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Net (decrease) increase in cash and cash equivalents for the period | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents, beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | |||||||||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Severe Weather Event (Details)
Severe Weather Event (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | $ 19.9 | $ 12.1 | $ 0 |
New Market Tax Credit (Details)
New Market Tax Credit (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 9.7 | |
Restricted Cash, Current | 2.2 | $ 0 |
New Market Tax Credit [Member] | ||
Variable Interest Entity [Line Items] | ||
Loans Receivable, Net | $ 20.6 |