Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 20, 2022 | |
Cover [Abstract] | ||
Security Exchange Name | NYSE | |
Title of 12(b) Security | Class A common stock, par value $0.01 per share | |
Entity Address, Postal Zip Code | 67210 | |
City Area Code | 316 | |
Local Phone Number | 526-9000 | |
Entity Address, State or Province | KS | |
Entity Address, City or Town | Wichita | |
Entity Address, Address Line One | 3801 South Oliver | |
Entity Tax Identification Number | 20-2436320 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-33160 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. | |
Entity Central Index Key | 0001364885 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Amendment Flag | false | |
Trading Symbol | SPR | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 105,137,748 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,257.9 | $ 1,002.1 | $ 2,432.6 | $ 1,902.9 |
Operating costs and expenses | ||||
Cost of sales | 1,277.5 | 1,014.4 | 2,417.4 | 1,973.2 |
Selling, general and administrative | 70.2 | 66.9 | 134.7 | 124.5 |
Restructuring Charges | 0 | 5.2 | 0.2 | 7.3 |
Research and development | 14.9 | 13.3 | 27.2 | 21.5 |
Total operating costs and expenses | 1,362.6 | 1,099.8 | 2,579.5 | 2,126.5 |
Operating loss | (104.7) | (97.7) | (146.9) | (223.6) |
Interest expense and financing fee amortization | (55.1) | (59.1) | (114) | (118.9) |
Other income, net | (34.6) | (31.1) | (72.3) | (43.9) |
Loss before income taxes and equity in net loss of affiliate | (125.2) | (125.7) | (188.6) | (298.6) |
Income tax benefit (expense) | 3.5 | (9) | 14.5 | (7.3) |
Loss before equity in net loss of affiliate | (121.7) | (134.7) | (174.1) | (305.9) |
Equity in net loss of affiliate | (0.5) | (0.6) | (0.9) | (1) |
Net loss | $ (122.2) | $ (135.3) | $ (175) | $ (306.9) |
Loss per share | ||||
Earnings Per Share, Basic | $ (1.17) | $ (1.30) | $ (1.67) | $ (2.95) |
Diluted (in dollars per share) | $ (1.17) | $ (1.30) | $ (1.67) | $ (2.95) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (122.2) | $ (135.3) | $ (175) | $ (306.9) |
Foreign currency translation adjustments | (33) | (2.5) | (46.5) | 3.9 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 3.1 | 1.1 | 2.6 | (3.8) |
Other Comprehensive Income Unrealized Gain Loss On Intercompany Loan Net Of Tax | (2.8) | (0.2) | (4) | 0.3 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 4.1 | 0 | 5.6 | 0.9 |
Total other comprehensive (loss) gain | (41.7) | (2.1) | (59.3) | 2 |
Total comprehensive loss | (163.9) | (137.4) | (234.3) | (304.9) |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (4.1) | 0 | (5.6) | (0.9) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | $ (13.1) | $ (0.5) | $ (17) | $ 0.7 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (1.1) | $ 0.2 | $ (1) | $ 0.3 |
Unrealized exchange (loss) on intercompany loan, tax | 1.3 | 0.1 | 1.8 | (0.1) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 0 | 0 | 0 | (0.2) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 770.2 | $ 1,478.6 |
Restricted Cash, Current | 0.2 | 0.3 |
Accounts receivable, net | 581.3 | 461.6 |
Unbilled Receivables, Current | 482.7 | 443.2 |
Inventory, net | 1,345.8 | 1,382.6 |
Other current assets | 31.4 | 39.7 |
Total current assets | 3,211.6 | 3,806 |
Property, plant and equipment, net | 2,260.9 | 2,385.5 |
Operating Lease, Right-of-Use Asset | 82.3 | 85.3 |
Unbilled Receivable, Non Current | 0.9 | 0 |
Pension assets | 432.1 | 532.5 |
Pension reversion assets | 70.3 | 0 |
Deferred Income Tax Assets, Net | 3.5 | 0.4 |
Goodwill | 623.4 | 623.7 |
Intangible Assets, Net (Excluding Goodwill) | 205 | 212.3 |
Deferred income taxes | 99.3 | 91.6 |
Other assets | 6,989.3 | 7,737.3 |
Liabilities, Current [Abstract] | ||
Accounts Payable, Current | 810.7 | 720.3 |
Accrued Liabilities, Current | 390.3 | 376.1 |
Deferred Compensation Liability, Current | 19.5 | 63.7 |
Long-term Debt and Lease Obligation, Current | 347.7 | 49.5 |
Operating Lease, Liability, Current | 8.3 | 8.2 |
Customer Advances, Current | 98.2 | 137.8 |
Contract with Customer, Liability, Current | 84.2 | 97.9 |
Provision for Loss on Contracts | 309.2 | 244.6 |
Deferred Credits and Other Liabilities, Current | 22.1 | 72.7 |
Other Liabilities, Current | 89.7 | 105.2 |
Liabilities Noncurrent | ||
Long-term debt | 3,424.8 | 3,742.7 |
Operating Lease, Liability, Noncurrent | 73.2 | 78.8 |
Advance payments, long-term | 194.1 | 201.3 |
Pension/OPEB obligation | 32.5 | 74.8 |
Contract with Customer, Liability, Noncurrent | 276.2 | 289.1 |
Provision for Loss on Contacts, Non Current | 402.5 | 521.6 |
Deferred Credits and Other Liabilities, Noncurrent | 27 | 32.1 |
Deferred grant income liability - non-current | 26.6 | 26.4 |
Deferred Income Tax Liabilities, Net | 9.5 | 21.8 |
Deferred income taxes | 117.1 | 423.9 |
Additional Paid in Capital [Abstract] | ||
Additional paid-in capital | 1,159.8 | 1,146.2 |
AccumulatedOtherComprehensiveIncomeLossNetOfTaxAbstract | ||
Accumulated other comprehensive loss | (83) | (23.7) |
Retained Earnings Accumulated Deficit [Abstract] | ||
Retained earnings | $ 1,604.2 | $ 1,781.4 |
Treasury Stock, Shares | 41,587,480 | 41,523,470 |
Treasury Stock, Value | $ (2,456.7) | $ (2,456.7) |
Total stockholders' equity | 225.4 | 448.3 |
Noncontrolling interest | 0.5 | 0.5 |
Total equity | 225.9 | 448.8 |
Total liabilities and equity | 6,989.3 | 7,737.3 |
Liabilities, Current | 2,179.9 | 1,876 |
Class A [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock | $ 1.1 | $ 1.1 |
Retained Earnings Accumulated Deficit [Abstract] | ||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Class B [Member] | ||
Retained Earnings Accumulated Deficit [Abstract] | ||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
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 |
Treasury Stock, Shares | 41,587,480 | 41,523,470 |
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 | 105,138,159 | 105,037,845 |
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 Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jul. 01, 2021 | |
Operating activities | ||
Net loss | $ (175) | $ (306.9) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization expense | 169 | 160.3 |
Amortization of deferred financing fees | 3.7 | 4.3 |
Accretion of customer supply agreement | 1.3 | 1.1 |
Employee Benefit and Share-based Payment Arrangement, Noncash | 18.3 | 13.4 |
Loss on Derivative Instruments, Pretax | 4 | (0.1) |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 5.6 | |
(Gain) loss from foreign currency transactions | (25.7) | 4.9 |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | (1.6) | (1.4) |
Deferred taxes | (13.6) | 12.5 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (39.7) | (30.5) |
Grant liability amortization | (0.7) | (0.8) |
Unrealized Gain (Loss) on Investments | 0.9 | 1 |
Increase (Decrease) in Forward Provision | (53.4) | (28.1) |
Changes in assets and liabilities | ||
Accounts receivable, net | (124.7) | (11.2) |
Inventory, net | 13.9 | 111.8 |
Accounts payable and accrued liabilities | 105.5 | (11.3) |
Profit sharing/deferred compensation | (43.7) | (29.2) |
Advance payments | (65.7) | (1.3) |
Income taxes receivable/payable | 12.1 | 8.3 |
Pension plans employer contributions | (38.8) | 1.2 |
Other | (12) | (15.2) |
Net cash used in operating activities | (331.7) | (197.7) |
Investing activities | ||
Purchase of property, plant and equipment | (45.2) | (53.3) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | (21.1) |
Payments for (Proceeds from) Other Investing Activities | (2.2) | 2.2 |
Net cash used in investing activities | (47.4) | (72.2) |
Financing activities | ||
Proceeds from (Repayments of) Other Debt | 0 | (5) |
Proceeds from Issuance of Senior Long-term Debt | 289.5 | 0 |
Principal payments of debt | (22.5) | (19.9) |
Repayments of Debt | (3) | (2) |
Repayments of Senior Debt | 0 | 300 |
Payment, Tax Withholding, Share-based Payment Arrangement | (6.5) | (4.4) |
Proceeds from Stock Plans | 1.9 | 1.4 |
Payments of Dividends | (2.2) | (2.2) |
Proceeds from (Payments for) Other Financing Activities | 0 | 0.1 |
Net cash used in financing activities | (321.8) | (332) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (708.5) | (604) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance | 1,498.4 | 1,893.1 |
Cash, cash equivalents, and restricted cash, end of period | 789.9 | 1,289.1 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 770.2 | 1,269.3 |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash [Abstract] | ||
Restricted Cash, Current | 0.2 | 0.3 |
Restricted Cash, Noncurrent | 19.5 | 19.5 |
Increase (Decrease) in Income Taxes Payable | 12.1 | 8.3 |
Increase (Decrease) in Contract with Customer, Liability | (26.5) | (82.1) |
Defined Benefit Plan, Plan Assets, Contributions by Employer | (15.6) | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 23 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 21.1 |
Proceeds from Issuance of Senior Long-term Debt | 289.5 | 0 |
Repayments of Senior Debt | 0 | 300 |
Proceeds from (Payments for) Other Financing Activities | 0 | 0.1 |
Increase (Decrease) in Contract with Customer, Asset | 44.5 | (14.4) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (7.6) | (2.1) |
Gain (Loss) on Contract Termination | (21) | 0 |
Increase (Decrease) in Deferred Liabilities | $ (38.8) | $ 1.2 |
Condensed Statement of Changes
Condensed Statement of Changes in Stockholders' Equity Statement - USD ($) $ in Millions | Total | Class A [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] |
Stockholders' Equity Attributable to Parent at Dec. 31, 2020 | $ 856.5 | ||||||
Common Stock, Shares, Outstanding at Dec. 31, 2020 | 105,542,162 | ||||||
Common Stock, Value, Outstanding at Dec. 31, 2020 | $ 1.1 | ||||||
Additional Paid in Capital, Common Stock at Dec. 31, 2020 | $ 1,139.8 | ||||||
Treasury Stock, Value at Dec. 31, 2020 | $ (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 31, 2020 | $ (154.1) | ||||||
Retained Earnings (Accumulated Deficit) at Dec. 31, 2020 | $ 2,326.4 | ||||||
Net Income (Loss) Attributable to Parent | (171.6) | (171.6) | |||||
Dividends, Common Stock, Cash | (1.1) | (1.1) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 30,024 | ||||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 6.5 | 6.5 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | (94,820) | ||||||
Shares Granted, Value, Share-based Payment Arrangement, Forfeited | $ 0 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (3.3) | $ 0 | (3.3) | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 29,500 | ||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1.4 | 1.4 | |||||
Supplemental Retirement Plan Shares Issued | 9,198 | ||||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (77,954) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 4.1 | 4.1 | |||||
Stockholders' Equity Attributable to Parent at Apr. 01, 2021 | 692.5 | ||||||
Common Stock, Shares, Outstanding at Apr. 01, 2021 | 105,438,110 | ||||||
Additional Paid in Capital, Common Stock at Apr. 01, 2021 | 1,144.4 | ||||||
Treasury Stock, Value at Apr. 01, 2021 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Apr. 01, 2021 | (150) | ||||||
Retained Earnings (Accumulated Deficit) at Apr. 01, 2021 | 2,153.7 | ||||||
Common Stock, Value, Outstanding at Apr. 01, 2021 | $ 1.1 | ||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2020 | 856.5 | ||||||
Common Stock, Shares, Outstanding at Dec. 31, 2020 | 105,542,162 | ||||||
Common Stock, Value, Outstanding at Dec. 31, 2020 | $ 1.1 | ||||||
Additional Paid in Capital, Common Stock at Dec. 31, 2020 | 1,139.8 | ||||||
Treasury Stock, Value at Dec. 31, 2020 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 31, 2020 | (154.1) | ||||||
Retained Earnings (Accumulated Deficit) at Dec. 31, 2020 | 2,326.4 | ||||||
Net Income (Loss) Attributable to Parent | (306.9) | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (4.4) | ||||||
Other Comprehensive Income (Loss), Net of Tax | 2 | ||||||
Stockholders' Equity Attributable to Parent at Jul. 01, 2021 | 559.8 | ||||||
Common Stock, Shares, Outstanding at Jul. 01, 2021 | 105,429,840 | ||||||
Additional Paid in Capital, Common Stock at Jul. 01, 2021 | 1,150.1 | ||||||
Treasury Stock, Value at Jul. 01, 2021 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Jul. 01, 2021 | (152.1) | ||||||
Retained Earnings (Accumulated Deficit) at Jul. 01, 2021 | 2,017.4 | ||||||
Common Stock, Value, Outstanding at Jul. 01, 2021 | $ 1.1 | ||||||
Stockholders' Equity Attributable to Parent at Apr. 01, 2021 | 692.5 | ||||||
Common Stock, Shares, Outstanding at Apr. 01, 2021 | 105,438,110 | ||||||
Additional Paid in Capital, Common Stock at Apr. 01, 2021 | 1,144.4 | ||||||
Treasury Stock, Value at Apr. 01, 2021 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Apr. 01, 2021 | (150) | ||||||
Retained Earnings (Accumulated Deficit) at Apr. 01, 2021 | 2,153.7 | ||||||
Net Income (Loss) Attributable to Parent | (135.3) | (135.3) | |||||
Dividends, Common Stock, Cash | (1.1) | (1.1) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 29,514 | ||||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 6.8 | 6.8 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | (10,500) | ||||||
Shares Granted, Value, Share-based Payment Arrangement, Forfeited | $ 0 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (1.1) | $ 0 | (1.1) | ||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (27,284) | ||||||
Stockholders' Equity, Other | 0.1 | 0.1 | |||||
Other Comprehensive Income (Loss), Net of Tax | (2.1) | (2.1) | |||||
Stockholders' Equity Attributable to Parent at Jul. 01, 2021 | 559.8 | ||||||
Common Stock, Shares, Outstanding at Jul. 01, 2021 | 105,429,840 | ||||||
Additional Paid in Capital, Common Stock at Jul. 01, 2021 | 1,150.1 | ||||||
Treasury Stock, Value at Jul. 01, 2021 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Jul. 01, 2021 | (152.1) | ||||||
Retained Earnings (Accumulated Deficit) at Jul. 01, 2021 | 2,017.4 | ||||||
Common Stock, Value, Outstanding at Jul. 01, 2021 | $ 1.1 | ||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2021 | 448.3 | ||||||
Common Stock, Shares, Outstanding at Dec. 31, 2021 | 105,037,845 | ||||||
Common Stock, Value, Outstanding at Dec. 31, 2021 | $ 1.1 | $ 1.1 | |||||
Additional Paid in Capital, Common Stock at Dec. 31, 2021 | 1,146.2 | 1,146.2 | |||||
Treasury Stock, Value at Dec. 31, 2021 | 2,456.7 | (2,456.7) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 31, 2021 | (23.7) | (23.7) | |||||
Retained Earnings (Accumulated Deficit) at Dec. 31, 2021 | 1,781.4 | 1,781.4 | |||||
Net Income (Loss) Attributable to Parent | (52.8) | (52.8) | |||||
Dividends, Common Stock, Cash | (1.1) | (1.1) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 152,306 | ||||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 8.3 | 8.3 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | (82,611) | ||||||
Shares Granted, Value, Share-based Payment Arrangement, Forfeited | $ 0 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (5.3) | $ 0 | (5.3) | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 40,078 | ||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 1.9 | 1.9 | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (111,874) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (17.6) | (17.6) | |||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2022 | 381.7 | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2022 | 105,035,744 | ||||||
Additional Paid in Capital, Common Stock at Mar. 31, 2022 | 1,151.1 | ||||||
Treasury Stock, Value at Mar. 31, 2022 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Mar. 31, 2022 | (41.3) | ||||||
Retained Earnings (Accumulated Deficit) at Mar. 31, 2022 | 1,727.5 | ||||||
Common Stock, Value, Outstanding at Mar. 31, 2022 | $ 1.1 | ||||||
Stockholders' Equity Attributable to Parent at Dec. 31, 2021 | 448.3 | ||||||
Common Stock, Shares, Outstanding at Dec. 31, 2021 | 105,037,845 | ||||||
Common Stock, Value, Outstanding at Dec. 31, 2021 | $ 1.1 | $ 1.1 | |||||
Additional Paid in Capital, Common Stock at Dec. 31, 2021 | 1,146.2 | 1,146.2 | |||||
Treasury Stock, Value at Dec. 31, 2021 | 2,456.7 | (2,456.7) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Dec. 31, 2021 | (23.7) | (23.7) | |||||
Retained Earnings (Accumulated Deficit) at Dec. 31, 2021 | $ 1,781.4 | 1,781.4 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.02 | ||||||
Net Income (Loss) Attributable to Parent | $ (175) | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (6.5) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (59.3) | ||||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | 225.4 | ||||||
Common Stock, Shares, Outstanding at Jun. 30, 2022 | 105,138,159 | ||||||
Additional Paid in Capital, Common Stock at Jun. 30, 2022 | 1,159.8 | 1,159.8 | |||||
Treasury Stock, Value at Jun. 30, 2022 | 2,456.7 | (2,456.7) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Jun. 30, 2022 | (83) | (83) | |||||
Retained Earnings (Accumulated Deficit) at Jun. 30, 2022 | 1,604.2 | 1,604.2 | |||||
Common Stock, Value, Outstanding at Jun. 30, 2022 | $ 1.1 | ||||||
Stockholders' Equity Attributable to Parent at Mar. 31, 2022 | $ 381.7 | ||||||
Common Stock, Shares, Outstanding at Mar. 31, 2022 | 105,035,744 | ||||||
Additional Paid in Capital, Common Stock at Mar. 31, 2022 | 1,151.1 | ||||||
Treasury Stock, Value at Mar. 31, 2022 | (2,456.7) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Mar. 31, 2022 | (41.3) | ||||||
Retained Earnings (Accumulated Deficit) at Mar. 31, 2022 | 1,727.5 | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||
Net Income (Loss) Attributable to Parent | $ (122.2) | (122.2) | |||||
Dividends, Common Stock, Cash | (1.1) | (1.1) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 141,869 | ||||||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 0 | ||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | 9.9 | 9.9 | |||||
Shares Issued, Shares, Share-based Payment Arrangement, Forfeited | (8,585) | ||||||
Shares Granted, Value, Share-based Payment Arrangement, Forfeited | $ 0 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | (1.2) | (1.2) | |||||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (30,869) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (41.7) | (41.7) | |||||
Stockholders' Equity Attributable to Parent at Jun. 30, 2022 | 225.4 | ||||||
Common Stock, Shares, Outstanding at Jun. 30, 2022 | 105,138,159 | ||||||
Additional Paid in Capital, Common Stock at Jun. 30, 2022 | 1,159.8 | $ 1,159.8 | |||||
Treasury Stock, Value at Jun. 30, 2022 | 2,456.7 | $ (2,456.7) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax at Jun. 30, 2022 | (83) | $ (83) | |||||
Retained Earnings (Accumulated Deficit) at Jun. 30, 2022 | $ 1,604.2 | $ 1,604.2 | |||||
Common Stock, Value, Outstanding at Jun. 30, 2022 | $ 1.1 |
Organization and Basis of Inter
Organization and Basis of Interim Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Interim Presentation | Organization, Basis of Interim Presentation and Recent Developments Unless the context otherwise indicates or requires, as used in this Quarterly Report on Form 10-Q, references to “we,” “us,” “our,” and the “Company” refer to Spirit AeroSystems Holdings, Inc. and its consolidated subsidiaries. References to “Spirit” refer only to our subsidiary, Spirit AeroSystems, Inc., and references to “Holdings” refer only to Spirit AeroSystems Holdings, Inc. 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 subsidiaries including Spirit. The Company's headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Tulsa, Oklahoma; Prestwick, Scotland; Wichita, Kansas; Kinston, North Carolina; Subang, Malaysia; Saint-Nazaire, France; Biddeford, Maine; Belfast, Northern Ireland; Casablanca, Morocco; and Dallas, Texas. The accompanying unaudited interim condensed consolidated financial statements include the Company’s financial statements and the financial statements of its majority-owned or controlled subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. The Company’s fiscal quarters are 13 weeks in length. Since the Company’s fiscal year ends on December 31, the number of days in the Company’s first and fourth quarters varies slightly from year to year. All intercompany balances and transactions have been eliminated in consolidation. As part of the monthly consolidation process, the Company’s international subsidiaries that have functional currencies other than the U.S. dollar are translated to U.S. dollars using the end-of-month translation rate for balance sheet accounts and average period currency translation rates for revenue and income accounts. The subsidiaries in Prestwick, Scotland and Subang, Malaysia use the British pound as their functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments and elimination of intercompany balances and transactions) considered necessary to fairly present the results of operations for the interim period. The results of operations for the six months ended June 30, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events through the date the financial statements were issued. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2022 (the “2021 Form 10-K”). The Company's significant accounting policies are described in Note 3, Summary of Significant Accounting Policies to our consolidated financial statements in the 2021 Form 10-K. COVID-19 During the six months ended June 30, 2022, the COVID-19 pandemic continued to have a significant negative impact on the aviation industry, the Company's customers, and the Company's business globally. The length of the COVID-19 pandemic and its impact on the aviation industry and the Company’s operational and financial performance remains uncertain and outside of the Company’s control. The Company expects the pandemic and its effects to continue to have a significant negative impact on its business for the duration of the pandemic and during the subsequent economic recovery, which could be for an extended period of time. B737 MAX Boeing's deliveries of the B737 MAX resumed in the fourth quarter of 2020 when the FAA rescinded the order that grounded B737 MAX aircraft in the United States. Since November 2020, regulators from Brazil, Canada, the EU, U.K., India, and other countries have taken similar actions to unground the B737 MAX and permit return to service. The Civil Aviation Administration of China, which is the most significant country remaining to allow the B737 MAX to return to service, issued an airworthiness directive in December 2021, directing corrective actions necessary to allow for return to service. During the six-month period ended June 30, 2022, Boeing continued to announce orders for the B737 MAX, and air carriers generally continued resuming flights on the aircraft. Global Economic Events In response to the Russian invasion of Ukraine, and the associated U.S. sanctions, the Company has suspended all sanctioned activities relating to Russia, primarily consisting of sales and service activities. Due to these sanctions and the results of additional assessment of the related assets and liabilities in the second quarter of 2022, the Company recorded an aggregate pre-tax loss of $28.1 related to adjustments of certain assets and liabilities associated with sanctioned Russian business activities. The charges are included on the Company's Condensed Consolidated Statements of Operations for the three-month and six-month periods ended June 30, 2022. |
Adoption of New Standard (Notes
Adoption of New Standard (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12”) which modifies FASB Accounting Standards Codification (“ASC”) 740 to simplify the accounting for income taxes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. The adoption of ASU 2019-12 as of January 1, 2021 did not have a material impact on our financial position or results of operations. |
Changes in Estimates
Changes in Estimates | 6 Months Ended |
Jun. 30, 2022 | |
Changes in Estimates [Abstract] | |
Change In Estimate [Text Block] | . Changes in Estimates The Company has a periodic forecasting process in which management assesses the progress and performance of the Company’s programs. This process requires management to review each program’s progress by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated revenues and costs for the accounting contracts (and options, if applicable), and any outstanding contract matters. Risks and opportunities include but are not limited to management’s judgment about the cost associated with the Company’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product), and any other program requirements. Due to the span of years it may take to completely satisfy the performance obligations for the accounting contracts (and options, if any) and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs is subject to many variables and, accordingly, is subject to change based upon judgment. When adjustments in estimated total consideration or estimated total cost are required, any changes from prior estimates for fully satisfied performance obligations 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 production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work, and contract modifications. During the second quarter ended June 30, 2022, the Company recognized unfavorable changes in estimates of $71.7, which included net forward loss charges of $63.7, and unfavorable cumulative catch-up adjustments related to periods prior to the second quarter of 2022 of $8.0. The forward losses in the second quarter relate primarily to increased cost estimates for production rate decreases and build schedule changes, supply chain costs, and other costs on the B787 program, and anticipated production recovery costs related to the bankruptcy of a supplier and associated failure to deliver key parts on the A220 wing program . Forward loss charges were also recorded on the A350 program driven by production schedule changes received from our customer, increased labor costs, and increased non-recurring engineering and tooling costs. The forward loss charges for the second quarter of 2022 also include, t o a lesser extent than the aforementioned B787, A220, and A350 programs impacts, i ncreased cost projections on the RB3070, B747, B767, Bombardier Challenger 650, and Bell V280 programs, and a partial offset related to the release of a previously recorded forward loss provision that was impacted by the suspension of activities in Russia noted above . See Note 1 Organization, Basis of Interim Presentation and Recent Developments . The unfavorable cumulative catch-up adjustments for the second quarter ended June 30, 2022 primarily relate to the B737 and A320 programs. Increased cost estimates on the B737 program were driven by production schedule changes, parts shortages, and increased supply chain costs. The A320 program unfavorable cumulative catch-up adjustment was driven by production cost overruns experienced and estimates of the impact of production schedule changes, increased material cost, increased freight cost, and increased labor and overhead cost. During the second quarter ended July 1, 2021, the Company recognized unfavorable changes in estimates of $42.3, which included net forward loss charges of $52.2, and favorable cumulative catch-up adjustments related to periods prior to the second quarter of 2021 of $9.9. The favorable cumulative catch-up adjustment was driven by a change in the estimate of production costs on the B737 program. The forward losses in the second quarter ended July 1, 2021 related primarily to the B787 program, driven by engineering analysis and the estimated cost of rework, and also included additional loss on the A350 program related to changes to production schedule and estimated quality improvement costs, and loss on the B767 program due to cost performance. For the Three Months Ended For the Six Months Ended Changes in Estimates June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 (Unfavorable) Favorable Cumulative Catch-up Adjustment by Segment Commercial $ (7.9) $ 10.5 $ (25.2) $ (0.4) Defense & Space (0.1) (0.6) 0.8 0.5 Aftermarket — — — — Total (Unfavorable) Favorable Cumulative Catch-up Adjustment $ (8.0) $ 9.9 $ (24.4) $ 0.1 Changes in Estimates on Loss Programs (Forward Loss) by Segment Commercial $ (59.4) $ (51.2) $ (85.2) $ (118.8) Defense & Space (4.3) (1.0) (2.3) (5.8) Aftermarket — — — — Total Changes in Estimates (Forward Loss) on Loss Programs $ (63.7) $ (52.2) $ (87.5) $ (124.6) Total Change in Estimate $ (71.7) $ (42.3) $ (111.9) $ (124.5) EPS Impact (diluted per share based upon applicable forecasted effective tax rate) $ (0.63) $ (0.42) $ (0.98) $ (1.22) |
Accounts Receivable and Allowan
Accounts Receivable and Allowance for Credit Losses Accounts Receivable and Allowance for Credit Loss (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | . Accounts Receivable and Allowance for Credit Losses Accounts Receivable, net Accounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. Unbilled receivables are reflected under contract assets on the Condensed Consolidated Balance Sheet. See also Allowance for Credit Losses, below . Accounts receivable, net consists of the following: June 30, December 31, Trade receivables $ 565.2 $ 412.0 Other 27.0 58.1 Less: allowance for credit losses (10.9) (8.5) Accounts receivable, net $ 581.3 $ 461.6 Other receivables as of December 31, 2021 in the table above included an amount related to the Department of Transportation’s approval of the Company’s grant claim filed under the Aviation Manufacturing Jobs Protection Program, a component of the American Rescue Plan Act of 2021. This program provides funding for a portion of the compensation costs of certain categories of employees for up to six months. In return, the Company is required to make several commitments, including a commitment that the Company will not involuntarily furlough or lay off employees within those categories of employees during the same six-month period. As of December 31, 2021, the Company's other receivable balance, noted in the table above, included $37.7 for the program, reflecting the amount that had not yet been paid of the full amount of the award of $75.5. As of June 30, 2022, the amount in other receivables was $0, reflecting a payment of $37.7 received in the six months ended June 30, 2022. The full amount of the award has been amortized against Cost of sales on the Condensed Consolidated Statements of Operations as of June 30, 2022. The Company has agreements (through its subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus Group SE and its affiliates (collectively, “Airbus”), and Rolls-Royce PLC and its affiliates (collectively, “Rolls-Royce”) to third-party financial institutions. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and they continue to allow the Company to monetize the receivables prior to their payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of the applicable customer’s financial condition. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being derecognized from the Company's balance sheet. For the six months ended June 30, 2022, $1,309.6 of accounts receivable were sold via these arrangements. The proceeds from these sales of receivables are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows. The recorded net loss on sale of receivables was $6.5 for the six months ended June 30, 2022 and is included in Other income and expense. See Note 21 Other Income (Expense), Net . Allowance for Credit Losses During the six months ended June 30, 2022, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material. |
Contract with customer, asset a
Contract with customer, asset and liability (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
contract with customer, asset and liability [Text Block] | Contract Assets and Contract Liabilities Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets, current are those that are expected to be billed to our customer within 12 months. Contract assets, long-term are those that are expected to be billed to our customer over periods greater than 12 months. No impairments to contract assets were recorded for the period ended June 30, 2022 or the period ended July 1, 2021. See also Note 5, Accounts Receivable and Allowance for Credit Losses . Contract liabilities are established for cash received in excess of revenues recognized and are contingent upon the satisfaction of performance obligations. Contract liabilities primarily consist of cash received on contracts for which revenue has been deferred since the receipts are in excess of transaction price resulting from the allocation of consideration based on relative standalone selling price to future units (including those under option that the Company believes are likely to be exercised) with prices that are lower than standalone selling price. These contract liabilities will be recognized earlier if the options are not fully exercised, or immediately, if the contract is terminated prior to the options being fully exercised. June 30, 2022 December 31, 2021 Change Contract assets $ 483.6 $ 443.2 $ 40.4 Contract liabilities (360.4) (387.0) 26.6 Net contract assets (liabilities) $ 123.2 $ 56.2 $ 67.0 For the period ended June 30, 2022, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $52.1 of revenue that was included in the contract liability balance at the beginning of the period. July 1, 2021 December 31, 2020 Change Contract assets $ 358.7 $ 372.8 $ (14.1) Contract liabilities (387.4) (469.6) 82.2 Net contract assets (liabilities) $ (28.7) $ (96.8) $ 68.1 For the period ended July 1, 2021, the decrease in contract assets reflects the net impact of less over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | June 30, 2022 December 31, 2021 Change Contract assets $ 483.6 $ 443.2 $ 40.4 Contract liabilities (360.4) (387.0) 26.6 Net contract assets (liabilities) $ 123.2 $ 56.2 $ 67.0 |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22, Segment Information . The following tables show disaggregated revenues for the periods ended June 30, 2022 and July 1, 2021: For the Three Months Ended For the Six Revenue June 30, July 1, June 30, July 1, Contracts with performance obligations satisfied over time $ 933.0 $ 763.2 $ 1,762.7 $ 1,412.4 Contracts with performance obligations satisfied at a point in time 324.9 238.9 669.9 490.5 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Customer June 30, July 1, June 30, July 1, Boeing $ 762.2 $ 561.8 $ 1,409.4 $ 1,029.7 Airbus 281.1 244.6 585.0 476.2 Other 214.6 195.7 438.2 397.0 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Location June 30, July 1, June 30, July 1, United States $ 907.5 $ 708.4 $ 1,731.0 $ 1,332.6 International United Kingdom 158.2 141.0 328.0 277.3 Other 192.2 152.7 373.6 293.0 Total International 350.4 293.7 701.6 570.3 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 Remaining Performance Obligations Unsatisfied, or partially unsatisfied, performance obligations that are expected to be recognized in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below: Remaining in 2022 2023 2024 2025 and After Unsatisfied performance obligations $ 2,119.3 $ 4,237.6 $ 4,062.5 $ 708.8 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of raw materials used in the production process, work-in-process, which is direct material, direct labor, overhead and purchases, and capitalized pre-production costs. Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. Capitalized pre-production costs include certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis. These costs are typically amortized over a period that is consistent with the satisfaction of the underlying performance obligations to which these relate. June 30, December 31, Raw materials $ 323.0 $ 301.4 Work-in-process (1) 937.3 999.1 Finished goods 60.9 56.9 Product inventory 1,321.2 1,357.4 Capitalized pre-production 24.6 25.2 Total inventory, net $ 1,345.8 $ 1,382.6 (1) Work-in-process inventory includes direct labor, direct material, overhead, and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized over time using an input method. For the periods ended June 30, 2022 and December 31, 2021, work-in-process inventory includes $341.4 an d $381.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the periods. Product inventory, summarized in the table above, is shown net of valuation reserves of $87.2 and $54.9 as of June 30, 2022 and December 31, 2021, respectively. The increase in reserves from the prior period includes reserves recorded against inventory as of June 30, 2022 that were impacted by the suspension of activities in Russia noted above. See Note 1 Organization, Basis of Interim Presentation and Recent Developments . Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for three and six months ended June 30, 2022 includes period expense of $44.9 and $94.7, respectively, for excess capacity production costs related to temporary B737 MAX, A220 and A320 production schedule changes. Cost of sales also includes abnormal costs related to temporary workforce adjustments as a result of COVID-19 production pause, net of the U.S. employee retention credit and U.K. government subsidies for the three and six months ended June 30, 2022 of $0.0 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consists of the following: June 30, December 31, Land $ 29.7 $ 30.7 Buildings (including improvements) 1,243.4 1,242.0 Machinery and equipment 2,332.5 2,276.5 Tooling 1,049.0 1,051.1 Capitalized software 328.8 323.0 Construction-in-progress 77.8 117.1 Total 5,061.2 5,040.4 Less: accumulated depreciation (2,800.3) (2,654.9) Property, plant and equipment, net $ 2,260.9 $ 2,385.5 Capitalized interest was $0.5 and $1.7 for the three months ended June 30, 2022 and July 1, 2021, respectively, and $1.9 and $3.1 for the six months ended June 30, 2022 and July 1, 2021, respectively. Repair and maintenance costs are expensed as incurred. The Company recognized repair and maintenance costs of $36.4 and $32.2 for the three months ended June 30, 2022 and July 1, 2021, respectively, and $71.3 and $66.6 for the six months ended June 30, 2022 and July 1, 2021, 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 $6.5 and $3.5 for the three months ended June 30, 2022 and July 1, 2021, respectively, and $11.5 and $7.6 for the six months ended June 30, 2022 and July 1, 2021, respectively. The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. F or the period ended June 30, 2022, there were no events which would require the Company to update its impairment analysis . |
Leases (Notes)
Leases (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in right-of-use (“ROU”) assets (long-term), short-term operating lease liabilities, and long-term operating lease liabilities on the Company’s Condensed Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, current maturities of long-term debt, and long-term debt. ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the balance sheet. The aggregate amount of lease cost for leases with a term of 12 months or less is not material. The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease components as a single lease component. A portfolio approach is applied to effectively account for the ROU assets and liabilities for those specific leases referenced above. The Company does not have any material leases containing variable lease payments or residual value guarantees. The Company also does not have any material subleases. The Company currently has operating and finance leases for items such as manufacturing facilities, corporate offices, manufacturing equipment, transportation equipment, and vehicles. The majority of the Company's active leases have remaining lease terms that range between less than one year to 18 years, some of which include options to extend the leases for up to 30 years, and some of which include options to terminate the leases within one year. Components of lease expense: For the Three For the Six June 30, July 1, June 30, July 1, Operating lease cost $ 3.3 $ 2.5 $ 6.6 $ 5.0 Finance lease cost: Amortization of assets 8.2 6.4 16.3 12.4 Interest on lease liabilities 1.6 1.9 3.3 3.5 Total net lease cost $ 13.1 $ 10.8 $ 26.2 $ 20.9 Supplemental cash flow information related to leases was as follows: For the Three For the Six June 30, July 1, June 30, July 1, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3.2 $ 2.3 $ 6.3 $ 4.7 Operating cash flows from finance leases $ 1.6 $ 1.9 $ 3.3 $ 3.5 Financing cash flows from finance leases $ 11.4 $ 9.9 $ 22.5 $ 18.8 ROU assets obtained in exchange for lease obligations: Operating leases $ 0.8 $ 15.8 $ 1.2 $ 16.8 Supplemental balance sheet information related to leases: June 30, 2022 December 31, 2021 Finance leases: Property and equipment, gross $ 269.9 $ 266.1 Accumulated amortization (89.1) (73.1) Property and equipment, net $ 180.8 $ 193.0 The weighted average remaining lease term as of June 30, 2022 for operating and finance leases was 35.1 years and 4.6 years, respectively. The weighted average discount rate as of June 30, 2022 for operating and finance leases was 5.6% and 4.5%, respectively. The weighted average remaining lease term as of December 31, 2021 for operating and finance leases was 36.3 years and 4.9 years, respectively. The weighted average discount rate as of December 31, 2021 for operating and finance leases was 5.6% and 4.5%, respectively. See Note 15, Debt , for current and non-current finance lease obligations. There has not been a significant impact on terms, costs, cash flows, or balance sheet value of leases, including any impairment of lease assets, as a result of the COVID-19 pandemic. As of June 30, 2022, remaining maturities of lease liabilities were as follows: 2022 2023 2024 2025 2026 2027 and thereafter Total Lease Payments Less: Imputed Interest Total Lease Obligations Operating Leases $ 6.3 $ 11.8 $ 11.4 $ 10.8 $ 8.9 $ 154.8 $ 204.0 $ (122.5) $ 81.5 Financing Leases $ 23.7 $ 43.8 $ 35.5 $ 23.1 $ 15.8 $ 19.8 $ 161.7 $ (16.3) $ 145.4 As of June 30, 2022, the Company had additional operating and financing lease commitments that have not yet commenced of approximately $0.3 and $59.0, respectively, f or manufacturing equipment, software, and facilities that are in various phases of construction or customization for the Company's |
Advance Payments and Deferred R
Advance Payments and Deferred Revenue/Credits | 3 Months Ended |
Jun. 30, 2022 | |
Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments | Advance Payments Advances on the B787 Program. Boeing has made advance payments to Spirit under the B787 Special Business Provisions and General Terms Agreement (collectively, the “B787 Supply Agreement”) that are required to be repaid to Boeing by way of offset against the purchase price for future shipset deliveries. Advance repayments were initially scheduled to be spread evenly over the remainder of the first 1,000 B787 shipsets delivered to Boeing. On April 8, 2014, Spirit signed a memorandum of agreement with Boeing that suspended advance repayments related to the B787 program for a period of twelve months beginning April 1, 2014. Repayment recommenced on April 1, 2015, and any repayments that otherwise would have become due during such twelve-month period will offset the purchase price for shipsets 1,001 through 1,120. On December 21, 2018, Spirit signed a memorandum of agreement with Boeing that again suspended the advance repayments beginning with line unit 818. The advance repayments will resume at a lower rate of $0.45 per shipset at line number 1135 and continue through line number 1605. In the event Boeing does not take delivery of a sufficient number of shipsets to repay the full amount of advances prior to the termination of the B787 program or the B787 Supply Agreement, any advances not then repaid will be applied against any outstanding payments then due by Boeing to us, and any remaining balance will be repaid in annual installments of $27 due on December 15th of each year until the advance payments have been fully recovered by Boeing. As of June 30, 2022, the amount of advance payments received from Boeing under the B787 Supply Agreement and not yet repaid was approximately $211.2. Advances on the B737 Program. In an effort to minimize the disruption to Spirit's operations and its supply chain, Spirit and Boeing entered into a Memorandum of Agreement on April 12, 2019 (the "2019 MOA"), which included the terms and conditions for an advance payment to be made from Boeing to Spirit in the amount of $123, which was received during the third quarter of 2019. The parties entered into another memorandum of agreement on February 6, 2020 (the "2020 MOA"), which extended the repayment date of the $123 advance received by Spirit under the 2019 MOA to 2022. The 2020 MOA also required Boeing to pay $225 to Spirit in the first quarter of 2020, consisting of (i) $70 in support of Spirit's inventory and production stabilization, of which $10 was repaid by Spirit in 2021, and (ii) $155 as an incremental pre-payment for costs and shipset deliverie s over the next two years. On February 9, 2021, Spirit signed a letter of agreement under which Boeing paid $38.5 to Spirit in the first quarter of 2021, which consisted of (i) $68.5 as additional pre-payment for the c osts and shipset deliveries less the (ii) $30 credit owed to Boeing for rate-based pricing premium. During the six-month period ended June 30, 2022, $61.5 of the advance payment was repaid. A s of June 30, 2022 , the amount of advance payments received from Boeing and not yet repaid was $61.5 . Other. The Advance payments, short-term line item on the Condensed Consolidated Balance Sheet for the period ended June 30, 2022 includes $18.9 related to payments received from an Aftermarket segment customer for contracted work that was impacted by the sanctions imposed by the U.S. and other governments on Russia following its invasion of Ukraine. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB’s authoritative guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. At June 30, 2022, the Company’s long-term debt includes a senior secured term loan and senior notes described further under Note 15 Debt . 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. See also Note 14 Derivative and Hedging Activities, and Note 16 Pension and Other Post-Retirement Benefits. June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Senior secured term loan B (including current portion) $ 592.8 $ 578.0 (2) $ 595.2 $ 595.2 (2) Senior notes due 2023 299.5 281.1 (1) 299.3 303.6 (1) Senior secured first lien notes due 2025 496.0 461.5 (1) 495.3 513.3 (1) Senior secured second lien notes due 2025 1,189.2 1,110.2 (1) 1,187.5 1,252.4 (1) Senior notes due 2026 298.6 255.7 (1) 298.4 307.5 (1) Senior notes due 2028 695.6 518.7 (1) 695.2 697.4 (1) Total $ 3,571.7 $ 3,205.2 $ 3,570.9 $ 3,669.4 (1) Level 1 Fair Value hierarchy |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities Derivatives Accounted for as Hedges Cash Flow Hedges - Interest Rate Swaps The Company has traditionally entered into interest rate swap agreements to reduce its exposure to the variable rate portion of its long-term debt. As of December 31, 2020, the Company had one interest rate swap agreement, designated as cash flow hedge, with a notional value of $150. In February, 2021, the Company terminated the swap agreement. The Company had no interest rate swaps outstanding during the six-month period ended June 30, 2022. Changes in the fair value of cash flow hedges are recorded in Accumulated Other Comprehensive Income ("AOCI") and recorded in earnings in the period in which the hedged transaction occurs. No gain or loss was recognized in AOCI for the three or six months ended July 1, 2021. For the three and six months ended July 1, 2021 a loss of $0.0 and $0.4, respectively, was reclassified from AOCI to earnings, and included in the interest expense line item on the Condensed Consolidated Statements of Operations, and in operating activities on the Condensed Consolidated Statements of Cash Fl ows. For the three and six months ended July 1, 2021 a loss of $0.0 and $0.7, respectively, was reclassified from AOCI to earnings resulting from the termination of a swap agreement, and included in the other income line item on the Condensed Consolidated Statements of Operations, and in operating activities on the Condensed Consolidated Statements of Cash Flows. Cash Flow Hedges – Foreign Currency Forward Contract The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British Pound Sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through March 2023. The following table summarizes the notional amounts (representing the gross contract/notional amount of the derivatives outstanding) and fair values of the derivative instruments in the Condensed Consolidated Balance Sheets as of June 30, 2022, and December 31, 2021. The foreign currency exchange contracts are measured within Level 1 of the Fair Value hierarchy. See Note 13 Fair Value Measurements . Notional amount Other assets Other liabilities June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 166.0 $ 167.7 $ — $ — $ 13.3 $ 2.0 Total derivatives at fair value $ — $ — $ 13.3 $ 2.0 Changes in the fair value of cash flow hedges are recorded in AOCI and recorded in earnings in the period in which the hedged transaction settles. The gain (loss) recognized in AOCI associated with our hedging transactions is presented in the following table: Three Months Ended Six Months Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Recognized in total other comprehensive loss: Foreign currency exchange contracts $ (13.1) $ (0.5) $ (17.0) $ 0.7 The following table summarizes the gains/(losses) associated with our hedging transactions reclassified from AOCI to earnings: Three Months Ended Six Months Ended June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 Foreign currency exchange contracts: Other income (expense) $ (4.1) $ — $ (5.6) $ — Within the next 12 months, the Company expects to recognize a loss of $13.3 in earnings related to the foreign currency forward contracts. As of June 30, 2022, the maximum term of the hedged forecasted transaction was 9 months. Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. Derivatives Not Accounted for as Hedges During the six months ended June 30, 2022, the Company entered into foreign currency forward contracts in the amount of $291.5 to minimize the risk of currency exchange rate movements on the Company's planned settlement of the repayable |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt shown on the Condensed Consolidated Balance Sheets is comprised of the following: June 30, 2022 December 31, 2021 Current Noncurrent Current Noncurrent Senior secured term loan B $ 5.9 $ 586.9 $ 5.9 $ 589.3 Senior notes due 2023 299.5 — — 299.3 Senior secured first lien notes due 2025 — 496.0 — 495.3 Senior secured second lien notes due 2025 — 1,189.2 — 1,187.5 Senior notes due 2026 — 298.6 — 298.4 Senior notes due 2028 — 695.6 — 695.2 Present value of finance lease obligations 40.7 104.7 42.2 122.9 Other 1.6 53.8 1.4 54.8 Total $ 347.7 $ 3,424.8 $ 49.5 $ 3,742.7 Credit Agreement On October 5, 2020, Spirit entered into a term loan credit agreement (the “Credit Agreement”) providing for a $400.0 senior secured term loan B credit facility with the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent. On October 5, 2020, Spirit borrowed the full amount of initial term loans available under the Credit Agreement. On November 15, 2021, the Company entered into a first refinancing, incremental assumption and amendment agreement (the “November 2021 Amendment”) to the Credit Agreement (the Credit Agreement as amended by the November 2021 Amendment, the “Amended Credit Agreement”). The November 2021 Amendment provides for, among other things, (i) the refinancing of the $397.0 aggregate principal amount of term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the November 2021 Amendment (the “Existing Term Loans”) with term loans in an equal principal amount with a lower interest rate (the “Repriced Term Loans”) and (ii) an incremental term loan facility of $203.0 in aggregate principal amount with the same terms as the Repriced Term Loans (the "Incremental Term Loans" and, together with the Repriced Term Loans, the “Term Loans”). The obligations under the Amended Credit Agreement are guaranteed by Holdings and Spirit AeroSystems North Carolina, Inc., a wholly-owned subsidiary of the Company (“Spirit NC”), (collectively, the “Guarantors”) and each existing and future, direct and indirect, wholly-owned material domestic subsidiary of Spirit, subject to certain customary exceptions. The obligations are secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. As of June 30, 2022 , the outstanding balance of the Credit Agreement was $595.5 and the carrying value was $592.8. As of June 30, 2022 , the Company was in compliance with all covenants in the Credit Agreement. First Lien 2025 Notes On October 5, 2020, Spirit entered into an Indenture (the “First Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $500.0 aggregate principal amount of its 5.500% Senior Secured First Lien Notes due 2025 (the “First Lien 2025 Notes"). The First Lien 2025 Notes are guaranteed by the Guarantors and secured by certain real property and personal property, including certain equity interests, owned by Spirit and the Guarantors. As of June 30, 2022 , the outstanding balance of the First Lien 2025 Notes was $500.0 and the carrying value was $496.0. 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. On October 5, 2020, Spirit entered into a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”), by and among Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with 2026 Notes. Under the Fourth Supplemental Indenture, the holders of the 2026 Notes were granted security on an equal and ratable basis with the holders of the First Lien 2025 Notes and the secured parties under the Credit Agreement. As of June 30, 2022, the outstanding balance of the 2026 Notes was $300.0 and the carrying value was $298.6. Second Lien 2025 Notes On April 17, 2020, Spirit entered into an Indenture (the “Second Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $1,200.0 aggregate principal amount of its 7.500% Senior Secured Second Lien Notes due 2025 (the “Second Lien 2025 Notes”). The Second Lien 2025 Notes mature on April 15, 2025 and bear interest at a rate of 7.500% per year payable semiannually in cash in arrears on April 15 and October 15 of each year. The first interest payment date was October 15, 2020. The Second Lien 2025 Notes are guaranteed by the Guarantors and secured by certain real property and personal property, including certain equity interests, owned by Spirit and the Guarantors. As of June 30, 2022 , the outstanding balance of the Second Lien 2025 Notes was $1,200.0 and the carrying value was $1,189.2. 2023 and 2028 Notes On May 30, 2018, Spirit entered into an Indenture (the “2018 Indenture”) by and among Spirit, the Company and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with Spirit’s offering of $300.0 aggregate principal amount of its Senior Floating Rate Notes due 2021 (the “Floating Rate Notes”), $300.0 aggregate principal amount of its 3.950% Senior Notes due 2023 (the “2023 Notes”) and $700.0 aggregate principal amount of its 4.600% Senior Notes due 2028 (the “2028 Notes” and, together with the Floating Rate Notes and the 2023 Notes, the “2018 Notes”). Holdings guaranteed Spirit’s obligations under the 2018 Notes on a senior unsecured basis. On February 24, 2021, Spirit redeemed the outstanding $300.0 principal amount of the Floating Rate Notes. As of June 30, 2022 , the outstanding balance of the Floating Rate Notes was $0. As of June 30, 2022 , the outstanding balance of the 2023 Notes and the 2028 Notes was $300.0 and $700.0, respectively, and the carrying value was $299.5 and $695.6, respectively. As of June 30, 2022, the Company was in compliance with all covenants contained in the indentures governing the First Lien 2025 Notes, 2026 Notes, Second Lien 2025 Notes, 2023 Notes and 2028 Notes. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits Defined Benefit Plan (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits [Text Block] | Pension and Other Post-Retirement Benefits Defined Benefit Plans For the Three Months Ended For the Six Components of Net Periodic Pension Expense (Income) June 30, July 1, June 30, July 1, Service cost $ 0.8 $ 10.9 $ 1.2 $ 21.7 Interest cost 13.9 13.8 29.1 27.5 Expected return on plan assets (33.5) (39.6) (70.3) (79.0) Amortization of net loss 2.1 — 2.1 — Settlement loss — (0.1) (1.4) (0.1) Net periodic pension expense (income) $ (16.7) $ (15.0) $ (39.3) $ (29.9) Other Benefits For the Three For the Six Components of Other Benefit Expense (Income) June 30, July 1, June 30, July 1, Service cost $ 0.2 $ 0.2 $ 0.4 $ 0.4 Interest cost 0.2 0.1 0.3 0.2 Amortization of prior service cost (0.2) (0.2) (0.4) (0.4) Amortization of net gain (0.4) (0.4) (0.7) (0.8) Net periodic other benefit expense (income) $ (0.2) $ (0.3) $ (0.4) $ (0.6) The components of net periodic pension expense (income) and other benefit expense, other than the service cost component, are included in other income (expense) in the Company's Condensed Consolidated Statements of Operations. As disclosed in the Company's 2021 Form 10-K, effective October 1, 2021, the Company spun off a portion of the existing Pension Value Plan ("PVP A"), called PVP B. As part of the PVP B plan termination process, a lump sum offering was provided during 2021 for PVP B participants and the final asset distribution was completed in the first quarter of 2022. At June 30, 2022 , a pension reversion asset of $70.3 is recorded on the Restricted plan assets line item on the Company’s Condensed Consolidated Balance Sheets. Restricted plan assets are expected to be reduced over the next seven years as they are distributed to employees under a qualified compensation and benefit program. Restricted plan assets are valued at fair value with gain or loss on fair value adjustments recognized within other income. The underlying investments' fair value measurement levels under the FASB's authoritative guidance on fair value measurements are Level 2, see Note 13 Fair Value Measurements . Separately, during the three and six months ended June 30, 2022, the Company withdrew $34.0 of cash from PVP B, which represented an excess plan assets reversion. This transaction was accounted for as a negative contribution, and is included on the Pension plans employer contributions line item on the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022. Excise tax of $6.8 related to the reversion of excess plan assets was separately recorded to the Other income (expense), net line item on the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022. See also Note 21 Other Income (Expense), Net. Employer Contributions |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The process for calculating the Company’s income tax expense involves estimating actual current taxes due plus assessing temporary differences arising from differing treatment for tax and accounting purposes that are recorded as deferred tax assets and liabilities. Deferred tax assets are periodically evaluated to determine their recoverability and whether a valuation allowance is necessary. 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 assesses 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. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding our prior earnings history, including the forward losses previously recognized in the U.S., the Company recorded an incremental valuation allowance against U.S. deferred tax assets of $43.5 for the six month period ended June 30, 2022. As of June 30, 2022, the total net U.S. deferred tax asset before the valuation allowance was $331.4 and the total net U.S. valuation allowance was $339.7. The net U.S. deferred tax liability after valuation allowances was $8.3. The change from December 31, 2021 is additional valuation allowance recognized on the deferred tax assets generated from the 2022 activity. The Company has determined a valuation allowance on certain U.K. deferred tax assets is needed based upon cumulative losses generated in the U.K. Increases in the valuation allowances recorded against U.K. deferred tax assets in the six month period ended June 30, 2022 were $4.3. This is comprised of $2.8 related to other comprehensive income ("OCI") and $1.5 from continuing operations, including utilization of NOL's. As of June 30, 2022, the total net U.K. deferred tax asset before the valuation allowance was $248.4 and the total net U.K. valuation allowance was $244.9. The net U.K. deferred tax asset after valuation allowance was $3.5. The Company files income tax returns in all jurisdictions in which it operates. The Company establishes reserves to provide for additional income taxes that may be due upon audit. These reserves are established based on management’s assessment as to the potential exposure attributable to permanent tax adjustments and associated interest. All tax reserves are analyzed quarterly and adjustments made as events occur that warrant modification. In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share-based compensation, finalizing amounts in income tax returns filed, finalizing audit examinations for open tax years and expiration of statutes of limitations, and changes in tax law. T he 7.67% effectiv e tax rate for the six months ended June 30, 2022 differs from the (2.44%) effective tax rate for the same period of 2021 primarily due to the release of valuation allowance on U.K. deferred tax assets for projected U.K. group relief. As the Company is currently reporting a pre-tax loss for the six months ended June 30, 2022, an increase in the effective tax rate results in an increase of income tax benefits while a decrease in the rate results in a reduction of income tax benefits. As of June 30, 2022 , the Company had deferred $16.5 of employer payroll taxes, as allowed by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which are required to be deposited by December 2022. As of June 30, 2022 , the Company had recorded an estimated pre-tax employee retention credit of approximately $18.8 related to calendar year 2020 and $1.0 related to calendar year 2021. In addition, as of June 30, 2022, the Company has fully paid $31.8 of previously deferred value added tax payments under the U.K. deferral scheme . The Company's federal audit for the 2020 tax year is substantially complete under the Internal Revenue Service Compliance Assurance Program ("CAP"). The Company will continue to participate in the CAP program for the 2021 and 2022 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. The Company has an open tax audit in the Kingdom of Morocco for the tax years ended prior to the Company's ownership of the Moroccan legal entity. There are ongoing audits in other jurisdictions that are not |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity 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. Diluted earnings per share includes any dilutive impact of RSUs, DRSUs, RSAs, and PBRSUs. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of June 30, 2022, no treasury shares have been reissued or retired. The number of treasury stock shares as of June 30, 2022 includes a minor adjustment related to the October 19, 2021 court ruling described in Note 20, Commitments, Contingencies and Guarantees for certain shares that were previously awarded to the Company’s former Chief Executive Officer that were not settled in stock per the terms of the ruling . The total authorization amount remaining under the current share repurchase program is approximately $925.0. During the six-month period ended June 30, 2022, the Company did not repurchase any shares of its Common Stock under this share repurchase program. Share repurchases are currently on hold. T he Credit Agreement imposes restrictions on the Company’s ability to repurchase shares. The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended June 30, 2022 July 1, 2021 Income Shares Per Share Income Shares Per Share Basic EPS Loss available to common stockholders $ (122.2) 104.6 $ (1.17) $ (135.3) 104.2 $ (1.30) Income allocated to participating securities — — — — Net loss $ (122.2) $ (135.3) Diluted potential common shares — — Diluted EPS Net loss $ (122.2) 104.6 $ (1.17) $ (135.3) 104.2 $ (1.30) For the Six Months Ended June 30, 2022 July 1, 2021 Income Shares Per Share Income Shares Per Share Basic EPS Loss available to common stockholders $ (175.0) 104.5 $ (1.67) $ (306.9) 104.2 $ (2.95) Income allocated to participating securities — — — — Net loss $ (175.0) $ (306.9) Diluted potential common shares — — Diluted EPS Net loss $ (175.0) 104.5 $ (1.67) $ (306.9) 104.2 $ (2.95) Included in the outstanding Common Stock were 0.4 million and 1.2 million of issued but unvested shares at June 30, 2022 and July 1, 2021, respectively, which are excluded from the basic Earnings Per Share ("EPS") calculation. Common shares of 0.5 million and 0.7 million, respectively, were excluded from diluted EPS as a result of incurring a net loss for the three and six months ended June 30, 2022 , as the effect would have been antidilutive. Additionally, diluted EPS for the three and six months ended June 30, 2022 excludes 0.3 million shares that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Common shares of 1.0 million and 1.2 million, respectively, were excluded from diluted EPS as a result of incurring a net loss for the three and six months ended July 1, 2021, as the effect would have been antidilutive. Additionally, diluted EPS for the three and six months ended July 1, 2021 excludes 0.2 million and 0.2 million shares, respectively, that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of June 30, 2022 December 31, 2021 Pension $ 30.0 $ 26.6 SERP/Retiree medical 11.3 12.1 Derivatives - foreign currency hedge (13.3) (2.0) Foreign currency impact on long-term intercompany loan (16.2) (12.2) Currency translation adjustment (94.8) (48.2) Total accumulated other comprehensive loss $ (83.0) $ (23.7) |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2022 | |
Commitments Contingencies And Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation On February 10, 2020, February 24, 2020, and March 24, 2020, three separate private securities class action lawsuits were filed against the Company in the U.S. District Court for the Northern District of Oklahoma, its Chief Executive Officer, Tom Gentile III, former Chief Financial Officer, Jose Garcia, and former Controller (principal accounting officer), John Gilson. On April 20, 2020, the Class Actions were consolidated by the court (the “Consolidated Class Action”), and on July 20, 2020, the plaintiffs filed a Consolidated Class Action Complaint which added Shawn Campbell, the Company’s former Vice President for the 737NG and B737 MAX program, as a defendant. Allegations in the Consolidated Class Action include (i) violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder against the Company and Messrs. Gentile, Garcia and Gilson, (ii) violations of Section 20(a) of the Exchange Act against the individual defendants, and (iii) violations of Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) promulgated thereunder against all defendants. On June 11, 2020, a shareholder derivative lawsuit (the “Derivative Action 1”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the U.S. District Court for the Northern District of Oklahoma. Allegations in the Derivative Action 1 include (i) breach of fiduciary duty, (ii) abuse of control, and (iii) gross mismanagement. On October 5, 2020, a shareholder derivative lawsuit (the “Derivative Action 2” and, together with Derivative Action 1, the “Derivative Actions”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the Eighteenth Judicial District, District Court of Sedgwick County, Kansas. Allegations in the Derivative Action 2 include (i) breach of fiduciary duty, (ii) waste of corporate assets, and (iii) unjust enrichment. The facts underlying the Consolidated Class Action and Derivative Actions relate to the accounting process compliance independent review (the “Accounting Review”) discussed in the Company’s January 30, 2020 press release and described under Management's Discussion and Analysis of Financial Condition and Results of Operations - Accounting Review in Part II, Item 7 of the Annual Report on Form 10-K for the year ended December 31, 2019, and its resulting conclusions. The Company voluntarily reported to the SEC the determination that, with respect to the third quarter of 2019, the Company did not comply with its established accounting processes related to potential third quarter contingent liabilities received after the quarter-end. On March 24, 2020, the Staff of the SEC Enforcement Division informed the Company that it had determined to close its inquiry without recommending any enforcement action against the Company. In addition, the facts underlying the Consolidated Class Action and Derivative Actions relate to the Company’s disclosures regarding the B737 MAX grounding and Spirit’s production rate (and related matters) after the grounding. On September 18, 2020, the Company and individual defendants filed a motion to dismiss the Consolidated Class Action. That motion was granted by the U.S. District Court on January 7, 2022, which denied leave to amend and dismissed the Consolidated Class Action with prejudice. On February 4, 2022, the plaintiffs in the Consolidated Class Action appealed this decision to the Tenth Circuit Court of Appeals. In the appellate proceedings, both parties have filed briefs in support of their respective positions. The Company and the individual defendants have denied, and continue to deny, the allegations in the Consolidated Class Action and the Derivative Actions. Spirit is also involved in litigation with its former Chief Executive Officer related to a disputed violation of restrictive covenants in his retirement agreement. On October 19, 2021, the U.S. District Court for the District of Kansas ruled in favor of the former Chief Executive Officer and awarded him $44.8 for benefits withheld in connection with the disputed violation. The Company has appealed this decision to the Tenth Circuit Court of Appeals, which is still pending. A liability for the full amount of the award, plus accrued interest, has been recognized in the Consolidated Balance Sheets as of December 31, 2021 and June 30, 2022. 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. In addition to the items addressed above, from time to time, the Company is subject to, and is presently involved in, litigation, legal proceedings, or other claims 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, the Company believes that, on a basis of information presently available, none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. Customer and Vendor Claims The Company receives, and is currently subject to, customer and vendor claims arising in the ordinary course of business, including, but not limited to, those related to product quality and late delivery. The Company accrues for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, we take into consideration multiple factors including without limitation our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of an unfavorable outcome, and the severity of any potential loss. The Company has evaluated and refined management’s original estimate of costs related to rework on the B787 aircraft, including a preliminary assessment related to rework on the forward section of the fuselage, for which the Company identified an additional fit and finish issue in the prior year. The Company continues to coordinate with Boeing to ensure that all necessary rework is performed. The Company cannot reasonably estimate the amount of any potential claims related to this issue at this time. On June 25, 2022, the Company received notice of a claim from a key customer related to product quality and onsite manufacturing support. The Company cannot reasonably estimate the amount of any potential loss due to various reasons, including, among others: (i) that there is uncertainty as to the outcome of this claim, (ii) that there may be significant factual, commercial, and/or legal issues to be resolved, and (iii) the availability of data required to complete an assessment of the potential loss. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the factual and 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. However, it is possible that the Company’s results of operations in a specific period could be materially affected by one or more of these other matters. Guarantees Outstanding guarantees were $14.4 and $15.9 at June 30, 2022 and December 31, 2021, respectively. Restricted Cash - Collateral Requirements The Company was required to maintain $19.5 and $19.5 of restricted cash as of June 30, 2022 and December 31, 2021, respectively, related to certain collateral requirements for obligations under its workers’ compensation programs. The restricted cash is included in "Restricted cash" and “Other assets” in the Company’s Condensed Consolidated Balance Sheets. Indemnification The Company has entered into customary indemnification agreements with its non-employee directors, and its bylaws and certain executive employment agreements include indemnification and advancement provisions. Pursuant to the terms of the bylaws and, with respect to Jose Garcia, his employment agreement, the Company is providing Messrs. Garcia and Gilson and all other individual defendants with defense costs and provisional indemnity with respect to the Consolidated Class Action and Derivative Actions, as appropriate. Under the bylaws and any applicable 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, the Company considers other factors including the experience of other entities in the same business and management judgment, among others. Service warranty and extraordinary rework is reported in Current liabilities and Other liabilities on the Company's Condensed Consolidated Balance Sheets. 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 $2.3 as of June 30, 2022 and December 31, 2021. These specific provisions represent the Company’s best estimate of probable warranty claims. 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 additional charges that exceed these recorded provisions. 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 significant judgment. The amount of the reasonably possible disputed warranty claims in excess of the specific warranty provision was $3.4 as of June 30, 2022 and December 31, 2021. The following is a roll forward of the service warranty and extraordinary rework balance at June 30, 2022: Balance, December 31, 2021 $ 71.3 Charges to costs and expenses 0.8 Payouts (1.7) Exchange rate (0.6) Balance, June 30, 2022 $ 69.8 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net is summarized as follows: For the Three For the Six June 30, July 1, June 30, July 1, Kansas Development Finance Authority bond $ 0.7 $ 0.7 $ 1.3 $ 1.6 Foreign currency (losses) gains (1) 12.3 1.4 27.2 (7.5) Loss on foreign currency forward contract (4.7) — (4.0) — Loss on sale of accounts receivable (4.1) (1.4) (6.5) (3.0) Pension income 17.9 26.4 41.3 52.5 Excise tax on pension assets reversion (2) (6.8) — (6.8) — Other (3) 19.3 4.0 19.8 0.3 Total $ 34.6 $ 31.1 $ 72.3 $ 43.9 (1) Foreign currency gains and losses are due to the impact of movement in foreign currency exchange rates on long-term contractual rights/obligations, as well as cash and both trade and intercompany receivables/payables that are denominated in a currency other than the entity’s functional currency. (2) Excise tax related to the reversion of excess plan assets for the three and six months ended June 30, 2022. See Note 16 Pension and Other Post-Retirement Benefits (3) The three and six months ended June 30, 2022 include a $20.7 gain related to a deed of release and related cash payment that fully settled the existing repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy. The repayable investment obligation, which was denominated in GBP, was included on the Company’s Consolidated Balance Sheet as of December 31, 2021, as $41.7 recorded to "Other current liabilities" and $301.9 recorded to "Other non-current liabilities". In January 2022, the Company made repayments of $25.6 to the UK’s Department for Business Energy and Industrial Strategy for units sold, including interest, in respect to the agreement. In April 2022, the deed of release settled the remaining outstanding repayment obligation, including current year interest accrual and foreign currency measurement impacts, in exchange for a payment of $292.8. The portion of the payments related to interest expense and the portion of the payments related to principal repayment are included in net cash used in operating activities and net cash used in financing activities, respectively, on the Company's Condensed Consolidated Statement of Cash Flows for the period ended June 30, 2022. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in three principal segments: Commercial, Defense & Space and Aftermarket. Approximately 83% and 82% of the Company's net revenues for the three and six months ended June 30, 2022, respectively, came from the Company's two largest customers, Boeing and Airbus. Boeing represents a substantial portion of the Company's revenues across segments. Airbus represents a substantial portion of revenues in the Commercial segment. The Company's primary profitability measure to review a segment’s operating performance is segment operating income before corporate selling, general and administrative expenses, and research and development. 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. 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 Commercial segment includes design and manufacturing of forward, mid and rear fuselage sections and systems, struts/pylons, nacelles (including thrust reversers) and related engine structural components, wings and wing components (including flight control surfaces), as well as other miscellaneous structural parts for large commercial aircraft and/or business/regional jets. Sales from this segment are primarily to the aircraft OEMs or engine OEMs of large commercial aircraft and/or business/regional jet programs. Approximately 62% and 58% of Commercial segment net revenues came from the Company's contracts with Boeing for the six months ended June 30, 2022, and July 1, 2021, respectively. Approximately 30% and 32% of Commercial segment net revenues came from the Company's contracts with Airbus for the six months ended June 30, 2022, and July 1, 2021, respectively. The Commercial segment manufactures products at the Company's facilities in Wichita, Kansas; Tulsa, Oklahoma; Kinston, North Carolina; Prestwick, Scotland; Casablanca, Morocco; Belfast, Northern Ireland; and Subang, Malaysia. The Commercial segment also includes an assembly plant for the A350 XWB aircraft in Saint-Nazaire, France. The Company's Defense & Space segment includes design and manufacturing of fuselage, strut, nacelle, and wing aerostructures (primarily) for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker, which are commercial aircraft that are modified for military use. The segment also includes fabrication, bonding, assembly, testing tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles and hypersonics work, including solid rocket motor throats and nozzles and re-entry vehicle thermal protections systems, forward cockpit and cabin, and fuselage work on rotorcraft aerostructures. Sales from this segment are primarily to the prime contractors on various U.S. Government defense program contracts for which the Company is a sub-contractor. A significant portion of the Company's Defense & Space segment revenues are represented by defense business that is classified by the U.S. Government and cannot be specifically described. A significant portion of Defense & Space segment net revenues came from the Company's contracts with two individual customers for the six months ended June 30, 2022, and July 1, 2021. The Defense & Space segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Biddeford, ME; Belfast, Northern Ireland; and Prestwick, Scotland. The Company's Aftermarket segment includes design, manufacturing, and marketing of spare parts and MRO services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repair, and other repair and overhaul (MRO) services. Approximately 47% and 45% of Aftermarket segment net revenues came from the Company's contracts with a single customer for the six months ended June 30, 2022, and July 1, 2021, respectively. The Aftermarket segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Kinston, North Carolina; Dallas, TX; Prestwick, Scotland; Casablanca, Morocco; and Belfast, Northern Ireland. 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 Operating income 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 loss for the three and six months ended June 30, 2022 and July 1, 2021: Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, Segment Revenues Commercial $ 1,031.1 $ 803.6 $ 1,969.5 $ 1,499.7 Defense & Space 146.4 141.8 304.9 295.2 Aftermarket 80.4 56.7 158.2 108.0 $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 Segment Operating Income (Loss) Commercial (1) $ (45.1) $ (44.7) $ (48.5) $ (127.6) Defense & Space (2) 13.7 12.4 33.7 24.4 Aftermarket (3) 11.8 14.8 29.8 25.6 $ (19.6) $ (17.5) $ 15.0 $ (77.6) SG&A (70.2) (66.9) (134.7) (124.5) Research and development (14.9) (13.3) (27.2) (21.5) Total operating loss $ (104.7) $ (97.7) $ (146.9) $ (223.6) (1) The three and six months ended June 30, 2022 include the impact of $23.9 of the total charge, mentioned above, in relation to the suspension of activities in Russia. See Note 1 Organization, Basis of Interim Presentation and Recent Developments . The three and six months ended June 30, 2022 include excess capacity production costs of $43.1 and $89.9, respectively, related to the temporary B737 MAX and A220 production schedule changes, abnormal costs of $0.0 and $9.5, respectively, for temporary workforce adjustments as a result of COVID-19 production pause, net of U.S. employee retention credit and U.K. government subsidies, and net $0.0 and ($25.5), respectively, of restructuring costs and other costs, including partial offset related to the Aviation Manufacturing Jobs Protection Program grant (AMJP). The three and six months ended July 1, 2021 include $45.5 and $108.6, respectively, of excess capacity cost, $2.4 and $4.5, respectively, of temporary workforce adjustment costs as a result of the COVID-19 pandemic net of U.S. employee retention credit and U.K government subsidies, and $4.9 and $6.0, respectively, of restructuring costs. (2) The three and six months ended June 30, 2022 include excess capacity production costs of $1.8 and $4.8, respectively, related to the temporary B737 production schedule changes, and $0.0 and ($2.3), respectively, of restructuring costs and partial offset related to AMJP. The three and six months ended July 1, 2021 include excess capacity cost of $2.0 and $6.5, respectively, related to the B737 production schedule adjustment, and $0.2 and $1.1, respectively, of restructuring costs. (3) The three and six months ended June 30, 2022 include the impact of $4.2 of the total charge, mentioned above, in relation to the suspension of activities in Russia. See Note 1 Organization, Basis of Interim Presentation and Recent Developments |
Restructuring Charges (Notes)
Restructuring Charges (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Costs The Company's results of operations for both the three and six months ended June 30, 2022 and July 1, 2021 include restructuring costs related to actions the Company has taken to align costs to updated production levels that have been directed by the Company's customers (restructuring activity). Largely beginning in the first quarter of 2020, the Company's customers, including Boeing and Airbus, significantly reduced their overall production rates as a result of the COVID-19 pandemic and, in the case of Boeing, the B737 MAX grounding. The restructuring activity materially affected the scope of operations and manner in which business is conducted by the Company compared to periods prior to the restructuring activities. Restructuring costs are presented separately as a component of operating loss on the Condensed Consolidated Statements of Operations. The total restructuring costs for the three and six months ended June 30, 2022 were $0.0 and $0.2, respectively, and are included in segment operating margins for the Commercial Segment. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | In July 2022 the Company adopted and communicated to participants a plan to terminate the Company's Pension Value Plan A ("PVP A"). As further described in the Company's 2021 Form 10-K, the PVP A consists of pension plans which were frozen as of the date Holdings became a standalone company and commenced operations. In relation to the termination, the Company expects to recognize a non-cash, pre-tax non-operating charge for increased periodic benefit costs of approximately $74 in the third quarter of 2022, related to an enhancement to benefits the Company is providing to certain U.S. employees in conjunction with the plan termination. In connection with this termination, the Company expects to recognize non-cash pre-tax non-operating settlement charges of at least $180, related to the accelerated recognition of actuarial losses for the plan that was included in stockholders' equity. These approximate charges are dependent upon finalization of the actuarial assumptions, including discount rate, investment rate of return, and benefit payment selections, as of the measurement date of the settlement, which will take place between the third quarter of 2022 and first quarter of 2023, and could be materially different once the assumptions are finalized. Once these actions are complete, the Company anticipates an after-tax reversion of any remaining surplus, which will take place in the second quarter of 2023. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | . New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022, and an entity may elect to apply ASU 2020-04 for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. An entity may elect to apply ASU 2020-04 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. To date, the Company has not had a modification to which the application of this guidance is applicable. The Company will continue evaluating the potential impact of adopting this guidance on its consolidated financial statements . In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). The amendments in the update require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy, including 1) the nature of the transactions and the related accounting policy used, 2) the line items on the balance sheet and income statement that are affected and the amounts applicable to each financial statement line item; and 3) significant terms and conditions of the transactions. ASU 2021-10 is effective for all entities within its scope for financial statements issued for annual periods beginning after December 15, 2021. Early application is permitted. An entity should apply ASU 2021-10 either prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions entered into after the date of initial application, or retrospectively to those transactions. |
Accounts Receivable and Allow_2
Accounts Receivable and Allowance for Credit Losses Allowance for Credit Losses (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Credit Loss [Abstract] | |
Credit Loss, Financial Instrument [Text Block] | Allowance for Credit Losses During the six months ended June 30, 2022, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material. |
Leases (Policies)
Leases (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in right-of-use (“ROU”) assets (long-term), short-term operating lease liabilities, and long-term operating lease liabilities on the Company’s Condensed Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, current maturities of long-term debt, and long-term debt. ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the balance sheet. The aggregate amount of lease cost for leases with a term of 12 months or less is not material. The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease |
Other Assets goodwill (Policies
Other Assets goodwill (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Goodwill is summarized as follows: Changes in Goodwill Balance Balance at Balance at Segment December 31, Acquisitions Adjustments/Other Currency Exchange June 30, Commercial $ 296.8 $ — $ — $ (0.3) $ 296.5 Defense & Space $ 5.5 $ — $ — $ — $ 5.5 Aftermarket $ 321.4 $ — $ — $ — $ 321.4 $ 623.7 $ — $ — $ (0.3) $ 623.4 The total goodwill value includes no a ccumulated impairment loss in any of the periods present ed. The Company assesses goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. F or the period ended June 30, 2022, there were no events or circumstances which would require the Company to update its goodwill impairment analysis. Intangible assets are summarized as follows: June 30, December 31, Intangible assets Favorable leasehold interests 2.8 2.8 Developed technology asset 92.0 92.0 Customer relationships intangible asset 137.2 137.2 Total intangible assets $ 232.0 $ 232.0 Less: Accumulated amortization - favorable leasehold interest (2.0) (1.9) Accumulated amortization - developed technology asset (11.9) (8.8) Accumulated amortization - customer relationship (13.1) (9.0) Intangible assets, net $ 205.0 $ 212.3 The amortization for each of the five succeeding years relating to intangible assets currently recorded in the Condensed Consolidated Balance Sheets and the weighted average amortization is estimated to be the following as of June 30, 2022: Year Customer relationships Favorable leasehold interest Developed Technology Total remaining in 2022 $ 4.0 $ 0.1 $ 3.1 $ 7.2 2023 8.1 0.1 6.1 14.3 2024 8.1 0.1 6.1 14.3 2025 8.1 0.1 6.1 14.3 2026 8.1 0.1 6.1 14.3 2027 8.1 0.1 6.1 14.3 Weighted average amortization period 15.9 years 7.0 years 13.1 years 14.8 years |
Changes in Estimates Changes in
Changes in Estimates Changes in Estimates (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Changes in estimates are summarized below: For the Three Months Ended For the Six Months Ended Changes in Estimates June 30, 2022 July 1, 2021 June 30, 2022 July 1, 2021 (Unfavorable) Favorable Cumulative Catch-up Adjustment by Segment Commercial $ (7.9) $ 10.5 $ (25.2) $ (0.4) Defense & Space (0.1) (0.6) 0.8 0.5 Aftermarket — — — — Total (Unfavorable) Favorable Cumulative Catch-up Adjustment $ (8.0) $ 9.9 $ (24.4) $ 0.1 Changes in Estimates on Loss Programs (Forward Loss) by Segment Commercial $ (59.4) $ (51.2) $ (85.2) $ (118.8) Defense & Space (4.3) (1.0) (2.3) (5.8) Aftermarket — — — — Total Changes in Estimates (Forward Loss) on Loss Programs $ (63.7) $ (52.2) $ (87.5) $ (124.6) Total Change in Estimate $ (71.7) $ (42.3) $ (111.9) $ (124.5) EPS Impact (diluted per share based upon applicable forecasted effective tax rate) $ (0.63) $ (0.42) $ (0.98) $ (1.22) |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consists of the following: June 30, December 31, Trade receivables $ 565.2 $ 412.0 Other 27.0 58.1 Less: allowance for credit losses (10.9) (8.5) Accounts receivable, net $ 581.3 $ 461.6 |
Revenue (Tables)
Revenue (Tables) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,257.9 | $ 1,002.1 | $ 2,432.6 | $ 1,902.9 |
Boeing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 762.2 | 561.8 | 1,409.4 | 1,029.7 |
Airbus [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 281.1 | 244.6 | 585 | 476.2 |
Other Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 214.6 | 195.7 | 438.2 | 397 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 907.5 | 708.4 | 1,731 | 1,332.6 |
UNITED KINGDOM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 158.2 | 141 | 328 | 277.3 |
Other International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 192.2 | 152.7 | 373.6 | 293 |
Total International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 350.4 | $ 293.7 | $ 701.6 | $ 570.3 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | Work-in-process inventory includes direct labor, direct material, overhead, and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized over time using an input method. For the periods ended June 30, 2022 and December 31, 2021, work-in-process inventory includes $341.4 an d $381.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the periods. Product inventory, summarized in the table above, is shown net of valuation reserves of $87.2 and $54.9 as of June 30, 2022 and December 31, 2021, respectively. The increase in reserves from the prior period includes reserves recorded against inventory as of June 30, 2022 that were impacted by the suspension of activities in Russia noted above. See Note 1 Organization, Basis of Interim Presentation and Recent Developments . Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for three and six months ended June 30, 2022 includes period expense of $44.9 and $94.7, respectively, for excess capacity production costs related to temporary B737 MAX, A220 and A320 production schedule changes. Cost of sales also includes abnormal costs related to temporary workforce adjustments as a result of COVID-19 production pause, net of the U.S. employee retention credit and U.K. government subsidies for the three and six months ended June 30, 2022 of $0.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consists of the following: June 30, December 31, Land $ 29.7 $ 30.7 Buildings (including improvements) 1,243.4 1,242.0 Machinery and equipment 2,332.5 2,276.5 Tooling 1,049.0 1,051.1 Capitalized software 328.8 323.0 Construction-in-progress 77.8 117.1 Total 5,061.2 5,040.4 Less: accumulated depreciation (2,800.3) (2,654.9) Property, plant and equipment, net $ 2,260.9 $ 2,385.5 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets | Other current assets are summarized as follows: June 30, December 31, Prepaid expenses $ 24.6 $ 20.7 Income tax receivable 1.0 14.0 Other assets - short-term 5.8 5.0 Total other current assets $ 31.4 $ 39.7 Other assets are summarized as follows: June 30, December 31, Deferred financing Deferred financing costs $ 0.9 $ 0.9 Less: Accumulated amortization - deferred financing costs (0.7) (0.6) Deferred financing costs, net $ 0.2 $ 0.3 Other Supply agreements (1) $ 7.6 $ 9.2 Equity in net assets of affiliates 2.1 0.8 Restricted cash - collateral requirements 19.5 19.5 Rotables 41.4 38.3 Other 28.5 23.5 Total other long-term assets $ 99.3 $ 91.6 (1) Certain payments accounted for as consideration paid by the Company to a customer are being amortized as reductions to net revenues. |
Other Assets Intangible Assets
Other Assets Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets are summarized as follows: June 30, December 31, Intangible assets Favorable leasehold interests 2.8 2.8 Developed technology asset 92.0 92.0 Customer relationships intangible asset 137.2 137.2 Total intangible assets $ 232.0 $ 232.0 Less: Accumulated amortization - favorable leasehold interest (2.0) (1.9) Accumulated amortization - developed technology asset (11.9) (8.8) Accumulated amortization - customer relationship (13.1) (9.0) Intangible assets, net $ 205.0 $ 212.3 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The amortization for each of the five succeeding years relating to intangible assets currently recorded in the Condensed Consolidated Balance Sheets and the weighted average amortization is estimated to be the following as of June 30, 2022: Year Customer relationships Favorable leasehold interest Developed Technology Total remaining in 2022 $ 4.0 $ 0.1 $ 3.1 $ 7.2 2023 8.1 0.1 6.1 14.3 2024 8.1 0.1 6.1 14.3 2025 8.1 0.1 6.1 14.3 2026 8.1 0.1 6.1 14.3 2027 8.1 0.1 6.1 14.3 Weighted average amortization period 15.9 years 7.0 years 13.1 years 14.8 years |
Other Assets Goodwill (Tables)
Other Assets Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill is summarized as follows: Changes in Goodwill Balance Balance at Balance at Segment December 31, Acquisitions Adjustments/Other Currency Exchange June 30, Commercial $ 296.8 $ — $ — $ (0.3) $ 296.5 Defense & Space $ 5.5 $ — $ — $ — $ 5.5 Aftermarket $ 321.4 $ — $ — $ — $ 321.4 $ 623.7 $ — $ — $ (0.3) $ 623.4 The total goodwill value includes no a ccumulated impairment loss in any of the periods present ed. The Company assesses goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. F |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Carrying Amount And Estimated Fair Value Of Long Term Debt | The following table presents the carrying amount and estimated fair value of long-term debt. See also Note 14 Derivative and Hedging Activities, and Note 16 Pension and Other Post-Retirement Benefits. June 30, 2022 December 31, 2021 Carrying Fair Carrying Fair Senior secured term loan B (including current portion) $ 592.8 $ 578.0 (2) $ 595.2 $ 595.2 (2) Senior notes due 2023 299.5 281.1 (1) 299.3 303.6 (1) Senior secured first lien notes due 2025 496.0 461.5 (1) 495.3 513.3 (1) Senior secured second lien notes due 2025 1,189.2 1,110.2 (1) 1,187.5 1,252.4 (1) Senior notes due 2026 298.6 255.7 (1) 298.4 307.5 (1) Senior notes due 2028 695.6 518.7 (1) 695.2 697.4 (1) Total $ 3,571.7 $ 3,205.2 $ 3,570.9 $ 3,669.4 (1) Level 1 Fair Value hierarchy |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long Term Debt And Capital Lease Obligations Current And Non Current | Total debt shown on the Condensed Consolidated Balance Sheets is comprised of the following: June 30, 2022 December 31, 2021 Current Noncurrent Current Noncurrent Senior secured term loan B $ 5.9 $ 586.9 $ 5.9 $ 589.3 Senior notes due 2023 299.5 — — 299.3 Senior secured first lien notes due 2025 — 496.0 — 495.3 Senior secured second lien notes due 2025 — 1,189.2 — 1,187.5 Senior notes due 2026 — 298.6 — 298.4 Senior notes due 2028 — 695.6 — 695.2 Present value of finance lease obligations 40.7 104.7 42.2 122.9 Other 1.6 53.8 1.4 54.8 Total $ 347.7 $ 3,424.8 $ 49.5 $ 3,742.7 |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Change in projected benefit obligations | Defined Benefit Plans For the Three Months Ended For the Six Components of Net Periodic Pension Expense (Income) June 30, July 1, June 30, July 1, Service cost $ 0.8 $ 10.9 $ 1.2 $ 21.7 Interest cost 13.9 13.8 29.1 27.5 Expected return on plan assets (33.5) (39.6) (70.3) (79.0) Amortization of net loss 2.1 — 2.1 — Settlement loss — (0.1) (1.4) (0.1) Net periodic pension expense (income) $ (16.7) $ (15.0) $ (39.3) $ (29.9) Other Benefits For the Three For the Six Components of Other Benefit Expense (Income) June 30, July 1, June 30, July 1, Service cost $ 0.2 $ 0.2 $ 0.4 $ 0.4 Interest cost 0.2 0.1 0.3 0.2 Amortization of prior service cost (0.2) (0.2) (0.4) (0.4) Amortization of net gain (0.4) (0.4) (0.7) (0.8) Net periodic other benefit expense (income) $ (0.2) $ (0.3) $ (0.4) $ (0.6) The components of net periodic pension expense (income) and other benefit expense, other than the service cost component, are included in other income (expense) in the Company's Condensed Consolidated Statements of Operations. As disclosed in the Company's 2021 Form 10-K, effective October 1, 2021, the Company spun off a portion of the existing Pension Value Plan ("PVP A"), called PVP B. As part of the PVP B plan termination process, a lump sum offering was provided during 2021 for PVP B participants and the final asset distribution was completed in the first quarter of 2022. At June 30, 2022 , a pension reversion asset of $70.3 is recorded on the Restricted plan assets line item on the Company’s Condensed Consolidated Balance Sheets. Restricted plan assets are expected to be reduced over the next seven years as they are distributed to employees under a qualified compensation and benefit program. Restricted plan assets are valued at fair value with gain or loss on fair value adjustments recognized within other income. The underlying investments' fair value measurement levels under the FASB's authoritative guidance on fair value measurements are Level 2, see Note 13 Fair Value Measurements . Separately, during the three and six months ended June 30, 2022, the Company withdrew $34.0 of cash from PVP B, which represented an excess plan assets reversion. This transaction was accounted for as a negative contribution, and is included on the Pension plans employer contributions line item on the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022. Excise tax of $6.8 related to the reversion of excess plan assets was separately recorded to the Other income (expense), net line item on the Company's Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022. See also Note 21 Other Income (Expense), Net. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Basic and Diluted Earnings per share | The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended June 30, 2022 July 1, 2021 Income Shares Per Share Income Shares Per Share Basic EPS Loss available to common stockholders $ (122.2) 104.6 $ (1.17) $ (135.3) 104.2 $ (1.30) Income allocated to participating securities — — — — Net loss $ (122.2) $ (135.3) Diluted potential common shares — — Diluted EPS Net loss $ (122.2) 104.6 $ (1.17) $ (135.3) 104.2 $ (1.30) For the Six Months Ended June 30, 2022 July 1, 2021 Income Shares Per Share Income Shares Per Share Basic EPS Loss available to common stockholders $ (175.0) 104.5 $ (1.67) $ (306.9) 104.2 $ (2.95) Income allocated to participating securities — — — — Net loss $ (175.0) $ (306.9) Diluted potential common shares — — Diluted EPS Net loss $ (175.0) 104.5 $ (1.67) $ (306.9) 104.2 $ (2.95) Included in the outstanding Common Stock were 0.4 million and 1.2 million of issued but unvested shares at June 30, 2022 and July 1, 2021, respectively, which are excluded from the basic Earnings Per Share ("EPS") calculation. Common shares of 0.5 million and 0.7 million, respectively, were excluded from diluted EPS as a result of incurring a net loss for the three and six months ended June 30, 2022 , as the effect would have been antidilutive. Additionally, diluted EPS for the three and six months ended June 30, 2022 excludes 0.3 million shares that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Common shares of 1.0 million and 1.2 million, respectively, were excluded from diluted EPS as a result of incurring a net loss for the three and six months ended July 1, 2021, as the effect would have been antidilutive. Additionally, diluted EPS for the three and six months ended July 1, 2021 excludes 0.2 million and 0.2 million shares, respectively, that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of June 30, 2022 December 31, 2021 Pension $ 30.0 $ 26.6 SERP/Retiree medical 11.3 12.1 Derivatives - foreign currency hedge (13.3) (2.0) Foreign currency impact on long-term intercompany loan (16.2) (12.2) Currency translation adjustment (94.8) (48.2) Total accumulated other comprehensive loss $ (83.0) $ (23.7) |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments Contingencies And Guarantees [Abstract] | |
Service warranty roll forward | The following is a roll forward of the service warranty and extraordinary rework balance at June 30, 2022: Balance, December 31, 2021 $ 71.3 Charges to costs and expenses 0.8 Payouts (1.7) Exchange rate (0.6) Balance, June 30, 2022 $ 69.8 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income Expense Net | Other income (expense), net is summarized as follows: For the Three For the Six June 30, July 1, June 30, July 1, Kansas Development Finance Authority bond $ 0.7 $ 0.7 $ 1.3 $ 1.6 Foreign currency (losses) gains (1) 12.3 1.4 27.2 (7.5) Loss on foreign currency forward contract (4.7) — (4.0) — Loss on sale of accounts receivable (4.1) (1.4) (6.5) (3.0) Pension income 17.9 26.4 41.3 52.5 Excise tax on pension assets reversion (2) (6.8) — (6.8) — Other (3) 19.3 4.0 19.8 0.3 Total $ 34.6 $ 31.1 $ 72.3 $ 43.9 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Change In Estimate [Line Items] | ||||
Changes in Contract Estimates, aggregate, Affecting earnings from Continuing Operations, per Share diluted | $ (0.63) | $ (0.42) | $ (0.98) | $ (1.22) |
Change In Accounting Estimate, aggregate | $ (71.7) | $ (42.3) | $ (111.9) | $ (124.5) |
Cost of Goods and Services Sold | 1,277.5 | 1,014.4 | 2,417.4 | 1,973.2 |
Cost of Sales | Russia and Ukraine Conflict | ||||
Change In Estimate [Line Items] | ||||
Cost of Goods and Services Sold | 28.1 | |||
Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (8) | 9.9 | (24.4) | 0.1 |
Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (63.7) | (52.2) | (87.5) | (124.6) |
Commercial Segment [Member] | Cost of Sales | Russia and Ukraine Conflict | ||||
Change In Estimate [Line Items] | ||||
Cost of Goods and Services Sold | 23.9 | |||
Commercial Segment [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (7.9) | 10.5 | (25.2) | (0.4) |
Commercial Segment [Member] | Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (59.4) | (51.2) | (85.2) | (118.8) |
Defense & Space Segment [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (0.1) | (0.6) | 0.8 | 0.5 |
Defense & Space Segment [Member] | Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (4.3) | (1) | (2.3) | (5.8) |
Aftermarket Segment [Member] | Cost of Sales | Russia and Ukraine Conflict | ||||
Change In Estimate [Line Items] | ||||
Cost of Goods and Services Sold | 4.2 | |||
Aftermarket Segment [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 0 | 0 | 0 | 0 |
Aftermarket Segment [Member] | Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | $ 0 | $ 0 | $ 0 | $ 0 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 1,309.6 | $ 1,309.6 | |||
Trade receivables | 565.2 | 565.2 | $ 412 | ||
Other | 27 | 27 | 58.1 | ||
Less: allowance for doubtful accounts | (10.9) | (10.9) | (8.5) | ||
Accounts receivable, net | 581.3 | 581.3 | $ 461.6 | ||
Gain (Loss) on Sale of Accounts Receivable | $ 4.1 | $ 1.4 | $ 6.5 | $ 3 |
Contract with customer, asset_2
Contract with customer, asset and liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 1,257.9 | $ 1,002.1 | $ 2,432.6 | $ 1,902.9 | ||
Contract with Customer, Liability, Revenue Recognized | $ 52.1 | 111.9 | ||||
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22, Segment Information . The following tables show disaggregated revenues for the periods ended June 30, 2022 and July 1, 2021: For the Three Months Ended For the Six Revenue June 30, July 1, June 30, July 1, Contracts with performance obligations satisfied over time $ 933.0 $ 763.2 $ 1,762.7 $ 1,412.4 Contracts with performance obligations satisfied at a point in time 324.9 238.9 669.9 490.5 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Customer June 30, July 1, June 30, July 1, Boeing $ 762.2 $ 561.8 $ 1,409.4 $ 1,029.7 Airbus 281.1 244.6 585.0 476.2 Other 214.6 195.7 438.2 397.0 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Location June 30, July 1, June 30, July 1, United States $ 907.5 $ 708.4 $ 1,731.0 $ 1,332.6 International United Kingdom 158.2 141.0 328.0 277.3 Other 192.2 152.7 373.6 293.0 Total International 350.4 293.7 701.6 570.3 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 | |||||
Contract with Customer, Liability, Revenue Recognized | $ 52.1 | 111.9 | ||||
Contract with Customer, Asset, before Allowance for Credit Loss | 483.6 | 358.7 | 483.6 | 358.7 | $ 443.2 | $ 372.8 |
change in contract asset | 40.4 | (14.1) | ||||
Contract with Customer, Liability | (360.4) | (387.4) | (360.4) | (387.4) | $ (387) | $ (469.6) |
change in contract liability | 26.6 | 82.2 | ||||
Transferred over Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | 933 | 763.2 | 1,762.7 | 1,412.4 | ||
Transferred at Point in Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues | $ 324.9 | $ 238.9 | $ 669.9 | $ 490.5 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22, Segment Information . The following tables show disaggregated revenues for the periods ended June 30, 2022 and July 1, 2021: For the Three Months Ended For the Six Revenue June 30, July 1, June 30, July 1, Contracts with performance obligations satisfied over time $ 933.0 $ 763.2 $ 1,762.7 $ 1,412.4 Contracts with performance obligations satisfied at a point in time 324.9 238.9 669.9 490.5 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Customer June 30, July 1, June 30, July 1, Boeing $ 762.2 $ 561.8 $ 1,409.4 $ 1,029.7 Airbus 281.1 244.6 585.0 476.2 Other 214.6 195.7 438.2 397.0 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Location June 30, July 1, June 30, July 1, United States $ 907.5 $ 708.4 $ 1,731.0 $ 1,332.6 International United Kingdom 158.2 141.0 328.0 277.3 Other 192.2 152.7 373.6 293.0 Total International 350.4 293.7 701.6 570.3 Total Revenue $ 1,257.9 $ 1,002.1 $ 2,432.6 $ 1,902.9 | |||
Revenues | $ 1,257.9 | $ 1,002.1 | $ 2,432.6 | $ 1,902.9 |
Remaining in Current Year [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 2,119.3 | 2,119.3 | ||
2021 [Member] [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 4,237.6 | 4,237.6 | ||
2022 [Member] [Member] [Domain] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 4,062.5 | 4,062.5 | ||
2021 and after [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 708.8 | 708.8 | ||
Transferred over Time [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenues | 933 | 763.2 | 1,762.7 | 1,412.4 |
Transferred at Point in Time [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenues | 324.9 | 238.9 | 669.9 | 490.5 |
Boeing [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenues | 762.2 | 561.8 | 1,409.4 | 1,029.7 |
Airbus [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenues | 281.1 | 244.6 | 585 | 476.2 |
Other Customer [Member] | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenues | $ 214.6 | $ 195.7 | $ 438.2 | $ 397 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Summary Of Inventories [Abstract] | |||
Raw materials | $ 323 | $ 323 | $ 301.4 |
Work-in-process | 937.3 | 937.3 | 999.1 |
Finished goods | 60.9 | 60.9 | 56.9 |
Product inventory | 1,321.2 | 1,321.2 | 1,357.4 |
Capitalized pre-production | 24.6 | 24.6 | 25.2 |
Total inventory, net | 1,345.8 | 1,345.8 | 1,382.6 |
Inventory Valuation Reserves | 87.2 | 87.2 | 54.9 |
Costs Incurred in Anticipation of Contracts | 341.4 | 341.4 | $ 381.2 |
Excess Capacity Costs- B737MAX and A320 Production Schedules | 44.9 | 94.7 | |
Abnormal Costs- COVID19 production suspension | 0 | 9.5 | |
Inventories [Line Items] | |||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 44.9 | 94.7 | |
Abnormal Costs- COVID19 production suspension | $ 0 | $ 9.5 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Property, plant and equipment, net | ||
Land | $ 29.7 | $ 30.7 |
Buildings (including improvements) | 1,243.4 | 1,242 |
Machinery and equipment | 2,332.5 | 2,276.5 |
Tooling | 1,049 | 1,051.1 |
Capitalized software | 328.8 | 323 |
Construction-in-progress | 77.8 | 117.1 |
Total | 5,061.2 | 5,040.4 |
Less: accumulated depreciation | (2,800.3) | (2,654.9) |
Property, plant and equipment, net | $ 2,260.9 | $ 2,385.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Property Plant And Equipment Textuals [Abstract] | ||||
Capitalized interest related to construction-in-progress | $ 0.5 | $ 1.7 | $ 1.9 | $ 3.1 |
Repair and maintenance costs | 36.4 | 32.2 | 71.3 | 66.6 |
Depreciation expense related to capitalized software | $ 6.5 | $ 3.5 | $ 11.5 | $ 7.6 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | |||||
Operating Lease, Weighted Average Remaining Lease Term | 35 years 1 month 6 days | 35 years 1 month 6 days | 36 years 3 months 18 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days | 4 years 7 months 6 days | 4 years 10 months 24 days | ||
Assets and Liabilities, Lessee [Abstract] | |||||
Operating Lease, Liability, Current | $ 8.3 | $ 8.3 | $ 8.2 | ||
Operating Lease, Liability, Noncurrent | 73.2 | 73.2 | 78.8 | ||
Operating Lease, Liability | 81.5 | 81.5 | |||
finance lease, Right-of-Use Asset, gross | 269.9 | 269.9 | 266.1 | ||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | (89.1) | (89.1) | (73.1) | ||
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 180.8 | 180.8 | 193 | ||
Finance Lease, Liability, Current | 40.7 | 40.7 | 42.2 | ||
Finance Lease, Liability, Noncurrent | 104.7 | 104.7 | $ 122.9 | ||
Finance Lease, Liability | 145.4 | 145.4 | |||
Lessee, Operating Lease, Lease Not yet Commenced, Description | 0.3 | 0.3 | |||
Lessee, Finance Lease, Lease Not yet Commenced, Description | $ 59 | $ 59 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 5.60% | 5.60% | 5.60% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.50% | 4.50% | ||
Finance Lease, Liability, Payment, Due [Abstract] | |||||
Finance Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 23.7 | $ 23.7 | |||
Finance Lease, Liability, to be Paid, Year Two | 43.8 | 43.8 | |||
Finance Lease, Liability, to be Paid, Year Three | 35.5 | 35.5 | |||
Finance Lease, Liability, to be Paid, Year Four | 23.1 | 23.1 | |||
Finance Lease, Liability, to be Paid, Year Five | 15.8 | 15.8 | |||
Finance Lease, Liability, to be Paid, after Year Five | 19.8 | 19.8 | |||
Finance Lease, Liability, Payment, Due | 161.7 | 161.7 | |||
Lease Imputed Interest Due- Financing | (16.3) | (16.3) | |||
Cash Flow, Operating Activities, Lessee [Abstract] | |||||
Operating lease cost | 3.2 | $ 2.3 | 6.3 | $ 4.7 | |
Finance Lease, Interest Payment on Liability | 1.6 | 1.9 | 3.3 | 3.5 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 0.8 | 15.8 | 1.2 | 16.8 | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | 6.3 | 6.3 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Two | 11.8 | 11.8 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Three | 11.4 | 11.4 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Four | 10.8 | 10.8 | |||
Lessee, Operating Lease, Liability, to be Paid, Year Five | 8.9 | 8.9 | |||
Lessee, Operating Lease, Liability, to be Paid, after Year Five | 154.8 | 154.8 | |||
Lessee, Operating Lease, Liability, to be Paid | 204 | 204 | |||
Lease Imputed Interest Due- Operating | (122.5) | (122.5) | |||
Lease, Cost [Abstract] | |||||
Operating Lease, Cost | 3.3 | 2.5 | 6.6 | 5 | |
Finance Lease, Right-of-Use Asset, Amortization | 8.2 | 6.4 | 16.3 | 12.4 | |
Finance Lease, Interest Expense | 1.6 | 1.9 | 3.3 | 3.5 | |
Lease, Cost | 13.1 | 10.8 | 26.2 | 20.9 | |
Cash Flow, Financing Activities, Lessee [Abstract] | |||||
Finance Lease, Principal Payments | 11.4 | $ 9.9 | 22.5 | $ 18.8 | |
Lessee, Finance Lease, Not yet Commenced, Description [Abstract] | |||||
Lessee, Operating Lease, Lease Not yet Commenced, Description | 0.3 | 0.3 | |||
Lessee, Finance Lease, Lease Not yet Commenced, Description | $ 59 | $ 59 | |||
Lessee, Finance Lease, Lease Not yet Commenced, Description | for manufacturing equipment, software, and facilities that are in various phases of construction or customization for the Company's ultimate use, with lease terms between 3 and 15 years. The Company’s involvement in the construction and design process for these assets is generally limited to project management. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Jul. 01, 2021 | Dec. 31, 2020 | |
Other Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 232 | $ 232 | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 7.2 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 14.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 14.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 14.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 14.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 14.3 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 14 years 9 months 18 days | |||
Intangible assets | ||||
Deferred financing costs, net | $ 0.2 | 0.3 | ||
Goodwill | 623.4 | 623.7 | ||
Equity in net assets of affiliates | 2.1 | 0.8 | ||
Customer Supply Agreement | 7.6 | 9.2 | ||
Restricted Cash, Noncurrent | 19.5 | 19.5 | $ 19.5 | $ 19.5 |
Rotable assets | 41.4 | 38.3 | ||
Other | 28.5 | 23.5 | ||
Total other long-term assets | 99.3 | 91.6 | ||
Prepaid Expense, Current | 24.6 | 20.7 | ||
Income Taxes Receivable, Current | 1 | 14 | ||
Other Assets, Miscellaneous, Current | 5.8 | 5 | ||
Intangible Assets, Net (Excluding Goodwill) | 205 | 212.3 | ||
Other Assets, Current | 31.4 | 39.7 | ||
Patents [Member] | ||||
Other Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 4 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 8.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 8.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 8.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 8.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 8.1 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years 10 months 24 days | |||
Favorable Leasehold [Member] | ||||
Other Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | $ 2.8 | 2.8 | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 0.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 0.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 0.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 0.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 0.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 0.1 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 7 years | |||
Intangible assets | ||||
Less: Accumulated amortization | $ (2) | (1.9) | ||
Debt issuance costs [Member] | ||||
Intangible assets | ||||
Deferred financing costs | 0.9 | 0.9 | ||
Less: Accumulated amortization-deferred financing costs | (0.7) | (0.6) | ||
Developed Technology [Member] | ||||
Other Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 92 | 92 | ||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 3.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 6.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 6.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 6.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 6.1 | |||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 6.1 | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 13 years 1 month 6 days | |||
Intangible assets | ||||
Less: Accumulated amortization | $ (11.9) | (8.8) | ||
Customer Relationships | ||||
Other Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 137.2 | 137.2 | ||
Intangible assets | ||||
Less: Accumulated amortization | $ (13.1) | $ (9) |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill | $ 623.4 | $ 623.7 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Period Increase (Decrease) | (0.3) | |
Aftermarket Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 321.4 | 321.4 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Period Increase (Decrease) | 0 | |
Defense & Space Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 5.5 | 5.5 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Period Increase (Decrease) | 0 | |
Commercial Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 296.5 | $ 296.8 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Period Increase (Decrease) | $ (0.3) |
Advance Payments and Deferred_2
Advance Payments and Deferred Revenue/Credits (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
advance payments [Line Items] | ||
Customer advances- B787 program | $ 211.2 | |
Customer advances- B737 program | 61.5 | |
Customer advances- Irkut program | 18.9 | |
Total Payment [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | $ 123 | |
Total Payment [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | 225 | |
Production Stabilization [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | 70 | |
To be repaid in 2021 [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | 10 | |
Prepayment of shipset deliveries [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | 68.5 | $ 155 |
Credit for rate-based pricing. | ||
advance payments [Line Items] | ||
Customer advances- B737 program | 30 | |
Net advance payment | ||
advance payments [Line Items] | ||
Customer advances- B737 program | $ 38.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | $ 3,571.7 | $ 3,570.9 |
Fair Value | 3,205.2 | 3,669.4 |
Secured Debt Term B [Member] | ||
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | 586.9 | 589.3 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 592.8 | 595.2 |
Fair Value | 578 | 595.2 |
Senior Unsecured Notes Due 2023 [Domain] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 299.5 | 299.3 |
Fair Value | 281.1 | 303.6 |
Senior Unsecured Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | 298.6 | 298.4 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 298.6 | 298.4 |
Fair Value | 255.7 | 307.5 |
Senior Secured Second Lien Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | 1,189.2 | 1,187.5 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 1,189.2 | 1,187.5 |
Fair Value | 1,110.2 | 1,252.4 |
Senior Unsecured Notes Due 2028 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 695.6 | 695.2 |
Fair Value | 518.7 | 697.4 |
Senior Secured Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Secured Long-term Debt, Noncurrent | 496 | 495.3 |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 496 | 495.3 |
Fair Value | $ 461.5 | $ 513.3 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 02, 2020 | Dec. 31, 2021 | |
Interest Rate Swaps | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 0 | $ 0 | $ 0 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 13.3 | 13.3 | 2 | ||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (13.1) | $ (0.5) | (17) | $ 0.7 | |
Derivative, Notional Amount | 166 | 166 | $ 167.7 | ||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 0 | $ 0 | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (13.3) | ||||
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | ||||
Derivative, Credit Risk Related Contingent Features, Existence and Nature | Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. | ||||
General Cash Flow Hedge Information [Abstract] | |||||
Objectives for Using Cash Flow Hedging Instruments | The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British Pound Sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through March 2023. | ||||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (4.1) | $ (5.6) | |||
Description of Interest Rate Cash Flow Hedge Activities | The Company has traditionally entered into interest rate swap agreements to reduce its exposure to the variable rate portion of its long-term debt. As of December 31, 2020, the Company had one interest rate swap agreement, designated as cash flow hedge, with a notional value of $150. In February, 2021, the Company terminated the swap agreement. The Company had no interest rate swaps outstanding during the six-month period ended June 30, 2022. | ||||
Description of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments Activities | During the six months ended June 30, 2022, the Company entered into foreign currency forward contracts in the amount of $291.5 to minimize the risk of currency exchange rate movements on the Company's planned settlement of the repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy. During the six-month period ended June 30, 2022, these foreign currency forward contracts were settled and new contracts were entered into in the amount of $293.7, which were also settled during the period. The Company did not designate these forward contracts as hedges or apply hedge accounting to the forward contracts. | ||||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 1.6 |
Derivative and Hedging Activi_3
Derivative and Hedging Activities (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Derivative [Line Items] | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | |
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ 4.1 | $ 5.6 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 0 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Derivatives Fair Value [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (13.3) | |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | |
Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0 | $ 0.4 |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 0 | $ 0.7 |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Other Long-term Debt, Current | $ 1.6 | $ 1.4 |
Other Long-term Debt, Noncurrent | 53.8 | 54.8 |
Long-term Debt and Lease Obligation, Current | 347.7 | 49.5 |
Long-term Debt and Lease Obligation | 3,424.8 | 3,742.7 |
Total Debt [Member] | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Long-term Debt and Lease Obligation, Current | 347.7 | 49.5 |
Long-term Debt and Lease Obligation | $ 3,424.8 | $ 3,742.7 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Proceeds from (Payments for) Other Financing Activities | $ 0 | $ 0.1 | |
Proceeds from Issuance of Senior Long-term Debt | 289.5 | $ 0 | |
Long-term Debt | 3,571.7 | $ 3,570.9 | |
Finance Lease, Liability, Noncurrent | 104.7 | 122.9 | |
Finance Lease, Liability, Current | 40.7 | 42.2 | |
Other Long-term Debt, Current | 1.6 | 1.4 | |
Other Long-term Debt, Noncurrent | $ 53.8 | 54.8 | |
Senior Unsecured Notes Due 2023 [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||
Long-term Debt | $ 299.5 | 299.3 | |
Long-term Debt, Current Maturities | 299.5 | 0 | |
Unsecured Long-term Debt, Noncurrent | $ 0 | 299.3 | |
Senior Unsecured Notes Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||
Long-term Debt | $ 298.6 | 298.4 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Secured Long-term Debt, Noncurrent | $ 298.6 | 298.4 | |
Senior Secured Second Lien Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
Long-term Debt | $ 1,189.2 | 1,187.5 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Secured Long-term Debt, Noncurrent | $ 1,189.2 | 1,187.5 | |
Senior Unsecured Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | ||
Long-term Debt | $ 695.6 | 695.2 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Unsecured Long-term Debt, Noncurrent | 695.6 | 695.2 | |
Secured Debt Term B [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 592.8 | 595.2 | |
Long-term Debt, Current Maturities | 5.9 | 5.9 | |
Secured Long-term Debt, Noncurrent | 586.9 | 589.3 | |
Senior Secured Notes Due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 496 | 495.3 | |
Long-term Debt, Current Maturities | 0 | 0 | |
Secured Long-term Debt, Noncurrent | $ 496 | $ 495.3 |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefits Pension and Other Post-Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |
Defined Benefit Plan, Interest Cost | 0.2 | 0.1 | 0.3 | 0.2 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.2) | (0.2) | (0.4) | (0.4) |
Defined Benefit Plan, Amortization of Gain (Loss) | (0.4) | (0.4) | (0.7) | (0.8) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (0.2) | (0.3) | (0.4) | (0.6) |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0.8 | 10.9 | 1.2 | 21.7 |
Defined Benefit Plan, Interest Cost | 13.9 | 13.8 | 29.1 | 27.5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (33.5) | (39.6) | (70.3) | (79) |
Defined Benefit Plan, Amortization of Gain (Loss) | 2.1 | 0 | 2.1 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (0.1) | (1.4) | (0.1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (16.7) | $ (15) | $ (39.3) | $ (29.9) |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
LTIA AND Prior Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Company recognized total stock compensation expense, net of forfeitures | $ 10,100,000 | $ 6,800,000 | $ 18,300,000 | $ 13,400,000 |
Class A [Member] | Share-Based Payment Arrangement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date value of shares vested | $ 2,100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 65,620 | |||
Class A [Member] | Long Term Incentive Plan RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 500,053 | |||
Class A [Member] | Board of Directors Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair Value Of Shares Granted | $ 2,000,000 | |||
Class A [Member] | Board of Directors Plan [Member] | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Vested | 9,168 | |||
Number of shares granted | 22,155 | |||
Grant date value of shares vested | $ 0.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 3,113 | |||
Class A [Member] | Board of Directors Plan [Member] | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Vested | 30,761 | |||
Number of shares granted | 41,096 | |||
Grant date value of shares vested | $ 1,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,247 | |||
Class A [Member] | Performance Based LTIP RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 284,653 | |||
Fair Value Of Shares Granted | $ 22,000,000 | |||
Class A [Member] | Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Vested | 371,042 | |||
Fair Value Of Shares Granted | $ 22,500,000 | |||
Grant date value of shares vested | 19,200,000 | |||
Class A [Member] | Board of Directors Plan- Pro Rata | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair Value Of Shares Granted | $ 200,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 7.67% | (2.44%) | |
Valuation Allowance [Line Items] | |||
Deferred Income Tax Liabilities, Net | $ 9.5 | $ 21.8 | |
Rotable assets | 41.4 | $ 38.3 | |
Domestic Tax Authority | |||
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Net | 8.3 | ||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 339.7 | ||
Deferred Tax Assets, Net | 8.3 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 43.5 | ||
Deferred Tax Assets, Gross | 331.4 | ||
Foreign Tax Authority | |||
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Net | 3.5 | ||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 244.9 | ||
Deferred Tax Assets, Net | 3.5 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 4.3 | ||
Deferred Tax Assets, Gross | $ 248.4 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jul. 01, 2021 | Apr. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 925 | $ 925 | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.02 | |||||
Basic EPS | |||||||
Income available to common shareholders | $ (122.2) | $ (135.3) | $ (175) | $ (306.9) | |||
Income available to common shareholders, shares | 104,600,000 | 104,200,000 | 104,500,000 | 104,200,000 | |||
Income available to common shareholders, per share amount | $ (1.17) | $ (1.30) | $ (1.67) | $ (2.95) | |||
Income allocated to participating securities, shares | 0 | 0 | 0 | 0 | |||
Net Income (Loss) Attributable to Parent | $ (122.2) | $ (52.8) | $ (135.3) | $ (171.6) | $ (175) | $ (306.9) | |
Diluted potential common shares | 0 | 0 | 0 | 0 | |||
Diluted EPS | |||||||
Net Income (Loss) Attributable to Parent | $ (122.2) | $ (52.8) | $ (135.3) | $ (171.6) | $ (175) | $ (306.9) | |
Shares | 104,600,000 | 104,200,000 | 104,500,000 | 104,200,000 | |||
Diluted (in dollars per share) | $ (1.17) | $ (1.30) | $ (1.67) | $ (2.95) | |||
Equity Textuals [Abstract] | |||||||
Noncontrolling interest | $ 0.5 | $ 0.5 | $ 0.5 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (83) | (83) | (23.7) | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | $ 1.5 | $ (0.6) | $ 0.9 | $ (1.2) | |||
Class of Stock [Line Items] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 500,000 | 1,000,000 | 700,000 | 1,200,000 | |||
Earnings Per Share, Potentially Dilutive Securities | 0.3 | 0.2 | 0.3 | 0.2 | |||
Undistributed Earnings (Loss) Allocated to Participating Securities, Basic | $ 0 | $ 0 | $ 0 | $ 0 | |||
Pension [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 30 | 30 | 26.6 | ||||
SERP and Retiree medical [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 11.3 | 11.3 | 12.1 | ||||
Foreign currency impact on long term intercompany loan [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (16.2) | (16.2) | (12.2) | ||||
Currency translation adjustment [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (94.8) | (94.8) | (48.2) | ||||
Accumulated Foreign Exchange Forward [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (13.3) | $ (13.3) | $ (2) |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 | Dec. 31, 2021 | Jul. 01, 2021 | Dec. 31, 2020 | |
Commitments Contingencies And Guarantees [Abstract] | ||||
Restricted Cash, Noncurrent | $ 19.5 | $ 19.5 | $ 19.5 | $ 19.5 |
Service warranty roll forward | ||||
Product Warranty And Extraordinary Rework | 71.3 | |||
Charges to costs and expenses | (0.8) | |||
Product Warranty Accrual, Payments | (1.7) | |||
Product Warranty And Extraordinary Rework | 69.8 | |||
Product Warranty Extraordinary Rework Accrual Currency Translation Increase Decrease | (0.6) | |||
Commitments Contingencies And Guarantees Textuals [Abstract] | ||||
Outstanding amount of guarantees | 14.4 | $ 15.9 | ||
Product Liability Accrual, Component Amount | 2.3 | |||
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | $ 3.4 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Other Income (Loss) [Line Items] | ||||
Kansas Development Finance Authority bond | $ 0.7 | $ 0.7 | $ 1.3 | $ 1.6 |
Foreign currency (losses) gains (1) | 12.3 | 1.4 | 27.2 | (7.5) |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (4.7) | 0 | (4) | 0 |
Gain (Loss) on Sale of Accounts Receivable | (4.1) | (1.4) | (6.5) | (3) |
Pension Income (Expense) without Service Cost | 17.9 | 26.4 | 41.3 | 52.5 |
Taxes, Miscellaneous | (6.8) | 0 | (6.8) | 0 |
Other Nonoperating Income | 19.3 | 4 | 19.8 | 0.3 |
Total | $ 34.6 | $ 31.1 | $ 72.3 | $ 43.9 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jul. 01, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jul. 01, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Restructuring Charges | $ 0 | $ 5.2 | $ 0.2 | $ 7.3 |
Excess Capacity Costs- B737MAX and A320 Production Schedules | 44.9 | 94.7 | ||
Abnormal Costs- COVID19 production suspension | 0 | 9.5 | ||
Cost of Goods and Services Sold | 1,277.5 | 1,014.4 | 2,417.4 | 1,973.2 |
Segment Revenues | ||||
Segment Revenues | 1,257.9 | 1,002.1 | 2,432.6 | 1,902.9 |
Segment Operating Income | ||||
Business Segment Operating Income | (19.6) | (17.5) | 15 | (77.6) |
Segment Information Unallocated Corporate Selling General And Administrative | (70.2) | (66.9) | (134.7) | (124.5) |
Segment Information Unallocated Research And Development | (14.9) | (13.3) | (27.2) | (21.5) |
Operating loss | $ (104.7) | (97.7) | $ (146.9) | (223.6) |
Segment Reporting Information, Additional Information [Abstract] | ||||
Number Of Principal Segments | segment | 3 | |||
Percentage Of Net Revenue Derived From Two Largest Customers | 83% | 82% | ||
Cost of Sales | Russia and Ukraine Conflict | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | $ 28.1 | |||
Commercial Segment [Member] | ||||
Segment Revenues | ||||
Segment Revenues | $ 1,031.1 | 803.6 | 1,969.5 | 1,499.7 |
Segment Operating Income | ||||
Business Segment Operating Income | (45.1) | (44.7) | $ (48.5) | (127.6) |
Segment Reporting Information, Additional Information [Abstract] | ||||
Segment Reporting, Disclosure of Major Customers | Approximately 62% and 58% of Commercial segment net revenues came from the Company's contracts with Boeing for the six months ended June 30, 2022, and July 1, 2021, respectively. Approximately 30% and 32% of Commercial segment net revenues came from the Company's contracts with Airbus for the six months ended June 30, 2022, and July 1, 2021, respectively. | |||
Commercial Segment [Member] | Cost of Sales | Russia and Ukraine Conflict | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | $ 23.9 | |||
Defense & Space Segment [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 146.4 | 141.8 | 304.9 | 295.2 |
Segment Operating Income | ||||
Business Segment Operating Income | 13.7 | 12.4 | $ 33.7 | 24.4 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Segment Reporting, Disclosure of Major Customers | A significant portion of Defense & Space segment net revenues came from the Company's contracts with two individual customers for the six months ended June 30, 2022, and July 1, 2021. | |||
Aftermarket Segment [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 80.4 | 56.7 | $ 158.2 | 108 |
Segment Operating Income | ||||
Business Segment Operating Income | $ 11.8 | $ 14.8 | $ 29.8 | $ 25.6 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Segment Reporting, Disclosure of Major Customers | Approximately 47% and 45% of Aftermarket segment net revenues came from the Company's contracts with a single customer for the six months ended June 30, 2022, and July 1, 2021, respectively. | |||
Aftermarket Segment [Member] | Cost of Sales | Russia and Ukraine Conflict | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | $ 4.2 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jul. 01, 2021 | Jun. 30, 2022 | Jul. 01, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 0 | $ 5.2 | $ 0.2 | $ 7.3 |