Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 27, 2014 | Aug. 11, 2014 | |
Entity Registrant Name | 'Delta Tucker Holdings, Inc. | ' |
Entity Central Index Key | '0001514226 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 27-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 100 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | ||
Income Statement [Abstract] | ' | ' | ' | ' | ||
Revenue | $590,966 | [1] | $876,522 | [1] | $1,203,725 | $1,808,630 |
Cost of services | -534,589 | -794,573 | -1,095,080 | -1,639,699 | ||
Selling, general and administrative expenses | -32,611 | -34,148 | -66,085 | -69,692 | ||
Depreciation and amortization expense | -12,025 | -12,274 | -23,528 | -24,121 | ||
Earnings from equity method investees | 19 | 927 | 9,766 | 3,373 | ||
Impairment of goodwill, intangibles and long lived assets | -91,759 | 0 | -91,759 | 0 | ||
Operating (loss) income | -79,999 | 36,454 | -62,961 | 78,491 | ||
Interest expense | -18,184 | -19,838 | -36,201 | -39,001 | ||
Loss on early extinguishment of debt | -448 | 0 | -621 | 0 | ||
Interest income | 31 | 28 | 84 | 46 | ||
Other income (expense), net | 1,469 | -2,557 | 2,358 | -460 | ||
(Loss) income before income taxes | -97,131 | 14,087 | -97,341 | 39,076 | ||
Benefit (provision) for income taxes | 15,779 | -4,588 | 15,867 | -13,384 | ||
Net (loss) income | -81,352 | 9,499 | -81,474 | 25,692 | ||
Noncontrolling interests | -720 | -1,157 | -1,365 | -2,349 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | ($82,072) | $8,342 | ($82,839) | $23,343 | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Statements of Comprehensive (Loss) Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net (loss) income | ($81,352) | $9,499 | ($81,474) | $25,692 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Foreign currency translation adjustment | -39 | -43 | -73 | -454 |
Other comprehensive loss, before tax | -39 | -43 | -73 | -454 |
Income tax (provision) benefit related to items of other comprehensive (loss) income | -68 | 15 | 26 | 163 |
Other comprehensive loss | -107 | -28 | -47 | -291 |
Comprehensive (loss) income | -81,459 | 9,471 | -81,521 | 25,401 |
Comprehensive income attributable to noncontrolling interests | -720 | -1,157 | -1,365 | -2,349 |
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | ($82,179) | $8,314 | ($82,886) | $23,052 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Balance Sheets (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $153,413 | $170,845 |
Restricted cash | 1,659 | 1,659 |
Accounts receivable, net of allowances of $2,063 and $1,621 respectively | 483,235 | 577,136 |
Prepaid expenses and other current assets | 118,017 | 124,510 |
Total current assets | 756,324 | 874,150 |
Property and equipment, net | 23,576 | 24,120 |
Goodwill | 203,025 | 293,767 |
Tradenames, net | 43,376 | 43,464 |
Other intangibles, net | 205,050 | 225,239 |
Other assets, net | 31,832 | 39,181 |
Total assets | 1,263,183 | 1,499,921 |
Current liabilities: | ' | ' |
Accounts payable | 173,743 | 193,146 |
Accrued payroll and employee costs | 109,142 | 114,334 |
Deferred income taxes | 19,131 | 30,965 |
Accrued liabilities | 153,885 | 200,533 |
Income taxes payable | 8,020 | 14,020 |
Total current liabilities | 463,921 | 552,998 |
Long-term debt | 672,272 | 732,272 |
Long-term deferred taxes | 11,528 | 17,359 |
Other long-term liabilities | 6,852 | 7,632 |
Total liabilities | 1,154,573 | 1,310,261 |
EQUITY | ' | ' |
Common stock, $0.01 par value – 1,000 shares authorized and 100 shares issued and outstanding at June 27, 2014 and December 31, 2013, respectively | 0 | 0 |
Additional paid-in capital | 551,457 | 549,581 |
Accumulated deficit | -448,438 | -365,599 |
Accumulated other comprehensive loss | -244 | -197 |
Total equity attributable to Delta Tucker Holdings, Inc. | 102,775 | 183,785 |
Noncontrolling interests | 5,835 | 5,875 |
Total equity | 108,610 | 189,660 |
Total liabilities and equity | $1,263,183 | $1,499,921 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowances | $2,063 | $1,621 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | ||
Cash flows from operating activities | ' | ' | ||
Net (loss) income | ($81,474) | $25,692 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Depreciation and amortization | 24,002 | [1] | 24,998 | [1] |
Amortization of deferred loan costs | 3,016 | 3,533 | ||
Loss on impairment of goodwill, intangibles and long-lived assets | 91,759 | 0 | ||
Earnings from equity method investees | -10,790 | -2,385 | ||
Distributions from equity method investees | 9,588 | 3,063 | ||
Deferred income taxes | -17,772 | 2,147 | ||
Share based compensation | 1,831 | 0 | ||
Other | 1,062 | -776 | ||
Changes in assets and liabilities: | ' | ' | ||
Accounts receivable | 93,458 | 38,935 | ||
Prepaid expenses and other current assets | 6,578 | 13,242 | ||
Accounts payable and accrued liabilities | -61,739 | -54,408 | ||
Income taxes payable | -5,434 | -3,130 | ||
Net cash provided by operating activities | 54,085 | 50,911 | ||
Cash flows from investing activities | ' | ' | ||
Purchase of property and equipment | -6,448 | -1,220 | ||
Proceeds from sale of property, plant and equipment | 33 | 167 | ||
Purchase of software | -887 | -2,557 | ||
Return of capital from equity method investees | 2,884 | 769 | ||
Net cash used in investing activities | -4,418 | -2,841 | ||
Cash flows from financing activities | ' | ' | ||
Borrowings on long-term debt | 2,500 | 317,600 | ||
Payments on long-term debt | -62,500 | -318,237 | ||
Payment of deferred financing costs | 0 | 2,139 | ||
Borrowings related to financed insurance | 16,472 | 1,063 | ||
Payments related to financed insurance | -22,634 | -26,471 | ||
Payment of dividends to noncontrolling interests | -937 | -2,812 | ||
Net cash used in financing activities | -67,099 | -30,996 | ||
Net (decrease) increase in cash and cash equivalents | -17,432 | 17,074 | ||
Cash and cash equivalents, beginning of period | 170,845 | 118,775 | ||
Cash and cash equivalents, end of period | 153,413 | 135,849 | ||
Income taxes paid, net | 8,755 | 6,916 | ||
Interest paid | $33,466 | $35,844 | ||
[1] | Includes amounts included in Cost of services of $0.2 million and $0.5 million and for the three and six months ended June 27, 2014, respectively, and $0.4 million and $0.9 million for the three and six months ended June 28, 2013, respectively |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements of Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) [Member] | Total Equity Attributable to Delta Tucker Holdings, Inc. [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2012 | $445,754 | $0 | $549,322 | ($111,863) | $83 | $437,542 | $8,212 |
Balance, Shares at Dec. 31, 2012 | ' | 0 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | 23,052 | ' | 0 | 23,343 | -291 | 23,052 | 0 |
Noncontrolling interests | -2,349 | ' | 0 | 0 | 0 | 0 | -2,349 |
DIFZ financing, net of tax | 156 | ' | 156 | 0 | 0 | 156 | 0 |
Dividends declared to noncontrolling interests | -4,218 | ' | 0 | 0 | 0 | 0 | -4,218 |
Balance at Jun. 28, 2013 | 467,093 | 0 | 549,478 | -88,520 | -208 | 460,750 | 6,343 |
Balance, Shares at Jun. 28, 2013 | ' | 0 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 189,660 | 0 | 549,581 | -365,599 | -197 | 183,785 | 5,875 |
Balance, Shares at Dec. 31, 2013 | 100 | 0 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Share based compensation | 1,831 | ' | 1,831 | 0 | 0 | 1,831 | 0 |
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | -82,886 | ' | 0 | -82,839 | -47 | -82,886 | 0 |
Noncontrolling interests | -1,365 | ' | 0 | 0 | 0 | 0 | -1,365 |
DIFZ financing, net of tax | 45 | ' | 45 | 0 | 0 | 45 | 0 |
Dividends declared to noncontrolling interests | -1,405 | ' | 0 | 0 | 0 | 0 | -1,405 |
Balance at Jun. 27, 2014 | $108,610 | $0 | $551,457 | ($448,438) | ($244) | $102,775 | $5,835 |
Balance, Shares at Jun. 27, 2014 | 100 | 0 | ' | ' | ' | ' | ' |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policies | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Basis of Presentation and Accounting Policies | ' | |||||||||||||||
Basis of Presentation and Accounting Policies | ||||||||||||||||
Basis of Presentation | ||||||||||||||||
Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp International Inc., through its subsidiaries (together, "the Company"), provides defense and technical services and government outsourced solutions primarily to U.S. government agencies domestically and internationally. The Company was incorporated in the state of Delaware on April 1, 2010. Our customers include the U.S. Department of Defense ("DoD"), the U.S. Department of State ("DoS"), the U.S. Agency for International Development ("USAID"), foreign governments, commercial customers and certain other U.S. federal, state and local government departments and agencies. Unless the context otherwise indicates, references herein to "we," "our," "us," or "the Company" refer to Delta Tucker Holdings, Inc. and our consolidated subsidiaries. | ||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and our domestic and foreign subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. | ||||||||||||||||
Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that all disclosures are adequate and do not make the information presented misleading. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||
In the opinion of management, all adjustments necessary to fairly present our financial position as of June 27, 2014 and December 31, 2013, the results of operations and statements of comprehensive income for the three and six months ended June 27, 2014 and June 28, 2013 and the statements of equity and cash flows for the six months ended June 27, 2014 and June 28, 2013 have been included. The results of operations and the statements of comprehensive income for three and six months ended June 27, 2014 and June 28, 2013 and the statements of equity and cash flows for the six months ended June 27, 2014 and June 28, 2013 are not necessarily indicative of the results to be expected for the full calendar year or for any future periods. We use estimates and assumptions required for preparation of the financial statements. The estimates are primarily based on historical experience and business knowledge and are revised as circumstances change. Our actual results may differ from these estimates. | ||||||||||||||||
As described in Note 7, we are required to comply with financial maintenance covenants as specified in the Senior Credit Facility including reporting such compliance on a quarterly basis to our Administrative Agent (the "Agent"). We closely evaluate our expected ability to remain in compliance with our financial maintenance covenants. We performed a re-assessment of our projections during the second quarter of 2014 due to continued challenges in our industry and declines in our business through the first half of the year. Based on these revised projections, we believe we may not satisfy our financial maintenance covenants for the twelve month period ending December 31, 2014, unless we either obtain a waiver from our lenders or amend the terms of our Senior Credit Facility. We are currently in discussions with our Agent with respect to amending the terms of our Senior Credit Facility should we need to address the compliance with our financial maintenance covenants. If we fail to comply with our financial maintenance covenants and are unable to achieve one of these alternatives, the Agent or the lenders could declare an event of default under the Senior Credit Facility, thereby allowing them to demand immediate payment in full, of the amounts outstanding, and may terminate their obligation to make additional loans and issue new letters of credit under the Senior Credit Facility. This outcome would result in doubt in the Company’s ability to continue as a going concern. If such actions were taken by our Agent or lenders, it could also cause an event of default under our senior unsecured notes. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern and do not include any adjustments that may result from the outcome of this uncertainty. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The unaudited condensed consolidated financial statements include the accounts of both our domestic and foreign subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company has investments in joint ventures that are variable interest entities ("VIEs"). The VIE investments are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 — Consolidation. In cases where the Company has (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, the Company consolidates the entity. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. | ||||||||||||||||
We classify our equity method investees in two distinct groups based on management’s day-to-day involvement in the operations of each entity and the nature of each joint venture’s business. If the joint venture is deemed to be an extension of one of our segments and operationally integral to the business, our share of the joint venture’s earnings is reported within operating income in Earnings from equity method investees in the consolidated statement of operations. If the Company considers our involvement less significant, the share of the joint venture’s net earnings is reported in Other income, net in the consolidated statement of operations. | ||||||||||||||||
Noncontrolling interests | ||||||||||||||||
We record the impact of our partners' interest in less than wholly owned consolidated VIEs as noncontrolling interests. Currently, DynCorp International FZ-LLC ("DIFZ") is our only consolidated VIE for which we do not own 100% of the entity. We hold 25% ownership interest in DIFZ. We continue to consolidate DIFZ as we still exercise power over activities that significantly impact DIFZ’s economic performance and have the obligation to absorb losses or receive benefits of DIFZ that could potentially be significant to DIFZ. Noncontrolling interests is presented on the face of the statement of operations as an increase or reduction in arriving at net income attributable to Delta Tucker Holdings, Inc. Noncontrolling interests on the balance sheet is located in the equity section. See Note 10 for further discussion regarding DIFZ. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
We prepare our financial statements in conformity with GAAP, which requires us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the unaudited condensed consolidated statements of operations in the period that they are determined. | ||||||||||||||||
The following table presents the aggregate gross favorable and unfavorable adjustments to income before income taxes resulting from changes in contract estimates for the three and six months ended June 27, 2014 and June 28, 2013. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Gross favorable adjustments | $ | 3.7 | $ | 13 | $ | 4.3 | $ | 25.3 | ||||||||
Gross unfavorable adjustments | (2.2 | ) | (11.8 | ) | (5.4 | ) | (20.9 | ) | ||||||||
Net adjustments | $ | 1.5 | $ | 1.2 | $ | (1.1 | ) | $ | 4.4 | |||||||
Accounting Policies | ||||||||||||||||
There have been no material changes to our significant accounting policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||
Accounting Developments | ||||||||||||||||
On May 28, 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes existing revenue recognition guidance, including ASC No. 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. ASU 2014-09 outlines a single set of comprehensive principles for recognizing revenue under GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. These concepts, as well as other aspects of ASU 2014-09, may change the method and/or timing of revenue recognition for certain of our contracts. ASU 2014-09 will be effective January 1, 2017, and may be applied either retrospectively or through the use of a modified-retrospective method. We are currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the company’s consolidated financial position, results of operations and cash flows. | ||||||||||||||||
Other accounting standards updates effective after June 27, 2014 are not expected to have a material effect on the Company’s consolidated financial position or its annual results of operations and cash flows. |
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Composition of Certain Financial Statement Caption | ' | |||||||
Composition of Certain Financial Statement Captions | ||||||||
The following tables present financial information of certain consolidated balance sheet captions. | ||||||||
Prepaid expenses and other current assets — Prepaid expenses and other current assets were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Prepaid expenses | $ | 32,886 | $ | 29,611 | ||||
Income tax refunds receivable | 7,745 | 7,334 | ||||||
Inventories | 27,674 | 27,008 | ||||||
Aircraft parts inventory held on consignment | 2,324 | 2,404 | ||||||
Work-in-process inventory | 32,955 | 28,444 | ||||||
Joint venture receivables | 1,928 | 2,251 | ||||||
Assets held for sale | 2,000 | 3,017 | ||||||
Other current assets | 10,505 | 24,441 | ||||||
Total prepaid expenses and other current assets | $ | 118,017 | $ | 124,510 | ||||
Prepaid expenses include prepaid insurance, prepaid vendor deposits, and prepaid rent, none of which individually exceed 5% of current assets. | ||||||||
We value our inventory at lower of cost or market. Included in inventory as of June 27, 2014 are six helicopters, valued at $4.8 million that are currently not deployed on any existing programs. During the six months ended June 27, 2014, we sold one helicopter previously included within our inventory. We also have six helicopters classified as held for sale as of June 27, 2014 and December 31, 2013 that were previously deployed on an existing program. During the second quarter of 2014, we executed a sales agreement to sell these six helicopters for a total of $2.0 million, resulting in an impairment expense of $1.0 million, included within the Impairment of goodwill, intangibles and long-lived assets within our consolidated statement of operations. As of August 11, 2014, the sale is pending final funding and transfer of title. | ||||||||
The aircraft parts inventory held on consignment represents $2.3 million and $2.4 million in inventory related to our former Life Cycle Support Services ("LCCS") Navy contract as of June 27, 2014 and December 31, 2013, respectively. Work-in-process inventory includes equipment for vehicle modifications for specific customers and other deferred costs related to certain contracts. Included in Other current assets as of December 31, 2013 was an insurance receivable related to a settlement of a certain legal matter. This matter was settled and the insurance company paid out the settlement amount during the three months ended June 27, 2014. See Note 8 for further legal discussion. | ||||||||
Property and equipment, net — Property and equipment, net were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Helicopters | $ | 4,007 | $ | 4,007 | ||||
Computers and other equipment | 14,969 | 14,258 | ||||||
Leasehold improvements | 17,981 | 17,585 | ||||||
Office furniture and fixtures | 4,027 | 3,006 | ||||||
Gross property and equipment | 40,984 | 38,856 | ||||||
Less accumulated depreciation | (17,408 | ) | (14,736 | ) | ||||
Total property and equipment, net | $ | 23,576 | $ | 24,120 | ||||
Included in Property and equipment, net as of December 31, 2013 was $3.8 million related to the accrual for property additions. Accrued property additions were immaterial as of June 27, 2014. Depreciation expense, including certain depreciation amounts classified as Cost of services, was $1.4 million and $2.7 million during the three and six months ended June 27, 2014, respectively. Depreciation expense, including certain depreciation amounts classified as Cost of services, was $1.5 million and $3.0 million during the three and six months ended June 28, 2013, respectively. | ||||||||
Other assets, net — Other assets, net were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Deferred financing costs, net | $ | 13,890 | $ | 17,526 | ||||
Investment in affiliates | 10,771 | 13,477 | ||||||
Palm promissory note, long-term portion | 2,281 | 2,731 | ||||||
Other | 4,890 | 5,447 | ||||||
Total other assets, net | $ | 31,832 | $ | 39,181 | ||||
Deferred financing costs are amortized through interest expense. Amortization related to deferred financing costs was $1.5 million and $3.0 million during the three and six months ended June 27, 2014, respectively. Amortization related to deferred financing cost was $1.6 million and $3.5 million during the three and six months ended June 28, 2013, respectively. Deferred financing costs for the three and six months ended June 27, 2014 were reduced $0.4 million and $0.6 million, related to the pro rata write–off of deferred financing costs to loss on early extinguishment of debt as a result of the $60.0 million in principal prepayment made on the term loan facility under the Senior Credit Facility ("Term Loan") during the six months ended June 27, 2014. See Note 7 for further discussion. | ||||||||
Accrued payroll and employee costs — Accrued payroll and employee costs were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Wages, compensation and other benefits | $ | 86,320 | $ | 93,007 | ||||
Accrued vacation | 22,015 | 20,383 | ||||||
Accrued contributions to employee benefit plans | 807 | 944 | ||||||
Total accrued payroll and employee costs | $ | 109,142 | $ | 114,334 | ||||
Accrued liabilities — Accrued liabilities were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Customer liabilities | $ | 67,762 | $ | 61,856 | ||||
Accrued insurance | 20,316 | 40,120 | ||||||
Accrued interest | 24,287 | 24,641 | ||||||
Unrecognized tax benefit | 8,533 | 10,132 | ||||||
Contract losses | 5,954 | 13,738 | ||||||
Legal reserves | 4,471 | 14,147 | ||||||
Subcontractor retention | 2,800 | 4,300 | ||||||
Financed insurance | — | 6,162 | ||||||
Other | 19,762 | 25,437 | ||||||
Total accrued liabilities | $ | 153,885 | $ | 200,533 | ||||
Customer liabilities are primarily due to amounts received from customers in excess of revenue recognized. Other is comprised primarily of accrued rent and workers' compensation related claims and other balances that are not individually material to the consolidated financial statements. Legal matters include reserves related to various lawsuits and claims that arise in the normal course of business. See Note 8 for further discussion. | ||||||||
Other long-term liabilities | ||||||||
As of June 27, 2014 and December 31, 2013, Other long-term liabilities were $6.9 million and $7.6 million, respectively. Other long-term liabilities are primarily due to our obligations in connection with the restructuring plan entered into in 2013 including a long-term leasehold obligation related to our new Tysons Corner facility in McLean, Virginia, of $4.5 million and $4.7 million as of June 27, 2014 and December 31, 2013, respectively. | ||||||||
During the fourth quarter of calendar year 2013, the Company vacated the previously occupied properties at various locations and consolidated to the new Tysons Corner location. Additionally, in April of 2014 we entered into an agreement to buy out our previous headquarter facility lease. Accrued costs associated with vacating these properties, such as lease vacancy obligations, net of estimated sublease rental assumptions as well as the buyout were approximately $5.5 million and $7.8 million as of June 27, 2014 and December 31, 2013, respectively, and were included within Other accrued liabilities above. | ||||||||
As a result of the restructuring plan, we recorded a postemployment benefit expense of $2.0 million and $3.1 million for the three and six months ended June 27, 2014, respectively, related to severance in accordance with ASC 712 - Compensation which was included in Selling, general and administrative expenses in the statements of operations. As of June 27, 2014, we had approximately $1.7 million in accrued postemployment benefit expense for estimated future payments in accordance with ASC 712. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||
Jun. 27, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||||
The Company has three operating and reporting segments; DynAviation, DynLogistics and DynGlobal. DynAviation and DynLogistics provide services domestically and in foreign countries primarily under contracts with the U.S. government. The initial focus of DynGlobal is the pursuit and growth of international and commercial business. | ||||||||||||||
During the second quarter of 2014 the Company amended its organizational structure within our DynLogistics segment to improve efficiencies within existing businesses, resulting in the combination of two reporting units within our DynLogistics segment. Our DynLogistics segment now includes three reporting units. The reporting units within DynAviation, which has two reporting units, and DynGlobal remain unchanged. The amendment in the Company's organizational structure did not result in any reallocation of goodwill. | ||||||||||||||
We assess goodwill and other intangible assets with indefinite lives for impairment annually in October or when an event occurs or circumstances change that would suggest a triggering event. If a triggering event is identified, a step one assessment is performed to identify any possible goodwill impairment in the period in which the event is identified. | ||||||||||||||
During our annual goodwill impairment test performed during the fourth quarter of 2013, we noted significant changes to our assumptions and projections for the Air Wing reporting unit that resulted in a non-cash impairment charge of $281.5 million for the year ended December 31, 2013. Any further negative changes to this contract, such as the loss of the contract during re-compete or additional de-scope notifications from the customer, could yield operating results that differ from our projected forecasts and further result in a triggering event and an additional impairment. | ||||||||||||||
During the three months ended June 27, 2014, we performed a re-assessment of our projections due to continued challenges in our industry and declines in our business through the first half of the year. As a result of the re-assessment, the Company noted significant declines in future projections and assumptions with respect to new business opportunities within the Logistics Sustainment Services (“LSS”) reporting unit within the DynLogistics segment, which represented a carrying value of $120.6 million in goodwill as of December 31, 2013. The Company concluded that the change in circumstances represented a triggering event and an interim step one assessment was performed to identify any possible goodwill impairment. The first step of the impairment test indicated the carrying value of the LSS reporting unit was greater than the fair value. We performed step two of the impairment test and determined that the goodwill at the LSS reporting unit was partially impaired. As a result, a non-cash impairment charge of approximately $90.7 million was recorded during the three months ended June 27, 2014 to impair the carrying value of the LSS reporting unit goodwill. The impairment charge has been presented within the Impairment of goodwill, intangibles and long lived assets in the unaudited condensed consolidated statement of operations. Any further declines in performance within this reporting unit in 2014 could result in a triggering event and a potential goodwill impairment. | ||||||||||||||
Further, in light of the re-assessment of our future projections discussed above, we also determined that it was appropriate for us to perform a step one interim goodwill impairment test on the Aviation reporting unit within the DynAviation segment. The step one results indicated that the fair value of the goodwill exceeded its carrying value by approximately 17%. Any further declines in performance within this reporting unit in 2014 could result in a triggering event and a potential goodwill impairment. | ||||||||||||||
Other than those discussed above, no triggering events were identified in our remaining reporting units and the estimated fair values of each of our remaining reporting units exceed their respective carrying values as of June 27, 2014 and December 31, 2013. | ||||||||||||||
The carrying amounts of goodwill for each of our segments as of June 27, 2014 were as follows: | ||||||||||||||
(Amounts in thousands) | DynAviation | DynLogistics | Total | |||||||||||
Goodwill balance as of December 31, 2013 | $ | 160,932 | $ | 132,835 | $ | 293,767 | ||||||||
Changes between January 1, 2014 and June 27, 2014 | — | (90,742 | ) | (90,742 | ) | |||||||||
Goodwill balance as of June 27, 2014 | $ | 160,932 | $ | 42,093 | $ | 203,025 | ||||||||
The following tables provide information about changes relating to certain intangible assets: | ||||||||||||||
As of June 27, 2014 | ||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | ||||||||||||
Remaining | Value | |||||||||||||
Useful Life | ||||||||||||||
(Years) | ||||||||||||||
Other intangible assets: | ||||||||||||||
Customer-related intangible assets | 5.1 | $ | 350,912 | $ | (157,888 | ) | $ | 193,024 | ||||||
Other | ||||||||||||||
Finite-lived | 7 | 20,825 | (13,858 | ) | 6,967 | |||||||||
Indefinite-lived | $ | 5,059 | $ | — | $ | 5,059 | ||||||||
Total other intangibles | $ | 376,796 | $ | (171,746 | ) | $ | 205,050 | |||||||
Tradenames: | ||||||||||||||
Finite-lived | 0.9 | $ | 869 | $ | (715 | ) | $ | 154 | ||||||
Indefinite-lived | 43,222 | — | 43,222 | |||||||||||
Total tradenames | $ | 44,091 | $ | (715 | ) | $ | 43,376 | |||||||
As of December 31, 2013 | ||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | ||||||||||||
Remaining | Value | |||||||||||||
Useful Life | ||||||||||||||
(Years) | ||||||||||||||
Other intangible assets: | ||||||||||||||
Customer-related intangible assets | 5.6 | $ | 350,912 | $ | (138,623 | ) | $ | 212,289 | ||||||
Other | ||||||||||||||
Finite-lived | 6.3 | 22,042 | (14,151 | ) | 7,891 | |||||||||
Indefinite-lived | 5,059 | — | 5,059 | |||||||||||
Total other intangibles | $ | 378,013 | $ | (152,774 | ) | $ | 225,239 | |||||||
Tradenames: | ||||||||||||||
Finite-lived | 1.4 | $ | 869 | $ | (627 | ) | $ | 242 | ||||||
Indefinite-lived | 43,222 | — | 43,222 | |||||||||||
Total tradenames | $ | 44,091 | $ | (627 | ) | $ | 43,464 | |||||||
Amortization expense for customer-related intangibles, other intangibles and finite-lived tradenames was $10.9 million and $21.3 million for the three and six months ended June 27, 2014, respectively. Amortization expense for customer-related intangibles, other intangibles and finite-lived tradenames was $11.2 million and $22.0 million for the three and six months ended June 28, 2013, respectively. Other intangibles are primarily representative of our capitalized software which had a net carrying value of $7.0 million and $7.9 million as of June 27, 2014 and December 31, 2013, respectively. | ||||||||||||||
Estimated aggregate future amortization expense for finite lived assets subject to amortization are $22.3 million for the six months ending December 31, 2014, $42.3 million in 2015, $38.7 million in 2016, $36.2 million in 2017, $28.8 million in 2018 and $31.9 million thereafter. |
Income_Taxes
Income Taxes | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
The domestic and foreign components of (Loss) income before income taxes are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Domestic | $ | (94,549 | ) | $ | 13,950 | $ | (95,103 | ) | $ | 40,370 | ||||||
Foreign | (2,582 | ) | 137 | (2,238 | ) | (1,294 | ) | |||||||||
(Loss) income before income taxes | $ | (97,131 | ) | $ | 14,087 | $ | (97,341 | ) | $ | 39,076 | ||||||
The Benefit (provision) for income taxes consists of the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Current portion: | ||||||||||||||||
Federal | $ | — | $ | — | $ | — | $ | — | ||||||||
State | (389 | ) | (147 | ) | (383 | ) | (375 | ) | ||||||||
Foreign | (1,062 | ) | (3,691 | ) | (3,058 | ) | (5,058 | ) | ||||||||
$ | (1,451 | ) | $ | (3,838 | ) | $ | (3,441 | ) | $ | (5,433 | ) | |||||
Deferred portion: | ||||||||||||||||
Federal | $ | 16,798 | $ | (683 | ) | $ | 18,876 | $ | (7,773 | ) | ||||||
State | 491 | (62 | ) | 491 | (175 | ) | ||||||||||
Foreign | (59 | ) | (5 | ) | (59 | ) | (3 | ) | ||||||||
17,230 | (750 | ) | 19,308 | (7,951 | ) | |||||||||||
Benefit (provision) from income taxes | $ | 15,779 | $ | (4,588 | ) | $ | 15,867 | $ | (13,384 | ) | ||||||
Deferred tax liabilities, net consist of the following: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Current deferred tax liabilities, net | $ | (19,131 | ) | $ | (30,965 | ) | ||||||||||
Non-current deferred tax liabilities, net | (11,528 | ) | (17,359 | ) | ||||||||||||
Deferred tax liabilities, net | $ | (30,659 | ) | $ | (48,324 | ) | ||||||||||
A reconciliation of the statutory federal income tax rate to our effective rate is provided below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | |||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
State income tax, less effect of federal deduction | 0.1 | % | 1.5 | % | 0.1 | % | 1.4 | % | ||||||||
Goodwill Impairment | (18.2 | )% | — | % | (18.2 | )% | — | % | ||||||||
Noncontrolling interests | 0.4 | % | (1.9 | )% | 0.4 | % | (2.1 | )% | ||||||||
Other | (1.1 | )% | (2.0 | )% | (1.1 | )% | — | % | ||||||||
Effective tax rate | 16.2 | % | 32.6 | % | 16.2 | % | 34.3 | % | ||||||||
During the six months ended June 27, 2014, we made no estimated federal income tax payments. | ||||||||||||||||
In evaluating our deferred tax assets, we assess the need for any related valuation allowances or adjust the amount of any allowances, if necessary. We assess such factors as the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and available tax planning strategies in determining the need for or sufficiency of a valuation allowance. Based on this assessment, we concluded that no valuation allowance was necessary as of June 27, 2014. | ||||||||||||||||
As of June 27, 2014 and December 31, 2013, we had $7.9 million and $9.5 million of total unrecognized tax benefits, respectively, of which $2.7 million in each period would impact our effective tax rate if recognized. We anticipate that all $7.9 million of unrecognized tax benefits will be settled in the next twelve months. | ||||||||||||||||
On January 22, 2014, a tax assessment from the Large Tax Office of the Afghanistan Ministry of Finance ("MOF") was received, seeking approximately $64.2 million in taxes and penalties specific to one of our business licenses in Afghanistan for periods between 2009 to 2012. The majority of this assessment was income tax related; however, approximately $10.2 million of the assessed amount is non-income tax related and is discussed further in Note 8. We filed our initial appeal of the assessment on February 19, 2014. In May 2014, the MOF ruled in our favor for the income tax related issue which totaled approximately $54.0 million. We reversed the uncertain tax position related to the dividend withholding issue during the quarter ended June 27, 2014. |
Accounts_Receivable
Accounts Receivable | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
Accounts receivable, net consisted of the following: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Billed | $ | 144,430 | $ | 179,586 | ||||
Unbilled | 338,805 | 397,550 | ||||||
Total accounts receivable, net | $ | 483,235 | $ | 577,136 | ||||
Unbilled receivables as of June 27, 2014 and December 31, 2013 include $73.7 million and $41.6 million, respectively, related to costs incurred on projects for which we have been requested by the customer to begin new work or extend work under an existing contract and for which formal contracts, contract modifications or other contract actions have not been executed as of the end of the respective periods. As of June 27, 2014 and December 31, 2013, respectively, we had no contract claims outstanding with associated accounts receivable balances. | ||||||||
The balance of unbilled receivables consists of costs and fees billable immediately upon contract completion or other specified events, all of which are expected to be billed and collected within one year, except items that may result in a request for equitable adjustment or formal claim. We do not believe we have significant exposure to credit risk as our receivables are primarily with the U.S. government. Our largest contract, LOGCAP IV, accounted for approximately 27% and 34% of total unbilled receivables as of June 27, 2014 and December 31, 2013, respectively. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | |||||||||||||||
Fair Value of Financial Assets and Liabilities | ||||||||||||||||
ASC 820 – Fair Value Measurements and Disclosures establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: | ||||||||||||||||
• | Level 1, defined as observable inputs such as quoted prices in active markets; | |||||||||||||||
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and | |||||||||||||||
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Our financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable, and borrowings. Because of the short-term nature of cash and cash equivalents, accounts receivable, and accounts payable, the fair value of these instruments approximates the carrying value. Our estimate of the fair value of our long-term debt is based on Level 1 and Level 2 inputs, as defined above. | ||||||||||||||||
As Of | ||||||||||||||||
June 27, 2014 | December 31, 2013 | |||||||||||||||
(Amounts in thousands) | Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 468,650 | $ | 455,000 | $ | 468,650 | ||||||||
Term Loan | 217,272 | 217,272 | 277,272 | 278,658 | ||||||||||||
Total long-term debt | $ | 672,272 | $ | 685,922 | $ | 732,272 | $ | 747,308 | ||||||||
LongTerm_Debt
Long-Term Debt | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt consisted of the following: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 455,000 | ||||
Term loan | 217,272 | 277,272 | ||||||
Total long-term debt | $ | 672,272 | $ | 732,272 | ||||
Senior Credit Facility | ||||||||
On July 7, 2010, we entered into a senior secured credit facility (the "Senior Credit Facility"), with a banking syndicate and Bank of America, NA as Administrative Agent (the " Agent"). On January 21, 2011 and on August 10, 2011, DynCorp International Inc. entered into amendments to the Senior Credit Facility. | ||||||||
On June 19, 2013, we entered into a third amendment (the “Amendment”) to the Senior Credit Facility. The Amendment, among other things, amended the Senior Credit Facility to extend the maturity date of the revolving credit facility (the "Revolver") to July 7, 2016, increased the amount of the Revolver to $181.0 million and modified the maximum total leverage threshold test and certain other covenants. | ||||||||
The Senior Credit Facility is secured by substantially all of our assets and is guaranteed by substantially all of our subsidiaries. As of June 27, 2014, the Senior Credit Facility provided for a $217.3 million Term Loan and the $181.0 million Revolver, which includes a $100.0 million letter of credit subfacility. As of June 27, 2014 and December 31, 2013, the available borrowing capacity under the Senior Credit Facility was approximately $146.3 million and $144.6 million, respectively, which includes $34.7 million and $36.4 million, respectively, in issued letters of credit. Amounts borrowed under the Revolver are used to fund operations. As of June 27, 2014 and December 31, 2013 there were no amounts borrowed under the Revolver. The maturity date on both the Term Loan and the Revolver is July 7, 2016. | ||||||||
Interest Rates on Term Loan & Revolver | ||||||||
Both the Term Loan and Revolver bear interest at one of two options, based on our election, using either the (i) base rate ("Base Rate") as defined in the Senior Credit Facility plus an applicable rate or the (ii) London Interbank Offered Rate ("Eurocurrency Rate") as defined in the Senior Credit Facility plus an applicable rate. The applicable rate for the Term Loan is fixed at 3.5% for the Base Rate option and 4.5% for the Eurocurrency Rate option. The applicable rate for the Revolver ranges from 3.0% to 3.5% for the Base Rate option or 4.0% to 4.5% for the Eurocurrency Rate option based on our Secured Leverage Ratio at the end of the quarter. The Secured Leverage Ratio is calculated by the ratio of total secured consolidated debt (net of up to $75.0 million of unrestricted cash and cash equivalents) to consolidated earnings before interest, taxes, and depreciation & amortization ("Consolidated EBITDA"), as defined in the Senior Credit Facility. Interest payments on both the Term Loan and Revolver are payable at the end of the interest period as defined in the Senior Credit Facility, but not less than quarterly. | ||||||||
The Base Rate is equal to the higher of (a) the Federal Funds Rate plus one half of one percent and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its prime rate; provided that in no event shall the Base Rate be less than 1.00% plus the Eurocurrency Rate applicable to one month interest periods on the date of determination of the Base Rate. The variable Base Rate has a floor of 2.75%. | ||||||||
The Eurocurrency Rate is the rate per annum equal to the British Bankers Association London Interbank Offered Rate ("BBA LIBOR") as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) two business days prior to the commencement of such interest period. The variable Eurocurrency Rate has a floor of 1.75%. As of June 27, 2014 and December 31, 2013, the interest rate on the Term Loan was 6.25%. | ||||||||
Interest Rates on Letter of Credit Subfacility and Unused Commitment Fees | ||||||||
The letter of credit subfacility bears interest at an applicable rate as defined in the Senior Credit Facility and ranges from 4.0% to 4.5% based on our Secured Leverage Ratio at the end of the quarter. The unused commitment fee on our Revolver ranges from 0.50% to 0.75% depending on the Secured Leverage Ratio, as defined in the Senior Credit Facility. Payments on both the letter of credit subfacility and unused commitments are payable quarterly in arrears. The applicable interest rate for our letter of credit subfacility was 4.25% as of June 27, 2014 and December 31, 2013, respectively. The applicable interest rate for our unused commitment fees was 0.50% as of June 27, 2014 and December 31, 2013, respectively. All of our letters of credit are also subject to a 0.25% fronting fee. | ||||||||
Principal Payments | ||||||||
Pursuant to our Term Loan facility, quarterly principal payments are required. However, certain principal prepayments made during the year ended December 30, 2011 were applied to the future scheduled maturities and satisfied our responsibility to make quarterly principal payments through July 7, 2016. | ||||||||
During the six months ended June 27, 2014 we made principal prepayments of $60.0 million on the Term Loan facility. We made no principal prepayments or quarterly principal payments on the Term Loan facility during the six months ended June 28, 2013. Deferred financing costs associated with the prepayment totaled $0.6 million and were expensed and included in the Loss on early extinguishment of debt in our consolidated statement of operations for the six months ended June 27, 2014. | ||||||||
Our Senior Credit Facility contains an annual requirement to submit a portion of our Excess Cash Flow, as defined in the Senior Credit Facility, as additional principal payments. Based on our annual financial results and the additional principal prepayments made during the year ended December 31, 2013, we are not required to make any additional principal payments under the Excess Cash Flow requirement during calendar year 2014. Certain other transactions can trigger mandatory principal payments such as tax refunds, a disposition of a portion of our business or a significant asset sale. We had no such transactions during the six months ended June 27, 2014. | ||||||||
Covenants | ||||||||
The Senior Credit Facility contains financial, as well as non-financial, affirmative and negative covenants that we believe are usual and customary. These covenants can, among other things, limit our ability to: | ||||||||
• | declare dividends and make other distributions; | |||||||
• | redeem or repurchase our capital stock; | |||||||
• | prepay, redeem or repurchase certain of our indebtedness; | |||||||
• | grant liens; | |||||||
• | make loans or investments (including acquisitions); | |||||||
• | incur additional indebtedness; | |||||||
• | modify the terms of certain debt; | |||||||
• | restrict dividends from our subsidiaries; | |||||||
• | change our business or business of our subsidiaries; | |||||||
• | merge or enter into acquisitions; | |||||||
• | sell our assets; | |||||||
• | enter into transactions with our affiliates; and | |||||||
• | make capital expenditures. | |||||||
In particular, the Senior Credit Facility stipulates two financial maintenance covenants, a maximum total leverage ratio and a minimum interest coverage ratio that must be maintained. | ||||||||
Effective with the Amendment, total leverage ratio is the Consolidated Total Debt, as defined in the Senior Credit Facility, less unrestricted cash and cash equivalents (up to $75.0 million) to Consolidated EBITDA, as defined in the Senior Credit Facility, for the applicable period. | ||||||||
As of June 27, 2014 our total leverage ratio, cannot be greater than 4.50 to 1.00 after which, the maximum total leverage diminishes quarterly or semi-annually to a maximum of 3.75 to 1.00 beginning September 26, 2015. The Amendment made adjustments to the levels at which the maximum total leverage ratio diminishes over the remainder of the facility. | ||||||||
The interest coverage ratio is the ratio of Consolidated EBITDA to Consolidated Interest Expense, as defined in the Senior Credit Facility. The interest coverage ratio as of June 27, 2014, must not be less than 2.00 to 1.00 through the period ending June 27, 2014, after which, the minimum total interest coverage ratio increases to 2.05 to 1.00 through March 27, 2015 and 2.25 to 1.00 thereafter. | ||||||||
In the event we fail to comply with the financial maintenance covenants as specified in the Senior Credit Facility, we may be in default. We closely evaluate our expected ability to remain in compliance with our financial covenants. We performed a re-assessment of our projections during the second quarter of 2014 due to continued challenges in our industry and declines in our business through the first half of the year. Based on revised projections, we believe we may not satisfy certain financial maintenance covenants for the twelve month period ending December 31, 2014, unless we either obtain a waiver from our lenders or amend the terms of our Senior Credit Facility. We are currently in discussions with our Agent with respect to amending the terms of our Senior Credit Facility. As of June 27, 2014, we were in compliance with our financial maintenance covenants. | ||||||||
Senior Unsecured Notes | ||||||||
On July 7, 2010, DynCorp International Inc. completed an offering of $455 million in aggregate principal of 10.375% senior unsecured notes due 2017 (the "Senior Unsecured Notes"). The initial purchasers were Bank of America Securities LLC, Citigroup Global Markets Inc., Barclays Capital Inc. and Deutsche Bank Securities Inc. The Senior Unsecured Notes were issued under an indenture dated July 7, 2010 (the "Indenture"), by and among us, the guarantors party thereto (the "Guarantors"), including DynCorp International Inc., and Wilmington Trust FSB, as trustee. The Senior Unsecured Notes mature on July 1, 2017. Interest on the Senior Unsecured Notes is payable on January 1 and July 1 of each year, and commenced on January 1, 2011. | ||||||||
The Senior Unsecured Notes contain various covenants that restrict our ability to: | ||||||||
• | incur additional indebtedness; | |||||||
• | make certain payments, including declaring or paying certain dividends; | |||||||
• | purchase or retire certain equity interests; | |||||||
• | retire subordinated indebtedness; | |||||||
• | make certain investments; | |||||||
• | sell assets; | |||||||
• | engage in certain transactions with affiliates; | |||||||
• | create liens on assets; | |||||||
• | make acquisitions; and | |||||||
• | engage in mergers or consolidations. | |||||||
The aforementioned restrictions are considered to be in place unless we achieve investment grade ratings by both Moody’s Investor Services and Standard and Poor’s. | ||||||||
The fair value of the Senior Unsecured Notes is based on their quoted market value. As of June 27, 2014 and December 31, 2013, the quoted market value of the Senior Unsecured Notes was approximately 103.0% of stated value. | ||||||||
Call and Put Options | ||||||||
We can voluntarily settle all or a portion of the Senior Unsecured Notes at any time prior to maturity at an applicable redemption price. Such a voluntary settlement would require payment of 100% of the principal amount plus the accrued and unpaid interest and additional interest, if any, as of the applicable redemption date. The applicable redemption prices with respect to the Senior Unsecured Notes on any applicable redemption date if redeemed during the 12-month period commencing on July 1 of the years set forth below are as follows: | ||||||||
Year | Redemption Price | |||||||
2014 | 105.2 | % | ||||||
2015 | 102.6 | % | ||||||
2016 and thereafter | 100 | % | ||||||
The Indenture requires us to offer to repurchase the Senior Unsecured Notes at defined prices in the event of certain asset sales and change of control events. In the case of Asset Sales (as defined in the Indenture), we are required under the Indenture to use the proceeds from such asset sales to either (i) prepay secured debt or nonguarantor debt, (ii) reinvest in our business or (iii) to the extent asset sale proceeds not applied in accordance with clause (i) or (ii) exceed $15 million, make an offer to repurchase the Senior Unsecured Notes at 100% of the principal amount thereof. | ||||||||
In the event of a change in control, each holder of the Senior Unsecured Notes will have the right to require the Company to repurchase some or all of the Senior Unsecured Notes at 101% of their face amount, plus accrued and unpaid interest to the repurchase date. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Commitments | |
We have operating leases for the use of real estate and certain property and equipment which are either non-cancelable, cancelable only by the payment of penalties or cancelable upon one month’s notice. All lease payments are based on the lapse of time but include, in some cases, payments for insurance, maintenance and property taxes. There are no purchase options on operating leases at favorable terms, but most leases have one or more renewal options. Certain leases on real estate are subject to annual escalations for increases in base rents, utilities and property taxes. Lease rental expense was $26.0 million and $55.7 million for the three and six months ended June 27, 2014, respectively. Lease rental expense was $41.3 million and $87.7 million for the three and six months ended and June 28, 2013, respectively. We have no significant long-term purchase agreements with service providers. | |
Contingencies | |
General Legal Matters | |
We are involved in various lawsuits and claims that arise in the normal course of business. We have established reserves for matters in which it is believed that losses are probable and can be reasonably estimated. Reserves related to these matters have been recorded in Other accrued liabilities totaling approximately $4.5 million and $14.1 million as of June 27, 2014 and December 31, 2013, respectively. We believe that appropriate accruals have been established for such matters based on information currently available; however, some of the matters may involve compensatory, punitive, or other claims or sanctions that if granted, could require us to pay damages or make other expenditures in amounts that could not be reasonably estimated at June 27, 2014. These accrued reserves represent the best estimate of amounts believed to be our liability in a range of expected losses. In addition to matters that are considered probable and that can be reasonably estimated, we also have certain matters considered reasonably possible. Other than matters disclosed below, we believe the aggregate range of possible loss related to matters considered reasonably possible was not material as of June 27, 2014. Litigation is inherently unpredictable and unfavorable resolutions could occur. Accordingly, it is possible that an adverse outcome from such proceedings could (i) exceed the amounts accrued for probable matters; or (ii) require a reserve for a matter we did not originally believe to be probable or could be reasonably estimated. Such changes could be material to our financial condition, results of operations and cash flows in any particular reporting period. Our view of the matters not specifically disclosed could possibly change in future periods as events thereto unfold. | |
Pending Litigation and Claims | |
On December 4, 2006, December 29, 2006, March 14, 2007 and April 24, 2007, four lawsuits were served, seeking unspecified monetary damages against DynCorp International LLC and several of its former affiliates in the U.S. District Court for the Southern District of Florida, concerning the spraying of narcotic plant crops along the Colombian border adjacent to Ecuador. Three of the lawsuits, filed on behalf of the Provinces of Esmeraldas, Sucumbíos, and Carchi in Ecuador, allege violations of Ecuadorian law, International law, and statutory and common law tort violations, including negligence, trespass, and nuisance. The fourth lawsuit, filed on behalf of citizens of the Ecuadorian provinces of Esmeraldas and Sucumbíos, alleges personal injury, various counts of negligence, trespass, battery, assault, intentional infliction of emotional distress, violations of the Alien Tort Claims Act and various violations of International law. The four lawsuits were consolidated, and based on our motion granted by the court, the case was subsequently transferred to the U.S. District Court for the District of Columbia. On March 26, 2008, a First Amended Consolidated Complaint was filed that identified 3,266 individual plaintiffs. As of January 12, 2010, 1,256 of the plaintiffs were dismissed by court orders and, on September 15, 2010, the Provinces of Esmeraldas, Sucumbíos, and Carchi were dismissed by court order. We filed multiple motions for summary judgment and, on February 15, 2013, the court granted summary judgment and dismissed all claims. On March 18, 2013, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the District of Columbia. On May 30, 2014, the U.S. Court of Appeals for the District of Columbia affirmed the dismissal of the majority of the case, but remanded the case to the trial court concerning a few remaining tort claims. | |
A lawsuit filed on September 11, 2001, and amended on March 24, 2008, seeking unspecified damages on behalf of twenty-six residents of the Sucumbíos Province in Ecuador, was brought against our operating company and several of its former affiliates in the U.S. District Court for the District of Columbia. The action alleges violations of the laws of nations and U.S. treaties, negligence, emotional distress, nuisance, battery, trespass, strict liability, and medical monitoring arising from the spraying of herbicides near the Ecuador-Colombia border in connection with the performance of the DoS, International Narcotics and Law Enforcement contract for the eradication of narcotic plant crops in Colombia. As of January 12, 2010, fifteen of the plaintiffs have been dismissed by court order. We filed multiple motions for summary judgment and, on February 15, 2013, the court granted summary judgment and dismissed all claims. On March 18, 2013, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the District of Columbia. On May 30, 2014, the U.S. Court of Appeals for the District of Columbia affirmed the dismissal of the majority of the case, but remanded the case to the trial court concerning a few remaining tort claims. The terms of the DoS contract provide that the DoS will indemnify our operating company against third party liabilities arising out of the contract, subject to available funding. We are also entitled to indemnification by Computer Sciences Corporation, the Company’s previous owners, in connection with this lawsuit, subject to certain limitations. Additionally, any damage award would have to be apportioned between the other defendants and our operating company. We believe that the likelihood of an unfavorable judgment in this matter is remote. | |
Arising out of the litigation described in the preceding two paragraphs, on September 22, 2008, we filed a separate lawsuit against our aviation insurance carriers seeking defense and coverage of the referenced claims. On November 9, 2009, the court granted our Partial Motion for Summary Judgment regarding the duty to defend, and the carriers have paid the majority of the litigation expenses. In a related action, the aviation insurance carriers filed a lawsuit against us on February 5, 2009, seeking rescission of certain aviation insurance policies based on an alleged misrepresentation by us concerning the existence of certain of the lawsuits relating to the eradication of narcotic plant crops. On May 19, 2010, our aviation insurance carriers also filed a complaint against us seeking reformation of previously provided insurance policies and the elimination of coverage for aerial spraying. The Company believes that the claims asserted by the insurance carriers are without merit and the likelihood of an unfavorable judgment in this matter is remote. | |
In 2009, we terminated for cause a contract to build the Akwa Ibom International Airport for the State of Akwa Ibom in Nigeria. Consequently, we terminated certain subcontracts and purchase orders the customer advised us it did not want to assume. Our termination of certain subcontracts not assumed by the customer, including our actions to recover against advance payment and performance guarantees established by the subcontractors for our benefit, was challenged in certain instances. In December 2011, the customer filed arbitration alleging fraud, gross negligence, contract violations, and conversion of funds and asserted damages of approximately $150 million. We believe our right to terminate this contract was justified and permissible under the terms of the contract, and we intend to vigorously contest the claims brought against us. Additionally, we believe the contract limits any damages to a maximum of $3 million, except in situations of gross negligence and willful misconduct. As of June 27, 2014 and December 31, 2013, we have recorded an immaterial liability for this matter and believe the likelihood of loss for amounts in excess of this accrual, up to the amount limited by the contract, is reasonably possible. | |
On July 8, 2009, a lawsuit was filed in the United Arab Emirates ("UAE") Abu Dhabi Court of First Instance, by Al Hamed ITC (hereafter "Al Hamed") concerning an October 2002 business development contract focused on obtaining business directly with the UAE General Military Directorate ("GMD"). Al Hamed was unsuccessful in assisting the company in soliciting business with GMD and, as such, the contract with Al Hamed was terminated in July 2006. We became a subcontractor to the successful bidder, Al Taif, in December 2006. Al Hamed filed a claim seeking $57.0 million in damages under the business development contract. On May 9, 2012, the court awarded Al Hamed 8.2 million in UAE Dirhams ($2.2 million U.S. dollars) plus 5% interest and expenses. The Company and Al Hamed both appealed the judgment. On September 12, 2012, the appellate court altered the judgment stating the amount should not have been in UAE Dirhams rather in U.S. dollars, which amounts to $8.2 million U.S. dollars. As of September 28, 2012, a reserve had been established for the full amount of the judgment. The judgment was further appealed to the Supreme Court in Abu Dhabi, and, on February 27, 2013, we were advised that our appeal was unsuccessful. On April 7, 2013, the judgment was paid and the matter is now closed. During calendar year 2013, the Company was made aware of a new case filed by Al Hamed in the UAE Abu Dhabi Court of First Instance seeking $23.3 million U.S. dollars in damages under the same business development contract. The case alleges we obtained additional business with Al Taif. We have not been awarded any new contracts with Al Taif and therefore believe this case is without merit. | |
In February 2014, the Company received a judgment related to a past helicopter accident in Aviano, Italy. As of December 31, 2013 we had a recorded liability for $9.8 million related to this matter. This matter was fully insured and a corresponding receivable from the insurance company was recorded within Other current assets. In April 2014, the insurance company paid out the settlement amounts and the case is now considered closed. | |
U.S. Government Investigations | |
We primarily sell our services to the U.S. government. These contracts are subject to extensive legal and regulatory requirements, and we are occasionally the subject of investigations by various agencies of the U.S. government who investigate whether our operations are being conducted in accordance with these requirements, including, as previously disclosed in our periodic filings, the Special Inspector General for Iraq Reconstruction report regarding certain reimbursements and the U.S. Department of State Office of Inspector General's records subpoena with respect to Civilian Police ("CivPol"). Such investigations, whether related to our U.S. government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed on us, or could lead to suspension or debarment from future U.S. government contracting. U.S. government investigations often take years to complete and many result in adverse action against us. We believe that any adverse actions arising from such matters could have a material effect on our ability to invoice and receive timely payment on our contracts, perform contracts or compete for contracts with the U.S. government and could have a material effect on our operating performance. | |
On August 16, 2005, we were served with a Department of Justice Federal Grand Jury Subpoena seeking documents concerning work performed by a former subcontractor, Al Ghabban in 2002-2005. Specifically, during the 2002-2005 timeframe, Al Ghabban performed line haul trucking work to transport materials throughout the Middle East on the War Reserve Materiel program. In response to the subpoena in 2005, we provided the requested documents to the Department of Justice and the matter was subsequently closed in 2005 without any action taken. In April 2009, we received a follow up telephone call concerning this matter from the Department of Justice Civil Litigation Division. Since that time, we have had several discussions with the government regarding the civil matter. In response to requests, we provided additional information to the Department of Justice Civil Litigation Division. If our operations are found to be in violation of any laws or government regulations, we may be subject to penalties, damages or fines, any or all of which could adversely affect our financial results. The Company believes that the likelihood of an unfavorable judgment resulting from this matter is reasonably possible; however, as this matter is still under review and no formal complaint has been filed, a reasonable estimate of loss or range of loss cannot be made. | |
On February 24, 2012, we were advised by the Department of Justice Civil Litigation Division that they are conducting an investigation regarding the CivPol and Department of State Advisor Support Mission ("DASM") contracts in Iraq and Corporate Bank, a former subcontractor. The issues include allowable hours worked under a specific task order and invoices to the Department of State for certain hotel leasing, labor rates and overhead within the 2003 to 2008 timeframe. The Department of Justice Civil Litigation Division has requested information from the Company, and we are fully cooperating with the government's review. If our operations are found to be in violation of any laws or government regulations, we may be subject to penalties, damages or fines, any or all of which could adversely affect our financial results. At this time, an estimate or a range of potential damages is not possible as this matter is still under review by the Department of Justice and no formal complaint has been filed. | |
U.S. Government Audits | |
Our contracts are regularly audited by the Defense Contract Audit Agency ("DCAA") and other government agencies. These agencies review our contract performance, cost structure and compliance with applicable laws, regulations and standards. The government also reviews the adequacy of, and our compliance with, our internal control systems and policies, including our purchasing, property, estimating, accounting and material management accounting systems. Any costs found to be improperly allocated to a specific contract will not be reimbursed. The DCAA will in some cases issue a Form 1 representing the non-conformance of such costs or requirements as it relates to our government contracts. If the Company is unable to provide sufficient evidence of the costs in question, the costs could be suspended or disallowed, which could be material to our financial statements. Government contract payments received by us for direct and indirect costs are subject to adjustment after government audit and repayment to the government if the payments exceed allowable costs as defined in the government regulations. Since we cannot reasonably estimate the results of a DCAA or other government entity audit, these items represent loss contingencies that we consider reasonably possible. Due to the nature of our business, the continual oversight of and audits by governmental agencies and the number of contracts under which we perform, we cannot, at this time, provide a reasonable estimate of the range of loss for these contingencies. | |
We have received a series of final audit reports from the DCAA, some of which have resulted in Form 1s, related to their examination of certain incurred, invoiced and reimbursed costs on our CivPol program for periods ranging from April 17, 2004 through April 2, 2010. The Form 1s identify several cost categories where the DCAA has asserted instances of potential deviations from the explicit terms of the contract or from certain provisions of government regulations. The asserted amounts are derived from extrapolation methodologies used to estimate potential exposure amounts for the cost categories which when aggregated for all Form 1's and demand letters total approximately $185.8 million. Over the past year, we have worked with the DCAA in resolving matters inclusive in the Form 1s. We have provided responses to the DCAA for each letter, in which we have articulated our position on each issue and have attempted to answer their questions and provide clarification of the facts to resolve the issues raised. We have also sought to obtain clarification from our customer through formal contract modifications in an attempt to assist the DCAA in closing these issues. We believe the majority of these issues will continue to be resolved and thus represent loss contingencies that we consider remote. For the remaining issues, which total approximately $19.1 million, we believe the DCAA did not consider certain contractual provisions and long standing patterns of dealing with the customer. Since we cannot reasonably estimate the DCAA's acceptance of our initial responses and the ultimate outcome related to these remaining issues we believe these items represent loss contingencies that we consider reasonably possible. We continue to work with the customer and the DCAA to resolve any remaining questions they may have and provide clarification of the facts and circumstances surrounding the issues. | |
On April 30, 2013, we received several demand Form 1s from DCAA disapproving approximately $152.0 million of cost incurred by the Company for the periods ranging between 2000 to 2011 on the War Reserve Materiel program for concerns on items such as the adequacy of documentation and reasonableness of costs. We have responded to the Form 1s and are awaiting a contracting officer's final decision. Based on our initial assessment, we believe a substantial portion of these items represent loss contingencies that we consider remote. We believe the remaining portion of these items represent loss contingencies that we consider reasonably possible; however, a reasonable estimate of loss or range of loss cannot be made at this time as we cannot reasonably estimate the ultimate outcome related to the issues raised in the Form 1s. | |
Foreign Contingencies | |
On January 22, 2014, a tax assessment from the Large Tax Office of the Afghanistan Ministry of Finance (“MOF”) was received, seeking approximately $64.2 million in taxes and penalties specific to one of our business licenses in Afghanistan for periods between 2009 and 2012. The majority of this assessment was income tax related; however, $10.2 million of the assessed amount is non-income tax related and represents loss contingencies that we consider reasonably possible. We filed our initial appeal of the assessment with the MOF on February 19, 2014. In May 2014, the MOF ruled in our favor for the income tax related issue which totaled approximately $54.0 million. See Note 4 for further discussion of the income tax related issue. We are still working with the MOF to remove the assessment on the remaining non-income tax related items. As of June 27, 2014, a reasonable estimate of loss or range of loss could not be made as we could not reasonably estimate the ultimate outcome related to the issues assessed. | |
Credit Risk | |
We are subject to concentrations of credit risk primarily by virtue of our accounts receivable. Departments and agencies of the U.S. federal government account for all but minor portions of our customer base, minimizing this credit risk. Furthermore, we continuously review all accounts receivable and record provisions for doubtful accounts when necessary. | |
Risk Management Liabilities and Reserves | |
We are insured for domestic workers' compensation liabilities and a significant portion of our employee medical costs. However, we bear risk for a portion of claims pursuant to the terms of the applicable insurance contracts. We account for these programs based on actuarial estimates of the amount of loss inherent in that period’s claims, including losses for which claims have not been reported. These loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. We limit our risk by purchasing stop-loss insurance policies for significant claims incurred for both domestic workers' compensation liabilities and medical costs. Our exposure under the stop-loss policies for domestic workers' compensation and medical costs is limited based on fixed dollar amounts. For domestic workers' compensation and employers' liability under state and federal law, the fixed dollar amount of stop-loss coverage is $1.0 million per occurrence on most policies; but, $0.25 million on a California based policy. For medical costs, the fixed dollar amount of stop-loss coverage is from $0.25 million to $0.75 million for total costs per covered participant per calendar year. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company has three operating and reporting segments; DynAviation, DynLogistics and DynGlobal. The reporting segments are the same as the operating segments. DynAviation and DynLogistics segments operate principally within a regulatory environment subject to governmental contracting and accounting requirements, including Federal Acquisition Regulations, Cost Accounting Standards and audits by various U.S. federal agencies. The DynGlobal segment focuses on the pursuit and growth of the international and commercial business. The current revenue, operating income, depreciation and amortization and assets associated with the DynGlobal segment for the three and six months ended June 27, 2014 were not material and as such are presented in Headquarters / Other within the tables below. | ||||||||||||||||
The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | ||||||||||||||||
DynLogistics | $ | 290,340 | $ | 500,518 | $ | 607,507 | $ | 1,067,575 | ||||||||
DynAviation | 300,737 | 380,418 | 596,472 | 748,094 | ||||||||||||
Headquarters / Other (1) | (111 | ) | (4,414 | ) | (254 | ) | (7,039 | ) | ||||||||
Total revenue | $ | 590,966 | $ | 876,522 | $ | 1,203,725 | $ | 1,808,630 | ||||||||
Operating (loss) income | ||||||||||||||||
DynLogistics | $ | (80,803 | ) | $ | 14,328 | $ | (68,773 | ) | $ | 32,857 | ||||||
DynAviation | 10,613 | 31,857 | 21,900 | 64,618 | ||||||||||||
Headquarters / Other (2) | (9,809 | ) | (9,731 | ) | (16,088 | ) | (18,984 | ) | ||||||||
Total operating (loss) income | $ | (79,999 | ) | $ | 36,454 | $ | (62,961 | ) | $ | 78,491 | ||||||
Depreciation and amortization | ||||||||||||||||
DynLogistics | $ | 11 | $ | 221 | $ | 23 | $ | 449 | ||||||||
DynAviation | 367 | 316 | 733 | 621 | ||||||||||||
Headquarters / Other | 11,883 | 12,173 | 23,246 | 23,928 | ||||||||||||
Total depreciation and amortization (3) | $ | 12,261 | $ | 12,710 | $ | 24,002 | $ | 24,998 | ||||||||
-1 | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. | |||||||||||||||
-2 | Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. Additionally, operating income for our DynGlobal segment in support of the development of this business during the three and six months ended June 27, 2014 are currently included in Headquarters / Other. | |||||||||||||||
-3 | Includes amounts included in Cost of services of $0.2 million and $0.5 million and for the three and six months ended June 27, 2014, respectively, and $0.4 million and $0.9 million for the three and six months ended June 28, 2013, respectively. | |||||||||||||||
The following is a summary of the assets of the reportable segments reconciled to the amounts reported in the consolidated financial statements: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Assets | ||||||||||||||||
DynLogistics | $ | 422,324 | $ | 591,304 | ||||||||||||
DynAviation | 419,659 | 447,646 | ||||||||||||||
Headquarters / Other (1) | 421,200 | 460,971 | ||||||||||||||
Total assets | $ | 1,263,183 | $ | 1,499,921 | ||||||||||||
-1 | Assets primarily include cash, investments in unconsolidated subsidiaries, deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. Additionally, assets for our DynGlobal segment, in support of the development of the business, during the six months ended June 27, 2014 is currently included in Headquarters / Other. |
Related_Parties_Joint_Ventures
Related Parties, Joint Ventures and Variable Interest Entities | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Parties, Joint Ventures and Variable Interest Entities | ' | |||||||||||||||
Related Parties, Joint Ventures and Variable Interest Entities | ||||||||||||||||
Consulting Fee | ||||||||||||||||
The Company has a Master Consulting and Advisory Services agreement ("COAC Agreement") with Cerberus Operations and Advisory Company, LLC where, pursuant to the terms of the agreement, they make personnel available to us for the purpose of providing reasonably requested business advisory services. The services are priced on a case by case basis depending on the requirements of the project and agreements in pricing. We incurred $0.9 million and $1.6 million in conjunction with the COAC Agreement during the three and six months ended June 27, 2014, respectively, and $0.8 million and $2.0 million during the three and six months ended June 28, 2013, respectively. | ||||||||||||||||
Joint Ventures and Variable Interest Entities | ||||||||||||||||
We account for our investments in VIEs in accordance with ASC 810 - Consolidation. In cases where we have (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, we consolidate the entity. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. As of June 27, 2014, we accounted for PaTH, CRS, Babcock, GRS and GLS as equity method investments. Alternatively, we consolidated DIFZ based on the aforementioned criteria. We present our share of the PaTH, CRS, GRS and GLS earnings in Earnings from equity method investees as these joint ventures are considered operationally integral. Alternatively, we present our share of the Babcock earnings in Other income, net as it is not considered operationally integral. | ||||||||||||||||
Receivables due from our unconsolidated joint ventures totaled $1.9 million and $2.3 million as of June 27, 2014 and December 31, 2013, respectively. These receivables are a result of items purchased and services rendered by us on behalf of our unconsolidated joint ventures. We have assessed these receivables as having minimal collection risk based on our historic experience with these joint ventures and our inherent influence through our ownership interest. The related revenue we earned from our unconsolidated joint ventures totaled, $1.0 million and $3.0 million during the three and six months ended June 27, 2014 and $3.7 million and $4.3 million during the three and six months ended and June 28, 2013, respectively. The related cost of services was $1.0 million and $2.9 million during the three and six months ended June 27, 2014 and $3.6 million and $4.1 million during the three and six months ended June 28, 2013, respectively. Additionally, we earned $0.5 million and $10.8 million in equity method income (includes operationally integral and non-integral income) during the three and six months ended June 27, 2014, respectively, and $(2.0) million and $2.4 million during the three and six months ended June 28, 2013, respectively. | ||||||||||||||||
GLS’ revenue was $4.9 million and $9.7 million during the three and six months ended June 27, 2014, respectively and $7.1 million and $20.5 million during the three and six months ended June 28, 2013, respectively. GLS’ operating loss was $0.9 million and $2.4 million during the three and six months ended June 27, 2014, and operating loss of $1.2 million and operating income of $0.2 million during the three and six months ended June 28, 2013, respectively. GLS paid cash dividends of $18.8 million during the six months ended June 27, 2014. Based on our 51% ownership in GLS, the Company recognized $9.6 million in equity method income during the six months ended June 27, 2014. | ||||||||||||||||
In October 2011, the DCAA issued GLS a Form 1 in the amount of $95.9 million which pertained to inconsistencies of certain contractual requirements and withheld a portion of outstanding invoices until the Form 1 was resolved. In February 2012, the DCAA issued GLS a second Form 1 in the amount of $102.0 million, asserting inconsistencies with labor related costs for the fiscal year ended April 3, 2009. GLS did not agree with the DCAA's findings on either of the Form 1s and continued to work with the DCAA and the customer to provide clarification and resolve both matters. In February 2014, a final determination was received from the DCAA's Contracting Officer on the outstanding Form 1s resulting in total withholdings of $0.3 million and allowing GLS to submit invoices totaling $19.1 million for recovery of previous invoices. The Form 1s are now considered closed. | ||||||||||||||||
We currently hold one promissory note from Palm Trading Investment Corp, which had an aggregate initial value of $9.2 million. The note is included in (i) Prepaid expenses and other current assets and in (ii) Other assets on our unaudited condensed consolidated balance sheet for the short and long-term portions, respectively. The loan balance outstanding was $3.1 million and $3.5 million as of June 27, 2014 and December 31, 2013, respectively, reflecting the initial value plus accrued interest, less payments against the promissory note. The fair value of the note receivable is not materially different from its carrying value. | ||||||||||||||||
As discussed above and in accordance with ASC 810 - Consolidation, we consolidate DIFZ. The following tables present selected financial information for DIFZ as of June 27, 2014 and December 31, 2013 and for the three and six months ended June 27, 2014 and June 28, 2013: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in millions) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Assets | $ | 5.4 | $ | 25.9 | ||||||||||||
Liabilities | 0.8 | 22.2 | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | $ | 81.3 | $ | 109 | $ | 163.7 | $ | 222.8 | ||||||||
The following tables present selected financial information for our equity method investees as of June 27, 2014 and December 31, 2013 and for the three and six months ended June 27, 2014 and June 28, 2013: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in millions) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Current assets | $ | 68 | $ | 86.3 | ||||||||||||
Total assets | 69.4 | 88.2 | ||||||||||||||
Current liabilities | 46.5 | 44.5 | ||||||||||||||
Total liabilities | 46.5 | 44.5 | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | $ | 45.7 | $ | 48 | $ | 124.4 | $ | 123.7 | ||||||||
Gross profit | 4.2 | 2.2 | 9.4 | 11.8 | ||||||||||||
Net income | 2.9 | 1.5 | 6.1 | 9.6 | ||||||||||||
Many of our joint ventures and VIEs only perform on a single contract. The modification or termination of a contract under a joint venture or VIE could trigger an impairment in the fair value of our investment in these entities. In the aggregate, our maximum exposure to losses as a result of our investment consists of our (i) $10.8 million investment in unconsolidated subsidiaries, (ii) $1.9 million in receivables from our unconsolidated joint ventures, (iii) $3.1 million note receivable from Palm Trading Investment Corp. and (iv) contingent liabilities that were neither probable nor reasonably estimable as of June 27, 2014. |
Share_Based_Payments_Share_Bas
Share Based Payments Share Based Payments | 6 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Share Based Payments | ' | ||||||||
Share Based Payments | |||||||||
On December 17, 2013 DynCorp Management LLC authorized 100,000 Class B shares as available for issuance to certain members of management and outside directors of Defco Holdings, Inc. (“Defco Holdings”), its non-member manager, and its subsidiaries, including Delta Tucker Holdings, Inc. All of DynCorp International Inc.'s issued and outstanding common stock is owned by the Company, and all of the Company's issued and outstanding common stock is owned by our parent, Holdings. The grant and vesting of the awards is contingent upon the executives' consent to the terms and conditions set forth in the Class B interests agreements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. | |||||||||
In accordance with the provisions of ASC Topic 718, “Compensation—Stock Compensation” we estimate the grant date fair value of the Class B shares using a Monte Carlo simulation, which takes into account subjective assumptions, including the estimated life of the interest and the expected volatility of the underlying stock over the estimated life of the option. | |||||||||
A summary of the Class B share activity for the six months ended June 27, 2014 is as follows: | |||||||||
Number of Shares | Weighted Average Grant Date Fair Value per share | Contractual Term (years) | |||||||
Outstanding at December 31, 2013 | 3,144 | 594.7 | |||||||
Granted: | |||||||||
Class B-1 | 4,339 | 819.26 | 5 | ||||||
Class B-2 | — | — | |||||||
Exercised | — | — | |||||||
Forfeited or expired | (306 | ) | 819.26 | ||||||
Outstanding at June 27, 2014 | 7,177 | 790.77 | |||||||
The total fair value of shares granted during the six months ended June 27, 2014 was $3.6 million. Total compensation cost expensed for the three and six months ended June 27, 2014 was $0.5 million and $2.1 million, respectively. | |||||||||
The following is a summary of the changes in non-vested shares for the period ended June 27, 2014. | |||||||||
Shares | Weighted Average Fair Value | ||||||||
Non-vested shares at December 31, 2013 | 2,123 | $ | 603.37 | ||||||
Granted | 4,339 | $ | 819.26 | ||||||
Vested | (1,713 | ) | $ | 819.26 | |||||
Forfeited | (306 | ) | $ | 819.26 | |||||
Non-vested shares at June 27, 2014 | 4,443 | $ | 790.48 | ||||||
As of June 27, 2014, the total compensation cost related to the non-vested Class B awards, not yet recognized, was $2.2 million which will be recognized over a weighted average period of approximately 3.56 years. |
Collaborative_Arrangements
Collaborative Arrangements | 6 Months Ended |
Jun. 27, 2014 | |
Collaborative Arrangements [Abstract] | ' |
Collaborative Arrangements | ' |
Collaborative Arrangements | |
We participate in a collaborative arrangement with CH2M Hill on the LOGCAP IV program. This arrangement sets forth the sharing of some of the risks and rewards associated with this U.S. government contract. Our current share of profits of the LOGCAP IV program is 70%. | |
We account for this collaborative arrangement under ASC 808 — Collaborative Arrangements and record revenue gross as the principal participant. The cash inflows and outflows, as well as expenses incurred, are recorded in Cost of services in the period realized. Revenue on LOGCAP IV was $175.6 million and $366.9 million during the three and six months ended June 27, 2014, respectively, and $308.3 million and $671.0 million during the three and six months ended June 28, 2013, respectively. Cost of services on LOGCAP IV program was $162.1 million and $340.7 million during three and six months ended June 27, 2014, respectively, and $292.9 million and $631.4 million during the three and six months ended June 28, 2013, respectively. Our share of the total LOGCAP IV profits was $6.4 million and $11.5 million during the three and six months ended June 27, 2014, respectively, and $7.2 million and $17.7 million during the three and six months ended June 28, 2013, respectively. |
Consolidating_Financial_Statem
Consolidating Financial Statements of Subsidiary Guarantors | 6 Months Ended | |||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Consolidating Financial Statements of Subsidiary Guarantors | ' | |||||||||||||||||||||||
Consolidating Financial Statements of Subsidiary Guarantors | ||||||||||||||||||||||||
The Senior Unsecured Notes issued by DynCorp International Inc. ("Subsidiary Issuer") and the Senior Credit Facility are fully and unconditionally guaranteed, jointly and severally, by the Company ("Parent") and all of the domestic subsidiaries of Subsidiary Issuer: DynCorp International LLC, DTS Aviation Services LLC, DynCorp Aerospace Operations LLC, DynCorp International Services LLC, DIV Capital Corporation, Dyn Marine Services of Virginia LLC, Services International LLC, Worldwide Humanitarian Services LLC, Worldwide Recruiting and Staffing Services LLC, Heliworks, LLC, Phoenix Consulting Group LLC and Casals and Associates Inc.("Subsidiary Guarantors"). Each of the Subsidiary Issuers and the Subsidiary Guarantors is 100% owned by the Company. Under the indenture governing the Senior Unsecured Notes, a guarantee of a Subsidiary Guarantor will terminate upon the following customary circumstances: (i) the sale of the capital stock of such Subsidiary Guarantor if such sale complies with the indenture; (ii) the designation of such Subsidiary Guarantor as an unrestricted subsidiary; (iii) if such Subsidiary Guarantor no longer guarantees certain other indebtedness of the Subsidiary Issuer or (iv) the defeasance or discharge of the indenture. | ||||||||||||||||||||||||
Subsequent to the issuance of the Company’s consolidated financial statements on Form 10-K for the period ended December 31, 2013, management determined that within the condensed consolidating statement of cash flows for the six months ended June 28, 2013, the intercompany transfers of the Subsidiary Guarantors in the amount of $24.6 million, previously presented as financing activities, should be classified as investing activities. The classification of these intercompany transfers has been corrected in the condensed consolidating statement of cash flows for the six months ended June 28, 2013 to be presented within investing activities. This correction has no impact on the consolidated statement of cash flows for the six months ended June 28, 2013. | ||||||||||||||||||||||||
The following condensed consolidating financial statements present (i) unaudited condensed consolidating balance sheets as of June 27, 2014 and December 31, 2013, (ii) unaudited condensed consolidating statements of operations and comprehensive income for the three and six months ended June 27, 2014 and June 28, 2013, (iii) unaudited condensed consolidating statements of cash flows for the six months ended June 27, 2014 and June 28, 2013 and (iii) elimination entries necessary to consolidate Parent and its subsidiaries. | ||||||||||||||||||||||||
The Parent company, the Subsidiary Issuer, the combined Subsidiary Guarantors and the combined subsidiary non-guarantors account for their investments in subsidiaries using the equity method of accounting; therefore, the Parent column reflects the equity income of the subsidiary and its subsidiary guarantors, and subsidiary non-guarantors. Additionally, the Subsidiary Guarantors’ column reflects the equity income of its subsidiary non-guarantors. | ||||||||||||||||||||||||
DynCorp International Inc. is considered the Subsidiary Issuer as it issued the Senior Unsecured Notes. | ||||||||||||||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Three Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 595,440 | $ | 85,244 | $ | (89,718 | ) | $ | 590,966 | |||||||||||
Cost of services | — | — | (540,026 | ) | (84,219 | ) | 89,656 | (534,589 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (32,609 | ) | (64 | ) | 62 | (32,611 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (11,874 | ) | (151 | ) | — | (12,025 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 19 | — | — | 19 | ||||||||||||||||||
Impairment of Goodwill, intangibles and long-lived assets | — | — | (91,759 | ) | — | — | (91,759 | ) | ||||||||||||||||
Operating (loss) income | — | — | (80,809 | ) | 810 | — | (79,999 | ) | ||||||||||||||||
Interest expense | — | (17,596 | ) | (588 | ) | — | — | (18,184 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (448 | ) | — | — | — | (448 | ) | ||||||||||||||||
Interest income | — | — | 24 | 7 | — | 31 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (82,072 | ) | (62,397 | ) | 216 | — | 144,253 | — | ||||||||||||||||
Other income, net | — | — | 1,446 | 23 | — | 1,469 | ||||||||||||||||||
(Loss) income before income taxes | (82,072 | ) | (80,441 | ) | (79,711 | ) | 840 | 144,253 | (97,131 | ) | ||||||||||||||
(Provision) benefit for income taxes | — | (1,631 | ) | 17,314 | 96 | — | 15,779 | |||||||||||||||||
Net (loss) income | (82,072 | ) | (82,072 | ) | (62,397 | ) | 936 | 144,253 | (81,352 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (720 | ) | — | (720 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,072 | ) | $ | (82,072 | ) | $ | (62,397 | ) | $ | 216 | $ | 144,253 | $ | (82,072 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Three Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 879,469 | $ | 117,739 | $ | (120,686 | ) | $ | 876,522 | |||||||||||
Cost of services | — | — | (799,549 | ) | (115,682 | ) | 120,658 | (794,573 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (34,037 | ) | (139 | ) | 28 | (34,148 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (12,125 | ) | (149 | ) | — | (12,274 | ) | |||||||||||||||
Earnings from equity method investees | — | — | (1,623 | ) | 2,550 | — | 927 | |||||||||||||||||
Operating income | — | — | 32,135 | 4,319 | — | 36,454 | ||||||||||||||||||
Interest expense | — | (18,858 | ) | (980 | ) | — | — | (19,838 | ) | |||||||||||||||
Interest income | — | — | 21 | 7 | — | 28 | ||||||||||||||||||
Equity in income of consolidated subsidiaries | 8,342 | 20,562 | 3,016 | — | (31,920 | ) | — | |||||||||||||||||
Other (expense) income, net | — | — | (2,634 | ) | 77 | — | (2,557 | ) | ||||||||||||||||
Income (loss) before income taxes | 8,342 | 1,704 | 31,558 | 4,403 | (31,920 | ) | 14,087 | |||||||||||||||||
Benefit (provision) for income taxes | — | 6,638 | (10,996 | ) | (230 | ) | — | (4,588 | ) | |||||||||||||||
Net income (loss) | 8,342 | 8,342 | 20,562 | 4,173 | (31,920 | ) | 9,499 | |||||||||||||||||
Noncontrolling interests | — | — | — | (1,157 | ) | — | (1,157 | ) | ||||||||||||||||
Net income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 8,342 | $ | 8,342 | $ | 20,562 | $ | 3,016 | $ | (31,920 | ) | $ | 8,342 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,211,065 | $ | 172,068 | $ | (179,408 | ) | $ | 1,203,725 | |||||||||||
Cost of services | — | — | (1,104,555 | ) | (169,919 | ) | 179,394 | (1,095,080 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (65,974 | ) | (125 | ) | 14 | (66,085 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (23,231 | ) | (297 | ) | — | (23,528 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 177 | 9,589 | — | 9,766 | ||||||||||||||||||
Impairment of Goodwill, intangibles and long-lived assets | — | — | (91,759 | ) | — | — | (91,759 | ) | ||||||||||||||||
Operating (loss) income | — | — | (74,277 | ) | 11,316 | — | (62,961 | ) | ||||||||||||||||
Interest expense | — | (35,097 | ) | (1,104 | ) | — | — | (36,201 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (621 | ) | — | — | — | (621 | ) | ||||||||||||||||
Interest income | — | — | 70 | 14 | — | 84 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (82,839 | ) | (52,939 | ) | 10,022 | — | 125,756 | — | ||||||||||||||||
Other income, net | — | — | 2,340 | 18 | — | 2,358 | ||||||||||||||||||
(Loss) income before income taxes | (82,839 | ) | (88,657 | ) | (62,949 | ) | 11,348 | 125,756 | (97,341 | ) | ||||||||||||||
Benefit for income taxes | — | 5,818 | 10,010 | 39 | — | 15,867 | ||||||||||||||||||
Net (loss) income | (82,839 | ) | (82,839 | ) | (52,939 | ) | 11,387 | 125,756 | (81,474 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (1,365 | ) | — | (1,365 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,839 | ) | $ | (82,839 | ) | $ | (52,939 | ) | $ | 10,022 | $ | 125,756 | $ | (82,839 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,815,203 | $ | 239,972 | $ | (246,545 | ) | $ | 1,808,630 | |||||||||||
Cost of services | — | — | (1,650,552 | ) | (235,599 | ) | 246,452 | (1,639,699 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (69,435 | ) | (350 | ) | 93 | (69,692 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (23,826 | ) | (295 | ) | — | (24,121 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 823 | 2,550 | — | 3,373 | ||||||||||||||||||
Operating income | — | — | 72,213 | 6,278 | — | 78,491 | ||||||||||||||||||
Interest expense | — | (36,986 | ) | (2,015 | ) | — | — | (39,001 | ) | |||||||||||||||
Interest income | — | — | 33 | 13 | — | 46 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | 23,343 | 47,311 | 3,891 | — | (74,545 | ) | — | |||||||||||||||||
Other (loss) income, net | — | — | (613 | ) | 153 | — | (460 | ) | ||||||||||||||||
Income (loss) before income taxes | 23,343 | 10,325 | 73,509 | 6,444 | (74,545 | ) | 39,076 | |||||||||||||||||
Benefit (provision) for income taxes | — | 13,018 | (26,198 | ) | (204 | ) | — | (13,384 | ) | |||||||||||||||
Net income (loss) | 23,343 | 23,343 | 47,311 | 6,240 | (74,545 | ) | 25,692 | |||||||||||||||||
Noncontrolling interests | — | — | — | (2,349 | ) | — | (2,349 | ) | ||||||||||||||||
Net income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 23,343 | $ | 23,343 | $ | 47,311 | $ | 3,891 | $ | (74,545 | ) | $ | 23,343 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Three Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net (loss) income | $ | (82,072 | ) | $ | (82,072 | ) | $ | (62,397 | ) | $ | 936 | $ | 144,253 | $ | (81,352 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (39 | ) | (39 | ) | — | (39 | ) | 78 | (39 | ) | ||||||||||||||
Other comprehensive loss, before tax | (39 | ) | (39 | ) | — | (39 | ) | 78 | (39 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | (68 | ) | (68 | ) | — | (68 | ) | 136 | (68 | ) | ||||||||||||||
Other comprehensive loss | (107 | ) | (107 | ) | — | (107 | ) | 214 | (107 | ) | ||||||||||||||
Comprehensive (loss) income | (82,179 | ) | (82,179 | ) | (62,397 | ) | 829 | 144,467 | (81,459 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (720 | ) | — | (720 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,179 | ) | $ | (82,179 | ) | $ | (62,397 | ) | $ | 109 | $ | 144,467 | $ | (82,179 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Three Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net income | $ | 8,342 | $ | 8,342 | $ | 20,562 | $ | 4,173 | $ | (31,920 | ) | $ | 9,499 | |||||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (43 | ) | (43 | ) | 38 | (81 | ) | 86 | (43 | ) | ||||||||||||||
Other comprehensive (loss) income, before tax | (43 | ) | (43 | ) | 38 | (81 | ) | 86 | (43 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 15 | 15 | (14 | ) | 29 | (30 | ) | 15 | ||||||||||||||||
Other comprehensive (loss) income | (28 | ) | (28 | ) | 24 | (52 | ) | 56 | (28 | ) | ||||||||||||||
Comprehensive income | 8,314 | 8,314 | 20,586 | 4,121 | (31,864 | ) | 9,471 | |||||||||||||||||
Noncontrolling interests | — | — | — | (1,157 | ) | — | (1,157 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 8,314 | $ | 8,314 | $ | 20,586 | $ | 2,964 | $ | (31,864 | ) | $ | 8,314 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net (loss) income | $ | (82,839 | ) | $ | (82,839 | ) | $ | (52,939 | ) | $ | 11,387 | $ | 125,756 | $ | (81,474 | ) | ||||||||
Other comprehensive loss: | ||||||||||||||||||||||||
Currency translation adjustment | (73 | ) | (73 | ) | — | (73 | ) | 146 | (73 | ) | ||||||||||||||
Other comprehensive loss, before tax | (73 | ) | (73 | ) | — | (73 | ) | 146 | (73 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 26 | 26 | — | 26 | (52 | ) | 26 | |||||||||||||||||
Other comprehensive loss | (47 | ) | (47 | ) | — | (47 | ) | 94 | (47 | ) | ||||||||||||||
Comprehensive (loss) income | (82,886 | ) | (82,886 | ) | (52,939 | ) | 11,340 | 125,850 | (81,521 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (1,365 | ) | — | (1,365 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,886 | ) | $ | (82,886 | ) | $ | (52,939 | ) | $ | 9,975 | $ | 125,850 | $ | (82,886 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net income | $ | 23,343 | $ | 23,343 | $ | 47,311 | $ | 6,240 | $ | (74,545 | ) | $ | 25,692 | |||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||
Currency translation adjustment | (454 | ) | (454 | ) | (241 | ) | (213 | ) | 908 | (454 | ) | |||||||||||||
Other comprehensive loss, before tax | (454 | ) | (454 | ) | (241 | ) | (213 | ) | 908 | (454 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | 163 | 163 | 86 | 77 | (326 | ) | 163 | |||||||||||||||||
Other comprehensive loss | (291 | ) | (291 | ) | (155 | ) | (136 | ) | 582 | (291 | ) | |||||||||||||
Comprehensive income | 23,052 | 23,052 | 47,156 | 6,104 | (73,963 | ) | 25,401 | |||||||||||||||||
Noncontrolling interests | — | — | — | (2,349 | ) | — | (2,349 | ) | ||||||||||||||||
Comprehensive income attributable to Delta Tucker Holdings, Inc. | $ | 23,052 | $ | 23,052 | $ | 47,156 | $ | 3,755 | $ | (73,963 | ) | $ | 23,052 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 139,657 | $ | 13,756 | $ | — | $ | 153,413 | ||||||||||||
Restricted cash | — | — | 1,659 | — | — | 1,659 | ||||||||||||||||||
Accounts receivable, net | — | — | 481,763 | 1,369 | 103 | 483,235 | ||||||||||||||||||
Intercompany receivables | — | — | 224,574 | 8,936 | (233,510 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 117,400 | 513 | 104 | 118,017 | ||||||||||||||||||
Total current assets | — | — | 965,053 | 24,574 | (233,303 | ) | 756,324 | |||||||||||||||||
Property and equipment, net | — | — | 23,339 | 237 | — | 23,576 | ||||||||||||||||||
Goodwill | — | — | 170,626 | 32,399 | — | 203,025 | ||||||||||||||||||
Tradenames, net | — | — | 43,376 | — | — | 43,376 | ||||||||||||||||||
Other intangibles, net | — | — | 204,173 | 877 | — | 205,050 | ||||||||||||||||||
Investment in subsidiaries | 147,861 | 1,009,111 | 55,318 | — | (1,212,290 | ) | — | |||||||||||||||||
Other assets, net | 555 | 13,891 | 17,386 | — | — | 31,832 | ||||||||||||||||||
Total assets | $ | 148,416 | $ | 1,023,002 | $ | 1,479,271 | $ | 58,087 | $ | (1,445,593 | ) | $ | 1,263,183 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 174,530 | $ | 859 | $ | (1,646 | ) | $ | 173,743 | |||||||||||
Accrued payroll and employee costs | — | — | 105,560 | 1,555 | 2,027 | 109,142 | ||||||||||||||||||
Intercompany payables | 45,641 | 178,932 | 8,937 | — | (233,510 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 19,125 | 6 | — | 19,131 | ||||||||||||||||||
Other accrued liabilities | — | 23,937 | 129,670 | 349 | (71 | ) | 153,885 | |||||||||||||||||
Income taxes payable | — | — | 8,123 | — | (103 | ) | 8,020 | |||||||||||||||||
Total current liabilities | 45,641 | 202,869 | 445,945 | 2,769 | (233,303 | ) | 463,921 | |||||||||||||||||
Long-term debt, less current portion | — | 672,272 | — | — | — | 672,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | 11,528 | — | — | 11,528 | ||||||||||||||||||
Other long-term liabilities | — | — | 6,852 | — | — | 6,852 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,835 | — | — | 5,835 | ||||||||||||||||||
Equity | 102,775 | 147,861 | 1,009,111 | 55,318 | (1,212,290 | ) | 102,775 | |||||||||||||||||
Total liabilities and equity | $ | 148,416 | $ | 1,023,002 | $ | 1,479,271 | $ | 58,087 | $ | (1,445,593 | ) | $ | 1,263,183 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 144,025 | $ | 26,820 | $ | — | $ | 170,845 | ||||||||||||
Restricted cash | — | — | 1,659 | — | — | 1,659 | ||||||||||||||||||
Accounts receivable, net | — | — | 596,901 | 1,990 | (21,755 | ) | 577,136 | |||||||||||||||||
Intercompany receivables | — | — | 173,987 | 7,857 | (181,844 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 123,761 | 456 | 293 | 124,510 | ||||||||||||||||||
Total current assets | — | — | 1,040,333 | 37,123 | (203,306 | ) | 874,150 | |||||||||||||||||
Property and equipment, net | — | — | 23,797 | 323 | — | 24,120 | ||||||||||||||||||
Goodwill | — | — | 261,367 | 32,400 | — | 293,767 | ||||||||||||||||||
Tradenames, net | — | — | 43,464 | — | — | 43,464 | ||||||||||||||||||
Other intangibles, net | — | — | 224,152 | 1,087 | — | 225,239 | ||||||||||||||||||
Investment in subsidiaries | 228,870 | 1,095,853 | 45,383 | — | (1,370,106 | ) | — | |||||||||||||||||
Other assets, net | 891 | 17,525 | 20,765 | — | — | 39,181 | ||||||||||||||||||
Total assets | $ | 229,761 | $ | 1,113,378 | $ | 1,659,261 | $ | 70,933 | $ | (1,573,412 | ) | $ | 1,499,921 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 192,456 | $ | 2,243 | $ | (1,553 | ) | $ | 193,146 | |||||||||||
Accrued payroll and employee costs | — | — | 111,547 | 22,770 | (19,983 | ) | 114,334 | |||||||||||||||||
Intercompany payables | 45,976 | 128,011 | 7,857 | — | (181,844 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 30,960 | 5 | — | 30,965 | ||||||||||||||||||
Other accrued liabilities | — | 24,225 | 175,796 | 438 | 74 | 200,533 | ||||||||||||||||||
Income taxes payable | — | — | 13,926 | 94 | — | 14,020 | ||||||||||||||||||
Total current liabilities | 45,976 | 152,236 | 532,542 | 25,550 | (203,306 | ) | 552,998 | |||||||||||||||||
Long-term debt, less current portion | — | 732,272 | — | — | — | 732,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | 17,359 | — | — | 17,359 | ||||||||||||||||||
Other long-term liabilities | — | — | 7,632 | — | — | 7,632 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,875 | — | — | 5,875 | ||||||||||||||||||
Equity | 183,785 | 228,870 | 1,095,853 | 45,383 | (1,370,106 | ) | 183,785 | |||||||||||||||||
Total liabilities and equity | $ | 229,761 | $ | 1,113,378 | $ | 1,659,261 | $ | 70,933 | $ | (1,573,412 | ) | $ | 1,499,921 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 334 | $ | 9,080 | $ | 55,721 | $ | (10,114 | ) | $ | (936 | ) | $ | 54,085 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (6,448 | ) | — | — | (6,448 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 33 | — | — | 33 | ||||||||||||||||||
Purchase of software | — | — | (887 | ) | — | — | (887 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 2,884 | — | — | 2,884 | ||||||||||||||||||
Contributions to equity method investees | — | — | — | — | — | — | ||||||||||||||||||
Transfer to Parent | — | — | (50,586 | ) | (1,077 | ) | 51,663 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (55,004 | ) | (1,077 | ) | 51,663 | (4,418 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 2,500 | — | — | — | 2,500 | ||||||||||||||||||
Payments on long-term debt | — | (62,500 | ) | — | — | — | (62,500 | ) | ||||||||||||||||
Payments of deferred financing costs | — | — | — | — | — | — | ||||||||||||||||||
Borrowings related to financed insurance | — | — | 16,472 | — | — | 16,472 | ||||||||||||||||||
Payments related to financed insurance | — | — | (22,634 | ) | — | — | (22,634 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (1,873 | ) | 936 | (937 | ) | ||||||||||||||||
Transfers (to) from Affiliates | (334 | ) | 50,920 | 1,077 | — | (51,663 | ) | — | ||||||||||||||||
Net cash used in financing activities | (334 | ) | (9,080 | ) | (5,085 | ) | (1,873 | ) | (50,727 | ) | (67,099 | ) | ||||||||||||
Net decrease in cash and cash equivalents | — | — | (4,368 | ) | (13,064 | ) | — | (17,432 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 144,025 | 26,820 | — | 170,845 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 139,657 | $ | 13,756 | $ | — | $ | 153,413 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For The Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 99 | $ | 12,462 | $ | 56,793 | $ | (15,631 | ) | $ | (2,812 | ) | $ | 50,911 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (1,212 | ) | (8 | ) | — | (1,220 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 167 | — | — | 167 | ||||||||||||||||||
Purchase of software | — | — | (2,557 | ) | — | — | (2,557 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 769 | — | — | 769 | ||||||||||||||||||
Transfer to Parent | — | — | (24,584 | ) | — | 24,584 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (27,417 | ) | (8 | ) | 24,584 | (2,841 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 317,600 | — | — | — | 317,600 | ||||||||||||||||||
Payments on long-term debt | — | (318,237 | ) | — | — | — | (318,237 | ) | ||||||||||||||||
Payments of deferred financing costs | — | — | (2,139 | ) | — | — | (2,139 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 1,063 | — | — | 1,063 | ||||||||||||||||||
Payments related to financed insurance | — | — | (26,471 | ) | — | — | (26,471 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (5,624 | ) | 2,812 | (2,812 | ) | ||||||||||||||||
Transfers (to) from Affiliates | (99 | ) | (11,825 | ) | — | 36,508 | (24,584 | ) | — | |||||||||||||||
Net cash (used in) provided by financing activities | (99 | ) | (12,462 | ) | (27,547 | ) | 30,884 | (21,772 | ) | (30,996 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | 1,829 | 15,245 | — | 17,074 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 74,907 | 43,868 | — | 118,775 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 76,736 | $ | 59,113 | $ | — | $ | 135,849 | ||||||||||||
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 27, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
We evaluated potential subsequent events occurring after the period end date through the date the financial statements were issued and concluded that there were no subsequent events for the quarter ended June 27, 2014, except as disclosed within the Notes to the unaudited condensed consolidated financial statements. |
Basis_of_Presentation_and_Acco1
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp International Inc., through its subsidiaries (together, "the Company"), provides defense and technical services and government outsourced solutions primarily to U.S. government agencies domestically and internationally. The Company was incorporated in the state of Delaware on April 1, 2010. Our customers include the U.S. Department of Defense ("DoD"), the U.S. Department of State ("DoS"), the U.S. Agency for International Development ("USAID"), foreign governments, commercial customers and certain other U.S. federal, state and local government departments and agencies. Unless the context otherwise indicates, references herein to "we," "our," "us," or "the Company" refer to Delta Tucker Holdings, Inc. and our consolidated subsidiaries. | |
The unaudited condensed consolidated financial statements include the accounts of the Company and our domestic and foreign subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. | |
Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that all disclosures are adequate and do not make the information presented misleading. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
In the opinion of management, all adjustments necessary to fairly present our financial position as of June 27, 2014 and December 31, 2013, the results of operations and statements of comprehensive income for the three and six months ended June 27, 2014 and June 28, 2013 and the statements of equity and cash flows for the six months ended June 27, 2014 and June 28, 2013 have been included. The results of operations and the statements of comprehensive income for three and six months ended June 27, 2014 and June 28, 2013 and the statements of equity and cash flows for the six months ended June 27, 2014 and June 28, 2013 are not necessarily indicative of the results to be expected for the full calendar year or for any future periods. We use estimates and assumptions required for preparation of the financial statements. The estimates are primarily based on historical experience and business knowledge and are revised as circumstances change. Our actual results may differ from these estimates. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The unaudited condensed consolidated financial statements include the accounts of both our domestic and foreign subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company has investments in joint ventures that are variable interest entities ("VIEs"). The VIE investments are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 — Consolidation. In cases where the Company has (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, the Company consolidates the entity. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. | |
We classify our equity method investees in two distinct groups based on management’s day-to-day involvement in the operations of each entity and the nature of each joint venture’s business. If the joint venture is deemed to be an extension of one of our segments and operationally integral to the business, our share of the joint venture’s earnings is reported within operating income in Earnings from equity method investees in the consolidated statement of operations. If the Company considers our involvement less significant, the share of the joint venture’s net earnings is reported in Other income, net in the consolidated statement of operations. | |
Noncontrolling interests | ' |
Noncontrolling interests | |
We record the impact of our partners' interest in less than wholly owned consolidated VIEs as noncontrolling interests. Currently, DynCorp International FZ-LLC ("DIFZ") is our only consolidated VIE for which we do not own 100% of the entity. We hold 25% ownership interest in DIFZ. We continue to consolidate DIFZ as we still exercise power over activities that significantly impact DIFZ’s economic performance and have the obligation to absorb losses or receive benefits of DIFZ that could potentially be significant to DIFZ. Noncontrolling interests is presented on the face of the statement of operations as an increase or reduction in arriving at net income attributable to Delta Tucker Holdings, Inc. Noncontrolling interests on the balance sheet is located in the equity section. See Note 10 for further discussion regarding DIFZ. | |
Use of Estimates | ' |
Use of Estimates | |
We prepare our financial statements in conformity with GAAP, which requires us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the unaudited condensed consolidated statements of operations in the period that they are determined. | |
Accounting Policies | ' |
Accounting Policies | |
There have been no material changes to our significant accounting policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Accounting Developments | ' |
Accounting Developments | |
On May 28, 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 supersedes existing revenue recognition guidance, including ASC No. 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts. ASU 2014-09 outlines a single set of comprehensive principles for recognizing revenue under GAAP. Among other things, it requires companies to identify contractual performance obligations and determine whether revenue should be recognized at a point in time or over time. These concepts, as well as other aspects of ASU 2014-09, may change the method and/or timing of revenue recognition for certain of our contracts. ASU 2014-09 will be effective January 1, 2017, and may be applied either retrospectively or through the use of a modified-retrospective method. We are currently evaluating both methods of adoption as well as the effect ASU 2014-09 will have on the company’s consolidated financial position, results of operations and cash flows. | |
Other accounting standards updates effective after June 27, 2014 are not expected to have a material effect on the Company’s consolidated financial position or its annual results of operations and cash flows. |
Basis_of_Presentation_and_Acco2
Basis of Presentation and Accounting Policies (Tables) | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Aggregate gross favorable and unfavorable adjustments to income before income taxes | ' | |||||||||||||||
The following table presents the aggregate gross favorable and unfavorable adjustments to income before income taxes resulting from changes in contract estimates for the three and six months ended June 27, 2014 and June 28, 2013. | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Gross favorable adjustments | $ | 3.7 | $ | 13 | $ | 4.3 | $ | 25.3 | ||||||||
Gross unfavorable adjustments | (2.2 | ) | (11.8 | ) | (5.4 | ) | (20.9 | ) | ||||||||
Net adjustments | $ | 1.5 | $ | 1.2 | $ | (1.1 | ) | $ | 4.4 | |||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Prepaid expenses and other current assets | ' | |||||||
Prepaid expenses and other current assets — Prepaid expenses and other current assets were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Prepaid expenses | $ | 32,886 | $ | 29,611 | ||||
Income tax refunds receivable | 7,745 | 7,334 | ||||||
Inventories | 27,674 | 27,008 | ||||||
Aircraft parts inventory held on consignment | 2,324 | 2,404 | ||||||
Work-in-process inventory | 32,955 | 28,444 | ||||||
Joint venture receivables | 1,928 | 2,251 | ||||||
Assets held for sale | 2,000 | 3,017 | ||||||
Other current assets | 10,505 | 24,441 | ||||||
Total prepaid expenses and other current assets | $ | 118,017 | $ | 124,510 | ||||
Property, plant and equipment | ' | |||||||
Property and equipment, net — Property and equipment, net were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Helicopters | $ | 4,007 | $ | 4,007 | ||||
Computers and other equipment | 14,969 | 14,258 | ||||||
Leasehold improvements | 17,981 | 17,585 | ||||||
Office furniture and fixtures | 4,027 | 3,006 | ||||||
Gross property and equipment | 40,984 | 38,856 | ||||||
Less accumulated depreciation | (17,408 | ) | (14,736 | ) | ||||
Total property and equipment, net | $ | 23,576 | $ | 24,120 | ||||
Other assets, net | ' | |||||||
Other assets, net — Other assets, net were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Deferred financing costs, net | $ | 13,890 | $ | 17,526 | ||||
Investment in affiliates | 10,771 | 13,477 | ||||||
Palm promissory note, long-term portion | 2,281 | 2,731 | ||||||
Other | 4,890 | 5,447 | ||||||
Total other assets, net | $ | 31,832 | $ | 39,181 | ||||
Accrued payroll and employee costs | ' | |||||||
Accrued payroll and employee costs — Accrued payroll and employee costs were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Wages, compensation and other benefits | $ | 86,320 | $ | 93,007 | ||||
Accrued vacation | 22,015 | 20,383 | ||||||
Accrued contributions to employee benefit plans | 807 | 944 | ||||||
Total accrued payroll and employee costs | $ | 109,142 | $ | 114,334 | ||||
Accrued liabilities | ' | |||||||
Accrued liabilities — Accrued liabilities were: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Customer liabilities | $ | 67,762 | $ | 61,856 | ||||
Accrued insurance | 20,316 | 40,120 | ||||||
Accrued interest | 24,287 | 24,641 | ||||||
Unrecognized tax benefit | 8,533 | 10,132 | ||||||
Contract losses | 5,954 | 13,738 | ||||||
Legal reserves | 4,471 | 14,147 | ||||||
Subcontractor retention | 2,800 | 4,300 | ||||||
Financed insurance | — | 6,162 | ||||||
Other | 19,762 | 25,437 | ||||||
Total accrued liabilities | $ | 153,885 | $ | 200,533 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||
Jun. 27, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill balances for segments | ' | |||||||||||||
The carrying amounts of goodwill for each of our segments as of June 27, 2014 were as follows: | ||||||||||||||
(Amounts in thousands) | DynAviation | DynLogistics | Total | |||||||||||
Goodwill balance as of December 31, 2013 | $ | 160,932 | $ | 132,835 | $ | 293,767 | ||||||||
Changes between January 1, 2014 and June 27, 2014 | — | (90,742 | ) | (90,742 | ) | |||||||||
Goodwill balance as of June 27, 2014 | $ | 160,932 | $ | 42,093 | $ | 203,025 | ||||||||
Information about changes relating to certain intangible assets | ' | |||||||||||||
The following tables provide information about changes relating to certain intangible assets: | ||||||||||||||
As of June 27, 2014 | ||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | ||||||||||||
Remaining | Value | |||||||||||||
Useful Life | ||||||||||||||
(Years) | ||||||||||||||
Other intangible assets: | ||||||||||||||
Customer-related intangible assets | 5.1 | $ | 350,912 | $ | (157,888 | ) | $ | 193,024 | ||||||
Other | ||||||||||||||
Finite-lived | 7 | 20,825 | (13,858 | ) | 6,967 | |||||||||
Indefinite-lived | $ | 5,059 | $ | — | $ | 5,059 | ||||||||
Total other intangibles | $ | 376,796 | $ | (171,746 | ) | $ | 205,050 | |||||||
Tradenames: | ||||||||||||||
Finite-lived | 0.9 | $ | 869 | $ | (715 | ) | $ | 154 | ||||||
Indefinite-lived | 43,222 | — | 43,222 | |||||||||||
Total tradenames | $ | 44,091 | $ | (715 | ) | $ | 43,376 | |||||||
As of December 31, 2013 | ||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Net | ||||||||||
Average | Carrying | Amortization | ||||||||||||
Remaining | Value | |||||||||||||
Useful Life | ||||||||||||||
(Years) | ||||||||||||||
Other intangible assets: | ||||||||||||||
Customer-related intangible assets | 5.6 | $ | 350,912 | $ | (138,623 | ) | $ | 212,289 | ||||||
Other | ||||||||||||||
Finite-lived | 6.3 | 22,042 | (14,151 | ) | 7,891 | |||||||||
Indefinite-lived | 5,059 | — | 5,059 | |||||||||||
Total other intangibles | $ | 378,013 | $ | (152,774 | ) | $ | 225,239 | |||||||
Tradenames: | ||||||||||||||
Finite-lived | 1.4 | $ | 869 | $ | (627 | ) | $ | 242 | ||||||
Indefinite-lived | 43,222 | — | 43,222 | |||||||||||
Total tradenames | $ | 44,091 | $ | (627 | ) | $ | 43,464 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Domestic and foreign components of Income (loss) before income taxes | ' | |||||||||||||||
The domestic and foreign components of (Loss) income before income taxes are as follows: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Domestic | $ | (94,549 | ) | $ | 13,950 | $ | (95,103 | ) | $ | 40,370 | ||||||
Foreign | (2,582 | ) | 137 | (2,238 | ) | (1,294 | ) | |||||||||
(Loss) income before income taxes | $ | (97,131 | ) | $ | 14,087 | $ | (97,341 | ) | $ | 39,076 | ||||||
Provision for income taxes | ' | |||||||||||||||
The Benefit (provision) for income taxes consists of the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Current portion: | ||||||||||||||||
Federal | $ | — | $ | — | $ | — | $ | — | ||||||||
State | (389 | ) | (147 | ) | (383 | ) | (375 | ) | ||||||||
Foreign | (1,062 | ) | (3,691 | ) | (3,058 | ) | (5,058 | ) | ||||||||
$ | (1,451 | ) | $ | (3,838 | ) | $ | (3,441 | ) | $ | (5,433 | ) | |||||
Deferred portion: | ||||||||||||||||
Federal | $ | 16,798 | $ | (683 | ) | $ | 18,876 | $ | (7,773 | ) | ||||||
State | 491 | (62 | ) | 491 | (175 | ) | ||||||||||
Foreign | (59 | ) | (5 | ) | (59 | ) | (3 | ) | ||||||||
17,230 | (750 | ) | 19,308 | (7,951 | ) | |||||||||||
Benefit (provision) from income taxes | $ | 15,779 | $ | (4,588 | ) | $ | 15,867 | $ | (13,384 | ) | ||||||
Deferred tax liabilities, net | ' | |||||||||||||||
Deferred tax liabilities, net consist of the following: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Current deferred tax liabilities, net | $ | (19,131 | ) | $ | (30,965 | ) | ||||||||||
Non-current deferred tax liabilities, net | (11,528 | ) | (17,359 | ) | ||||||||||||
Deferred tax liabilities, net | $ | (30,659 | ) | $ | (48,324 | ) | ||||||||||
Reconciliation of the statutory federal income tax rate to Company's effective rate | ' | |||||||||||||||
A reconciliation of the statutory federal income tax rate to our effective rate is provided below: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | |||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | 35 | % | ||||||||
State income tax, less effect of federal deduction | 0.1 | % | 1.5 | % | 0.1 | % | 1.4 | % | ||||||||
Goodwill Impairment | (18.2 | )% | — | % | (18.2 | )% | — | % | ||||||||
Noncontrolling interests | 0.4 | % | (1.9 | )% | 0.4 | % | (2.1 | )% | ||||||||
Other | (1.1 | )% | (2.0 | )% | (1.1 | )% | — | % | ||||||||
Effective tax rate | 16.2 | % | 32.6 | % | 16.2 | % | 34.3 | % |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounts receivable | ' | |||||||
Accounts receivable, net consisted of the following: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
Billed | $ | 144,430 | $ | 179,586 | ||||
Unbilled | 338,805 | 397,550 | ||||||
Total accounts receivable, net | $ | 483,235 | $ | 577,136 | ||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Estimate of fair value of long-term debt based on quoted prices in active markets | ' | |||||||||||||||
As Of | ||||||||||||||||
June 27, 2014 | December 31, 2013 | |||||||||||||||
(Amounts in thousands) | Carrying | Fair | Carrying | Fair | ||||||||||||
Amount | Value | Amount | Value | |||||||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 468,650 | $ | 455,000 | $ | 468,650 | ||||||||
Term Loan | 217,272 | 217,272 | 277,272 | 278,658 | ||||||||||||
Total long-term debt | $ | 672,272 | $ | 685,922 | $ | 732,272 | $ | 747,308 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | |||||||
Jun. 27, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||
Schedule of long-term debt | ' | |||||||
Long-term debt consisted of the following: | ||||||||
As Of | ||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 455,000 | ||||
Term loan | 217,272 | 277,272 | ||||||
Total long-term debt | $ | 672,272 | $ | 732,272 | ||||
Schedule of debt redemption prices | ' | |||||||
Unsecured Notes on any applicable redemption date if redeemed during the 12-month period commencing on July 1 of the years set forth below are as follows: | ||||||||
Year | Redemption Price | |||||||
2014 | 105.2 | % | ||||||
2015 | 102.6 | % | ||||||
2016 and thereafter | 100 | % |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of the financial information of the reportable segments reconciled | ' | |||||||||||||||
The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in thousands) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | ||||||||||||||||
DynLogistics | $ | 290,340 | $ | 500,518 | $ | 607,507 | $ | 1,067,575 | ||||||||
DynAviation | 300,737 | 380,418 | 596,472 | 748,094 | ||||||||||||
Headquarters / Other (1) | (111 | ) | (4,414 | ) | (254 | ) | (7,039 | ) | ||||||||
Total revenue | $ | 590,966 | $ | 876,522 | $ | 1,203,725 | $ | 1,808,630 | ||||||||
Operating (loss) income | ||||||||||||||||
DynLogistics | $ | (80,803 | ) | $ | 14,328 | $ | (68,773 | ) | $ | 32,857 | ||||||
DynAviation | 10,613 | 31,857 | 21,900 | 64,618 | ||||||||||||
Headquarters / Other (2) | (9,809 | ) | (9,731 | ) | (16,088 | ) | (18,984 | ) | ||||||||
Total operating (loss) income | $ | (79,999 | ) | $ | 36,454 | $ | (62,961 | ) | $ | 78,491 | ||||||
Depreciation and amortization | ||||||||||||||||
DynLogistics | $ | 11 | $ | 221 | $ | 23 | $ | 449 | ||||||||
DynAviation | 367 | 316 | 733 | 621 | ||||||||||||
Headquarters / Other | 11,883 | 12,173 | 23,246 | 23,928 | ||||||||||||
Total depreciation and amortization (3) | $ | 12,261 | $ | 12,710 | $ | 24,002 | $ | 24,998 | ||||||||
-1 | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. | |||||||||||||||
-2 | Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. Additionally, operating income for our DynGlobal segment in support of the development of this business during the three and six months ended June 27, 2014 are currently included in Headquarters / Other. | |||||||||||||||
-3 | Includes amounts included in Cost of services of $0.2 million and $0.5 million and for the three and six months ended June 27, 2014, respectively, and $0.4 million and $0.9 million for the three and six months ended June 28, 2013, respectively | |||||||||||||||
Schedule of assets allocation to segment | ' | |||||||||||||||
The following is a summary of the assets of the reportable segments reconciled to the amounts reported in the consolidated financial statements: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in thousands) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Assets | ||||||||||||||||
DynLogistics | $ | 422,324 | $ | 591,304 | ||||||||||||
DynAviation | 419,659 | 447,646 | ||||||||||||||
Headquarters / Other (1) | 421,200 | 460,971 | ||||||||||||||
Total assets | $ | 1,263,183 | $ | 1,499,921 | ||||||||||||
-1 | Assets primarily include cash, investments in unconsolidated subsidiaries, deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. Additionally, assets for our DynGlobal segment, in support of the development of the business, during the six months ended June 27, 2014 is currently included in Headquarters / Other. |
Related_Parties_Joint_Ventures1
Related Parties, Joint Ventures and Variable Interest Entities (Tables) | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Ownership percentage of Joint Ventures and Variable Interest Entities | ' | |||||||||||||||
As Of | ||||||||||||||||
(Amounts in millions) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Assets | $ | 5.4 | $ | 25.9 | ||||||||||||
Liabilities | 0.8 | 22.2 | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | $ | 81.3 | $ | 109 | $ | 163.7 | $ | 222.8 | ||||||||
Selected financial information for related parties and equity method investees | ' | |||||||||||||||
The following tables present selected financial information for our equity method investees as of June 27, 2014 and December 31, 2013 and for the three and six months ended June 27, 2014 and June 28, 2013: | ||||||||||||||||
As Of | ||||||||||||||||
(Amounts in millions) | June 27, 2014 | December 31, 2013 | ||||||||||||||
Current assets | $ | 68 | $ | 86.3 | ||||||||||||
Total assets | 69.4 | 88.2 | ||||||||||||||
Current liabilities | 46.5 | 44.5 | ||||||||||||||
Total liabilities | 46.5 | 44.5 | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(Amounts in millions) | 27-Jun-14 | 28-Jun-13 | 27-Jun-14 | 28-Jun-13 | ||||||||||||
Revenue | $ | 45.7 | $ | 48 | $ | 124.4 | $ | 123.7 | ||||||||
Gross profit | 4.2 | 2.2 | 9.4 | 11.8 | ||||||||||||
Net income | 2.9 | 1.5 | 6.1 | 9.6 | ||||||||||||
Share_Based_Payments_Share_Bas1
Share Based Payments Share Based Payments (Tables) | 6 Months Ended | ||||||||
Jun. 27, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Summary of share activity | ' | ||||||||
A summary of the Class B share activity for the six months ended June 27, 2014 is as follows: | |||||||||
Number of Shares | Weighted Average Grant Date Fair Value per share | Contractual Term (years) | |||||||
Outstanding at December 31, 2013 | 3,144 | 594.7 | |||||||
Granted: | |||||||||
Class B-1 | 4,339 | 819.26 | 5 | ||||||
Class B-2 | — | — | |||||||
Exercised | — | — | |||||||
Forfeited or expired | (306 | ) | 819.26 | ||||||
Outstanding at June 27, 2014 | 7,177 | 790.77 | |||||||
Summary of non-vested share activity | ' | ||||||||
The following is a summary of the changes in non-vested shares for the period ended June 27, 2014. | |||||||||
Shares | Weighted Average Fair Value | ||||||||
Non-vested shares at December 31, 2013 | 2,123 | $ | 603.37 | ||||||
Granted | 4,339 | $ | 819.26 | ||||||
Vested | (1,713 | ) | $ | 819.26 | |||||
Forfeited | (306 | ) | $ | 819.26 | |||||
Non-vested shares at June 27, 2014 | 4,443 | $ | 790.48 | ||||||
Consolidating_Financial_Statem1
Consolidating Financial Statements of Subsidiary Guarantors (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 27, 2014 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||||||||||
Condensed statement of operations | ' | |||||||||||||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Three Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 595,440 | $ | 85,244 | $ | (89,718 | ) | $ | 590,966 | |||||||||||
Cost of services | — | — | (540,026 | ) | (84,219 | ) | 89,656 | (534,589 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (32,609 | ) | (64 | ) | 62 | (32,611 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (11,874 | ) | (151 | ) | — | (12,025 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 19 | — | — | 19 | ||||||||||||||||||
Impairment of Goodwill, intangibles and long-lived assets | — | — | (91,759 | ) | — | — | (91,759 | ) | ||||||||||||||||
Operating (loss) income | — | — | (80,809 | ) | 810 | — | (79,999 | ) | ||||||||||||||||
Interest expense | — | (17,596 | ) | (588 | ) | — | — | (18,184 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (448 | ) | — | — | — | (448 | ) | ||||||||||||||||
Interest income | — | — | 24 | 7 | — | 31 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (82,072 | ) | (62,397 | ) | 216 | — | 144,253 | — | ||||||||||||||||
Other income, net | — | — | 1,446 | 23 | — | 1,469 | ||||||||||||||||||
(Loss) income before income taxes | (82,072 | ) | (80,441 | ) | (79,711 | ) | 840 | 144,253 | (97,131 | ) | ||||||||||||||
(Provision) benefit for income taxes | — | (1,631 | ) | 17,314 | 96 | — | 15,779 | |||||||||||||||||
Net (loss) income | (82,072 | ) | (82,072 | ) | (62,397 | ) | 936 | 144,253 | (81,352 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (720 | ) | — | (720 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,072 | ) | $ | (82,072 | ) | $ | (62,397 | ) | $ | 216 | $ | 144,253 | $ | (82,072 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Three Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 879,469 | $ | 117,739 | $ | (120,686 | ) | $ | 876,522 | |||||||||||
Cost of services | — | — | (799,549 | ) | (115,682 | ) | 120,658 | (794,573 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (34,037 | ) | (139 | ) | 28 | (34,148 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (12,125 | ) | (149 | ) | — | (12,274 | ) | |||||||||||||||
Earnings from equity method investees | — | — | (1,623 | ) | 2,550 | — | 927 | |||||||||||||||||
Operating income | — | — | 32,135 | 4,319 | — | 36,454 | ||||||||||||||||||
Interest expense | — | (18,858 | ) | (980 | ) | — | — | (19,838 | ) | |||||||||||||||
Interest income | — | — | 21 | 7 | — | 28 | ||||||||||||||||||
Equity in income of consolidated subsidiaries | 8,342 | 20,562 | 3,016 | — | (31,920 | ) | — | |||||||||||||||||
Other (expense) income, net | — | — | (2,634 | ) | 77 | — | (2,557 | ) | ||||||||||||||||
Income (loss) before income taxes | 8,342 | 1,704 | 31,558 | 4,403 | (31,920 | ) | 14,087 | |||||||||||||||||
Benefit (provision) for income taxes | — | 6,638 | (10,996 | ) | (230 | ) | — | (4,588 | ) | |||||||||||||||
Net income (loss) | 8,342 | 8,342 | 20,562 | 4,173 | (31,920 | ) | 9,499 | |||||||||||||||||
Noncontrolling interests | — | — | — | (1,157 | ) | — | (1,157 | ) | ||||||||||||||||
Net income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 8,342 | $ | 8,342 | $ | 20,562 | $ | 3,016 | $ | (31,920 | ) | $ | 8,342 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,211,065 | $ | 172,068 | $ | (179,408 | ) | $ | 1,203,725 | |||||||||||
Cost of services | — | — | (1,104,555 | ) | (169,919 | ) | 179,394 | (1,095,080 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (65,974 | ) | (125 | ) | 14 | (66,085 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (23,231 | ) | (297 | ) | — | (23,528 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 177 | 9,589 | — | 9,766 | ||||||||||||||||||
Impairment of Goodwill, intangibles and long-lived assets | — | — | (91,759 | ) | — | — | (91,759 | ) | ||||||||||||||||
Operating (loss) income | — | — | (74,277 | ) | 11,316 | — | (62,961 | ) | ||||||||||||||||
Interest expense | — | (35,097 | ) | (1,104 | ) | — | — | (36,201 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (621 | ) | — | — | — | (621 | ) | ||||||||||||||||
Interest income | — | — | 70 | 14 | — | 84 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (82,839 | ) | (52,939 | ) | 10,022 | — | 125,756 | — | ||||||||||||||||
Other income, net | — | — | 2,340 | 18 | — | 2,358 | ||||||||||||||||||
(Loss) income before income taxes | (82,839 | ) | (88,657 | ) | (62,949 | ) | 11,348 | 125,756 | (97,341 | ) | ||||||||||||||
Benefit for income taxes | — | 5,818 | 10,010 | 39 | — | 15,867 | ||||||||||||||||||
Net (loss) income | (82,839 | ) | (82,839 | ) | (52,939 | ) | 11,387 | 125,756 | (81,474 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (1,365 | ) | — | (1,365 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,839 | ) | $ | (82,839 | ) | $ | (52,939 | ) | $ | 10,022 | $ | 125,756 | $ | (82,839 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 1,815,203 | $ | 239,972 | $ | (246,545 | ) | $ | 1,808,630 | |||||||||||
Cost of services | — | — | (1,650,552 | ) | (235,599 | ) | 246,452 | (1,639,699 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (69,435 | ) | (350 | ) | 93 | (69,692 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (23,826 | ) | (295 | ) | — | (24,121 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 823 | 2,550 | — | 3,373 | ||||||||||||||||||
Operating income | — | — | 72,213 | 6,278 | — | 78,491 | ||||||||||||||||||
Interest expense | — | (36,986 | ) | (2,015 | ) | — | — | (39,001 | ) | |||||||||||||||
Interest income | — | — | 33 | 13 | — | 46 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | 23,343 | 47,311 | 3,891 | — | (74,545 | ) | — | |||||||||||||||||
Other (loss) income, net | — | — | (613 | ) | 153 | — | (460 | ) | ||||||||||||||||
Income (loss) before income taxes | 23,343 | 10,325 | 73,509 | 6,444 | (74,545 | ) | 39,076 | |||||||||||||||||
Benefit (provision) for income taxes | — | 13,018 | (26,198 | ) | (204 | ) | — | (13,384 | ) | |||||||||||||||
Net income (loss) | 23,343 | 23,343 | 47,311 | 6,240 | (74,545 | ) | 25,692 | |||||||||||||||||
Noncontrolling interests | — | — | — | (2,349 | ) | — | (2,349 | ) | ||||||||||||||||
Net income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 23,343 | $ | 23,343 | $ | 47,311 | $ | 3,891 | $ | (74,545 | ) | $ | 23,343 | |||||||||||
Condensed statement of comprehensive income | ' | |||||||||||||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Three Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net (loss) income | $ | (82,072 | ) | $ | (82,072 | ) | $ | (62,397 | ) | $ | 936 | $ | 144,253 | $ | (81,352 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (39 | ) | (39 | ) | — | (39 | ) | 78 | (39 | ) | ||||||||||||||
Other comprehensive loss, before tax | (39 | ) | (39 | ) | — | (39 | ) | 78 | (39 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | (68 | ) | (68 | ) | — | (68 | ) | 136 | (68 | ) | ||||||||||||||
Other comprehensive loss | (107 | ) | (107 | ) | — | (107 | ) | 214 | (107 | ) | ||||||||||||||
Comprehensive (loss) income | (82,179 | ) | (82,179 | ) | (62,397 | ) | 829 | 144,467 | (81,459 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (720 | ) | — | (720 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,179 | ) | $ | (82,179 | ) | $ | (62,397 | ) | $ | 109 | $ | 144,467 | $ | (82,179 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Three Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net income | $ | 8,342 | $ | 8,342 | $ | 20,562 | $ | 4,173 | $ | (31,920 | ) | $ | 9,499 | |||||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (43 | ) | (43 | ) | 38 | (81 | ) | 86 | (43 | ) | ||||||||||||||
Other comprehensive (loss) income, before tax | (43 | ) | (43 | ) | 38 | (81 | ) | 86 | (43 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 15 | 15 | (14 | ) | 29 | (30 | ) | 15 | ||||||||||||||||
Other comprehensive (loss) income | (28 | ) | (28 | ) | 24 | (52 | ) | 56 | (28 | ) | ||||||||||||||
Comprehensive income | 8,314 | 8,314 | 20,586 | 4,121 | (31,864 | ) | 9,471 | |||||||||||||||||
Noncontrolling interests | — | — | — | (1,157 | ) | — | (1,157 | ) | ||||||||||||||||
Comprehensive income (loss) attributable to Delta Tucker Holdings, Inc. | $ | 8,314 | $ | 8,314 | $ | 20,586 | $ | 2,964 | $ | (31,864 | ) | $ | 8,314 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net (loss) income | $ | (82,839 | ) | $ | (82,839 | ) | $ | (52,939 | ) | $ | 11,387 | $ | 125,756 | $ | (81,474 | ) | ||||||||
Other comprehensive loss: | ||||||||||||||||||||||||
Currency translation adjustment | (73 | ) | (73 | ) | — | (73 | ) | 146 | (73 | ) | ||||||||||||||
Other comprehensive loss, before tax | (73 | ) | (73 | ) | — | (73 | ) | 146 | (73 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 26 | 26 | — | 26 | (52 | ) | 26 | |||||||||||||||||
Other comprehensive loss | (47 | ) | (47 | ) | — | (47 | ) | 94 | (47 | ) | ||||||||||||||
Comprehensive (loss) income | (82,886 | ) | (82,886 | ) | (52,939 | ) | 11,340 | 125,850 | (81,521 | ) | ||||||||||||||
Noncontrolling interests | — | — | — | (1,365 | ) | — | (1,365 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (82,886 | ) | $ | (82,886 | ) | $ | (52,939 | ) | $ | 9,975 | $ | 125,850 | $ | (82,886 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Comprehensive (Loss) Income Information | ||||||||||||||||||||||||
For the Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net income | $ | 23,343 | $ | 23,343 | $ | 47,311 | $ | 6,240 | $ | (74,545 | ) | $ | 25,692 | |||||||||||
Other comprehensive loss: | ||||||||||||||||||||||||
Currency translation adjustment | (454 | ) | (454 | ) | (241 | ) | (213 | ) | 908 | (454 | ) | |||||||||||||
Other comprehensive loss, before tax | (454 | ) | (454 | ) | (241 | ) | (213 | ) | 908 | (454 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | 163 | 163 | 86 | 77 | (326 | ) | 163 | |||||||||||||||||
Other comprehensive loss | (291 | ) | (291 | ) | (155 | ) | (136 | ) | 582 | (291 | ) | |||||||||||||
Comprehensive income | 23,052 | 23,052 | 47,156 | 6,104 | (73,963 | ) | 25,401 | |||||||||||||||||
Noncontrolling interests | — | — | — | (2,349 | ) | — | (2,349 | ) | ||||||||||||||||
Comprehensive income attributable to Delta Tucker Holdings, Inc. | $ | 23,052 | $ | 23,052 | $ | 47,156 | $ | 3,755 | $ | (73,963 | ) | $ | 23,052 | |||||||||||
Condensed consolidating balance sheet information | ' | |||||||||||||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 139,657 | $ | 13,756 | $ | — | $ | 153,413 | ||||||||||||
Restricted cash | — | — | 1,659 | — | — | 1,659 | ||||||||||||||||||
Accounts receivable, net | — | — | 481,763 | 1,369 | 103 | 483,235 | ||||||||||||||||||
Intercompany receivables | — | — | 224,574 | 8,936 | (233,510 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 117,400 | 513 | 104 | 118,017 | ||||||||||||||||||
Total current assets | — | — | 965,053 | 24,574 | (233,303 | ) | 756,324 | |||||||||||||||||
Property and equipment, net | — | — | 23,339 | 237 | — | 23,576 | ||||||||||||||||||
Goodwill | — | — | 170,626 | 32,399 | — | 203,025 | ||||||||||||||||||
Tradenames, net | — | — | 43,376 | — | — | 43,376 | ||||||||||||||||||
Other intangibles, net | — | — | 204,173 | 877 | — | 205,050 | ||||||||||||||||||
Investment in subsidiaries | 147,861 | 1,009,111 | 55,318 | — | (1,212,290 | ) | — | |||||||||||||||||
Other assets, net | 555 | 13,891 | 17,386 | — | — | 31,832 | ||||||||||||||||||
Total assets | $ | 148,416 | $ | 1,023,002 | $ | 1,479,271 | $ | 58,087 | $ | (1,445,593 | ) | $ | 1,263,183 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 174,530 | $ | 859 | $ | (1,646 | ) | $ | 173,743 | |||||||||||
Accrued payroll and employee costs | — | — | 105,560 | 1,555 | 2,027 | 109,142 | ||||||||||||||||||
Intercompany payables | 45,641 | 178,932 | 8,937 | — | (233,510 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 19,125 | 6 | — | 19,131 | ||||||||||||||||||
Other accrued liabilities | — | 23,937 | 129,670 | 349 | (71 | ) | 153,885 | |||||||||||||||||
Income taxes payable | — | — | 8,123 | — | (103 | ) | 8,020 | |||||||||||||||||
Total current liabilities | 45,641 | 202,869 | 445,945 | 2,769 | (233,303 | ) | 463,921 | |||||||||||||||||
Long-term debt, less current portion | — | 672,272 | — | — | — | 672,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | 11,528 | — | — | 11,528 | ||||||||||||||||||
Other long-term liabilities | — | — | 6,852 | — | — | 6,852 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,835 | — | — | 5,835 | ||||||||||||||||||
Equity | 102,775 | 147,861 | 1,009,111 | 55,318 | (1,212,290 | ) | 102,775 | |||||||||||||||||
Total liabilities and equity | $ | 148,416 | $ | 1,023,002 | $ | 1,479,271 | $ | 58,087 | $ | (1,445,593 | ) | $ | 1,263,183 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 144,025 | $ | 26,820 | $ | — | $ | 170,845 | ||||||||||||
Restricted cash | — | — | 1,659 | — | — | 1,659 | ||||||||||||||||||
Accounts receivable, net | — | — | 596,901 | 1,990 | (21,755 | ) | 577,136 | |||||||||||||||||
Intercompany receivables | — | — | 173,987 | 7,857 | (181,844 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 123,761 | 456 | 293 | 124,510 | ||||||||||||||||||
Total current assets | — | — | 1,040,333 | 37,123 | (203,306 | ) | 874,150 | |||||||||||||||||
Property and equipment, net | — | — | 23,797 | 323 | — | 24,120 | ||||||||||||||||||
Goodwill | — | — | 261,367 | 32,400 | — | 293,767 | ||||||||||||||||||
Tradenames, net | — | — | 43,464 | — | — | 43,464 | ||||||||||||||||||
Other intangibles, net | — | — | 224,152 | 1,087 | — | 225,239 | ||||||||||||||||||
Investment in subsidiaries | 228,870 | 1,095,853 | 45,383 | — | (1,370,106 | ) | — | |||||||||||||||||
Other assets, net | 891 | 17,525 | 20,765 | — | — | 39,181 | ||||||||||||||||||
Total assets | $ | 229,761 | $ | 1,113,378 | $ | 1,659,261 | $ | 70,933 | $ | (1,573,412 | ) | $ | 1,499,921 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 192,456 | $ | 2,243 | $ | (1,553 | ) | $ | 193,146 | |||||||||||
Accrued payroll and employee costs | — | — | 111,547 | 22,770 | (19,983 | ) | 114,334 | |||||||||||||||||
Intercompany payables | 45,976 | 128,011 | 7,857 | — | (181,844 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 30,960 | 5 | — | 30,965 | ||||||||||||||||||
Other accrued liabilities | — | 24,225 | 175,796 | 438 | 74 | 200,533 | ||||||||||||||||||
Income taxes payable | — | — | 13,926 | 94 | — | 14,020 | ||||||||||||||||||
Total current liabilities | 45,976 | 152,236 | 532,542 | 25,550 | (203,306 | ) | 552,998 | |||||||||||||||||
Long-term debt, less current portion | — | 732,272 | — | — | — | 732,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | 17,359 | — | — | 17,359 | ||||||||||||||||||
Other long-term liabilities | — | — | 7,632 | — | — | 7,632 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,875 | — | — | 5,875 | ||||||||||||||||||
Equity | 183,785 | 228,870 | 1,095,853 | 45,383 | (1,370,106 | ) | 183,785 | |||||||||||||||||
Total liabilities and equity | $ | 229,761 | $ | 1,113,378 | $ | 1,659,261 | $ | 70,933 | $ | (1,573,412 | ) | $ | 1,499,921 | |||||||||||
Condensed consolidating statement of cash flow information | ' | |||||||||||||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the Six Months Ended June 27, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 334 | $ | 9,080 | $ | 55,721 | $ | (10,114 | ) | $ | (936 | ) | $ | 54,085 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (6,448 | ) | — | — | (6,448 | ) | ||||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 33 | — | — | 33 | ||||||||||||||||||
Purchase of software | — | — | (887 | ) | — | — | (887 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 2,884 | — | — | 2,884 | ||||||||||||||||||
Contributions to equity method investees | — | — | — | — | — | — | ||||||||||||||||||
Transfer to Parent | — | — | (50,586 | ) | (1,077 | ) | 51,663 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (55,004 | ) | (1,077 | ) | 51,663 | (4,418 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 2,500 | — | — | — | 2,500 | ||||||||||||||||||
Payments on long-term debt | — | (62,500 | ) | — | — | — | (62,500 | ) | ||||||||||||||||
Payments of deferred financing costs | — | — | — | — | — | — | ||||||||||||||||||
Borrowings related to financed insurance | — | — | 16,472 | — | — | 16,472 | ||||||||||||||||||
Payments related to financed insurance | — | — | (22,634 | ) | — | — | (22,634 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (1,873 | ) | 936 | (937 | ) | ||||||||||||||||
Transfers (to) from Affiliates | (334 | ) | 50,920 | 1,077 | — | (51,663 | ) | — | ||||||||||||||||
Net cash used in financing activities | (334 | ) | (9,080 | ) | (5,085 | ) | (1,873 | ) | (50,727 | ) | (67,099 | ) | ||||||||||||
Net decrease in cash and cash equivalents | — | — | (4,368 | ) | (13,064 | ) | — | (17,432 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 144,025 | 26,820 | — | 170,845 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 139,657 | $ | 13,756 | $ | — | $ | 153,413 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Unaudited Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For The Six Months Ended June 28, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 99 | $ | 12,462 | $ | 56,793 | $ | (15,631 | ) | $ | (2,812 | ) | $ | 50,911 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (1,212 | ) | (8 | ) | — | (1,220 | ) | |||||||||||||||
Proceeds from sale of property, plant and equipment | — | — | 167 | — | — | 167 | ||||||||||||||||||
Purchase of software | — | — | (2,557 | ) | — | — | (2,557 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 769 | — | — | 769 | ||||||||||||||||||
Transfer to Parent | — | — | (24,584 | ) | — | 24,584 | — | |||||||||||||||||
Net cash used in investing activities | — | — | (27,417 | ) | (8 | ) | 24,584 | (2,841 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 317,600 | — | — | — | 317,600 | ||||||||||||||||||
Payments on long-term debt | — | (318,237 | ) | — | — | — | (318,237 | ) | ||||||||||||||||
Payments of deferred financing costs | — | — | (2,139 | ) | — | — | (2,139 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 1,063 | — | — | 1,063 | ||||||||||||||||||
Payments related to financed insurance | — | — | (26,471 | ) | — | — | (26,471 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (5,624 | ) | 2,812 | (2,812 | ) | ||||||||||||||||
Transfers (to) from Affiliates | (99 | ) | (11,825 | ) | — | 36,508 | (24,584 | ) | — | |||||||||||||||
Net cash (used in) provided by financing activities | (99 | ) | (12,462 | ) | (27,547 | ) | 30,884 | (21,772 | ) | (30,996 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | 1,829 | 15,245 | — | 17,074 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 74,907 | 43,868 | — | 118,775 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 76,736 | $ | 59,113 | $ | — | $ | 135,849 | ||||||||||||
Basis_of_Presentation_and_Acco3
Basis of Presentation and Accounting Policies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Aggregate gross favorable and unfavorable adjustments to income before income taxes | ' | ' | ' | ' |
Gross favorable adjustments | $3.70 | $13 | $4.30 | $25.30 |
Gross unfavorable adjustments | -2.2 | -11.8 | -5.4 | -20.9 |
Net adjustments | $1.50 | $1.20 | ($1.10) | $4.40 |
Basis_of_Presentation_and_Acco4
Basis of Presentation and Accounting Policies (Details Textual) | 6 Months Ended | |
Jun. 27, 2014 | Mar. 15, 2012 | |
Basis of Presentation and Accounting Policies (Textual) [Abstract] | ' | ' |
Percentage of interest in joint venture | 100.00% | ' |
Ownership in DIFZ | ' | 25.00% |
Composition_of_Certain_Financi2
Composition of Certain Financial Statement Captions (Details) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets | ' | ' |
Prepaid expenses | $32,886 | $29,611 |
Income tax refunds receivable | 7,745 | 7,334 |
Inventories | 27,674 | 27,008 |
Aircraft parts inventory held on consignment | 2,324 | 2,404 |
Work-in-process inventory | 32,955 | 28,444 |
Joint venture receivables | 1,928 | 2,251 |
Assets held for sale | 2,000 | 3,017 |
Other current assets | 10,505 | 24,441 |
Total prepaid expenses and other current assets | $118,017 | $124,510 |
Composition_of_Certain_Financi3
Composition of Certain Financial Statement Captions (Details 1) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Helicopters | $4,007 | $4,007 |
Computers and other equipment | 14,969 | 14,258 |
Leasehold improvements | 17,981 | 17,585 |
Office furniture and fixtures | 4,027 | 3,006 |
Gross property and equipment | 40,984 | 38,856 |
Less accumulated depreciation | -17,408 | -14,736 |
Total property and equipment, net | $23,576 | $24,120 |
Composition_of_Certain_Financi4
Composition of Certain Financial Statement Captions (Details 2) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Deferred financing costs, net | $13,890 | $17,526 |
Investment in affiliates | 10,771 | 13,477 |
Palm promissory note, long-term portion | 2,281 | 2,731 |
Other | 4,890 | 5,447 |
Total other assets, net | $31,832 | $39,181 |
Composition_of_Certain_Financi5
Composition of Certain Financial Statement Captions (Details 3) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Wages, compensation and other benefits | $86,320 | $93,007 |
Accrued vacation | 22,015 | 20,383 |
Accrued contributions to employee benefit plans | 807 | 944 |
Total accrued payroll and employee costs | $109,142 | $114,334 |
Composition_of_Certain_Financi6
Composition of Certain Financial Statement Captions (Details 4) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Customer liabilities | $67,762 | $61,856 |
Accrued insurance | 20,316 | 40,120 |
Accrued interest | 24,287 | 24,641 |
Unrecognized tax benefit | 8,533 | 10,132 |
Contract losses | 5,954 | 13,738 |
Legal reserves | 4,471 | 14,147 |
Subcontractor retention | 2,800 | 4,300 |
Financed insurance | 0 | 6,162 |
Other | 19,762 | 25,437 |
Total accrued liabilities | $153,885 | $200,533 |
Composition_of_Certain_Financi7
Composition of Certain Financial Statement Captions (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 | |
Helicopter | Helicopter | Helicopter | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Maximum percentage of prepaid expense on current assets | 5.00% | ' | 5.00% | ' | ' |
Number of helicopters held for sale | 6 | ' | 6 | ' | 6 |
Number of helicopters | 6 | ' | 6 | ' | ' |
Value of helicopters | $4,800,000 | ' | $4,800,000 | ' | ' |
Aircraft parts inventory held on consignment | 2,324,000 | ' | 2,324,000 | ' | 2,404,000 |
Property, plant and equipment additions | ' | ' | ' | ' | 3,800,000 |
Depreciation expense | 1,400,000 | 1,500,000 | 2,700,000 | 3,000,000 | ' |
Deferred financing cost | 1,500,000 | 1,600,000 | 3,000,000 | 3,500,000 | ' |
Other long-term liabilities | 6,900,000 | ' | 6,900,000 | ' | 7,600,000 |
Term Loan [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Prepayments of term loan principal | ' | 0 | 60,000,000 | ' | ' |
Selling, General and Administrative Expenses [Member] | Severance [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Postemployment benefit expense | 2,000,000 | ' | 3,100,000 | ' | ' |
Restructuring reserve | 1,700,000 | ' | 1,700,000 | ' | ' |
Other Accrued Liabilities [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Lease vacancy obligations, net of assumed sublease rental assumptions, amount | 5,500,000 | ' | 5,500,000 | ' | 7,800,000 |
Facility [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Other long-term liabilities included in long-term leasehold obligations | 4,500,000 | ' | 4,500,000 | ' | 4,700,000 |
Term Loan Facility [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Reduction in deferred financing cost | 400,000 | ' | 600,000 | ' | ' |
Pending Litigation [Member] | Loss from Catastrophes [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Insurance receivable related to settlement of legal matters | ' | ' | ' | ' | 9,800,000 |
Sale Agreement Executed [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Number of helicopters sold | ' | ' | 1 | ' | ' |
Sales Agreement Pending Final Funding and Transfer of Title [Member] | ' | ' | ' | ' | ' |
Composition of Certain Financial Statement Captions (Textual) [Abstract] | ' | ' | ' | ' | ' |
Number of helicopters sold | 6 | ' | ' | ' | ' |
Proceeds from sale of helicopters | 2,000,000 | ' | ' | ' | ' |
Impairment of goodwill, intangibles and long lived assets | $1,000,000 | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 27, 2014 |
Goodwill balances for segments | ' |
Goodwill balance as of December 31, 2013 | $293,767 |
Changes between January 1, 2014 and June 27, 2014 | -90,742 |
Goodwill balance as of June 27, 2014 | 203,025 |
DynAviation [Member] | ' |
Goodwill balances for segments | ' |
Goodwill balance as of December 31, 2013 | 160,932 |
Changes between January 1, 2014 and June 27, 2014 | 0 |
Goodwill balance as of June 27, 2014 | 160,932 |
DynLogistics [Member] | ' |
Goodwill balances for segments | ' |
Goodwill balance as of December 31, 2013 | 132,835 |
Changes between January 1, 2014 and June 27, 2014 | -90,742 |
Goodwill balance as of June 27, 2014 | $42,093 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 27, 2014 | Dec. 31, 2013 |
Information about changes relating to certain intangible assets | ' | ' |
Indefinite-lived assets | $43,376 | $43,464 |
Customer-related intangible assets [Member] | ' | ' |
Information about changes relating to certain intangible assets | ' | ' |
Finite-lived assets, weighted average remaining useful years (in years) | '5 years 1 month 6 days | '5 years 7 months 6 days |
Finite-lived assets, gross carrying value | 350,912 | 350,912 |
Finite-lived assets, accumulated amortization | -157,888 | -138,623 |
Total | 193,024 | 212,289 |
Other intangible assets [Member] | ' | ' |
Information about changes relating to certain intangible assets | ' | ' |
Finite-lived assets, weighted average remaining useful years (in years) | '7 years | '6 years 3 months 18 days |
Finite-lived assets, gross carrying value | 20,825 | 22,042 |
Finite-lived assets, accumulated amortization | -13,858 | -14,151 |
Total | 6,967 | 7,891 |
Indefinite-lived assets | 5,059 | 5,059 |
Total finite-lived and indefinite-lived assets, gross carrying value | 376,796 | 378,013 |
Total finite-lived and indefinite-lived assets, accumulated amortization | -171,746 | -152,774 |
Total finite-lived and definite-lived assets, net | 205,050 | 225,239 |
Tradenames [Member] | ' | ' |
Information about changes relating to certain intangible assets | ' | ' |
Finite-lived assets, weighted average remaining useful years (in years) | '0 years 10 months 24 days | '1 year 4 months 24 days |
Finite-lived assets, gross carrying value | 869 | 869 |
Finite-lived assets, accumulated amortization | -715 | -627 |
Total | 154 | 242 |
Indefinite-lived assets | 43,222 | 43,222 |
Total finite-lived and indefinite-lived assets, gross carrying value | 44,091 | 44,091 |
Total finite-lived and indefinite-lived assets, accumulated amortization | -715 | -627 |
Total finite-lived and definite-lived assets, net | $43,376 | $43,464 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | |
operating_and_reporting_segment | DynLogistics [Member] | DynLogistics [Member] | Air Operations [Member] | DynAviation [Member] | Previously Reported [Member] | Asset Impairment Charges [Member] | |||||
reporting_unit | reporting_unit | DynLogistics [Member] | DynLogistics [Member] | ||||||||
reporting_unit | |||||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating and reportable segment | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | 3 | ' | ' | 2 | 2 | ' |
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of Goodwill, intangibles and long-lived assets | $91,759,000 | ' | $91,759,000 | ' | ' | ' | ' | $281,500,000 | ' | ' | $90,700,000 |
Carrying value of goodwill | ' | ' | ' | ' | ' | ' | 120,600,000 | ' | ' | ' | ' |
Percentage of fair value in excess of carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | ' | ' |
Amortization expense | 10,900,000 | 11,200,000 | 21,300,000 | 22,000,000 | ' | ' | ' | ' | ' | ' | ' |
Capitalized software gross value | 7,000,000 | ' | 7,000,000 | ' | 7,900,000 | ' | ' | ' | ' | ' | ' |
Future amortization based upon the finite-lived intangible assets owned and the finite-lived tradenames | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense for remainder of year | 22,300,000 | ' | 22,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense for 2015 | 42,300,000 | ' | 42,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense for 2016 | 38,700,000 | ' | 38,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense for 2017 | 36,200,000 | ' | 36,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense for 2018 | 28,800,000 | ' | 28,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated aggregate future amortization expense after 2018 | $31,900,000 | ' | $31,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Domestic and foreign components of Income (loss) before income taxes | ' | ' | ' | ' |
Domestic | ($94,549) | $13,950 | ($95,103) | $40,370 |
Foreign | -2,582 | 137 | -2,238 | -1,294 |
(Loss) income before income taxes | ($97,131) | $14,087 | ($97,341) | $39,076 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
Current portion: | ' | ' | ' | ' |
Federal | $0 | $0 | $0 | $0 |
State | -389 | -147 | -383 | -375 |
Foreign | -1,062 | -3,691 | -3,058 | -5,058 |
Total income tax of current portion | -1,451 | -3,838 | -3,441 | -5,433 |
Deferred portion: | ' | ' | ' | ' |
Federal | 16,798 | -683 | 18,876 | -7,773 |
State | 491 | -62 | 491 | -175 |
Foreign | -59 | -5 | -59 | -3 |
Total Income tax of Deferred portion | 17,230 | -750 | 19,308 | -7,951 |
Benefit (provision) from income taxes | $15,779 | ($4,588) | $15,867 | ($13,384) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets and liabilities | ' | ' |
Current deferred tax liabilities, net | ($19,131) | ($30,965) |
Non-current deferred tax liabilities, net | -11,528 | -17,359 |
Deferred tax liabilities, net | ($30,659) | ($48,324) |
Income_Taxes_Details_3
Income Taxes (Details 3) | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | |
Reconciliation of the statutory federal income tax rate to Company's effective rate | ' | ' | ' | ' |
Statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income tax, less effect of federal deduction | 0.10% | 1.50% | 0.10% | 1.40% |
Goodwill Impairment | -18.20% | 0.00% | -18.20% | 0.00% |
Noncontrolling interests | 0.40% | -1.90% | 0.40% | -2.10% |
Other | -1.10% | -2.00% | -1.10% | 0.00% |
Effective tax rate | 16.20% | 32.60% | 16.20% | 34.30% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | ||
Jun. 27, 2014 | Dec. 31, 2013 | Jan. 22, 2014 | 31-May-14 | Feb. 23, 2014 | |
Foreign [Member] | Foreign [Member] | Other Matters [Member] | |||
AFGHANISTAN | |||||
Foreign [Member] | |||||
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Unrecognized tax benefit | $7,900,000 | $9,500,000 | ' | ' | ' |
Unrecognized tax benefits if recognized, affect effective tax rate | 2,700,000 | ' | ' | ' | ' |
Taxes and penalties sought | 3,000,000 | ' | 64,200,000 | ' | 10,200,000 |
Income tax issue resolved in favor of company | ' | ' | ' | $54,000,000 | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable | ' | ' |
Total accounts receivable | $483,235 | $577,136 |
Billed [Member] | ' | ' |
Accounts receivable | ' | ' |
Total accounts receivable | 144,430 | 179,586 |
Unbilled [Member] | ' | ' |
Accounts receivable | ' | ' |
Total accounts receivable | $338,805 | $397,550 |
Accounts_Receivable_Details_Te
Accounts Receivable (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 27, 2014 | Dec. 31, 2013 |
Accounts Receivable (Textual) [Abstract] | ' | ' |
Unbilled receivables | 73.7 | 41.6 |
Accounts Receivable [Member] | LOGCAP IV [Member] | ' | ' |
Accounts Receivable (Textual) [Abstract] | ' | ' |
Concentration risk, percentage | 27.00% | 34.00% |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities (Details) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long term debt, carrying value | $672,272 | $732,272 |
Long-term debt, fair value | ' | 747,308 |
Carrying Amount [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long term debt, carrying value | 672,272 | 732,272 |
Carrying Amount [Member] | 10.375% senior unsecured notes [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long term debt, carrying value | 455,000 | 455,000 |
Carrying Amount [Member] | Senior secured credit facility [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long term debt, carrying value | 217,272 | 277,272 |
Fair Value [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long-term debt, fair value | 685,922 | ' |
Fair Value [Member] | 10.375% senior unsecured notes [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long-term debt, fair value | 468,650 | 468,650 |
Fair Value [Member] | Senior secured credit facility [Member] | ' | ' |
Estimate of the fair value of long-term debt based on quoted prices in active markets | ' | ' |
Long-term debt, fair value | $217,272 | $278,658 |
LongTerm_Debt_Details_1
Long-Term Debt (Details 1) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ' | ' |
Long-term debt | $672,272 | $732,272 |
10.375% senior unsecured notes [Member] | ' | ' |
Long-Term Debt | ' | ' |
Long term debt | 455,000 | 455,000 |
Term Loan [Member] | ' | ' |
Long-Term Debt | ' | ' |
Long term debt | $217,272 | $277,272 |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt Long-Term Debt (Details 2) (10.375% senior unsecured notes [Member]) | 6 Months Ended |
Jun. 27, 2014 | |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price, percentage of principle | 101.00% |
2014 [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price, percentage of principle | 105.19% |
2015 [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price, percentage of principle | 102.59% |
2016 and thereafter [Member] | ' |
Debt Instrument, Redemption [Line Items] | ' |
Redemption price, percentage of principle | 100.00% |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | 6 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | |||||||||||||
Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 28, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 31, 2013 | Jul. 10, 2010 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | |
Letter of Credit [Member] | Letter of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | 10.375% Senior Unsecured Notes [Member] | 10.375% Senior Unsecured Notes [Member] | 10.375% Senior Unsecured Notes [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Base Rate [Member] | Base Rate [Member] | Base Rate [Member] | Base Rate [Member] | |||
Revolving credit facility [Member] | Revolving credit facility [Member] | Term Loan [Member] | Maximum [Member] | Minimum [Member] | Term Loan [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||
Letter of Credit [Member] | Letter of Credit [Member] | Revolving credit facility [Member] | Revolving credit facility [Member] | |||||||||||||||||||
Long-Term Debt (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing | $181,000,000 | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | 217,272,000 | ' | ' | ' | 455,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional available borrowing capacity | 146,300,000 | 144,600,000 | 34,700,000 | 36,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of senior unsecured notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.38% | ' | ' | ' | ' | ' | 4.50% | ' | ' | ' | 3.50% | ' | ' |
Applicable margin for term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 4.00% | ' | ' | 3.50% | 3.00% |
Debt less unrestricted cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum spread over other variable rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' |
Floor variable Base Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' |
Floor for euro currency rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' |
Applicable interest rate for term loan | ' | ' | ' | ' | ' | 6.25% | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused commitment fee on revolver | ' | ' | 0.50% | 0.50% | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Applicable interest rates for letter of credit sub-facility | ' | ' | 4.25% | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit fronting fee rate | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayments of term loan principal | ' | ' | ' | ' | 0 | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing fees | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diminished leverage ratio | 3.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio, period one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio, period two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest coverage ratio, period three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of quarterly principle payments | ' | ' | ' | ' | ' | ' | ' | 1-Jul-17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of unsecured loans as percentage of stated value | ' | ' | ' | ' | ' | ' | ' | 103.00% | 103.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trigger amount of asset sales and change of control events for repurchase of notes at defined prices | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Repurchase Requirement, Asset Sales, Percentage of Principal | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price, percentage of principle | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Apr. 30, 2013 | Jan. 12, 2010 | Mar. 26, 2008 | Dec. 31, 2011 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 | Sep. 12, 2012 | 9-May-12 | 9-May-12 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 27, 2014 | Jun. 27, 2014 | Dec. 31, 2013 | Jan. 22, 2014 | 31-May-14 | Feb. 23, 2014 | |
USD ($) | Plaintiffs | Plaintiffs | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Maximum [Member] | Minimum [Member] | California Policy [Member] | Loss from Catastrophes [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Other Matters [Member] | |
lawsuit | Resident | AED | USD ($) | AED | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Pending Litigation [Member] | USD ($) | USD ($) | Foreign Tax Authority [Member] | ||||||||
lawsuit | USD ($) | AFGHANISTAN | |||||||||||||||||||
USD ($) | |||||||||||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease rental expense | ' | ' | ' | ' | $26,000,000 | $41,300,000 | $55,700,000 | $87,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | ' | 4,471,000 | ' | 4,471,000 | ' | 14,147,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits | ' | ' | ' | ' | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individual plaintiffs | ' | 1,256 | 3,266 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of residents seeking unspecified damages | ' | ' | ' | ' | ' | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individual plaintiffs, dismissed | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract violations and conversion of funds and asserted damages | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract limits to damages maximum amount | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | 57,000,000 | 23,300,000 | ' | ' | ' | ' | 64,200,000 | ' | 10,200,000 |
Loss contingency, damages awarded, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,200,000 | 2,200,000 | 8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest and expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance receivable related to settlement of legal matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,800,000 | ' | ' | ' |
Loss consistency asserted amount for expenses | ' | ' | ' | ' | 185,800,000 | ' | 185,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency asserted amount for remaining issues | ' | ' | ' | ' | 19,100,000 | ' | 19,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost incurred by the Company | 152,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period range on the War Reserve Materiel program | '2000 to 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax issue resolved in favor of company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | ' |
Fixed amount of stop loss coverage on policies | ' | ' | ' | ' | $1,000,000 | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | $750,000 | $250,000 | $250,000 | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | ||||
Summary of the financial information of the reportable segments reconciled | ' | ' | ' | ' | ||||
Total revenue | $590,966 | [1] | $876,522 | [1] | $1,203,725 | $1,808,630 | ||
Operating income | -79,999 | 36,454 | -62,961 | 78,491 | ||||
Total depreciation and amortization | 12,261 | [2] | 12,710 | [2] | 24,002 | [2] | 24,998 | [2] |
DynLogistics [Member] | ' | ' | ' | ' | ||||
Summary of the financial information of the reportable segments reconciled | ' | ' | ' | ' | ||||
Total revenue | 290,340 | 500,518 | 607,507 | 1,067,575 | ||||
Operating income | -80,803 | 14,328 | -68,773 | 32,857 | ||||
Total depreciation and amortization | 11 | 221 | 23 | 449 | ||||
DynAviation [Member] | ' | ' | ' | ' | ||||
Summary of the financial information of the reportable segments reconciled | ' | ' | ' | ' | ||||
Total revenue | 300,737 | 380,418 | 596,472 | 748,094 | ||||
Operating income | 10,613 | 31,857 | 21,900 | 64,618 | ||||
Total depreciation and amortization | 367 | 316 | 733 | 621 | ||||
Headquarters / Other [Member] | ' | ' | ' | ' | ||||
Summary of the financial information of the reportable segments reconciled | ' | ' | ' | ' | ||||
Total revenue | -111 | [1] | -4,414 | [1] | -254 | [1] | -7,039 | [1] |
Operating income | -9,809 | [3] | -9,731 | [3] | -16,088 | [3] | -18,984 | [3] |
Total depreciation and amortization | $11,883 | $12,173 | $23,246 | $23,928 | ||||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. | |||||||
[2] | Includes amounts included in Cost of services of $0.2 million and $0.5 million and for the three and six months ended June 27, 2014, respectively, and $0.4 million and $0.9 million for the three and six months ended June 28, 2013, respectively | |||||||
[3] | Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. Additionally, operating income for our DynGlobal segment in support of the development of this business during the three and six months ended June 27, 2014 are currently included in Headquarters / Other. |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Total assets | $1,263,183 | $1,499,921 | ||
DynLogistics [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Total assets | 422,324 | 591,304 | ||
DynAviation [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Total assets | 419,659 | 447,646 | ||
Headquarters / Other [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Total assets | $421,200 | [1] | $460,971 | [1] |
[1] | Assets primarily include cash, investments in unconsolidated subsidiaries, deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. Additionally, assets for our DynGlobal segment, in support of the development of the business, during the six months ended June 27, 2014 is currently included in Headquarters / Other. |
Segment_Information_Details_Te
Segment Information (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 |
operating_and_reporting_segment | ||||
Segment Reporting Information (Additional Textual) [Abstract] | ' | ' | ' | ' |
Number of operating and reportable segment | ' | ' | 3 | ' |
Cost of services | $0.20 | $0.40 | $0.50 | $0.90 |
Related_Parties_Joint_Ventures2
Related Parties, Joint Ventures and Variable Interest Entities (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 | |||
Selected financial information for related parties and equity method investees | ' | ' | ' | ' | ' | ||
Total assets | $1,263,183,000 | ' | $1,263,183,000 | ' | $1,499,921,000 | ||
Total liabilities | 1,154,573,000 | ' | 1,154,573,000 | ' | 1,310,261,000 | ||
Revenue | 590,966,000 | [1] | 876,522,000 | [1] | 1,203,725,000 | 1,808,630,000 | ' |
DynCorp International FZ-LLC [Member] | ' | ' | ' | ' | ' | ||
Selected financial information for related parties and equity method investees | ' | ' | ' | ' | ' | ||
Total assets | 5,400,000 | ' | 5,400,000 | ' | 25,900,000 | ||
Total liabilities | 800,000 | ' | 800,000 | ' | 22,200,000 | ||
Revenue | 81,300,000 | 109,000,000 | 163,700,000 | 222,800,000 | ' | ||
Equity Method Investee [Member] | ' | ' | ' | ' | ' | ||
Selected financial information for related parties and equity method investees | ' | ' | ' | ' | ' | ||
Current assets | 68,000,000 | ' | 68,000,000 | ' | 86,300,000 | ||
Total assets | 69,400,000 | ' | 69,400,000 | ' | 88,200,000 | ||
Current liabilities | 46,500,000 | ' | 46,500,000 | ' | 44,500,000 | ||
Total liabilities | 46,500,000 | ' | 46,500,000 | ' | 44,500,000 | ||
Revenue | 45,700,000 | 48,000,000 | 124,400,000 | 123,700,000 | ' | ||
Gross profit | 4,200,000 | 2,200,000 | 9,400,000 | 11,800,000 | ' | ||
Net income | $2,900,000 | $1,500,000 | $6,100,000 | $9,600,000 | ' | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Related_Parties_Joint_Ventures3
Related Parties, Joint Ventures and Variable Interest Entities (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||
Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Dec. 31, 2013 | Feb. 28, 2014 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Feb. 28, 2012 | Oct. 31, 2011 | Jun. 27, 2014 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | |||
GLS [Member] | GLS [Member] | GLS [Member] | GLS [Member] | GLS [Member] | GLS [Member] | GLS [Member] | Trading Investment Corp [Member] | Palm Trading Investment Corp [Member] | Palm Trading Investment Corp [Member] | DynCorp International FZ-LLC [Member] | DynCorp International FZ-LLC [Member] | DynCorp International FZ-LLC [Member] | DynCorp International FZ-LLC [Member] | Includes operationally integral and non-integral income [Member] | Includes operationally integral and non-integral income [Member] | Includes operationally integral and non-integral income [Member] | Includes operationally integral and non-integral income [Member] | ||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Cerberus Consulting fees | $900,000 | $800,000 | $1,600,000 | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Receivables due from related parties | 1,900,000 | ' | 1,900,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Receivable from unconsolidated joint ventures | 1,000,000 | 3,700,000 | 3,000,000 | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Related cost of services | 1,000,000 | 3,600,000 | 2,900,000 | 4,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Earnings from equity method investees | 19,000 | 927,000 | 9,766,000 | 3,373,000 | ' | ' | ' | ' | 9,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | -2,000,000 | 10,800,000 | 2,400,000 | ||
Revenue | 590,966,000 | [1] | 876,522,000 | [1] | 1,203,725,000 | 1,808,630,000 | ' | ' | 4,900,000 | 7,100,000 | 9,700,000 | 20,500,000 | ' | ' | ' | ' | ' | 81,300,000 | 109,000,000 | 163,700,000 | 222,800,000 | ' | ' | ' | ' |
Operating income | -79,999,000 | 36,454,000 | -62,961,000 | 78,491,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net income | ' | ' | ' | ' | ' | ' | -900,000 | -1,200,000 | -2,400,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | 18,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount of form one issued by DCAA | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Potential inconsistency value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding invoices withheld | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Authorized cost recovery | ' | ' | ' | ' | ' | 19,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Aggregate initial value of promissory note from Palm | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Outstanding balance of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,100,000 | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Investment in unconsolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Share_Based_Payments_Share_Bas2
Share Based Payments Share Based Payments - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 27, 2014 | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 27, 2014 | Dec. 17, 2013 |
Common Class B [Member] | Common Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common stock, shares authorized | 1,000 | 1,000 | 1,000 | ' | 100,000 |
Fair value of shares granted | ' | $3.60 | ' | ' | ' |
Compensation cost expensed | $0.50 | $2.10 | ' | $2.20 | ' |
Compensation costs related to awards, weighted average recognition period | ' | ' | ' | '3 years 6 months 22 days | ' |
Share_Based_Payments_Share_Act
Share Based Payments Share Activity (Details) (USD $) | 6 Months Ended |
Jun. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Beginning balance, shares | 3,144 |
Granted, shares | 4,339 |
Exercised, shares | 0 |
Forfeited or expired, shares | -306 |
Ending balance, shares | 7,177 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' |
Beginning balance, weighted average grant date fair value (in dollars per share) | $594.70 |
Exercised, weighted average grant date fair value (in dollars per share) | $0 |
Forfeited or expired, weighted average grant date fair value (in dollars per share) | $819.26 |
Ending balance, weighted average grant date fair value (in dollars per share) | $790.77 |
Common Class B-2 Interests [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Granted, shares | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' |
Granted, weighted average grant date fair value (in dollars per share) | $0 |
Common Class B-1 Interest [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Granted, shares | 4,339 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' |
Granted, weighted average grant date fair value (in dollars per share) | $819.26 |
Contractual term | '5 years |
Share_Based_Payments_Nonvested
Share Based Payments Nonvested Activity (Details) (USD $) | 6 Months Ended |
Jun. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ' |
Beginning balance, shares | 2,123 |
Granted, shares | 4,339 |
Vested, shares | -1,713 |
Forfeited, shares | -306 |
Ending balance, shares | 4,443 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Beginning balance, weighted average fair value (in dollars per share) | $603.37 |
Granted, weighted average fair value (in dollars per share) | $819.26 |
Vested, weighted average fair value (in dollars per share) | $819.26 |
Forfeited, weighted average fair value (in dollars per share) | $819.26 |
Ending balance, weighted average fair value (in dollars per share) | $790.48 |
Collaborative_Arrangements_Det
Collaborative Arrangements (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | ||
Collaborative Arrangements (Textual) [Abstract] | ' | ' | ' | ' | ||
Revenue | $590,966 | [1] | $876,522 | [1] | $1,203,725 | $1,808,630 |
Cost of services | 534,589 | 794,573 | 1,095,080 | 1,639,699 | ||
Net (loss) income | -81,352 | 9,499 | -81,474 | 25,692 | ||
Collaborative Arrangement [Member] | ' | ' | ' | ' | ||
Collaborative Arrangements (Textual) [Abstract] | ' | ' | ' | ' | ||
Current share of profit | ' | ' | 70.00% | ' | ||
Revenue | 175,600 | 308,300 | 366,900 | 671,000 | ||
Cost of services | 162,100 | 292,900 | 340,700 | 631,400 | ||
Net (loss) income | $6,400 | $7,200 | $11,500 | $17,700 | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Consolidating_Financial_Statem2
Consolidating Financial Statements of Subsidiary Guarantors (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | $590,966 | [1] | $876,522 | [1] | $1,203,725 | $1,808,630 |
Cost of services | -534,589 | -794,573 | -1,095,080 | -1,639,699 | ||
Selling, general and administrative expenses | -32,611 | -34,148 | -66,085 | -69,692 | ||
Depreciation and amortization expense | -12,025 | -12,274 | -23,528 | -24,121 | ||
Earnings from equity method investees | 19 | 927 | 9,766 | 3,373 | ||
Impairment of Goodwill, intangibles and long-lived assets | -91,759 | ' | -91,759 | ' | ||
Operating (loss) income | -79,999 | 36,454 | -62,961 | 78,491 | ||
Interest expense | -18,184 | -19,838 | -36,201 | -39,001 | ||
Loss on early extinguishment of debt | -448 | 0 | -621 | 0 | ||
Interest income | 31 | 28 | 84 | 46 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | 0 | 0 | 0 | 0 | ||
Other income, net | 1,469 | -2,557 | 2,358 | -460 | ||
(Loss) income before income taxes | -97,131 | 14,087 | -97,341 | 39,076 | ||
Benefit (provision) for income taxes | 15,779 | -4,588 | 15,867 | -13,384 | ||
Net (loss) income | -81,352 | 9,499 | -81,474 | 25,692 | ||
Noncontrolling interest | -720 | -1,157 | -1,365 | -2,349 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | -82,072 | 8,342 | -82,839 | 23,343 | ||
Parent [Member] | ' | ' | ' | ' | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | 0 | 0 | 0 | 0 | ||
Cost of services | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | ||
Earnings from equity method investees | 0 | 0 | 0 | 0 | ||
Impairment of Goodwill, intangibles and long-lived assets | 0 | ' | 0 | ' | ||
Operating (loss) income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | ' | 0 | ' | ||
Interest income | 0 | 0 | 0 | 0 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | -82,072 | 8,342 | -82,839 | 23,343 | ||
Other income, net | 0 | 0 | 0 | 0 | ||
(Loss) income before income taxes | -82,072 | 8,342 | -82,839 | 23,343 | ||
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 | ||
Net (loss) income | -82,072 | 8,342 | -82,839 | 23,343 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | -82,072 | 8,342 | -82,839 | 23,343 | ||
Subsidiary Issuer [Member] | ' | ' | ' | ' | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | 0 | 0 | 0 | 0 | ||
Cost of services | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | ||
Earnings from equity method investees | 0 | 0 | 0 | 0 | ||
Impairment of Goodwill, intangibles and long-lived assets | 0 | ' | 0 | ' | ||
Operating (loss) income | 0 | 0 | 0 | 0 | ||
Interest expense | -17,596 | -18,858 | -35,097 | -36,986 | ||
Loss on early extinguishment of debt | -448 | ' | -621 | ' | ||
Interest income | 0 | 0 | 0 | 0 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | -62,397 | 20,562 | -52,939 | 47,311 | ||
Other income, net | 0 | 0 | 0 | 0 | ||
(Loss) income before income taxes | -80,441 | 1,704 | -88,657 | 10,325 | ||
Benefit (provision) for income taxes | -1,631 | 6,638 | 5,818 | 13,018 | ||
Net (loss) income | -82,072 | 8,342 | -82,839 | 23,343 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | -82,072 | 8,342 | -82,839 | 23,343 | ||
Subsidiary Guarantors [Member] | ' | ' | ' | ' | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | 595,440 | 879,469 | 1,211,065 | 1,815,203 | ||
Cost of services | -540,026 | -799,549 | -1,104,555 | -1,650,552 | ||
Selling, general and administrative expenses | -32,609 | -34,037 | -65,974 | -69,435 | ||
Depreciation and amortization expense | -11,874 | -12,125 | -23,231 | -23,826 | ||
Earnings from equity method investees | 19 | -1,623 | 177 | 823 | ||
Impairment of Goodwill, intangibles and long-lived assets | -91,759 | ' | -91,759 | ' | ||
Operating (loss) income | -80,809 | 32,135 | -74,277 | 72,213 | ||
Interest expense | -588 | -980 | -1,104 | -2,015 | ||
Loss on early extinguishment of debt | 0 | ' | 0 | ' | ||
Interest income | 24 | 21 | 70 | 33 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | 216 | 3,016 | 10,022 | 3,891 | ||
Other income, net | 1,446 | -2,634 | 2,340 | -613 | ||
(Loss) income before income taxes | -79,711 | 31,558 | -62,949 | 73,509 | ||
Benefit (provision) for income taxes | 17,314 | -10,996 | 10,010 | -26,198 | ||
Net (loss) income | -62,397 | 20,562 | -52,939 | 47,311 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | -62,397 | 20,562 | -52,939 | 47,311 | ||
Subsidiary Non-Guarantors [Member] | ' | ' | ' | ' | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | 85,244 | 117,739 | 172,068 | 239,972 | ||
Cost of services | -84,219 | -115,682 | -169,919 | -235,599 | ||
Selling, general and administrative expenses | -64 | -139 | -125 | -350 | ||
Depreciation and amortization expense | -151 | -149 | -297 | -295 | ||
Earnings from equity method investees | 0 | 2,550 | 9,589 | 2,550 | ||
Impairment of Goodwill, intangibles and long-lived assets | 0 | ' | 0 | ' | ||
Operating (loss) income | 810 | 4,319 | 11,316 | 6,278 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | ' | 0 | ' | ||
Interest income | 7 | 7 | 14 | 13 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | 0 | 0 | 0 | 0 | ||
Other income, net | 23 | 77 | 18 | 153 | ||
(Loss) income before income taxes | 840 | 4,403 | 11,348 | 6,444 | ||
Benefit (provision) for income taxes | 96 | -230 | 39 | -204 | ||
Net (loss) income | 936 | 4,173 | 11,387 | 6,240 | ||
Noncontrolling interest | -720 | -1,157 | -1,365 | -2,349 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | 216 | 3,016 | 10,022 | 3,891 | ||
Eliminations [Member] | ' | ' | ' | ' | ||
Condensed Consolidating Statement of Operations Information | ' | ' | ' | ' | ||
Revenue | -89,718 | -120,686 | -179,408 | -246,545 | ||
Cost of services | 89,656 | 120,658 | 179,394 | 246,452 | ||
Selling, general and administrative expenses | 62 | 28 | 14 | 93 | ||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | ||
Earnings from equity method investees | 0 | 0 | 0 | 0 | ||
Impairment of Goodwill, intangibles and long-lived assets | 0 | ' | 0 | ' | ||
Operating (loss) income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Loss on early extinguishment of debt | 0 | ' | 0 | ' | ||
Interest income | 0 | 0 | 0 | 0 | ||
Equity in income (loss) of consolidated subsidiaries, net of tax | 144,253 | -31,920 | 125,756 | -74,545 | ||
Other income, net | 0 | 0 | 0 | 0 | ||
(Loss) income before income taxes | 144,253 | -31,920 | 125,756 | -74,545 | ||
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 | ||
Net (loss) income | 144,253 | -31,920 | 125,756 | -74,545 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $144,253 | ($31,920) | $125,756 | ($74,545) | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Consolidating_Financial_Statem3
Consolidating Financial Statements of Subsidiary Guarantors (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 | Jun. 27, 2014 | Jun. 28, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | $590,966 | [1] | $876,522 | [1] | $1,203,725 | $1,808,630 |
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | -81,352 | 9,499 | -81,474 | 25,692 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | -39 | -43 | -73 | -454 | ||
Other comprehensive loss, before tax | -39 | -43 | -73 | -454 | ||
Income tax expense related to items of other comprehensive income | -68 | 15 | 26 | 163 | ||
Other comprehensive loss | -107 | -28 | -47 | -291 | ||
Comprehensive (loss) income | -81,459 | 9,471 | -81,521 | 25,401 | ||
Noncontrolling interest | -720 | -1,157 | -1,365 | -2,349 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | -82,179 | 8,314 | -82,886 | 23,052 | ||
Parent [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | 0 | 0 | 0 | 0 | ||
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | -82,072 | 8,342 | -82,839 | 23,343 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | -39 | -43 | -73 | -454 | ||
Other comprehensive loss, before tax | -39 | -43 | -73 | -454 | ||
Income tax expense related to items of other comprehensive income | -68 | 15 | 26 | 163 | ||
Other comprehensive loss | -107 | -28 | -47 | -291 | ||
Comprehensive (loss) income | -82,179 | 8,314 | -82,886 | 23,052 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | -82,179 | 8,314 | -82,886 | 23,052 | ||
Subsidiary Issuer [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | 0 | 0 | 0 | 0 | ||
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | -82,072 | 8,342 | -82,839 | 23,343 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | -39 | -43 | -73 | -454 | ||
Other comprehensive loss, before tax | -39 | -43 | -73 | -454 | ||
Income tax expense related to items of other comprehensive income | -68 | 15 | 26 | 163 | ||
Other comprehensive loss | -107 | -28 | -47 | -291 | ||
Comprehensive (loss) income | -82,179 | 8,314 | -82,886 | 23,052 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | -82,179 | 8,314 | -82,886 | 23,052 | ||
Subsidiary Guarantors [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | 595,440 | 879,469 | 1,211,065 | 1,815,203 | ||
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | -62,397 | 20,562 | -52,939 | 47,311 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | 0 | 38 | 0 | -241 | ||
Other comprehensive loss, before tax | 0 | 38 | 0 | -241 | ||
Income tax expense related to items of other comprehensive income | 0 | -14 | 0 | 86 | ||
Other comprehensive loss | 0 | 24 | 0 | -155 | ||
Comprehensive (loss) income | -62,397 | 20,586 | -52,939 | 47,156 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | -62,397 | 20,586 | -52,939 | 47,156 | ||
Subsidiary Non-Guarantors [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | 85,244 | 117,739 | 172,068 | 239,972 | ||
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | 936 | 4,173 | 11,387 | 6,240 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | -39 | -81 | -73 | -213 | ||
Other comprehensive loss, before tax | -39 | -81 | -73 | -213 | ||
Income tax expense related to items of other comprehensive income | -68 | 29 | 26 | 77 | ||
Other comprehensive loss | -107 | -52 | -47 | -136 | ||
Comprehensive (loss) income | 829 | 4,121 | 11,340 | 6,104 | ||
Noncontrolling interest | -720 | -1,157 | -1,365 | -2,349 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | 109 | 2,964 | 9,975 | 3,755 | ||
Eliminations [Member] | ' | ' | ' | ' | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ||
Revenue | -89,718 | -120,686 | -179,408 | -246,545 | ||
Condensed Consolidating Statement of Comprehensive Income Information | ' | ' | ' | ' | ||
Net (loss) income | 144,253 | -31,920 | 125,756 | -74,545 | ||
Other comprehensive income: | ' | ' | ' | ' | ||
Foreign currency translation adjustment | 78 | 86 | 146 | 908 | ||
Other comprehensive loss, before tax | 78 | 86 | 146 | 908 | ||
Income tax expense related to items of other comprehensive income | 136 | -30 | -52 | -326 | ||
Other comprehensive loss | 214 | 56 | 94 | 582 | ||
Comprehensive (loss) income | 144,467 | -31,864 | 125,850 | -73,963 | ||
Noncontrolling interest | 0 | 0 | 0 | 0 | ||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $144,467 | ($31,864) | $125,850 | ($73,963) | ||
[1] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. Additionally, revenue for our DynGlobal segment during the three and six months ended June 27, 2014 is currently included in Headquarters / Other. |
Consolidating_Financial_Statem4
Consolidating Financial Statements of Subsidiary Guarantors (Details 2) (USD $) | Jun. 27, 2014 | Dec. 31, 2013 | Jun. 28, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $153,413 | $170,845 | $135,849 | $118,775 |
Restricted cash | 1,659 | 1,659 | ' | ' |
Total accounts receivable | 483,235 | 577,136 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 118,017 | 124,510 | ' | ' |
Total current assets | 756,324 | 874,150 | ' | ' |
Property and equipment, net | 23,576 | 24,120 | ' | ' |
Goodwill | 203,025 | 293,767 | ' | ' |
Tradenames, net | 43,376 | 43,464 | ' | ' |
Other intangibles, net | 205,050 | 225,239 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other assets, net | 31,832 | 39,181 | ' | ' |
Total assets | 1,263,183 | 1,499,921 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 173,743 | 193,146 | ' | ' |
Accrued payroll and employee costs | 109,142 | 114,334 | ' | ' |
Intercompany Payables | 0 | ' | ' | ' |
Deferred income taxes | 19,131 | 30,965 | ' | ' |
Accrued liabilities | 153,885 | 200,533 | ' | ' |
Income taxes payable | 8,020 | 14,020 | ' | ' |
Total current liabilities | 463,921 | 552,998 | ' | ' |
Long-term debt | 672,272 | 732,272 | ' | ' |
Long-term deferred taxes | 11,528 | 17,359 | ' | ' |
Other long-term liabilities | 6,852 | 7,632 | ' | ' |
Noncontrolling interests | 5,835 | 5,875 | ' | ' |
Stockholders' Equity Attributable to Parent | 102,775 | 183,785 | ' | ' |
Total liabilities and equity | 1,263,183 | 1,499,921 | ' | ' |
Parent [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Total accounts receivable | 0 | 0 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Tradenames, net | 0 | 0 | ' | ' |
Other intangibles, net | 0 | 0 | ' | ' |
Investment in subsidiaries | 147,861 | 228,870 | ' | ' |
Other assets, net | 555 | 891 | ' | ' |
Total assets | 148,416 | 229,761 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued payroll and employee costs | 0 | 0 | ' | ' |
Intercompany Payables | 45,641 | 45,976 | ' | ' |
Deferred income taxes | ' | 0 | ' | ' |
Accrued liabilities | 0 | 0 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Total current liabilities | 45,641 | 45,976 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Long-term deferred taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 102,775 | 183,785 | ' | ' |
Total liabilities and equity | 148,416 | 229,761 | ' | ' |
Subsidiary Issuer [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Total accounts receivable | 0 | 0 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Tradenames, net | 0 | 0 | ' | ' |
Other intangibles, net | 0 | 0 | ' | ' |
Investment in subsidiaries | 1,009,111 | 1,095,853 | ' | ' |
Other assets, net | 13,891 | 17,525 | ' | ' |
Total assets | 1,023,002 | 1,113,378 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued payroll and employee costs | 0 | 0 | ' | ' |
Intercompany Payables | 178,932 | 128,011 | ' | ' |
Deferred income taxes | ' | 0 | ' | ' |
Accrued liabilities | 23,937 | 24,225 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Total current liabilities | 202,869 | 152,236 | ' | ' |
Long-term debt | 672,272 | 732,272 | ' | ' |
Long-term deferred taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 147,861 | 228,870 | ' | ' |
Total liabilities and equity | 1,023,002 | 1,113,378 | ' | ' |
Subsidiary Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 139,657 | 144,025 | 76,736 | 74,907 |
Restricted cash | 1,659 | 1,659 | ' | ' |
Total accounts receivable | 481,763 | 596,901 | ' | ' |
Intercompany receivables | 224,574 | 173,987 | ' | ' |
Prepaid expenses and other current assets | 117,400 | 123,761 | ' | ' |
Total current assets | 965,053 | 1,040,333 | ' | ' |
Property and equipment, net | 23,339 | 23,797 | ' | ' |
Goodwill | 170,626 | 261,367 | ' | ' |
Tradenames, net | 43,376 | 43,464 | ' | ' |
Other intangibles, net | 204,173 | 224,152 | ' | ' |
Investment in subsidiaries | 55,318 | 45,383 | ' | ' |
Other assets, net | 17,386 | 20,765 | ' | ' |
Total assets | 1,479,271 | 1,659,261 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 174,530 | 192,456 | ' | ' |
Accrued payroll and employee costs | 105,560 | 111,547 | ' | ' |
Intercompany Payables | 8,937 | 7,857 | ' | ' |
Deferred income taxes | 19,125 | 30,960 | ' | ' |
Accrued liabilities | 129,670 | 175,796 | ' | ' |
Income taxes payable | 8,123 | 13,926 | ' | ' |
Total current liabilities | 445,945 | 532,542 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Long-term deferred taxes | 11,528 | 17,359 | ' | ' |
Other long-term liabilities | 6,852 | 7,632 | ' | ' |
Noncontrolling interests | 5,835 | 5,875 | ' | ' |
Stockholders' Equity Attributable to Parent | 1,009,111 | 1,095,853 | ' | ' |
Total liabilities and equity | 1,479,271 | 1,659,261 | ' | ' |
Subsidiary Non-Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 13,756 | 26,820 | 59,113 | 43,868 |
Restricted cash | 0 | 0 | ' | ' |
Total accounts receivable | 1,369 | 1,990 | ' | ' |
Intercompany receivables | 8,936 | 7,857 | ' | ' |
Prepaid expenses and other current assets | 513 | 456 | ' | ' |
Total current assets | 24,574 | 37,123 | ' | ' |
Property and equipment, net | 237 | 323 | ' | ' |
Goodwill | 32,399 | 32,400 | ' | ' |
Tradenames, net | 0 | 0 | ' | ' |
Other intangibles, net | 877 | 1,087 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Total assets | 58,087 | 70,933 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | 859 | 2,243 | ' | ' |
Accrued payroll and employee costs | 1,555 | 22,770 | ' | ' |
Intercompany Payables | 0 | ' | ' | ' |
Deferred income taxes | 6 | 5 | ' | ' |
Accrued liabilities | 349 | 438 | ' | ' |
Income taxes payable | 0 | 94 | ' | ' |
Total current liabilities | 2,769 | 25,550 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Long-term deferred taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 55,318 | 45,383 | ' | ' |
Total liabilities and equity | 58,087 | 70,933 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Total accounts receivable | 103 | -21,755 | ' | ' |
Intercompany receivables | -233,510 | -181,844 | ' | ' |
Prepaid expenses and other current assets | 104 | 293 | ' | ' |
Total current assets | -233,303 | -203,306 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Tradenames, net | 0 | 0 | ' | ' |
Other intangibles, net | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,212,290 | -1,370,106 | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Total assets | -1,445,593 | -1,573,412 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Accounts payable | -1,646 | -1,553 | ' | ' |
Accrued payroll and employee costs | 2,027 | -19,983 | ' | ' |
Intercompany Payables | -233,510 | -181,844 | ' | ' |
Deferred income taxes | ' | 0 | ' | ' |
Accrued liabilities | -71 | 74 | ' | ' |
Income taxes payable | -103 | 0 | ' | ' |
Total current liabilities | -233,303 | -203,306 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Long-term deferred taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | -1,212,290 | -1,370,106 | ' | ' |
Total liabilities and equity | ($1,445,593) | ($1,573,412) | ' | ' |
Consolidating_Financial_Statem5
Consolidating Financial Statements of Subsidiary Guarantors (Details 3) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 27, 2014 | Jun. 28, 2013 |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | $54,085 | $50,911 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | -6,448 | -1,220 |
Proceeds from sale of property, plant and equipment | 33 | 167 |
Purchase of software | -887 | -2,557 |
Return of capital from equity method investees | 2,884 | 769 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | 0 | 0 |
Net cash used in investing activities | -4,418 | -2,841 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 2,500 | 317,600 |
Payments on long-term debt | -62,500 | -318,237 |
Payments of Financing Costs | 0 | -2,139 |
Borrowings related to financed insurance | 16,472 | 1,063 |
Payments related to financed insurance | -22,634 | -26,471 |
Payment of dividends to Parent | -937 | -2,812 |
Net transfers from (to) Parent/subsidiary | 0 | 0 |
Net cash used in financing activities | -67,099 | -30,996 |
Net (decrease) increase in cash and cash equivalents | -17,432 | 17,074 |
Cash and cash equivalents, beginning of period | 170,845 | 118,775 |
Cash and cash equivalents, end of period | 153,413 | 135,849 |
Parent [Member] | ' | ' |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | 334 | 99 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Purchase of software | 0 | 0 |
Return of capital from equity method investees | 0 | 0 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of Financing Costs | 0 | 0 |
Borrowings related to financed insurance | 0 | 0 |
Payments related to financed insurance | 0 | 0 |
Payment of dividends to Parent | 0 | 0 |
Net transfers from (to) Parent/subsidiary | -334 | -99 |
Net cash used in financing activities | -334 | -99 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Issuer [Member] | ' | ' |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | 9,080 | 12,462 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Purchase of software | 0 | 0 |
Return of capital from equity method investees | 0 | 0 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 2,500 | 317,600 |
Payments on long-term debt | -62,500 | -318,237 |
Payments of Financing Costs | 0 | 0 |
Borrowings related to financed insurance | 0 | 0 |
Payments related to financed insurance | 0 | 0 |
Payment of dividends to Parent | 0 | 0 |
Net transfers from (to) Parent/subsidiary | 50,920 | -11,825 |
Net cash used in financing activities | -9,080 | -12,462 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Subsidiary Guarantors [Member] | ' | ' |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | 55,721 | 56,793 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | -6,448 | -1,212 |
Proceeds from sale of property, plant and equipment | 33 | 167 |
Purchase of software | -887 | -2,557 |
Return of capital from equity method investees | 2,884 | 769 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | -50,586 | -24,584 |
Net cash used in investing activities | -55,004 | -27,417 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of Financing Costs | 0 | -2,139 |
Borrowings related to financed insurance | 16,472 | 1,063 |
Payments related to financed insurance | -22,634 | -26,471 |
Payment of dividends to Parent | 0 | 0 |
Net transfers from (to) Parent/subsidiary | 1,077 | 0 |
Net cash used in financing activities | -5,085 | -27,547 |
Net (decrease) increase in cash and cash equivalents | -4,368 | 1,829 |
Cash and cash equivalents, beginning of period | 144,025 | 74,907 |
Cash and cash equivalents, end of period | 139,657 | 76,736 |
Subsidiary Non-Guarantors [Member] | ' | ' |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | -10,114 | -15,631 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | 0 | -8 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Purchase of software | 0 | 0 |
Return of capital from equity method investees | 0 | 0 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | -1,077 | 0 |
Net cash used in investing activities | -1,077 | -8 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of Financing Costs | 0 | 0 |
Borrowings related to financed insurance | 0 | 0 |
Payments related to financed insurance | 0 | 0 |
Payment of dividends to Parent | -1,873 | -5,624 |
Net transfers from (to) Parent/subsidiary | 0 | 36,508 |
Net cash used in financing activities | -1,873 | 30,884 |
Net (decrease) increase in cash and cash equivalents | -13,064 | 15,245 |
Cash and cash equivalents, beginning of period | 26,820 | 43,868 |
Cash and cash equivalents, end of period | 13,756 | 59,113 |
Eliminations [Member] | ' | ' |
Condensed Consolidating Statement of Cash Flow Information | ' | ' |
Net cash (used in) provided by operating activities | -936 | -2,812 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment, net | 0 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 0 |
Purchase of software | 0 | 0 |
Return of capital from equity method investees | 0 | 0 |
Payments to Acquire Equity Method Investments | 0 | ' |
Transfer From (To) Parent | 51,663 | 24,584 |
Net cash used in investing activities | 51,663 | 24,584 |
Cash flows from financing activities: | ' | ' |
Borrowings on long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments of Financing Costs | 0 | 0 |
Borrowings related to financed insurance | 0 | 0 |
Payments related to financed insurance | 0 | 0 |
Payment of dividends to Parent | 936 | 2,812 |
Net transfers from (to) Parent/subsidiary | -51,663 | -24,584 |
Net cash used in financing activities | -50,727 | -21,772 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 |
Consolidating_Financial_Statem6
Consolidating Financial Statements of Subsidiary Guarantors (Details Textual) | Jun. 27, 2014 |
Consolidating Financial Statements of Subsidiary Guarantors (Textual) [Abstract] | ' |
Percentage of ownership | 100.00% |