Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2015 | Jun. 27, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Delta Tucker Holdings, Inc. | ||
Entity Central Index Key | 1514226 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 100 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenue | $2,252,309 | $3,287,184 | $4,044,275 |
Cost of services | -2,072,865 | -2,987,253 | -3,698,932 |
Selling, general and administrative expenses | -146,881 | -149,925 | -149,362 |
Depreciation and amortization expense | -48,582 | -48,628 | -50,260 |
Earnings from equity method investees | 10,077 | 4,570 | 825 |
Impairment of goodwill, intangibles and long lived assets | -214,004 | -312,728 | -50,663 |
Operating (loss) income | -219,946 | -206,780 | 95,883 |
Interest expense | -70,783 | -78,826 | -86,272 |
Loss on early extinguishment of debt | -1,362 | -703 | -2,094 |
Interest income | 221 | 157 | 117 |
Other income (expense), net | 3,680 | -810 | 4,672 |
(Loss) income before income taxes | -288,190 | -286,962 | 12,306 |
Benefit (provision) for income taxes | 20,570 | 37,461 | -15,598 |
Net loss | -267,620 | -249,501 | -3,292 |
Noncontrolling interests | -2,160 | -4,235 | -5,645 |
Net loss attributable to Delta Tucker Holdings, Inc. | ($269,780) | ($253,736) | ($8,937) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($267,620) | ($249,501) | ($3,292) |
Other comprehensive (loss), net of tax: | |||
Foreign currency translation adjustment | -131 | -437 | 225 |
Other comprehensive (loss) income , before tax | -131 | -437 | 225 |
Income tax (expense) benefit related to items of other comprehensive income | 47 | 157 | -83 |
Other comprehensive (loss) income | -84 | -280 | 142 |
Comprehensive loss | -267,704 | -249,781 | -3,150 |
Comprehensive loss attributable to noncontrolling interests | -2,160 | -4,235 | -5,645 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | ($269,864) | ($254,016) | ($8,795) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $94,004 | $170,845 |
Restricted cash | 707 | 1,659 |
Accounts receivable, net of allowances of $4,736 and $1,621, respectively | 448,496 | 577,136 |
Prepaid expenses and other current assets | 74,200 | 124,510 |
Total current assets | 617,407 | 874,150 |
Long-term restricted cash | 952 | 0 |
Property and equipment, net | 23,786 | 24,120 |
Goodwill | 128,888 | 293,767 |
Tradenames, net | 28,762 | 43,464 |
Other intangibles, net | 149,480 | 225,239 |
Long-term deferred taxes | 5,696 | |
Other assets, net | 27,516 | 39,181 |
Total assets | 982,487 | 1,499,921 |
Current liabilities: | ||
Accounts payable | 146,546 | 193,146 |
Accrued payroll and employee costs | 93,707 | 114,334 |
Deferred income taxes | 31,477 | 30,965 |
Accrued liabilities | 130,026 | 200,533 |
Income taxes payable | 4,424 | 14,020 |
Total current liabilities | 406,180 | 552,998 |
Long-term debt | 642,272 | 732,272 |
Long-term deferred taxes | -5,696 | 17,359 |
Other long-term liabilities | 11,312 | 7,632 |
Total liabilities | 1,059,764 | 1,310,261 |
EQUITY | ||
Common stock, $0.01 par value – 1,000 shares authorized and 100 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively. | 0 | 0 |
Additional paid-in capital | 552,894 | 549,581 |
Accumulated deficit | -635,379 | -365,599 |
Accumulated other comprehensive loss | -281 | -197 |
Total (deficit) equity attributable to Delta Tucker Holdings, Inc. | -82,766 | 183,785 |
Noncontrolling interests | 5,489 | 5,875 |
Total (deficit) equity | -77,277 | 189,660 |
Total liabilities and (deficit) equity | $982,487 | $1,499,921 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $4,736 | $1,621 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 100 | 100 |
Common stock, shares outstanding | 100 | 100 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flows from operating activities | ||||||
Net loss | ($267,620) | ($249,501) | ($3,292) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Depreciation and amortization | 49,707 | [1] | 50,279 | [1] | 51,814 | [1] |
Amortization of deferred loan costs | 6,129 | 6,827 | 7,698 | |||
Allowance for losses on accounts receivable | 3,182 | 465 | -112 | |||
Loss on early extinguishment of debt, net | 1,362 | 703 | 2,094 | |||
Loss on impairment of goodwill, intangibles and long-lived assets | 214,004 | 312,728 | 50,663 | |||
Earnings from equity method investees | -12,368 | -3,737 | -4,767 | |||
Distributions from equity method investees | 9,739 | 7,569 | 3,438 | |||
Deferred income taxes | -22,650 | -61,538 | 8,611 | |||
Stock based compensation | 3,184 | 490 | 0 | |||
Other | 275 | -368 | -4,583 | |||
Changes in assets and liabilities: | ||||||
Restricted cash | 0 | 0 | 9,114 | |||
Accounts receivable | 125,458 | 203,012 | -26,143 | |||
Prepaid expenses and other current assets | 40,650 | -41,656 | 2,826 | |||
Accounts payable and accrued liabilities | -124,964 | -91,328 | 40,201 | |||
Income taxes payable | -711 | 3,557 | 6,628 | |||
Net cash provided by operating activities | 25,377 | 137,502 | 144,190 | |||
Cash flows from investing activities | ||||||
Purchase of property and equipment, net | -8,712 | -7,628 | -5,528 | |||
Proceeds from sale of property, plant, and equipment | 44 | 182 | 25 | |||
Heliworks acquisition, net of cash acquired | 0 | 0 | -11,746 | |||
Purchase of software | -1,631 | -2,718 | -2,590 | |||
Return of capital from equity method investees | 5,625 | 2,223 | 9,154 | |||
Contributions to equity method investees | 0 | -30 | -1,478 | |||
Net cash used in investing activities | -4,674 | -7,971 | -12,163 | |||
Cash flows from financing activities | ||||||
Borrowings on long-term debt | 118,000 | 745,900 | 325,000 | |||
Payments on long-term debt | -208,000 | -796,537 | -415,000 | |||
Payments of deferred financing cost | -1,740 | -2,139 | 0 | |||
Borrowings under other financing arrangements | 20,214 | 9,431 | 62,580 | |||
Payments under other financing arrangements | -24,321 | -29,734 | -53,918 | |||
Payment of dividends to noncontrolling interests | -1,697 | -4,382 | -2,119 | |||
Net cash used in financing activities | -97,544 | -77,461 | -83,457 | |||
Net (decrease) increase in cash and cash equivalents | -76,841 | 52,070 | 48,570 | |||
Cash and cash equivalents, beginning of period | 170,845 | 118,775 | 70,205 | |||
Cash and cash equivalents, end of period | 94,004 | 170,845 | 118,775 | |||
Income taxes paid, net of receipts | -4,601 | -13,874 | -1,316 | |||
Interest paid | ($65,045) | ($71,875) | ($75,196) | |||
[1] | Includes amounts in Cost of services of $1.1 million, $1.7 million and $1.6 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (Deficit) (USD $) | Total | Total Equity (Deficit) Attributable to Delta Tucker Holdings, Inc. | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance, beginning of period at Dec. 30, 2011 | $453,152 | $447,966 | $0 | $550,951 | ($102,926) | ($59) | $5,186 |
Balance, beginning of period, Shares at Dec. 30, 2011 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -3,150 | -8,795 | -8,937 | 142 | 5,645 | ||
Distribution to affiliates of Parent | -1,302 | -1,998 | -1,998 | 696 | |||
DIFZ financing, net of tax | 369 | 369 | 369 | ||||
Dividends declared to noncontrolling interests | -3,315 | -3,315 | |||||
Balance, end of period at Dec. 31, 2012 | 445,754 | 437,542 | 0 | 549,322 | -111,863 | 83 | 8,212 |
Balance, end of period, Shares at Dec. 31, 2012 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -249,781 | -254,016 | -253,736 | -280 | 4,235 | ||
Stock compensation | 490 | 490 | 490 | ||||
DIFZ financing, net of tax | -231 | -231 | -231 | ||||
Dividends declared to noncontrolling interests | -6,572 | -6,572 | |||||
Balance, end of period at Dec. 31, 2013 | 189,660 | 183,785 | 0 | 549,581 | -365,599 | -197 | 5,875 |
Balance, end of period, Shares at Dec. 31, 2013 | 100 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -267,704 | -269,864 | -269,780 | -84 | 2,160 | ||
Stock compensation | 3,184 | 3,184 | 3,184 | ||||
DIFZ financing, net of tax | 129 | 129 | 129 | ||||
Dividends declared to noncontrolling interests | -2,546 | -2,546 | |||||
Balance, end of period at Dec. 31, 2014 | ($77,277) | ($82,766) | $0 | $552,894 | ($635,379) | ($281) | $5,489 |
Balance, end of period, Shares at Dec. 31, 2014 | 100 | 0 |
Significant_Accounting_Policie
Significant Accounting Policies and Accounting Developments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Significant Accounting Policies and Accounting Developments | Significant Accounting Policies and Accounting Developments | |||||||||||
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 Company was incorporated in the state of Delaware on April 1, 2010. On July 7, 2010, DynCorp International Inc. ("DynCorp International") completed a merger with Delta Tucker Sub, Inc., a wholly owned subsidiary of the Company. Pursuant to the Agreement and Plan of Merger dated as of April 11, 2010, Delta Tucker Sub, Inc. merged with and into DynCorp International, with DynCorp International becoming the surviving corporation and a wholly-owned subsidiary of the Company (the "Merger"). Holders of DynCorp International’s stock received $17.55 in cash for each outstanding share and since Cerberus indirectly owns all of our outstanding equity, DynCorp International’s stock is no longer publicly traded as of the Merger. | ||||||||||||
These consolidated financial statements have been prepared, pursuant to accounting principles generally accepted in the United States of America ("GAAP"). | ||||||||||||
Fiscal Year | ||||||||||||
The Company's quarterly periods end on the last Friday of the calendar quarter, except for the fourth quarter of the fiscal year, which ends on December 31. These financial statements reflect our financial results for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
Principles of Consolidation | ||||||||||||
The 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. | ||||||||||||
The Company classifies its 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. | ||||||||||||
Economic rights in active joint ventures that are operationally integral are indicated by the ownership percentages in the table listed below. | ||||||||||||
Partnership for Temporary Housing LLC ("PaTH") | 30 | % | ||||||||||
Contingency Response Services LLC ("CRS") | 45 | % | ||||||||||
Global Response Services LLC ("GRS") | 51 | % | ||||||||||
Global Linguist Solutions LLC ("GLS") | 51 | % | ||||||||||
Economic rights in an active joint venture that the Company does not consider operationally integral are indicated by the ownership percentage in the table listed below. | ||||||||||||
Babcock DynCorp Limited ("Babcock") | 44 | % | ||||||||||
Noncontrolling Interests | ||||||||||||
We record the impact of our partners' interests in less than wholly owned consolidated joint ventures as noncontrolling interests. Currently, DynCorp International FZ-LLC ("DIFZ") is our only consolidated joint venture for which we do not own 100% of the entity. In March 2012, we entered into a non-cash dividend distribution transaction with Cerberus Series Four Holdings, LLC and Cerberus Partners II, L.P., in which we distributed half of our 50% ownership in DIFZ. We now 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 consolidated statements of operations as an increase or reduction in arriving at "Net (loss) income attributable to Delta Tucker Holdings, Inc." Noncontrolling interests is located in the equity section on the consolidated balance sheets. See Note 12 for further information regarding DIFZ. | ||||||||||||
Revenue Recognition and Cost Estimation on Long-Term Contracts | ||||||||||||
General - We are predominantly a services provider and only include products or systems when necessary for the execution of the service arrangement. As such, systems, equipment or materials are not generally separable from the services we provide. Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the customer, the sales price is fixed or determinable (for non-U.S. government contracts) or costs are identifiable, determinable, reasonable and allowable (for our U.S. government contracts), and collectability is reasonably assured (for non-U.S. government contracts) or a reasonable contractual basis for recovery exists (for U.S. government contracts). Our contracts typically fall into the following two categories with the first representing substantially all of our revenue: (i) federal government contracts and (ii) other contracts. We apply the appropriate guidance consistently to all contracts. | ||||||||||||
Major factors we consider in determining total estimated revenue and cost include the base contract price, contract options, change orders (modifications of the original contract), back charges and claims, and contract provisions for penalties, award fees and performance incentives. All of these factors and other special contract provisions are evaluated throughout the life of our contracts when estimating total contract revenue under the percentage-of-completion or proportional methods of accounting. We inherently have risks related to our estimates with long-term contracts. Actual amounts could materially differ from these estimates. We believe the following are the risks associated with our estimation process: (i) assumptions are uncertain and inherently judgmental at the time of the estimate; (ii) use of reasonably different assumptions could have changed our estimates, particularly with respect to estimates of contract revenues, costs and recoverability of assets, and (iii) changes in estimates could have material effects on our financial condition or results of operations. The impact of any one of these factors could contribute to a material cumulative adjustment. | ||||||||||||
Some of our contracts with the U.S. government contain award or incentive fees. We recognize award or incentive fee revenue when we can make reasonably determinable estimates of award or incentive fees to consider them in determining total estimated contract revenue. We do not consider the mere existence of potential award or incentive fees as presumptive evidence that award or incentive fees are to be included in determining total estimated revenue. In some cases, we may not be able to accurately predict whether performance targets will be met, and as such, we exclude the award or incentive fees from the determination of total revenue in such instances. Our accrual of award or incentive fees may require adjustments from time to time. | ||||||||||||
We expense pre-contract costs as incurred for an anticipated contract until the contract is awarded. Throughout the life of the contract, indirect costs, including general and administrative costs, are expensed as incurred. Management regularly reviews project profitability and underlying estimates, including total cost to complete a project. For each project, estimates for total project costs are based on such factors as a project's contractual requirements and management's assessment of current and future pricing, economic conditions, political conditions and site conditions. Estimates can be impacted by such factors as additional requirements from our customers, a change in labor markets impacting the availability or cost of a skilled workforce, regulatory changes both domestically and internationally, political unrest or security issues at project locations. Revisions to estimates are reflected in our consolidated results of operations as changes in accounting estimates in the periods in which the facts that give rise to the revisions become known by management. We believe long-term contracts, contracts in a loss position and contracts with material award fees drive the significant changes in estimates in our contracts. | ||||||||||||
The following table presents the aggregate gross favorable and unfavorable adjustments to income before taxes resulting from changes in contract estimates, including the exercise of additional option years, for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in millions) | ||||||||||||
Gross favorable adjustments | $ | 7.4 | $ | 45.8 | $ | 29.3 | ||||||
Gross unfavorable adjustments | (53.9 | ) | (20.7 | ) | (9.7 | ) | ||||||
Net adjustments | $ | (46.5 | ) | $ | 25.1 | $ | 19.6 | |||||
Federal Government Contracts — For all non-construction and non-software U.S. federal government contracts or contract elements, we apply the guidance in ASC 912 - Contractors - Federal Government. We apply the combination and segmentation guidance in ASC 605-35 Revenue - Construction-Type and Production-Type Contracts under the guidance of ASC 912 in analyzing the deliverables contained in the applicable contract to determine appropriate profit centers. Revenue is recognized by profit center using the percentage-of-completion method or completed-contract method. The completed-contract method is used when reliable estimates cannot be supported for percentage-of-completion method recognition or for short duration projects when the results of operations would not vary materially from those resulting from use of the percentage-of-completion method. Until complete, project costs may be maintained in work-in-progress, a component of inventory. | ||||||||||||
Revenue is recognized based on progress towards completion over the contract period, measured by either output or input methods appropriate to the services or products provided. For example, "output measures" can include units delivered or produced, such as aircraft for which modification has been completed. "Input measures" can include a cost-to-cost method, such as for procurement-related services. | ||||||||||||
Other Contracts or Contract Elements — Our contracts with non-federal government customers are predominantly service arrangements. Multiple-element arrangements involve multiple obligations in various combinations to perform services, deliver equipment or materials, grant licenses or other rights, or take certain actions. We evaluate all deliverables in an arrangement to determine whether they represent separate units of accounting. Arrangement consideration is allocated among the separate units of accounting based on the guidance applicable for the multiple-element arrangements. Arrangements that are entered into or materially modified after January 1, 2011, are allocated to those identified as multiple-element arrangement based on their relative selling price which is established through vendor specific objective evidence (“VSOE”), third party evidence, or management’s best estimate. Due to the customized nature of our arrangements, VSOE and third party evidence is generally not available. Therefore, our post-January 1, 2011 arrangements allocate the relative selling price to multiple-element arrangements utilizing management’s best estimate of selling price. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
For purposes of reporting cash and cash equivalents, we consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||
Restricted Cash | ||||||||||||
Restricted cash represents cash restricted by certain contracts and available for use to pay specified costs and vendors on work performed on specific contracts. On some contracts, advance payments are not available for use and cash is to be disbursed for specified costs for work performed on the specific contract. Changes in restricted cash related to our contracts are included as operating activities within our consolidated statement of cash flows. | ||||||||||||
The Company classifies the long-term portion of restricted cash related to a legal matter in long term assets in our consolidated balance sheets as these amounts are restricted for periods that exceed one year from the balance sheet date. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management evaluates these estimates and assumptions on an ongoing basis, including but not limited to, those relating to allowances for doubtful accounts, fair value and impairment of intangible assets and goodwill, income taxes, stock based compensation, profitability on contracts, anticipated contract modifications, contingencies and litigation. Actual results could differ from those estimates. | ||||||||||||
Allowance for Doubtful Accounts | ||||||||||||
We establish an allowance for doubtful accounts against specific billed receivables based upon the latest information available to determine whether invoices are ultimately collectible. Such information includes the historical trends of write-offs and recovery of previously written-off accounts, the financial strength of the respective customer and projected economic and market conditions. The evaluation of these factors involves subjective judgments and changes in these factors may cause an increase to our estimated allowance for doubtful accounts, which could impact our consolidated financial statements by incurring bad debt expense. Given that we primarily serve the U.S. government, we believe the risk is low that changes in our allowance for doubtful accounts would result in a material impact on our financial results. | ||||||||||||
Property and Equipment | ||||||||||||
The cost of property and equipment, less applicable residual values, is depreciated using the straight-line method. Depreciation commences when the specific asset is complete, installed and ready for normal use. Depreciation related to equipment purchased for specific contracts is typically included within Cost of services, as this depreciation is directly attributable to project costs. We evaluate property and equipment for impairment quarterly by examining factors such as existence, functionality, obsolescence and physical condition. In the event we experience impairment, we revise the useful life estimate and record the impairment to arrive at a revised net book value. Our standard depreciation and amortization policies are as follows: | ||||||||||||
Computer and related equipment | 3 to 5 years | |||||||||||
Equipment and Other | 2 to 10 years | |||||||||||
Leasehold improvements | Shorter of lease term or useful life | |||||||||||
Customer Related Intangible Assets | ||||||||||||
The initial values assigned to customer-related intangibles were the result of fair value calculations associated with business combinations. The values were determined based on estimates and judgments regarding expectations for the estimated future after-tax cash flows from those assets over their lives, including the probability of expected future contract renewals and sales, less a cost-of-capital charge, all of which was discounted to present value. We evaluate the carrying value of our customer-related intangibles within the asset group representing the lowest level of identifiable cash flows whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The customer related intangible carrying value is considered impaired when the anticipated undiscounted cash flows from such asset group is less than its carrying value. In that case, a loss is recognized based on the amount by which the carrying value exceeds the fair value. | ||||||||||||
Indefinite-Lived Assets and Goodwill | ||||||||||||
Indefinite-lived assets, including goodwill and indefinite-lived tradename, are not amortized but are subject to an annual impairment test. We evaluate goodwill and indefinite lived tradename for impairment annually in the first month of the fourth quarter of each fiscal year and when an event occurs or circumstances change to suggest that the carrying value may not be recoverable. The first step of the goodwill impairment test compares the fair value of each of our reporting units with its carrying amount, including indefinite-lived assets. If the fair value of a reporting unit exceeds its carrying amount, the indefinite-lived assets of the reporting unit are not considered impaired, and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. | ||||||||||||
Income Taxes | ||||||||||||
We file income, franchise, gross receipts and similar tax returns in many jurisdictions. Our tax returns are subject to audit by the Internal Revenue Service, within most states in the U.S., and by various government agencies representing several jurisdictions outside the U.S. | ||||||||||||
We use the asset and liability approach for financial accounting and reporting for income taxes in accordance with the FASB. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is made up of current expense which includes both permanent and temporary differences and deferred expense which only includes temporary differences. Income tax expense is the amount of tax payable for the period plus or minus the change in deferred tax assets and liabilities during the period. | ||||||||||||
We perform a comprehensive review of our portfolio of uncertain tax positions regularly. The accounting for uncertainty in income taxes requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. A liability is recorded when a benefit is recognized for a tax position and it is not more-likely-than-not that the position will be sustained on its technical merits or where the position is more-likely-than-not that it will be sustained on its technical merits, but the largest amount to be realized upon settlement is less than 100% of the position. | ||||||||||||
To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. Tax-related interest is included within interest expense and tax-related penalties are included within income tax expense in our consolidated statements of operations. See Note 4 regarding income taxes. | ||||||||||||
Share Based Compensation | ||||||||||||
We recognize compensation expense in the financial statements for all share based arrangements. Share based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee's requisite service period. See Note 9 for further discussion on share based compensation. | ||||||||||||
Currency Translation | ||||||||||||
The assets and liabilities of our subsidiaries outside the U.S. that have a currency other than the U.S. dollar are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Results of operations and cash flow items for these subsidiaries are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions and the re-measurement of the financial statements of U.S. functional currency foreign subsidiaries are recognized currently in Cost of services and Other income, net, respectively and those resulting from translation of financial statements are included in accumulated other comprehensive income. Our foreign currency transactions were not material for the calendar years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
Operating Segments | ||||||||||||
Our business is aligned into two operating and reporting segments, DynAviation and DynLogistics. Our chief operating decision maker assesses performance and allocates resources based upon the separate financial information around the Company’s operating segments, which is comprised of numerous contracts. | ||||||||||||
Accounting Developments | ||||||||||||
Pronouncements Issued | ||||||||||||
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 our consolidated financial position, results of operations and cash flows. | ||||||||||||
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance in generally accepted accounting principles about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016 and for annual and interim periods thereafter (fiscal year 2016 for the Company). Early adoption is permitted. We do not expect the new guidance to have an impact on our consolidated financial statements. | ||||||||||||
Other accounting standards updates effective after December 31, 2014 are not expected to have a material effect on our consolidated financial position or annual results of operations and cash flows. |
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Composition of Certain Financial Statement Captions | 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 | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Prepaid expenses | $ | 30,821 | $ | 29,611 | ||||
Income tax refunds receivable | 655 | 7,334 | ||||||
Inventories | 25,198 | 27,008 | ||||||
Aircraft parts inventory held on consignment | 2,278 | 2,404 | ||||||
Work-in-process inventory, net | 5,772 | 28,444 | ||||||
Joint venture receivables | 1,497 | 2,251 | ||||||
Assets held for sale | — | 3,017 | ||||||
Other current assets | 7,979 | 24,441 | ||||||
Total prepaid expenses and other current assets | $ | 74,200 | $ | 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 December 31, 2013 were seven helicopters, valued at $5.6 million that were not deployed on any existing programs. During the year ended 2014, we modified two helicopters previously included within our inventory and deployed these two helicopters on one of our existing programs. The two deployed helicopters are included within our Property and equipment, net, and the change in helicopter classification was a non-cash investing activity within our Consolidated Statements of Cash Flows. During the year ended December 31, 2014, we sold one helicopter previously included within our inventory as of December 31, 2013 and we disassembled the remaining four helicopters into parts, which are included within our Inventory. | ||||||||
We also had six helicopters classified as held for sale as of December 31, 2013 that were previously deployed on an existing program. During the year ended 2014, we completed the sale of 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. | ||||||||
The Aircraft parts included in 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 December 31, 2014 and December 31, 2013, respectively. Work-in-process inventory includes equipment for vehicle modifications for specific customers, a significant portion of which were completed and delivered as of December 31, 2014 and other deferred costs related to certain contracts. | ||||||||
Other current assets decreased during the year ended December 31, 2014 primarily as a result of a reduction to our sales and use tax refund and the receipt of a lease incentive. Included in Other current assets as of December 31, 2013 was a $9.8 million insurance receivable related to a settlement of a certain legal matter. This matter was settled and paid during the year ended 2014. See Note 8 for further discussion. | ||||||||
Property and equipment, net — Property and equipment, net were: | ||||||||
As of | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
(Amounts in thousands) | ||||||||
Helicopters | $ | 7,108 | $ | 4,007 | ||||
Computers and other equipment | 11,061 | 14,258 | ||||||
Leasehold improvements | 19,055 | 17,585 | ||||||
Office furniture and fixtures | 4,203 | 3,006 | ||||||
Gross property and equipment | 41,427 | 38,856 | ||||||
Less accumulated depreciation | (17,641 | ) | (14,736 | ) | ||||
Total property and equipment, net | $ | 23,786 | $ | 24,120 | ||||
Property and equipment, net includes two helicopters valued at $2.0 million previously included within our inventory that were deployed on one of our programs during the year ended 2014. As of December 31, 2014 and December 31, 2013, Property and equipment, net also included the accrual for property additions of $0.8 million and $3.8 million, respectively. Depreciation expense was $5.7 million, $5.9 million and $5.7 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively, including certain depreciation amounts classified as Cost of services. See Note 11 for additional discussion. | ||||||||
Other assets, net — Other assets, net were: | ||||||||
As of | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
(Amounts in thousands) | ||||||||
Deferred financing costs, net | $ | 11,775 | $ | 17,526 | ||||
Investment in affiliates | 8,191 | 13,477 | ||||||
Palm promissory notes, long-term portion | 2,853 | 2,731 | ||||||
Other | 4,697 | 5,447 | ||||||
Total other assets, net | $ | 27,516 | $ | 39,181 | ||||
Deferred financing costs are amortized through interest expense. Amortization related to deferred financing costs was $6.1 million, $6.8 million, and $7.7 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Deferred financing costs were reduced during the years ended December 31, 2014 and December 31, 2013 by $1.4 million and $0.7 million, respectively, related to the pro rata write–off of financing costs to loss on early extinguishment of debt, partially offset by the fees incurred related to our fourth amendment and waiver to the Senior Credit Facility. See Note 7 for further discussion of our debt. The reduction in Investment in affiliates is the result of return of capital of $5.6 million and $2.2 million for the years ended December 31, 2014 and December 31, 2013, respectively. | ||||||||
Accrued payroll and employee costs — Accrued payroll and employee costs were: | ||||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Wages, compensation and other benefits | $ | 74,416 | $ | 93,007 | ||||
Accrued vacation | 18,889 | 20,383 | ||||||
Accrued contributions to employee benefit plans | 402 | 944 | ||||||
Total accrued payroll and employee costs | $ | 93,707 | $ | 114,334 | ||||
Accrued liabilities — Accrued liabilities were: | ||||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Customer liability | $ | 22,635 | $ | 61,856 | ||||
Accrued insurance | 20,551 | 40,120 | ||||||
Accrued interest | 24,250 | 24,641 | ||||||
Unrecognized tax benefit | 7,999 | 10,132 | ||||||
Contract losses | 27,864 | 13,738 | ||||||
Legal reserves | 8,657 | 14,147 | ||||||
Subcontractor retention | 1,761 | 4,300 | ||||||
Financed insurance | 2,055 | 6,162 | ||||||
Other | 14,254 | 25,437 | ||||||
Total accrued liabilities | $ | 130,026 | $ | 200,533 | ||||
The reduction to customer liabilities is primarily due to the completion of vehicle modifications for specific customers which were delivered as of December 31, 2014 and other amounts received from customers in excess of revenue recognized. Other is comprised of accrued rent, workers compensation related claims and other balances that are not individually material to the consolidated financial statements. Contract losses represent our best estimate of forward losses using currently available information and could change in future periods as new facts and circumstances emerge. Contract losses as of December 31, 2014 included an additional contract loss recorded on a U.S. Air Force contract as we continue to see delays in resolving a contract dispute. Legal matters include reserves related to various other lawsuits and claims that arise in the normal course of business. See Note 8 for further discussion. | ||||||||
Other long-term liabilities | ||||||||
Other long-term liabilities as of December 31, 2014 and December 31, 2013 were $11.3 million and $7.6 million, respectively. Other long-term liabilities are primarily due to our long-term postemployment benefit obligation of $3.9 million and 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 $4.3 million and $4.7 million as of December 31, 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 in McLean, Virginia. Additionally, during the year ended 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 $1.7 million and $7.8 million as of December 31, 2014 and December 31, 2013, respectively and are included within Other accrued liabilities above. | ||||||||
As a result of the restructuring plan, we paid $0.6 million and $3.9 million in relocation expenses during the year ended December 31, 2014 and December 31, 2013, respectively, in order to better position our executive presence in our Texas facilities. We also recorded a post-employment benefit expense of $15.5 million and $7.3 million during the year ended December 31, 2014 and December 31, 2013, respectively, related to severance in accordance with ASC 712 - Compensation. These charges were primarily related to the workforce reduction initiatives implemented during the year. Both charges were included in Selling, general and administrative expenses in the consolidated statements of operations. As of December 31, 2014 and December 31, 2013, we had approximately $10.6 million and $0.9 million, respectively, in accrued post-employment benefit expense for estimated future payments in accordance with ASC 712. We do not anticipate any further costs related to the restructuring plan. |
Goodwill_Other_Intangible_Asse
Goodwill, Other Intangible Assets, and Long-Lived Assets | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill, Other Intangible Assets and Long-Lived Assets | Goodwill, Other Intangible Assets and Long-Lived Assets | |||||||||||||||||
During the second quarter of 2014, we amended our organizational structure within the 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. | ||||||||||||||||||
During the third quarter of 2014, we amended our operating structure by realigning our existing DynGlobal segment as a pure business development organization focused on achieving our global growth objectives. DynGlobal will continue as a brand and an initiative to pursue international and commercial business. As a result, we eliminated the DynGlobal segment. DynGlobal resources were redeployed into the remaining two operating and reporting segments DynAviation and DynLogistics. The reporting units within DynAviation, which has two reporting units and DynLogistics which has three reporting units, remain unchanged. The amendment in our 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 and 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 impairment in the period in which the event is identified. | ||||||||||||||||||
We estimate the fair value of our reporting units using a combination of the income approach and the market approach. Under the income approach, we utilize a discounted cash flow model based on several factors including balance sheet carrying values, historical results, our most recent forecasts, and other relevant quantitative and qualitative information. We discount the related cash flow forecasts using the weighted-average cost of capital at the date of evaluation. Under the market approach, we utilize comparative market multiples in the valuation estimate. While the income approach has the advantage of utilizing more company specific information, the market approach has the advantage of capturing market based transaction pricing. The estimates and assumptions used in assessing the fair value of our reporting units and the valuation of the underlying assets and liabilities are inherently subject to significant uncertainties. | ||||||||||||||||||
Determining the fair value of a reporting unit or an indefinite-lived intangible asset involves judgment and the use of significant estimates and assumptions, particularly related to future operating results and cash flows. These estimates and assumptions include, but are not limited to, revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions and identification of appropriate market comparable data. Preparation of forecasts and the selection of the discount rate involve significant judgments that we base primarily on existing firm orders, expected future orders, and general market conditions. Significant changes in these forecasts, the discount rate selected, or the weighting of the income and market approach could affect the estimated fair value of one or more of our reporting units or indefinite-lived intangible assets and could result in an impairment charge in a future period. In addition, the identification of reporting units and the allocation of assets and liabilities to the reporting units or asset groups when determining the carrying value of each reporting unit or indefinite-lived intangible assets also requires judgment. All of these factors are subject to change with a change in the defense industry or larger macroeconomic environment. | ||||||||||||||||||
Our revenue is predominantly from contracts and subcontracts with the U.S. government and its agencies. The continuation and renewal of our existing government contracts and new government contracts are, among other things, contingent upon the availability of adequate funding for various U.S. government agencies, including the Department of Defense ("DoD") and the Department of State ("DoS"). Funding for our programs is dependent upon the annual budget and the appropriation decisions assessed by Congress, which are beyond our control. Estimates and judgments made by management, as it relates to the fair value of our reporting units or indefinite-lived intangible assets, could be impacted by the continued uncertainty over the defense industry. | ||||||||||||||||||
During the second quarter of 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, we 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. We 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 consolidated statement of operations. Any further declines in performance within this reporting unit in the future could result in a new triggering event and an additional goodwill impairment. | ||||||||||||||||||
Further, in light of the re-assessment of our future projections performed during the three months ended June 27, 2014, 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 reporting unit exceeded its carrying value by approximately 15%. | ||||||||||||||||||
During the third quarter of 2014, we recorded a significant loss on a U.S. Air Force contract as we continued to see delays in resolving the ongoing dispute on the contract and saw a reduction in our overall Aviation reporting unit forecast. We concluded that the decline in performance represented a triggering event within the Aviation reporting unit in DynAviation and a step one assessment was performed to identify any potential goodwill impairment. The results of the step one test indicated the carrying value of the Aviation reporting unit was greater than the fair value. We performed step two of the impairment test and determined that the goodwill at the Aviation reporting unit was partially impaired. As a result, a non-cash impairment charge of approximately $50.8 million was recorded during the three months ended September 26, 2014. The impairment charge has been presented within the Impairment of goodwill, intangibles and long lived assets in the consolidated statement of operations. We continue to monitor the performance of this reporting unit and any further declines in performance within this reporting unit in the future could result in a new triggering event and an additional goodwill impairment. | ||||||||||||||||||
During our annual goodwill impairment test as of October of 2014, and as a result of continued declines in performance we noted further changes to our assumptions and projections for the Aviation reporting unit. This reporting unit failed the step one of our annual goodwill impairment test. We performed a step two impairment test and determined the implied fair value of the reporting unit was lower than the carrying value, resulting in a non-cash impairment charge of $11.4 million. The impairment charge has been presented within the Impairment of goodwill, intangibles and other long lived assets in the consolidated statement of operations. We continue to monitor the performance of this reporting unit and any further declines in performance within this reporting unit in the future could result in a new triggering event and an additional goodwill impairment. | ||||||||||||||||||
In January 2015, the DoS issued a letter notifying us that our proposal on the recompete related to the INL contract within the Air Wing reporting unit was outside of the competitive range and would not be considered further for award. We requested and received a pre-award debriefing of the DoS' evaluation. We filed a protest with the U.S. Government Accountability Office ("GAO") to challenge the decision by the DoS. In response to our protest, the DoS notified the GAO that it will take corrective action which will include a reconsideration of its proposal evaluations, and a determination of whether discussions are necessary and, if so, it will make a new competitive range decision. The evaluation process is still underway and DoS has yet to award any part of the contract recompete. Pre-award protests occur within our industry frequently and during this process we are committed to continue to support and serve the DoS through our current contract which we believe will be extended during this procurement process. As a result of events described above, our annual goodwill impairment test for the Air Wing reporting unit failed step one of the impairment test indicating the carrying value of the reporting unit was more than the fair value. We performed step two of the impairment test (including an assessment of our customer related intangibles further discussed below) and determined that the goodwill at the reporting unit was impaired. As a result, a non-cash impairment charge of $12.0 million was recorded during the fourth quarter of 2014 to fully impair the carrying value of the Air Wing reporting unit goodwill. The impairment charge has been presented within the Impairment of goodwill, intangibles and long lived assets in the consolidated statement of operations. | ||||||||||||||||||
Our annual goodwill impairment test concluded that the estimated fair values of each of our remaining reporting units substantially exceeded their respective carrying values. The projections for these reporting units include significant estimates related to new business opportunities which are the basis for the discount rate assumptions currently applied and we have assessed this risk as one of the variables in establishing the discount rate. If we are unsuccessful in obtaining these opportunities in 2015, a triggering event could be identified and a step one assessment would be performed to identify any possible goodwill impairment in the period in which the event is identified. | ||||||||||||||||||
The fair value of the reporting units and the assets and liabilities identified in the impairment test were determined using the combination of the income approach and the market approach, which are Level 3 and Level 2 inputs, respectively. See Note 10 for further discussion of fair value. In calculating the fair value of the NSS, LSS, Air Wing and Aviation reporting units, we used unobservable inputs and management judgment which are Level 3 fair value measurements. We used the following estimates and assumptions in the discounted cash flow analysis: | ||||||||||||||||||
• | terminal value growth rates based on real rates of growth and inflationary growth; | |||||||||||||||||
• | terminal earnings before interest, taxes, depreciation and amortization ("EBITDA") margins, as a percentage of revenue reflecting forecasted EBITDA margins; | |||||||||||||||||
• | discount rates based on weighted-average cost of capital; and | |||||||||||||||||
• | assumptions regarding future capital expenditures. | |||||||||||||||||
The market approach analysis utilized observable level 2 inputs as it considered the inputs of other comparable companies. | ||||||||||||||||||
The carrying amount of goodwill, by segment, was as follows: | ||||||||||||||||||
(Amounts in thousands) | DynAviation | DynLogistics | Total | |||||||||||||||
Balance as of December 31, 2012 | $ | 442,393 | $ | 161,659 | $ | 604,052 | ||||||||||||
Impairment of goodwill | (281,461 | ) | (28,824 | ) | (310,285 | ) | ||||||||||||
Balance as of December 31, 2013 | 160,932 | 132,835 | 293,767 | |||||||||||||||
Impairment of goodwill | (74,137 | ) | (90,742 | ) | (164,879 | ) | ||||||||||||
Balance as of December 31, 2014 | $ | 86,795 | $ | 42,093 | $ | 128,888 | ||||||||||||
As a result of the triggering event identified within the DoS contract subsequent to year end, we also identified a triggering event with respect to the DoS customer-relationship intangibles (“CRI”). We performed an impairment test at the individual asset level and noted that the carrying amount of the CRI exceeded the anticipated undiscounted cash flows associated with the use and/or disposition of the asset. As a result, we recorded a non-cash impairment charge of $33.4 million during the fourth quarter of 2014 to partially impair the carrying value of the DoS CRI. The impairment charge has been presented within the Impairment of goodwill, intangibles and long lived assets in the consolidated statement of operations. The CRI impairment amount was factored into the step two goodwill impairment tests discussed above. The new cost basis of the CRI will be amortized over the remaining useful life of the asset. | ||||||||||||||||||
Further, as a part of our annual impairment test of indefinite-lived intangible assets, we noted that the estimated fair value of the indefinite-lived tradename was less than the carrying value. As a result, a $14.5 million non-cash impairment charge was recorded during the fourth quarter of 2014 to partially impair the carrying value of the indefinite-lived tradename. The impairment charge has been presented within the Impairment of goodwill, intangibles and long lived assets in the consolidated statement of operations. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about revenue growth, an appropriate royalty rate, and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting units discussed above. | ||||||||||||||||||
The following tables provide information about changes relating to certain intangible assets: | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Impairment | Net | |||||||||||||
Average | Carrying | Amortization | ||||||||||||||||
Useful Life | Value | |||||||||||||||||
(Years) | ||||||||||||||||||
Other intangible assets: | ||||||||||||||||||
Customer-related intangible assets | 4.6 | $ | 350,912 | $ | (178,126 | ) | $ | (33,388 | ) | $ | 139,398 | |||||||
Other | ||||||||||||||||||
Finite-lived | 4.8 | 15,418 | (10,395 | ) | — | 5,023 | ||||||||||||
Indefinite-lived | 5,059 | — | — | 5,059 | ||||||||||||||
Total other intangibles | $ | 371,389 | $ | (188,521 | ) | $ | (33,388 | ) | $ | 149,480 | ||||||||
Tradenames: | ||||||||||||||||||
Finite-lived | 0.4 | $ | 869 | $ | (807 | ) | $ | — | $ | 62 | ||||||||
Indefinite-lived | 43,222 | — | (14,522 | ) | 28,700 | |||||||||||||
Total tradenames | $ | 44,091 | $ | (807 | ) | $ | (14,522 | ) | $ | 28,762 | ||||||||
December 31, 2013 | ||||||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Impairment | Net | |||||||||||||
Average | Carrying | Amortization | ||||||||||||||||
Useful Life | Value | |||||||||||||||||
(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 and other intangibles was $44.0 million, $44.3 million and $46.1 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Other intangibles is primarily representative of our capitalized software which had a net carrying value of $5.0 million and $7.9 million as of December 31, 2014 and December 31, 2013, respectively. | ||||||||||||||||||
The following table outlines an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2014: | ||||||||||||||||||
Amortization | ||||||||||||||||||
Expense (1) | ||||||||||||||||||
Estimate for calendar year 2015 | 32,264 | |||||||||||||||||
Estimate for calendar year 2016 | 29,465 | |||||||||||||||||
Estimate for calendar year 2017 | 26,880 | |||||||||||||||||
Estimate for calendar year 2018 | 23,908 | |||||||||||||||||
Estimate for calendar year 2019 | 21,463 | |||||||||||||||||
Thereafter | 10,503 | |||||||||||||||||
(1)The future amortization is inclusive of the finite lived intangible-assets and finite-lived tradename. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The domestic and foreign components of (Loss) income before income taxes are as follows: | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | December 31, 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Domestic | $ | (286,799 | ) | $ | (286,989 | ) | $ | 6,567 | ||||
Foreign | (1,391 | ) | 27 | 5,739 | ||||||||
(Loss) income before income taxes | $ | (288,190 | ) | $ | (286,962 | ) | $ | 12,306 | ||||
The Benefit (provision) from income taxes consists of the following: | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in thousands) | ||||||||||||
Current portion: | ||||||||||||
Federal | $ | 311 | $ | — | $ | — | ||||||
State | (800 | ) | (784 | ) | (500 | ) | ||||||
Foreign | (3,363 | ) | (16,045 | ) | (4,342 | ) | ||||||
(3,852 | ) | (16,829 | ) | (4,842 | ) | |||||||
Deferred portion: | ||||||||||||
Federal | 23,001 | 52,574 | (9,996 | ) | ||||||||
State | 739 | 1,086 | (101 | ) | ||||||||
Foreign | 682 | 630 | (659 | ) | ||||||||
24,422 | 54,290 | (10,756 | ) | |||||||||
Benefit (provision) from income taxes | $ | 20,570 | $ | 37,461 | $ | (15,598 | ) | |||||
Temporary differences, which give rise to deferred tax assets and liabilities, were as follows: | ||||||||||||
As of | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets related to: | ||||||||||||
Workers' compensation accrual | $ | 5,046 | $ | 10,788 | ||||||||
Accrued vacation | 4,734 | 5,055 | ||||||||||
Completion bonus allowance | 6,001 | 3,539 | ||||||||||
Accrued severance | 3,751 | 193 | ||||||||||
Accrued executive incentives | 2,151 | 4,538 | ||||||||||
Legal reserve | 3,099 | 1,559 | ||||||||||
Accrued health costs | 799 | 1,704 | ||||||||||
Suspended loss from consolidated partnership | — | 5,421 | ||||||||||
Contract loss reserve | 11,684 | 8,877 | ||||||||||
Other accrued liabilities and reserves | 26,261 | 18,539 | ||||||||||
Partnership / joint venture basis differences | 3,072 | — | ||||||||||
Foreign tax credit carryforward | 16,336 | 17,880 | ||||||||||
Net operating loss carryforward | 979 | 1,096 | ||||||||||
Other carryforwards | 704 | 656 | ||||||||||
Uncertain tax positions | 5,649 | 7,471 | ||||||||||
Goodwill and other intangible assets | 44,201 | — | ||||||||||
Valuation allowance | (47,808 | ) | — | |||||||||
Total deferred tax assets | 86,659 | 87,316 | ||||||||||
Deferred tax liabilities related to: | ||||||||||||
Partnership / joint venture basis differences | — | (150 | ) | |||||||||
Prepaid insurance | (5,242 | ) | (6,976 | ) | ||||||||
Indefinite lived intangibles | (31,806 | ) | — | |||||||||
Goodwill and other intangible assets | — | (25,101 | ) | |||||||||
Unbilled receivables | (75,392 | ) | (103,413 | ) | ||||||||
Total deferred tax liabilities | (112,440 | ) | (135,640 | ) | ||||||||
Total deferred tax liabilities, net | $ | (25,781 | ) | $ | (48,324 | ) | ||||||
Deferred tax assets and liabilities are reported as: | ||||||||||||
As of | ||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current deferred tax liabilities, net | $ | (31,477 | ) | $ | (30,965 | ) | ||||||
Non-current deferred tax assets (liabilities), net | 5,696 | (17,359 | ) | |||||||||
Deferred tax liabilities, net | $ | (25,781 | ) | $ | (48,324 | ) | ||||||
Management assesses both the available positive and negative evidence to determine whether it is more likely than not that there will be sufficient sources of future taxable income to recognize deferred tax assets. We incurred cumulative losses over the three-year period ended December 31, 2014. Cumulative losses in recent years are considered significant objective negative evidence in evaluating deferred tax assets under the more likely than not criteria for recognition of deferred tax assets. On the basis of this evaluation, we recorded a valuation allowance of $47.8 million as of December 31, 2014. | ||||||||||||
As of December 31, 2014 and December 31, 2013, we had no U.S. federal net operating losses available for use. As of December 31, 2014 and December 31, 2013, we had state net operating losses ("NOLs") of approximately $123.6 million and $138.3 million, respectively, most of which will begin to expire in 2020 or later. We had approximately $16.3 million and $17.9 million as of December 31, 2014 and December 31, 2013, respectively, in foreign tax credit carryforwards ("FTCs"). Additionally, we made no estimated federal income tax payments for the year ended December 31, 2014 and $6.9 million for the year ended December 31, 2013. | ||||||||||||
A reconciliation of the statutory federal income tax rate to our effective rate is provided below: | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income tax, less effect of federal deduction | — | % | 0.1 | % | 4.9 | % | ||||||
Noncontrolling interests | 0.3 | % | 0.5 | % | (16.1 | )% | ||||||
Goodwill impairment (1) | (11.2 | )% | (22.6 | )% | 70.6 | % | ||||||
Uncertain tax positions | 0.1 | % | (0.1 | )% | 13.7 | % | ||||||
Nondeductible expenses | (0.8 | )% | (0.4 | )% | 9 | % | ||||||
Penalties | — | % | — | % | 5.8 | % | ||||||
Valuation allowance | (16.2 | )% | — | % | — | % | ||||||
Other | (0.1 | )% | 0.6 | % | 3.8 | % | ||||||
Effective tax rate | 7.1 | % | 13.1 | % | 126.7 | % | ||||||
-1 | Includes non-cash impairment charges to goodwill associated with our DynAviation and DynLogistics segments for years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. See Note 3 for further discussion. | |||||||||||
Due to the nature of our business, as a provider of professional and technical government services to the U.S. government, foreign earnings are generally exempt from foreign tax due to various bi-lateral agreements often referred to as Status of Forces Agreements ("SOFA") and Status of Mission Agreements ("SOMA") or their equivalents. We repatriate and provide U.S. income taxes on virtually all income we earn outside of the United States. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
We account for uncertain tax positions in accordance with ASC 740 - Income Taxes, which prescribes the more likely than not threshold for recognition of a tax position in the financial statements. The amount of unrecognized tax benefits at December 31, 2014 and December 31, 2013 was $7.3 million and $9.5 million, respectively, of which $2.3 million and $2.7 million, respectively, would impact our effective tax rate if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(Amounts in thousands) | Unrecognized Tax Benefits | |||||||||||
Balance at December 31, 2012 | $ | 8,234 | ||||||||||
Additions for tax positions related to prior years | 1,686 | |||||||||||
Reductions for tax positions of prior years | (447 | ) | ||||||||||
Settlements | — | |||||||||||
Remeasurements | — | |||||||||||
Net releases | — | |||||||||||
Lapse of statute of limitations | — | |||||||||||
Balance at December 31, 2013 | $ | 9,473 | ||||||||||
Additions for tax positions related to prior years | — | |||||||||||
Reductions for tax positions of prior years | (447 | ) | ||||||||||
Settlements | (1,375 | ) | ||||||||||
Remeasurements | (311 | ) | ||||||||||
Net releases | — | |||||||||||
Lapse of statute of limitations | — | |||||||||||
Balance at December 31, 2014 | $ | 7,340 | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties are included on the related tax liability line in the consolidated balance sheet. For the years ended December 31, 2014 and December 31, 2013, there was no accrued interest related to unrecognized tax benefits in interest expense and no penalties recognized in the provision for income taxes within our consolidated statements of operations. We expect the unrecognized tax benefit of $8.0 million, inclusive of penalties, as of December 31, 2014 to be settled within the next twelve months. For the year ended December 31, 2012, we had a net decrease of approximately $0.1 million of interest expense and recorded $0.7 million increase in cumulative penalties recognized in the provision for income taxes within our consolidated statements of operations. | ||||||||||||
We file income tax returns in U.S. federal and state jurisdictions and in various foreign jurisdictions which are subject to examinations by the IRS and other taxing authorities. These audits can result in adjustments of taxes due. Our estimate of the potential outcome of any uncertain tax issue prior to audit is subject to management's assessment of relevant risks, facts, and circumstances existing at that time. An unfavorable result under audit may reduce the amount of state net operating losses we have available for carryforward to offset future taxable income, or may increase the amount of tax due for the period under audit, resulting in an increase to the effective rate in the year of resolution. The statute of limitations is open for U.S. federal income tax returns for our fiscal year 2009 forward. The statute of limitations for state income tax returns is open for our fiscal year 2010 and forward, with few exceptions, and foreign income tax examinations for the calendar year 2009 forward, with few exceptions. | ||||||||||||
On January 22, 2014, a tax assessment from the Large Tax Office of the Afghanistan Ministry of Finance was received, seeking $64.2 million in taxes and penalties specific to one of our business licenses in Afghanistan for periods 2009 through 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. See further discussion in Note 8. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts Receivable | Accounts Receivable | |||||||
Accounts Receivable, net consisted of the following: | ||||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Billed | $ | 146,286 | $ | 179,586 | ||||
Unbilled | 302,210 | 397,550 | ||||||
Total | $ | 448,496 | $ | 577,136 | ||||
Unbilled receivables as of December 31, 2014 and December 31, 2013 include $50.7 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. Our largest contract, LOGCAP IV, accounted for approximately 59% and 84% of these amounts as of December 31, 2014 and December 31, 2013, respectively. We believe we have legal and contractual basis for these amounts and are working with our customer to complete the contract actions that will allow us to bill and collect our receivables. If we cannot reach an agreement with the customer, we believe we have other avenues to pursue resolution, including the claims process. LOGCAP IV accounted for approximately 20% and 34% of total unbilled receivables as of December 31, 2014 and December 31, 2013, respectively. | ||||||||
As of December 31, 2014, we had four contract claims with no associated receivable balances and as of December 31, 2013, we had no contract claims outstanding with associated receivable balances. The balance of unbilled receivables above consists of costs and fees billable immediately on 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. |
Retirement_Plans
Retirement Plans | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||
Retirement Plans | Retirement Plans | ||||||||||
401(k) Savings Plans | |||||||||||
The DynCorp International Savings Plan (the "Savings Plan") is a participant-directed, defined contribution, 401(k) plan for the benefit of employees meeting certain eligibility requirements. The Savings Plan is intended to qualify under Section 401(a) of the U.S. Internal Revenue Code (the "Code") and is subject to the provisions of the Employee Retirement Income Security Act of 1974. Under the Savings Plan, participants may contribute from 1% to 50% of their earnings. Contributions are made on a pre-tax basis, limited to annual maximums set by the Code. The current maximum contribution per employee is $17,500 per calendar year. In June 2014, the Company updated its matching contributions to an amount equal to 100% of the first 2% of employee contributions and 50% of the next 4%, up to 12,750 per calendar year are invested in various funds at the discretion of the participant. Prior to June 2014, Company matching contributions were made in an amount equal to 100% of the first 2% of employee contributions and 50% of the next 6%, up to 12,750 per calendar year are invested in various funds at the discretion of the participant. We incurred Savings Plan expense of approximately $11.9 million, $16.1 million and $18.2 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. All Savings Plan expenses are fully funded. | |||||||||||
Nonqualified Unfunded Deferred Compensation Plan | |||||||||||
The Company has a non-qualified unfunded and unsecured deferred compensation plan that is offered to certain members of management allowing for the deferral of salary and bonuses without the statutory limitations present in 401(k) savings plan. The elections under the savings plans must be completely separate and independent of each other. Under the deferred compensation plan, the deferral amount limitation is 50% of salary and 100% of bonuses and each participant shall be 100% vested in, at all times. The funds can be distributed the first day of the calendar month following the six-month anniversary of the participant’s separation from the Company. The participant can elect payout of the funds in a single sum or annual installments over 5 or 10 years; however, only one election can be made with respect to all of the deferrals in the respective account. If, for any reason, the participant fails to make a valid and timely election, the participant’s account shall be distributed as a single sum as of the participant’s benefit commencement date. There were no contributions made to the deferred compensation plan on behalf of the Company for years ended December 31, 2014, December 31, 2013 and December 31, 2012. | |||||||||||
Multiemployer Pension Plans | |||||||||||
We are subject to several collective-bargaining agreements that require contributions to a multiemployer defined benefit pension plan that covers its union-represented employees. We contribute to this plan based on specified hourly rates for eligible hours. The risks of participating in this multiemployer plan are different from single-employer plans in the following aspects: | |||||||||||
a. | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | ||||||||||
b. | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | ||||||||||
c. | If we stop participating in the multiemployer plan, we may be required to pay a withdrawal liability based on our portion of the unfunded status of the plan. | ||||||||||
We are subject to 13 significant collective bargaining-agreements ("CBA") that require contributions to the International Association of Machinists National Pension Fund ("IAMNPF") with expiration dates ranging from May 15, 2015 through March 30, 2018. This is the only multiemployer plan that we contribute to. As long as we remain a contributing employer, we have no liability for any unfunded portion of this plan. However, if for any reason, we stop making contributions to the plan under any of the individual collective-bargaining agreements, we could be assessed a potential withdrawal liability based on our share of the unfunded vested benefits of the plan. Our share of the unfunded vested benefits is determined by the contributions required under the individual collective-bargaining agreements from which we withdraw relative to the plan as a whole. | |||||||||||
Our participation in the IAMNPF for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is outlined in the table below. The "EIN/PN" column provides the Employee Identification Number ("EIN") and the three-digit plan number ("PN"). The most recent Pension Protection Act ("PPA") zone status available for 2014, 2013 and 2012 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent and 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Pending/Implemented" column indicates if the plan has a financial improvement plan ("FIP") or a rehabilitation plan ("RP") which is either pending or has been implemented. In addition to regular plan contributions, we may be subject to a surcharge if the plan is in the red zone. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. | |||||||||||
FIP / RP Status | Total Contributions of DynCorp International | Expiration | |||||||||
PPA Zone Status (2) | Pending / | (Amounts in thousands) | Surcharge | Date of | |||||||
Pension Fund | EIN/PN | 2014 | 2013 | 2012 | Implemented | 2014 | 2013 | 2012 | Imposed | CBA | |
IAMNPF (1) | 516031295 / 001 | Green | Green | Green | No | $6,845 | $6,062 | $4,686 | No | 5/15/2015 through 3/30/2018 | |
-1 | Of the 13 collective-bargaining agreements that require contributions to this plan, the agreement with International Association of Machinists ("IAM") Pilot union employees at California Department of Forestry and Fire Protection ("CAL FIRE") is the most significant as contributions under this plan for years 2015 through the expiration date of the collective-bargaining agreement will approximate $14.1 million, or 36.3% of all required contributions to the IAMNPF. | ||||||||||
-2 | Unless otherwise noted, the most recent PPA zone status available in 2014, 2013 and 2012, is for the plan’s year-end status for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. The zone status is based on information we receive from the plan and is certified by the plan's actuary. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Long-Term Debt | Long-Term Debt | |||||||
Long-term debt consisted of the following: | ||||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 455,000 | ||||
Term loan | 187,272 | 277,272 | ||||||
Total long-term debt | $ | 642,272 | $ | 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 “Third Amendment”) to the Senior Credit Facility. The Third 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. | ||||||||
On November 5, 2014, we entered into a fourth amendment and waiver (the "Fourth Amendment") to the Senior Credit Facility. The Fourth Amendment, among other things, (i) amended the Senior Credit Facility by modifying financial maintenance covenants; (ii) reduced the amount of the Revolver credit commitments of the lenders consenting to the Fourth Amendment by 20%, which represented a reduction of approximately $36.2 million; (iii) amended the definition of Consolidated Net Income as defined in the Senior Credit Facility to exclude up to $35 million for a one-time charge during the three month period ended September 26, 2014 related to a certain U.S. Air Force contract; and (iv) waived compliance with the financial maintenance covenants with respect to the three month period ended September 26, 2014. | ||||||||
The Senior Credit Facility is secured by substantially all of our assets and is guaranteed by substantially all of our subsidiaries. As of December 31, 2014, the Senior Credit Facility provided for a $187.3 million Term Loan and the $144.8 million Revolver, which includes a $100.0 million letter of credit subfacility. As of December 31, 2014 and December 31, 2013, the available borrowing capacity under the Senior Credit Facility was approximately $108.1 million and $144.6 million, respectively, which includes $36.7 million and $36.4 million, respectively, in issued letters of credit. Amounts borrowed under the Revolver are used to fund operations. As of December 31, 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 margin or the (ii) London Interbank Offered Rate ("Eurocurrency Rate") as defined in the Senior Credit Facility plus an applicable margin. The applicable margin for the Term Loan is fixed at 3.5% for the Base Rate option and 4.5% for the Eurocurrency Rate option. The applicable margin for the Revolver ranges from 3.0% to 3.5% for the Base Rate option or 4.0% to 4.5% for the Eurocurrency option based on our outstanding 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 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 December 31, 2014 and December 31, 2013, the applicable 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 the applicable margin for Eurocurrency Rate loans, which ranges from 4.0% to 4.5%. 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. Interest payments on both the letter of credit subfacility and unused commitments are payable quarterly in arrears. The applicable interest rates for our letter of credit subfacility were 4.00% and 4.25% as of December 31, 2014 and December 31, 2013, respectively. The applicable interest rate for our unused commitment fees was 0.50% as of December 31, 2014 and December 31, 2013, respectively. All of our letters of credit are also subject to a 0.25% fronting fee. | ||||||||
Principal Payments | ||||||||
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 were not required to make any additional principal payments under the Excess Cash Flow requirement during the year ended December 31, 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 year ended December 31, 2014. | ||||||||
During the years ended December 31, 2014 and December 31, 2013, we made principal payments of $90.0 million and $50.0 million, respectively on the Term Loan. Pursuant to our Term Loan, quarterly principal payments are required, however, the principal prepayments made in 2011 were applied to the future scheduled maturities and satisfied our responsibility to make quarterly principal payments through July 7, 2016. | ||||||||
Deferred financing costs of $1.4 million and $0.7 million, related to the various principal payments, were expensed and included in Loss on early extinguishment of debt in our consolidated statement of operations for the years ended December 31, 2014 and December 31, 2013, respectively. There were no penalties associated with the prepayments. | ||||||||
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, 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 addition, the Senior Credit Facility contains two financial maintenance covenants, a maximum total leverage ratio and a minimum interest coverage ratio. | ||||||||
The 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. | ||||||||
Effective with the Fourth Amendment, the maximum total leverage ratios are set forth below as follows: | ||||||||
Period Ending | Total Leverage Ratio | |||||||
December 31, 2014 | 5.55 to 1.0 | |||||||
March 27, 2015 | 6.65 to 1.0 | |||||||
June 26, 2015 | 7.70 to 1.0 | |||||||
September 25, 2015 | 8.10 to 1.0 | |||||||
December 31, 2015 | 7.75 to 1.0 | |||||||
March 25, 2016 | 7.60 to 1.0 | |||||||
June 24, 2016 | 6.90 to 1.0 | |||||||
June 25, 2016 and thereafter | 6.60 to 1.0 | |||||||
The interest coverage ratio is the ratio of Consolidated EBITDA to Consolidated Interest Expense, as defined in the Senior Credit Facility. Effective with the Fourth Amendment, the interest coverage ratios are set forth below as follows: | ||||||||
Period Ending | Interest Coverage Ratio | |||||||
31-Dec-14 | 1.05 to 1.0 | |||||||
March 25, 2016 | 1.15 to 1.0 | |||||||
June 24, 2016 | 1.20 to 1.0 | |||||||
June 25, 2016 and thereafter | 1.30 to 1.0 | |||||||
As of December 31, 2014 and December 31, 2013, we were in compliance with our financial maintenance covenants. | ||||||||
Senior Unsecured Notes | ||||||||
On July 7, 2010, DynCorp International Inc. completed an offering of $455.0 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, National Association (as successor by merger to 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 Poors. | ||||||||
We can redeem the Senior Unsecured Notes, in whole or in part, at defined call prices, plus accrued interest through the redemption date. The Indenture requires us to repurchase the Senior Unsecured Notes at defined prices in the event of certain asset sales and change of control events. | ||||||||
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 plus the accrued and unpaid 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 $15.0 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. | ||||||||
The fair value of the Senior Unsecured Notes is based on their quoted market value. As of December 31, 2014 and December 31, 2013, the quoted market value of the Senior Unsecured Notes was approximately 82.0% and 103.0%, respectively, of stated value. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 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 $95.5 million, $167.6 million, and $217.4 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. We have no significant long-term purchase agreements with service providers. | |||||||||||||
Minimum fixed rental payments non-cancelable for the next five years and thereafter under operating leases in effect as of December 31, 2014, are as follows: | |||||||||||||
Calendar Year | Real Estate | Equipment | Total | ||||||||||
(Amounts in thousands) | |||||||||||||
2015 (1) | $ | 24,698 | $ | 5,817 | $ | 30,515 | |||||||
2016 | 11,839 | 3,386 | 15,225 | ||||||||||
2017 | 10,041 | 2,433 | 12,474 | ||||||||||
2018 | 9,060 | — | 9,060 | ||||||||||
2019 | 4,225 | — | 4,225 | ||||||||||
Thereafter | 13,911 | — | 13,911 | ||||||||||
Total | $ | 73,774 | $ | 11,636 | $ | 85,410 | |||||||
-1 | The minimum lease table above excludes agreements of one year or less in duration. These leases are accounted for in our rent expense, however, because of the short tenure of the lease, these are not reflected in the table above. | ||||||||||||
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 $8.7 million and $14.1 million as of December 31, 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 December 31, 2014. These accrued reserves represent the best estimate of amounts believed to be our liability in a range of expected losses. In accordance with ASC 450 - Contingencies, in addition to matters that are considered probable and can be reasonably estimated, we also disclose certain matters considered reasonably possible. In addition to the disclosure requirements set forth in ASC 450-20, the Company also discloses any other contingencies for which the likelihood of an unfavorable outcome is remote but for which the Company believes are of such a significant nature that disclosure would benefit a user of our financial statements. Other than matters disclosed below, we believe the aggregate range of possible loss related to matters considered reasonably possible was not material as of December 31, 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 have been 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. At this time, we believe the likelihood of an unfavorable outcome in this case is remote. | |||||||||||||
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, and the appeal is pending. 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 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 filed a complaint against us seeking reformation of previously provided insurance policies and the elimination of coverage for aerial spraying. We believe 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 December 31, 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 upon 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 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 US 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, we were 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. On November 26, 2014, the UAE court entered a judgment in favor of Al Hamed in the amount of $3.75 million, which both parties appealed. As of December 31, 2014, a reserve had been established for the full amount of the settlement. In March 2015, the parties agreed to a settlement in which we paid $3.6 million and the matter is now closed. | |||||||||||||
In February 2014, we 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 upon 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 Eastern theater on the War Reserve Materials 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. In September 2014, we received notice this investigation was closed by the Department of Justice Civil Litigation Division. | |||||||||||||
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 business 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 we are 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. | |||||||||||||
We have received a series of 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. 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. Over the past several years, we have worked with the DCAA and our customer in resolving matters inclusive in the Form 1s as well as other transmittals. We have provided responses to the DCAA and the Department of State that 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 $7.7 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. However, we do anticipate resolving these contingencies for an immaterial amount as we continue to work with the customer and the DCAA in providing clarification of the facts and circumstances surrounding the issues. | |||||||||||||
On April 30, 2013, we received several Form 1s from DCAA disapproving approximately $152.0 million of cost incurred for the periods ranging between 2000 to 2011 on the War Reserve Materiel program related to concerns on items such as the adequacy of documentation and reasonableness of costs. We are working with the Air Force to resolve these questions. Based on our recent correspondence with the customer, a substantial portion of these items represent loss contingencies are remote. The remaining portion of these items totaling $1.8 million represent loss contingencies that we consider reasonably possible; however, we do anticipate resolving these contingencies for an immaterial amount as we continue to work with the customer. | |||||||||||||
Foreign Contingencies | |||||||||||||
As discussed in Note 4, on January 22, 2014, a tax assessment from the Large Tax Office of the Afghanistan Ministry of Finance (“MOF”) was received, seeking $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, $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 December 31, 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 worker's compensation and employer's 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. |
Equity
Equity | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Equity | Equity | ||||||
At April 1, 2010 (inception), 100 common shares were issued and, as of December 31, 2014, 100 shares remain issued and outstanding as there have been no further issuances of common shares since that date. During the period from April 1, 2010 (inception) through December 31, 2010, our equity was impacted by a capital contribution of $550.9 million in connection with the merger entered into on July 7, 2010. | |||||||
Share Based Payments | |||||||
On December 17, 2013, certain members of management and outside directors were awarded Class B interests in DynCorp Management LLC (“DynCorp Management”). DynCorp Management LLC conducts no operations and was established for the purpose of holding equity in our Company. DynCorp Management LLC authorized 100,000 Class B shares as available for issuance and approved 7,246 Class B-1 Interests and 380 Class B-2 Interests to certain members of management and outside directors of Defco Holdings, Inc. (“Holdings”), the 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-1 Interests and B-2 Interests Agreements. As of December 31, 2013 consents were received from members of management and outside directors with grants totaling 3,144 shares. Grants and the receipt of consents to the terms and conditions totaled 4,339 Class B-1 Interests during the year ended December 31, 2014. | |||||||
The Class B-1 Interests are subject to (i) time-based vesting in separate tranches based on the participants’ hire date (each such date a “Vesting Date”); (ii) acceleration of vesting in certain circumstances (such as in the event of a change in control or termination of the executive without cause); and (iii) continued employment of the member of management by Holdings or its subsidiaries through the applicable vesting dates. | |||||||
Class B-1 Interests held by participants hired in 2013 shall vest in 5 equal 20% installments on each of the grant dates of the Class B-1 Interests, July 15, 2014, July 15, 2015, July 15, 2016 and July 15, 2017. Class B-1 Interests Participants hired in 2012 shall vest with respect to 30% of the Class B-1 Interests on the grant date, an additional 20% on July 15, 2014, 20% on July 15, 2015 and with respect to the remaining Class B-1 Interests on July 15, 2016. Class B-1 Interests Participants hired in 2010 and 2011 shall vest with respect to 40% of the Class B-1 Interests as of the grant date, an additional 20% on July 15, 2014 and with respect to the remaining Class B-1 Interests on July 15, 2015. | |||||||
A summary of the Class B Interest plans activity for the years ended December 31, 2014 and December 31, 2013 is as follows: | |||||||
Number of | |||||||
Interests | |||||||
Outstanding at December 31, 2012 | — | ||||||
Granted: | |||||||
Class B-1 | 2,764 | ||||||
Class B-2 | 380 | ||||||
Exercised | — | ||||||
Forfeited or expired | — | ||||||
Outstanding at December 31, 2013 | 3,144 | ||||||
Granted: | |||||||
Class B-1 | 4,339 | ||||||
Class B-2 | — | ||||||
Exercised | — | ||||||
Forfeited or expired | (1,582 | ) | |||||
Outstanding at December 31, 2014 | 5,901 | ||||||
Awards to our management team consist of options qualifying as profits interests under Revenue Procedure 93-27, that are exercisable only upon a change in control as defined in the Plan. The awards do not expire and the awards do not have a fixed strike price. The value of the Class B Interest as of the grant date is calculated using a Monte Carlo simulation consistent with the provisions of ASC Topic 718, “Compensation—Stock Compensation” and is amortized over the respective vesting period. The Monte Carlo simulation, similar to a Black-Scholes option pricing formula, requires the input of subjective assumptions, including the estimated life of the interest and the expected volatility of the underlying stock over the estimated life of the option. We use historical volatility of the market-based guideline companies as a basis for projecting the expected volatility of the underlying Class B interest and estimated the expected life of our Class B grants to be 4 years as of the grant date. The 2013 fair value utilized for determining the profits interests for Class B-1 and B-2 interests was $819.26 and $258.30, respectively. The initial fair value was utilized for all grants through the period ending March 28, 2014. After the period ending March 28, 2014, another valuation was performed to determine the fair value of future grants resulting in the 670 Class B-1 interests granted after March 28, 2014 having a fair value of $32.73. | |||||||
We believe that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating the fair value of our Class B grants. | |||||||
For the periods indicated, the weighted-average assumptions used were as follows: | |||||||
For the years ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Weighted-average assumptions used: | |||||||
Expected volatility | 36 | % | 33.5 | % | |||
Risk-free interest rate | 1.1 | % | 1.7 | % | |||
Expected yield | 8 | % | 8 | % | |||
Expected life (in years) | 2.8 | 4 | |||||
Forfeiture rate | 8 | % | 8 | % | |||
The total grant date fair value of all options granted during 2014 and 2013 was $4.6 million and $1.5 million, respectively. Total compensation cost expensed for the years ended December 31, 2014 and December 31, 2013 was $3.2 million and $0.5 million, respectively. | |||||||
The following is a summary of the changes in non-vested shares for the years ended December 31, 2014 and December 31, 2013: | |||||||
Number of Shares | |||||||
Non-vested shares at December 31, 2012 | — | ||||||
Granted | 3,144 | ||||||
Vested | (1,021 | ) | |||||
Forfeited | — | ||||||
Non-vested shares at December 31, 2013 | 2,123 | ||||||
Granted | 4,339 | ||||||
Vested | (3,646 | ) | |||||
Forfeited | (1,582 | ) | |||||
Non-vested shares at December 31, 2014 | 1,234 | ||||||
As of December 31, 2014, the total compensation cost related to the non-vested Class B awards, not yet recognized, was $0.4 million which will be recognized over a weighted average period of approximately 1.2 years. | |||||||
Long-Term Incentive Bonus | |||||||
On December 17, 2013 the Company approved a long-term cash incentive bonus for certain members of management and outside directors, where in the event of a change in control, subject to the various members of management continued employment with the Company through such a change in control and execution of a restrictive covenant agreement within fourteen days of receipt of such agreement, the various members of management shall be eligible to receive a cash incentive bonus. As of December 31, 2014 there was no impact to the financial statements as no triggering event had occurred. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended | |||||||||||||||
Dec. 31, 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 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 Level 1 and Level 2 inputs, as defined above. | ||||||||||||||||
As of | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Amounts in thousands) | Amount | Value | Amount | Value | ||||||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 373,100 | $ | 455,000 | $ | 468,650 | ||||||||
Term Loan | 187,272 | 185,868 | 277,272 | 278,658 | ||||||||||||
Total long-term debt | $ | 642,272 | $ | 558,968 | $ | 732,272 | $ | 747,308 | ||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information | ||||||||||||||||||||
In August 2014, we amended our operating structure by realigning our DynGlobal segment as a pure business development organization focused on achieving our global growth objectives. DynGlobal will continue as a brand and an initiative to pursue international and commercial business. As a result, DynGlobal resources were redeployed into business development efforts for our two remaining operating and reporting segments: DynAviation and DynLogistics, to identify our highest priority opportunities, and work to capture those opportunities for operational execution by the two remaining segments. Our reporting segments continue to be the same as our 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 following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the consolidated financial statements: | |||||||||||||||||||||
For the years ended | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Revenue | |||||||||||||||||||||
DynAviation (1) | $ | 1,204,417 | $ | 1,373,635 | $ | 1,338,514 | |||||||||||||||
DynLogistics (1) | 1,045,200 | 1,920,715 | 2,709,469 | ||||||||||||||||||
Headquarters / Other (2) | 2,692 | (7,166 | ) | (3,708 | ) | ||||||||||||||||
Total revenue | $ | 2,252,309 | $ | 3,287,184 | $ | 4,044,275 | |||||||||||||||
Operating (loss) / income | |||||||||||||||||||||
DynAviation (1) | $ | (61,501 | ) | $ | (194,701 | ) | $ | 105,327 | |||||||||||||
DynLogistics (1) | (67,097 | ) | 36,243 | 48,941 | |||||||||||||||||
Headquarters / Other (3) | (91,348 | ) | (48,322 | ) | (58,385 | ) | |||||||||||||||
Total operating (loss) / income | $ | (219,946 | ) | $ | (206,780 | ) | $ | 95,883 | |||||||||||||
Depreciation and amortization | |||||||||||||||||||||
DynAviation (1) | $ | 1,665 | $ | 1,628 | $ | 685 | |||||||||||||||
DynLogistics (1) | 55 | 543 | 1,043 | ||||||||||||||||||
Headquarters / Other | 47,987 | 48,108 | 50,086 | ||||||||||||||||||
Total depreciation and amortization (4) | $ | 49,707 | $ | 50,279 | $ | 51,814 | |||||||||||||||
-1 | DynGlobal revenue, operating loss, and depreciation and amortization for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is immaterial and included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | ||||||||||||||||||||
-2 | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. | ||||||||||||||||||||
-3 | Headquarters operating loss primarily relates to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. | ||||||||||||||||||||
-4 | Includes amounts in Cost of services of $1.1 million, $1.7 million and $1.6 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
As of | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
DynAviation (1) | $ | 393,246 | $ | 447,646 | $ | 706,646 | |||||||||||||||
DynLogistics (1) | 299,961 | 591,304 | 800,734 | ||||||||||||||||||
Headquarters / Other (2) | 289,280 | 460,971 | 463,336 | ||||||||||||||||||
Total assets | $ | 982,487 | $ | 1,499,921 | $ | 1,970,716 | |||||||||||||||
-1 | DynGlobal assets for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 are included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | ||||||||||||||||||||
-2 | Assets primarily include cash, investments in unconsolidated subsidiaries, net deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. | ||||||||||||||||||||
Geographic Information — Revenue by geography is determined based on the location of services provided. | |||||||||||||||||||||
For the years ended | |||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | December 31, 2012 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
United States | $ | 612,220 | 27 | % | $ | 695,772 | 21 | % | $ | 635,293 | 16 | % | |||||||||
Afghanistan | 1,003,205 | 45 | % | 1,845,234 | 56 | % | 2,436,714 | 60 | % | ||||||||||||
Middle East (1) | 387,021 | 17 | % | 534,861 | 16 | % | 730,372 | 18 | % | ||||||||||||
Other Americas | 84,424 | 4 | % | 87,759 | 3 | % | 106,160 | 3 | % | ||||||||||||
Europe | 53,853 | 2 | % | 52,365 | 2 | % | 51,209 | 1 | % | ||||||||||||
Asia-Pacific | 41,953 | 2 | % | 46,170 | 1 | % | 44,000 | 1 | % | ||||||||||||
Other | 69,633 | 3 | % | 25,023 | 1 | % | 40,527 | 1 | % | ||||||||||||
Total revenue | $ | 2,252,309 | 100 | % | $ | 3,287,184 | 100 | % | $ | 4,044,275 | 100 | % | |||||||||
-1 | The Middle East includes but is not limited to activities in Iraq, Oman, Qatar, United Arab Emirates, Kuwait, Palestine, Sudan, Pakistan, Jordan, Lebanon, Bahrain, Saudi Arabia, Turkey and Egypt. The vast majority of all assets owned by the Company were located in the U.S. as of December 31, 2014. | ||||||||||||||||||||
Revenue from the U.S. government accounted for approximately 94%, 96% and 97% of total revenue for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. As of December 31, 2014 and December 31, 2013 accounts receivable due from the U.S. government represented over 88% and 92% of total accounts receivable, respectively. |
Related_Parties_Joint_Ventures
Related Parties, Joint Ventures and Variable Interest Entities | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Related Parties, Joint Ventures and Variable Interest Entities | Related Parties, Joint Ventures and Variable Interest Entities | |||||||||||
Consulting Fees | ||||||||||||
We have 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 $4.9 million, $4.6 million and $3.3 million of consulting fees in conjunction with the COAC Agreement during years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. | ||||||||||||
We have three executives who are Cerberus Operations and Advisory Company, LLC (“COAC”) employees, who are seconded to us: James E. Geisler, our Interim Chief Executive Officer, Gregory S. Nixon, our Senior Vice President, Chief Administrative Officer and Chief Legal Officer, and George C. Krivo, our Senior Vice President of Business Development. Inclusive of the $4.9 million COAC consulting fees, we recognized $1.3 million of administrative expense in conjunction with these COAC individuals for the year ended December 31, 2014. | ||||||||||||
Joint Ventures and Variable Interest Entities | ||||||||||||
Our most significant joint ventures and VIEs and our associated ownership percentages are listed as follows: | ||||||||||||
Partnership for Temporary Housing LLC ("PaTH") | 30 | % | ||||||||||
Contingency Response Services LLC ("CRS") | 45 | % | ||||||||||
Global Response Services LLC ("GRS") | 51 | % | ||||||||||
GLS | 51 | % | ||||||||||
DynCorp International FZ - LLC ("DIFZ") | 25 | % | ||||||||||
Babcock DynCorp Limited ("Babcock") | 44 | % | ||||||||||
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 December 31, 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. | ||||||||||||
PaTH is a joint venture formed in May 2006 with two other partners for the purpose of procuring government contracts with the Federal Emergency Management Authority. On January 18, 2013, we executed an agreement with the two other partners to reduce our ownership percentage in the PaTH joint venture to 30%. The executed agreement stipulated the ownership percentage be reduced retrospectively, effective September 1, 2012. | ||||||||||||
CRS is a joint venture formed in March 2006 with two other partners for the purpose of procuring government contracts with the U.S. Navy. | ||||||||||||
The GRS joint venture was formed in August 2010 with one partner for the purpose of procuring government contracts with the U.S. Navy. During the year ended December 30, 2011, this joint venture was selected as one of four contractors for an IDIQ multiple award contract. | ||||||||||||
GLS is a joint venture formed in August 2006 between DynCorp International LLC and AECOM's National Security Programs unit for the purpose of procuring government contracts with the U.S. Army. We incur costs on behalf of GLS related to the normal operations of the venture. However, these costs typically support revenue billable to our customer. | ||||||||||||
We own 25% of DIFZ but exercise power over activities that significantly impact DIFZ's economic performance. | ||||||||||||
Babcock is a joint venture formed in January 2005 and currently provides services to the British Ministry of Defence. The economic rights in the Babcock joint venture are not considered operationally integral to the Company. | ||||||||||||
Receivables due from our unconsolidated joint ventures totaled $1.5 million and $2.3 million as of December 31, 2014, 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 $3.9 million, $8.6 million, and $4.2 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Additionally, we earned $12.4 million, $3.7 million, and $4.8 million in equity method income (includes operationally integral and non-integral income) for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. | ||||||||||||
GLS’ revenue was $20.5 million, $21.8 million and $61.1 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. GLS incurred an operating and net loss of $6.0 million and $3.6 million for the years ended December 31, 2014 and December 31, 2013, respectively, as compared to operating and net income of $3.3 million for the year ended December 31, 2012. GLS paid cash dividends of $18.8 million during the year ended December 31, 2014. Based on our 51% ownership in GLS, we recognized $9.6 million in equity method income during the year ended December 31, 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 of 2014, final determination was received from the DCAA's Contracting Officer on the outstanding Form 1s resulting in total withholds of $0.3 million and allowing GLS to submit invoices totaling $19.1 million for recovery of previous invoices. The Form1s are now considered closed. | ||||||||||||
We currently hold one promissory note included in Other assets on our consolidated balance sheet from Palm Trading Investment Corp, which had an aggregate initial value of $9.2 million. The loan balance outstanding was $2.9 million and $3.5 million as of December 31, 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 December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | ||||||||||||
As of | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Assets | $ | 4.7 | $ | 25.9 | ||||||||
Liabilities | 1.5 | 22.2 | ||||||||||
For the years ended | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||
Revenue | $ | 297.7 | $ | 414.4 | $ | 510.1 | ||||||
The following tables present selected financial information for our equity method investees as of December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | ||||||||||||
As of | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Current assets | $ | 65.8 | $ | 86.3 | ||||||||
Total assets | 65.9 | 86.3 | ||||||||||
Current liabilities | 44.4 | 46.4 | ||||||||||
Total liabilities | 44.4 | 44.5 | ||||||||||
For the years ended | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||
Revenue | $ | 233.1 | $ | 203.1 | $ | 234.5 | ||||||
Gross profit | 20.7 | 15.9 | 17.1 | |||||||||
Net income | 14.4 | 10.7 | 13.4 | |||||||||
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) $8.2 million investment in unconsolidated subsidiaries, (ii) $1.5 million in receivables from our unconsolidated joint ventures, (iii) $2.9 million of notes receivable from Palm Trading Investment Corp, and (iv) contingent liabilities that were neither probable nor reasonably estimable as of December 31, 2014. |
Collaborative_Arrangements
Collaborative Arrangements | 12 Months Ended |
Dec. 31, 2014 | |
Collaborative Arrangements [Abstract] | |
Collaborative Arrangements | Collaborative Arrangements |
We participate in a collaborative arrangement with CH2M Hill on the Logistics Civil Augmentation Program IV ("LOGCAP IV") program. The 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 prime contractor. 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 $561.9 million, $1,210.4 million, and $1,771.9 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Cost of services on LOGCAP IV was $526.9 million, $1,120.5 million, and $1,652.2 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. Our share of the total LOGCAP IV profits was $2.1 million, $37.0 million, and $64.1 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. |
Consolidating_Financial_Statem
Consolidating Financial Statements of Subsidiary Guarantors | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 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 Management and Consulting Services LLC, Worldwide Recruiting and Staffing Services LLC, Heliworks LLC, Phoenix Consulting Group, LLC and Casals & Associates, Inc. ("Subsidiary Guarantors"). Each of the Subsidiary Issuer 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 three months ended March 29, 2013, the intercompany transfers of the Subsidiary Guarantors in the amount of $38.9 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 calendar year 2012 and calendar year 2013 to be presented within investing activities. This correction has no impact on the consolidated statement of cash flows for calendar year 2014. | ||||||||||||||||||||||||
The following condensed consolidating financial statements present (i) condensed consolidating balance sheets as of December 31, 2014 and December 31, 2013 (ii) the condensed consolidating statement of operations and comprehensive income for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, (iii) condensed consolidating statements of cash flows for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 and (iv) 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 | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,268,349 | $ | 315,551 | $ | (331,591 | ) | $ | 2,252,309 | |||||||||||
Cost of services | — | — | (2,092,339 | ) | (312,110 | ) | 331,584 | (2,072,865 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (146,623 | ) | (265 | ) | 7 | (146,881 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (47,979 | ) | (603 | ) | — | (48,582 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 489 | 9,588 | — | 10,077 | ||||||||||||||||||
Impairment of goodwill, intangibles and long lived assets | — | — | (214,004 | ) | — | — | (214,004 | ) | ||||||||||||||||
Operating income | — | — | (232,107 | ) | 12,161 | — | (219,946 | ) | ||||||||||||||||
Interest expense | — | (68,221 | ) | (2,562 | ) | — | — | (70,783 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (1,362 | ) | — | — | — | (1,362 | ) | ||||||||||||||||
Interest income | — | — | 198 | 23 | — | 221 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (269,780 | ) | (224,551 | ) | 10,174 | — | 484,157 | — | ||||||||||||||||
Other income, net | — | — | 3,736 | (56 | ) | — | 3,680 | |||||||||||||||||
(Loss) income before income taxes | (269,780 | ) | (294,134 | ) | (220,561 | ) | 12,128 | 484,157 | (288,190 | ) | ||||||||||||||
Benefit (provision) for income taxes | — | 24,354 | (3,990 | ) | 206 | — | 20,570 | |||||||||||||||||
Net (loss) income | (269,780 | ) | (269,780 | ) | (224,551 | ) | 12,334 | 484,157 | (267,620 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (2,160 | ) | — | (2,160 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (269,780 | ) | $ | (269,780 | ) | $ | (224,551 | ) | $ | 10,174 | $ | 484,157 | $ | (269,780 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 3,298,767 | $ | 445,144 | $ | (456,727 | ) | $ | 3,287,184 | |||||||||||
Cost of services | — | — | (3,006,723 | ) | (437,375 | ) | 456,845 | (2,987,253 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (148,962 | ) | (845 | ) | (118 | ) | (149,925 | ) | ||||||||||||||
Depreciation and amortization expense | — | — | (48,028 | ) | (600 | ) | — | (48,628 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 1,510 | 3,060 | — | 4,570 | ||||||||||||||||||
Impairment of goodwill, intangibles and long lived assets | — | — | (312,728 | ) | — | — | (312,728 | ) | ||||||||||||||||
Operating (loss) income | — | — | (216,164 | ) | 9,384 | — | (206,780 | ) | ||||||||||||||||
Interest expense | — | (75,001 | ) | (3,825 | ) | — | — | (78,826 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (703 | ) | — | — | — | (703 | ) | ||||||||||||||||
Interest income | — | — | 130 | 27 | — | 157 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (253,736 | ) | (204,678 | ) | 5,097 | — | 453,317 | — | ||||||||||||||||
Other (loss) income, net | — | — | (998 | ) | 188 | — | (810 | ) | ||||||||||||||||
(Loss) income before income taxes | (253,736 | ) | (280,382 | ) | (215,760 | ) | 9,599 | 453,317 | (286,962 | ) | ||||||||||||||
Benefit (provision) for income taxes | — | 26,646 | 11,082 | (267 | ) | — | 37,461 | |||||||||||||||||
Net (loss) income | (253,736 | ) | (253,736 | ) | (204,678 | ) | 9,332 | 453,317 | (249,501 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (4,235 | ) | — | (4,235 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (253,736 | ) | $ | (253,736 | ) | $ | (204,678 | ) | $ | 5,097 | $ | 453,317 | $ | (253,736 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 4,077,449 | $ | 538,118 | $ | (571,292 | ) | $ | 4,044,275 | |||||||||||
Cost of services | — | — | (3,743,400 | ) | (514,653 | ) | 559,121 | (3,698,932 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (149,236 | ) | (12,297 | ) | 12,171 | (149,362 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (49,658 | ) | (602 | ) | — | (50,260 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 825 | — | — | 825 | ||||||||||||||||||
Impairment of goodwill | — | — | (44,594 | ) | — | — | (44,594 | ) | ||||||||||||||||
Impairment of intangibles | — | — | (6,069 | ) | — | — | (6,069 | ) | ||||||||||||||||
Operating income | — | — | 85,317 | 10,566 | — | 95,883 | ||||||||||||||||||
Interest expense | — | (80,078 | ) | (6,194 | ) | — | — | (86,272 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (2,094 | ) | — | — | — | (2,094 | ) | ||||||||||||||||
Interest income | — | — | 108 | 9 | — | 117 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (8,937 | ) | (16,604 | ) | 4,050 | — | 21,491 | — | ||||||||||||||||
Other income (loss), net | — | — | 4,814 | (142 | ) | — | 4,672 | |||||||||||||||||
(Loss) income before income taxes | (8,937 | ) | (98,776 | ) | 88,095 | 10,433 | 21,491 | 12,306 | ||||||||||||||||
Benefit (provision) for income taxes | — | 89,839 | (104,699 | ) | (738 | ) | — | (15,598 | ) | |||||||||||||||
Net (loss) income | (8,937 | ) | (8,937 | ) | (16,604 | ) | 9,695 | 21,491 | (3,292 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (5,645 | ) | — | (5,645 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (8,937 | ) | $ | (8,937 | ) | $ | (16,604 | ) | $ | 4,050 | $ | 21,491 | $ | (8,937 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (269,780 | ) | $ | (269,780 | ) | $ | (224,551 | ) | $ | 12,334 | $ | 484,157 | $ | (267,620 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (131 | ) | (131 | ) | — | (131 | ) | 262 | (131 | ) | ||||||||||||||
Other comprehensive income, before tax | (131 | ) | (131 | ) | — | (131 | ) | 262 | (131 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 47 | 47 | — | 47 | (94 | ) | 47 | |||||||||||||||||
Other comprehensive loss | (84 | ) | (84 | ) | — | (84 | ) | 168 | (84 | ) | ||||||||||||||
Comprehensive (loss) income | (269,864 | ) | (269,864 | ) | (224,551 | ) | 12,250 | 484,325 | (267,704 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (2,160 | ) | — | (2,160 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (269,864 | ) | $ | (269,864 | ) | $ | (224,551 | ) | $ | 10,090 | $ | 484,325 | $ | (269,864 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (253,736 | ) | $ | (253,736 | ) | $ | (204,678 | ) | $ | 9,332 | $ | 453,317 | $ | (249,501 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (437 | ) | (437 | ) | (242 | ) | (195 | ) | 874 | (437 | ) | |||||||||||||
Other comprehensive income, before tax | (437 | ) | (437 | ) | (242 | ) | (195 | ) | 874 | (437 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | 157 | 157 | 86 | 70 | (313 | ) | 157 | |||||||||||||||||
Other comprehensive income | (280 | ) | (280 | ) | (156 | ) | (125 | ) | 561 | (280 | ) | |||||||||||||
Comprehensive (loss) income | (254,016 | ) | (254,016 | ) | (204,834 | ) | 9,207 | 453,878 | (249,781 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (4,235 | ) | — | (4,235 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (254,016 | ) | $ | (254,016 | ) | $ | (204,834 | ) | $ | 4,972 | $ | 453,878 | $ | (254,016 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (8,937 | ) | $ | (8,937 | ) | $ | (16,604 | ) | $ | 9,695 | $ | 21,491 | $ | (3,292 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | 225 | 225 | 123 | 102 | (450 | ) | 225 | |||||||||||||||||
Other comprehensive income, before tax | 225 | 225 | 123 | 102 | (450 | ) | 225 | |||||||||||||||||
Income tax expense related to items of other comprehensive income | (83 | ) | (83 | ) | (45 | ) | (38 | ) | 166 | (83 | ) | |||||||||||||
Other comprehensive income | 142 | 142 | 78 | 64 | (284 | ) | 142 | |||||||||||||||||
Comprehensive (loss) income | (8,795 | ) | (8,795 | ) | (16,526 | ) | 9,759 | 21,207 | (3,150 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (5,645 | ) | — | (5,645 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (8,795 | ) | $ | (8,795 | ) | $ | (16,526 | ) | $ | 4,114 | $ | 21,207 | $ | (8,795 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 87,300 | $ | 6,704 | $ | — | $ | 94,004 | ||||||||||||
Restricted cash | — | — | 707 | — | — | 707 | ||||||||||||||||||
Accounts receivable, net | — | — | 452,938 | 719 | (5,161 | ) | 448,496 | |||||||||||||||||
Intercompany receivables | — | — | 234,109 | 28,231 | (262,340 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 73,456 | 1,217 | (473 | ) | 74,200 | |||||||||||||||||
Deferred taxes | — | — | — | — | — | — | ||||||||||||||||||
Total current assets | — | — | 848,510 | 36,871 | (267,974 | ) | 617,407 | |||||||||||||||||
Long-term restricted cash | — | — | 952 | — | — | 952 | ||||||||||||||||||
Property and equipment, net | — | — | 23,615 | 171 | — | 23,786 | ||||||||||||||||||
Goodwill | — | — | 96,489 | 32,399 | — | 128,888 | ||||||||||||||||||
Tradenames, net | — | — | 28,762 | — | — | 28,762 | ||||||||||||||||||
Other intangibles, net | — | — | 148,825 | 655 | — | 149,480 | ||||||||||||||||||
Investment in subsidiaries | — | 805,417 | 55,087 | — | (860,504 | ) | — | |||||||||||||||||
Long-term deferred taxes | — | — | 5,696 | — | — | 5,696 | ||||||||||||||||||
Other assets, net | 558 | 11,775 | 15,183 | — | — | 27,516 | ||||||||||||||||||
Total assets | $ | 558 | $ | 817,192 | $ | 1,223,119 | $ | 70,096 | $ | (1,128,478 | ) | $ | 982,487 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 146,016 | $ | 1,253 | $ | (723 | ) | $ | 146,546 | |||||||||||
Accrued payroll and employee costs | — | — | 84,725 | 13,296 | (4,314 | ) | 93,707 | |||||||||||||||||
Intercompany payables | 45,643 | 188,466 | 28,231 | — | (262,340 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 31,453 | 24 | — | 31,477 | ||||||||||||||||||
Other accrued liabilities | 37,681 | 24,135 | 105,404 | 436 | (37,630 | ) | 130,026 | |||||||||||||||||
Income taxes payable | — | — | 5,072 | — | (648 | ) | 4,424 | |||||||||||||||||
Total current liabilities | 83,324 | 212,601 | 400,901 | 15,009 | (305,655 | ) | 406,180 | |||||||||||||||||
Long-term debt, less current portion | — | 642,272 | — | — | — | 642,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | — | — | — | — | ||||||||||||||||||
Other long-term liabilities | — | — | 11,312 | — | — | 11,312 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,489 | — | — | 5,489 | ||||||||||||||||||
(Deficit) equity | (82,766 | ) | (37,681 | ) | 805,417 | 55,087 | (822,823 | ) | (82,766 | ) | ||||||||||||||
Total liabilities and equity | $ | 558 | $ | 817,192 | $ | 1,223,119 | $ | 70,096 | $ | (1,128,478 | ) | $ | 982,487 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
(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 | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 333 | $ | 29,545 | $ | (6,454 | ) | $ | 3,650 | $ | (1,697 | ) | 25,377 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (8,712 | ) | — | — | (8,712 | ) | ||||||||||||||||
Proceeds from sale of property and equipment | — | — | 44 | — | — | 44 | ||||||||||||||||||
Purchase of software | — | — | (1,631 | ) | — | — | (1,631 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 5,625 | — | — | 5,625 | ||||||||||||||||||
Contributions to equity method investees | — | — | — | — | — | — | ||||||||||||||||||
Net Transfer (to) from affiliates | — | — | (60,122 | ) | (20,372 | ) | 80,494 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (64,796 | ) | (20,372 | ) | 80,494 | (4,674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 118,000 | — | — | — | 118,000 | ||||||||||||||||||
Payments on long-term debt | — | (208,000 | ) | — | — | — | (208,000 | ) | ||||||||||||||||
Payments of deferred financing cost | — | — | (1,740 | ) | — | — | (1,740 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 20,214 | — | — | 20,214 | ||||||||||||||||||
Payments related to financed insurance | — | — | (24,321 | ) | — | — | (24,321 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (3,394 | ) | 1,697 | (1,697 | ) | ||||||||||||||||
Transfers (to) from affiliates | (333 | ) | 60,455 | 20,372 | — | (80,494 | ) | — | ||||||||||||||||
Net cash (used in) provided by financing activities | (333 | ) | (29,545 | ) | 14,525 | (3,394 | ) | (78,797 | ) | (97,544 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | (56,725 | ) | (20,116 | ) | — | (76,841 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 144,025 | 26,820 | — | 170,845 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 87,300 | $ | 6,704 | $ | — | $ | 94,004 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 461 | $ | 30,040 | $ | 101,590 | $ | 9,793 | $ | (4,382 | ) | $ | 137,502 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (7,604 | ) | (24 | ) | — | (7,628 | ) | |||||||||||||||
Proceeds from sale of property and equipment | — | — | 182 | — | — | 182 | ||||||||||||||||||
Purchase of software | — | — | (2,718 | ) | — | — | (2,718 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 2,223 | — | — | 2,223 | ||||||||||||||||||
Contributions to equity method investees | — | — | (30 | ) | — | — | (30 | ) | ||||||||||||||||
Net Transfer (to) from affiliates | — | — | (9,939 | ) | (7,857 | ) | 17,796 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (17,886 | ) | (7,881 | ) | 17,796 | (7,971 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 745,900 | — | — | — | 745,900 | ||||||||||||||||||
Payments on long-term debt | — | (796,537 | ) | — | — | — | (796,537 | ) | ||||||||||||||||
Payments of deferred financing cost | — | — | (2,139 | ) | — | — | (2,139 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 9,431 | — | — | 9,431 | ||||||||||||||||||
Payments related to financed insurance | — | — | (29,734 | ) | — | — | (29,734 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (8,764 | ) | 4,382 | (4,382 | ) | ||||||||||||||||
Transfers (to) from affiliates | (461 | ) | 20,597 | 7,856 | (10,196 | ) | (17,796 | ) | — | |||||||||||||||
Net cash (used in) provided by financing activities | (461 | ) | (30,040 | ) | (14,586 | ) | (18,960 | ) | (13,414 | ) | (77,461 | ) | ||||||||||||
Net increase in cash and cash equivalents | — | — | 69,118 | (17,048 | ) | — | 52,070 | |||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 74,907 | 43,868 | — | 118,775 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 144,025 | $ | 26,820 | $ | — | $ | 170,845 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 664 | $ | 103,223 | $ | 29,660 | $ | 13,309 | $ | (2,666 | ) | $ | 144,190 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (5,467 | ) | (61 | ) | — | (5,528 | ) | |||||||||||||||
Proceeds from sale of property and equipment | — | — | 25 | — | — | 25 | ||||||||||||||||||
Cash paid for acquisition, net of cash acquired | — | — | (11,746 | ) | — | — | (11,746 | ) | ||||||||||||||||
Purchase of software | — | — | (2,590 | ) | — | — | (2,590 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 9,154 | — | — | 9,154 | ||||||||||||||||||
Contributions to equity method investees | — | — | (1,478 | ) | — | — | (1,478 | ) | ||||||||||||||||
Net Transfer from (to) affiliates | — | — | 12,159 | 9,196 | (21,355 | ) | — | |||||||||||||||||
Net cash used in investing activities | — | — | 57 | 9,135 | (21,355 | ) | (12,163 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 325,000 | — | — | — | 325,000 | ||||||||||||||||||
Payments on long-term debt | — | (415,000 | ) | — | — | — | (415,000 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 62,580 | — | — | 62,580 | ||||||||||||||||||
Payments related to financed insurance | — | — | (53,918 | ) | — | — | (53,918 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (4,785 | ) | 2,666 | (2,119 | ) | ||||||||||||||||
Transfers (to) from affiliates | (664 | ) | (13,223 | ) | (9,196 | ) | 1,728 | 21,355 | — | |||||||||||||||
Net cash (used in) provided by financing activities | (664 | ) | (103,223 | ) | (534 | ) | (3,057 | ) | 24,021 | (83,457 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | 29,183 | 19,387 | — | 48,570 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 45,724 | 24,481 | — | 70,205 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 74,907 | $ | 43,868 | $ | — | $ | 118,775 | ||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
We evaluated potential subsequent events occurring after the period end date and determined no subsequent events merited disclosure for the year ended December 31, 2014, except as disclosed within the Notes to the consolidated financial statements. |
Condensed_Financial_Informatio
Condensed Financial Information of Registrant | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information of Registrant | Condensed Financial Information of Registrant | |||||||||||
DELTA TUCKER HOLDINGS, INC. | ||||||||||||
CONDENSED BALANCE SHEETS | ||||||||||||
As of | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets | $ | 558 | $ | 891 | ||||||||
Investment in subsidiaries | — | 228,870 | ||||||||||
Total assets | $ | 558 | $ | 229,761 | ||||||||
Liabilities | $ | 83,324 | $ | 45,976 | ||||||||
Stockholders (Deficit) Equity | (82,766 | ) | 183,785 | |||||||||
Total liabilities and equity | $ | 558 | $ | 229,761 | ||||||||
See notes to this schedule | ||||||||||||
DELTA TUCKER HOLDINGS, INC. | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in thousands) | ||||||||||||
Equity in income of subsidiaries, net of tax | $ | (269,780 | ) | $ | (253,736 | ) | $ | (8,937 | ) | |||
Income before income taxes | (269,780 | ) | (253,736 | ) | (8,937 | ) | ||||||
Income tax benefit | — | — | — | |||||||||
Net loss | $ | (269,780 | ) | $ | (253,736 | ) | $ | (8,937 | ) | |||
See notes to this schedule | ||||||||||||
DELTA TUCKER HOLDINGS, INC. | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in thousands) | ||||||||||||
Net cash from operating activities | $ | 333 | $ | 461 | $ | 664 | ||||||
Net cash from investing activities | — | — | — | |||||||||
Net cash from financing activities | (333 | ) | (461 | ) | (664 | ) | ||||||
Net change in cash and cash equivalent | — | — | — | |||||||||
Cash and cash equivalents, beginning of period | — | — | — | |||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | — | ||||||
See notes to this schedule | ||||||||||||
Schedule I - Condensed Financial Information | ||||||||||||
Delta Tucker Holdings, Inc. | ||||||||||||
Notes to Schedule | ||||||||||||
Note 1 — Basis of Presentation | ||||||||||||
Pursuant to rules and regulations of the SEC, the condensed financial statements of Delta Tucker Holdings Inc. do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these financial statements should be read in conjunction with our consolidated financial statements and related notes. | ||||||||||||
Accounting for subsidiaries — We have accounted for the income of our subsidiaries under the equity method in the condensed financial statements. | ||||||||||||
Note 2 — Dividends Received from Consolidated Subsidiaries | ||||||||||||
We have received no dividends from our consolidated subsidiaries including DynCorp International Inc. which has covenants related to its long-term debt, including restrictions on dividend payments as of December 31, 2014. As the parent guarantor to DynCorp International Inc., we are subject to certain restrictions set forth under the Senior Credit Facility, including restrictions on the payment of dividends. As we are the holding company of DynCorp International Inc. and have no independent operations apart from DynCorp International Inc. and no assets other than our investment in DynCorp International Inc. and associated deferred taxes, our retained earnings and net income are fully encumbered by these restrictions. | ||||||||||||
Note 3 — Equity | ||||||||||||
Our equity was initially comprised of a capital contribution of $550.9 million. Between our inception and December 31, 2014, our equity has been impacted by our earnings, changes in other comprehensive income and additional paid in capital. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts | |||||||||||||||
Delta Tucker Holdings, Inc. | ||||||||||||||||
For the years ended December 31, 2014, December 31, 2013 and December 31, 2012 | ||||||||||||||||
(Amount in thousands) | Beginning of Period | Charged to Costs and Expense | Deductions from Reserve (1) | End of Period | ||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
December 31, 2011 — December 31, 2012 | $ | 1,947 | $ | 722 | $ | (1,188 | ) | $ | 1,481 | |||||||
December 31, 2012 — December 31, 2013 | $ | 1,481 | $ | 1,531 | $ | (1,391 | ) | $ | 1,621 | |||||||
December 31, 2013 — December 31, 2014 | $ | 1,621 | $ | 3,269 | $ | (154 | ) | $ | 4,736 | |||||||
-1 | Deductions from reserve represents accounts written off, net of recoveries. |
Significant_Accounting_Policie1
Significant Accounting Policies and Accounting Developments (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Fiscal Year | Fiscal Year | |||||||||||
The Company's quarterly periods end on the last Friday of the calendar quarter, except for the fourth quarter of the fiscal year, which ends on December 31. These financial statements reflect our financial results for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||
The 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. | ||||||||||||
The Company classifies its 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. | ||||||||||||
Economic rights in active joint ventures that are operationally integral are indicated by the ownership percentages in the table listed below. | ||||||||||||
Partnership for Temporary Housing LLC ("PaTH") | 30 | % | ||||||||||
Contingency Response Services LLC ("CRS") | 45 | % | ||||||||||
Global Response Services LLC ("GRS") | 51 | % | ||||||||||
Global Linguist Solutions LLC ("GLS") | 51 | % | ||||||||||
Economic rights in an active joint venture that the Company does not consider operationally integral are indicated by the ownership percentage in the table listed below. | ||||||||||||
Babcock DynCorp Limited ("Babcock") | 44 | % | ||||||||||
Noncontrolling interests | Noncontrolling Interests | |||||||||||
We record the impact of our partners' interests in less than wholly owned consolidated joint ventures as noncontrolling interests. Currently, DynCorp International FZ-LLC ("DIFZ") is our only consolidated joint venture for which we do not own 100% of the entity. In March 2012, we entered into a non-cash dividend distribution transaction with Cerberus Series Four Holdings, LLC and Cerberus Partners II, L.P., in which we distributed half of our 50% ownership in DIFZ. We now 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 consolidated statements of operations as an increase or reduction in arriving at "Net (loss) income attributable to Delta Tucker Holdings, Inc." Noncontrolling interests is located in the equity section on the consolidated balance sheets. See Note 12 for further information regarding DIFZ. | ||||||||||||
Revenue Recognition and Cost Estimation on Long-Term Contracts | Revenue Recognition and Cost Estimation on Long-Term Contracts | |||||||||||
General - We are predominantly a services provider and only include products or systems when necessary for the execution of the service arrangement. As such, systems, equipment or materials are not generally separable from the services we provide. Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the customer, the sales price is fixed or determinable (for non-U.S. government contracts) or costs are identifiable, determinable, reasonable and allowable (for our U.S. government contracts), and collectability is reasonably assured (for non-U.S. government contracts) or a reasonable contractual basis for recovery exists (for U.S. government contracts). Our contracts typically fall into the following two categories with the first representing substantially all of our revenue: (i) federal government contracts and (ii) other contracts. We apply the appropriate guidance consistently to all contracts. | ||||||||||||
Major factors we consider in determining total estimated revenue and cost include the base contract price, contract options, change orders (modifications of the original contract), back charges and claims, and contract provisions for penalties, award fees and performance incentives. All of these factors and other special contract provisions are evaluated throughout the life of our contracts when estimating total contract revenue under the percentage-of-completion or proportional methods of accounting. We inherently have risks related to our estimates with long-term contracts. Actual amounts could materially differ from these estimates. We believe the following are the risks associated with our estimation process: (i) assumptions are uncertain and inherently judgmental at the time of the estimate; (ii) use of reasonably different assumptions could have changed our estimates, particularly with respect to estimates of contract revenues, costs and recoverability of assets, and (iii) changes in estimates could have material effects on our financial condition or results of operations. The impact of any one of these factors could contribute to a material cumulative adjustment. | ||||||||||||
Some of our contracts with the U.S. government contain award or incentive fees. We recognize award or incentive fee revenue when we can make reasonably determinable estimates of award or incentive fees to consider them in determining total estimated contract revenue. We do not consider the mere existence of potential award or incentive fees as presumptive evidence that award or incentive fees are to be included in determining total estimated revenue. In some cases, we may not be able to accurately predict whether performance targets will be met, and as such, we exclude the award or incentive fees from the determination of total revenue in such instances. Our accrual of award or incentive fees may require adjustments from time to time. | ||||||||||||
We expense pre-contract costs as incurred for an anticipated contract until the contract is awarded. Throughout the life of the contract, indirect costs, including general and administrative costs, are expensed as incurred. Management regularly reviews project profitability and underlying estimates, including total cost to complete a project. For each project, estimates for total project costs are based on such factors as a project's contractual requirements and management's assessment of current and future pricing, economic conditions, political conditions and site conditions. Estimates can be impacted by such factors as additional requirements from our customers, a change in labor markets impacting the availability or cost of a skilled workforce, regulatory changes both domestically and internationally, political unrest or security issues at project locations. Revisions to estimates are reflected in our consolidated results of operations as changes in accounting estimates in the periods in which the facts that give rise to the revisions become known by management. We believe long-term contracts, contracts in a loss position and contracts with material award fees drive the significant changes in estimates in our contracts. | ||||||||||||
The following table presents the aggregate gross favorable and unfavorable adjustments to income before taxes resulting from changes in contract estimates, including the exercise of additional option years, for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in millions) | ||||||||||||
Gross favorable adjustments | $ | 7.4 | $ | 45.8 | $ | 29.3 | ||||||
Gross unfavorable adjustments | (53.9 | ) | (20.7 | ) | (9.7 | ) | ||||||
Net adjustments | $ | (46.5 | ) | $ | 25.1 | $ | 19.6 | |||||
Federal Government Contracts — For all non-construction and non-software U.S. federal government contracts or contract elements, we apply the guidance in ASC 912 - Contractors - Federal Government. We apply the combination and segmentation guidance in ASC 605-35 Revenue - Construction-Type and Production-Type Contracts under the guidance of ASC 912 in analyzing the deliverables contained in the applicable contract to determine appropriate profit centers. Revenue is recognized by profit center using the percentage-of-completion method or completed-contract method. The completed-contract method is used when reliable estimates cannot be supported for percentage-of-completion method recognition or for short duration projects when the results of operations would not vary materially from those resulting from use of the percentage-of-completion method. Until complete, project costs may be maintained in work-in-progress, a component of inventory. | ||||||||||||
Revenue is recognized based on progress towards completion over the contract period, measured by either output or input methods appropriate to the services or products provided. For example, "output measures" can include units delivered or produced, such as aircraft for which modification has been completed. "Input measures" can include a cost-to-cost method, such as for procurement-related services. | ||||||||||||
Other Contracts or Contract Elements — Our contracts with non-federal government customers are predominantly service arrangements. Multiple-element arrangements involve multiple obligations in various combinations to perform services, deliver equipment or materials, grant licenses or other rights, or take certain actions. We evaluate all deliverables in an arrangement to determine whether they represent separate units of accounting. Arrangement consideration is allocated among the separate units of accounting based on the guidance applicable for the multiple-element arrangements. Arrangements that are entered into or materially modified after January 1, 2011, are allocated to those identified as multiple-element arrangement based on their relative selling price which is established through vendor specific objective evidence (“VSOE”), third party evidence, or management’s best estimate. Due to the customized nature of our arrangements, VSOE and third party evidence is generally not available. Therefore, our post-January 1, 2011 arrangements allocate the relative selling price to multiple-element arrangements utilizing management’s best estimate of selling price. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||||
For purposes of reporting cash and cash equivalents, we consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||||
Restricted Cash | Restricted Cash | |||||||||||
Restricted cash represents cash restricted by certain contracts and available for use to pay specified costs and vendors on work performed on specific contracts. On some contracts, advance payments are not available for use and cash is to be disbursed for specified costs for work performed on the specific contract. Changes in restricted cash related to our contracts are included as operating activities within our consolidated statement of cash flows. | ||||||||||||
The Company classifies the long-term portion of restricted cash related to a legal matter in long term assets in our consolidated balance sheets as these amounts are restricted for periods that exceed one year from the balance sheet date. | ||||||||||||
Use of Estimates | Use of Estimates | |||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management evaluates these estimates and assumptions on an ongoing basis, including but not limited to, those relating to allowances for doubtful accounts, fair value and impairment of intangible assets and goodwill, income taxes, stock based compensation, profitability on contracts, anticipated contract modifications, contingencies and litigation. Actual results could differ from those estimates. | ||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts | |||||||||||
We establish an allowance for doubtful accounts against specific billed receivables based upon the latest information available to determine whether invoices are ultimately collectible. Such information includes the historical trends of write-offs and recovery of previously written-off accounts, the financial strength of the respective customer and projected economic and market conditions. The evaluation of these factors involves subjective judgments and changes in these factors may cause an increase to our estimated allowance for doubtful accounts, which could impact our consolidated financial statements by incurring bad debt expense. Given that we primarily serve the U.S. government, we believe the risk is low that changes in our allowance for doubtful accounts would result in a material impact on our financial results. | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
The cost of property and equipment, less applicable residual values, is depreciated using the straight-line method. Depreciation commences when the specific asset is complete, installed and ready for normal use. Depreciation related to equipment purchased for specific contracts is typically included within Cost of services, as this depreciation is directly attributable to project costs. We evaluate property and equipment for impairment quarterly by examining factors such as existence, functionality, obsolescence and physical condition. In the event we experience impairment, we revise the useful life estimate and record the impairment to arrive at a revised net book value. Our standard depreciation and amortization policies are as follows: | ||||||||||||
Computer and related equipment | 3 to 5 years | |||||||||||
Equipment and Other | 2 to 10 years | |||||||||||
Leasehold improvements | Shorter of lease term or useful life | |||||||||||
Customer Related Intangible Assets | Customer Related Intangible Assets | |||||||||||
The initial values assigned to customer-related intangibles were the result of fair value calculations associated with business combinations. The values were determined based on estimates and judgments regarding expectations for the estimated future after-tax cash flows from those assets over their lives, including the probability of expected future contract renewals and sales, less a cost-of-capital charge, all of which was discounted to present value. We evaluate the carrying value of our customer-related intangibles within the asset group representing the lowest level of identifiable cash flows whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The customer related intangible carrying value is considered impaired when the anticipated undiscounted cash flows from such asset group is less than its carrying value. In that case, a loss is recognized based on the amount by which the carrying value exceeds the fair value. | ||||||||||||
Indefinite-Lived Assets and Goodwill | Indefinite-Lived Assets and Goodwill | |||||||||||
Indefinite-lived assets, including goodwill and indefinite-lived tradename, are not amortized but are subject to an annual impairment test. We evaluate goodwill and indefinite lived tradename for impairment annually in the first month of the fourth quarter of each fiscal year and when an event occurs or circumstances change to suggest that the carrying value may not be recoverable. The first step of the goodwill impairment test compares the fair value of each of our reporting units with its carrying amount, including indefinite-lived assets. If the fair value of a reporting unit exceeds its carrying amount, the indefinite-lived assets of the reporting unit are not considered impaired, and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
We file income, franchise, gross receipts and similar tax returns in many jurisdictions. Our tax returns are subject to audit by the Internal Revenue Service, within most states in the U.S., and by various government agencies representing several jurisdictions outside the U.S. | ||||||||||||
We use the asset and liability approach for financial accounting and reporting for income taxes in accordance with the FASB. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is made up of current expense which includes both permanent and temporary differences and deferred expense which only includes temporary differences. Income tax expense is the amount of tax payable for the period plus or minus the change in deferred tax assets and liabilities during the period. | ||||||||||||
We perform a comprehensive review of our portfolio of uncertain tax positions regularly. The accounting for uncertainty in income taxes requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. A liability is recorded when a benefit is recognized for a tax position and it is not more-likely-than-not that the position will be sustained on its technical merits or where the position is more-likely-than-not that it will be sustained on its technical merits, but the largest amount to be realized upon settlement is less than 100% of the position. | ||||||||||||
To the extent that our assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. Tax-related interest is included within interest expense and tax-related penalties are included within income tax expense in our consolidated statements of operations. See Note 4 regarding income taxes. | ||||||||||||
Equity-Based Compensation Expense | Share Based Compensation | |||||||||||
We recognize compensation expense in the financial statements for all share based arrangements. Share based compensation cost is measured at the date of grant, based on the fair value of the award, and is recognized over the employee's requisite service period. See Note 9 for further discussion on share based compensation. | ||||||||||||
Currency Translation | Currency Translation | |||||||||||
The assets and liabilities of our subsidiaries outside the U.S. that have a currency other than the U.S. dollar are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Results of operations and cash flow items for these subsidiaries are translated at the average exchange rates prevailing during the period. Gains and losses resulting from currency transactions and the re-measurement of the financial statements of U.S. functional currency foreign subsidiaries are recognized currently in Cost of services and Other income, net, respectively and those resulting from translation of financial statements are included in accumulated other comprehensive income. Our foreign currency transactions were not material for the calendar years ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||||||||||||
Operating Segments | Operating Segments | |||||||||||
Our business is aligned into two operating and reporting segments, DynAviation and DynLogistics. Our chief operating decision maker assesses performance and allocates resources based upon the separate financial information around the Company’s operating segments, which is comprised of numerous contracts. | ||||||||||||
Accounting Developments | Accounting Developments | |||||||||||
Pronouncements Issued | ||||||||||||
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 our consolidated financial position, results of operations and cash flows. | ||||||||||||
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern. ASU 2014-15 provides guidance in generally accepted accounting principles about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016 and for annual and interim periods thereafter (fiscal year 2016 for the Company). Early adoption is permitted. We do not expect the new guidance to have an impact on our consolidated financial statements. | ||||||||||||
Other accounting standards updates effective after December 31, 2014 are not expected to have a material effect on our consolidated financial position or annual results of operations and cash flows. |
Significant_Accounting_Policie2
Significant Accounting Policies and Accounting Developments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Variable Interest Entity ownership percentages | Economic rights in active joint ventures that are operationally integral are indicated by the ownership percentages in the table listed below. | |||||||||||
Partnership for Temporary Housing LLC ("PaTH") | 30 | % | ||||||||||
Contingency Response Services LLC ("CRS") | 45 | % | ||||||||||
Global Response Services LLC ("GRS") | 51 | % | ||||||||||
Global Linguist Solutions LLC ("GLS") | 51 | % | ||||||||||
Equity Method Investment ownership percentages | Economic rights in an active joint venture that the Company does not consider operationally integral are indicated by the ownership percentage in the table listed below. | |||||||||||
Babcock DynCorp Limited ("Babcock") | 44 | % | ||||||||||
Aggregate gross favorable and unfavorable adjustments to income (loss) before income taxes | The following table presents the aggregate gross favorable and unfavorable adjustments to income before taxes resulting from changes in contract estimates, including the exercise of additional option years, for the years ended December 31, 2014, December 31, 2013 and December 31, 2012. | |||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in millions) | ||||||||||||
Gross favorable adjustments | $ | 7.4 | $ | 45.8 | $ | 29.3 | ||||||
Gross unfavorable adjustments | (53.9 | ) | (20.7 | ) | (9.7 | ) | ||||||
Net adjustments | $ | (46.5 | ) | $ | 25.1 | $ | 19.6 | |||||
Summary of standard depreciation and amortization policies | Our standard depreciation and amortization policies are as follows: | |||||||||||
Computer and related equipment | 3 to 5 years | |||||||||||
Equipment and Other | 2 to 10 years | |||||||||||
Leasehold improvements | Shorter of lease term or useful life |
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Prepaid expenses and other current assets | Prepaid expenses and other current assets were: | |||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Prepaid expenses | $ | 30,821 | $ | 29,611 | ||||
Income tax refunds receivable | 655 | 7,334 | ||||||
Inventories | 25,198 | 27,008 | ||||||
Aircraft parts inventory held on consignment | 2,278 | 2,404 | ||||||
Work-in-process inventory, net | 5,772 | 28,444 | ||||||
Joint venture receivables | 1,497 | 2,251 | ||||||
Assets held for sale | — | 3,017 | ||||||
Other current assets | 7,979 | 24,441 | ||||||
Total prepaid expenses and other current assets | $ | 74,200 | $ | 124,510 | ||||
Property and equipment, net | Property and equipment, net were: | |||||||
As of | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
(Amounts in thousands) | ||||||||
Helicopters | $ | 7,108 | $ | 4,007 | ||||
Computers and other equipment | 11,061 | 14,258 | ||||||
Leasehold improvements | 19,055 | 17,585 | ||||||
Office furniture and fixtures | 4,203 | 3,006 | ||||||
Gross property and equipment | 41,427 | 38,856 | ||||||
Less accumulated depreciation | (17,641 | ) | (14,736 | ) | ||||
Total property and equipment, net | $ | 23,786 | $ | 24,120 | ||||
Other assets, net | Other assets, net were: | |||||||
As of | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
(Amounts in thousands) | ||||||||
Deferred financing costs, net | $ | 11,775 | $ | 17,526 | ||||
Investment in affiliates | 8,191 | 13,477 | ||||||
Palm promissory notes, long-term portion | 2,853 | 2,731 | ||||||
Other | 4,697 | 5,447 | ||||||
Total other assets, net | $ | 27,516 | $ | 39,181 | ||||
Accrued payroll and employee costs | Accrued payroll and employee costs were: | |||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Wages, compensation and other benefits | $ | 74,416 | $ | 93,007 | ||||
Accrued vacation | 18,889 | 20,383 | ||||||
Accrued contributions to employee benefit plans | 402 | 944 | ||||||
Total accrued payroll and employee costs | $ | 93,707 | $ | 114,334 | ||||
Accrued liabilities | Accrued liabilities were: | |||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Customer liability | $ | 22,635 | $ | 61,856 | ||||
Accrued insurance | 20,551 | 40,120 | ||||||
Accrued interest | 24,250 | 24,641 | ||||||
Unrecognized tax benefit | 7,999 | 10,132 | ||||||
Contract losses | 27,864 | 13,738 | ||||||
Legal reserves | 8,657 | 14,147 | ||||||
Subcontractor retention | 1,761 | 4,300 | ||||||
Financed insurance | 2,055 | 6,162 | ||||||
Other | 14,254 | 25,437 | ||||||
Total accrued liabilities | $ | 130,026 | $ | 200,533 | ||||
Goodwill_Other_Intangible_Asse1
Goodwill, Other Intangible Assets, and Long-Lived Assets (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||
Goodwill balances for segments | The carrying amount of goodwill, by segment, was as follows: | |||||||||||||||||
(Amounts in thousands) | DynAviation | DynLogistics | Total | |||||||||||||||
Balance as of December 31, 2012 | $ | 442,393 | $ | 161,659 | $ | 604,052 | ||||||||||||
Impairment of goodwill | (281,461 | ) | (28,824 | ) | (310,285 | ) | ||||||||||||
Balance as of December 31, 2013 | 160,932 | 132,835 | 293,767 | |||||||||||||||
Impairment of goodwill | (74,137 | ) | (90,742 | ) | (164,879 | ) | ||||||||||||
Balance as of December 31, 2014 | $ | 86,795 | $ | 42,093 | $ | 128,888 | ||||||||||||
Information about changes relating to certain intangible assets | The following tables provide information about changes relating to certain intangible assets: | |||||||||||||||||
December 31, 2014 | ||||||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Impairment | Net | |||||||||||||
Average | Carrying | Amortization | ||||||||||||||||
Useful Life | Value | |||||||||||||||||
(Years) | ||||||||||||||||||
Other intangible assets: | ||||||||||||||||||
Customer-related intangible assets | 4.6 | $ | 350,912 | $ | (178,126 | ) | $ | (33,388 | ) | $ | 139,398 | |||||||
Other | ||||||||||||||||||
Finite-lived | 4.8 | 15,418 | (10,395 | ) | — | 5,023 | ||||||||||||
Indefinite-lived | 5,059 | — | — | 5,059 | ||||||||||||||
Total other intangibles | $ | 371,389 | $ | (188,521 | ) | $ | (33,388 | ) | $ | 149,480 | ||||||||
Tradenames: | ||||||||||||||||||
Finite-lived | 0.4 | $ | 869 | $ | (807 | ) | $ | — | $ | 62 | ||||||||
Indefinite-lived | 43,222 | — | (14,522 | ) | 28,700 | |||||||||||||
Total tradenames | $ | 44,091 | $ | (807 | ) | $ | (14,522 | ) | $ | 28,762 | ||||||||
December 31, 2013 | ||||||||||||||||||
(Amounts in thousands, except years) | Weighted | Gross | Accumulated | Impairment | Net | |||||||||||||
Average | Carrying | Amortization | ||||||||||||||||
Useful Life | Value | |||||||||||||||||
(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 | |||||||||
Future amortization based upon the finite-lived intangible assets owned | The following table outlines an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2014: | |||||||||||||||||
Amortization | ||||||||||||||||||
Expense (1) | ||||||||||||||||||
Estimate for calendar year 2015 | 32,264 | |||||||||||||||||
Estimate for calendar year 2016 | 29,465 | |||||||||||||||||
Estimate for calendar year 2017 | 26,880 | |||||||||||||||||
Estimate for calendar year 2018 | 23,908 | |||||||||||||||||
Estimate for calendar year 2019 | 21,463 | |||||||||||||||||
Thereafter | 10,503 | |||||||||||||||||
(1)The future amortization is inclusive of the finite lived intangible-assets and finite-lived tradename. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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: | |||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | December 31, 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Domestic | $ | (286,799 | ) | $ | (286,989 | ) | $ | 6,567 | ||||
Foreign | (1,391 | ) | 27 | 5,739 | ||||||||
(Loss) income before income taxes | $ | (288,190 | ) | $ | (286,962 | ) | $ | 12,306 | ||||
Benefit (provision for) from income taxes | The Benefit (provision) from income taxes consists of the following: | |||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
(Amounts in thousands) | ||||||||||||
Current portion: | ||||||||||||
Federal | $ | 311 | $ | — | $ | — | ||||||
State | (800 | ) | (784 | ) | (500 | ) | ||||||
Foreign | (3,363 | ) | (16,045 | ) | (4,342 | ) | ||||||
(3,852 | ) | (16,829 | ) | (4,842 | ) | |||||||
Deferred portion: | ||||||||||||
Federal | 23,001 | 52,574 | (9,996 | ) | ||||||||
State | 739 | 1,086 | (101 | ) | ||||||||
Foreign | 682 | 630 | (659 | ) | ||||||||
24,422 | 54,290 | (10,756 | ) | |||||||||
Benefit (provision) from income taxes | $ | 20,570 | $ | 37,461 | $ | (15,598 | ) | |||||
Schedule of deferred tax assets and liabilities | Temporary differences, which give rise to deferred tax assets and liabilities, were as follows: | |||||||||||
As of | ||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets related to: | ||||||||||||
Workers' compensation accrual | $ | 5,046 | $ | 10,788 | ||||||||
Accrued vacation | 4,734 | 5,055 | ||||||||||
Completion bonus allowance | 6,001 | 3,539 | ||||||||||
Accrued severance | 3,751 | 193 | ||||||||||
Accrued executive incentives | 2,151 | 4,538 | ||||||||||
Legal reserve | 3,099 | 1,559 | ||||||||||
Accrued health costs | 799 | 1,704 | ||||||||||
Suspended loss from consolidated partnership | — | 5,421 | ||||||||||
Contract loss reserve | 11,684 | 8,877 | ||||||||||
Other accrued liabilities and reserves | 26,261 | 18,539 | ||||||||||
Partnership / joint venture basis differences | 3,072 | — | ||||||||||
Foreign tax credit carryforward | 16,336 | 17,880 | ||||||||||
Net operating loss carryforward | 979 | 1,096 | ||||||||||
Other carryforwards | 704 | 656 | ||||||||||
Uncertain tax positions | 5,649 | 7,471 | ||||||||||
Goodwill and other intangible assets | 44,201 | — | ||||||||||
Valuation allowance | (47,808 | ) | — | |||||||||
Total deferred tax assets | 86,659 | 87,316 | ||||||||||
Deferred tax liabilities related to: | ||||||||||||
Partnership / joint venture basis differences | — | (150 | ) | |||||||||
Prepaid insurance | (5,242 | ) | (6,976 | ) | ||||||||
Indefinite lived intangibles | (31,806 | ) | — | |||||||||
Goodwill and other intangible assets | — | (25,101 | ) | |||||||||
Unbilled receivables | (75,392 | ) | (103,413 | ) | ||||||||
Total deferred tax liabilities | (112,440 | ) | (135,640 | ) | ||||||||
Total deferred tax liabilities, net | $ | (25,781 | ) | $ | (48,324 | ) | ||||||
Deferred tax assets and liabilities are reported as: | ||||||||||||
As of | ||||||||||||
December 31, 2014 | 31-Dec-13 | |||||||||||
(Amounts in thousands) | ||||||||||||
Current deferred tax liabilities, net | $ | (31,477 | ) | $ | (30,965 | ) | ||||||
Non-current deferred tax assets (liabilities), net | 5,696 | (17,359 | ) | |||||||||
Deferred tax liabilities, net | $ | (25,781 | ) | $ | (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: | |||||||||||
For the years ended | ||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income tax, less effect of federal deduction | — | % | 0.1 | % | 4.9 | % | ||||||
Noncontrolling interests | 0.3 | % | 0.5 | % | (16.1 | )% | ||||||
Goodwill impairment (1) | (11.2 | )% | (22.6 | )% | 70.6 | % | ||||||
Uncertain tax positions | 0.1 | % | (0.1 | )% | 13.7 | % | ||||||
Nondeductible expenses | (0.8 | )% | (0.4 | )% | 9 | % | ||||||
Penalties | — | % | — | % | 5.8 | % | ||||||
Valuation allowance | (16.2 | )% | — | % | — | % | ||||||
Other | (0.1 | )% | 0.6 | % | 3.8 | % | ||||||
Effective tax rate | 7.1 | % | 13.1 | % | 126.7 | % | ||||||
-1 | Includes non-cash impairment charges to goodwill associated with our DynAviation and DynLogistics segments for years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. See Note 3 for further discussion. | |||||||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
(Amounts in thousands) | Unrecognized Tax Benefits | |||||||||||
Balance at December 31, 2012 | $ | 8,234 | ||||||||||
Additions for tax positions related to prior years | 1,686 | |||||||||||
Reductions for tax positions of prior years | (447 | ) | ||||||||||
Settlements | — | |||||||||||
Remeasurements | — | |||||||||||
Net releases | — | |||||||||||
Lapse of statute of limitations | — | |||||||||||
Balance at December 31, 2013 | $ | 9,473 | ||||||||||
Additions for tax positions related to prior years | — | |||||||||||
Reductions for tax positions of prior years | (447 | ) | ||||||||||
Settlements | (1,375 | ) | ||||||||||
Remeasurements | (311 | ) | ||||||||||
Net releases | — | |||||||||||
Lapse of statute of limitations | — | |||||||||||
Balance at December 31, 2014 | $ | 7,340 | ||||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Accounts receivable | Accounts Receivable, net consisted of the following: | |||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
Billed | $ | 146,286 | $ | 179,586 | ||||
Unbilled | 302,210 | 397,550 | ||||||
Total | $ | 448,496 | $ | 577,136 | ||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||
Schedule of pension fund | Our participation in the IAMNPF for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is outlined in the table below. The "EIN/PN" column provides the Employee Identification Number ("EIN") and the three-digit plan number ("PN"). The most recent Pension Protection Act ("PPA") zone status available for 2014, 2013 and 2012 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent and 80 percent funded, and plans in the green zone are at least 80 percent funded. The "FIP/RP Status Pending/Implemented" column indicates if the plan has a financial improvement plan ("FIP") or a rehabilitation plan ("RP") which is either pending or has been implemented. In addition to regular plan contributions, we may be subject to a surcharge if the plan is in the red zone. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. | ||||||||||
FIP / RP Status | Total Contributions of DynCorp International | Expiration | |||||||||
PPA Zone Status (2) | Pending / | (Amounts in thousands) | Surcharge | Date of | |||||||
Pension Fund | EIN/PN | 2014 | 2013 | 2012 | Implemented | 2014 | 2013 | 2012 | Imposed | CBA | |
IAMNPF (1) | 516031295 / 001 | Green | Green | Green | No | $6,845 | $6,062 | $4,686 | No | 5/15/2015 through 3/30/2018 | |
-1 | Of the 13 collective-bargaining agreements that require contributions to this plan, the agreement with International Association of Machinists ("IAM") Pilot union employees at California Department of Forestry and Fire Protection ("CAL FIRE") is the most significant as contributions under this plan for years 2015 through the expiration date of the collective-bargaining agreement will approximate $14.1 million, or 36.3% of all required contributions to the IAMNPF. | ||||||||||
-2 | Unless otherwise noted, the most recent PPA zone status available in 2014, 2013 and 2012, is for the plan’s year-end status for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. The zone status is based on information we receive from the plan and is certified by the plan's actuary. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||
Schedule of long-term debt | Long-term debt consisted of the following: | |||||||
As of | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
(Amounts in thousands) | ||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 455,000 | ||||
Term loan | 187,272 | 277,272 | ||||||
Total long-term debt | $ | 642,272 | $ | 732,272 | ||||
Schedule of maximum leverage ratios by period end | Effective with the Fourth Amendment, the maximum total leverage ratios are set forth below as follows: | |||||||
Period Ending | Total Leverage Ratio | |||||||
December 31, 2014 | 5.55 to 1.0 | |||||||
March 27, 2015 | 6.65 to 1.0 | |||||||
June 26, 2015 | 7.70 to 1.0 | |||||||
September 25, 2015 | 8.10 to 1.0 | |||||||
December 31, 2015 | 7.75 to 1.0 | |||||||
March 25, 2016 | 7.60 to 1.0 | |||||||
June 24, 2016 | 6.90 to 1.0 | |||||||
June 25, 2016 and thereafter | 6.60 to 1.0 | |||||||
Schedule of interest coverage ratios by period end | Effective with the Fourth Amendment, the interest coverage ratios are set forth below as follows: | |||||||
Period Ending | Interest Coverage Ratio | |||||||
31-Dec-14 | 1.05 to 1.0 | |||||||
March 25, 2016 | 1.15 to 1.0 | |||||||
June 24, 2016 | 1.20 to 1.0 | |||||||
June 25, 2016 and thereafter | 1.30 to 1.0 | |||||||
Schedule of debt redemption prices | 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 | % |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Summary of Minimum fixed rentals non-cancelable under operating leases | Minimum fixed rental payments non-cancelable for the next five years and thereafter under operating leases in effect as of December 31, 2014, are as follows: | ||||||||||||
Calendar Year | Real Estate | Equipment | Total | ||||||||||
(Amounts in thousands) | |||||||||||||
2015 (1) | $ | 24,698 | $ | 5,817 | $ | 30,515 | |||||||
2016 | 11,839 | 3,386 | 15,225 | ||||||||||
2017 | 10,041 | 2,433 | 12,474 | ||||||||||
2018 | 9,060 | — | 9,060 | ||||||||||
2019 | 4,225 | — | 4,225 | ||||||||||
Thereafter | 13,911 | — | 13,911 | ||||||||||
Total | $ | 73,774 | $ | 11,636 | $ | 85,410 | |||||||
-1 | The minimum lease table above excludes agreements of one year or less in duration. These leases are accounted for in our rent expense, however, because of the short tenure of the lease, these are not reflected in the table above. |
Equity_Tables
Equity (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Equity [Abstract] | |||||||
Disclosure of assumptions used | A summary of the Class B Interest plans activity for the years ended December 31, 2014 and December 31, 2013 is as follows: | ||||||
Number of | |||||||
Interests | |||||||
Outstanding at December 31, 2012 | — | ||||||
Granted: | |||||||
Class B-1 | 2,764 | ||||||
Class B-2 | 380 | ||||||
Exercised | — | ||||||
Forfeited or expired | — | ||||||
Outstanding at December 31, 2013 | 3,144 | ||||||
Granted: | |||||||
Class B-1 | 4,339 | ||||||
Class B-2 | — | ||||||
Exercised | — | ||||||
Forfeited or expired | (1,582 | ) | |||||
Outstanding at December 31, 2014 | 5,901 | ||||||
Schedule of option activity during the year | For the periods indicated, the weighted-average assumptions used were as follows: | ||||||
For the years ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Weighted-average assumptions used: | |||||||
Expected volatility | 36 | % | 33.5 | % | |||
Risk-free interest rate | 1.1 | % | 1.7 | % | |||
Expected yield | 8 | % | 8 | % | |||
Expected life (in years) | 2.8 | 4 | |||||
Forfeiture rate | 8 | % | 8 | % | |||
Schedule of nonvested share activity during the year | The following is a summary of the changes in non-vested shares for the years ended December 31, 2014 and December 31, 2013: | ||||||
Number of Shares | |||||||
Non-vested shares at December 31, 2012 | — | ||||||
Granted | 3,144 | ||||||
Vested | (1,021 | ) | |||||
Forfeited | — | ||||||
Non-vested shares at December 31, 2013 | 2,123 | ||||||
Granted | 4,339 | ||||||
Vested | (3,646 | ) | |||||
Forfeited | (1,582 | ) | |||||
Non-vested shares at December 31, 2014 | 1,234 | ||||||
Fair_Value_of_Financial_Assets1
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Estimate of fair value of long-term debt based on quoted prices in active markets | Our estimate of the fair value of our long-term debt is based Level 1 and Level 2 inputs, as defined above. | |||||||||||||||
As of | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Amounts in thousands) | Amount | Value | Amount | Value | ||||||||||||
10.375% senior unsecured notes | $ | 455,000 | $ | 373,100 | $ | 455,000 | $ | 468,650 | ||||||||
Term Loan | 187,272 | 185,868 | 277,272 | 278,658 | ||||||||||||
Total long-term debt | $ | 642,272 | $ | 558,968 | $ | 732,272 | $ | 747,308 | ||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 consolidated financial statements: | ||||||||||||||||||||
For the years ended | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Revenue | |||||||||||||||||||||
DynAviation (1) | $ | 1,204,417 | $ | 1,373,635 | $ | 1,338,514 | |||||||||||||||
DynLogistics (1) | 1,045,200 | 1,920,715 | 2,709,469 | ||||||||||||||||||
Headquarters / Other (2) | 2,692 | (7,166 | ) | (3,708 | ) | ||||||||||||||||
Total revenue | $ | 2,252,309 | $ | 3,287,184 | $ | 4,044,275 | |||||||||||||||
Operating (loss) / income | |||||||||||||||||||||
DynAviation (1) | $ | (61,501 | ) | $ | (194,701 | ) | $ | 105,327 | |||||||||||||
DynLogistics (1) | (67,097 | ) | 36,243 | 48,941 | |||||||||||||||||
Headquarters / Other (3) | (91,348 | ) | (48,322 | ) | (58,385 | ) | |||||||||||||||
Total operating (loss) / income | $ | (219,946 | ) | $ | (206,780 | ) | $ | 95,883 | |||||||||||||
Depreciation and amortization | |||||||||||||||||||||
DynAviation (1) | $ | 1,665 | $ | 1,628 | $ | 685 | |||||||||||||||
DynLogistics (1) | 55 | 543 | 1,043 | ||||||||||||||||||
Headquarters / Other | 47,987 | 48,108 | 50,086 | ||||||||||||||||||
Total depreciation and amortization (4) | $ | 49,707 | $ | 50,279 | $ | 51,814 | |||||||||||||||
-1 | DynGlobal revenue, operating loss, and depreciation and amortization for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is immaterial and included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | ||||||||||||||||||||
-2 | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. | ||||||||||||||||||||
-3 | Headquarters operating loss primarily relates to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. | ||||||||||||||||||||
-4 | Includes amounts in Cost of services of $1.1 million, $1.7 million and $1.6 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
As of | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
DynAviation (1) | $ | 393,246 | $ | 447,646 | $ | 706,646 | |||||||||||||||
DynLogistics (1) | 299,961 | 591,304 | 800,734 | ||||||||||||||||||
Headquarters / Other (2) | 289,280 | 460,971 | 463,336 | ||||||||||||||||||
Total assets | $ | 982,487 | $ | 1,499,921 | $ | 1,970,716 | |||||||||||||||
Schedule of Assets Allocation to segment | |||||||||||||||||||||
As of | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
DynAviation (1) | $ | 393,246 | $ | 447,646 | $ | 706,646 | |||||||||||||||
DynLogistics (1) | 299,961 | 591,304 | 800,734 | ||||||||||||||||||
Headquarters / Other (2) | 289,280 | 460,971 | 463,336 | ||||||||||||||||||
Total assets | $ | 982,487 | $ | 1,499,921 | $ | 1,970,716 | |||||||||||||||
-1 | DynGlobal assets for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 are included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | ||||||||||||||||||||
-2 | Assets primarily include cash, investments in unconsolidated subsidiaries, net deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. | ||||||||||||||||||||
Summary of Revenue by geography | Revenue by geography is determined based on the location of services provided. | ||||||||||||||||||||
For the years ended | |||||||||||||||||||||
December 31, 2014 | 31-Dec-13 | December 31, 2012 | |||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||
United States | $ | 612,220 | 27 | % | $ | 695,772 | 21 | % | $ | 635,293 | 16 | % | |||||||||
Afghanistan | 1,003,205 | 45 | % | 1,845,234 | 56 | % | 2,436,714 | 60 | % | ||||||||||||
Middle East (1) | 387,021 | 17 | % | 534,861 | 16 | % | 730,372 | 18 | % | ||||||||||||
Other Americas | 84,424 | 4 | % | 87,759 | 3 | % | 106,160 | 3 | % | ||||||||||||
Europe | 53,853 | 2 | % | 52,365 | 2 | % | 51,209 | 1 | % | ||||||||||||
Asia-Pacific | 41,953 | 2 | % | 46,170 | 1 | % | 44,000 | 1 | % | ||||||||||||
Other | 69,633 | 3 | % | 25,023 | 1 | % | 40,527 | 1 | % | ||||||||||||
Total revenue | $ | 2,252,309 | 100 | % | $ | 3,287,184 | 100 | % | $ | 4,044,275 | 100 | % | |||||||||
-1 | The Middle East includes but is not limited to activities in Iraq, Oman, Qatar, United Arab Emirates, Kuwait, Palestine, Sudan, Pakistan, Jordan, Lebanon, Bahrain, Saudi Arabia, Turkey and Egypt. The vast majority of all assets owned by the Company were located in the U.S. as of December 31, 2014. |
Related_Parties_Joint_Ventures1
Related Parties, Joint Ventures and Variable Interest Entities (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Related Party Transactions [Abstract] | ||||||||||||
Ownership percentage of Joint Ventures and Variable Interest Entities | Our most significant joint ventures and VIEs and our associated ownership percentages are listed as follows: | |||||||||||
Partnership for Temporary Housing LLC ("PaTH") | 30 | % | ||||||||||
Contingency Response Services LLC ("CRS") | 45 | % | ||||||||||
Global Response Services LLC ("GRS") | 51 | % | ||||||||||
GLS | 51 | % | ||||||||||
DynCorp International FZ - LLC ("DIFZ") | 25 | % | ||||||||||
Babcock DynCorp Limited ("Babcock") | 44 | % | ||||||||||
Selected financial information for related parties and equity method investees | The following tables present selected financial information for DIFZ as of December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | |||||||||||
As of | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Assets | $ | 4.7 | $ | 25.9 | ||||||||
Liabilities | 1.5 | 22.2 | ||||||||||
For the years ended | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||
Revenue | $ | 297.7 | $ | 414.4 | $ | 510.1 | ||||||
The following tables present selected financial information for our equity method investees as of December 31, 2014 and December 31, 2013 and for the years ended December 31, 2014, December 31, 2013 and December 31, 2012: | ||||||||||||
As of | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Current assets | $ | 65.8 | $ | 86.3 | ||||||||
Total assets | 65.9 | 86.3 | ||||||||||
Current liabilities | 44.4 | 46.4 | ||||||||||
Total liabilities | 44.4 | 44.5 | ||||||||||
For the years ended | ||||||||||||
(Amounts in millions) | 31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||
Revenue | $ | 233.1 | $ | 203.1 | $ | 234.5 | ||||||
Gross profit | 20.7 | 15.9 | 17.1 | |||||||||
Net income | 14.4 | 10.7 | 13.4 | |||||||||
Consolidating_Financial_Statem1
Consolidating Financial Statements of Subsidiary Guarantors (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | Delta Tucker Holdings, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 2,268,349 | $ | 315,551 | $ | (331,591 | ) | $ | 2,252,309 | |||||||||||
Cost of services | — | — | (2,092,339 | ) | (312,110 | ) | 331,584 | (2,072,865 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (146,623 | ) | (265 | ) | 7 | (146,881 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (47,979 | ) | (603 | ) | — | (48,582 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 489 | 9,588 | — | 10,077 | ||||||||||||||||||
Impairment of goodwill, intangibles and long lived assets | — | — | (214,004 | ) | — | — | (214,004 | ) | ||||||||||||||||
Operating income | — | — | (232,107 | ) | 12,161 | — | (219,946 | ) | ||||||||||||||||
Interest expense | — | (68,221 | ) | (2,562 | ) | — | — | (70,783 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (1,362 | ) | — | — | — | (1,362 | ) | ||||||||||||||||
Interest income | — | — | 198 | 23 | — | 221 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (269,780 | ) | (224,551 | ) | 10,174 | — | 484,157 | — | ||||||||||||||||
Other income, net | — | — | 3,736 | (56 | ) | — | 3,680 | |||||||||||||||||
(Loss) income before income taxes | (269,780 | ) | (294,134 | ) | (220,561 | ) | 12,128 | 484,157 | (288,190 | ) | ||||||||||||||
Benefit (provision) for income taxes | — | 24,354 | (3,990 | ) | 206 | — | 20,570 | |||||||||||||||||
Net (loss) income | (269,780 | ) | (269,780 | ) | (224,551 | ) | 12,334 | 484,157 | (267,620 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (2,160 | ) | — | (2,160 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (269,780 | ) | $ | (269,780 | ) | $ | (224,551 | ) | $ | 10,174 | $ | 484,157 | $ | (269,780 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 3,298,767 | $ | 445,144 | $ | (456,727 | ) | $ | 3,287,184 | |||||||||||
Cost of services | — | — | (3,006,723 | ) | (437,375 | ) | 456,845 | (2,987,253 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (148,962 | ) | (845 | ) | (118 | ) | (149,925 | ) | ||||||||||||||
Depreciation and amortization expense | — | — | (48,028 | ) | (600 | ) | — | (48,628 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 1,510 | 3,060 | — | 4,570 | ||||||||||||||||||
Impairment of goodwill, intangibles and long lived assets | — | — | (312,728 | ) | — | — | (312,728 | ) | ||||||||||||||||
Operating (loss) income | — | — | (216,164 | ) | 9,384 | — | (206,780 | ) | ||||||||||||||||
Interest expense | — | (75,001 | ) | (3,825 | ) | — | — | (78,826 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (703 | ) | — | — | — | (703 | ) | ||||||||||||||||
Interest income | — | — | 130 | 27 | — | 157 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (253,736 | ) | (204,678 | ) | 5,097 | — | 453,317 | — | ||||||||||||||||
Other (loss) income, net | — | — | (998 | ) | 188 | — | (810 | ) | ||||||||||||||||
(Loss) income before income taxes | (253,736 | ) | (280,382 | ) | (215,760 | ) | 9,599 | 453,317 | (286,962 | ) | ||||||||||||||
Benefit (provision) for income taxes | — | 26,646 | 11,082 | (267 | ) | — | 37,461 | |||||||||||||||||
Net (loss) income | (253,736 | ) | (253,736 | ) | (204,678 | ) | 9,332 | 453,317 | (249,501 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (4,235 | ) | — | (4,235 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (253,736 | ) | $ | (253,736 | ) | $ | (204,678 | ) | $ | 5,097 | $ | 453,317 | $ | (253,736 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Operations Information | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 4,077,449 | $ | 538,118 | $ | (571,292 | ) | $ | 4,044,275 | |||||||||||
Cost of services | — | — | (3,743,400 | ) | (514,653 | ) | 559,121 | (3,698,932 | ) | |||||||||||||||
Selling, general and administrative expenses | — | — | (149,236 | ) | (12,297 | ) | 12,171 | (149,362 | ) | |||||||||||||||
Depreciation and amortization expense | — | — | (49,658 | ) | (602 | ) | — | (50,260 | ) | |||||||||||||||
Earnings from equity method investees | — | — | 825 | — | — | 825 | ||||||||||||||||||
Impairment of goodwill | — | — | (44,594 | ) | — | — | (44,594 | ) | ||||||||||||||||
Impairment of intangibles | — | — | (6,069 | ) | — | — | (6,069 | ) | ||||||||||||||||
Operating income | — | — | 85,317 | 10,566 | — | 95,883 | ||||||||||||||||||
Interest expense | — | (80,078 | ) | (6,194 | ) | — | — | (86,272 | ) | |||||||||||||||
Loss on early extinguishment of debt | — | (2,094 | ) | — | — | — | (2,094 | ) | ||||||||||||||||
Interest income | — | — | 108 | 9 | — | 117 | ||||||||||||||||||
Equity in (loss) income of consolidated subsidiaries | (8,937 | ) | (16,604 | ) | 4,050 | — | 21,491 | — | ||||||||||||||||
Other income (loss), net | — | — | 4,814 | (142 | ) | — | 4,672 | |||||||||||||||||
(Loss) income before income taxes | (8,937 | ) | (98,776 | ) | 88,095 | 10,433 | 21,491 | 12,306 | ||||||||||||||||
Benefit (provision) for income taxes | — | 89,839 | (104,699 | ) | (738 | ) | — | (15,598 | ) | |||||||||||||||
Net (loss) income | (8,937 | ) | (8,937 | ) | (16,604 | ) | 9,695 | 21,491 | (3,292 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (5,645 | ) | — | (5,645 | ) | ||||||||||||||||
Net (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (8,937 | ) | $ | (8,937 | ) | $ | (16,604 | ) | $ | 4,050 | $ | 21,491 | $ | (8,937 | ) | ||||||||
Schedule of Condensed Statement of Comprehensive Income | Delta Tucker Holdings, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (269,780 | ) | $ | (269,780 | ) | $ | (224,551 | ) | $ | 12,334 | $ | 484,157 | $ | (267,620 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (131 | ) | (131 | ) | — | (131 | ) | 262 | (131 | ) | ||||||||||||||
Other comprehensive income, before tax | (131 | ) | (131 | ) | — | (131 | ) | 262 | (131 | ) | ||||||||||||||
Income tax expense related to items of other comprehensive income | 47 | 47 | — | 47 | (94 | ) | 47 | |||||||||||||||||
Other comprehensive loss | (84 | ) | (84 | ) | — | (84 | ) | 168 | (84 | ) | ||||||||||||||
Comprehensive (loss) income | (269,864 | ) | (269,864 | ) | (224,551 | ) | 12,250 | 484,325 | (267,704 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (2,160 | ) | — | (2,160 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (269,864 | ) | $ | (269,864 | ) | $ | (224,551 | ) | $ | 10,090 | $ | 484,325 | $ | (269,864 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (253,736 | ) | $ | (253,736 | ) | $ | (204,678 | ) | $ | 9,332 | $ | 453,317 | $ | (249,501 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | (437 | ) | (437 | ) | (242 | ) | (195 | ) | 874 | (437 | ) | |||||||||||||
Other comprehensive income, before tax | (437 | ) | (437 | ) | (242 | ) | (195 | ) | 874 | (437 | ) | |||||||||||||
Income tax expense related to items of other comprehensive income | 157 | 157 | 86 | 70 | (313 | ) | 157 | |||||||||||||||||
Other comprehensive income | (280 | ) | (280 | ) | (156 | ) | (125 | ) | 561 | (280 | ) | |||||||||||||
Comprehensive (loss) income | (254,016 | ) | (254,016 | ) | (204,834 | ) | 9,207 | 453,878 | (249,781 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (4,235 | ) | — | (4,235 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (254,016 | ) | $ | (254,016 | ) | $ | (204,834 | ) | $ | 4,972 | $ | 453,878 | $ | (254,016 | ) | ||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary Issuer | Subsidiary Guarantors | Subsidiary Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net (loss) income | $ | (8,937 | ) | $ | (8,937 | ) | $ | (16,604 | ) | $ | 9,695 | $ | 21,491 | $ | (3,292 | ) | ||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Currency translation adjustment | 225 | 225 | 123 | 102 | (450 | ) | 225 | |||||||||||||||||
Other comprehensive income, before tax | 225 | 225 | 123 | 102 | (450 | ) | 225 | |||||||||||||||||
Income tax expense related to items of other comprehensive income | (83 | ) | (83 | ) | (45 | ) | (38 | ) | 166 | (83 | ) | |||||||||||||
Other comprehensive income | 142 | 142 | 78 | 64 | (284 | ) | 142 | |||||||||||||||||
Comprehensive (loss) income | (8,795 | ) | (8,795 | ) | (16,526 | ) | 9,759 | 21,207 | (3,150 | ) | ||||||||||||||
Noncontrolling interest | — | — | — | (5,645 | ) | — | (5,645 | ) | ||||||||||||||||
Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. | $ | (8,795 | ) | $ | (8,795 | ) | $ | (16,526 | ) | $ | 4,114 | $ | 21,207 | $ | (8,795 | ) | ||||||||
Condensed Consolidating Balance Sheet Information | Delta Tucker Holdings, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 87,300 | $ | 6,704 | $ | — | $ | 94,004 | ||||||||||||
Restricted cash | — | — | 707 | — | — | 707 | ||||||||||||||||||
Accounts receivable, net | — | — | 452,938 | 719 | (5,161 | ) | 448,496 | |||||||||||||||||
Intercompany receivables | — | — | 234,109 | 28,231 | (262,340 | ) | — | |||||||||||||||||
Prepaid expenses and other current assets | — | — | 73,456 | 1,217 | (473 | ) | 74,200 | |||||||||||||||||
Deferred taxes | — | — | — | — | — | — | ||||||||||||||||||
Total current assets | — | — | 848,510 | 36,871 | (267,974 | ) | 617,407 | |||||||||||||||||
Long-term restricted cash | — | — | 952 | — | — | 952 | ||||||||||||||||||
Property and equipment, net | — | — | 23,615 | 171 | — | 23,786 | ||||||||||||||||||
Goodwill | — | — | 96,489 | 32,399 | — | 128,888 | ||||||||||||||||||
Tradenames, net | — | — | 28,762 | — | — | 28,762 | ||||||||||||||||||
Other intangibles, net | — | — | 148,825 | 655 | — | 149,480 | ||||||||||||||||||
Investment in subsidiaries | — | 805,417 | 55,087 | — | (860,504 | ) | — | |||||||||||||||||
Long-term deferred taxes | — | — | 5,696 | — | — | 5,696 | ||||||||||||||||||
Other assets, net | 558 | 11,775 | 15,183 | — | — | 27,516 | ||||||||||||||||||
Total assets | $ | 558 | $ | 817,192 | $ | 1,223,119 | $ | 70,096 | $ | (1,128,478 | ) | $ | 982,487 | |||||||||||
LIABILITIES & EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | — | $ | — | $ | 146,016 | $ | 1,253 | $ | (723 | ) | $ | 146,546 | |||||||||||
Accrued payroll and employee costs | — | — | 84,725 | 13,296 | (4,314 | ) | 93,707 | |||||||||||||||||
Intercompany payables | 45,643 | 188,466 | 28,231 | — | (262,340 | ) | — | |||||||||||||||||
Deferred income taxes | — | — | 31,453 | 24 | — | 31,477 | ||||||||||||||||||
Other accrued liabilities | 37,681 | 24,135 | 105,404 | 436 | (37,630 | ) | 130,026 | |||||||||||||||||
Income taxes payable | — | — | 5,072 | — | (648 | ) | 4,424 | |||||||||||||||||
Total current liabilities | 83,324 | 212,601 | 400,901 | 15,009 | (305,655 | ) | 406,180 | |||||||||||||||||
Long-term debt, less current portion | — | 642,272 | — | — | — | 642,272 | ||||||||||||||||||
Long-term deferred taxes | — | — | — | — | — | — | ||||||||||||||||||
Other long-term liabilities | — | — | 11,312 | — | — | 11,312 | ||||||||||||||||||
Noncontrolling interests | — | — | 5,489 | — | — | 5,489 | ||||||||||||||||||
(Deficit) equity | (82,766 | ) | (37,681 | ) | 805,417 | 55,087 | (822,823 | ) | (82,766 | ) | ||||||||||||||
Total liabilities and equity | $ | 558 | $ | 817,192 | $ | 1,223,119 | $ | 70,096 | $ | (1,128,478 | ) | $ | 982,487 | |||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Balance Sheet Information | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
(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 | |||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 333 | $ | 29,545 | $ | (6,454 | ) | $ | 3,650 | $ | (1,697 | ) | 25,377 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (8,712 | ) | — | — | (8,712 | ) | ||||||||||||||||
Proceeds from sale of property and equipment | — | — | 44 | — | — | 44 | ||||||||||||||||||
Purchase of software | — | — | (1,631 | ) | — | — | (1,631 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 5,625 | — | — | 5,625 | ||||||||||||||||||
Contributions to equity method investees | — | — | — | — | — | — | ||||||||||||||||||
Net Transfer (to) from affiliates | — | — | (60,122 | ) | (20,372 | ) | 80,494 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (64,796 | ) | (20,372 | ) | 80,494 | (4,674 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 118,000 | — | — | — | 118,000 | ||||||||||||||||||
Payments on long-term debt | — | (208,000 | ) | — | — | — | (208,000 | ) | ||||||||||||||||
Payments of deferred financing cost | — | — | (1,740 | ) | — | — | (1,740 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 20,214 | — | — | 20,214 | ||||||||||||||||||
Payments related to financed insurance | — | — | (24,321 | ) | — | — | (24,321 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (3,394 | ) | 1,697 | (1,697 | ) | ||||||||||||||||
Transfers (to) from affiliates | (333 | ) | 60,455 | 20,372 | — | (80,494 | ) | — | ||||||||||||||||
Net cash (used in) provided by financing activities | (333 | ) | (29,545 | ) | 14,525 | (3,394 | ) | (78,797 | ) | (97,544 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | (56,725 | ) | (20,116 | ) | — | (76,841 | ) | |||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 144,025 | 26,820 | — | 170,845 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 87,300 | $ | 6,704 | $ | — | $ | 94,004 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 461 | $ | 30,040 | $ | 101,590 | $ | 9,793 | $ | (4,382 | ) | $ | 137,502 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (7,604 | ) | (24 | ) | — | (7,628 | ) | |||||||||||||||
Proceeds from sale of property and equipment | — | — | 182 | — | — | 182 | ||||||||||||||||||
Purchase of software | — | — | (2,718 | ) | — | — | (2,718 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 2,223 | — | — | 2,223 | ||||||||||||||||||
Contributions to equity method investees | — | — | (30 | ) | — | — | (30 | ) | ||||||||||||||||
Net Transfer (to) from affiliates | — | — | (9,939 | ) | (7,857 | ) | 17,796 | — | ||||||||||||||||
Net cash used in investing activities | — | — | (17,886 | ) | (7,881 | ) | 17,796 | (7,971 | ) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 745,900 | — | — | — | 745,900 | ||||||||||||||||||
Payments on long-term debt | — | (796,537 | ) | — | — | — | (796,537 | ) | ||||||||||||||||
Payments of deferred financing cost | — | — | (2,139 | ) | — | — | (2,139 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 9,431 | — | — | 9,431 | ||||||||||||||||||
Payments related to financed insurance | — | — | (29,734 | ) | — | — | (29,734 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (8,764 | ) | 4,382 | (4,382 | ) | ||||||||||||||||
Transfers (to) from affiliates | (461 | ) | 20,597 | 7,856 | (10,196 | ) | (17,796 | ) | — | |||||||||||||||
Net cash (used in) provided by financing activities | (461 | ) | (30,040 | ) | (14,586 | ) | (18,960 | ) | (13,414 | ) | (77,461 | ) | ||||||||||||
Net increase in cash and cash equivalents | — | — | 69,118 | (17,048 | ) | — | 52,070 | |||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 74,907 | 43,868 | — | 118,775 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 144,025 | $ | 26,820 | $ | — | $ | 170,845 | ||||||||||||
Delta Tucker Holdings, Inc. and Subsidiaries | ||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flow Information | ||||||||||||||||||||||||
For the year ended December 31, 2012 | ||||||||||||||||||||||||
(Amounts in thousands) | Parent | Subsidiary | Subsidiary | Subsidiary | Eliminations | Consolidated | ||||||||||||||||||
Issuer | Guarantors | Non- | ||||||||||||||||||||||
Guarantors | ||||||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 664 | $ | 103,223 | $ | 29,660 | $ | 13,309 | $ | (2,666 | ) | $ | 144,190 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Purchase of property and equipment, net | — | — | (5,467 | ) | (61 | ) | — | (5,528 | ) | |||||||||||||||
Proceeds from sale of property and equipment | — | — | 25 | — | — | 25 | ||||||||||||||||||
Cash paid for acquisition, net of cash acquired | — | — | (11,746 | ) | — | — | (11,746 | ) | ||||||||||||||||
Purchase of software | — | — | (2,590 | ) | — | — | (2,590 | ) | ||||||||||||||||
Return of capital from equity method investees | — | — | 9,154 | — | — | 9,154 | ||||||||||||||||||
Contributions to equity method investees | — | — | (1,478 | ) | — | — | (1,478 | ) | ||||||||||||||||
Net Transfer from (to) affiliates | — | — | 12,159 | 9,196 | (21,355 | ) | — | |||||||||||||||||
Net cash used in investing activities | — | — | 57 | 9,135 | (21,355 | ) | (12,163 | ) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Borrowings on long-term debt | — | 325,000 | — | — | — | 325,000 | ||||||||||||||||||
Payments on long-term debt | — | (415,000 | ) | — | — | — | (415,000 | ) | ||||||||||||||||
Borrowings related to financed insurance | — | — | 62,580 | — | — | 62,580 | ||||||||||||||||||
Payments related to financed insurance | — | — | (53,918 | ) | — | — | (53,918 | ) | ||||||||||||||||
Payments of dividends to Parent | — | — | — | (4,785 | ) | 2,666 | (2,119 | ) | ||||||||||||||||
Transfers (to) from affiliates | (664 | ) | (13,223 | ) | (9,196 | ) | 1,728 | 21,355 | — | |||||||||||||||
Net cash (used in) provided by financing activities | (664 | ) | (103,223 | ) | (534 | ) | (3,057 | ) | 24,021 | (83,457 | ) | |||||||||||||
Net increase in cash and cash equivalents | — | — | 29,183 | 19,387 | — | 48,570 | ||||||||||||||||||
Cash and cash equivalents, beginning of period | — | — | 45,724 | 24,481 | — | 70,205 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | 74,907 | $ | 43,868 | $ | — | $ | 118,775 | ||||||||||||
Significant_Accounting_Policie3
Significant Accounting Policies and Accounting Developments (Details) | 0 Months Ended | 12 Months Ended |
Jan. 18, 2013 | Dec. 31, 2014 | |
Partnership for Temporary Housing LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 30.00% | 30.00% |
Contingency Response Services LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 45.00% | |
Global Response Services LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 51.00% | |
Global Linguist Solutions LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 51.00% |
Significant_Accounting_Policie4
Significant Accounting Policies and Accounting Developments (Details 1) (Babcock Dyn Corp Limited [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Babcock Dyn Corp Limited [Member] | |
Equity Method Investment ownership percentages | |
Variable Interest Entity ownership percentage | 44.00% |
Significant_Accounting_Policie5
Significant Accounting Policies and Accounting Developments (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Aggregate gross favorable and unfavorable adjustments to income (loss) before income taxes | |||
Gross favorable adjustments | $7.40 | $45.80 | $29.30 |
Gross unfavorable adjustments | -53.9 | -20.7 | -9.7 |
Net adjustments | ($46.50) | $25.10 | $19.60 |
Significant_Accounting_Policie6
Significant Accounting Policies and Accounting Developments (Details 3) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of standard depreciation and amortization policies | |
Leasehold improvements | Shorter of lease term or useful life |
Maximum [Member] | Computer and related equipment [Member] | |
Summary of standard depreciation and amortization policies | |
Property, plant, and equipment useful life | 5 years |
Maximum [Member] | Furniture and other equipment [Member] | |
Summary of standard depreciation and amortization policies | |
Property, plant, and equipment useful life | 10 years |
Minimum [Member] | Computer and related equipment [Member] | |
Summary of standard depreciation and amortization policies | |
Property, plant, and equipment useful life | 3 years |
Minimum [Member] | Furniture and other equipment [Member] | |
Summary of standard depreciation and amortization policies | |
Property, plant, and equipment useful life | 2 years |
Significant_Accounting_Policie7
Significant Accounting Policies and Accounting Developments (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 11, 2010 | Sep. 26, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 15, 2012 | |
operating_and_reporting_segment | operating_and_reporting_segment | ||||
group | |||||
Significant Accounting Policies and Accounting Developments (Textual) [Abstract] | |||||
Holders of DynCorp Internationals stock received (in dollars per share) | $17.55 | ||||
Number of equity method investees classification groups | 2 | ||||
Percentage of interest in joint venture | 100.00% | ||||
Ownership interest | 100.00% | 50.00% | |||
Maturity of cash and cash equivalents | three months or less | ||||
Income tax settlement position | 100.00% | ||||
Number of operating and reportable segment | 2 | 2 | |||
Dyncorp International FZ LLC [Member] | |||||
Significant Accounting Policies and Accounting Developments (Textual) [Abstract] | |||||
Variable Interest Entity ownership percentage | 25.00% |
Composition_of_Certain_Financi2
Composition of Certain Financial Statement Captions (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets | ||
Prepaid expenses | $30,821 | $29,611 |
Income tax refunds receivable | 655 | 7,334 |
Inventories | 25,198 | 27,008 |
Aircraft parts inventory held on consignment | 2,278 | 2,404 |
Work-in-process inventory, net | 5,772 | 28,444 |
Joint venture receivables | 1,497 | 2,251 |
Assets held for sale | 0 | 3,017 |
Other current assets | 7,979 | 24,441 |
Total prepaid expenses and other current assets | $74,200 | $124,510 |
Composition_of_Certain_Financi3
Composition of Certain Financial Statement Captions (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ||
Helicopters | $7,108 | $4,007 |
Computers and other equipment | 11,061 | 14,258 |
Leasehold improvements | 19,055 | 17,585 |
Office furniture and fixtures | 4,203 | 3,006 |
Gross property and equipment | 41,427 | 38,856 |
Less accumulated depreciation | -17,641 | -14,736 |
Total property and equipment, net | $23,786 | $24,120 |
Composition_of_Certain_Financi4
Composition of Certain Financial Statement Captions (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other assets, net | ||
Deferred financing costs, net | $11,775 | $17,526 |
Investment in affiliates | 8,191 | 13,477 |
Palm promissory notes, long-term portion | 2,853 | 2,731 |
Other | 4,697 | 5,447 |
Total other assets, net | $27,516 | $39,181 |
Composition_of_Certain_Financi5
Composition of Certain Financial Statement Captions (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Wages, compensation and other benefits | $74,416 | $93,007 |
Accrued vacation | 18,889 | 20,383 |
Accrued contributions to employee benefit plans | 402 | 944 |
Total accrued payroll and employee costs | $93,707 | $114,334 |
Composition_of_Certain_Financi6
Composition of Certain Financial Statement Captions (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ||
Customer liability | $22,635 | $61,856 |
Accrued insurance | 20,551 | 40,120 |
Accrued interest | 24,250 | 24,641 |
Unrecognized tax benefit | 7,999 | 10,132 |
Contract losses | 27,864 | 13,738 |
Legal reserves | 8,657 | 14,147 |
Subcontractor retention | 1,761 | 4,300 |
Financed insurance | 2,055 | 6,162 |
Other | 14,254 | 25,437 |
Total accrued liabilities | $130,026 | $200,533 |
Composition_of_Certain_Financi7
Composition of Certain Financial Statement Captions (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Helicopter | Helicopter | ||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Maximum percentage of prepaid expense on current assets | 5.00% | ||
Number of helicopters | 7 | ||
Value of helicopters | $2,000,000 | $5,600,000 | |
Helicopters deployed | 2 | ||
Helicopters sold previously held in inventory | 1 | ||
Helicopters disassembled into parts | 4 | ||
Number of helicopters classified as held-for-sale | 6 | ||
Helicopters sold | 6 | ||
Proceeds from sale of helicopters | 2,000,000 | ||
Impairment of goodwill, intangible and long lived assets | 1,000,000 | ||
Aircraft parts inventory held on consignment | 2,278,000 | 2,404,000 | |
Accrual for property additions | 800,000 | 3,800,000 | |
Depreciation expense | 5,700,000 | 5,900,000 | 5,700,000 |
Deferred financing cost | 6,100,000 | 6,800,000 | 7,700,000 |
Investment in affiliates | 5,600,000 | 2,200,000 | |
Other liabilities | 11,300,000 | 7,600,000 | |
Long-term postemployment benefit obligation | 3,900,000 | ||
Postemployment benefit expense | 15,500,000 | 7,300,000 | |
Other Accrued Liabilities [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Lease vacancy obligations, net of estimated sublease rental assumptions | 1,700,000 | 7,800,000 | |
Employee Relocation [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Relocation expense | 600,000 | 3,900,000 | |
Employee Severance [Member] | Selling, General and Administrative Expenses [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Restructuring reserve | 10,600,000 | 900,000 | |
Tysons Corner [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Long-term lease obligation | 4,300,000 | 4,700,000 | |
Term Loan Facility [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Reduction in deferred financing cost | 1,400,000 | 700,000 | |
Loss from Catastrophes [Member] | |||
Composition of Certain Financial Statement Captions (Textual) [Abstract] | |||
Loss contingency accrual | $9,800,000 |
Goodwill_Other_Intangible_Asse2
Goodwill, Other Intangible Assets, and Long-Lived Assets (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Oct. 31, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Jun. 27, 2014 |
Goodwill balances for segments | ||||||
Balance | $293,767 | |||||
Impairment of goodwill, intangibles and long lived assets | -164,879 | -44,594 | ||||
Balance | 128,888 | |||||
DynAviation [Member] | ||||||
Goodwill balances for segments | ||||||
Balance | 160,932 | 442,393 | ||||
Impairment of goodwill, intangibles and long lived assets | -74,137 | -11,400 | -50,800 | -281,461 | ||
Balance | 86,795 | 160,932 | ||||
DynLogistics [Member] | ||||||
Goodwill balances for segments | ||||||
Balance | 161,659 | |||||
Impairment of goodwill, intangibles and long lived assets | -28,824 | -90,742 | ||||
Balance | 42,093 | 132,835 | ||||
All Segments [Member] | ||||||
Goodwill balances for segments | ||||||
Balance | 604,052 | |||||
Impairment of goodwill, intangibles and long lived assets | -310,285 | |||||
Balance | $293,767 |
Goodwill_Other_Intangible_Asse3
Goodwill, Other Intangible Assets, and Long-Lived Assets (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Information about changes relating to certain intangible assets | |||
Gross carrying value, indefinite | $28,762 | $43,464 | |
Impairment, indefinite | -6,069 | ||
Customer-related intangible assets [Member] | |||
Information about changes relating to certain intangible assets | |||
Weighted Average Useful Life (Years) | 4 years 7 months 6 days | 5 years 7 months 6 days | |
Gross carrying value, finite | 350,912 | 350,912 | |
Accumulated amortization, finite | -178,126 | -138,623 | |
Total intangible asset, impairment | -33,388 | ||
Net, finite | 139,398 | 212,289 | |
Other Intangible Assets [Member] | |||
Information about changes relating to certain intangible assets | |||
Weighted Average Useful Life (Years) | 4 years 9 months 18 days | 6 years 3 months 18 days | |
Gross carrying value, finite | 15,418 | 22,042 | |
Accumulated amortization, finite | -10,395 | -14,151 | |
Total intangible asset, impairment | -33,388 | ||
Net, finite | 5,023 | 7,891 | |
Indefinite-lived intangible assets | 5,059 | 5,059 | |
Total intangible asset, gross | 371,389 | 378,013 | |
Total intangible asset, accumulated amortization | -188,521 | -152,774 | |
Total intangible asset, net | 149,480 | 225,239 | |
Tradenames [Member] | |||
Information about changes relating to certain intangible assets | |||
Weighted Average Useful Life (Years) | 4 months 24 days | 1 year 4 months 24 days | |
Accumulated amortization, finite | -807 | -627 | |
Total intangible asset, impairment | -14,522 | ||
Net, finite | 62 | 242 | |
Gross carrying value, finite | 869 | 869 | |
Gross carrying value, indefinite | 43,222 | 43,222 | |
Impairment, indefinite | -14,522 | ||
Net, indefinite | 28,700 | ||
Total intangible asset, gross | 44,091 | 44,091 | |
Total intangible asset, accumulated amortization | -807 | -627 | |
Total intangible asset, net | $28,762 | $43,464 |
Goodwill_Other_Intangible_Asse4
Goodwill, Other Intangible Assets, and Long-Lived Assets (Details 2) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Future amortization based upon the finite-lived intangible assets owned and the finite-lived tradenames | ||
Estimate for calendar year 2015 | $32,264 | [1] |
Estimate for calendar year 2016 | 29,465 | [1] |
Estimate for calendar year 2017 | 26,880 | [1] |
Estimate for calendar year 2018 | 23,908 | [1] |
Estimate for calendar year 2019 | 21,463 | [1] |
Thereafter | $10,503 | [1] |
[1] | The future amortization is inclusive of the finite lived intangible-assets and finite-lived tradename. |
Goodwill_Other_Intangible_Asse5
Goodwill, Other Intangible Assets, and Long-Lived Assets (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Sep. 26, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | Dec. 31, 2014 | |
operating_and_reporting_segment | operating_and_reporting_segment | reporting_unit | reporting_unit | |||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Number of operating and reportable segment | 2 | 2 | ||||||
Impairment of goodwill, intangibles and long lived assets | $164,879,000 | $44,594,000 | ||||||
Amortization expense | 44,000,000 | 44,300,000 | 46,100,000 | |||||
Goodwill and Other Intangible Assets (Additional Textual) [Abstract] | ||||||||
Capitalized software net value | 5,000,000 | 7,900,000 | 5,000,000 | |||||
DynAviation [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Number of new segments | 2 | |||||||
Impairment of goodwill, intangibles and long lived assets | 74,137,000 | 281,461,000 | 11,400,000 | 50,800,000 | ||||
Goodwill, estimated fair value exceeding carrying value, percentage | 15.00% | 15.00% | ||||||
DynLogistics [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Number of new segments | 3 | 3 | ||||||
Carry value of goodwill | 120,600,000 | |||||||
Impairment of goodwill, intangibles and long lived assets | 28,824,000 | 90,742,000 | ||||||
Air Wing [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Impairment of goodwill, intangibles and long lived assets | 12,000,000 | |||||||
Scenario, Previously Reported [Member] | DynLogistics [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Number of new segments | 2 | |||||||
Customer Relationships [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Impairment of goodwill, intangibles and long lived assets | 33,400,000 | |||||||
Trade Names [Member] | ||||||||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||||||
Impairment of goodwill, intangibles and long lived assets | $14,500,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Domestic and foreign components of Income (loss) before income taxes | |||
Domestic | ($286,799) | ($286,989) | $6,567 |
Foreign | -1,391 | 27 | 5,739 |
(Loss) income before income taxes | ($288,190) | ($286,962) | $12,306 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current portion: | |||
Federal | $311 | $0 | $0 |
State | -800 | -784 | -500 |
Foreign | -3,363 | -16,045 | -4,342 |
Total income tax of current portion | -3,852 | -16,829 | -4,842 |
Deferred portion: | |||
Federal | 23,001 | 52,574 | -9,996 |
State | 739 | 1,086 | -101 |
Foreign | 682 | 630 | -659 |
Total Income tax of Deferred portion | 24,422 | 54,290 | -10,756 |
Benefit (provision) from income taxes | $20,570 | $37,461 | ($15,598) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets related to: | ||
Workers' compensation accrual | $5,046 | $10,788 |
Accrued vacation | 4,734 | 5,055 |
Completion bonus allowance | 6,001 | 3,539 |
Accrued severance | 3,751 | 193 |
Accrued executive incentives | 2,151 | 4,538 |
Legal reserve | 3,099 | 1,559 |
Accrued health costs | 799 | 1,704 |
Suspended loss from consolidated partnership | 0 | 5,421 |
Contract loss reserve | 11,684 | 8,877 |
Other accrued liabilities and reserves | 26,261 | 18,539 |
Partnership / joint venture basis differences | 3,072 | 0 |
Foreign tax credit carryforward | 16,336 | 17,880 |
Net operating loss carryforward | 979 | 1,096 |
Other carryforwards | 704 | 656 |
Uncertain tax positions | 5,649 | 7,471 |
Goodwill and other intangible assets | 44,201 | 0 |
Valuation allowance | -47,808 | 0 |
Total deferred tax assets | 86,659 | 87,316 |
Deferred tax liabilities related to: | ||
Partnership / joint venture basis differences | 0 | -150 |
Prepaid insurance | -5,242 | -6,976 |
Goodwill and other intangible assets | -31,806 | -25,101 |
Unbilled receivables | -75,392 | -103,413 |
Total deferred tax liabilities | -112,440 | -135,640 |
Total deferred tax liabilities, net | ($25,781) | ($48,324) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax liabilities, net | ($31,477) | ($30,965) |
Non-current deferred tax assets (liabilities), net | 5,696 | -17,359 |
Total deferred tax liabilities, net | ($25,781) | ($48,324) |
Income_Taxes_Details_4
Income Taxes (Details 4) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Income Tax Disclosure [Abstract] | ||||||
Statutory rate | 35.00% | 35.00% | 35.00% | |||
State income tax, less effect of federal deduction | 0.00% | 0.10% | 4.90% | |||
Noncontrolling interests | 0.30% | 0.50% | -16.10% | |||
Goodwill impairment | -11.20% | [1] | -22.60% | [1] | 70.60% | [1] |
Uncertain tax positions | 0.10% | -0.10% | 13.70% | |||
Nondeductible expenses | -0.80% | -0.40% | 9.00% | |||
Penalties | 0.00% | 0.00% | 5.80% | |||
Valuation allowance | -16.20% | 0.00% | 0.00% | |||
Other | -0.10% | 0.60% | 3.80% | |||
Effective tax rate | 7.10% | 13.10% | 126.70% | |||
[1] | Includes non-cash impairment charges to goodwill associated with our DynAviation and DynLogistics segments for years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. See Note 3 for further discussion. |
Income_Taxes_Details_5
Income Taxes (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||
Unrecognized income tax benefits, beginning balance | $9,473 | $8,234 |
Additions for tax positions related to prior years | 0 | 1,686 |
Reductions for tax positions of prior years | -447 | -447 |
Settlements | -1,375 | 0 |
Remeasurements | -311 | 0 |
Net releases | 0 | 0 |
Lapse of statute of limitations | 0 | 0 |
Unrecognized income tax benefits, ending balance | $7,340 | $9,473 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 22, 2014 | Feb. 23, 2014 | 31-May-14 | |
Income Taxes (Textual) [Abstract] | ||||||
Valuation allowance | $47,808,000 | $0 | ||||
Income taxes paid | 0 | 6,900,000 | ||||
Unrecognized tax benefit | 7,340,000 | 9,473,000 | 8,234,000 | |||
Unrecognized tax benefits if recognized, affect effective tax rate | 2,300,000 | 2,700,000 | ||||
Expected unrecognized tax benefit, inclusive of penalties, to be settled within 12 months | 8,000,000 | |||||
Net decrease in Interest and penalty expense | 100,000 | |||||
Cumulative penalties recognized | 700,000 | |||||
Taxes and penalties sought | 3,000,000 | |||||
Foreign [Member] | ||||||
Income Taxes (Textual) [Abstract] | ||||||
Tax credit carry forwards | 16,300,000 | 17,900,000 | ||||
Taxes and penalties sought | 64,200,000 | |||||
Refund adjustment from settlement with taxing authority | 54,000,000 | |||||
State [Member] | ||||||
Income Taxes (Textual) [Abstract] | ||||||
Operating losses | 123,600,000 | 138,300,000 | ||||
Other Matters [Member] | Afghanistan [Member] | Foreign [Member] | ||||||
Income Taxes (Textual) [Abstract] | ||||||
Taxes and penalties sought | $10,200,000 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $448,496 | $577,136 |
Billed [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | 146,286 | 179,586 |
Unbilled [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net of allowances | $302,210 | $397,550 |
Accounts_Receivable_Details_Te
Accounts Receivable (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
contract_claim | |||
Accounts Receivable (Textual) [Abstract] | |||
Unbilled receivables | $50.70 | $41.60 | |
Number of contract claims | 4 | ||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Accounts Receivable [Member] | |||
Accounts Receivable (Textual) [Abstract] | |||
Concentration risk, percentage | 59.00% | 84.00% | |
LOGCAP IV [Member] | Accounts Receivable [Member] | |||
Accounts Receivable (Textual) [Abstract] | |||
Concentration risk, percentage | 20.00% | 34.00% |
Retirement_Plans_Details
Retirement Plans (Details) (Pension Fund [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Pension Fund [Member] | ||||||
Schedule of pension fund | ||||||
Pension Protection Act Zone Status | Green | [1] | Green | [1] | Green | [1] |
FIR/RP Status Pending / Implemented | No | |||||
Contributions of DynCorp International | $6,845 | $6,062 | $4,686 | |||
Surcharge Imposed | No | |||||
Expiration Date of CBA | 5/15/2015 through 3/30/2018 | |||||
[1] | Unless otherwise noted, the most recent PPA zone status available in 2014, 2013 and 2012, is for the plan’s year-end status for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. The zone status is based on information we receive from the plan and is certified by the plan's actuary. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. |
Retirement_Plans_Details_Textu
Retirement Plans (Details Textual) (USD $) | 7 Months Ended | 12 Months Ended | 5 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | |
agreement | |||||
Retirement Plans (Textual) [Abstract] | |||||
Current maximum contribution per employee | $17,500 | ||||
Investment in various funds | 12,750 | ||||
Savings Plan expense | 11,900,000 | 16,100,000 | 18,200,000 | ||
Number of collective-bargaining agreements | 13 | ||||
Collective-bargaining agreements contribution | 14,100,000 | 14,100,000 | |||
Contributions to the IAMNPF | 36.30% | ||||
Maximum funding status percentage for red zone | 65.00% | ||||
Minimum funding status percentage for yellow zone | 65.00% | ||||
Maximum funding status percentage for yellow zone | 80.00% | ||||
Minimum funding status percentage for green zone | 80.00% | ||||
Maximum [Member] | |||||
Retirement Plans (Textual) [Abstract] | |||||
Contributions by participants under the plan | 50.00% | ||||
Company matching contributions, Maximum | 100.00% | 100.00% | |||
Employee matching contributions, Minimum | 4.00% | 6.00% | |||
Investment in various funds | $12,750 | ||||
Minimum [Member] | |||||
Retirement Plans (Textual) [Abstract] | |||||
Contributions by participants under the plan | 1.00% | ||||
Company matching contributions, Minimum | 50.00% | 50.00% | |||
Employee matching contributions, Maximum | 2.00% | 2.00% | |||
Management [Member] | Nonqualified Unfunded Deferred Compensation Plan [Member] | |||||
Retirement Plans (Textual) [Abstract] | |||||
Deferral amount limitation of salary, percentage | 50.00% | ||||
Deferral amount limitation of bonuses, percentage | 100.00% | ||||
Vested percentage of participants at all times | 100.00% | ||||
Requisite period | 6 months | ||||
Annual installment payments, option one, term | 5 years | ||||
Annual installment payments, option two, term | 10 years |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-Term Debt | ||
Long-term debt | $642,272 | $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 | $187,272 | $277,272 |
LongTerm_Debt_LongTerm_Debt_2_
Long-Term Debt Long-Term Debt 2 (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Maximum total leverage ratio for period ended December 31, 2014 | 5.55 |
Maximum total leverage ratio for period ended March 27, 2015 | 6.65 |
Maximum total leverage ratio for period ended June 26, 2015 | 7.7 |
Maximum total leverage ratio for period ended September 25, 2015 | 8.1 |
Maximum total leverage ratio for period ended December 31, 2015 | 7.75 |
Maximum total leverage ratio for period ended March 25, 2016 | 7.6 |
Maximum total leverage ratio for period ended June 24, 2016 | 6.9 |
Maximum total leverage ratio for period ended June 25, 2016 and thereafter | 6.6 |
Interest coverage ratio for period ending December 31, 2014 | 1.05 |
Interest coverage ratio for period ending March 25, 2016 | 1.15 |
Interest coverage ratio for period ending June 24, 2016 | 1.2 |
Interest coverage ratio for period ending June 25, 2016 and thereafter | 1.3 |
LongTerm_Debt_LongTerm_Debt_3_
Long-Term Debt Long-Term Debt 3 (Details) (Ten Point Three Seven Five Percentage Senior Unsecured Notes [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
2014 [Member] | |
Debt Instrument [Line Items] | |
Redemption price, percentage of principal | 105.19% |
2015 [Member] | |
Debt Instrument [Line Items] | |
Redemption price, percentage of principal | 102.59% |
2016 and thereafter [Member] | |
Debt Instrument [Line Items] | |
Redemption price, percentage of principal | 100.00% |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 05, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 10, 2010 | |
Long-Term Debt (Additional Textual) [Abstract] | ||||
Line of credit facility, maximum borrowing | $181,000,000 | |||
Line of credit facility, reduction in facility percentage | 20.00% | |||
Line of credit facility, reduction in facility | 36,200,000 | |||
Line of credit facility, forgiveness of one time charge | 35,000,000 | |||
Long-term debt | 642,272,000 | 732,272,000 | ||
Additional available borrowing capacity | 108,100,000 | 144,600,000 | ||
Debt less unrestricted cash and cash equivalents | 75,000,000 | |||
Line of credit fronting fee rate | 0.25% | |||
Prepayments of term loan | 90,000,000 | 50,000,000 | ||
Maximum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Debt less unrestricted cash and cash equivalents | 75,000,000 | |||
Base Rate [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Minimum Spread Over Other Variable Rates | 1.00% | |||
Floor variable Base Rate | 2.75% | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Floor for euro currency rate | 1.75% | |||
Term Loan Facility [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Reduction in deferred financing cost | 1,400,000 | 700,000 | ||
Term Loan Facility [Member] | Base Rate [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 3.50% | |||
Term Loan Facility [Member] | Eurocurrency Rate [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 4.50% | |||
Revolving Credit Facility [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Line of credit facility, maximum borrowing | 144,800,000 | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Revolver rate | 0.75% | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Revolver rate | 0.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 3.50% | |||
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 3.00% | |||
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | Maximum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 4.50% | |||
Revolving Credit Facility [Member] | Eurocurrency Rate [Member] | Minimum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 4.00% | |||
Letter of Credit [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Line of credit facility, maximum borrowing | 100,000,000 | |||
Additional available borrowing capacity | 36,700,000 | 36,400,000 | ||
Revolver rate | 0.50% | 0.50% | ||
Applicable interest rates for letter of credit sub-facility | 4.00% | 4.25% | ||
Letter of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 4.50% | |||
Letter of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Applicable margin for term loan | 4.00% | |||
Term loan [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Long-term debt | 187,272,000 | 277,272,000 | ||
Percentage of actual interest rate under the Term Loan | 6.25% | 6.25% | ||
10.375% senior unsecured notes [Member] | ||||
Long-Term Debt (Additional Textual) [Abstract] | ||||
Long-term debt | 455,000,000 | 455,000,000 | ||
Debt amount | 455,000,000 | |||
Percentage of senior unsecured notes | 10.38% | |||
Maturity period of quarterly principle payments | 1-Jul-17 | |||
Trigger amount of asset sales and change of control events for repurchase of notes at defined prices | $15,000,000 | |||
Repurchase of debt, percent of principle | 100.00% | |||
Repurchase of senior unsecured notes | 101.00% | |||
Market value of unsecured loans as, a percentage of stated value | 82.00% | 103.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Summary of Minimum fixed rentals non-cancelable under operating leases | ||
2015 | $30,515 | [1] |
2016 | 15,225 | |
2017 | 12,474 | |
2018 | 9,060 | |
2019 | 4,225 | |
Thereafter | 13,911 | |
Total | 85,410 | |
Real Estate [Member] | ||
Summary of Minimum fixed rentals non-cancelable under operating leases | ||
2015 | 24,698 | [1] |
2016 | 11,839 | |
2017 | 10,041 | |
2018 | 9,060 | |
2019 | 4,225 | |
Thereafter | 13,911 | |
Total | 73,774 | |
Equipment [Member] | ||
Summary of Minimum fixed rentals non-cancelable under operating leases | ||
2015 | 5,817 | [1] |
2016 | 3,386 | |
2017 | 2,433 | |
2018 | 0 | |
2019 | 0 | |
Thereafter | 0 | |
Total | $11,636 | |
[1] | The minimum lease table above excludes agreements of one year or less in duration. These leases are accounted for in our rent expense, however, because of the short tenure of the lease, these are not reflected in the table above. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 5 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||
Apr. 30, 2013 | Dec. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jan. 22, 2014 | 31-May-14 | Jan. 22, 2014 | Feb. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 26, 2008 | Apr. 24, 2007 | Apr. 24, 2007 | Jan. 12, 2010 | Sep. 12, 2012 | 9-May-12 | 9-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 26, 2014 | Mar. 24, 2015 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum [Member] | Minimum [Member] | California Policy [Member] | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | Regulatory Assessment, Income Tax, Penalties and Other Matters [Member] | Other Matters [Member] | Loss from Catastrophes [Member] | Pending Litigation [Member] | Pending Litigation [Member] | DynCorp International Inc. [Member] | DynCorp International Inc. [Member] | DynCorp International Inc. [Member] | DynCorp International Inc. [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Al Hamed [Member] | Subsequent Event [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Foreign Tax Authority [Member] | Foreign Tax Authority [Member] | USD ($) | Unfavorable Regulatory Action [Member] | Loss from Catastrophes [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Dismissed Cases [Member] | AED | USD ($) | AED | USD ($) | USD ($) | Judicial Ruling [Member] | Al Hamed [Member] | ||||||
Afghanistan [Member] | Afghanistan [Member] | USD ($) | USD ($) | Consolidated Ecuadorean Cases [Member] | Consolidated Ecuadorean Cases [Member] | Cases on Behalf of Provinces of Esmeraldas, Sucumbios, Carchi (Ecuador) [Member] | Consolidated Ecuadorean Cases [Member] | USD ($) | Dismissed Cases [Member] | |||||||||||||||||
USD ($) | USD ($) | Plaintiffs | lawsuit | lawsuit | Plaintiffs | USD ($) | ||||||||||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||||||||||||||||
Lease rental expense | $95,500,000 | $167,600,000 | $217,400,000 | |||||||||||||||||||||||
Other accrued liabilities | 8,657,000 | 14,147,000 | ||||||||||||||||||||||||
Number of lawsuits filed | 4 | 3 | ||||||||||||||||||||||||
Number of individual plaintiffs | 3,266 | 1,256 | ||||||||||||||||||||||||
Contract violations and conversion of funds and asserted damages | 150,000,000 | |||||||||||||||||||||||||
Contract limits to damages maximum amount | 3,000,000 | 64,200,000 | 64,200,000 | 10,200,000 | 57,000,000 | 23,300,000 | ||||||||||||||||||||
Loss contingency, damages awarded, value | 8,200,000 | 2,200,000 | 8,200,000 | 3,750,000 | ||||||||||||||||||||||
Interest and expenses | 5.00% | 5.00% | ||||||||||||||||||||||||
Litigation settlement, amount | 3,600,000 | |||||||||||||||||||||||||
Loss contingency accrual | 9,800,000 | 9,800,000 | ||||||||||||||||||||||||
Loss contingency reasonably possible, amount | 7,700,000 | |||||||||||||||||||||||||
Cost incurred on war reserve materiel program | 152,000,000 | |||||||||||||||||||||||||
Period of war reserve materiel program | 2000 to 2011 | |||||||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | 1,800,000 | |||||||||||||||||||||||||
Refund adjustment from settlement with taxing authority | -54,000,000 | |||||||||||||||||||||||||
Fixed amount of stop loss coverage on policies | $1,000,000 | $750,000 | $250,000 | $250,000 |
Equity_Textual_Details
Equity - Textual (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 17, 2013 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 30, 2011 | Dec. 31, 2010 | Mar. 31, 2010 |
Equity (Textual) [Abstract] | ||||||||||
Common stock, shares issued | 100 | 100 | 100 | 100 | ||||||
Common stock, shares outstanding | 100 | 100 | 100 | |||||||
Capital contribution in connection with merger | $550.90 | $550.90 | ||||||||
Common stock, shares authorized | 1,000 | 1,000 | 1,000 | |||||||
Expected life (in years) | 2 years 9 months 18 days | 4 years | ||||||||
Total grant date fair value | 4.6 | 1.5 | ||||||||
Total compensation cost expensed | 3.2 | 0.5 | ||||||||
Restrictive covenant agreement, period to reach agreement | 14 days | |||||||||
Common Class B [Member] | ||||||||||
Equity (Textual) [Abstract] | ||||||||||
Common stock, shares issued | 4,339 | 3,144 | 4,339 | |||||||
Common stock, shares authorized | 100,000 | |||||||||
Expected life (in years) | 4 years | |||||||||
Total compensation cost expensed | $0.40 | |||||||||
Total compensation costs of nonvested options, recognition period | 1 year 2 months 5 days | |||||||||
Common Class B-1 Interest [Member] | ||||||||||
Equity (Textual) [Abstract] | ||||||||||
Common stock, shares authorized | 7,246 | |||||||||
Number of investing installments | 5 | |||||||||
Vesting percentage | 20.00% | 30.00% | 40.00% | 40.00% | ||||||
Shares granted, weighted average grant date fair value (in dollars per share) | $819.26 | $32.73 | ||||||||
Common Class B-2 Interests [Member] | ||||||||||
Equity (Textual) [Abstract] | ||||||||||
Common stock, shares authorized | 380 | |||||||||
Shares granted, weighted average grant date fair value (in dollars per share) | $258.30 | |||||||||
Period One [Member] | Common Class B-1 Interest [Member] | ||||||||||
Equity (Textual) [Abstract] | ||||||||||
Vesting percentage | 20.00% | 20.00% | 20.00% | |||||||
Period Two [Member] | Common Class B-1 Interest [Member] | ||||||||||
Equity (Textual) [Abstract] | ||||||||||
Vesting percentage | 20.00% |
Equity_Equity_Details
Equity Equity (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding at beginning of period (in shares) | 3,144 | 0 |
Shares granted (in shares) | 4,339 | 3,144 |
Shares exercised (in shares) | 0 | 0 |
Shares forfeited and expired (in shares) | -1,582 | |
Options outstanding at end of period (in shares) | 5,901 | 3,144 |
Common Class B-1 Interest [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares granted (in shares) | 4,339 | 2,764 |
Common Class B-2 Interests [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Shares granted (in shares) | 0 | 380 |
Equity_Details_2
Equity (Details 2) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | ||
Expected volatility | 36.00% | 33.50% |
Risk-free interest rate | 1.10% | 1.70% |
Expected yield | 8.00% | 8.00% |
Expected life (in years) | 2 years 9 months 18 days | 4 years |
Forfeiture rate | 8.00% | 8.00% |
Equity_Details_3
Equity (Details 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested shares at beginning of period (in shares) | 2,123 | 0 |
Shares granted (in shares) | 4,339 | 3,144 |
Shares vested (in shares) | -3,646 | -1,021 |
Shares forfeited (in shares) | -1,582 | 0 |
Non-vested shares at end of period (in shares) | 1,234 | 2,123 |
Fair_Value_of_Financial_Assets2
Fair Value of Financial Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $642,272 | $732,272 |
Long-term debt, fair value | 558,968 | 747,308 |
10.375% senior unsecured notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 455,000 | 455,000 |
Long-term debt, fair value | 373,100 | 468,650 |
Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 187,272 | 277,272 |
Long-term debt, fair value | $185,868 | $278,658 |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Summary of the financial information of the reportable segments reconciled | ||||||
Total Revenue | $2,252,309 | $3,287,184 | $4,044,275 | |||
Operating (loss) income | -219,946 | -206,780 | 95,883 | |||
Total depreciation and amortization | 49,707 | [1] | 50,279 | [1] | 51,814 | [1] |
DynAviation [Member] | ||||||
Summary of the financial information of the reportable segments reconciled | ||||||
Total Revenue | 1,204,417 | [2] | 1,373,635 | [2] | 1,338,514 | [2] |
Operating (loss) income | -61,501 | [2] | -194,701 | [2] | 105,327 | [2] |
Total depreciation and amortization | 1,665 | [2] | 1,628 | [2] | 685 | [2] |
DynLogistics [Member] | ||||||
Summary of the financial information of the reportable segments reconciled | ||||||
Total Revenue | 1,045,200 | [2] | 1,920,715 | [2] | 2,709,469 | [2] |
Operating (loss) income | -67,097 | [2] | 36,243 | [2] | 48,941 | [2] |
Total depreciation and amortization | 55 | [2] | 543 | [2] | 1,043 | [2] |
Headquarters/ Other [Member] | ||||||
Summary of the financial information of the reportable segments reconciled | ||||||
Total Revenue | 2,692 | [3] | -7,166 | [3] | -3,708 | [3] |
Operating (loss) income | -91,348 | [4] | -48,322 | [4] | -58,385 | [4] |
Total depreciation and amortization | $47,987 | $48,108 | $50,086 | |||
[1] | Includes amounts in Cost of services of $1.1 million, $1.7 million and $1.6 million for the years ended December 31, 2014, December 31, 2013 and December 31, 2012, respectively. | |||||
[2] | DynGlobal revenue, operating loss, and depreciation and amortization for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 is immaterial and included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | |||||
[3] | Represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. | |||||
[4] | Headquarters operating loss primarily relates to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers. |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | ||||||
ASSETS | ||||||
Total assets | $982,487 | $1,499,921 | $1,970,716 | |||
DynAviation [Member] | ||||||
ASSETS | ||||||
Total assets | 393,246 | [1] | 447,646 | [1] | 706,646 | [1] |
DynLogistics [Member] | ||||||
ASSETS | ||||||
Total assets | 299,961 | [1] | 591,304 | [1] | 800,734 | [1] |
Headquarters/ Other [Member] | ||||||
ASSETS | ||||||
Total assets | $289,280 | [2] | $460,971 | [2] | $463,336 | [2] |
[1] | DynGlobal assets for the years ended December 31, 2014, December 31, 2013 and December 31, 2012 are included within DynAviation and DynLogistics due to the amended organizational structure. See Note 3 for further discussion of our organizational structure. | |||||
[2] | Assets primarily include cash, investments in unconsolidated subsidiaries, net deferred tax liabilities, intangible assets (excluding goodwill) and deferred debt issuance costs. |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Details 2) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Summary of Revenue by geography | ||||||
Total Revenue | $2,252,309 | $3,287,184 | $4,044,275 | |||
Revenue, percentage | 100.00% | 100.00% | 100.00% | |||
United States [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 612,220 | 695,772 | 635,293 | |||
Revenue, percentage | 27.00% | 21.00% | 16.00% | |||
Afghanistan [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 1,003,205 | 1,845,234 | 2,436,714 | |||
Revenue, percentage | 45.00% | 56.00% | 60.00% | |||
Middle East [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 387,021 | [1] | 534,861 | [1] | 730,372 | [1] |
Revenue, percentage | 17.00% | [1] | 16.00% | [1] | 18.00% | [1] |
Other Americas [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 84,424 | 87,759 | 106,160 | |||
Revenue, percentage | 4.00% | 3.00% | 3.00% | |||
Europe [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 53,853 | 52,365 | 51,209 | |||
Revenue, percentage | 2.00% | 2.00% | 1.00% | |||
Asia Pacific [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | 41,953 | 46,170 | 44,000 | |||
Revenue, percentage | 2.00% | 1.00% | 1.00% | |||
Other Countries [Member] | ||||||
Summary of Revenue by geography | ||||||
Total Revenue | $69,633 | $25,023 | $40,527 | |||
Revenue, percentage | 3.00% | 1.00% | 1.00% | |||
[1] | The Middle East includes but is not limited to activities in Iraq, Oman, Qatar, United Arab Emirates, Kuwait, Palestine, Sudan, Pakistan, Jordan, Lebanon, Bahrain, Saudi Arabia, Turkey and Egypt. The vast majority of all assets owned by the Company were located in the U.S. as of December 31, 2014. |
Segment_and_Geographic_Informa5
Segment and Geographic Information (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
operating_and_reporting_segment | operating_and_reporting_segment | |||
Segment Reporting Information (Textual) [Abstract] | ||||
Number of operating and reportable segment | 2 | 2 | ||
Cost of services | $1.10 | $1.70 | $1.60 | |
Revenue, percentage | 100.00% | 100.00% | 100.00% | |
Accounts Receivable [Member] | ||||
Segment Reporting Information (Textual) [Abstract] | ||||
Revenue, percentage | 59.00% | 84.00% | ||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||
Segment Reporting Information (Textual) [Abstract] | ||||
Revenue, percentage | 94.00% | 96.00% | 97.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Segment Reporting Information (Textual) [Abstract] | ||||
Accounts receivable due from the U.S. government | 88.00% | 92.00% |
Related_Parties_Joint_Ventures2
Related Parties, Joint Ventures and Variable Interest Entities (Details) | 0 Months Ended | 12 Months Ended |
Jan. 18, 2013 | Dec. 31, 2014 | |
Partnership for Temporary Housing LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 30.00% | 30.00% |
Contingency Response Services LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 45.00% | |
Global Response Services LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 51.00% | |
Global Linguist Solutions LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 51.00% | |
DynCorp International FZ-LLC [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 25.00% | |
Babcock DynCorp Limited [Member] | ||
Variable Interest Entity ownership percentages | ||
Variable Interest Entity ownership percentage | 44.00% |
Related_Parties_Joint_Ventures3
Related Parties, Joint Ventures and Variable Interest Entities (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Selected financial information for related parties and equity method investees | |||
Total assets | $982,487,000 | $1,499,921,000 | $1,970,716,000 |
Total liabilities | 1,059,764,000 | 1,310,261,000 | |
Revenue | 2,252,309,000 | 3,287,184,000 | 4,044,275,000 |
DynCorp International FZ-LLC [Member] | |||
Selected financial information for related parties and equity method investees | |||
Total assets | 4,700,000 | 25,900,000 | |
Total liabilities | 1,500,000 | 22,200,000 | |
Revenue | 297,700,000 | 414,400,000 | 510,100,000 |
Equity Method Investee [Member] | |||
Selected financial information for related parties and equity method investees | |||
Current assets | 65,800,000 | 86,300,000 | |
Total assets | 65,900,000 | 86,300,000 | |
Current liabilities | 44,400,000 | 46,400,000 | |
Total liabilities | 44,400,000 | 44,500,000 | |
Revenue | 233,100,000 | 203,100,000 | 234,500,000 |
Gross profit | 20,700,000 | 15,900,000 | 17,100,000 |
Net income | $14,400,000 | $10,700,000 | $13,400,000 |
Related_Parties_Joint_Ventures4
Related Parties, Joint Ventures and Variable Interest Entities (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2006 | Aug. 31, 2010 | Feb. 28, 2014 | Jan. 18, 2013 | Feb. 28, 2012 | Oct. 31, 2011 | |
executive | partner | partner | partner | ||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Cerberus Consulting fees | $4,900,000 | $4,600,000 | $3,300,000 | ||||||
Number of Executives on Advisory Board | 3 | ||||||||
Administrative fees expense | 1,300,000 | ||||||||
Receivables due from related parties | 1,500,000 | 2,300,000 | |||||||
Receivables from unconsolidated joint ventures totaled | 3,900,000 | 8,600,000 | 4,200,000 | ||||||
Earnings from equity method investees | 10,077,000 | 4,570,000 | 825,000 | ||||||
Revenue | 2,252,309,000 | 3,287,184,000 | 4,044,275,000 | ||||||
Operating income | -219,946,000 | -206,780,000 | 95,883,000 | ||||||
Aggregate initial value of promissory note from Palm | 9,200,000 | ||||||||
Outstanding balance of loan | 2,900,000 | 3,500,000 | |||||||
Investment in affiliates | 8,191,000 | 13,477,000 | |||||||
Contingency Response LLC [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Number of partners | 2 | ||||||||
Global Response Services LLC [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Number of partners | 1 | ||||||||
Variable Interest Entity ownership percentage | 51.00% | ||||||||
GLS [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Variable Interest Entity ownership percentage | 51.00% | ||||||||
Earnings from equity method investees | 9,600,000 | ||||||||
Revenue | 20,500,000 | 21,800,000 | 61,100,000 | ||||||
Operating income | -6,000,000 | -3,600,000 | 3,300,000 | ||||||
Dividends paid to parent | 18,800,000 | ||||||||
Amount of Form 1 issued by DCAA | 95,900,000 | ||||||||
Amount of second Form 1 issued by DCAA | 102,000,000 | ||||||||
Loss contingency, outstanding invoices withheld, amount | 300,000 | ||||||||
Loss contingency, submitted invoices after settlement, amount | 19,100,000 | ||||||||
Partnership for Temporary Housing LLC [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Number of partners | 2 | ||||||||
Variable Interest Entity ownership percentage | 30.00% | 30.00% | |||||||
Global Linguist Solutions LLC [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Variable Interest Entity ownership percentage | 51.00% | ||||||||
DynCorp International FZ-LLC [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Vested ownership percentage | 25.00% | ||||||||
Revenue | 297,700,000 | 414,400,000 | 510,100,000 | ||||||
Includes operationally integral and non-integral income [Member] | |||||||||
Related Parties, Joint Ventures and Variable Interest Entities (Textual) [Abstract] | |||||||||
Earnings from equity method investees | $12,400,000 | $3,700,000 | $4,800,000 |
Collaborative_Arrangements_Det
Collaborative Arrangements (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Collaborative Arrangements (Textual) [Abstract] | |||
Revenue | $2,252,309 | $3,287,184 | $4,044,275 |
Cost of services | 2,072,865 | 2,987,253 | 3,698,932 |
Net loss | -267,620 | -249,501 | -3,292 |
Collaborative Arrangement [Member] | |||
Collaborative Arrangements (Textual) [Abstract] | |||
Current share of profit | 70.00% | ||
Revenue | 561,900 | 1,210,400 | 1,771,900 |
Cost of services | 526,900 | 1,120,500 | 1,652,200 |
Net loss | $2,100 | $37,000 | $64,100 |
Consolidating_Financial_Statem2
Consolidating Financial Statements of Subsidiary Guarantors (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statement of Operations Information | |||
Revenue | $2,252,309 | $3,287,184 | $4,044,275 |
Cost of services | -2,072,865 | -2,987,253 | -3,698,932 |
Selling, general and administrative expenses | -146,881 | -149,925 | -149,362 |
Depreciation and amortization expense | -48,582 | -48,628 | -50,260 |
Earnings from equity method investees | 10,077 | 4,570 | 825 |
Impairment of goodwill | -164,879 | -44,594 | |
Impairment of goodwill, intangibles and long lived assets | -214,004 | -312,728 | -50,663 |
Impairment of intangibles | -6,069 | ||
Operating (loss) income | -219,946 | -206,780 | 95,883 |
Interest expense | -70,783 | -78,826 | -86,272 |
Loss on early extinguishment of debt, net | -1,362 | -703 | -2,094 |
Interest income | 221 | 157 | 117 |
Other income (expense), net | 3,680 | -810 | 4,672 |
(Loss) income before income taxes | -288,190 | -286,962 | 12,306 |
Income tax benefit | 20,570 | 37,461 | -15,598 |
Net loss | -267,620 | -249,501 | -3,292 |
Noncontrolling interests | -2,160 | -4,235 | -5,645 |
Net loss attributable to Delta Tucker Holdings, Inc. | -269,780 | -253,736 | -8,937 |
Parent Company [Member] | |||
Condensed Consolidating Statement of Operations Information | |||
Equity in income of consolidated subsidiaries | -269,780 | -253,736 | -8,937 |
(Loss) income before income taxes | -269,780 | -253,736 | -8,937 |
Income tax benefit | 0 | 0 | 0 |
Net loss | -269,780 | -253,736 | -8,937 |
Net loss attributable to Delta Tucker Holdings, Inc. | -8,937 | ||
Subsidiary Issuer [Member] | |||
Condensed Consolidating Statement of Operations Information | |||
Interest expense | -68,221 | -75,001 | -80,078 |
Loss on early extinguishment of debt, net | -1,362 | -703 | -2,094 |
Equity in income of consolidated subsidiaries | -224,551 | -204,678 | -16,604 |
(Loss) income before income taxes | -294,134 | -280,382 | -98,776 |
Income tax benefit | 24,354 | 26,646 | 89,839 |
Net loss | -269,780 | -253,736 | -8,937 |
Net loss attributable to Delta Tucker Holdings, Inc. | -269,780 | -253,736 | -8,937 |
Subsidiary Guarantors [Member] | |||
Condensed Consolidating Statement of Operations Information | |||
Revenue | 2,268,349 | 3,298,767 | 4,077,449 |
Cost of services | -2,092,339 | -3,006,723 | -3,743,400 |
Selling, general and administrative expenses | -146,623 | -148,962 | -149,236 |
Depreciation and amortization expense | -47,979 | -48,028 | -49,658 |
Earnings from equity method investees | 489 | 1,510 | 825 |
Impairment of goodwill | -44,594 | ||
Impairment of goodwill, intangibles and long lived assets | -214,004 | -312,728 | |
Impairment of intangibles | -6,069 | ||
Operating (loss) income | -232,107 | -216,164 | 85,317 |
Interest expense | -2,562 | -3,825 | -6,194 |
Interest income | 198 | 130 | 108 |
Equity in income of consolidated subsidiaries | 10,174 | 5,097 | 4,050 |
Other income (expense), net | 3,736 | -998 | 4,814 |
(Loss) income before income taxes | -220,561 | -215,760 | 88,095 |
Income tax benefit | -3,990 | 11,082 | -104,699 |
Net loss | -224,551 | -204,678 | -16,604 |
Net loss attributable to Delta Tucker Holdings, Inc. | -224,551 | -204,678 | -16,604 |
Subsidiary Non-Guarantors [Member] | |||
Condensed Consolidating Statement of Operations Information | |||
Revenue | 315,551 | 445,144 | 538,118 |
Cost of services | -312,110 | -437,375 | -514,653 |
Selling, general and administrative expenses | -265 | -845 | -12,297 |
Depreciation and amortization expense | -603 | -600 | -602 |
Earnings from equity method investees | 9,588 | 3,060 | |
Operating (loss) income | 12,161 | 9,384 | 10,566 |
Interest income | 23 | 27 | 9 |
Other income (expense), net | -56 | 188 | -142 |
(Loss) income before income taxes | 12,128 | 9,599 | 10,433 |
Income tax benefit | 206 | -267 | -738 |
Net loss | 12,334 | 9,332 | 9,695 |
Noncontrolling interests | -2,160 | -4,235 | -5,645 |
Net loss attributable to Delta Tucker Holdings, Inc. | 10,174 | 5,097 | 4,050 |
Eliminations [Member] | |||
Condensed Consolidating Statement of Operations Information | |||
Revenue | -331,591 | -456,727 | -571,292 |
Cost of services | 331,584 | 456,845 | 559,121 |
Selling, general and administrative expenses | 7 | -118 | 12,171 |
Equity in income of consolidated subsidiaries | 484,157 | 453,317 | 21,491 |
(Loss) income before income taxes | 484,157 | 453,317 | 21,491 |
Net loss | 484,157 | 453,317 | 21,491 |
Net loss attributable to Delta Tucker Holdings, Inc. | $484,157 | $453,317 | $21,491 |
Consolidating_Financial_Statem3
Consolidating Financial Statements of Subsidiary Guarantors (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | ($267,620) | ($249,501) | ($3,292) |
Other comprehensive income | |||
Foreign currency translation adjustment | -131 | -437 | 225 |
Other comprehensive (loss) income , before tax | -131 | -437 | 225 |
Income tax (expense) benefit related to items of other comprehensive income | 47 | 157 | -83 |
Other comprehensive (loss) income | -84 | -280 | 142 |
Comprehensive loss | -267,704 | -249,781 | -3,150 |
Noncontrolling interest | -2,160 | -4,235 | -5,645 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -269,864 | -254,016 | -8,795 |
Parent Company [Member] | |||
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | -269,780 | -253,736 | -8,937 |
Other comprehensive income | |||
Foreign currency translation adjustment | -131 | -437 | 225 |
Other comprehensive (loss) income , before tax | -131 | -437 | 225 |
Income tax (expense) benefit related to items of other comprehensive income | 47 | 157 | -83 |
Other comprehensive (loss) income | -84 | -280 | 142 |
Comprehensive loss | -269,864 | -254,016 | -8,795 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -269,864 | -254,016 | -8,795 |
Subsidiary Issuer [Member] | |||
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | -269,780 | -253,736 | -8,937 |
Other comprehensive income | |||
Foreign currency translation adjustment | -131 | -437 | 225 |
Other comprehensive (loss) income , before tax | -131 | -437 | 225 |
Income tax (expense) benefit related to items of other comprehensive income | 47 | 157 | -83 |
Other comprehensive (loss) income | -84 | -280 | 142 |
Comprehensive loss | -269,864 | -254,016 | -8,795 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -269,864 | -254,016 | -8,795 |
Subsidiary Guarantors [Member] | |||
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | -224,551 | -204,678 | -16,604 |
Other comprehensive income | |||
Foreign currency translation adjustment | -242 | 123 | |
Other comprehensive (loss) income , before tax | -242 | 123 | |
Income tax (expense) benefit related to items of other comprehensive income | 86 | -45 | |
Other comprehensive (loss) income | -156 | 78 | |
Comprehensive loss | -224,551 | -204,834 | -16,526 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | -224,551 | -204,834 | -16,526 |
Subsidiary Non-Guarantors [Member] | |||
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | 12,334 | 9,332 | 9,695 |
Other comprehensive income | |||
Foreign currency translation adjustment | -131 | -195 | 102 |
Other comprehensive (loss) income , before tax | -131 | -195 | 102 |
Income tax (expense) benefit related to items of other comprehensive income | 47 | 70 | -38 |
Other comprehensive (loss) income | -84 | -125 | 64 |
Comprehensive loss | 12,250 | 9,207 | 9,759 |
Noncontrolling interest | -2,160 | -4,235 | -5,645 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | 10,090 | 4,972 | 4,114 |
Eliminations [Member] | |||
Condensed Consolidating Statement of Comprehensive Income | |||
Net loss | 484,157 | 453,317 | 21,491 |
Other comprehensive income | |||
Foreign currency translation adjustment | 262 | 874 | -450 |
Other comprehensive (loss) income , before tax | 262 | 874 | -450 |
Income tax (expense) benefit related to items of other comprehensive income | -94 | -313 | 166 |
Other comprehensive (loss) income | 168 | 561 | -284 |
Comprehensive loss | 484,325 | 453,878 | 21,207 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | $484,325 | $453,878 | $21,207 |
Consolidating_Financial_Statem4
Consolidating Financial Statements of Subsidiary Guarantors (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 30, 2011 |
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers (to) from Parent Subsidiary | $0 | $0 | ||
Current assets: | ||||
Cash and cash equivalents | 94,004 | 170,845 | 118,775 | 70,205 |
Restricted cash | 707 | 1,659 | ||
Accounts receivable, net of allowances | 448,496 | 577,136 | ||
Prepaid expenses and other current assets | 74,200 | 124,510 | ||
Deferred taxes | 0 | |||
Total current assets | 617,407 | 874,150 | ||
Long-term restricted cash | 952 | 0 | ||
Property and equipment, net | 23,786 | 24,120 | ||
Goodwill | 128,888 | 293,767 | ||
Tradenames, net | 28,762 | 43,464 | ||
Other intangibles, net | 149,480 | 225,239 | ||
Long-term deferred taxes | 5,696 | |||
Other assets, net | 27,516 | 39,181 | ||
Total assets | 982,487 | 1,499,921 | 1,970,716 | |
Current liabilities: | ||||
Accounts payable | 146,546 | 193,146 | ||
Accrued payroll and employee costs | 93,707 | 114,334 | ||
Deferred income taxes | 31,477 | 30,965 | ||
Other accrued liabilities | 130,026 | 200,533 | ||
Income taxes payable | 4,424 | 14,020 | ||
Total current liabilities | 406,180 | 552,998 | ||
Long-term debt | 642,272 | 732,272 | ||
Long-term deferred taxes | -5,696 | 17,359 | ||
Other long-term liabilities | 11,312 | 7,632 | ||
Noncontrolling interests | 5,489 | 5,875 | ||
Stockholders (Deficit) Equity | -82,766 | 183,785 | ||
Total liabilities and (deficit) equity | 982,487 | 1,499,921 | ||
Net cash from investing activities | -4,674 | -7,971 | -12,163 | |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers (to) from Parent Subsidiary | 333 | 461 | 664 | |
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Investment in subsidiaries | 0 | 228,870 | ||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 558 | 891 | ||
Other assets, net | 891 | |||
Total assets | 558 | 229,761 | ||
Current liabilities: | ||||
Intercompany payables | 45,643 | 45,976 | ||
Other accrued liabilities | 37,681 | |||
Total current liabilities | 83,324 | 45,976 | ||
Stockholders (Deficit) Equity | -82,766 | 183,785 | ||
Total liabilities and (deficit) equity | 558 | 229,761 | ||
Net cash from investing activities | 0 | 0 | 0 | |
Subsidiary Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers (to) from Parent Subsidiary | -60,455 | -20,597 | 13,223 | |
Current assets: | ||||
Investment in subsidiaries | 805,417 | 1,095,853 | ||
Other assets, net | 11,775 | 17,525 | ||
Total assets | 817,192 | 1,113,378 | ||
Current liabilities: | ||||
Intercompany payables | 188,466 | 128,011 | ||
Other accrued liabilities | 24,135 | 24,225 | ||
Total current liabilities | 212,601 | 152,236 | ||
Long-term debt | 642,272 | 732,272 | ||
Stockholders (Deficit) Equity | -37,681 | 228,870 | ||
Total liabilities and (deficit) equity | 817,192 | 1,113,378 | ||
Subsidiary Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers from (to) Parent | -60,122 | -9,939 | 12,159 | |
Net Transfers (to) from Parent Subsidiary | -20,372 | -7,856 | 9,196 | |
Current assets: | ||||
Cash and cash equivalents | 87,300 | 144,025 | 74,907 | 45,724 |
Restricted cash | 707 | 1,659 | ||
Accounts receivable, net of allowances | 452,938 | 596,901 | ||
Intercompany receivables | 234,109 | 173,987 | ||
Prepaid expenses and other current assets | 73,456 | 123,761 | ||
Deferred taxes | 0 | |||
Total current assets | 848,510 | 1,040,333 | ||
Long-term restricted cash | 952 | |||
Property and equipment, net | 23,615 | 23,797 | ||
Goodwill | 96,489 | 261,367 | ||
Tradenames, net | 28,762 | 43,464 | ||
Other intangibles, net | 148,825 | 224,152 | ||
Investment in subsidiaries | 55,087 | 45,383 | ||
Long-term deferred taxes | 5,696 | |||
Other assets, net | 15,183 | 20,765 | ||
Total assets | 1,223,119 | 1,659,261 | ||
Current liabilities: | ||||
Accounts payable | 146,016 | 192,456 | ||
Accrued payroll and employee costs | 84,725 | 111,547 | ||
Intercompany payables | 28,231 | 7,857 | ||
Deferred income taxes | 31,453 | 30,960 | ||
Other accrued liabilities | 105,404 | 175,796 | ||
Income taxes payable | 5,072 | 13,926 | ||
Total current liabilities | 400,901 | 532,542 | ||
Long-term deferred taxes | 17,359 | |||
Other long-term liabilities | 11,312 | 7,632 | ||
Noncontrolling interests | 5,489 | 5,875 | ||
Stockholders (Deficit) Equity | 805,417 | 1,095,853 | ||
Total liabilities and (deficit) equity | 1,223,119 | 1,659,261 | ||
Net cash from investing activities | -64,796 | -17,886 | 57 | |
Subsidiary Non-Guarantors [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers from (to) Parent | -20,372 | -7,857 | 9,196 | |
Net Transfers (to) from Parent Subsidiary | 0 | 10,196 | -1,728 | |
Current assets: | ||||
Cash and cash equivalents | 6,704 | 26,820 | 43,868 | 24,481 |
Accounts receivable, net of allowances | 719 | 1,990 | ||
Intercompany receivables | 28,231 | 7,857 | ||
Prepaid expenses and other current assets | 1,217 | 456 | ||
Deferred taxes | 0 | |||
Total current assets | 36,871 | 37,123 | ||
Property and equipment, net | 171 | 323 | ||
Goodwill | 32,399 | 32,400 | ||
Other intangibles, net | 655 | 1,087 | ||
Total assets | 70,096 | 70,933 | ||
Current liabilities: | ||||
Accounts payable | 1,253 | 2,243 | ||
Accrued payroll and employee costs | 13,296 | 22,770 | ||
Intercompany payables | 0 | |||
Deferred income taxes | 24 | 5 | ||
Other accrued liabilities | 436 | 438 | ||
Income taxes payable | 94 | |||
Total current liabilities | 15,009 | 25,550 | ||
Stockholders (Deficit) Equity | 55,087 | 45,383 | ||
Total liabilities and (deficit) equity | 70,096 | 70,933 | ||
Net cash from investing activities | -20,372 | -7,881 | 9,135 | |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net Transfers from (to) Parent | 80,494 | 17,796 | -21,355 | |
Net Transfers (to) from Parent Subsidiary | 80,494 | 17,796 | -21,355 | |
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Accounts receivable, net of allowances | -5,161 | -21,755 | ||
Intercompany receivables | -262,340 | -181,844 | ||
Prepaid expenses and other current assets | -473 | 293 | ||
Total current assets | -267,974 | -203,306 | ||
Investment in subsidiaries | -860,504 | -1,370,106 | ||
Total assets | -1,128,478 | -1,573,412 | ||
Current liabilities: | ||||
Accounts payable | -723 | -1,553 | ||
Accrued payroll and employee costs | -4,314 | -19,983 | ||
Intercompany payables | -262,340 | -181,844 | ||
Other accrued liabilities | -37,630 | 74 | ||
Income taxes payable | -648 | |||
Total current liabilities | -305,655 | -203,306 | ||
Stockholders (Deficit) Equity | -822,823 | -1,370,106 | ||
Total liabilities and (deficit) equity | -1,128,478 | -1,573,412 | ||
Net cash from investing activities | $80,494 | $17,796 | ($21,355) |
Consolidating_Financial_Statem5
Consolidating Financial Statements of Subsidiary Guarantors (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | $25,377 | $137,502 | $144,190 |
Cash flows from investing activities | |||
Purchase of property and equipment, net | -8,712 | -7,628 | -5,528 |
Proceeds from sale of property, plant, and equipment | 44 | 182 | 25 |
Cash paid for acquisition, net of cash acquired | 0 | 0 | -11,746 |
Purchase of software | -1,631 | -2,718 | -2,590 |
Return of capital from equity method investees | 5,625 | 2,223 | 9,154 |
Contributions to equity method investees | 0 | -30 | -1,478 |
Net cash used in investing activities | -4,674 | -7,971 | -12,163 |
Cash flows from financing activities | |||
Borrowings on long-term debt | 118,000 | 745,900 | 325,000 |
Payments on long-term debt | -208,000 | -796,537 | -415,000 |
Payments of deferred financing cost | -1,740 | -2,139 | 0 |
Borrowings related to financed insurance | 20,214 | 9,431 | 62,580 |
Payments related to financed insurance | -24,321 | -29,734 | -53,918 |
Payments of dividends to Parent | -1,697 | -4,382 | -2,119 |
Transfers (to) from affiliates | 0 | 0 | |
Net cash used in financing activities | -97,544 | -77,461 | -83,457 |
Net change in cash and cash equivalent | -76,841 | 52,070 | 48,570 |
Cash and cash equivalents, beginning of period | 170,845 | 118,775 | 70,205 |
Cash and cash equivalents, end of period | 94,004 | 170,845 | 118,775 |
Parent Company [Member] | |||
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | 333 | 461 | 664 |
Cash flows from investing activities | |||
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Transfers (to) from affiliates | -333 | -461 | -664 |
Net cash used in financing activities | -333 | -461 | -664 |
Net change in cash and cash equivalent | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Subsidiary Issuer [Member] | |||
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | 29,545 | 30,040 | 103,223 |
Cash flows from financing activities | |||
Borrowings on long-term debt | 118,000 | 745,900 | 325,000 |
Payments on long-term debt | -208,000 | -796,537 | -415,000 |
Transfers (to) from affiliates | 60,455 | 20,597 | -13,223 |
Net cash used in financing activities | -29,545 | -30,040 | -103,223 |
Subsidiary Guarantors [Member] | |||
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | -6,454 | 101,590 | 29,660 |
Cash flows from investing activities | |||
Purchase of property and equipment, net | -8,712 | -7,604 | -5,467 |
Proceeds from sale of property, plant, and equipment | 44 | 182 | 25 |
Cash paid for acquisition, net of cash acquired | -11,746 | ||
Purchase of software | -1,631 | -2,718 | -2,590 |
Return of capital from equity method investees | 5,625 | 2,223 | 9,154 |
Contributions to equity method investees | -30 | -1,478 | |
Net Transfer (to) from affiliates | -60,122 | -9,939 | 12,159 |
Net cash used in investing activities | -64,796 | -17,886 | 57 |
Cash flows from financing activities | |||
Payments of deferred financing cost | -1,740 | -2,139 | |
Borrowings related to financed insurance | 20,214 | 9,431 | 62,580 |
Payments related to financed insurance | -24,321 | -29,734 | -53,918 |
Transfers (to) from affiliates | 20,372 | 7,856 | -9,196 |
Net cash used in financing activities | 14,525 | -14,586 | -534 |
Net change in cash and cash equivalent | -56,725 | 69,118 | 29,183 |
Cash and cash equivalents, beginning of period | 144,025 | 74,907 | 45,724 |
Cash and cash equivalents, end of period | 87,300 | 144,025 | 74,907 |
Subsidiary Non-Guarantors [Member] | |||
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | 3,650 | 9,793 | 13,309 |
Cash flows from investing activities | |||
Purchase of property and equipment, net | -24 | -61 | |
Net Transfer (to) from affiliates | -20,372 | -7,857 | 9,196 |
Net cash used in investing activities | -20,372 | -7,881 | 9,135 |
Cash flows from financing activities | |||
Payments of dividends to Parent | -3,394 | -8,764 | -4,785 |
Transfers (to) from affiliates | 0 | -10,196 | 1,728 |
Net cash used in financing activities | -3,394 | -18,960 | -3,057 |
Net change in cash and cash equivalent | -20,116 | -17,048 | 19,387 |
Cash and cash equivalents, beginning of period | 26,820 | 43,868 | 24,481 |
Cash and cash equivalents, end of period | 6,704 | 26,820 | 43,868 |
Eliminations [Member] | |||
Condensed Consolidating Statement of Cash Flow Information | |||
Net cash (used in) provided by operating activities | -1,697 | -4,382 | -2,666 |
Cash flows from investing activities | |||
Net Transfer (to) from affiliates | 80,494 | 17,796 | -21,355 |
Net cash used in investing activities | 80,494 | 17,796 | -21,355 |
Cash flows from financing activities | |||
Payments of dividends to Parent | 1,697 | 4,382 | 2,666 |
Transfers (to) from affiliates | -80,494 | -17,796 | 21,355 |
Net cash used in financing activities | -78,797 | -13,414 | 24,021 |
Net change in cash and cash equivalent | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | |
Cash and cash equivalents, end of period | $0 | $0 | $0 |
Consolidating_Financial_Statem6
Consolidating Financial Statements of Subsidiary Guarantors (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 15, 2012 |
Consolidating Financial Statements of Subsidiary Guarantors (Textual) [Abstract] | |||
Percentage of ownership | 100.00% | 50.00% | |
Guarantor Subsidiaries [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Intercompany Transfers of Previously Reported Financing Activities That Are Currently Reported as Investing Activities | $38.90 |
Condensed_Financial_Informatio1
Condensed Financial Information of Registrant - Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Total assets | $982,487 | $1,499,921 | $1,970,716 |
LIABILITIES AND EQUITY | |||
Liabilities | 406,180 | 552,998 | |
Stockholders (Deficit) Equity | -82,766 | 183,785 | |
Total liabilities and (deficit) equity | 982,487 | 1,499,921 | |
Parent Company [Member] | |||
ASSETS | |||
Other assets, net | 558 | 891 | |
Investment in subsidiaries | 0 | 228,870 | |
Total assets | 558 | 229,761 | |
LIABILITIES AND EQUITY | |||
Liabilities | 83,324 | 45,976 | |
Stockholders (Deficit) Equity | -82,766 | 183,785 | |
Total liabilities and (deficit) equity | $558 | $229,761 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Allowance for doubtful accounts: | ||||||
Valuation Allowances and Reserves, Beginning Balance | $1,621 | $1,481 | $1,947 | |||
Charged to Costs and Expense | 3,269 | 1,531 | 722 | |||
Deductions from Reserve (1) | -154 | [1] | -1,391 | [1] | -1,188 | [1] |
Valuation Allowances and Reserves, Balance, Ending Balance | $4,736 | $1,621 | $1,481 | |||
[1] | Deductions from reserve represents accounts written off, net of recoveries. |
Condensed_Financial_Informatio2
Condensed Financial Information of Registrant - Statement of Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Statement of Operations | |||
Income before income taxes | ($288,190) | ($286,962) | $12,306 |
Income tax benefit | 20,570 | 37,461 | -15,598 |
Net loss | -267,620 | -249,501 | -3,292 |
Guarantor Subsidiaries [Member] | |||
Condensed Statement of Operations | |||
Equity in income of subsidiaries, net of tax | 10,174 | 5,097 | 4,050 |
Income before income taxes | -220,561 | -215,760 | 88,095 |
Income tax benefit | -3,990 | 11,082 | -104,699 |
Net loss | -224,551 | -204,678 | -16,604 |
Subsidiary Issuer [Member] | |||
Condensed Statement of Operations | |||
Equity in income of subsidiaries, net of tax | -224,551 | -204,678 | -16,604 |
Income before income taxes | -294,134 | -280,382 | -98,776 |
Income tax benefit | 24,354 | 26,646 | 89,839 |
Net loss | -269,780 | -253,736 | -8,937 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Statement of Operations | |||
Income before income taxes | 12,128 | 9,599 | 10,433 |
Income tax benefit | 206 | -267 | -738 |
Net loss | 12,334 | 9,332 | 9,695 |
Consolidation, Eliminations [Member] | |||
Condensed Statement of Operations | |||
Equity in income of subsidiaries, net of tax | 484,157 | 453,317 | 21,491 |
Income before income taxes | 484,157 | 453,317 | 21,491 |
Net loss | 484,157 | 453,317 | 21,491 |
Parent Company [Member] | |||
Condensed Statement of Operations | |||
Equity in income of subsidiaries, net of tax | -269,780 | -253,736 | -8,937 |
Income before income taxes | -269,780 | -253,736 | -8,937 |
Income tax benefit | 0 | 0 | 0 |
Net loss | ($269,780) | ($253,736) | ($8,937) |
Condensed_Financial_Informatio3
Condensed Financial Information of Registrant - Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Statement of Cash Flow | |||
Net cash from operating activities | $25,377 | $137,502 | $144,190 |
Net cash from investing activities | -4,674 | -7,971 | -12,163 |
Net cash from financing activities | -97,544 | -77,461 | -83,457 |
Net change in cash and cash equivalent | -76,841 | 52,070 | 48,570 |
Cash and cash equivalents, beginning of period | 170,845 | 118,775 | 70,205 |
Cash and cash equivalents, end of period | 94,004 | 170,845 | 118,775 |
Parent Company [Member] | |||
Condensed Statement of Cash Flow | |||
Net cash from operating activities | 333 | 461 | 664 |
Net cash from investing activities | 0 | 0 | 0 |
Net cash from financing activities | -333 | -461 | -664 |
Net change in cash and cash equivalent | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | $0 |
Condensed_Financial_Informatio4
Condensed Financial Information of Registrant (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2010 | Dec. 31, 2014 |
Condensed Financial Information of Registrant (Textual) [Abstract] | ||
Capital contribution in connection with merger | $550.90 | $550.90 |