Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 15, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Delta Tucker Holdings, Inc. | |
Entity Central Index Key | 1,514,226 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 100 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 459,872 | $ 419,990 |
Cost of services | (399,477) | (372,498) |
Selling, general and administrative expenses | (31,719) | (34,090) |
Depreciation and amortization expense | (8,555) | (8,291) |
Earnings from equity method investees | 43 | 367 |
Operating income | 20,164 | 5,478 |
Interest expense | (18,715) | (15,968) |
Interest income | 5 | 60 |
Other income, net | 1,373 | 352 |
Income (loss) before income taxes | 2,827 | (10,078) |
Provision for income taxes | (3,039) | (4,494) |
Net loss | (212) | (14,572) |
Noncontrolling interests | (275) | (187) |
Net loss attributable to Delta Tucker Holdings, Inc. | $ (487) | $ (14,759) |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (212) | $ (14,572) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | 12 | 3 |
Other comprehensive loss, before tax | 12 | 3 |
Income tax expense related to items of other comprehensive loss | (4) | (1) |
Other comprehensive loss | 8 | 2 |
Comprehensive loss | (204) | (14,570) |
Comprehensive loss attributable to noncontrolling interests | (275) | (187) |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | $ (479) | $ (14,757) |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 107,207 | $ 118,218 |
Restricted cash | 2,504 | 7,664 |
Accounts receivable, net of allowances of $17,155 and $17,189 respectively | 306,030 | 300,255 |
Prepaid expenses and other current assets | 67,319 | 65,694 |
Total current assets | 483,060 | 491,831 |
Property and equipment, net | 17,020 | 16,636 |
Goodwill | 42,093 | 42,093 |
Tradenames, net | 28,536 | 28,536 |
Other intangibles, net | 75,956 | 84,069 |
Other assets, net | 12,880 | 13,372 |
Total assets | 659,545 | 676,537 |
Current liabilities: | ||
Current portion of long-term debt | 62,955 | 62,843 |
Accounts payable | 81,751 | 69,742 |
Accrued payroll and employee costs | 87,180 | 95,580 |
Accrued liabilities | 78,117 | 104,078 |
Income taxes payable | 11,188 | 9,303 |
Total current liabilities | 321,191 | 341,546 |
Long-term debt | 574,032 | 569,613 |
Long-term deferred taxes | 15,286 | 14,825 |
Other long-term liabilities | 11,408 | 12,490 |
Total liabilities | 921,917 | 938,474 |
DEFICIT | ||
Common stock, $0.01 par value – 1,000 shares authorized and 100 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 0 | 0 |
Additional paid-in capital | 555,202 | 555,163 |
Accumulated deficit | (822,532) | (822,045) |
Accumulated other comprehensive loss | (502) | (510) |
Total deficit attributable to Delta Tucker Holdings, Inc. | (267,832) | (267,392) |
Noncontrolling interests | 5,460 | 5,455 |
Total deficit | (262,372) | (261,937) |
Total liabilities and deficit | $ 659,545 | $ 676,537 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 17,155 | $ 17,189 |
Common stock, par value (in dollars per share) | $ 0.01000 | $ 0.01000 |
Common stock, shares authorized (in shares) | 1,000 | 1,000 |
Common stock, shares issued (in shares) | 100 | 100 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (212) | $ (14,572) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 8,898 | 8,516 |
Amortization of deferred loan costs and original issue discount | 1,341 | 1,522 |
Earnings from equity method investees | (43) | (367) |
Distributions from equity method investees | 222 | 0 |
Deferred income taxes | 460 | 2,525 |
Other | 38 | 142 |
Changes in assets and liabilities: | ||
Accounts receivable | (5,747) | 4,341 |
Prepaid expenses and other current assets | (1,843) | 4,608 |
Accounts payable and accrued liabilities | (20,054) | (39,313) |
Income taxes payable | 1,892 | 2,055 |
Net cash used in operating activities | (15,048) | (30,543) |
Cash flows from investing activities | ||
Purchase of property and equipment | (1,757) | (812) |
Proceeds from sale of property and equipment | 370 | 0 |
Purchase of software | (26) | (1,261) |
Cash restricted from Cerberus 3L Notes | 5,160 | 0 |
Return of capital from equity method investees | 1,269 | 0 |
Contributions to equity method investees | (900) | (1,225) |
Net cash provided by (used in) investing activities | 4,116 | (3,298) |
Cash flows from financing activities | ||
Equity contribution from affiliates of Cerberus | 100 | 250 |
Payment of dividends to noncontrolling interests | (179) | (404) |
Net cash used in financing activities | (79) | (154) |
Net decrease in cash and cash equivalents | (11,011) | (33,995) |
Cash and cash equivalents, beginning of period | 118,218 | 108,782 |
Cash and cash equivalents, end of period | 107,207 | 74,787 |
Income taxes paid (refund received), net of receipts | 775 | (3) |
Interest paid | $ 26,115 | $ 26,916 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Deficit - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ (261,937) | $ (208,170) |
Balance, (in shares) | 100 | |
Share based compensation, net | $ 11 | 9 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (204) | (14,570) |
Capital contribution | 100 | 250 |
DIFZ financing, net of tax | (72) | (40) |
Dividends declared to noncontrolling interests | (270) | (606) |
Balance | $ (262,372) | (223,127) |
Balance, (in shares) | 100 | |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 0 | $ 0 |
Balance, (in shares) | 0 | 0 |
Balance | $ 0 | $ 0 |
Balance, (in shares) | 0 | 0 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | $ 555,163 | $ 554,379 |
Share based compensation, net | 11 | 9 |
Capital contribution | 100 | 250 |
DIFZ financing, net of tax | (72) | (40) |
Balance | 555,202 | 554,598 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (822,045) | (767,981) |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (487) | (14,759) |
Balance | (822,532) | (782,740) |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (510) | (360) |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | 8 | 2 |
Balance | (502) | (358) |
Total Deficit Attributable to Delta Tucker Holdings, Inc. | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | (267,392) | (213,962) |
Share based compensation, net | 11 | 9 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (479) | (14,757) |
Capital contribution | 100 | 250 |
DIFZ financing, net of tax | (72) | (40) |
Balance | (267,832) | (228,500) |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance | 5,455 | 5,792 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | 275 | 187 |
Dividends declared to noncontrolling interests | (270) | (606) |
Balance | $ 5,460 | $ 5,373 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies Basis of Presentation Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp International Inc. ("DynCorp International"), through its subsidiaries (together, "the Company"), provides defense and technical services and government outsourced solutions primarily to U.S. government agencies domestically and internationally. The Company was incorporated in the state of Delaware on April 1, 2010. Our customers include the DoD, the U.S. Department of State ("DoS"), the U.S. Agency for International Development ("USAID"), foreign governments, commercial customers and certain other U.S. federal, state and local government departments and agencies. Unless the context otherwise indicates, references herein to "we," "our," "us," or "the Company" refer to Delta Tucker Holdings, Inc. and our consolidated subsidiaries. The unaudited condensed consolidated financial statements include the accounts of the Company and our domestic and foreign subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that all disclosures are adequate and do not make the information presented misleading. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, normal recurring adjustments necessary to fairly present our financial position as of March 31, 2017 and December 31, 2016 , the results of operations and statements of comprehensive loss for the three months ended March 31, 2017 and March 25, 2016 and the statements of deficit and cash flows for the three months ended March 31, 2017 and March 25, 2016 have been included. The results of operations and statements of comprehensive loss for the three months ended March 31, 2017 and March 25, 2016 and the statements of deficit and cash flows for the three months ended March 31, 2017 and March 25, 2016 are not necessarily indicative of the results to be expected for the full calendar year or for any future periods. We use estimates and assumptions required for preparation of the financial statements. The estimates are primarily based on historical experience and business knowledge and are revised as circumstances change. Our actual results may differ from these estimates. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of both our domestic and foreign subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company has investments in joint ventures that are variable interest entities ("VIEs"). The VIE investments are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 — Consolidation . In cases where the Company has (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, the Company consolidates the entity. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. We classify our equity method investees in two distinct groups based on management’s day-to-day involvement in the operations of each entity and the nature of each joint venture’s business. If the joint venture is deemed to be an extension of one of our segments and operationally integral to the business, our share of the joint venture’s earnings is reported within operating loss in Earnings from equity method investees in the consolidated statement of operations. If the Company considers our involvement less significant, the share of the joint venture’s net earnings is reported in Other income, net in the consolidated statement of operations. Noncontrolling Interests We record the impact of our partners' 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. We hold 25% ownership interest in DIFZ. We continue to consolidate DIFZ as we still exercise power over activities that significantly impact DIFZ’s economic performance and have the obligation to absorb losses or receive benefits of DIFZ that could potentially be significant to DIFZ. Noncontrolling interests is presented on the face of the statements of operations as an increase or reduction in arriving at "Net loss attributable to Delta Tucker Holdings, Inc." Noncontrolling interests is located in the equity section on the consolidated balance sheets. See Note 10 for further discussion regarding DIFZ. Use of Estimates The preparation of the financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the consolidated statements of operations in the period that they are determined. Changes in contract estimates related to certain types of contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can occur over the life of a contract for a variety of reasons, including changes in scope, estimated incentive or award fees, cost estimates, level of effort and/or other assumptions impacting revenue or cost to perform a contract. The gross favorable and unfavorable adjustments below reflect these changes in contract estimates during each reporting period, excluding new or completed contracts where no comparative estimates exist between reporting periods. The following table presents the aggregate gross favorable and unfavorable adjustments to income (loss) before income taxes resulting from changes in contract estimates, for the three months ended March 31, 2017 and March 25, 2016 . Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Gross favorable adjustments $ 9.3 $ 6.7 Gross unfavorable adjustments (1.2 ) (2.0 ) Net adjustments $ 8.1 $ 4.7 Accounting Policies There have been no material changes to our significant accounting policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2016 , except as described below. Recently Adopted Accounting Standards In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . ASU 2015-11 requires an entity who measures inventory using FIFO or average cost to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs. The update is effective for fiscal years beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2016 and applied prospectively. Early adoption is permitted, including adoption in an interim period. The Company adopted ASU 2015-11 on a prospective basis during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting . ASU 2016-07 simplifies the equity method by eliminating the requirement to apply it retrospectively to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments are effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016 and applied prospectively. Early adoption is permitted. The Company adopted ASU 2016-17 during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company elected to early adopt ASU 2017-01 during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. ASU 2017-04 modifies the concept of goodwill impairment to represent the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for goodwill impairment testing for interim and annual periods beginning after December 15, 2019, and requires a prospective transition. Early adoption is permitted for interim and annual goodwill impairment tests performed after January 1, 2017. The Company elected to early adopt ASU 2017-04 on a prospective basis during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. Recently Issued Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which outlines a single set of comprehensive principles for recognizing revenue under GAAP. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . ASU 2016-12 clarifies the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. These ASUs apply to all entities that enter into contracts with customers to transfer goods or services. These ASUs are effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. We are analyzing the impact of the new standard on the Company’s revenue contracts, comparing our current accounting policies and practices to the requirements of the new standard, and identifying potential differences that would result from applying the new standard to our contracts. We are also identifying and implementing changes to the Company’s business processes, systems and controls to support adoption of the new standard in calendar year 2018 and recasting prior periods’ financial information. In February 2016, the FASB issued ASU No. 2016-02, Leases . The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases . ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Entities are required to adopt ASU 2016-02 using a modified retrospective approach, subject to certain optional practice expedients, and apply the provisions of ASU 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the potential effects of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019 and applied using a prospective transition approach for debt securities for which an other-than-temporary impairment had been recognized before the effective date. We are currently evaluating the potential effects of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard is intended to reduce current diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and will require a retrospective approach. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential effects of the adoption of ASU 2016-15 on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-entity Asset Transfers of Assets Other than Inventory , which requires that an entity recognize the tax expense from the sale of intra-entity sales of assets, other than inventory, in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. ASU 2016-16 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the potential effects of the adoption of ASU 2016-16 on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 clarifies the guidance on the cash flow classification and presentation of changes in restricted cash or restricted cash equivalents . Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flow. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential effects of the adoption of ASU 2016-18 on our consolidated financial statements. Other accounting standards updates effective after March 31, 2017 are not expected to have a material effect on our consolidated financial position or results of operations and cash flows for the period ended March 31, 2017 . |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 3 Months Ended |
Mar. 31, 2017 | |
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 As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Prepaid expenses $ 42,585 $ 39,895 Inventories 18,656 18,451 Work-in-process inventory 279 164 Joint venture receivables 46 84 Other current assets 5,753 7,100 Total prepaid expenses and other current assets $ 67,319 $ 65,694 Prepaid expenses include prepaid insurance, prepaid vendor deposits, and prepaid rent, none of which individually exceed 5% of current assets. The increase in prepaid expenses is primarily due to the timing of payments. We value our inventory at lower of cost or net realizable value. Property and equipment, net As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Aircraft $ 3,881 $ 2,997 Computers and related equipment 7,318 7,161 Leasehold improvements 21,099 20,934 Office furniture and fixtures 5,490 5,499 Vehicles 3,370 3,430 Gross property and equipment 41,158 40,021 Less accumulated depreciation (24,138 ) (23,385 ) Total property and equipment, net $ 17,020 $ 16,636 As of March 31, 2017 and December 31, 2016 , Property and equipment, net, included the accrual for property additions of $0.1 million and $0.3 million , respectively. Depreciation expense, including certain depreciation amounts classified as Cost of services, was $1.0 million and $1.0 million during the three months ended March 31, 2017 and March 25, 2016 , respectively. Other assets, net As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Investment in affiliates $ 7,277 $ 7,825 Palm promissory note, long-term portion 2,033 2,034 Other 3,570 3,513 Total other assets, net $ 12,880 $ 13,372 Accrued payroll and employee costs As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Wages, compensation and other benefits $ 71,964 $ 82,062 Accrued vacation 14,397 12,462 Accrued contributions to employee benefit plans 819 1,056 Total accrued payroll and employee costs $ 87,180 $ 95,580 Accrued liabilities As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Customer liabilities $ 19,154 $ 20,762 Accrued insurance 23,853 26,201 Accrued interest 13,840 25,807 Contract losses 6,224 10,912 Legal reserves 4,419 4,597 Subcontractor retention — 250 Other 10,627 15,549 Total accrued liabilities $ 78,117 $ 104,078 Customer liabilities represent amounts received from customers in excess of revenue recognized or for amounts due back to a customer. The decrease in accrued insurance is primarily due to the timing of payments and the closing of certain insurance policies with our carriers. 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. Changes to the provision for contract losses are presented in Cost of services on our Statement of Operations. Legal matters include reserves related to various lawsuits and claims that arise in the normal course of business. See Note 8 for further discussion. Other is comprised primarily of accrued rent and workers' compensation related claims and other balances that are not individually material to the consolidated financial statements. Other long-term liabilities As of March 31, 2017 and December 31, 2016 , Other long-term liabilities were $11.4 million and $12.5 million , respectively. Other long-term liabilities are primarily due to our long-term incentive bonus plan and nonqualified unfunded deferred compensation plan of $3.5 million and $4.3 million as of March 31, 2017 and December 31, 2016 , respectively, and a long-term leasehold obligation related to our Tysons Corner facility in McLean, Virginia, of $3.2 million and $3.3 million as of March 31, 2017 and December 31, 2016 , respectively. Other long-term liabilities also include an uncertain tax benefit of $3.3 million and $3.3 million as of March 31, 2017 and December 31, 2016 , respectively. See Note 4 for further discussion. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets We have three operating and reporting segments, which provide services domestically and in foreign countries primarily under contracts with the U.S. government: Aviation Engineering, Logistics, and Sustainment ("AELS"), Aviation Operations and Life Cycle Management ("AOLC") and DynLogistics. Each operating and reportable segment is its own reporting unit. Of our three reporting units, only the DynLogistics reporting unit had a goodwill balance as of March 31, 2017 which we assess for potential goodwill impairment. The carrying amount of goodwill for DynLogistics was $42.1 million as of March 31, 2017 and December 31, 2016 , respectively. We assess goodwill and other intangible assets with indefinite lives for impairment annually in October or when an event occurs or circumstances change that would suggest a triggering event. If a triggering event is identified, a goodwill impairment test is performed to identify any possible impairment in the period in which the event is identified. In connection with our annual assessment of goodwill during the fourth quarter of each year, we update our key assumptions, including our forecasts of revenue and income for each reporting unit. The projections for these reporting units include significant estimates related to new business opportunities. If we are unsuccessful in obtaining these opportunities in 2017, a triggering event could be identified and a goodwill impairment test would be performed to identify any possible goodwill impairment in the period in which the event is identified. There can be no assurance that the estimates and assumptions regarding forecasted earnings and cash flows, the period of strength of the U.S. defense spending, and other inputs used in forecasting the present value of forecasted cash flows will prove to be accurate projections of future performance. During the three months ended March 31, 2017 , we did not have a triggering event in any of our reporting units. The following tables provide information about changes relating to certain intangible assets: As of March 31, 2017 (Amounts in thousands, except years) Weighted Average Remaining Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Other intangible assets: Customer-related intangible assets 2.7 $ 252,615 $ (179,835 ) $ 72,780 Other Finite-lived 1.1 13,799 (10,623 ) 3,176 Total other intangibles $ 266,414 $ (190,458 ) $ 75,956 Tradenames: Finite-lived 0.0 $ 869 $ (869 ) $ — Indefinite-lived 28,536 — 28,536 Total tradenames $ 29,405 $ (869 ) $ 28,536 As of December 31, 2016 (Amounts in thousands, except years) Weighted Gross Accumulated Net Other intangible assets: Customer-related intangible assets 3.0 $ 252,615 $ (172,242 ) $ 80,373 Other Finite-lived 1.0 14,238 (10,542 ) 3,696 Total other intangibles $ 266,853 $ (182,784 ) $ 84,069 Tradenames: Finite-lived 0.0 $ 869 $ (869 ) $ — Indefinite-lived 28,536 — 28,536 Total tradenames $ 29,405 $ (869 ) $ 28,536 Amortization expense for customer-related intangibles, other intangibles and finite-lived tradenames was $7.9 million and $7.5 million for the three months ended March 31, 2017 and March 25, 2016 , respectively. Other intangibles are primarily representative of our capitalized software which had a net carrying value of $3.2 million and $3.7 million as of March 31, 2017 and December 31, 2016 , respectively. Estimated aggregate future amortization expense for finite lived assets subject to amortization are $21.6 million for the nine months ending December 31, 2017 , $21.7 million in 2018, $21.5 million in 2019, $11.1 million in 2020, $0.1 million in 2021 and $0.0 million thereafter. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of Income (loss) before income taxes are as follows: Three Months Ended (Amounts in thousands) March 31, 2017 March 25, 2016 Domestic $ 2,784 $ (10,592 ) Foreign 43 514 Income (loss) before income taxes $ 2,827 $ (10,078 ) Non-current deferred tax liabilities, net, was $15.3 million and $14.8 million as of March 31, 2017 and December 31, 2016 , respectively. Our effective tax rate ("ETR") was 107.5% and (44.6)% for the three months ended March 31, 2017 and March 25, 2016 , respectively. For the three months ended March 31, 2017 , the ETR was primarily driven by an increase to the valuation allowance. 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, 2016 . 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. As a result of changes to our temporary tax differences including, but not limited to, the foreign tax credit, we increased our valuation allowance from $88.8 million as of December 31, 2016 to $89.9 million as of March 31, 2017 . As of both March 31, 2017 and December 31, 2016 , we had $2.6 million of total unrecognized tax benefits of which $2.3 million would impact our effective tax rate if recognized. We do not expect the unrecognized tax benefit and any related interest or penalties to be settled within the next twelve months. During the three months ended March 31, 2017 , we made no estimated federal income tax payments. All of our income taxes paid or refunds received during the three months ended March 31, 2017 were related to state or foreign jurisdictions. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Billed $ 114,445 $ 93,409 Unbilled 191,585 206,846 Total accounts receivable, net $ 306,030 $ 300,255 Unbilled receivables as of March 31, 2017 and December 31, 2016 include $29.0 million and $26.7 million , respectively, related to costs incurred on projects for which we have been requested by the customer to begin new work or extend work under an existing contract and for which formal contracts, contract modifications or other contract actions have not been executed as of the end of the respective periods. As of March 31, 2017 and December 31, 2016 , we had three contract claims outstanding totaling $2.6 million and $2.4 million , net of reserves, respectively. The balance of unbilled receivables consists of costs and fees that are: (i) billable immediately; (ii) billable on contract completion; or (iii) billable upon other specified events, such as the resolution of a request for equitable adjustment or formal claim. We expect for substantially all unbilled receivables to be billed and collected within one year, except items that may result in or that are currently involved in a request for equitable adjustment or formal claim. We do not believe we have significant exposure to credit risk as our receivables are primarily with the U.S. government. Our allowance for doubtful accounts was $17.2 million as of December 31, 2016 compared to $17.2 million as of March 31, 2017 , and is primarily due to outstanding receivables of approximately $26.0 million , net of reserves, for which we have yet to be paid where we operated under a subcontract for a prime contractor on a U.S. government program that ended December 31, 2014 . We are currently seeking payment through legal action to resolve the matter. See Note 8 for further discussion. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
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 Senior Unsecured Notes, 11.875% senior secured second lien notes (the "New Notes"), and New Senior Credit Facility (as defined in Note 7) is based on Level 1 and Level 2 inputs, as defined above. Our estimate of the fair value of our Cerberus 3L Notes (as defined in Note 7) is based on Level 3 inputs, as defined above. We used the following techniques in determining the fair value disclosed for the Cerberus 3L Notes classified as Level 3. The fair value as March 31, 2017 , has been calculated by discounting the expected cash flows using a discount rate of 17.9% . This discount rate is determined using the Moody's credit rating for the New Notes and reducing the rating one level lower for the Cerberus 3L Notes as they are subordinated to the New Notes. As Of March 31, 2017 December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value 10.375% senior unsecured notes $ 39,319 $ 39,122 $ 39,319 $ 37,132 11.875% senior secured second lien notes 376,185 357,376 373,385 343,282 Term loan 207,400 206,881 207,400 200,141 Cerberus 3L notes 31,221 9,746 30,831 9,624 Total indebtedness 654,125 613,125 650,935 590,179 Less current portion of long-term debt (64,433 ) (64,173 ) (64,433 ) (61,367 ) Total long-term debt $ 589,692 $ 548,952 $ 586,502 $ 528,812 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following: As of March 31, 2017 (Amounts in thousands) Carrying Amount Original Issue Discount on Term Loan Deferred Financing Costs, Net Carrying Amount less Original Issue Discount on Term Loan and Deferred Financing Costs, Net 10.375% senior unsecured notes $ 39,319 $ — $ — $ 39,319 11.875% senior secured second lien notes 376,185 — (1,481 ) 374,704 Term loan 207,400 (11,689 ) (3,890 ) 191,821 Cerberus 3L notes 31,221 — (78 ) 31,143 Total indebtedness 654,125 (11,689 ) (5,449 ) 636,987 Less current portion of long-term debt (64,433 ) 1,268 210 (62,955 ) Total long-term debt $ 589,692 $ (10,421 ) $ (5,239 ) $ 574,032 As of December 31, 2016 (Amounts in thousands) Carrying Amount Original Issue Discount on Term Loan Deferred Financing Costs, Net Carrying Amount less Original Issue Discount on Term Loan and Deferred Financing Costs, Net 10.375% senior unsecured notes $ 39,319 $ — $ — $ 39,319 11.875% senior secured second lien notes 373,385 — (1,581 ) 371,804 Term loan 207,400 (12,570 ) (4,248 ) 190,582 Cerberus 3L notes 30,831 — (80 ) 30,751 Total indebtedness 650,935 (12,570 ) (5,909 ) 632,456 Less current portion of long-term debt (64,433 ) 1,364 226 (62,843 ) Total long-term debt $ 586,502 $ (11,206 ) $ (5,683 ) $ 569,613 Deferred financing costs are amortized through interest expense. Amortization related to deferred financing costs was $0.5 million and $1.5 million during the three months ended March 31, 2017 and March 25, 2016 , respectively. New 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, N.A. as Administrative Agent (the "Agent"). On January 21, 2011 , August 10, 2011 , June 19, 2013 and November 5, 2014 , DynCorp International entered into amendments to the Senior Credit Facility. On April 30, 2016 , we entered into Amendment No. 5 ("Amendment No. 5") to the Senior Credit Facility which provided for a new senior secured credit facility (the "New Senior Credit Facility") upon the satisfaction of certain conditions, including the consummation of the Exchange Offer and the other Refinancing Transactions. Pursuant to Amendment No. 5, required lenders under the Senior Credit Facility agreed to temporarily waive the requirement to comply with the covenant that the Company’s annual financial statements include a report from its independent registered public accounting firm without a qualification as to the Company’s ability to continue as a going concern until the earlier of the effectiveness of the New Senior Credit Facility (at which time the temporary waiver of this requirement for the fiscal year ended December 31, 2015 would become permanent) and June 30, 2016 (the “Senior Credit Facility Waiver”). On June 15, 2016 , we satisfied the conditions set forth in Amendment No. 5, and therefore, on June 15, 2016 , the New Senior Credit Facility became effective, and the Senior Credit Facility Waiver for the year ended December 31, 2015 became permanent. On August 22, 2016 , we entered into Amendment No. 6 to the credit agreement governing the New Senior Credit Facility, which made certain technical amendments to the reporting covenant agreed to in Amendment No. 5. As amended, the covenant permits the Company’s annual financial statements to include a report from its independent registered public accounting firm with a qualification as to the Company’s ability to continue as a going concern for the fiscal year ending December 31, 2016 that relates solely to the maturity of the Senior Unsecured Notes, the Term Loan and/or the class B revolving facility. The New Senior Credit Facility is secured by substantially all of our assets and guaranteed by substantially all of our subsidiaries. As of March 31, 2017 , the New Senior Credit Facility provided for the following: • a $207.4 million term loan facility (the "Term Loan"); • a $85.8 million class B revolving facility (or "class B revolving commitments"); and • up to $15.0 million in incremental revolving facilities provided by and at the discretion of certain non-debt fund affiliates that are controlled by Cerberus (as defined herein), which shall rank pari passu with, and be on the same terms as, the class B revolving facility. The Term Loan was subject to a 700 basis point fee, totaling approximately $14.4 million , which is reflected as an original issue discount in the balance of the Term Loan as of March 31, 2017 . The original issue discount is amortized through interest expense. Amortization related to the original issue discount was $0.9 million during the three months ended March 31, 2017 . Our New Senior Credit Facility provided for a $24.8 million class A revolving facility, (or "class A revolving commitments") which terminated on July 7, 2016 (the class A and class B revolving commitments, together, the "Revolver"). Availability under the Revolver during the two years immediately after June 15, 2016 will be subject to a condition that, if, at the time of a request for revolving loans, the aggregate principal amount of revolving loans plus the face amount of outstanding letters of credit exceeds 50% of the aggregate amount of Revolver commitments at such time, the aggregate amount of unrestricted cash and cash equivalents of DynCorp International and its subsidiaries (giving pro forma effect to requested revolving loans and any application of proceeds thereof or other cash on hand) may not exceed $60 million . As of March 31, 2017 and December 31, 2016 , the available borrowing capacity under the New Senior Credit Facility was approximately $49.0 million and $48.0 million , respectively, and included $36.8 million and $37.8 million , respectively, in issued letters of credit. Amounts borrowed under the Revolver are used to fund operations. As of March 31, 2017 and December 31, 2016 there were no amounts borrowed under the Revolver. The class B revolving facility and the Term Loan mature on July 7, 2019 and July 7, 2020 , respectively. See further discussion of potential maturity date acceleration below. Interest Rates on Term Loan & Revolver Under the New Senior Credit Facility, the interest rate per annum applicable to the Term Loan is, at our option, equal to either the Base Rate or the Eurocurrency Rate, in each case, plus (i) 5.00% in the case of Base Rate loans and (ii) 6.00% in the case of Eurocurrency Rate loans. The interest rate per annum applicable to the class B revolving facility is, at our option, equal to either a Base Rate or a Eurocurrency Rate plus (i) a range of 4.50% to 5.00% based on the First-Lien Secured Leverage Ratio in the case of Base Rate loans and (ii) a range of 5.50% to 6.00% based on the First-Lien Secured Leverage Ratio in the case of Eurocurrency Rate loans. The First Lien Secured Leverage Ratio is calculated by the ratio of total first lien secured consolidated debt (net of up to $75 million of unrestricted cash and cash equivalents) to consolidated earnings before interest, taxes, depreciation and amortization ("Consolidated EBITDA"), as defined in the New Senior Credit Facility. The interest rate per annum applicable to the class A revolving commitments, which terminated on July 7, 2016 , remained the same as the revolving commitments under 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 New Senior Credit Facility, but not less than quarterly. Under the New Senior Credit Facility, the Base Rate is equal to the higher of (a) the Federal Funds Rate (as defined in Amendment No. 5) 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, N.A. 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% . Under the New Senior Credit Facility, the Eurocurrency Rate is the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) as published on the applicable Bloomberg screen page (or other commercially available source providing quotations of LIBOR as designated by the Administrative Agent from time to time) two London Banking Days (as defined in Amendment No. 5) prior to the commencement of such interest period. The variable Eurocurrency Rate has a floor of 1.75% . As of March 31, 2017 and December 31, 2016 , the applicable interest rate on the Term Loan was 7.75% . Interest Rates on Letter of Credit Subfacility and Unused Commitment Fees All of our letters of credit under the New Senior Credit Facility are subject to a 0.25% fronting fee. Under the New Senior Credit Facility, the letter of credit subfacility bears interest at an applicable rate that ranges from 4.0% to 4.5% with respect to the class A revolving commitments and ranges from 5.5% to 6.0% with respect to the class B revolving commitments. The unused commitment fee on our Revolver ranges from 0.50% to 0.75% on the undrawn amount of the facility depending on the Secured Leverage Ratio with respect to the class A revolving commitments and depending on the First Lien Secured Leverage Ratio with respect to the class B revolving commitments. Interest payments on both the letter of credit subfacility and unused commitments are payable quarterly in arrears. We will also pay customary letter of credit and agency fees. The applicable interest rates for our letter of credit subfacility was 5.75% as of March 31, 2017 and December 31, 2016 . The applicable interest rate for our unused commitment fees was 0.50% as of March 31, 2017 and December 31, 2016 . Principal Payments The credit agreement governing the New Senior Credit Facility contains an annual requirement to submit a portion of our Excess Cash Flow, as defined in the credit agreement, as additional principal payments. Based on our annual financial results for the year ended December 31, 2016 , we made an additional principal payment as required under the Excess Cash Flow provision of $25.1 million on April 4, 2017 . 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 three months ended March 31, 2017 . The New Senior Credit Facility requires us to prepay outstanding term loans, subject to certain exceptions, with: • 100% of excess cash flow (as defined in Amendment No. 5) less the amount of certain voluntary prepayments as described in Amendment No. 5; and • 100% of the net cash proceeds of all non-ordinary course asset sales and casualty and condemnation events, if we do not reinvest or commit to reinvest those proceeds in assets to be used in our business or to make certain other permitted investments within 6 months (and, if committed to be so reinvested, actually reinvested within 12 months). We are permitted to voluntarily repay outstanding loans under the New Senior Credit Facility at any time without premium or penalty, other than customary “breakage” costs with respect to eurocurrency loans. Maturity and Amortization Under the New Senior Credit Facility, we are required to make amortization payments with respect to the Term Loan of $22.5 million on or prior to June 15, 2017 and $22.5 million on or prior to June 15, 2018 , which amounts may be reduced as a result of the application of certain prepayments, including our Excess Cash Flow payment. As a result of the additional principal payment of $25.1 million under the Excess Cash Flow requirement, we will not be required to make any additional principal payment on the Term Loan for the June 15, 2017 $22.5 million principal payment requirement. The current portion of long-term debt as of March 31, 2017 includes our Excess Cash Flow Payment of $25.1 million paid on April 4, 2017 and all of the outstanding Senior Unsecured Notes which were redeemed on April 24, 2017. The principal amount of the Term Loan may be reduced as a result of prepayments, with the remaining amount payable on July 7, 2020 . The credit agreement governing the New Senior Credit Facility contains a provision that would have resulted in all outstanding principal under the Term Loan and the class B revolving facility maturing on May 8, 2017 if by May 8, 2017 , all of the outstanding principal of the 10.375% Senior Notes due 2017 (the "Senior Unsecured Notes") had not been extended to a date that is on or after October 6, 2020 , or all of the outstanding principal and accrued and unpaid interest of the Senior Unsecured Notes had not been paid in full with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Senior Credit Facility. Similar provisions with regards to the outstanding Senior Unsecured Notes are included in the Indenture governing the New Notes and the Third Lien Credit Agreement, which provide that the remaining Senior Unsecured Notes may only be paid with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Notes and the Cerberus 3L Notes (and we may not exchange any such remaining Senior Unsecured Notes into secured obligations of any kind). In addition, under the New Senior Credit Facility, any such new debt must mature after the maturity date of the Term Loan, and under the Indenture and the Third Lien Credit Agreement, any such new debt must mature after the maturity date of the New Notes. Principal amounts outstanding under the class B revolving facility will be due and payable in full on, and the commitments in respect thereof will terminate on, July 7, 2019 . The same springing maturity provision impacting the Term Loan as described above also applied to the class B revolving facility with respect to addressing the Senior Unsecured Notes by May 8, 2017 . On March 24, 2017 , the Company received a support letter from Cerberus (the “Support Letter”) committing to fund the redemption of all outstanding Senior Unsecured Notes on or before May 5, 2017 with the proceeds of new equity or capital contributions. On April 21, 2017 , the Company received the proceeds of a $40.6 million capital contribution (the “Capital Contribution”) from Holdings’ direct parent company, DefCo Holdings, Inc. On April 24, 2017 , DynCorp International completed the redemption of all of the remaining Senior Unsecured Notes using the proceeds of the Capital Contribution, and therefore, the maturity dates of the Term Loan and the class B revolving facility remain at July 7, 2020 and July 7, 2019 , respectively, and were not accelerated. Guarantee and Security The guarantors of the obligations under the New Senior Credit Facility are identical to those under the New Notes and the Cerberus 3L Notes and substantially similar to those under the Senior Unsecured Notes (as described in more detail in Note 11). The New Senior Credit Facility is secured on a first lien basis by the same collateral that secures the New Notes on a second lien basis and the Cerberus 3L Notes on a third lien basis. Covenants The New Senior Credit Facility contains a number of 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: • incur additional indebtedness; • create liens on assets; • enter into sale and leaseback transactions; • make investments, loans, guarantees or advances; • make certain acquisitions; • sell assets; • engage in mergers or acquisitions; • pay dividends and make distributions or repurchase capital stock; • repay certain other indebtedness; • enter into agreements that restrict the ability of our subsidiaries to pay dividends; • engage in certain transactions with affiliates; • change the business conducted by us or our subsidiaries; • amend our organizational documents; • change our accounting policies or reporting practices or our fiscal year; and • make capital expenditures. In addition, the New Senior Credit Facility requires us to maintain a maximum total leverage ratio and a minimum interest coverage ratio. The New Senior Credit Facility also requires, solely for the benefit of the lenders under the Revolver, for us to maintain minimum liquidity (based on availability of revolving credit commitments under the New Senior Credit Facility plus unrestricted cash and cash equivalents) as of the end of each fiscal quarter of not less than $60 million through the fiscal quarter ending December 31, 2017 , and of not less than $50 million thereafter. The credit agreement governing the New Senior Credit Facility also contains customary representations and warranties, affirmative covenants and events of default. The total leverage ratio under the New Senior Credit Facility is Consolidated Total Debt, as defined in Amendment No. 5 (which definition excludes debt under the Cerberus 3L Notes), less unrestricted cash and cash equivalents (up to $75.0 million ) to Consolidated EBITDA, as defined in Amendment No. 5, for the applicable period. The maximum total leverage ratios under the New Senior Credit Facility are set forth below as follows: Period Ending Total Leverage Ratio March 31, 2017 7.30 to 1.0 June 30, 2017 6.75 to 1.0 September 29, 2017 6.50 to 1.0 December 31, 2017 5.75 to 1.0 March 30, 2018 5.75 to 1.0 June 29, 2018 5.50 to 1.0 September 28, 2018 5.40 to 1.0 September 29, 2018 and thereafter 4.75 to 1.0 The interest coverage ratio under the New Senior Credit Facility is the ratio of Consolidated EBITDA to Consolidated Interest Expense, as defined in Amendment No. 5 (which provides that interest expense with respect to the Cerberus 3L Notes is excluded). The minimum interest coverage ratios under the New Senior Credit Facility are set forth below as follows: Period Ending Interest Coverage Ratio March 31, 2017 1.20 to 1.0 June 30, 2017 1.20 to 1.0 September 29, 2017 1.30 to 1.0 December 31, 2017 1.40 to 1.0 March 30, 2018 1.50 to 1.0 June 29, 2018 1.60 to 1.0 June 30, 2018 and thereafter 1.70 to 1.0 As of March 31, 2017 and December 31, 2016 , we were in compliance with our financial maintenance covenants under the New Senior Credit Facility and we expect, based on current projections and estimates, to be in compliance with our covenants in the next twelve months. New Notes On June 15, 2016 , in connection with the consummation of the exchange offer (the "Exchange Offer") and consent solicitation (the “Consent Solicitation”), $415.7 million principal amount of the Senior Unsecured Notes were exchanged for $45.0 million cash and $370.6 million aggregate principal amount of newly issued New Notes due November 30, 2020 . The New Notes are governed by the terms of the indenture dated as of June 15, 2016 (the “Indenture”), among DynCorp International, the Guarantors (as defined below) and Wilmington Trust, National Association, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”). The New Notes are senior secured obligations of DynCorp International, as issuer, and of the Guarantors, as guarantors. The New Notes are secured by second-priority liens on the assets that secure DynCorp International’s and the Guarantors’ obligations under DynCorp International’s senior secured credit facility, subject to permitted liens and certain exceptions. The New Notes are guaranteed by (1) Holdings, and (2) all of DynCorp International’s subsidiaries that currently guarantee the New Senior Credit Facility (the “Subsidiary Guarantors,” and collectively with Holdings, the “Guarantors”). Interest on the New Notes accrues at the rate of 11.875% per annum, comprised of 10.375% per annum in cash and 1.500% per annum payable in kind (“PIK,” and such interest “PIK Interest”). The cash portion of the interest on the New Notes is payable in cash and the PIK Interest on the New Notes is payable in kind, each semi-annually in arrears on January 1 and July 1, commencing on July 1, 2016 . Interest on the New Notes accrued from January 1, 2016 , which was the last date interest was paid on the Senior Unsecured Notes prior to the consummation of the Exchange Offer. The New Notes were not registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The Exchange Offer was made, and the New Notes were offered and issued, in reliance on the exemption from the registration requirements of the Securities Act provided under Section 3(a)(9) of the Securities Act and on the exemption from the registration requirements of state securities laws and regulations provided under Section 18(b)(4)(D) of the Securities Act. Consistent with past interpretations of Section 3(a)(9) by the staff of the SEC, the New Notes received in exchange for the Senior Unsecured Notes tendered pursuant to the Exchange Offer have the same characteristics as the Senior Unsecured Notes as to their transferability and are freely transferable without registration under the Securities Act and without regard to any holding period by those tendering holders who are not our “affiliates” (as defined in the Securities Act). Covenants The Indenture contains covenants that limit, among other things, each of Holdings’, DynCorp International's and the Subsidiary Guarantors’ ability to: • incur additional indebtedness; • pay dividends on capital stock or repurchase capital stock; • make investments; • create liens or use assets as security in other transactions; • merge, consolidate or transfer or dispose of substantially all of its assets; • engage in transactions with affiliates; and • sell certain assets or merge with or into other companies. These covenants are subject to a number of important exceptions and qualifications as set forth in the Indenture. In addition, the Indenture (i) requires that any principal to be paid on any Senior Unsecured Notes that remain outstanding that were not tendered in the Exchange Offer may only be paid with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Notes (and such non-exchanged Senior Unsecured Notes are not permitted to be exchanged into secured obligations of any kind), as further described below under "Senior Unsecured Notes," and (ii) requires DynCorp International to make amortization payments of (x) $22.5 million principal amount of the Term Loan under the New Senior Credit Facility no later than June 15, 2017 , and (y) an additional $22.5 million principal amount of the Term Loan no later than June 15, 2018 , which amounts may be reduced as a result of the application of certain prepayments, including excess cash flow payments. As discussed above, the Company received the Capital Contribution on April 21, 2017 and completed the redemption of the Senior Unsecured Notes using the proceeds of the Capital Contribution on April 24, 2017 . If we sell certain assets without applying proceeds in a specified manner, holders of the New Notes will have the right to require us to repurchase some or all of the New Notes at 100% of their face amount, plus accrued and unpaid interest to the repurchase date. Upon the occurrence of specific kinds of change of control events (unless we elect to redeem the New Notes at our option prior thereto), holders of New Notes will have the right to require us to repurchase some or all of the New Notes at 101% of their face amount, plus accrued and unpaid interest to the repurchase date. Optional Redemption DynCorp International is permitted to redeem the New Notes prior to July 1, 2017 , in whole but not in part, at its option, at 100% of their principal amount, together with any accrued and unpaid cash interest and additional interest, if any, together with an amount of cash equal to all accrued and unpaid PIK Interest to but excluding the redemption date. In addition, on or after July 1, 2017 , the New Notes will be redeemable at the option of the Company, in whole or in part, at any time and from time to time, upon not less than 30 nor more than 60 days’ prior notice, at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid cash interest, if any, together with an amount of cash equal to all accrued and unpaid PIK Interest to but excluding the redemption date, if redeemed during the 12-month period commencing on July 1 of the years set forth below: Period Redemption Price 2017 106.00 % 2018 103.00 % 2019 and thereafter 100.00 % Events of Default The Indenture contains customary events of default, including for failure to pay the Senior Unsecured Notes by their maturity or for failure to pay other debt in a total amount exceeding $10.0 million after final maturity or acceleration of such indebtedness (including acceleration of the New Senior Credit Facility, such as due to failure to refinance or pay with proceeds of sales of equity or capital contributions the remaining Senior Unsecured Notes as described above). If the New Notes are accelerated or otherwise become due and payable prior to their maturity, in each case, as a result of an event of default under the Indenture, on or after July 1, 2017 , the amount of principal of, accrued and unpaid interest and premium on the New Notes that becomes due and payable will equal the redemption price plus accrued and unpaid cash interest, if any, together with an amount of cash equal to all accrued and unpaid PIK Interest, applicable with respect to an optional redemption of the New Notes. If the New Notes are accelerated or otherwise become due and payable prior to their maturity, in each case, as a result of an event of default under the Indenture, at any time prior to July 1, 2017 , the amount of principal of, accrued and unpaid interest and premium on the New Notes that becomes due and payable will equal 100% of the principal amount of the New Notes plus an Acceleration Premium (as defined in the Indenture) plus accrued and unpaid cash interest, if any, together with an amount of cash equal to all accrued and unpaid PIK Interest. Senior Unsecured Notes On July 7, 2010 , DynCorp International completed an offering of $455.0 million in aggregate principal of 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 "Senior Unsecured Notes Indenture"), by and among us, the guarantors party thereto, including DynCorp International and Wilmington Trust, National Association (as successor by merger to Wilmington Trust FSB) as Trustee. On June 15, 2016 , in connection with the consummation of the Exchange Offer, $415.7 million principal amount of the Senior Unsecured Notes were exchanged for $45.0 million cash and $370.6 million principal amount of newly issued New Notes. The remaining $39.3 million principal amount of 10.375% Senior Unsecured Notes were not exchanged and are classified within the current portion of long-term debt as of March 31, 2017 , and as further described below, were redeemed on April 24, 2017 . The credit agreement governing our New Senior Credit Facility specifies that we must either extend the maturity date of all outstanding principal of the Senior Unsecured Notes to a date on or after October 6, 2020 or repay all of the outstanding principal and accrued and unpaid interest of the Senior Unsecured Notes in full by May 8, 2017 with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Senior Credit Facility. Failure to do so would have resulted in all outstanding principal under the Term Loan and the class B revolving facility maturing on May 8, 2017 . Similar provisions with regards to the outstanding Senior Unsecured Notes are included in the Indenture governing the New Notes and the Third Lien Credit Agreement, which provide that the remaining Senior Unsecured Notes may only by paid with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Notes and the Cerberus 3L Notes (and we may not exchange any such remaining Senior Unsecured Notes into secured obligations of any kind). In addition, under the New Senior Credit Facility, any such new debt must mature after the maturity date of the Term Loan, and under the Indenture and the Third Lien Credit Agreement, any such new debt must mature after the maturity date of the New Notes. In the event we had been unable to address the remaining $39.3 million principal amount of 10.375% Senior Unsecured Notes and unpaid interest before May 8, 2017 through the New Cerberus Financing or otherwise, the failure to pay all amounts due under the New Senior Credit Facility upon the May 8, 2017 springing maturity would have been an event of default under the New Senior Credit Facility. Failure to pay amounts due upon the springing maturity of the New Senior Credit Facility would have also caused an event of default under the Indenture and the Cerberus 3L Notes. We received the Capital Contribution on April 21, 2017 , and completed the redemption of all of the remaining Senior Unsecured Notes using the proceeds of the Capital Contribution on April 24, 2017 . The maturity dates of the Term Loan and the class B revolving facility remain at July 7, 2020 and July 7, 2019 , respectively, and were not accelerated. Interest on the Senior Unsecured Notes is payable on January 1 and July 1 of each year, and commenced on January 1, 2011 . Pursuant to the Consent Solicitation, the Senior Unsecured Notes Indenture was amended to eliminate substantially all of the restrictive covenants and certain of the default provisions therein. Subject to restrictions on repayment of the Senior Unsecured Notes in the New Senior Credit Facility and our other debt, after July 1, 2016 , we could voluntarily settle all or a portion of the Senior Unsecured Notes at any time prior to maturity at 100% of their principal amount plus accrued and unpaid interest, if any, as of the applicable redemption date. The fair value of the Senior Unsecured Notes is based on their quoted market value. As of March 31, 2017 and December 31, 2016 , the quoted market value of the Senior Unsecured Notes was approximately 99.5% and 94.4% , respectively, of stated value. Cerberus 3L Notes Based on the completion of the Exchange Offer and the satisfaction of conditions set forth in the Third Lien Credit Facility Commitment Letter, dated April 30, 2016 , DynCorp Funding LLC, a limited liability company managed by Cerberus Capital Management, L.P. ("Cerberus"), entered into a Third Lien Credit Agreement, dated as of June 15, 2016 (the “Third Lien Credit Agreement”) with us. Under the Third Lien Credit Agreement, DynCorp Funding LLC has made a $30 million term loan to us (the "Cerberus 3L Notes"). The proceeds of the Cerberus 3L Notes are restricted to pay fees and expenses (including reimbursement of out-of-pocket expenses) in support of or related to the Company’s Global Advisory Group until June 15, 2018 and, thereafter, for working capital and general corporate purposes. For the three months ended March 31, 2017 , we utilized approximately $5.2 million of these funds for fees and expenses related to the Company's Global Advisory Group. Interest Rate and Fees The interest rate per annum applicable to the Cerberus 3L Notes is 5.00% , payable in kind on a quarterly basis. Prepayments The Cerberus 3L Notes do not require any mandatory prepayments, and, subject to the terms of the Intercreditor Agreement (as defined below), we are permitted to voluntarily repay outstanding loans under the Cerberus 3L Notes without premium or penalty. The New Senior Credit Facility and the Indenture governing the New Notes restrict us from making any principal payments on the Cerberus 3L Notes. Maturity and Amortization The Cerberus 3L Notes do not require any mandatory amortization payments prior to maturity and the outstanding principal amounts shall be payable on June 15, 2026 . Covenants The Cerberus 3L Notes include covenants consistent with the covenants set forth in the New Notes; provided that each “basket” or “cushion” set forth in the covenants is at least 25% less restrictive than the corresponding provision set forth in the New Notes. Events of Default The Third Lien Credit Agreement contains customary events of default, including for failure to pay the remaining Senior Unsecured Notes by their maturity or fo |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
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 real estate leases are subject to annual escalations for increases in base rents, utilities and property taxes. Lease rental expense was $9.8 million and $8.2 million for the three months ended March 31, 2017 and March 25, 2016 , respectively. We have no significant long-term purchase agreements with service providers. Contingencies General Legal Matters We are involved in various lawsuits and claims that arise in the normal course of business. We have established reserves for matters in which it is believed that losses are probable and can be reasonably estimated. Reserves related to these matters have been recorded in Other accrued liabilities totaling approximately $4.4 million and $4.6 million as of March 31, 2017 and December 31, 2016 , 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 March 31, 2017 . These accrued reserves represent the best estimate of amounts believed to be our liability in a range of expected losses. In addition to matters that are considered probable and that can be reasonably estimated, we also have certain matters considered reasonably possible. Other than matters disclosed below, we believe the aggregate range of possible loss related to matters considered reasonably possible was not material as of March 31, 2017 . 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. On September 23, 2016, the District Court granted in part renewed motions for summary judgment. On April 3, 2017, the claims for six plaintiffs proceeded to trial. On April 20, 2017, the jury found in our favor on all claims brought by all six plaintiffs involved in that trial. Further proceedings involving other plaintiffs may take place. 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 26 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, 15 of the plaintiffs have been dismissed by court order. We filed multiple motions for summary judgment, and, on February 15, 2013, the court granted summary judgment and dismissed all claims. On March 18, 2013, the plaintiffs filed a notice of appeal with the U.S. Court of Appeals for the District of Columbia. On May 30, 2014, the U.S. Court of Appeals for the District of Columbia affirmed the dismissal of the majority of the case, but remanded the case to the trial court concerning a few remaining tort claims. On September 23, 2016, the District Court granted in part renewed motions for summary judgment. On April 3, 2017, the claims for six plaintiffs proceeded to trial. On April 20, 2017, the jury found in our favor on all claims brought by all six plaintiffs involved in that trial. Further proceedings involving other plaintiffs may take place. At this time, we believe the likelihood of an unfavorable outcome in this case is remote. The above cases now are fully defended and indemnified by the Company’s previous owner, Computer Sciences Corporation and also by its spin-off company, CSRA Inc. The insurance litigation arising out of the above cases that was described in prior filings has now been fully resolved and settled. In October 2007 , we entered into a subcontract with Northrop Grumman Technical Services, Inc. (“Northrop”) to support Northrop’s prime contract with the DoD Counter Narcotics Terrorism Program Office ("CNTPO"). We performed the services requested by Northrop, the government determined that it received “intended quality and skills of personnel,” and Northrop paid our invoices until July 2014 . Subsequent to July 2014 , Northrop stopped paying our periodic invoices. The contract operations ended on December 31, 2014 . In March 2015 , Northrop filed a civil action against us to obtain documents regarding our invoices and now asserts approximately $5 million in damages. We believe the damages asserted by Northrop represent a loss contingency that is remote. In September 2015 , we filed an Answer and Counterclaim seeking approximately $41.0 million for unpaid invoices. An unfavorable judgment which denies us a substantial amount of the full amount owed to us could have a material effect on our performance. On February 24, 2012 , we were advised by the Department of Justice Civil Litigation Division (“the Civil 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. Since 2012 , the Company has been in discussions with the Civil Division, and has been cooperating with the Civil Division’s requests for information. On July 19, 2016 , the Civil Division filed a civil lawsuit asserting violations of underlying contract terms and also the False Claims Act. 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; however, the complaint does not include any specific monetary demand and as such we are unable to estimate a range of loss at this time. We are continuing to evaluate this lawsuit and at this time believe the potential for penalties, damages or fines resulting from this matter do not represent a probable loss contingency. 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. Such investigations could result in administrative, civil or criminal liabilities, including repayments, fines or penalties being imposed on us, or could lead to suspension or debarment from future U.S. government contracting. U.S. government investigations often take years to complete and may 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. 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 related to their examination of certain incurred, invoiced and reimbursed costs on the Logistics Civil Augmentation Program IV ("LOGCAP IV") for contract years 2009 to 2012. Through our negotiation efforts with the Contracting Officer the issues have been resolved, resulting in final settlements of all audited costs of approximately $0.8 million of questioned costs. The DCAA is currently auditing fiscal years 2013 to 2016 and we believe the risk of loss for those years is remote and eventual settlement amounts should be comparable to the previous outcome for fiscal years 2009 to 2012. Foreign Contingencies On January 22, 2014 , a tax assessment from the Large Tax Office of the Afghanistan Ministry of Finance (“MOF”) was received, seeking approximately $64.2 million in taxes and penalties specific to one of our business licenses in Afghanistan for periods between 2009 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 . We are still working with the MOF to remove the assessment on the remaining non-income tax related items. As of March 31, 2017 , we are continuing to evaluate this matter and at this time believe it does not represent a probable loss contingency. 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, the significance of any one contract can change as our business expands or contracts. Additionally, as contract modifications, contract extensions or other contract actions occur, the profitability of any one contract can become more or less significant to the Company. As contracts are recompeted, there is the potential for the size, contract type, contract structure or other contract elements to materially change from the original contract resulting in significant changes to the scope, scale, profitability or magnitude of accounts receivable of the new recompeted contract as compared to the original contract. 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 of $9.6 million and $9.3 million as of March 31, 2017 and December 31, 2016 , respectively. These loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. We limit our risk by purchasing stop-loss insurance policies for significant claims incurred for both domestic workers' compensation liabilities and medical costs. Our exposure under the stop-loss policies for domestic workers' compensation and medical costs is limited based on fixed dollar amounts. For domestic workers' compensation and employers' liability under state and federal law, the fixed dollar amount of stop-loss coverage is $1.0 million per occurrence on most policies, but is $0.25 million per occurrence on a California-based policy. For medical costs, the fixed dollar amount of stop-loss coverage is $0.4 million for total costs per covered participant per calendar year. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have three operating and reporting segments: AELS, AOLC and DynLogistics. The AELS, AOLC 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 condensed consolidated financial statements: Three Months Ended (Amounts in thousands) March 31, 2017 March 25, 2016 Revenue AELS $ 134,106 $ 136,255 AOLC 153,842 152,255 DynLogistics 172,358 131,189 Headquarters / Other (1) (434 ) 291 Total revenue $ 459,872 $ 419,990 Operating income (loss) AELS $ 3,279 $ 1,741 AOLC 15,667 8,958 DynLogistics 17,500 9,956 Headquarters / Other (2) (16,282 ) (15,177 ) Total operating income (loss) $ 20,164 $ 5,478 Depreciation and amortization AELS $ 265 $ 129 AOLC 24 34 DynLogistics 140 62 Headquarters / Other 8,469 8,291 Total depreciation and amortization (3) $ 8,898 $ 8,516 (1) Headquarters revenue primarily represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. (2) Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers and Global Advisory Group costs, partially offset by equity method investee income. (3) Includes amounts included in Cost of services of $0.3 million and $0.2 million for the three months ended March 31, 2017 and March 25, 2016 , respectively. The following is a summary of the assets of the reportable segments reconciled to the amounts reported in the consolidated financial statements: As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Assets AELS $ 136,487 $ 140,320 AOLC 131,651 133,096 DynLogistics 181,638 168,085 Headquarters / Other (1) 209,769 235,036 Total assets $ 659,545 $ 676,537 (1) Assets primarily include cash, investments in unconsolidated subsidiaries, and intangible assets (excluding goodwill). |
Related Parties, Joint Ventures
Related Parties, Joint Ventures and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties, Joint Ventures and Variable Interest Entities | Related Parties, Joint Ventures and Variable Interest Entities Cerberus 3L Notes DynCorp Funding LLC, a limited liability company managed by Cerberus Capital Management, L.P., entered into a Third Lien Credit Agreement, dated as of June 15, 2016 to fund the Cerberus 3L Notes, a $30 million term loan to us. The interest rate per annum applicable to the Cerberus 3L Notes is 5.00% , payable in kind on a quarterly basis. The Cerberus 3L Notes do not require any mandatory amortization payments prior to maturity and the outstanding principal amounts shall be payable on June 15, 2026 . See Note 7 for further discussion. Capital Contribution As described further in Note 7, the credit agreement governing the New Senior Credit Facility contains a provision that would have resulted in all outstanding principal under the Term Loan and the class B revolving facility maturing on May 8, 2017 if by May 8, 2017 all of the outstanding principal of the Senior Unsecured Notes had not been extended to a date that is on or after October 6, 2020 , or all of the outstanding principal and accrued and unpaid interest of the Senior Unsecured Notes had not been paid in full with the proceeds of new equity, capital contributions or new unsecured debt that is expressly subordinated to the New Senior Credit Facility. On March 24, 2017 , the Company received the Support Letter from Cerberus committing to fund the redemption of all outstanding Senior Unsecured Notes on or before May 5, 2017 with the proceeds of new equity or capital contributions. The Company received the $40.6 million Capital Contribution on April 21, 2017 , and completed the redemption of all of the remaining Senior Unsecured Notes using the proceeds of the Capital Contribution on April 24, 2017 . Consulting Fee We have a Master Consulting and Advisory Services agreement ("COAC Agreement") with Cerberus Operations and Advisory Company, LLC ("COAC") 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 $1.3 million and $1.8 million of consulting fees on a gross basis before considering the effect of our contract mix which provides for partial recovery in conjunction with the COAC Agreement during the three months ended March 31, 2017 and March 25, 2016 , respectively. We have two executives who are COAC employees, who are seconded to us: (i) our Senior Vice President, Chief Administrative Officer, Chief Legal Officer and Corporate Secretary; and (ii) our Senior Vice President and Chief Operating Officer. Included in the $1.3 million and $1.8 million recognized during the three months ended March 31, 2017 and March 25, 2016 in COAC consulting fees, respectively, was $0.8 million and $0.6 million of administrative expense related to these COAC individuals for the three months ended March 31, 2017 and March 25, 2016 , respectively. The New Senior Credit Facility permits payments under the COAC Agreement or any transaction contemplated thereby not to exceed $6 million per fiscal year with respect to executives seconded from COAC and personnel of COAC that provide services to us at cost on a weekly, monthly or pro-rated basis. Certain members of executive management and board members of the Company and seconded COAC individuals may have agreements and conduct business with Cerberus and its affiliates for which they receive compensation. We recognize such compensation as an administrative expense in the consolidated financial statements. Joint Ventures and Variable Interest Entities We account for our investments in VIEs in accordance with ASC 810 - Consolidation . In cases where we have (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, we consolidate the entity. We consolidated DIFZ based on the aforementioned criteria. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. As of March 31, 2017 , we accounted for PaTH, Babcock and GLS as equity method investments. We present our share of the PaTH and GLS earnings in Earnings from equity method investees as these joint ventures are considered operationally integral. Alternatively, we present our share of the Babcock earnings in Other income, net as it is not considered operationally integral. Receivables due from our unconsolidated joint ventures totaled $0.1 million and $0.1 million as of March 31, 2017 and December 31, 2016 , 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. We did not earn revenue from our unconsolidated joint ventures during the three months ended March 31, 2017 and March 25, 2016 , respectively. The related cost of services was $0.2 million and $0.2 million during the three months ended March 31, 2017 and March 25, 2016 , respectively. Additionally, we earned $0.1 million and $0.4 million in equity method income (includes operationally integral and non-integral income) during the three months ended March 31, 2017 and March 25, 2016 , respectively. GLS’ revenue was $7.9 million and $9.9 million during the three months ended March 31, 2017 and March 25, 2016 , respectively. GLS’ operating and net loss was $1.1 million and $0.8 million during the three months ended March 31, 2017 and March 25, 2016 , respectively. 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 $2.2 million and $2.2 million as of March 31, 2017 and December 31, 2016 , respectively, reflecting the initial value plus accrued interest, less non-cash dividend 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 March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and March 25, 2016 : As Of (Amounts in millions) March 31, 2017 December 31, 2016 Assets $ 4.9 $ 4.2 Liabilities 1.8 1.1 Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Revenue $ 41.0 $ 39.8 The following tables present selected financial information for our equity method investees as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and March 25, 2016 : As Of (Amounts in millions) March 31, 2017 December 31, 2016 Current assets $ 24.9 $ 27.7 Total assets 25.2 29.3 Current liabilities 8.7 10.1 Total liabilities 8.7 10.1 Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Revenue $ 8.2 $ 14.7 Gross (loss) profit (1.6 ) 0.3 Net (loss) income (1.5 ) 0.4 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) $7.3 million investment in unconsolidated joint ventures, (ii) $0.1 million in receivables from our unconsolidated joint ventures, (iii) $2.2 million note receivable from Palm Trading Investment Corp. and (iv) contingent liabilities that were neither probable nor reasonably estimable as of March 31, 2017 . |
Consolidating Financial Stateme
Consolidating Financial Statements of Subsidiary Guarantors | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidating Financial Statements of Subsidiary Guarantors | Consolidating Financial Statements of Subsidiary Guarantors The New Notes issued by DynCorp International Inc. ("Subsidiary Issuer"), the New Senior Credit Facility and the term loan under the Third Lien Credit Agreement are fully and unconditionally guaranteed, jointly and severally, by the Company ("Parent") and the following 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, Casals & Associates, Inc., Culpeper National Security Solutions LLC, and Highground Global, Inc. ("Subsidiary Guarantors"). The Senior Unsecured Notes were fully and unconditionally guaranteed, jointly and severally, by the Parent and the Subsidiary Guarantors other than Culpeper National Security Solutions LLC, and Highground Global, Inc. Each of the Subsidiary Issuer and the Subsidiary Guarantors is 100% owned by the Company. Under the Senior Unsecured Notes Indenture and the Indenture governing the New Notes, a guarantee of a Subsidiary Guarantor would 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. The following condensed consolidating financial statements present (i) unaudited condensed consolidating balance sheets as of March 31, 2017 and December 31, 2016 , (ii) unaudited condensed consolidating statements of operations and comprehensive loss for the three months ended March 31, 2017 and March 25, 2016 , (iii) unaudited condensed consolidating statements of cash flows for the three months ended March 31, 2017 and March 25, 2016 and (iii) elimination entries necessary to consolidate Parent and its subsidiaries. The Parent company, the Subsidiary Issuer, the combined Subsidiary Guarantors and the combined subsidiary non-guarantors account for their investments in subsidiaries using the equity method of accounting; therefore, the Parent column reflects the equity income of the subsidiary and its subsidiary guarantors, and subsidiary non-guarantors. Additionally, the Subsidiary Guarantors column reflects the equity income of its subsidiary non-guarantors. DynCorp International Inc. is considered the Subsidiary Issuer as it issued the Senior Unsecured Notes and the New Notes. Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Operations Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Revenue $ — $ — $ 463,274 $ 46,429 $ (49,831 ) $ 459,872 Cost of services — — (403,232 ) (46,067 ) 49,822 (399,477 ) Selling, general and administrative expenses — — (31,625 ) (100 ) 6 (31,719 ) Depreciation and amortization expense — — (8,385 ) (173 ) 3 (8,555 ) Earnings from equity method investees — — 43 — — 43 Operating income — — 20,075 89 — 20,164 Interest expense — (17,753 ) (962 ) — — (18,715 ) Interest income — — 5 — — 5 Equity in (loss) income of consolidated subsidiaries (487 ) 11,054 (113 ) — (10,454 ) — Other income, net — — 1,333 40 — 1,373 (Loss) income before income taxes (487 ) (6,699 ) 20,338 129 (10,454 ) 2,827 Benefit (provision) for income taxes — 6,212 (9,284 ) 33 — (3,039 ) Net (loss) income (487 ) (487 ) 11,054 162 (10,454 ) (212 ) Noncontrolling interests — — — (275 ) — (275 ) Net (loss) income attributable to Delta Tucker Holdings, Inc. $ (487 ) $ (487 ) $ 11,054 $ (113 ) $ (10,454 ) $ (487 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Operations Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Revenue $ — $ — $ 423,427 $ 44,818 $ (48,255 ) $ 419,990 Cost of services — — (375,778 ) (44,959 ) 48,239 (372,498 ) Selling, general and administrative expenses — — (34,082 ) (22 ) 14 (34,090 ) Depreciation and amortization expense — — (8,124 ) (169 ) 2 (8,291 ) Earnings from equity method investees — — 367 — — 367 Operating income (loss) — — 5,810 (332 ) — 5,478 Interest expense — (15,278 ) (690 ) — — (15,968 ) Interest income — — 59 1 — 60 Equity in loss of consolidated subsidiaries (14,759 ) (4,828 ) (547 ) — 20,134 — Other income (expense), net — — 359 (7 ) — 352 (Loss) income before income taxes (14,759 ) (20,106 ) 4,991 (338 ) 20,134 (10,078 ) Benefit (provision) for income taxes — 5,347 (9,819 ) (22 ) — (4,494 ) Net loss (14,759 ) (14,759 ) (4,828 ) (360 ) 20,134 (14,572 ) Noncontrolling interests — — — (187 ) — (187 ) Net loss attributable to Delta Tucker Holdings, Inc. $ (14,759 ) $ (14,759 ) $ (4,828 ) $ (547 ) $ 20,134 $ (14,759 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Comprehensive Loss Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net (loss) income $ (487 ) $ (487 ) $ 11,054 $ 162 $ (10,454 ) $ (212 ) Other comprehensive income, net of tax: Foreign currency translation adjustment 12 12 — 12 (24 ) 12 Other comprehensive income, before tax 12 12 — 12 (24 ) 12 Income tax expense related to items of other comprehensive income (4 ) (4 ) — (4 ) 8 (4 ) Other comprehensive income 8 8 — 8 (16 ) 8 Comprehensive (loss) income (479 ) (479 ) 11,054 170 (10,470 ) (204 ) Noncontrolling interests — — — (275 ) — (275 ) Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. $ (479 ) $ (479 ) $ 11,054 $ (105 ) $ (10,470 ) $ (479 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Comprehensive Loss Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net loss $ (14,759 ) $ (14,759 ) $ (4,828 ) $ (360 ) $ 20,134 $ (14,572 ) Other comprehensive income, net of tax: Foreign currency translation adjustment 3 3 — 3 (6 ) 3 Other comprehensive income, before tax 3 3 — 3 (6 ) 3 Income tax expense related to items of other comprehensive income (1 ) (1 ) — (1 ) 2 (1 ) Other comprehensive income 2 2 — 2 (4 ) 2 Comprehensive loss (14,757 ) (14,757 ) (4,828 ) (358 ) 20,130 (14,570 ) Noncontrolling interests — — — (187 ) — (187 ) Comprehensive loss attributable to Delta Tucker Holdings, Inc. $ (14,757 ) $ (14,757 ) $ (4,828 ) $ (545 ) $ 20,130 $ (14,757 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Balance Sheet Information March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 84,200 $ 23,007 $ — $ 107,207 Restricted cash — 1,784 720 — — 2,504 Accounts receivable, net — — 324,681 149 (18,800 ) 306,030 Intercompany receivables — — 166,701 1,115 (167,816 ) — Prepaid expenses and other current assets — — 62,501 5,432 (614 ) 67,319 Total current assets — 1,784 638,803 29,703 (187,230 ) 483,060 Property and equipment, net — — 16,238 782 — 17,020 Goodwill — — 9,694 32,399 — 42,093 Tradenames, net — — 28,536 — — 28,536 Other intangibles, net — — 75,956 — — 75,956 Investment in subsidiaries — 565,410 56,220 — (621,630 ) — Other assets, net — — 10,253 2,627 — 12,880 Total assets $ — $ 567,194 $ 835,700 $ 65,511 $ (808,860 ) $ 659,545 LIABILITIES & DEFICIT Current liabilities: Current portion of long-term debt $ — $ 62,955 $ — $ — $ — $ 62,955 Accounts payable — — 78,045 5,213 (1,507 ) 81,751 Accrued payroll and employee costs — — 83,974 3,206 — 87,180 Intercompany payables 45,086 121,615 1,115 — (167,816 ) — Deferred income taxes — — — 28 (28 ) — Accrued liabilities 222,746 31,338 63,657 844 (240,468 ) 78,117 Income taxes payable — — 11,345 — (157 ) 11,188 Total current liabilities 267,832 215,908 238,136 9,291 (409,976 ) 321,191 Long-term debt — 574,032 — — — 574,032 Long-term deferred taxes — — 15,286 — — 15,286 Other long-term liabilities — — 11,408 — — 11,408 Noncontrolling interests — — 5,460 — — 5,460 (Deficit) equity (267,832 ) (222,746 ) 565,410 56,220 (398,884 ) (267,832 ) Total liabilities and deficit $ — $ 567,194 $ 835,700 $ 65,511 $ (808,860 ) $ 659,545 Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Balance Sheet Information December 31, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 106,416 $ 11,802 $ — $ 118,218 Restricted cash — 6,944 720 — — 7,664 Accounts receivable, net — — 304,729 2,525 (6,999 ) 300,255 Intercompany receivables — — 183,587 9,827 (193,414 ) — Prepaid expenses and other current assets — — 63,776 2,516 (598 ) 65,694 Total current assets — 6,944 659,228 26,670 (201,011 ) 491,831 Property and equipment, net — — 15,788 848 — 16,636 Goodwill — — 9,694 32,399 — 42,093 Tradenames, net — — 28,536 — — 28,536 Other intangibles, net — — 84,069 — — 84,069 Investment in subsidiaries — 572,176 54,538 — (626,714 ) — Other assets, net — — 10,575 2,797 — 13,372 Total assets $ — $ 579,120 $ 862,428 $ 62,714 $ (827,725 ) $ 676,537 LIABILITIES & DEFICIT Current liabilities: Current portion of long-term debt $ — $ 62,843 $ — $ — $ — $ 62,843 Accounts payable — — 67,287 3,859 (1,404 ) 69,742 Accrued payroll and employee costs — — 92,036 3,544 — 95,580 Intercompany payables 45,086 138,501 9,827 — (193,414 ) — Deferred income taxes — — — 26 (26 ) — Accrued liabilities 222,306 30,469 78,926 747 (228,370 ) 104,078 Income taxes payable — — 9,406 — (103 ) 9,303 Total current liabilities 267,392 231,813 257,482 8,176 (423,317 ) 341,546 Long-term debt — 569,613 — — — 569,613 Long-term deferred taxes — — 14,825 — — 14,825 Other long-term liabilities — — 12,490 — — 12,490 Noncontrolling interests — — 5,455 — — 5,455 (Deficit) Equity (267,392 ) (222,306 ) 572,176 54,538 (404,408 ) (267,392 ) Total liabilities and deficit $ — $ 579,120 $ 862,428 $ 62,714 $ (827,725 ) $ 676,537 Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Cash Flow Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 11,627 $ (29,347 ) $ 2,851 $ (179 ) $ (15,048 ) Cash flows from investing activities: Purchase of property and equipment — — (1,757 ) — — (1,757 ) Proceeds from sale of property, plant and equipment — — 370 — — 370 Purchase of software — — (26 ) — — (26 ) Cash restricted from Cerberus 3L Notes — 5,160 — — — 5,160 Return of capital from equity method investees — — 1,269 — — 1,269 Contributions to equity method investees — — (900 ) — — (900 ) Transfers from affiliates — — 16,887 8,712 (25,599 ) — Net cash provided by investing activities — 5,160 15,843 8,712 (25,599 ) 4,116 Cash flows from financing activities: Equity contribution from affiliates of Cerberus — 100 — — — 100 Payments of dividends to noncontrolling interests — — — (358 ) 179 (179 ) Net transfers to affiliates — (16,887 ) (8,712 ) — 25,599 — Net cash used in financing activities — (16,787 ) (8,712 ) (358 ) 25,778 (79 ) Net (decrease) increase in cash and cash equivalents — — (22,216 ) 11,205 — (11,011 ) Cash and cash equivalents, beginning of period — — 106,416 11,802 — 118,218 Cash and cash equivalents, end of period $ — $ — $ 84,200 $ 23,007 $ — $ 107,207 Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Cash Flow Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 1,759 $ 35,267 $ (48,110 ) $ (19,056 ) $ (403 ) $ (30,543 ) Cash flows from investing activities: Purchase of property and equipment — — (788 ) (24 ) — (812 ) Purchase of software — — (1,261 ) — — (1,261 ) Contributions to equity method investees — — (1,225 ) — — (1,225 ) Transfers from affiliates — — 37,277 23,767 (61,044 ) — Net cash provided by investing activities — — 34,003 23,743 (61,044 ) (3,298 ) Cash flows from financing activities: Equity contributions from affiliates of Cerberus — 250 — — — 250 Payments of dividends to Parent — — — (808 ) 404 (404 ) Net transfers to affiliates (1,759 ) (35,517 ) (23,767 ) — 61,043 — Net cash used in financing activities (1,759 ) (35,267 ) (23,767 ) (808 ) 61,447 (154 ) Net (decrease) increase in cash and cash equivalents — — (37,874 ) 3,879 — (33,995 ) Cash and cash equivalents, beginning of period — — 95,365 13,417 — 108,782 Cash and cash equivalents, end of period $ — $ — $ 57,491 $ 17,296 $ — $ 74,787 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated potential subsequent events occurring after the period end date through the date the financial statements were issued and concluded that there were no material subsequent events for the quarter ended March 31, 2017 , except as disclosed within the Notes to the unaudited condensed consolidated financial statements. |
Basis of Presentation and Acc20
Basis of Presentation and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Delta Tucker Holdings, Inc. ("Holdings"), the parent of DynCorp International Inc. ("DynCorp International"), through its subsidiaries (together, "the Company"), provides defense and technical services and government outsourced solutions primarily to U.S. government agencies domestically and internationally. The Company was incorporated in the state of Delaware on April 1, 2010. Our customers include the DoD, the U.S. Department of State ("DoS"), the U.S. Agency for International Development ("USAID"), foreign governments, commercial customers and certain other U.S. federal, state and local government departments and agencies. Unless the context otherwise indicates, references herein to "we," "our," "us," or "the Company" refer to Delta Tucker Holdings, Inc. and our consolidated subsidiaries. The unaudited condensed consolidated financial statements include the accounts of the Company and our domestic and foreign subsidiaries. These unaudited condensed consolidated financial statements have been prepared pursuant to accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that all disclosures are adequate and do not make the information presented misleading. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, normal recurring adjustments necessary to fairly present our financial position as of March 31, 2017 and December 31, 2016 , the results of operations and statements of comprehensive loss for the three months ended March 31, 2017 and March 25, 2016 and the statements of deficit and cash flows for the three months ended March 31, 2017 and March 25, 2016 have been included. The results of operations and statements of comprehensive loss for the three months ended March 31, 2017 and March 25, 2016 and the statements of deficit and cash flows for the three months ended March 31, 2017 and March 25, 2016 are not necessarily indicative of the results to be expected for the full calendar year or for any future periods. We use estimates and assumptions required for preparation of the financial statements. The estimates are primarily based on historical experience and business knowledge and are revised as circumstances change. Our actual results may differ from these estimates. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of both our domestic and foreign subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company has investments in joint ventures that are variable interest entities ("VIEs"). The VIE investments are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810 — Consolidation . In cases where the Company has (i) the power to direct the activities of the VIE that most significantly impact its economic performance and (ii) the obligation to absorb losses of the VIE that could potentially be significant or the right to receive benefits from the entity that could potentially be significant to the VIE, the Company consolidates the entity. Alternatively, in cases where all of the aforementioned criteria are not met, the investment is accounted for under the equity method. We classify our equity method investees in two distinct groups based on management’s day-to-day involvement in the operations of each entity and the nature of each joint venture’s business. If the joint venture is deemed to be an extension of one of our segments and operationally integral to the business, our share of the joint venture’s earnings is reported within operating loss in Earnings from equity method investees in the consolidated statement of operations. If the Company considers our involvement less significant, the share of the joint venture’s net earnings is reported in Other income, net in the consolidated statement of operations. Noncontrolling Interests We record the impact of our partners' 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. We hold 25% ownership interest in DIFZ. We continue to consolidate DIFZ as we still exercise power over activities that significantly impact DIFZ’s economic performance and have the obligation to absorb losses or receive benefits of DIFZ that could potentially be significant to DIFZ. Noncontrolling interests is presented on the face of the statements of operations as an increase or reduction in arriving at "Net loss attributable to Delta Tucker Holdings, Inc." Noncontrolling interests is located in the equity section on the consolidated balance sheets. See Note 10 for further discussion regarding DIFZ. |
Use of Estimates | Use of Estimates The preparation of the financial statements requires us to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Our estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the consolidated statements of operations in the period that they are determined. Changes in contract estimates related to certain types of contracts accounted for using the percentage of completion method of accounting are recognized in the period in which such changes are made for the inception-to-date effect of the changes. Changes in these estimates can occur over the life of a contract for a variety of reasons, including changes in scope, estimated incentive or award fees, cost estimates, level of effort and/or other assumptions impacting revenue or cost to perform a contract. The gross favorable and unfavorable adjustments below reflect these changes in contract estimates during each reporting period, excluding new or completed contracts where no comparative estimates exist between reporting periods. |
Accounting Policies | Accounting Policies There have been no material changes to our significant accounting policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2016 , except as described below. |
Recently Adopted Accounting Developments and Recently Issued Accounting Developments | Recently Adopted Accounting Standards In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . ASU 2015-11 requires an entity who measures inventory using FIFO or average cost to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs. The update is effective for fiscal years beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2016 and applied prospectively. Early adoption is permitted, including adoption in an interim period. The Company adopted ASU 2015-11 on a prospective basis during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting . ASU 2016-07 simplifies the equity method by eliminating the requirement to apply it retrospectively to an investment that subsequently qualifies for such accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments are effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016 and applied prospectively. Early adoption is permitted. The Company adopted ASU 2016-17 during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU 2017-01 is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company elected to early adopt ASU 2017-01 during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test. ASU 2017-04 modifies the concept of goodwill impairment to represent the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for goodwill impairment testing for interim and annual periods beginning after December 15, 2019, and requires a prospective transition. Early adoption is permitted for interim and annual goodwill impairment tests performed after January 1, 2017. The Company elected to early adopt ASU 2017-04 on a prospective basis during the first quarter of calendar year 2017. The adoption of this guidance did not have a material impact on our consolidated financial statements or disclosures. Recently Issued Accounting Developments In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which outlines a single set of comprehensive principles for recognizing revenue under GAAP. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effective date of ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . ASU 2016-12 clarifies the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax and transition. These ASUs apply to all entities that enter into contracts with customers to transfer goods or services. These ASUs are effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the choice to apply these ASUs either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying these standards at the date of initial application and not adjusting comparative information. We are analyzing the impact of the new standard on the Company’s revenue contracts, comparing our current accounting policies and practices to the requirements of the new standard, and identifying potential differences that would result from applying the new standard to our contracts. We are also identifying and implementing changes to the Company’s business processes, systems and controls to support adoption of the new standard in calendar year 2018 and recasting prior periods’ financial information. In February 2016, the FASB issued ASU No. 2016-02, Leases . The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases . ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Entities are required to adopt ASU 2016-02 using a modified retrospective approach, subject to certain optional practice expedients, and apply the provisions of ASU 2016-02 to leasing arrangements existing at or entered into after the earliest comparative period presented in the financial statements. We are currently evaluating the potential effects of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the existing incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments are effective for annual reporting periods, and interim periods therein, beginning after December 15, 2019 and applied using a prospective transition approach for debt securities for which an other-than-temporary impairment had been recognized before the effective date. We are currently evaluating the potential effects of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . ASU 2016-15 provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard is intended to reduce current diversity in practice. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017 and will require a retrospective approach. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential effects of the adoption of ASU 2016-15 on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-entity Asset Transfers of Assets Other than Inventory , which requires that an entity recognize the tax expense from the sale of intra-entity sales of assets, other than inventory, in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. ASU 2016-16 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the potential effects of the adoption of ASU 2016-16 on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. ASU 2016-18 clarifies the guidance on the cash flow classification and presentation of changes in restricted cash or restricted cash equivalents . Therefore, amounts generally described as restricted cash or restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flow. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and will be applied using a retrospective transition method to each period presented. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the potential effects of the adoption of ASU 2016-18 on our consolidated financial statements. Other accounting standards updates effective after March 31, 2017 are not expected to have a material effect on our consolidated financial position or results of operations and cash flows for the period ended March 31, 2017 . |
Basis of Presentation and Acc21
Basis of Presentation and Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Aggregate gross favorable and unfavorable adjustments to income before income taxes | The following table presents the aggregate gross favorable and unfavorable adjustments to income (loss) before income taxes resulting from changes in contract estimates, for the three months ended March 31, 2017 and March 25, 2016 . Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Gross favorable adjustments $ 9.3 $ 6.7 Gross unfavorable adjustments (1.2 ) (2.0 ) Net adjustments $ 8.1 $ 4.7 |
Composition of Certain Financ22
Composition of Certain Financial Statement Captions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Prepaid expenses and other current assets | The following tables present financial information of certain consolidated balance sheet captions. Prepaid expenses and other current assets As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Prepaid expenses $ 42,585 $ 39,895 Inventories 18,656 18,451 Work-in-process inventory 279 164 Joint venture receivables 46 84 Other current assets 5,753 7,100 Total prepaid expenses and other current assets $ 67,319 $ 65,694 |
Property, plant and equipment | Property and equipment, net As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Aircraft $ 3,881 $ 2,997 Computers and related equipment 7,318 7,161 Leasehold improvements 21,099 20,934 Office furniture and fixtures 5,490 5,499 Vehicles 3,370 3,430 Gross property and equipment 41,158 40,021 Less accumulated depreciation (24,138 ) (23,385 ) Total property and equipment, net $ 17,020 $ 16,636 |
Other assets, net | Other assets, net As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Investment in affiliates $ 7,277 $ 7,825 Palm promissory note, long-term portion 2,033 2,034 Other 3,570 3,513 Total other assets, net $ 12,880 $ 13,372 |
Accrued payroll and employee costs | Accrued payroll and employee costs As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Wages, compensation and other benefits $ 71,964 $ 82,062 Accrued vacation 14,397 12,462 Accrued contributions to employee benefit plans 819 1,056 Total accrued payroll and employee costs $ 87,180 $ 95,580 |
Accrued liabilities | Accrued liabilities As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Customer liabilities $ 19,154 $ 20,762 Accrued insurance 23,853 26,201 Accrued interest 13,840 25,807 Contract losses 6,224 10,912 Legal reserves 4,419 4,597 Subcontractor retention — 250 Other 10,627 15,549 Total accrued liabilities $ 78,117 $ 104,078 |
Goodwill and Other Intangible23
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information about changes relating to certain intangible assets | The following tables provide information about changes relating to certain intangible assets: As of March 31, 2017 (Amounts in thousands, except years) Weighted Average Remaining Useful Life (Years) Gross Carrying Value Accumulated Amortization Net Other intangible assets: Customer-related intangible assets 2.7 $ 252,615 $ (179,835 ) $ 72,780 Other Finite-lived 1.1 13,799 (10,623 ) 3,176 Total other intangibles $ 266,414 $ (190,458 ) $ 75,956 Tradenames: Finite-lived 0.0 $ 869 $ (869 ) $ — Indefinite-lived 28,536 — 28,536 Total tradenames $ 29,405 $ (869 ) $ 28,536 As of December 31, 2016 (Amounts in thousands, except years) Weighted Gross Accumulated Net Other intangible assets: Customer-related intangible assets 3.0 $ 252,615 $ (172,242 ) $ 80,373 Other Finite-lived 1.0 14,238 (10,542 ) 3,696 Total other intangibles $ 266,853 $ (182,784 ) $ 84,069 Tradenames: Finite-lived 0.0 $ 869 $ (869 ) $ — Indefinite-lived 28,536 — 28,536 Total tradenames $ 29,405 $ (869 ) $ 28,536 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Domestic and foreign components of Income (loss) before income taxes | The domestic and foreign components of Income (loss) before income taxes are as follows: Three Months Ended (Amounts in thousands) March 31, 2017 March 25, 2016 Domestic $ 2,784 $ (10,592 ) Foreign 43 514 Income (loss) before income taxes $ 2,827 $ (10,078 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Accounts receivable | Accounts receivable, net consisted of the following: As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Billed $ 114,445 $ 93,409 Unbilled 191,585 206,846 Total accounts receivable, net $ 306,030 $ 300,255 |
Fair Value of Financial Asset26
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimate of fair value of long-term debt based on quoted prices in active markets | We used the following techniques in determining the fair value disclosed for the Cerberus 3L Notes classified as Level 3. The fair value as March 31, 2017 , has been calculated by discounting the expected cash flows using a discount rate of 17.9% . This discount rate is determined using the Moody's credit rating for the New Notes and reducing the rating one level lower for the Cerberus 3L Notes as they are subordinated to the New Notes. As Of March 31, 2017 December 31, 2016 (Amounts in thousands) Carrying Amount Fair Value Carrying Amount Fair Value 10.375% senior unsecured notes $ 39,319 $ 39,122 $ 39,319 $ 37,132 11.875% senior secured second lien notes 376,185 357,376 373,385 343,282 Term loan 207,400 206,881 207,400 200,141 Cerberus 3L notes 31,221 9,746 30,831 9,624 Total indebtedness 654,125 613,125 650,935 590,179 Less current portion of long-term debt (64,433 ) (64,173 ) (64,433 ) (61,367 ) Total long-term debt $ 589,692 $ 548,952 $ 586,502 $ 528,812 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Debt consisted of the following: As of March 31, 2017 (Amounts in thousands) Carrying Amount Original Issue Discount on Term Loan Deferred Financing Costs, Net Carrying Amount less Original Issue Discount on Term Loan and Deferred Financing Costs, Net 10.375% senior unsecured notes $ 39,319 $ — $ — $ 39,319 11.875% senior secured second lien notes 376,185 — (1,481 ) 374,704 Term loan 207,400 (11,689 ) (3,890 ) 191,821 Cerberus 3L notes 31,221 — (78 ) 31,143 Total indebtedness 654,125 (11,689 ) (5,449 ) 636,987 Less current portion of long-term debt (64,433 ) 1,268 210 (62,955 ) Total long-term debt $ 589,692 $ (10,421 ) $ (5,239 ) $ 574,032 As of December 31, 2016 (Amounts in thousands) Carrying Amount Original Issue Discount on Term Loan Deferred Financing Costs, Net Carrying Amount less Original Issue Discount on Term Loan and Deferred Financing Costs, Net 10.375% senior unsecured notes $ 39,319 $ — $ — $ 39,319 11.875% senior secured second lien notes 373,385 — (1,581 ) 371,804 Term loan 207,400 (12,570 ) (4,248 ) 190,582 Cerberus 3L notes 30,831 — (80 ) 30,751 Total indebtedness 650,935 (12,570 ) (5,909 ) 632,456 Less current portion of long-term debt (64,433 ) 1,364 226 (62,843 ) Total long-term debt $ 586,502 $ (11,206 ) $ (5,683 ) $ 569,613 |
Schedule of maximum leverage ratios by period end | The maximum total leverage ratios under the New Senior Credit Facility are set forth below as follows: Period Ending Total Leverage Ratio March 31, 2017 7.30 to 1.0 June 30, 2017 6.75 to 1.0 September 29, 2017 6.50 to 1.0 December 31, 2017 5.75 to 1.0 March 30, 2018 5.75 to 1.0 June 29, 2018 5.50 to 1.0 September 28, 2018 5.40 to 1.0 September 29, 2018 and thereafter 4.75 to 1.0 |
Schedule of interest coverage ratios by period end | The minimum interest coverage ratios under the New Senior Credit Facility are set forth below as follows: Period Ending Interest Coverage Ratio March 31, 2017 1.20 to 1.0 June 30, 2017 1.20 to 1.0 September 29, 2017 1.30 to 1.0 December 31, 2017 1.40 to 1.0 March 30, 2018 1.50 to 1.0 June 29, 2018 1.60 to 1.0 June 30, 2018 and thereafter 1.70 to 1.0 |
Schedule of debt redemption prices | In addition, on or after July 1, 2017 , the New Notes will be redeemable at the option of the Company, in whole or in part, at any time and from time to time, upon not less than 30 nor more than 60 days’ prior notice, at the following redemption prices (expressed as a percentage of the principal amount), plus accrued and unpaid cash interest, if any, together with an amount of cash equal to all accrued and unpaid PIK Interest to but excluding the redemption date, if redeemed during the 12-month period commencing on July 1 of the years set forth below: Period Redemption Price 2017 106.00 % 2018 103.00 % 2019 and thereafter 100.00 % |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of the financial information of the reportable segments reconciled | The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: Three Months Ended (Amounts in thousands) March 31, 2017 March 25, 2016 Revenue AELS $ 134,106 $ 136,255 AOLC 153,842 152,255 DynLogistics 172,358 131,189 Headquarters / Other (1) (434 ) 291 Total revenue $ 459,872 $ 419,990 Operating income (loss) AELS $ 3,279 $ 1,741 AOLC 15,667 8,958 DynLogistics 17,500 9,956 Headquarters / Other (2) (16,282 ) (15,177 ) Total operating income (loss) $ 20,164 $ 5,478 Depreciation and amortization AELS $ 265 $ 129 AOLC 24 34 DynLogistics 140 62 Headquarters / Other 8,469 8,291 Total depreciation and amortization (3) $ 8,898 $ 8,516 (1) Headquarters revenue primarily represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. (2) Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers and Global Advisory Group costs, partially offset by equity method investee income. (3) Includes amounts included in Cost of services of $0.3 million and $0.2 million for the three months ended March 31, 2017 and March 25, 2016 , respectively |
Schedule of assets allocation to segment | The following is a summary of the assets of the reportable segments reconciled to the amounts reported in the consolidated financial statements: As Of (Amounts in thousands) March 31, 2017 December 31, 2016 Assets AELS $ 136,487 $ 140,320 AOLC 131,651 133,096 DynLogistics 181,638 168,085 Headquarters / Other (1) 209,769 235,036 Total assets $ 659,545 $ 676,537 (1) Assets primarily include cash, investments in unconsolidated subsidiaries, and intangible assets (excluding goodwill). |
Related Parties, Joint Ventur29
Related Parties, Joint Ventures and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Ownership percentage of Joint Ventures and Variable Interest Entities | The following tables present selected financial information for DIFZ as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and March 25, 2016 : As Of (Amounts in millions) March 31, 2017 December 31, 2016 Assets $ 4.9 $ 4.2 Liabilities 1.8 1.1 Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Revenue $ 41.0 $ 39.8 |
Selected financial information for related parties and equity method investees | The following tables present selected financial information for our equity method investees as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and March 25, 2016 : As Of (Amounts in millions) March 31, 2017 December 31, 2016 Current assets $ 24.9 $ 27.7 Total assets 25.2 29.3 Current liabilities 8.7 10.1 Total liabilities 8.7 10.1 Three Months Ended (Amounts in millions) March 31, 2017 March 25, 2016 Revenue $ 8.2 $ 14.7 Gross (loss) profit (1.6 ) 0.3 Net (loss) income (1.5 ) 0.4 |
Consolidating Financial State30
Consolidating Financial Statements of Subsidiary Guarantors (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Unaudited Condensed Consolidating Statement of Operations | Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Operations Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Revenue $ — $ — $ 463,274 $ 46,429 $ (49,831 ) $ 459,872 Cost of services — — (403,232 ) (46,067 ) 49,822 (399,477 ) Selling, general and administrative expenses — — (31,625 ) (100 ) 6 (31,719 ) Depreciation and amortization expense — — (8,385 ) (173 ) 3 (8,555 ) Earnings from equity method investees — — 43 — — 43 Operating income — — 20,075 89 — 20,164 Interest expense — (17,753 ) (962 ) — — (18,715 ) Interest income — — 5 — — 5 Equity in (loss) income of consolidated subsidiaries (487 ) 11,054 (113 ) — (10,454 ) — Other income, net — — 1,333 40 — 1,373 (Loss) income before income taxes (487 ) (6,699 ) 20,338 129 (10,454 ) 2,827 Benefit (provision) for income taxes — 6,212 (9,284 ) 33 — (3,039 ) Net (loss) income (487 ) (487 ) 11,054 162 (10,454 ) (212 ) Noncontrolling interests — — — (275 ) — (275 ) Net (loss) income attributable to Delta Tucker Holdings, Inc. $ (487 ) $ (487 ) $ 11,054 $ (113 ) $ (10,454 ) $ (487 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Operations Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Revenue $ — $ — $ 423,427 $ 44,818 $ (48,255 ) $ 419,990 Cost of services — — (375,778 ) (44,959 ) 48,239 (372,498 ) Selling, general and administrative expenses — — (34,082 ) (22 ) 14 (34,090 ) Depreciation and amortization expense — — (8,124 ) (169 ) 2 (8,291 ) Earnings from equity method investees — — 367 — — 367 Operating income (loss) — — 5,810 (332 ) — 5,478 Interest expense — (15,278 ) (690 ) — — (15,968 ) Interest income — — 59 1 — 60 Equity in loss of consolidated subsidiaries (14,759 ) (4,828 ) (547 ) — 20,134 — Other income (expense), net — — 359 (7 ) — 352 (Loss) income before income taxes (14,759 ) (20,106 ) 4,991 (338 ) 20,134 (10,078 ) Benefit (provision) for income taxes — 5,347 (9,819 ) (22 ) — (4,494 ) Net loss (14,759 ) (14,759 ) (4,828 ) (360 ) 20,134 (14,572 ) Noncontrolling interests — — — (187 ) — (187 ) Net loss attributable to Delta Tucker Holdings, Inc. $ (14,759 ) $ (14,759 ) $ (4,828 ) $ (547 ) $ 20,134 $ (14,759 ) |
Unaudited Condensed Consolidating Statement of Comprehensive Loss | Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Comprehensive Loss Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net (loss) income $ (487 ) $ (487 ) $ 11,054 $ 162 $ (10,454 ) $ (212 ) Other comprehensive income, net of tax: Foreign currency translation adjustment 12 12 — 12 (24 ) 12 Other comprehensive income, before tax 12 12 — 12 (24 ) 12 Income tax expense related to items of other comprehensive income (4 ) (4 ) — (4 ) 8 (4 ) Other comprehensive income 8 8 — 8 (16 ) 8 Comprehensive (loss) income (479 ) (479 ) 11,054 170 (10,470 ) (204 ) Noncontrolling interests — — — (275 ) — (275 ) Comprehensive (loss) income attributable to Delta Tucker Holdings, Inc. $ (479 ) $ (479 ) $ 11,054 $ (105 ) $ (10,470 ) $ (479 ) Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Comprehensive Loss Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net loss $ (14,759 ) $ (14,759 ) $ (4,828 ) $ (360 ) $ 20,134 $ (14,572 ) Other comprehensive income, net of tax: Foreign currency translation adjustment 3 3 — 3 (6 ) 3 Other comprehensive income, before tax 3 3 — 3 (6 ) 3 Income tax expense related to items of other comprehensive income (1 ) (1 ) — (1 ) 2 (1 ) Other comprehensive income 2 2 — 2 (4 ) 2 Comprehensive loss (14,757 ) (14,757 ) (4,828 ) (358 ) 20,130 (14,570 ) Noncontrolling interests — — — (187 ) — (187 ) Comprehensive loss attributable to Delta Tucker Holdings, Inc. $ (14,757 ) $ (14,757 ) $ (4,828 ) $ (545 ) $ 20,130 $ (14,757 ) |
Unaudited Condensed Consolidating Balance Sheet | Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Balance Sheet Information March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 84,200 $ 23,007 $ — $ 107,207 Restricted cash — 1,784 720 — — 2,504 Accounts receivable, net — — 324,681 149 (18,800 ) 306,030 Intercompany receivables — — 166,701 1,115 (167,816 ) — Prepaid expenses and other current assets — — 62,501 5,432 (614 ) 67,319 Total current assets — 1,784 638,803 29,703 (187,230 ) 483,060 Property and equipment, net — — 16,238 782 — 17,020 Goodwill — — 9,694 32,399 — 42,093 Tradenames, net — — 28,536 — — 28,536 Other intangibles, net — — 75,956 — — 75,956 Investment in subsidiaries — 565,410 56,220 — (621,630 ) — Other assets, net — — 10,253 2,627 — 12,880 Total assets $ — $ 567,194 $ 835,700 $ 65,511 $ (808,860 ) $ 659,545 LIABILITIES & DEFICIT Current liabilities: Current portion of long-term debt $ — $ 62,955 $ — $ — $ — $ 62,955 Accounts payable — — 78,045 5,213 (1,507 ) 81,751 Accrued payroll and employee costs — — 83,974 3,206 — 87,180 Intercompany payables 45,086 121,615 1,115 — (167,816 ) — Deferred income taxes — — — 28 (28 ) — Accrued liabilities 222,746 31,338 63,657 844 (240,468 ) 78,117 Income taxes payable — — 11,345 — (157 ) 11,188 Total current liabilities 267,832 215,908 238,136 9,291 (409,976 ) 321,191 Long-term debt — 574,032 — — — 574,032 Long-term deferred taxes — — 15,286 — — 15,286 Other long-term liabilities — — 11,408 — — 11,408 Noncontrolling interests — — 5,460 — — 5,460 (Deficit) equity (267,832 ) (222,746 ) 565,410 56,220 (398,884 ) (267,832 ) Total liabilities and deficit $ — $ 567,194 $ 835,700 $ 65,511 $ (808,860 ) $ 659,545 Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Balance Sheet Information December 31, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 106,416 $ 11,802 $ — $ 118,218 Restricted cash — 6,944 720 — — 7,664 Accounts receivable, net — — 304,729 2,525 (6,999 ) 300,255 Intercompany receivables — — 183,587 9,827 (193,414 ) — Prepaid expenses and other current assets — — 63,776 2,516 (598 ) 65,694 Total current assets — 6,944 659,228 26,670 (201,011 ) 491,831 Property and equipment, net — — 15,788 848 — 16,636 Goodwill — — 9,694 32,399 — 42,093 Tradenames, net — — 28,536 — — 28,536 Other intangibles, net — — 84,069 — — 84,069 Investment in subsidiaries — 572,176 54,538 — (626,714 ) — Other assets, net — — 10,575 2,797 — 13,372 Total assets $ — $ 579,120 $ 862,428 $ 62,714 $ (827,725 ) $ 676,537 LIABILITIES & DEFICIT Current liabilities: Current portion of long-term debt $ — $ 62,843 $ — $ — $ — $ 62,843 Accounts payable — — 67,287 3,859 (1,404 ) 69,742 Accrued payroll and employee costs — — 92,036 3,544 — 95,580 Intercompany payables 45,086 138,501 9,827 — (193,414 ) — Deferred income taxes — — — 26 (26 ) — Accrued liabilities 222,306 30,469 78,926 747 (228,370 ) 104,078 Income taxes payable — — 9,406 — (103 ) 9,303 Total current liabilities 267,392 231,813 257,482 8,176 (423,317 ) 341,546 Long-term debt — 569,613 — — — 569,613 Long-term deferred taxes — — 14,825 — — 14,825 Other long-term liabilities — — 12,490 — — 12,490 Noncontrolling interests — — 5,455 — — 5,455 (Deficit) Equity (267,392 ) (222,306 ) 572,176 54,538 (404,408 ) (267,392 ) Total liabilities and deficit $ — $ 579,120 $ 862,428 $ 62,714 $ (827,725 ) $ 676,537 |
Unaudited Condensed Consolidating Statement of Cash Flow | Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Cash Flow Information For the Three Months Ended March 31, 2017 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 11,627 $ (29,347 ) $ 2,851 $ (179 ) $ (15,048 ) Cash flows from investing activities: Purchase of property and equipment — — (1,757 ) — — (1,757 ) Proceeds from sale of property, plant and equipment — — 370 — — 370 Purchase of software — — (26 ) — — (26 ) Cash restricted from Cerberus 3L Notes — 5,160 — — — 5,160 Return of capital from equity method investees — — 1,269 — — 1,269 Contributions to equity method investees — — (900 ) — — (900 ) Transfers from affiliates — — 16,887 8,712 (25,599 ) — Net cash provided by investing activities — 5,160 15,843 8,712 (25,599 ) 4,116 Cash flows from financing activities: Equity contribution from affiliates of Cerberus — 100 — — — 100 Payments of dividends to noncontrolling interests — — — (358 ) 179 (179 ) Net transfers to affiliates — (16,887 ) (8,712 ) — 25,599 — Net cash used in financing activities — (16,787 ) (8,712 ) (358 ) 25,778 (79 ) Net (decrease) increase in cash and cash equivalents — — (22,216 ) 11,205 — (11,011 ) Cash and cash equivalents, beginning of period — — 106,416 11,802 — 118,218 Cash and cash equivalents, end of period $ — $ — $ 84,200 $ 23,007 $ — $ 107,207 Delta Tucker Holdings, Inc. and Subsidiaries Unaudited Condensed Consolidating Statement of Cash Flow Information For the Three Months Ended March 25, 2016 (Amounts in thousands) Parent Subsidiary Issuer Subsidiary Guarantors Subsidiary Non- Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ 1,759 $ 35,267 $ (48,110 ) $ (19,056 ) $ (403 ) $ (30,543 ) Cash flows from investing activities: Purchase of property and equipment — — (788 ) (24 ) — (812 ) Purchase of software — — (1,261 ) — — (1,261 ) Contributions to equity method investees — — (1,225 ) — — (1,225 ) Transfers from affiliates — — 37,277 23,767 (61,044 ) — Net cash provided by investing activities — — 34,003 23,743 (61,044 ) (3,298 ) Cash flows from financing activities: Equity contributions from affiliates of Cerberus — 250 — — — 250 Payments of dividends to Parent — — — (808 ) 404 (404 ) Net transfers to affiliates (1,759 ) (35,517 ) (23,767 ) — 61,043 — Net cash used in financing activities (1,759 ) (35,267 ) (23,767 ) (808 ) 61,447 (154 ) Net (decrease) increase in cash and cash equivalents — — (37,874 ) 3,879 — (33,995 ) Cash and cash equivalents, beginning of period — — 95,365 13,417 — 108,782 Cash and cash equivalents, end of period $ — $ — $ 57,491 $ 17,296 $ — $ 74,787 |
Basis of Presentation and Acc31
Basis of Presentation and Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2017group | |
Accounting Policies [Abstract] | |
Number of equity method investees classification groups | 2 |
Interest in joint venture (as a percent0 | 100.00% |
Ownership in DIFZ (as a percent) | 25.00% |
Basis of Presentation and Acc32
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Accounting Policies [Abstract] | ||
Gross favorable adjustments | $ 9.3 | $ 6.7 |
Gross unfavorable adjustments | (1.2) | (2) |
Net adjustments | $ 8.1 | $ 4.7 |
Composition of Certain Financ33
Composition of Certain Financial Statement Captions (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Prepaid expenses and other current assets | ||
Prepaid expenses | $ 42,585 | $ 39,895 |
Inventories | 18,656 | 18,451 |
Work-in-process inventory | 279 | 164 |
Joint venture receivables | 46 | 84 |
Other current assets | 5,753 | 7,100 |
Total prepaid expenses and other current assets | $ 67,319 | $ 65,694 |
Composition of Certain Financ34
Composition of Certain Financial Statement Captions (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Maximum percentage of prepaid expense on current assets (as a percent) | 5.00% | ||
Property, plant and equipment, additions | $ 0.1 | $ 0.3 | |
Depreciation | 1 | $ 1 | |
Other long-term liabilities | 11.4 | 12.5 | |
Deferred compensation liability, classified, noncurrent | 3.5 | 4.3 | |
Unrecognized tax benefits | 3.3 | 3.3 | |
Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Other long-term liabilities included in long-term leasehold obligations | $ 3.2 | $ 3.3 |
Composition of Certain Financ35
Composition of Certain Financial Statement Captions (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Aircraft | $ 3,881 | $ 2,997 |
Computers and related equipment | 7,318 | 7,161 |
Leasehold improvements | 21,099 | 20,934 |
Office furniture and fixtures | 5,490 | 5,499 |
Vehicles | 3,370 | 3,430 |
Gross property and equipment | 41,158 | 40,021 |
Less accumulated depreciation | (24,138) | (23,385) |
Total property and equipment, net | $ 17,020 | $ 16,636 |
Composition of Certain Financ36
Composition of Certain Financial Statement Captions (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Investment in affiliates | $ 7,277 | $ 7,825 |
Palm promissory note, long-term portion | 2,033 | 2,034 |
Other | 3,570 | 3,513 |
Total other assets, net | $ 12,880 | $ 13,372 |
Composition of Certain Financ37
Composition of Certain Financial Statement Captions (Details 3) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Wages, compensation and other benefits | $ 71,964 | $ 82,062 |
Accrued vacation | 14,397 | 12,462 |
Accrued contributions to employee benefit plans | 819 | 1,056 |
Total accrued payroll and employee costs | $ 87,180 | $ 95,580 |
Composition of Certain Financ38
Composition of Certain Financial Statement Captions (Details 4) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Customer liabilities | $ 19,154 | $ 20,762 |
Accrued insurance | 23,853 | 26,201 |
Accrued interest | 13,840 | 25,807 |
Contract losses | 6,224 | 10,912 |
Legal reserves | 4,419 | 4,597 |
Subcontractor retention | 0 | 250 |
Other | 10,627 | 15,549 |
Total accrued liabilities | $ 78,117 | $ 104,078 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Information about changes relating to certain intangible assets | ||
Indefinite-lived assets, gross carrying value | $ 28,536 | $ 28,536 |
Finite-lived intangible assets, estimated aggregate future amortization expense | ||
Remaining 2,017 | 21,600 | |
2,018 | 21,700 | |
2,019 | 21,500 | |
2,020 | 11,100 | |
2,021 | 100 | |
Thereafter | $ 0 | |
Customer-related intangible assets | ||
Information about changes relating to certain intangible assets | ||
Finite-lived assets, weighted average remaining useful years (in years) | 2 years 8 months 12 days | 3 years |
Finite-lived assets, gross carrying value | $ 252,615 | $ 252,615 |
Finite-lived assets, accumulated amortization | (179,835) | (172,242) |
Total | $ 72,780 | $ 80,373 |
Other intangible assets | ||
Information about changes relating to certain intangible assets | ||
Finite-lived assets, weighted average remaining useful years (in years) | 1 year 1 month 12 days | 1 year |
Finite-lived assets, gross carrying value | $ 13,799 | $ 14,238 |
Finite-lived assets, accumulated amortization | (10,623) | (10,542) |
Total | 3,176 | 3,696 |
Total finite-lived and indefinite-lived assets, gross carrying value | 266,414 | 266,853 |
Total finite-lived and indefinite-lived assets, accumulated amortization | (190,458) | (182,784) |
Total finite-lived and definite-lived assets, net | $ 75,956 | $ 84,069 |
Tradenames | ||
Information about changes relating to certain intangible assets | ||
Finite-lived assets, weighted average remaining useful years (in years) | 1 day | 0 years |
Finite-lived assets, gross carrying value | $ 869 | $ 869 |
Finite-lived assets, accumulated amortization | (869) | (869) |
Total | 0 | 0 |
Indefinite-lived assets, gross carrying value | 28,536 | 28,536 |
Indefinite lived , net of impairment | 28,536 | 28,536 |
Total finite-lived and indefinite-lived assets, gross carrying value | 29,405 | 29,405 |
Total finite-lived and indefinite-lived assets, accumulated amortization | (869) | (869) |
Total finite-lived and definite-lived assets, net | $ 28,536 | $ 28,536 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Details Textual) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)reporting_unitoperating_and_reporting_segment | Mar. 25, 2016USD ($) | Dec. 31, 2016USD ($) | |
Subsidiary or Equity Method Investee [Line Items] | |||
Number of operating and reportable segment | operating_and_reporting_segment | 3 | ||
Number of reporting units | reporting_unit | 3 | ||
Goodwill | $ 42,093 | $ 42,093 | |
Amortization expense | 7,900 | $ 7,500 | |
Capitalized software gross value | 3,200 | 3,700 | |
Operating Segments | DynLogistics | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Goodwill | $ 42,100 | $ 42,100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Domestic and foreign components of Income (loss) before income taxes | ||
Domestic | $ 2,784 | $ (10,592) |
Foreign | 43 | 514 |
Income (loss) before income taxes | $ 2,827 | $ (10,078) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Non-current deferred tax liabilities | $ 15,286,000 | $ 14,825,000 | |
Effective tax rate (as a percent) | 107.50% | (44.60%) | |
Cumulative losses, term (in years) | 3 years | ||
Deferred tax assets, valuation allowance | $ 89,900,000 | $ 88,800,000 | |
Unrecognized tax benefit | 2,600,000 | 2,600,000 | |
Unrecognized tax benefits if recognized, affect effective tax rate | 2,300,000 | $ 2,300,000 | |
Income taxes paid (refund received), net of receipts | (775,000) | $ 3,000 | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Income taxes paid (refund received), net of receipts | $ 0 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 306,030 | $ 300,255 |
Billed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | 114,445 | 93,409 |
Unbilled | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 191,585 | $ 206,846 |
Accounts Receivable (Details Te
Accounts Receivable (Details Textual) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)contract_claim | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled receivables | $ 29 | $ 26.7 |
Number of contract claims | contract_claim | 3 | |
Receivables on contract claims outstanding, net of reserves | $ 2.6 | 2.4 |
Allowance for doubtful accounts receivable, period increase (decrease) | 17.2 | $ 17.2 |
UNITED STATES | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net | $ 26 |
Fair Value of Financial Asset45
Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Jun. 15, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Discount rate (as a percent) | 17.90% | ||
Carrying Amount | $ 654,125 | $ 650,935 | |
Total indebtedness | 636,987 | 632,456 | |
Less current portion of long-term debt | (64,433) | (64,433) | |
Total long-term debt | $ 589,692 | $ 586,502 | |
10.375% senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate, senior unsecured notes (as a percent) | 10.375% | 10.375% | 10.375% |
Carrying Amount | $ 39,300 | ||
11.875 % senior secured second lien notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate, senior unsecured notes (as a percent) | 11.875% | 11.875% | |
Term loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | $ 207,400 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total indebtedness | 613,125 | $ 590,179 | |
Less current portion of long-term debt | (64,173) | (61,367) | |
Total long-term debt | 548,952 | 528,812 | |
Fair Value, Measurements, Recurring | 10.375% senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total indebtedness | 39,122 | 37,132 | |
Fair Value, Measurements, Recurring | 11.875 % senior secured second lien notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total indebtedness | 357,376 | 343,282 | |
Fair Value, Measurements, Recurring | Term loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total indebtedness | 206,881 | 200,141 | |
Fair Value, Measurements, Recurring | Cerberus 3L notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total indebtedness | 9,746 | 9,624 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | 10.375% senior unsecured notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 39,319 | 39,319 | |
Total indebtedness | 39,319 | 39,319 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | 11.875 % senior secured second lien notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 376,185 | 373,385 | |
Total indebtedness | 374,704 | 371,804 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Term loan | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 207,400 | 207,400 | |
Total indebtedness | 191,821 | 190,582 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Cerberus 3L notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount | 31,221 | 30,831 | |
Total indebtedness | $ 31,143 | $ 30,751 |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 15, 2016 |
Debt Instrument [Line Items] | |||
Carrying Amount | $ 654,125 | $ 650,935 | |
Original Issue Discount on Term Loan | (11,689) | (12,570) | |
Deferred Financing Costs, Net | (5,449) | (5,909) | |
Total indebtedness | 636,987 | 632,456 | |
Less current portion of long-term debt, carrying amount | (64,433) | (64,433) | |
Less current portion of long-term debt, original issue discount on term loan | 1,268 | 1,364 | |
Less current portion of long-term debt, deferred finance costs, net | 210 | 226 | |
Long-term debt, net | (62,955) | (62,843) | |
Total long-term debt | 589,692 | 586,502 | |
Total Original Issue Discount on Term Loan | (10,421) | (11,206) | |
Total Deferred Financing Costs, Net | (5,239) | (5,683) | |
Total Carrying Amount less Original Issue Discount on Term Loan and Deferred Financing Costs, Net | $ 574,032 | $ 569,613 | |
10.375% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 10.375% | 10.375% | 10.375% |
Carrying Amount | $ 39,300 | ||
11.875 % senior secured second lien notes | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 11.875% | 11.875% | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Carrying Amount | $ 207,400 | ||
Original Issue Discount on Term Loan | (14,400) | ||
Fair Value, Measurements, Recurring | |||
Debt Instrument [Line Items] | |||
Total indebtedness | 613,125 | $ 590,179 | |
Less current portion of long-term debt, carrying amount | (64,173) | (61,367) | |
Total long-term debt | 548,952 | 528,812 | |
Fair Value, Measurements, Recurring | 10.375% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Total indebtedness | 39,122 | 37,132 | |
Fair Value, Measurements, Recurring | 11.875 % senior secured second lien notes | |||
Debt Instrument [Line Items] | |||
Total indebtedness | 357,376 | 343,282 | |
Fair Value, Measurements, Recurring | Term Loan | |||
Debt Instrument [Line Items] | |||
Total indebtedness | 206,881 | 200,141 | |
Fair Value, Measurements, Recurring | Cerberus 3L Note | |||
Debt Instrument [Line Items] | |||
Total indebtedness | 9,746 | 9,624 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | 10.375% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 39,319 | 39,319 | |
Original Issue Discount on Term Loan | 0 | 0 | |
Deferred Financing Costs, Net | 0 | 0 | |
Total indebtedness | 39,319 | 39,319 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | 11.875 % senior secured second lien notes | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 376,185 | 373,385 | |
Original Issue Discount on Term Loan | 0 | 0 | |
Deferred Financing Costs, Net | (1,481) | (1,581) | |
Total indebtedness | 374,704 | 371,804 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Term Loan | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 207,400 | 207,400 | |
Original Issue Discount on Term Loan | (11,689) | (12,570) | |
Deferred Financing Costs, Net | (3,890) | (4,248) | |
Total indebtedness | 191,821 | 190,582 | |
Fair Value, Measurements, Recurring | Reported Value Measurement | Cerberus 3L Note | |||
Debt Instrument [Line Items] | |||
Carrying Amount | 31,221 | 30,831 | |
Original Issue Discount on Term Loan | 0 | 0 | |
Deferred Financing Costs, Net | (78) | (80) | |
Total indebtedness | $ 31,143 | $ 30,751 |
Debt (Details 2)
Debt (Details 2) | 3 Months Ended |
Mar. 31, 2017 | |
Leverage Ratios [Abstract] | |
March 31, 2017 | 7.30 |
June 30, 2017 | 6.75 |
September 29, 2017 | 6.50 |
December 31, 2017 | 5.75 |
March 30, 2018 | 5.75 |
June 29, 2018 | 5.50 |
September 28, 2018 | 5.4 |
September 29, 2018 | 4.75 |
Risk Based Ratios [Abstract] | |
March 31, 2017 | 1.20 |
June 30, 2017 | 1.20 |
September 29, 2017 | 1.30 |
December 31, 2017 | 1.40 |
March 30, 2018 | 1.50 |
June 29, 2018 | 1.60 |
June 30, 2018 and thereafter | 1.70 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) | Apr. 21, 2017 | Apr. 04, 2017 | Jun. 15, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 15, 2018 | Dec. 31, 2015 | Jul. 07, 2010 |
Debt Instrument [Line Items] | ||||||||||
Amortization of financing costs | $ 500,000 | $ 1,500,000 | ||||||||
Long-term debt, gross | 654,125,000 | $ 650,935,000 | ||||||||
Debt instrument, unamortized discount | 11,689,000 | 12,570,000 | ||||||||
Cash and cash equivalents, at carrying value | 107,207,000 | 74,787,000 | 118,218,000 | $ 108,782,000 | ||||||
Additional available borrowing capacity | 49,000,000 | 48,000,000 | ||||||||
Proceeds from contributed capital | $ 100,000 | $ 250,000 | ||||||||
Failure to Repay Debt, Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Indenture default limit | $ 12,500,000 | |||||||||
London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Floor for euro currency rate (as a percent) | 1.75% | |||||||||
Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum spread over other variable rates (as a percent) | 1.00% | |||||||||
Floor variable base rate (as a percent) | 2.75% | |||||||||
Federal Fund Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 0.50% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt less unrestricted cash and cash equivalents | $ 75,000,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Incremental borrowing capacity | 15,000,000 | |||||||||
Long-term line of credit | 0 | $ 0 | ||||||||
Minimum liquidity requirement, amount first year | 60,000,000 | |||||||||
Minimum liquidity requirement, amount thereafter | $ 50,000,000 | |||||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unused commitment fee on revolver (as a percent) | 0.50% | 0.50% | ||||||||
Revolving Credit Facility, Class B | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing | $ 85,800,000 | |||||||||
Revolving Credit Facility, Class B | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 5.50% | |||||||||
Unused commitment fee on revolver (as a percent) | 0.50% | |||||||||
Revolving Credit Facility, Class B | Minimum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 4.50% | |||||||||
Revolving Credit Facility, Class B | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash and cash equivalents, at carrying value | $ 60,000,000 | |||||||||
Revolving Credit Facility, Class B | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 6.00% | |||||||||
Unused commitment fee on revolver (as a percent) | 0.75% | |||||||||
Revolving Credit Facility, Class B | Maximum | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 5.00% | |||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Additional available borrowing capacity | $ 36,800,000 | $ 37,800,000 | ||||||||
Line of credit fronting fee rate (as a percent) | 0.25% | |||||||||
Applicable interest rate for letter of credit sub-facility (as a percent) | 5.75% | 5.75% | ||||||||
Revolving Credit Facility, Class A | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing | $ 24,800,000 | |||||||||
Debt instrument, term (in years) | 2 years | |||||||||
Revolving Credit Facility, Class A | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 4.00% | |||||||||
Revolving Credit Facility, Class A | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 4.50% | |||||||||
New Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis point fee (as a percent) | 7.00% | |||||||||
Applicable interest rate for term loan (as a percent) | 7.75% | 7.75% | ||||||||
Repayments of principal, remainder of fiscal year | $ 22,500,000 | |||||||||
Repayments of principal in next twelve months | $ 22,500,000 | |||||||||
New Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 6.00% | |||||||||
New Term Loan Facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Applicable interest rates (as a percent) | 5.00% | |||||||||
Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 207,400,000 | |||||||||
Debt instrument, unamortized discount | 14,400,000 | |||||||||
Amortization of original issue discount | 900,000 | |||||||||
Term Loan | Cerberus 3L Note | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 30,000,000 | |||||||||
Interest rate, stated percentage, payable in-kind (as a percent) | 5.00% | |||||||||
Funds utilized | $ 5,200,000 | |||||||||
Covenant, decrease in covenant restrictiveness (as a percent) | 25.00% | |||||||||
10.375% Senior Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 39,300,000 | |||||||||
Line of credit facility, excess cash flow required to be used towards principal repayment (as a percent) | 100.00% | |||||||||
Line of credit facility, net cash proceeds of non-ordinary course assets sales, casualty and condemnation events except eligible reinvestments, required to be used towards principal repayment (as a percent) | 100.00% | |||||||||
Debt covenant, permitted reinvestment period | 6 months | |||||||||
Debt covenant, committed reinvestment period | 12 months | |||||||||
Interest rate (as a percent) | 10.375% | 10.375% | 10.375% | |||||||
Debt instrument, face amount | $ 415,700,000 | $ 455,000,000 | ||||||||
Repayments of senior debt | 45,000,000 | |||||||||
Maturity period of quarterly principle payments | Jul. 1, 2017 | |||||||||
Minimum notice period for redemption (in days) | 30 days | |||||||||
Maximum notice period for redemption (in days) | 60 days | |||||||||
Market value of unsecured loans as percentage of stated value ( as a percent) | 99.50% | 94.40% | ||||||||
10.375% Senior Unsecured Notes | Failure to Repay Debt, Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Indenture default limit | $ 10,000,000 | |||||||||
Senior Notes | Senior Secured Second Lien Notes Due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 370,600,000 | |||||||||
Senior Secured Second Lien Notes Due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate (as a percent) | 11.875% | |||||||||
Interest rate, stated percentage, payable in-kind (as a percent) | 1.50% | |||||||||
Redemption price requested by holders (as a percent) | 100.00% | |||||||||
Redemption price requested by holders, under certain conditions (as a percent) | 101.00% | |||||||||
Scenario, Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Other loans to revolver commitment, percent maximum | 50.00% | |||||||||
Debt Instrument, Redemption, Period Two [Member] | 10.375% Senior Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage of principle (as a percent) | 100.00% | |||||||||
Debt Instrument, Redemption, Period Three [Member] | 10.375% Senior Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage of principle (as a percent) | 106.00% | |||||||||
Debt Instrument, Redemption, Period Four [Member] | 10.375% Senior Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage of principle (as a percent) | 103.00% | |||||||||
Debt Instrument, Redemption, Period Five [Member] | 10.375% Senior Unsecured Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage of principle (as a percent) | 100.00% | |||||||||
Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from contributed capital | $ 40,600,000 | |||||||||
Subsequent Event | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of lines of credit | $ 25,100,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Apr. 20, 2017plaintiff | Apr. 03, 2017plaintiff | Feb. 23, 2014USD ($) | Jan. 22, 2014USD ($) | Jan. 12, 2010plaintiff | Mar. 26, 2008plaintiff | Mar. 24, 2008Resident | Sep. 25, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2017USD ($)lawsuit | Mar. 25, 2016USD ($) | Apr. 24, 2007lawsuit | Dec. 31, 2016USD ($) | May 31, 2014USD ($) |
Loss Contingencies [Line Items] | ||||||||||||||
Lease rental expense | $ 9,800,000 | $ 8,200,000 | ||||||||||||
Reserves related to general legal matters | $ 4,419,000 | $ 4,597,000 | ||||||||||||
Number of lawsuits | lawsuit | 4 | |||||||||||||
Number of residents seeking unspecified damages | Resident | 26 | |||||||||||||
Number of individual plaintiffs | plaintiff | 1,256 | 3,266 | ||||||||||||
Number of individual plaintiffs, dismissed | plaintiff | 15 | |||||||||||||
Liability for unpaid claims and claims adjustment expense, incurred but not reported (IBNR) claims, amount | $ 9,600,000 | $ 9,300,000 | ||||||||||||
Fixed amount of stop loss coverage on policies | 1,000,000 | |||||||||||||
Maximum | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Fixed amount of stop loss coverage on policies | 400,000 | |||||||||||||
LOGCAP IV | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Costs and expenses, audit costs settled | 800,000 | |||||||||||||
California Policy | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Fixed amount of stop loss coverage on policies | $ 250,000 | |||||||||||||
Foreign Tax Authority | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contract limits to damages maximum amount | $ 64,200,000 | |||||||||||||
Income tax issue resolved in favor of company | $ 54,000,000 | |||||||||||||
Collectibility of Receivables | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contract limits to damages maximum amount | $ 41,000,000 | |||||||||||||
Other Matters | Foreign Tax Authority | Afghanistan | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contract limits to damages maximum amount | $ 10,200,000 | |||||||||||||
Northrop Grumman Technical Services, Inc. | Performance Guarantee | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Contract limits to damages maximum amount | $ 5,000,000 | |||||||||||||
Cases On Behalf Of Provinces Of Esmeraldas, Sucumbios, Carchi In Ecuador | Dyncorp International Inc | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of residents seeking unspecified damages | lawsuit | 3 | |||||||||||||
Subsequent Event | First Amended Consolidated Complaint | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individual plaintiffs | plaintiff | 6 | |||||||||||||
Subsequent Event | First Amended Consolidated Complaint | Settled Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individual plaintiffs | plaintiff | 6 | |||||||||||||
Subsequent Event | Cases on Behalf of Residents of the Sucumbios Province in Ecuador | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individual plaintiffs | plaintiff | 6 | |||||||||||||
Subsequent Event | Cases on Behalf of Residents of the Sucumbios Province in Ecuador | Settled Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Number of individual plaintiffs | plaintiff | 6 |
Segment Information (Details Te
Segment Information (Details Textual) | 3 Months Ended |
Mar. 31, 2017operating_and_reporting_segment | |
Segment Reporting [Abstract] | |
Number of operating and reportable segment | 3 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | ||
Segment Reporting Information [Line Items] | |||
Cost To services | $ 300 | $ 200 | |
Summary of the financial information of the reportable segments reconciled | |||
Revenue | 459,872 | 419,990 | |
Operating income (loss) | 20,164 | 5,478 | |
Depreciation and amortization | 8,898 | 8,516 | |
Operating Segments | |||
Summary of the financial information of the reportable segments reconciled | |||
Revenue | 459,872 | 419,990 | |
Operating income (loss) | 20,164 | 5,478 | |
Depreciation and amortization | [1] | 8,898 | 8,516 |
Operating Segments | AELS | |||
Summary of the financial information of the reportable segments reconciled | |||
Revenue | 134,106 | 136,255 | |
Operating income (loss) | 3,279 | 1,741 | |
Depreciation and amortization | 265 | 129 | |
Operating Segments | AOLC | |||
Summary of the financial information of the reportable segments reconciled | |||
Revenue | 153,842 | 152,255 | |
Operating income (loss) | 15,667 | 8,958 | |
Depreciation and amortization | 24 | 34 | |
Operating Segments | DynLogistics | |||
Summary of the financial information of the reportable segments reconciled | |||
Revenue | 172,358 | 131,189 | |
Operating income (loss) | 17,500 | 9,956 | |
Depreciation and amortization | 140 | 62 | |
Headquarters / Other | |||
Summary of the financial information of the reportable segments reconciled | |||
Revenue | [2] | (434) | 291 |
Operating income (loss) | [3] | (16,282) | (15,177) |
Depreciation and amortization | $ 8,469 | $ 8,291 | |
[1] | Includes amounts included in Cost of services of $0.3 million and $0.2 million for the three months ended March 31, 2017 and March 25, 2016, respectively. | ||
[2] | Headquarters revenue primarily represents revenue earned on shared services arrangements for general and administrative services provided to unconsolidated joint ventures and elimination of intercompany items between segments. | ||
[3] | Headquarters operating expenses primarily relate to amortization of intangible assets and other costs that are not allocated to segments and are not billable to our U.S. government customers and Global Advisory Group costs, partially offset by equity method investee income. |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Assets | $ 659,545 | $ 676,537 | |
Operating Segments | |||
ASSETS | |||
Assets | 659,545 | 676,537 | |
Operating Segments | AELS | |||
ASSETS | |||
Assets | 136,487 | 140,320 | |
Operating Segments | AOLC | |||
ASSETS | |||
Assets | 131,651 | 133,096 | |
Operating Segments | DynLogistics | |||
ASSETS | |||
Assets | 181,638 | 168,085 | |
Headquarters / Other | |||
ASSETS | |||
Assets | [1] | $ 209,769 | $ 235,036 |
[1] | Assets primarily include cash, investments in unconsolidated subsidiaries, and intangible assets (excluding goodwill). |
Related Parties, Joint Ventur53
Related Parties, Joint Ventures and Variable Interest Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 25, 2016 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Assets | $ 659,545 | $ 676,537 | |
Liabilities | 921,917 | 938,474 | |
Revenue | 459,872 | $ 419,990 | |
Equity Method Investee | |||
Variable Interest Entity [Line Items] | |||
Current assets | 24,900 | 27,700 | |
Total assets | 25,200 | 29,300 | |
Current liabilities | 8,700 | 10,100 | |
Total liabilities | 8,700 | 10,100 | |
Revenue | 8,200 | 14,700 | |
Gross (loss) profit | (1,600) | 300 | |
Net (loss) income | (1,500) | 400 | |
DynCorp International FZ-LLC | |||
Variable Interest Entity [Line Items] | |||
Assets | 4,900 | 4,200 | |
Liabilities | 1,800 | $ 1,100 | |
Revenue | $ 41,000 | $ 39,800 |
Related Parties, Joint Ventur54
Related Parties, Joint Ventures and Variable Interest Entities (Details Textual) | Apr. 21, 2017USD ($) | Mar. 31, 2017USD ($)employee | Mar. 25, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 15, 2016USD ($) |
Variable Interest Entity [Line Items] | |||||
Long-term debt, gross | $ 654,125,000 | $ 650,935,000 | |||
Proceeds from contributed capital | 100,000 | $ 250,000 | |||
Cerberus consulting fees | $ 1,300,000 | 1,800,000 | |||
Number of related parties employed by consulting company | employee | 2 | ||||
Administrative fees | $ 800,000 | 600,000 | |||
Limitation on payments to related parties | 6,000,000 | ||||
Receivables due from related parties | 100,000 | 100,000 | |||
Receivable from unconsolidated joint ventures | 0 | 0 | |||
Related cost of services | 200,000 | 200,000 | |||
Earnings from equity method investees | 43,000 | 367,000 | |||
Revenue | 459,872,000 | 419,990,000 | |||
Investment in unconsolidated joint ventures | 7,277,000 | 7,825,000 | |||
Palm Trading Investment Corp | |||||
Variable Interest Entity [Line Items] | |||||
Promissory note | 9,200,000 | ||||
Outstanding balance of loan | 2,200,000 | $ 2,200,000 | |||
GLS | |||||
Variable Interest Entity [Line Items] | |||||
Revenue | 7,900,000 | 9,900,000 | |||
Net (loss) income | (1,100,000) | (800,000) | |||
Includes operationally integral and non-integral income | |||||
Variable Interest Entity [Line Items] | |||||
Earnings from equity method investees | 100,000 | $ 400,000 | |||
Term Loan | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt, gross | $ 207,400,000 | ||||
Subsequent Event | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from contributed capital | $ 40,600,000 | ||||
Cerberus 3L Note | Term Loan | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt, gross | $ 30,000,000 | ||||
Interest rate, stated percentage, payable in-kind (as a percent) | 5.00% |
Consolidating Financial State55
Consolidating Financial Statements of Subsidiary Guarantors (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | $ 459,872 | $ 419,990 |
Cost of services | (399,477) | (372,498) |
Selling, general and administrative expenses | (31,719) | (34,090) |
Depreciation and amortization expense | (8,555) | (8,291) |
Earnings from equity method investees | 43 | 367 |
Operating income | 20,164 | 5,478 |
Interest expense | (18,715) | (15,968) |
Interest income | 5 | 60 |
Equity in (loss) income of consolidated subsidiaries | 0 | 0 |
Other income, net | 1,373 | 352 |
Income (loss) before income taxes | 2,827 | (10,078) |
Benefit (provision) for income taxes | (3,039) | (4,494) |
Net loss | (212) | (14,572) |
Noncontrolling interests | (275) | (187) |
Net loss attributable to Delta Tucker Holdings, Inc. | (487) | (14,759) |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Cost of services | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Earnings from equity method investees | 0 | 0 |
Operating income | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Equity in (loss) income of consolidated subsidiaries | (487) | (14,759) |
Other income, net | 0 | 0 |
Income (loss) before income taxes | (487) | (14,759) |
Benefit (provision) for income taxes | 0 | 0 |
Net loss | (487) | (14,759) |
Noncontrolling interests | 0 | 0 |
Net loss attributable to Delta Tucker Holdings, Inc. | (487) | (14,759) |
Subsidiary Issuer | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Cost of services | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Depreciation and amortization expense | 0 | 0 |
Earnings from equity method investees | 0 | 0 |
Operating income | 0 | 0 |
Interest expense | (17,753) | (15,278) |
Interest income | 0 | 0 |
Equity in (loss) income of consolidated subsidiaries | 11,054 | (4,828) |
Other income, net | 0 | 0 |
Income (loss) before income taxes | (6,699) | (20,106) |
Benefit (provision) for income taxes | 6,212 | 5,347 |
Net loss | (487) | (14,759) |
Noncontrolling interests | 0 | 0 |
Net loss attributable to Delta Tucker Holdings, Inc. | (487) | (14,759) |
Subsidiary Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 463,274 | 423,427 |
Cost of services | (403,232) | (375,778) |
Selling, general and administrative expenses | (31,625) | (34,082) |
Depreciation and amortization expense | (8,385) | (8,124) |
Earnings from equity method investees | 43 | 367 |
Operating income | 20,075 | 5,810 |
Interest expense | (962) | (690) |
Interest income | 5 | 59 |
Equity in (loss) income of consolidated subsidiaries | (113) | (547) |
Other income, net | 1,333 | 359 |
Income (loss) before income taxes | 20,338 | 4,991 |
Benefit (provision) for income taxes | (9,284) | (9,819) |
Net loss | 11,054 | (4,828) |
Noncontrolling interests | 0 | 0 |
Net loss attributable to Delta Tucker Holdings, Inc. | 11,054 | (4,828) |
Subsidiary Non- Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 46,429 | 44,818 |
Cost of services | (46,067) | (44,959) |
Selling, general and administrative expenses | (100) | (22) |
Depreciation and amortization expense | (173) | (169) |
Earnings from equity method investees | 0 | 0 |
Operating income | 89 | (332) |
Interest expense | 0 | 0 |
Interest income | 0 | 1 |
Equity in (loss) income of consolidated subsidiaries | 0 | 0 |
Other income, net | 40 | (7) |
Income (loss) before income taxes | 129 | (338) |
Benefit (provision) for income taxes | 33 | (22) |
Net loss | 162 | (360) |
Noncontrolling interests | (275) | (187) |
Net loss attributable to Delta Tucker Holdings, Inc. | (113) | (547) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | (49,831) | (48,255) |
Cost of services | 49,822 | 48,239 |
Selling, general and administrative expenses | 6 | 14 |
Depreciation and amortization expense | 3 | 2 |
Earnings from equity method investees | 0 | 0 |
Operating income | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Equity in (loss) income of consolidated subsidiaries | (10,454) | 20,134 |
Other income, net | 0 | 0 |
Income (loss) before income taxes | (10,454) | 20,134 |
Benefit (provision) for income taxes | 0 | 0 |
Net loss | (10,454) | 20,134 |
Noncontrolling interests | 0 | 0 |
Net loss attributable to Delta Tucker Holdings, Inc. | $ (10,454) | $ 20,134 |
Consolidating Financial State56
Consolidating Financial Statements of Subsidiary Guarantors (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 25, 2016 | |
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | $ (212) | $ (14,572) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 12 | 3 |
Other comprehensive loss, before tax | 12 | 3 |
Income tax expense related to items of other comprehensive loss | (4) | (1) |
Other comprehensive loss | 8 | 2 |
Comprehensive loss | (204) | (14,570) |
Noncontrolling interests | (275) | (187) |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (479) | (14,757) |
Eliminations | ||
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | (10,454) | 20,134 |
Other comprehensive income: | ||
Foreign currency translation adjustment | (24) | (6) |
Other comprehensive loss, before tax | (24) | (6) |
Income tax expense related to items of other comprehensive loss | 8 | 2 |
Other comprehensive loss | (16) | (4) |
Comprehensive loss | (10,470) | 20,130 |
Noncontrolling interests | 0 | 0 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (10,470) | 20,130 |
Parent | ||
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | (487) | (14,759) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 12 | 3 |
Other comprehensive loss, before tax | 12 | 3 |
Income tax expense related to items of other comprehensive loss | (4) | (1) |
Other comprehensive loss | 8 | 2 |
Comprehensive loss | (479) | (14,757) |
Noncontrolling interests | 0 | 0 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (479) | (14,757) |
Subsidiary Issuer | ||
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | (487) | (14,759) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 12 | 3 |
Other comprehensive loss, before tax | 12 | 3 |
Income tax expense related to items of other comprehensive loss | (4) | (1) |
Other comprehensive loss | 8 | 2 |
Comprehensive loss | (479) | (14,757) |
Noncontrolling interests | 0 | 0 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | (479) | (14,757) |
Subsidiary Guarantors | ||
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | 11,054 | (4,828) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 0 | 0 |
Other comprehensive loss, before tax | 0 | 0 |
Income tax expense related to items of other comprehensive loss | 0 | 0 |
Other comprehensive loss | 0 | 0 |
Comprehensive loss | 11,054 | (4,828) |
Noncontrolling interests | 0 | 0 |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | 11,054 | (4,828) |
Subsidiary Non- Guarantors | ||
Condensed Consolidating Statement of Comprehensive Income Information | ||
Net loss | 162 | (360) |
Other comprehensive income: | ||
Foreign currency translation adjustment | 12 | 3 |
Other comprehensive loss, before tax | 12 | 3 |
Income tax expense related to items of other comprehensive loss | (4) | (1) |
Other comprehensive loss | 8 | 2 |
Comprehensive loss | 170 | (358) |
Noncontrolling interests | (275) | (187) |
Comprehensive loss attributable to Delta Tucker Holdings, Inc. | $ (105) | $ (545) |
Consolidating Financial State57
Consolidating Financial Statements of Subsidiary Guarantors (Details 2) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 25, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 107,207 | $ 118,218 | $ 74,787 | $ 108,782 |
Restricted cash | 2,504 | 7,664 | ||
Accounts receivable, net | 306,030 | 300,255 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses and other current assets | 67,319 | 65,694 | ||
Total current assets | 483,060 | 491,831 | ||
Property and equipment, net | 17,020 | 16,636 | ||
Goodwill | 42,093 | 42,093 | ||
Tradenames, net | 28,536 | 28,536 | ||
Other intangibles, net | 75,956 | 84,069 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 12,880 | 13,372 | ||
Total assets | 659,545 | 676,537 | ||
Current liabilities: | ||||
Current portion of long-term debt | 62,955 | 62,843 | ||
Accounts payable | 81,751 | 69,742 | ||
Accrued payroll and employee costs | 87,180 | 95,580 | ||
Intercompany payables | 0 | |||
Deferred income taxes | 0 | |||
Accrued liabilities | 78,117 | 104,078 | ||
Income taxes payable | 11,188 | 9,303 | ||
Total current liabilities | 321,191 | 341,546 | ||
Long-term debt | 574,032 | 569,613 | ||
Long-term deferred taxes | 15,286 | 14,825 | ||
Other long-term liabilities | 11,408 | 12,490 | ||
Noncontrolling interests | 5,460 | 5,455 | ||
(Deficit) Equity | (267,832) | (267,392) | ||
Total liabilities and deficit | 659,545 | 676,537 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | (18,800) | (6,999) | ||
Intercompany receivables | (167,816) | (193,414) | ||
Prepaid expenses and other current assets | (614) | (598) | ||
Total current assets | (187,230) | (201,011) | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Investment in subsidiaries | (621,630) | (626,714) | ||
Other assets, net | 0 | 0 | ||
Total assets | (808,860) | (827,725) | ||
Current liabilities: | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | (1,507) | (1,404) | ||
Accrued payroll and employee costs | 0 | 0 | ||
Intercompany payables | (167,816) | (193,414) | ||
Deferred income taxes | (28) | (26) | ||
Accrued liabilities | (240,468) | (228,370) | ||
Income taxes payable | (157) | (103) | ||
Total current liabilities | (409,976) | (423,317) | ||
Long-term debt | 0 | 0 | ||
Long-term deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Noncontrolling interests | 0 | 0 | ||
(Deficit) Equity | (398,884) | (404,408) | ||
Total liabilities and deficit | (808,860) | (827,725) | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 0 | 0 | ||
Total assets | 0 | 0 | ||
Current liabilities: | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll and employee costs | 0 | 0 | ||
Intercompany payables | 45,086 | 45,086 | ||
Deferred income taxes | 0 | |||
Accrued liabilities | 222,746 | 222,306 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | 267,832 | 267,392 | ||
Long-term debt | 0 | 0 | ||
Long-term deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Noncontrolling interests | 0 | 0 | ||
(Deficit) Equity | (267,832) | (267,392) | ||
Total liabilities and deficit | 0 | 0 | ||
Subsidiary Issuer | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 1,784 | 6,944 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 1,784 | 6,944 | ||
Property and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Tradenames, net | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Investment in subsidiaries | 565,410 | 572,176 | ||
Other assets, net | 0 | 0 | ||
Total assets | 567,194 | 579,120 | ||
Current liabilities: | ||||
Current portion of long-term debt | 62,955 | 62,843 | ||
Accounts payable | 0 | 0 | ||
Accrued payroll and employee costs | 0 | 0 | ||
Intercompany payables | 121,615 | 138,501 | ||
Deferred income taxes | 0 | |||
Accrued liabilities | 31,338 | 30,469 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | 215,908 | 231,813 | ||
Long-term debt | 574,032 | 569,613 | ||
Long-term deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Noncontrolling interests | 0 | 0 | ||
(Deficit) Equity | (222,746) | (222,306) | ||
Total liabilities and deficit | 567,194 | 579,120 | ||
Subsidiary Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 84,200 | 106,416 | 57,491 | 95,365 |
Restricted cash | 720 | 720 | ||
Accounts receivable, net | 324,681 | 304,729 | ||
Intercompany receivables | 166,701 | 183,587 | ||
Prepaid expenses and other current assets | 62,501 | 63,776 | ||
Total current assets | 638,803 | 659,228 | ||
Property and equipment, net | 16,238 | 15,788 | ||
Goodwill | 9,694 | 9,694 | ||
Tradenames, net | 28,536 | 28,536 | ||
Other intangibles, net | 75,956 | 84,069 | ||
Investment in subsidiaries | 56,220 | 54,538 | ||
Other assets, net | 10,253 | 10,575 | ||
Total assets | 835,700 | 862,428 | ||
Current liabilities: | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 78,045 | 67,287 | ||
Accrued payroll and employee costs | 83,974 | 92,036 | ||
Intercompany payables | 1,115 | 9,827 | ||
Deferred income taxes | 0 | |||
Accrued liabilities | 63,657 | 78,926 | ||
Income taxes payable | 11,345 | 9,406 | ||
Total current liabilities | 238,136 | 257,482 | ||
Long-term debt | 0 | 0 | ||
Long-term deferred taxes | 15,286 | 14,825 | ||
Other long-term liabilities | 11,408 | 12,490 | ||
Noncontrolling interests | 5,460 | 5,455 | ||
(Deficit) Equity | 565,410 | 572,176 | ||
Total liabilities and deficit | 835,700 | 862,428 | ||
Subsidiary Non- Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 23,007 | 11,802 | $ 17,296 | $ 13,417 |
Restricted cash | 0 | 0 | ||
Accounts receivable, net | 149 | 2,525 | ||
Intercompany receivables | 1,115 | 9,827 | ||
Prepaid expenses and other current assets | 5,432 | 2,516 | ||
Total current assets | 29,703 | 26,670 | ||
Property and equipment, net | 782 | 848 | ||
Goodwill | 32,399 | 32,399 | ||
Tradenames, net | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 2,627 | 2,797 | ||
Total assets | 65,511 | 62,714 | ||
Current liabilities: | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable | 5,213 | 3,859 | ||
Accrued payroll and employee costs | 3,206 | 3,544 | ||
Intercompany payables | 0 | |||
Deferred income taxes | 28 | 26 | ||
Accrued liabilities | 844 | 747 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | 9,291 | 8,176 | ||
Long-term debt | 0 | 0 | ||
Long-term deferred taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Noncontrolling interests | 0 | 0 | ||
(Deficit) Equity | 56,220 | 54,538 | ||
Total liabilities and deficit | $ 65,511 | $ 62,714 |
Consolidating Financial State58
Consolidating Financial Statements of Subsidiary Guarantors (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 25, 2016 | Mar. 31, 2017 | Mar. 25, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ (15,048) | $ (30,543) | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | (1,757) | (812) | ||
Proceeds from sale of property and equipment | 370 | 0 | ||
Purchase of software | (26) | (1,261) | ||
Cash restricted from Cerberus 3L Notes | 5,160 | 0 | ||
Return of capital from equity method investees | 1,269 | 0 | ||
Contributions to equity method investees | (900) | (1,225) | ||
Transfers from affiliates | 0 | 0 | ||
Net cash provided by (used in) investing activities | 4,116 | (3,298) | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 100 | 250 | ||
Payment of deferred financing costs | (179) | (404) | ||
Net transfers to affiliates | 0 | 0 | ||
Net cash used in financing activities | (79) | (154) | ||
Net decrease in cash and cash equivalents | (11,011) | (33,995) | ||
Cash and cash equivalents, beginning of period | 118,218 | 108,782 | ||
Cash and cash equivalents, end of period | 118,218 | 108,782 | $ 107,207 | $ 74,787 |
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 1,759 | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | 0 | 0 | ||
Proceeds from sale of property and equipment | 0 | |||
Purchase of software | 0 | 0 | ||
Cash restricted from Cerberus 3L Notes | 0 | |||
Return of capital from equity method investees | 0 | |||
Contributions to equity method investees | 0 | 0 | ||
Transfers from affiliates | 0 | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 0 | 0 | ||
Payment of deferred financing costs | 0 | 0 | ||
Net transfers to affiliates | 0 | (1,759) | ||
Net cash used in financing activities | 0 | (1,759) | ||
Net decrease in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Subsidiary Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 11,627 | 35,267 | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | 0 | 0 | ||
Proceeds from sale of property and equipment | 0 | |||
Purchase of software | 0 | 0 | ||
Cash restricted from Cerberus 3L Notes | 5,160 | |||
Return of capital from equity method investees | 0 | |||
Contributions to equity method investees | 0 | 0 | ||
Transfers from affiliates | 0 | 0 | ||
Net cash provided by (used in) investing activities | 5,160 | 0 | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 100 | 250 | ||
Payment of deferred financing costs | 0 | 0 | ||
Net transfers to affiliates | (16,887) | (35,517) | ||
Net cash used in financing activities | (16,787) | (35,267) | ||
Net decrease in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | 0 | 0 | 0 | 0 |
Subsidiary Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (29,347) | (48,110) | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | (1,757) | (788) | ||
Proceeds from sale of property and equipment | 370 | |||
Purchase of software | (26) | (1,261) | ||
Cash restricted from Cerberus 3L Notes | 0 | |||
Return of capital from equity method investees | 1,269 | |||
Contributions to equity method investees | (900) | (1,225) | ||
Transfers from affiliates | 16,887 | 37,277 | ||
Net cash provided by (used in) investing activities | 15,843 | 34,003 | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 0 | 0 | ||
Payment of deferred financing costs | 0 | 0 | ||
Net transfers to affiliates | (8,712) | (23,767) | ||
Net cash used in financing activities | (8,712) | (23,767) | ||
Net decrease in cash and cash equivalents | (22,216) | (37,874) | ||
Cash and cash equivalents, beginning of period | 106,416 | 95,365 | ||
Cash and cash equivalents, end of period | 106,416 | 95,365 | 84,200 | 57,491 |
Subsidiary Non- Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 2,851 | (19,056) | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | 0 | (24) | ||
Proceeds from sale of property and equipment | 0 | |||
Purchase of software | 0 | 0 | ||
Cash restricted from Cerberus 3L Notes | 0 | |||
Return of capital from equity method investees | 0 | |||
Contributions to equity method investees | 0 | 0 | ||
Transfers from affiliates | 8,712 | 23,767 | ||
Net cash provided by (used in) investing activities | 8,712 | 23,743 | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 0 | 0 | ||
Payment of deferred financing costs | (358) | (808) | ||
Net transfers to affiliates | 0 | 0 | ||
Net cash used in financing activities | (358) | (808) | ||
Net decrease in cash and cash equivalents | 11,205 | 3,879 | ||
Cash and cash equivalents, beginning of period | 11,802 | 13,417 | ||
Cash and cash equivalents, end of period | 11,802 | 13,417 | 23,007 | 17,296 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (179) | (403) | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | 0 | 0 | ||
Proceeds from sale of property and equipment | 0 | |||
Purchase of software | 0 | 0 | ||
Cash restricted from Cerberus 3L Notes | 0 | |||
Return of capital from equity method investees | 0 | |||
Contributions to equity method investees | 0 | 0 | ||
Transfers from affiliates | (25,599) | (61,044) | ||
Net cash provided by (used in) investing activities | (25,599) | (61,044) | ||
Cash flows from financing activities: | ||||
Equity contribution from affiliates of Cerberus | 0 | 0 | ||
Payment of deferred financing costs | 179 | 404 | ||
Net transfers to affiliates | 25,599 | 61,043 | ||
Net cash used in financing activities | 25,778 | 61,447 | ||
Net decrease in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents, beginning of period | 0 | 0 | ||
Cash and cash equivalents, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidating Financial State59
Consolidating Financial Statements of Subsidiary Guarantors (Details Textual) | Mar. 31, 2017 |
Subsidiary Guarantors | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Percentage of ownership (as a percent) | 100.00% |