Engility 10-Q 1 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2016	Jul. 28, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Engility Holdings, Inc.
Entity Central Index Key	1,544,229
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		36,773,254

Unaudited Consolidated Balance

Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 33,311	$ 30,022
Receivables, net	367,750	381,760
Prepaid income taxes	4,868	5,003
Other current assets	27,789	24,655
Total current assets	433,718	441,440
Property, plant and equipment, net	51,334	44,120
Goodwill	1,093,178	1,093,178
Identifiable intangible assets, net	416,820	436,627
Deferred tax assets	231,859	235,397
Other assets	3,484	3,211
Total assets	2,230,393	2,253,973
Current liabilities:
Current portion of long-term debt	8,447	8,447
Accounts payable, trade	62,251	54,345
Accrued employment costs	85,904	81,711
Accrued expenses	81,792	82,765
Advance payments and billings in excess of costs incurred	38,059	49,205
Deferred income taxes, current and income tax liabilities	486	695
Other current liabilities	36,224	36,293
Total current liabilities	313,163	313,461
Long-term debt	1,065,486	1,094,029
Income tax liabilities	66,802	68,000
Other liabilities	75,173	72,350
Total liabilities	1,520,624	1,547,840
Commitments and contingencies (see Note 11)
Equity:
Preferred stock, par value $0.01 per share, 25,000 shares authorized, none issued or outstanding as of July 1, 2016 or December 31, 2015
Common stock, par value $0.01 per share, 175,000 shares authorized, 36,773 and 36,735 shares issued and outstanding as of July 1, 2016 and December 31, 2015, respectively	368	368
Additional paid-in capital	1,234,351	1,231,584
Accumulated deficit	(531,631)	(530,895)
Accumulated other comprehensive loss	(5,421)	(7,229)
Non-controlling interest	12,102	12,305
Total equity	709,769	706,133
Total liabilities and equity	$ 2,230,393	$ 2,253,973

Unaudited Consolidated Balance3

Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 01, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (shares)	25,000,000	25,000,000
Preferred stock, shares issued (shares)	0	0
Preferred stock, shares outstanding (shares)	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (shares)	175,000,000	175,000,000
Common stock, shares issued (shares)	36,773,000	36,735,000
Common stock, shares outstanding (shares)	36,773,000	36,735,000

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenue	$ 535,432	$ 575,495	$ 1,058,211	$ 978,142
Costs and expenses
Cost of revenue	456,902	486,635	906,232	830,100
Selling, general and administrative expenses	43,467	51,036	90,443	109,915
Total costs and expenses	500,369	537,671	996,675	940,015
Operating income	35,063	37,824	61,536	38,127
Interest expense, net	29,064	30,734	58,503	49,328
Other income (expenses), net	(21)	56	(82)	29
Income (loss) before income taxes	5,978	7,146	2,951	(11,172)
Provision (benefit) for income taxes	1,924	(8,324)	1,022	(14,001)
Net income	4,054	15,470	1,929	2,829
Less: Net income attributable to non-controlling interest	1,560	2,374	2,665	3,100
Net income (loss) attributable to Engility	$ 2,494	$ 13,096	$ (736)	$ (271)
Earnings (loss) per share attributable to Engility
Basic	$ 0.07	$ 0.36	$ (0.02)	$ (0.01)
Diluted	$ 0.07	$ 0.35	$ (0.02)	$ (0.01)
Weighted average number of shares outstanding
Basic	36,727	36,577	36,721	30,478
Diluted	37,350	37,009	36,721	30,478

Unaudited Consolidated Stateme5

Unaudited Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 4,054	$ 15,470	$ 1,929	$ 2,829
Other comprehensive income (loss), net of tax:
Pension liability adjustment, net of tax expense of $253 for both the three and six months ended July 1, 2016 and net of tax benefit of $350 and $327 for the three and six months ended June 30, 2015, respectively	632	(548)	632	(511)
Unrealized gain on derivative instruments, net of tax expense of $385 and $310 for the three months ended July 1, 2016 and June 30, 2015, respectively, and $750 and $383 for the six months ended July 1, 2016 and June 30, 2015, respectively	605	484	1,176	600
Other comprehensive income (loss), net of tax	1,237	(64)	1,808	89
Comprehensive income	5,291	15,406	3,737	2,918
Less: Net income attributable to non-controlling interest	1,560	2,374	2,665	3,100
Comprehensive income (loss) attributable to Engility	$ 3,731	$ 13,032	$ 1,072	$ (182)

Unaudited Consolidated Stateme6

Unaudited Consolidated Statement of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Statement Of Income And Comprehensive Income [Abstract]
Pension liability adjustment, tax	$ (253)	$ 350	$ (253)	$ 327
Unrealized gain on derivative instruments, tax	$ 385	$ 310	$ 750	$ 383

Unaudited Consolidated Stateme7

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015
Operating activities:
Net income	$ 1,929	$ 2,829
Share-based compensation	4,828	7,679
Depreciation and amortization	24,642	25,493
Amortization of bank debt fees	4,865	8,136
Deferred income taxes	2,035	13,965
Changes in operating assets and liabilities, excluding acquired amounts:
Receivables	14,010	13,241
Other assets	(3,251)	(3,977)
Accounts payable, trade	5,597	(19,964)
Accrued employment costs	4,192	(31,373)
Accrued expenses	(903)	(12,350)
Advance payments and billings in excess of costs incurred	(11,146)	(687)
Other liabilities	5,863	(33,219)
Net cash provided by (used in) operating activities	52,661	(30,227)
Investing activities:
Acquisitions, net of cash acquired		25,478
Capital expenditures	(9,832)	(2,550)
Net cash (used in) provided by investing activities	(9,832)	22,928
Financing activities:
Gross borrowings from issuance of long-term debt		585,000
Repayment of long-term debt	(33,408)	(339,445)
Gross borrowings from revolving credit facility	53,000	138,000
Repayments of revolving credit facility	(53,000)	(96,000)
Debt issuance costs		(42,425)
Equity issuance costs		(2,430)
Proceeds from share-based payment arrangements	214	279
Payment of employee withholding taxes on share-based compensation	(1,776)	(6,861)
Excess tax deduction on share-based compensation		5,103
Dividends paid	(1,702)	(203,101)
Distributions to non-controlling interest member	(2,868)	(1,258)
Net cash (used in) provided by financing activities	(39,540)	36,862
Net change in cash and cash equivalents	3,289	29,563
Cash and cash equivalents, beginning of period	30,022	7,123
Cash and cash equivalents, end of period	$ 33,311	$ 36,686

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation Description of Business: Engility Holdings, Inc. (Engility) has provided mission critical services to the U.S. government for over five decades. Engility serves among other federal agencies, the U.S. Department of Defense (DoD), U.S. Department of Justice (DoJ), U.S. Agency for International Development (USAID), U.S. Department of State (DoS), Federal Aviation Administration (FAA) and Department of Homeland Security (DHS). With Engility's acquisition of TASC, Inc. (TASC) on February 26, 2015, Engility further diversified its portfolio to add leading positions with U.S. national security, public safety and space-related agencies. These agencies include the National Geospatial-Intelligence Agency (NGA), Defense Intelligence Agency (DIA), National Reconnaissance Office (NRO), National Aeronautical and Space Administration (NASA), and U.S. Air Force. The acquisition of TASC also enhanced Engility's market position with DHS, Defense Threat Reduction Agency (DTRA), FAA, and Missile Defense Agency (MDA). The TASC acquisition was effected through a new holding company named New East Holdings, Inc. (New Engility). As a result of the business combination, New Engility succeeded to and continues to operate, directly or indirectly, the existing business of Engility and, indirectly, acquired the existing business of TASC. As used herein, the terms “Engility,” the “Company,” “we,” “us” or “our” refers to (i) Engility and its subsidiaries, for all periods prior to the closing of the TASC acquisition, and (ii) New Engility and its subsidiaries, for all periods following the TASC acquisition. Engility has no operations other than owning 100% of the membership interest of TASC Parent LLC, a Delaware limited liability company (“Holdings”), and the consolidated financial statements of Engility and its consolidated subsidiaries are identical in all respects to the consolidated financial statements of Holdings and its consolidated subsidiaries. Principles of Consolidation and Basis of Presentation: The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and in accordance with Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC), and reflect the financial position, results of operations and cash flows of our businesses. Accordingly, they do not include all of the disclosures required by U.S. GAAP for a complete set of annual audited financial statements. All significant intercompany accounts and transactions are eliminated in consolidation. The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K filed with the SEC on March 8, 2016 for the year ended December 31, 2015 (2015 Form 10-K). In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included. Non-controlling Interest: Engility holds a 50.1% majority interest in Forfeiture Support Associates, LLC (FSA). The results of operations of FSA are included in Engility’s Unaudited Consolidated Financial Statements. The non-controlling interest reported on the Unaudited Consolidated Balance Sheets represents the portion of FSA’s equity that is attributable to the non-controlling interest. Accounting Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant of these estimates include revenue and profit recognition for contracts accounted on a percentage-of-completion basis, the recoverability, useful lives and valuation of identifiable intangible assets and goodwill, income taxes and contingencies. Actual results experienced by the Company may differ materially from management's estimates. Reporting Periods: Our fiscal year begins on January 1 and ends on December 31. Our 2016 fiscal quarters end on April 1, July 1, September 30 and December 31. Our 2015 fiscal quarters ended on March 31, June 30, September 30 and December 31. Revenue Recognition : Substantially all of the Company’s revenue is derived from services provided to the U.S. government and its agencies, primarily by the Company’s consulting staff and, to a lesser extent, subcontractors. The Company generates its revenue from the following types of contractual arrangements: cost-reimbursable-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. Revenue on cost-reimbursable-plus-fee contracts is recognized as services are performed, generally based on allowable costs plus any recognizable earned fee. The Company considers fixed fees under cost-reimbursable-plus-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. For cost-reimbursable-plus-fee contracts that include performance-based fee incentives, which are principally award fee arrangements, the Company recognizes income when such fees are probable and estimable. Estimates of the total fee to be earned are made based on contract provisions, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. Revenue for time-and-materials contracts is recognized as services are performed, generally on the basis of contract allowable labor hours worked multiplied by the contract-defined billing rates, plus allowable direct costs and indirect cost allocations associated with materials used and other direct expenses incurred in connection with the performance of the contract. Revenue on fixed-price contracts is recognized using a percentage-of-completion method based on actual costs incurred relative to total estimated costs for the contract. These estimated costs are updated during the term of the contract, and may result in revision by the Company of recognized revenue and estimated costs in the period in which they are identified. Profits on fixed-price contracts result from the difference between incurred costs and revenue earned. Percentage-of-completion contract accounting requires significant judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Due to the size and nature of many of our contracts, developing total revenue and cost at completion estimates require the use of significant judgment. Contract costs include direct labor and billable expenses, an allocation of allowable indirect costs, and warranty obligations. Billable expenses are comprised of subcontracting costs and other direct costs that often include, but are not limited to, travel-related costs and telecommunications charges. We recognize revenue and billable expenses from these transactions on a gross basis. Assumptions regarding the length of time to complete the contract also include expected increases in wages and prices for materials. Estimates of total contract revenue and costs are monitored during the term of the contract and are subject to revision as the contract progresses. Anticipated losses on contracts are recognized in the period they are deemed probable and can be reasonably estimated. Anticipated contract losses recorded for the six months ended June 30, 2015 were $2 million and were immaterial for the six months ended July 1, 2016. For the six months ended July 1, 2016, the recognized amounts related to changes in estimates at completion represented a net increase to revenue and profit of $8 million, of which $2 million was directly related to favorable performance on contracts with award fee. Amounts related to changes in estimates at completion for the six months ended June 30, 2015 represented a net increase to revenue of $6 million, of which $3 million was directly related to favorable performance on contracts with award fee. The Company’s contracts may include the delivery of a combination of one or more of the Company’s service offerings. In these situations, the Company determines whether such arrangements with multiple service offerings should be treated as separate units of accounting based on how the elements are bid or negotiated, whether the customer can accept separate elements of the arrangement, and the relationship between the pricing on the elements individually and combined. Included in unbilled receivables, a component of receivables, net, are certain restructuring costs related to the performance of our U.S. government contracts which are required to be recorded under GAAP but are not currently allocable to contracts. Such costs are expensed outside of our indirect rates and recognized as revenue for the portion we expect to be recoverable in our rates. At both July 1, 2016 and December 31, 2015, these receivables were approximately $11 million and are allocated to contracts when they are paid or otherwise agreed. We regularly assess the probability of recovery of these costs. This assessment requires us to make assumptions about the extent of cost recovery under our contracts and the amount of future contract activity. If the level of backlog in the future does not support the continued expensing of these costs, the profitability of our remaining contracts could be adversely affected. Revenue and profit in connection with contracts to provide services to the U.S. government that contain collection risk because the contracts are incrementally funded and subject to the availability of funds appropriated are deferred until a contract modification is obtained, indicating that adequate funds are available to the contract or task order. Income Taxes: As of July 1, 2016, management has determined it is more likely than not a portion of state deferred tax assets, capital loss carryforwards, charitable donations, and foreign tax credits will not be realized and has recorded a valuation allowance against them. A change in the ability of our operations to continue to generate future taxable income could affect our ability to realize the future tax deductions underlying our deferred tax assets, and require us to provide a valuation allowance against our deferred tax assets. The recognition of a valuation allowance would result in a reduction to net income and, if significant, could have a material impact on our effective tax rate, results of operations and financial position in any given period. Earnings per Share: Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the weighted average effect of all potentially dilutive securities outstanding during the periods. Diluted EPS includes the incremental effect of the employee stock purchase plan, restricted stock units (RSUs), stock options, performance shares, performance retention awards and performance units calculated using the treasury stock method. For the six months ended July 1, 2016 and June 30, 2015, 626,182 shares and 551,547 shares, respectively, were excluded from diluted EPS due to their anti-dilutive effects. No shares were excluded from diluted EPS for both the three months ended July 1, 2016 and June 30, 2015. Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Net income (loss) attributable to Engility $ 2,494 $ 13,096 $ (736 ) $ (271 ) Weighted average number of shares outstanding – Basic 36,727 36,577 36,721 30,478 Dilutive effect of share-based compensation outstanding after application of the treasury stock method 623 432 — — Weighted average number of shares – Diluted 37,350 37,009 36,721 30,478 Earnings (loss) per share attributable to Engility Basic $ 0.07 $ 0.36 $ (0.02 ) $ (0.01 ) Diluted $ 0.07 $ 0.35 $ (0.02 ) $ (0.01 )

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jul. 01, 2016
Accounting Policies [Abstract]
New Accounting Pronouncements	2. New Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation. 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) In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718) - Accounting for Share-based Payments when Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606)

Business Acquisition

Business Acquisition	6 Months Ended
	Jul. 01, 2016
Business Combinations [Abstract]
Business Acquisition	3. Business Acquisition On February 26, 2015, we completed the acquisition of TASC, a leading professional services provider to the national security and public safety markets, in an all-stock transaction. In connection with the acquisition, we issued 18,937,765 shares of Engility common stock on February 26, 2015 valued at approximately $663 million, and we assumed debt with an estimated fair value of $623 million. The following pro forma results of operations have been prepared as though the acquisition of TASC had occurred on January 1, 2014. These pro forma results include adjustments for (1) amortization expense for the estimated identifiable intangible assets in the preliminary allocation of purchase price, (2) the removal of historical TASC amortization expense, (3) adjustments to conform TASC policies to Engility's policies related to the timing and recognition of certain contract revenue and costs, (4) the alignment of TASC’s financial calendar to that of Engility and (5) the removal of acquisition-related expenses incurred and recorded in each of TASC’s and Engility’s results of operations in the six months ended June 30, 2015. This pro forma information does not purport to be indicative of the results of operations that would have been attained had the acquisition been made as of January 1, 2014 or of results of operations that may occur in the future. The pro forma information for the three and six months ended June 30, 2015 was as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Revenue $ 574,368 $ 1,136,303 Operating income $ 45,018 $ 71,819

Receivables

Receivables	6 Months Ended
	Jul. 01, 2016
Receivables [Abstract]
Receivables	4. Receivables Our receivables principally relate to contracts with the U.S. government and prime contractors or subcontractors of the U.S. government. The components of contract receivables are presented in the table below. July 1, 2016 December 31, 2015 Billed receivables $ 115,892 $ 229,358 Unbilled receivables 263,250 163,882 Allowance for doubtful accounts (11,392 ) (11,480 ) Total receivables, net $ 367,750 $ 381,760 The billed receivables at December 31, 2015 reflect a one week acceleration of our billing cycle to invoice contractually billable work in anticipation of the consolidation of our financial systems in early January 2016. This resulted in an increase in our billed receivables, with a corresponding decrease in our unbilled receivables, of approximately $110 million. The balances as of July 1, 2016 reflect a return to our normal billing cycles.

Goodwill and Identifiable Intan

Goodwill and Identifiable Intangible Assets	6 Months Ended
	Jul. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Identifiable Intangible Assets	5. Goodwill and Identifiable Intangible Assets Goodwill : In accordance with the accounting standards for business combinations, we record the assets acquired and liabilities assumed based on their estimated fair values at the date of the acquisition (commonly referred to as the purchase price allocation). The balance of goodwill was $1,093 million at July 1, 2016 and December 31, 2015. Identifiable Intangible Assets: Information on our identifiable intangible assets that are subject to amortization is presented in the table below. July 1, 2016 December 31, 2015 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in years) Customer contractual relationships 17 $ 554,330 $ 143,888 $ 410,442 $ 554,330 $ 127,264 $ 427,066 Contractual Backlog 1 21,800 21,800 $ — 21,800 18,850 2,950 Technology 15 7,000 622 $ 6,378 7,000 389 6,611 Total $ 583,130 $ 166,310 $ 416,820 $ 583,130 $ 146,503 $ 436,627 Our amortization expense recorded for our identifiable intangible assets is presented in the table below. Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Amortization expense $ 8,428 $ 12,962 $ 19,807 $ 19,508

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jul. 01, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based Compensation	6. Share-Based Compensation For the Six Months Ended July 1, 2016 Performance Units: During the six months ended July 1, 2016, we granted a total of 411,178 performance units at target level of 100% (with the potential for the delivery of up to 822,356 shares of our common stock at the maximum performance level) to certain of our employees with a grant date fair value of $19.33 per unit. Included in the total, 81,803 performance units were granted at target level of 100% (with the potential for the delivery of up to 163,606 shares of our common stock at the maximum performance level) to Lynn A. Dugle, our new Chief Executive Officer, with a grant date fair value of $17.97 per unit. Performance units cliff vest after three years based on our performance at the end of a three-year period beginning January 1, 2016. The number of shares of our common stock that are ultimately vested and delivered in respect of these performance units will range from 0% to 200% of the target grant amount. The vesting of performance units depends initially on the Company's performance, as approved by the Compensation Committee of our Board of Directors (the Compensation Committee), based on two metrics: revenue and operating cash flow. The performance units may be settled in cash or stock at the sole discretion of the Compensation Committee. Restricted Stock Units: During the six months ended July 1, 2016, we granted a total of 499,993 RSUs to certain employees with a grant date fair value of $18.55 per unit, of which 55,024 RSUs cliff vest on the second anniversary of the grant date, 170,852 RSUs cliff vest on the third anniversary of the grant date and 274,117 RSUs vest over a term of three years from the grant date, 25% on the first anniversary of the grant date, 25% on the second anniversary of the grant date and 50% on the third anniversary of the grant date. Included in the total, 104,619 RSUs were granted to Ms. Dugle with a grant date fair value of $17.97 per unit, of which 50,083 RSUs cliff vest on the second anniversary of the grant date and 54,536 RSUs vest over a term of three years from the grant date. During the six months ended July 1, 2016, we granted 25,704 RSUs to certain of the non-management members of our Board of Directors with a grant date fair value of $23.34 per unit, which vest after one year from the grant date. The employee and director RSUs may be settled in cash or stock upon vesting at the sole discretion of the Compensation Committee. For the Six Months Ended June 30, 2015 Performance Retention Awards: During the six months ended June 30, 2015, we granted 212,963 performance units at a target level of 100% (with the potential for the delivery of up to 425,926 shares at the maximum performance level) to certain of our executives with a grant date fair value of $32.82 per unit. The performance retention awards cliff vest after three years based on our performance at the end of a three-year period beginning January 1, 2015. The number of shares of our common stock that are ultimately vested and delivered in respect of these performance retention awards will range from 50% to 200% of the target grant amount depending on the Company’s performance against a metric of net debt to adjusted EBITDA, measured as of December 31, 2017. The performance retention awards may be settled in cash or stock at the sole discretion of the Compensation Committee. Performance Units: During the six months ended June 30, 2015, we granted 191,848 performance units at target level of 100% (with the potential for the delivery of up to 431,658 shares at the maximum performance level) to certain of our employees with a grant date fair value of $32.29 per unit. Performance units cliff vest after three years based on our performance at the end of a three-year period beginning January 1, 2015. The number of shares of our common stock that are ultimately vested and delivered in respect of these performance units will range from 0% to 225% of the target grant amount. The vesting of performance units depends initially on the Company’s performance, as approved by the Compensation Committee of our Board of Directors, based on two metrics: Revenue and Operating Cash Flow. At the end of the three-year period beginning on January 1, 2015, the vested performance units will be subject to further adjustment based on our total stockholder return (TSR) measured against the TSR of a peer group of companies previously approved by the Compensation Committee. If Engility is in the bottom quartile of TSR relative to its peer group, the ultimate number of shares of stock delivered with respect to the performance units will be reduced by 25% of their target number. If Engility is in the top quartile of TSR relative to its peer group, the ultimate number of shares of stock delivered with respect to the performance units will be increased by 25% of their target number. If Engility’s TSR falls within the middle two quartiles relative to its peer group, there will be no adjustment to the number of shares delivered. The performance units may be settled in cash or stock at the sole discretion of the Compensation Committee. Restricted Stock Units: During the six months ended June 30, 2015, we granted 127,899 RSUs to certain of our employees with a grant date fair value of $32.82 per unit, which vest over a term of three years from the grant date, 25% on the first anniversary of the grant date, 25% on the second anniversary of the grant date and 50% on the third anniversary of the grant date. During the six months ended June 30, 2015, we granted 24,703 RSUs to certain of the non-management members of our Board of Directors with a grant date fair value of $28.34 per unit, which vest after one year from the grant date. The employee and director RSUs may be settled in cash or stock upon vesting at the sole discretion of the Compensation Committee.

Defined Benefit Plans

Defined Benefit Plans	6 Months Ended
	Jul. 01, 2016
Postemployment Benefits [Abstract]
Defined Benefit Plans	7. Defined Benefit Plans Dynamics Research Corporation (DRC) Pension Plan DRC's defined benefit pension plan (the DRC Plan) is non-contributory covering substantially all employees of DRC who had completed a year of service prior to July 1, 2002. Membership in the DRC Plan was frozen effective July 1, 2002 and participants’ calculated pension benefit was frozen effective December 31, 2006. Our funding policy is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974. Additional amounts are contributed to assure that plan assets will be adequate to provide retirement benefits. We do not expect to make any contributions during the remainder of 2016 to fund the DRC Plan. TASC Benefit Plan Upon the closing of the TASC acquisition, we assumed TASC's defined benefit plan in which certain employees are eligible to participate based upon service with TASC's prior parent. This plan offered two retirement programs, a Retiree Health Reimbursement Account Plan and a Cash Bonus Plan, which provide a restoration of certain pension benefits that would have been forfeited as a result of years of service and final average pay being frozen by TASC's prior parent. In December 2015, the Cash Bonus Plan was terminated. Net Periodic Benefit Costs The components of net periodic benefit costs for both plans are as follows: Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Service cost $ 403 $ — $ 403 $ — Interest cost on projected benefit obligation 559 1,149 1,505 2,187 Expected return on plan assets (954 ) (1,451 ) (1,907 ) (2,917 ) Net loss amortization 64 67 146 116 Net periodic benefit expense (income) $ 72 $ (235 ) $ 147 $ (614 ) Beginning in 2016, we refined the method used to measure interest costs for pension and postretirement benefits. Previously, the cost was determined using a single weighted-average discount rate derived from the yield curve. Under the refined method, known as the spot rate approach, we will use individual spot rates along the yield curve that correspond with the timing of each benefit payment. We believe this change provides a more precise measurement of interest costs by improving the correlation between projected cash outflows and corresponding spot rates on the yield curve. Compared to the previous method, the spot rate approach will decrease the interest components of our benefit costs slightly in 2016. There is no impact on the total benefit obligation. We will account for this change prospectively as a change in accounting estimate.

Debt

Debt	6 Months Ended
	Jul. 01, 2016
Debt Disclosure [Abstract]
Debt	8. Debt As of July 1, 2016 our total outstanding principal balance under the 2015 Credit Facility (as defined in Note 11 to the Consolidated Financial Statements in our 2015 Form 10-K) was $1,126 million. Our availability under the revolving portion of the 2015 Credit Facility was $113 million as of July 1, 2016, with $2 million outstanding under letters of credit. During the first half of 2016, we repaid a total of $34 million of our term loan debt, of which $10 million of second lien term loan debt was purchased in the first quarter of 2016 and $20 million of term loan debt was prepaid during the second quarter of 2016. Our weighted average outstanding loan balance for the three months ended July 1, 2016 was $1,143 million which accrued interest at a weighted average borrowing rate of approximately 9.12%. Our weighted average outstanding loan balance for the six months ended July 1, 2016 was $1,151 million which accrued interest at a weighted average borrowing rate of approximately 9.13%. Our weighted average outstanding loan balance for the three months ended June 30, 2015 was $1,238 million which accrued interest at a weighted average borrowing rate of approximately 8.98%. Our weighted average outstanding loan balance for the six months ended June 30, 2015 was $952 million which accrued interest at a weighted average borrowing rate of approximately 7.34%. We believe our most restrictive covenant is the maximum consolidated total net leverage ratio, which as of July 1, 2016 was 4.77:1.00. The consolidated total net leverage ratio is the ratio of (a) (i) funded debt as of such date minus (ii) the unrestricted cash as of such date to (b) consolidated bank EBITDA for the period of the four fiscal quarters most recently ended. As of July 1, 2016, we were in compliance with all covenants under the 2015 Credit Facility. The carrying value of the term loan excluding original issue discount approximated fair value at July 1, 2016. The fair value of the term loan is based on quotes from a nationally recognized fixed income trading platform and is considered to be a Level 2 input, measured under U.S. GAAP hierarchy.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 01, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	9. Fair Value Measurements The Company has entered into multiple interest rate swap contracts which reduce the exposure to variability in cash flows relating to interest payments on a portion of its outstanding debt payments. These interest rate contracts are designated as cash flow hedges. The effective portion of the derivative’s gain or loss is initially reported in stockholders’ equity (as a component of accumulated other comprehensive income (loss)) and would be subsequently reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. The ineffective portion of the gain or loss of a cash flow hedge would be reported in earnings. The Company does not have any derivatives outstanding that are not designated as hedges. The Company’s interest rate swap liabilities are measured at fair value on a recurring basis and are aggregated by the level in the fair value hierarchy within which those measurements fall. All instruments are classified as Level 2 and there were no transfers of financial instruments between the three levels of fair value hierarchy during the period ended July 1, 2016 and December 31, 2015. At July 1, 2016, the balance of the interest rate swap liability consisted of $2 million included in other current liabilities in the accompanying Unaudited Consolidated Balance Sheet. The notional amounts of derivative instruments in the Unaudited Consolidated Balance Sheet as of July 1, 2016 were $200 million. The notional amount represents the gross contract notional amount of the derivatives outstanding. The derivative instruments are comprised of $200 million of contracts effective December 31, 2015 which expire December 31, 2016. The other terms of these instruments are as follows: Contract received: Floating interest rate LIBOR (subject to minimum of 1.25%) Contract pay: Fixed interest rates 3.09% - 3.18% The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. If the Company had breached any of these provisions at July 1, 2016, it could have been required to settle its obligations under the agreements at their termination value. As of July 1, 2016, the termination value related to these agreements is a net liability position of $2 million. As of July 1, 2016, the Company has not posted any collateral related to these agreements. The following table presents our liabilities that are measured at fair value on a recurring basis: Fair Value Hierarchy July 1, 2016 December 31, 2015 Interest rate swap liability Level 2 $ 1,847 $ 3,590

Restructuring and Integration C

Restructuring and Integration Costs	6 Months Ended
	Jul. 01, 2016
Restructuring And Related Activities [Abstract]
Restructuring Costs	10. Restructuring Costs 2016 Costs During the six months ended July 1, 2016 we incurred $7 million in restructuring costs related to severance which will be paid out by the end of 2016. 2015 Costs During the year ended December 31, 2015 in conjunction with the integration of TASC, we incurred $21 million in restructuring costs, including costs related to workforce reduction which will be paid out over the next 12 months, and other costs to include contract and lease termination fees which will be paid out through fiscal year 2020. The activity and balance of the restructuring liability account were as follows: Severance and Related Costs Other Restructuring Costs Total Balance as of December 31, 2014 $ 368 $ 6,036 $ 6,404 Additions 14,614 6,476 21,090 Cash payments (10,976 ) (3,041 ) (14,017 ) Balance as of December 31, 2015 $ 4,006 $ 9,471 $ 13,477 Additions 6,503 — 6,503 Cash payments (4,605 ) (3,163 ) (7,768 ) Balance as of July 1, 2016 $ 5,904 $ 6,308 $ 12,212 Amounts recognized in the consolidated balance sheets as of July 1, 2016 and December 31, 2015 consist of: Severance and Related Costs Other Restructuring Costs Total December 31, 2015 Other current liabilities $ 4,006 $ 5,392 $ 9,398 Other liabilities — 4,079 4,079 Amount recognized $ 4,006 $ 9,471 $ 13,477 July 1, 2016 Current liabilities $ 5,904 $ 2,517 $ 8,421 Other liabilities — 3,791 3,791 Amount recognized $ 5,904 $ 6,308 $ 12,212 These expenses are contained within the selling, general and administrative expenses line in the accompanying Unaudited Consolidated Statement of Operations for the appropriate period.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Procurement Regulations: Most of our revenue is generated from providing services and products under legally binding agreements or contracts with U.S. government and foreign government customers. U.S. government contracts are subject to extensive legal and regulatory requirements, and from time to time, agencies of the U.S. government investigate whether such contracts were and are being conducted in accordance with these requirements. We are currently cooperating with the U.S. government on several investigations from which civil or administrative proceedings have or could result and give rise to fines, penalties, compensatory and treble damages, restitution and/or forfeitures. We do not currently anticipate that any of these investigations will have a material adverse effect, individually or in the aggregate, on our consolidated financial position, results of operations or cash flows. However, under U.S. government regulations, our indictment by a federal grand jury, or an administrative finding against us as to our present responsibility to be a U.S. government contractor or subcontractor, could result in our suspension for a period of time from eligibility for awards of new government contracts or task orders or in a loss of export privileges. A conviction, or an administrative finding against us that satisfies the requisite level of seriousness, could result in debarment from contracting with the U.S. government for a specified term, which would have a materially adverse effect on our consolidated financial position, results of operations and cash flows. In addition, all of our U.S. government contracts: (1) are subject to audit and various pricing and cost controls, (2) include standard provisions for termination for the convenience of the U.S. government or for default, and (3) are subject to cancellation if funds for contracts become unavailable. Foreign government contracts generally include comparable provisions relating to terminations for convenience and default, as well as other procurement clauses relevant to the foreign government. Litigation and Other Matters: We are also subject to litigation, proceedings, claims or assessments and various contingent liabilities incidental to our businesses. Furthermore, in connection with certain business acquisitions, we have assumed some or all claims against, and liabilities of, such acquired businesses, including both asserted and unasserted claims and liabilities. In accordance with the accounting standard for contingencies, we record a liability when management believes that it is both probable that a liability has been incurred and we can reasonably estimate the amount of the loss. Generally, the loss is recorded for the amount we expect to resolve the liability. The estimated amounts of liabilities recorded for pending and threatened litigation are recorded in other current liabilities in our consolidated balance sheets. Amounts recoverable from insurance contracts or third parties are recorded as assets when deemed probable. At December 31, 2015 and July 1, 2016, we did not record any amounts for recoveries from insurance contracts or third parties in connection with the amount of liabilities recorded for pending and threatened litigation. Legal defense costs are expensed as incurred. We believe we have recorded adequate provisions for our litigation matters. We review these provisions quarterly and adjust these provisions to reflect the effect of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2016
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes The effective tax rate for the three months ended July 1, 2016 was 32.2% as compared to (116.5)% for the three months ended June 30, 2015. The increase in the effective tax rate, which includes the effects of discrete items, was due principally to a liability reversal for uncertain tax positions relating to a 2010 and 2011 IRS tax audit which was settled in the three months ended June 30, 2015. The effective tax rate for the six months ended July 1, 2016 was 34.6% as compared to 125.3% for the six months ended June 30, 2015. The decrease in the effective tax rate, which includes the effects of discrete items, was due principally to a liability reversal for uncertain tax positions relating to a 2010 and 2011 IRS tax audit which was settled in the six months ended June 30, 2015. The Company continues to benefit from tax attributes acquired with the acquisition of TASC, including net operating losses. These tax assets are expected to significantly reduce net cash tax payments through 2024.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business	Description of Business: Engility Holdings, Inc. (Engility) has provided mission critical services to the U.S. government for over five decades. Engility serves among other federal agencies, the U.S. Department of Defense (DoD), U.S. Department of Justice (DoJ), U.S. Agency for International Development (USAID), U.S. Department of State (DoS), Federal Aviation Administration (FAA) and Department of Homeland Security (DHS). With Engility's acquisition of TASC, Inc. (TASC) on February 26, 2015, Engility further diversified its portfolio to add leading positions with U.S. national security, public safety and space-related agencies. These agencies include the National Geospatial-Intelligence Agency (NGA), Defense Intelligence Agency (DIA), National Reconnaissance Office (NRO), National Aeronautical and Space Administration (NASA), and U.S. Air Force. The acquisition of TASC also enhanced Engility's market position with DHS, Defense Threat Reduction Agency (DTRA), FAA, and Missile Defense Agency (MDA). The TASC acquisition was effected through a new holding company named New East Holdings, Inc. (New Engility). As a result of the business combination, New Engility succeeded to and continues to operate, directly or indirectly, the existing business of Engility and, indirectly, acquired the existing business of TASC. As used herein, the terms “Engility,” the “Company,” “we,” “us” or “our” refers to (i) Engility and its subsidiaries, for all periods prior to the closing of the TASC acquisition, and (ii) New Engility and its subsidiaries, for all periods following the TASC acquisition. Engility has no operations other than owning 100% of the membership interest of TASC Parent LLC, a Delaware limited liability company (“Holdings”), and the consolidated financial statements of Engility and its consolidated subsidiaries are identical in all respects to the consolidated financial statements of Holdings and its consolidated subsidiaries.
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation: The Unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and in accordance with Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission (SEC), and reflect the financial position, results of operations and cash flows of our businesses. Accordingly, they do not include all of the disclosures required by U.S. GAAP for a complete set of annual audited financial statements. All significant intercompany accounts and transactions are eliminated in consolidation. The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K filed with the SEC on March 8, 2016 for the year ended December 31, 2015 (2015 Form 10-K). In the opinion of management, all adjustments (consisting of normal and recurring adjustments) considered necessary for a fair statement of the results for the interim periods presented have been included.
Non-controlling Interest	Non-controlling Interest: Engility holds a 50.1% majority interest in Forfeiture Support Associates, LLC (FSA). The results of operations of FSA are included in Engility’s Unaudited Consolidated Financial Statements. The non-controlling interest reported on the Unaudited Consolidated Balance Sheets represents the portion of FSA’s equity that is attributable to the non-controlling interest.
Accounting Estimates	Accounting Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The most significant of these estimates include revenue and profit recognition for contracts accounted on a percentage-of-completion basis, the recoverability, useful lives and valuation of identifiable intangible assets and goodwill, income taxes and contingencies. Actual results experienced by the Company may differ materially from management's estimates.
Reporting Periods	Reporting Periods: Our fiscal year begins on January 1 and ends on December 31. Our 2016 fiscal quarters end on April 1, July 1, September 30 and December 31. Our 2015 fiscal quarters ended on March 31, June 30, September 30 and December 31.
Revenue Recognition	Revenue Recognition : Substantially all of the Company’s revenue is derived from services provided to the U.S. government and its agencies, primarily by the Company’s consulting staff and, to a lesser extent, subcontractors. The Company generates its revenue from the following types of contractual arrangements: cost-reimbursable-plus-fee contracts, time-and-materials contracts, and fixed-price contracts. Revenue on cost-reimbursable-plus-fee contracts is recognized as services are performed, generally based on allowable costs plus any recognizable earned fee. The Company considers fixed fees under cost-reimbursable-plus-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. For cost-reimbursable-plus-fee contracts that include performance-based fee incentives, which are principally award fee arrangements, the Company recognizes income when such fees are probable and estimable. Estimates of the total fee to be earned are made based on contract provisions, prior experience with similar contracts or clients, and management’s evaluation of the performance on such contracts. Revenue for time-and-materials contracts is recognized as services are performed, generally on the basis of contract allowable labor hours worked multiplied by the contract-defined billing rates, plus allowable direct costs and indirect cost allocations associated with materials used and other direct expenses incurred in connection with the performance of the contract. Revenue on fixed-price contracts is recognized using a percentage-of-completion method based on actual costs incurred relative to total estimated costs for the contract. These estimated costs are updated during the term of the contract, and may result in revision by the Company of recognized revenue and estimated costs in the period in which they are identified. Profits on fixed-price contracts result from the difference between incurred costs and revenue earned. Percentage-of-completion contract accounting requires significant judgment relative to assessing risks, estimating contract revenue and costs, and making assumptions for schedule and technical issues. Due to the size and nature of many of our contracts, developing total revenue and cost at completion estimates require the use of significant judgment. Contract costs include direct labor and billable expenses, an allocation of allowable indirect costs, and warranty obligations. Billable expenses are comprised of subcontracting costs and other direct costs that often include, but are not limited to, travel-related costs and telecommunications charges. We recognize revenue and billable expenses from these transactions on a gross basis. Assumptions regarding the length of time to complete the contract also include expected increases in wages and prices for materials. Estimates of total contract revenue and costs are monitored during the term of the contract and are subject to revision as the contract progresses. Anticipated losses on contracts are recognized in the period they are deemed probable and can be reasonably estimated. Anticipated contract losses recorded for the six months ended June 30, 2015 were $2 million and were immaterial for the six months ended July 1, 2016. For the six months ended July 1, 2016, the recognized amounts related to changes in estimates at completion represented a net increase to revenue and profit of $8 million, of which $2 million was directly related to favorable performance on contracts with award fee. Amounts related to changes in estimates at completion for the six months ended June 30, 2015 represented a net increase to revenue of $6 million, of which $3 million was directly related to favorable performance on contracts with award fee. The Company’s contracts may include the delivery of a combination of one or more of the Company’s service offerings. In these situations, the Company determines whether such arrangements with multiple service offerings should be treated as separate units of accounting based on how the elements are bid or negotiated, whether the customer can accept separate elements of the arrangement, and the relationship between the pricing on the elements individually and combined. Included in unbilled receivables, a component of receivables, net, are certain restructuring costs related to the performance of our U.S. government contracts which are required to be recorded under GAAP but are not currently allocable to contracts. Such costs are expensed outside of our indirect rates and recognized as revenue for the portion we expect to be recoverable in our rates. At both July 1, 2016 and December 31, 2015, these receivables were approximately $11 million and are allocated to contracts when they are paid or otherwise agreed. We regularly assess the probability of recovery of these costs. This assessment requires us to make assumptions about the extent of cost recovery under our contracts and the amount of future contract activity. If the level of backlog in the future does not support the continued expensing of these costs, the profitability of our remaining contracts could be adversely affected. Revenue and profit in connection with contracts to provide services to the U.S. government that contain collection risk because the contracts are incrementally funded and subject to the availability of funds appropriated are deferred until a contract modification is obtained, indicating that adequate funds are available to the contract or task order.
Income Taxes	Income Taxes: As of July 1, 2016, management has determined it is more likely than not a portion of state deferred tax assets, capital loss carryforwards, charitable donations, and foreign tax credits will not be realized and has recorded a valuation allowance against them. A change in the ability of our operations to continue to generate future taxable income could affect our ability to realize the future tax deductions underlying our deferred tax assets, and require us to provide a valuation allowance against our deferred tax assets. The recognition of a valuation allowance would result in a reduction to net income and, if significant, could have a material impact on our effective tax rate, results of operations and financial position in any given period.
Earnings Per Share	Earnings per Share: Basic earnings per share (EPS) is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the weighted average effect of all potentially dilutive securities outstanding during the periods. Diluted EPS includes the incremental effect of the employee stock purchase plan, restricted stock units (RSUs), stock options, performance shares, performance retention awards and performance units calculated using the treasury stock method. For the six months ended July 1, 2016 and June 30, 2015, 626,182 shares and 551,547 shares, respectively, were excluded from diluted EPS due to their anti-dilutive effects. No shares were excluded from diluted EPS for both the three months ended July 1, 2016 and June 30, 2015. Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Net income (loss) attributable to Engility $ 2,494 $ 13,096 $ (736 ) $ (271 ) Weighted average number of shares outstanding – Basic 36,727 36,577 36,721 30,478 Dilutive effect of share-based compensation outstanding after application of the treasury stock method 623 432 — — Weighted average number of shares – Diluted 37,350 37,009 36,721 30,478 Earnings (loss) per share attributable to Engility Basic $ 0.07 $ 0.36 $ (0.02 ) $ (0.01 ) Diluted $ 0.07 $ 0.35 $ (0.02 ) $ (0.01 )
New Accounting Pronouncements	New Accounting Pronouncements In May 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting Compensation - Stock Compensation. 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) In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest: Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718) - Accounting for Share-based Payments when Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606)

Basis of Presentation (Tables)

Basis of Presentation (Tables)	6 Months Ended
	Jul. 01, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Earnings Per Share	Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Net income (loss) attributable to Engility $ 2,494 $ 13,096 $ (736 ) $ (271 ) Weighted average number of shares outstanding – Basic 36,727 36,577 36,721 30,478 Dilutive effect of share-based compensation outstanding after application of the treasury stock method 623 432 — — Weighted average number of shares – Diluted 37,350 37,009 36,721 30,478 Earnings (loss) per share attributable to Engility Basic $ 0.07 $ 0.36 $ (0.02 ) $ (0.01 ) Diluted $ 0.07 $ 0.35 $ (0.02 ) $ (0.01 )

Business Acquisition (Tables)

Business Acquisition (Tables)	6 Months Ended
	Jul. 01, 2016
Business Combinations [Abstract]
Business Acquisition Pro Forma Information	The pro forma information for the three and six months ended June 30, 2015 was as follows: Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Revenue $ 574,368 $ 1,136,303 Operating income $ 45,018 $ 71,819

Receivables (Tables)

Receivables (Tables)	6 Months Ended
	Jul. 01, 2016
Receivables [Abstract]
Components of Contract Receivables	Our receivables principally relate to contracts with the U.S. government and prime contractors or subcontractors of the U.S. government. The components of contract receivables are presented in the table below. July 1, 2016 December 31, 2015 Billed receivables $ 115,892 $ 229,358 Unbilled receivables 263,250 163,882 Allowance for doubtful accounts (11,392 ) (11,480 ) Total receivables, net $ 367,750 $ 381,760

Goodwill and Identifiable Int24

Goodwill and Identifiable Intangible Assets (Tables)	6 Months Ended
	Jul. 01, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Information on Identifiable Intangible Assets	Information on our identifiable intangible assets that are subject to amortization is presented in the table below. July 1, 2016 December 31, 2015 Weighted Average Amortization Period Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in years) Customer contractual relationships 17 $ 554,330 $ 143,888 $ 410,442 $ 554,330 $ 127,264 $ 427,066 Contractual Backlog 1 21,800 21,800 $ — 21,800 18,850 2,950 Technology 15 7,000 622 $ 6,378 7,000 389 6,611 Total $ 583,130 $ 166,310 $ 416,820 $ 583,130 $ 146,503 $ 436,627
Amortization Expense Recorded for Identifiable Intangible Assets	Our amortization expense recorded for our identifiable intangible assets is presented in the table below. Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Amortization expense $ 8,428 $ 12,962 $ 19,807 $ 19,508

Defined Benefit Plans (Tables)

Defined Benefit Plans (Tables)	6 Months Ended
	Jul. 01, 2016
Postemployment Benefits [Abstract]
Schedule of Defined Benefit Plans Disclosures	The components of net periodic benefit costs for both plans are as follows: Three Months Ended Six Months Ended July 1, 2016 June 30, 2015 July 1, 2016 June 30, 2015 Service cost $ 403 $ — $ 403 $ — Interest cost on projected benefit obligation 559 1,149 1,505 2,187 Expected return on plan assets (954 ) (1,451 ) (1,907 ) (2,917 ) Net loss amortization 64 67 146 116 Net periodic benefit expense (income) $ 72 $ (235 ) $ 147 $ (614 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 01, 2016
Fair Value Disclosures [Abstract]
Summary of Other Terms of Instruments	The other terms of these instruments are as follows: Contract received: Floating interest rate LIBOR (subject to minimum of 1.25%) Contract pay: Fixed interest rates 3.09% - 3.18%
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following table presents our liabilities that are measured at fair value on a recurring basis: Fair Value Hierarchy July 1, 2016 December 31, 2015 Interest rate swap liability Level 2 $ 1,847 $ 3,590

Restructuring and Integration27

Restructuring and Integration Costs (Tables)	6 Months Ended
	Jul. 01, 2016
Restructuring And Related Activities [Abstract]
Summary of Realignment Cost	The activity and balance of the restructuring liability account were as follows: Severance and Related Costs Other Restructuring Costs Total Balance as of December 31, 2014 $ 368 $ 6,036 $ 6,404 Additions 14,614 6,476 21,090 Cash payments (10,976 ) (3,041 ) (14,017 ) Balance as of December 31, 2015 $ 4,006 $ 9,471 $ 13,477 Additions 6,503 — 6,503 Cash payments (4,605 ) (3,163 ) (7,768 ) Balance as of July 1, 2016 $ 5,904 $ 6,308 $ 12,212 Amounts recognized in the consolidated balance sheets as of July 1, 2016 and December 31, 2015 consist of: Severance and Related Costs Other Restructuring Costs Total December 31, 2015 Other current liabilities $ 4,006 $ 5,392 $ 9,398 Other liabilities — 4,079 4,079 Amount recognized $ 4,006 $ 9,471 $ 13,477 July 1, 2016 Current liabilities $ 5,904 $ 2,517 $ 8,421 Other liabilities — 3,791 3,791 Amount recognized $ 5,904 $ 6,308 $ 12,212

Business Acquisition - Pro Form

Business Acquisition - Pro Forma (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Business Acquisition Pro Forma Information [Abstract]
Revenue	$ 574,368	$ 1,136,303
Operating income	$ 45,018	$ 71,819

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015	Dec. 31, 2015
Basis of Presentation [Line Items]
Non-controlling equity interest ownership percentage	50.10%		50.10%
Loss on contract services				$ 2
Unbilled receivables restructuring costs incurred	$ 11		$ 11		$ 11
Antidilutive securities	0	0	626,182	551,547
Contracts Accounted for under Percentage of Completion [Member]
Basis of Presentation [Line Items]
Financial effect of change in estimate, increase to revenue and operating income (loss)			$ 8	$ 6
Award Fee Contracts Accounted For Under Cost-Plus Type Contracts [Member] | Contracts Accounted for under Percentage of Completion [Member]
Basis of Presentation [Line Items]
Financial effect of change in estimate, increase to revenue and operating income (loss)			$ 2	$ 3
TASC Parent LLC [Member]
Basis of Presentation [Line Items]
Membership interest owning percentage by parent	100.00%		100.00%
TASC, Inc [Member]
Basis of Presentation [Line Items]
Date of acquisition			Feb. 26, 2015

Basis of Presentation - Earning

Basis of Presentation - Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Net income (loss) attributable to Engility	$ 2,494	$ 13,096	$ (736)	$ (271)
Weighted average number of shares outstanding – Basic	36,727	36,577	36,721	30,478
Dilutive effect of share-based compensation outstanding after application of the treasury stock method	623	432
Weighted average number of shares – Diluted	37,350	37,009	36,721	30,478
Earnings (loss) per share attributable to Engility
Basic	$ 0.07	$ 0.36	$ (0.02)	$ (0.01)
Diluted	$ 0.07	$ 0.35	$ (0.02)	$ (0.01)

New Accounting Pronouncements N

New Accounting Pronouncements New Accounting Pronouncements (Details) - USD ($) $ in Millions	Jul. 01, 2016	Dec. 31, 2015
Accounting Standards Update 2015-03
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 19	$ 21

Business Acquisition - TASC Acq

Business Acquisition - TASC Acquisition (Details) - TASC $ in Millions	Feb. 26, 2015USD ($)shares
Business Acquisition [Line Items]
Shares issued in acquisition (in shares) | shares	18,937,765
Value of shares issued in acquisition	$ 663
Fair value of debt assumed	$ 623

Receivables - Components of Con

Receivables - Components of Contract Receivables (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2016	Dec. 31, 2015
Receivables [Abstract]
Billed receivables	$ 115,892	$ 229,358
Unbilled receivables	263,250	163,882
Allowance for doubtful accounts	(11,392)	(11,480)
Total receivables, net	367,750	$ 381,760
Increase in billed receivables	110,000
Decrease in unbilled receivables	$ (110,000)

Goodwill and Identifiable Int34

Goodwill and Identifiable Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	Jul. 01, 2016	Dec. 31, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,093,178	$ 1,093,178

Goodwill and Identifiable Int35

Goodwill and Identifiable Intangible Assets - Information on Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 583,130	$ 583,130
Accumulated Amortization	166,310	146,503
Net Carrying Amount	$ 416,820	436,627
Customer contractual relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	17 years
Gross Carrying Amount	$ 554,330	554,330
Accumulated Amortization	143,888	127,264
Net Carrying Amount	$ 410,442	427,066
Contractual Backlog
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	1 year
Gross Carrying Amount	$ 21,800	21,800
Accumulated Amortization	$ 21,800	18,850
Net Carrying Amount		2,950
Technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	15 years
Gross Carrying Amount	$ 7,000	7,000
Accumulated Amortization	622	389
Net Carrying Amount	$ 6,378	$ 6,611

Goodwill and Identifiable Int36

Goodwill and Identifiable Intangible Assets - Amortization Expense Recorded for Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 8,428	$ 12,962	$ 19,807	$ 19,508

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - $ / shares	6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015
Performance Shares | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period	411,178	191,848
Shares granted at maximum performance level	822,356	431,658
Weighted average share price (USD per share)	$ 19.33	$ 32.29
Performance period	3 years	3 years
Percent of the target grant amount	100.00%	100.00%
Decrease in plan target if TSR threshold is not met		25.00%
Increase in plan target if TSR threshold is met		25.00%
Performance Shares | Employees | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of the target grant amount	0.00%	0.00%
Performance Shares | Employees | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of the target grant amount	200.00%	225.00%
Performance Shares | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period	81,803
Shares granted at maximum performance level	163,606
Weighted average share price (USD per share)	$ 17.97
Percent of the target grant amount	100.00%
Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period	499,993	127,899
Weighted average share price (USD per share)	$ 18.55	$ 32.82
Restricted Stock Units | Employees | Period two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested in period (in shares)	55,024
Stock vest on second anniversary	25.00%
Restricted Stock Units | Employees | Period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested in period (in shares)	170,852
Vesting period	3 years
Stock vest on third anniversary	50.00%
Restricted Stock Units | Employees | Over period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested in period (in shares)	274,117
Restricted Stock Units | Employees | Period one
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock vest on first anniversary	25.00%
Restricted Stock Units | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period	104,619
Weighted average share price (USD per share)	$ 17.97
Restricted Stock Units | Chief Executive Officer | Period two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested in period (in shares)	50,083
Restricted Stock Units | Chief Executive Officer | Period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock Units | Chief Executive Officer | Over period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares vested in period (in shares)	54,536
Restricted Stock Units | Non-management members of the Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period	25,704	24,703
Weighted average share price (USD per share)	$ 23.34	$ 28.34
Restricted Stock Units | Non-management members of the Board of Directors | Period three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	1 year
Performance Retention Award | Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in the period		212,963
Shares granted at maximum performance level		425,926
Weighted average share price (USD per share)		$ 32.82
Performance period	3 years
Percent of the target grant amount		100.00%
Performance Retention Award | Executives | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of the target grant amount	50.00%
Performance Retention Award | Executives | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of the target grant amount	200.00%

Defined Benefit Plans (Details)

Defined Benefit Plans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2016USD ($)plan	Jun. 30, 2015USD ($)	Jul. 01, 2016USD ($)plan	Jun. 30, 2015USD ($)
Postemployment Benefits [Abstract]
Number of plans offered | plan	2		2
Service cost	$ 403		$ 403
Interest cost on projected benefit obligation	559	$ 1,149	1,505	$ 2,187
Expected return on plan assets	(954)	(1,451)	(1,907)	(2,917)
Net loss amortization	64	67	146	116
Net periodic benefit expense (income)	$ 72	$ (235)	$ 147	$ (614)

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 01, 2016	Apr. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Repayment of term loan debt				$ 53,000	$ 96,000
Consolidated net leverage ratio	477.00%			477.00%
Second Lien Term Loan
Debt Instrument [Line Items]
Extinguishment of debt		$ 10,000
Credit Facility 2015
Debt Instrument [Line Items]
Line of credit, amount outstanding	$ 1,126,000			$ 1,126,000
Current borrowing capacity	113,000			113,000
Average outstanding loan amount	$ 1,143,000		$ 1,238,000	$ 1,151,000	$ 952,000
Interest rate during period	9.12%		8.98%	9.13%	7.34%
Term Loan
Debt Instrument [Line Items]
Repayment of term loan debt				$ 34,000
Prepayment of term loan debt	$ 20,000
Letter of Credit | Credit Facility 2015
Debt Instrument [Line Items]
Line of credit, amount outstanding	$ 2,000			$ 2,000

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, notional amount	$ 200,000
Derivative, expiration date	Dec. 31, 2016
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liability	$ 1,847	$ 3,590
Other Current Liabilities | Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liability	2,000
Interest Rate Swap
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liability	2,000
Interest Rate Swap Effective December 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability, notional amount	$ 200,000

Fair Value Measurements - Other

Fair Value Measurements - Other Terms of Instruments (Details) - Interest Rate Swap	Jul. 01, 2016
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate	3.09%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, fixed interest rate	3.18%
London Interbank Offered Rate (LIBOR)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative, swaption interest rate	1.25%

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jul. 01, 2016	Dec. 31, 2015
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap liability	$ 1,847	$ 3,590

Restructuring and Integration43

Restructuring and Integration Costs (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 01, 2016	Dec. 31, 2015
Restructuring Cost And Reserve [Line Items]
Restructuring costs	$ 7,000	$ 21,000
Restructuring Reserve [Roll Forward]
Beginning Balance	13,477	6,404
Additions	6,503	21,090
Cash payments	(7,768)	(14,017)
Ending Balance	12,212	13,477
Other Current Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	9,398
Ending Balance		9,398
Other Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	4,079
Ending Balance	3,791	4,079
Current Liabilities
Restructuring Reserve [Roll Forward]
Ending Balance	8,421
Severance and Related Costs
Restructuring Reserve [Roll Forward]
Beginning Balance	4,006	368
Additions	6,503	14,614
Cash payments	(4,605)	(10,976)
Ending Balance	5,904	4,006
Severance and Related Costs | Other Current Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	4,006
Ending Balance		4,006
Severance and Related Costs | Other Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	0
Ending Balance	0	0
Severance and Related Costs | Current Liabilities
Restructuring Reserve [Roll Forward]
Ending Balance	5,904
Other Restructuring Costs
Restructuring Reserve [Roll Forward]
Beginning Balance	9,471	6,036
Additions	0	6,476
Cash payments	(3,163)	(3,041)
Ending Balance	6,308	9,471
Other Restructuring Costs | Other Current Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	5,392
Ending Balance		5,392
Other Restructuring Costs | Other Liabilities
Restructuring Reserve [Roll Forward]
Beginning Balance	4,079
Ending Balance	3,791	$ 4,079
Other Restructuring Costs | Current Liabilities
Restructuring Reserve [Roll Forward]
Ending Balance	$ 2,517

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jul. 01, 2016	Jun. 30, 2015	Jul. 01, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate	32.20%	(116.50%)	34.60%	125.30%