PAE (PAE) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 29, 2020	Apr. 30, 2020
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 29, 2020
Document Transition Report	false
Entity File Number	1-38643
Entity Registrant Name	PAE INCORPORATED
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3173473
Entity Address, Address Line One	7799 Leesburg Pike
Entity Address, Address Line Two	Suite 300 North
Entity Address, City or Town	Falls Church
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22043
City Area Code	703
Local Phone Number	717-6000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		92,040,654
Entity Central Index Key	0001720821
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Class A Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Class A Common Stock
Trading Symbol	PAE
Security Exchange Name	NASDAQ
Warrants
Entity Information [Line Items]
Title of 12(b) Security	Warrants
Trading Symbol	PAEWW
Security Exchange Name	NASDAQ

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenues	$ 617,253	$ 673,484
Cost of revenues	465,208	517,159
Selling, general and administrative expenses	137,326	135,035
Amortization of intangible assets	8,047	8,657
Total operating expenses	610,581	660,851
Program profit	6,672	12,633
Other income, net	785	1,720
Operating income	7,457	14,353
Interest expense, net	(20,948)	(22,660)
Loss before income taxes	(13,491)	(8,307)
Benefit from income taxes	(8,714)	(3,147)
Net loss	(4,777)	(5,160)
Noncontrolling interest in earnings of ventures	166	559
Net income (loss)	$ (4,943)	$ (5,719)
Net loss per share attributed to PAE Incorporated - basic and diluted (in dollars per share)	$ (0.08)	$ (0.27)
Weighted average shares outstanding (in shares)	59,807,549	21,127,823

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,777)	$ (5,160)
Other comprehensive (loss) income:
Change in foreign currency translation adjustment, net of tax	(976)	290
Other, net	281	422
Other comprehensive (loss) income	(695)	712
Comprehensive loss	(5,472)	(4,448)
Comprehensive income attributed to noncontrolling interests	498	582
Comprehensive loss attributed to PAE Incorporated	$ (5,970)	$ (5,030)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 99,790	$ 68,035
Accounts receivable, net	420,765	442,180
Prepaid expenses and other current assets	46,760	43,549
Total current assets	567,315	553,764
Property and equipment, net	28,079	30,404
Deferred income taxes, net	16,597	3,212
Investments	17,747	17,925
Goodwill	409,588	409,588
Purchased intangibles, net	172,417	180,464
Operating lease right-of-use assets, net	161,731	162,184
Other noncurrent assets	9,484	13,758
Total assets	1,382,958	1,371,299
Current liabilities:
Accounts payable	122,126	124,661
Accrued expenses	100,456	102,315
Customer advances and billings in excess of costs	69,662	51,439
Salaries, benefits and payroll taxes	106,995	130,633
Accrued taxes	16,058	18,488
Current portion of long-term debt	22,894	22,007
Operating lease liabilities, current portion	35,324	36,997
Other current liabilities	32,703	30,893
Total current liabilities	506,218	517,433
Long-term debt, net	595,598	727,930
Long-term operating lease liabilities	130,426	129,244
Other long-term liabilities	7,397	8,601
Total liabilities	1,239,639	1,383,208
Stockholders' equity:
Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized; no shares issued and outstanding	0	0
Common stock, $0.0001 par value per share: 210,000,000 shares authorized; 92,040,654 and 21,127,823 shares issued and outstanding as of March 29, 2020 and December 31, 2019, respectively	9	2
Additional paid-in capital	262,284	101,743
Accumulated deficit	(150,314)	(145,371)
Accumulated other comprehensive loss	(829)	(134)
Total PAE Incorporated stockholders' equity	111,150	(43,760)
Noncontrolling interests	32,169	31,851
Total liabilities and equity	$ 1,382,958	$ 1,371,299

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands	Total	Previously Reported	Restatement Adjustment	Total PAE Incorporated Equity	Total PAE Incorporated EquityPreviously Reported	Common Stock	Common StockPreviously Reported	Common StockRestatement Adjustment	Additional Paid-in Capital	Additional Paid-in CapitalPreviously Reported	Additional Paid-in CapitalRestatement Adjustment	Accumulated Deficit	Accumulated DeficitPreviously Reported	Accumulated Other Comprehensive (Loss) / Income	Accumulated Other Comprehensive (Loss) / IncomePreviously Reported	Noncontrolling Interests	Noncontrolling InterestsPreviously Reported
Beginning balance at Dec. 31, 2018	$ 31,485	$ 31,485	$ 0	$ 4,045	$ 4,045	$ 2	$ 3	$ (1)	$ 101,743	$ 101,742	$ 1	$ (95,562)	$ (95,562)	$ (2,138)	$ (2,138)	$ 27,440	$ 27,440
Beginning balance (in shares) at Dec. 31, 2018						21,127,823	282,047	20,845,776
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(5,160)			(5,719)								(5,719)				559
Other comprehensive income (loss), net	712			712										712
Equity contributions from venture partners	1,350															1,350
Ending balance at Mar. 31, 2019	28,387			(962)		$ 2			101,743			(101,281)		(1,426)		29,349
Ending balance (in shares) at Mar. 31, 2019						21,127,823
Beginning balance at Dec. 31, 2019	$ (11,909)	$ (11,909)	$ 0	(43,760)	$ (43,760)	$ 2	$ 3	$ (1)	101,743	$ 101,742	$ 1	(145,371)	$ (145,371)	(134)	$ (134)	31,851	$ 31,851
Beginning balance (in shares) at Dec. 31, 2019	21,127,823					21,127,823	282,047	20,845,776
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	$ (4,777)			(4,943)								(4,943)				166
Other comprehensive income (loss), net	(695)			(695)										(695)
Distributions to venture partners and other	152															152
Equity contributions from venture partners	13			13					13
Equity infusion from Gores III	364,778			364,778		$ 5			364,773
Equity infusion from Gores III (in shares)						46,999,787
Private placement	220,000			220,000		$ 2			219,998
Private placement (in shares)						23,913,044
Payment to Shay stockholders	(424,243)			(424,243)					(424,243)
Ending balance at Mar. 29, 2020	$ 143,319			$ 111,150		$ 9			$ 262,284			$ (150,314)		$ (829)		$ 32,169
Ending balance (in shares) at Mar. 29, 2020	21,127,823					92,040,654

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Dec. 31, 2019
Operating activities
Net loss	$ (4,777)	$ (5,160)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation of property and equipment	2,583	3,010
Amortization of intangible assets	8,047	8,657	$ 8,700
Amortization of debt issuance cost	6,063	2,050
Net undistributed income from unconsolidated ventures	(663)	(1,300)
Deferred income taxes, net	(9,081)	440
Other non-cash activities, net	270	419
Changes in operating assets and liabilities, net:
Accounts receivable, net	20,869	(21,368)
Accounts payable	(2,417)	53,784
Accrued expenses	(3,779)	(7,412)
Customer advances and billings in excess of costs	18,223	23,390
Salaries, benefits and payroll taxes	(21,307)	(6,701)
Inventories, net	1,342	(2,001)
Prepaid expenses and other current assets	(2,921)	(5,754)
Other current and noncurrent liabilities	(4,545)	(2,307)
Investments	750	836
Other noncurrent assets	4,729	780
Accrued taxes	(2,473)	(2,000)
Net cash provided by operating activities	10,913	39,363
Investing activities
Expenditures for property and equipment	(404)	(3,614)
Net cash used in investing activities	(404)	(3,614)
Financing activities
Net contributions from noncontrolling interests	150	1,350
Borrowings on long-term debt	60,000	17,888
Repayments on long-term debt	(196,544)	(62,938)
Payments of debt issuance costs	(964)	0
Recapitalization from merger with Gores III	605,708	0
Payment of underwriting and transaction costs	(27,268)	0
Distribution to selling stockholders	(419,548)	0
Net cash provided by (used in) financing activities	21,534	(43,700)
Effect of exchange rate changes on cash and cash equivalents	(288)	(458)
Net increase (decrease) in cash and cash equivalents	31,755	(8,409)
Cash and cash equivalents at beginning of period	68,035	51,097	51,097
Cash and cash equivalents at end of period	99,790	42,688	$ 68,035
Supplemental cash flow information
Cash paid for interest	10,900	19,411
Cash paid for taxes	$ 1,523	$ 2,608

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - Paranthetical - $ / shares	Mar. 29, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock authorized (in shares)	1,000,000	1,000,000
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	210,000,000	210,000,000
Common stock issued (in shares)	92,040,654	92,040,654
Common stock outstanding (in shares)	21,127,823	21,127,823

Description of Business

Description of Business	3 Months Ended
	Mar. 29, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business PAE Incorporated, formerly known as Gores Holdings III, Inc. (“Gores III”), was originally incorporated in Delaware on October 23, 2017 as a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or other similar business combination with one or more target businesses. On September 11, 2018, Gores III consummated its initial public offering (the “IPO”), following which our shares began trading on the Nasdaq Stock Market (“Nasdaq”). Unless the context otherwise indicates, references herein to the “Company" or “PAE” refer to PAE Incorporated and its consolidated subsidiaries. On February 10, 2020 (the “Closing Date”), the Company completed the previously announced business combination (the “Business Combination”) in which Shay Holding Corporation (“Shay”) was acquired by Gores III. The transaction was completed in a multi-step process pursuant to which Shay ultimately merged with and into a wholly-owned subsidiary of Gores III, with the Gores III subsidiary continuing as the surviving company. As a result of the Business Combination, each share of common stock of Shay was cancelled and converted into the right to receive a portion of the consideration payable in connection with the transaction and Gores III acquired Shay (as it existed immediately prior to the Business Combination) and its subsidiaries. Additionally, the stockholders of Shay as of immediately prior to the transaction hold a portion of the common stock of the Company. For accounting purposes, the Business Combination is treated as a reverse acquisition and recapitalization, in which Shay is considered the accounting acquirer (and legal acquiree) and Gores III is considered the accounting acquiree (and legal acquirer). Accordingly, as of the Closing Date, Shay’s historical results of operations replaced Gores III’s historical results of operations for periods prior to the Business Combination and the results of operations of both companies are included in the accompanying condensed consolidated financial statements for periods following the Closing Date. See “Note 6 - Business Combinations and Acquisitions” for additional information. PAE provides integrated support solutions, including defense and military readiness, diplomacy, peacekeeping, development, host nation capacity building, aircraft and ground equipment maintenance and logistics, and operations and maintenance of facilities and infrastructure. Customers include agencies of the U.S. Government, such as the Department of Defense (“DoD”) and Department of State (“DoS”), allied foreign governments, and international organizations such as the United Nations. The Company’s operations are organized into the following two reportable segments: • Global Mission Services (“GMS”): GMS provides infrastructure and logistics management, international logistics and stabilization support, and aircraft and vehicle readiness and sustainment support. The segment focuses on customer relationships with DoD, DoS, National Aeronautics and Space Administration, United Nations, and other government agencies for work in the United States and outside of the United States. • National Security Solutions (“NSS”): NSS provides counter-threat solutions, business process outsourcing, adjudication support services and full life cycle support for complex legal matters. NSS focuses on customer relationships in the areas of intelligence, defense and security, and with civilian agencies. The Company separately presents the costs associated with certain corporate functions as Corporate, which primarily include costs that are not reimbursed by the Company’s U.S. Government customers.

Significant Accounting Principl

Significant Accounting Principles and Policies	3 Months Ended
	Mar. 29, 2020
Accounting Policies [Abstract]
Significant Accounting Principles and Policies	Significant Accounting Principles and Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In management’s opinion, all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2019, which are filed as Exhibit 99.3 to the Company’s Form 8-K/A filed with the SEC on March 11, 2020. The Company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on March 29, 2020 and March 31, 2019. The condensed consolidated financial statements and disclosures included herein are labeled based on that convention. This practice only affects interim periods, as the Company’s fiscal year ends on December 31. The condensed consolidated financial statements include the accounts of PAE Incorporated and subsidiaries and ventures in which the Company owns more than 50% or otherwise controls. All intercompany amounts have been eliminated in consolidation. Update to Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies in the Company’s 8-K/A filed with the SEC on March 11, 2020, other than Accounts Receivable, net and Net Loss Per Share as described below. Accounts Receivable, net Amounts billed and due from customers are recorded as billed receivables within accounts receivable, net on the condensed consolidated balance sheets. Generally, customer accounts are due within 30 to 45 days of billings. The Company recognizes an allowance for credit losses based on historical experience, current conditions and reasonable and supportable forecasts. The Company assesses its overall allowance for credit losses on an at least a quarterly basis. Prior to the implementation of the allowance for credit losses the Company recorded adjustments to an allowance for doubtful accounts when collectability was uncertain. Net Loss Per Share Basic net loss per common share is determined by dividing the net loss allocable to stockholders by the weighted average number of common shares outstanding during the periods presented. Diluted loss per share is computed by dividing the net loss allocable to common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding for the period. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants at the measurement date. The valuation techniques the Company utilized to measure the fair value of financial instruments are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The carrying value of the Company’s outstanding debt obligations approximates its fair value. The fair value of long-term debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 29, 2020
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for financial instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, replacing the existing incurred loss impairment model. The new standard is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020 under the modified retrospective method and such adoption did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which requires the tracking and recognition

Revenues

Revenues	3 Months Ended
	Mar. 29, 2020
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregated Revenues Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total DoD $ 187,605 $ 67,178 $ 254,783 Other U.S. government agencies 250,042 70,722 320,764 Commercial and non-U.S. customers 19,797 21,909 41,706 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total Cost-reimbursable $ 266,080 $ 36,903 $ 302,983 Fixed-price 162,038 68,958 230,996 Time and materials 29,326 53,948 83,274 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total United States $ 248,909 $ 158,139 $ 407,048 International 208,535 1,670 210,205 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total DoD $ 200,402 $ 58,752 $ 259,154 Other U.S. government agencies 274,112 89,209 363,321 Commercial and non-U.S. customers 29,966 21,043 51,009 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total Cost-reimbursable $ 290,691 $ 22,222 $ 312,913 Fixed-price 175,399 76,514 251,913 Time and materials 38,390 70,268 108,658 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total United States $ 260,088 $ 167,783 $ 427,871 International 244,392 1,221 245,613 Total $ 504,480 $ 169,004 $ 673,484 Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an indefinite delivery, indefinite quantity contract. The remaining performance obligations balance as of March 29, 2020 and December 31, 2019 was $1,386.0 million and $1,640.0 million, respectively. The Company expects to recognize approximately 97.9% and 2.1% of the remaining performance obligations balance as revenue over the next year and thereafter, respectively. Contract assets consist of unbilled receivables which represent rights to payment for work or services completed but not billed as of the reporting date. Contract assets are recorded as unbilled receivables within accounts receivable, net on the condensed consolidated balance sheets. Contract liabilities are advances and milestone payments from customers on certain contracts that exceed revenue earned to date. Contract liabilities are recorded as customer advances and billings in excess of costs on the condensed consolidated balance sheets. Contract assets and contract liabilities consisted of the following as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 Contract assets $ 279,459 $ 295,103 Contract liabilities $ 69,662 $ 51,439 The decrease in contract assets of $15.6 million during the three months ended March 29, 2020 was primarily due to the timing of billings, partially offset by revenue recognized related to the satisfaction of performance obligations. The increase in contract liabilities of $18.2 million during the three months ended March 29, 2020 was primarily due to the timing of advance payments from customers partially offset by revenue recognized during the period. During the three months ended March 29, 2020 and March 31, 2019, the Company recognized $38.0 million and $15.2 million, respectively, relating to amounts that were included in the beginning balance of contract liabilities for each of the periods.

Contract Assets and Contract Li

Contract Assets and Contract Liabilities	3 Months Ended
	Mar. 29, 2020
Revenue from Contract with Customer [Abstract]
Contract Assets and Contract Liabilities	Revenues Disaggregated Revenues Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total DoD $ 187,605 $ 67,178 $ 254,783 Other U.S. government agencies 250,042 70,722 320,764 Commercial and non-U.S. customers 19,797 21,909 41,706 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total Cost-reimbursable $ 266,080 $ 36,903 $ 302,983 Fixed-price 162,038 68,958 230,996 Time and materials 29,326 53,948 83,274 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total United States $ 248,909 $ 158,139 $ 407,048 International 208,535 1,670 210,205 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total DoD $ 200,402 $ 58,752 $ 259,154 Other U.S. government agencies 274,112 89,209 363,321 Commercial and non-U.S. customers 29,966 21,043 51,009 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total Cost-reimbursable $ 290,691 $ 22,222 $ 312,913 Fixed-price 175,399 76,514 251,913 Time and materials 38,390 70,268 108,658 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total United States $ 260,088 $ 167,783 $ 427,871 International 244,392 1,221 245,613 Total $ 504,480 $ 169,004 $ 673,484 Remaining Performance Obligations The Company’s remaining performance obligations balance represents the expected revenue to be recognized for the satisfaction of remaining performance obligations on existing contracts. This balance excludes unexercised contract option years and task orders that may be issued underneath an indefinite delivery, indefinite quantity contract. The remaining performance obligations balance as of March 29, 2020 and December 31, 2019 was $1,386.0 million and $1,640.0 million, respectively. The Company expects to recognize approximately 97.9% and 2.1% of the remaining performance obligations balance as revenue over the next year and thereafter, respectively. Contract assets consist of unbilled receivables which represent rights to payment for work or services completed but not billed as of the reporting date. Contract assets are recorded as unbilled receivables within accounts receivable, net on the condensed consolidated balance sheets. Contract liabilities are advances and milestone payments from customers on certain contracts that exceed revenue earned to date. Contract liabilities are recorded as customer advances and billings in excess of costs on the condensed consolidated balance sheets. Contract assets and contract liabilities consisted of the following as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 Contract assets $ 279,459 $ 295,103 Contract liabilities $ 69,662 $ 51,439 The decrease in contract assets of $15.6 million during the three months ended March 29, 2020 was primarily due to the timing of billings, partially offset by revenue recognized related to the satisfaction of performance obligations. The increase in contract liabilities of $18.2 million during the three months ended March 29, 2020 was primarily due to the timing of advance payments from customers partially offset by revenue recognized during the period. During the three months ended March 29, 2020 and March 31, 2019, the Company recognized $38.0 million and $15.2 million, respectively, relating to amounts that were included in the beginning balance of contract liabilities for each of the periods.

Business Combinations and Acqui

Business Combinations and Acquisitions	3 Months Ended
	Mar. 29, 2020
Business Combinations [Abstract]
Business Combinations and Acquisitions	Business Combinations and Acquisitions As described in Note 1, the Business Combination was consummated on February 10, 2020. For financial accounting and reporting purposes under U.S. GAAP, the Business Combination was accounted for as a reverse acquisition and recapitalization, with no goodwill or other intangible asset recorded. Under this method of accounting, Gores III is treated as the acquired entity and Shay (legal acquiree) is deemed to have issued common stock for the net assets and equity of Gores III consisting of mainly cash, accompanied by simultaneous equity recapitalization of Shay (“Recapitalization”). The net assets of Gores III are stated at historical cost, and accordingly the equity and net assets of Shay have not been adjusted to fair value. Consequently, the consolidated assets, liabilities and results of operations of Shay are the historical financial statements of PAE Incorporated and the Gores III assets, liabilities and results of operations are consolidated with the assets, liabilities and results of operations of Shay beginning on the Closing Date. Shares and earnings per share information prior to the Business Combination have been retroactively restated to reflect the exchange ratio established in the Recapitalization. Other than professional fees paid to consummate the transaction, the Business Combination primarily involved the exchange of cash and equity between Gores III, Shay and the stockholders of the respective companies. The aggregate proceeds paid to the Shay stockholders on the Closing Date was approximately $424.2 million. The remainder of the consideration paid to the Shay stockholders consisted of 21,127,823 newly issued shares of Class A Common Stock of PAE Incorporated, par value $0.00001 per share (“Class A Common Stock”). In addition to the foregoing consideration paid on the Closing Date, former stockholders of Shay are entitled to receive additional Earn-Out Shares from PAE of up to an aggregate of 4,000,000 shares of Class A Common Stock if the price of Class A Common Stock trading on the Nasdaq exceeds certain thresholds during the five The Company also has certain warrants issued by Gores III that remain outstanding after the Business Combination. “See Note 11 - Stockholders’ Equity” for further information about the warrants.

Accounts Receivable, net

Accounts Receivable, net	3 Months Ended
	Mar. 29, 2020
Receivables [Abstract]
Accounts Receivable, net	Accounts Receivable, net The components of Accounts receivable, net consisted of the following as of the dates presented (in thousands): March 29, December 31, 2020 2019 Billed receivables $ 142,976 $ 148,747 Unbilled receivables 279,459 295,103 Less allowance for credit losses (1,670) (1,670) Total accounts receivables, net $ 420,765 $ 442,180 As of March 29, 2020 approximately 93% of the Company’s accounts receivable are with the U.S. government.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, net	3 Months Ended
	Mar. 29, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, net	Goodwill and Intangible Assets, net Goodwill Based on management’s assessment of goodwill, there was no impairment or change for the three months ended March 29, 2020. The Company considered the implications of COVID-19 as it relates to the carrying value of goodwill and indefinite-lived assets. Although COVID-19 has had an adverse effect on the Company’s result of operations for the first quarter of 2020, management does not currently expect that such impact will be material to the Company’s full year results. Since the Company’s primary customers are departments and agencies within the U.S. Government, it has not historically had significant issues collecting its receivables and management does not foresee issues collecting receivables in the foreseeable future. In addition, the Company’s contract awards typically extend to at least five years, including options, and it has a strong history of being awarded a majority of these contract options. Management does not anticipate that the pandemic will have a materially adverse impact on such awards. The Company’s liquidity position has not been materially impacted, and management continues to believe that the Company has adequate liquidity to fund its operations and meet its debt service obligations for the foreseeable future. Intangible Assets, net The components of intangible assets, net consisted of the following as of the dates presented (in thousands): March 29, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 286,900 $ (124,515) $ 162,385 Technology 1,700 (1,700) — Trade name 16,900 (6,868) 10,032 Total $ 305,500 $ (133,083) $ 172,417 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 286,900 $ (116,923) $ 169,977 Technology 1,700 (1,700) — Trade name 16,900 (6,413) $ 10,487 Total $ 305,500 $ (125,036) $ 180,464 As of the three months ended March 29, 2020, customer relationships and trade name intangibles had weighted average remaining useful lives of 7.7 and 5.8 years, respectively. As of the year-ended December 31, 2019, customer relationships and trade name had weighted average remaining useful lives of 7.9 and 6.0 years, respectively. For the three months ended March 29, 2020 and March 31, 2019, amortization expense was approximately $8.0 million and $8.7 million, respectively. Estimated amortization expense in future years is expected to be: As of March 29, 2020 Remainder of 2020 $ 24,141 2021 31,824 2022 31,775 2023 24,565 2024 20,490 Thereafter 39,622 Total $ 172,417

Consolidated Variable Interest

Consolidated Variable Interest Entities	3 Months Ended
	Mar. 29, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated Variable Interest Entities	Consolidated Variable Interest Entities The Company has entered into ventures and investments that allow it to participate in projects in areas where it is advantageous or required by law to partner with a local organization. The Company is the majority shareholder and primary beneficiary of PAE (New Zealand) Limited, ATOM Training Limited, PAE-Perini LLC, Syncom Space Services LLC, PAE-SGT Partners LLC, accordingly, these entities are consolidated. As the primary beneficiary, the Company has a risk and obligation to absorb any losses significant to the VIE. The use of the assets of the VIEs to settle the Company’s obligations is subject to the approval of the managing body of each VIE. The cash flows generated by these VIEs are included within the Company’s condensed consolidated statements of cash flows. The condensed consolidated balance sheets include the following amounts from these consolidated VIEs as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 Assets Total assets $ 126,193 $ 127,742 Liabilities and equity Total liabilities $ 79,013 $ 80,151 Total equity 47,180 47,591 Total liabilities and equity $ 126,193 $ 127,742 The condensed consolidated statements of operations include the following amounts from consolidated VIEs for the periods presented ( in thousands ): Three Months Ended March 29, March 31, 2020 2019 Income statements Revenues $ 87,191 $ 63,260 Cost of revenues 68,525 50,402 Selling, general and administrative expenses 18,017 18,289 Total operating expenses 86,542 68,691 Program income (loss) 649 (5,431) Other expense, net (1,049) (354) Net loss $ (400) $ (5,785)

Debt

Debt	3 Months Ended
	Mar. 29, 2020
Debt Disclosure [Abstract]
Debt	Debt. Long-term debt consisted of the following as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 First Term Loan $ 506,772 $ 506,772 Second Term Loan 128,784 265,329 Revolving Credit Facility — — Total debt 635,556 772,101 Unamortized discount and debt issuance costs (17,064) (22,164) Total debt, net of discount and debt issuance costs 618,492 749,937 Less current maturities of long-term debt (22,894) (22,007) Total long-term debt, net of current $ 595,598 $ 727,930 Credit Agreement The Company’s borrowing arrangement provides for current borrowings up to $506.7 million under a first lien term loan credit agreement, dated October 26, 2016, as amended (the “First Term Loan”), $265.3 million under a second lien term loan credit agreement, dated October 26, 2016, as amended (the “Second Term Loan”), and $150 million under a revolving credit facility dated October 26, 2016, as amended (the “Revolving Credit Facility,” and together with the First Term Loan and the Second Term Loan, the “Credit Agreements”). Principal and interest are due quarterly on the First Term Loan and interest only is due quarterly on the Second Term Loan. The maturity date of the First Term Loan is October 20, 2022. For the Second Term Loan the maturity date is October 20, 2023. For the Company’s Revolving Credit Facility the maturity date is October 20, 2021. In connection with the Business Combination, Shay was required to amend its existing credit facilities and reduce its outstanding indebtedness under its credit facilities such that the total indebtedness under the facilities, minus cash on hand at the consummation of the transaction would not be greater than $572.1 million. Immediately after the closing of the transaction the outstanding balance on the Second Term Loan was reduced by approximately $136.5 million to a principal balance of $128.8 million. The Credit Agreements require the Company to comply with specified financial covenants under certain circumstances, including the maintenance of certain leverage ratios. The Credit Agreements also contain various non-financial covenants, including affirmative covenants with respect to reporting requirements and maintenance of business activities, and negative covenants that, among other things, may limit or impose restrictions on the Company’s ability to alter the character of the business, consolidate, merge, or sell assets, incur liens or additional indebtedness, make investments, and undertake certain additional actions. The Company was in compliance with the financial covenants under the Credit Agreements as of March 29, 2020 and December 31, 2019, respectively. Future principal maturities of the Company’s long-term debt are summarized as follows ( in thousands ): As of March 29, 2020 Remainder of 2020 $ 29,810 2021 29,810 2022 447,152 2023 128,784 2024 — Total $ 635,556 As of March 29, 2020 and December 31, 2019, the available borrowing capacity under the Revolving Credit Facility was approximately $103.9 million and $121.8 million, respectively. Interest Rates on Credit Agreements The interest rate per annum applicable to amounts borrowed under the First Term Loan is equal to either the Base Rate (as defined below) or the LIBO Rate (as defined below), in either case, plus (i) 4.5% in the case of the Base Rate loans and (ii) 5.5% in the case of LIBO Rate loans. The interest rate per annum applicable to amounts borrowed under the Second Term Loan is equal to either the Base Rate or the LIBO Rate, in either case, plus (i) 8.5% in the case of the Base Rate loans and (ii) 9.5% in the case of LIBO Rate loans The “Base Rate” is defined as a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus one half of one percent, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America (“BofA”) as its “prime rate,” and (c) the LIBO Rate for a LIBO Rate loan with a one month Interest Period commencing on such day plus 1.0%. The “prime rate” is a rate set by BofA based upon various factors including BofA’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. The LIBO Rate is defined as the rate per annum equal to the London Interbank Offered Rate or a comparable or successor rate, whichever rate is approved by the Administrative Agent (as that term is defined in the Credit Agreements). The interest rate per annum applicable to the Revolving Credit Facility is equal to either a Base Rate or a LIBO Rate plus (i) a range of 0.75% to 1.25% in the case of Base Rate loans and (ii) a range of 1.75% to 2.25% in the case of LIBO Rate loans, each based on average availability as of the first day of each quarter. As of March 29, 2020 and December 31, 2019, the applicable interest rate on the amounts borrowed under the First Term Loan was 7.1% and 7.4%, respectively. As of March 29, 2020 and December 31, 2019, the applicable interest rate on amounts borrowed under the Second Term Loan was 11.1% and 11.4%, respectively. As of both March 29, 2020 and December 31, 2019, the applicable interest rate on amounts borrowed under the Revolving Credit Facility was 5.8%. In addition, the interest rate on our term loan borrowings and revolving loan borrowings is based on the London Interbank Offered Rate (“LIBOR”). LIBOR is the subject of recent national, international, and other regulatory guidance and proposals for reform. In July 2017, the Chief Executive of the U.K. Financial Conduct Authority (the “FCA”), which regulates LIBOR, announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of the LIBOR benchmark after 2021. This announcement indicates that the continuation of LIBOR on the current basis cannot and will not be guaranteed after 2021, and it appears likely that LIBOR will be discontinued or modified by 2021. The consequences of the discontinuance of the LIBOR benchmark cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. Letters of Credit The Company had 11 outstanding letters of credit for program and insurance requirements totaling approximately $21.2 million as of both March 29, 2020 and December 31, 2019.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 29, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Authorized and Outstanding Stock In connection with the Business Combination, the Company made changes to its capital stock. The Company’s amended and restated certificate of incorporation authorizes the issuance of 211,000,000 shares of capital stock, par value of $0.0001 per share, consisting of (a) 210,000,000 shares of Class A common stock, and (b) 1,000,000 shares of preferred stock. As a result of the Business Combination, the shares issued to Shay Stockholders are reflected as if they were issued and outstanding as of the earliest reported period to reflect the new capital structure. Warrants As of March 29, 2020, there were warrants outstanding to acquire 19,999,985 shares of our Class A Common Stock including: (i) 13,333,319 warrants sold as part of the public units issued in our IPO on September 11, 2018 (the “Public Warrants”), and (ii) 6,666,666 warrants issued or transferred to our former sponsor in a private placement on the IPO closing date (the “Private Placement Warrants” and, together with the Public Warrants, the “Warrants”). The Company currently has an effective registration statement on Form S-1 relating to the issuance by the Company of up to (i) 13,333,333 shares of its Class A Common Stock issuable upon the exercise of the outstanding Public Warrants, and (ii) 6,666,666 shares of its Class A Common Stock issuable upon exercise of the Private Placement Warrants. Each whole Warrant entitles the registered holder to purchase one share of Class A Common Stock at a price of $11.50 per share. The Warrants became exercisable on March 11, 2020, thirty days following the completion of the Business Combination, and expire five The Private Placement Warrants are identical to the Public Warrants except that, so long as they are held by the former sponsor or its permitted transferees: (i) they will not be redeemable by the Company; (ii) they may be exercised by the holders on a cashless basis; and (iii) they are subject to registration rights. Any transactions related to the Warrants are recorded within the stockholder’s equity section of the Company’s condensed consolidated financial statements. However, the issuance of shares pursuant to the exercise of these warrants is contingent upon the share price reaching $11.50. Therefore, share activity related to such warrants will not be recorded until such time as the contingency has been met. Earn-Out Agreement In connection with the Business Combination, stockholders of Shay immediately prior to the transaction (which stockholders consisted of certain affiliates of Platinum Equity LLC and members of PAE management, (the “Shay Stockholders”) will be entitled to receive up to an aggregate of 4,000,000 additional shares of Class A Common Stock (the “Earn-Out Shares”) if at any time during the five The thresholds (each a “Triggering Event”) causing the Earn-Out Shares to be issued by the Company to the Shay Stockholders is any such event occurs within the Earn-Out period are: (i) a one-time issuance of 1,000,000 shares if the Common Share Price is greater than $13.00; (ii) a one-time issuance of 1,000,000 shares if the Common Share Price is greater than $15.50; (iii) a one-time issuance of 1,000,000 shares if the Common Share Price is greater than $18.00; and (iv) a one-time issuance of 1,000,000 shares if the Common Share Price is greater than $20.50. Further, if during the Earn-Out Period there is a change in control (as defined in the Merger Agreement) that results in the holders of Class A Common Stock receiving a per share price in respect of their Class A Common Stock that is equal to or greater than the applicable Common Share Price required in connection with any Triggering Event (an “Acceleration Event”), then any such Triggering Event that has not previously occurred will be deemed to have occurred, and the Company must issue Earn-Out Shares accordingly. If no Triggering Event or Acceleration Event is achieved within the Earn-Out Period, the Company will not be required to issue the Earn-out Shares. No Triggering Event or Acceleration Event was achieved during the three months ended March 29, 2020.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 29, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation 2016 Participation Plan On May 23, 2016, the Company adopted the Pacific Architects and Engineers Incorporated 2016 Participation Plan (the “2016 Participation Plan”). The purpose of the 2016 Participation Plan was to provide incentive compensation to key employees by granting performance units (“Units”). The Units were valued on the date of grant by the Compensation Committee (the “Committee”). Participants in the Plan were entitled to receive compensation for their Units in the event a qualifying event occurs. In connection with the Business Combination, which was a qualifying event, the 2016 Participation Plan was terminated effective immediately prior to the Closing Date and, in exchange for a release of claims relating to the plan, plan participants received payments totaling approximately $17.4 million. The $17.4 million was paid out during the three months ended March 29, 2020, and was recorded as compensation expense. 2020 Incentive Plan Prior to the closing of the Business Combination, the Gores III board of directors and stockholders approved the PAE Incorporated 2020 Equity Incentive Plan (the “2020 Incentive Plan”). The 2020 Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted units and other stock or cash-based awards. There were no grants issued under the 2020 Incentive Plan during the three months ended March 29, 2020. In connection with the Business Combination, the Company agreed to issue restricted stock units (RSUs) to employees representing the right to receive 1,581,960 shares of its Class A Common Stock (which was taken out of the proceeds at closing of the Business Combination of the Shay Stockholders). On April 14, 2020, subject to the effectiveness of a Form S-8 registration statement filed with the SEC on such date, the Company issued 1,581,960 RSUs to certain employees out of the shares approved for issuance under the 2020 Incentive Plan. These RSUs will cliff vest in a single installment on February 10, 2021, subject to the terms of the grant agreements and the 2020 Incentive Plan. Also, on April 14, 2020, subject to the effectiveness of a Form S-8 registration statement filed with the SEC on such date, the Company issued 35,875 RSUs to its three independent directors in connection with their annual compensation as directors. Such RSUs will cliff vest in a single installment on February 9, 2021, subject to the terms of the grant agreements and the 2020 Incentive Plan. four

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 29, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per common share is determined by dividing the net loss attributed to stockholders by the weighted average number of common shares outstanding during the periods presented. Diluted loss per share is determined by adjusting the weighted average number of shares of common stock and common stock equivalents outstanding for the dilutive effect of common stock equivalents for the periods presented. The following table sets forth the computation of basic and diluted loss per share attributable to the Company’s common stockholders for the periods presented ( in thousands, except shares and per share amounts ): Three Months Ended March 29, March 31, 2020 2019 Numerator: Net loss attributed to PAE Incorporated $ (4,943) $ (5,719) Denominator: Basic and diluted weighted average shares 59,807,549 21,127,823 Basic and diluted loss per share $ (0.08) $ (0.27) The Company has not included the effect of 19,999,985 shares of Common Stock issuable upon the exercise of Warrants in the calculation of diluted net loss per share for the three months ended March 29, 2020 and the three months ended March 31, 2019 because the inclusion of such shares would be antidilutive based on the net loss reported. Warrants are considered anti-dilutive and excluded when the exercise price exceeds the average market value of the Company’s common stock price during the applicable period. The Company has not included the effect of 4,000,000 Earn-Out Shares in the calculation of basic and diluted net loss per share for the three months ended March 29, 2020. The condition for the issuance of these shares based on the volume of weighted average closing sale price of the Company’s Class A Common Stock had not been met as of March 29, 2020.

Leases

Leases	3 Months Ended
	Mar. 29, 2020
Leases [Abstract]
Leases	Leases At March 29, 2020, the Company had ROU assets, net of $161.7 million and lease liabilities of $165.8 million recorded on the condensed consolidated balance sheet. The Company rents certain facilities and equipment under operating leases. The Company’s total lease cost is recorded primarily within SG&A on the condensed consolidated statements of operations. Rents which are directly chargeable to a project are charged to cost of revenues. During the three months ended March 29, 2020 and March 31, 2019, the Company recognized operating lease costs of approximately $14.1 million and $17.5 million, respectively. The Company’s future minimum operating lease payments for noncancelable operating leases were as follows ( in thousands ): As of March 29, 2020 Remainder of 2020 $ 29,884 2021 41,558 2022 36,223 2023 32,332 2024 27,657 Thereafter 51,613 Total future minimum lease payments 219,267 Less imputed interest 53,517 Present value of minimum lease payments 165,750 Less current maturities of lease liabilities 35,324 Long-term lease liabilities $ 130,426 The weighted-average remaining lease term and the weighted-average discount rate for the Company’s operating leases were approximately 7.63 years and 7.4%, respectively, at March 29, 2020.

Legal Proceedings, Commitments,

Legal Proceedings, Commitments, and Contingencies	3 Months Ended
	Mar. 29, 2020
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings, Commitments, and Contingencies	Legal Proceedings, Commitments, and ContingenciesThe Company is a party to, or has property subject to, litigation and other proceedings. Management believes the probability is remote that the outcome of the matters will have a material adverse effect on its operations as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on net earnings in a future period. The Company cannot predict the outcome of legal proceedings and loss or range of loss contingencies with certainty.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 29, 2020
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company's operations and reportable segments are organized around the nature of the products and services provided to customers. The Company defines its reportable segments based on the way the chief operating decision maker (“CODM”), currently its President and Chief Executive Officer, manages the operations of the Company for purposes of allocating resources and assessing performance. The GMS operating segment provides support to the U.S. Government and its partners within and outside the United States providing sustainment, training and readiness support and advancing foreign policy objectives. The NSS operating segment provides a wide-ranging portfolio of offerings that support all facets of national security, including intelligence, homeland security and civil government missions. While the CODM uses a variety of different measures to evaluate the Company’s segments, the primary measures used to evaluate segment performance are revenues and operating income. As a result, interest expense, net and provision for income taxes as recorded on the condensed consolidated statements of operations are not allocated to the Company’s operating segments. The following table shows information by reportable segment for the periods presented (in thousands): Three Months Ended March 29, March 31, 2020 2019 Revenues GMS $ 457,444 $ 504,480 NSS 159,809 169,004 Corporate — — Total revenues $ 617,253 $ 673,484 Operating income GMS $ 12,603 $ 25,792 NSS 4,367 (786) Corporate (9,513) (10,653) Total operating income $ 7,457 $ 14,353 Amortization of intangible assets GMS $ 4,115 $ 4,258 NSS 3,932 4,399 Corporate — — Total amortization of intangible assets $ 8,047 $ 8,657 Under U.S. Government cost accounting standards, indirect costs including depreciation expense are collected in numerous indirect cost pools, which are then collectively allocated to the Company’s reportable segments based on a representative causal or beneficial relationship of the costs in the pool to the costs in the base. While depreciation expense is a component of the allocated costs, the allocation process precludes depreciation expense from being specifically identified by the Company’s individual reportable segments. For this reason, depreciation expense by reportable segment is not presented separately above. Asset information by segment is not a key measure of performance used by the CODM and therefore segment assets are not presented.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 29, 2020
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Tax Overpayment/Underpayment Amount In connection with the Business Combination, the Shay Stockholders are entitled to the payment of the net cash savings, if any, in U.S. federal, state and local income tax that the post-closing company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing Date. The Company estimates the payment to the Shay Stockholders will be approximately $4.7 million. The liability for this estimated payment and the corresponding charge to equity of $4.7 million are reflected in the Company’s consolidated balance sheets as of March 29, 2020. Advisory Services During the three months ended March 29, 2020 and twelve months ended December 31, 2019, the Company recognized management fees, transaction and advisory fees, and expenses of approximately $15.0 million and $5.1 million, respectively. As a result of the Business Combination the $15.0 million was grouped with other similar transactional expenses and recorded as a reduction to the recapitalized equity. The December 31, 2019 amount of $5.1 million was recorded in selling, general and administrative expenses on the condensed consolidated balance sheets.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 29, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s provision for income tax benefit was as approximately $8.7 million, and its effective income tax rate was 64.6% for the three months ended March 29, 2020. The Company’s provision for income taxes was a benefit of approximately $3.1 million, and its effective income tax rate was 37.9% for the three months ended March 31, 2019. The provision for income taxes for the period ended March 29, 2020 differed from the U.S. federal statutory rate computed by applying the U.S. federal statutory rate to income or loss before income taxes primarily due to the benefit of Foreign Derived Intangible Income (“FDII’), increased prior year interest expense deduction under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), nontaxable income and settlement of foreign taxes. The provision for income taxes for the period ended March 31, 2019 differed from the U.S. federal statutory rate computed by applying the U.S. federal statutory rate to income or loss before income taxes primarily due to a disallowed interest deduction offset by a benefit from the foreign derived intangible income deduction and non-controlling interest deduction. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carry-back periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In particular, under the CARES Act, for taxable years beginning in 2019 and 2020, the base for interest deductibility is increased from 30% to 50% of EBITDA. As of March 29, 2020, the company estimated that the tax benefit on increased 2019 interest expense deduction related to CARES Act is approximately $3.6 million. We are in the process of analyzing the different aspects of the CARES Act to determine whether any other specific provisions may impact the Company.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 29, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn May 5, 2020, the Company entered into employment agreements with each of its named executive officers. Each of the employment agreements was approved by the Compensation Committee of the Company’s Board of Directors and has a two one

Significant Accounting Princi_2

Significant Accounting Principles and Policies (Policies)	3 Months Ended
	Mar. 29, 2020
Accounting Policies [Abstract]
Segment Reporting	The Company’s operations are organized into the following two reportable segments: • Global Mission Services (“GMS”): GMS provides infrastructure and logistics management, international logistics and stabilization support, and aircraft and vehicle readiness and sustainment support. The segment focuses on customer relationships with DoD, DoS, National Aeronautics and Space Administration, United Nations, and other government agencies for work in the United States and outside of the United States. • National Security Solutions (“NSS”): NSS provides counter-threat solutions, business process outsourcing, adjudication support services and full life cycle support for complex legal matters. NSS focuses on customer relationships in the areas of intelligence, defense and security, and with civilian agencies.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In management’s opinion, all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2019, which are filed as Exhibit 99.3 to the Company’s Form 8-K/A filed with the SEC on March 11, 2020. The Company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on March 29, 2020 and March 31, 2019. The condensed consolidated financial statements and disclosures included herein are labeled based on that convention. This practice only affects interim periods, as the Company’s fiscal year ends on December 31. The condensed consolidated financial statements include the accounts of PAE Incorporated and subsidiaries and ventures in which the Company owns more than 50% or otherwise controls. All intercompany amounts have been eliminated in consolidation.
Accounts Receivable, net	Accounts Receivable, net Amounts billed and due from customers are recorded as billed receivables within accounts receivable, net on the condensed consolidated balance sheets. Generally, customer accounts are due within 30 to 45 days of billings. The Company recognizes an allowance for credit losses based on historical experience, current conditions and reasonable and supportable forecasts. The Company assesses its overall allowance for credit losses on an at least a quarterly basis. Prior to the implementation of the allowance for credit losses the Company recorded adjustments to an allowance for doubtful accounts when collectability was uncertain.
Net Loss Per Share	Net Loss Per ShareBasic net loss per common share is determined by dividing the net loss allocable to stockholders by the weighted average number of common shares outstanding during the periods presented. Diluted loss per share is computed by dividing the net loss allocable to common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding for the period.
Accounting Pronouncements Adopted and New Accounting Standards Issued and Not Yet Adopted	Accounting Pronouncements Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for financial instruments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, replacing the existing incurred loss impairment model. The new standard is effective for reporting periods beginning after December 15, 2019, with early adoption permitted. The Company adopted this guidance effective January 1, 2020 under the modified retrospective method and such adoption did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract, which requires the tracking and recognition
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants at the measurement date. The valuation techniques the Company utilized to measure the fair value of financial instruments are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, and amounts included in other current assets and current liabilities that meet the definition of a financial instrument approximate fair value because of the short-term nature of these amounts. The carrying value of the Company’s outstanding debt obligations approximates its fair value. The fair value of long-term debt is calculated using Level 2 inputs, based on interest rates available for debt with terms and maturities similar to the Company’s existing debt arrangements.

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 29, 2020
Revenue from Contract with Customer [Abstract]
Disaggregated Revenues	Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total DoD $ 187,605 $ 67,178 $ 254,783 Other U.S. government agencies 250,042 70,722 320,764 Commercial and non-U.S. customers 19,797 21,909 41,706 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total Cost-reimbursable $ 266,080 $ 36,903 $ 302,983 Fixed-price 162,038 68,958 230,996 Time and materials 29,326 53,948 83,274 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 29, 2020 GMS NSS Total United States $ 248,909 $ 158,139 $ 407,048 International 208,535 1,670 210,205 Total $ 457,444 $ 159,809 $ 617,253 Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total DoD $ 200,402 $ 58,752 $ 259,154 Other U.S. government agencies 274,112 89,209 363,321 Commercial and non-U.S. customers 29,966 21,043 51,009 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by contract type were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total Cost-reimbursable $ 290,691 $ 22,222 $ 312,913 Fixed-price 175,399 76,514 251,913 Time and materials 38,390 70,268 108,658 Total $ 504,480 $ 169,004 $ 673,484 Disaggregated revenues by geographic location were as follows ( in thousands ): Three Months Ended March 31, 2019 GMS NSS Total United States $ 260,088 $ 167,783 $ 427,871 International 244,392 1,221 245,613 Total $ 504,480 $ 169,004 $ 673,484

Contract Assets and Contract _2

Contract Assets and Contract Liabilities (Tables)	3 Months Ended
	Mar. 29, 2020
Revenue from Contract with Customer [Abstract]
Components of Contract Assets and Contract Liabilities	Contract assets and contract liabilities consisted of the following as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 Contract assets $ 279,459 $ 295,103 Contract liabilities $ 69,662 $ 51,439

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	3 Months Ended
	Mar. 29, 2020
Receivables [Abstract]
Components of Accounts Receivable, Net	The components of Accounts receivable, net consisted of the following as of the dates presented (in thousands): March 29, December 31, 2020 2019 Billed receivables $ 142,976 $ 148,747 Unbilled receivables 279,459 295,103 Less allowance for credit losses (1,670) (1,670) Total accounts receivables, net $ 420,765 $ 442,180

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, net (Tables)	3 Months Ended
	Mar. 29, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, net	The components of intangible assets, net consisted of the following as of the dates presented (in thousands): March 29, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 286,900 $ (124,515) $ 162,385 Technology 1,700 (1,700) — Trade name 16,900 (6,868) 10,032 Total $ 305,500 $ (133,083) $ 172,417 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 286,900 $ (116,923) $ 169,977 Technology 1,700 (1,700) — Trade name 16,900 (6,413) $ 10,487 Total $ 305,500 $ (125,036) $ 180,464
Estimated Amortization Expense in Future Years	Estimated amortization expense in future years is expected to be: As of March 29, 2020 Remainder of 2020 $ 24,141 2021 31,824 2022 31,775 2023 24,565 2024 20,490 Thereafter 39,622 Total $ 172,417

Consolidated Variable Interes_2

Consolidated Variable Interest Entities (Tables)	3 Months Ended
	Mar. 29, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest Entities	The cash flows generated by these VIEs are included within the Company’s condensed consolidated statements of cash flows. The condensed consolidated balance sheets include the following amounts from these consolidated VIEs as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 Assets Total assets $ 126,193 $ 127,742 Liabilities and equity Total liabilities $ 79,013 $ 80,151 Total equity 47,180 47,591 Total liabilities and equity $ 126,193 $ 127,742 The condensed consolidated statements of operations include the following amounts from consolidated VIEs for the periods presented ( in thousands ): Three Months Ended March 29, March 31, 2020 2019 Income statements Revenues $ 87,191 $ 63,260 Cost of revenues 68,525 50,402 Selling, general and administrative expenses 18,017 18,289 Total operating expenses 86,542 68,691 Program income (loss) 649 (5,431) Other expense, net (1,049) (354) Net loss $ (400) $ (5,785)

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 29, 2020
Debt Disclosure [Abstract]
Long-term Debt	Long-term debt consisted of the following as of the dates presented ( in thousands ): March 29, December 31, 2020 2019 First Term Loan $ 506,772 $ 506,772 Second Term Loan 128,784 265,329 Revolving Credit Facility — — Total debt 635,556 772,101 Unamortized discount and debt issuance costs (17,064) (22,164) Total debt, net of discount and debt issuance costs 618,492 749,937 Less current maturities of long-term debt (22,894) (22,007) Total long-term debt, net of current $ 595,598 $ 727,930
Future Principal Maturities of Long-Term Debt	Future principal maturities of the Company’s long-term debt are summarized as follows ( in thousands ): As of March 29, 2020 Remainder of 2020 $ 29,810 2021 29,810 2022 447,152 2023 128,784 2024 — Total $ 635,556

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 29, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted Loss Per Share	he following table sets forth the computation of basic and diluted loss per share attributable to the Company’s common stockholders for the periods presented ( in thousands, except shares and per share amounts ): Three Months Ended March 29, March 31, 2020 2019 Numerator: Net loss attributed to PAE Incorporated $ (4,943) $ (5,719) Denominator: Basic and diluted weighted average shares 59,807,549 21,127,823 Basic and diluted loss per share $ (0.08) $ (0.27)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 29, 2020
Leases [Abstract]
Future Minimum Operating Lease Payments	The Company’s future minimum operating lease payments for noncancelable operating leases were as follows ( in thousands ): As of March 29, 2020 Remainder of 2020 $ 29,884 2021 41,558 2022 36,223 2023 32,332 2024 27,657 Thereafter 51,613 Total future minimum lease payments 219,267 Less imputed interest 53,517 Present value of minimum lease payments 165,750 Less current maturities of lease liabilities 35,324 Long-term lease liabilities $ 130,426

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 29, 2020
Segment Reporting [Abstract]
Information by Reportable Segment	The following table shows information by reportable segment for the periods presented (in thousands): Three Months Ended March 29, March 31, 2020 2019 Revenues GMS $ 457,444 $ 504,480 NSS 159,809 169,004 Corporate — — Total revenues $ 617,253 $ 673,484 Operating income GMS $ 12,603 $ 25,792 NSS 4,367 (786) Corporate (9,513) (10,653) Total operating income $ 7,457 $ 14,353 Amortization of intangible assets GMS $ 4,115 $ 4,258 NSS 3,932 4,399 Corporate — — Total amortization of intangible assets $ 8,047 $ 8,657

Description of Business (Detail

Description of Business (Details)	3 Months Ended
	Mar. 29, 2020segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Significant Accounting Princi_3

Significant Accounting Principles and Policies - Narrative (Details)	3 Months Ended
	Mar. 29, 2020
Minimum
Product Information [Line Items]
Customer account due period (in days)	30 days
Maximum
Product Information [Line Items]
Customer account due period (in days)	45 days

Revenues - Disaggregated Revenu

Revenues - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 617,253	$ 673,484
United States
Disaggregation of Revenue [Line Items]
Revenues	407,048	427,871
International
Disaggregation of Revenue [Line Items]
Revenues	210,205	245,613
Cost-reimbursable
Disaggregation of Revenue [Line Items]
Revenues	302,983	312,913
Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	230,996	251,913
Time and materials
Disaggregation of Revenue [Line Items]
Revenues	83,274	108,658
GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	457,444	504,480
GMS | United States | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	248,909	260,088
GMS | International | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	208,535	244,392
GMS | Cost-reimbursable | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	266,080	290,691
GMS | Fixed-price | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	162,038	175,399
GMS | Time and materials | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	29,326	38,390
NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	159,809	169,004
NSS | United States | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	158,139	167,783
NSS | International | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	1,670	1,221
NSS | Cost-reimbursable | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	36,903	22,222
NSS | Fixed-price | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	68,958	76,514
NSS | Time and materials | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	53,948	70,268
DoD
Disaggregation of Revenue [Line Items]
Revenues	254,783	259,154
DoD | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	187,605	200,402
DoD | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	67,178	58,752
Other U.S. government agencies
Disaggregation of Revenue [Line Items]
Revenues	320,764	363,321
Other U.S. government agencies | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	250,042	274,112
Other U.S. government agencies | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	70,722	89,209
Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	41,706	51,009
Commercial and non-U.S. customers | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	19,797	29,966
Commercial and non-U.S. customers | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	$ 21,909	$ 21,043

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Mar. 29, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Remaining performance obligations balance	$ 1,386	$ 1,640
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected revenue recognized (as a percent)	97.90%
Expected period of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected revenue recognized (as a percent)	2.10%
Expected period of satisfaction	1 year

Contract Assets and Contract _3

Contract Assets and Contract Liabilities - Components of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets	$ 279,459	$ 295,103
Contract liabilities	$ 69,662	$ 51,439

Contract Assets and Contract _4

Contract Assets and Contract Liabilities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Increase (decrease) in contract assets	$ (15,600)
Customer advances and billings in excess of costs	18,223	$ 23,390
Recognition of contract liabilities	$ 38,000	$ 15,200

Business Combinations and Acq_2

Business Combinations and Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 10, 2020	Mar. 29, 2020	Dec. 31, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Common stock par value (in dollars per share)		$ 0.0001	$ 0.0001
Class A Common Stock
Business Acquisition [Line Items]
Common stock par value (in dollars per share)				$ 0.00001
Shay Holding Corporation Merger
Business Acquisition [Line Items]
Aggregate cash consideration paid	$ 424.2
Shay Holding Corporation Merger | Earn-Out Shares
Business Acquisition [Line Items]
Period following completion of business combination (in years)	5 years
Shay Holding Corporation Merger | Additional Paid-in Capital
Business Acquisition [Line Items]
Acquisition fees and expenses		$ 20.9
Shay Holding Corporation Merger | Class A Common Stock
Business Acquisition [Line Items]
Consideration paid (in shares)	21,127,823
Shay Holding Corporation Merger | Class A Common Stock | Earn-Out Shares
Business Acquisition [Line Items]
Maximum additional earn-out (in shares)	4,000,000

Accounts Receivable, net - Comp

Accounts Receivable, net - Components of Accounts receivable, net (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Receivables [Abstract]
Billed receivables	$ 142,976	$ 148,747
Unbilled receivables	279,459	295,103
Less allowance for credit losses	(1,670)	(1,670)
Total accounts receivables, net	$ 420,765	$ 442,180

Accounts Receivable, net (Detai

Accounts Receivable, net (Details)	3 Months Ended
	Mar. 29, 2020
Accounts Receivable | U.S. Government Agencies | Customer Concentration Risk
Product Information [Line Items]
Concentration risk (as a percent)	93.00%

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, net - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment	$ 0
Amortization of intangible assets	$ 8,047,000	$ 8,657,000	$ 8,700,000
Customer relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets (in years)	7 years 8 months 12 days		7 years 10 months 24 days
Trade name | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets (in years)	5 years 9 months 18 days		6 years

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, net - Intangible Assets, net (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 305,500	$ 305,500
Accumulated Amortization	(133,083)	(125,036)
Total	172,417	180,464
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	286,900	286,900
Accumulated Amortization	(124,515)	(116,923)
Total	162,385	169,977
Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,700	1,700
Accumulated Amortization	(1,700)	(1,700)
Total	0	0
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,900	16,900
Accumulated Amortization	(6,868)	(6,413)
Total	$ 10,032	$ 10,487

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, net - Estimated Amortization Expense in Future Years (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 24,141
2021	31,824
2022	31,775
2023	24,565
2024	20,490
Thereafter	39,622
Total	$ 172,417	$ 180,464

Consolidated Variable Interes_3

Consolidated Variable Interest Entities - Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Assets
Total assets	$ 1,382,958	$ 1,371,299
Liabilities and equity
Total liabilities	1,239,639	1,383,208
Total equity	111,150	(43,760)
Total liabilities and equity	1,382,958	1,371,299
Variable Interest Entity, Primary Beneficiary
Assets
Total assets	126,193	127,742
Liabilities and equity
Total liabilities	79,013	80,151
Total equity	47,180	47,591
Total liabilities and equity	$ 126,193	$ 127,742

Consolidated Variable Interes_4

Consolidated Variable Interest Entities - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Variable Interest Entity [Line Items]
Revenues	$ 617,253	$ 673,484
Cost of revenues	465,208	517,159
Selling, general and administrative expenses	137,326	135,035
Total operating expenses	610,581	660,851
Program profit	6,672	12,633
Other expense, net	785	1,720
Net income (loss)	(4,943)	(5,719)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Revenues	87,191	63,260
Cost of revenues	68,525	50,402
Selling, general and administrative expenses	18,017	18,289
Total operating expenses	86,542	68,691
Program profit	649	(5,431)
Other expense, net	(1,049)	(354)
Net income (loss)	$ (400)	$ (5,785)

Debt - Long-Term Debt (Details)

Debt - Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 635,556	$ 772,101
Unamortized discount and debt issuance costs	(17,064)	(22,164)
Total debt, net of discount and debt issuance costs	618,492	749,937
Less current maturities of long-term debt	(22,894)	(22,007)
Total long-term debt, net of current	595,598	727,930
Secured Debt | First Term Loan
Debt Instrument [Line Items]
Total debt	506,772	506,772
Secured Debt | Second Term Loan
Debt Instrument [Line Items]
Total debt	128,784	265,329
Line of Credit | Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt	$ 0	$ 0

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	Feb. 11, 2020	Oct. 20, 2016	Mar. 29, 2020	Dec. 31, 2019	Oct. 26, 2016
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 572,100,000
Number of letters of credit outstanding			11	11
Letters of credit outstanding, amount			$ 21,200,000	$ 21,200,000
Total debt			$ 635,556,000	$ 772,101,000
Base Rate | Addition to Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.50%
London Interbank Offered Rate (LIBOR) | Addition to LIBO Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.00%
First Term Loan | Secured Debt
Debt Instrument [Line Items]
Debt instrument, face amount	128,800,000				$ 506,700,000
Debt instrument increase (decrease)	$ 136,500,000
Debt instrument, interest rate during period (as a percent)			7.10%	7.40%
Total debt			$ 506,772,000	$ 506,772,000
First Term Loan | Base Rate | Secured Debt
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		4.50%
First Term Loan | London Interbank Offered Rate (LIBOR) | Secured Debt
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		5.50%
Second Term Loan | Secured Debt
Debt Instrument [Line Items]
Debt instrument, face amount					265,300,000
Debt instrument, interest rate during period (as a percent)			11.10%	11.40%
Total debt			$ 128,784,000	$ 265,329,000
Second Term Loan | Base Rate | Secured Debt
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		8.50%
Second Term Loan | London Interbank Offered Rate (LIBOR) | Secured Debt
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		9.50%
Revolving Credit Facility | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 150,000,000
Remaining borrowing capacity			$ 103,900,000	$ 121,800,000
Applicable interest rate (as a percent)			5.8	5.8
Total debt			$ 0	$ 0
Revolving Credit Facility | Revolving Credit Facility | Base Rate | Minimum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.75%
Revolving Credit Facility | Revolving Credit Facility | Base Rate | Maximum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.25%
Revolving Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.75%
Revolving Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		2.25%

Debt - Future Principal Maturit

Debt - Future Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Remainder of 2020	$ 29,810
2021	29,810
2022	447,152
2023	128,784
2024	0
Total	$ 635,556	$ 772,101

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Feb. 10, 2020	Mar. 29, 2020	Apr. 03, 2020	Dec. 31, 2019	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capital stock authorized (in shares)		211,000,000
Common stock par value (in dollars per share)		$ 0.0001		$ 0.0001
Preferred stock par value (in dollars per share)		$ 0.0001		$ 0.0001
Common stock authorized (in shares)		210,000,000		210,000,000
Preferred stock authorized (in shares)		1,000,000		1,000,000
Class of warrant or right, outstanding (in shares)		19,999,985
Shay Holding Corporation Merger | Earn-Out Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period following completion of business combination (in years)	5 years
Shay Holding Corporation Merger | Earn-Out Shares, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum additional earn-out (in shares)		1,000,000
Share price threshold (in dollars per share)		$ 13
Shay Holding Corporation Merger | Earn-Out Shares, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum additional earn-out (in shares)		1,000,000
Share price threshold (in dollars per share)		$ 15.50
Shay Holding Corporation Merger | Earn-Out Shares, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum additional earn-out (in shares)		1,000,000
Share price threshold (in dollars per share)		$ 18
Shay Holding Corporation Merger | Earn-Out Shares, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum additional earn-out (in shares)		1,000,000
Share price threshold (in dollars per share)		$ 20.50
Public Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Redeemable price of warrants or rights (in dollars per share)		0.01
Private Placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Redeemable price of warrants or rights (in dollars per share)		$ 0.01
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock par value (in dollars per share)					$ 0.00001
Number of securities called by each warrant or right (in shares)		1
Exercise price of warrants or rights (in dollars per shares)		$ 11.50
Expiration period of warrants (in years)		5 years
Class A Common Stock | Shay Holding Corporation Merger | Earn-Out Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum additional earn-out (in shares)	4,000,000
Minimum threshold trading days		10 days
Consecutive trading days		20 days
Class A Common Stock | Public Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of warrant or right, outstanding (in shares)		13,333,319
Class A Common Stock | Public Warrants | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of warrant or right, outstanding (in shares)			13,333,333
Class A Common Stock | Private Placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of warrant or right, outstanding (in shares)		6,666,666
Share price threshold (in dollars per share)		$ 18
Number of trading days		20 days
Trading day period		30 days
Class A Common Stock | Private Placement | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of warrant or right, outstanding (in shares)			6,666,666

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	May 01, 2020shares	Apr. 14, 2020directorshares	Feb. 10, 2020shares	Feb. 09, 2020USD ($)	Mar. 29, 2020USD ($)
2016 Participation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense | $				$ 17,400,000
2020 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period | $					$ 0
2020 Incentive Plan | Restricted Stock Units (RSUs) | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)			1,581,960
2020 Incentive Plan | Subsequent Event | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of independent directors | director		3
2020 Incentive Plan | Subsequent Event | Restricted Stock Units (RSUs) | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)		1,581,960
2020 Incentive Plan | Subsequent Event | Restricted Stock Units (RSUs) | Employees | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)	339,111
2020 Incentive Plan | Subsequent Event | Restricted Stock Units (RSUs) | Employees | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)	220,202
Award vesting period	4 years
2020 Incentive Plan | Subsequent Event | Restricted Stock Units (RSUs) | Three Independent Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)		35,875
2020 Incentive Plan | Subsequent Event | Performance Shares | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants issued during period (in shares)	330,303
Award vesting period	3 years

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Numerator:
Net loss attributed to PAE Incorporated	$ (4,943)	$ (5,719)
Denominator:
Weighted average shares outstanding (in shares)	59,807,549	21,127,823
Basic and diluted loss per share (in dollars per share)	$ (0.08)	$ (0.27)

Net Loss Per Share - Narrative

Net Loss Per Share - Narrative (Details) - shares	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted loss per share (in shares)	19,999,985	19,999,985
Earn-Out Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted loss per share (in shares)	4,000,000

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases [Abstract]
Operating lease right-of-use assets, net	$ 161,731		$ 162,184
Operating lease liabilities	165,750
Operating lease cost	$ 14,100	$ 17,500
Weighted average remaining lease term (in years)	7 years 7 months 17 days
Weighted average discount rate (as a percent)	7.40%
Cash payments for operating leases	$ 12,000

Leases - Future Minimum Operati

Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	Mar. 29, 2020	Dec. 31, 2019
Leases [Abstract]
Remainder of 2020	$ 29,884
2021	41,558
2022	36,223
2023	32,332
2024	27,657
Thereafter	51,613
Total future minimum lease payments	219,267
Less imputed interest	53,517
Present value of minimum lease payments	165,750
Less current maturities of lease liabilities	35,324	$ 36,997
Long-term lease liabilities	$ 130,426	$ 129,244

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 29, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 617,253	$ 673,484
Operating income	7,457	14,353
Amortization of intangible assets	8,047	8,657	$ 8,700
Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Operating income	(9,513)	(10,653)
Amortization of intangible assets	0	0
GMS | Operating Segments
Segment Reporting Information [Line Items]
Revenues	457,444	504,480
Operating income	12,603	25,792
Amortization of intangible assets	4,115	4,258
NSS | Operating Segments
Segment Reporting Information [Line Items]
Revenues	159,809	169,004
Operating income	4,367	(786)
Amortization of intangible assets	$ 3,932	$ 4,399

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 29, 2020	Dec. 31, 2019
Tax Overpayment/Underpayment to Platinum Stockholder
Related Party Transaction [Line Items]
Estimated payment to Platinum Stockholder	$ 4.7
PE Shay Holdings, LLC
Related Party Transaction [Line Items]
Liability for estimated payment to platinum stockholder	4.7
Affiliated Entity | Advisory Services
Related Party Transaction [Line Items]
Related party transaction expenses	$ 15	$ 5.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 29, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Benefit from income taxes	$ (8,714)	$ (3,147)
Effective income tax rate (as a percent)	64.60%	37.90%
Tax expense (benefit) on increased interest expense deduction	$ (3,600)
Estimated cash flow benefit from payroll tax deferral	33,000
Payroll tax funding deferral	$ 16,500

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event - Certain Named Executives	May 05, 2020
Subsequent Event [Line Items]
Initial term of agreement	2 years
Renewal term	1 year
Notice of non-renewal term	60 days