PAE (PAE) 10-Q 7 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 28, 2021	May 05, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 28, 2021
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	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		93,069,815
Entity Central Index Key	0001720821
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
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. 28, 2021	Mar. 29, 2020
Income Statement [Abstract]
Revenues	$ 748,567	$ 617,253
Cost of revenues	566,666	465,208
Selling, general and administrative expenses	145,291	137,326
Amortization of intangible assets	12,215	8,047
Total operating expenses	724,172	610,581
Program profit	24,395	6,672
Other operating income, net	1,801	785
Operating income	26,196	7,457
Interest expense, net	(12,514)	(20,948)
Other income, net	1,200	30,112
Income before income taxes	14,882	16,621
Expense (benefit) from income taxes	2,609	(9,529)
Net income	12,273	26,150
Noncontrolling interest in earnings of ventures	(1,111)	166
Net income (loss)	$ 13,384	$ 25,984
Net income per share attributed to PAE Incorporated:
Basic (in dollars per share)	$ 0.14	$ 0.43
Diluted (in dollars per share)	$ 0.14	$ 0.43
Weighted average shares outstanding:
Basic (in shares)	92,613,057	59,807,549
Diluted (in shares)	95,128,326	59,807,549

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 12,273	$ 26,150
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax	(994)	(976)
Other, net	(1)	281
Other comprehensive loss	(995)	(695)
Comprehensive income	11,278	25,455
Comprehensive (loss) income attributed to noncontrolling interests	(1,254)	498
Comprehensive income attributed to PAE Incorporated	$ 12,532	$ 24,957

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 118,150	$ 85,908
Accounts receivable, net	562,398	585,511
Prepaid expenses and other current assets	69,902	61,607
Total current assets	750,450	733,026
Property and equipment, net	27,652	27,615
Investments	19,400	18,272
Goodwill	591,209	590,668
Intangible assets, net	245,995	258,210
Operating lease right-of-use assets, net	183,276	191,370
Other noncurrent assets	10,283	10,209
Total assets	1,828,265	1,829,370
Current liabilities:
Accounts payable	177,911	152,962
Accrued expenses	121,274	114,222
Customer advances and billings in excess of costs	74,197	106,475
Salaries, benefits and payroll taxes	158,841	145,186
Accrued taxes	15,186	15,582
Current portion of long-term debt, net	5,920	5,961
Operating lease liabilities, current portion	47,163	46,756
Other current liabilities	42,393	45,037
Total current liabilities	642,885	632,181
Deferred income taxes, net	6,587	4,389
Long-term debt, net	861,057	860,306
Long-term operating lease liabilities	136,473	145,569
Warrant liability	49,267	50,467
Other long-term liabilities	32,441	30,273
Total liabilities	1,728,710	1,723,185
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; 93,069,815 and 92,040,654 shares issued and outstanding as of March 28, 2021 and December 31, 2020, respectively	9	9
Additional paid-in capital	167,898	188,685
Accumulated deficit	(103,237)	(116,621)
Accumulated other comprehensive income	881	1,876
Total PAE Incorporated stockholders' equity	65,551	73,949
Noncontrolling interests	34,004	32,236
Total liabilities and stockholders’ equity	$ 1,828,265	$ 1,829,370

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 28, 2021	Dec. 31, 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)	93,069,815	92,040,654	21,127,823
Common stock outstanding (in shares)	93,069,815	92,040,654	21,127,823

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders Equity (Unaudited) - USD ($) $ in Thousands	Total	As filed	Restatement adjustments	Total PAE Incorporated Stockholders’ Equity	Total PAE Incorporated Stockholders’ EquityAs filed	Common Stock	Common StockAs filed	Common StockRestatement adjustments	Additional Paid-in Capital	Additional Paid-in CapitalAs filed	Additional Paid-in CapitalRestatement adjustments	Accumulated Deficit	Accumulated DeficitAs filed	Accumulated Other Comprehensive (Loss) / Income	Accumulated Other Comprehensive (Loss) / IncomeAs filed	Noncontrolling Interests	Noncontrolling InterestsAs filed
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 income (loss)	$ 26,150	(4,777)	30,927	25,984								25,984				166
Other comprehensive income, net	(695)	$ (695)	$ 0	(695)										(695)
Equity contributions from venture partners	165			13					13							152
Equity infusion from Gores	307,941			307,941		$ 5			307,936
Equity infusion from Gores (in shares)						46,999,787
Private placement	212,910			212,910		$ 2			212,908
Private placement (in shares)						23,913,044
Payment to Shay stockholders	(424,243)			(424,243)					(424,243)
Ending balance at Mar. 29, 2020	110,319			78,150		$ 9			198,357			(119,387)		(829)		32,169
Ending balance (in shares) at Mar. 29, 2020						92,040,654
Beginning balance at Dec. 31, 2020	$ 106,185			73,949		$ 9			188,685			(116,621)		1,876		32,236
Beginning balance (in shares) at Dec. 31, 2020	92,040,654					92,040,654
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 12,273			13,384								13,384				(1,111)
Other comprehensive income, net	(995)			(995)										(995)
Equity contributions from venture partners	467															467
Deconsolidation of venture	188															188
Purchase of noncontrolling interest	(15,174)			(17,398)					(17,398)							2,224
Stock-based compensation tax withholding obligation	(5,659)			(5,659)					(5,659)
Stock-based compensation	2,270			2,270					2,270
Ending balance at Mar. 28, 2021	$ 99,555			$ 65,551		$ 9			$ 167,898			$ (103,237)		$ 881		$ 34,004
Ending balance (in shares) at Mar. 28, 2021	93,069,815					92,040,654

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Operating activities
Net income	$ 12,273	$ 26,150
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment	2,268	2,583
Amortization of intangible assets	12,215	8,047
Amortization of debt issuance cost	777	6,063
Stock-based compensation	2,270	0
Net undistributed (loss) income from unconsolidated ventures	(2,411)	(663)
Deferred income taxes, net	2,818	(9,896)
Change in fair value of warrant liability	(1,200)	(33,599)
Other non-cash activities, net	(140)	270
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	22,685	20,869
Accounts payable	25,037	(2,417)
Accrued expenses	7,335	(292)
Customer advances and billings in excess of costs	(32,276)	18,223
Salaries, benefits and payroll taxes	13,951	(21,307)
Prepaid expenses and other current assets	(8,555)	(1,579)
Other current and noncurrent liabilities	(10,632)	(4,545)
Investments	1,374	750
Other noncurrent assets	7,999	4,729
Accrued taxes	(392)	(2,473)
Net cash provided by operating activities	55,396	10,913
Investing activities
Expenditures for property and equipment	(2,434)	(404)
Proceeds from sales of property	222	0
Acquisition of noncontrolling interest	(14,300)	0
Other investing activities, net	(372)	0
Net cash used in investing activities	(16,884)	(404)
Financing activities
Net contributions from noncontrolling interests	490	150
Borrowings on long-term debt	20,000	60,000
Repayments on long-term debt	(20,000)	(196,544)
Payment of debt issuance costs	0	(964)
Recapitalization from merger with Gores III	0	605,708
Payment of underwriting and transaction costs	0	(27,268)
Distribution to selling stockholders	0	(419,548)
Stock-based compensation tax withholding obligation	(5,659)	0
Net cash (used in) provided by financing activities	(5,169)	21,534
Effect of exchange rate changes on cash and cash equivalents	(1,101)	(288)
Net increase in cash and cash equivalents	32,242	31,755
Cash and cash equivalents at beginning of period	85,908	68,035
Cash and cash equivalents at end of period	118,150	99,790
Supplemental cash flow information
Cash paid for interest	11,977	10,900
Cash paid for taxes	$ 471	$ 1,523

Description of Business

Description of Business	3 Months Ended
	Mar. 28, 2021
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 Second Merger, as such term is defined in that certain Agreement and Plan of Merger, dated November 1, 2019, by and among Gores III, EAP Merger Sub, Inc., EAP Merger Sub II, LLC, Shay, and Platinum Equity Advisors, LLC (in its capacity as the stockholder representative) (the “Merger Agreement”)) and its subsidiaries. Additionally, the stockholders of Shay as of immediately prior to the transaction held a portion of the common stock of the Company. For accounting purposes, the Business Combination is treated as a reverse acquisition and recapitalization (the “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 a wide variety of integrated support solutions, including defense and military readiness, diplomacy, intelligence support, business process outsourcing, counter-terrorism solutions, 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”), the National Aeronautics and Space Administration (“NASA”), Department of Homeland Security, intelligence community agencies and other civilian agencies, as well as allied foreign governments and international organizations. The Company’s operations are currently 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, NASA, and other government agencies for work both 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. 28, 2021
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 U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for annual financial information. In management’s opinion, all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation have been included. The Company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business process, which were on March 28, 2021 and March 29, 2020, respectively. 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. Use of Estimates These consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates and assumptions, including assumptions to determine the fair value of acquired assets and liabilities, recoverability of long-lived assets, goodwill, valuation allowances on deferred taxes, inputs used in stock based compensation, inputs in the valuation of the warrants liability and anticipated contract costs and revenues utilized in the earnings recognition process, which affect the reported amounts in the consolidated financial statements and accompanying notes. Due to the size and nature of many of the Company’s programs, the estimation of total revenues and cost at completion is subject to a wide range of variables, including assumptions for timing and risks. Actual results may differ from management’s estimates and changes in these estimates are recorded when known. Restatement of Previously Issued Financial Statements As described on our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, filed with the SEC on May 7, 2021, the Company has restated its financial statements as of and for the year ended December 31, 2020 (“Form 10-K/A”), as well as the unaudited condensed financial statements for the three month period ended March 29, 2020, the three and six month periods ended June 28, 2020 and the three and nine month periods ended September 27, 2020. The decision to restate was reached after considering the SEC Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) issued on April 12, 2021 (the “Staff Statement”). The Staff Statement addressed certain accounting considerations for the accounting for warrants of SPACs. The Staff Statement referenced Accounting Standard Codification 815-40, Contracts in Entity’s Own Equity, which states that warrant instruments that do not meet certain criteria to be considered indexed to an entity’s own stock shall be initially classified as derivative liabilities at their estimated fair values. In periods subsequent to issuance, changes in the estimated fair value of the derivative instrument should be reported as gains or losses in the consolidated statement of operations. The restatement is the result of misapplication of the accounting guidance for warrants, which was identified by the Staff Statement. The impact of the restatement on the condensed consolidated balance sheets, statement of operations, statement of comprehensive income and statement of cash flows for the prior periods included in this Quarterly Report is presented below: Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Revenues $ 617,253 $ — $ 617,253 Cost of revenues 465,208 — $ 465,208 Selling, general and administrative expenses 137,326 — 137,326 Amortization of intangible assets 8,047 — 8,047 Total operating expenses 610,581 — 610,581 Program profit 6,672 — 6,672 Other operating income, net 785 — 785 Operating income 7,457 — 7,457 Interest expense, net (20,948) — (20,948) Other income, net — 30,112 30,112 Income (loss) before income taxes (13,491) 30,112 16,621 Expense (benefit) from income taxes (8,714) (815) (9,529) Net income (loss) (4,777) 30,927 26,150 Noncontrolling interest in earnings of ventures 166 — 166 Net income (loss) attributed to PAE Incorporated $ (4,943) $ 30,927 $ 25,984 Net income (loss) per share attributed to PAE Incorporated: Basic $ (0.08) $ 0.51 $ 0.43 Diluted $ (0.08) $ 0.51 $ 0.43 Weighted average shares outstanding: Basic 59,807,549 59,807,549 59,807,549 Diluted 59,807,549 59,807,549 59,807,549 Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Net (loss) income $ (4,777) $ 30,927 $ 26,150 Other comprehensive income (loss): Change in foreign currency translation adjustment, net of tax (976) — (976) Other, net 281 — 281 Other comprehensive loss (695) — (695) Comprehensive (loss) income (5,472) 30,927 25,455 Comprehensive income attributed to noncontrolling interests 498 — 498 Comprehensive (loss) income attributed to PAE Incorporated $ (5,970) $ 30,927 $ 24,957 December 31, 2020 As filed Restatement adjustments As Restated Assets Current assets: Cash and cash equivalents $ 85,908 $ — $ 85,908 Accounts receivable, net 585,511 — 585,511 Prepaid expenses and other current assets 61,607 — 61,607 Total current assets 733,026 — 733,026 Property and equipment, net 27,615 — 27,615 Deferred income taxes, net — — — Investments 18,272 — 18,272 Goodwill 590,668 — 590,668 Intangible assets, net 258,210 — 258,210 Operating lease right-of-use assets, net 191,370 — 191,370 Other noncurrent assets 10,209 — 10,209 Total assets $ 1,829,370 $ — $ 1,829,370 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 152,962 $ — $ 152,962 Accrued expenses 114,222 — 114,222 Customer advances and billings in excess of costs 106,475 — 106,475 Salaries, benefits and payroll taxes 145,186 — 145,186 Accrued taxes 15,582 — 15,582 Current portion of long-term debt, net 5,961 — 5,961 Operating lease liabilities, current portion 46,756 — 46,756 Other current liabilities 45,037 — 45,037 Total current liabilities 632,181 — 632,181 — Deferred income taxes, net 4,389 — 4,389 Long-term debt, net 860,306 — 860,306 Long-term operating lease liabilities 145,569 — 145,569 Warrant liability — 50,467 50,467 Other long-term liabilities 30,273 — 30,273 Total liabilities 1,672,718 50,467 1,723,185 Stockholders’ equity: Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized; no shares issued and outstanding — — — 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 December 31, 2020 and December 31, 2019, respectively 9 — 9 Additional paid-in capital 252,612 (63,927) 188,685 Accumulated deficit (130,081) 13,460 (116,621) Accumulated other comprehensive income (loss) 1,876 — 1,876 Total PAE Incorporated stockholders' equity 124,416 (50,467) 73,949 Noncontrolling interests 32,236 — 32,236 Total liabilities and stockholders’ equity $ 1,829,370 $ — $ 1,829,370 Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Operating activities Net income (loss) $ (4,777) $ 30,927 $ 26,150 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation of property and equipment 2,583 — 2,583 Amortization of intangible assets 8,047 — 8,047 Amortization of debt issuance cost 6,063 — 6,063 Net undistributed (loss) income from unconsolidated ventures (663) — (663) Deferred income taxes, net (9,081) (815) (9,896) Change in fair value in warrant liability — (33,599) (33,599) Other non-cash activities, net 270 — 270 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net 20,869 — 20,869 Accounts payable (2,417) — (2,417) Accrued expenses (3,779) 3,487 (292) Customer advances and billings in excess of costs 18,223 — 18,223 Salaries, benefits and payroll taxes (21,307) — (21,307) Inventories, net 1,342 — 1,342 Prepaid expenses and other current assets (2,921) — (2,921) Other current and noncurrent liabilities (4,545) — (4,545) Investments 750 — 750 Other noncurrent assets 4,729 — 4,729 Accrued taxes (2,473) — (2,473) Net cash provided by (used in) operating activities 10,913 — 10,913 Investing activities Expenditures for property and equipment (404) — (404) Net cash used in investing activities (404) — (404) Financing activities Net contributions from noncontrolling interests 150 — 150 Borrowings on long-term debt 60,000 — 60,000 Repayments on long-term debt (196,544) — (196,544) Payment of debt issuance costs (964) — (964) Recapitalization from merger with Gores III 605,708 — 605,708 Payment of underwriting and transaction costs (27,268) — (27,268) Distribution to selling stockholders (419,548) — (419,548) Net cash provided by (used in) financing activities 21,534 — 21,534 Effect of exchange rate changes on cash and cash equivalents (288) — (288) Net increase (decrease) in cash and cash equivalents 31,755 — 31,755 Cash and cash equivalents at beginning of period 68,035 — 68,035 Cash and cash equivalents at end of period $ 99,790 $ — $ 99,790 Supplemental cash flow information Cash paid for interest $ 10,900 $ — $ 10,900 Cash paid for taxes $ 1,523 $ — $ 1,523 Update to Significant Accounting Policies There have been no material changes to the Company’s significant accounting policies described in the Company’s Form 10-K/A filed with the SEC on May 7, 2021.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 28, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective in 2021 and interim periods within that year and permits for an early adoption. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of the guidance did not have a material impact on its financial statements and related disclosures. Accounting Pronouncements Not Yet Adopted

Revenues

Revenues	3 Months Ended
	Mar. 28, 2021
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregated Revenues Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 28, 2021 GMS NSS Total DoD $ 162,433 $ 82,200 $ 244,633 Other U.S. government agencies 268,785 120,095 388,880 Commercial and non-U.S. customers 90,343 24,711 115,054 Total $ 521,561 $ 227,006 $ 748,567 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 Revenues by contract type were as follows ( in thousands ): Three Months Ended March 28, 2021 GMS NSS Total Cost-reimbursable $ 260,920 $ 90,093 $ 351,013 Fixed-price 181,304 82,517 263,821 Time and materials 79,337 54,396 133,733 Total $ 521,561 $ 227,006 $ 748,567 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 28, 2021 GMS NSS Total United States $ 288,772 $ 225,870 $ 514,642 International 232,789 1,136 233,925 Total $ 521,561 $ 227,006 $ 748,567 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 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 28, 2021 and December 31, 2020 was $1,744.1 million and $1,722.0 million, respectively. As of March 28, 2021, the Company expects to recognize approximately 87.8% and 12.2% 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 28, December 31, 2021 2020 Contract assets $ 395,455 $ 360,552 Contract liabilities $ 74,197 $ 106,475 The increase in contract assets of $34.9 million during the three months ended March 28, 2021 was primarily due to the timing of billings, partially offset by revenue recognized related to the satisfaction of performance obligations.

Contract Assets and Contract Li

Contract Assets and Contract Liabilities	3 Months Ended
	Mar. 28, 2021
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 28, 2021 GMS NSS Total DoD $ 162,433 $ 82,200 $ 244,633 Other U.S. government agencies 268,785 120,095 388,880 Commercial and non-U.S. customers 90,343 24,711 115,054 Total $ 521,561 $ 227,006 $ 748,567 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 Revenues by contract type were as follows ( in thousands ): Three Months Ended March 28, 2021 GMS NSS Total Cost-reimbursable $ 260,920 $ 90,093 $ 351,013 Fixed-price 181,304 82,517 263,821 Time and materials 79,337 54,396 133,733 Total $ 521,561 $ 227,006 $ 748,567 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 28, 2021 GMS NSS Total United States $ 288,772 $ 225,870 $ 514,642 International 232,789 1,136 233,925 Total $ 521,561 $ 227,006 $ 748,567 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 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 28, 2021 and December 31, 2020 was $1,744.1 million and $1,722.0 million, respectively. As of March 28, 2021, the Company expects to recognize approximately 87.8% and 12.2% 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 28, December 31, 2021 2020 Contract assets $ 395,455 $ 360,552 Contract liabilities $ 74,197 $ 106,475 The increase in contract assets of $34.9 million during the three months ended March 28, 2021 was primarily due to the timing of billings, partially offset by revenue recognized related to the satisfaction of performance obligations.

Business Combinations and Acqui

Business Combinations and Acquisitions	3 Months Ended
	Mar. 28, 2021
Business Combinations [Abstract]
Business Combinations and Acquisitions	Business Combinations and Acquisitions As described in Note 1 - “Description of Business,” 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 (legal acquirer) 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 simultaneously by the 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 (as defined below) 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 $0.0001 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-year period following the completion of the Business Combination. See Note 11 - “Stockholders’ Equity - Earn-Out Agreement” for additional information. The Company also has certain warrants issued by Gores III that remain outstanding after the Business Combination. In connection with the Business Combination, the Company recorded $18.2 million, net of tax as a reduction to additional paid in capital related to the transaction costs. These costs were directly attributable to the Recapitalization. In addition, the Company recorded $3.4 million of transaction costs related to the warrants as non-operating expense in the consolidated statement of operations. During the third quarter of 2020, pursuant to the post-closing adjustment provisions contained in the Merger Agreement, the Company made a post-closing adjustment payment of $20.2 million to the Shay Stockholders. In addition, the Company paid $1.0 million to certain members of PAE management in connection with the post-closing adjustment, and such amount was recorded as compensation expense. CENTRA Technology, Inc. On November 20, 2020, the Company acquired 100% of the outstanding capital stock of CENTRA Technology, Inc. (“CENTRA”) for a consideration paid of $225.3 million, net. The results of CENTRA’s operations have been included in the Company’s condensed consolidated financial statements since that date. This business combination expands and differentiates PAE's capabilities in intelligence analysis, communication systems integration and research and development services for intelligence and defense customers. The Company recognized fair values of assets acquired of $177.4 million and assumed liabilities of $77.2 million allocating $125.1 million to goodwill and $74.1 million to intangible assets. The goodwill of $125.1 million arising from the acquisition relates primarily to revenue and cost synergies. This goodwill is not deductible for tax purposes. The Company has completed the purchase accounting valuation for this acquisition. Metis Solutions Corporation On November 23, 2020, the Company completed the acquisition of 100% of the capital stock of Metis Solutions Corporation (“Metis”) for a consideration paid of $95.7 million in cash. The results of Metis operations have been included in the condensed consolidated financial statements since that date. This business combination expands and differentiates PAE's capabilities in intelligence analysis, training and program support for intelligence and defense customers. The Company recognized fair values of assets acquired of $60.4 million and assumed liabilities of $20.7 million allocating $56.0 million to goodwill and $37.8 million to intangible assets. The goodwill of $56.0 million arising from the acquisition relates primarily to revenue and cost synergies. This goodwill is not deductible for tax purposes.

Accounts Receivable, net

Accounts Receivable, net	3 Months Ended
	Mar. 28, 2021
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 28, December 31, 2021 2020 Billed receivables $ 169,668 $ 227,787 Unbilled receivables 395,455 360,552 Less allowance for credit losses (2,725) (2,828) Total accounts receivables, net $ 562,398 $ 585,511 As of March 28, 2021 approximately 91.3% 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. 28, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, net	Goodwill and Intangible Assets, net Goodwill There was no impairment for the three months ended March 28, 2021 and for the three months ended March 29, 2020, respectively. The Company considered the implications of COVID-19 as it relates to the fair value of goodwill. COVID-19 has had a marginally unfavorable impact on the Company’s results of operations for the three months ended March 28, 2021. 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 anticipate 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 options. Based on management’s assessment there has been no material impact to the fair value of goodwill due to the implications of COVID-19. Intangible Assets, net The components of intangible assets, net consisted of the following as of the dates presented (in thousands): March 28, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 390,900 $ (160,640) $ 230,260 Technology 1,700 (1,700) — Trade name 24,800 (9,065) 15,735 Total $ 417,400 $ (171,405) $ 245,995 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 390,900 $ (149,163) $ 241,737 Technology 1,700 (1,700) — Trade name 24,800 (8,327) 16,473 Total $ 417,400 $ (159,190) $ 258,210 As of the three months ended March 28, 2021, customer relationships and trade name intangibles had weighted average remaining useful lives of 8.0 years and 5.7 years, respectively. For the three months ended March 28, 2021 and March 29, 2020, amortization expense was approximately $12.2 million and $8.0 million, respectively. Estimated amortization expense in future years is expected to be: As of March 28, 2021 Remainder of 2021 $ 37,891 2022 50,089 2023 40,666 2024 33,782 2025 28,015 Thereafter 55,552 Total $ 245,995

Consolidated Ventures

Consolidated Ventures	3 Months Ended
	Mar. 28, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidated Ventures	Consolidated Ventures The Company consolidates an investment when it has determined that the investment is a variable interest entity (“VIE”) and that the Company is the primary beneficiary. As the primary beneficiary, the Company has a risk and obligation to absorb any losses significant to the VIE and the power, through voting rights or similar rights, to direct the activities that could impact economic performance of the VIE. The use of the assets of the VIEs to settle the Company’s liabilities 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 28, December 31, 2021 2020 Assets Total assets $ 145,862 $ 145,664 Liabilities and equity Total liabilities $ 97,461 $ 96,318 Total equity 48,401 49,346 Total liabilities and equity $ 145,862 $ 145,664 The condensed consolidated statements of operations include the following amounts from consolidated VIEs for the periods presented ( in thousands ): Three Months Ended March 28, March 29, 2021 2020 Income statements Revenues $ 91,527 $ 87,191 Cost of revenues 75,111 68,525 Selling, general and administrative expenses 17,497 18,017 Total operating expenses 92,608 86,542 Program (loss) income (1,081) 649 Other loss, net (225) (1,049) Net loss $ (1,306) $ (400) DZSP 21 LLC

Debt

Debt	3 Months Ended
	Mar. 28, 2021
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consisted of the following as of the dates presented ( in thousands ): March 28, December 31, 2021 2020 First Term Loan $ 890,000 $ 890,000 Total debt 890,000 890,000 Unamortized discount and debt issuance costs (23,023) (23,733) Total debt, net of discount and debt issuance costs 866,977 866,267 Less current maturities of long-term debt (5,920) (5,961) Total long-term debt, net of current $ 861,057 $ 860,306 Credit Agreements On October 19, 2020, the Company refinanced the 2016 credit agreements (comprised of (i) a first lien term loan credit agreement, as amended; (ii) a second lien term loan credit agreement, as amended; and (iii) a revolving credit facility, as amended, each dated as of October 26, 2016) (the “2016 Credit Agreements”) and entered into new senior secured credit facilities (the “2020 Credit Agreements”). The 2020 Credit Agreements provide for borrowings up to $890.0 million. The 2020 Credit Agreements established a $740.0 million term loan facility maturing in October 2027 priced at LIBOR plus a spread of 4.5%, a $150.0 million delayed draw term loan facility maturing in October 2027 priced at LIBOR plus a spread of 4.5% (together the “First Term Loan”), and a $175.0 million senior secured revolving credit facility (the “2020 ABL Credit Agreement”) maturing in October 2025 priced at LIBOR plus a spread of 1.8% to 2.3%. The 2020 Credit Agreements require the Company to comply with specified financial covenants under certain circumstances, including the maintenance of certain leverage ratios. The 2020 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. PAE was in compliance with the financial covenants under the 2020 Credit Agreements as of March 28, 2021 and December 31, 2020, respectively. Future principal maturities of the Company’s long-term debt are summarized as follows ( in thousands ): As of March 28, 2021 Remainder of 2021 $ 8,900 2022 8,900 2023 8,900 2024 8,900 2025 8,900 Thereafter 845,500 Total $ 890,000 As of March 28, 2021 and December 31, 2020, the available borrowing capacity under the 2020 ABL Credit Agreement was approximately $146.7 million and $132.8 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) 3.5% 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 Term 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. 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 2020 Credit Agreements). As of March 28, 2021 and December 31, 2020, the applicable interest rate on the amounts borrowed under the First Term Loan was 5.3% for each period, respectively. The interest rate per annum applicable to the 2020 Credit Agreements is equal to either a Base Rate or a LIBO Rate plus (i) a range of 0.8% to 1.3% in the case of Base Rate loans and (ii) a range of 1.8% to 2.3% in the case of LIBO Rate loans, each based on average availability as of the first day of each quarter. As of March 28, 2021 and December 31, 2020, the applicable interest rate on amounts borrowed under the 2020 Revolving Credit Facility was 4.0% for each period, respectively. In addition, the LIBO Rate is the subject of recent national, international, and other regulatory guidance and proposals for reform and replacement. In July 2017, the Chief Executive of the U.K. Financial Conduct Authority (the “U.K. FCA”), which regulates LIBO Rate, announced that the U.K. FCA will no longer persuade or compel banks to submit rates for the calculation of the LIBO Rate benchmark after 2021. This announcement indicates that the continuation of LIBO Rate on the current basis cannot and will not be guaranteed after 2021, and it appears likely that LIBO Rate will be discontinued or modified. The consequences of the discontinuance of the LIBO Rate benchmark cannot be entirely predicted but could include an increase in the cost of our variable rate indebtedness. Letters of Credit The Company had ten outstanding letters of credit for program and insurance requirements totaling approximately $23.4 million as of March 28, 2021 and 13 outstanding letters of credit for program and insurance requirements totaling approximately $23.9 million as of December 31, 2020.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 28, 2021
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. 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”)) are 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-year period following the Closing Date (the “Earn-Out Period”) the volume weighted average closing sale price of one share of Class A Common Stock on the Nasdaq (or the exchange which shares of Class A Common Stock are then listed) for a period of at least 10 days out of 20 consecutive trading days (the “Common Share Price”) exceeds certain thresholds, as described below. 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 that occurs within the Earn-Out period as follows: (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 is achieved within the Earn-Out Period, the Company will not be required to issue the Earn-Out Shares. No Triggering Event was achieved during the three months ended March 28, 2021.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 28, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share Basic net income per common share is determined by dividing the net income attributed to stockholders by the weighted average number of common shares outstanding during the period presented. Diluted income 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 28, March 29, 2021 2020 Numerator: Net income attributed to PAE Incorporated $ 13,384 $ 25,984 Denominator: Basic weighted average shares 92,613,057 59,807,549 Diluted weighted average shares 95,128,326 59,807,549 Basic income per share $ 0.14 $ 0.43 Diluted income per share $ 0.14 $ 0.43 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 income per share for the three months ended March 28, 2021. Warrants are 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 income per share for the three months ended March 28, 2021. The condition for the issuance of these shares is based on the weighted average closing sale price of the Company’s Class A Common Stock and such condition has not been met as of March 28, 2021.

Leases

Leases	3 Months Ended
	Mar. 28, 2021
Leases [Abstract]
Leases	Leases At March 28, 2021, the Company had right-of-use (“ROU”) assets, net of $183.3 million and lease liabilities of $183.6 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 selling, general and administrative expenses 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 28, 2021 and March 29, 2020, the Company recognized operating lease costs of approximately $15.6 million and $14.1 million, respectively. The Company’s future minimum operating lease payments for noncancelable operating leases were as follows ( in thousands ): March 28, 2021 Remainder of 2021 $ 36,794 2022 42,340 2023 37,248 2024 29,034 2025 22,565 Thereafter 54,597 Total future minimum lease payments 222,578 Less imputed interest 38,942 Present value of minimum lease payments 183,636 Less current maturities of lease liabilities 47,163 Long-term lease liabilities $ 136,473 The weighted-average remaining lease term and the weighted-average discount rate for the Company’s operating leases were approximately 6.7 years and 6.2%, respectively, at March 28, 2021. The Company made cash payments of approximately $12.1 million for operating leases for the three months ended March 28, 2021, which are included in cash flows from operating activities in the condensed consolidated statement of cash flows.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 28, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsFair 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 utilizes 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 observable 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 and reflect Company’s own estimates and assumptions. 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 2020 Credit Agreements. The warrant liability is measured at fair value at each reporting period and changes in fair value are recorded in other income, net. The public warrants liability is measured using Level 1 inputs based on observable active markets. The private placement warrants liability is measured using Level 3 inputs using the Black-Scholes option pricing model. The significant assumptions the Company used in the model are: Valuation Inputs March 28, 2021 December 31, 2020 Asset price $ 9.2 $ 9.2 Exercise price $ 11.5 $ 11.5 Contractual term 3.9 4.1 Volatility 50.0 % 50.0 % Risk-free rate of return 0.5 % 0.3 % Dividend yield — % — % Details of the changes in fair value for the public warrants and private placement warrants are as follows: Public warrant liability March 28, 2021 Public warrant liability as of December 31 $ 30,667 Changes in fair value (667) Ending public warrant liability $ 30,000 Private warrant liability March 28, 2021 Private warrant liability as of December 31 $ 19,800 Changes in fair value (533) Ending private warrant liability $ 19,267

Legal Proceedings, Commitments,

Legal Proceedings, Commitments, and Contingencies	3 Months Ended
	Mar. 28, 2021
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. 28, 2021
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company's operations and reportable segments are organized around the nature of the services and products provided to customers. The Company defines its reportable segments based on the way the CODM 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 and allocate resources 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 28, March 29, 2021 2020 Revenues GMS $ 521,561 $ 457,444 NSS 227,006 159,809 Corporate — — Total revenues $ 748,567 $ 617,253 Operating income (loss) GMS $ 24,514 $ 12,603 NSS 11,390 4,367 Corporate (9,708) (9,513) Total operating income $ 26,196 $ 7,457 Amortization of intangible assets GMS $ 4,161 $ 4,115 NSS 8,054 3,932 Corporate — — Total amortization of intangible assets $ 12,215 $ 8,047 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. Less than 10.0% of the Company’s revenues and tangible long-lived assets are generated by or owned by entities outside of the United States. Therefore, additional segment financial information by geographic location is not presented.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Mar. 28, 2021
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 a payment of the net cash savings 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 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 28, 2021. Advisory Services During the three months ended March 28, 2021, there were no management fees, transaction and advisory fee recognized related to any of the Company affiliates. During the three months ended March 29, 2020, the Company recognized management fees, transaction and advisory fees, and related expenses of approximately $15.0 million. These expenses were for services rendered by one or more affiliates of Platinum Equity, LLC. As a result of the Business Combination, $15.0 million was included with other similar transactional expenses and recorded as a reduction to the recapitalized equity.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 28, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s provision for income tax expense (benefits) was approximately $2.6 million, and its effective income tax rates was 17.5% for the three months period ended March 28, 2021. The Company’s provision for income tax expense (benefits) was approximately $(9.5) million, and its effective income tax rates was 57.3% for the three months period ended March 29, 2020. The provision for income taxes for the period ended March 28, 2021 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”), nontaxable income including the fair value adjustment for warrants, and the effect of foreign operations. 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 FDII, the Coronavirus Aid, Relief and Economic Security Act (as amended, the “CARES Act”) adjustments, nontaxable income including the fair value adjustment for warrants, and settlement of foreign taxes.

Significant Accounting Princi_2

Significant Accounting Principles and Policies (Policies)	3 Months Ended
	Mar. 28, 2021
Accounting Policies [Abstract]
Segment Reporting	The Company’s operations are currently 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, NASA, and other government agencies for work both 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 U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) for annual financial information. In management’s opinion, all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation have been included. The Company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business process, which were on March 28, 2021 and March 29, 2020, respectively. 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.
Use of Estimates	Use of Estimates These consolidated financial statements are prepared in conformity with U.S. GAAP, which requires the use of estimates and assumptions, including assumptions to determine the fair value of acquired assets and liabilities, recoverability of long-lived assets, goodwill, valuation allowances on deferred taxes, inputs used in stock based compensation, inputs in the valuation of the warrants liability and anticipated contract costs and revenues utilized in the earnings recognition process, which affect the reported amounts in the consolidated financial statements and accompanying notes. Due to the size and nature of many of the Company’s programs, the estimation of total revenues and cost at completion is subject to a wide range of variables, including assumptions for timing and risks. Actual results may differ from management’s estimates and changes in these estimates are recorded when known.
Accounting Pronouncements Adopted and Accounting Pronouncements Not Yet Adopted	Accounting Pronouncements Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 is effective in 2021 and interim periods within that year and permits for an early adoption. The Company adopted ASU 2019-12 effective January 1, 2021. The adoption of the guidance did not have a material impact on its financial statements and related disclosures. Accounting Pronouncements Not Yet Adopted
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 utilizes 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 observable 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 and reflect Company’s own estimates and assumptions. 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 2020 Credit Agreements.

Significant Accounting Princi_3

Significant Accounting Principles and Policies (Tables)	3 Months Ended
	Mar. 28, 2021
Accounting Policies [Abstract]
Impact of Restatement	The impact of the restatement on the condensed consolidated balance sheets, statement of operations, statement of comprehensive income and statement of cash flows for the prior periods included in this Quarterly Report is presented below: Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Revenues $ 617,253 $ — $ 617,253 Cost of revenues 465,208 — $ 465,208 Selling, general and administrative expenses 137,326 — 137,326 Amortization of intangible assets 8,047 — 8,047 Total operating expenses 610,581 — 610,581 Program profit 6,672 — 6,672 Other operating income, net 785 — 785 Operating income 7,457 — 7,457 Interest expense, net (20,948) — (20,948) Other income, net — 30,112 30,112 Income (loss) before income taxes (13,491) 30,112 16,621 Expense (benefit) from income taxes (8,714) (815) (9,529) Net income (loss) (4,777) 30,927 26,150 Noncontrolling interest in earnings of ventures 166 — 166 Net income (loss) attributed to PAE Incorporated $ (4,943) $ 30,927 $ 25,984 Net income (loss) per share attributed to PAE Incorporated: Basic $ (0.08) $ 0.51 $ 0.43 Diluted $ (0.08) $ 0.51 $ 0.43 Weighted average shares outstanding: Basic 59,807,549 59,807,549 59,807,549 Diluted 59,807,549 59,807,549 59,807,549 Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Net (loss) income $ (4,777) $ 30,927 $ 26,150 Other comprehensive income (loss): Change in foreign currency translation adjustment, net of tax (976) — (976) Other, net 281 — 281 Other comprehensive loss (695) — (695) Comprehensive (loss) income (5,472) 30,927 25,455 Comprehensive income attributed to noncontrolling interests 498 — 498 Comprehensive (loss) income attributed to PAE Incorporated $ (5,970) $ 30,927 $ 24,957 December 31, 2020 As filed Restatement adjustments As Restated Assets Current assets: Cash and cash equivalents $ 85,908 $ — $ 85,908 Accounts receivable, net 585,511 — 585,511 Prepaid expenses and other current assets 61,607 — 61,607 Total current assets 733,026 — 733,026 Property and equipment, net 27,615 — 27,615 Deferred income taxes, net — — — Investments 18,272 — 18,272 Goodwill 590,668 — 590,668 Intangible assets, net 258,210 — 258,210 Operating lease right-of-use assets, net 191,370 — 191,370 Other noncurrent assets 10,209 — 10,209 Total assets $ 1,829,370 $ — $ 1,829,370 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 152,962 $ — $ 152,962 Accrued expenses 114,222 — 114,222 Customer advances and billings in excess of costs 106,475 — 106,475 Salaries, benefits and payroll taxes 145,186 — 145,186 Accrued taxes 15,582 — 15,582 Current portion of long-term debt, net 5,961 — 5,961 Operating lease liabilities, current portion 46,756 — 46,756 Other current liabilities 45,037 — 45,037 Total current liabilities 632,181 — 632,181 — Deferred income taxes, net 4,389 — 4,389 Long-term debt, net 860,306 — 860,306 Long-term operating lease liabilities 145,569 — 145,569 Warrant liability — 50,467 50,467 Other long-term liabilities 30,273 — 30,273 Total liabilities 1,672,718 50,467 1,723,185 Stockholders’ equity: Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized; no shares issued and outstanding — — — 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 December 31, 2020 and December 31, 2019, respectively 9 — 9 Additional paid-in capital 252,612 (63,927) 188,685 Accumulated deficit (130,081) 13,460 (116,621) Accumulated other comprehensive income (loss) 1,876 — 1,876 Total PAE Incorporated stockholders' equity 124,416 (50,467) 73,949 Noncontrolling interests 32,236 — 32,236 Total liabilities and stockholders’ equity $ 1,829,370 $ — $ 1,829,370 Three Months Ended March 29, 2020 As filed Restatement adjustments As Restated Operating activities Net income (loss) $ (4,777) $ 30,927 $ 26,150 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation of property and equipment 2,583 — 2,583 Amortization of intangible assets 8,047 — 8,047 Amortization of debt issuance cost 6,063 — 6,063 Net undistributed (loss) income from unconsolidated ventures (663) — (663) Deferred income taxes, net (9,081) (815) (9,896) Change in fair value in warrant liability — (33,599) (33,599) Other non-cash activities, net 270 — 270 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable, net 20,869 — 20,869 Accounts payable (2,417) — (2,417) Accrued expenses (3,779) 3,487 (292) Customer advances and billings in excess of costs 18,223 — 18,223 Salaries, benefits and payroll taxes (21,307) — (21,307) Inventories, net 1,342 — 1,342 Prepaid expenses and other current assets (2,921) — (2,921) Other current and noncurrent liabilities (4,545) — (4,545) Investments 750 — 750 Other noncurrent assets 4,729 — 4,729 Accrued taxes (2,473) — (2,473) Net cash provided by (used in) operating activities 10,913 — 10,913 Investing activities Expenditures for property and equipment (404) — (404) Net cash used in investing activities (404) — (404) Financing activities Net contributions from noncontrolling interests 150 — 150 Borrowings on long-term debt 60,000 — 60,000 Repayments on long-term debt (196,544) — (196,544) Payment of debt issuance costs (964) — (964) Recapitalization from merger with Gores III 605,708 — 605,708 Payment of underwriting and transaction costs (27,268) — (27,268) Distribution to selling stockholders (419,548) — (419,548) Net cash provided by (used in) financing activities 21,534 — 21,534 Effect of exchange rate changes on cash and cash equivalents (288) — (288) Net increase (decrease) in cash and cash equivalents 31,755 — 31,755 Cash and cash equivalents at beginning of period 68,035 — 68,035 Cash and cash equivalents at end of period $ 99,790 $ — $ 99,790 Supplemental cash flow information Cash paid for interest $ 10,900 $ — $ 10,900 Cash paid for taxes $ 1,523 $ — $ 1,523

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 28, 2021
Revenue from Contract with Customer [Abstract]
Disaggregated Revenues	Disaggregated revenues by customer type were as follows ( in thousands ): Three Months Ended March 28, 2021 GMS NSS Total DoD $ 162,433 $ 82,200 $ 244,633 Other U.S. government agencies 268,785 120,095 388,880 Commercial and non-U.S. customers 90,343 24,711 115,054 Total $ 521,561 $ 227,006 $ 748,567 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 Revenues by contract type were as follows ( in thousands ): Three Months Ended March 28, 2021 GMS NSS Total Cost-reimbursable $ 260,920 $ 90,093 $ 351,013 Fixed-price 181,304 82,517 263,821 Time and materials 79,337 54,396 133,733 Total $ 521,561 $ 227,006 $ 748,567 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 28, 2021 GMS NSS Total United States $ 288,772 $ 225,870 $ 514,642 International 232,789 1,136 233,925 Total $ 521,561 $ 227,006 $ 748,567 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

Contract Assets and Contract _2

Contract Assets and Contract Liabilities (Tables)	3 Months Ended
	Mar. 28, 2021
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 28, December 31, 2021 2020 Contract assets $ 395,455 $ 360,552 Contract liabilities $ 74,197 $ 106,475

Accounts Receivable, net (Table

Accounts Receivable, net (Tables)	3 Months Ended
	Mar. 28, 2021
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 28, December 31, 2021 2020 Billed receivables $ 169,668 $ 227,787 Unbilled receivables 395,455 360,552 Less allowance for credit losses (2,725) (2,828) Total accounts receivables, net $ 562,398 $ 585,511

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, net (Tables)	3 Months Ended
	Mar. 28, 2021
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 28, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 390,900 $ (160,640) $ 230,260 Technology 1,700 (1,700) — Trade name 24,800 (9,065) 15,735 Total $ 417,400 $ (171,405) $ 245,995 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 390,900 $ (149,163) $ 241,737 Technology 1,700 (1,700) — Trade name 24,800 (8,327) 16,473 Total $ 417,400 $ (159,190) $ 258,210
Estimated Amortization Expense in Future Years	Estimated amortization expense in future years is expected to be: As of March 28, 2021 Remainder of 2021 $ 37,891 2022 50,089 2023 40,666 2024 33,782 2025 28,015 Thereafter 55,552 Total $ 245,995

Consolidated Ventures (Tables)

Consolidated Ventures (Tables)	3 Months Ended
	Mar. 28, 2021
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 28, December 31, 2021 2020 Assets Total assets $ 145,862 $ 145,664 Liabilities and equity Total liabilities $ 97,461 $ 96,318 Total equity 48,401 49,346 Total liabilities and equity $ 145,862 $ 145,664 The condensed consolidated statements of operations include the following amounts from consolidated VIEs for the periods presented ( in thousands ): Three Months Ended March 28, March 29, 2021 2020 Income statements Revenues $ 91,527 $ 87,191 Cost of revenues 75,111 68,525 Selling, general and administrative expenses 17,497 18,017 Total operating expenses 92,608 86,542 Program (loss) income (1,081) 649 Other loss, net (225) (1,049) Net loss $ (1,306) $ (400)

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 28, 2021
Debt Disclosure [Abstract]
Long-term Debt	Long-term debt consisted of the following as of the dates presented ( in thousands ): March 28, December 31, 2021 2020 First Term Loan $ 890,000 $ 890,000 Total debt 890,000 890,000 Unamortized discount and debt issuance costs (23,023) (23,733) Total debt, net of discount and debt issuance costs 866,977 866,267 Less current maturities of long-term debt (5,920) (5,961) Total long-term debt, net of current $ 861,057 $ 860,306
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 28, 2021 Remainder of 2021 $ 8,900 2022 8,900 2023 8,900 2024 8,900 2025 8,900 Thereafter 845,500 Total $ 890,000

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 28, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Loss Per Share	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 28, March 29, 2021 2020 Numerator: Net income attributed to PAE Incorporated $ 13,384 $ 25,984 Denominator: Basic weighted average shares 92,613,057 59,807,549 Diluted weighted average shares 95,128,326 59,807,549 Basic income per share $ 0.14 $ 0.43 Diluted income per share $ 0.14 $ 0.43

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 28, 2021
Leases [Abstract]
Future Minimum Operating Lease Payments	The Company’s future minimum operating lease payments for noncancelable operating leases were as follows ( in thousands ): March 28, 2021 Remainder of 2021 $ 36,794 2022 42,340 2023 37,248 2024 29,034 2025 22,565 Thereafter 54,597 Total future minimum lease payments 222,578 Less imputed interest 38,942 Present value of minimum lease payments 183,636 Less current maturities of lease liabilities 47,163 Long-term lease liabilities $ 136,473

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 28, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Assumptions	The significant assumptions the Company used in the model are: Valuation Inputs March 28, 2021 December 31, 2020 Asset price $ 9.2 $ 9.2 Exercise price $ 11.5 $ 11.5 Contractual term 3.9 4.1 Volatility 50.0 % 50.0 % Risk-free rate of return 0.5 % 0.3 % Dividend yield — % — %
Schedule of Changes in Fair Value of Warrants	Details of the changes in fair value for the public warrants and private placement warrants are as follows: Public warrant liability March 28, 2021 Public warrant liability as of December 31 $ 30,667 Changes in fair value (667) Ending public warrant liability $ 30,000 Private warrant liability March 28, 2021 Private warrant liability as of December 31 $ 19,800 Changes in fair value (533) Ending private warrant liability $ 19,267

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 28, 2021
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 28, March 29, 2021 2020 Revenues GMS $ 521,561 $ 457,444 NSS 227,006 159,809 Corporate — — Total revenues $ 748,567 $ 617,253 Operating income (loss) GMS $ 24,514 $ 12,603 NSS 11,390 4,367 Corporate (9,708) (9,513) Total operating income $ 26,196 $ 7,457 Amortization of intangible assets GMS $ 4,161 $ 4,115 NSS 8,054 3,932 Corporate — — Total amortization of intangible assets $ 12,215 $ 8,047

Description of Business (Detail

Description of Business (Details)	3 Months Ended
	Mar. 28, 2021segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Significant Accounting Princi_4

Significant Accounting Principles and Policies - Impact of Restatement on Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Reclassification [Line Items]
Revenues	$ 748,567	$ 617,253
Cost of revenues	566,666	465,208
Selling, general and administrative expenses	145,291	137,326
Amortization of intangible assets	12,215	8,047
Total operating expenses	724,172	610,581
Program profit	24,395	6,672
Other loss, net	1,801	785
Operating income	26,196	7,457
Interest expense, net	(12,514)	(20,948)
Other income, net	1,200	30,112
Income before income taxes	14,882	16,621
Expense (benefit) from income taxes	2,609	(9,529)
Net income	12,273	26,150
Noncontrolling interest in earnings of ventures	(1,111)	166
Net income (loss)	$ 13,384	$ 25,984
Net income per share attributed to PAE Incorporated:
Basic income per share (in dollars per share)	$ 0.14	$ 0.43
Diluted income per share (in dollars per share)	$ 0.14	$ 0.43
Weighted average shares outstanding:
Basic weighted average shares (in shares)	92,613,057	59,807,549
Diluted weighted average shares (in shares)	95,128,326	59,807,549
As filed
Reclassification [Line Items]
Revenues		$ 617,253
Cost of revenues		465,208
Selling, general and administrative expenses		137,326
Amortization of intangible assets		8,047
Total operating expenses		610,581
Program profit		6,672
Other loss, net		785
Operating income		7,457
Interest expense, net		(20,948)
Other income, net		0
Income before income taxes		(13,491)
Expense (benefit) from income taxes		(8,714)
Net income		(4,777)
Noncontrolling interest in earnings of ventures		166
Net income (loss)		$ (4,943)
Net income per share attributed to PAE Incorporated:
Basic income per share (in dollars per share)		$ (0.08)
Diluted income per share (in dollars per share)		$ (0.08)
Weighted average shares outstanding:
Basic weighted average shares (in shares)		59,807,549
Diluted weighted average shares (in shares)		59,807,549
Restatement adjustments
Reclassification [Line Items]
Revenues		$ 0
Cost of revenues		0
Selling, general and administrative expenses		0
Amortization of intangible assets		0
Total operating expenses		0
Program profit		0
Other loss, net		0
Operating income		0
Interest expense, net		0
Other income, net		30,112
Income before income taxes		30,112
Expense (benefit) from income taxes		(815)
Net income		30,927
Noncontrolling interest in earnings of ventures		0
Net income (loss)		$ 30,927
Net income per share attributed to PAE Incorporated:
Basic income per share (in dollars per share)		$ 0.51
Diluted income per share (in dollars per share)		$ 0.51
Weighted average shares outstanding:
Basic weighted average shares (in shares)		59,807,549
Diluted weighted average shares (in shares)		59,807,549

Significant Accounting Princi_5

Significant Accounting Principles and Policies - Impact of Restatement on Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Reclassification [Line Items]
Net income	$ 12,273	$ 26,150
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax	(994)	(976)
Other, net	(1)	281
Other comprehensive loss	(995)	(695)
Comprehensive income	11,278	25,455
Comprehensive (loss) income attributed to noncontrolling interests	(1,254)	498
Comprehensive income attributed to PAE Incorporated	$ 12,532	24,957
As filed
Reclassification [Line Items]
Net income		(4,777)
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax		(976)
Other, net		281
Other comprehensive loss		(695)
Comprehensive income		(5,472)
Comprehensive (loss) income attributed to noncontrolling interests		498
Comprehensive income attributed to PAE Incorporated		(5,970)
Restatement adjustments
Reclassification [Line Items]
Net income		30,927
Other comprehensive loss:
Change in foreign currency translation adjustment, net of tax		0
Other, net		0
Other comprehensive loss		0
Comprehensive income		30,927
Comprehensive (loss) income attributed to noncontrolling interests		0
Comprehensive income attributed to PAE Incorporated		$ 30,927

Significant Accounting Princi_6

Significant Accounting Principles and Policies - Impact of Restatement on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 118,150	$ 85,908
Accounts receivable, net	562,398	585,511
Prepaid expenses and other current assets	69,902	61,607
Total current assets	750,450	733,026
Property and equipment, net	27,652	27,615
Deferred income taxes, net		0
Investments	19,400	18,272
Goodwill	591,209	590,668
Intangible assets, net	245,995	258,210
Operating lease right-of-use assets, net	183,276	191,370
Other noncurrent assets	10,283	10,209
Total assets	1,828,265	1,829,370
Current liabilities:
Accounts payable	177,911	152,962
Accrued expenses	121,274	114,222
Customer advances and billings in excess of costs	74,197	106,475
Salaries, benefits and payroll taxes	158,841	145,186
Accrued taxes	15,186	15,582
Current portion of long-term debt, net	5,920	5,961
Operating lease liabilities, current portion	47,163	46,756
Other current liabilities	42,393	45,037
Total current liabilities	642,885	632,181
Deferred income taxes, net	6,587	4,389
Long-term debt, net	861,057	860,306
Long-term operating lease liabilities	136,473	145,569
Warrant liability	49,267	50,467
Other long-term liabilities	32,441	30,273
Total liabilities	1,728,710	1,723,185
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; 93,069,815 and 92,040,654 shares issued and outstanding as of March 28, 2021 and December 31, 2020, respectively	9	9
Additional paid-in capital	167,898	188,685
Accumulated deficit	(103,237)	(116,621)
Accumulated other comprehensive income	881	1,876
Total PAE Incorporated stockholders' equity	65,551	73,949
Noncontrolling interests	34,004	32,236
Total liabilities and stockholders’ equity	$ 1,828,265	1,829,370
As filed
Current assets:
Cash and cash equivalents		85,908
Accounts receivable, net		585,511
Prepaid expenses and other current assets		61,607
Total current assets		733,026
Property and equipment, net		27,615
Deferred income taxes, net		0
Investments		18,272
Goodwill		590,668
Intangible assets, net		258,210
Operating lease right-of-use assets, net		191,370
Other noncurrent assets		10,209
Total assets		1,829,370
Current liabilities:
Accounts payable		152,962
Accrued expenses		114,222
Customer advances and billings in excess of costs		106,475
Salaries, benefits and payroll taxes		145,186
Accrued taxes		15,582
Current portion of long-term debt, net		5,961
Operating lease liabilities, current portion		46,756
Other current liabilities		45,037
Total current liabilities		632,181
Deferred income taxes, net		4,389
Long-term debt, net		860,306
Long-term operating lease liabilities		145,569
Warrant liability		0
Other long-term liabilities		30,273
Total liabilities		1,672,718
Stockholders’ equity:
Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized; no shares issued and outstanding		0
Common stock, $0.0001 par value per share: 210,000,000 shares authorized; 93,069,815 and 92,040,654 shares issued and outstanding as of March 28, 2021 and December 31, 2020, respectively		9
Additional paid-in capital		252,612
Accumulated deficit		(130,081)
Accumulated other comprehensive income		1,876
Total PAE Incorporated stockholders' equity		124,416
Noncontrolling interests		32,236
Total liabilities and stockholders’ equity		1,829,370
Restatement adjustments
Current assets:
Cash and cash equivalents		0
Accounts receivable, net		0
Prepaid expenses and other current assets		0
Total current assets		0
Property and equipment, net		0
Deferred income taxes, net		0
Investments		0
Goodwill		0
Intangible assets, net		0
Operating lease right-of-use assets, net		0
Other noncurrent assets		0
Total assets		0
Current liabilities:
Accounts payable		0
Accrued expenses		0
Customer advances and billings in excess of costs		0
Salaries, benefits and payroll taxes		0
Accrued taxes		0
Current portion of long-term debt, net		0
Operating lease liabilities, current portion		0
Other current liabilities		0
Total current liabilities		0
Deferred income taxes, net		0
Long-term debt, net		0
Long-term operating lease liabilities		0
Warrant liability		50,467
Other long-term liabilities		0
Total liabilities		50,467
Stockholders’ equity:
Preferred stock, $0.0001 par value per share, 1,000,000 shares authorized; no shares issued and outstanding		0
Common stock, $0.0001 par value per share: 210,000,000 shares authorized; 93,069,815 and 92,040,654 shares issued and outstanding as of March 28, 2021 and December 31, 2020, respectively		0
Additional paid-in capital		(63,927)
Accumulated deficit		13,460
Accumulated other comprehensive income		0
Total PAE Incorporated stockholders' equity		(50,467)
Noncontrolling interests		0
Total liabilities and stockholders’ equity		$ 0

Significant Accounting Princi_7

Significant Accounting Principles and Policies - Impact of Restatement on Condensed Consolidated Balance Sheet (Additional Information) (Details) - $ / shares	Mar. 28, 2021	Dec. 31, 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)	93,069,815	92,040,654	21,127,823
Common stock outstanding (in shares)	93,069,815	92,040,654	21,127,823

Significant Accounting Princi_8

Significant Accounting Principles and Policies - Impact of Restatement on Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Operating activities
Net income	$ 12,273	$ 26,150
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment	2,268	2,583
Amortization of intangible assets	12,215	8,047
Amortization of debt issuance cost	777	6,063
Stock-based compensation	2,270	0
Net undistributed (loss) income from unconsolidated ventures	(2,411)	(663)
Deferred income taxes, net	2,818	(9,896)
Change in fair value of warrant liability	(1,200)	(33,599)
Other non-cash activities, net	(140)	270
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net	22,685	20,869
Accounts payable	25,037	(2,417)
Accrued expenses	7,335	(292)
Customer advances and billings in excess of costs	(32,276)	18,223
Salaries, benefits and payroll taxes	13,951	(21,307)
Inventories, net		1,342
Prepaid expenses and other current assets		(2,921)
Other current and noncurrent liabilities	(10,632)	(4,545)
Investments	1,374	750
Other noncurrent assets	7,999	4,729
Accrued taxes	(392)	(2,473)
Net cash provided by operating activities	55,396	10,913
Investing activities
Expenditures for property and equipment	(2,434)	(404)
Proceeds from sales of property	222	0
Acquisition of noncontrolling interest	(14,300)	0
Other investing activities, net	(372)	0
Net cash used in investing activities	(16,884)	(404)
Financing activities
Net contributions from noncontrolling interests	490	150
Borrowings on long-term debt	20,000	60,000
Repayments on long-term debt	(20,000)	(196,544)
Payment of debt issuance costs	0	(964)
Recapitalization from merger with Gores III	0	605,708
Payment of underwriting and transaction costs	0	(27,268)
Distribution to selling stockholders	0	(419,548)
Stock-based compensation tax withholding obligation	(5,659)	0
Net cash (used in) provided by financing activities	(5,169)	21,534
Effect of exchange rate changes on cash and cash equivalents	(1,101)	(288)
Net increase in cash and cash equivalents	32,242	31,755
Cash and cash equivalents at beginning of period	85,908	68,035
Cash and cash equivalents at end of period	118,150	99,790
Supplemental cash flow information
Cash paid for interest	11,977	10,900
Cash paid for taxes	$ 471	1,523
As filed
Operating activities
Net income		(4,777)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment		2,583
Amortization of intangible assets		8,047
Amortization of debt issuance cost		6,063
Net undistributed (loss) income from unconsolidated ventures		(663)
Deferred income taxes, net		(9,081)
Change in fair value of warrant liability		0
Other non-cash activities, net		270
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net		20,869
Accounts payable		(2,417)
Accrued expenses		(3,779)
Customer advances and billings in excess of costs		18,223
Salaries, benefits and payroll taxes		(21,307)
Inventories, net		1,342
Prepaid expenses and other current assets		(2,921)
Other current and noncurrent liabilities		(4,545)
Investments		750
Other noncurrent assets		4,729
Accrued taxes		(2,473)
Net cash provided by operating activities		10,913
Investing activities
Expenditures for property and equipment		(404)
Net cash used in investing activities		(404)
Financing activities
Net contributions from noncontrolling interests		150
Borrowings on long-term debt		60,000
Repayments on long-term debt		(196,544)
Payment of debt issuance costs		(964)
Recapitalization from merger with Gores III		605,708
Payment of underwriting and transaction costs		(27,268)
Distribution to selling stockholders		(419,548)
Net cash (used in) provided by financing activities		21,534
Effect of exchange rate changes on cash and cash equivalents		(288)
Net increase in cash and cash equivalents		31,755
Cash and cash equivalents at beginning of period		68,035
Cash and cash equivalents at end of period		99,790
Supplemental cash flow information
Cash paid for interest		10,900
Cash paid for taxes		1,523
Restatement adjustments
Operating activities
Net income		30,927
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation of property and equipment		0
Amortization of intangible assets		0
Amortization of debt issuance cost		0
Net undistributed (loss) income from unconsolidated ventures		0
Deferred income taxes, net		(815)
Change in fair value of warrant liability		(33,599)
Other non-cash activities, net		0
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net		0
Accounts payable		0
Accrued expenses		3,487
Customer advances and billings in excess of costs		0
Salaries, benefits and payroll taxes		0
Inventories, net		0
Prepaid expenses and other current assets		0
Other current and noncurrent liabilities		0
Investments		0
Other noncurrent assets		0
Accrued taxes		0
Net cash provided by operating activities		0
Investing activities
Expenditures for property and equipment		0
Net cash used in investing activities		0
Financing activities
Net contributions from noncontrolling interests		0
Borrowings on long-term debt		0
Repayments on long-term debt		0
Payment of debt issuance costs		0
Recapitalization from merger with Gores III		0
Payment of underwriting and transaction costs		0
Distribution to selling stockholders		0
Net cash (used in) provided by financing activities		0
Effect of exchange rate changes on cash and cash equivalents		0
Net increase in cash and cash equivalents		0
Cash and cash equivalents at beginning of period		0
Cash and cash equivalents at end of period		0
Supplemental cash flow information
Cash paid for interest		0
Cash paid for taxes		$ 0

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details)	Oct. 19, 2020USD ($)
First Term Loan | Secured Debt
Debt Instrument [Line Items]
Debt instrument, face amount	$ 890,000,000
Secured Debt | Delayed Draw Term Loan Facility Maturing October 2027
Debt Instrument [Line Items]
Maximum borrowing capacity	150,000,000
Revolving Credit Facility | Delayed Draw Term Loan Facility Maturing October 2027
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 175,000,000

Revenues - Disaggregated Revenu

Revenues - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 748,567	$ 617,253
United States
Disaggregation of Revenue [Line Items]
Revenues	514,642	407,048
International
Disaggregation of Revenue [Line Items]
Revenues	233,925	210,205
Cost-reimbursable
Disaggregation of Revenue [Line Items]
Revenues	351,013	302,983
Fixed-price
Disaggregation of Revenue [Line Items]
Revenues	263,821	230,996
Time and materials
Disaggregation of Revenue [Line Items]
Revenues	133,733	83,274
GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	521,561	457,444
GMS | United States | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	288,772	248,909
GMS | International | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	232,789	208,535
GMS | Cost-reimbursable | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	260,920	266,080
GMS | Fixed-price | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	181,304	162,038
GMS | Time and materials | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	79,337	29,326
NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	227,006	159,809
NSS | United States | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	225,870	158,139
NSS | International | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	1,136	1,670
NSS | Cost-reimbursable | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	90,093	36,903
NSS | Fixed-price | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	82,517	68,958
NSS | Time and materials | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	54,396	53,948
DoD
Disaggregation of Revenue [Line Items]
Revenues	244,633	254,783
DoD | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	162,433	187,605
DoD | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	82,200	67,178
Other U.S. government agencies
Disaggregation of Revenue [Line Items]
Revenues	388,880	320,764
Other U.S. government agencies | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	268,785	250,042
Other U.S. government agencies | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	120,095	70,722
Commercial and non-U.S. customers
Disaggregation of Revenue [Line Items]
Revenues	115,054	41,706
Commercial and non-U.S. customers | GMS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	90,343	19,797
Commercial and non-U.S. customers | NSS | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues	$ 24,711	$ 21,909

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions	Mar. 28, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Remaining performance obligations balance	$ 1,744.1	$ 1,722
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)	87.80%
Expected period of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected revenue recognized (as a percent)	12.20%
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. 28, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 395,455	$ 360,552
Contract liabilities	$ 74,197	$ 106,475

Contract Assets and Contract _4

Contract Assets and Contract Liabilities - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Revenue from Contract with Customer [Abstract]
Increase (decrease) in contract assets	$ 34.9
Increase (decrease) in contract liabilities	(32.3)
Recognition of contract liabilities	$ 84.4	$ 38

Business Combinations and Acq_2

Business Combinations and Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 23, 2020	Nov. 20, 2020	Feb. 11, 2020	Feb. 10, 2020	Sep. 27, 2020	Mar. 28, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Common stock par value (in dollars per share)						$ 0.0001	$ 0.0001
Goodwill						$ 591,209	$ 590,668
PE Shay Holdings, LLC
Business Acquisition [Line Items]
Post-closing adjustment, payment to management					$ 20,200
PAE Management
Business Acquisition [Line Items]
Post-closing adjustment, payment to management					$ 1,000
Class A Common Stock
Business Acquisition [Line Items]
Common stock par value (in dollars per share)						$ 0.0001
Shay Holding Corporation Merger
Business Acquisition [Line Items]
Aggregate cash consideration paid			$ 424,200
Transaction costs			$ 3,400
Shay Holding Corporation Merger | Earn-Out Shares
Business Acquisition [Line Items]
Period following completion of business combination (in years)			5 years	5 years
Shay Holding Corporation Merger | Additional Paid-in Capital
Business Acquisition [Line Items]
Acquisition fees and expenses			$ 18,200
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	4,000,000
CENTRA
Business Acquisition [Line Items]
Outstanding capital stock acquired (as a percent)		100.00%
Business combination, consideration transferred		$ 225,300
Assets acquired		177,400
Liabilities assumed		77,200
Goodwill		125,100
Intangible assets acquired		$ 74,100
Metis Solution
Business Acquisition [Line Items]
Outstanding capital stock acquired (as a percent)	100.00%
Business combination, consideration transferred	$ 95,700
Assets acquired	60,400
Liabilities assumed	20,700
Goodwill	56,000
Intangible assets acquired	$ 37,800

Accounts Receivable, net - Comp

Accounts Receivable, net - Components of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Receivables [Abstract]
Billed receivables	$ 169,668	$ 227,787
Unbilled receivables	395,455	360,552
Less allowance for credit losses	(2,725)	(2,828)
Total accounts receivables, net	$ 562,398	$ 585,511

Accounts Receivable, net - Narr

Accounts Receivable, net - Narrative (Details)	3 Months Ended
	Mar. 28, 2021
Accounts Receivable | U.S. Government Agencies | Customer Concentration Risk
Product Information [Line Items]
Concentration risk (as a percent)	91.30%

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, net - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment loss	$ 0	$ 0
Amortization of intangible assets	$ 12,215,000	$ 8,047,000
Customer relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets (in years)	8 years
Trade name | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Useful life of finite-lived intangible assets (in years)	5 years 8 months 12 days

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, net - Intangible Assets, net (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 417,400	$ 417,400
Accumulated Amortization	(171,405)	(159,190)
Total	245,995	258,210
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	390,900	390,900
Accumulated Amortization	(160,640)	(149,163)
Total	230,260	241,737
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	24,800	24,800
Accumulated Amortization	(9,065)	(8,327)
Total	$ 15,735	$ 16,473

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, net - Estimated Amortization Expense in Future Years (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 37,891
2022	50,089
2023	40,666
2024	33,782
2025	28,015
Thereafter	55,552
Total	$ 245,995	$ 258,210

Consolidated Ventures - Balance

Consolidated Ventures - Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Assets
Total assets	$ 1,828,265	$ 1,829,370
Liabilities and stockholders’ equity
Total liabilities	1,728,710	1,723,185
Total equity	65,551	73,949
Total liabilities and stockholders’ equity	1,828,265	1,829,370
Variable Interest Entity, Primary Beneficiary
Assets
Total assets	145,862	145,664
Liabilities and stockholders’ equity
Total liabilities	97,461	96,318
Total equity	48,401	49,346
Total liabilities and stockholders’ equity	$ 145,862	$ 145,664

Consolidated Ventures - Stateme

Consolidated Ventures - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Variable Interest Entity [Line Items]
Revenues	$ 748,567	$ 617,253
Cost of revenues	566,666	465,208
Selling, general and administrative expenses	145,291	137,326
Total operating expenses	724,172	610,581
Program profit	24,395	6,672
Other loss, net	1,801	785
Net income (loss)	13,384	25,984
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Revenues	91,527	87,191
Cost of revenues	75,111	68,525
Selling, general and administrative expenses	17,497	18,017
Total operating expenses	92,608	86,542
Program profit	(1,081)	649
Other loss, net	(225)	(1,049)
Net income (loss)	$ (1,306)	$ (400)

Consolidated Ventures - Narrati

Consolidated Ventures - Narrative (Details) - Parsons Government Services, Inc. $ in Millions	Jan. 31, 2021USD ($)
Variable Interest Entity [Line Items]
Minority interest (as a percent)	49.00%
Payments to acquire equity method investments	$ 15.8
Ownership percentage (as a percent)	100.00%

Debt - Long-Term Debt (Details)

Debt - Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Total debt	$ 890,000	$ 890,000
Unamortized discount and debt issuance costs	(23,023)	(23,733)
Total debt, net of discount and debt issuance costs	866,977	866,267
Less current maturities of long-term debt	(5,920)	(5,961)
Total long-term debt, net of current	861,057	860,306
Secured Debt | First Term Loan
Debt Instrument [Line Items]
Total debt	$ 890,000	$ 890,000

Debt - Narrative (Details)

Debt - Narrative (Details)	Oct. 19, 2020USD ($)	Oct. 20, 2016	Mar. 28, 2021USD ($)letter_of_credit	Dec. 31, 2020USD ($)letter_of_credit
Debt Instrument [Line Items]
Number of letters of credit outstanding | letter_of_credit			10	13
Letters of credit outstanding, amount			$ 23,400,000	$ 23,900,000
Base Rate | Variable Rate Component One
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%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.80%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.30%
First Term Loan | Secured Debt
Debt Instrument [Line Items]
Debt instrument, face amount	$ 890,000,000
Debt instrument, interest rate during period (as a percent)			5.30%
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		3.50%
Term Loan Facility Maturing October 2027 | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 740,000,000
Term Loan Facility Maturing October 2027 | Secured Debt | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	4.50%
Delayed Draw Term Loan Facility Maturing October 2027 | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Delayed Draw Term Loan Facility Maturing October 2027 | Secured Debt | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	4.50%
Delayed Draw Term Loan Facility Maturing October 2027 | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 175,000,000
Revolving Credit Facility | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Remaining borrowing capacity			$ 146,700,000	$ 132,800,000
Applicable interest rate (as a percent)			4.00%
Revolving Credit Facility | Revolving Credit Facility | Base Rate | Minimum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		0.80%
Revolving Credit Facility | Revolving Credit Facility | Base Rate | Maximum | Line of Credit
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate		1.30%
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		1.80%
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		2.30%

Debt - Future Principal Maturit

Debt - Future Principal Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Remainder of 2021	$ 8,900
2022	8,900
2023	8,900
2024	8,900
2025	8,900
Thereafter	845,500
Total	$ 890,000	$ 890,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares	Feb. 11, 2020	Feb. 10, 2020	Mar. 28, 2021	Dec. 31, 2020
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
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	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
Class A Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock par value (in dollars per share)			$ 0.0001
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	4,000,000
Minimum threshold trading days			10 days
Consecutive trading days			20 days

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Numerator:
Net income attributed to PAE Incorporated	$ 13,384	$ 25,984
Denominator:
Basic weighted average shares (in shares)	92,613,057	59,807,549
Diluted weighted average shares (in shares)	95,128,326	59,807,549
Basic income per share (in dollars per share)	$ 0.14	$ 0.43
Diluted income per share (in dollars per share)	$ 0.14	$ 0.43

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details)	3 Months Ended
	Mar. 28, 2021shares
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted income per share (in shares)	19,999,985
Earn-Out Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted income per share (in shares)	4,000,000

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets, net	$ 183,276		$ 191,370
Operating lease liabilities	183,636
Operating lease cost	$ 15,600	$ 14,100
Weighted average remaining lease term (in years)	6 years 8 months 12 days
Weighted average discount rate (as a percent)	6.20%
Cash payments for operating leases	$ 12,100

Leases - Future Minimum Operati

Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands	Mar. 28, 2021	Dec. 31, 2020
Leases [Abstract]
Remainder of 2021	$ 36,794
2022	42,340
2023	37,248
2024	29,034
2025	22,565
Thereafter	54,597
Total future minimum lease payments	222,578
Less imputed interest	38,942
Present value of minimum lease payments	183,636
Less current maturities of lease liabilities	47,163	$ 46,756
Long-term lease liabilities	$ 136,473

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Assumptions (Details)	Mar. 28, 2021$ / shares	Dec. 31, 2020$ / shares
Asset price
Class of Warrant or Right [Line Items]
Warrant liability, measurement input	9.2	9.2
Exercise price
Class of Warrant or Right [Line Items]
Warrant liability, measurement input	11.5	11.5
Contractual term
Class of Warrant or Right [Line Items]
Warrant, term	3 years 10 months 24 days	4 years 1 month 6 days
Volatility
Class of Warrant or Right [Line Items]
Warrant liability, measurement input	0.500	0.500
Risk-free rate of return
Class of Warrant or Right [Line Items]
Warrant liability, measurement input	0.005	0.003
Dividend yield
Class of Warrant or Right [Line Items]
Warrant liability, measurement input	0	0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Changes in Fair Value of Warrants (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Warrants and Rights Outstanding [Roll Forward]
Beginning balance	$ 50,467
Change in fair value of warrant liability	1,200	$ 33,599
Ending balance	49,267
Public Warrants
Warrants and Rights Outstanding [Roll Forward]
Beginning balance	30,667
Change in fair value of warrant liability	(667)
Ending balance	30,000
Private Placement
Warrants and Rights Outstanding [Roll Forward]
Beginning balance	19,800
Change in fair value of warrant liability	(533)
Ending balance	$ 19,267

Segment Reporting - Information

Segment Reporting - Information by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Segment Reporting Information [Line Items]
Revenues	$ 748,567	$ 617,253
Operating income (loss)	26,196	7,457
Amortization of intangible assets	12,215	8,047
Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Operating income (loss)	(9,708)	(9,513)
Amortization of intangible assets	0	0
GMS | Operating Segments
Segment Reporting Information [Line Items]
Revenues	521,561	457,444
Operating income (loss)	24,514	12,603
Amortization of intangible assets	4,161	4,115
NSS | Operating Segments
Segment Reporting Information [Line Items]
Revenues	227,006	159,809
Operating income (loss)	11,390	4,367
Amortization of intangible assets	$ 8,054	$ 3,932

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Millions	Feb. 10, 2020	Dec. 31, 2020	Mar. 28, 2021
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	$ 15

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2021	Mar. 29, 2020
Income Tax Disclosure [Abstract]
Expense (benefit) from income taxes	$ 2,609	$ (9,529)
Effective income tax rate (as a percent)	17.50%	57.30%
Payroll tax funding deferral	$ 37,000