Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2014 | Apr. 14, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'DCO | ' |
Entity Registrant Name | 'DUCOMMUN INC /DE/ | ' |
Entity Central Index Key | '0000030305 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 10,856,332 |
Condensed_Consolidated_Income_
Condensed Consolidated Income Statements (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | ' | ' |
Net Sales | $179,753 | $175,915 |
Cost of Sales | ' | ' |
Cost of goods sold | 144,683 | 143,062 |
Gross Profit | 35,070 | 32,853 |
Selling, General and Administrative Expenses | 21,087 | 22,551 |
Operating Income | 13,983 | 10,302 |
Interest Expense | 7,125 | 7,823 |
Income Before Taxes | 6,858 | 2,479 |
Income Tax Expense (Benefit) | 2,229 | -1,228 |
Net Income | $4,629 | $3,707 |
Earnings Per Share | ' | ' |
Basic earnings (loss) per share (in dollars per share) | $0.43 | $0.35 |
Diluted earnings (loss) per share (in dollars per share) | $0.42 | $0.35 |
Weighted-Average Number of Common Shares Outstanding | ' | ' |
Basic (in shares) | 10,844 | 10,600 |
Diluted (in shares) | 11,107 | 10,670 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net Income | $4,629 | $3,707 |
Other Comprehensive Loss | ' | ' |
Amortization of actuarial loss and prior service costs, net of tax benefit of $36 and $102 for the three months ended March 29, 2014 and March 30, 2013, respectively | -69 | -172 |
Other Comprehensive Loss | -69 | -172 |
Comprehensive Income | $4,560 | $3,535 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | ($44) | ($102) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $29,415 | $48,814 |
Accounts receivable, net of allowance for doubtful accounts of $427 and $489 at March 29, 2014 and December 31, 2013, respectively | 100,570 | 91,909 |
Inventories | 148,895 | 140,507 |
Production cost of contracts | 10,479 | 11,599 |
Deferred income taxes | 13,836 | 10,850 |
Other current assets | 21,664 | 27,085 |
Total Current Assets | 324,859 | 330,764 |
Property and Equipment, Net | 94,168 | 96,090 |
Goodwill | 161,940 | 161,940 |
Intangibles, Net | 162,875 | 165,465 |
Other Assets | 9,320 | 9,940 |
Total Assets | 753,162 | 764,199 |
Current Liabilities | ' | ' |
Current portion of long-term debt | 25 | 25 |
Accounts payable | 53,973 | 58,111 |
Accrued liabilities | 39,628 | 45,453 |
Total Current Liabilities | 93,626 | 103,589 |
Long-Term Debt, Less Current Portion | 325,171 | 332,677 |
Deferred Income Taxes | 70,556 | 68,489 |
Other Long-Term Liabilities | 18,922 | 19,750 |
Total Liabilities | 508,275 | 524,505 |
Commitments and Contingencies (Notes 8, 10) | ' | ' |
Shareholders’ Equity | ' | ' |
Common stock - $0.01 par value; 35,000,000 shares authorized; 10,999,632 and 10,960,054 issued at March 29, 2014 and December 31, 2013, respectively | 110 | 110 |
Treasury stock, at cost - held in treasury 143,300 shares at March 29, 2014 and December 31, 2013 | -1,924 | -1,924 |
Additional paid-in capital | 71,037 | 70,542 |
Retained earnings | 179,457 | 174,828 |
Accumulated other comprehensive loss | -3,793 | -3,862 |
Total Shareholders’ Equity | 244,887 | 239,694 |
Total Liabilities and Shareholders’ Equity | $753,162 | $764,199 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $427 | $489 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 10,999,632 | 10,960,054 |
Treasury stock shares, held in treasury | 143,300 | 143,300 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Net Cash (Used in) Provided by Operating Activities: | ' | ' |
Net Income | $4,629 | $3,707 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities | ' | ' |
Depreciation and amortization | 7,426 | 7,033 |
Stock-based compensation expense | 364 | 693 |
Deferred income taxes | -919 | -2,040 |
Recovery of doubtful accounts | -62 | -157 |
Other | 88 | 246 |
Changes in Assets and Liabilities: | ' | ' |
Accounts receivable | -8,599 | 1,066 |
Inventories | -8,388 | -1,084 |
Production cost of contracts | 513 | -2,559 |
Other assets | 5,440 | 1,456 |
Accounts payable | -4,138 | -2,097 |
Accrued and other liabilities | -6,067 | -12,386 |
Net Cash Used in Operating Activities | -9,713 | -6,122 |
Cash Flows from Investing Activities | ' | ' |
Purchases of property and equipment | -2,192 | -2,612 |
Proceeds from sale of assets | 5 | 5 |
Net Cash Used in Investing Activities | -2,187 | -2,607 |
Cash Flows from Financing Activities | ' | ' |
Repayment of term loan and other debt | -7,506 | -7,506 |
Debt issue cost paid | 0 | -181 |
Net proceeds from issuance of common stock under stock plans | 7 | -127 |
Net Cash Used in Financing Activities | -7,499 | -7,814 |
Net Decrease in Cash and Cash Equivalents | -19,399 | -16,543 |
Cash and Cash Equivalents at Beginning of Period | 48,814 | 46,537 |
Cash and Cash Equivalents at End of Period | 29,415 | 29,994 |
Supplemental Disclosures of Cash Flow Information | ' | ' |
Interest paid | 11,397 | 12,037 |
Taxes paid | 58 | 563 |
Non-cash activities: | ' | ' |
Purchases of property and equipment not paid | $182 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Summary of Significant Accounting Policies | |||||||||
Basis of Presentation | |||||||||
The unaudited condensed consolidated financial statements include the accounts of Ducommun Incorporated and its subsidiaries (“Ducommun,” the “Company,” “we,” “us” or “our”), after eliminating intercompany balances and transactions. The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements, but does not contain all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||
Our significant accounting policies were described in Part IV, Item 15(a)(1), “Note 1. Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2013. We followed the same accounting policies for interim reporting. The financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||
In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our condensed consolidated financial position, statements of income, comprehensive income and cash flows in accordance with GAAP for the periods covered by this Quarterly Report on Form 10-Q. The results of operations for the three months ended March 29, 2014, are not necessarily indicative of the results to be expected for the full year ending December 31, 2014. | |||||||||
Our fiscal quarters end on the Saturday closest to the end of March, June and September for the first three fiscal quarters of each year, and ends on December 31 for our fourth fiscal quarter. | |||||||||
Certain reclassifications have been made to prior period amounts to conform to the current year’s presentation. | |||||||||
Use of Estimates | |||||||||
Certain amounts and disclosures included in the unaudited condensed consolidated financial statements required management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | |||||||||
Description of Business | |||||||||
We are a leading global provider of engineering and manufacturing services for high-performance products and high-cost-of failure applications used primarily in the aerospace, defense industrial, natural resources, medical and other industries. Our subsidiaries are organized into two strategic businesses: Ducommun AeroStructures (“DAS”) and Ducommun LaBarge Technologies (“DLT”), each of which is a reportable operating segment. DAS designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. DAS’s products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. DLT designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace and defense, natural resources, industrial and medical and other end-use markets. DLT’s product offerings range from prototype development to complex assemblies. All reportable operating segments follow the same accounting principles. | |||||||||
Earnings Per Share | |||||||||
Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding in each period. Diluted earnings per share are computed by dividing income available to common shareholders plus income associated with dilutive securities by the weighted-average number of common shares outstanding, plus any potential dilutive shares that could be issued if exercised or converted into common stock in each period. | |||||||||
The net earnings, weighted-average number of common shares outstanding used to compute earnings per share were as follows: | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net earnings | $ | 4,629 | $ | 3,707 | |||||
Weighted-average number of common shares outstanding | |||||||||
Basic weighted-average common shares outstanding | 10,844 | 10,600 | |||||||
Dilutive potential common shares | 263 | 70 | |||||||
Diluted weighted-average common shares outstanding | 11,107 | 10,670 | |||||||
Earnings per share | |||||||||
Basic | $ | 0.43 | $ | 0.35 | |||||
Diluted | $ | 0.42 | $ | 0.35 | |||||
Potentially dilutive stock options and stock units to purchase common stock, as shown below, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. However, these shares may be potentially dilutive common shares in the future. | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Stock options and stock units | 254 | 1,048 | |||||||
Cash Equivalents | |||||||||
Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less. These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value below. | |||||||||
Provision for Estimated Losses on Contracts | |||||||||
Provisions for estimated losses on contracts are recorded during the period in which it is determined that total anticipated contract costs will exceed total anticipated contract revenues. The provisions for estimated losses on contracts require management to make certain estimates and assumptions, including those with respect to the future revenue under a contract and the future cost to complete the contract. Management's estimate of the future cost to complete a contract may include assumptions as to improvements in manufacturing efficiency, reductions in operating and material costs, and our ability to resolve claims and assertions with our customers. If any of these or other assumptions and estimates do not materialize in the future, we may be required to record additional provisions for estimated losses on contracts. | |||||||||
Inventory Valuation | |||||||||
Inventories are stated at the lower of cost or market, cost being determined on a first-in, first-out basis. Market value for raw materials is based on replacement costs, and is based on net realizable value for other inventory classifications. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) incurred. Costs under long-term contracts are accumulated into, and removed from, inventory on the same basis as other contracts. We assess the inventory carrying value and reduce it, if necessary, to its net realizable value based on customer orders on hand, and internal demand forecasts using management’s best estimates given information currently available. We maintain an allowance for potentially excess and obsolete inventories and inventories that are carried at costs that are higher than their estimated net realizable values. | |||||||||
Out of Period Adjustments | |||||||||
During the third quarter of 2013, we determined that approximately $1.1 million of inventory had not been valued correctly at our DLT operating segment for periods originating in 2010 through the second quarter of 2013. The errors were attributed to the following quarters; $0.3 million in Q2 2010, $0.5 million in Q2 2011, $0.1 million in Q4 2012, $0.1 million in Q1 2013 and $0.1 million in Q2 2013. We assessed the materiality of these errors and concluded they were immaterial to currently reported annual amounts and previously reported annual and interim amounts. We corrected the errors in the third quarter of 2013 and recorded a $1.1 million charge for inventory reserves for the DLT operating segment and did not restate our consolidated financial statements for the prior annual or interim periods. | |||||||||
Production Cost of Contracts | |||||||||
Production cost of contracts includes non-recurring production costs, such as design and engineering costs, and tooling and other special-purpose machinery necessary to build parts as specified in a contract. Production costs of contracts are recorded to cost of goods sold using the units of delivery method. We review long-lived assets within production costs of contracts for impairment on an annual basis (in the fourth quarter for us) or when events or changes in circumstances indicate that the carrying value of our long-lived assets may not be recoverable. An impairment charge is recognized when the carrying value of an asset exceeds the projected undiscounted future cash flows expected from its use and disposal. | |||||||||
Fair Value | |||||||||
Assets and liabilities that are measured, recorded or disclosed at fair value on a recurring basis are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1, the highest level, refers to the values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant observable inputs. Level 3, the lowest level, includes fair values estimated using significant unobservable inputs. | |||||||||
Accumulated Other Comprehensive Loss | |||||||||
Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was comprised of cumulative pension and retirement liability adjustments, net of tax. | |||||||||
Recent Accounting Pronouncements | |||||||||
New Accounting Guidance Adopted in 2014 | |||||||||
In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes (Topic 740)” (ASU 2013-11), which required the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. This guidance was effective for fiscal years beginning after December 15, 2013, which is our fiscal year 2014, with early adoption permitted. The adoption of this guidance in the three months ended March 29, 2014 reduced deferred tax assets by approximately $0.5 million. | |||||||||
In February 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405)” (ASU 2013-04), which provided guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance in GAAP. The new guidance was effective for us beginning January 1, 2014. Early adoption was permitted. The adoption of this guidance in the three months ended March 29, 2014 did not have a material impact on our condensed consolidated financial statements. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories | |||||||||
Inventories consisted of the following: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 77,705 | $ | 75,985 | |||||
Work in process | 68,531 | 62,115 | |||||||
Finished goods | 9,786 | 11,580 | |||||||
156,022 | 149,680 | ||||||||
Less progress payments | 7,127 | 9,173 | |||||||
Total | $ | 148,895 | $ | 140,507 | |||||
Goodwill
Goodwill | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||
Goodwill | |||||||||||||
The carrying amounts of goodwill, by operating segment, were as follows: | |||||||||||||
(In thousands) | |||||||||||||
Ducommun | Ducommun | Consolidated | |||||||||||
AeroStructures | LaBarge | Ducommun | |||||||||||
Technologies | |||||||||||||
Gross goodwill | $ | 57,243 | $ | 184,970 | $ | 242,213 | |||||||
Accumulated goodwill impairment | — | (80,273 | ) | (80,273 | ) | ||||||||
Balance at December 31, 2013 | $ | 57,243 | $ | 104,697 | $ | 161,940 | |||||||
Balance at March 29, 2014 | $ | 57,243 | $ | 104,697 | $ | 161,940 | |||||||
Accrued_Liabilities
Accrued Liabilities | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued Liabilities | ' | ||||||||
Accrued Liabilities | |||||||||
The components of accrued liabilities were as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 19,537 | $ | 19,929 | |||||
Accrued income tax and sales tax | 2,958 | 1,451 | |||||||
Customer deposits | 2,704 | 3,236 | |||||||
Interest payable | 4,095 | 8,965 | |||||||
Provision for forward loss reserves | 4,249 | 4,825 | |||||||
Other | 6,085 | 7,047 | |||||||
Total | $ | 39,628 | $ | 45,453 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt and the current period interest rates were as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Senior unsecured notes (fixed 9.75%) | $ | 200,000 | $ | 200,000 | |||||
Senior secured term loan (floating 4.75%) | 125,125 | 132,625 | |||||||
Other debt (fixed 5.41%) | 71 | 77 | |||||||
Total Debt | 325,196 | 332,702 | |||||||
Less current portion | 25 | 25 | |||||||
Total long-term debt | $ | 325,171 | $ | 332,677 | |||||
Weighted-average interest rate | 7.83 | % | 7.76 | % | |||||
In the three months ended March 29, 2014, we made voluntary principal prepayments of approximately $7.5 million on our senior secured term loan. | |||||||||
As of March 29, 2014, we had approximately $58.4 million of unused borrowing capacity under the revolving credit facility, after deducting approximately $1.6 million for standby letters of credit. | |||||||||
As of March 29, 2014, we were in compliance with all covenants required by our amended credit agreement. Also as of March 29, 2014, there were no amounts outstanding that would have triggered the leverage covenant under the Amended Credit Agreement. Under the terms of the credit agreement, if, during a given fiscal quarter, (i) the sum of (a) any amounts outstanding under the revolving credit facility plus (b) the amount drawn under any letters of credit exceeds $1.0 million or (ii) the aggregate amount of outstanding letters of credit exceeds $5.0 million, the revolving credit facility will be subject to a maximum total leverage ratio. | |||||||||
The carrying amount of our long-term debt approximated fair value, except for the senior unsecured notes for which the fair value was approximately $223 million. Fair value was estimated using Level 2 inputs, based on the terms of the related debt, recent transactions and estimates using interest rates currently available to us for debt with similar terms and remaining maturities. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 29, 2014 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
Shareholders’ Equity | |
We are authorized to issue five million shares of preferred stock. At March 29, 2014 and December 31, 2013, no preferred shares were issued or outstanding. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Employee Benefit Plans | ' | ||||||||
Employee Benefit Plans | |||||||||
The components of net periodic pension expense were as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Service cost | $ | 173 | $ | 211 | |||||
Interest cost | 319 | 290 | |||||||
Expected return on plan assets | (350 | ) | (306 | ) | |||||
Amortization of actuarial losses | 105 | 274 | |||||||
Net periodic pension cost | $ | 247 | $ | 469 | |||||
The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for the three months ended March 29, 2014 were as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | |||||||||
2014 | |||||||||
Amortization of actuarial loss - total before tax (1) | $ | (105 | ) | ||||||
Tax benefit | 36 | ||||||||
Net of tax | $ | (69 | ) | ||||||
-1 | The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss. |
Indemnifications
Indemnifications | 3 Months Ended |
Mar. 29, 2014 | |
Disclosure of Guarantees and Indemnifications [Abstract] | ' |
Indemnifications | ' |
Indemnifications | |
We have made guarantees and indemnities under which we may be required to make payments to a guaranteed or indemnified party, in relation to certain transactions, including revenue transactions in the ordinary course of business. In connection with certain facility leases, we have indemnified our lessors for certain claims arising from the facility or the lease. We indemnify our directors and officers to the maximum extent permitted under the laws of the State of Delaware. | |
However, we have a directors and officers insurance policy that may reduce our exposure in certain circumstances and may enable us to recover a portion of future amounts that may be payable, if any. The duration of the guarantees and indemnities varies and, in many cases is indefinite but subject to statute of limitations. The majority of guarantees and indemnities do not provide any limitations of the maximum potential future payments we could be obligated to make. Historically, payments related to these guarantees and indemnities have been immaterial. We estimate the fair value of our indemnification obligations as insignificant based on this history and insurance coverage and have, therefore, not recorded any liability for these guarantees and indemnities in the accompanying consolidated balance sheets. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We recorded an income tax expense of approximately $2.2 million (an effective tax rate of 32.5%) in the first quarter of 2014, compared to an income tax benefit of approximately $1.2 million (an effective tax benefit rate of 49.5%) in the first quarter of 2013. | |
The effective tax rate for for the three months ended March 29, 2014 does not include a benefit from the federal research and development (“R&D”) tax credit as it expired on December 31, 2013. The three months ended March 30, 2013 included approximately $2.5 million of federal research and development tax credit benefit. This amount included approximately $2.0 million of 2012 federal research and development tax credit benefits recognized in the first quarter 2013 as a result of the American Taxpayer Relief Act of 2012 (the “Act”), passed in January 2013. This Act included an extension of the federal research and development tax credit for the amounts paid or incurred after December 31, 2011 and before January 1, 2014. | |
Our unrecognized tax benefits were approximately $2.6 million at both March 29, 2014 and December 31, 2013. Most of these amounts, if recognized, would affect the annual income tax rate. It is reasonably possible that the unrecognized tax benefits could be reduced by approximately $0.2 million in the next twelve months. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 29, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies | |
Ducommun is a defendant in a lawsuit entitled United States of America ex rel Taylor Smith, Jeannine Prewitt and James Ailes v. The Boeing Company and Ducommun Inc., filed in the United States District Court for the District of Kansas (the “District Court”). The lawsuit is a qui tam action brought by three former The Boeing Company (“Boeing”) employees (“Relators”) against Boeing and Ducommun on behalf of the United States of America for violations of the United States False Claims Act. The lawsuit alleges that Ducommun sold unapproved parts to Boeing which were installed by Boeing in aircraft ultimately sold to the United States Government and that Boeing and Ducommun submitted or caused to be submitted false claims for payment relating to 21 aircraft sold by Boeing to the United States Government. The lawsuit seeks damages in an amount equal to three times the amount of damages the United States Government sustained because of the defendants’ actions, plus a civil penalty of $10 thousand for each false claim made on or before September 28, 1999, and $11 thousand for each false claim made on or after September 28, 1999, together with attorneys’ fees and costs. The Relators claim that the United States Government sustained damages of $1.6 billion (the contract purchase price of 21 aircraft) or, alternatively, $851 million (the alleged diminished value and increased maintenance cost of the 21 aircraft. After investigating the allegations, the United States Government has declined to intervene in the lawsuit. Ducommun and Boeing have filed motions for summary judgment to dismiss the lawsuit. The motions for summary judgment are pending before the District Court. Ducommun intends to defend itself vigorously against the lawsuit. Ducommun, at this time, is unable to estimate what, if any, liability it may have in connection with the lawsuit. | |
DAS has been directed by California environmental agencies to investigate and take corrective action for groundwater contamination at its facilities located in El Mirage and Monrovia, California. Based on currently available information, Ducommun has established a reserve for its estimated liability for such investigation and corrective action of approximately $1.5 million at March 29, 2014, which is reflected in other long-term liabilities on the consolidated balance sheet. | |
DAS also faces liability as a potentially responsible party for hazardous waste disposed at landfills located in Casmalia and West Covina, California. DAS and other companies and government entities have entered into consent decrees with respect to these landfills with the United States Environmental Protection Agency and/or California environmental agencies under which certain investigation, remediation and maintenance activities are being performed. Based on currently available information, Ducommun preliminarily estimates that the range of its future liabilities in connection with the landfill located in West Covina, California is between approximately $0.4 million and $3.1 million. Ducommun has established a reserve for its estimated liability, in connection with the West Covina landfill of approximately $0.4 million at March 29, 2014, which is reflected in other long-term liabilities on its consolidated balance sheet. Ducommun’s ultimate liability in connection with these matters will depend upon a number of factors, including changes in existing laws and regulations, the design and cost of construction, operation and maintenance activities, and the allocation of liability among potentially responsible parties. | |
In the normal course of business, Ducommun and its subsidiaries are defendants in certain other litigation, claims and inquiries, including matters relating to environmental laws. In addition, Ducommun makes various commitments and incurs contingent liabilities. While it is not feasible to predict the outcome of these matters, Ducommun does not presently expect that any sum it may be required to pay in connection with these matters would have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Business_Segment_Information
Business Segment Information | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Business Segment Information | ' | ||||||||
Business Segment Information | |||||||||
We supply products and services primarily to the aerospace and defense industries. Our subsidiaries are organized into two strategic businesses, DAS and DLT, each of which is a reportable operating segment. | |||||||||
Financial information by reportable operating segment was as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
DAS | $ | 81,654 | $ | 72,705 | |||||
DLT | 98,099 | 103,210 | |||||||
Total Net Sales | $ | 179,753 | $ | 175,915 | |||||
Segment Operating Income | |||||||||
DAS | $ | 10,247 | $ | 6,631 | |||||
DLT | 7,044 | 7,934 | |||||||
17,291 | 14,565 | ||||||||
Corporate General and Administrative Expenses (1) | (3,308 | ) | (4,263 | ) | |||||
Operating Income | $ | 13,983 | $ | 10,302 | |||||
Depreciation and Amortization Expenses | |||||||||
DAS | $ | 2,416 | $ | 2,327 | |||||
DLT | 5,008 | 4,663 | |||||||
Corporate Administration | 2 | 43 | |||||||
Total Depreciation and Amortization Expenses | $ | 7,426 | $ | 7,033 | |||||
Capital Expenditures | |||||||||
DAS | $ | 1,285 | $ | 1,319 | |||||
DLT | 897 | 1,052 | |||||||
Corporate Administration | 10 | 241 | |||||||
Total Capital Expenditures | $ | 2,192 | $ | 2,612 | |||||
-1 | Includes costs not allocated to either the DLT or DAS operating segments. | ||||||||
Segment assets include assets directly identifiable with each segment. Corporate assets include assets not specifically identified with a business segment, including cash. Our segment assets are as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total Assets | |||||||||
DAS | $ | 250,281 | $ | 241,502 | |||||
DLT | 444,207 | 444,224 | |||||||
Corporate Administration | 58,674 | 78,473 | |||||||
Total Assets | $ | 753,162 | $ | 764,199 | |||||
Goodwill and Intangibles | |||||||||
DAS | $ | 64,785 | $ | 65,213 | |||||
DLT | 260,030 | 262,192 | |||||||
Total Goodwill and Intangibles | $ | 324,815 | $ | 327,405 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 29, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The unaudited condensed consolidated financial statements include the accounts of Ducommun Incorporated and its subsidiaries (“Ducommun,” the “Company,” “we,” “us” or “our”), after eliminating intercompany balances and transactions. The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements, but does not contain all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). | |
Our significant accounting policies were described in Part IV, Item 15(a)(1), “Note 1. Summary of Significant Accounting Policies” in our Annual Report on Form 10-K for the year ended December 31, 2013. We followed the same accounting policies for interim reporting. The financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013. | |
In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our condensed consolidated financial position, statements of income, comprehensive income and cash flows in accordance with GAAP for the periods covered by this Quarterly Report on Form 10-Q. The results of operations for the three months ended March 29, 2014, are not necessarily indicative of the results to be expected for the full year ending December 31, 2014. | |
Our fiscal quarters end on the Saturday closest to the end of March, June and September for the first three fiscal quarters of each year, and ends on December 31 for our fourth fiscal quarter. | |
Certain reclassifications have been made to prior period amounts to conform to the current year’s presentation. | |
Use of Estimates | ' |
Use of Estimates | |
Certain amounts and disclosures included in the unaudited condensed consolidated financial statements required management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. | |
Description of Business | ' |
Description of Business | |
We are a leading global provider of engineering and manufacturing services for high-performance products and high-cost-of failure applications used primarily in the aerospace, defense industrial, natural resources, medical and other industries. Our subsidiaries are organized into two strategic businesses: Ducommun AeroStructures (“DAS”) and Ducommun LaBarge Technologies (“DLT”), each of which is a reportable operating segment. DAS designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. DAS’s products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. DLT designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace and defense, natural resources, industrial and medical and other end-use markets. DLT’s product offerings range from prototype development to complex assemblies. All reportable operating segments follow the same accounting principles. | |
Earnings per Share | ' |
Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding in each period. Diluted earnings per share are computed by dividing income available to common shareholders plus income associated with dilutive securities by the weighted-average number of common shares outstanding, plus any potential dilutive shares that could be issued if exercised or converted into common stock in each period. | |
Cash Equivalents | ' |
Cash Equivalents | |
Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less. These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value below. | |
Provision for Estimated Losses on Contracts | ' |
Provision for Estimated Losses on Contracts | |
Provisions for estimated losses on contracts are recorded during the period in which it is determined that total anticipated contract costs will exceed total anticipated contract revenues. The provisions for estimated losses on contracts require management to make certain estimates and assumptions, including those with respect to the future revenue under a contract and the future cost to complete the contract. Management's estimate of the future cost to complete a contract may include assumptions as to improvements in manufacturing efficiency, reductions in operating and material costs, and our ability to resolve claims and assertions with our customers. If any of these or other assumptions and estimates do not materialize in the future, we may be required to record additional provisions for estimated losses on contracts. | |
Inventory Valuation | ' |
Inventory Valuation | |
Inventories are stated at the lower of cost or market, cost being determined on a first-in, first-out basis. Market value for raw materials is based on replacement costs, and is based on net realizable value for other inventory classifications. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) incurred. Costs under long-term contracts are accumulated into, and removed from, inventory on the same basis as other contracts. We assess the inventory carrying value and reduce it, if necessary, to its net realizable value based on customer orders on hand, and internal demand forecasts using management’s best estimates given information currently available. We maintain an allowance for potentially excess and obsolete inventories and inventories that are carried at costs that are higher than their estimated net realizable values. | |
Out of Period Adjustments | ' |
Out of Period Adjustments | |
During the third quarter of 2013, we determined that approximately $1.1 million of inventory had not been valued correctly at our DLT operating segment for periods originating in 2010 through the second quarter of 2013. The errors were attributed to the following quarters; $0.3 million in Q2 2010, $0.5 million in Q2 2011, $0.1 million in Q4 2012, $0.1 million in Q1 2013 and $0.1 million in Q2 2013. We assessed the materiality of these errors and concluded they were immaterial to currently reported annual amounts and previously reported annual and interim amounts. We corrected the errors in the third quarter of 2013 and recorded a $1.1 million charge for inventory reserves for the DLT operating segment and did not restate our consolidated financial statements for the prior annual or interim periods. | |
Production Cost of Contracts | ' |
Production Cost of Contracts | |
Production cost of contracts includes non-recurring production costs, such as design and engineering costs, and tooling and other special-purpose machinery necessary to build parts as specified in a contract. Production costs of contracts are recorded to cost of goods sold using the units of delivery method. We review long-lived assets within production costs of contracts for impairment on an annual basis (in the fourth quarter for us) or when events or changes in circumstances indicate that the carrying value of our long-lived assets may not be recoverable. An impairment charge is recognized when the carrying value of an asset exceeds the projected undiscounted future cash flows expected from its use and disposal. | |
Fair Value | ' |
Fair Value | |
Assets and liabilities that are measured, recorded or disclosed at fair value on a recurring basis are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1, the highest level, refers to the values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant observable inputs. Level 3, the lowest level, includes fair values estimated using significant unobservable inputs. | |
Accumulated Other Comprehensive Loss | ' |
Accumulated Other Comprehensive Loss | |
Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was comprised of cumulative pension and retirement liability adjustments, net of tax. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
New Accounting Guidance Adopted in 2014 | |
In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes (Topic 740)” (ASU 2013-11), which required the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. This guidance was effective for fiscal years beginning after December 15, 2013, which is our fiscal year 2014, with early adoption permitted. The adoption of this guidance in the three months ended March 29, 2014 reduced deferred tax assets by approximately $0.5 million. | |
In February 2013, the FASB issued ASU 2013-04, “Liabilities (Topic 405)” (ASU 2013-04), which provided guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, except for obligations addressed within existing guidance in GAAP. The new guidance was effective for us beginning January 1, 2014. Early adoption was permitted. The adoption of this guidance in the three months ended March 29, 2014 did not have a material impact on our condensed consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share | ' | ||||||||
The net earnings, weighted-average number of common shares outstanding used to compute earnings per share were as follows: | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net earnings | $ | 4,629 | $ | 3,707 | |||||
Weighted-average number of common shares outstanding | |||||||||
Basic weighted-average common shares outstanding | 10,844 | 10,600 | |||||||
Dilutive potential common shares | 263 | 70 | |||||||
Diluted weighted-average common shares outstanding | 11,107 | 10,670 | |||||||
Earnings per share | |||||||||
Basic | $ | 0.43 | $ | 0.35 | |||||
Diluted | $ | 0.42 | $ | 0.35 | |||||
Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings | ' | ||||||||
Potentially dilutive stock options and stock units to purchase common stock, as shown below, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. However, these shares may be potentially dilutive common shares in the future. | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Stock options and stock units | 254 | 1,048 | |||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials and supplies | $ | 77,705 | $ | 75,985 | |||||
Work in process | 68,531 | 62,115 | |||||||
Finished goods | 9,786 | 11,580 | |||||||
156,022 | 149,680 | ||||||||
Less progress payments | 7,127 | 9,173 | |||||||
Total | $ | 148,895 | $ | 140,507 | |||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||
Mar. 29, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Goodwill | ' | ||||||||||||
The carrying amounts of goodwill, by operating segment, were as follows: | |||||||||||||
(In thousands) | |||||||||||||
Ducommun | Ducommun | Consolidated | |||||||||||
AeroStructures | LaBarge | Ducommun | |||||||||||
Technologies | |||||||||||||
Gross goodwill | $ | 57,243 | $ | 184,970 | $ | 242,213 | |||||||
Accumulated goodwill impairment | — | (80,273 | ) | (80,273 | ) | ||||||||
Balance at December 31, 2013 | $ | 57,243 | $ | 104,697 | $ | 161,940 | |||||||
Balance at March 29, 2014 | $ | 57,243 | $ | 104,697 | $ | 161,940 | |||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Summary of Accrued Liabilities | ' | ||||||||
The components of accrued liabilities were as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Accrued compensation | $ | 19,537 | $ | 19,929 | |||||
Accrued income tax and sales tax | 2,958 | 1,451 | |||||||
Customer deposits | 2,704 | 3,236 | |||||||
Interest payable | 4,095 | 8,965 | |||||||
Provision for forward loss reserves | 4,249 | 4,825 | |||||||
Other | 6,085 | 7,047 | |||||||
Total | $ | 39,628 | $ | 45,453 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long Term Debt Summary | ' | ||||||||
Long-term debt and the current period interest rates were as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Senior unsecured notes (fixed 9.75%) | $ | 200,000 | $ | 200,000 | |||||
Senior secured term loan (floating 4.75%) | 125,125 | 132,625 | |||||||
Other debt (fixed 5.41%) | 71 | 77 | |||||||
Total Debt | 325,196 | 332,702 | |||||||
Less current portion | 25 | 25 | |||||||
Total long-term debt | $ | 325,171 | $ | 332,677 | |||||
Weighted-average interest rate | 7.83 | % | 7.76 | % |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Components of Net Periodic Pension Cost | ' | ||||||||
The components of net periodic pension expense were as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Service cost | $ | 173 | $ | 211 | |||||
Interest cost | 319 | 290 | |||||||
Expected return on plan assets | (350 | ) | (306 | ) | |||||
Amortization of actuarial losses | 105 | 274 | |||||||
Net periodic pension cost | $ | 247 | $ | 469 | |||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||
The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for the three months ended March 29, 2014 were as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | |||||||||
2014 | |||||||||
Amortization of actuarial loss - total before tax (1) | $ | (105 | ) | ||||||
Tax benefit | 36 | ||||||||
Net of tax | $ | (69 | ) | ||||||
-1 | The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss. |
Business_Segment_Information_T
Business Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 29, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Financial Information by Reportable Segment | ' | ||||||||
Financial information by reportable operating segment was as follows: | |||||||||
(In thousands) | |||||||||
Three Months Ended | |||||||||
March 29, | March 30, | ||||||||
2014 | 2013 | ||||||||
Net Sales | |||||||||
DAS | $ | 81,654 | $ | 72,705 | |||||
DLT | 98,099 | 103,210 | |||||||
Total Net Sales | $ | 179,753 | $ | 175,915 | |||||
Segment Operating Income | |||||||||
DAS | $ | 10,247 | $ | 6,631 | |||||
DLT | 7,044 | 7,934 | |||||||
17,291 | 14,565 | ||||||||
Corporate General and Administrative Expenses (1) | (3,308 | ) | (4,263 | ) | |||||
Operating Income | $ | 13,983 | $ | 10,302 | |||||
Depreciation and Amortization Expenses | |||||||||
DAS | $ | 2,416 | $ | 2,327 | |||||
DLT | 5,008 | 4,663 | |||||||
Corporate Administration | 2 | 43 | |||||||
Total Depreciation and Amortization Expenses | $ | 7,426 | $ | 7,033 | |||||
Capital Expenditures | |||||||||
DAS | $ | 1,285 | $ | 1,319 | |||||
DLT | 897 | 1,052 | |||||||
Corporate Administration | 10 | 241 | |||||||
Total Capital Expenditures | $ | 2,192 | $ | 2,612 | |||||
-1 | Includes costs not allocated to either the DLT or DAS operating segments. | ||||||||
Segment Assets | ' | ||||||||
Corporate assets include assets not specifically identified with a business segment, including cash. Our segment assets are as follows: | |||||||||
(In thousands) | |||||||||
March 29, | December 31, | ||||||||
2014 | 2013 | ||||||||
Total Assets | |||||||||
DAS | $ | 250,281 | $ | 241,502 | |||||
DLT | 444,207 | 444,224 | |||||||
Corporate Administration | 58,674 | 78,473 | |||||||
Total Assets | $ | 753,162 | $ | 764,199 | |||||
Goodwill and Intangibles | |||||||||
DAS | $ | 64,785 | $ | 65,213 | |||||
DLT | 260,030 | 262,192 | |||||||
Total Goodwill and Intangibles | $ | 324,815 | $ | 327,405 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 29, 2014 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 31, 2012 | Jul. 02, 2011 | Jul. 09, 2010 |
Segment | Inventory Valuation [Member] | Inventory Valuation [Member] | Inventory Valuation [Member] | Inventory Valuation [Member] | Inventory Valuation [Member] | Inventory Valuation [Member] | |
Ducommun LaBarge Technologies | Ducommun LaBarge Technologies | Ducommun LaBarge Technologies | Ducommun LaBarge Technologies | Ducommun LaBarge Technologies | Ducommun LaBarge Technologies | ||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 2 | ' | ' | ' | ' | ' | ' |
Cash equivalent maturity period | 'three months or less | ' | ' | ' | ' | ' | ' |
Quantifying misstatement in current year financial statements, amount | ' | $1.10 | $0.10 | $0.10 | $0.10 | $0.50 | $0.30 |
Increase (decrease) in deferred tax assets | ($0.50) | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Accounting Policies [Abstract] | ' | ' |
Net earnings | $4,629 | $3,707 |
Weighted-average number of common shares outstanding | ' | ' |
Basic weighted-average common shares outstanding | 10,844 | 10,600 |
Dilutive potential common shares | 263 | 70 |
Diluted weighted-average common shares outstanding | 11,107 | 10,670 |
Earnings Per Share | ' | ' |
Basic (in dollars per share) | $0.43 | $0.35 |
Diluted (in dollars per share) | $0.42 | $0.35 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings (Detail) (Stock Options and Restricted Stock Units) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Stock Options and Restricted Stock Units | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Stock options and stock units | 254 | 1,048 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and supplies | $77,705 | $75,985 |
Work in process | 68,531 | 62,115 |
Finished goods | 9,786 | 11,580 |
Inventory, Gross, Total | 156,022 | 149,680 |
Less progress payments | 7,127 | 9,173 |
Total | $148,895 | $140,507 |
Goodwill_Carrying_Amount_of_Go
Goodwill - Carrying Amount of Goodwill (Detail) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Gross goodwill | ' | $242,213 |
Accumulated goodwill impairment | ' | -80,273 |
Goodwill | 161,940 | 161,940 |
Ducommun AeroStructures | ' | ' |
Goodwill [Line Items] | ' | ' |
Gross goodwill | ' | 57,243 |
Accumulated goodwill impairment | ' | 0 |
Goodwill | 57,243 | 57,243 |
Ducommun LaBarge Technologies | ' | ' |
Goodwill [Line Items] | ' | ' |
Gross goodwill | ' | 184,970 |
Accumulated goodwill impairment | ' | -80,273 |
Goodwill | $104,697 | $104,697 |
Accrued_Liabilities_Summary_of
Accrued Liabilities - Summary of Accrued Liabilities (Detail) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued compensation | $19,537 | $19,929 |
Accrued income tax and sales tax | 2,958 | 1,451 |
Customer deposits | 2,704 | 3,236 |
Interest payable | 4,095 | 8,965 |
Provision for forward loss reserves | 4,249 | 4,825 |
Other | 6,085 | 7,047 |
Total | $39,628 | $45,453 |
Long_Term_Debt_Summary_Detail
Long Term Debt - Summary (Detail) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long Term Debt [Line Items] | ' | ' |
Total Debt | $325,196 | $332,702 |
Less current portion | 25 | 25 |
Total long-term debt | 325,171 | 332,677 |
Weighted-average interest rate | 7.83% | 7.76% |
Senior Unsecured Notes | ' | ' |
Long Term Debt [Line Items] | ' | ' |
Long-Term Debt | 200,000 | 200,000 |
Senior Secured Term Loan | ' | ' |
Long Term Debt [Line Items] | ' | ' |
Long-Term Debt | 125,125 | 132,625 |
Promissory Note and Other Debt | ' | ' |
Long Term Debt [Line Items] | ' | ' |
Long-Term Debt | $71 | $77 |
Long_Term_Debt_Summary_Parenth
Long Term Debt - Summary (Parenthetical) (Detail) | Mar. 29, 2014 |
Senior Unsecured Notes | ' |
Long Term Debt [Line Items] | ' |
Fixed rate, note | 9.75% |
Senior Secured Term Loan | ' |
Long Term Debt [Line Items] | ' |
Floating rate, note | 4.75% |
Promissory Note | ' |
Long Term Debt [Line Items] | ' |
Fixed rate, note | 5.00% |
Other Debt | ' |
Long Term Debt [Line Items] | ' |
Fixed rate, note | 5.41% |
LongTerm_Debt_Additional_infor
Long-Term Debt - Additional information (Detail) (USD $) | Mar. 29, 2014 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Remaining borrowing capacity | $58.40 |
Outstanding standby letters of credit | 1.6 |
Covenant trigger, letter of credit amount drawn maximum | 1 |
Covenant trigger, letter of credit, aggregate amount outstanding, maximum | 5 |
Fair value debt | 223 |
Voluntary Principal Pre-Payments | ' |
Debt Instrument [Line Items] | ' |
Principal pre-payment amount | $7.50 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) | Mar. 29, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Pension Cost for Defined Benefit Pension Plan and Retirement Plan (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Service cost | $173 | $211 |
Interest cost | 319 | 290 |
Expected return on plan assets | -350 | -306 |
Amortization of actuarial losses | 105 | 274 |
Net periodic pension cost | $247 | $469 |
Employee_Benefit_Plans_Reclass
Employee Benefit Plans - Reclassifications from Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ' | |
Amortization of actuarial loss and prior service costs-total before tax | ($105) | [1] |
Tax benefit | 36 | |
Net of tax | ($69) | |
[1] | The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 29, 2014 | Mar. 30, 2013 | |
Income Taxes [Line Items] | ' | ' |
Income tax expense (benefit) | $2,229,000 | ($1,228,000) |
Effective income tax rate | 32.50% | 49.50% |
Unrecognized tax benefits | 2,600,000 | ' |
Unrecognized tax benefits, reductions | 200,000 | ' |
Federal Research and Development | ' | ' |
Income Taxes [Line Items] | ' | ' |
Income tax expense (benefit) | ' | -2,000,000 |
Research Tax Credit Carryforward [Member] | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax credit benefit | ' | $2,500,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 29, 2014 | |
AirCraft | |
Loss Contingencies [Line Items] | ' |
Number of Boeing aircraft subject to lawsuit | 21 |
Scenario 1 | ' |
Loss Contingencies [Line Items] | ' |
Estimate of possible loss | 1,600,000,000 |
Scenario 2 | ' |
Loss Contingencies [Line Items] | ' |
Estimate of possible loss | 851,000,000 |
For each false claim made on or before September 28, 1999 | ' |
Loss Contingencies [Line Items] | ' |
Civil penalty | 10,000 |
For each false claim made on or after September 28, 1999 | ' |
Loss Contingencies [Line Items] | ' |
Civil penalty | 11,000 |
Ducommun AeroStructures | El Mirage and Monrovia, California | ' |
Loss Contingencies [Line Items] | ' |
Reserve for estimated liability | 1,500,000 |
Ducommun AeroStructures | Casmalia and West Covina, California | ' |
Loss Contingencies [Line Items] | ' |
Reserve for estimated liability | 400,000 |
Possible Loss, minimum | 400,000 |
Possible Loss, maximum | 3,100,000 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 29, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 2 |
Business_Segment_Information_F
Business Segment Information - Financial Information by Reportable Segment (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Mar. 30, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | $179,753 | $175,915 | ||
Segment Operating Income | 17,291 | 14,565 | ||
Corporate General and Administrative Expenses | -3,308 | [1] | -4,263 | [1] |
Operating Income | 13,983 | 10,302 | ||
Depreciation and Amortization Expenses | 7,426 | 7,033 | ||
Capital Expenditures | 2,192 | 2,612 | ||
Ducommun AeroStructures | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 81,654 | 72,705 | ||
Segment Operating Income | 10,247 | 6,631 | ||
Depreciation and Amortization Expenses | 2,416 | 2,327 | ||
Capital Expenditures | 1,285 | 1,319 | ||
Ducommun LaBarge Technologies | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net Sales | 98,099 | 103,210 | ||
Segment Operating Income | 7,044 | 7,934 | ||
Depreciation and Amortization Expenses | 5,008 | 4,663 | ||
Capital Expenditures | 897 | 1,052 | ||
Corporate Administration | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Depreciation and Amortization Expenses | 2 | 43 | ||
Capital Expenditures | $10 | $241 | ||
[1] | Includes costs not allocated to either the DLT or DAS operating segments. |
Business_Segment_Information_S
Business Segment Information - Segment Assets (Detail) (USD $) | Mar. 29, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $753,162 | $764,199 |
Goodwill and Intangibles | 324,815 | 327,405 |
Ducommun AeroStructures | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 250,281 | 241,502 |
Goodwill and Intangibles | 64,785 | 65,213 |
Ducommun LaBarge Technologies | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | 444,207 | 444,224 |
Goodwill and Intangibles | 260,030 | 262,192 |
Corporate Administration | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total Assets | $58,674 | $78,473 |