Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 03, 2016 | Jul. 04, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DCO | ||
Entity Registrant Name | DUCOMMUN INC /DE/ | ||
Entity Central Index Key | 30,305 | ||
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 | 11,097,587 | ||
Entity Public Float | $ 272 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 5,454 | $ 45,627 |
Accounts receivable (less allowance for doubtful accounts of $359 and $252 at December 31, 2015 and December 31, 2014, respectively) | 77,089 | 91,060 |
Inventories | 115,404 | 142,842 |
Production cost of contracts | 10,290 | 11,727 |
Deferred income taxes | 0 | 13,783 |
Other current assets | 14,358 | 23,702 |
Assets held for sale | 41,636 | 0 |
Total Current Assets | 264,231 | 328,741 |
Property and Equipment, net of accumulated depreciation of $128,533 and $128,457 at December 31, 2015 and December 31, 2014, respectively | 96,551 | 99,068 |
Goodwill | 82,554 | 157,569 |
Intangibles, Net | 110,621 | 155,104 |
Other Assets | 7,463 | 7,117 |
Total Assets | 561,420 | 747,599 |
Current Liabilities | ||
Current portion of long-term debt | 26 | 26 |
Accounts payable | 40,343 | 58,979 |
Accrued liabilities | 36,458 | 52,066 |
Liabilities held for sale | 6,780 | 0 |
Total Current Liabilities | 83,607 | 111,071 |
Long-Term Debt, Less Current Portion | 245,000 | 290,026 |
Deferred Income Taxes | 26,528 | 69,448 |
Other Long-Term Liabilities | 18,954 | 20,484 |
Total Liabilities | $ 374,089 | $ 491,029 |
Commitments and Contingencies (Notes 13, 16) | ||
Shareholders’ Equity | ||
Common stock - $0.01 par value; 35,000,000 shares authorized; 11,084,318 and 10,952,268 shares issued at December 31, 2015 and December 31, 2014, respectively | $ 111 | $ 110 |
Additional paid-in capital | 75,200 | 72,206 |
Retained earnings | 117,623 | 190,905 |
Accumulated other comprehensive loss | (5,603) | (6,651) |
Total Shareholders’ Equity | 187,331 | 256,570 |
Total Liabilities and Shareholders’ Equity | $ 561,420 | $ 747,599 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 359 | $ 252 |
Property and Equipment, Accumulated depreciation | $ 128,533 | $ 128,457 |
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 | 11,084,318 | 10,952,268 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net Revenues | $ 666,011 | $ 742,045 | $ 736,650 |
Cost of Sales | 565,219 | 601,713 | 612,498 |
Gross Profit | 100,792 | 140,332 | 124,152 |
Selling, General and Administrative Expenses | 85,921 | 88,565 | 84,849 |
Goodwill Impairment | 57,243 | 0 | 0 |
Intangible Asset Impairment | 32,937 | 0 | 0 |
Operating (Loss) Income | (75,309) | 51,767 | 39,303 |
Interest Expense | (18,709) | (28,077) | (29,918) |
Loss on Extinguishment of Debt | (14,720) | 0 | 0 |
Other Income, Net | 2,148 | 2,550 | 0 |
(Loss) Income Before Taxes | (106,590) | 26,240 | 9,385 |
Income Tax (Benefit) Expense | (33,308) | 6,373 | (1,993) |
Net (Loss) Income | $ (73,282) | $ 19,867 | $ 11,378 |
(Loss) Earnings Per Share | |||
Basic earnings per share (in dollars per share) | $ (6.63) | $ 1.82 | $ 1.06 |
Diluted earnings per share (in dollars per share) | $ (6.63) | $ 1.79 | $ 1.05 |
Weighted-Average Number of Shares Outstanding | |||
Basic (in shares) | 11,047 | 10,897 | 10,695 |
Diluted (in shares) | 11,047 | 11,126 | 10,852 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net (Loss) Income | $ (73,282) | $ 19,867 | $ 11,378 |
Pension Adjustments: | |||
Amortization of actuarial (loss) gain included in net income, net of tax (expense) benefit of $(330), $156 and $408 for 2015, 2014 and 2013, respectively | (557) | 263 | 685 |
Actuarial gain (loss) arising during the period, net of tax expense (benefit) of $966, $(1,810), and $1,737 for 2015, 2014 and 2013, respectively | 1,605 | (3,052) | 2,921 |
Other Comprehensive Income (Loss) | 1,048 | (2,789) | 3,606 |
Comprehensive (Loss) Income | $ (72,234) | $ 17,078 | $ 14,984 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Amortization of actuarial (loss) gain, tax | $ (330) | $ 156 | $ 408 |
Actuarial gain (loss) arising during the period, tax expense (benefit) | $ 966 | $ (1,810) | $ 1,737 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2012 | 10,594,765 | |||||
Beginning Balance at Dec. 31, 2012 | $ 215,217 | $ 107 | $ (1,924) | $ 64,842 | $ 159,660 | $ (7,468) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (Loss) Income | 11,378 | 11,378 | ||||
Other comprehensive income (loss), net of tax | 3,606 | 3,606 | ||||
Stock options exercised (in shares) | 487,163 | |||||
Stock options exercised | 8,775 | $ 5 | 8,770 | |||
Stock repurchased related to the exercise of stock options (in shares) | (265,174) | |||||
Stock repurchased related to the exercise of stock options | (6,807) | $ (2) | (6,805) | |||
Stock-based compensation | 2,438 | 2,438 | ||||
Excess tax benefits from share-based compensation | (336) | (336) | ||||
Ending Balance (in shares) at Dec. 31, 2013 | 10,816,754 | |||||
Ending Balance at Dec. 31, 2013 | 234,271 | $ 110 | (1,924) | 68,909 | 171,038 | (3,862) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (Loss) Income | 19,867 | 19,867 | ||||
Other comprehensive income (loss), net of tax | (2,789) | (2,789) | ||||
Stock options exercised (in shares) | 117,149 | |||||
Stock options exercised | 2,276 | $ 1 | 2,275 | |||
Stock repurchased related to the exercise of stock options (in shares) | (34,597) | |||||
Stock repurchased related to the exercise of stock options | (920) | $ (1) | (919) | |||
Stock awards vested (in shares) | 52,962 | |||||
Stock awards vested | 0 | $ 1 | (1) | |||
Stock-based compensation | 3,725 | 3,725 | ||||
Excess tax benefits from share-based compensation | 140 | 140 | ||||
Retirement of treasury stock | 0 | $ (1) | 1,924 | (1,923) | ||
Ending Balance (in shares) at Dec. 31, 2014 | 10,952,268 | |||||
Ending Balance at Dec. 31, 2014 | 256,570 | $ 110 | 0 | 72,206 | 190,905 | (6,651) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (Loss) Income | (73,282) | (73,282) | ||||
Other comprehensive income (loss), net of tax | $ 1,048 | 1,048 | ||||
Stock options exercised (in shares) | 167,523 | 167,523 | ||||
Stock options exercised | $ 3,084 | $ 1 | 3,083 | |||
Stock repurchased related to the exercise of stock options (in shares) | (137,194) | |||||
Stock repurchased related to the exercise of stock options | $ (4,210) | $ (1) | (4,209) | |||
Stock awards vested (in shares) | 144,877 | 101,721 | ||||
Stock awards vested | $ 0 | $ 1 | (1) | |||
Stock-based compensation | 3,495 | 3,495 | ||||
Excess tax benefits from share-based compensation | 626 | 626 | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 11,084,318 | |||||
Ending Balance at Dec. 31, 2015 | $ 187,331 | $ 111 | $ 0 | $ 75,200 | $ 117,623 | $ (5,603) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net (Loss) Income | $ (73,282) | $ 19,867 | $ 11,378 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities | |||
Depreciation and amortization | 26,846 | 29,024 | 30,926 |
Goodwill impairment | 57,243 | 0 | 0 |
Intangible asset impairment | 32,937 | 0 | 0 |
Asset impairments | 0 | 0 | 6,975 |
Stock-based compensation expense | 3,495 | 3,725 | 2,438 |
Deferred income taxes | (30,707) | 345 | (1,551) |
Excess tax benefits from stock-based compensation | (626) | (140) | 0 |
Provision for (recovery of) doubtful accounts | (132) | 237 | 77 |
Noncash loss on extinguishment of debt | 4,970 | 0 | 0 |
Other | 5,628 | (5,713) | 5,337 |
Changes in Assets and Liabilities: | |||
Accounts receivable | 4,444 | 1,086 | 5,468 |
Inventories | 20,985 | (2,335) | 6,962 |
Production cost of contracts | 330 | (3,513) | (5,101) |
Other assets | 5,884 | 4,800 | (12,173) |
Accounts payable | (13,978) | 410 | 4,533 |
Accrued and other liabilities | (20,623) | 6,103 | (9,153) |
Net Cash Provided by Operating Activities | 23,678 | 53,422 | 45,962 |
Cash Flows from Investing Activities | |||
Purchases of property and equipment | (15,891) | (18,096) | (12,403) |
Proceeds from sale of assets | 904 | 91 | 139 |
Insurance recoveries related to property and equipment | 1,510 | 2,550 | 0 |
Net Cash Used in Investing Activities | (13,477) | (15,455) | (12,264) |
Cash Flows from Financing Activities | |||
Borrowings from senior secured revolving credit facility | 65,000 | 0 | 0 |
Repayment of senior secured revolving credit facility | (65,000) | (42,650) | (33,024) |
Borrowings from term loan | 275,000 | 0 | 0 |
Repayments of senior unsecured notes and term loans | (320,000) | 0 | 0 |
Repayments of other debt | (26) | 0 | 0 |
Debt issuance costs | (4,848) | 0 | (365) |
Excess tax benefits from stock-based compensation | 626 | 140 | 0 |
Net proceeds from issuance of common stock under stock plans | (1,126) | 1,356 | 1,968 |
Net Cash Used in Financing Activities | (50,374) | (41,154) | (31,421) |
Net (Decrease) Increase in Cash and Cash Equivalents | (40,173) | (3,187) | 2,277 |
Cash and Cash Equivalents at Beginning of Year | 45,627 | 48,814 | 46,537 |
Cash and Cash Equivalents at End of Year | 5,454 | 45,627 | 48,814 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 26,501 | 25,105 | 27,614 |
Taxes paid | 1,150 | 3,476 | 7,835 |
Non-cash activities: | |||
Purchases of property and equipment not yet paid | $ 1,549 | $ 1,458 | $ 1,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 primary businesses: Electronic Systems segment and Structural Systems segment, each of which is a reportable operating segment. In the fourth quarter of 2015, we renamed our operating segments to Electronic Systems (“ES”) and Structural Systems (“SS”). ES was formerly known as Ducommun LaBarge Technologies (“DLT”) and SS was formerly known as Ducommun AeroStructures (“DAS”). There were no regrouping of revenues or expenses as a result of the operating segments name change. ES designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace, defense, natural resources, industrial and medical and other end-use markets. ES’s product offerings range from prototype development to complex assemblies. SS designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. SS’s products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. All reportable operating segments follow the same accounting principles. Basis of Presentation The 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. 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. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our consolidated financial position, results of operations, comprehensive income (loss) and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates Certain amounts and disclosures included in the consolidated financial statements required management to make estimates and judgments that affect the amount of assets, liabilities (including forward loss reserves), 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 could differ from these estimates. Reclassifications Certain prior period amounts have been reclassified to conform to current year’s presentation. Fair Value We measure certain assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in a orderly transaction between market participants. See Note 3 for further information. Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less . Our cash accounts are not reduced for checks written until the checks are presented for payment and paid by our bank. These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value above. Derivative Instruments We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2015, all of our derivative instruments were designated as cash flow hedges. We did not enter into any derivative contracts in 2014. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in other comprehensive income (loss), net of tax until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within interest expense. We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions. Inventories 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. In the fourth quarter of 2013, we recorded a charge of approximately $1.9 million in SS for the Embraer Legacy 450/500 aircraft contracts. The charge resulted from difficulties in achieving previously anticipated cost reductions, and estimated cost overruns driven by customer changes for both the development and production phases of the contracts. We net advances from customers related to inventory purchases against inventories in the consolidated balance sheets. 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 (which we perform during the fourth quarter) 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. In the fourth quarter of 2013, we recorded an impairment charge in SS on production costs of contracts of $7.0 million , consisting of $5.7 million for the Embraer Legacy 450/500 aircraft contracts, and $1.3 million for the Boeing 777 wing tip contract. The impairment charge reflects a determination that the production cost of contracts for the Boeing 777 wing tip contract and the Embraer Legacy 450/500 contracts are not recoverable since these contracts are estimated to be unprofitable during their remaining terms. The impairment charge represents the entire remaining balance of production cost of contracts for these contracts. The $7.0 million charge was recorded as part of cost of goods sold in our results of operations and a reduction in production cost of contracts on our balance sheet. As of December 31, 2015 and 2014 , production costs of contracts were approximately $10.3 million and $11.7 million , respectively. Assets Held For Sale In the fourth quarter of 2015, we made the decision to sell our Huntsville, Alabama and Iuka, Mississippi (collectively, “Miltec”) operations and our Pittsburgh, Pennsylvania operation, both of which are part of our ES operating segment, and as a result, we met the criteria for assets held for sale. However, the proposed sale of these two operations does not represent a strategic shift in our business and thus, were included in the ongoing operating results in the consolidated statements of operations for all periods presented. Subsequent to our year ended December 31, 2015, we entered into an agreement to sell our operation located in Pittsburgh, Pennsylvania for a preliminary sales price of approximately $38.5 million in cash, subject to finalization of the working capital amount. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We completed the sale on January 22, 2016. Also subsequent to our year ended December 31, 2015 , we entered into an agreement to sell our Miltec operation for a preliminary sales price of approximately $14.6 million in cash, subject to post-closing adjustments. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We expect to complete the sale by the end of the second fiscal quarter of 2016. The carrying values of the major classes of assets and liabilities related to these assets held for sale were as follows: (In thousands) December 31, 2015 Assets Accounts receivable (less allowance for doubtful accounts of $24) $ 9,395 Inventory 6,453 Deferred income taxes 1,246 Other current assets 3,315 Total current assets 20,409 Property and equipment, net of accumulated depreciation of $8,509 1,941 Goodwill 17,772 Other Intangible Assets 1,514 $ 41,636 Liabilities Accounts payable $ 4,836 Accrued liabilities 1,944 $ 6,780 Property and Equipment and Depreciation Property and equipment, including assets recorded under capital leases, are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, or the lease term if shorter for leasehold improvements. Repairs and maintenance are charged to expense as incurred. We evaluate long-lived assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses if any, based upon the fair value of the assets. Goodwill and Indefinite-Lived Intangible Asset Goodwill is tested for impairment utilizing a two-step method. In the first step, we determine the fair value of the reporting unit using expected future discounted cash flows and market valuation approaches considering comparable Company revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) multiples. If the carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of the impairment loss, if any. The second step requires fair valuation of all the reporting unit’s assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill. This residual fair value of goodwill is then compared to the carrying value of goodwill to determine impairment. An impairment charge will be recognized equal to the excess of the carrying value of goodwill over the implied fair value of goodwill. As a result of our fourth quarter of 2015 annual goodwill impairment test, we recorded an approximate $57.2 million of goodwill impairment to the SS goodwill carrying value to decrease its goodwill carrying value to zero as of December 31, 2015. See Note 7 for further information. We review our indefinite-lived intangible asset for impairment on an annual basis or when events or changes in circumstances indicate that the carrying value of our intangible asset may not be recoverable. We may first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. Impairment indicators include, but are not limited to, cost factors, financial performance, adverse legal or regulatory developments, industry and market conditions and general economic conditions. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of such excess. In performing our annual impairment test in the fourth quarter of 2015, we concluded the fair value of the indefinite-lived trade name to be zero as a result of divesting businesses in ES and our discontinuation of the use of the trade name. Thus, we recorded an impairment of approximate $32.9 million , which was the remaining carrying value of the trade name. See Note 7 for further information. Other Intangible Assets We amortize purchased other intangible assets with finite lives over the estimated economic lives of the assets, ranging from three to eighteen years generally using the straight-line method. The value of other intangibles acquired through business combinations has been estimated using present value techniques which involve estimates of future cash flows. We evaluate other intangible assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses, if any, based upon the estimated fair value of the assets. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was composed of cumulative pension and retirement liability adjustments, net of tax. Revenue Recognition Except as described below, we recognize revenue, including revenue from products sold under long-term contracts, when persuasive evidence of an arrangement exists, the price is fixed or determinable, collection is reasonably assured and delivery of products has occurred or services have been rendered. We have a significant number of contracts for which we recognize revenue under the contract method of accounting and record revenues and cost of sales on each contract in accordance with the percentage-of-completion method of accounting, using the units-of-delivery method. Under the units-of-delivery method, revenue is recognized based upon the number of units delivered during a period and the costs are recognized based on the actual costs allocable to the delivered units. Costs allocable to undelivered units are reported on the balance sheet as inventory. This method is used in circumstances in which a company produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. These contracts are primarily fixed-price contracts that vary widely in terms of size, length of performance period, and expected gross profit margins. We also recognize revenue on the sale of services (including prototype products) based on the type of contract: time and materials, cost-plus reimbursement and firm-fixed price. Revenue is recognized (i) on time and materials contracts as time is spent at hourly rates, which are negotiated with customers, plus the cost of any allowable materials and out-of-pocket expenses, (ii) on cost-plus reimbursement contracts based on direct and indirect costs incurred plus a negotiated profit calculated as a percentage of cost, a fixed amount or a performance-based award fee, and (iii) on fixed-price contracts on the percentage-of-completion method measured by the percentage of costs incurred to estimated total costs. Provision for Estimated Losses on Contracts We record provisions for the total anticipated losses on contracts considering total estimated costs to complete the contract compared to total anticipated revenues in the period in which such losses are identified. 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 maybe required to record additional provisions for estimated losses on contracts. In the third quarter of 2015, we recorded a charge in SS related to estimated cost overruns as a result of a change in the contract requirements for the remaining contractual period for a regional jet program of approximately $10.0 million . This amount was recorded as part of cost of goods sold in our results of operations and increased accrued liabilities by approximately $7.6 million and other long-term liabilities by approximately $2.4 million . In the fourth quarter of 2013, we recorded a charge in SS for the estimated cost to complete of $5.2 million , consisting of $3.9 million for the Embraer Legacy 450/500 aircraft contracts, and $1.3 million for the Boeing 777 wing tip contract. The charges result from difficulties in achieving previously anticipated cost reductions, including delays in transferring work to our lower-cost Guaymas, Mexico facility. The charge for the Embraer Legacy 450/500 contracts also reflects estimated cost overruns for customer driven changes on both the development and production phases of the contracts, for which we have asserted claims with Embraer. Recognition of additional losses in future periods continues to be a risk and will depend upon numerous factors, including our sales forecast, our ability to achieve forecasted cost reductions and our ability to resolve claims and assertions with our customers. The $5.2 million charge was recorded as part of cost of goods sold in the Company’s results of operations. The charge increased accrued liabilities by $4.2 million and other long-term liabilities by $1.0 million on our balance sheet. Income Taxes Deferred tax assets and liabilities are recognized, using enacted tax rates, for the expected future tax consequences of temporary differences between the book and tax bases of recorded assets and liabilities, operating losses and tax credit carryforwards. Deferred tax assets are evaluated quarterly and are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We elected to early adopt ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” and on a prospective basis for the year ended December 31, 2015. See “Recent Accounting Pronouncements - New Accounting Guidance Adopted in 2015” in Note 1 and Note 15 for further information. Litigation and Commitments In the normal course of business, we are defendants in certain litigation, claims and inquiries, including matters relating to environmental laws. In addition, we make various commitments and incur contingent liabilities. Management’s estimates regarding contingent liabilities could differ from actual results. Environmental Liabilities Environmental liabilities are recorded when environmental assessments and/or remedial efforts are probable and costs can be reasonably estimated. Generally, the timing of these accruals coincides with the completion of a feasibility study or our commitment to a formal plan of action. Further, we review and update our environmental accruals as circumstances change and/or additional information is obtained that reasonably could be expected to have a meaningful effect on the outcome of a matter or the estimated cost thereof. Accounting for Stock-Based Compensation We measure and recognize compensation expense for share-based payment transactions to our employees and non-employees at their estimated fair value. The expense is measured at the grant date, based on the calculated fair value of the share-based award, and is recognized over the requisite service period (generally the vesting period of the equity award). The fair value stock options are determined using the Black-Scholes-Merton (“Black-Scholes”) valuation model, which requires assumptions and judgments regarding stock price volatility, risk-free interest rates, and expected options terms. The fair value of unvested stock awards is determined based on the closing price of the underlying common stock on the date of grant. Management’s estimates could differ from actual results. (Loss) 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 (loss) earnings and weighted-average number of common shares outstanding used to compute (loss) earnings per share were as follows: (In thousands, except per share data) Years Ended December 31, 2015 2014 2013 Net (loss) income $ (73,282 ) $ 19,867 $ 11,378 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,047 10,897 10,695 Dilutive potential common shares — 229 157 Diluted weighted-average common shares outstanding 11,047 11,126 10,852 (Loss) earnings per share Basic $ (6.63 ) $ 1.82 $ 1.06 Diluted $ (6.63 ) $ 1.79 $ 1.05 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) Years Ended December 31, 2015 2014 2013 Stock options and stock units 778 218 410 Recent Accounting Pronouncements New Accounting Guidance Adopted in 2015 In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”), which requires deferred tax assets and liabilities be classified as noncurrent on the balance sheet. This new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We have elected to early adopt ASU 2015-17 and on a prospective basis for the year ended December 31, 2015. The adoption of this new guidance had no impact on our results of operations or cash flows for 2015. See Note 15 for further information. In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”), which changed the criteria for reporting discontinued operations . The revised guidance defines a discontinued operation as a disposal of a component or a group of a components of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. It also requires additional disclosures for discontinued operations and new disclosures for individually material disposals that do not meet the definition of a discontinued operation This new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We have adopted ASU 2014-08 for the year ended December 31, 2015. Recently Issued Accounting Standards In August 2015, the FASB issued ASU 2015-15, “Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which provides guidance on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. In ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” it requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability but does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Thus, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We had approximately $4.3 million of debt issuance costs and approximately $245.0 million of total debt as of December 31, 2015, and thus, we do not believe that adoption of this new guidance will have a significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330)” (“ASU 2015-11”), which requires inventory within the scope of ASU 2015-11 to be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory value. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. The amendments in this new guidance that require transition guidance are effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. All other amendments are effective upon issuance of ASU 2015-10. Early adoption is permitted. We do not anticipate this standard will have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of those costs is reported as interest expense. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We had approximately $4.3 million of debt issuance costs and approximately $245.0 million of total debt as of December 31, 2015, and thus, we do not believe that adoption of this new guidance will have a significant impact on our consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)” (“ASU 2015-01”), which eliminates from U.S. GAAP the concept of extraordinary items. Current guidance requires separate classification, presentation, and disclosure of extraordinary events and transactions. In addition, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted provided it is applied from the beginning of the annual period of adoption. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provide principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. The new guidance is effective for annual periods ending after December 15, 2016, which will be our year ending December 31, 2016, and interim periods beginning after December 15, 2016, which will be our interim period beginning January 1, 2017. Early adoption is permitted. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities Summary of Restructuring Plans In September 2015, management approved and commenced implementation of several restructuring actions, including organizational re-alignments, consolidation and relocation of the New York facilities that was completed by December 2015, closure of the Houston facility that was completed by December 2015, and closure of the St. Louis facility by April 2016, all of which are part of our overall strategy to streamline operations. As of December 31, 2015, we have accrued approximately $0.7 million and $1.2 million for severance and benefits and loss on early exit from lease and charged to selling, general and administrative expenses in the ES and SS operating segments, respectively, and expect to record additional accruals totaling approximately $0.1 million for severance and benefits in the first quarter of 2016. Our restructuring activities for 2015 and 2014 were as follows (in thousands): December 31, 2014 2015 December 31, 2015 Balance Charges Cash Payments Change in Estimates Balance Severance and benefits $ — $ 987 $ (221 ) $ (44 ) $ 722 Lease termination — 1,181 — — 1,181 Ending balance $ — $ 2,168 $ (221 ) $ (44 ) $ 1,903 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for an asset or the price that would be paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard provides a framework for measuring fair value using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments consist primarily of cash and cash equivalents and interest rate cap derivatives designated as cash flow hedging instruments. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2015 As of December 31, 2014 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Level 3 Total Balance Assets Money market funds (1) $ 4,587 $ — $ — $ 4,587 $ 44,554 $ — $ — $ 44,554 Interest rate cap hedges (2) — 963 — 963 — — — — Total Assets $ 4,587 $ 963 $ — $ 5,550 $ 44,554 $ — $ — $ 44,554 (1) Included as cash and cash equivalents. (2) Interest rate cap hedge premium included as other current assets and other assets. The fair value of the interest rate cap hedge agreements is determined using pricing models that use observable market inputs as of the balance sheet date, a Level 2 measurement. There were no transfers between Level 1, Level 2, or Level 3 financial instruments in either 2015 or 2014. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Instruments and Hedging Activities We periodically enter into cash flow derivative transactions, such as interest rate cap agreements, to hedge exposure to various risks related to interest rates. We assess the effectiveness of the interest rate cap hedges at inception of the hedge. We recognize all derivatives at their fair value. For cash flow designated hedges, the effective portion of the changes in fair value of the derivative contract are recorded in accumulated other comprehensive income (loss), net of taxes, and are recognized in net earnings at the time earnings are affected by the hedged transaction. Adjustments to record changes in fair values of the derivative contracts that are attributable to the ineffective portion of the hedges, if any, are recognized in earnings. We present derivative instruments in our consolidated statements of cash flows’ operating, investing, or financing activities consistent with the cash flows of the hedged item. The gross notional and recorded fair value of derivative financial instruments in the consolidated balance sheets were as follows: (In thousands) December 31, 2015 (In thousands) December 31, 2014 Gross Notional Other Current Assets Other Long Term Assets Gross Notional Other Current Assets Other Long Term Assets Derivatives Designated as Hedging Instruments Cash Flow Hedges: Interest rate cap premiums $ 133,707 $ 1 $ 962 $ — $ — $ — Total Derivatives $ 133,707 $ 1 $ 962 $ — $ — $ — |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (In thousands) December 31, 2015 2014 Raw materials and supplies $ 61,840 $ 77,033 Work in process 49,299 61,458 Finished goods 10,073 14,116 121,212 152,607 Less progress payments 5,808 9,765 Total $ 115,404 $ 142,842 We net advances from customers related to inventory purchases against inventories in the consolidated balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: (In thousands) December 31, Range of Estimated 2015 2014 Useful Lives Land $ 15,454 $ 15,006 Buildings and improvements 44,313 45,636 5 - 40 Years Machinery and equipment 127,934 131,263 2 - 20 Years Furniture and equipment 24,187 25,975 2 - 10 Years Construction in progress 13,196 9,645 225,084 227,525 Less accumulated depreciation 128,533 128,457 Total $ 96,551 $ 99,068 Depreciation expense was $15.7 million , $15.3 million and $15.6 million , for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and Indefinite-Lived Intangible Asset The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2015 and 2014 were as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun Gross goodwill $ 57,243 $ 182,048 $ 239,291 Accumulated goodwill impairment — (81,722 ) (81,722 ) Balance at December 31, 2014 $ 57,243 $ 100,326 $ 157,569 Goodwill impairment (57,243 ) — (57,243 ) Transfer to assets held for sale — (17,772 ) (17,772 ) Balance at December 31, 2015 $ — $ 82,554 $ 82,554 We perform our annual goodwill impairment test during the fourth quarter each year. The carrying amounts of goodwill at the date of the most recent annual impairment test for the SS, ES, and Miltec internal reporting units was approximately $57.2 million , $92.0 million , and $8.4 million , respectively. In the fourth quarter of 2015, we met the criteria for assets held for sale for our Pittsburgh, Pennsylvania operation and Miltec operation (both are part of our ES operating segment). Assets held for sale, other than goodwill, is tested for impairment prior to the testing of goodwill for impairment. No impairment was noted of these assets held for sale. As of the date of the 2015 annual goodwill impairment test, the fair value of the ES and Miltec internal reporting units exceeded their carrying values by approximately 42% and 18% , respectively, and thus, not deemed impaired. However, the fair value of the SS reporting unit was less than the carrying value as a result of the lowered revenue outlook in our military and space end-use markets due to the decrease in U.S. government defense spending. As a result, the second step (“Step Two”) of the goodwill impairment test was performed for the SS reporting unit. The fair value of goodwill was determined by allocating the fair value of the tangible and intangible assets and liabilities in a manner similar to a purchase price allocation. As a result of this analysis, we recorded an approximate $57.2 million of goodwill impairment to the SS goodwill carrying value to decrease its goodwill carrying value to zero as of December 31, 2015. We perform our annual indefinite-lived intangible asset impairment test during the fourth quarter of each year. The carrying value of the trade-name indefinite-lived intangible asset at the date of the most recent impairment test was approximately $32.9 million . In performing our annual impairment test in the fourth quarter of 2015, we concluded the fair value of the indefinite-lived trade name to be zero as a result of divesting businesses in ES and our discontinuation of the use of the trade name. Thus, we recorded an impairment of approximate $32.9 million , which was the remaining carrying value of the trade name. Other Intangible Assets Other intangible assets are related to acquisitions and recorded at fair value at the time of the acquisition. Other intangible assets with finite lives are amortized on the straight-line method over periods ranging from three to eighteen years. Intangible assets are as follows: (In thousands) December 31, 2015 December 31, 2014 Wtd. Avg Life (Yrs) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived assets Customer relationships 18 $ 159,200 $ 49,463 $ 109,737 $ 164,500 $ 43,715 $ 120,785 Trade names 8 — — — 3,400 3,060 340 Contract renewal 14 1,845 1,230 615 1,845 1,099 746 Technology 15 400 131 269 400 104 296 Total $ 161,445 $ 50,824 $ 110,621 $ 170,145 $ 47,978 $ 122,167 The carrying amount of other intangible assets by operating segment as of December 31, 2015 and 2014 was as follows: (In thousands) December 31, 2015 December 31, 2014 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Structural Systems $ 19,300 $ 14,433 $ 4,867 $ 19,300 $ 13,046 $ 6,254 Electronic Systems 142,145 36,391 105,754 150,845 34,932 115,913 Total $ 161,445 $ 50,824 $ 110,621 $ 170,145 $ 47,978 $ 122,167 Amortization expense of other intangible assets was approximately $10.0 million , $10.4 million and $10.9 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Future amortization expense by operating segment is expected to be as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun 2016 $ 1,123 $ 7,926 $ 9,049 2017 907 7,927 8,834 2018 737 7,927 8,664 2019 591 7,926 8,517 2020 490 7,883 8,373 Thereafter 1,019 66,165 67,184 $ 4,867 $ 105,754 $ 110,621 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities consisted of the following: (In thousands) December 31, 2015 2014 Accrued compensation $ 13,521 $ 25,352 Accrued income tax and sales tax 1,513 1,580 Customer deposits 1,758 1,139 Interest payable 58 9,439 Provision for forward loss reserves 11,925 4,734 Other 7,683 9,822 Total $ 36,458 $ 52,066 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt and the current period interest rates were as follows: (In thousands) December 31, 2015 2014 New term loan $ 245,000 $ — Senior unsecured notes (fixed 9.75%) — 200,000 Senior secured term loan (floating 4.75%) — 90,000 Other debt (fixed 5.41%) 26 52 Total Debt 245,026 290,052 Less current portion 26 26 Total long-term debt $ 245,000 $ 290,026 Weighted-average interest rate 3.07 % 8.20 % Future long-term debt payments at December 31, 2015 were as follows: (In thousands) 2016 $ 26 2017 7,812 2018 24,063 2019 27,500 2020 185,625 Total $ 245,026 In June 2015, we completed a new credit facility to replace the Existing Credit Facilities. The new credit facility consists of a $275.0 million senior secured term loan, which matures on June 26, 2020 (“New Term Loan”), and a $200.0 million senior secured revolving credit facility (“New Revolving Credit Facility”), which matures on June 26, 2020 (collectively, the “New Credit Facilities”). The New Credit Facilities bear interest, at our option, at a rate equal to either (i) the Eurodollar Rate (defined as LIBOR) plus an applicable margin ranging from 1.50% to 2.75% per year or (ii) the Base Rate (defined as the highest of [a] Federal Funds Rate plus 0.50% , [b] Bank of America’s prime rate, and [c] the Eurodollar Rate plus 1.00% ) plus an applicable margin ranging from 0.50% to 1.75% per year, in each case based upon the consolidated total net adjusted leverage ratio. The undrawn portions of the commitments of the New Credit Facilities are subject to a commitment fee ranging from 0.175% to 0.300% , based upon the consolidated total net adjusted leverage ratio. Further, we are required to make mandatory prepayments of amounts outstanding under the New Term Loan. The mandatory prepayments will be made quarterly, equal to 5.0% per year of the original aggregate principal amount during the first two years and increase to 7.5% per year during the third year, and increase to 10.0% per year during the fourth year and fifth years, with the remaining balance payable on June 26, 2020. The loans under the New Revolving Credit Facility are due on June 26, 2020. As of December 31, 2015, we were in compliance with all covenants required under the New Credit Facilities. We have been making voluntary principal prepayments on a quarterly basis on our senior secured term loan and in conjunction with the closing of the New Credit Facilities in June 2015, we drew down approximately $65.0 million on the New Revolving Credit Facility and used those proceeds along with current cash on hand to extinguish the existing senior secured term loan of approximately $80.0 million . We expensed the unamortized debt issuance costs related to the existing senior secured term loan of approximately $2.8 million as part of extinguishing the existing senior secured term loan during 2015. We also incurred approximately $4.8 million of debt issuance costs related to the New Credit Facilities and those costs are capitalized and being amortized over the five year life of the New Credit Facilities. In addition, we retired all of the $200.0 million senior unsecured notes (“Existing Notes”) in July 2015. We drew down on the New Term Loan in the amount of $275.0 million . Along with the call notice amount and paying the call premium of approximately $9.8 million , we also paid down the $65.0 million drawn on the New Revolving Credit Facility in the previous quarter. We expensed the call premium of approximately $9.8 million and debt issuance costs related to the Existing Notes of approximately $2.1 million upon extinguishing the Existing Notes during 2015. Further, we made voluntary principal prepayments of approximately $30.0 million under the New Term Loan during 2015. As of December 31, 2015, we had approximately $198.5 million of unused borrowing capacity under the New Revolving Credit Facility, after deducting approximately $1.5 million for standby letters of credit. The Existing Notes were issued by us (“Parent Company”) and guaranteed by all of our subsidiaries, other than one subsidiary that was considered minor (“Subsidiary Guarantors”). The Subsidiary Guarantors jointly and severally guarantee the Existing Notes and New Credit Facilities. The Parent Company has no independent assets or operations and therefore, no consolidating financial information for the Parent Company and its subsidiaries are presented. In October 2015, we entered into interest rate cap hedges designated as cash flow hedges with maturity dates of June 2020, and in aggregate, totaling approximately $135.0 million of our debt. We paid a total of approximately $1.0 million in connection with the interest rate cap hedges. See Note 4 for further discussion. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity We are authorized to issue five million shares of preferred stock. At December 31, 2015 and 2014 , no preferred shares were issued or outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Compensation Plans We have two stock incentive plans. The 2007 Stock Incentive Plan (the “2007 Plan”), as amended effective March 20, 2007, and the 2013 Stock Incentive Plan (the “2013 Plan”), collectively referred to as (the “Stock Incentive Plans”), permits awards of stock options, restricted stock units, performance stock units and other stock-based awards to our officers, key employees and non-employee directors on terms determined by the Compensation Committee of the Board of Directors (the “Committee”). The aggregate number of our shares available for issuance under the 2007 Plan and 2013 Plan are 1,200,000 and 1,040,000 , respectively. Under the 2007 Plan, no more than an aggregate of 400,000 shares are available for issue of stock-based awards other than stock options and stock appreciation rights. As of December 31, 2015 , shares available for future grant under the 2007 Plan and 2013 Plan are 56,726 and 626,727 , respectively. Prior the adoption of the 2007 Plan, we granted stock-based awards to purchase shares of our common stock to officers, key employees and non-employee directors under certain predecessor plans. No further awards can be granted under these predecessor plans. Stock Options In the years ended December 31, 2015 , 2014, and 2013, we granted stock options to our officers, key employees and non-employee directors of 73,000 , 71,000 , and 190,500 , respectively, with weighted-average grant date fair values of approximately $10.63 , $12.62 , and $10.95 , respectively. Stock options have been granted with an exercise price equal to the fair market value of our stock on the date of grant and expire not more than ten years from the date of grant. The stock options vest over a period of four years after the date of grant. The option price and number of shares are subject to adjustment under certain dilutive circumstances. If an employee terminates employment, the non-vested portion of the stock options will not vest and all rights to the non-vested portion will terminate completely. Stock option activity for the year ended December 31, 2015 were as follows: Number of Stock Options Weighted- Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 611,977 $ 19.02 Granted 73,000 25.51 Exercised (167,523 ) 18.42 Expired (13,875 ) 18.58 Forfeited (20,088 ) 22.29 Outstanding at December 31, 2015 483,491 $ 20.08 4.1 $ 689 Exerciseable at December 31, 2015 251,891 $ 18.80 3.4 $ 417 Changes in nonvested stock options for the year ended December 31, 2015 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2015 323,565 $ 9.42 Granted 73,000 10.63 Vested (144,877 ) 8.78 Forfeited (20,088 ) 10.40 Nonvested at December 31, 2015 231,600 $ 10.03 The aggregate intrinsic value of stock options represents the amount by which the market price of our common stock exceeds the exercise price of the stock option. The aggregate intrinsic value of stock options exercised for the years ended December 31, 2015 , 2014 and 2013 was approximately $2.3 million , $1.0 million , and $2.6 million , respectively. Cash received from stock option exercised for the years ended December 31, 2015 , 2014 and 2013 was approximately $3.1 million , $2.3 million , and $8.8 million , respectively, with related tax benefits of $0.9 million , $0.4 million , and $1.0 million , respectively. The total stock options vested and expected to vest in the future are 483,491 shares with a weighted-average exercise price of approximately $20.08 and an aggregate intrinsic value of approximately $0.7 million . These stock options have a weighted-average remaining contractual term of approximately 4.1 years. The share-based compensation cost expensed for stock options for the years ended December 31, 2015 , 2014 , and 2013 (before tax benefits) was approximately $1.2 million , $1.5 million , and $1.2 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2015 , total unrecognized compensation cost (before tax benefits) related to stock options of approximately $1.7 million is expected to be recognized over a weighted-average period of approximately 2.2 years. The weighted-average grant date fair value of stock options granted during the years ended December 31, 2015 , 2014 , and 2013 was approximately $10.63 , $12.62 , and $10.95 . The total fair value of stock options vested during the years ended December 31, 2015 , 2014 , and 2013 was approximately $1.3 million , $1.3 million , and $1.1 million , respectively. The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2015, 2014, and 2013 were as follows: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.13 % 1.67 % 1.44 % Expected volatility 53.72 % 55.27 % 53.89 % Expected dividends — — — Expected term (in months) 47 66 66 We apply fair value accounting for stock-based compensation based on the grant date fair value estimated using a Black-Scholes-Merton (“Black-Scholes”) valuation model. We recognize compensation expense, net of an estimated forfeiture rate, on a straight-line basis over the requisite service period of the award. We have one award population with an option vesting term of four years. We estimate the forfeiture rate based on our historic experience, attempting to determine any discernible activity patterns. The expected life computation is based on historic exercise patterns and post-vesting termination behavior. The risk-free interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is derived from historical volatility of our common stock. We suspended payments of dividends after the first quarter of 2011. Restricted Stock Units We granted restricted stock units (“RSUs”) to certain officers, key employees and non-employee directors of approximately 108,500 , 86,300 , and 65,550 RSUs during the years ended December 31, 2015 , 2014 , and 2013 , respectively, with weighted-average grant date fair values (equal to the fair market value of our stock on the date of grant) of approximately $25.15 , $24.74 , and $18.75 per share, respectively. RSUs represent a right to receive a share of stock at future vesting dates with no cash payment required from the holder. The RSUs have a three year vesting term of approximately 33% , 33% and 34% on the first, second and third anniversaries of the date of grant. If an employee terminates employment, their non-vested portion of the RSUs will not vest and all rights to the non-vested portion will terminate. Restricted stock unit activity for the year ended December 31, 2015 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 122,943 $ 21.67 Granted 108,500 25.15 Vested (66,217 ) 20.81 Forfeited (10,035 ) 25.32 Outstanding at December 31, 2015 155,191 $ 24.24 The share-based compensation cost expensed for RSUs for the years ended December 31, 2015 , 2014 , and 2013 (before tax benefits) was approximately $1.8 million , $1.3 million , and $0.9 million respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2015 , total unrecognized compensation cost (before tax benefits) related to RSUs of approximately $2.3 million is expected to be recognized over a weighted average period of approximately 1.8 years. The total fair value of RSUs vested for the years ended December 31, 2015 , 2014 , and 2013 was approximately $1.8 million , $1.3 million , and $1.1 million , respectively. The tax benefit realized from vested RSUs for the years ended December 31, 2015 , 2014 , and 2013 was approximately $0.7 million , $0.5 million , and $0.4 million , respectively. Performance Stock Units We granted performance stock awards (“PSUs”) to certain key employees of approximately 64,000 , 67,500 , and 85,500 PSUs during the years ended December 31, 2015 , 2014 , and 2013 , respectively, with weighted-average grant date fair values of approximately $25.51 , $24.90 , and $16.15 per share, respectively. PSU awards are subject to the attainment of performance goals established by the Committee, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awarded shares. Performance goals are based on a pre-established objective formula or standard that specifies the manner of determining the number of performance stock awards that will be granted if performance goals are attained. If an employee terminates employment, their non-vested portion of the PSUs will not vest and all rights to the non-vested portion will terminate. Performance stock activity for the year ended December 31, 2015 is as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 168,158 $ 18.94 Granted 64,000 25.51 Vested (35,504 ) 13.04 Forfeited (63,157 ) 20.65 Outstanding at December 31, 2015 133,497 $ 22.86 The share-based compensation cost expensed for PSUs for the years ended December 31, 2015 , 2014 , and 2013 (before tax benefits) was approximately $0.5 million , $1.0 million and $0.3 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2015 , total unrecognized compensation cost (before tax benefits) related to PSUs of approximately $1.4 million is expected to be recognized over a weighted-average period of approximately 1.3 years. The total fair value of PSUs vested during the years ended December 31, 2015 , 2014 , and 2013 , was approximately $0.9 million , zero , and zero , respectively. The tax benefit realized from PSUs for the years ended December 31, 2015 , 2014 , and 2013 were $0.3 million , zero , and zero , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Supplemental Retirement Plans We have three unfunded supplemental retirement plans. The first plan was suspended in 1986 , but continues to cover certain former executives. The second plan was suspended in 1997 , but continues to cover certain current and retired directors. The third plan covers certain current and retired employees and further employee contributions to this plan were suspended on August 5, 2011 . The liability for the third plan and interest thereon is included in accrued employee compensation and long-term liabilities and was approximately $0.5 million and $1.7 million , respectively, at December 31, 2015 and $0.3 million and $2.0 million , respectively, at December 31, 2014 . The accumulated benefit obligations of the other two plans at December 31, 2015 and December 31, 2014 were approximately $0.9 million and $0.9 million , respectively, and are included in accrued liabilities. Defined Contribution 401(K) Plans We sponsor, for all our employees, two 401(k) defined contribution plans.The first plan covers all employees, other than employees at our Miltec subsidiary, and allows the employees to make annual voluntary contributions not to exceed the lesser of an amount equal to 25% of their compensation or limits established by the Internal Revenue Code. Under this plan, we generally provide a match equal to 50% of the employee’s contributions up to the first 6% of compensation, except for union employees who are not eligible to receive the match. The second plan covers only the employees at our Miltec subsidiary, and in 2013 the provisions of the Miltec plan were changed to be the same as our other plan. Prior to 2013, the Miltec plan allowed employees to make annual voluntary contributions not to exceed the lesser of an amount equal to 100% of their compensation or limits established by the Internal Revenue Code. Under this plan, Miltec generally (i) provided a match equal to 100% of the employee’s contributions up to the first 5% of compensation, (ii) contributions of 3% of an employee’s compensation annually, and (iii) contributions, at our discretion of 0% to 7% of an employee’s compensation annually. Our provision for matching and profit sharing contributions for the three years ended December 31, 2015 , 2014 , and 2013 was approximately $3.2 million , $3.3 million , and $3.1 million , respectively. Other Plans We have a defined benefit pension plan covering certain hourly employees of a subsidiary (the “Pension Plan”). Pension plan benefits are generally determined on the basis of the retiree’s age and length of service. Assets of this defined benefit pension plan are composed primarily of fixed income and equity securities. We also have a retirement plan covering certain current and retired employees (the “LaBarge Retirement Plan”). The components of net periodic pension cost for both plans are as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Service cost $ 785 $ 693 $ 843 Interest cost 1,350 1,278 1,160 Expected return on plan assets (1,495 ) (1,400 ) (1,222 ) Amortization of actuarial losses 887 419 1,093 Net periodic pension cost $ 1,527 $ 990 $ 1,874 The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for 2015 were as follows: (In thousands) Year Ended December 31, 2015 Amortization of actuarial loss - total before tax (1) $ 887 Tax benefit (330 ) Net of tax $ 557 (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. The estimated net actuarial loss for both plans that will be amortized from accumulated other comprehensive loss into net periodic cost during 2016 is approximately $0.8 million . The obligations and funded status of both plans are as follows: (In thousands) December 31, 2015 2014 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 33,299 $ 28,438 Service cost 785 693 Interest cost 1,350 1,278 Actuarial (gain) loss (2,599 ) 4,117 Benefits paid (1,325 ) (1,227 ) Ending benefit obligation (December 31) $ 31,510 $ 33,299 Change in plan assets Beginning fair value of plan assets (January 1) $ 19,725 $ 18,367 Return on assets (296 ) 669 Employer contribution 1,829 1,916 Benefits paid (1,325 ) (1,227 ) Ending fair value of plan assets (December 31) $ 19,933 $ 19,725 Funded status (under funded) $ (11,577 ) $ (13,574 ) Amounts recognized in the consolidated balance sheet Current liabilities $ 527 $ 464 Non-current liabilities $ 11,050 $ 13,110 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 10,614 $ 6,183 Amortization (887 ) (419 ) Liability (gain) loss (2,599 ) 4,117 Asset loss 1,791 733 Ending unrecognized loss, before tax (December 31) 8,919 10,614 Tax impact (3,316 ) (3,970 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 5,603 $ 6,644 Prepaid benefit cost included in other assets $ 1,984 $ 1,832 Accrued benefit cost included in other liabilities $ 4,646 $ 4,795 (1) Projected benefit obligation equals the accumulated benefit obligation for the plans. On December 31, 2015 , our annual measurement date, the accumulated benefit obligation exceeded the fair value of the plans assets by approximately $11.6 million . Such excess is referred to as an unfunded accumulated benefit obligation. We recorded unrecognized loss included in accumulated other comprehensive loss, net of tax at December 31, 2015 and 2014 of approximately $5.6 million and $6.6 million , respectively, which decreased shareholders’ equity and was included in other long-term liabilities. This charge to shareholders’ equity represents a net loss not yet recognized as pension expense. This charge did not affect reported earnings, and would be decreased or be eliminated if either interest rates increase or market performance and plan returns improve or contributions cause the Pension Plan to return to fully funded status. Our Pension Plan asset allocations at December 31, 2015 and 2014 , by asset category, were as follows: December 31, 2015 2014 Equity securities 74 % 76 % Cash and equivalents 6 % 4 % Debt securities 20 % 20 % Total (1) 100 % 100 % (1) Our overall investment strategy is to achieve an asset allocation within the following ranges to achieve an appropriate rate of return relative to risk. Cash 0-25% Fixed income securities 0-50% Equities 50-95% Pension Plan assets consist primarily of listed stocks and bonds and do not include any of the Company’s securities. The return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. We select the return on asset assumption by considering our current and target asset allocation. We consider information from various external investment managers, forward-looking information regarding expected returns by asset class and our own judgment when determining the expected returns. (In thousands) Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Cash and other investments $ 1,149 $ — $ — $ 1,149 Fixed income securities 3,986 — — 3,986 Equities (1) 9,468 5,330 — 14,798 Total $ 14,603 $ 5,330 $ — $ 19,933 (In thousands) Year Ended December 31, 2014 Level 1 Level 2 Level 3 Total Cash and other investments $ 886 $ — $ — $ 886 Fixed income securities 3,896 — — 3,896 Equities (1) 9,687 5,256 — 14,943 Total $ 14,469 $ 5,256 $ — $ 19,725 (1) Represents mutual funds and commingled accounts which invest primarily in equities, but may also hold fixed income securities, cash and other investments. The valuation techniques used to determine fair value are as follows. Commingled funds with publicly quoted prices and active trading are classified as Level 1 investments. For commingled funds that are not publicly traded and have ongoing subscription and redemption activity, the fair value of the investment is the net asset value (“NAV”) per share, derived from the underlying securities’ quoted prices in active markets. These funds are classified as Level 2 investments. The assumptions used to determine the benefit obligations and expense for our two plans are presented in the tables below. The expected long-term return on assets, noted below, represents an estimate of long-term returns on investment portfolios consisting of a mixture of fixed income and equity securities. The estimated cash flows from the plans for all future years are determined based on the plans’ population at the measurement date. We took the expected benefit payouts from the plans for each year into the future, and discounted them back to the present using the Wells Fargo yield curve rate for that duration. The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2015 2014 2013 Discount rate used to determine pension expense Pension Plan 4.25 % 4.75 % 4.00 % LaBarge Retirement Plan 3.70 % 4.00 % 3.10 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2015 2014 2013 Discount rate used to determine value of obligations Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % Long-term rate of return - Pension Plan only 7.50 % 7.50 % 8.00 % The following benefit payments under both plans, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) Pension Plan LaBarge Retirement Plan 2016 $ 1,038 $ 527 2017 1,062 521 2018 1,172 512 2019 1,213 500 2020 1,286 485 Thereafter 7,442 2,139 Our funding policy is to contribute cash to our plans so that the minimum contribution requirements established by government funding and taxing authorities are met. We expect to make contributions of approximately $0.9 million to the plans in 2016 . |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2015 | |
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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases We lease certain facilities and equipment for periods ranging from one to ten years. The leases generally are renewable and provide for the payment of property taxes, insurance and other costs relative to the property. Rental expense in 2015 , 2014 , and 2013 was approximately $8.5 million , $7.3 million , and $7.9 million , respectively. Future minimum rental payments under operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2015 were as follows: (In thousands) 2016 $ 5,169 2017 2,727 2018 1,166 2019 434 2020 244 Thereafter — Total $ 9,740 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our pre-tax income attributable to foreign operations were not material. The provision for income tax expense (benefit) consisted of the following: (In thousands) Years Ended December 31, 2015 2014 2013 Current tax (benefit) expense Federal $ (1,511 ) $ 5,258 $ (3,806 ) State (418 ) 244 432 (1,929 ) 5,502 (3,374 ) Deferred tax (benefit) expense Federal (29,475 ) 1,186 1,173 State (1,904 ) (315 ) 208 (31,379 ) 871 1,381 Income tax (benefit) expense $ (33,308 ) $ 6,373 $ (1,993 ) The current income tax (benefit) expense excludes excess tax benefits recorded directly to additional paid-in-capital related to share-based compensation of approximately $0.6 million , $0.1 million , and $(0.3) million for the years ended December 31, 2015, 2014, and 2013, respectively. Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2015 2014 Deferred tax assets: Accrued expenses $ 1,363 $ 1,669 Allowance for doubtful accounts 134 94 Contract overrun reserves 4,412 1,766 Deferred compensation 491 464 Employment-related accruals 2,463 5,375 Environmental reserves 772 778 Federal tax credit carryforwards 7,031 2,696 Inventory reserves 2,703 3,873 Investment in common stock 297 300 Pension obligation 3,299 3,959 State net operating loss carryforwards 1,402 1,065 State tax credit carryforwards 5,937 5,382 Stock-based compensation 2,165 2,082 Workers’ compensation 133 121 Other 1,595 1,072 Total gross deferred tax assets 34,197 30,696 Valuation allowance (7,477 ) (6,882 ) Total gross deferred tax assets, net of valuation allowance 26,720 23,814 Deferred tax liabilities: Depreciation (11,802 ) (12,485 ) Goodwill (2,035 ) (12,105 ) Intangibles (37,891 ) (51,755 ) Prepaid insurance (514 ) (685 ) Section 48(a) adjustment (682 ) (1,334 ) Unbilled receivables — (1,115 ) Total gross deferred tax liabilities (52,924 ) (79,479 ) Net deferred tax liabilities $ (26,204 ) $ (55,665 ) We have elected to early adopt ASU 2015-17, prospectively, beginning with the annual period ended December 31, 2015, which requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of this new guidance had no impact on our results of operations or cash flows for 2015. We have federal and state tax credit carryforwards of approximately $7.9 million and $10.0 million , respectively. A valuation allowance of approximately $9.1 million has been provided on state tax credit carryforwards that are not expected to be realized under ASC Subtopic 740-10. If not realized, the federal and state tax credit carryforwards will expire between 2017 and 2035 . We have net operating losses in Alabama and various other states of approximately $30.2 million . The state net operating loss carryforwards include approximately $27.1 million that is not expected to be realized under ASC Subtopic 740-10 and has been reduced by a valuation allowance. If not realized, the state net operating loss carryforards will begin to expire in 2016 . We have established a valuation allowance for items that are not expected to provide future tax benefits. We believe it is more likely than not that we will generate sufficient taxable income to realize the benefit of the remaining deferred tax assets. The principal reasons for the variation between the statutory and effective tax rates were as follows: Years Ended December 31, 2015 2014 2013 Statutory federal income tax (benefit) rate (35.0)% 35.0% 35.0% State income taxes (net of federal benefit) (1.3) 0.9 2.0 Qualified domestic production activities 0.5 (2.3) (8.9) Research and development tax credits (2.9) (11.3) (48.9) Goodwill impairment 6.7 — — Increase in valuation allowance 0.6 8.5 0.9 Non deductible book expenses 0.2 0.9 1.8 Changes in deferred tax assets 0.1 (5.0) (1.5) Remeasurement of deferred taxes for changes in state tax law — (1.9) — Changes in tax reserves 0.1 (0.7) (0.5) Other (0.2) 0.2 (1.1) Effective income tax (benefit) rate (31.2)% 24.3% (21.2)% We recorded a goodwill impairment charge related to the SS operating segment in 2015. A portion of this goodwill impairment charge was nondeductible for tax purposes and was a permanent impact to our income tax provision of approximately $7.2 million . The deduction for qualified domestic production activities is treated as a “special deduction” which has no effect on deferred tax assets and liabilities. Instead, the impact of this deduction is reported in our rate reconciliation. No deduction for qualified domestic production has been recognized in 2015 due to a taxable loss. The loss has been carried back to 2014 and 2013, reducing the deduction for qualified domestic production in those years. On December 18, 2015, the President of the United States signed into law the Protecting Americans from Tax Hikes Act (“PATH”). The PATH Act permanently extended the research and development credit. As a result, we recognized a benefit of approximately $2.6 million for the U.S. Federal R&D credit in 2015. In December 2014, the federal research and development tax credit was retroactively extended from the beginning of 2014. We recognized total federal research and development tax credits of approximately $2.4 million in 2014. The effective tax rate for 2013 included approximately $2.0 million of 2012 federal research and development tax credit benefits recognized in the first quarter of 2013 as a result of the American Taxpayer Relief Act (the “Act”) of 2012 passed in January 2013. The Act includes 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. We recognized total federal research and development tax credit benefits of approximately $4.5 million in 2013. We record interest and penalty charge, if any, related to uncertain tax positions as a component of tax expense. We had approximately $0.1 million for payment of interest and penalties accrued for all three years ended December 31, 2015 , 2014 , and 2012. Our total amount of unrecognized tax benefits was approximately $3.0 million , $2.8 million , and $2.3 million at December 31, 2015 , 2014 , and 2012 respectively. Approximately $2.1 million , if recognized, would affect the annual income tax rate. We do not reasonably expect significant increases or decreases to our unrecognized tax benefits in the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Balance at January 1, $ 2,803 $ 2,297 $ 1,356 Additions based on tax positions related to the current year 702 668 668 Additions for tax positions for prior years — 31 538 Reductions for tax positions for prior years (48 ) (22 ) — Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (494 ) (171 ) (265 ) Balance at December 31, $ 2,963 $ 2,803 $ 2,297 Federal income tax returns after 2011, California franchise (income) tax returns after 2010 and other state income tax returns after 2010 are subject to examination. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies On October 8, 2014, the United States District Court for the District of Kansas (the “District Court”) granted summary judgment in favor of The Boeing Company (“Boeing”) and Ducommun and dismissed the lawsuit entitled United States of America ex rel Taylor Smith, Jeannine Prewitt and James Ailes v. The Boeing Company and Ducommun Inc. . The lawsuit was a qui tam action brought by three former Boeing employees (“Relators”) against Boeing and Ducommun on behalf of the United States of America for violations of the United States False Claims Act. Relators have appealed the dismissal to the Tenth Circuit Court of Appeals. The lawsuit alleged 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 sought 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 after September 28, 1999, together with attorneys’ fees and costs. The Relators claimed 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 declined to intervene in the lawsuit. SS 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 December 31, 2015 , which is reflected in other long-term liabilities on its consolidated balance sheet. SS also faces liability as a potentially responsible party for hazardous waste disposed at landfills located in Casmalia and West Covina, California. SS 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 December 31, 2015 , 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. |
Major Customers and Concentrati
Major Customers and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Major Customers and Concentrations of Credit Risk | Major Customers and Concentrations of Credit Risk We provide proprietary products and services to the Department of Defense and various United States Government agencies, and most of the aerospace and aircraft manufacturers who receive contracts directly from the U.S. Government as an original equipment manufacturer (“prime manufacturers”). In addition, we also service technology-driven markets in the industrial, natural resources and medical and other end-use markets. As a result, we have significant net revenues from certain customers. Accounts receivable were diversified over a number of different commercial, military and space programs and were made by both operating segments. Net revenues from our top ten customers, including the Boeing Company (“Boeing”) and Raytheon Company (“Raytheon”), represented the following percentages of total net sales: Years Ended December 31, 2015 2014 2013 Boeing 16 % 20 % 18 % Raytheon 9 % 9 % 10 % Top ten customers 56 % 59 % 57 % Boeing and Raytheon represented the following percentages of total accounts receivable: December 31, 2015 2014 Boeing 13 % 12 % Raytheon 12 % 10 % In 2015 , 2014 and 2013 , net revenues from foreign customers based on the location of the customer, were approximately $60.2 million , $66.7 million and $66.0 million , respectively. No net revenues from a foreign country were greater than approximately 2% of total net revenues in 2015 , 2014 , and 2013 . We have manufacturing facilities in Thailand and Mexico. Our net revenues, profitability and identifiable long-lived assets attributable to foreign revenues activity were not material compared to our net revenues, profitability and identifiable long-lived assets attributable to our domestic operations during 2015 , 2014 , and 2013 . We are not subject to any significant foreign currency risks as all our sales are made in United States dollars. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
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, SS and ES, each of which is an operating segment as well as a reportable segment. Financial information by reportable segment was as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Net Revenues SS $ 273,319 $ 319,956 $ 315,232 ES 392,692 422,089 421,418 Total Net Revenues $ 666,011 $ 742,045 $ 736,650 Segment Operating (Loss) Income (1) SS (2)(3) $ (53,010 ) $ 34,949 $ 19,008 ES (4) (4,472 ) 34,599 37,030 (57,482 ) 69,548 56,038 Corporate General and Administrative Expenses (1)(5) (17,827 ) (17,781 ) (16,735 ) Operating (Loss) Income $ (75,309 ) $ 51,767 $ 39,303 Depreciation and Amortization Expenses SS $ 9,417 $ 10,959 $ 12,406 ES 17,267 17,928 18,346 Corporate Administration 162 137 174 Total Depreciation and Amortization Expenses $ 26,846 $ 29,024 $ 30,926 Capital Expenditures SS $ 11,559 $ 12,742 $ 8,287 ES 4,419 5,782 5,000 Corporate Administration 10 30 116 Total Capital Expenditures $ 15,988 $ 18,554 $ 13,403 (1) Includes cost not allocated to either the SS or ES operating segments. (2) The results for 2015 includes approximately $57.2 million of goodwill impairment charge. (3) The results for 2013 includes approximately $14.1 million in charges related to fourth quarter asset impairment charges of $5.7 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; forward loss reserves of $3.9 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; and inventory write-offs of $1.9 million on the Embraer Legacy 450/500 contracts. (4) The results for 2015 includes approximately $32.9 million of an intangible asset impairment charge. (5) The results for 2015, 2014 and 2013 include approximately zero , $1.2 million and $0.6 million , respectively, of workers’ compensation insurance expenses included in gross profit and not allocated to the operating segments. Segment assets include assets directly identifiable with each segment. Corporate assets include assets not specifically identified with a business segment, including cash. The following table summarizes our segment assets for 2015 and 2014 : (In thousands) December 31, 2015 2014 Total Assets SS $ 179,134 $ 245,925 ES 363,227 427,719 Corporate Administration 19,059 73,955 Total Assets $ 561,420 $ 747,599 Goodwill and Intangibles SS $ 4,866 $ 63,497 ES 207,595 249,176 Total Goodwill and Intangibles $ 212,461 $ 312,673 Subsequent to our year ended December 31, 2015, we entered into an agreement to sell our operation located in Pittsburgh, Pennsylvania, which is part of our ES operating segment, for a preliminary sales price of approximately $38.5 million in cash, subject to finalization of the working capital amount. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We completed the sale on January 22, 2016. Also subsequent to our year ended December 31, 2015 , we entered into an agreement to sell our Miltec operation, which is part of our ES operating segment, for a preliminary sales price of approximately $14.6 million in cash, subject to post-closing adjustments. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We expect to complete the sale by the end of the second fiscal quarter of 2016. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data (Unaudited) | Supplemental Quarterly Financial Data (Unaudited) The quarterly financial results presented in the table below reflects the impact of the restatement adjustments of all the Restated Periods. (In thousands, except per share amounts) Three Months Ended 2015 Three Months Ended 2014 Dec 31 Oct 3 Jul 4 Apr 4 Dec 31 Sep 27 Jun 29 Mar 30 Net Revenues $ 156,576 $ 161,670 $ 174,845 $ 172,920 $ 187,612 $ 188,164 $ 186,516 $ 179,753 Gross Profit 22,796 20,028 31,207 26,761 33,627 33,112 37,678 35,915 (Loss) Income Before Taxes (90,170 ) (16,447 ) 3,061 (3,034 ) 4,034 4,687 9,816 7,703 Income Tax (Benefit) Expense (26,594 ) (6,932 ) 1,279 (1,061 ) (1,122 ) 1,754 3,197 2,544 Net (Loss) Income $ (63,576 ) $ (9,515 ) $ 1,782 $ (1,973 ) $ 5,156 $ 2,933 $ 6,619 $ 5,159 (Loss) Earnings Per Share Basic (loss) earnings per share $ (5.74 ) $ (0.86 ) $ 0.16 $ (0.18 ) $ 0.47 $ 0.27 $ 0.61 $ 0.48 Diluted (loss) earnings per share $ (5.74 ) $ (0.86 ) $ 0.16 $ (0.18 ) $ 0.46 $ 0.26 $ 0.60 $ 0.46 In the fourth quarter of 2015, we recorded a goodwill impairment charge in our SS operating segment of approximately $57.2 million . In addition, we recorded an intangible asset impairment charge in our ES operating segment of approximately $32.9 million related to the write off an indefinite-lived trade name intangible asset. In the third quarter of 2015, we recorded loss on extinguishment of debt of approximately $11.9 million which was made up of the call premium to retire the existing $200.0 million senior unsecured notes in July 2015 of approximately $9.8 million and the write off of the unamortized debt issuance costs associated with the existing $200.0 million senior unsecured notes of approximately $2.1 million . In the second quarter of 2015, we recorded loss on extinguishment of debt of approximately $2.8 million which was made up of the write off of the unamortized debt issuance costs associated with the existing senior secured term loan and existing senior secured revolving credit facility when the existing senior secured term loan was paid off in June 2015 and both were replaced with the New Credit Facilities. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | DUCOMMUN INCORPORATED AND SUBSIDIARIES CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013 (in thousands) SCHEDULE II Additions Description Balance at Beginning of Period Charged to Costs and Expenses (1) Charged to Other Accounts Deductions Balance at End of Period 2015 Allowance for Doubtful Accounts (1) $ 252 $ 235 $ — $ 128 $ 359 Valuation Allowance on Deferred Tax Assets 6,882 595 — — 7,477 2014 Allowance for Doubtful Accounts $ 489 $ 166 $ — $ 403 $ 252 Valuation Allowance on Deferred Tax Assets 4,650 2,232 — — 6,882 2013 Allowance for Doubtful Accounts $ 566 $ 430 $ — $ 507 $ 489 Valuation Allowance on Deferred Tax Assets 3,753 999 — 102 4,650 (1) Includes amount that is part of assets held for sale. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
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 primary businesses: Electronic Systems segment and Structural Systems segment, each of which is a reportable operating segment. In the fourth quarter of 2015, we renamed our operating segments to Electronic Systems (“ES”) and Structural Systems (“SS”). ES was formerly known as Ducommun LaBarge Technologies (“DLT”) and SS was formerly known as Ducommun AeroStructures (“DAS”). There were no regrouping of revenues or expenses as a result of the operating segments name change. ES designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace, defense, natural resources, industrial and medical and other end-use markets. ES’s product offerings range from prototype development to complex assemblies. SS designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. SS’s products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. All reportable operating segments follow the same accounting principles. |
Basis of Presentation | Basis of Presentation The 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. 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. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our consolidated financial position, results of operations, comprehensive income (loss) and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates Certain amounts and disclosures included in the consolidated financial statements required management to make estimates and judgments that affect the amount of assets, liabilities (including forward loss reserves), 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 could differ from these estimates. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current year’s presentation. |
Fair Value | Fair Value We measure certain assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in a orderly transaction between market participants. See Note 3 for further information. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less . Our cash accounts are not reduced for checks written until the checks are presented for payment and paid by our bank. These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value above. |
Derivative Instruments | Derivative Instruments We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2015, all of our derivative instruments were designated as cash flow hedges. We did not enter into any derivative contracts in 2014. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in other comprehensive income (loss), net of tax until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within interest expense. We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions. |
Inventories | Inventories 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. |
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 (which we perform during the fourth quarter) 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. In the fourth quarter of 2013, we recorded an impairment charge in SS on production costs of contracts of $7.0 million , consisting of $5.7 million for the Embraer Legacy 450/500 aircraft contracts, and $1.3 million for the Boeing 777 wing tip contract. The impairment charge reflects a determination that the production cost of contracts for the Boeing 777 wing tip contract and the Embraer Legacy 450/500 contracts are not recoverable since these contracts are estimated to be unprofitable during their remaining terms. The impairment charge represents the entire remaining balance of production cost of contracts for these contracts. The $7.0 million charge was recorded as part of cost of goods sold in our results of operations and a reduction in production cost of contracts on our balance sheet. As of December 31, 2015 and 2014 , production costs of contracts were approximately $10.3 million and $11.7 million , respectively. |
Assets Held For Sale | Assets Held For Sale In the fourth quarter of 2015, we made the decision to sell our Huntsville, Alabama and Iuka, Mississippi (collectively, “Miltec”) operations and our Pittsburgh, Pennsylvania operation, both of which are part of our ES operating segment, and as a result, we met the criteria for assets held for sale. However, the proposed sale of these two operations does not represent a strategic shift in our business and thus, were included in the ongoing operating results in the consolidated statements of operations for all periods presented. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment, including assets recorded under capital leases, are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, or the lease term if shorter for leasehold improvements. Repairs and maintenance are charged to expense as incurred. We evaluate long-lived assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses if any, based upon the fair value of the assets. |
Goodwill and Indefinite-Lived Intangible Asset | Goodwill and Indefinite-Lived Intangible Asset Goodwill is tested for impairment utilizing a two-step method. In the first step, we determine the fair value of the reporting unit using expected future discounted cash flows and market valuation approaches considering comparable Company revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) multiples. If the carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of the impairment loss, if any. The second step requires fair valuation of all the reporting unit’s assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill. This residual fair value of goodwill is then compared to the carrying value of goodwill to determine impairment. An impairment charge will be recognized equal to the excess of the carrying value of goodwill over the implied fair value of goodwill. As a result of our fourth quarter of 2015 annual goodwill impairment test, we recorded an approximate $57.2 million of goodwill impairment to the SS goodwill carrying value to decrease its goodwill carrying value to zero as of December 31, 2015. See Note 7 for further information. We review our indefinite-lived intangible asset for impairment on an annual basis or when events or changes in circumstances indicate that the carrying value of our intangible asset may not be recoverable. We may first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. Impairment indicators include, but are not limited to, cost factors, financial performance, adverse legal or regulatory developments, industry and market conditions and general economic conditions. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of such excess. In performing our annual impairment test in the fourth quarter of 2015, we concluded the fair value of the indefinite-lived trade name to be zero as a result of divesting businesses in ES and our discontinuation of the use of the trade name. Thus, we recorded an impairment of approximate $32.9 million , which was the remaining carrying value of the trade name. See Note 7 for further information. |
Other Intangible Assets | Other Intangible Assets We amortize purchased other intangible assets with finite lives over the estimated economic lives of the assets, ranging from three to eighteen years generally using the straight-line method. The value of other intangibles acquired through business combinations has been estimated using present value techniques which involve estimates of future cash flows. We evaluate other intangible assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses, if any, based upon the estimated fair value of the assets. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was composed of cumulative pension and retirement liability adjustments, net of tax. |
Revenue Recognition | Revenue Recognition Except as described below, we recognize revenue, including revenue from products sold under long-term contracts, when persuasive evidence of an arrangement exists, the price is fixed or determinable, collection is reasonably assured and delivery of products has occurred or services have been rendered. We have a significant number of contracts for which we recognize revenue under the contract method of accounting and record revenues and cost of sales on each contract in accordance with the percentage-of-completion method of accounting, using the units-of-delivery method. Under the units-of-delivery method, revenue is recognized based upon the number of units delivered during a period and the costs are recognized based on the actual costs allocable to the delivered units. Costs allocable to undelivered units are reported on the balance sheet as inventory. This method is used in circumstances in which a company produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. These contracts are primarily fixed-price contracts that vary widely in terms of size, length of performance period, and expected gross profit margins. We also recognize revenue on the sale of services (including prototype products) based on the type of contract: time and materials, cost-plus reimbursement and firm-fixed price. Revenue is recognized (i) on time and materials contracts as time is spent at hourly rates, which are negotiated with customers, plus the cost of any allowable materials and out-of-pocket expenses, (ii) on cost-plus reimbursement contracts based on direct and indirect costs incurred plus a negotiated profit calculated as a percentage of cost, a fixed amount or a performance-based award fee, and (iii) on fixed-price contracts on the percentage-of-completion method measured by the percentage of costs incurred to estimated total costs. |
Provision for Estimated Losses on Contracts | Provision for Estimated Losses on Contracts We record provisions for the total anticipated losses on contracts considering total estimated costs to complete the contract compared to total anticipated revenues in the period in which such losses are identified. 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 maybe required to record additional provisions for estimated losses on contracts. In the third quarter of 2015, we recorded a charge in SS related to estimated cost overruns as a result of a change in the contract requirements for the remaining contractual period for a regional jet program of approximately $10.0 million . This amount was recorded as part of cost of goods sold in our results of operations and increased accrued liabilities by approximately $7.6 million and other long-term liabilities by approximately $2.4 million . In the fourth quarter of 2013, we recorded a charge in SS for the estimated cost to complete of $5.2 million , consisting of $3.9 million for the Embraer Legacy 450/500 aircraft contracts, and $1.3 million for the Boeing 777 wing tip contract. The charges result from difficulties in achieving previously anticipated cost reductions, including delays in transferring work to our lower-cost Guaymas, Mexico facility. The charge for the Embraer Legacy 450/500 contracts also reflects estimated cost overruns for customer driven changes on both the development and production phases of the contracts, for which we have asserted claims with Embraer. Recognition of additional losses in future periods continues to be a risk and will depend upon numerous factors, including our sales forecast, our ability to achieve forecasted cost reductions and our ability to resolve claims and assertions with our customers. The $5.2 million charge was recorded as part of cost of goods sold in the Company’s results of operations. The charge increased accrued liabilities by $4.2 million and other long-term liabilities by $1.0 million on our balance sheet. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized, using enacted tax rates, for the expected future tax consequences of temporary differences between the book and tax bases of recorded assets and liabilities, operating losses and tax credit carryforwards. Deferred tax assets are evaluated quarterly and are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. We elected to early adopt ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” and on a prospective basis for the year ended December 31, 2015. See “Recent Accounting Pronouncements - New Accounting Guidance Adopted in 2015” in Note 1 and Note 15 for further information. |
Litigation and Commitments | Litigation and Commitments In the normal course of business, we are defendants in certain litigation, claims and inquiries, including matters relating to environmental laws. In addition, we make various commitments and incur contingent liabilities. Management’s estimates regarding contingent liabilities could differ from actual results. |
Environmental Liabilities | Environmental Liabilities Environmental liabilities are recorded when environmental assessments and/or remedial efforts are probable and costs can be reasonably estimated. Generally, the timing of these accruals coincides with the completion of a feasibility study or our commitment to a formal plan of action. Further, we review and update our environmental accruals as circumstances change and/or additional information is obtained that reasonably could be expected to have a meaningful effect on the outcome of a matter or the estimated cost thereof. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation We measure and recognize compensation expense for share-based payment transactions to our employees and non-employees at their estimated fair value. The expense is measured at the grant date, based on the calculated fair value of the share-based award, and is recognized over the requisite service period (generally the vesting period of the equity award). The fair value stock options are determined using the Black-Scholes-Merton (“Black-Scholes”) valuation model, which requires assumptions and judgments regarding stock price volatility, risk-free interest rates, and expected options terms. The fair value of unvested stock awards is determined based on the closing price of the underlying common stock on the date of grant. Management’s estimates could differ from actual results. |
(Loss) Earnings per Share | (Loss) 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Guidance Adopted in 2015 In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”), which requires deferred tax assets and liabilities be classified as noncurrent on the balance sheet. This new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted and may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. We have elected to early adopt ASU 2015-17 and on a prospective basis for the year ended December 31, 2015. The adoption of this new guidance had no impact on our results of operations or cash flows for 2015. See Note 15 for further information. In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” (“ASU 2014-08”), which changed the criteria for reporting discontinued operations . The revised guidance defines a discontinued operation as a disposal of a component or a group of a components of an entity that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. It also requires additional disclosures for discontinued operations and new disclosures for individually material disposals that do not meet the definition of a discontinued operation This new guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We have adopted ASU 2014-08 for the year ended December 31, 2015. Recently Issued Accounting Standards In August 2015, the FASB issued ASU 2015-15, “Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which provides guidance on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. In ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” it requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability but does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Thus, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We had approximately $4.3 million of debt issuance costs and approximately $245.0 million of total debt as of December 31, 2015, and thus, we do not believe that adoption of this new guidance will have a significant impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330)” (“ASU 2015-11”), which requires inventory within the scope of ASU 2015-11 to be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory value. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. The amendments in this new guidance that require transition guidance are effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. All other amendments are effective upon issuance of ASU 2015-10. Early adoption is permitted. We do not anticipate this standard will have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of those costs is reported as interest expense. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted. We had approximately $4.3 million of debt issuance costs and approximately $245.0 million of total debt as of December 31, 2015, and thus, we do not believe that adoption of this new guidance will have a significant impact on our consolidated financial statements. In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)” (“ASU 2015-01”), which eliminates from U.S. GAAP the concept of extraordinary items. Current guidance requires separate classification, presentation, and disclosure of extraordinary events and transactions. In addition, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The new guidance is effective for annual and interim periods within those annual periods, beginning after December 15, 2015, which is our interim period beginning January 1, 2016. Early adoption is permitted provided it is applied from the beginning of the annual period of adoption. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provide principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. The new guidance is effective for annual periods ending after December 15, 2016, which will be our year ending December 31, 2016, and interim periods beginning after December 15, 2016, which will be our interim period beginning January 1, 2017. Early adoption is permitted. We are evaluating the impact of this standard but currently do not anticipate it will have a significant impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period” (“ASU 2014-12”), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. Thus, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new guidance is effective for us beginning January 1, 2016. Early adoption is permitted. We currently do not anticipate the adoption of this standard will have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. It requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. Thus, it depicts the transfer of promised goods or services to customers in an amount that reflects the consideration an entity expects to receive in exchange for those goods or services. Companies have the option of applying the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. In August 2015, the FASB issued ASU 2015-14, “Revenue From Contracts With Customers (Topic 606)” (“ASU 2015-14”), which defer the effective date of ASU 2014-09 by one year to annual periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new guidance is effective for us beginning January 1, 2018 and will provide us additional time to evaluate the method and impact that ASU 2014-09 will have on our consolidated financial statements. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Assets Held-for-sale | The carrying values of the major classes of assets and liabilities related to these assets held for sale were as follows: (In thousands) December 31, 2015 Assets Accounts receivable (less allowance for doubtful accounts of $24) $ 9,395 Inventory 6,453 Deferred income taxes 1,246 Other current assets 3,315 Total current assets 20,409 Property and equipment, net of accumulated depreciation of $8,509 1,941 Goodwill 17,772 Other Intangible Assets 1,514 $ 41,636 Liabilities Accounts payable $ 4,836 Accrued liabilities 1,944 $ 6,780 |
Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share | The net (loss) earnings and weighted-average number of common shares outstanding used to compute (loss) earnings per share were as follows: (In thousands, except per share data) Years Ended December 31, 2015 2014 2013 Net (loss) income $ (73,282 ) $ 19,867 $ 11,378 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,047 10,897 10,695 Dilutive potential common shares — 229 157 Diluted weighted-average common shares outstanding 11,047 11,126 10,852 (Loss) earnings per share Basic $ (6.63 ) $ 1.82 $ 1.06 Diluted $ (6.63 ) $ 1.79 $ 1.05 |
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) Years Ended December 31, 2015 2014 2013 Stock options and stock units 778 218 410 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | Our restructuring activities for 2015 and 2014 were as follows (in thousands): December 31, 2014 2015 December 31, 2015 Balance Charges Cash Payments Change in Estimates Balance Severance and benefits $ — $ 987 $ (221 ) $ (44 ) $ 722 Lease termination — 1,181 — — 1,181 Ending balance $ — $ 2,168 $ (221 ) $ (44 ) $ 1,903 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | Our financial instruments consist primarily of cash and cash equivalents and interest rate cap derivatives designated as cash flow hedging instruments. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2015 As of December 31, 2014 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Level 3 Total Balance Assets Money market funds (1) $ 4,587 $ — $ — $ 4,587 $ 44,554 $ — $ — $ 44,554 Interest rate cap hedges (2) — 963 — 963 — — — — Total Assets $ 4,587 $ 963 $ — $ 5,550 $ 44,554 $ — $ — $ 44,554 (1) Included as cash and cash equivalents. (2) Interest rate cap hedge premium included as other current assets and other assets. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The gross notional and recorded fair value of derivative financial instruments in the consolidated balance sheets were as follows: (In thousands) December 31, 2015 (In thousands) December 31, 2014 Gross Notional Other Current Assets Other Long Term Assets Gross Notional Other Current Assets Other Long Term Assets Derivatives Designated as Hedging Instruments Cash Flow Hedges: Interest rate cap premiums $ 133,707 $ 1 $ 962 $ — $ — $ — Total Derivatives $ 133,707 $ 1 $ 962 $ — $ — $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (In thousands) December 31, 2015 2014 Raw materials and supplies $ 61,840 $ 77,033 Work in process 49,299 61,458 Finished goods 10,073 14,116 121,212 152,607 Less progress payments 5,808 9,765 Total $ 115,404 $ 142,842 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net consisted of the following: (In thousands) December 31, Range of Estimated 2015 2014 Useful Lives Land $ 15,454 $ 15,006 Buildings and improvements 44,313 45,636 5 - 40 Years Machinery and equipment 127,934 131,263 2 - 20 Years Furniture and equipment 24,187 25,975 2 - 10 Years Construction in progress 13,196 9,645 225,084 227,525 Less accumulated depreciation 128,533 128,457 Total $ 96,551 $ 99,068 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2015 and 2014 were as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun Gross goodwill $ 57,243 $ 182,048 $ 239,291 Accumulated goodwill impairment — (81,722 ) (81,722 ) Balance at December 31, 2014 $ 57,243 $ 100,326 $ 157,569 Goodwill impairment (57,243 ) — (57,243 ) Transfer to assets held for sale — (17,772 ) (17,772 ) Balance at December 31, 2015 $ — $ 82,554 $ 82,554 |
Other Intangible Assets | Intangible assets are as follows: (In thousands) December 31, 2015 December 31, 2014 Wtd. Avg Life (Yrs) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived assets Customer relationships 18 $ 159,200 $ 49,463 $ 109,737 $ 164,500 $ 43,715 $ 120,785 Trade names 8 — — — 3,400 3,060 340 Contract renewal 14 1,845 1,230 615 1,845 1,099 746 Technology 15 400 131 269 400 104 296 Total $ 161,445 $ 50,824 $ 110,621 $ 170,145 $ 47,978 $ 122,167 The carrying amount of other intangible assets by operating segment as of December 31, 2015 and 2014 was as follows: (In thousands) December 31, 2015 December 31, 2014 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Structural Systems $ 19,300 $ 14,433 $ 4,867 $ 19,300 $ 13,046 $ 6,254 Electronic Systems 142,145 36,391 105,754 150,845 34,932 115,913 Total $ 161,445 $ 50,824 $ 110,621 $ 170,145 $ 47,978 $ 122,167 |
Summary of Future Amortization Expense | Future amortization expense by operating segment is expected to be as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun 2016 $ 1,123 $ 7,926 $ 9,049 2017 907 7,927 8,834 2018 737 7,927 8,664 2019 591 7,926 8,517 2020 490 7,883 8,373 Thereafter 1,019 66,165 67,184 $ 4,867 $ 105,754 $ 110,621 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | The components of accrued liabilities consisted of the following: (In thousands) December 31, 2015 2014 Accrued compensation $ 13,521 $ 25,352 Accrued income tax and sales tax 1,513 1,580 Customer deposits 1,758 1,139 Interest payable 58 9,439 Provision for forward loss reserves 11,925 4,734 Other 7,683 9,822 Total $ 36,458 $ 52,066 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long Term Debt Summary | Long-term debt and the current period interest rates were as follows: (In thousands) December 31, 2015 2014 New term loan $ 245,000 $ — Senior unsecured notes (fixed 9.75%) — 200,000 Senior secured term loan (floating 4.75%) — 90,000 Other debt (fixed 5.41%) 26 52 Total Debt 245,026 290,052 Less current portion 26 26 Total long-term debt $ 245,000 $ 290,026 Weighted-average interest rate 3.07 % 8.20 % |
Future Long Term Debt Payments | Future long-term debt payments at December 31, 2015 were as follows: (In thousands) 2016 $ 26 2017 7,812 2018 24,063 2019 27,500 2020 185,625 Total $ 245,026 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | Stock option activity for the year ended December 31, 2015 were as follows: Number of Stock Options Weighted- Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2015 611,977 $ 19.02 Granted 73,000 25.51 Exercised (167,523 ) 18.42 Expired (13,875 ) 18.58 Forfeited (20,088 ) 22.29 Outstanding at December 31, 2015 483,491 $ 20.08 4.1 $ 689 Exerciseable at December 31, 2015 251,891 $ 18.80 3.4 $ 417 |
Schedule of Nonvested Options Activity | Changes in nonvested stock options for the year ended December 31, 2015 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2015 323,565 $ 9.42 Granted 73,000 10.63 Vested (144,877 ) 8.78 Forfeited (20,088 ) 10.40 Nonvested at December 31, 2015 231,600 $ 10.03 |
Schedule of Assumptions Used | The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2015, 2014, and 2013 were as follows: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.13 % 1.67 % 1.44 % Expected volatility 53.72 % 55.27 % 53.89 % Expected dividends — — — Expected term (in months) 47 66 66 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2015 2014 2013 Discount rate used to determine pension expense Pension Plan 4.25 % 4.75 % 4.00 % LaBarge Retirement Plan 3.70 % 4.00 % 3.10 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2015 2014 2013 Discount rate used to determine value of obligations Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % Long-term rate of return - Pension Plan only 7.50 % 7.50 % 8.00 % |
Schedule of Restricted Stock Units Activity | Restricted stock unit activity for the year ended December 31, 2015 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 122,943 $ 21.67 Granted 108,500 25.15 Vested (66,217 ) 20.81 Forfeited (10,035 ) 25.32 Outstanding at December 31, 2015 155,191 $ 24.24 |
Schedule of Performance-based Units Activity | Performance stock activity for the year ended December 31, 2015 is as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 168,158 $ 18.94 Granted 64,000 25.51 Vested (35,504 ) 13.04 Forfeited (63,157 ) 20.65 Outstanding at December 31, 2015 133,497 $ 22.86 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost for both plans are as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Service cost $ 785 $ 693 $ 843 Interest cost 1,350 1,278 1,160 Expected return on plan assets (1,495 ) (1,400 ) (1,222 ) Amortization of actuarial losses 887 419 1,093 Net periodic pension cost $ 1,527 $ 990 $ 1,874 |
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 2015 were as follows: (In thousands) Year Ended December 31, 2015 Amortization of actuarial loss - total before tax (1) $ 887 Tax benefit (330 ) Net of tax $ 557 (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. |
Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan | The obligations and funded status of both plans are as follows: (In thousands) December 31, 2015 2014 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 33,299 $ 28,438 Service cost 785 693 Interest cost 1,350 1,278 Actuarial (gain) loss (2,599 ) 4,117 Benefits paid (1,325 ) (1,227 ) Ending benefit obligation (December 31) $ 31,510 $ 33,299 Change in plan assets Beginning fair value of plan assets (January 1) $ 19,725 $ 18,367 Return on assets (296 ) 669 Employer contribution 1,829 1,916 Benefits paid (1,325 ) (1,227 ) Ending fair value of plan assets (December 31) $ 19,933 $ 19,725 Funded status (under funded) $ (11,577 ) $ (13,574 ) Amounts recognized in the consolidated balance sheet Current liabilities $ 527 $ 464 Non-current liabilities $ 11,050 $ 13,110 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 10,614 $ 6,183 Amortization (887 ) (419 ) Liability (gain) loss (2,599 ) 4,117 Asset loss 1,791 733 Ending unrecognized loss, before tax (December 31) 8,919 10,614 Tax impact (3,316 ) (3,970 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 5,603 $ 6,644 Prepaid benefit cost included in other assets $ 1,984 $ 1,832 Accrued benefit cost included in other liabilities $ 4,646 $ 4,795 (1) Projected benefit obligation equals the accumulated benefit obligation for the plans. |
Company's Pension Plan Asset Allocation, by Asset Category | Our Pension Plan asset allocations at December 31, 2015 and 2014 , by asset category, were as follows: December 31, 2015 2014 Equity securities 74 % 76 % Cash and equivalents 6 % 4 % Debt securities 20 % 20 % Total (1) 100 % 100 % (1) Our overall investment strategy is to achieve an asset allocation within the following ranges to achieve an appropriate rate of return relative to risk. Cash 0-25% Fixed income securities 0-50% Equities 50-95% |
Summary of Return on Plan Asset | (In thousands) Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Cash and other investments $ 1,149 $ — $ — $ 1,149 Fixed income securities 3,986 — — 3,986 Equities (1) 9,468 5,330 — 14,798 Total $ 14,603 $ 5,330 $ — $ 19,933 (In thousands) Year Ended December 31, 2014 Level 1 Level 2 Level 3 Total Cash and other investments $ 886 $ — $ — $ 886 Fixed income securities 3,896 — — 3,896 Equities (1) 9,687 5,256 — 14,943 Total $ 14,469 $ 5,256 $ — $ 19,725 (1) Represents mutual funds and commingled accounts which invest primarily in equities, but may also hold fixed income securities, cash and other investments. |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2015, 2014, and 2013 were as follows: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.13 % 1.67 % 1.44 % Expected volatility 53.72 % 55.27 % 53.89 % Expected dividends — — — Expected term (in months) 47 66 66 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2015 2014 2013 Discount rate used to determine pension expense Pension Plan 4.25 % 4.75 % 4.00 % LaBarge Retirement Plan 3.70 % 4.00 % 3.10 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2015 2014 2013 Discount rate used to determine value of obligations Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % Long-term rate of return - Pension Plan only 7.50 % 7.50 % 8.00 % |
Expected Future Benefit Payments Under Pension Plans | The following benefit payments under both plans, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) Pension Plan LaBarge Retirement Plan 2016 $ 1,038 $ 527 2017 1,062 521 2018 1,172 512 2019 1,213 500 2020 1,286 485 Thereafter 7,442 2,139 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Minimum Rental Payments Under Operating Leases | Future minimum rental payments under operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2015 were as follows: (In thousands) 2016 $ 5,169 2017 2,727 2018 1,166 2019 434 2020 244 Thereafter — Total $ 9,740 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Tax Expense (Benefit) | The provision for income tax expense (benefit) consisted of the following: (In thousands) Years Ended December 31, 2015 2014 2013 Current tax (benefit) expense Federal $ (1,511 ) $ 5,258 $ (3,806 ) State (418 ) 244 432 (1,929 ) 5,502 (3,374 ) Deferred tax (benefit) expense Federal (29,475 ) 1,186 1,173 State (1,904 ) (315 ) 208 (31,379 ) 871 1,381 Income tax (benefit) expense $ (33,308 ) $ 6,373 $ (1,993 ) |
Summary of Deferred Tax Assets (Liabilities) | Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2015 2014 Deferred tax assets: Accrued expenses $ 1,363 $ 1,669 Allowance for doubtful accounts 134 94 Contract overrun reserves 4,412 1,766 Deferred compensation 491 464 Employment-related accruals 2,463 5,375 Environmental reserves 772 778 Federal tax credit carryforwards 7,031 2,696 Inventory reserves 2,703 3,873 Investment in common stock 297 300 Pension obligation 3,299 3,959 State net operating loss carryforwards 1,402 1,065 State tax credit carryforwards 5,937 5,382 Stock-based compensation 2,165 2,082 Workers’ compensation 133 121 Other 1,595 1,072 Total gross deferred tax assets 34,197 30,696 Valuation allowance (7,477 ) (6,882 ) Total gross deferred tax assets, net of valuation allowance 26,720 23,814 Deferred tax liabilities: Depreciation (11,802 ) (12,485 ) Goodwill (2,035 ) (12,105 ) Intangibles (37,891 ) (51,755 ) Prepaid insurance (514 ) (685 ) Section 48(a) adjustment (682 ) (1,334 ) Unbilled receivables — (1,115 ) Total gross deferred tax liabilities (52,924 ) (79,479 ) Net deferred tax liabilities $ (26,204 ) $ (55,665 ) |
Principle Reasons for Variation Between Expected and Effective Tax Rate | The principal reasons for the variation between the statutory and effective tax rates were as follows: Years Ended December 31, 2015 2014 2013 Statutory federal income tax (benefit) rate (35.0)% 35.0% 35.0% State income taxes (net of federal benefit) (1.3) 0.9 2.0 Qualified domestic production activities 0.5 (2.3) (8.9) Research and development tax credits (2.9) (11.3) (48.9) Goodwill impairment 6.7 — — Increase in valuation allowance 0.6 8.5 0.9 Non deductible book expenses 0.2 0.9 1.8 Changes in deferred tax assets 0.1 (5.0) (1.5) Remeasurement of deferred taxes for changes in state tax law — (1.9) — Changes in tax reserves 0.1 (0.7) (0.5) Other (0.2) 0.2 (1.1) Effective income tax (benefit) rate (31.2)% 24.3% (21.2)% |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Balance at January 1, $ 2,803 $ 2,297 $ 1,356 Additions based on tax positions related to the current year 702 668 668 Additions for tax positions for prior years — 31 538 Reductions for tax positions for prior years (48 ) (22 ) — Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations (494 ) (171 ) (265 ) Balance at December 31, $ 2,963 $ 2,803 $ 2,297 |
Major Customers and Concentra43
Major Customers and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk by Major Customers | Net revenues from our top ten customers, including the Boeing Company (“Boeing”) and Raytheon Company (“Raytheon”), represented the following percentages of total net sales: Years Ended December 31, 2015 2014 2013 Boeing 16 % 20 % 18 % Raytheon 9 % 9 % 10 % Top ten customers 56 % 59 % 57 % Boeing and Raytheon represented the following percentages of total accounts receivable: December 31, 2015 2014 Boeing 13 % 12 % Raytheon 12 % 10 % |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment was as follows: (In thousands) Years Ended December 31, 2015 2014 2013 Net Revenues SS $ 273,319 $ 319,956 $ 315,232 ES 392,692 422,089 421,418 Total Net Revenues $ 666,011 $ 742,045 $ 736,650 Segment Operating (Loss) Income (1) SS (2)(3) $ (53,010 ) $ 34,949 $ 19,008 ES (4) (4,472 ) 34,599 37,030 (57,482 ) 69,548 56,038 Corporate General and Administrative Expenses (1)(5) (17,827 ) (17,781 ) (16,735 ) Operating (Loss) Income $ (75,309 ) $ 51,767 $ 39,303 Depreciation and Amortization Expenses SS $ 9,417 $ 10,959 $ 12,406 ES 17,267 17,928 18,346 Corporate Administration 162 137 174 Total Depreciation and Amortization Expenses $ 26,846 $ 29,024 $ 30,926 Capital Expenditures SS $ 11,559 $ 12,742 $ 8,287 ES 4,419 5,782 5,000 Corporate Administration 10 30 116 Total Capital Expenditures $ 15,988 $ 18,554 $ 13,403 (1) Includes cost not allocated to either the SS or ES operating segments. (2) The results for 2015 includes approximately $57.2 million of goodwill impairment charge. (3) The results for 2013 includes approximately $14.1 million in charges related to fourth quarter asset impairment charges of $5.7 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; forward loss reserves of $3.9 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; and inventory write-offs of $1.9 million on the Embraer Legacy 450/500 contracts. (4) The results for 2015 includes approximately $32.9 million of an intangible asset impairment charge. (5) The results for 2015, 2014 and 2013 include approximately zero , $1.2 million and $0.6 million , respectively, of workers’ compensation insurance expenses included in gross profit and not allocated to the operating segments. |
Segment Assets | Corporate assets include assets not specifically identified with a business segment, including cash. The following table summarizes our segment assets for 2015 and 2014 : (In thousands) December 31, 2015 2014 Total Assets SS $ 179,134 $ 245,925 ES 363,227 427,719 Corporate Administration 19,059 73,955 Total Assets $ 561,420 $ 747,599 Goodwill and Intangibles SS $ 4,866 $ 63,497 ES 207,595 249,176 Total Goodwill and Intangibles $ 212,461 $ 312,673 |
Supplemental Quarterly Financ45
Supplemental Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The quarterly financial results presented in the table below reflects the impact of the restatement adjustments of all the Restated Periods. (In thousands, except per share amounts) Three Months Ended 2015 Three Months Ended 2014 Dec 31 Oct 3 Jul 4 Apr 4 Dec 31 Sep 27 Jun 29 Mar 30 Net Revenues $ 156,576 $ 161,670 $ 174,845 $ 172,920 $ 187,612 $ 188,164 $ 186,516 $ 179,753 Gross Profit 22,796 20,028 31,207 26,761 33,627 33,112 37,678 35,915 (Loss) Income Before Taxes (90,170 ) (16,447 ) 3,061 (3,034 ) 4,034 4,687 9,816 7,703 Income Tax (Benefit) Expense (26,594 ) (6,932 ) 1,279 (1,061 ) (1,122 ) 1,754 3,197 2,544 Net (Loss) Income $ (63,576 ) $ (9,515 ) $ 1,782 $ (1,973 ) $ 5,156 $ 2,933 $ 6,619 $ 5,159 (Loss) Earnings Per Share Basic (loss) earnings per share $ (5.74 ) $ (0.86 ) $ 0.16 $ (0.18 ) $ 0.47 $ 0.27 $ 0.61 $ 0.48 Diluted (loss) earnings per share $ (5.74 ) $ (0.86 ) $ 0.16 $ (0.18 ) $ 0.46 $ 0.26 $ 0.60 $ 0.46 |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Oct. 03, 2015USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | ||||||
Number of reportable segments | Segment | 2 | |||||
Cash equivalent maturity period | three months or less | |||||
Significant Accounting Policies [Line Items] | ||||||
Asset impairments | $ 0 | $ 0 | $ 6,975 | |||
Production cost of contracts | $ 10,290 | 10,290 | 11,727 | |||
Goodwill impairment | 57,200 | 57,243 | 0 | 0 | ||
Intangible asset impairment | 32,900 | 32,937 | 0 | 0 | ||
Forward loss provision | $ 5,200 | |||||
Provision for forward loss reserves | 11,925 | 11,925 | 4,734 | |||
Debt issuance costs | 4,300 | 4,300 | ||||
Total debt | 245,026 | $ 245,026 | 290,052 | |||
Maximum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of intangible assets (in years) | 18 years | |||||
Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Estimated useful life of intangible assets (in years) | 3 years | |||||
Income tax benefit percentage | 50.00% | |||||
Accrued Liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Provision for forward loss reserves | $ 7,600 | 4,200 | ||||
Other Long-term Liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Provision for forward loss reserves | 2,400 | $ 1,000 | ||||
Structural Systems | ||||||
Significant Accounting Policies [Line Items] | ||||||
Asset impairments | 7,000 | |||||
Goodwill impairment | $ 57,241 | $ 57,243 | ||||
Forward loss provision | $ 10,000 | 5,200 | ||||
Structural Systems | Embraer Legacy 400/500 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Inventory write-down | 1,900 | 1,900 | ||||
Asset impairments | 5,700 | 5,700 | ||||
Forward loss provision | 3,900 | 3,900 | ||||
Structural Systems | Boeing 777 | ||||||
Significant Accounting Policies [Line Items] | ||||||
Asset impairments | 1,300 | 1,300 | ||||
Forward loss provision | $ 1,300 | $ 1,300 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Assets Held For Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Total current assets | $ 41,636 | $ 0 |
Disposal Group | ES | ||
Assets | ||
Accounts receivable (less allowance for doubtful accounts of $24) | 9,395 | |
Allowance for doubtful accounts | 24 | |
Inventory | 6,453 | |
Deferred income taxes | 1,246 | |
Other current assets | 3,315 | |
Total current assets | 20,409 | |
Property and equipment, net of accumulated depreciation of $8,509 | 1,941 | |
Accumulated depreciation | 8,509 | |
Goodwill | 17,772 | |
Other Intangible Assets | 1,514 | |
Preliminary total assets to be sold | 41,636 | |
Liabilities | ||
Accounts payable | 4,836 | |
Accrued liabilities | 1,944 | |
Preliminary total liabilities to be sold | $ 6,780 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||||||||||
Net (Loss) Income | $ (63,576) | $ (9,515) | $ 1,782 | $ (1,973) | $ 5,156 | $ 2,933 | $ 6,619 | $ 5,159 | $ (73,282) | $ 19,867 | $ 11,378 |
Weighted-average number of common shares outstanding | |||||||||||
Basic weighted-average common shares outstanding | 11,047 | 10,897 | 10,695 | ||||||||
Dilutive potential common shares | 0 | 229 | 157 | ||||||||
Diluted weighted-average common shares outstanding | 11,047 | 11,126 | 10,852 | ||||||||
(Loss) Earnings Per Share | |||||||||||
Basic (in dollars per share) | $ (5.74) | $ (0.86) | $ 0.16 | $ (0.18) | $ 0.47 | $ 0.27 | $ 0.61 | $ 0.48 | $ (6.63) | $ 1.82 | $ 1.06 |
Diluted (in dollars per share) | $ (5.74) | $ (0.86) | $ 0.16 | $ (0.18) | $ 0.46 | $ 0.26 | $ 0.60 | $ 0.46 | $ (6.63) | $ 1.79 | $ 1.05 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options And Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and stock units | 778 | 218 | 410 |
Restructuring Activities (Detai
Restructuring Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges accrued during period | $ 0 | $ 1,903 |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 2,168 | |
Cash Payments | (221) | |
Change in Estimates | (44) | |
Ending balance | 1,903 | |
Severance and benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges accrued during period | 0 | 722 |
Remaining additional expenses expected to be accrued | 100 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 987 | |
Cash Payments | (221) | |
Change in Estimates | (44) | |
Ending balance | 722 | |
Lease termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges accrued during period | 0 | 1,181 |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | 0 | |
Charges | 1,181 | |
Cash Payments | 0 | |
Change in Estimates | 0 | |
Ending balance | 1,181 | |
ES | Severance and benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges accrued during period | 700 | 700 |
Restructuring Reserve [Roll Forward] | ||
Ending balance | 700 | |
SS | Severance benefits and loss on early exit from leases | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges accrued during period | 1,200 | $ 1,200 |
Restructuring Reserve [Roll Forward] | ||
Ending balance | $ 1,200 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring Measurement - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 4,587 | $ 44,554 |
Interest rate cap hedges | 963 | 0 |
Total Assets | 5,550 | 44,554 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4,587 | 44,554 |
Interest rate cap hedges | 0 | 0 |
Total Assets | 4,587 | 44,554 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate cap hedges | 963 | 0 |
Total Assets | 963 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate cap hedges | 0 | 0 |
Total Assets | $ 0 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional amount | $ 133,707 | $ 0 |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 0 |
Other Long Term Assets | ||
Derivative [Line Items] | ||
Derivative asset | 962 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate cap premiums | ||
Derivative [Line Items] | ||
Notional amount | 133,707 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate cap premiums | Other Current Assets | ||
Derivative [Line Items] | ||
Derivative asset | 1 | 0 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate cap premiums | Other Long Term Assets | ||
Derivative [Line Items] | ||
Derivative asset | $ 962 | $ 0 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 61,840 | $ 77,033 |
Work in process | 49,299 | 61,458 |
Finished goods | 10,073 | 14,116 |
Inventory, Gross, Total | 121,212 | 152,607 |
Less progress payments | 5,808 | 9,765 |
Total | $ 115,404 | $ 142,842 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 15,454 | $ 15,006 | |
Buildings and improvements | 44,313 | 45,636 | |
Machinery and equipment | 127,934 | 131,263 | |
Furniture and equipment | 24,187 | 25,975 | |
Construction in progress | 13,196 | 9,645 | |
Property, Plant and Equipment, Gross, Total | 225,084 | 227,525 | |
Less accumulated depreciation | 128,533 | 128,457 | |
Total | 96,551 | 99,068 | |
Accrued compensation | 13,521 | 25,352 | |
Depreciation expense | $ 15,700 | $ 15,300 | $ 15,600 |
Buildings and Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Buildings and Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | ||||
Gross goodwill | $ 239,291,000 | |||
Accumulated goodwill impairment | (81,722,000) | |||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | $ 157,569,000 | |||
Goodwill impairment | $ (57,200,000) | (57,243,000) | 0 | $ 0 |
Transfer to assets held for sale | (17,772,000) | |||
Goodwill ending balance | 82,554,000 | 82,554,000 | 157,569,000 | |
Structural Systems | ||||
Goodwill [Line Items] | ||||
Gross goodwill | 57,243,000 | |||
Accumulated goodwill impairment | 0 | |||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 57,243,000 | |||
Goodwill impairment | (57,241,000) | (57,243,000) | ||
Transfer to assets held for sale | 0 | |||
Goodwill ending balance | 0 | 0 | 57,243,000 | |
Electronic Systems | ||||
Goodwill [Line Items] | ||||
Gross goodwill | 182,048,000 | |||
Accumulated goodwill impairment | (81,722,000) | |||
Goodwill [Roll Forward] | ||||
Goodwill beginning balance | 100,326,000 | |||
Goodwill impairment | 0 | |||
Transfer to assets held for sale | (17,772,000) | |||
Goodwill ending balance | $ 82,554,000 | $ 82,554,000 | $ 100,326,000 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | $ 82,554,000 | $ 82,554,000 | $ 157,569,000 | |
Goodwill impairment | 57,200,000 | 57,243,000 | 0 | $ 0 |
Intangible asset impairment | 32,900,000 | 32,937,000 | 0 | 0 |
Amortization expense of intangible asset | $ 10,000,000 | 10,400,000 | $ 10,900,000 | |
Minimum | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Acquired intangible assets amortization period | 3 years | |||
Maximum | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Acquired intangible assets amortization period | 18 years | |||
SS | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 0 | $ 0 | 57,243,000 | |
Goodwill impairment | $ 57,241,000 | 57,243,000 | ||
ES | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 92,000,000 | |||
Percentage exceeded from carrying value | 42.00% | |||
Miltec | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill | 8,400,000 | |||
Percentage exceeded from carrying value | 18.00% | |||
Trade names | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Indefinite-lived intangible asset | $ 0 | $ 0 | $ 32,900,000 | |
Intangible asset impairment | $ 32,900,000 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Carrying Amount of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 161,445 | $ 170,145 |
Accumulated Amortization | 50,824 | 47,978 |
Net Carrying Amount | $ 110,621 | 122,167 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 18 years | |
Gross Carrying Amount | $ 159,200 | 164,500 |
Accumulated Amortization | 49,463 | 43,715 |
Net Carrying Amount | $ 109,737 | 120,785 |
Contract renewal | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 14 years | |
Gross Carrying Amount | $ 1,845 | 1,845 |
Accumulated Amortization | 1,230 | 1,099 |
Net Carrying Amount | $ 615 | 746 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 15 years | |
Gross Carrying Amount | $ 400 | 400 |
Accumulated Amortization | 131 | 104 |
Net Carrying Amount | $ 269 | 296 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 8 years | |
Gross Carrying Amount | $ 0 | 3,400 |
Accumulated Amortization | 0 | 3,060 |
Net Carrying Amount | 0 | 340 |
Structural Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,300 | 19,300 |
Accumulated Amortization | 14,433 | 13,046 |
Net Carrying Amount | 4,867 | 6,254 |
Electronic Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 142,145 | 150,845 |
Accumulated Amortization | 36,391 | 34,932 |
Net Carrying Amount | $ 105,754 | $ 115,913 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Future Amortization Expense of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 9,049 | |
2,017 | 8,834 | |
2,018 | 8,664 | |
2,019 | 8,517 | |
2,020 | 8,373 | |
Thereafter | 67,184 | |
Net Carrying Amount | 110,621 | $ 122,167 |
Structural Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | 1,123 | |
2,017 | 907 | |
2,018 | 737 | |
2,019 | 591 | |
2,020 | 490 | |
Thereafter | 1,019 | |
Net Carrying Amount | 4,867 | 6,254 |
Electronic Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | 7,926 | |
2,017 | 7,927 | |
2,018 | 7,927 | |
2,019 | 7,926 | |
2,020 | 7,883 | |
Thereafter | 66,165 | |
Net Carrying Amount | $ 105,754 | $ 115,913 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 13,521 | $ 25,352 |
Accrued income tax and sales tax | 1,513 | 1,580 |
Customer deposits | 1,758 | 1,139 |
Interest payable | 58 | 9,439 |
Provision for forward loss reserves | 11,925 | 4,734 |
Other | 7,683 | 9,822 |
Total | $ 36,458 | $ 52,066 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total Debt | $ 245,026 | $ 290,052 |
Less current portion | 26 | 26 |
Total long-term debt | $ 245,000 | $ 290,026 |
Weighted-average interest rate (percent) | 3.07% | 8.20% |
New Term Loan | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 245,000 | $ 0 |
Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 0 | 200,000 |
Fixed rate (percent) | 9.75% | |
Senior Secured Term Loan | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 0 | 90,000 |
Floating rate (percent) | 4.75% | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $ 26 | $ 52 |
Fixed rate (percent) | 5.41% |
Long-Term Debt - Future Long-Te
Long-Term Debt - Future Long-Term Debt Payment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 26 | |
2,017 | 7,812 | |
2,018 | 24,063 | |
2,019 | 27,500 | |
2,020 | 185,625 | |
Total Debt | $ 245,026 | $ 290,052 |
Long-Term Debt - Additional inf
Long-Term Debt - Additional information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2015 | Jun. 30, 2015 | Oct. 03, 2015 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | |
Interest rate cap premiums | ||||||
Debt Instrument [Line Items] | ||||||
Hedging asset | $ 135,000,000 | |||||
Payments for hedging asset | $ 1,000,000 | |||||
New Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 245,000,000 | $ 0 | ||||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt outstanding | 0 | $ 200,000,000 | ||||
New Credit Facilities | First Two Years | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment percentage of principal | 5.00% | |||||
New Credit Facilities | Third Year | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment percentage of principal | 7.50% | |||||
New Credit Facilities | Fourth and Fifth Year | ||||||
Debt Instrument [Line Items] | ||||||
Prepayment percentage of principal | 10.00% | |||||
New Credit Facilities | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Fixed rate spread (percent) | 0.50% | |||||
New Credit Facilities | Eurodollar Rate | ||||||
Debt Instrument [Line Items] | ||||||
Fixed rate spread (percent) | 1.00% | |||||
New Credit Facilities | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (percent) | 0.175% | |||||
New Credit Facilities | Minimum | LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate spread (percent) | 1.50% | |||||
New Credit Facilities | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate spread (percent) | 0.50% | |||||
New Credit Facilities | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee (percent) | 0.30% | |||||
New Credit Facilities | Maximum | LIBOR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate spread (percent) | 2.75% | |||||
New Credit Facilities | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate spread (percent) | 1.75% | |||||
New Credit Facilities | New Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of instrument | $ 275,000,000 | |||||
Term of debt instrument | 5 years | |||||
Proceeds from line of credit | 275,000,000 | |||||
Repayments of line of credit | 30,000,000 | |||||
New Credit Facilities | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of instrument | $ 200,000,000 | |||||
Proceeds from issuance of debt | 65,000,000 | |||||
Debt issuance costs | 4,800,000 | |||||
Repayments of line of credit | 65,000,000 | |||||
Remaining borrowing capacity | 198,500,000 | |||||
Outstanding standby letters of credit | 1,500,000 | |||||
Existing Credit Facilities | New Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt extinguished | 80,000,000 | |||||
Debt issuance costs written off | $ 2,800,000 | |||||
Existing Credit Facilities | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs written off | $ 2,100,000 | 2,100,000 | ||||
Debt outstanding | 200,000,000 | $ 200,000,000 | ||||
Call premium incurred on extinguishment of debt | $ 9,800,000 | $ 9,800,000 |
Shareholders' Equity (Detail)
Shareholders' Equity (Detail) - shares | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)plan$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Mar. 20, 2007shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of incentive plans | plan | 2 | |||
Options, Granted (in shares) | shares | 73,000 | |||
Weighted-average fair value of grants (in dollars per share) | $ / shares | $ 10.63 | |||
Outstanding at end of period, Weighted average remaining contractual term | 4 years 1 month | |||
Total fair value of options expensed before tax benefits | $ 0 | $ 0 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, Granted (in shares) | shares | 73,000 | 71,000 | 190,500 | |
Weighted-average fair value of grants (in dollars per share) | $ / shares | $ 10.63 | $ 12.62 | $ 10.95 | |
Option vesting term | 4 years | |||
Aggregate intrinsic value of stock options exercised | $ 2,300,000 | $ 1,000,000 | $ 2,600,000 | |
Cash received from the exercise of options | 3,100,000 | 2,300,000 | 8,800,000 | |
Tax benefits realized for the tax deductions from options exercised | $ 900,000 | 400,000 | 1,000,000 | |
Options vested (in shares) | shares | 483,491 | |||
Weighted average exercise price (in dollars per share) | $ / shares | $ 20.08 | |||
Aggregate intrinsic value | $ 700,000 | |||
Outstanding at end of period, Weighted average remaining contractual term | 4 years 1 month | |||
Share-based compensation expense | $ 1,200,000 | 1,500,000 | 1,200,000 | |
Unrecognized compensation cost related to stock option | $ 1,700,000 | |||
Weighted average period | 2 years 2 months | |||
Total fair value of options expensed before tax benefits | $ 1,300,000 | 1,300,000 | 1,100,000 | |
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option vesting term | 3 years | |||
Share-based compensation expense | $ 1,800,000 | $ 1,300,000 | $ 900,000 | |
Weighted average period | 1 year 9 months 18 days | |||
Awards, Granted (in shares) | shares | 108,500 | 86,300 | 65,550 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.15 | $ 24.74 | $ 18.75 | |
Vesting percentage in year one | 33.00% | |||
Vesting percentage in year two | 33.00% | |||
Vesting percentage in year three | 34.00% | |||
Compensation not yet recognized | $ 2,300,000 | |||
Fair value of awards vested in period | 1,800,000 | $ 1,300,000 | $ 1,100,000 | |
Tax benefit realized on vesting of options | 700,000 | 500,000 | 400,000 | |
Performance Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 500,000 | $ 1,000,000 | $ 300,000 | |
Weighted average period | 1 year 3 months 18 days | |||
Awards, Granted (in shares) | shares | 64,000 | 67,500 | 85,500 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 25.51 | $ 24.90 | $ 16.15 | |
Compensation not yet recognized | $ 1,400,000 | |||
Fair value of awards vested in period | 900,000 | $ 0 | $ 0 | |
Tax benefit realized on vesting of options | $ 300,000 | $ 0 | $ 0 | |
2007 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | shares | 56,726 | 1,200,000 | ||
Shares reserved for future issuance other than stock options | shares | 400,000 | |||
2013 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future issuance | shares | 626,727 | 1,040,000 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Shares | |
Options, Outstanding Beginning Balance (in shares) | shares | 611,977 |
Options, Granted (in shares) | shares | 73,000 |
Options, Exercised (in shares) | shares | (167,523) |
Option, Expired (in shares) | shares | (13,875) |
Options, Forfeited (in shares) | shares | (20,088) |
Options, Outstanding Ending Balance (in shares) | shares | 483,491 |
Options, Exercisable at end of period (in shares) | shares | 251,891 |
Weighted-Average Exercise Price Per Share | |
Options, Beginning Balance (in dollars per share) | $ / shares | $ 19.02 |
Options, Granted (in dollars per share) | $ / shares | 25.51 |
Options, Exercised (in dollars per share) | $ / shares | 18.42 |
Options, Expired, (in dollars per share) | $ / shares | 18.58 |
Options, Forfeited (in dollars per share) | $ / shares | 22.29 |
Options, Ending Balance (in dollars per share) | $ / shares | 20.08 |
Options, Exercisable at end of period (in dollars per share) | $ / shares | $ 18.80 |
Options, Outstanding at end of period, Weighted Average Remaining Contractual Life (Years) | 4 years 1 month |
Options, Exercisable at end of period, Weighted Average Remaining Contractual Life (Years) | 3 years 5 months |
Options, Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 689 |
Options, Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 417 |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Nonvested Stock Options (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Options, Nonvested, Beginning balance (shares) | shares | 323,565 |
Options, Nonvested, Granted (in shares) | shares | 73,000 |
Options, Nonvested, Vested (shares) | shares | (144,877) |
Options, Nonvested, Forfeited (shares) | shares | (20,088) |
Options, Nonvested, Ending balance (shares) | shares | 231,600 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning balance, (in dollars per share) | $ / shares | $ 9.42 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Granted, (in dollars per share) | $ / shares | 10.63 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Vested, (in dollars per share) | $ / shares | 8.78 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Forfeited, (in dollars per share) | $ / shares | 10.40 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Ending balance, (in dollars per share) | $ / shares | $ 10.03 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used for Estimating Fair Value of Share Based Payment Award (Detail) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percent) | 1.13% | 1.67% | 1.44% |
Expected volatility (percent) | 53.72% | 55.27% | 53.89% |
Expected dividends | $ 0 | $ 0 | $ 0 |
Expected term (in months) | 47 months | 66 months | 66 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Units | |||
Outstanding | |||
Awards, Outstanding at beginning of period (in shares) | 122,943 | ||
Awards, Granted (in shares) | 108,500 | 86,300 | 65,550 |
Awards, Vested (in shares) | (66,217) | ||
Awards, Forfeited (in shares) | (10,035) | ||
Awards, Outstanding at ending of period (in shares) | 155,191 | 122,943 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 21.67 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 25.15 | $ 24.74 | $ 18.75 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 20.81 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 25.32 | ||
Outstanding at ending of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.24 | $ 21.67 | |
Performance Stock Units | |||
Outstanding | |||
Awards, Outstanding at beginning of period (in shares) | 168,158 | ||
Awards, Granted (in shares) | 64,000 | 67,500 | 85,500 |
Awards, Vested (in shares) | (35,504) | ||
Awards, Forfeited (in shares) | (63,157) | ||
Awards, Outstanding at ending of period (in shares) | 133,497 | 168,158 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 18.94 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 25.51 | $ 24.90 | $ 16.15 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 13.04 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 20.65 | ||
Outstanding at ending of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 22.86 | $ 18.94 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)CompensationPlan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of unfunded supplemental retirement plans | CompensationPlan | 3 | |||
Accumulated benefit obligations | $ 0.9 | $ 0.9 | ||
Number of company sponsored 401(K) defined contribution plans | CompensationPlan | 2 | |||
Provision for matching and profit sharing contribution | $ 3.2 | 3.3 | $ 3.1 | |
Estimated net actuarial loss for the defined benefit pension plan | 0.8 | |||
Excess of accumulated benefit obligation over fair value of plan assets | 11.6 | |||
Pension liability | 5.6 | 6.6 | ||
Estimated employer Contribution to pension plan in next fiscal year | $ 0.9 | |||
Plan One covering all employees, other than employees of Miltec | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution by employee towards defined benefit plan | 25.00% | |||
Contribution by employer towards defined benefit plan | 50.00% | |||
Employee contribution compensation limit | 6.00% | |||
Plan Two covering only the employees at the Company's Miltec | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution by employee towards defined benefit plan | 100.00% | |||
Employee contribution compensation limit | 5.00% | |||
Percent of annual compensation | 3.00% | |||
Plan Two covering only the employees at the Company's Miltec | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percent of annual compensation | 0.00% | |||
Plan Two covering only the employees at the Company's Miltec | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percent of annual compensation | 7.00% | |||
Deferred Compensation Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability for LaBarge Deferred Compensation Plan | $ 0.5 | 0.3 | ||
Interest on LaBarge Deferred Compensation Plan | $ 1.7 | $ 2 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Pension Cost for Defined Benefit Pension Plan and Retirement Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 785 | $ 693 | $ 843 |
Interest cost | 1,350 | 1,278 | 1,160 |
Expected return on plan assets | (1,495) | (1,400) | (1,222) |
Amortization of actuarial losses | 887 | 419 | 1,093 |
Net periodic pension cost | $ 1,527 | $ 990 | $ 1,874 |
Employee Benefit Plans - Reclas
Employee Benefit Plans - Reclassifications from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Amortization of actuarial loss and prior service costs-total before tax | $ 887 | ||
Tax benefit | (330) | $ 156 | $ 408 |
Net of tax | $ 557 | $ (263) | $ (685) |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 33,299 | $ 28,438 | |
Service cost | 785 | 693 | $ 843 |
Interest cost | 1,350 | 1,278 | 1,160 |
Actuarial (gain) loss | (2,599) | 4,117 | |
Benefits paid | (1,325) | (1,227) | |
Ending benefit obligation (December 31) | 31,510 | 33,299 | 28,438 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 19,725 | 18,367 | |
Return on assets | (296) | 669 | |
Employer contribution | 1,829 | 1,916 | |
Benefits paid | (1,325) | (1,227) | |
Fair value of plan assets at end of year | 19,933 | 19,725 | 18,367 |
Funded status (under funded) | (11,577) | (13,574) | |
Amounts recognized in the consolidated balance sheet | |||
Current liabilities | 527 | 464 | |
Non-current liabilities | 11,050 | 13,110 | |
Unrecognized loss included in accumulated other comprehensive loss | |||
Unrecognized loss before tax, beginning balance | 10,614 | 6,183 | |
Amortization | (887) | (419) | (1,093) |
Liability (gain) loss | (2,599) | 4,117 | |
Asset loss | 1,791 | 733 | |
Unrecognized loss before tax, ending balance | 8,919 | 10,614 | $ 6,183 |
Tax impact | (3,316) | (3,970) | |
Unrecognized loss included in accumulated other comprehensive loss, net of tax | 5,603 | 6,644 | |
Prepaid benefit cost included in other assets | 1,984 | 1,832 | |
Accrued benefit cost included in other liabilities | $ 4,646 | $ 4,795 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plan Asset Allocations (Detail) | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 74.00% | 76.00% |
Cash and equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 6.00% | 4.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 20.00% | 20.00% |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocation Ranges (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 0.00% |
Maximum % | 25.00% |
Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 0.00% |
Maximum % | 50.00% |
Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 50.00% |
Maximum % | 95.00% |
Employee Benefit Plans - Return
Employee Benefit Plans - Return on Current and Target Asset Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 19,933 | $ 19,725 | $ 18,367 |
Cash and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,149 | 886 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3,986 | 3,896 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 14,798 | 14,943 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 14,603 | 14,469 | |
Level 1 | Cash and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,149 | 886 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3,986 | 3,896 | |
Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 9,468 | 9,687 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 5,330 | 5,256 | |
Level 2 | Cash and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 2 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 5,000 | 5,256 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Cash and other investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan | |||
Discount rate used to determine pension expense : | |||
Discount rate | 4.25% | 4.75% | 4.00% |
Discount rate used to determine value of obligations | |||
Discount rate | 4.55% | 4.25% | 4.75% |
Long term rate of return | 7.50% | 7.50% | 8.00% |
Retirement Plan | La Barge | |||
Discount rate used to determine pension expense : | |||
Discount rate | 3.70% | 4.00% | 3.10% |
Discount rate used to determine value of obligations | |||
Discount rate | 4.00% | 3.70% | 4.00% |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments Under Pension Plans (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 1,038 |
2,017 | 1,062 |
2,018 | 1,172 |
2,019 | 1,213 |
2,020 | 1,286 |
Thereafter | 7,442 |
Retirement Plan | La Barge | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | 527 |
2,017 | 521 |
2,018 | 512 |
2,019 | 500 |
2,020 | 485 |
Thereafter | $ 2,139 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Lease term, Minimum | 1 year | ||
Lease term, Maximum | 10 years | ||
Lease rental expense | $ 8.5 | $ 7.3 | $ 7.9 |
Leases - Rental Payments Under
Leases - Rental Payments Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 5,169 |
2,017 | 2,727 |
2,018 | 1,166 |
2,019 | 434 |
2,020 | 244 |
Thereafter | 0 |
Total | $ 9,740 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax (benefit) expense | |||||||||||
Federal | $ (1,511) | $ 5,258 | $ (3,806) | ||||||||
State | (418) | 244 | 432 | ||||||||
Current Income Tax Expense (Benefit), Total | (1,929) | 5,502 | (3,374) | ||||||||
Deferred tax (benefit) expense | |||||||||||
Federal | (29,475) | 1,186 | 1,173 | ||||||||
State | (1,904) | (315) | 208 | ||||||||
Deferred Income Tax Expense (Benefit), Total | (31,379) | 871 | 1,381 | ||||||||
Income tax (benefit) expense | $ (26,594) | $ (6,932) | $ 1,279 | $ (1,061) | $ (1,122) | $ 1,754 | $ 3,197 | $ 2,544 | $ (33,308) | $ 6,373 | $ (1,993) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Excess tax benefits from share-based compensation | $ 626 | $ 140 | $ (336) | |
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 7,031 | 2,696 | ||
Tax credit carryforwards valuation allowance | 7,477 | 6,882 | ||
Goodwill impairment impact on income tax provision | 7,200 | |||
Federal research and development tax credit benefits recognized | 2,600 | 2,400 | 2,000 | |
Tax credits for the year | 4,500 | |||
Interest and penalties accrued | 100 | 100 | 100 | |
Unrecognized tax benefits | 2,963 | $ 2,803 | $ 2,297 | $ 1,356 |
Unrecognized tax benefits that would impact effective tax rate | 2,100 | |||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 7,900 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 10,000 | |||
Tax credit carryforwards valuation allowance | 9,100 | |||
Net operating loss carryforwards | 30,200 | |||
Net operating loss carryforwards valuation allowance | $ 27,100 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Accrued expenses | $ 1,363 | $ 1,669 |
Allowance for doubtful accounts | 134 | 94 |
Contract overrun reserves | 4,412 | 1,766 |
Deferred compensation | 491 | 464 |
Employment-related accruals | 2,463 | 5,375 |
Environmental reserves | 772 | 778 |
Federal tax credit carryforwards | 7,031 | 2,696 |
Inventory reserves | 2,703 | 3,873 |
Investment in common stock | 297 | 300 |
Pension obligation | 3,299 | 3,959 |
State net operating loss carryforwards | 1,402 | 1,065 |
State net operating loss carryforwards | 5,937 | 5,382 |
Stock-based compensation | 2,165 | 2,082 |
Workers’ compensation | 133 | 121 |
Other | 1,595 | 1,072 |
Total gross deferred tax assets | 34,197 | 30,696 |
Valuation allowance | (7,477) | (6,882) |
Total gross deferred tax assets, net of valuation allowance | 26,720 | 23,814 |
Deferred tax liabilities: | ||
Depreciation | (11,802) | (12,485) |
Goodwill | (2,035) | (12,105) |
Intangibles | (37,891) | (51,755) |
Prepaid insurance | (514) | (685) |
Section 48(a) adjustment | (682) | (1,334) |
Unbilled receivables | 0 | (1,115) |
Total gross deferred tax liabilities | (52,924) | (79,479) |
Net deferred tax liabilities | $ (26,204) | $ (55,665) |
Income Taxes - Variation Betwee
Income Taxes - Variation Between Expected and Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax (benefit) rate (percent) | (35.00%) | 35.00% | 35.00% |
State income taxes (net of federal benefit) (percent) | (1.30%) | 0.90% | 2.00% |
Qualified domestic production activities (percent) | 0.50% | (2.30%) | (8.90%) |
Research and development tax credits (percent) | (2.90%) | (11.30%) | (48.90%) |
Goodwill impairment (percent) | 6.70% | 0.00% | 0.00% |
Increase in valuation allowance (percent) | 0.60% | 8.50% | 0.90% |
Non deductible book expenses (percent) | 0.20% | 0.90% | 1.80% |
Changes in deferred tax assets (percent) | 0.10% | (5.00%) | (1.50%) |
Remeasurement of deferred taxes for changes in state tax law (percent) | 0.00% | (1.90%) | 0.00% |
Changes in tax reserves (percent) | 0.10% | (0.70%) | (0.50%) |
Other (percent) | (0.20%) | 0.20% | (1.10%) |
Effective income tax (benefit) rate (percent) | (31.20%) | 24.30% | (21.20%) |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,803 | $ 2,297 | $ 1,356 |
Additions based on tax positions related to the current year | 702 | 668 | 668 |
Additions for tax positions for prior years | 0 | 31 | 538 |
Reductions for tax positions for prior years | (48) | (22) | 0 |
Reduction to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations | (494) | (171) | (265) |
Ending Balance | $ 2,963 | $ 2,803 | $ 2,297 |
Contingencies (Detail)
Contingencies (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($)AirCraft | |
Loss Contingencies [Line Items] | |
Number of Boeing aircraft subject to lawsuit | AirCraft | 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 |
Major Customers and Concentra86
Major Customers and Concentrations of Credit Risk - Sales to Major Customers (Detail) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Boeing | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 16.00% | 20.00% | 18.00% |
Raytheon | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 9.00% | 9.00% | 10.00% |
Top ten customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 56.00% | 59.00% | 57.00% |
Major Customers and Concentra87
Major Customers and Concentrations of Credit Risk - Receivables from Customers (Detail) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Boeing | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 13.00% | 12.00% |
Raytheon | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 12.00% | 10.00% |
Major Customers and Concentra88
Major Customers and Concentrations of Credit Risk - Additional Information (Detail) - Foreign Customers Worldwide - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Revenues | $ 60.2 | $ 66.7 | $ 66 |
Maximum | |||
Concentration Risk [Line Items] | |||
Percentage of sales | 2.00% | 2.00% | 2.00% |
Business Segment Information -
Business Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2015Segment | Mar. 12, 2016USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 2 | |
ES | Disposal Group Sold | Pittsburgh, Pennsylvania Operations | Subsequent Event | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Preliminary sales price | $ 38.5 | |
ES | Disposal Group Sold | Miltec Operations | Subsequent Event | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Preliminary sales price | $ 14.6 |
Business Segment Information 90
Business Segment Information - Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | $ 156,576 | $ 161,670 | $ 174,845 | $ 172,920 | $ 187,612 | $ 188,164 | $ 186,516 | $ 179,753 | $ 666,011 | $ 742,045 | $ 736,650 | |
Segment Operating Income (Loss) | (57,482) | 69,548 | 56,038 | |||||||||
Corporate General and Administrative Expenses | (17,827) | (17,781) | (16,735) | |||||||||
Operating (Loss) Income | (75,309) | 51,767 | 39,303 | |||||||||
Depreciation and amortization | 26,846 | 29,024 | 30,926 | |||||||||
Capital Expenditures | 15,988 | 18,554 | 13,403 | |||||||||
Goodwill impairment | 57,200 | 57,243 | 0 | 0 | ||||||||
Impairment charges | 0 | 0 | 6,975 | |||||||||
Forward loss provision | $ 5,200 | |||||||||||
Intangible asset impairment | 32,900 | 32,937 | 0 | 0 | ||||||||
Workers' compensation expense | 0 | 1,200 | 600 | |||||||||
SS | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill impairment | $ 57,241 | 57,243 | ||||||||||
Asset impairment charges | 14,100 | |||||||||||
Impairment charges | 7,000 | |||||||||||
Forward loss provision | $ 10,000 | 5,200 | ||||||||||
SS | Embraer Legacy 400/500 | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Impairment charges | 5,700 | 5,700 | ||||||||||
Forward loss provision | 3,900 | 3,900 | ||||||||||
Inventory write-down | 1,900 | 1,900 | ||||||||||
SS | Boeing 777 | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Impairment charges | 1,300 | 1,300 | ||||||||||
Forward loss provision | $ 1,300 | 1,300 | ||||||||||
ES | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Goodwill impairment | 0 | |||||||||||
Operating Segments | SS | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 273,319 | 319,956 | 315,232 | |||||||||
Segment Operating Income (Loss) | (53,010) | 34,949 | 19,008 | |||||||||
Depreciation and amortization | 9,417 | 10,959 | 12,406 | |||||||||
Capital Expenditures | 11,559 | 12,742 | 8,287 | |||||||||
Operating Segments | ES | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 392,692 | 422,089 | 421,418 | |||||||||
Segment Operating Income (Loss) | (4,472) | 34,599 | 37,030 | |||||||||
Depreciation and amortization | 17,267 | 17,928 | 18,346 | |||||||||
Capital Expenditures | 4,419 | 5,782 | 5,000 | |||||||||
Corporate Administration | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Depreciation and amortization | 162 | 137 | 174 | |||||||||
Capital Expenditures | $ 10 | $ 30 | $ 116 |
Business Segment Information 91
Business Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 561,420 | $ 747,599 |
Goodwill and Intangibles | 212,461 | 312,673 |
Operating Segments | SS | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 179,134 | 245,925 |
Goodwill and Intangibles | 4,866 | 63,497 |
Operating Segments | ES | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 363,227 | 427,719 |
Goodwill and Intangibles | 207,595 | 249,176 |
Corporate Administration | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 19,059 | $ 73,955 |
Supplemental Quarterly Financ92
Supplemental Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Revenues | $ 156,576 | $ 161,670 | $ 174,845 | $ 172,920 | $ 187,612 | $ 188,164 | $ 186,516 | $ 179,753 | $ 666,011 | $ 742,045 | $ 736,650 |
Gross Profit | 22,796 | 20,028 | 31,207 | 26,761 | 33,627 | 33,112 | 37,678 | 35,915 | 100,792 | 140,332 | 124,152 |
(Loss) Income Before Taxes | (90,170) | (16,447) | 3,061 | (3,034) | 4,034 | 4,687 | 9,816 | 7,703 | (106,590) | 26,240 | 9,385 |
Income Tax Benefit | (26,594) | (6,932) | 1,279 | (1,061) | (1,122) | 1,754 | 3,197 | 2,544 | (33,308) | 6,373 | (1,993) |
Net (Loss) Income | $ (63,576) | $ (9,515) | $ 1,782 | $ (1,973) | $ 5,156 | $ 2,933 | $ 6,619 | $ 5,159 | $ (73,282) | $ 19,867 | $ 11,378 |
Earnings (Loss) Per Share | |||||||||||
Basic earnings per share (in dollars per share) | $ (5.74) | $ (0.86) | $ 0.16 | $ (0.18) | $ 0.47 | $ 0.27 | $ 0.61 | $ 0.48 | $ (6.63) | $ 1.82 | $ 1.06 |
Diluted earnings per share (in dollars per share) | $ (5.74) | $ (0.86) | $ 0.16 | $ (0.18) | $ 0.46 | $ 0.26 | $ 0.60 | $ 0.46 | $ (6.63) | $ 1.79 | $ 1.05 |
Supplemental Quarterly Financ93
Supplemental Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||
Goodwill impairment | $ 57,200 | $ 57,243 | $ 0 | $ 0 | |||
Intangible asset impairment | 32,900 | 32,937 | 0 | 0 | |||
Loss on extinguishment of debt | $ 11,900 | $ 2,800 | 14,720 | 0 | $ 0 | ||
Senior Unsecured Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt outstanding | $ 0 | 0 | $ 200,000 | ||||
Existing Credit Facilities | Senior Unsecured Notes | |||||||
Segment Reporting Information [Line Items] | |||||||
Debt outstanding | 200,000 | $ 200,000 | |||||
Call premium incurred on extinguishment of debt | 9,800 | 9,800 | |||||
Debt issuance costs written off | $ 2,100 | $ 2,100 |
Valuation and Qualifying Acco94
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 252 | $ 489 | $ 566 |
Additions Charged to Costs and Expenses | 235 | 166 | 430 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 128 | 403 | 507 |
Balance at End of Period | 359 | 252 | 489 |
Valuation Allowance of Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 6,882 | 4,650 | 3,753 |
Additions Charged to Costs and Expenses | 595 | 2,232 | 999 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 102 |
Balance at End of Period | $ 7,477 | $ 6,882 | $ 4,650 |