Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 18, 2013 | |
Document Information [Line Items] | ||
Entity Registrant Name | KAMAN CORPORATION | |
Entity Central Index Key | 54381 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 27-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 27,118,789 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $11,052 | $16,593 |
Accounts receivable, net | 216,223 | 180,798 |
Inventories | 384,940 | 367,385 |
Deferred income taxes | 29,874 | 25,835 |
Other current assets | 31,442 | 27,434 |
Total current assets | 673,531 | 618,045 |
Property, plant and equipment, net of accumulated depreciation of $163,646 and $149,696, respectively | 141,633 | 128,669 |
Goodwill | 203,960 | 192,046 |
Other intangibles assets, net | 90,959 | 92,913 |
Deferred income taxes | 31,555 | 42,905 |
Other assets | 22,526 | 22,415 |
Total assets | 1,164,164 | 1,096,993 |
Current liabilities: | ||
Notes payable | 0 | 21 |
Current portion of long-term debt | 10,000 | 10,000 |
Accounts payable – trade | 113,938 | 113,143 |
Accrued salaries and wages | 36,409 | 35,869 |
Current portion of amount due to Commonwealth of Australia | 0 | 6,659 |
Advances on contracts | 17,963 | 1,900 |
Other accruals and payables | 56,755 | 53,468 |
Income taxes payable | 658 | 2,892 |
Total current liabilities | 235,723 | 223,952 |
Long-term debt, excluding current portion | 276,682 | 249,585 |
Deferred income taxes | 4,292 | 5,150 |
Underfunded pension | 137,650 | 148,703 |
Other long-term liabilities | 46,479 | 49,410 |
Shareholders' equity: | ||
Preferred stock, $1 par value, 200,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $1 par value, 50,000,000 shares authorized, voting, 27,099,238 and 26,881,257 shares issued, respectively | 27,099 | 26,881 |
Additional paid-in capital | 130,348 | 122,522 |
Retained earnings | 430,864 | 399,473 |
Accumulated other comprehensive income (loss) | -117,250 | -121,590 |
Less 318,825 and 277,473 shares of common stock, respectively, held in treasury, at cost | -7,723 | -7,093 |
Total shareholders’ equity | 463,338 | 420,193 |
Total liabilities and shareholders’ equity | $1,164,164 | $1,096,993 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated Depreciation | $163,646 | $149,696 |
Stockholders' Equity: | ||
Preferred stock, par value (in usd per share) | $1 | $1 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in usd per share) | $1 | $1 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 27,099,238 | 26,881,257 |
Common Stock held in treasury, at cost (in shares) | 318,825 | 277,473 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Net sales | $423,663 | $409,567 | $1,243,463 | $1,193,512 |
Cost of sales | 304,806 | 295,498 | 893,083 | 861,011 |
Gross profit | 118,857 | 114,069 | 350,380 | 332,501 |
Selling, general and administrative expenses | 87,436 | 89,153 | 274,075 | 262,883 |
Net loss on sale of assets | 0 | 53 | 100 | 21 |
Operating income | 31,421 | 24,863 | 76,205 | 69,597 |
Interest expense, net | 3,113 | 2,922 | 9,344 | 8,622 |
Other (income) expense, net | -21 | -64 | 368 | -288 |
Earnings from continuing operations before income taxes | 28,329 | 22,005 | 66,493 | 61,263 |
Income tax expense | 9,634 | 7,221 | 22,752 | 21,269 |
Earnings from continuing operations | 18,695 | 14,784 | 43,741 | 39,994 |
Earnings from discontinued operations, net of taxes | 64 | 198 | 64 | 870 |
Gain on disposal of discontinued operations, net of taxes | 420 | 0 | 420 | 0 |
Total earnings from discontinued operations, net of tax | 484 | 198 | 484 | 870 |
Net earnings | $19,179 | $14,982 | $44,225 | $40,864 |
Net earnings per share: | ||||
Basic earnings per share from continuing operations | $0.70 | $0.56 | $1.64 | $1.52 |
Basic earnings per share from discontinued operations | $0 | $0.01 | $0 | $0.03 |
Basic earnings per share from disposal of discontinued operations | $0.02 | $0 | $0.02 | $0 |
Basic earnings per share | $0.72 | $0.57 | $1.66 | $1.55 |
Diluted earnings per share from continuing operations | $0.68 | $0.55 | $1.61 | $1.51 |
Diluted earnings per share from discontinued operations | $0 | $0.01 | $0 | $0.03 |
Diluted earnings per share from disposal of discontinued operations | $0.02 | $0 | $0.02 | $0 |
Diluted earnings per share | $0.70 | $0.56 | $1.63 | $1.54 |
Average shares outstanding: | ||||
Basic (in shares) | 26,770 | 26,455 | 26,721 | 26,380 |
Diluted (in shares) | 27,233 | 26,623 | 27,062 | 26,540 |
Dividends declared per share | $0.16 | $0.16 | $0.48 | $0.48 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | ||
Net earnings | $19,179 | $14,982 | $44,225 | $40,864 | ||
Foreign currency translation adjustments | 4,669 | 2,961 | -89 | 3,487 | ||
Change in unrealized loss on derivative instruments, net of tax expense of $74 and $0, and $36 and $0, respectively | -119 | [1] | 0 | -58 | [1] | 0 |
Change in pension and post-retirement benefit plan liabilities, net of tax expense of $941 and $834 and $2,751 and $2,503, respectively | 1,536 | [2] | 1,361 | 4,487 | [2] | 4,084 |
Other Comprehensive Income | 6,086 | 4,322 | 4,340 | 7,571 | ||
Comprehensive Income | $25,265 | $19,304 | $48,565 | $48,435 | ||
[1] | See Note 8, Derivative Financial Instruments, for additional information regarding our derivative instruments. | |||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See Note 11, Pension Plans for additional information). |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Tax expense for the change in unrealized loss on derivative instruments | $74 | $0 | $36 | $0 |
Tax expense for pension plan adjustments | $941 | $834 | $2,751 | $2,503 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
Cash flows from operating activities: | ||
Earnings from continuing operations | $43,741 | $39,994 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities of continuing operations: | ||
Depreciation and amortization | 23,720 | 20,427 |
Accretion of convertible notes discount | 1,366 | 1,296 |
Provision for doubtful accounts | 1,100 | 174 |
Net loss on sale of assets | 100 | 21 |
Net loss (gain) on derivative instruments | 130 | -287 |
Stock compensation expense | 4,056 | 4,809 |
Excess tax (benefit) from share-based compensation | -350 | -720 |
Deferred income taxes | 2,619 | -10 |
Changes in assets and liabilities, excluding effects of acquisitions/divestures: | ||
Accounts receivable | -33,354 | -6,094 |
Inventories | -14,269 | -15,704 |
Income tax refunds receivable | 3,099 | -527 |
Other current assets | -1,371 | 5,779 |
Accounts payable-trade | -4,814 | -556 |
Accrued Contract losses | -565 | -1,349 |
Advances on contracts | 16,063 | -138 |
Other accruals and payables | -1,762 | -10,369 |
Income taxes payable | -2,263 | -328 |
Pension liabilities | -5,208 | -1,843 |
Other long-term liabilities | -1,016 | 1,471 |
Net cash provided by operating activities of continuing operations | 24,824 | 37,100 |
Net cash provided by operating activities of discontinued operations | 484 | 977 |
Net cash provided by operating activities | 25,308 | 38,077 |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 111 | 337 |
Expenditures for property, plant & equipment | -30,118 | -19,560 |
Acquisition of businesses | -19,934 | -83,390 |
Other, net | -642 | -407 |
Cash used in investing activities of continuing operations | -50,583 | -103,020 |
Cash used in investing activities of discontinued operations | 0 | -5 |
Cash used in investing activities | -50,583 | -103,025 |
Cash flows from financing activities: | ||
Net borrowings under revolving credit agreements | 30,116 | 72,190 |
Debt repayment | -5,000 | -3,750 |
Net change in book overdraft | 3,617 | 1,707 |
Proceeds from exercise of employee stock awards | 4,002 | 5,730 |
Purchase of treasury shares | -644 | -733 |
Dividends paid | -12,806 | -12,637 |
Other | -51 | -50 |
Windfall tax benefit | 350 | 720 |
Cash provided by financing activities of continuing operations | 19,584 | 63,177 |
Cash used in financing activities of discontinued operations | 0 | -807 |
Cash provided by financing activities | 19,584 | 62,370 |
Net increase (decrease) in cash and cash equivalents | -5,691 | -2,578 |
Effect of exchange rate changes on cash and cash equivalents | 150 | -166 |
Cash and cash equivalents at beginning of period | 16,593 | 14,985 |
Cash and cash equivalents at end of period | $11,052 | $12,241 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The December 31, 2012, Condensed Consolidated Balance Sheet amounts have been derived from the previously audited Consolidated Balance Sheet of Kaman Corporation and subsidiaries (collectively, the “Company”), but do not include all disclosures required by accounting principles generally accepted in the United States of America ("US GAAP"). In the opinion of management, the remainder of the condensed financial information reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report. Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform to current presentation. The statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the interim periods presented are not necessarily indicative of trends or of results to be expected for the entire year. | |
The Company has a calendar year-end; however, its first three fiscal quarters follow a 13-week convention, with each quarter ending on a Friday. The third quarter for 2013 and 2012 ended on September 27, 2013 and September 28, 2012, respectively. |
Recent_Accounting_Standards
Recent Accounting Standards | 9 Months Ended |
Sep. 27, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | RECENT ACCOUNTING STANDARDS |
In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-01, Balance Sheet (ASC Topic 210) - Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU No. 2013-01 applies to derivatives accounted for in accordance with Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC Section 210-20-45 or ASC Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The standard became effective on January 1, 2013. These changes had no impact on the Company's condensed consolidated financial statements. | |
In January 2013, the FASB also issued ASU No. 2013-02, Comprehensive Income (ASC Topic 220) - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The Company adopted this standard beginning January 1, 2013. (See Note 16, Shareholders' Equity and Accumulated Other Comprehensive Income.) | |
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (ASC Topic 830) - Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. The objective is to resolve the diversity in practice about whether ASC Subtopic 810-10, Consolidation - Overall or ASC Subtopic 830-30 Foreign Currency Matters - Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The update is effective for financial statement periods beginning after December 15, 2013 with early adoption permitted. The Company will adopt this standard beginning January 1, 2014. The Company does not expect these changes to have an impact on its consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (ASC Topic 815) - Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this update permit the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under ASC Topic 815, in addition to U.S. Treasury ("UST") and London Interbank Offered Rate ("LIBOR"). The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company has not entered into any new hedging relationships since July 17, 2013. | |
2. RECENT ACCOUNTING STANDARDS (CONTINUED) | |
In July 2013, the FASB also issued ASU No. 2013-11, Income Taxes (ASC Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The objective is to end some inconsistent practices with regard to the presentation on the balance sheet of unrecognized tax benefits.The update is effective for financial statement periods beginning after December 15, 2013, with early adoption permitted. The Company will adopt this standard beginning January 1, 2014. The Company does not expect these changes to have a material impact on its consolidated financial statements. |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS | |||||||||||||||
On December 31, 2012, the Company sold substantially all of the assets and liabilities of the Distribution segment's Canadian operations. As a result, the Company has reported the results of operations and financial position of this component as discontinued operations within the condensed consolidated financial statements for all periods presented. | ||||||||||||||||
The following tables provide information regarding the results of discontinued operations: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
In thousands | ||||||||||||||||
Net sales of discontinued operations | $ | — | $ | 5,046 | $ | — | $ | 15,303 | ||||||||
Income from discontinued operations | 86 | 246 | 86 | 1,191 | ||||||||||||
Other income (expense), net, from discontinued operations | — | 5 | — | (66 | ) | |||||||||||
Earnings from discontinued operations before income taxes | 86 | 251 | 86 | 1,125 | ||||||||||||
Income tax expense | 22 | 53 | 22 | 255 | ||||||||||||
Earnings from discontinued operations before gain on disposal | $ | 64 | $ | 198 | $ | 64 | $ | 870 | ||||||||
Gain on disposal of discontinued operations | — | — | — | — | ||||||||||||
Reduction of provision for income taxes on gain | 420 | — | 420 | — | ||||||||||||
Net gain on disposal | 420 | — | 420 | — | ||||||||||||
Net earnings from discontinued operations | $ | 484 | $ | 198 | $ | 484 | $ | 870 | ||||||||
During the third quarter, the Company recorded a gain on discontinued operations due to a $0.4 million favorable tax result versus previous estimates and other activity related to the settlement of the closing balance sheet. |
Acquisitions
Acquisitions | 9 Months Ended | |||
Sep. 27, 2013 | ||||
Business Combinations [Abstract] | ||||
Acquisitions | ACQUISITIONS | |||
As previously disclosed in the Company's Form 10-Q for the quarter ended June 28, 2013, on June 14, 2013, the Company acquired substantially all of the assets of Northwest Hose & Fittings, Inc. ("Northwest Hose"). Northwest Hose, formed in 1995, is an authorized Parker Hannifin distributor of hydraulic hose, fittings and adapters as well as couplers and industrial hose to a diverse group of industries such as the metals, agricultural, industrial machinery and equipment industries. Northwest Hose is headquartered in Spokane, Washington. | ||||
On July 31, 2013, the Company acquired substantially all of the assets of Ohio Gear & Transmission of Eastlake, Ohio. Founded in 1973, Ohio Gear & Transmission is a distributor of mechanical power transmission equipment, bearings & electric automation systems as well as a designer and fabricator of specialized gearing products to a variety of industries including food, packaging, material handling, and general machinery. | ||||
On August 15, 2013, the Company acquired Western Fluid Components, Inc. ("Western"). Western is headquartered in Everett, Washington, and has other Washington facilities in Tacoma, Kirkland and Bellingham. Founded in 1975, Western is one of the largest fluid connector distributors in Washington and a full-line distributor for Parker Hannifin’s Fluid Connector Group. | ||||
4. ACQUISITIONS (CONTINUED) | ||||
The above reported acquisitions were accounted for as business combinations. Assets acquired and liabilities assumed were recorded based on their fair value at the date of acquisition. The fair value of assets acquired and liabilities assumed were as follows: | ||||
In thousands | ||||
Cash | $ | 143 | ||
Accounts receivable | 3,122 | |||
Inventories | 3,423 | |||
Property, plant and equipment | 446 | |||
Other tangible assets | 797 | |||
Goodwill | 9,493 | |||
Other intangible assets | 4,788 | |||
Liabilities | (4,248 | ) | ||
Total of net assets acquired | 17,964 | |||
Less cash received | (143 | ) | ||
Total consideration | $ | 17,821 | ||
The Company has paid $16.9 million of the total consideration of $17.8 million for these acquisitions through September 27, 2013. The goodwill associated with Northwest Hose and Ohio Gear & Transmission is tax deductible. The goodwill for the three acquisitions is the result of expected synergies from combining the operations of the acquired businesses with the Company's operations and intangible assets that do not qualify for separate recognition, such as an assembled workforce. Included in the Condensed Consolidated Statements of Operations is $4.2 million and $4.7 million of revenue from these acquisitions for the three months and nine months ended September 27, 2013, respectively. | ||||
The fair value of the identifiable intangible assets of $4.8 million, consisting primarily of customer lists/relationships, non-compete agreements and trade names, was determined using the income approach. Specifically, the discounted cash flows method was utilized for the customer relationships and non-compete agreements and the relief-from-royalty method was utilized for the trade names. The fair value of the customer relationships ($4.6 million) is being amortized on a straight-line basis over periods ranging from 7 to 10 years; and the fair value of the other intangible assets ($0.2 million) is being amortized over periods ranging from 3 to 5 years, the estimated lives of the assets. |
Restructuring_Costs
Restructuring Costs | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring Costs | RESTRUCTURING COSTS | ||||||||||||
During 2013, the Company initiated restructuring activities primarily at its Distribution segment to align the cost structure of the organization with its revenue levels. This included workforce reductions and the consolidation of field operations where the Distribution segment had multiple facilities in the same geographic area. The Distribution segment restructuring resulted in net workforce reductions of 110 employees and the exiting of five facilities. The Company intends to settle all liabilities associated with these restructuring activities during 2013. | |||||||||||||
The following table summarizes the accrual balances by cost type for the 2013 restructuring actions: | |||||||||||||
Severance | Other (a) | Total | |||||||||||
In thousands | |||||||||||||
Restructuring accrual balance at December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Provision | 3,283 | 250 | 3,533 | ||||||||||
Cash payments | (2,329 | ) | (230 | ) | (2,559 | ) | |||||||
Restructuring accrual balance at September 27, 2013 | $ | 954 | $ | 20 | $ | 974 | |||||||
(a) Includes costs associated with the consolidation of facilities. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET | ||||||||
Accounts receivable, net consists of the following: | |||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Trade receivables | $ | 142,805 | $ | 117,426 | |||||
U.S. Government contracts: | |||||||||
Billed | 23,488 | 18,261 | |||||||
Costs and accrued profit – not billed | 2,562 | 2,568 | |||||||
Commercial and other government contracts: | |||||||||
Billed | 50,275 | 45,547 | |||||||
Costs and accrued profit – not billed | 578 | 144 | |||||||
Less allowance for doubtful accounts | (3,485 | ) | (3,148 | ) | |||||
Accounts receivable, net | $ | 216,223 | $ | 180,798 | |||||
Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | |||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | — | $ | 397 | |||||
Total | $ | — | $ | 397 | |||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | ||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | |||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||||
The following table presents the carrying value and fair value of financial instruments that are not carried at fair value: | |||||||||||||||||
September 27, 2013 | December 31, 2012 | ||||||||||||||||
In thousands | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Level 1 | $ | 106,626 | $ | 142,966 | $ | 105,260 | $ | 144,460 | |||||||||
Level 2 | 180,056 | 167,091 | 154,325 | 143,135 | |||||||||||||
Total | $ | 286,682 | $ | 310,057 | $ | 259,585 | $ | 287,595 | |||||||||
7. FAIR VALUE MEASUREMENTS (CONTINUED) | |||||||||||||||||
The above fair values were computed based on quoted market prices (Level 1) and discounted future cash flows (Level 2 observable inputs), as applicable. Differences from carrying values are attributable to interest rate changes subsequent to when the transaction occurred. The increase in fair value of the long-term debt is driven by increased borrowings under the Company's Revolving Credit Facility, partially offset by a lower quoted market price for the Company's convertible notes. | |||||||||||||||||
The fair values of Cash and cash equivalents, Accounts receivable, net, Notes payable, and Accounts payable - trade approximate their carrying amounts due to the short-term maturities of these instruments. | |||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||
The table below segregates all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine their fair value at the measurement date: | |||||||||||||||||
Total Carrying | Quoted prices in | Significant other | Significant | ||||||||||||||
Value at | active markets | observable | unobservable | ||||||||||||||
(Level 1) | inputs | inputs | |||||||||||||||
In thousands | September 27, | (Level 2) | (Level 3) | ||||||||||||||
2013 | |||||||||||||||||
Derivative instruments | $ | 114 | $ | — | $ | 114 | $ | — | |||||||||
Total assets | $ | 114 | $ | — | $ | 114 | $ | — | |||||||||
Derivative instruments | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
Total liabilities | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
Total Carrying | Quoted prices in | Significant other | Significant | ||||||||||||||
Value at | active markets | observable | unobservable | ||||||||||||||
(Level 1) | inputs | inputs | |||||||||||||||
In thousands | December 31, | (Level 2) | (Level 3) | ||||||||||||||
2012 | |||||||||||||||||
Derivative instruments | $ | 1,506 | $ | — | $ | 1,506 | $ | — | |||||||||
Total assets | $ | 1,506 | $ | — | $ | 1,506 | $ | — | |||||||||
The Company’s derivative instruments are foreign exchange contracts and interest rate swaps that are measured at fair value using observable market inputs such as forward rates and our counterparties’ credit risks. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy and have been included in other current assets, other assets and other long-term liabilities on the Condensed Consolidated Balance Sheets at September 27, 2013, and December 31, 2012. Based on the continued ability to trade and enter into forward contracts, we consider the markets for our fair value instruments to be active. | |||||||||||||||||
The Company evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of September 27, 2013, such credit risks have not had an adverse impact on the fair value of these instruments. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
Derivatives Overview | |||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in foreign currency exchange rates and interest rates. Derivative financial instruments are recognized on the Condensed Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes. | |||||||||||||||||||
8. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) | |||||||||||||||||||
Derivatives Overview (continued) | |||||||||||||||||||
The Company holds forward exchange contracts designed to hedge forecasted transactions denominated in foreign currencies and to minimize the impact of foreign currency fluctuations on the Company’s earnings and cash flows. Some of these contracts were designated as cash flow hedges. The Company will include in earnings amounts currently included in accumulated other comprehensive income upon recognition of cost of sales related to the underlying transaction. No material amounts were reclassified to income from other comprehensive income for derivative instruments formerly designated as cash flow hedges during the three or nine months ended September 27, 2013, or September 28, 2012. Over the next twelve months, the income related to cash flow hedges expected to be reclassified from other comprehensive income is $0.2 million. | |||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | |||||||||||||||||||
The Company’s Term Loan Facility (“Term Loan”) contains floating rate obligations and is subject to interest rate fluctuations. During 2013, the Company entered into interest rate swap agreements for the purposes of hedging the eight quarterly variable-rate interest payments under its Term Loan due in 2014 and 2015. These interest rate swap agreements were designated as cash flow hedges and are intended to manage interest rate risk associated with the Company’s variable rate borrowings and minimize the impact on the Company’s earnings and cash flows of interest rate fluctuations attributable to changes in LIBOR rates. | |||||||||||||||||||
The following table shows the fair value of derivative instruments designated as cash flow hedging instruments: | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Balance Sheet | September 27, | December 31, | Notional | ||||||||||||||||
Location | 2013 | 2012 | Amount | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Interest rate swap contracts | Other long-term liabilities | $ | 185 | $ | — | $90,000- $70,000 | |||||||||||||
Total | $ | 185 | $ | — | |||||||||||||||
The following table shows the gain or (loss) recognized in other comprehensive income for derivatives designated as cash flow hedges: | |||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Interest rate swap contracts | $ | (256 | ) | $ | — | $ | (185 | ) | $ | — | |||||||||
Total | $ | (256 | ) | $ | — | $ | (185 | ) | $ | — | |||||||||
8. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||
The following table shows the fair value of derivative instruments not designated as hedging instruments: | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Balance Sheet | September 27, | December 31, | Notional | ||||||||||||||||
In thousands | Location | 2013 | 2012 | Amount | |||||||||||||||
Derivative Assets | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 1,345 | $0 / $3,408 Australian Dollars | |||||||||||||
Foreign exchange contracts | Other current assets | 114 | 161 | $2,829/ $4,110 | |||||||||||||||
Total | $ | 114 | $ | 1,506 | |||||||||||||||
On February 12, 2009, the Company dedesignated the forward contract it had entered into to hedge $36.5 million (AUD) of its $39.5 million (AUD) minimum required payments to the Commonwealth of Australia. The Company settled its final minimum required payment with the Commonwealth of Australia on April 2, 2013. | |||||||||||||||||||
The following table shows the location and amount of the gain or (loss) recognized on the Condensed Consolidated Statements of Operations for derivatives not designated as hedge instruments: | |||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
Income Statement Location | September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Assets | |||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | — | $ | 79 | $ | — | $ | 362 | ||||||||||
Foreign exchange contracts | Other (income) expense, net | (136 | ) | 104 | 47 | 176 | |||||||||||||
Total | $ | (136 | ) | $ | 183 | $ | 47 | $ | 538 | ||||||||||
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | INVENTORIES | ||||||||
Inventories consist of the following: | |||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Merchandise for resale | $ | 137,577 | $ | 137,426 | |||||
Contracts and other work in process | 236,001 | 216,233 | |||||||
Finished goods (including certain general stock materials) | 11,362 | 13,726 | |||||||
Total | $ | 384,940 | $ | 367,385 | |||||
Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | |||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 11,599 | $ | 6,861 | |||||
Total | $ | 11,599 | $ | 6,861 | |||||
INVENTORIES (CONTINUED) | |||||||||
K-MAX® inventory of $17.4 million and $18.0 million as of September 27, 2013, and December 31, 2012, respectively, is included in contracts and other work in process inventory and finished goods. Management believes that a significant portion of this K-MAX® inventory will be sold after September 27, 2014, based upon the anticipation of supporting the fleet for the foreseeable future. | |||||||||
At September 27, 2013 and December 31, 2012, $48.3 million and $52.6 million, respectively, of SH-2G(I), formerly SH-2G(A), inventory was included on the Company's balance sheet in contracts and other work in process inventory. On May 8, 2013, the Company announced that it had entered into a $120.6 million contract with the New Zealand Ministry of Defence for the sale of ten SH-2G(I) Super Seasprite aircraft, spare parts, a full mission flight simulator, and related logistics support. Although a substantial portion of the SH-2G(I) inventory will be used in the performance of this new contract, management believes that $22.5 million of the SH-2G(I) inventory will be sold after September 27, 2014, based upon the time needed to prepare the aircraft for sale and the requirements of our customer. For more information on the SH-2G(I) inventory, see Note 12, Commitments and Contingencies. | |||||||||
Long-term Contracts | |||||||||
For long-term aerospace contracts, the Company generally recognizes revenue and cost based on the percentage-of-completion method of accounting, which allows for recognition of revenue as work on a contract progresses. The Company recognizes revenues and cost based on either (1) the cost-to-cost method, in which sales and profit are recorded based upon the ratio of costs incurred to estimated total costs to complete the contract, or (2) the units-of-delivery method, in which sales are recognized as deliveries are made and cost of sales is computed on the basis of the estimated ratio of total cost to total sales. | |||||||||
Revenue and cost estimates for all significant long-term contracts for which revenue is recognized using the percentage-of-completion method of accounting are reviewed and reassessed quarterly. Based upon these reviews, the Company records the effects of adjustments in profit estimates each period. If at any time the Company determines that in the case of a particular contract total costs will exceed total contract revenue, the Company will record a provision for the entire anticipated contract loss at that time. There was a net decrease to the Company's operating income from changes in contract estimates of $0.1 million and $0.3 million for the three-month periods ended September 27, 2013, and September 28, 2012, respectively. There was a net decrease in operating income of $2.8 million and $1.8 million for the nine-month periods ended September 27, 2013, and September 28, 2012, respectively, attributable to changes in contract estimates. The decrease for the nine months ended September 27, 2013, was a result of cost growth due to revised estimates in various programs, including the Sikorsky BLACK HAWK helicopter program, Bell helicopter offload program and a fuze program. The decrease for the nine months ended September 28, 2012, was due to additional cost for one of the Company's fuze programs and production issues encountered during the first half of 2012. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, Net | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||||||||||||||
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ||||||||||||||||||
Goodwill | |||||||||||||||||||
The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: | |||||||||||||||||||
Distribution | Aerospace | Total | |||||||||||||||||
In thousands | |||||||||||||||||||
Gross balance at December 31, 2012 | $ | 96,155 | $ | 110,072 | $ | 206,227 | |||||||||||||
Accumulated impairment | — | (14,181 | ) | (14,181 | ) | ||||||||||||||
Net balance at December 31, 2012 | 96,155 | 95,891 | 192,046 | ||||||||||||||||
Additions | 9,493 | 2,485 | 11,978 | ||||||||||||||||
Impairments | — | — | — | ||||||||||||||||
Foreign currency translation | (16 | ) | (48 | ) | (64 | ) | |||||||||||||
Ending balance at September 27, 2013 | $ | 105,632 | $ | 98,328 | $ | 203,960 | |||||||||||||
10. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) | |||||||||||||||||||
Goodwill (continued) | |||||||||||||||||||
Additions to Goodwill at the Company's Distribution segment relate to the acquisitions completed during the first nine months of 2013, as set forth in Note 4 - Acquisitions. Additions to the Goodwill for our Aerospace segment relate to an earnout payment from a previous acquisition. | |||||||||||||||||||
In accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), the Company evaluates goodwill for possible impairment on at least an annual basis. The Company is currently in the process of preparing its forecast, which it will use to complete its annual evaluation. Based upon information obtained to this point in the forecast process, management notes that there are external factors that could impact the expected future cash flows for three reporting units, as described below. Further investigation of these factors could result in the write-off of some or all of the goodwill associated with these three reporting units. | |||||||||||||||||||
In 2012, the Company's VT Composites reporting unit experienced delays on certain programs that were driven by changes in customers' requirements. The Company anticipated these changes in requirements would shift revenues and related cash flows into 2013 and future periods. The anticipated deferred revenues did not materialize to the levels the Company had projected in 2013, and therefore the propriety of the forecasted recoveries in future years is being evaluated. The goodwill associated with this reporting unit is $18.8 million. | |||||||||||||||||||
The Company's U.K. reporting unit has been successful in winning new orders during 2012 and 2013; however, this reporting unit continues to experience higher than expected working capital requirements related to start-up expenditures associated with these new contracts. The goodwill associated with this reporting unit is $31.8 million. | |||||||||||||||||||
The Company's Engineering Services reporting unit has experienced a decline in revenues during 2013 due to a reduction in requirements by a major OEM customer. This reporting unit generates revenue primarily through the billing of employees' time spent on customer projects. The Company believes that this is a temporary reduction in the OEM customer requirements; the relationship between this reporting unit and the customer continues to be strong and has not suffered as a result of the decline in project requirements. The goodwill associated with this reporting unit is $8.5 million | |||||||||||||||||||
Other intangible assets consisted of: | |||||||||||||||||||
At September 27, | At December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Amortization | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
Period | Amount | Amortization | Amount | Amortization | |||||||||||||||
In thousands | |||||||||||||||||||
Customer lists / relationships | 6-21 years | $ | 108,688 | $ | (21,369 | ) | $ | 103,894 | $ | (15,541 | ) | ||||||||
Trademarks / trade names | 3-7 years | 2,695 | (1,483 | ) | 2,655 | (1,128 | ) | ||||||||||||
Non-compete agreements and other | 1-9 years | 6,112 | (3,819 | ) | 5,979 | (3,091 | ) | ||||||||||||
Patents | 17 years | 636 | (501 | ) | 636 | (491 | ) | ||||||||||||
Total | $ | 118,131 | $ | (27,172 | ) | $ | 113,164 | $ | (20,251 | ) | |||||||||
The changes in other intangible assets are attributable to changes in foreign currency exchange rates and the acquisitions completed during the first nine months of 2013. |
Pension_Plan
Pension Plan | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||
Pension Plans | PENSION PLANS | ||||||||||||||||
Components of net pension cost for the Qualified Pension Plan and Supplemental Employees’ Retirement Plan ("SERP") are as follows: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 3,587 | $ | 3,519 | $ | 85 | $ | 96 | |||||||||
Interest cost on projected benefit obligation | 6,399 | 6,578 | 78 | 105 | |||||||||||||
Expected return on plan assets | (10,337 | ) | (9,470 | ) | — | — | |||||||||||
Amortization of prior service cost | 25 | 24 | — | — | |||||||||||||
Amortization of net loss | 2,387 | 1,962 | 65 | 39 | |||||||||||||
Net pension benefit cost | $ | 2,061 | $ | 2,613 | $ | 228 | $ | 240 | |||||||||
For the Nine Months Ended | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 10,761 | $ | 10,557 | $ | 255 | $ | 287 | |||||||||
Interest cost on projected benefit obligation | 19,197 | 19,734 | 233 | 315 | |||||||||||||
Expected return on plan assets | (31,011 | ) | (28,409 | ) | — | — | |||||||||||
Amortization of prior service cost | 75 | 74 | — | — | |||||||||||||
Amortization of net loss | 6,968 | 5,883 | 195 | 118 | |||||||||||||
Additional amount recognized due to curtailment/settlement | — | — | 277 | — | |||||||||||||
Net pension benefit cost | $ | 5,990 | $ | 7,839 | $ | 960 | $ | 720 | |||||||||
The following tables show the amount of the contributions made to the Qualified Pension Plan and SERP during each period and the amount of contributions the Company expects to make during 2013: | |||||||||||||||||
Year-to-date contributions: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
Through September 27, 2013 | Through December 31, 2012 | Through September 27, 2013 | Through December 31, 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Year-to-date contributions | $ | 10,000 | $ | 10,000 | $ | 2,158 | $ | 1,550 | |||||||||
Expected additional contributions in 2013: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
In thousands | |||||||||||||||||
Expected additional contributions | $ | — | $ | 133 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Legal Matters | |
Wichita Matter | |
As previously disclosed, the U.S. District Court for the District of Kansas issued a grand jury subpoena in 2011 to Plastic Fabricating Company, Inc. (“PlasticFab”), an indirect wholly owned subsidiary of the Company now known as Kaman Composites - Wichita, Inc., regarding a government investigation of record keeping associated with the manufacture of certain composite parts at PlasticFab's facility located in Wichita, Kansas. The subpoena required information related to the period January 1, 2006, through June 30, 2008. In March 2013, the U.S. Attorney's Office for the District of Kansas notified PlasticFab that it may seek to commence a criminal proceeding against PlasticFab but it expressed a willingness to explore a pre-charge disposition of the matter. PlasticFab believes it has cooperated fully with the investigation and intends to continue to do so as it engages in further discussions with the U.S. Attorney's Office about this matter. Under present U.S. Government procurement laws and regulations, if indicted or adjudged to be in violation of procurement or other Federal laws, a contractor, such as PlasticFab, could be subject to fines, penalties, repayments, or compensatory or treble damages, or suspension or debarment on U.S. Government contract awards if warranted. Thus, as with any government contractor, an adverse outcome in a proceeding such as this could have a material adverse effect on our business, financial condition, results of operations or cash flows. Management continues to cooperate with the government's investigation; however, we are unable to predict the outcome of any proceeding that may be brought or to estimate the amounts of resulting claims or other actions that could be instituted against PlasticFab, its officers, employees, or affiliates. Sales for PlasticFab represented 1.2% of the Company's consolidated sales for the year ended December 31, 2012. At September 27, 2013, the Company had no amount accrued for this matter, as it is unable to estimate the amount of costs that might be incurred in connection with the resolution of this matter at this time. | |
40 mm | |
Kaman Precision Products, Inc., the indirect wholly owned subsidiary that operates the Company’s Orlando facility, was one of five defendants in a qui tam suit under the False Claims Act brought by John D. King, a former employee of one of the other defendants. The case, United States ex rel. King v. DSE, Inc., et al., No. 8:08-cv-02416 (M.D. Fla.), was pending in the U.S. District Court for the Middle District of Florida. The United States Department of Justice declined to intervene in the suit, so the case was brought solely by Mr. King. The suit alleged that the Orlando facility knowingly submitted false claims or made false statements in connection with its work on 40 mm grenade programs. On February 19, 2013, the District Court issued an order dismissing the case with prejudice as to Mr. King. A judgment on the order was entered by the District Court on February 20, 2013. Mr. King subsequently filed a notice of appeal, and the defendants filed a motion to dismiss the appeal. On August 16, 2013, the U.S. Court of Appeals for the Eleventh Circuit granted the defendants' motion to dismiss, effectively ending the Company's involvement with this matter. | |
Other Matters | |
Revenue Sharing Agreement with the Commonwealth of Australia | |
During the second quarter of 2013, the Company signed a $120.6 million contract to resell ten of the Australia SH-2G(A) (now designated the SH-2G(I)) aircraft, spare parts, a full mission flight simulator, and related logistics support to the New Zealand Ministry of Defence. Pursuant to the terms of its revenue sharing agreement with the Commonwealth of Australia, the Company will share proceeds from the resale with the Commonwealth on a predetermined basis. Through September 27, 2013, the Company has paid $39.5 million (AUD) to the Commonwealth of Australia, the required minimum amount of payments pursuant to the revenue sharing agreement. Additional revenue sharing payments, if any, will be calculated pursuant to the terms of the revenue sharing agreement and recorded when they are due to the Commonwealth of Australia. | |
To secure the required minimum payments, the Company provided the Commonwealth of Australia with an unconditional letter of credit, which was reduced as such payments were made. The final required minimum payment of $6.7 million was made on April 2, 2013, which eliminated the Company's requirement to provide the Commonwealth of Australia with a letter of credit. | |
12. COMMITMENTS AND CONTINGENCIES (CONTINUED) | |
Other Matters (continued) | |
Moosup | |
This facility is currently being held for disposal. Site characterization of the environmental condition of the property, which began in 2008, is continuing. The total anticipated cost of the environmental remediation activities associated with the Moosup property is $4.5 million, all of which has been accrued. The total amount paid to date in connection with environmental remediation activities at this location is $2.5 million. A portion ($0.2 million) of the accrual related to this property is included in other accruals and payables and the balance is included in other long-term liabilities. The remaining balance of the accrual reflects the total anticipated cost of completing these environmental remediation activities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. | |
New Hartford | |
In connection with the sale of the Company’s Music segment in 2007, the Company assumed responsibility for meeting certain requirements of the Connecticut Transfer Act (the “Transfer Act”) that applied to our transfer of the New Hartford, Connecticut, facility leased by that segment for guitar manufacturing purposes (“Ovation”). Under the Transfer Act, those responsibilities essentially consist of assessing the site's environmental conditions and remediating environmental impairments, if any, caused by Ovation's operations prior to the sale. The site is a multi-tenant industrial park, in which Ovation and other unrelated entities lease space. The environmental assessment process, which began in 2008, has recently been completed. | |
The Company's estimate of its portion of the cost to assess the environmental conditions and remediate this site is $2.2 million, unchanged from the previously reported estimate, all of which has been accrued. The total amount paid to date in connection with these environmental remediation activities is $0.5 million. A portion ($0.3 million) of the accrual related to this property is included in other accruals and payables and the balance is included in other long-term liabilities. The remaining balance of the accrual reflects the total anticipated cost of completing these environmental remediation activities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. | |
Bloomfield | |
In connection with the Company’s 2008 purchase of the portion of the Bloomfield campus that a Company subsidiary had leased from the Naval Air Systems Command (NAVAIR), the Company assumed responsibility for environmental remediation at the facility as may be required under the Transfer Act and continues the effort to define the scope of the remediation that will be required by the Connecticut Department of Energy & Environmental Protection. The assumed environmental liability of $10.3 million, all of which has been accrued, was determined by taking the undiscounted estimated remediation liability of $20.8 million and discounting it at a rate of 8%. This remediation process will take many years to complete. The total amount paid to date in connection with these environmental remediation activities is $6.1 million. A portion ($2.0 million) of the accrual related to this property is included in other accruals and payables, and the balance is included in other long-term liabilities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. | |
United Kingdom | |
In connection with the purchase of U.K. Composites, the Company accrued £1.6 million for environmental compliance at the acquired facilities. The remaining balance of the accrual at September 27, 2013, was £0.3 million, with £1.1 million having been paid to date in connection with these environmental remediation activities and £0.2 million released to income in 2011. The U.S. dollar equivalent of the remaining environmental compliance liability as of September 27, 2013, is $0.5 million, which is included in other accruals and payables. The Company continues to assess the work that may be required, which may result in a change to this accrual. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. | |
12. COMMITMENTS AND CONTINGENCIES (CONTINUED) | |
Other Matters (continued) | |
Other Environmental Matters | |
The Company was notified by the Environmental Protection Agency that it is a potentially responsible party ("PRP") at a Superfund Site. At September 27, 2013, the Company had no amount accrued for this matter, as it is unable to estimate the amount of costs, if any, that might be incurred in connection with the remediation of this site. In making this determination, the Company considered the availability of the information related to the site; specifically, the continued identification of PRPs and the inability to determine the proportion of total responsibility attributable to each PRP. As more information is received, the Company will reassess its ability to estimate its portion of the cost for remediation, taking into consideration the financial resources of other PRPs involved in the site, their proportionate share of the total responsibility for waste at the site, the existence of insurance and the financial viability of the insurer. |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||||||
Computation of Earnings Per Share | COMPUTATION OF EARNINGS PER SHARE | ||||||||||||||||
The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each period. The computation of diluted earnings per share reflects the common stock equivalency of dilutive options granted to employees under the Stock Incentive Plan and shares issuable on redemption of Convertible Notes. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands, except per share amounts | |||||||||||||||||
Earnings from continuing operations | $ | 18,695 | $ | 14,784 | $ | 43,741 | $ | 39,994 | |||||||||
Earnings from discontinued operations, net of tax | 64 | 198 | 64 | 870 | |||||||||||||
Gain on disposal of discontinued operations, net of tax | 420 | — | 420 | — | |||||||||||||
Net earnings | $ | 19,179 | $ | 14,982 | $ | 44,225 | $ | 40,864 | |||||||||
Basic: | |||||||||||||||||
Weighted average number of shares outstanding | 26,770 | 26,455 | 26,721 | 26,380 | |||||||||||||
Earnings per share from continuing operations | $ | 0.7 | $ | 0.56 | $ | 1.64 | $ | 1.52 | |||||||||
Earnings per share from discontinued operations | — | 0.01 | — | 0.03 | |||||||||||||
Earnings per share from disposal of discontinued operations | 0.02 | — | 0.02 | — | |||||||||||||
Basic earnings per share | $ | 0.72 | $ | 0.57 | $ | 1.66 | $ | 1.55 | |||||||||
Diluted: | |||||||||||||||||
Weighted average number of shares outstanding | 26,770 | 26,455 | 26,721 | 26,380 | |||||||||||||
Weighted average shares issuable on exercise of dilutive stock options | 164 | 168 | 156 | 160 | |||||||||||||
Weighted average shares issuable on redemption of convertible notes | 299 | — | 185 | — | |||||||||||||
Total | 27,233 | 26,623 | 27,062 | 26,540 | |||||||||||||
Earnings per share from continuing operations | $ | 0.68 | $ | 0.55 | $ | 1.61 | $ | 1.51 | |||||||||
Earnings per share from discontinued operations | — | 0.01 | — | 0.03 | |||||||||||||
Earnings per share from disposal of discontinued operations | 0.02 | — | 0.02 | — | |||||||||||||
Diluted earnings per share | $ | 0.7 | $ | 0.56 | $ | 1.63 | $ | 1.54 | |||||||||
13. COMPUTATION OF EARNINGS PER SHARE (CONTINUED) | |||||||||||||||||
Excluded from the diluted earnings per share calculation for the three and nine months ended September 27, 2013, respectively, are 405,505 and 429,541 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price during those periods. Excluded from the diluted earnings per share calculation for the three and nine months ended September 28, 2012, respectively, are 336,893 and 351,103 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price during those periods. | |||||||||||||||||
In November 2010, the Company issued Convertible Notes due on November 15, 2017, in the aggregate principal amount of $115.0 million. The Convertible Notes will mature on November 15, 2017, unless earlier redeemed, repurchased by the Company or converted. Upon conversion, the Convertible Notes require net share settlement, where the aggregate principal amount of the notes will be paid in cash and remaining amounts due, if any, will be settled in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. | |||||||||||||||||
For the three-month and nine-month periods ended September 27, 2013, shares issuable under the Convertible Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the Convertible Notes was less than the average share price of the Company's stock. Shares issuable under the Convertible Notes were excluded from the diluted earnings per share calculation for the three-month and nine-month periods ended September 28, 2012, because the conversion price was greater than the average market price of the Company's stock during those periods. Excluded from the diluted earnings per share calculation for the three and nine months ended September 27, 2013, are 3,405,585 and 3,403,710 shares, respectively, issuable under the warrants sold in connection with the Company’s convertible note offering as they would be anti-dilutive. Excluded from the diluted earnings per share calculation for the three and nine months ended September 28, 2012, are 3,397,902 and 3,395,861 shares, respectively, issuable under the warrants sold in connection with the Company’s convertible note offering as they would be anti-dilutive. |
ShareBased_Arrangements
Share-Based Arrangements | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||||||||||||||||
Share-based Arrangements | SHARE-BASED ARRANGEMENTS | ||||||||||||||||
2013 Management Incentive Plan | |||||||||||||||||
On April 17, 2013, the shareholders of the Company approved the 2013 Management Incentive Plan ("2013 Plan"), which replaced the 2003 Stock Incentive Plan. The 2013 Plan provides the Company with the ability to use equity-based awards of up to 2,250,000 authorized shares and is designed as a flexible share authorization plan, such that the Company's share authorization is based on the least costly type of award (stock options). Shares issued pursuant to “Full Value Awards” as defined in the 2013 Plan (awards other than stock options or stock appreciation rights which are settled by the issuance of shares, e.g., restricted stock, restricted stock units, performance shares, performance units if settled with stock, or other stock-based awards) count against the 2013 Plan's share authorization at a rate of 3 to 1, while shares issued upon exercise of stock options or stock appreciation rights count against the share authorization at a rate of 1 to 1. This means that every time an option is granted, the authorized pool of shares is reduced by one (1) share and every time a Full Value Award is granted, the authorized pool of shares is reduced by 3 shares. In deriving the valuation ratio used in the 2013 Plan, the Company used the Black Scholes Fair Value model as the basis for determining the approximate value of an option as compared to a "full value share." No stock-based awards have been granted under the 2013 Plan as of September 27, 2013. | |||||||||||||||||
General | |||||||||||||||||
The Company accounts for stock options and restricted stock as equity awards whereas the employee stock purchase plan is accounted for as a liability award. Compensation expense for stock options and restricted stock awards is recognized on a straight-line basis over the vesting period of the awards. | |||||||||||||||||
14. SHARE-BASED ARRANGEMENTS (CONTINUED) | |||||||||||||||||
The following table summarizes share-based compensation expense recorded during each period presented: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Stock options | $ | 377 | $ | 403 | $ | 1,227 | $ | 1,474 | |||||||||
Restricted stock awards | 496 | 711 | 2,480 | 3,007 | |||||||||||||
Employee stock purchase plan | 118 | 115 | 349 | 328 | |||||||||||||
Total share-based compensation | $ | 991 | $ | 1,229 | $ | 4,056 | $ | 4,809 | |||||||||
Stock option activity is as follows: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, 2013 | September 27, 2013 | ||||||||||||||||
Options | Weighted - average | Options | Weighted - average | ||||||||||||||
exercise price | exercise price | ||||||||||||||||
Options outstanding at beginning of period | 1,014,115 | $ | 27.79 | 921,040 | $ | 26.21 | |||||||||||
Granted | — | $ | — | 156,160 | $ | 36.29 | |||||||||||
Exercised | (23,462 | ) | $ | 24.11 | (64,283 | ) | $ | 23.48 | |||||||||
Forfeited or expired | (17,168 | ) | $ | 31.3 | (39,432 | ) | $ | 30.93 | |||||||||
Options outstanding at September 27, 2013 | 973,485 | $ | 27.82 | 973,485 | $ | 27.82 | |||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 27, | September 28, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected option term (years) | 5.2 | 5.4 | |||||||||||||||
Expected volatility | 45.5 | % | 46.5 | % | |||||||||||||
Risk-free interest rate | 0.9 | % | 0.9 | % | |||||||||||||
Expected dividend yield | 2 | % | 1.9 | % | |||||||||||||
Per share fair value of options granted | $ | 12.38 | $ | 12 | |||||||||||||
There were no options granted for the three-month periods ended September 27, 2013 and September 28, 2012. | |||||||||||||||||
Restricted Stock activity is as follows: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, 2013 | September 27, 2013 | ||||||||||||||||
Restricted Stock | Weighted- | Restricted Stock | Weighted- | ||||||||||||||
Awards | average grant | Awards | average grant | ||||||||||||||
date fair value | date fair value | ||||||||||||||||
Restricted Stock outstanding at beginning of period | 222,850 | $ | 31.51 | 251,359 | $ | 28.3 | |||||||||||
Granted | — | $ | — | 89,155 | $ | 35.67 | |||||||||||
Vested | (9,459 | ) | $ | 28.14 | (116,076 | ) | $ | 27.62 | |||||||||
Forfeited or expired | (15,662 | ) | $ | 32.39 | (26,709 | ) | $ | 31.42 | |||||||||
Restricted Stock outstanding at September 27, 2013 | 197,729 | $ | 31.6 | 197,729 | $ | 31.6 | |||||||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||||||||||
The Company is organized based upon the nature of its products and services, and is composed of two operating segments each overseen by a segment manager. These segments are reflective of how the Company’s Chief Executive Officer, who is its Chief Operating Decision Maker (“CODM”), reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments. | |||||||||||||||||
The Distribution segment is the third largest power transmission, motion control, and fluid power industrial distributor in North America. Distribution conducts business in the mechanical power transmission and bearings, electrical, automation and control, and fluid power product platforms and provides total solutions from system design and integration to machine parts and value-added services to North America's manufacturing industry. | |||||||||||||||||
The Aerospace segment produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; support for the Company’s SH-2G Super Seasprite maritime helicopters and K-MAX® medium-to-heavy lift helicopters; and engineering services. | |||||||||||||||||
Summarized financial information by business segment is as follows: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
In thousands | September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales: | |||||||||||||||||
Distribution | $ | 272,951 | $ | 258,282 | $ | 800,352 | $ | 763,779 | |||||||||
Aerospace | 150,712 | 151,285 | 443,111 | 429,733 | |||||||||||||
Net sales | $ | 423,663 | $ | 409,567 | $ | 1,243,463 | $ | 1,193,512 | |||||||||
Operating income: | |||||||||||||||||
Distribution | $ | 14,675 | $ | 12,925 | $ | 32,974 | $ | 39,405 | |||||||||
Aerospace | 27,638 | 24,410 | 77,227 | 66,469 | |||||||||||||
Net loss on sale of assets | — | (53 | ) | (100 | ) | (21 | ) | ||||||||||
Corporate expense | (10,892 | ) | (12,419 | ) | (33,896 | ) | (36,256 | ) | |||||||||
Operating income from continuing operations | 31,421 | 24,863 | 76,205 | 69,597 | |||||||||||||
Interest expense, net | 3,113 | 2,922 | 9,344 | 8,622 | |||||||||||||
Other expense (income), net | (21 | ) | (64 | ) | 368 | (288 | ) | ||||||||||
Earnings before income taxes from continuing operations | 28,329 | 22,005 | 66,493 | 61,263 | |||||||||||||
Income tax expense | 9,634 | 7,221 | 22,752 | 21,269 | |||||||||||||
Earnings from continuing operations | $ | 18,695 | $ | 14,784 | $ | 43,741 | $ | 39,994 | |||||||||
Shareholders_Equity_and_Accumu
Shareholders' Equity and Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Stockholders' Equity and Accumulated Other Comprehensive Income | SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||
Changes in shareholders’ equity for the nine months ended September 27, 2013, were as follows: | |||||||||
In thousands | |||||||||
Balance at December 31, 2012 | $ | 420,193 | |||||||
Comprehensive income | 48,565 | ||||||||
Dividends declared | (12,834 | ) | |||||||
Employee stock plans and related tax benefit | 4,002 | ||||||||
Purchase of treasury shares | (644 | ) | |||||||
Share-based compensation expense | 4,056 | ||||||||
Balance at September 27, 2013 | $ | 463,338 | |||||||
The components of accumulated other comprehensive income (loss) are shown below: | |||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||
September 27, 2013 | September 27, 2013 | ||||||||
In thousands | |||||||||
Foreign currency translation: | |||||||||
Beginning balance | $ | (21,273 | ) | $ | (16,515 | ) | |||
Net gain/(loss) on foreign currency translation | 4,669 | (89 | ) | ||||||
Reclassification to net income | — | — | |||||||
Other comprehensive income/(loss), net of tax | 4,669 | (89 | ) | ||||||
Ending balance | $ | (16,604 | ) | $ | (16,604 | ) | |||
Pension and other post-retirement benefits(a): | |||||||||
Beginning balance | $ | (101,600 | ) | $ | (104,551 | ) | |||
Reclassification to net income | |||||||||
Amortization of prior service cost, net of tax expense of $10 and $30, respectively | 15 | 45 | |||||||
Amortization of net loss, net of tax expense of $931 and $2,721, respectively | 1,521 | 4,442 | |||||||
Other comprehensive income/(loss), net of tax | 1,536 | 4,487 | |||||||
Ending balance | $ | (100,064 | ) | $ | (100,064 | ) | |||
Derivative instruments(b): | |||||||||
Beginning balance | $ | (463 | ) | $ | (524 | ) | |||
Net loss on derivative instruments, net of tax benefit of $98 and $71, respectively | (158 | ) | (114 | ) | |||||
Reclassification to net income, net of tax expense of $24 and $35, respectively | 39 | 56 | |||||||
Other comprehensive income/(loss), net of tax | (119 | ) | (58 | ) | |||||
Ending balance | $ | (582 | ) | $ | (582 | ) | |||
Total accumulated other comprehensive income (loss) | $ | (117,250 | ) | $ | (117,250 | ) | |||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See Note 11, Pension Plans for additional information). | |||||||||
(b) See Note 8, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Effective Income Tax Rate | 34 | % | 32.8 | % | 34.2 | % | 34.7 | % | |||||
The effective income tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings from continuing operations for the year. The effective tax rates for the three-month periods ended September 27, 2013, and September 28, 2012, were favorably impacted by discrete quarterly adjustments, including tax rate decreases enacted in the U.K. in both years. The effective tax rate for the nine months ended September 27, 2013, benefited from the settlement of a state audit of prior years’ returns in the first quarter of 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 27, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
The Company has evaluated subsequent events through the issuance date of these financial statements. No material subsequent events were identified that required disclosure. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2013 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The December 31, 2012, Condensed Consolidated Balance Sheet amounts have been derived from the previously audited Consolidated Balance Sheet of Kaman Corporation and subsidiaries (collectively, the “Company”), but do not include all disclosures required by accounting principles generally accepted in the United States of America ("US GAAP"). In the opinion of management, the remainder of the condensed financial information reflects all adjustments necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report. Certain amounts in the prior period condensed consolidated financial statements have been reclassified to conform to current presentation. The statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the interim periods presented are not necessarily indicative of trends or of results to be expected for the entire year. | |
The Company has a calendar year-end; however, its first three fiscal quarters follow a 13-week convention, with each quarter ending on a Friday. The third quarter for 2013 and 2012 ended on September 27, 2013 and September 28, 2012, respectively. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||
Results of Discontinued Operations | The following tables provide information regarding the results of discontinued operations: | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
In thousands | ||||||||||||||||
Net sales of discontinued operations | $ | — | $ | 5,046 | $ | — | $ | 15,303 | ||||||||
Income from discontinued operations | 86 | 246 | 86 | 1,191 | ||||||||||||
Other income (expense), net, from discontinued operations | — | 5 | — | (66 | ) | |||||||||||
Earnings from discontinued operations before income taxes | 86 | 251 | 86 | 1,125 | ||||||||||||
Income tax expense | 22 | 53 | 22 | 255 | ||||||||||||
Earnings from discontinued operations before gain on disposal | $ | 64 | $ | 198 | $ | 64 | $ | 870 | ||||||||
Gain on disposal of discontinued operations | — | — | — | — | ||||||||||||
Reduction of provision for income taxes on gain | 420 | — | 420 | — | ||||||||||||
Net gain on disposal | 420 | — | 420 | — | ||||||||||||
Net earnings from discontinued operations | $ | 484 | $ | 198 | $ | 484 | $ | 870 | ||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||
Sep. 27, 2013 | ||||
Business Acquisition [Line Items] | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The fair value of assets acquired and liabilities assumed were as follows: | |||
In thousands | ||||
Cash | $ | 143 | ||
Accounts receivable | 3,122 | |||
Inventories | 3,423 | |||
Property, plant and equipment | 446 | |||
Other tangible assets | 797 | |||
Goodwill | 9,493 | |||
Other intangible assets | 4,788 | |||
Liabilities | (4,248 | ) | ||
Total of net assets acquired | 17,964 | |||
Less cash received | (143 | ) | ||
Total consideration | $ | 17,821 | ||
Restructuring_Costs_Tables
Restructuring Costs (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Accrual Balances by Cost Type | The following table summarizes the accrual balances by cost type for the 2013 restructuring actions: | ||||||||||||
Severance | Other (a) | Total | |||||||||||
In thousands | |||||||||||||
Restructuring accrual balance at December 31, 2012 | $ | — | $ | — | $ | — | |||||||
Provision | 3,283 | 250 | 3,533 | ||||||||||
Cash payments | (2,329 | ) | (230 | ) | (2,559 | ) | |||||||
Restructuring accrual balance at September 27, 2013 | $ | 954 | $ | 20 | $ | 974 | |||||||
(a) Includes costs associated with the consolidation of facilities. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following: | ||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Trade receivables | $ | 142,805 | $ | 117,426 | |||||
U.S. Government contracts: | |||||||||
Billed | 23,488 | 18,261 | |||||||
Costs and accrued profit – not billed | 2,562 | 2,568 | |||||||
Commercial and other government contracts: | |||||||||
Billed | 50,275 | 45,547 | |||||||
Costs and accrued profit – not billed | 578 | 144 | |||||||
Less allowance for doubtful accounts | (3,485 | ) | (3,148 | ) | |||||
Accounts receivable, net | $ | 216,223 | $ | 180,798 | |||||
Accounts Receivable due to contract changes, negotiated settlements and claims for unanticipated cost | Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | ||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | — | $ | 397 | |||||
Total | $ | — | $ | 397 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value of Financial Instruments That Are Not Carried At Fair Value | The following table presents the carrying value and fair value of financial instruments that are not carried at fair value: | ||||||||||||||||
September 27, 2013 | December 31, 2012 | ||||||||||||||||
In thousands | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Long-term debt: | |||||||||||||||||
Level 1 | $ | 106,626 | $ | 142,966 | $ | 105,260 | $ | 144,460 | |||||||||
Level 2 | 180,056 | 167,091 | 154,325 | 143,135 | |||||||||||||
Total | $ | 286,682 | $ | 310,057 | $ | 259,585 | $ | 287,595 | |||||||||
Recurring Fair Value Measurements | Recurring Fair Value Measurements | ||||||||||||||||
The table below segregates all financial assets and liabilities that are measured at fair value on a recurring basis (at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine their fair value at the measurement date: | |||||||||||||||||
Total Carrying | Quoted prices in | Significant other | Significant | ||||||||||||||
Value at | active markets | observable | unobservable | ||||||||||||||
(Level 1) | inputs | inputs | |||||||||||||||
In thousands | September 27, | (Level 2) | (Level 3) | ||||||||||||||
2013 | |||||||||||||||||
Derivative instruments | $ | 114 | $ | — | $ | 114 | $ | — | |||||||||
Total assets | $ | 114 | $ | — | $ | 114 | $ | — | |||||||||
Derivative instruments | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
Total liabilities | $ | 185 | $ | — | $ | 185 | $ | — | |||||||||
Total Carrying | Quoted prices in | Significant other | Significant | ||||||||||||||
Value at | active markets | observable | unobservable | ||||||||||||||
(Level 1) | inputs | inputs | |||||||||||||||
In thousands | December 31, | (Level 2) | (Level 3) | ||||||||||||||
2012 | |||||||||||||||||
Derivative instruments | $ | 1,506 | $ | — | $ | 1,506 | $ | — | |||||||||
Total assets | $ | 1,506 | $ | — | $ | 1,506 | $ | — | |||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Fair Value of Derivatives | The following table shows the fair value of derivative instruments designated as cash flow hedging instruments: | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Balance Sheet | September 27, | December 31, | Notional | ||||||||||||||||
Location | 2013 | 2012 | Amount | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Interest rate swap contracts | Other long-term liabilities | $ | 185 | $ | — | $90,000- $70,000 | |||||||||||||
Total | $ | 185 | $ | — | |||||||||||||||
Gain or (Loss) for Derivatives | The following table shows the gain or (loss) recognized in other comprehensive income for derivatives designated as cash flow hedges: | ||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Liabilities | |||||||||||||||||||
Interest rate swap contracts | $ | (256 | ) | $ | — | $ | (185 | ) | $ | — | |||||||||
Total | $ | (256 | ) | $ | — | $ | (185 | ) | $ | — | |||||||||
Amount and Location of Derivatives | The following table shows the fair value of derivative instruments not designated as hedging instruments: | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Balance Sheet | September 27, | December 31, | Notional | ||||||||||||||||
In thousands | Location | 2013 | 2012 | Amount | |||||||||||||||
Derivative Assets | |||||||||||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 1,345 | $0 / $3,408 Australian Dollars | |||||||||||||
Foreign exchange contracts | Other current assets | 114 | 161 | $2,829/ $4,110 | |||||||||||||||
Total | $ | 114 | $ | 1,506 | |||||||||||||||
Amount and Location of Gain or (Loss) on Derivatives | The following table shows the location and amount of the gain or (loss) recognized on the Condensed Consolidated Statements of Operations for derivatives not designated as hedge instruments: | ||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
Income Statement Location | September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
In thousands | |||||||||||||||||||
Derivative Assets | |||||||||||||||||||
Foreign exchange contracts | Other (income) expense, net | $ | — | $ | 79 | $ | — | $ | 362 | ||||||||||
Foreign exchange contracts | Other (income) expense, net | (136 | ) | 104 | 47 | 176 | |||||||||||||
Total | $ | (136 | ) | $ | 183 | $ | 47 | $ | 538 | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Inventories consist of the following: | ||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Merchandise for resale | $ | 137,577 | $ | 137,426 | |||||
Contracts and other work in process | 236,001 | 216,233 | |||||||
Finished goods (including certain general stock materials) | 11,362 | 13,726 | |||||||
Total | $ | 384,940 | $ | 367,385 | |||||
Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs | Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | ||||||||
September 27, | December 31, | ||||||||
2013 | 2012 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 11,599 | $ | 6,861 | |||||
Total | $ | 11,599 | $ | 6,861 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||||||||||||||
Schedule of Goodwill | The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: | ||||||||||||||||||
Distribution | Aerospace | Total | |||||||||||||||||
In thousands | |||||||||||||||||||
Gross balance at December 31, 2012 | $ | 96,155 | $ | 110,072 | $ | 206,227 | |||||||||||||
Accumulated impairment | — | (14,181 | ) | (14,181 | ) | ||||||||||||||
Net balance at December 31, 2012 | 96,155 | 95,891 | 192,046 | ||||||||||||||||
Additions | 9,493 | 2,485 | 11,978 | ||||||||||||||||
Impairments | — | — | — | ||||||||||||||||
Foreign currency translation | (16 | ) | (48 | ) | (64 | ) | |||||||||||||
Ending balance at September 27, 2013 | $ | 105,632 | $ | 98,328 | $ | 203,960 | |||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Other intangible assets consisted of: | ||||||||||||||||||
At September 27, | At December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Amortization | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
Period | Amount | Amortization | Amount | Amortization | |||||||||||||||
In thousands | |||||||||||||||||||
Customer lists / relationships | 6-21 years | $ | 108,688 | $ | (21,369 | ) | $ | 103,894 | $ | (15,541 | ) | ||||||||
Trademarks / trade names | 3-7 years | 2,695 | (1,483 | ) | 2,655 | (1,128 | ) | ||||||||||||
Non-compete agreements and other | 1-9 years | 6,112 | (3,819 | ) | 5,979 | (3,091 | ) | ||||||||||||
Patents | 17 years | 636 | (501 | ) | 636 | (491 | ) | ||||||||||||
Total | $ | 118,131 | $ | (27,172 | ) | $ | 113,164 | $ | (20,251 | ) | |||||||||
Pension_Plan_Tables
Pension Plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||
Schedule of Net Benefit Costs | Components of net pension cost for the Qualified Pension Plan and Supplemental Employees’ Retirement Plan ("SERP") are as follows: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 3,587 | $ | 3,519 | $ | 85 | $ | 96 | |||||||||
Interest cost on projected benefit obligation | 6,399 | 6,578 | 78 | 105 | |||||||||||||
Expected return on plan assets | (10,337 | ) | (9,470 | ) | — | — | |||||||||||
Amortization of prior service cost | 25 | 24 | — | — | |||||||||||||
Amortization of net loss | 2,387 | 1,962 | 65 | 39 | |||||||||||||
Net pension benefit cost | $ | 2,061 | $ | 2,613 | $ | 228 | $ | 240 | |||||||||
For the Nine Months Ended | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 10,761 | $ | 10,557 | $ | 255 | $ | 287 | |||||||||
Interest cost on projected benefit obligation | 19,197 | 19,734 | 233 | 315 | |||||||||||||
Expected return on plan assets | (31,011 | ) | (28,409 | ) | — | — | |||||||||||
Amortization of prior service cost | 75 | 74 | — | — | |||||||||||||
Amortization of net loss | 6,968 | 5,883 | 195 | 118 | |||||||||||||
Additional amount recognized due to curtailment/settlement | — | — | 277 | — | |||||||||||||
Net pension benefit cost | $ | 5,990 | $ | 7,839 | $ | 960 | $ | 720 | |||||||||
Schedule of Defined Benefit Plans Disclosures | The following tables show the amount of the contributions made to the Qualified Pension Plan and SERP during each period and the amount of contributions the Company expects to make during 2013: | ||||||||||||||||
Year-to-date contributions: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
Through September 27, 2013 | Through December 31, 2012 | Through September 27, 2013 | Through December 31, 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Year-to-date contributions | $ | 10,000 | $ | 10,000 | $ | 2,158 | $ | 1,550 | |||||||||
Expected additional contributions in 2013: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
In thousands | |||||||||||||||||
Expected additional contributions | $ | — | $ | 133 | |||||||||||||
Computation_of_Earnings_Per_Sh1
Computation of Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands, except per share amounts | |||||||||||||||||
Earnings from continuing operations | $ | 18,695 | $ | 14,784 | $ | 43,741 | $ | 39,994 | |||||||||
Earnings from discontinued operations, net of tax | 64 | 198 | 64 | 870 | |||||||||||||
Gain on disposal of discontinued operations, net of tax | 420 | — | 420 | — | |||||||||||||
Net earnings | $ | 19,179 | $ | 14,982 | $ | 44,225 | $ | 40,864 | |||||||||
Basic: | |||||||||||||||||
Weighted average number of shares outstanding | 26,770 | 26,455 | 26,721 | 26,380 | |||||||||||||
Earnings per share from continuing operations | $ | 0.7 | $ | 0.56 | $ | 1.64 | $ | 1.52 | |||||||||
Earnings per share from discontinued operations | — | 0.01 | — | 0.03 | |||||||||||||
Earnings per share from disposal of discontinued operations | 0.02 | — | 0.02 | — | |||||||||||||
Basic earnings per share | $ | 0.72 | $ | 0.57 | $ | 1.66 | $ | 1.55 | |||||||||
Diluted: | |||||||||||||||||
Weighted average number of shares outstanding | 26,770 | 26,455 | 26,721 | 26,380 | |||||||||||||
Weighted average shares issuable on exercise of dilutive stock options | 164 | 168 | 156 | 160 | |||||||||||||
Weighted average shares issuable on redemption of convertible notes | 299 | — | 185 | — | |||||||||||||
Total | 27,233 | 26,623 | 27,062 | 26,540 | |||||||||||||
Earnings per share from continuing operations | $ | 0.68 | $ | 0.55 | $ | 1.61 | $ | 1.51 | |||||||||
Earnings per share from discontinued operations | — | 0.01 | — | 0.03 | |||||||||||||
Earnings per share from disposal of discontinued operations | 0.02 | — | 0.02 | — | |||||||||||||
Diluted earnings per share | $ | 0.7 | $ | 0.56 | $ | 1.63 | $ | 1.54 | |||||||||
ShareBased_Arrangements_Tables
Share-Based Arrangements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The following table summarizes share-based compensation expense recorded during each period presented: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
In thousands | |||||||||||||||||
Stock options | $ | 377 | $ | 403 | $ | 1,227 | $ | 1,474 | |||||||||
Restricted stock awards | 496 | 711 | 2,480 | 3,007 | |||||||||||||
Employee stock purchase plan | 118 | 115 | 349 | 328 | |||||||||||||
Total share-based compensation | $ | 991 | $ | 1,229 | $ | 4,056 | $ | 4,809 | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity is as follows: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, 2013 | September 27, 2013 | ||||||||||||||||
Options | Weighted - average | Options | Weighted - average | ||||||||||||||
exercise price | exercise price | ||||||||||||||||
Options outstanding at beginning of period | 1,014,115 | $ | 27.79 | 921,040 | $ | 26.21 | |||||||||||
Granted | — | $ | — | 156,160 | $ | 36.29 | |||||||||||
Exercised | (23,462 | ) | $ | 24.11 | (64,283 | ) | $ | 23.48 | |||||||||
Forfeited or expired | (17,168 | ) | $ | 31.3 | (39,432 | ) | $ | 30.93 | |||||||||
Options outstanding at September 27, 2013 | 973,485 | $ | 27.82 | 973,485 | $ | 27.82 | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: | ||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 27, | September 28, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected option term (years) | 5.2 | 5.4 | |||||||||||||||
Expected volatility | 45.5 | % | 46.5 | % | |||||||||||||
Risk-free interest rate | 0.9 | % | 0.9 | % | |||||||||||||
Expected dividend yield | 2 | % | 1.9 | % | |||||||||||||
Per share fair value of options granted | $ | 12.38 | $ | 12 | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted Stock activity is as follows: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 27, 2013 | September 27, 2013 | ||||||||||||||||
Restricted Stock | Weighted- | Restricted Stock | Weighted- | ||||||||||||||
Awards | average grant | Awards | average grant | ||||||||||||||
date fair value | date fair value | ||||||||||||||||
Restricted Stock outstanding at beginning of period | 222,850 | $ | 31.51 | 251,359 | $ | 28.3 | |||||||||||
Granted | — | $ | — | 89,155 | $ | 35.67 | |||||||||||
Vested | (9,459 | ) | $ | 28.14 | (116,076 | ) | $ | 27.62 | |||||||||
Forfeited or expired | (15,662 | ) | $ | 32.39 | (26,709 | ) | $ | 31.42 | |||||||||
Restricted Stock outstanding at September 27, 2013 | 197,729 | $ | 31.6 | 197,729 | $ | 31.6 | |||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Summarized financial information by business segment is as follows: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
In thousands | September 27, | September 28, | September 27, | September 28, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales: | |||||||||||||||||
Distribution | $ | 272,951 | $ | 258,282 | $ | 800,352 | $ | 763,779 | |||||||||
Aerospace | 150,712 | 151,285 | 443,111 | 429,733 | |||||||||||||
Net sales | $ | 423,663 | $ | 409,567 | $ | 1,243,463 | $ | 1,193,512 | |||||||||
Operating income: | |||||||||||||||||
Distribution | $ | 14,675 | $ | 12,925 | $ | 32,974 | $ | 39,405 | |||||||||
Aerospace | 27,638 | 24,410 | 77,227 | 66,469 | |||||||||||||
Net loss on sale of assets | — | (53 | ) | (100 | ) | (21 | ) | ||||||||||
Corporate expense | (10,892 | ) | (12,419 | ) | (33,896 | ) | (36,256 | ) | |||||||||
Operating income from continuing operations | 31,421 | 24,863 | 76,205 | 69,597 | |||||||||||||
Interest expense, net | 3,113 | 2,922 | 9,344 | 8,622 | |||||||||||||
Other expense (income), net | (21 | ) | (64 | ) | 368 | (288 | ) | ||||||||||
Earnings before income taxes from continuing operations | 28,329 | 22,005 | 66,493 | 61,263 | |||||||||||||
Income tax expense | 9,634 | 7,221 | 22,752 | 21,269 | |||||||||||||
Earnings from continuing operations | $ | 18,695 | $ | 14,784 | $ | 43,741 | $ | 39,994 | |||||||||
Shareholders_Equity_and_Accumu1
Shareholders' Equity and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2013 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Schedule of Stockholders Equity | Changes in shareholders’ equity for the nine months ended September 27, 2013, were as follows: | ||||||||
In thousands | |||||||||
Balance at December 31, 2012 | $ | 420,193 | |||||||
Comprehensive income | 48,565 | ||||||||
Dividends declared | (12,834 | ) | |||||||
Employee stock plans and related tax benefit | 4,002 | ||||||||
Purchase of treasury shares | (644 | ) | |||||||
Share-based compensation expense | 4,056 | ||||||||
Balance at September 27, 2013 | $ | 463,338 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown below: | ||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||
September 27, 2013 | September 27, 2013 | ||||||||
In thousands | |||||||||
Foreign currency translation: | |||||||||
Beginning balance | $ | (21,273 | ) | $ | (16,515 | ) | |||
Net gain/(loss) on foreign currency translation | 4,669 | (89 | ) | ||||||
Reclassification to net income | — | — | |||||||
Other comprehensive income/(loss), net of tax | 4,669 | (89 | ) | ||||||
Ending balance | $ | (16,604 | ) | $ | (16,604 | ) | |||
Pension and other post-retirement benefits(a): | |||||||||
Beginning balance | $ | (101,600 | ) | $ | (104,551 | ) | |||
Reclassification to net income | |||||||||
Amortization of prior service cost, net of tax expense of $10 and $30, respectively | 15 | 45 | |||||||
Amortization of net loss, net of tax expense of $931 and $2,721, respectively | 1,521 | 4,442 | |||||||
Other comprehensive income/(loss), net of tax | 1,536 | 4,487 | |||||||
Ending balance | $ | (100,064 | ) | $ | (100,064 | ) | |||
Derivative instruments(b): | |||||||||
Beginning balance | $ | (463 | ) | $ | (524 | ) | |||
Net loss on derivative instruments, net of tax benefit of $98 and $71, respectively | (158 | ) | (114 | ) | |||||
Reclassification to net income, net of tax expense of $24 and $35, respectively | 39 | 56 | |||||||
Other comprehensive income/(loss), net of tax | (119 | ) | (58 | ) | |||||
Ending balance | $ | (582 | ) | $ | (582 | ) | |||
Total accumulated other comprehensive income (loss) | $ | (117,250 | ) | $ | (117,250 | ) | |||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See Note 11, Pension Plans for additional information). | |||||||||
(b) See Note 8, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Effective Income Tax Rates | |||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Effective Income Tax Rate | 34 | % | 32.8 | % | 34.2 | % | 34.7 | % |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Net sales of discontinued operations | $0 | $5,046 | $0 | $15,303 |
Income from discontinued operations | 86 | 246 | 86 | 1,191 |
Other income (expense),net, from discontinued operations | 0 | 5 | 0 | -66 |
Earnings from discontinued operations before income taxes | 86 | 251 | 86 | 1,125 |
Income tax expense | 22 | 53 | 22 | 255 |
Earnings from discontinued operations before gain on disposal, net of taxes | 64 | 198 | 64 | 870 |
Gain on disposal of discontinued operations | 0 | 0 | 0 | 0 |
Benefit (Provision) for income taxes on gain | 420 | 0 | 420 | 0 |
Net gain on disposal | 420 | 0 | 420 | 0 |
Total earnings from discontinued operations, net of tax | $484 | $198 | $484 | $870 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Cash | ($143,000) | ($143,000) | ||
Accounts Receivable | 3,122,000 | 3,122,000 | ||
Inventories | 3,423,000 | 3,423,000 | ||
Property, plant and equipment | 446,000 | 446,000 | ||
Other tangible assets | 797,000 | 797,000 | ||
Goodwill | 203,960,000 | 203,960,000 | 192,046,000 | |
Other intangible assets | 4,788,000 | 4,788,000 | ||
Liabilities | -4,248,000 | -4,248,000 | ||
Total of net assets acquired | 17,964,000 | 17,964,000 | ||
Total consideration | 17,821,000 | 17,821,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 19,934,000 | 83,390,000 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 4,200,000 | 4,700,000 | ||
Customer Lists and Relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 4,600,000 | 4,600,000 | ||
Other Intangible Assets [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0 | 0 | ||
Minimum [Member] | Customer Lists and Relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||
Maximum [Member] | Customer Lists and Relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 21 years | |||
2013 Acquisitions [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 16,900,000 | |||
Series of Individually Immaterial Business Acquisitions [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Goodwill | $9,493,000 | $9,493,000 | ||
Series of Individually Immaterial Business Acquisitions [Member] | Minimum [Member] | Customer Lists and Relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Series of Individually Immaterial Business Acquisitions [Member] | Minimum [Member] | Other Intangible Assets [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||
Series of Individually Immaterial Business Acquisitions [Member] | Maximum [Member] | Customer Lists and Relationships [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Series of Individually Immaterial Business Acquisitions [Member] | Maximum [Member] | Other Intangible Assets [Member] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill [Abstract] | ||||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Restructuring_Costs_Details
Restructuring Costs (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve at December 31, 2012 | $0 | |
Provision | 3,533 | |
Cash payments | -2,559 | |
Restructuring Reserve at September 27, 2013 | 974 | |
Employee Severance [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve at December 31, 2012 | 0 | |
Provision | 3,283 | |
Cash payments | -2,329 | |
Restructuring Reserve at September 27, 2013 | 954 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve at December 31, 2012 | 0 | [1] |
Provision | 250 | [1] |
Cash payments | -230 | [1] |
Restructuring Reserve at September 27, 2013 | $20 | [1] |
Distribution [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of Employees affected by Restructuring | 110 | |
Number of facilities exited from restructuring | 5 | |
[1] | Includes costs associated with the consolidation of facilities. |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less allowance for doubtful accounts | ($3,485) | ($3,148) |
Accounts receivable, net | 216,223 | 180,798 |
Contract changes, negotiated settlements and claims for unanticipated contract costs | 0 | 397 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 142,805 | 117,426 |
U.S. Government [Member] | Billed Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 23,488 | 18,261 |
U.S. Government [Member] | Unbilled Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 2,562 | 2,568 |
Commercial and Other Government [Member] | Billed Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 50,275 | 45,547 |
Commercial and Other Government [Member] | Unbilled Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $578 | $144 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value of Financial Instruments not carried at Fair Value (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $286,682 | $259,585 |
Portion at Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 310,057 | 287,595 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 106,626 | 105,260 |
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 142,966 | 144,460 |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 180,056 | 154,325 |
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $167,091 | $143,135 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $114 | $1,506 |
Total Assets | 114 | 1,506 |
Derivative Liabilities | 185 | |
Total Liabilities | 185 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative Liabilities | 0 | |
Total Liabilities | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 114 | 1,506 |
Total Assets | 114 | 1,506 |
Derivative Liabilities | 185 | |
Total Liabilities | 185 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative Liabilities | 0 | |
Total Liabilities | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments Derivatives Designated as Cash Flow Hedges (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Sep. 27, 2013 | Sep. 27, 2013 |
Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Minimum [Member] | Maximum [Member] | |||||
Derivative [Line Items] | ||||||||||||
Derivative Asset, Notional Amount | $2,829 | $4,110 | ||||||||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 185 | 185 | 0 | |||||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | -256 | 0 | -185 | 0 | -256 | -185 | 0 | |||||
Derivative Liability, Notional Amount | $70,000 | $90,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments Derivatives Not Designated as Hedging Instruments (Details) | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Feb. 12, 2009 | Feb. 12, 2009 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | Assets [Member] | |
AUD | AUD | USD ($) | USD ($) | USD ($) | USD ($) | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Two [Member] | Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Six [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Foreign Exchange Contract Eight [Member] | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Assets [Member] | Derivative Financial Instruments, Assets [Member] | |
USD ($) | USD ($) | USD ($) | USD ($) | AUD | Foreign Exchange Contract Two [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | Other Expense [Member] | |||||||
AUD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||||||
Derivative Asset, Notional Amount | 0 | 3,408,000 | $2,829,000 | $4,110,000 | ||||||||||||||||||||
Foreign exchange contracts, Other current assets / Other assets | 114,000 | 1,506,000 | 0 | 1,345,000 | ||||||||||||||||||||
Foreign exhange contract, Other current assets | 114,000 | 161,000 | ||||||||||||||||||||||
Derivative Liabilities | 36,500,000 | |||||||||||||||||||||||
Due to the Commonwealth of Australia | 39,500,000 | |||||||||||||||||||||||
Foreign exchange contracts, Gain (Loss) Recognized in Income, Net | $0 | $79,000 | $0 | $362,000 | ($136,000) | $104,000 | $47,000 | $176,000 | ($136,000) | $183,000 | $47,000 | $538,000 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments Derivatives Overview (Details) (Cash Flow Hedging [Member], Designated as Hedging Instrument [Member], USD $) | Sep. 27, 2013 |
In Millions, unless otherwise specified | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Foreign Currency Cash Flow Hedge Gain be Reclassified During Next 12 Months | $0.20 |
Inventories_Schedule_of_Invent
Inventories Schedule of Inventory (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Merchandise for Resale | $137,577 | $137,426 |
Contracts and other work in process | 236,001 | 216,233 |
Finished Goods (including certain general stock materials) | 11,362 | 13,726 |
Inventory, Net | $384,940 | $367,385 |
Inventories_Inventory_due_to_c
Inventories Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs | $11,599 | $6,861 |
Inventories_Other_Significant_
Inventories Other Significant Inventory (Details) (USD $) | 8-May-13 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | Dec. 31, 2012 | Sep. 27, 2013 |
In Millions, unless otherwise specified | Equipment | K-MAX® [Member] | K-MAX® [Member] | SH 2GA Super Seasprite Program [Member] | SH 2GA Super Seasprite Program [Member] | SH 2 inventory |
Inventory, Noncurrent | $17.40 | $18 | $52.60 | $22.50 | ||
Inventory, Gross | 48.3 | |||||
SH 2G(I) New Zealand Contract Value | $120.60 | |||||
SH-2G(I) Aircraft Sold | 10 |
Inventories_Long_term_contract
Inventories Long term contracts percentage-of-completion accounting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Inventory Disclosure [Abstract] | ||||
Net increase (decrease) in operating income from the quarterly impact of revisions in contracts | ($0.10) | ($0.30) | ($2.80) | ($1.80) |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, Net (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | $206,227 | |
Accumulated impairment | -14,181 | |
Net balance at beginning of period | 192,046 | |
Additions | 11,978 | |
Goodwill impairment | 0 | |
Foreign currency translation | -64 | |
Net balance at end of period | 203,960 | |
Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 96,155 | |
Accumulated impairment | 0 | |
Net balance at beginning of period | 96,155 | |
Additions | 9,493 | |
Goodwill impairment | 0 | |
Foreign currency translation | -16 | |
Net balance at end of period | 105,632 | |
Aerospace [Member] | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 110,072 | |
Accumulated impairment | -14,181 | |
Net balance at beginning of period | 95,891 | |
Additions | 2,485 | |
Goodwill impairment | 0 | |
Foreign currency translation | -48 | |
Net balance at end of period | 98,328 | |
Kaman Composites VT [Member] | ||
Goodwill [Roll Forward] | ||
Net balance at end of period | 18,800 | |
Kaman Composites UK [Member] | ||
Goodwill [Roll Forward] | ||
Net balance at end of period | 31,800 | |
Kaman Engineering Services [Member] | ||
Goodwill [Roll Forward] | ||
Net balance at end of period | $8,500 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, Net Other Intangible Assets (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $118,131 | $113,164 |
Accumulated Amortization | -27,172 | -20,251 |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 108,688 | 103,894 |
Accumulated Amortization | -21,369 | -15,541 |
Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,695 | 2,655 |
Accumulated Amortization | -1,483 | -1,128 |
Non-Compete Agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 6,112 | 5,979 |
Accumulated Amortization | -3,819 | -3,091 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 636 | 636 |
Accumulated Amortization | ($501) | ($491) |
Amortization period, in years | 17 years | |
Minimum [Member] | Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 6 years | |
Minimum [Member] | Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 3 years | |
Minimum [Member] | Non-Compete Agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 1 year | |
Maximum [Member] | Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 21 years | |
Maximum [Member] | Trademarks and Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 7 years | |
Maximum [Member] | Non-Compete Agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 9 years |
Pension_Plan_Pension_plan_net_
Pension Plan Pension plan net periodic benefit costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Service cost for benefits earned during the year | $3,587 | $3,519 | $10,761 | $10,557 |
Interest cost on projected benefit obligation | 6,399 | 6,578 | 19,197 | 19,734 |
Expected return on plan assets | -10,337 | -9,470 | -31,011 | -28,409 |
Amortization of prior service cost (credit) | 25 | 24 | 75 | 74 |
Recognized net loss | 2,387 | 1,962 | 6,968 | 5,883 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 0 | ||
Net pension benefit cost | 2,061 | 2,613 | 5,990 | 7,839 |
Supplemental Employee Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure | ||||
Service cost for benefits earned during the year | 85 | 96 | 255 | 287 |
Interest cost on projected benefit obligation | 78 | 105 | 233 | 315 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Recognized net loss | 65 | 39 | 195 | 118 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 277 | 0 | ||
Net pension benefit cost | $228 | $240 | $960 | $720 |
Pension_Plan_Contributions_Det
Pension Plan Contributions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Qualified Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Contributions paid-to-date | $10,000 | $10,000 |
Defined Benefit Plan, Expected Contributions | 0 | |
Supplemental Employee Retirement Plans [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Contributions paid-to-date | 2,158 | 1,550 |
SERP, Expected contributions | $133 |
Commitments_and_Contingencies_
Commitments and Contingencies Revenue Sharing Agreement with the Commonwealth of Australia (Details) | 8-May-13 | Sep. 27, 2013 | Sep. 27, 2013 | Apr. 02, 2013 |
In Millions, unless otherwise specified | USD ($) | Commonwealth of Australia [Member] | Commonwealth of Australia [Member] | Commonwealth of Australia [Member] |
Equipment | Revenue Sharing Agreement [Member] | Revenue Sharing Agreement [Member] | Revenue Sharing Agreement [Member] | |
SH 2GA Super Seasprite Program [Member] | SH 2GA Super Seasprite Program [Member] | SH 2GA Super Seasprite Program [Member] | ||
AUD | USD ($) | USD ($) | ||
aircraft | ||||
Loss Contingencies [Line Items] | ||||
SH 2G(I) New Zealand Contract Value | $120.60 | $120.60 | ||
SH-2G(I) Aircraft Sold | 10 | 10 | ||
Cumulative Payments, Contractual Obligation | 39.5 | |||
Contractual Obligation | $6.70 |
Commitments_and_Contingencies_1
Commitments and Contingencies Textuals (Details) | 9 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2011 | Dec. 31, 2008 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2012 |
Moosup [Member] | New Hartford [Member] | Bloomfield [Member] | United Kingdom [Member] | United Kingdom [Member] | United Kingdom [Member] | Other accruals and payables [Member] | Other accruals and payables [Member] | Other accruals and payables [Member] | Other accruals and payables [Member] | Wichita Matter [Member] | |
USD ($) | USD ($) | USD ($) | GBP (£) | GBP (£) | GBP (£) | Moosup [Member] | New Hartford [Member] | Bloomfield [Member] | United Kingdom [Member] | ||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Loss Contingencies [Line Items] | |||||||||||
Percentage of consolidated revenue | 1.20% | ||||||||||
Accrual for Environmental Loss Contingencies | $4.50 | $2.20 | £ 0.3 | $0.20 | $0.30 | $2 | $0.50 | ||||
Accrual for Environmental Loss Contingencies, Payments | 2.5 | 0.5 | 6.1 | 1.1 | |||||||
Site Contingency, Accrual, Discount Amount | 10.3 | ||||||||||
Site Contingency, Accrual, Undiscounted Amount | 20.8 | ||||||||||
Site Contingency, Accrual, Discount Rate | 8.00% | ||||||||||
Environmental Exit Costs, Anticipated Cost | 1.6 | ||||||||||
Enviromental Remediation Liability Released to Income | £ 0.2 |
Computation_of_Earnings_Per_Sh2
Computation of Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Nov. 30, 2010 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Equity awards granted to employees [Member] | Equity awards granted to employees [Member] | Equity awards granted to employees [Member] | Equity awards granted to employees [Member] | Convertible Debt Securities [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | |||||
Convertible Debt [Member] | |||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Earnings from continuing operations | $18,695,000 | $14,784,000 | $43,741,000 | $39,994,000 | |||||||||
Earnings from discontinued operations, net of taxes | 64,000 | 198,000 | 64,000 | 870,000 | |||||||||
Gain on disposal of discontinued operations, net of taxes | 420,000 | 0 | 420,000 | 0 | |||||||||
Net earnings | 19,179,000 | 14,982,000 | 44,225,000 | 40,864,000 | |||||||||
Weighted Average Number of Shares Outstanding, Basic | 26,770,000 | 26,455,000 | 26,721,000 | 26,380,000 | |||||||||
Basic earnings per share from continuing operations | $0.70 | $0.56 | $1.64 | $1.52 | |||||||||
Basic earnings per share from discontinued operations | $0 | $0.01 | $0 | $0.03 | |||||||||
Basic earnings per share from disposal of discontinued operations | $0.02 | $0 | $0.02 | $0 | |||||||||
Basic earnings per share | $0.72 | $0.57 | $1.66 | $1.55 | |||||||||
Weighted average shares issuable on exercise of dilutive stock options | 164,000 | 168,000 | 156,000 | 160,000 | |||||||||
Weighted average shares issuable on exercise of convertible notes | 299,000 | 0 | 185,000 | 0 | |||||||||
Weighted Average Number of Shares Outstanding, Diluted | 27,233,000 | 26,623,000 | 27,062,000 | 26,540,000 | |||||||||
Diluted earnings per share from continuing operations | $0.68 | $0.55 | $1.61 | $1.51 | |||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | $0 | $0.01 | $0 | $0.03 | |||||||||
Diluted earnings per share from disposal of discontinued operations | $0.02 | $0 | $0.02 | $0 | |||||||||
Diluted earnings per share | $0.70 | $0.56 | $1.63 | $1.54 | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 405,505 | 336,893 | 429,541 | 351,103 | 3,405,585 | 3,397,902 | 3,403,710 | 3,395,861 | |||||
Convertible Notes, Face Amount | $115,000,000 |
ShareBased_Arrangements_2013_M
Share-Based Arrangements 2013 Management Incentive Plan (Details) (2013 Mangement Incentive Plan [Member]) | 9 Months Ended |
Sep. 27, 2013 | |
2013 Mangement Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,250,000 |
Shares issued pursuant to Full Value Awards rate | 3 |
Shares issued upon exercise of stock options or stock appreciation rights, share authorization rate | 1 |
ShareBased_Arrangements_Compen
Share-Based Arrangements Compensation Arrangements by Share-based Payment Award (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation expense | $991 | $1,229 | $4,056 | $4,809 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation expense | 377 | 403 | 1,227 | 1,474 |
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation expense | 496 | 711 | 2,480 | 3,007 |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based compensation expense | $118 | $115 | $349 | $328 |
ShareBased_Arrangements_Stock_
Share-Based Arrangements Stock Options Activity (Details) (Stock Options [Member], USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Mar. 29, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at beginning of the period (in shares) | 921,040 | 1,014,115 | |||
Granted (in shares) | 0 | 156,160 | |||
Exercised (in shares) | -23,462 | -64,283 | |||
Forfeited or expired (in shares) | -17,168 | -39,432 | |||
Outstanding at September 27, 2013 (in shares) | 973,485 | 973,485 | 1,014,115 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Options outstanding at Beginning of Period, Weighted average-exercise price (usd per share) | $27.82 | $27.82 | $27.79 | $26.21 | |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $0 | $36.29 | |||
Exercised, Weighted average-exercise price (usd per share) | $24.11 | $23.48 | |||
Forfeited or expired, Weighted average exercise price (usd per share) | $31.30 | $30.93 | |||
Options outstanding at September 27, 2013, Weighted average-exercise price (usd per share) | $27.82 | $27.82 | $27.79 | $26.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Expected option term | 5 years 2 months | 5 years 4 months 8 days | |||
Expected volatility | 45.50% | 46.50% | |||
Risk-free interest rate | 0.90% | 0.90% | |||
Expected dividend yield | 2.00% | 1.90% | |||
Per share fair value of options granted | $12.38 | $12 |
ShareBased_Arrangements_Restri
Share-Based Arrangements Restricted Stock Activity (Details) (Restricted Stock Awards [Member], USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 27, 2013 | Sep. 27, 2013 | Mar. 29, 2013 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted Stock outstanding at beginning of the period (in shares) | 251,359 | 222,850 | |
Granted (in shares) | 0 | 89,155 | |
Vested (in shares) | -9,459 | -116,076 | |
Forfeited or expired (in shares) | -15,662 | -26,709 | |
Restricted Stock outstanding at September 27, 2013 (in shares) | 197,729 | 197,729 | 222,850 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Restricted Stock outstanding at Beginning of Period, Weighted-average grant date fair value (usd per share) | $28.30 | $31.51 | |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $0 | $35.67 | |
Vested, Weighted Average Grant Date Fair Value (usd per share) | $28.14 | $27.62 | |
Forfeited or expired, Weighted Average Grant Date Fair Value (usd per share) | $32.39 | $31.42 | |
Restricted Stock outstanding at September 27, 2013, Weighted-average grant date fair value (usd per share) | $31.60 | $31.60 | $31.51 |
Segment_and_Geographic_Informa2
Segment and Geographic Information Reconciliation of Income From Segements to Consolidation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
segment | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Number of Operating Segments | 2 | |||
Net sales | $423,663 | $409,567 | $1,243,463 | $1,193,512 |
Operating income from continuing operations | 31,421 | 24,863 | 76,205 | 69,597 |
Net gain (loss) on sale of assets | 0 | -53 | -100 | -21 |
Interest expense, net | 3,113 | 2,922 | 9,344 | 8,622 |
Other (income) expense, net | -21 | -64 | 368 | -288 |
Earnings from continuing operations before income taxes | 28,329 | 22,005 | 66,493 | 61,263 |
Income tax expense | 9,634 | 7,221 | 22,752 | 21,269 |
Earnings from continuing operations | 18,695 | 14,784 | 43,741 | 39,994 |
Distribution [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | 272,951 | 258,282 | 800,352 | 763,779 |
Operating income from continuing operations | 14,675 | 12,925 | 32,974 | 39,405 |
Aerospace [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net sales | 150,712 | 151,285 | 443,111 | 429,733 |
Operating income from continuing operations | 27,638 | 24,410 | 77,227 | 66,469 |
Unallocated Amount to Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net gain (loss) on sale of assets | 0 | -53 | -100 | -21 |
Corporate Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income from continuing operations | ($10,892) | ($12,419) | ($33,896) | ($36,256) |
Shareholders_Equity_and_Accumu2
Shareholders' Equity and Accumulated Other Comprehensive Income Changes in Shareholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance at December 31, 2012 of Stockholders' Equity Attributable to Parent | $420,193 | |||
Comprehensive Income | 25,265 | 19,304 | 48,565 | 48,435 |
Dividends declared | -12,834 | |||
Employee stock plans and related tax benefit | 4,002 | 5,730 | ||
Purchase of treasury shares | -644 | |||
Share-based compensation expense | 4,056 | |||
Ending Balance at September 27, 2013 of Stockholders' Equity Attributable to Parent | $463,338 | $463,338 |
Shareholders_Equity_and_Accumu3
Shareholders' Equity and Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Jun. 28, 2013 | Dec. 31, 2012 | ||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ($16,604) | ($16,604) | ($21,273) | ($16,515) | ||||||
Net gain/(loss) on foreign currency translation, other comprehensive income before reclassification to earnings, net of tax | 4,669 | -89 | ||||||||
Reclassification to net income, foreign currency translation, net of tax | 0 | 0 | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 4,669 | -89 | ||||||||
Changes in pension and post-retirement benefit plans | -100,064 | [1] | -100,064 | [1] | -101,600 | [1] | -104,551 | [1] | ||
Amortization of prior service cost, other comprehensive income (loss), net of tax, before reclassification to net income | 15 | [1] | 45 | [1] | ||||||
Amortization of net loss, pension and post-retirement, other comprehensive income net of tax, before reclassification to net income | 1,521 | [1] | 4,442 | [1] | ||||||
Pension plan adjustments, net of tax expense | 1,536 | [1] | 1,361 | 4,487 | [1] | 4,084 | ||||
Accumulated Other Comprehensive Income (Loss), Unrealized Gain (Loss) on derivative instruments, Effect Net of Tax | -582 | [2] | -582 | [2] | -463 | [2] | -524 | [2] | ||
Net gain/(loss) on derivative instruments, before reclassification to net income, net of tax | -158 | [2] | -114 | [2] | ||||||
Reclassification to net income, gain/(loss) on derivative instruments, net of tax | 39 | [2] | 56 | [2] | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | -119 | [2] | 0 | -58 | [2] | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -117,250 | -117,250 | -121,590 | |||||||
Tax expense for pension plan adjustments | 941 | 834 | 2,751 | 2,503 | ||||||
Tax expense for the change in unrealized loss on derivative instruments | 98 | 71 | ||||||||
Tax effect on gain/loss on derivative instruments reclassified to net income | 24 | 35 | ||||||||
Amortization of prior service cost | ||||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Tax expense for pension plan adjustments | 10 | 30 | ||||||||
Amortization of net loss | ||||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Tax expense for pension plan adjustments | $931 | $2,721 | ||||||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (See Note 11, Pension Plans for additional information). | |||||||||
[2] | See Note 8, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 34.00% | 32.80% | 34.20% | 34.70% |