Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 03, 2015 | Apr. 17, 2015 | |
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 | 3-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 27,227,679 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $10,067 | $12,411 |
Accounts receivable, net | 218,899 | 234,648 |
Inventories | 366,704 | 359,741 |
Deferred income taxes | 26,156 | 25,888 |
Other current assets | 31,793 | 29,568 |
Total current assets | 653,619 | 662,256 |
Property, plant and equipment, net of accumulated depreciation of $188,862 and $183,829 respectively | 146,136 | 147,825 |
Goodwill | 242,209 | 238,581 |
Other intangibles assets, net | 94,678 | 94,491 |
Deferred income taxes | 33,870 | 34,784 |
Other assets | 23,141 | 23,268 |
Total assets | 1,193,653 | 1,201,205 |
Current liabilities: | ||
Current portion of long-term debt | 10,000 | 10,000 |
Accounts payable – trade | 128,102 | 116,787 |
Accrued salaries and wages | 31,781 | 42,214 |
Advances on contracts | 2,690 | 2,406 |
Other accruals and payables | 48,970 | 47,583 |
Income taxes payable | 8,062 | 2,734 |
Total current liabilities | 229,605 | 221,724 |
Long-term debt, excluding current portion | 259,645 | 271,232 |
Deferred income taxes | 2,646 | 3,391 |
Underfunded pension | 130,925 | 141,546 |
Other long-term liabilities | 47,265 | 45,647 |
Commitments and contingencies (Note 11) | ||
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, 27,597,605 and 27,518,226 shares issued, respectively | 27,598 | 27,518 |
Additional paid-in capital | 148,282 | 145,845 |
Retained earnings | 487,838 | 479,984 |
Accumulated other comprehensive income (loss) | -130,058 | -126,261 |
Less 403,307 and 385,942 shares of common stock, respectively, held in treasury, at cost | -10,093 | -9,421 |
Total shareholders’ equity | 523,567 | 517,665 |
Total liabilities and shareholders’ equity | $1,193,653 | $1,201,205 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parentheticals) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated Depreciation | $188,862 | $183,829 |
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 | 27,597,605 | 27,518,226 |
Common Stock held in treasury, at cost (in shares) | 403,307 | 385,942 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Income Statement [Abstract] | ||
Net sales | $442,782 | $407,958 |
Cost of sales | 314,871 | 293,958 |
Gross profit | 127,911 | 114,000 |
Selling, general and administrative expenses | 105,554 | 92,302 |
Net loss on sale of assets | 27 | 114 |
Operating income | 22,330 | 21,584 |
Interest expense, net | 3,327 | 3,131 |
Other expense (income), net | -64 | 80 |
Earnings from continuing operations before income taxes | 19,067 | 18,373 |
Income tax expense | 6,318 | 6,429 |
Earnings from continuing operations | 12,749 | 11,944 |
Earnings from discontinued operations, net of tax | 0 | -487 |
Net earnings | $12,749 | $11,457 |
Earnings per share: | ||
Basic earnings per share from continuing operations | $0.47 | $0.45 |
Basic earnings per share from discontinued operations | $0 | ($0.02) |
Basic earnings per share | $0.47 | $0.43 |
Diluted earnings per share from continuing operations | $0.46 | $0.44 |
Diluted earnings per share from discontinued operations | $0 | ($0.02) |
Diluted earnings per share | $0.46 | $0.42 |
Average shares outstanding: | ||
Basic | 27,188 | 26,923 |
Diluted | 27,878 | 27,591 |
Dividends declared per share | $0.18 | $0.16 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $12,749 | $11,457 | ||
Foreign currency translation adjustments | -5,460 | -295 | ||
Unrealized gain on derivative instruments, net of tax expense of $45 and $9, respectively | 75 | [1] | 69 | [1] |
Change in pension and post-retirement benefit plan liabilities, net of tax expense of $961 and $402, respectively | 1,588 | [2] | 664 | [2] |
Other Comprehensive Income (Loss) | -3,797 | 438 | ||
Comprehensive Income | $8,952 | $11,895 | ||
[1] | See Note 7, 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 10, Pension Plans for additional information.) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Tax expense (benefit) for the change in unrealized gain (loss) on derivative instruments | $45 | $9 |
Tax expense for pension plan adjustments | $961 | $402 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Cash flows from operating activities: | ||
Earnings from continuing operations | $12,749 | $11,944 |
Adjustments to reconcile earnings from continuing operations to net cash provided by (used in) operating activities of continuing operations: | ||
Depreciation and amortization | 9,370 | 8,136 |
Accretion of convertible notes discount | 499 | 473 |
Provision for doubtful accounts | 628 | 13 |
Net loss on sale of assets | 27 | 114 |
Net loss on derivative instruments | 136 | 87 |
Stock compensation expense | 1,605 | 1,314 |
Excess tax benefit from share-based compensation arrangements | -168 | -522 |
Deferred income taxes | -973 | 1,844 |
Changes in assets and liabilities, excluding effects of acquisitions/divestures: | ||
Accounts receivable | 16,854 | -22,564 |
Inventories | -7,109 | 11,829 |
Income tax refunds receivable | 0 | 2,297 |
Other current assets | -2,217 | -3,135 |
Accounts payable-trade | 10,754 | -7,565 |
Accrued Contract losses | -111 | -738 |
Advances on contracts | 284 | -7,139 |
Other accruals and payables | -7,329 | -3,107 |
Income taxes payable | 5,319 | 699 |
Pension liabilities | -8,075 | -9,309 |
Other long-term liabilities | 464 | 3,774 |
Net cash provided by (used in) operating activities of continuing operations | 32,707 | -11,555 |
Net cash provided by (used in) operating activities of discontinued operations | 0 | -415 |
Net cash provided by (used in) operating activities | 32,707 | -11,970 |
Cash flows from investing activities: | ||
Proceeds from sale of assets | 25 | 3 |
Expenditures for property, plant & equipment | -7,195 | -11,660 |
Acquisition of businesses | -10,956 | -160 |
Other, net | -575 | -655 |
Cash used in investing activities of continuing operations | -18,701 | -12,472 |
Cash provided by investing activities of discontinued operations | 0 | 3 |
Cash used in investing activities | -18,701 | -12,469 |
Cash flows from financing activities: | ||
Net borrowings under revolving credit agreements | -8,509 | 15,995 |
Debt repayment | -2,500 | 0 |
Net change in book overdraft | -913 | 8,389 |
Proceeds from exercise of employee stock awards | 911 | 2,120 |
Purchase of treasury shares | -671 | -687 |
Dividends paid | -4,341 | -4,298 |
Other | 0 | 0 |
Windfall tax benefit | 168 | 522 |
Cash provided by (used in) financing activities of continuing operations | -15,855 | 22,041 |
Cash provided by (used in) financing activities of discontinued operations | 0 | 0 |
Cash provided by (used in) financing activities | -15,855 | 22,041 |
Net increase (decrease) in cash and cash equivalents | -1,849 | -2,398 |
Effect of exchange rate changes on cash and cash equivalents | -495 | 1 |
Cash and cash equivalents at beginning of period | 12,411 | 10,384 |
Cash and cash equivalents at end of period | $10,067 | $7,987 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 03, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The December 31, 2014, 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 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. 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, 2014. 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 first quarters for 2015 and 2014 ended on April 3, 2015, and March 28, 2014, respectively. |
Recent_Accounting_Standards
Recent Accounting Standards | 3 Months Ended |
Apr. 03, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Standards | RECENT ACCOUNTING STANDARDS |
In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU No. 2015-03 amends the FASB Accounting Standards Codification (the "Codification") to require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related liability. Such treatment is consistent with the current presentation of debt discounts or premiums. As it stood prior to amendment, debt issuance costs were reported in the balance sheet as an asset (i.e., a deferred charge), whereas debt discounts and premiums were, and remain, reported as deductions from or additions to the debt itself. Recognition and measurement guidance for debt issuance costs is not affected by amendments to the Codification. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In February 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810)." ASU 2015-02 focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)." The new standard eliminates the concept of extraordinary items and their segregation from the results of ordinary operations and expands presentation and disclosure guidance to include items that are both unusual in nature and occur infrequently. The new standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, "Presentation of Financial Statements - Going Concern (ASC Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, "Compensation - Stock Compensation (ASC Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could Be Achieved after the Requisite Service Period." The objective of this standard update is to eliminate inconsistent practices with regards to the accounting treatment of share-based payment awards. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company does not expect these changes to have a material impact on its consolidated financial statements. | |
2. RECENT ACCOUNTING STANDARDS (CONTINUED) | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (ASC Topic 606)." The objective of this standard update is to remove inconsistent practices with regards to revenue recognition between US GAAP and International Financial Reporting Standards ("IFRS"). The standard intends to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. On April 1, 2015, the FASB proposed a one-year deferral of this standard. If finalized, the provisions of this ASU will be effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for periods beginning after December 15, 2016. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. | |
In April 2014, the FASB issued ASU No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." This standard update requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity's financial results or a business activity classified as held for sale should be reported as discontinued operations. The standard also expands the disclosures for discontinued operations and requires new disclosures related to individually material disposals that do not meet the definition of a discontinued operation. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2014. The Company does not expect these changes to have a material impact on its consolidated financial statements. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 3 Months Ended |
Apr. 03, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS |
On December 19, 2014, the Company sold the Distribution segment's Mexican business unit, Delamac de Mexico, S.A. de C.V. ("Delamac"). As a result, the Company has reported the results of operations and consolidated financial position of this component as discontinued operations within the condensed consolidated financial statements for all periods presented. For the three-month fiscal period ended April 3, 2015, there was no earnings or loss from discontinued operations. For the three-month fiscal period ended March 28, 2014, the Company recorded $6.0 million in net sales from discontinued operations, $0.7 million of losses and a related tax benefit of $0.2 million, resulting in $0.5 million of net loss from discontinued operations. |
Acquisitions_Notes
Acquisitions (Notes) | 3 Months Ended |
Apr. 03, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS |
On January 30, 2015, the Company acquired substantially all of the operating assets of G.C. Fabrication, Inc. ("GCF") for a purchase price of $9.5 million. Located in Northvale, New Jersey, GCF is a premier Schneider Electric/Square D distributor and carries a variety of electrical power, automation, process controls, specialized HVAC, water and wastewater systems, communication and networking devices from a premier set of global manufacturers. The acquisition of GCF has expanded the Company's automation, control & energy product offerings into the New York metro market. This acquisition is immaterial to the Company's results of operations and financial position. |
Accounts_Receivable
Accounts Receivable | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET | ||||||||
Accounts receivable, net consists of the following: | |||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Trade receivables | $ | 155,208 | $ | 141,481 | |||||
U.S. Government contracts: | |||||||||
Billed | 16,302 | 21,909 | |||||||
Costs and accrued profit – not billed | 2,621 | 1,581 | |||||||
Commercial and other government contracts: | |||||||||
Billed | 42,163 | 51,166 | |||||||
Costs and accrued profit – not billed | 6,253 | 21,719 | |||||||
Less allowance for doubtful accounts | (3,648 | ) | (3,208 | ) | |||||
Accounts receivable, net | $ | 218,899 | $ | 234,648 | |||||
5. ACCOUNTS RECEIVABLE, NET (CONTINUED) | |||||||||
Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | |||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 900 | $ | 4,561 | |||||
Total | $ | 900 | $ | 4,561 | |||||
The decrease in the above balance primarily relates to receipt of payment from a customer for claims related to a composite aerostructures program. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||
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: | |||||||||||||||||
April 3, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
In thousands | |||||||||||||||||
Long-term debt: | |||||||||||||||||
Level 1 | $ | 109,523 | $ | 149,722 | $ | 109,024 | $ | 145,188 | |||||||||
Level 2 | 160,122 | 152,681 | 172,208 | 164,204 | |||||||||||||
Total | $ | 269,645 | $ | 302,403 | $ | 281,232 | $ | 309,392 | |||||||||
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 transactions occurred. | |||||||||||||||||
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. | |||||||||||||||||
6. FAIR VALUE MEASUREMENTS (CONTINUED) | |||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||
The Company holds derivative instruments for 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 and other assets on the Consolidated Balance Sheet at April 3, 2015, and December 31, 2014. Based on the Company's continued ability to trade and enter into forward contracts and interest rate swaps, we consider the markets for our fair value instruments to be active. These contracts are not material to the Company's Condensed Consolidated Financial Statements for the three-month fiscal periods ended April 3, 2015, and March 28, 2014. | |||||||||||||||||
The Company evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of April 3, 2015, such credit risks have not had an adverse impact on the fair value of these instruments. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Apr. 03, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS |
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. | |
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 are 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. | |
The Term Loan Facility of the Company's Credit Agreement (“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. These agreements are not material to the Company's condensed consolidated financial statements for the three-month fiscal periods ended April 3, 2015, and March 28, 2014. | |
During the second quarter of 2014, the Company entered into 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. These contracts were entered into as a result of forecasted foreign currency transactions associated with the New Zealand contract to deliver ten SH-2G(I) aircraft and were designated as cash flow hedges. During the third quarter of 2014, the Company dedesignated these forward contracts, due to a change in the timing of payments. These contracts are not material to the Company's condensed consolidated financial statements for the three-month fiscal periods ended April 3, 2015, and March 28, 2014. |
Inventories
Inventories | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | INVENTORIES | ||||||||
Inventories consist of the following: | |||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Merchandise for resale | $ | 153,713 | $ | 149,837 | |||||
Raw materials | 19,830 | 19,954 | |||||||
Contracts and other work in process | 182,123 | 179,002 | |||||||
Finished goods (including certain general stock materials) | 11,038 | 10,948 | |||||||
Total | $ | 366,704 | $ | 359,741 | |||||
Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: | |||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 13,770 | $ | 13,337 | |||||
Total | $ | 13,770 | $ | 13,337 | |||||
K-MAX® inventory of $18.4 million and $17.2 million as of April 3, 2015, and December 31, 2014, 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 April 3, 2016, based upon the anticipation of supporting the fleet for the foreseeable future. | |||||||||
At April 3, 2015, and December 31, 2014, $19.5 million and $23.5 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 contract, management believes that $6.2 million of the SH-2G(I) inventory will be sold after April 3, 2016. | |||||||||
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. For the three-month fiscal period ended April 3, 2015, there was a $1.8 million increase in the Company's operating income attributable to changes in contract estimates. This increase was primarily a result of improved performance on the Joint Programmable Fuze ("JPF") program. For the three-month fiscal period ended March 28, 2014, there was a $0.8 million increase in the Company's operating income from changes in contract estimates. This increase was primarily a result of improved performance on the JPF program and material and labor hour improvements on one of our commercial aerostructures programs. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, Net | 3 Months Ended | ||||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||||
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, 2014 | $ | 141,612 | $ | 113,221 | $ | 254,833 | |||||||||||||
Accumulated impairment | — | (16,252 | ) | (16,252 | ) | ||||||||||||||
Net balance at December 31, 2014 | 141,612 | 96,969 | 238,581 | ||||||||||||||||
Additions | 5,559 | — | 5,559 | ||||||||||||||||
Impairments | — | — | — | ||||||||||||||||
Foreign currency translation | — | (1,931 | ) | (1,931 | ) | ||||||||||||||
Ending balance at April 3, 2015 | $ | 147,171 | $ | 95,038 | $ | 242,209 | |||||||||||||
Additions to goodwill for the Company's Distribution segment relate to the acquisition completed during 2015, as discussed in Note 4, Acquisitions. | |||||||||||||||||||
Other intangible assets consisted of: | |||||||||||||||||||
At April 3, | At December 31, | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Amortization | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
Period | Amount | Amortization | Amount | Amortization | |||||||||||||||
In thousands | |||||||||||||||||||
Customer lists / relationships | 6-21 years | $ | 125,549 | $ | (33,917 | ) | $ | 123,005 | $ | (31,868 | ) | ||||||||
Trademarks / trade names | 3-8 years | 3,636 | (2,217 | ) | 3,546 | (2,080 | ) | ||||||||||||
Non-compete agreements and other | 1-9 years | 6,742 | (5,230 | ) | 6,719 | (4,948 | ) | ||||||||||||
Patents | 17 years | 523 | (408 | ) | 523 | (406 | ) | ||||||||||||
Total | $ | 136,450 | $ | (41,772 | ) | $ | 133,793 | $ | (39,302 | ) | |||||||||
The changes in other intangible assets are attributable to changes in foreign currency exchange rates and the acquisition completed during 2015. |
Pension_Plan
Pension Plan | 3 Months Ended | ||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||
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 | ||||||||||||||||
April 3, | March 28, | April 3, | March 28, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 3,533 | $ | 2,940 | $ | 52 | $ | 64 | |||||||||
Interest cost on projected benefit obligation | 6,878 | 7,209 | 79 | 85 | |||||||||||||
Expected return on plan assets | (11,032 | ) | (10,262 | ) | — | — | |||||||||||
Amortization of prior service cost | 14 | 25 | — | — | |||||||||||||
Amortization of net loss | 2,480 | 1,019 | 55 | 22 | |||||||||||||
Net pension cost | $ | 1,873 | $ | 931 | $ | 186 | $ | 171 | |||||||||
10. PENSION PLANS (CONTINUED) | |||||||||||||||||
The following tables show the amounts of contributions made to the Qualified Pension Plan and SERP during each period and the additional contributions the Company expects to make during the remainder of 2015: | |||||||||||||||||
Year-to-date contributions: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
As of April 3, 2015 | As of December 31, 2014 | As of April 3, 2015 | As of December 31, 2014 | ||||||||||||||
In thousands | |||||||||||||||||
Year-to-date contributions | $ | 10,000 | $ | 10,000 | $ | 134 | $ | 819 | |||||||||
Expected additional contributions in 2015: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
In thousands | |||||||||||||||||
Expected additional contributions | $ | — | $ | 397 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
AH-1Z | |
The Company is currently engaged in discussions with its customer to resolve the technical and design issues experienced on the AH-1Z attack helicopter program that caused production and delivery delays. As a result of these technical issues and schedule delays the Company has incurred additional costs outside the scope of work for its original contract and, under the provisions of the contract, has filed claims with its customer requesting additional consideration for work performed. | |
On April 23, 2015, the Company received a warranty claim from its customer for $24.0 million for costs incurred due to rework performed on delivered cabins. The Company is in the process of evaluating this claim; however, based on its preliminary understanding it does not believe there is a legitimate basis for the claim. The Company is working with its customer to reach a mutually acceptable outcome. If a mutually acceptable resolution cannot be agreed upon, the Company intends to vigorously defend itself in this matter. As of April 3, 2015, no amounts have been accrued for this matter. | |
The Company is also in discussions with its customer regarding the acceleration of the delivery of aircraft to the U.S. Marines, which could result in a scope change to the current contract. Based on the outcome of these discussions and the matters described above, the Company may be required to accrue amounts associated with its customer's claim or write-off a portion of the amounts currently recorded in inventory. However, the resolution of these matters cannot be determined at this time. Total program inventory is $45.1 million and there are currently sales orders of $13.2 million in backlog associated with this program. | |
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 the 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 been completed. | |
11. COMMITMENTS AND CONTINGENCIES (CONTINUED) | |
New Hartford - continued | |
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 ($0.7 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 $9.6 million. At April 3, 2015, the Company has $5.0 million accrued for this environmental matter. A portion ($1.7 million) of the accrual related to this property is included in other accruals and payables, and the balance ($3.3 million) 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. | |
Other Environmental Matters | |
The Company has been notified by the Environmental Protection Agency that it is a potentially responsible party ("PRP") at a Superfund Site. At April 3, 2015, 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 all available 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 at this time. 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 | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
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 Company's stock incentive plan and shares issuable on redemption of its Convertible Notes. | |||||||||
For the Three Months Ended | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
In thousands, except per share amounts | |||||||||
Earnings from continuing operations | $ | 12,749 | $ | 11,944 | |||||
Earnings from discontinued operations, net of tax | — | (487 | ) | ||||||
Net earnings | $ | 12,749 | $ | 11,457 | |||||
Basic: | |||||||||
Weighted average number of shares outstanding | 27,188 | 26,923 | |||||||
Earnings per share from continuing operations | $ | 0.47 | $ | 0.45 | |||||
Earnings per share from discontinued operations | — | (0.02 | ) | ||||||
Basic earnings per share | $ | 0.47 | $ | 0.43 | |||||
Diluted: | |||||||||
Weighted average number of shares outstanding | 27,188 | 26,923 | |||||||
Weighted average shares issuable on exercise of dilutive stock options | 137 | 159 | |||||||
Weighted average shares issuable on redemption of convertible notes | 553 | 509 | |||||||
Total | 27,878 | 27,591 | |||||||
Earnings per share from continuing operations | $ | 0.46 | $ | 0.44 | |||||
Earnings per share from discontinued operations | — | (0.02 | ) | ||||||
Diluted earnings per share | $ | 0.46 | $ | 0.42 | |||||
Equity awards | |||||||||
For the three-month fiscal periods ended April 3, 2015, and March 28, 2014, respectively, 501,263 and 442,219 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the period. | |||||||||
Convertible Notes | |||||||||
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 fiscal periods ended April 3, 2015, and March 28, 2014, respectively, 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. | |||||||||
Warrants | |||||||||
Excluded from the diluted earnings per share calculation for the three-month fiscal periods ended April 3, 2015, and March 28, 2014, respectively, are 3,417,392 and 3,409,074, respectively, shares 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 | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||||||||
Share-based Arrangements | SHARE-BASED ARRANGEMENTS | ||||||||
General | |||||||||
The Company accounts for stock options, restricted stock awards, restricted stock units and performance shares as equity awards and measures the cost of all share-based payments, including stock options, at fair value on the grant date and recognizes this cost in the statement of operations. The Company also has an employee stock purchase plan which is accounted for as a liability award. | |||||||||
Compensation expense for stock options, restricted stock awards and restricted stock units is recognized on a straight-line basis over the vesting period of the awards. Share-based compensation expense recorded for the three-month fiscal periods ended April 3, 2015 and March 28, 2014, was $1.6 million and $1.3 million, respectively. | |||||||||
During the first quarter of 2015, the Company issued additional stock awards with market and performance based conditions, bringing the total of these shares to 8,238, assuming a 100% achievement level. The Company measured the cost of these awards based on their fair value at the date of grant to the extent of the probable number of shares to be earned upon vesting. Amortization of this cost will be recorded on a straight-line basis over the requisite service period. Throughout the course of the requisite service period, the Company will monitor the level of achievement compared to the target and adjust the number of shares expected to be earned, and the related compensation expense recorded thereafter, to reflect the updated most probable outcome. Compensation expense for these awards for the three-month fiscal periods ended April 3, 2015, and March 28, 2014, was not material. | |||||||||
Stock option activity was as follows: | |||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | |||||||||
Options | Weighted - average | ||||||||
exercise price | |||||||||
Options outstanding at beginning of period | 904,091 | $ | 31.26 | ||||||
Granted | 202,345 | $ | 39.54 | ||||||
Exercised | (3,803 | ) | $ | 23.22 | |||||
Forfeited or expired | (3,458 | ) | $ | 37.98 | |||||
Options outstanding at April 3, 2015 | 1,099,175 | $ | 32.79 | ||||||
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 Three Months Ended | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
Expected option term (years) | 5.1 | 5.1 | |||||||
Expected volatility | 29 | % | 37.5 | % | |||||
Risk-free interest rate | 1.6 | % | 1.5 | % | |||||
Expected dividend yield | 1.6 | % | 1.7 | % | |||||
Per share fair value of options granted | $ | 9.28 | $ | 11.6 | |||||
13. SHARE-BASED ARRANGEMENTS (CONTINUED) | |||||||||
Restricted Stock Award and Restricted Stock Unit activity was as follows: | |||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | |||||||||
Restricted Stock | Weighted- | ||||||||
average grant | |||||||||
date fair value | |||||||||
Restricted Stock outstanding at beginning of period | 196,553 | $ | 36.29 | ||||||
Granted | 56,240 | $ | 39.49 | ||||||
Vested | (61,144 | ) | $ | 33.95 | |||||
Forfeited or expired | (1,099 | ) | $ | 37.84 | |||||
Restricted Stock outstanding at April 3, 2015 | 190,550 | $ | 37.97 | ||||||
Segment_and_Geographic_Informa
Segment and Geographic Information | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
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 a leading power transmission, motion control, and fluid power industrial distributor with operations throughout the United States. 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 the 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 | |||||||||
In thousands | April 3, | March 28, | |||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
Distribution | $ | 311,471 | $ | 258,896 | |||||
Aerospace | 131,311 | 149,062 | |||||||
Net sales | $ | 442,782 | $ | 407,958 | |||||
Operating income: | |||||||||
Distribution | $ | 12,964 | $ | 11,733 | |||||
Aerospace | 21,821 | 22,021 | |||||||
Net loss on sale of assets | (27 | ) | (114 | ) | |||||
Corporate expense | (12,428 | ) | (12,056 | ) | |||||
Operating income from continuing operations | 22,330 | 21,584 | |||||||
Interest expense, net | 3,327 | 3,131 | |||||||
Other expense (income), net | (64 | ) | 80 | ||||||
Earnings before income taxes from continuing operations | 19,067 | 18,373 | |||||||
Income tax expense | 6,318 | 6,429 | |||||||
Earnings from continuing operations | $ | 12,749 | $ | 11,944 | |||||
Shareholders_Equity_and_Accumu
Shareholders' Equity and Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Stockholders' Equity and Accumulated Other Comprehensive Income | SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||
Changes in shareholders’ equity for the three-month fiscal periods ended April 3, 2015, and March 28, 2014, respectively, were as follows: | |||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | March 28, 2014 | ||||||||
In thousands | |||||||||
Beginning balance | $ | 517,665 | $ | 511,292 | |||||
Comprehensive income | 8,952 | 11,895 | |||||||
Dividends declared | (4,895 | ) | (4,319 | ) | |||||
Employee stock plans and related tax benefit | 911 | 2,120 | |||||||
Purchase of treasury shares | (671 | ) | (687 | ) | |||||
Share-based compensation expense | 1,605 | 1,314 | |||||||
Ending balance | $ | 523,567 | $ | 521,615 | |||||
The components of accumulated other comprehensive income (loss) are shown below: | |||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | March 28, 2014 | ||||||||
In thousands | |||||||||
Foreign currency translation: | |||||||||
Beginning balance | $ | (20,676 | ) | $ | (14,219 | ) | |||
Net gain/(loss) on foreign currency translation | (5,460 | ) | (295 | ) | |||||
Reclassification to net income | — | — | |||||||
Other comprehensive income/(loss), net of tax | (5,460 | ) | (295 | ) | |||||
Ending balance | $ | (26,136 | ) | $ | (14,514 | ) | |||
Pension and other post-retirement benefits(a): | |||||||||
Beginning balance | (105,264 | ) | (66,317 | ) | |||||
Reclassifications to net income: | |||||||||
Amortization of prior service cost, net of tax expense of $5 and $10, respectively | 9 | 15 | |||||||
Amortization of net loss, net of tax expense of $956 and $392, respectively | 1,579 | 649 | |||||||
Other comprehensive income/(loss), net of tax | 1,588 | 664 | |||||||
Ending balance | $ | (103,676 | ) | $ | (65,653 | ) | |||
Derivative instruments(b): | |||||||||
Beginning balance | (321 | ) | (585 | ) | |||||
Net loss on derivative instruments, net of tax expense (benefit) of ($28) and $44, respectively | (45 | ) | (41 | ) | |||||
Reclassification to net income, net of tax expense (benefit) of $73 and ($35), respectively | 120 | 110 | |||||||
Other comprehensive income/(loss), net of tax | 75 | 69 | |||||||
Ending balance | $ | (246 | ) | $ | (516 | ) | |||
Total accumulated other comprehensive income (loss) | $ | (130,058 | ) | $ | (80,683 | ) | |||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | |||||||||
(See Note 10, Pension Plans for additional information.) | |||||||||
(b) See Note 7, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||
Apr. 03, 2015 | |||||||
Income Tax Disclosure [Abstract] | |||||||
Income Taxes | INCOME TAXES | ||||||
For the Three Months Ended | |||||||
April 3, | March 28, | ||||||
2015 | 2014 | ||||||
Effective Income Tax Rate | 33.1 | % | 35 | % | |||
The effective income tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings for the year. The decrease in the effective tax rate for the three-month fiscal period ended April 3, 2015, as compared to the rate for the same period in the prior year is primarily due to favorable adjustments related to amended returns, as well as additional deductions for domestic production activities. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Apr. 03, 2015 | |
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) | 3 Months Ended |
Apr. 03, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The December 31, 2014, 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 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. 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, 2014. 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 first quarters for 2015 and 2014 ended on April 3, 2015, and March 28, 2014, respectively. |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Accounts Receivable, Net [Abstract] | |||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following: | ||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Trade receivables | $ | 155,208 | $ | 141,481 | |||||
U.S. Government contracts: | |||||||||
Billed | 16,302 | 21,909 | |||||||
Costs and accrued profit – not billed | 2,621 | 1,581 | |||||||
Commercial and other government contracts: | |||||||||
Billed | 42,163 | 51,166 | |||||||
Costs and accrued profit – not billed | 6,253 | 21,719 | |||||||
Less allowance for doubtful accounts | (3,648 | ) | (3,208 | ) | |||||
Accounts receivable, net | $ | 218,899 | $ | 234,648 | |||||
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: | ||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 900 | $ | 4,561 | |||||
Total | $ | 900 | $ | 4,561 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||
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: | ||||||||||||||||
April 3, 2015 | December 31, 2014 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||
In thousands | |||||||||||||||||
Long-term debt: | |||||||||||||||||
Level 1 | $ | 109,523 | $ | 149,722 | $ | 109,024 | $ | 145,188 | |||||||||
Level 2 | 160,122 | 152,681 | 172,208 | 164,204 | |||||||||||||
Total | $ | 269,645 | $ | 302,403 | $ | 281,232 | $ | 309,392 | |||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Inventories consist of the following: | ||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Merchandise for resale | $ | 153,713 | $ | 149,837 | |||||
Raw materials | 19,830 | 19,954 | |||||||
Contracts and other work in process | 182,123 | 179,002 | |||||||
Finished goods (including certain general stock materials) | 11,038 | 10,948 | |||||||
Total | $ | 366,704 | $ | 359,741 | |||||
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: | ||||||||
April 3, | December 31, | ||||||||
2015 | 2014 | ||||||||
In thousands | |||||||||
Contract changes, negotiated settlements and claims for unanticipated contract costs | $ | 13,770 | $ | 13,337 | |||||
Total | $ | 13,770 | $ | 13,337 | |||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, Net (Tables) | 3 Months Ended | ||||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||||
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, 2014 | $ | 141,612 | $ | 113,221 | $ | 254,833 | |||||||||||||
Accumulated impairment | — | (16,252 | ) | (16,252 | ) | ||||||||||||||
Net balance at December 31, 2014 | 141,612 | 96,969 | 238,581 | ||||||||||||||||
Additions | 5,559 | — | 5,559 | ||||||||||||||||
Impairments | — | — | — | ||||||||||||||||
Foreign currency translation | — | (1,931 | ) | (1,931 | ) | ||||||||||||||
Ending balance at April 3, 2015 | $ | 147,171 | $ | 95,038 | $ | 242,209 | |||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Other intangible assets consisted of: | ||||||||||||||||||
At April 3, | At December 31, | ||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Amortization | Gross | Accumulated | Gross | Accumulated | |||||||||||||||
Period | Amount | Amortization | Amount | Amortization | |||||||||||||||
In thousands | |||||||||||||||||||
Customer lists / relationships | 6-21 years | $ | 125,549 | $ | (33,917 | ) | $ | 123,005 | $ | (31,868 | ) | ||||||||
Trademarks / trade names | 3-8 years | 3,636 | (2,217 | ) | 3,546 | (2,080 | ) | ||||||||||||
Non-compete agreements and other | 1-9 years | 6,742 | (5,230 | ) | 6,719 | (4,948 | ) | ||||||||||||
Patents | 17 years | 523 | (408 | ) | 523 | (406 | ) | ||||||||||||
Total | $ | 136,450 | $ | (41,772 | ) | $ | 133,793 | $ | (39,302 | ) | |||||||||
Pension_Plan_Tables
Pension Plan (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 03, 2015 | |||||||||||||||||
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 | ||||||||||||||||
April 3, | March 28, | April 3, | March 28, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
In thousands | |||||||||||||||||
Service cost for benefits earned during the year | $ | 3,533 | $ | 2,940 | $ | 52 | $ | 64 | |||||||||
Interest cost on projected benefit obligation | 6,878 | 7,209 | 79 | 85 | |||||||||||||
Expected return on plan assets | (11,032 | ) | (10,262 | ) | — | — | |||||||||||
Amortization of prior service cost | 14 | 25 | — | — | |||||||||||||
Amortization of net loss | 2,480 | 1,019 | 55 | 22 | |||||||||||||
Net pension cost | $ | 1,873 | $ | 931 | $ | 186 | $ | 171 | |||||||||
Schedule of Defined Benefit Plans Disclosures | The following tables show the amounts of contributions made to the Qualified Pension Plan and SERP during each period and the additional contributions the Company expects to make during the remainder of 2015: | ||||||||||||||||
Year-to-date contributions: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
As of April 3, 2015 | As of December 31, 2014 | As of April 3, 2015 | As of December 31, 2014 | ||||||||||||||
In thousands | |||||||||||||||||
Year-to-date contributions | $ | 10,000 | $ | 10,000 | $ | 134 | $ | 819 | |||||||||
Expected additional contributions in 2015: | |||||||||||||||||
Qualified Pension Plan | SERP | ||||||||||||||||
In thousands | |||||||||||||||||
Expected additional contributions | $ | — | $ | 397 | |||||||||||||
Computation_of_Earnings_Per_Sh1
Computation of Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | |||||||||
For the Three Months Ended | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
In thousands, except per share amounts | |||||||||
Earnings from continuing operations | $ | 12,749 | $ | 11,944 | |||||
Earnings from discontinued operations, net of tax | — | (487 | ) | ||||||
Net earnings | $ | 12,749 | $ | 11,457 | |||||
Basic: | |||||||||
Weighted average number of shares outstanding | 27,188 | 26,923 | |||||||
Earnings per share from continuing operations | $ | 0.47 | $ | 0.45 | |||||
Earnings per share from discontinued operations | — | (0.02 | ) | ||||||
Basic earnings per share | $ | 0.47 | $ | 0.43 | |||||
Diluted: | |||||||||
Weighted average number of shares outstanding | 27,188 | 26,923 | |||||||
Weighted average shares issuable on exercise of dilutive stock options | 137 | 159 | |||||||
Weighted average shares issuable on redemption of convertible notes | 553 | 509 | |||||||
Total | 27,878 | 27,591 | |||||||
Earnings per share from continuing operations | $ | 0.46 | $ | 0.44 | |||||
Earnings per share from discontinued operations | — | (0.02 | ) | ||||||
Diluted earnings per share | $ | 0.46 | $ | 0.42 | |||||
ShareBased_Arrangements_Tables
Share-Based Arrangements (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity | Stock option activity was as follows: | ||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | |||||||||
Options | Weighted - average | ||||||||
exercise price | |||||||||
Options outstanding at beginning of period | 904,091 | $ | 31.26 | ||||||
Granted | 202,345 | $ | 39.54 | ||||||
Exercised | (3,803 | ) | $ | 23.22 | |||||
Forfeited or expired | (3,458 | ) | $ | 37.98 | |||||
Options outstanding at April 3, 2015 | 1,099,175 | $ | 32.79 | ||||||
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 Three Months Ended | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
Expected option term (years) | 5.1 | 5.1 | |||||||
Expected volatility | 29 | % | 37.5 | % | |||||
Risk-free interest rate | 1.6 | % | 1.5 | % | |||||
Expected dividend yield | 1.6 | % | 1.7 | % | |||||
Per share fair value of options granted | $ | 9.28 | $ | 11.6 | |||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | Restricted Stock Award and Restricted Stock Unit activity was as follows: | ||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | |||||||||
Restricted Stock | Weighted- | ||||||||
average grant | |||||||||
date fair value | |||||||||
Restricted Stock outstanding at beginning of period | 196,553 | $ | 36.29 | ||||||
Granted | 56,240 | $ | 39.49 | ||||||
Vested | (61,144 | ) | $ | 33.95 | |||||
Forfeited or expired | (1,099 | ) | $ | 37.84 | |||||
Restricted Stock outstanding at April 3, 2015 | 190,550 | $ | 37.97 | ||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Segment Reporting Information, by Segment | Summarized financial information by business segment is as follows: | ||||||||
For the Three Months Ended | |||||||||
In thousands | April 3, | March 28, | |||||||
2015 | 2014 | ||||||||
Net sales: | |||||||||
Distribution | $ | 311,471 | $ | 258,896 | |||||
Aerospace | 131,311 | 149,062 | |||||||
Net sales | $ | 442,782 | $ | 407,958 | |||||
Operating income: | |||||||||
Distribution | $ | 12,964 | $ | 11,733 | |||||
Aerospace | 21,821 | 22,021 | |||||||
Net loss on sale of assets | (27 | ) | (114 | ) | |||||
Corporate expense | (12,428 | ) | (12,056 | ) | |||||
Operating income from continuing operations | 22,330 | 21,584 | |||||||
Interest expense, net | 3,327 | 3,131 | |||||||
Other expense (income), net | (64 | ) | 80 | ||||||
Earnings before income taxes from continuing operations | 19,067 | 18,373 | |||||||
Income tax expense | 6,318 | 6,429 | |||||||
Earnings from continuing operations | $ | 12,749 | $ | 11,944 | |||||
Shareholders_Equity_and_Accumu1
Shareholders' Equity and Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Stockholders' Equity Note [Abstract] | |||||||||
Schedule of Stockholders Equity | Changes in shareholders’ equity for the three-month fiscal periods ended April 3, 2015, and March 28, 2014, respectively, were as follows: | ||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | March 28, 2014 | ||||||||
In thousands | |||||||||
Beginning balance | $ | 517,665 | $ | 511,292 | |||||
Comprehensive income | 8,952 | 11,895 | |||||||
Dividends declared | (4,895 | ) | (4,319 | ) | |||||
Employee stock plans and related tax benefit | 911 | 2,120 | |||||||
Purchase of treasury shares | (671 | ) | (687 | ) | |||||
Share-based compensation expense | 1,605 | 1,314 | |||||||
Ending balance | $ | 523,567 | $ | 521,615 | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown below: | ||||||||
For the Three Months Ended | |||||||||
April 3, 2015 | March 28, 2014 | ||||||||
In thousands | |||||||||
Foreign currency translation: | |||||||||
Beginning balance | $ | (20,676 | ) | $ | (14,219 | ) | |||
Net gain/(loss) on foreign currency translation | (5,460 | ) | (295 | ) | |||||
Reclassification to net income | — | — | |||||||
Other comprehensive income/(loss), net of tax | (5,460 | ) | (295 | ) | |||||
Ending balance | $ | (26,136 | ) | $ | (14,514 | ) | |||
Pension and other post-retirement benefits(a): | |||||||||
Beginning balance | (105,264 | ) | (66,317 | ) | |||||
Reclassifications to net income: | |||||||||
Amortization of prior service cost, net of tax expense of $5 and $10, respectively | 9 | 15 | |||||||
Amortization of net loss, net of tax expense of $956 and $392, respectively | 1,579 | 649 | |||||||
Other comprehensive income/(loss), net of tax | 1,588 | 664 | |||||||
Ending balance | $ | (103,676 | ) | $ | (65,653 | ) | |||
Derivative instruments(b): | |||||||||
Beginning balance | (321 | ) | (585 | ) | |||||
Net loss on derivative instruments, net of tax expense (benefit) of ($28) and $44, respectively | (45 | ) | (41 | ) | |||||
Reclassification to net income, net of tax expense (benefit) of $73 and ($35), respectively | 120 | 110 | |||||||
Other comprehensive income/(loss), net of tax | 75 | 69 | |||||||
Ending balance | $ | (246 | ) | $ | (516 | ) | |||
Total accumulated other comprehensive income (loss) | $ | (130,058 | ) | $ | (80,683 | ) | |||
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. | |||||||||
(See Note 10, Pension Plans for additional information.) | |||||||||
(b) See Note 7, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||
Apr. 03, 2015 | |||||||
Income Tax Disclosure [Abstract] | |||||||
Schedule of Effective Income Tax Rates | |||||||
For the Three Months Ended | |||||||
April 3, | March 28, | ||||||
2015 | 2014 | ||||||
Effective Income Tax Rate | 33.1 | % | 35 | % |
Discontinued_Operations_Discon
Discontinued Operations Discontinued Operations (Details) (USD $) | 3 Months Ended | |
Apr. 03, 2015 | Mar. 28, 2014 | |
Discontinued Operations [Abstract] | ||
Disposal Group, Including Discontinued Operation, Revenue | $6,000,000 | |
Loss from Discontinued Operation, before Income Tax | 700,000 | |
Tax Benefit of Discontinued Operation | 200,000 | |
Earnings from discontinued operations, net of tax | $0 | $487,000 |
Acquisitions_Acquisitions_Deta
Acquisitions Acquisitions (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 03, 2015 |
Business Combinations [Abstract] | |
Purchase price | $9.50 |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less allowance for doubtful accounts | ($3,648) | ($3,208) |
Accounts receivable, net | 218,899 | 234,648 |
Contract changes, negotiated settlements and claims for unanticipated contract costs | 900 | 4,561 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 155,208 | 141,481 |
U.S. Government [Member] | Billed Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 16,302 | 21,909 |
U.S. Government [Member] | Unbilled Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 2,621 | 1,581 |
Commercial and Other Government [Member] | Billed Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | 42,163 | 51,166 |
Commercial and Other Government [Member] | Unbilled Revenues [Member] | Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, Gross, Current | $6,253 | $21,719 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value of Financial Instruments not carried at Fair Value (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $269,645 | $281,232 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 302,403 | 309,392 |
Fair Value, Inputs, Level 1 [Member] | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 109,523 | 109,024 |
Fair Value, Inputs, Level 1 [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 149,722 | 145,188 |
Fair Value, Inputs, Level 2 [Member] | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 160,122 | 172,208 |
Fair Value, Inputs, Level 2 [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $152,681 | $164,204 |
Inventories_Schedule_of_Invent
Inventories Schedule of Inventory (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Merchandise for Resale | $153,713 | $149,837 |
Raw materials | 19,830 | 19,954 |
Contracts and other work in process | 182,123 | 179,002 |
Finished Goods (including certain general stock materials) | 11,038 | 10,948 |
Inventory, Net | $366,704 | $359,741 |
Inventories_Inventory_due_to_c
Inventories Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs | $13,770 | $13,337 |
Inventories_Other_Significant_
Inventories Other Significant Inventory (Details) (USD $) | 8-May-13 | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | Equipment | ||
SH 2G(I) New Zealand Contract Value | $120.60 | ||
SH-2G(I) Aircraft Sold | 10 | ||
K-MAX® [Member] | |||
Inventory, Noncurrent | 18.4 | 17.2 | |
SH 2GA Super Seasprite Program [Member] | |||
Inventory, Gross | 19.5 | 23.5 | |
SH 2 inventory | |||
Inventory, Noncurrent | $6.20 |
Inventories_Long_term_contract
Inventories Long term contracts percentage-of-completion accounting (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Inventory Disclosure [Abstract] | ||
Increase to operating income from the quarterly impact of revisions in long term contracts | $1.80 | $0.80 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, Net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Dec. 31, 2014 |
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | $254,833 | |
Accumulated impairment | -16,252 | |
Net balance at beginning of period | 238,581 | |
Additions | 5,559 | |
Goodwill impairment | 0 | |
Foreign currency translation | -1,931 | |
Net balance at end of period | 242,209 | |
Distribution [Member] | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 141,612 | |
Accumulated impairment | 0 | |
Net balance at beginning of period | 141,612 | |
Additions | 5,559 | |
Goodwill impairment | 0 | |
Foreign currency translation | 0 | |
Net balance at end of period | 147,171 | |
Aerospace [Member] | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 113,221 | |
Accumulated impairment | -16,252 | |
Net balance at beginning of period | 96,969 | |
Additions | 0 | |
Goodwill impairment | 0 | |
Foreign currency translation | -1,931 | |
Net balance at end of period | $95,038 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, Net Other Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $136,450 | $133,793 |
Accumulated Amortization | -41,772 | -39,302 |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 125,549 | 123,005 |
Accumulated Amortization | -33,917 | -31,868 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,636 | 3,546 |
Accumulated Amortization | -2,217 | -2,080 |
Non-Compete Agreements and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 6,742 | 6,719 |
Accumulated Amortization | -5,230 | -4,948 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 523 | 523 |
Accumulated Amortization | ($408) | ($406) |
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 Trade Names [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 Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization period, in years | 8 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 | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Qualified Pension Plan [Member] | ||
Defined Benefit Plan Disclosure | ||
Service cost for benefits earned during the year | $3,533 | $2,940 |
Interest cost on projected benefit obligation | 6,878 | 7,209 |
Expected return on plan assets | -11,032 | -10,262 |
Amortization of prior service cost (credit) | 14 | 25 |
Recognized net loss | 2,480 | 1,019 |
Net pension benefit cost | 1,873 | 931 |
Supplemental Employee Retirement Plans [Member] | ||
Defined Benefit Plan Disclosure | ||
Service cost for benefits earned during the year | 52 | 64 |
Interest cost on projected benefit obligation | 79 | 85 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | 0 | 0 |
Recognized net loss | 55 | 22 |
Net pension benefit cost | $186 | $171 |
Pension_Plan_Contributions_Det
Pension Plan Contributions (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Dec. 31, 2014 |
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 | 134 | 819 |
SERP, Expected contributions | $397 |
Commitments_and_Contingencies_
Commitments and Contingencies Textuals (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Apr. 23, 2015 |
New Hartford [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $2.20 | |
Accrual for Environmental Loss Contingencies, Payments | 0.5 | |
Bloomfield [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 5 | |
Accrual for Environmental Loss Contingencies, Payments | 9.6 | |
Site Contingency, Accrual, Discount Amount | 10.3 | |
Site Contingency, Accrual, Undiscounted Amount | 20.8 | |
Site Contingency, Accrual, Discount Rate | 8.00% | |
Superfund Site [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 0 | |
Other accruals and payables [Member] | New Hartford [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 0.7 | |
Other accruals and payables [Member] | Bloomfield [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 1.7 | |
Other Long-Term Liabilities [Member] | Bloomfield [Member] | ||
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | 3.3 | |
AH-1Z program [Member] | ||
Loss Contingencies [Line Items] | ||
Total program inventory, long-term contract | 45.1 | |
Backlog | 13.2 | |
Subsequent Event [Member] | AH-1Z program [Member] | ||
Loss Contingencies [Line Items] | ||
Unasserted warranty claim | $24 |
Computation_of_Earnings_Per_Sh2
Computation of Earnings Per Share (Details) (USD $) | 3 Months Ended | ||
Apr. 03, 2015 | Mar. 28, 2014 | Nov. 30, 2010 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Earnings from continuing operations | $12,749,000 | $11,944,000 | |
Earnings from discontinued operations, net of tax | 0 | -487,000 | |
Net earnings | 12,749,000 | 11,457,000 | |
Weighted Average Number of Shares Outstanding, Basic | 27,188,000 | 26,923,000 | |
Basic earnings per share from continuing operations | $0.47 | $0.45 | |
Basic earnings per share from discontinued operations | $0 | ($0.02) | |
Basic earnings per share | $0.47 | $0.43 | |
Weighted average shares issuable on exercise of dilutive stock options | 137,000 | 159,000 | |
Weighted average shares issuable on exercise of convertible notes | 553,000 | 509,000 | |
Weighted Average Number of Shares Outstanding, Diluted | 27,878,000 | 27,591,000 | |
Diluted earnings per share from continuing operations | $0.46 | $0.44 | |
Diluted earnings per share from discontinued operations | $0 | ($0.02) | |
Diluted earnings per share | $0.46 | $0.42 | |
Equity awards granted to employees [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 501,263 | 442,219 | |
Convertible Debt Securities [Member] | Convertible Debt [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Convertible Notes, Face Amount | $115,000,000 | ||
Warrant [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,417,392 | 3,409,074 |
ShareBased_Arrangements_Compen
Share-Based Arrangements Compensation Arrangements by Share-based Payment Award (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock compensation expense | $1,605 | $1,314 |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 8,238 | |
Assumed achievement level | 100.00% |
ShareBased_Arrangements_Stock_
Share-Based Arrangements Stock Options Activity (Details) (Stock Options [Member], USD $) | 3 Months Ended | ||
Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of the period (in shares) | 904,091 | ||
Granted (in shares) | 202,345 | ||
Exercised (in shares) | -3,803 | ||
Forfeited or expired (in shares) | -3,458 | ||
Outstanding at April 3, 2015 (in shares) | 1,099,175 | ||
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) | $32.79 | $31.26 | |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $39.54 | ||
Exercised, Weighted average-exercise price (usd per share) | $23.22 | ||
Forfeited or expired, Weighted average exercise price (usd per share) | $37.98 | ||
Options outstanding at April 3, 2015, Weighted average-exercise price (usd per share) | $32.79 | $31.26 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Expected option term | 5 years 1 month | 5 years 1 month | |
Expected volatility | 29.00% | 37.50% | |
Risk-free interest rate | 1.60% | 1.50% | |
Expected dividend yield | 1.60% | 1.70% | |
Per share fair value of options granted | $9.28 | $11.60 |
ShareBased_Arrangements_Restri
Share-Based Arrangements Restricted Stock Activity (Details) (Restricted Stock Awards [Member], USD $) | 3 Months Ended |
Apr. 03, 2015 | |
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) | 196,553 |
Granted (in shares) | 56,240 |
Vested (in shares) | -61,144 |
Forfeited or expired (in shares) | -1,099 |
Restricted Stock outstanding at April 3, 2015 (in shares) | 190,550 |
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) | $36.29 |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $39.49 |
Vested, Weighted Average Grant Date Fair Value (usd per share) | $33.95 |
Forfeited or expired, Weighted Average Grant Date Fair Value (usd per share) | $37.84 |
Restricted Stock outstanding at April 3, 2015, Weighted-average grant date fair value (usd per share) | $37.97 |
Segment_and_Geographic_Informa2
Segment and Geographic Information Reconciliation of Income From Segements to Consolidation (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Number of Operating Segments | 2 | |
Net sales | $442,782 | $407,958 |
Operating income | 22,330 | 21,584 |
Net gain (loss) on sale of assets | -27 | -114 |
Interest expense, net | 3,327 | 3,131 |
Other expense (income), net | -64 | 80 |
Earnings from continuing operations before income taxes | 19,067 | 18,373 |
Income tax expense | 6,318 | 6,429 |
Earnings from continuing operations | 12,749 | 11,944 |
Distribution [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | 311,471 | 258,896 |
Operating income | 12,964 | 11,733 |
Aerospace [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net sales | 131,311 | 149,062 |
Operating income | 21,821 | 22,021 |
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 | -27 | -114 |
Corporate Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating income | ($12,428) | ($12,056) |
Shareholders_Equity_and_Accumu2
Shareholders' Equity and Accumulated Other Comprehensive Income Changes in Shareholders' Equity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $517,665 | $511,292 |
Comprehensive Income | 8,952 | 11,895 |
Dividends declared | -4,895 | -4,319 |
Employee stock plans and related tax benefit | 911 | 2,120 |
Purchase of treasury shares | -671 | -687 |
Allocated Share-based Compensation Expense | 1,605 | 1,314 |
Ending Balance | $523,567 | $521,615 |
Shareholders_Equity_and_Accumu3
Shareholders' Equity and Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | ||||||
In Thousands, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation | ($26,136) | ($14,514) | ($20,676) | ($14,219) | |||
Foreign currency translation adjustments | -5,460 | -295 | |||||
Reclassification to net income, foreign currency translation | 0 | 0 | |||||
Other Comprehensive Income (Loss), Foreign Currency Translation | -5,460 | -295 | |||||
Changes in pension and post-retirement benefit plans | -103,676 | [1] | -65,653 | [1] | -105,264 | [1] | -66,317 |
Amortization of prior service cost, net of tax expense | 9 | [1] | 15 | [1] | |||
Amortization of net loss, net of tax expense | 1,579 | [1] | 649 | [1] | |||
Pension plan adjustments, net of tax expense | 1,588 | [1] | 664 | [1] | |||
Accumulated Other Comprehensive Income (Loss), Unrealized Gain (Loss) on derivative instruments, Effect Net of Tax | -246 | [2] | -516 | [2] | -321 | [2] | -585 |
Net loss on derivative instruments, net of tax expense (benefit) | -45 | [2] | -41 | [2] | |||
Reclassification to net income, derivative instruments, net of tax benefit | 120 | [2] | 110 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 75 | [2] | 69 | [2] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -130,058 | -80,683 | -126,261 | ||||
Tax expense for pension plan adjustments | 961 | 402 | |||||
Tax expense (benefit) for the change in unrealized loss on derivative instruments | -28 | 44 | |||||
Tax expense (benefit) on loss on derivative instruments reclassified to net income | 73 | -35 | |||||
Amortization of prior service cost | |||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||||||
Tax expense for pension plan adjustments | 5 | 10 | |||||
Amortization of net loss | |||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||||||
Tax expense for pension plan adjustments | $956 | $392 | |||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 10, Pension Plans for additional information.) | ||||||
[2] | See Note 7, Derivative Financial Instruments, for additional information regarding our derivative instruments. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Apr. 03, 2015 | Mar. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 33.10% | 35.00% |