Document and Entity Information
Document and Entity Information Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 27, 2023 | Jul. 01, 2022 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity File Number | 001-35419 | ||
Entity Registrant Name | KAMAN CORPORATION | ||
Entity Incorporation, State or Country Code | CT | ||
Entity Tax Identification Number | 06-0613548 | ||
Entity Address, Address Line One | 1332 Blue Hills Avenue, | ||
Entity Address, City or Town | Bloomfield, | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06002 | ||
City Area Code | (860) | ||
Local Phone Number | 243-7100 | ||
Title of 12(b) Security | Common Stock ($1 par value) | ||
Trading Symbol | KAMN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 874,437,962 | ||
Entity Common Stock, Shares Outstanding | 28,032,542 | ||
Entity Central Index Key | 0000054381 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Transition Report | false | ||
Auditor Firm ID | 238 | ||
Auditor Location | Hartford, Connecticut | ||
Auditor Name | PricewaterhouseCoopers LLP |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 24,154 | $ 140,800 |
Accounts receivable, net | 87,659 | 73,524 |
Contract with Customer, Asset, Net, Current | 113,182 | 112,354 |
Capitalized Contract Cost, Net, Current | 695 | 850 |
Inventories | 176,468 | 193,100 |
Income tax refunds receivable | 13,981 | 13,832 |
Other current assets | 15,419 | 12,083 |
Total current assets | 431,558 | 546,543 |
Accumulated depreciation | 268,089 | 251,888 |
Property, plant and equipment, net of accumulated depreciation of $268,089 and $251,888, respectively | 201,606 | 197,822 |
Operating Lease, Right-of-Use Asset | 7,391 | 11,011 |
Goodwill | 379,854 | 240,681 |
Other intangible assets, net | 372,331 | 138,074 |
Deferred Tax Assets, Net | 47,385 | 15,717 |
Capitalized Contract Cost, Net, Noncurrent | 673 | 10,249 |
Equity Method Investments | 10,000 | 0 |
Other assets | 40,534 | 38,385 |
Total assets | 1,491,332 | 1,198,482 |
Current liabilities: | ||
Accounts payable – trade | 48,277 | 42,134 |
Accrued salaries and wages | 31,395 | 38,892 |
Contract with Customer, Liability, Current | 4,081 | 2,945 |
Operating Lease, Liability, Current | 3,332 | 4,502 |
Income taxes payable | 393 | 386 |
Other current liabilities | 39,097 | 32,076 |
Total current liabilities | 126,575 | 120,935 |
Long-term debt, excluding current portion, net of debt issuance costs | 561,061 | 189,421 |
Deferred Income Tax Liabilities, Net | 6,079 | 6,506 |
Underfunded pension | 52,309 | 21,786 |
Contract with Customer, Liability, Noncurrent | 20,515 | 16,528 |
Operating Lease, Liability, Noncurrent | 4,534 | 7,140 |
Other long-term liabilities | 36,280 | 39,837 |
Commitments and contingencies (Note 19) | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 30,640,068 | 30,434,269 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
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; 30,640,068 and 30,434,269 shares issued, respectively | 30,640 | 30,434 |
Additional paid-in capital | 245,436 | 248,153 |
Retained earnings | 688,457 | 750,445 |
Accumulated other comprehensive income (loss) | $ (158,421) | $ (111,385) |
Shares of common stock held in treasury at cost (in shares) | 2,607,841 | 2,573,896 |
Less 2,607,841 and 2,573,896 shares of common stock, respectively, held in treasury, at cost | $ (122,133) | $ (121,318) |
Total shareholders’ equity | 683,979 | 796,329 |
Total liabilities and shareholders’ equity | $ 1,491,332 | $ 1,198,482 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 268,089 | $ 251,888 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,640,068 | 30,434,269 |
Shares of common stock held in treasury at cost (in shares) | 2,607,841 | 2,573,896 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Revenues | $ 687,961 | $ 708,993 | $ 784,459 |
Cost of Goods and Services Sold | 464,470 | 472,375 | 538,877 |
Program inventory impairment | 44,542 | 0 | 0 |
Gross profit | 178,949 | 236,618 | 245,582 |
Selling, general and administrative expenses | 166,447 | 152,474 | 169,485 |
Goodwill and Intangible Asset Impairment | 25,306 | 0 | 50,307 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 36,285 |
Program contract costs impairment | 9,135 | 0 | 0 |
Research and development costs | 19,552 | 16,072 | 14,755 |
Intangible assets amortization expense | 15,331 | 10,468 | 15,666 |
Costs of Transition Services Agreement | 0 | 1,728 | 12,515 |
Cost of Acquired Retention Plans [Line Items] | 0 | 0 | 22,814 |
Restructuring and severance costs (Note 5) | 9,842 | 6,154 | 8,359 |
Gain (Loss) on Disposition of Business | (457) | 234 | (493) |
Net loss (gain) on sale of assets | 136 | (8) | 200 |
Operating (loss) income | (66,343) | 49,496 | (84,311) |
Interest expense, net | 16,874 | 16,290 | 19,270 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (20,574) | (26,229) | (16,250) |
Income from transition services agreement | 0 | (931) | (8,439) |
Other expense (income), net | 315 | (142) | (728) |
(Loss) earnings from continuing operations before income taxes | (62,958) | 60,508 | (78,164) |
Income tax (benefit) expense | (16,732) | 16,832 | (7,730) |
Net earnings | (46,226) | 43,676 | (70,434) |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 0 | 0 | 0 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | 692 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 692 |
Net earnings | $ (46,226) | $ 43,676 | $ (69,742) |
Earnings per share: | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ (1.65) | $ 1.57 | $ (2.54) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0.02 |
Earnings Per Share, Basic (in dollars per share) | (1.65) | 1.57 | (2.52) |
Income (Loss) from Continuing Operations, Per Diluted Share | (1.65) | 1.57 | (2.54) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0.02 |
Diluted earnings per share (in dollars per share) | $ (1.65) | $ 1.57 | $ (2.52) |
Basic: | |||
Basic (in shares) | 28,011 | 27,865 | 27,723 |
Diluted(1): | |||
Diluted (in shares) | 28,011 | 27,891 | 27,723 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Income Statement Elements [Abstract] | |||
Net (loss) earnings | $ (46,226) | $ 43,676 | $ (69,742) |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments and other | (10,843) | 9,489 | 15,634 |
Pension plan adjustments, net of tax (benefit) expense of $(10,890), $2,949, and $1,315, respectively | (36,193) | 9,947 | 4,438 |
Other comprehensive (loss) income | (47,036) | 19,436 | 20,072 |
Total comprehensive (loss) income | (93,262) | 63,112 | (49,670) |
Pension plan adjustments, net of tax expense (benefit) | $ (10,890) | $ 2,949 | $ 1,315 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2019 | 30,058,455 | |||||
Beginning Balance at Dec. 31, 2019 | $ 823,202,000 | $ 30,058,000 | $ 228,153,000 | $ 820,666,000 | $ (150,893,000) | $ (104,782,000) |
Beginning Balance (in shares) at Dec. 31, 2019 | 2,219,332 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | (69,742,000) | 0 | 0 | (69,742,000) | 0 | $ 0 |
Other comprehensive income | $ 20,072,000 | 0 | 0 | 0 | 20,072,000 | 0 |
Common Stock, Dividends, Per Share, Declared | $ 0.80 | |||||
Dividends (per share of common stock, $0.80) | $ (22,160,000) | $ 0 | $ 0 | $ (22,160,000) | $ 0 | $ 0 |
Purchase of treasury shares (in shares) | 0 | 0 | 0 | 0 | 302,778 | |
Purchase of treasury shares | (14,209,000) | $ 0 | $ (14,209,000) | |||
Employee stock plans (in shares) | 164,149 | |||||
Employee stock plans | 4,296,000 | $ 164,000 | $ 5,752,000 | $ 0 | $ 0 | |
Employee stock plans (in shares) | 32,150 | |||||
Employee stock plans | $ (1,620,000) | |||||
Share-based compensation expense (in shares) | 56,064 | |||||
Share-based compensation expense | 4,979,000 | $ 57,000 | 4,924,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 1,525 | |||||
Share-based compensation expense | $ (2,000) | |||||
Ending Balance (in shares) at Dec. 31, 2020 | 30,278,668 | |||||
Ending Balance at Dec. 31, 2020 | 746,438,000 | $ 30,279,000 | 238,829,000 | 728,764,000 | (130,821,000) | $ (120,613,000) |
Ending Balance (in shares) at Dec. 31, 2020 | 2,555,785 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | 43,676,000 | 0 | 0 | 43,676,000 | 0 | $ 0 |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | (274,000) | 0 | 0 | (274,000) | 0 | 0 |
Other comprehensive income | $ 19,436,000 | 0 | 0 | 0 | 19,436,000 | 0 |
Common Stock, Dividends, Per Share, Declared | $ 0.80 | |||||
Dividends (per share of common stock, $0.80) | $ (22,269,000) | $ 0 | 0 | (22,269,000) | 0 | $ 0 |
Purchase of treasury shares (in shares) | 0 | 12,992 | ||||
Purchase of treasury shares | (618,000) | $ 0 | 0 | 0 | 0 | $ (618,000) |
Employee stock plans (in shares) | 71,945 | |||||
Employee stock plans | 2,705,000 | $ 72,000 | 2,716,000 | 0 | 0 | |
Employee stock plans (in shares) | (1,416) | |||||
Employee stock plans | $ (83,000) | |||||
Share-based compensation expense (in shares) | 83,656 | |||||
Share-based compensation expense | 6,687,000 | $ 83,000 | 6,608,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 3,703 | |||||
Share-based compensation expense | $ (4,000) | |||||
Ending Balance (in shares) at Dec. 31, 2021 | 30,434,269 | |||||
Ending Balance at Dec. 31, 2021 | $ 796,329,000 | $ 30,434,000 | 248,153,000 | 750,445,000 | (111,385,000) | $ (121,318,000) |
Ending Balance (in shares) at Dec. 31, 2021 | 2,573,896 | 2,573,896 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) earnings | $ (46,226,000) | 0 | 0 | 0 | $ 0 | |
Other comprehensive income | $ (47,036,000) | 0 | 0 | 0 | (47,036,000) | 0 |
Common Stock, Dividends, Per Share, Declared | $ 0.80 | |||||
Dividends (per share of common stock, $0.80) | $ (22,397,000) | 0 | 0 | (22,397,000) | 0 | 0 |
Impact of change in debt accounting standard | (5,854,000) | $ 0 | (12,489,000) | 6,635,000 | 0 | $ 0 |
Purchase of treasury shares (in shares) | 0 | 19,651 | ||||
Purchase of treasury shares | (801,000) | $ 0 | 0 | 0 | 0 | $ (801,000) |
Employee stock plans (in shares) | 71,795 | |||||
Employee stock plans | 2,143,000 | $ 72,000 | 2,071,000 | 0 | 0 | |
Employee stock plans (in shares) | 0 | |||||
Employee stock plans | $ 0 | |||||
Share-based compensation expense (in shares) | 134,004 | |||||
Share-based compensation expense | 7,821,000 | $ 134,000 | 7,701,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 14,294 | |||||
Share-based compensation expense | $ (14,000) | |||||
Ending Balance (in shares) at Dec. 31, 2022 | 30,640,068 | |||||
Ending Balance at Dec. 31, 2022 | $ 683,979,000 | $ 30,640,000 | $ 245,436,000 | $ 688,457,000 | $ (158,421,000) | $ (122,133,000) |
Ending Balance (in shares) at Dec. 31, 2022 | 2,607,841 | 2,607,841 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends Declared [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.80 | $ 0.80 | $ 0.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | |||
Cash, Including Discontinued Operations | $ 140,800 | $ 136,089 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 24,154 | 140,800 | |
Net (loss) earnings | (46,226) | 43,676 | (69,742) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 692 |
Cash flows from operating activities: | |||
Net (loss) earnings | (46,226) | 43,676 | (70,434) |
Adjustments to reconcile (loss) earnings from continuing operations, net of tax to net cash provided by operating activities: | |||
Depreciation and amortization | 40,712 | 36,654 | 43,899 |
Amortization of debt issuance costs | 2,750 | 1,836 | 1,746 |
Accretion of convertible notes discount | 0 | 2,957 | 2,860 |
Provision for doubtful accounts | 1,301 | 575 | 1,381 |
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | 36,285 |
Gain (Loss) on Disposition of Business, Non Cash | (457) | 234 | (493) |
Net loss (gain) on sale of assets | 136 | (8) | 200 |
Goodwill and Intangible Asset Impairment | 25,306 | 0 | 50,307 |
Program inventory impairment | 44,542 | 0 | 0 |
Program contract costs impairment | 9,135 | 0 | 0 |
Net loss (gain) on derivative instruments | 1,175 | 1,025 | (466) |
Stock compensation expense | 7,821 | 6,687 | 4,979 |
Noncash Consideration on Sale of Aircraft | (827) | 0 | 0 |
Deferred income taxes | (19,054) | 20,998 | (6,055) |
Changes in assets and liabilities, excluding effects of acquisitions/divestitures: | |||
Accounts receivable | (8,387) | 78,367 | 7,042 |
Increase (Decrease) in Contract with Customer, Asset | (707) | (3,482) | 12,629 |
increase (Decrease) in Capitalized Contract Cost | 637 | 725 | 294 |
Inventories | (17,848) | (10,357) | (18,485) |
Income tax refunds receivable | (144) | (8,565) | 2,763 |
Increase (Decrease) in Operating Right of Use Assets | 3,551 | 1,798 | 1,513 |
Other assets | (2,899) | 3,450 | 2,490 |
Accounts payable - trade | 1,959 | (18,398) | (9,227) |
Increase (Decrease) in Contract with Customer, Liability | 4,433 | (30,708) | (29,555) |
Increase (Decrease) in Operating Lease Liabilities | (3,707) | (1,918) | (1,560) |
Payments for Retention Plans | 0 | 25,108 | 0 |
Other current liabilities | (2,860) | (8,880) | 16,955 |
Income taxes payable | 12 | 295 | (4,885) |
Pension liabilities | (17,745) | (37,580) | (21,550) |
Other long-term liabilities | (1,640) | (5,575) | (6,164) |
Net cash provided by operating activities | 20,969 | 48,698 | 16,469 |
Cash flows from investing activities: | |||
Proceeds from Divestiture of Businesses | 0 | 0 | 5,223 |
Proceeds from Sales of Business, Affiliate and Productive Assets | 1,200 | 493 | |
Proceeds from Divestiture of Businesses, Net of Cash Divested | (3,428) | ||
Expenditures for property, plant & equipment | (23,689) | (17,530) | (17,783) |
Acquisition of businesses | (441,340) | 0 | (304,661) |
Payments to Acquire Investments | (10,000) | 0 | 0 |
Other, net | 778 | (154) | (1,994) |
Net Cash Provided by (Used in) Investing Activities | (473,051) | (21,112) | (318,722) |
Cash flows from financing activities: | |||
Borrowings under revolving credit agreement | 412,000 | 0 | 201,100 |
Proceeds from (Repayments of) Other Long-term Debt | (49,000) | 0 | (201,100) |
Purchase of treasury shares | (801) | (618) | (14,210) |
Dividends paid | (22,363) | (22,241) | (22,210) |
Debt issuance costs | (4,380) | 0 | 0 |
Other, net | 467 | 626 | 2,885 |
Net cash provided by (used in) financing activities | 335,923 | (22,233) | (33,535) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (116,159) | 5,353 | (335,788) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (487) | (642) | 337 |
Cash and cash equivalents and restricted cash at beginning of period (See Note 2) | 140,800 | 136,089 | |
Cash and cash equivalents and restricted cash at end of period (See Note 2) | $ 24,154 | $ 140,800 | $ 136,089 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Kaman Corporation, headquartered in Bloomfield, Connecticut, was incorporated in 1945 and is a diversified company that conducts business in the aerospace and defense, medical and industrial markets. Kaman Corporation reports information for itself and its subsidiaries (collectively, the "Company") in three business segments: Engineered Products, Precision Products and Structures. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. During the fourth quarter of 2020, the Company committed to a plan and received approval from its Board of Directors to sell its United Kingdom ("UK") Composites division. As a result of the approved plan, the UK Composites division met the criteria set forth in ASC 205-20, Presentation of Financial Statements - Discontinued Operations ("ASC 205-20") for held for sale. At December 31, 2020, the assets of the UK Composites business were considered impaired as the estimated fair value of the disposal group was lower than the estimated carrying value of the UK Composites business. As a result, $24.3 million in assets were written off and the remaining loss related to the anticipated sale of the disposal group of $12.0 million was accrued for in liabilities held for sale, current portion on the Company's Consolidated Balance Sheets, resulting in a total loss of $36.3 million recorded to impairment on assets held for sale on the Company's Consolidated Statement of Operations in the year ended December 31, 2020. The related liabilities of the UK division to be sold were reclassified to liabilities held for sale, respectively, as of December 31, 2020 on the Company's Consolidated Balance Sheets. The Company sold its UK Composites division in a transaction that closed on February 2, 2021. An additional loss of $0.2 million was recorded to (gain) loss on sale of business in the year ended December 31, 2021. See Note 2, Disposals , to the Consolidated Financial Statements for further information. During the year ended December 31, 2020, the Company recorded a correction of certain prior-period errors. The errors primarily resulted in revenue being overstated and cost of sales being understated, resulting in income before taxes being overstated for the years ended December 31, 2019 and December 31, 2018 by approximately $1.1 million and $0.8 million, respectively. The corresponding correction, totaling $1.9 million, was recorded in fiscal year 2020. This correction was not material to the prior period financial statements. Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment, goodwill and other intangible assets; valuation allowances for receivables, inventories and income taxes; valuation of share-based compensation; assets and obligations related to employee benefits; and accounting for long-term contracts including claims. Actual results could differ from those estimates. Foreign Currency Translation The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated at end of period rates. The gains and losses associated with these translation adjustments are included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable and notes payable, approximate fair value due to the short-term maturity of these instruments. At December 31, 2022 and 2021, no individual customer accounted for more than 10% of consolidated accounts receivable. In the year ended December 31, 2022, one individual customer, The Boeing Company, accounted for more than 10% of consolidated net sales, which were primarily made by the Engineered Products and Structures segments. In the year December 31, 2021, two individual customers, the U.S. Government ("USG") and a joint programmable fuze ("JPF") direct commercial sales ("DCS") customer, accounted for more than 10% of consolidated net sales. In 2021, sales to the USG were primarily made by the Engineered Products and Precision Products segment, while sales to a JPF DCS customer were made by the Precision Products segment. Foreign sales were approximately 37.2%, 41.6% and 50% of the Company’s net sales in 2022, 2021 and 2020, respectively, and are concentrated in Germany, the Middle East, United Kingdom, Canada, Switzerland, France, China and Japan. Additional Cash Flow Information Non-cash operating activities in 2022 included a barter transaction with one of our operators for K-MAX® aircraft blades with a value of $0.8 million. Non-cash investing activities in 2022 include an accrual of $1.7 million for purchases of property and equipment. Non-cash financing activities in 2022 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $36.2 million, net of tax of $10.9 million. Additionally, non-cash financing activities in 2022 include $5.6 million of dividends declared but not yet paid. Non-cash investing activities in 2021 include an accrual of $2.0 million for purchases of property and equipment. Non-cash financing activities in 2021 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $9.9 million, net of tax of $2.9 million. Additionally, non-cash financing activities in 2021 include $5.6 million of dividends declared but not yet paid. Non-cash financing activities in 2020 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $4.4 million, net of tax of $1.3 million. Additionally, non-cash financing activities in 2020 include $5.5 million of dividends declared but not yet paid. The Company describes its pension obligations in more detail in Note 17, Pension Plans . Revenue Recognition Under Accounting Standard Codification ("ASC") 606, the amount of revenue recognized for any goods or services reflects the consideration that the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as a performance obligation is satisfied. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued A contract is accounted for when there has been approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance obligations under a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. In certain instances, the Company has concluded distinct goods or services should be accounted for as a single performance obligation when they are a series of distinct goods or services that have the same pattern of transfer to the customer. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer (the goods or services are distinct) and if the promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract (the goods or services are distinct in the context of the contract). If these criteria are not met, the promised services are accounted for as a single performance obligation. The transaction price is determined based on the consideration that the Company will be entitled to in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price, generally utilizing the most likely amount method. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. Standalone selling price is determined by the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Performance obligations are satisfied either over time or at a point in time as discussed in further detail below. In addition, the Company's contracts with customers generally do not include significant financing components or non-cash consideration. In certain instances, the Company has accounted for contracts using the portfolio approach, a practical expedient permissible under the standard. The determination of when the use of the portfolio approach is appropriate requires judgment from management based on consideration of all the facts and circumstances. The Company uses the portfolio approach when the effect of accounting for a group of contracts or a group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. The Company primarily uses the portfolio approach for its commercial and defense bearings and structures businesses. The Company's primary criteria considered when using the portfolio approach is the commonality of economic factors, which generally follow the product type based on consistent production costs and standard pricing for the products. To determine the appropriate revenue recognition model for long-term contracts, the Company evaluates whether a contract exists, considering whether multiple contracts should be combined as one single contract and then whether the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, as these decisions could change the amount of revenue and profit recorded in a given period. For certain programs, the Company may promise to provide distinct goods or services within a contract, in which case these are separated into more than one performance obligation. For certain programs, the Company recognizes revenue over time because of continuous transfer of control to the customer. For USG contracts, this continuous transfer of control to the customer is supported by clauses in the contract that provide lien rights to the customer over the work in progress, thereby control transfers as costs are incurred. For non-USG contracts, the customer typically controls the work in progress because the Company is producing products that do not have an alternative use to the Company and where contractual termination clauses provide the Company rights to payment for work performed to date plus a reasonable profit. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of assets to the customer which occurs as cost is incurred under the contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Total estimated contract costs generally include labor, materials and subcontractors’ costs, other direct costs and related overhead costs. These estimates also include the estimated cost of satisfying offset obligations, as required under certain contracts. The complexity of certain programs as well as technical risks and uncertainty as to the future availability of materials and labor resources could affect the Company’s ability to accurately estimate future contract costs. For contracts that recognize revenue over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g. the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized reductions in revenue of $3.5 million, $2.6 million and $7.0 million in the years ended December 31, 2022, 2021 and 2020, respectively, due to changes in profit estimates. These decreases were primarily related to cost growth on certain legacy fuzing contracts and certain structures contracts, partially offset by favorable cost performance on the JPF contract with the USG. Due to the nature of the work required to be performed on many of the Company's performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. From time-to-time the Company enters into long-term contracts with the USG and other customers that contain award fees, incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information (historical, current and forecasted) that is reasonably available. The Company does not include financing components as variable consideration if less than one year. At December 31, 2022, the Company did not have any significant financing components. Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or makes changes to the existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation that is a series of substantially the same distinct goods or services. If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modification is treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts. The Company applied the practical expedient for any contracts that were modified prior to January 1, 2018; therefore, the contracts were not restated retrospectively for those modifications. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued For other contracts, excluding the long-term contracts discussed above, revenue is primarily recognized at the point in time when the title transfers to the customer, as this is when the performance obligation is controlled by the customer. Additionally, a small percentage of revenue related to certain contracts for repairs and overhauls is accounted for over time under ASC 606. Under these contracts, revenue is generally recognized as work is performed in proportion to the actual costs incurred as compared to total estimated contract costs. Cost of Sales and Selling, General and Administrative Expenses Cost of sales includes costs of products and services sold (i.e., purchased product, raw material, direct labor, engineering labor, outbound freight charges, depreciation and amortization, indirect costs and overhead charges). Selling expenses primarily consist of advertising, promotion, bid and proposal, employee payroll and corresponding benefits and commissions paid to sales and marketing personnel. General and administrative expenses primarily consist of employee payroll including executive, administrative and financial personnel and corresponding benefits, incentive compensation, consulting expenses, warehousing costs, and depreciation. Legal costs are expensed as incurred and are generally included in general and administrative expenses. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments. These investments are liquid in nature and have original maturities of three months or less. The Company's cash and cash equivalents at December 31, 2022 and 2021 included $0.1 million and $65.5 million of Level 1 (quoted prices in active markets for identical assets or liabilities) money market funds. Bank overdraft positions, which occur when total outstanding issued checks exceed available cash balances at a single financial institution at the end of a reporting period, are reclassified to other current liabilities within the consolidated balance sheets. At December 31, 2022 and 2021, the Company had bank overdrafts of $1.5 million and $1.4 million, respectively, included in other current liabilities. Accounts Receivable The Company has three types of accounts receivable: (a) Trade receivables, which consist of amounts billed and currently due from customers; (b) USG contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed; and (c) Commercial and other government contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed. The Company's receivables, net, consist of amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts reflects management’s best estimate of probable losses inherent in the trade accounts receivable and billed contracts balance. Management performs ongoing evaluations of its customers’ current creditworthiness, as determined by the review of their credit information to determine if events have occurred subsequent to the recognition of revenue and the related receivable that provide evidence that such receivable will be realized in an amount less than that recognized at the time of sale. Estimates of credit losses are based on historical losses, current economic conditions, geographic considerations, and in some cases, evaluating specific customer accounts for risk of loss. Contract Assets The Company's contract assets include unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is applied and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts do not exceed their net realizable value. Contract assets are generally classified as current as such amounts are billable and collectible within twelve months. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contract Costs Contract costs consist of costs to obtain and fulfill a contract. Costs to fulfill a contract primarily consist of nonrecurring engineering costs incurred at the start of a new program for which such costs are expected to be recovered under existing and future contracts. Such costs are amortized over the estimated revenue amount of the contract. Costs to obtain a contract consist of commissions and agent fees paid in connection with the award of a contract. If these costs are determined to have an amortization period of less than one year, the Company applies the practical expedient and the related costs are expensed as incurred. If the amortization period is determined to be greater than a year and the incremental costs to obtaining the contract qualify as an asset, then the contract costs are recorded and amortized over the estimated contract revenue. In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. Based on this review, the Company determined that it will discontinue the production of the K-MAX TITAN unmanned aerial system in 2023. As a result of this decision, management wrote off $9.1 million of contract costs associated with this program in the year ended December 31, 2022. This amount was included in program contract costs impairment on the Company's Consolidated Statements of Operations. Inventories The Company has the following types of inventory: (a) raw materials, (b) contracts in process and other work in process, and (c) finished goods. Raw material includes certain general stock materials but primarily relates to purchases that were made in anticipation of specific programs for which production has not been started as of the balance sheet date. Raw materials are stated at the lower of the cost of the inventory or its fair market value. Contracts in process and other work in process and finished goods are valued at production cost represented by raw material, labor and overhead. Contracts in process and other work in process and finished goods are not reported at amounts in excess of net realizable values. In conjunction with the review of the Company's businesses and programs discussed above, the Company also determined it would discontinue the production of the K-MAX® medium-to-heavy lift helicopters in 2023. The Company will continue to support the existing K-MAX® fleet in operation, including providing operators with repair, spare parts and fleet services, as well as training. As a result of this decision, management wrote off $44.5 million of inventory associated with this program in the year ended December 31, 2022. This amount was included in program inventory impairment on the Company's Consolidated Statements of Operations. The amount written off was comprised of a lower of cost or net realizable value write down on three unsold aircraft and unusable inventory. Unusable inventory includes long lead parts made specifically for the production of the K-MAX® for which there are no alternative uses and spare parts and blades that were in excess of the amounts needed to support the existing fleet. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives for buildings generally range from 15 to 40 years and for leasehold improvements range from 1 to 20 years, whereas machinery, office furniture and equipment generally have useful lives ranging from 3 to 15 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated and any gain or loss is credited to or charged against income. Long-lived assets, such as property, plant and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Maintenance and repair items are charged against income as incurred, whereas renewals and betterments are capitalized and depreciated. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leasing The Company accounts for leases in accordance with ASC 842, Leases. Under ASC 842, the Company determines if a contract contains a lease at the inception date of the contract. To determine if the contract contains a lease, the Company evaluates if there is an identified asset in the contract and if the Company has control over the use of the identified asset. The Company has elected not to apply the recognition requirements of ASC 842 to short-term leases (leases that, at the commencement date, have a lease term of twelve months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise) as permissible under the standard. For short-term leases, the Company recognizes lease payments on a straight-line basis and variable payments in the period in which the obligation for those payments is incurred. The Company must classify each lease as a finance lease or an operating lease. The Company's finance leases are included in machinery, office furniture and equipment. Amortization of these assets is included in depreciation and amortization expense. The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings. At the commencement date, the right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Lease liabilities are recognized at commencement based on the present value of the unpaid lease payments over the lease term. The initial measurement of the right-of-use asset is equal to the total of the initial measurement of the lease liability, incremental costs to obtain the lease and prepaid lease payments, less any lease incentives received. Some of the Company's leases have fixed amount rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The Company elected the practical expedient allowing the Company to combine lease and non-lease components by class as a single lease component for its real estate leases. Nonlease components for the Company's vehicles and other equipment leases are not material. The Company uses the discount rate implicit in a lease contract, if available. As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain leases are renewable for varying periods and certain leases include options to terminate the leases. For renewal options, the Company performs an assessment at commencement if it is reasonably likely to exercise the option. The assessment is based on the Company's intentions, past practices, estimates and factors that create an economic incentive for the Company. Generally, the Company is not reasonably certain to exercise the renewal option in a lease contract as it performs an assessment for most real estate leases within six months prior to termination comparing the renewal rents under the option with the fair market returns for equivalent property under similar terms and conditions. Although the Company does not historically change locations often, it is not reasonably certain the Company will exercise the renewal option; therefore, the periods covered by the renewal option are not typically included in the lease term at commencement. While some of the Company's leases include options allowing early termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial or business reason to do so; therefore, the Company does not typically consider the termination option in its lease term at commencement. Subsequent to the initial measurement, the lease liability continues to be measured at the present value of unpaid lease payments throughout the lease term. The lease liability is remeasured if the lease is modified and the modification is not accounted for as a separate contract, there is a change in the assessment of the lease term, the assessment of a purchase option exercise or the amount probable of being owed under a residual value guarantee, or a contingency is resolved resulting in some or all of the variable lease payments becoming fixed payments. Subsequent to the initial measurement, the right-of-use asset for a finance lease is equivalent to the initial measurement less accumulated amortization and any accumulated impairment losses. Generally, amortization of finance leases is recorded to cost of sales on a straight-line basis over the lease ter |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. DISPOSALS Mexico Business In the third quarter of 2022, the Company sold certain assets and liabilities of its Mexico operations in the Structures segment. The transaction did not meet the criteria set forth in ASC 205-20 - Presentation of Financial Statements - Discontinued Operations ("ASC 205-20"), for discontinued operations as it does not reflect a significant strategic shift that would have a major effect on the Company's operations or financial results. For the year ended December 31, 2022, the Company recorded a gain on the sale of $0.5 million, which was included in (gain) loss on sale of business on the Company's Consolidated Statement of Operations. UK Composites Business In the fourth quarter of 2020, the Company received approval from its Board of Directors to sell its UK Composites division. Subsequent to the end of the year, the Company sold its UK Composites division in a transaction that closed on February 2, 2021. The sale of the UK Composites business did not meet the criteria set forth in ASC 205-20 , for discontinued operations as it did not reflect a significant strategic shift that would have a major effect on the Company's operations and financial results. As a result of the approved plan, the UK Composites division met the criteria set forth in ASC 205-20 for held for sale presentation. The related liabilities of the UK division to be sold were reclassified to liabilities held for sale, as of December 31, 2020 on the Company's Consolidated Balance Sheets. Financial results for the UK Composites division were included in the Structures segment for the years ended December 31, 2021 and 2020 within Note 4, Segment and Geographic Information . 2. DISPOSALS (CONTINUED) UK Composites Business - continued In accordance with ASC 360 - Property, Plant, and Equipment ("ASC 360"), the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Refer to Note 12, Goodwill and Other Intangible Assets, Net , for a discussion of the triggering event identified in 2022. No such triggering events were identified in 2021. At December 31, 2020, the assets of the Company's former UK Composites business were considered impaired as the estimated fair value of the business based on the anticipated sale was lower than the estimated carrying value of the UK Composites business. The following table provides information on the loss recorded on the sale of the UK Composites business. These amounts reflect the balance sheet of the UK Composites business as of February 2, 2021. In thousands Estimated fair value $ 3,600 Assets, including cash on hand 23,460 Liabilities 6,618 Net book value of business 16,842 UK cumulative foreign currency translation adjustment balance 22,835 Transaction costs 442 Loss on the sale of the UK Composites business $ 36,519 Of this amount, a loss of $36.3 million was recorded to impairment on assets held for sale in the year ended December 31, 2020 and a loss of $0.2 million was recorded to (gain) loss on sale of business in the year ended December 31, 2021. Cash and cash equivalents and restricted cash at the beginning of the period on the Company’s Consolidated Statement of Cash Flows for the year ended December 31, 2021 includes $6.6 million of cash that was included in the UK Composites business disposal group. However, given the assets of the disposal group are recognized net of the impairment charge recorded in December 31, 2020, such amounts were not reflected on the Company’s Consolidated Balance Sheet at December 31, 2020. UK Tooling In 2018, the Company sold its UK Tooling business as part of Composites restructuring activities. This divestiture did not qualify for the reporting of discontinued operations. In the year ended December 31, 2019, the Company incurred a loss of $3.7 million associated with the write-off of note receivables recorded in 2018 for the remaining amounts to be collected on the sale of the UK Tooling business as this balance was deemed not likely to be collected. In the year ended December 31, 2020, the Company collected $0.5 million of the note receivables written off in 2019. These charges were included in (gain) loss on the sale of business on the Company's Consolidated Statements of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information . Distribution Business On August 26, 2019, the Company completed the sale of its Distribution business for total cash consideration of $700.0 million, excluding certain working capital adjustments. The sale of the Distribution business was a result of the Company's shift in strategy to be a highly focused, technologically differentiated aerospace and engineered products company. As a result of the sale, the Distribution segment met the criteria set forth in ASC 205-20 for discontinued operations. 2. DISPOSALS (CONTINUED) Distribution Business - continued Upon closing, the Company entered into a transition services agreement ("TSA") with the buyer, pursuant to which the Company agreed to support the information technology ("IT"), human resources and benefits, tax and treasury functions of the Distribution business for six to twelve months. The buyer exercised the option to extend the support period for up to a maximum of an additional year for certain IT services. The buyer had the right to terminate individual services at any point over the renewal term and began to terminate certain services in 2020. During the third quarter of 2021, the TSA expired and all services were completed as of the end of the period. As such, there was no activity associated with the TSA in 2022. Through the term of the TSA, the Company incurred $18.9 million in costs and earned $13.0 million in income associated with the TSA. The Company incurred $1.7 million and $12.5 million in costs associated with the TSA in 2021 and 2020, respectively, which was included in costs from transition services agreement on the Company's Consolidated Statement of Operations. The Company earned $0.9 million and $8.4 million in income associated with the TSA in 2021 and 2020, respectively, which was included in income from transition services agreement on the Company's Consolidated Statement of Operations. Since the sale of the Distribution business, cash outflows from the Company to its former Distribution business totaled $8.7 million through December 31, 2022, which primarily related to Distribution employee and employee-related costs incurred prior to the sale. For the year ended December 31, 2022, there were no cash flows from the Company to its former Distribution business. Cash outflows from the Company to its former Distribution business after the sale totaled $0.6 million and $0.3 million, for the years ended December 31, 2021 and December 31, 2020, respectively. Since the sale of the Distribution business, cash inflows from the Company's former Distribution business to the Company totaled $19.4 million through December 31, 2022, which primarily related to cash received for services performed under the TSA and the $5.2 million working capital adjustment settled in the first quarter of 2020. For the year ended December 31, 2022, cash inflows from the Company's former Distribution business were not material. Cash inflows from the Company's former Distribution business after the sale totaled $2.0 million and $13.3 million for the years ended December 31, 2021 and December 31, 2020, respectively. In the year ended December 31, 2020, the Company recorded a pretax gain on disposal of discontinued operations as a result of the final settlement of the working capital adjustment, partially offset by transaction costs. The pretax gain of $0.9 million was subject to income tax expense of $0.2 million, resulting in a gain on disposal of discontinued operations, net of tax of $0.7 million for the year ended December 31, 2020, which was included in the Company's Consolidated Statement of Operations. As the gain on the sale of the Distribution business was finalized in 2020, no activity aside from the TSA activity and cash flows discussed above impacted the Company's Consolidated Financial Statements for the years ended December 31, 2022 and 2021, respectively. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 3. BUSINESS COMBINATIONS AND INVESTMENTS Business Combinations Aircraft Wheel & Brake On September 16, 2022, the Company acquired all of the assets and related liabilities of Parker-Hannifin Corporation's ("Parker") Aircraft Wheel and Brake division ("the Acquisition"), of Avon, Ohio, at a purchase price of $441.3 million. Aircraft Wheel and Brake is a leader in the design, development, qualification, manufacturing and assembly, product support and repair of wheels, brakes and related hydraulic components for fixed-wing aircraft and rotorcraft. With this acquisition, the Company has expanded its portfolio of engineered products, broadening the number of offerings available to serve customers across a range of critical applications and has increased the Company's exposure within the aerospace and defense end markets. 3. BUSINESS COMBINATIONS AND INVESTMENTS (CONTINUED) Business Combinations - continued Aircraft Wheel & Brake - continued This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Accounts receivable (1) $ 7,635 Contract assets 171 Inventories 11,246 Property, plant and equipment 7,686 Goodwill 169,790 Other intangible assets 250,500 Contract costs, noncurrent 41 Liabilities (5,729) Net assets acquired $ 441,340 Less cash received — Net consideration $ 441,340 (1) Gross accounts receivable at the acquisition date and the amount of receivables expected to be collected are materially the same. The preliminary purchase price allocation for the Acquisition was based upon a preliminary valuation and the Company's estimates and assumptions for this acquisition are subject to change as the Company obtains additional information during the measurement period. During the fourth quarter, the Company adjusted certain assumptions used to value the identifiable intangible assets. These changes resulted in an increase to goodwill of $7.4 million and a decrease to other intangible assets of $7.4 million when compared to the third quarter of 2022. The principal area of the purchase price allocation that was not yet finalized as of December 31, 2022 related to the finalization of the working capital adjustment. Subsequent to December 31, 2022, the Company paid Parker an additional $1.5 million for the working capital adjustment finalized in the first quarter of 2023, which will result in an increase to goodwill. These purchase price allocations will be finalized within the one-year measurement period. The goodwill associated with this acquisition is tax deductible and is the result of expected synergies from combining the operations of the acquired business with the Company's operations and intangible assets that do not qualify for separate recognition, such as an assembled workforce. The goodwill associated with this acquisition was recognized in the Engineered Products segment. The fair value of the identifiable intangible assets totaling $250.5 million, consisting of customer relationships and acquired backlog, was determined using the income approach, specifically, a multi-period excess earnings method. The fair value of the customer relationships of $237.7 million is being amortized based on the economic period of benefit over periods ranging from 23 to 25 years, and the fair value of the backlog of $12.8 million is being amortized based on the economic period of benefit over a period of two The Company determines the useful lives of the intangibles through contracting with a third party valuation expert and discussions with the management team of the Acquisition. As the Acquisition specializes in wheels, brakes and related hydraulic components for helicopters, fixed-wing and UAV aircraft, it was determined that a useful life range of 23 to 25 years for customer relationships was reasonable, as the length of customer relationships are typically longer given the nature of the industry and the useful lives of aircraft. Considerations were also given to the history of serving on the programs, nature of competition, probability of renewals, sole source positions, information on the strength of the incumbency, nature of the aircraft program, and corroborated the program forecast duration with information from Forecast International, General Aviation Manufacturer Association data, Federal Aviation Administration data, as well as Department of Defense disclosures. Aircraft Wheel and Brake's results of operations have been included in the Company's financial statements for the period subsequent to the completion of the acquisition on September 16, 2022. Aircraft Wheel and Brake contributed $20.8 million of revenue and $2.4 million of operating loss for the year ended December 31, 2022. 3. BUSINESS COMBINATIONS AND INVESTMENTS (CONTINUED) Business Combinations - continued Bal Seal On January 3, 2020, the Company acquired all of the equity interests of Bal Seal Engineering ("Bal Seal"), of Foothill Ranch, California, at a purchase price of $317.5 million. Bal Seal is a leader in the design, development, and manufacturing of highly engineered products, including precision springs, seals, and contacts. With this acquisition, the Company has significantly expanded its portfolio of engineered products and offerings while creating new opportunities to reach customers in medical technology, aerospace and defense, and industrial end markets. This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Cash $ 10,953 Restricted cash 1,932 Accounts receivable 9,525 Contract assets 784 Inventories 13,500 Property, plant and equipment 81,997 Operating right-of-use asset 653 Other tangible assets 2,492 Goodwill 95,089 Other intangible assets 110,300 Liabilities (9,679) Net assets acquired 317,546 Less cash received (12,885) Net consideration $ 304,661 The goodwill associated with this acquisition is tax deductible and is the result of expected synergies from combining the operations of the acquired business with the Company's operations and intangible assets that do not qualify for separate recognition, such as an assembled workforce. The fair value of the identifiable intangible assets of $110.3 million, consisting of customer relationships, developed technologies, trade name and acquired backlog, was determined using the income approach. Specifically, a multi-period, excess earnings method was utilized for the customer relationships and backlog and the relief-from-royalty method was utilized for the trade name and developed technologies. The fair value of the customer relationships, $70.1 million, is being amortized based on the economic pattern of benefit over periods ranging from 30 to 38 years; the fair value of the developed technologies, $25.5 million, is being amortized on a straight-line basis over periods ranging from 7 to 13 years; the fair value of the trade name, $11.9 million, is being amortized on a straight-line basis over a 40 year term; and the fair value of the acquired backlog, $2.8 million, was amortized on a straight-line basis over a period of 1 year. These amortization periods represent the estimated useful lives of the assets. Bal Seal makes custom seals, springs and electrical contacts that improve the performance and reliability of critical equipment in the following key end markets: Medical Implantables, Medical Devices, Analytical Instruments, Aerospace & Defense and Industrials, Energy & Transformation. To determine the useful lives of the intangible assets for each of these end markets management obtained historical revenue data by customer. With the assistance of a third party valuation expert, management estimated the periods over which the Company expects to realize a majority of the future cash flows and determined useful lives ranging from 30 to 38 years was reasonable. Considerations were given to the consistent historical revenue growth from existing customers coupled with low customer attrition in deriving useful lives for customer relationship assets. Additionally, in the review of historical data and in discussions with Bal Seal management, management identified that Bal Seal had several customers with generational relationships which also led to the conclusion that longer useful lives were appropriate. 3. BUSINESS COMBINATIONS AND INVESTMENTS (CONTINUED) Business Combinations - continued Bal Seal - continued At the acquisition date, Bal Seal had $1.9 million in costs accrued for its employee retention plans in other long term liabilities. Upon closing, the Company funded $24.7 million associated with these employee retention plans into escrow accounts. This amount and related interest was included in restricted cash on the Company's Consolidated Balance Sheets as of December 31, 2020. Eligible participants received an allocation of the escrow balance one year following the acquisition date, which was reflected in the Company's cash flows from operating activities in the year ended December 31, 2021. In addition to the purchase price of $317.5 million, the Company incurred $22.8 million in compensation expense associated with these retention plans in the year ended December 31, 2020. Bal Seal's results of operations have been included in the Company's financial statements for the period subsequent to the completion of the acquisition on January 3, 2020. Bal Seal contributed $77.0 million of revenue and $30.8 million of operating loss for the year ended December 31, 2020. Pro Forma Information (Unaudited) The following table reflects the unaudited pro forma operating results of the Company for the years ended December 31, 2022, 2021 and 2020 which assumes the acquisition of Aircraft Wheel and Brake occurred on January 1, 2021 and the acquisition of Bal Seal occurred on January 1, 2019. The pro forma results are based on assumptions that the Company believes are reasonable under the circumstances. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition of Aircraft Wheel and Brake been effective January 1, 2021 or had the acquisition of Bal Seal been effective January 1, 2019, nor are they intended to be indicative of results that may occur in the future. The underlying pro forma information includes the historical financial results of the Company and the acquired business adjusted for certain items discussed below. The pro forma information does not include the effects of any synergies, cost reduction initiatives or anticipated integration costs related to the acquisitions. For the year ended December 31, 2022 2021 2020 In thousands Net sales $ 740,960 $ 778,167 $ 784,459 (Loss) earnings from continuing operations $ (41,679) $ 13,840 $ (35,681) Net (loss) earnings $ (41,679) $ 13,840 $ (34,989) These pro forma results include adjustments such as inventory step-up, amortization of acquired intangible assets, depreciation of acquired plant, property, and equipment and interest expense on debt financing in connection with the Acquisition. Material pro forma adjustments directly attributable to the acquisition of Aircraft Wheel and Brake for the year ended December 31, 2022 include: • Increase in amortization of $9.1 million relating to intangible assets acquired; • Decrease in selling, general & administrative costs of $12.8 million relating to transaction costs for the Acquisition; • Increase in interest expense of $20.5 million relating to debt financing in connection with the Acquisition; • Decrease in cost of sales of $3.1 million relating to the step-up of acquired inventory; and • Decrease in income tax expense of $3.0 million relating to the above adjustments. Material pro forma adjustments directly attributable to the acquisition of Aircraft Wheel and Brake for the year ended December 31, 2021 include: • Increase in amortization of $18.2 million relating to intangible assets acquired; • Increase in selling, general & administrative costs of $12.8 million relating to transaction costs for the Acquisition; • Increase in interest expense of $29.1 million relating to debt financing in connection with the Acquisition; • Increase in cost of sales of $3.1 million relating to the step-up of acquired inventory; and • Decrease in income tax expense of $13.4 million relating to the above adjustments. 3. BUSINESS COMBINATIONS AND INVESTMENTS (CONTINUED) Business Combinations - continued Pro Forma Information (Unaudited) - continued Material pro forma adjustments directly attributable to the acquisition of Bal Seal for the year ended December 31, 2020 include: • Decrease in compensation expense of $22.8 million associated with Bal Seal's employee retention plans; • Decrease in selling, general & administrative costs of $8.5 million relating to transaction costs; • Decrease in cost of sales of $2.4 million relating to the step-up of acquired inventory; • Decrease in amortization of $5.3 million relating to intangible assets acquired; and • Increase of income tax expense of $4.1 million relating to the above adjustments. Investments Near Earth Autonomy On June 22, 2022, the Company invested $10.0 million in Near Earth Autonomy, Inc. ("Near Earth"), in exchange for a minority interest in the outstanding equity of Near Earth and one seat on its Board of Directors. This investment supports Near Earth's mission to accelerate its technology to establish an industry standard in autonomous solutions for the next generation of aviation and leverages the Company's core competency in precision parts manufacturing as the preferred manufacturer of autonomous parts and components for Near Earth. Near Earth has been a partner on the Company's autonomous technology since 2019, most recently for the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle. In accordance with ASC 321 - Investments - Equity Securities, the Company elected to apply the measurement alternative and accounted for the investment as an equity interest, initially measured at cost. The investment was included in Investment in Near Earth Autonomy on the Company's Consolidated Balance Sheets as of December 31, 2022. Upon observable transaction prices or impairment, the Company will remeasure the investment at fair value. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | 4. SEGMENT AND GEOGRAPHIC INFORMATION Segment Information The Company is organized based upon the nature of its products and services, and is composed of three operating segments each overseen by a segment manager. These segments are reflective of how the Company’s Chief Executive Officer, who is its 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 Engineered Products segment serves the aerospace and defense, industrial and medical markets providing sophisticated proprietary aircraft bearings and components; super precision, miniature ball bearings; and proprietary spring energized seals, springs and contacts; and wheels, brakes and related hydraulic components for helicopters and fixed-wing and UAV aircraft. The Precision Products segment serves the aerospace and defense markets providing precision safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; restoration, modification and support of the Company's SH-2G Super Seasprite maritime helicopters; support of the heavy lift K-MAX ® manned helicopter; and development of the KARGO UAV unmanned aerial system, a purpose built autonomous medium lift logistics vehicle. The Structures segment serves the aerospace and defense and medical end markets providing sophisticated complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft, and medical imaging solutions. 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Segment Information - continued Summarized financial information by business segment is as follows: For the year ended December 31, 2022 2021 2020 In thousands Net sales: Engineered Products $ 377,241 $ 317,683 $ 315,063 Precision Products 185,023 256,329 302,509 Structures 125,697 134,981 166,887 Net sales (1) $ 687,961 $ 708,993 $ 784,459 Operating income (loss): Engineered Products $ 57,833 $ 43,097 $ 33,561 Precision Products 17,705 55,366 74,033 Structures (3,000) (340) (8,858) Corporate expense (50,377) (40,519) (53,059) Other unallocated expenses, net (2) (88,504) (8,108) (129,988) Operating (loss) income $ (66,343) $ 49,496 $ (84,311) Interest expense, net 16,874 16,290 19,270 Non-service pension and post retirement benefit income, net (20,574) (26,229) (16,250) Income from transition services agreement — (931) (8,439) Other expense (income), net 315 (142) (728) (Loss) earnings from continuing operations before income taxes $ (62,958) $ 60,508 $ (78,164) (1) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $205.0 million, $230.6 million and $220.8 million in 2022, 2021 and 2020, respectively, and represent direct and indirect sales to the USG and related agencies. (2) Other unallocated expenses, net include program inventory impairment, goodwill and other intangibles impairments, impairment on assets held for sale, program contract costs impairment, costs from the TSA, cost of acquired retention plans, restructuring and severance costs, net gain (loss) on sale of business, and net loss (gain) on sale of assets. 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Segment Information - continued The following table disaggregates segment revenue by major product line: In thousands 2022 Engineered Products Precision Products Structures Total Defense $ 49,982 $ 22,367 $ 73,597 $ 145,946 Safe and Arm Devices — 125,685 — 125,685 Commercial, Business, & General Aviation 166,748 31,663 44,208 242,619 Medical 86,659 — 7,892 94,551 Industrial & Other 73,852 5,308 — 79,160 Total revenue $ 377,241 $ 185,023 $ 125,697 $ 687,961 2021 Engineered Products Precision Products Structures Total Defense $ 51,033 $ 30,062 $ 87,575 $ 168,670 Safe and Arm Devices — 191,524 — 191,524 Commercial, Business, & General Aviation 115,576 28,995 40,115 184,686 Medical 79,424 — 7,291 86,715 Industrial & Other 71,650 5,748 — 77,398 Total revenue $ 317,683 $ 256,329 $ 134,981 $ 708,993 2020 Engineered Products Precision Products Structures Total Defense $ 55,380 $ 22,523 $ 102,497 $ 180,400 Safe and Arm Devices — 248,482 — 248,482 Commercial, Business, & General Aviation 135,289 26,803 58,171 220,263 Medical 63,791 — 6,219 70,010 Industrial & Other 60,603 4,701 — 65,304 Total revenue $ 315,063 $ 302,509 $ 166,887 $ 784,459 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Segment Information - continued The following table illustrates the approximate percentage of segment revenue recognized by product types. 2022 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 41 % 4 % 18 % 63 % Aftermarket 14 % 5 % — % 19 % Safe and Arm Devices — % 18 % — % 18 % Total revenue 55 % 27 % 18 % 100 % 2021 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 35 % 5 % 19 % 59 % Aftermarket 10 % 4 % — % 14 % Safe and Arm Devices — % 27 % — % 27 % Total revenue 45 % 36 % 19 % 100 % 2020 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 31 % 4 % 21 % 56 % Aftermarket 9 % 3 % — % 12 % Safe and Arm Devices — % 32 % — % 32 % Total revenue 40 % 39 % 21 % 100 % The timing related to the satisfaction of performance obligations and the typical timing of payment could vary between military, safe and arm devices and commercial, medical and industrial contracts. For military and safe and arm device contracts with the USG, payment terms typically include progress payments, and the satisfaction of these performance obligations does not vary significantly from timing of payment. For firm-fixed price military and safe and arm device contracts with foreign militaries, the satisfaction of performance obligations could occur at a point in time or over time, depending on the nature of the performance obligations and the right to payment terms in the contracts. Generally, payment terms for these types of contracts range from 30 to 60 days from delivery; however, at times, the Company may negotiate advance payments to cover a portion of the initial costs. Payment terms for firm-fixed price commercial, medical and industrial contracts generally range from 30 to 90 days from delivery. The satisfaction of these performance obligations could occur at a point in time or over time, depending on the nature of the performance obligations and the right to payment terms in the contracts. For certain commercial contracts, the Company may negotiate advance payments for long-lead materials. The following table presents research and development costs by segment: For the year ended December 31, 2022 2021 2020 In thousands Engineered Products $ 8,842 $ 8,399 $ 8,806 Precision Products 10,508 7,443 5,211 Structures 202 230 738 Total research and development costs $ 19,552 $ 16,072 $ 14,755 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Segment Information - continued Summarized asset and cash flow information by business segment is as follows: For the year ended December 31, 2022 2021 2020 In thousands Identifiable assets (1): Engineered Products $ 1,052,576 $ 623,899 $ 681,097 Precision Products 192,743 250,146 315,439 Structures 135,115 125,027 135,021 Corporate (2) 110,898 199,410 174,836 Total assets $ 1,491,332 $ 1,198,482 $ 1,306,393 Capital expenditures: Engineered Products $ 14,667 $ 9,537 $ 11,496 Precision Products 4,658 3,554 2,545 Structures 1,940 2,075 2,650 Corporate 2,424 2,364 1,092 Total capital expenditures $ 23,689 $ 17,530 $ 17,783 Depreciation and amortization (3): Engineered Products $ 30,461 $ 26,306 $ 31,574 Precision Products 3,663 4,148 3,706 Structures 3,519 3,462 5,201 Corporate 3,069 2,738 3,418 Total depreciation and amortization $ 40,712 $ 36,654 $ 43,899 (1) Identifiable assets are year-end assets at their respective net carrying values segregated as to segment and corporate use. (2) For the periods presented, the corporate identifiable assets are principally comprised of cash, short-term and long-term deferred income tax assets, cash surrender value of life insurance policies and fixed assets. (3) Depreciation and amortization amounts exclude amortization of debt issuance costs. Geographic Information Sales are attributed to geographic regions based on the location to which the product is shipped. Geographic distribution of sales recorded is as follows: For the year ended December 31, 2022 2021 2020 In thousands North America $ 452,392 $ 442,432 $ 412,025 Europe 141,657 113,811 148,473 Middle East 41,948 107,408 170,835 Asia 35,691 27,638 34,424 Oceania 10,208 14,160 11,156 Other 6,065 3,544 7,546 Total revenue $ 687,961 $ 708,993 $ 784,459 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Geographic Information - continued Geographic distribution of long-lived assets is as follows: At December 31, 2022 2021 In thousands United States $ 865,659 $ 476,546 Germany 140,626 152,061 Czech Republic 4,827 5,354 Mexico — 1,291 Netherlands 509 593 Switzerland 708 245 Hong Kong 60 132 Total long-lived assets (1) $ 1,012,389 $ 636,222 (1) For the purpose of this disclosure the Company excluded deferred tax assets of $47.4 million and $15.7 million as of December 31, 2022 and 2021, respectively. |
Restructuring Costs (Notes)
Restructuring Costs (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | RESTRUCTURING AND SEVERANCE COSTS Restructuring and severance costs are included in restructuring and severance costs on the Company's Consolidated Statements of Operations and other unallocated expenses, net within in Note 4, Segment and Geographic Information . Transformation Restructuring In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result of this review, the Company identified areas to reduce annualized costs in the Precision Products segment and at Corporate through streamlining processes, consolidating the production of fuzes for the JPF program at its Middletown facility, discontinuing K-MAX® helicopter production and right-sizing the Company's total cost structure. In the year ended December 31, 2022, the Company incurred $6.6 million in severance costs associated with these actions. Refer to Note 12, Goodwill and Other Intangible Assets, Net , for further information on the consolidation of JPF production and refer to Note 10, Inventories , and Note 7, Contract Assets, Contract Costs and Contract Liabilities , for further information regarding the K-MAX® program impairments. The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other Total In thousands Restructuring accrual balance at December 31, 2021 $ — $ — $ — Provision 6,629 — 6,629 Cash payments — — — Restructuring accrual balance at December 31, 2022 (1) $ 6,629 $ — $ 6,629 (1) Of the above accrual balance, $1.0 million was included in other long-term liabilities on the Company's Consolidated Balance Sheets. The remainder is included in other current liabilities. Cost Reduction Initiative The Company continues to evaluate its cost structure with the objective of a lean organizational structure that improves operational efficiency and provides a scalable infrastructure which facilitates future growth opportunities. The Company has identified workforce reductions and other reductions in certain general and administrative expenses to support the cost savings initiative. In the years ended December 31, 2022, 2021, and 2020, the Company incurred $3.2 million, $6.2 million, and $4.0 million, respectively, related to this initiative. 5. RESTRUCTURING AND SEVERANCE COSTS (CONTINUED) Other 2020 Restructuring and Severance Costs In the year ended December 31, 2020, the Company incurred severance costs of $0.5 million as it integrated the acquisition of Bal Seal, $3.6 million in association with workforce reductions in response to the unprecedented hardships brought on by COVID-19, and $0.3 million in restructuring activities at certain composites businesses to support the ongoing effort of improving capacity utilization and operating efficiency to better position the Company for increased profitability and growth. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET Accounts receivable consist of the following: At December 31, 2022 2021 In thousands Trade receivables $ 31,126 $ 19,228 U.S. Government contracts: Billed 14,150 14,748 Costs and accrued profit – not billed 661 167 Commercial and other government contracts: Billed 41,520 36,787 Costs and accrued profit – not billed 2,268 4,141 Less allowance for doubtful accounts (2,066) (1,547) Accounts receivable, net $ 87,659 $ 73,524 The Company performs ongoing evaluations of its customers’ current creditworthiness, as determined by the review of their credit information to determine if events have occurred subsequent to the recognition of revenue and the related receivable that provide evidence that such receivable will be realized in an amount less than that recognized at the time of sale. Estimates of credit losses are based on historical losses, current economic conditions, geographic considerations, and in some cases, evaluating specific customer accounts for risk of loss. The following table summarizes the activity in the allowance for doubtful accounts in the year ended December 31, 2022: In thousands Balance at December 31, 2021 $ (1,547) Provision (1,301) Additions attributable to acquisitions (67) Amounts written off 351 Recoveries 495 Changes in foreign currency exchange rates 3 Balance at December 31, 2022 $ (2,066) Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: At December 31, 2022 2021 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ — $ 900 Total $ — $ 900 |
Contract Assets, Contract Costs
Contract Assets, Contract Costs and Contract Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Contract Assets, Contract Costs and Contract Liabilities [Abstract] | |
Contract Assets, Contract Costs and Contract Liabilities [Text Block] | . CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES Activity related to contract assets, contract costs and contract liabilities is as follows: December 31, 2022 December 31, 2021 $ Change % Change In thousands Contract assets (1) $ 113,182 $ 112,354 $ 828 0.7 % Contract costs, current portion $ 695 $ 850 $ (155) (18.2) % Contract costs, noncurrent portion $ 673 $ 10,249 $ (9,576) (93.4) % Contract liabilities, current portion $ 4,081 $ 2,945 $ 1,136 38.6 % Contract liabilities, noncurrent portion $ 20,515 $ 16,528 $ 3,987 24.1 % (1) The Company's contract assets were net of unliquidated progress payments, primarily from the U.S. Government, of $43.3 million and $59.3 million at December 31, 2022 and December 31, 2021, respectively. Contract Assets Contract assets remained relatively flat due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations, particularly on certain structures contracts, during the year ended December 31, 2022, mostly offset by amounts billed on the JPF contract, the AH-1Z contract and the KAflex® contract. There were no significant impairment losses related to the Company's contract assets during the years ended December 31, 2022 and December 31, 2021. Contract assets includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: At December 31, 2022 2021 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ — $ 682 Contract Costs At December 31, 2022 and 2021, costs to fulfill a contract were $1.4 million and $11.1 million, respectively. There were no costs to obtain a contract at December 31, 2022 and 2021. These amounts are included in contract costs, current portion and contract costs, noncurrent portion on the Company's Consolidated Balance Sheets at December 31, 2022 and December 31, 2021. Contract costs, current portion at December 31, 2022 decreased when compared to December 31, 2021. This was primarily the result of the amortization of contract costs, partially offset by the reclassification of costs to fulfill certain structures programs from contract costs, noncurrent portion. For the years ended December 31, 2022 and December 31, 2021, amortization of contract costs was $0.7 million and $8.7 million, respectively. The decrease in contract costs, noncurrent portion was primarily attributable to the write-off of $9.1 million of costs to fulfill the TITAN UAV unmanned aerial system program as the Company will discontinue production of this program. Additionally contributing to the decrease was the reclassification of costs to fulfill certain structures programs to contract costs, current portion . 7. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES (CONTINUED) Contract Liabilities The increase in contract liabilities, current portion was primarily due to advances received for the JPF program and the FireBurst TM enhanced fuzing capability program and the addition of contract liabilities from the Aircraft Wheel and Brake acquisition, partially offset by a reduction in contract liabilities related to the K-MAX® program and as a result of the disposal of the Company's Mexico operations in the third quarter of 2022. For the years ended December 31, 2022 and December 31, 2021, revenue recognized related to contract liabilities, current portion was $2.1 million and $47.9 million, respectively. The increase in contract liabilities, noncurrent portion was due to advances received on the JPF program and the FireBurst TM enhanced fuzing capability program. For the years ended December 31, 2022 and December 31, 2021, the Company did not recognize revenue against contract liabilities, noncurrent portion. Refer to Note 19, Commitments and Contingencies , for further information on the Company's offset agreements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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 the price 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 us 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 for 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 provides the carrying value and fair value of financial instruments that are not carried at fair value at December 31, 2022 and 2021: 2022 2021 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 562,500 $ 547,393 $ 191,876 $ 213,222 (1) These amounts are classified within Level 2. The above fair values were computed based on quoted market prices and discounted future cash flows (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, and accounts payable - trade approximate their carrying amounts due to the short-term maturities of these instruments. The Company's cash and cash equivalents at December 31, 2022 and 2021 included $0.1 million and $65.5 million, respectively, of Level 1 money market funds. Recurring Fair Value Measurements The Company holds derivative instruments for foreign exchange contracts 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 current liabilities on the Consolidated Balance Sheets at December 31, 2022 and December 31, 2021. Based on the continued ability to trade and enter into forward contracts and interest rate swaps, the Company considers the markets for the 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 December 31, 2022, such credit risks have not had an adverse impact on the fair value of these instruments. 8. FAIR VALUE MEASUREMENTS (CONTINUED) Nonrecurring Fair Value Measurements In the year ended December 31, 2022, the Company incurred a $44.5 million impairment charge associated with the write-off of inventory related to the K-MAX® medium-to-heavy lift helicopter. Refer to Note 10, Inventories , for further information. During 2022, the Company incurred a $25.3 million impairment charge associated with its KPP-Orlando reporting unit. During 2020, the Company incurred a $50.3 million impairment charge for its Aerosystems reporting unit. Refer to Note 12, Goodwill and Other Intangible Assets, Net |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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 reported on the Consolidated Balance Sheets at fair value. Changes in the fair values of derivatives are reported 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 held 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. 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. Cash Flow Hedges Interest Rate Swaps The Company's Credit Agreement contains floating rate obligations and is subject to interest rate fluctuations. In late 2022, the Company entered into interest rate swap agreements with a notional value of $200.0 million, effective January 1, 2023, for the purposes of hedging the eight quarterly variable-rate Credit Agreement interest payments due in 2023 and 2024. These interest rate swap agreements were designated as cash flow hedges and intended to manage interest rate risk associated with the Company's variable-rate borrowings and minimize the impact on earnings and cash flows of interest rate fluctuations attributable to changes in SOFR rates. These interest rate swaps were not material to the Company's financial statements at and in the year ended December 31, 2022. Forward Exchange Contracts From time to time, the Company will enter into foreign exchange contracts that are not designated as hedging instruments. These contracts are entered into in order to minimize the impact of foreign currency fluctuations on the Company's earnings and cash flows. The Company reports expense related to these contracts in other expense (income), net on the Consolidated Statements of Operations. In addition to the forward exchange contract mentioned above, the Company held forward exchange contracts to mitigate the risk associated with foreign currencies that were not designated as hedging instruments as of December 31, 2022 and 2021. The balances associated with the contracts and the gains or losses reported in other expense (income), net were not material for the years ended December 31, 2022, 2021 or 2020. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: At December 31, 2022 2021 In thousands Raw materials $ 25,798 $ 19,123 Contracts in process: US Government 5,835 1,985 Commercial and other government contracts 85,436 61,637 Contracts and other work in process (including certain general stock materials) 19,338 75,115 Finished goods 40,061 35,240 Inventories $ 176,468 $ 193,100 Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. There were no such matters at December 31, 2022. These items totaled $0.6 million at December 31, 2021. In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result of this review, the Company determined that it will discontinue the production of the K-MAX® medium-to-heavy lift helicopters and K-MAX TITAN unmanned aerial system in 2023. The Company will continue to support the existing K-MAX® fleet in operation, including providing operators with repair, spare parts and fleet services, as well as training. As a result of this decision, management wrote off $44.5 million of inventory associated with these programs in the year ended December 31, 2022. This amount was included in program inventory impairment on the Company's Consolidated Statements of Operations. The amount written off was comprised of a lower of cost or net realizable value write down on three unsold aircraft and unusable inventory. Unusable inventory includes long lead parts made specifically for the production of the K-MAX® for which there are no alternative uses and spare parts and blades that were in excess of the amounts needed to support the existing fleet. At December 31, 2022 and 2021, $24.7 million and $69.2 million, respectively, of K-MAX® inventory was included in contracts and other work in process inventory and finished goods on the Company's Consolidated Balance Sheets. Management believes that approximately $22.5 million of the K-MAX® inventory will be sold after December 31, 2023, based upon supporting the fleet for the foreseeable future. At December 31, 2022 and 2021, $6.2 million and $6.0 million, respectively, of SH-2G(I) inventory was included in contracts and other work in process inventory on the Company's Consolidated Balance Sheets. Management believes that approximately $5.3 million of the SH-2G(I) inventory will be sold after December 31, 2023. This balance represents spares requirements and inventory to be used in SH-2G programs. |
Property Plant and Equipment, N
Property Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net is summarized as follows: At December 31, 2022 2021 In thousands Land $ 38,743 $ 36,367 Buildings 137,777 135,887 Leasehold improvements 15,778 16,151 Machinery, office furniture and equipment 260,801 249,527 Construction in process 16,596 11,778 Total 469,695 449,710 Less accumulated depreciation (268,089) (251,888) Property, plant and equipment, net $ 201,606 $ 197,822 Depreciation expense was $25.4 million, $26.2 million and $28.0 million for 2022, 2021 and 2020, respectively. Finance Leases For the years ended December 31, 2022 and 2021, $9.8 million and $6.7 million, respectively, of assets included in machinery, office furniture and equipment and construction in process were accounted for as finance leases. At December 31, 2022 and 2021, the Company had accumulated depreciation of $3.2 million and $2.9 million, respectively, associated with these assets. Depreciation expense associated with the finance leases was $0.9 million, $0.8 million and $0.9 million for 2022, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [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 the Company: 2022 Engineered Products Precision Products Structures Total In thousands Gross balance at beginning of period $ 199,306 $ 41,375 $ 66,559 $ 307,240 Accumulated impairment — — (66,559) (66,559) Net balance at beginning of period 199,306 41,375 — 240,681 Additions (1) 169,790 — — 169,790 Impairments — (25,306) — (25,306) Foreign currency translation (5,311) — — (5,311) Net balance at end of period $ 363,785 $ 16,069 $ — $ 379,854 Accumulated impairment at end of period $ — $ (25,306) $ (66,559) $ (91,865) (1) The additions to goodwill in the year ended December 31, 2022 were attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments , for further information on this acquisition. 2021 Engineered Products Precision Products Structures Total In thousands Gross balance at beginning of period $ 205,869 $ 41,375 $ 66,559 $ 313,803 Accumulated impairment — — (66,559) (66,559) Net balance at beginning of period 205,869 41,375 — 247,244 Additions — — — — Impairments — — — — Foreign currency translation (6,563) — — (6,563) Net balance at end of period $ 199,306 $ 41,375 $ — $ 240,681 Accumulated impairment at end of period $ — $ — $ (66,559) $ (66,559) 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Goodwill - continued 2022 Analysis Qualitative assessments were performed for the Specialty Bearings, Bal Seal and Aircraft Wheel and Brake reporting units, which took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units, the assessment of assumptions used in the previous fair value calculations and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to a quantitative assessment In accordance with ASC 350, the Company evaluates goodwill for possible impairment on at least an annual basis. Additionally, the Company is required to evaluate goodwill for possible impairment testing if an event occurs or circumstances change that indicate that the fair value of the reporting entity may be below its carrying amount. In December 2022, the Company announced it will consolidate the production of JPF fuzes to its Middletown facility resulting in the closure of the Orlando facility in 2024 due to reduced demand as the JPF program continues to move through its life cycle. The Company considered the reduction in demand, as well as the updated forecasts for the reporting unit, which indicated the forecasted cash flows for the KPP-Orlando reporting unit were lower than amounts previously forecasted. Management performed a quantitative analysis on the KPP-Orlando reporting unit using an income methodology based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using a rate commensurate with the risks associated with those cash flows. The quantitative analysis resulted in a conclusion that the fair value of the KPP-Orlando reporting unit was $25.3 million below its carrying value; therefore, goodwill was impaired. In the year ended December 31, 2022, the Company recorded a goodwill impairment charge of $25.3 million for the KPP-Orlando reporting unit. This impairment charge was included in goodwill and other intangibles impairment on the Company's Statement of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information . An additional $16.1 million of goodwill remains at this reporting unit. In accordance with ASC 360, the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. In conjunction with the reduction in JPF demand and lower forecasted cash flows, the company evaluated the long-lived assets of the KPP-Orlando location for possible impairment. No such impairment was determined. 2021 Analysis In 2021, the Company performed a qualitative assessment for the Specialty Bearings and KPP-Orlando reporting units, while a quantitative assessment was performed for the Bal Seal reporting unit. The qualitative assessments performed for the Specialty Bearings and KPP-Orlando reporting units took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units, the assessment of assumptions used in the previous fair value calculations and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to a quantitative assessment. The results of the quantitative analysis performed for the Bal Seal reporting unit indicated that the fair value of the reporting unit exceeded its respective carrying value. The Company performed a sensitivity analysis relative to the discount rate and growth rate selected and determined a decrease of one percentage point in the terminal growth rate or an increase of one percentage point in the discount rate would not result in a fair value calculation less than the carrying value. 2020 Analysis The spread of COVID-19 and the precautionary measures instituted by governments and businesses to mitigate the risk of its spread contributed to the general slowdown in the global economy and significant volatility in financial markets, which resulted in a significant decrease in the Company's stock price and market capitalization in the first quarter of 2020. As COVID-19 continued to impact the organization throughout 2020 and the Company’s stock price remained at a similar level, management assessed each reporting unit for triggering events for potential impairment on a quarterly basis. 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Goodwill - continued 2020 Analysis - continued As part of management's evaluation of triggering events in the third quarter of 2020, the assessment of the Company's operating results identified a decline in earnings compared to forecasts used in prior periods for its Aerosystems reporting unit. The Company considered this decline, as well as the updated forecasts for the reporting unit, which indicated the forecasted cash flows for this reporting unit were lower than amounts previously forecasted. As a result, management identified a triggering event for possible goodwill impairment in its Aerosystems reporting unit. Management performed a quantitative analysis on the Aerosystems reporting unit using an income methodology based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. In addition, management used a market-based valuation method involving analysis of market multiples of revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for (i) a group of comparable companies and (ii) recent transactions, if any, involving comparable companies. In estimating the fair value of the reporting unit, a weighting of 80% to the income approach and 20% to the market-based valuation method was selected, consistent with quantitative analyses performed in prior periods. The estimated fair value of the reporting unit was adjusted based on an assumption of excess working capital, which represents management's identification of specific contract-related assets that will generate cash flows in the future. The quantitative analysis resulted in a conclusion that the fair value of the Aerosystems reporting unit was $56.1 million below its carrying value; therefore, goodwill was impaired. In the year ended December 31, 2020, the Company recorded a goodwill impairment charge of $50.3 million for the Aerosystems reporting unit, which represented the entire goodwill balance for the reporting unit. This impairment charge was included in goodwill and other intangibles impairment on the Company's Statement of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information . Other Intangible Assets Other intangible assets consisted of: At December 31, At December 31, 2022 2021 Amortization Gross Accumulated Gross Accumulated In thousands Customer lists / relationships 6-38 years $ 363,549 $ (41,695) $ 127,206 $ (35,096) Developed technologies 7-20 years 45,028 (17,508) 45,170 (13,591) Trademarks / trade names 15-40 years 16,681 (3,153) 16,982 (2,659) Non-compete agreements and other 1-15 years 17,336 (7,974) 4,629 (4,617) Patents 17 years 551 (484) 523 (473) Total $ 443,145 $ (70,814) $ 194,510 $ (56,436) The increase in customer lists / relationships and non-compete agreements and other was primarily attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments , for further information on this acquisition. Intangible asset amortization expense of $15.3 million, $10.5 million and $15.7 million in 2022, 2021 and 2020, respectively, was included in intangible asset amortization expense on the Company's Consolidated Statements of Operations. Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2022 is as follows: In thousands 2023 $ 26,031 2024 $ 21,610 2025 $ 20,825 2026 $ 20,804 2027 $ 20,547 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Other Intangible Assets - continued In order to determine the useful life of acquired intangible assets, the Company considers numerous factors, most importantly the industry considerations associated with the acquired entities. The Company determines the amortization period for acquired intangible assets, such as customer relationships, based primarily on an analysis of their historical customer sales attrition information and the period over which the assets are expected to deliver meaningful cash flow generation in support of the fair value of the asset. |
Environmental Costs
Environmental Costs | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Costs | ENVIRONMENTAL COSTS The following table displays the activity and balances associated with accruals related to environmental costs included in other current liabilities and other long-term liabilities: 2022 2021 In thousands Balance at January 1 $ 5,958 $ 6,049 Net additions to accrual 382 391 Payments (504) (482) Balance at December 31 $ 5,836 $ 5,958 Bloomfield In August 2008, the Company completed its purchase of the portion of the Bloomfield campus that Kaman Aerospace Corporation had leased from NAVAIR for many years. In connection with the purchase, the Company has assumed responsibility for environmental remediation at the facility as may be required under the Connecticut Transfer Act (the “Transfer Act”) and it continues the effort to define the scope of the remediation that will be required by the Connecticut Department of Energy and Environmental Protection (“CTDEEP”). The transaction was recorded by taking the undiscounted estimated remediation liability of $20.8 million and discounting it at a rate of 8% to its present value. The fair value of the Navy Property asset, which at that time approximated the discounted present value of the assumed environmental liability of $10.3 million, is included in property, plant and equipment, net. This remediation process will take many years to complete. The following represents estimated future payments for the undiscounted environmental remediation liability related to the Bloomfield campus as of December 31, 2022: In thousands 2023 $ 239 2024 387 2025 — 2026 132 2027 120 Thereafter 3,641 Total $ 4,519 Other In 2014, the Company sold its former manufacturing facility in Moosup, Connecticut to TD Development, LLC ("TD"). Although TD assumed contractual and statutory responsibility for the environmental remediation work required on this site, the Company may be liable for the cost of the investigation, remediation and abatement if TD does not complete them. The Company is currently unable to estimate the total costs necessary for such environmental work. There can be no assurance that this matter would not have an adverse impact on our business, financial condition, results of operation and cash flows. 13. ENVIRONMENTAL COSTS (CONTINUED) Other - continued The Company's environmental accrual also includes estimated environmental remediation costs that the Company expects to incur at the former Music segment’s New Hartford, CT facility. The Company continues to assess the work that may be required at this facility, which may result in a change to this accrual. For further discussion of these matters, see Note 19, Commitments and Contingencies . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-Term Debt The Company has long-term debt as follows: At December 31, 2022 2021 In thousands Revolving credit agreement $ 363,000 $ — Convertible notes 199,500 191,876 Total 562,500 191,876 Less current portion — — Total excluding current portion $ 562,500 $ 191,876 At December 31, 2022 and 2021, the current and long-term debt balances on the Company's Consolidated Balance Sheets were net of debt issuance costs of $1.4 million and $2.5 million, respectively. The weighted average interest rate on long-term borrowings outstanding as of December 31, 2022 and 2021 was 5.71% and 3.25%, respectively. For the years ended December 31, 2022 and 2021, $2.0 million and $2.6 million, respectively, of liabilities associated with our finance leases were included in other long-term liabilities. See Note 20, Leases, for further information. The aggregate annual maturities of long-term debt for each of the next five years are approximately as follows: In thousands 2023 $ — 2024 $ 562,500 2025 $ — 2026 $ — 2027 $ — Convertible Notes Overview During May 2017, the Company issued $200.0 million aggregate principal amount of convertible senior unsecured notes due May 2024 (the "2024 Notes") pursuant to an indenture (the "Indenture"), dated May 12, 2017, between the Company and U.S. Bank National Association, as trustee. In connection therewith, the Company entered into certain capped call transactions that cover, collectively, the number of shares of the Company's common stock underlying the 2024 Notes. 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes On May 12, 2017, the Company issued $175.0 million in principal amount of 2024 Notes, in a private placement offering. On May 24, 2017, the Company issued an additional $25.0 million in principal amount of 2024 Notes pursuant to the initial purchasers' exercise of their overallotment option, resulting in the issuance of an aggregate $200.0 million principal amount of 2024 Notes. The 2024 Notes bear 3.25% interest per annum on the principal amount, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2017. The 2024 Notes will mature on May 1, 2024, unless earlier repurchased by the Company or converted. The Company will settle any conversions of the 2024 Notes in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The sale of the Distribution business in the third quarter of 2019 was deemed to be a "Fundamental Change" and a "Make-Whole Fundamental Change" pursuant to the terms and conditions of the indenture governing the 2024 Notes. As a result, the sale triggered the right of the holders of our 2024 Notes to require us to repurchase all of the 2024 Notes, or any portion thereof that is a multiple of $1,000 principal amount on September 27, 2019. The aggregate principal amount of the 2024 Notes validly tendered and not validly withdrawn was $0.5 million, representing 0.25% of all outstanding notes. Holders of such notes receive the purchase price equal to 100% of the principal amount of the 2024 Notes being purchased, plus accrued and unpaid interest. The following table illustrates the conversion rate at the date of issuance of the 2024 Notes: 2024 Notes Conversion Rate per $1,000 principal amount (1) 15.3227 Conversion Price (2) $ 65.2626 Contingent Conversion Price (3) $ 84.8413 Aggregate shares to be issued upon conversion (4) 3,056,879 (1) Represents the number of shares of Common Stock hypothetically issuable per each $1,000 principal amount of 2024 Notes, subject to adjustments upon the occurrence of certain specified events in accordance with the terms of the Indenture. (2) Represents $1,000 divided by the conversion rate as of such date. The conversion price reflects the strike price of the embedded option within the 2024 Notes. If the Company's share price exceeds the conversion price at conversion, the noteholders would be entitled to receive additional consideration either in cash, shares or a combination thereof, the form of which is at the sole discretion of the Company. (3) Prior to November 1, 2023, the notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after July 1, 2017, and only during any such fiscal quarter, if the last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter, (2) during the five consecutive business day period following any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day or (3) upon the occurrence of specified corporate events. On or after November 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change (as defined in the Indenture), holders of the notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest. As of December 31, 2022, none of the conditions permitting the holders of the 2024 Notes to convert had been met. Therefore, the 2024 Notes are classified as long-term debt. (4) This represents the number of shares hypothetically issuable upon conversion of 100% of the outstanding aggregate principal amount of the 2024 Notes at each date; however, the terms of the 2024 Notes state that the Company may pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The Company currently intends to settle the aggregate principal amount in cash. Amounts due in excess of the principal, if any, also may 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. 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes - continued In connection with the 2024 Notes offering, the Company entered into capped call transactions with certain of the initial purchasers or their respective affiliates. These transactions are intended to reduce the potential dilution to the Company's shareholders and/or offset the cash payments the Company is required to make in excess of the principal amount upon any future conversion of the notes in the event that the market price per share of the Company's common stock is greater than the strike price of the capped call transactions, with such reduction and/or offset subject to a cap based on the cap price of the capped call transactions. Under the terms of the capped call transactions, the strike price ($65.2626) and the cap price ($88.7570) are each subject to adjustment in certain circumstances. In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates entered into various derivative transactions with respect to the Company’s common stock concurrently with or shortly after the pricing of the notes. The capped call transactions, which cost an aggregate $20.5 million, were recorded as a reduction of additional paid-in capital. ASC Topic 815 - Derivatives and Hedging ("ASC 815") provides that contracts are initially classified as equity if (1) the contract requires physical settlement or net-share settlement, or (2) the contract gives the company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The settlement terms of our capped call transactions require net-share settlement. Based on the guidance in ASC 815, the capped call transactions were recorded as a reduction of equity as of the trade date. ASC 815 states that a reporting entity shall not consider contracts to be derivative instruments if the contract issued or held by the reporting entity is both indexed to its own stock and classified in shareholders' equity in its balance sheet. The Company concluded the capped call transactions should be accounted for in shareholders' equity and are, therefore, not to be considered a derivative instrument. At issuance, ASC 470-20 - Debt with Conversion and Other Options (“ASC 470-20”) clarified the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement. ASC 470-20 specified that an issuer of such instruments should separately account for the liability and equity components of the instruments in a manner that reflects the issuer's non-convertible debt borrowing rate which interest costs are to be recognized in subsequent periods. The note payable principal balance for the 2024 Notes at the date of issuance of $200.0 million was bifurcated into the debt component of $179.5 million and the equity component of $20.5 million. The difference between the note payable principal balance and the fair value of the debt component representing the debt discount was being accreted to interest expense over the term of the 2024 Notes. The fair value of the debt component was recognized using a 5.0% discount rate, representing the Company's borrowing rate at the date of issuance for a similar debt instrument without a conversion feature with an expected life of seven years. At January 1, 2022, the Company adopted ASU 2020-06, which removed certain separation models between a debt component and equity component for certain convertible instruments. As a result, the convertible notes balance consists solely of a debt component as of the adoption. Refer to Note 1, Summary of Significant Accounting Policies , for further information on the cumulative effect adjustment recorded at adoption. The Company incurred $7.4 million of debt issuance costs in connection with the sale of the 2024 Notes, which was allocated between the debt and equity components of the instrument at issuance. Of the total amount, $0.7 million was recorded as an offset to additional paid-in capital. The balance, $6.7 million, was recorded as a contra-debt balance and was being amortized over the term of the 2024 Notes. As a result of the adoption of ASU 2020-06, the amount recorded to additional paid-in capital was reclassified to retained earnings in the cumulative effect adjustment recorded on January 1, 2022. The remaining balance of debt issuance costs is being amortized over the term of the convertible notes. Total amortization expense for the years ended December 31, 2022, 2021 and 2020 was $1.0 million, $1.1 million and $0.9 million. 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes - continued The carrying amount of the equity component and the principal amount of the liability component, the unamortized discount and the net carrying value of the liability are as follows: 2024 Notes December 31, 2022 December 31, 2021 In thousands Principal amount of liability $ 199,500 $ 199,500 Unamortized discount (1) — 7,624 Carrying value of liability $ 199,500 $ 191,876 Equity component (1) $ — $ 20,408 (1) At January 1, 2022, the Company adopted ASU 2020-06, which removed certain separation models between a debt component and equity component for certain convertible instruments. Refer to Note 1, Summary of Significant Accounting Policies , for further information on the cumulative effect adjustment recorded at adoption. Because the embedded conversion option is indexed to the Company’s own stock and would be classified in shareholders’ equity, it does not meet the criterion under ASC 815 that would require separate accounting as a derivative instrument. As of December 31, 2022, the "if converted value" did not exceed the principal amount of the 2024 Notes since the closing sales price of the Company's common stock was less than the conversion price of the 2024 Notes. Interest expense associated with the 2024 Notes consisted of the following: For the year ended December 31, 2022 2021 2020 In thousands Contractual coupon rate of interest $ 6,484 $ 6,484 $ 6,484 Accretion of convertible notes discount (1) — 2,957 2,860 Interest expense - convertible notes $ 6,484 $ 9,441 $ 9,344 (1) In accordance with ASU 2020-06, entities that previously required separate accounting for conversion features will report less interest expense as those conversion features were recorded as debt discounts which were amortized over the term of the debt. Refer to Note 1, Summary of Significant Accounting Policies , for further information on the adoption of ASU 2020-06. 14. DEBT (CONTINUED) Revolving Credit Agreement On December 13, 2019, the Company closed an amended and restated $800.0 million Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A., as Administrative Agent and as Collateral Agent. The Credit Agreement amends and restates the Company's previously existing credit facility in its entirety to, among other things: (i) extend the maturity date to December 13, 2024; (ii) increase the aggregate amount of revolving commitments from $600.0 million to $800.0 million; (iii) remove the existing term loan credit facility; (iv) modify the affirmative and negative covenants set forth in the facility; and (v) effectuate a number of additional modifications to the terms and provisions of the facility, including its pricing. Capitalized terms used but not defined within this Note 14, Debt , have the meanings ascribed thereto in the Credit Agreement. This agreement was further amended on December 8, 2021 to move its LIBOR benchmark for non-USD borrowings to other non-USD benchmark rates. On May 31, 2022, the Credit Agreement was further amended to, among other things, adjust the Total Net Leverage Ratio financial covenant in anticipation of the consummation of the announced acquisition of Parker's Aircraft Wheel and Brake division. Prior to the amendment, the Credit Agreement included a requirement that the Consolidated Total Net Leverage Ratio could not be greater than 4.00 to 1.00, with an election to increase the maximum to 4.50 to 1.00 for four consecutive quarters, in connection with a Material Permitted Investment. The financial covenant now requires for any period of four consecutive fiscal quarters ending on or after the closing date of the acquisition of Parker's Aircraft Wheel and Brake division ("closing date"), the Consolidated Total Net Leverage Ratio, as defined in the Credit Agreement, cannot be greater than 5.00 to 1.00 for any period of four consecutive quarters ending on or prior to the first anniversary of the closing date, 4.75 to 1.00 for any period of four consecutive quarters ending after the first anniversary and on or prior to second anniversary of the closing date, and 4.50 to 1.00 for any period of four consecutive quarters ending after the second anniversary of the closing date. In addition, the amendment adjusted the definitions of "permitted acquisition", "pro forma" and the "limited condition acquisition" provision, as applicable, to the acquisition of Parker's Aircraft Wheel and Brake division. As of December 31, 2022, the Consolidated Total Net Leverage Ratio was 3.65, as calculated in accordance with the Credit Agreement. On November 10, 2022, the Credit Agreement was amended further to, among other things, amend certain definitions and other provisions (i) to replace the LIBOR-based benchmark rate for U.S. dollar denominated loans and other extensions of credit under the Credit Agreement with a secured overnight financing rate for specified interest periods plus a credit spread adjustment of 0.10% per annum for all interest periods (the “Adjusted Term SOFR”), and (ii) to make revisions to the benchmark replacement provisions in the event that an existing interest rate benchmark is discontinued or otherwise non-representative. As a result of Amendment No. 3, (i) the Company may not borrow or continue any loan bearing interest at a rate determined by reference to LIBOR, and (ii) the Company’s existing LIBOR loans shall remain outstanding as such in accordance with the provisions of the Second Amendment and Restated Credit Agreement prior to giving effect to Amendment No. 3 until the expiration of the interest period applicable thereto, at which time they may be converted to loans bearing interest by reference to Adjusted Term SOFR or the base rate. In addition to the Consolidated Total Net Leverage Ratio, as defined in the Credit Agreement, discussed above, the financial covenants associated with the Credit Agreement also include a requirement that (i) the Interest Coverage Ratio cannot be less than 3.00 to 1.00; and (ii) Liquidity: (a) as of the last day of the fiscal quarter ending on or about September 30, 2023 cannot be less than an amount equal to 50% of the aggregate principal amount of the 2024 Convertible Notes as of such date, and (b) as of the last day of the fiscal quarter ending on December 31, 2023 and ending on or about March 29, 2024, to be less than the amount equal to 100% of the aggregate principal amount of the 2024 Convertible Notes as of such day. The Company was in compliance with those financial covenants as of and for the quarter ended December 31, 2022, and management does not anticipate noncompliance in the foreseeable future. The Credit Agreement permits the Company to pay cash dividends. The Lenders have been granted a security interest in substantially all of the Company’s and its domestic subsidiaries’ personal property and other assets (including intellectual property but excluding real estate), including a pledge of 66% of the Company’s equity interest in certain foreign subsidiaries and 100% of the Company’s equity interest in its domestic subsidiaries, as collateral for the Company’s obligations under the Credit Agreement. 14. DEBT (CONTINUED) Revolving Credit Agreement - continued The following table shows the amounts available for borrowing under the Company's revolving credit facility: At December 31, 2022 2021 In thousands Total facility $ 800,000 $ 800,000 Amounts outstanding, excluding letters of credit 363,000 — Amounts available for borrowing, excluding letters of credit 437,000 800,000 Letters of credit under the credit facility (1)(2) 51,630 92,646 Amounts available for borrowing $ 385,370 $ 707,354 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (3) $ 211,131 $ 409,914 (1) The Company has entered into standby letters of credit issued on the Company's behalf by financial institutions, and directly issued guarantees to third parties primarily related to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit generally are available for draw down in the event the Company does not perform its obligations, but are not included in the calculation of available for borrowing subject to EBITDA, as defined by the Credit Agreement. (2) Of these amounts, $46.1 million and $86.3 million letters of credit relate to a certain JPF DCS contract in 2022 and 2021, respectively. (3) Amounts available for borrowing subject to EBITDA reflect the minimum borrowing capacity as calculated in accordance with the terms of our Credit Agreement for EBITDA, subject to adjustments. Debt issuance costs in connection with the Credit Agreement have been capitalized and are being amortized over the term of the agreement. The Company incurred $3.6 million of debt issuance costs in connection with the amendment and restatement of the Credit Agreement in the year ended December 31, 2019. An additional $4.4 million of debt issuance costs were incurred in connection with the amendments of the Credit Agreement in 2022. Total amortization expense for the years ended December 31, 2022, 2021 and 2020 was $1.8 million, $0.7 million and $0.7 million, respectively. Interest rates on amounts outstanding under the Credit Agreement are variable, and are determined based on the Senior Secured Net Leverage Ratio, as defined in the Credit Agreement. In addition, the Company is required to pay a quarterly commitment fee on the unused revolving loan commitment amount at a rate ranging from 0.150% to 0.250% per annum, based on the Senior Secured Net Leverage Ratio. Fees for outstanding letters of credit range from 1.125% to 1.625%, based on the Senior Secured Net Leverage Ratio. At December 31, 2022 , there was $363.0 million outstanding on the revolving credit facility. At December 31, 2022, the interest rate was 7.07%. At December 31, 2021, there were no outstanding amounts on the revolving credit facility; therefore, the interest rate was 0%. The Company's Credit Agreement contains floating rate obligations and is subject to interest rate fluctuations. Since the Company's borrowing under the revolver for the acquisition of Aircraft Wheel and Brake in the third quarter of 2022 through December 31, 2022, the weighted-average interest rate under the revolver was 4.83%. In late 2022, the Company entered into interest rate swap agreements with a notional value of $200.0 million, effective January 1, 2023, for the purposes of hedging the eight quarterly variable-rate Credit Agreement interest payments due in 2023 and 2024. These interest rate swap agreements were designated as cash flow hedges and intended to manage interest rate risk associated with our variable-rate borrowings and minimize the impact on earnings and cash flows of interest rate fluctuations attributable to changes in SOFR rates. These interest rate swaps were not material to the Company's financial statements at and in the year ended December 31, 2022. Interest Payments Cash payments for interest were $15.3 million, $11.5 million and $20.8 million in 2022, 2021 and 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss) are shown below: 2022 2021 In thousands Foreign currency translation and other: Beginning balance $ 8,772 $ (717) Net loss on foreign currency translation (10,843) (13,346) Reclassification to net income (1) — 22,835 Other comprehensive (loss) income, net of tax (10,843) 9,489 Ending balance $ (2,071) $ 8,772 Pension and other post-retirement benefits (2) : Beginning balance $ (120,157) $ (130,104) Reclassification to net income Amortization of net loss, net of tax expense of $999 and $1,031, respectively 3,320 3,478 Change in net loss, net of tax (benefit) expense of $(11,889) and $1,918, respectively (39,513) 6,469 Other comprehensive loss, net of tax (36,193) 9,947 Ending balance $ (156,350) $ (120,157) Total accumulated other comprehensive income (loss) $ (158,421) $ (111,385) (1) The foreign currency translation reclassified to net income relates to the sale of the Company's UK Composites business. This balance was included in the loss accrual recorded in impairment on assets held for sale on the Company's Consolidated Statement of Operations in the year ended December 31, 2020 (see Note 2, Disposals , for additional information). (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans for additional information). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) from continuing operations are as follows: For the year ended December 31, 2022 2021 2020 In thousands Current: Federal $ 2,548 $ (5,613) $ 1,693 State (739) 1,061 (3,143) Foreign 441 266 168 2,250 (4,286) (1,282) Deferred: Federal (15,655) 17,533 (5,650) State (3,347) 2,526 899 Foreign 20 1,059 (1,697) (18,982) 21,118 (6,448) Income tax (benefit) expense $ (16,732) $ 16,832 $ (7,730) 16. INCOME TAXES (CONTINUED) The provision for income taxes from continuing operations differs from that computed at the federal statutory corporate tax rate as follows: For the year ended December 31, 2022 2021 2020 In thousands Federal tax at 21% statutory rate $ (13,205) $ 12,707 $ (16,415) State income taxes, net of federal benefit (3,105) 1,459 (2,208) Tax effect: Goodwill impairment charge — — 8,297 Impairment on business — — 7,620 Research and development credits (1,550) (1,995) (821) Impact of entity classification election — 894 — Foreign derived intangible income benefit (158) (494) — Provision to return adjustments (126) 66 610 Foreign losses for which no tax benefit has been recorded 38 308 41 Change in valuation allowance (94) 2,697 1,449 Equity compensation benefit 236 77 (209) Nondeductible compensation 1,320 1,372 215 Federal benefit of NOL Carryback — — (3,885) Other, net (88) (259) (2,424) Income tax (benefit) expense $ (16,732) $ 16,832 $ (7,730) The 2022 effective tax rate includes a charge in the amount of $1.3 million, for nondeductible compensation, with a portion relating to post termination payments and benefits of former executive officers. Additionally, the Company recognized benefits relating to federal research and development credits in the amount of $1.6 million. The 2021 effective tax rate includes a charge to record additiona l valuation allowances relating to the Company’s foreign and state tax loss carryforwards in the amount of $1.5 million and $1.2 million, respectively. The Company also incurred a charge in the amount $1.4 million, primarily attributable to nondeductible compensation relati ng to post termination payments and benefits of former executive officers. Additionally, the Company recognized benefits relating to federal research and development credits in the amount of $2.0 million. The 2020 effective tax rate included charges in the amount of $15.9 million relating to book impairment charges to goodwill and assets held for sale associated with the anticipated sale of the Company’s UK Composites business as neither charge had associated tax benefits. Cash payments for income taxes, net of refunds, were $2.7 million, $4.7 million and $0.9 million in 2022, 2021 and 2020, respectively. 16. INCOME TAXES (CONTINUED) The tax effects of temporary differences that give rise to deferred tax assets and liabilities of continuing operations are presented below: At December 31, 2022 2021 In thousands Deferred tax assets: Deferred employee benefits $ 25,763 $ 18,380 Tax loss and credit carryforwards 17,049 17,057 Accrued liabilities and other 3,012 2,140 Contract accounting differences 4,079 3,693 Environmental liabilities 3,324 3,266 Lease obligations 1,608 2,450 Inventory 12,069 1,413 Capitalized expenses 5,385 — Total deferred tax assets 72,289 48,399 Deferred tax liabilities: Property, plant and equipment (10,714) (11,680) Intangibles (15,201) (21,282) Other items (43) (205) Total deferred tax liabilities (25,958) (33,167) Net deferred tax assets before valuation allowance 46,331 15,232 Valuation allowance (5,025) (6,022) Net deferred tax assets after valuation allowance $ 41,306 $ 9,210 As of December 31, 2022, the Company had foreign tax loss carryforwards of $4.5 million, federal and state tax loss carryforwards of $8.9 million and state credit carryforwards of $3.6 million, respectively. Tax loss and credit carryforwards associated with approximately $9.4 million of deferred tax assets have no expiration period. The remainders of the loss and credit carryforwards will expire between 2023 and 2040. A valuation allowance is required to be established unless management determines it is more likely than not that the Company will ultimately utilize the tax benefit associated with a deferred tax asset. At December 31, 2022, the Company has foreign valuation allowances of $1.8 million, and federal and state valuation allowances of $3.2 million. Management will continue to evaluate the appropriate level of valuation allowance on all deferred tax assets considering such factors as prior earnings history, expected future earnings, carryback and carryforward periods, and tax and business strategies that could potentially enhance the likelihood of realization of the deferred tax assets. Pre-tax amounts from foreign operations amounted to income of $2.0 million in 2022 and losses of $1.5 million and $36.9 million in 2021, and 2020, respectively. Tax Reform required the Company to effectively recognize all foreign earnings in U.S. taxable income in the year ended December 31, 2017. Due to this provision and foreign losses incurred in prior years, there were no accumulated earnings in foreign subsidiaries for which U.S income taxes were required to be provided in 2022. The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities. Unrecognized tax benefits represent the difference between the position taken and the benefit reflected in the financial statements. 16. INCOME TAXES (CONTINUED) The change in the liability for 2022, 2021 and 2020 is explained as follows: 2022 2021 2020 In thousands Balance at January 1 $ 3,592 $ 3,612 $ 3,214 Additions based on current year tax positions — 32 481 Changes for tax positions of prior years 211 (52) 3 Settlements (67) — (86) Lapse of statute of limitations (281) — — Balance at December 31 (1) $ 3,455 $ 3,592 $ 3,612 (1) Including interest and penalties of $0.5 million, $0.5 million and $0.4 million in 2022, 2021 and 2020, respectively. Included in unrecognized tax benefits at December 31, 2022, were items approximating $3.0 million that, if recognized, would favorably affect the Company’s effective tax rate in future periods. The Company files tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including 2016. During 2022, 2021 and 2020, $0.2 million or less of interest and penalties was recognized each year as a component of income tax expense. It is the Company’s policy to record interest and penalties on unrecognized tax benefits as income taxes. The Company does not anticipate any significant increases or decreases to unrecognized tax benefits during the next twelve months. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2022 | |
Payment for Pension and Other Postretirement Benefits [Abstract] | |
Pension Plans | PENSION PLANS The Company has a non-contributory qualified defined benefit pension plan (the “Qualified Pension Plan”). On February 23, 2010, the Company’s Board of Directors approved an amendment to the Qualified Pension Plan that, among other things, closed the Qualified Pension Plan to all new hires on or after March 1, 2010, and stipulated that years of service would continue to be added for purposes of the benefit calculations only through December 31, 2015, with no further accrual of benefits for service thereafter. As a result, effective December 31, 2015, the qualified pension plan was frozen with respect to future benefit accruals. The Company also has a Supplemental Employees’ Retirement Plan (“SERP”), which is considered a non-qualified pension plan. The SERP provides certain key executives, whose compensation is in excess of the limitations imposed by federal law on the qualified defined benefit pension plan, with supplemental benefits based upon eligible earnings, years of service and age at retirement. During 2010, the Company's Board of Directors also approved an amendment to the SERP that made changes consistent with the pension plan amendment. The Board's Compensation Committee and the Board have not approved any new participants to the SERP since February 28, 2010, and do not intend to do so at any time in the future. The measurement date for both these plans is December 31. 17. PENSION PLANS (CONTINUED) Obligations and Funded Status The changes in the actuarial present value of the projected benefit obligation and fair value of plan assets are as follows: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Projected benefit obligation at beginning of year $ 785,795 $ 836,531 $ 5,017 $ 7,669 Service cost 3,363 1,301 — — Interest cost 17,198 14,165 86 63 Actuarial liability (gain) loss (1) (169,342) (29,590) (737) (63) Benefit payments (40,063) (36,612) (534) (2,652) Projected benefit obligation at end of year $ 596,951 $ 785,795 $ 3,832 $ 5,017 Fair value of plan assets at beginning of year $ 764,009 $ 766,921 $ — $ — Actual return on plan assets (179,304) 23,700 — — Employer contributions — 10,000 534 2,652 Benefit payments (40,063) (36,612) (534) (2,652) Fair value of plan assets at end of year $ 544,642 $ 764,009 $ — $ — Funded status at end of year $ (52,309) $ (21,786) $ (3,832) $ (5,017) Accumulated benefit obligation $ 596,951 $ 785,795 $ 3,832 $ 5,017 (1) The actuarial liability (gain) loss amount for the qualified pension plan for 2022 and 2021 was principally due to the effect of changes in the discount rate. The Company has recorded liabilities related to our qualified pension plan and SERP as follows: At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Current liabilities (1) $ — $ — $ (520) $ (526) Noncurrent liabilities (52,309) (21,786) (3,312) (4,491) Total $ (52,309) $ (21,786) $ (3,832) $ (5,017) (1) The current liabilities are included in other current liabilities on the Consolidated Balance Sheets. The following table presents amounts included in accumulated other comprehensive income on the Consolidated Balance Sheets that will be recognized as components of pension cost in future periods. At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Unrecognized loss (gain) $ 206,896 $ 159,015 $ (68) $ 730 Amount included in accumulated other comprehensive income $ 206,896 $ 159,015 $ (68) $ 730 17. PENSION PLANS (CONTINUED) Obligations and Funded Status - continued The pension plan net periodic benefit costs on the Consolidated Statements of Operations and other amounts recognized in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Shareholders’ Equity were computed using the projected unit credit actuarial cost method and included the following components: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2020 2022 2021 2020 In thousands Service cost for benefits earned during the year $ 3,363 $ 1,301 $ 5,234 $ — $ — $ — Interest cost on projected benefit obligation 17,198 14,165 21,020 86 63 165 Expected return on plan assets (42,177) (45,177) (43,183) — — — Recognized net loss 4,258 4,444 4,804 61 65 944 Additional amount recognized due to curtailment/settlement — — — — 211 — Net pension benefit (income) cost $ (17,358) $ (25,267) $ (12,125) $ 147 $ 339 $ 1,109 Change in net (loss) or gain 52,139 (8,113) (708) (737) (274) 703 Amortization of net loss (4,258) (4,444) (4,804) (61) (65) (944) Total recognized in other comprehensive (loss) income $ 47,881 $ (12,557) $ (5,512) $ (798) $ (339) $ (241) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 30,523 $ (37,824) $ (17,637) $ (651) $ — $ 868 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 2023: Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Contributions $ — $ 10,000 $ 534 $ 2,652 Qualified Pension Plan SERP In thousands Expected contributions during 2023 $ — $ 520 17. PENSION PLANS (CONTINUED) Obligations and Funded Status - continued Expected future benefit payments are as follows: Qualified SERP In thousands 2023 $ 43,242 $ 520 2024 $ 44,380 $ 487 2025 $ 45,138 $ 454 2026 $ 45,709 $ 421 2027 $ 45,928 $ 388 2028-2032 $ 223,607 $ 1,486 Mortality is a key assumption in developing actuarial estimates, and therefore could significantly impact the valuation of the Company's obligations under the qualified pension plan and SERP. The Company reviewed the mortality data and based on the size and demographics of the plan's participant population, the Company determined the Pri-2012 Blue Collar with Scale MP-2021 mortality table was the most appropriate assumption. The Company uses the Financial Times Stock Exchange ("FTSE") Pension Discount Curve, as it is deemed to be the most appropriate basis for generating the Company's discount rate assumption, as the future cash flows of the plan are most closely aligned to the Above Median Double-A Curve. The discount rates used in determining benefit obligations of the pension plans are as follows: At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 Discount rate 5.19 % 2.71 % 5.04 % 2.33 % The actuarial assumptions used in determining the net periodic benefit cost of the pension plans are as follows: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 Discount rate (1) 2.71 % 2.34 % 2.33 % 1.78 % / 2.29 % Expected return on plan assets 5.70 % 6.00 % N/A N/A Average rate of increase in compensation levels N/A N/A N/A N/A (1) In November 2021, the Company's SERP had a settlement and re-measurement. This resulted in the Company using a discount rate of 1.78% for the first ten months of the year ended December 31, 2021 and a discount rate of 2.29% for the remaining two months following the re-measurement. Other The Company utilizes a "spot rate approach" in the calculation of pension interest and service cost. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of pension interest and service cost. Qualified Pension Plan Assets The expected return on plan assets rate was determined based upon historical returns adjusted for estimated future market fluctuations. For 2022 and 2021, the expected rate of return on plan assets was 5.7% and 6.0%, respectively. During 2022, the actual return on pension plan assets, net of direct expenses, was (23.8)%. 17. PENSION PLANS (CONTINUED) Qualified Pension Plan Assets - continued Plan assets are invested in a diversified portfolio consisting of equity and fixed income securities. The investment goals for pension plan assets are to improve and/or maintain the Plan’s funded status by generating long-term asset returns that exceed the rate of growth of the Plan’s liabilities. The Plan invests assets in a manner that seeks to (a) maximize return within reasonable and prudent levels of risk of loss of funded status; and (b) maintain sufficient liquidity to meet benefit payment obligations and other periodic cash flow requirements on a timely basis. The return generation/liability matching asset allocation ratio was 38.7%/61.3% at December 31, 2022. As the plan’s funded status changes, the Pension Administrative Committee (the management committee that is responsible for plan administration) will act through an immediate or gradual process, as appropriate, to reallocate assets. Under the current investment policy, no Investment Manager may invest in investments deemed illiquid by the Investment Manager at the time of purchase, development programs, real estate, mortgages or private equities or securities of Kaman Corporation without prior written authorization from the Pension Administrative Committee. In addition, with the exception of USG securities, managers’ holdings in the securities of any one issuer, at the time of purchase, may not exceed 7.5% of the total market value of that manager’s account. The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Short-term Investments – This investment category consists of cash and cash equivalents and futures and options contracts. Cash and cash equivalents are comprised of investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, and are classified as Level 1 investments. Futures contracts and options contracts requiring the investment managers to receive from or pay to the broker an amount of cash equal to daily fluctuations are included in short-term investments and are classified as Level 2 investments. Corporate Stock – This investment category consists primarily of domestic common stock issued by U.S. corporations. Common shares are traded actively on exchanges and price quotes for these shares are readily available. Holdings of corporate stock are classified as Level 1 investments. Mutual Funds – Mutual funds are traded actively on public exchanges. The share prices for these mutual funds are published at the close of each business day. Holdings of mutual funds are classified as Level 1 investments. Common Trust Funds – Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The values of the commingled funds are not publicly quoted and must trade through a broker. For equity and fixed-income commingled funds traded through a broker, the fund administrator values the fund using the net asset value (“NAV”) per fund share, derived from the value of the underlying assets. The underlying assets in these funds (equity securities, fixed income securities and commodity-related securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are not subject to leveling. Fixed Income Securities - For fixed income securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue for each security. The fair values of fixed income securities are based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences, and are categorized as Level 2. These securities are primarily investment grade securities. 17. PENSION PLANS (CONTINUED) Qualified Pension Plan Assets - continued The fair values of the Company’s qualified pension plan assets at December 31, 2022 and 2021, are as follows: Total Carrying Value at December 31, 2022 Quoted prices in Significant other Significant Not subject to leveling In thousands Short-term investments: Cash and cash equivalents $ 14,168 $ 14,168 $ — $ — $ — Futures contracts - assets 145 — 145 — — Futures contracts - liabilities (1,283) — (1,283) — — Fixed income securities 251,317 — 251,317 — — Mutual funds 73,042 73,042 — — — Common trust funds (1) 177,894 — — — 177,894 Corporate stock 26,450 26,450 — — — Subtotal $ 541,733 $ 113,660 $ 250,179 $ — $ 177,894 Accrued income/expense 2,909 107 2,802 — — Total $ 544,642 $ 113,767 $ 252,981 $ — $ 177,894 Total Carrying Value at December 31, 2021 Quoted prices in Significant other Significant Not subject to leveling In thousands Short term investments: Cash and cash equivalents $ 19,033 $ 19,033 $ — $ — $ — Futures contracts - assets 2,014 — 2,014 — — Futures contracts - liabilities (372) — (372) — — Fixed income securities 231,433 — 231,433 — — Mutual funds 72,834 72,834 — — — Common trust funds (1) 417,022 — — — 417,022 Corporate stock 20,222 20,222 — — — Subtotal $ 762,186 $ 112,089 $ 233,075 $ — $ 417,022 Accrued income/expense 1,823 (33) 1,856 — — Total $ 764,009 $ 112,056 $ 234,931 $ — $ 417,022 (1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. Derivatives are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures and interest rate futures. 17. PENSION PLANS (CONTINUED) Other Plans The Company also maintains a Defined Contribution Plan that has been adopted by most of its U.S. subsidiaries. Employees of the adopting employers who meet the eligibility requirements of the plan may participate. Employer matching contributions are made to the plan based on a percentage of each participant’s pre-tax contribution. For each dollar that a participant contributes, up to 5% of compensation, participating subsidiaries make employer contributions of one dollar. Employer contributions to the plan totaled $6.4 million, $6.1 million and $6.7 million in 2022, 2021 and 2020, respectively. One of the Company's foreign subsidiaries maintains a defined benefit plan of its own for its local employees. The net pension liability associated with this plan was not material as of December 31, 2022 and 2021. |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: At December 31, 2022 2021 In thousands Supplemental employees' retirement plan ("SERP") $ 3,306 $ 4,491 Deferred compensation 19,237 20,618 Long-term incentive plan — 1,016 Noncurrent income taxes payable 3,288 3,365 Environmental remediation liability 5,376 5,548 Finance leases 2,002 2,629 Other 3,071 2,170 Total other long-term liabilities $ 36,280 $ 39,837 The Company maintains a non-qualified deferred compensation plan for certain of its employees as well as a non-qualified deferred compensation plan for its Board of Directors. Generally, participants in these plans have the ability to defer a certain amount of their compensation, as defined in the agreement. The deferred compensation liability will be paid out either upon retirement or as requested based upon certain terms in the agreements and in accordance with Internal Revenue Code Section 409A. Disclosures regarding the assumptions used in the determination of the SERP liabilities are included in Note 17, Pension Plans . Discussions of our environmental remediation liabilities are in Note 13, Environmental Costs , and Note 19, Commitments and Contingencies . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Asset Retirement Obligations The Company has unrecorded Asset Retirement Obligation’s (“AROs”) that are conditional upon certain events. These AROs generally include the removal and disposition of non-friable asbestos. The Company has not recorded a liability for these conditional AROs at December 31, 2022, because the Company does not currently believe there is a reasonable basis for estimating a date or range of dates for major renovation or demolition of these facilities. In reaching this conclusion, the Company considered the historical performance of each facility and has taken into account factors such as planned maintenance, asset replacements and upgrades, which, if conducted as in the past, can extend the physical lives of the facilities indefinitely. The Company also considered the possibility of changes in technology and risk of obsolescence in arriving at its conclusion. The Company currently leases various properties under leases that give the lessor the right to make the determination as to whether the lessee must return the premises to their original condition, except for normal wear and tear. The Company does not normally make substantial modifications to leased property, and many of the Company's leases either require lessor approval of planned improvements or transfer ownership of such improvements to the lessor at the termination of the lease. Historically the Company has not incurred significant costs to return leased premises to their original condition. 19. COMMITMENTS AND CONTINGENCIES (CONTINUED) Other Matters Offset Agreement The Company has entered into offset agreements as a condition to obtaining orders from a foreign customer for the Company's JPF product. Offset agreements are designed to return economic value to the foreign country by requiring the Company to engage in activities supporting local defense or commercial industries, promoting a balance of trade, developing in-country technology capabilities or addressing other local development priorities. Such agreements may be satisfied through activities that do not require a direct cash payment, including transferring technology, providing manufacturing, training and other consulting support to in-country projects and the purchase by third parties of supplies from in-country vendors. The agreements may also be satisfied through the Company's use of cash for activities, such as subcontracting with local partners, purchasing supplies from in-country vendors, providing financial support for in-country projects and making investments in local ventures. At December 31, 2022, the aggregate amount of the Company's offset agreements had an outstanding notional value of approximately $220.9 million, which is equal to sixty percent of the contract value as defined by the agreement between the customer and the Company. The amount ultimately applied against offset agreements is based on negotiations with the customer and may require cash outlays that represent only a fraction of the notional value in the offset agreement. The Company continues to work with the customer to further define the requirements to satisfy the offset agreements. Offset programs typically extend over several years and may provide for penalties in the event the Company fails to perform according to offset requirements. The satisfaction of the offset requirements will be determined by the customer. In the event the offset requirements of the contract are not met, the Company could be liable for potential penalties up to $18.8 million payable to the customer. Failure to satisfy the offset requirements could also negatively impact the Company's ability to attract future orders from this customer. The Company considers these potential penalties to be a reduction to the transaction price in its determination of the value of the performance obligations within these contracts. At December 31, 2022, $18.2 million in contract liabilities associated with the potential penalties of the offset requirements were included on the Company's Consolidated Balance Sheets. Guarantee During 2020, the Company and the USG entered into a Guaranty Agreement, pursuant to which the Company agreed to guarantee the full, complete and satisfactory performance of its subsidiary, Kaman Precision Products, Inc. ("KPPI") under all current and future contracts with the USG. As of the date of this filing, the only contract in place between KPPI and the USG relates to the production and sale of the JPF. KPPI is currently fulfilling the requirements of Option 16. The guarantee was provided in lieu of a periodic financial capability review by the Financial Capacity Team ("FCT") of the Defense Contract Management Agency ("DCMA"). The Company is unable to estimate the maximum potential amount of future payments under the guarantee as it is dependent on costs incurred by the USG in the event of default. Although the Company believes the risk of default is low given the maturity and operational performance of the JPF program, there can be no assurance that the guarantee will not have a material adverse effect on the Company's results of operations, financial position and cash flows. New Hartford In connection with sale of the Company’s Music segment in 2007, the Company assumed responsibility for meeting certain requirements of the Transfer Act that applied to the Company's sale of the Ovation guitar manufacturing business, located in New Hartford, Connecticut (“Ovation”). Under the Transfer Act, those responsibilities essentially consist of assessing the leased 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 leased space. The environmental investigation, active remediation and groundwater monitoring are complete. In accordance with state regulations, the Company is preparing and Environmental Land Use Restriction (i.e., deed restriction) to support closure (i.e., Verification) of the Company's Transfer Act responsibilities. 19. COMMITMENTS AND CONTINGENCIES (CONTINUED) Other Matters - continued New Hartford - continued The Company's estimate of its portion of the cost to assess the environmental conditions and remediate this site is $2.3 million, all of which has been accrued. The total amount paid to date in connection with these environmental remediation activities is $1.7 million. At December 31, 2022, the Company had $0.6 million accrued for these environmental remediation activities. A portion ($0.1 million) of the accrual related to this property is included in other current liabilities 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 and associated Verification 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 Kaman Aerospace Corporation had leased from NAVAIR, the Company assumed responsibility for environmental remediation at the facility as may be required under the Transfer Act and is currently remediating the property under the guidance of the CTDEEP. The assumed environmental liability of $10.3 million 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 $15.4 million. At December 31, 2022, the Company had $2.1 million accrued for these environmental remediation activities. A portion ($0.3 million) of the accrual related to this property is included in other current liabilities, 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. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | . LEASES The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings at varying dates from January 2023 to March 2028. The terms of most of these leases are in the range of 3 to 8 years, with certain leases renewable for varying periods. It is expected that in the normal course of business leases that expire will be renewed or replaced by leases on other similar property. Some of the Company's lease obligations have rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The terms for most machinery and equipment leases range from 3 to 5 years. The Company's finance leases are included in machinery, office furniture and equipment and construction in process and amortization of these assets is included in depreciation and amortization expense. The terms of these leases range from 3 to 5 years. At December 31, 2022 and 2021, $9.8 million and $6.7 million, respectively, of assets included in property, plant and equipment were accounted for as finance leases. At December 31, 2022 and 2021, the Company had accumulated depreciation of $3.2 million and $2.9 million, respectively, associated with these assets. At the commencement date of a contract containing a lease, a right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments upon entering into a lease agreement. 20. LEASES (CONTINUED) Right-of-use assets, net consisted of the following: Classification December 31, 2022 December 31, 2021 In thousands Assets Operating lease right of use assets Operating lease right-of-use assets, net $ 7,391 $ 11,011 Finance lease right of use assets Property, plant and equipment, net of accumulated depreciation 6,626 3,830 Total leased assets $ 14,017 $ 14,841 The lease liability and future rental payments are required under leases that have initial or remaining non-cancellable lease terms in excess of one year as of December 31, 2022. Lease liabilities consisted of the following: Classification December 31, 2022 December 31, 2021 In thousands Liabilities Current Operating lease liability, current portion Operating lease liabilities, current portion $ 3,332 $ 4,502 Finance lease liability, current portion Other current liabilities 1,756 1,697 Noncurrent Operating lease liability, noncurrent portion Operating lease liabilities, noncurrent portion 4,534 7,140 Finance lease liability, noncurrent portion Other long-term liabilities 2,002 2,629 Total lease liabilities $ 11,624 $ 15,968 20. LEASES (CONTINUED) Future rental payments for continuing operations consisted of the following: December 31, 2022 In thousands Operating leases 2023 $ 3,525 2024 2,849 2025 996 2026 546 2027 316 Thereafter 41 Total future operating lease payments $ 8,273 Interest (407) Present value of future operating lease payments $ 7,866 Finance leases 2023 $ 1,817 2024 1,208 2025 839 2026 — 2027 — Thereafter — Total future finance lease payments $ 3,864 Interest (106) Present value of future finance lease payments $ 3,758 Present value of total future lease payments $ 11,624 The following table illustrates the components of lease expense for the Company's leases. For the year ended December 31, 2022 2021 2020 In thousands Finance lease cost Amortization of right-of-use assets $ 894 $ 758 880 Interest on lease liabilities 106 139 196 Operating lease cost 5,217 5,245 5465 Short-term lease cost 328 242 443 Variable lease cost 461 79 96 Total lease expense $ 7,006 $ 6,463 $ 7,080 The following table segregates cash paid for the Company's leases. For the year ended December 31, 2022 2021 2020 In thousands Operating cash flows from operating leases $ (6,144) $ (6,294) (5,556) Operating cash flows from finance leases (1,830) (2,028) (1,533) Financing cash flows from finance leases (106) (139) (196) Total cash flows from leasing activities $ (8,080) $ (8,461) $ (7,285) 20. LEASES (CONTINUED) During the year ended December 31, 2022, $1.8 million in right-of-use assets were obtained in exchange for new operating lease liabilities and $1.2 million right-of-use assets were obtained in exchange for new finance lease liabilities. Other information related to leases is as follows: December 31, 2022 Weighted-average remaining lease term (years) Operating leases 2.8 Finance leases 2.4 Weighted-average discount rate Operating leases 3.7 % Finance leases 2.7 % |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [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 year. The computation of diluted earnings per share includes 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 year ended December 31, 2022 2021 2020 In thousands, except per share amounts (Loss) earnings from continuing operations $ (46,226) $ 43,676 $ (70,434) Total earnings from discontinued operations — — 692 Net (loss) earnings $ (46,226) $ 43,676 $ (69,742) Basic: Weighted average number of shares outstanding 28,011 27,865 27,723 (Loss) earnings per share from continuing operations $ (1.65) $ 1.57 $ (2.54) Earnings per share from discontinued operations 0.00 0.00 0.02 Basic (loss) earnings per share $ (1.65) $ 1.57 $ (2.52) Diluted (1) : Weighted average number of shares outstanding 28,011 27,865 27,723 Weighted average shares issuable on exercise of dilutive stock options — 26 — Total 28,011 27,891 27,723 (Loss) earnings per share from continuing operations $ (1.65) $ 1.57 $ (2.54) Earnings per share from discontinued operations 0.00 0.00 0.02 Diluted (loss) earnings per share $ (1.65) $ 1.57 $ (2.52) (1) As a result of the adoption of ASU 2020-06, the Company began calculating diluted earnings per share using the if-converted method for its convertible debt instruments in 2022. Prior to the adoption, the Company calculated diluted earnings per share for its convertible debt instruments using the treasury stock method. The Company adopted ASU 2020-06 using the modified retrospective approach; therefore, prior period results have not been retroactively adjusted. Refer to Note 1, Summary of Significant Accounting Policies , for further information on the adoption of ASU 2020-06. 21. COMPUTATION OF EARNINGS PER SHARE (CONTINUED) Equity awards Excluded from the diluted earnings per share calculation for the years ended December 31, 2022, 2021 and 2020, respectively, were 714,474, 567,741 and 597,904 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price. All outstanding stock awards were excluded in the computation of diluted earnings per share in the years ended December 31, 2022 and December 31, 2020 because their effect was antidilutive due to the loss from continuing operations. For the years ended December 31, 2022 and December 31, 2020, an additional 64,767 and 40,979 shares, respectively, issuable under equity awards, which would have been dilutive if exercised based on the average market price being higher than the exercise price, were excluded from the computation of diluted earnings per share as their effect was antidilutive due to the loss from continuing operations. 2024 Convertible Notes For the year ended December 31, 2022, 3,056,879 shares issuable under Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because their effect was antidilutive. For the years ended December 31, 2021 and 2020, shares issuable under the Convertible Notes due 2024 were excluded from the diluted earnings per share calculation because the conversion price was more than the average market price of the Company's stock during the periods. |
Share-Based Arrangements
Share-Based Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Arrangements | SHARE-BASED ARRANGEMENTS General The Company accounts for stock options, RSAs, restricted stock units and PSUs 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. In 2021, the Company modified its long-term incentive program to increase the emphasis on equity. Beginning in the first quarter of 2021, the long-term incentive awards granted to the Company's named executive officers ("NEOs") consist of a combination of service-based RSAs and PSUs which are intended to be settled in shares, as opposed to cash-based awards that had been utilized in the past. These awards are expected to increase the alignment of interests between the Company's NEOs and shareholders and help build stock ownership for new executives, supporting both executive retention and the Company's long-term financial performance. RSAs will vest over a three-year period on each of the first three anniversaries of the date of grant. The number of PSUs that will vest will be determined based on TSR and ROIC over a three-year performance period, each of which will remain equally weighted in determining payouts. The achievement level for both factors may range from zero to 200%. The PSUs granted in 2022 and 2021 assumed a 100% achievement level. In 2022, the PSUs granted in 2021 were adjusted to a 33% achievement level. Compensation expense for stock options, RSAs, restricted stock units and PSUs is recognized on a straight-line basis over the vesting period of the awards. Throughout the course of the vesting period, the Company monitors the achievement level for the ROIC metric of the PSUs compared to the ROIC target and adjusts the number of shares expected to be earned, and the related compensation expense recorded thereafter, to reflect the most probable outcome. Share-based compensation expense recorded for the years ended December 31, 2022, 2021 and 2020 was $7.8 million, $6.7 million and $5.0 million, respectively. Of these amounts, $0.2 million, $0.4 million and $0.4 million was recorded to restructuring and severance costs, respectively, and the remaining amounts were recorded to selling, general and administrative expenses on the Company's Consolidated Statements of Operations. 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan On April 17, 2013, the shareholders of the Company approved the 2013 Management Incentive Plan (the "2013 Plan"), which replaced the 2003 Stock Incentive Plan. The 2013 Plan was 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." The 2013 Plan provided the Company with the ability to use equity-based awards of up to 2,250,000 authorized shares. On April 18, 2018, the shareholders of the Company approved the amendment and restatement of the 2013 Plan, which increased the number of authorized shares by 2,250,000 shares. As of December 31, 2022, there were 899,864 shares available for grant under the plan. LTIP awards provide certain senior executives an opportunity to receive award payments in either stock or cash as determined by the Compensation Committee of the Board of Directors in accordance with the Plan, at the end of each performance cycle. Performance metrics for LTIP Awards are based on the following: (a) average return on total capital and (b) total return to shareholders, both compared to the Russell 2000 indices for the same performance period. No awards will be payable if the Company’s performance is below the 25th percentile. The maximum award is payable if performance reaches the 75 th percentile of the designated indices. Awards are paid out at 100% at the 50 th percentile. Awards for performance between the 25 th and 75 th percentiles are determined by straight-line interpolation between 0% and 200%. Generally, LTIP awards are paid in cash. Stock options were granted with an exercise price equal to the average market price of our stock at the date of grant. Stock options and Stock Appreciation Rights ("SARs") granted under the plan generally expire ten years from the date of grant and vest 20% each year over a 5-year period on each of the first five anniversaries of the date of grant. Stock options granted in 2022 vest 33.3% each year over a 3-year period on each of the first three anniversaries of the date of grant. RSAs granted prior to 2021 were generally granted with restrictions that lapse at the rate of 20% per year over a 5-year period on each of the first five anniversaries of the date of grant. As discussed above, the RSAs granted beginning in 2021 are generally granted with restrictions that lapse at the rate of 33.3% over a 3-year period on each of the first three anniversaries of the grant. Generally, these awards are subject to forfeiture if a recipient separates from service with the Company. Stock option activity is as follows: Options Weighted average- Options outstanding at December 31, 2021 746,240 $ 55.14 Granted 39,121 31.60 Exercised (11,842) 41.90 Forfeited or expired (62,737) 54.47 Options outstanding at December 31, 2022 710,782 $ 54.12 The following table presents information regarding options outstanding as of December 31, 2022: Weighted-average remaining contractual term - options outstanding (years) 4.0 Aggregate intrinsic value - options outstanding (in thousands) $ — Weighted-average exercise price - options outstanding $ 54.12 Options exercisable 555,216 Weighted-average remaining contractual term - options exercisable (years) 3.4 Aggregate intrinsic value - options exercisable (in thousands) $ — Weighted-average exercise price - options exercisable $ 53.91 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan - continued The intrinsic value represents the amount by which the market price of the stock on the measurement date exceeds the exercise price of the option. The intrinsic value of options exercised in 2022 was not material. The intrinsic value of options exercised in 2021 and 2020 was $0.3 million and $2.4 million, respectively. The Company currently has an open stock repurchase plan, which would enable the Company to repurchase shares as needed. Since 2008 the Company has generally issued shares related to option exercises, restricted stock and PSUs from its authorized but unissued common stock. 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: 2022 2021 2020 Expected option term (years) 6.5 4.9 4.9 Expected volatility 35.5 % 35.7 % 20.2 % Risk-free interest rate 2.9 % 0.5 % 1.4 % Expected dividend yield 2.0 % 1.6 % 1.3 % Per share fair value of options granted $ 10.22 $ 14.89 $ 10.74 The expected term of options granted represents the period of time option grants are expected to be outstanding based upon historical exercise patterns. Forfeitures of options are estimated based upon historical data and are adjusted based upon actual occurrences. The cumulative effect of stock award forfeitures was immaterial. The volatility assumption is based on the historical daily price data of the Company’s stock over a period equivalent to the weighted-average expected term of the options. Management evaluated whether there were factors during that period that were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. The Company relies only on historical volatility since future volatility is expected to be consistent with historical volatility. The risk-free interest rate assumption is based upon the interpolation of various U.S. Treasury rates determined at the date of option grant. Expected dividends are based upon a historical analysis of our dividend yield over the past year. Restricted Stock Award and Restricted Stock Unit activity is as follows: Restricted Stock Weighted- Restricted Stock outstanding at December 31, 2021 135,351 $ 53.53 Granted 119,003 40.29 Vested (80,539) 49.88 Forfeited or expired (14,294) 50.46 Restricted Stock outstanding at December 31, 2022 159,521 $ 45.78 The grant date fair value for restricted stock is the average market price of the unrestricted shares on the date of grant. The total fair value of restricted stock awards vested during 2022, 2021 and 2020 was $3.4 million, $2.7 million and $3.1 million, respectively. Performance stock unit activity was as follows: Performance Stock Weighted- Performance Stock outstanding at December 31, 2021 70,163 $ 70.17 Granted 117,885 54.87 Vested — — Forfeited or expired (15,904) 60.93 Performance Stock outstanding at December 31, 2022 172,144 $ 60.44 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan - continued The fair value of the PSUs based on TSR was estimated on the date of grant using a Monte-Carlo simulation model. The following table indicates the weighted-average assumptions used in estimating fair value: 2022 2021 Expected term (years) 2.9 2.9 Expected volatility 39.4 % 41.3 % Risk-free interest rate 1.7 % 0.2 % Expected dividend yield 1.9 % 1.4 % Per share fair value of performance stock granted $ 68.10 $ 84.49 The Company records a tax benefit and associated deferred tax asset for compensation expense recognized on non-qualified stock options and restricted stock for which the Company is allowed a tax deduction. For 2022, 2021 and 2020, respectively, the Company recorded a tax benefit of $1.1 million, $1.4 million and $1.1 million for these two types of compensation expense. As of December 31, 2022, future compensation costs related to non-vested stock options, restricted stock grants and performance share units is $9.6 million. The Company anticipates that this cost will be recognized over a weighted-average period of 1.7 years. Employees Stock Purchase Plan The Kaman Corporation Employees Stock Purchase Plan (“ESPP”) allows employees to purchase common stock of the Company, through payroll deductions, at 85% of the market value of shares at the time of purchase. The plan provides for the grant of rights to employees to purchase a maximum of 2,000,000 shares of common stock. During 2022, 64,143 shares were issued to employees at prices ranging from $20.37 to $43.48. During 2021, 51,225 shares were issued to employees at prices ranging from $35.67 to $58.35. During 2020, 47,524 shares were issued to employees at prices ranging from $38.47 to $65.92. At December 31, 2022, there were 388,220 shares available for purchase under the plan. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result of this review, the Company announced in January 2023 that it determined that it will discontinue the production of the K-MAX® medium-to-heavy lift helicopters and K-MAX TITAN unmanned aerial system in 2023. The Company will continue to support the existing K-MAX® fleet in operation, including providing operators with repair, spare parts and fleet services, as well as training. The Company recognized a $44.5 million impairment of inventory associated with the K-MAX program and a $9.1 million impairment of contract costs associated with the K-MAX TITAN unmanned aerial system in its consolidated statement of operations for the year ended December 31, 2022. The amount written off was comprised of a lower of cost or net realizable value write down on three unsold aircraft and unusable inventory. Unusable inventory includes long lead parts made specifically for the production of the K-MAX® for which there are no alternative uses and spare parts and blades that were in excess of the amounts needed to support the existing fleet. The Company has evaluated subsequent events through the issuance date of these financial statements. Other than the matter noted above, no material subsequent events were identified that require disclosure. |
Schedule II (Notes)
Schedule II (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | KAMAN CORPORATION AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020 (Dollars in Thousands) Additions DESCRIPTION Balance Charged to Others (A) Deductions (B) Balance End of 2022 Allowance for doubtful accounts $ 1,547 $ 1,301 $ 67 $ 849 $ 2,066 2021 Allowance for doubtful accounts $ 2,008 $ 575 $ — $ 1,036 $ 1,547 2020 Allowance for doubtful accounts $ 1,246 $ 1,391 $ 82 $ 711 $ 2,008 (A) Additions to allowance for doubtful accounts attributable to acquisitions. (B) Recoveries and write-off of bad debts. Additions (Reductions) DESCRIPTION Balance Current Year Others Balance End 2022 Valuation allowance on deferred tax assets $ 6,022 $ 1,263 $ (2,260) $ 5,025 2021 Valuation allowance on deferred tax assets $ 10,216 $ 910 $ (5,104) $ 6,022 2020 Valuation allowance on deferred tax assets $ 8,142 $ 1,166 $ 908 $ 10,216 (a)(3) EXHIBITS. Page Number in Form 10-K An index to the exhibits filed or incorporated by reference immediately precedes such exhibits. 132 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. During the fourth quarter of 2020, the Company committed to a plan and received approval from its Board of Directors to sell its United Kingdom ("UK") Composites division. As a result of the approved plan, the UK Composites division met the criteria set forth in ASC 205-20, Presentation of Financial Statements - Discontinued Operations ("ASC 205-20") for held for sale. At December 31, 2020, the assets of the UK Composites business were considered impaired as the estimated fair value of the disposal group was lower than the estimated carrying value of the UK Composites business. As a result, $24.3 million in assets were written off and the remaining loss related to the anticipated sale of the disposal group of $12.0 million was accrued for in liabilities held for sale, current portion on the Company's Consolidated Balance Sheets, resulting in a total loss of $36.3 million recorded to impairment on assets held for sale on the Company's Consolidated Statement of Operations in the year ended December 31, 2020. The related liabilities of the UK division to be sold were reclassified to liabilities held for sale, respectively, as of December 31, 2020 on the Company's Consolidated Balance Sheets. The Company sold its UK Composites division in a transaction that closed on February 2, 2021. An additional loss of $0.2 million was recorded to (gain) loss on sale of business in the year ended December 31, 2021. See Note 2, Disposals , to the Consolidated Financial Statements for further information. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment, goodwill and other intangible assets; valuation allowances for receivables, inventories and income taxes; valuation of share-based compensation; assets and obligations related to employee benefits; and accounting for long-term contracts including claims. Actual results could differ from those estimates. |
Foreign Currency Translations | Foreign Currency Translation The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated at end of period rates. The gains and losses associated with these translation adjustments are included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable and notes payable, approximate fair value due to the short-term maturity of these instruments. At December 31, 2022 and 2021, no individual customer accounted for more than 10% of consolidated accounts receivable. In the year ended December 31, 2022, one individual customer, The Boeing Company, accounted for more than 10% of consolidated net sales, which were primarily made by the Engineered Products and Structures segments. In the year December 31, 2021, two individual customers, the U.S. Government ("USG") and a joint programmable fuze ("JPF") direct commercial sales ("DCS") customer, accounted for more than 10% of consolidated net sales. In 2021, sales to the USG were primarily made by the Engineered Products and Precision Products segment, while sales to a JPF DCS customer were made by the Precision Products segment. Foreign sales were approximately 37.2%, 41.6% and 50% of the Company’s net sales in 2022, 2021 and 2020, respectively, and are concentrated in Germany, the Middle East, United Kingdom, Canada, Switzerland, France, China and Japan. |
Additional Cash Flow Information | Additional Cash Flow Information Non-cash operating activities in 2022 included a barter transaction with one of our operators for K-MAX® aircraft blades with a value of $0.8 million. Non-cash investing activities in 2022 include an accrual of $1.7 million for purchases of property and equipment. Non-cash financing activities in 2022 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $36.2 million, net of tax of $10.9 million. Additionally, non-cash financing activities in 2022 include $5.6 million of dividends declared but not yet paid. Non-cash investing activities in 2021 include an accrual of $2.0 million for purchases of property and equipment. Non-cash financing activities in 2021 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $9.9 million, net of tax of $2.9 million. Additionally, non-cash financing activities in 2021 include $5.6 million of dividends declared but not yet paid. Non-cash financing activities in 2020 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $4.4 million, net of tax of $1.3 million. Additionally, non-cash financing activities in 2020 include $5.5 million of dividends declared but not yet paid. The Company describes its pension obligations in more detail in Note 17, Pension Plans . |
Revenue Recognition | Revenue Recognition Under Accounting Standard Codification ("ASC") 606, the amount of revenue recognized for any goods or services reflects the consideration that the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as a performance obligation is satisfied. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued A contract is accounted for when there has been approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance obligations under a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. In certain instances, the Company has concluded distinct goods or services should be accounted for as a single performance obligation when they are a series of distinct goods or services that have the same pattern of transfer to the customer. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer (the goods or services are distinct) and if the promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract (the goods or services are distinct in the context of the contract). If these criteria are not met, the promised services are accounted for as a single performance obligation. The transaction price is determined based on the consideration that the Company will be entitled to in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price, generally utilizing the most likely amount method. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. Standalone selling price is determined by the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Performance obligations are satisfied either over time or at a point in time as discussed in further detail below. In addition, the Company's contracts with customers generally do not include significant financing components or non-cash consideration. In certain instances, the Company has accounted for contracts using the portfolio approach, a practical expedient permissible under the standard. The determination of when the use of the portfolio approach is appropriate requires judgment from management based on consideration of all the facts and circumstances. The Company uses the portfolio approach when the effect of accounting for a group of contracts or a group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. The Company primarily uses the portfolio approach for its commercial and defense bearings and structures businesses. The Company's primary criteria considered when using the portfolio approach is the commonality of economic factors, which generally follow the product type based on consistent production costs and standard pricing for the products. To determine the appropriate revenue recognition model for long-term contracts, the Company evaluates whether a contract exists, considering whether multiple contracts should be combined as one single contract and then whether the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, as these decisions could change the amount of revenue and profit recorded in a given period. For certain programs, the Company may promise to provide distinct goods or services within a contract, in which case these are separated into more than one performance obligation. For certain programs, the Company recognizes revenue over time because of continuous transfer of control to the customer. For USG contracts, this continuous transfer of control to the customer is supported by clauses in the contract that provide lien rights to the customer over the work in progress, thereby control transfers as costs are incurred. For non-USG contracts, the customer typically controls the work in progress because the Company is producing products that do not have an alternative use to the Company and where contractual termination clauses provide the Company rights to payment for work performed to date plus a reasonable profit. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of assets to the customer which occurs as cost is incurred under the contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Total estimated contract costs generally include labor, materials and subcontractors’ costs, other direct costs and related overhead costs. These estimates also include the estimated cost of satisfying offset obligations, as required under certain contracts. The complexity of certain programs as well as technical risks and uncertainty as to the future availability of materials and labor resources could affect the Company’s ability to accurately estimate future contract costs. For contracts that recognize revenue over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g. the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized reductions in revenue of $3.5 million, $2.6 million and $7.0 million in the years ended December 31, 2022, 2021 and 2020, respectively, due to changes in profit estimates. These decreases were primarily related to cost growth on certain legacy fuzing contracts and certain structures contracts, partially offset by favorable cost performance on the JPF contract with the USG. Due to the nature of the work required to be performed on many of the Company's performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. From time-to-time the Company enters into long-term contracts with the USG and other customers that contain award fees, incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information (historical, current and forecasted) that is reasonably available. The Company does not include financing components as variable consideration if less than one year. At December 31, 2022, the Company did not have any significant financing components. Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or makes changes to the existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation that is a series of substantially the same distinct goods or services. If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modification is treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts. The Company applied the practical expedient for any contracts that were modified prior to January 1, 2018; therefore, the contracts were not restated retrospectively for those modifications. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued For other contracts, excluding the long-term contracts discussed above, revenue is primarily recognized at the point in time when the title transfers to the customer, as this is when the performance obligation is controlled by the customer. Additionally, a small percentage of revenue related to certain contracts for repairs and overhauls is accounted for over time under ASC 606. Under these contracts, revenue is generally recognized as work is performed in proportion to the actual costs incurred as compared to total estimated contract costs. |
Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses Cost of sales includes costs of products and services sold (i.e., purchased product, raw material, direct labor, engineering labor, outbound freight charges, depreciation and amortization, indirect costs and overhead charges). Selling expenses primarily consist of advertising, promotion, bid and proposal, employee payroll and corresponding benefits and commissions paid to sales and marketing personnel. General and administrative expenses primarily consist of employee payroll including executive, administrative and financial personnel and corresponding benefits, incentive compensation, consulting expenses, warehousing costs, and depreciation. Legal costs are expensed as incurred and are generally included in general and administrative expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments. These investments are liquid in nature and have original maturities of three months or less. The Company's cash and cash equivalents at December 31, 2022 and 2021 included $0.1 million and $65.5 million of Level 1 (quoted prices in active markets for identical assets or liabilities) money market funds. Bank overdraft positions, which occur when total outstanding issued checks exceed available cash balances at a single financial institution at the end of a reporting period, are reclassified to other current liabilities within the consolidated balance sheets. At December 31, 2022 and 2021, the Company had bank overdrafts of $1.5 million and $1.4 million, respectively, included in other current liabilities. |
Accounts Receivable | Accounts Receivable The Company has three types of accounts receivable: (a) Trade receivables, which consist of amounts billed and currently due from customers; (b) USG contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed; and (c) Commercial and other government contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed. The Company's receivables, net, consist of amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. |
Contract with Customer, Asset | Contract Assets The Company's contract assets include unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is applied and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts do not exceed their net realizable value. Contract assets are generally classified as current as such amounts are billable and collectible within twelve months. |
Capitalized Contract Cost | Contract Costs Contract costs consist of costs to obtain and fulfill a contract. Costs to fulfill a contract primarily consist of nonrecurring engineering costs incurred at the start of a new program for which such costs are expected to be recovered under existing and future contracts. Such costs are amortized over the estimated revenue amount of the contract. Costs to obtain a contract consist of commissions and agent fees paid in connection with the award of a contract. If these costs are determined to have an amortization period of less than one year, the Company applies the practical expedient and the related costs are expensed as incurred. If the amortization period is determined to be greater than a year and the incremental costs to obtaining the contract qualify as an asset, then the contract costs are recorded and amortized over the estimated contract revenue. In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improve working capital management and focus on sustainable and consistent revenue and profit generating activities. Based on this review, the Company determined that it will discontinue the production of the K-MAX TITAN |
Inventories | Inventories The Company has the following types of inventory: (a) raw materials, (b) contracts in process and other work in process, and (c) finished goods. Raw material includes certain general stock materials but primarily relates to purchases that were made in anticipation of specific programs for which production has not been started as of the balance sheet date. Raw materials are stated at the lower of the cost of the inventory or its fair market value. Contracts in process and other work in process and finished goods are valued at production cost represented by raw material, labor and overhead. Contracts in process and other work in process and finished goods are not reported at amounts in excess of net realizable values. In conjunction with the review of the Company's businesses and programs discussed above, the Company also determined it would discontinue the production of the K-MAX® medium-to-heavy lift helicopters in 2023. The Company will continue to support the existing K-MAX® fleet in operation, including providing operators with repair, spare parts and fleet services, as well as training. As a result of this decision, management wrote off $44.5 million of inventory associated with this program in the year ended December 31, 2022. This amount was included in program inventory impairment on the Company's Consolidated Statements of Operations. The amount written off was comprised of a lower of cost or net realizable value write down on three unsold aircraft and unusable inventory. Unusable inventory includes long lead parts made specifically for the production of the K-MAX® for which there are no alternative uses and spare parts and blades that were in excess of the amounts needed to support the existing fleet. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives for buildings generally range from 15 to 40 years and for leasehold improvements range from 1 to 20 years, whereas machinery, office furniture and equipment generally have useful lives ranging from 3 to 15 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated and any gain or loss is credited to or charged against income. Long-lived assets, such as property, plant and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Maintenance and repair items are charged against income as incurred, whereas renewals and betterments are capitalized and depreciated. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leasing The Company accounts for leases in accordance with ASC 842, Leases. Under ASC 842, the Company determines if a contract contains a lease at the inception date of the contract. To determine if the contract contains a lease, the Company evaluates if there is an identified asset in the contract and if the Company has control over the use of the identified asset. The Company has elected not to apply the recognition requirements of ASC 842 to short-term leases (leases that, at the commencement date, have a lease term of twelve months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise) as permissible under the standard. For short-term leases, the Company recognizes lease payments on a straight-line basis and variable payments in the period in which the obligation for those payments is incurred. The Company must classify each lease as a finance lease or an operating lease. The Company's finance leases are included in machinery, office furniture and equipment. Amortization of these assets is included in depreciation and amortization expense. The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings. At the commencement date, the right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Lease liabilities are recognized at commencement based on the present value of the unpaid lease payments over the lease term. The initial measurement of the right-of-use asset is equal to the total of the initial measurement of the lease liability, incremental costs to obtain the lease and prepaid lease payments, less any lease incentives received. Some of the Company's leases have fixed amount rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The Company elected the practical expedient allowing the Company to combine lease and non-lease components by class as a single lease component for its real estate leases. Nonlease components for the Company's vehicles and other equipment leases are not material. The Company uses the discount rate implicit in a lease contract, if available. As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Certain leases are renewable for varying periods and certain leases include options to terminate the leases. For renewal options, the Company performs an assessment at commencement if it is reasonably likely to exercise the option. The assessment is based on the Company's intentions, past practices, estimates and factors that create an economic incentive for the Company. Generally, the Company is not reasonably certain to exercise the renewal option in a lease contract as it performs an assessment for most real estate leases within six months prior to termination comparing the renewal rents under the option with the fair market returns for equivalent property under similar terms and conditions. Although the Company does not historically change locations often, it is not reasonably certain the Company will exercise the renewal option; therefore, the periods covered by the renewal option are not typically included in the lease term at commencement. While some of the Company's leases include options allowing early termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial or business reason to do so; therefore, the Company does not typically consider the termination option in its lease term at commencement. |
Goodwill and Other Intangible Assets | Goodwill represents the excess of the aggregate purchase price over the fair value of the net identifiable assets acquired in a purchase business combination and is reviewed for impairment at least annually. ASC 350 - Intangibles - Goodwill and Other ("ASC 350") permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the quantitative goodwill impairment test required under ASC 350. The qualitative assessment management performs takes into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units or asset groups, the assessment of assumptions used in the previous fair value calculation and changes in transaction multiples. In the quantitative goodwill impairment test, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value, assuming the loss recognized does not exceed the total amount of goodwill for the reporting unit. Fair value of the reporting unit is determined using an income methodology based on management’s estimates of forecasted cash flows for each reporting unit, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. In addition, management uses a market-based valuation method involving analysis of market multiples of revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for (i) a group of comparable public companies and (ii) recent transactions, if any, involving comparable companies. Goodwill and intangible assets with indefinite lives are evaluated annually for impairment in the fourth quarter, based on annual forecast information. Intangible assets with finite lives are amortized over their estimated period of benefit. Goodwill and other intangible assets are reviewed for possible impairment whenever changes in conditions indicate that the fair value of a reporting unit is more likely than not below its carrying value. In accordance with ASC 350, the Company evaluates goodwill for possible impairment on at least an annual basis. Additionally, the Company is required to evaluate goodwill for possible impairment testing if an event occurs or circumstances change that indicate that the fair value of the reporting entity may be below its carrying amount. In December 2022, the Company announced it will consolidate the production of JPF fuzes to its Middletown facility resulting in the closure of the Orlando facility in 2024 due to reduced demand as the JPF program continues to move through its life cycle. The determination of estimated fair value requires management to make assumptions about estimated cash flows, including revenue, long-term forecasts and discount rate. The Company considered the reduction in demand, as well as the updated forecasts for the reporting unit, which indicated the forecasted cash flows for the KPP-Orlando reporting unit were lower than amounts previously forecasted. Management performed a quantitative analysis on the KPP-Orlando reporting unit using an income methodology based on management's estimates of forecasted cash flows, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. The quantitative analysis resulted in a conclusion that the fair value of the KPP-Orlando reporting unit was $25.3 million below its carrying value; therefore, goodwill was impaired. In the year ended December 31, 2022, the Company recorded a goodwill impairment charge of $25.3 million for the KPP-Orlando reporting unit. This impairment charge was included in goodwill and other intangibles impairment on the Company's Statement of Operations and other unallocated expenses, net in Note 4, Segment and Geographic Information . An additional $16.1 million of goodwill remains at this reporting unit. During 2020, the Company identified a triggering event for possible impairment for the Aerosystems reporting unit based on a decline in earnings compared to forecasts used in prior periods and updated forecasts, which indicated the forecasted cash flows for this reporting unit were lower than amounts previously forecasted. Management performed a quantitative analysis on the Aerosystems reporting unit using an income methodology based on estimates of forecasted cash flows, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. In addition, management used a market-based valuation method involving analysis of market multiples of revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for (i) a group of comparable companies and (ii) recent transactions, if any, involving comparable companies. The quantitative analysis resulted in a conclusion that the fair value of the Aerosystems reporting unit was $56.1 million below its carrying value. In the year ended December 31, 2020, the Company recorded a goodwill impairment charge of $50.3 million for the Aerosystems reporting unit, which represented the entire goodwill balance for the reporting unit. |
Debt, Policy | Debt The Company relies on bank financing as an important source of liquidity for its business activities. Outstanding debt is classified as current or long-term based on the maturity of the Company's financing arrangements. Current and long-term debt balances are reported net of debt issuance costs. See Note 14, Debt , for further information on the Company's financing arrangements. |
Contract with Customer, Liability | Contract Liabilities The Company's contract liabilities consist of advance payments and billings in excess of revenue recognized and deferred revenue. Advance payments and billings in excess of revenue recognized are classified as current or noncurrent based on the timing of when recognition of revenue is expected. |
Unfulfilled Performance Obligations | Unfulfilled Performance Obligations Unfulfilled performance obligations ("backlog") represents the transaction price of firm orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts. As of December 31, 2022, the aggregate amount of the transaction price allocated to backlog was $720.9 million. The Company expects to recognize revenue on approximately $502.6 million of this amount over the next 12 months, with the remaining amount to be recognized thereafter. At December 31, 2021, the aggregate amount of the transaction price allocated to backlog was $700.9 million. |
Self-Insured Retentions | Self-Insured Retentions To limit exposure to losses related to group health, workers’ compensation, auto and product general liability claims, the Company obtains third-party insurance coverage. The Company has varying levels of deductibles for these claims. The total liability/deductible for group health is limited to $0.3 million per claim, workers’ compensation is limited to $0.4 million per claim and for product/general liability the limit is $0.3 million per claim. The Company pays a fixed premium for its auto liability policy; therefore, there is no deductible on claims. The cost of such benefits is recognized as expense based on claims filed in each reporting period and an estimate of claims incurred but not reported (“IBNR”) during such period. The estimates for the IBNR are based upon historical trends and information provided to us by the claims administrators, and are periodically revised to reflect changes in loss trends. These amounts are included in other current liabilities on the Consolidated Balance Sheets. Liabilities associated with these claims are estimated in part by considering historical claims experience, severity factors and other actuarial assumptions. Projections of future losses are inherently uncertain because of the random nature of insurance claim occurrences and the potential for differences between actual developments and actuarial assumptions. Such self-insurance accruals will likely include claims for which the ultimate losses will be settled over a period of years. |
Research and Development | Research and DevelopmentResearch and development expenses include laboratory research; concept development; design, testing and modification of possible products or processes; design of tools for new technology and engineering activity required to advance development. Costs not specifically covered by contracts are recognized as expense as incurred and included in research and development costs on the Company's Consolidated Statements of Operations. Customer funded research expenditures (which are included in cost of sales) were $0.4 million in 2022, $0.4 million in 2021 and $0.1 million in 2020. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates was recognized in income in the period that includes the enactment date. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes - continued The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities based on the technical merits of the position. Unrecognized tax benefits represent the difference between the position taken in the tax return and the benefit reflected in the financial statements. |
Share-Based Payment Arrangements | Share-Based Payment Arrangements The Company records compensation expense for share-based awards based upon an assessment of the grant date fair value of the awards. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. A number of assumptions are used to determine the fair value of options granted. These include expected term, dividend yield, volatility of the options and the risk free interest rate. The Company's current long-term incentive program focuses on equity, consisting of a combination of service-based restricted stock awards ("RSAs") and performance stock units ("PSUs") which are intended to be settled in shares. The number of PSUs that will vest will be determined based on total shareholder return ("TSR") and return on total invested capital ("ROIC") over a three-year performance period, each of which will remain equally weighted in determining payouts. The fair value of the PSUs based on TSR is estimated on the date of grant using a Monte-Carlo simulation model. A number of assumptions are used to determine the fair value of the PSUs granted, including expected term, volatility, the risk-free interest rate and dividend yield. See Note 22, Share-Based Arrangements, for further information. |
Environmental Costs, Policy | Environmental Remediation The Company is subject to environmental regulation by federal, state and local authorities in the United States and regulatory authorities with jurisdiction over its foreign operations. When the Company becomes aware of environmental risk, it performs a site study to ascertain the potential magnitude of contamination and the estimated cost of remediation. Environmental costs are accrued when it is probable that a liability has been incurred and the amount can be reasonably estimated. The most likely cost to be incurred is accrued based on an evaluation of currently available facts with respect to each individual site. Conditions of the site must be monitored throughout the remediation process as numerous factors could affect the estimated liability. The Company evaluates the identified environmental issues to ensure the time to complete the remediation and the total cost of remediation are consistent with the initial estimate. If there is any change in the cost and/or timing of remediation, the accrual is adjusted accordingly. See Note 13, Environmental Costs , and Note 19, Commitments and Contingencies , for further information. |
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 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 offset fair value amounts of derivative instruments. The Company does not use derivative instruments for speculative purposes. See Note 9, Derivative Financial Instruments , for further information. |
Pension Accounting | Pension Accounting The Company accounts for its defined benefit pension plan by recognizing the overfunded or underfunded status of the plan, calculated as the difference between the plan assets and the projected benefit obligation, as an asset or liability on the balance sheet, with changes in the funded status recognized in comprehensive income in the year in which they occur. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Pension Accounting - continued Expenses and liabilities associated with the plan are determined based upon actuarial valuations. Integral to the actuarial valuations are a variety of assumptions including expected return on plan assets and discount rate. The Company regularly reviews the assumptions, which are updated at the measurement date, December 31 st . The impact of differences between actual results and the assumptions are accumulated and generally amortized over future periods, which will affect expense recognized in future periods. The service cost component of net benefit cost is recorded in cost of sales and selling, general and administrative expenses separately from the other components of net benefit cost, which are recorded to non-service pension and postretirement benefit income. See Note 17, Pension Plans , for further information. |
Recent Accounting Standards | Recent Accounting Standards Recent Accounting Standards Adopted In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". The amendments in this standard update address diversity and inconsistency related to the recognition and measurement of contract assets and contract liabilities acquired in a business combination and require that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. This standard update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the standard is permitted, including adoption in an interim period. The Company early adopted this standard in the third quarter of 2022, including the practical expedient that allowed the Company to utilize the terms that existed as of the latest contract modification date to determine the transaction price and performance obligations. The adoption of this standard update did not have a material impact on the Company's consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, "Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force)". The objective of this standard update is to clarify and reduce diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity classified after modification or exchange. The guidance clarifies whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as either an adjustment to equity and, if so, the related earnings per share ("EPS") effects, if any, or as an expense and, if so, the manner and pattern of recognition. The standard update is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption was permitted, including adoption in an interim period. The Company adopted this standard on January 1, 2022. The adoption of this standard update did not have a material impact on the Company's consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity". The objective of this standard update is to simplify the accounting for certain financial instruments with characteristics of liabilities and equity. The update removes certain separation models between a debt component and equity or derivative component for certain convertible instruments. Entities that previously required separate accounting for conversion features will report less interest expense as those conversion features were recorded as debt discounts which were amortized over the term of the debt. In addition, this ASU adds new disclosure requirements for convertible instruments to improve the decision usefulness and relevance of the information being provided to users of financial statements, clarifies the guidance for determining whether a contract qualifies for a scope exception from derivative accounting, and requires the application of the if-converted method when calculating diluted EPS guidance to improve consistency. The standard update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021. Early adoption of the standard was permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. An entity should adopt the guidance as of the beginning of its annual fiscal year and can do so using a modified retrospective method or fully retrospective method of transition. On January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective basis which resulted in a cumulative effect adjustment to the opening balance sheet. The prior period consolidated financial statements have not been retroactively adjusted and continue to be reported under the accounting standard in effect for the period. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Accounting Standards Adopted - continued The cumulative effect of the adjustments recorded to the opening balance sheet on January 1, 2022 for the adoption of ASU 2020-06 was as follows: in thousands Balance at December 31, 2021 Adjustments due to ASU 2020-06 Balance at January 1, 2022 Assets Deferred income taxes (1) $ 15,717 $ 1,770 $ 17,487 Liabilities Long-term debt, excluding current portion, net of debt issuance costs (2) $ 189,421 $ 7,624 $ 197,045 Equity Additional paid-in capital (3) $ 248,153 $ (12,489) $ 235,664 Retained earnings (4) $ 750,445 $ 6,635 $ 757,080 (1) Reflects the removal of the deferred tax liability associated with the portion of the convertible notes recorded to equity. (2) Reflects the adjustment to the total carrying value of the convertible senior notes to the full principal amount of the convertible notes outstanding net of issuance costs. (3) Reflects the removal of the equity component separately recorded for the conversion features associated with the convertible notes. (4) Reflects the cumulative-effect adjustment recorded to retained earnings as of January 1, 2022 as a result of adopting ASU 2020-06 using the modified retrospective method. Beginning in 2022, the Company began calculating diluted EPS using the if-converted method for its convertible debt instruments, which is not expected to have a material impact on the consolidated results. Historically, the Company used the treasury stock method to calculate diluted EPS for its convertible debt instruments. In the year ended December 31, 2022, there was no impact as diluted loss per share calculated to $1.65, using both the if-converted method and treasury stock method. Refer to Note 14, Debt, for further information on the Company's convertible notes. Recent Accounting Standards Yet to be Adopted In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815): Fair Value Hedging-Portfolio Layer Method". The amendments in this standard update expand the current last-of-layer method of hedge accounting that permits only one hedged layer to allow multiple hedged layers of a single closed portfolio. This standard update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted on any date on or after the issuance of this update for any entity that has adopted the amendments in ASU 2017-12 for the corresponding period. If an entity adopts the amendments in an interim period, the effect of adopting the amendments related to basis adjustments should be reflected as of the beginning of the fiscal year of adoption. The adoption of this standard update is not expected to have a material impact on the Company's consolidated financial statements; however, the impact will be dependent on future hedging activity. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recent Accounting Standards - continued Recent Accounting Standards Yet to be Adopted - continued In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting". The objective of the standard is to address operational challenges likely to arise in accounting for contract modifications and hedge accounting due to reference rate reform. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The standard update is effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by topic or industry subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020. Once elected for a topic or industry subtopic, the amendments in this standard update must be applied prospectively for all eligible contract modifications for that topic or industry subtopic. An entity may elect to apply the amendments for eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020 and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. If an entity elects to apply any of the amendments for an eligible hedging relationship existing as of the beginning of the interim period that includes March 12, 2020, any adjustments as a result of those elections must be reflected as of the beginning of that interim period. If an entity elects to apply any of the amendments for a new hedging relationship entered into between the beginning of the interim period that includes March 12, 2020 and March 12, 2020, any adjustments as a result of those elections must be reflected as of the beginning of the hedging relationship. In December 2021, the Company amended its credit agreement to move its LIBOR benchmark for non-USD borrowings to other non-USD benchmark rates. Future USD borrowings under this current Credit Agreement will continue to be based on LIBOR. In November 2022, the Company further amended its credit agreement to replace the LIBOR-based benchmark rate for U.S. dollar denominated loans and other extensions of credit under the Credit Agreement with a Secured Overnight Financing Rate ("SOFR") for specified interest periods plus a credit spread adjustment of 0.10% for all interest periods. The Company does not expect the adoption of the amendments associated with hedging relationships to have a material impact on the Company's consolidated financial statements. Subsequent to the issuance of ASU 2020-04, the FASB issued the following updates: ASU 2021-01, "Reference Rate Reform (Topic 848) - Scope" and ASU 2022-06, "Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848". The amendments in these updates affect the guidance within ASU 2020-04 and are being assessed with ASU 2020-04. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of the adjustments recorded to the opening balance sheet on January 1, 2022 for the adoption of ASU 2020-06 was as follows: in thousands Balance at December 31, 2021 Adjustments due to ASU 2020-06 Balance at January 1, 2022 Assets Deferred income taxes (1) $ 15,717 $ 1,770 $ 17,487 Liabilities Long-term debt, excluding current portion, net of debt issuance costs (2) $ 189,421 $ 7,624 $ 197,045 Equity Additional paid-in capital (3) $ 248,153 $ (12,489) $ 235,664 Retained earnings (4) $ 750,445 $ 6,635 $ 757,080 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 24 Months Ended |
Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Details of Impairment of Long-Lived Assets Held and Used by Asset | 2. DISPOSALS Mexico Business In the third quarter of 2022, the Company sold certain assets and liabilities of its Mexico operations in the Structures segment. The transaction did not meet the criteria set forth in ASC 205-20 - Presentation of Financial Statements - Discontinued Operations ("ASC 205-20"), for discontinued operations as it does not reflect a significant strategic shift that would have a major effect on the Company's operations or financial results. For the year ended December 31, 2022, the Company recorded a gain on the sale of $0.5 million, which was included in (gain) loss on sale of business on the Company's Consolidated Statement of Operations. UK Composites Business In the fourth quarter of 2020, the Company received approval from its Board of Directors to sell its UK Composites division. Subsequent to the end of the year, the Company sold its UK Composites division in a transaction that closed on February 2, 2021. The sale of the UK Composites business did not meet the criteria set forth in ASC 205-20 , for discontinued operations as it did not reflect a significant strategic shift that would have a major effect on the Company's operations and financial results. As a result of the approved plan, the UK Composites division met the criteria set forth in ASC 205-20 for held for sale presentation. The related liabilities of the UK division to be sold were reclassified to liabilities held for sale, as of December 31, 2020 on the Company's Consolidated Balance Sheets. Financial results for the UK Composites division were included in the Structures segment for the years ended December 31, 2021 and 2020 within Note 4, Segment and Geographic Information . 2. DISPOSALS (CONTINUED) UK Composites Business - continued In accordance with ASC 360 - Property, Plant, and Equipment ("ASC 360"), the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Refer to Note 12, Goodwill and Other Intangible Assets, Net , for a discussion of the triggering event identified in 2022. No such triggering events were identified in 2021. At December 31, 2020, the assets of the Company's former UK Composites business were considered impaired as the estimated fair value of the business based on the anticipated sale was lower than the estimated carrying value of the UK Composites business. The following table provides information on the loss recorded on the sale of the UK Composites business. These amounts reflect the balance sheet of the UK Composites business as of February 2, 2021. In thousands Estimated fair value $ 3,600 Assets, including cash on hand 23,460 Liabilities 6,618 Net book value of business 16,842 UK cumulative foreign currency translation adjustment balance 22,835 Transaction costs 442 Loss on the sale of the UK Composites business $ 36,519 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Business Combinations [Abstract] | ||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Accounts receivable (1) $ 7,635 Contract assets 171 Inventories 11,246 Property, plant and equipment 7,686 Goodwill 169,790 Other intangible assets 250,500 Contract costs, noncurrent 41 Liabilities (5,729) Net assets acquired $ 441,340 Less cash received — Net consideration $ 441,340 | This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Cash $ 10,953 Restricted cash 1,932 Accounts receivable 9,525 Contract assets 784 Inventories 13,500 Property, plant and equipment 81,997 Operating right-of-use asset 653 Other tangible assets 2,492 Goodwill 95,089 Other intangible assets 110,300 Liabilities (9,679) Net assets acquired 317,546 Less cash received (12,885) Net consideration $ 304,661 |
Business Acquisition, Pro Forma Information | Pro Forma Information (Unaudited) The following table reflects the unaudited pro forma operating results of the Company for the years ended December 31, 2022, 2021 and 2020 which assumes the acquisition of Aircraft Wheel and Brake occurred on January 1, 2021 and the acquisition of Bal Seal occurred on January 1, 2019. The pro forma results are based on assumptions that the Company believes are reasonable under the circumstances. The pro forma results are not necessarily indicative of the operating results that would have occurred had the acquisition of Aircraft Wheel and Brake been effective January 1, 2021 or had the acquisition of Bal Seal been effective January 1, 2019, nor are they intended to be indicative of results that may occur in the future. The underlying pro forma information includes the historical financial results of the Company and the acquired business adjusted for certain items discussed below. The pro forma information does not include the effects of any synergies, cost reduction initiatives or anticipated integration costs related to the acquisitions. For the year ended December 31, 2022 2021 2020 In thousands Net sales $ 740,960 $ 778,167 $ 784,459 (Loss) earnings from continuing operations $ (41,679) $ 13,840 $ (35,681) Net (loss) earnings $ (41,679) $ 13,840 $ (34,989) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table] | Summarized financial information by business segment is as follows: For the year ended December 31, 2022 2021 2020 In thousands Net sales: Engineered Products $ 377,241 $ 317,683 $ 315,063 Precision Products 185,023 256,329 302,509 Structures 125,697 134,981 166,887 Net sales (1) $ 687,961 $ 708,993 $ 784,459 Operating income (loss): Engineered Products $ 57,833 $ 43,097 $ 33,561 Precision Products 17,705 55,366 74,033 Structures (3,000) (340) (8,858) Corporate expense (50,377) (40,519) (53,059) Other unallocated expenses, net (2) (88,504) (8,108) (129,988) Operating (loss) income $ (66,343) $ 49,496 $ (84,311) Interest expense, net 16,874 16,290 19,270 Non-service pension and post retirement benefit income, net (20,574) (26,229) (16,250) Income from transition services agreement — (931) (8,439) Other expense (income), net 315 (142) (728) (Loss) earnings from continuing operations before income taxes $ (62,958) $ 60,508 $ (78,164) (1) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $205.0 million, $230.6 million and $220.8 million in 2022, 2021 and 2020, respectively, and represent direct and indirect sales to the USG and related agencies. (2) Other unallocated expenses, net include program inventory impairment, goodwill and other intangibles impairments, impairment on assets held for sale, program contract costs impairment, costs from the TSA, cost of acquired retention plans, restructuring and severance costs, net gain (loss) on sale of business, and net loss (gain) on sale of assets. |
Research and Development | The following table presents research and development costs by segment: For the year ended December 31, 2022 2021 2020 In thousands Engineered Products $ 8,842 $ 8,399 $ 8,806 Precision Products 10,508 7,443 5,211 Structures 202 230 738 Total research and development costs $ 19,552 $ 16,072 $ 14,755 |
Reconciliation of Assets from Segment to Consolidated | For the year ended December 31, 2022 2021 2020 In thousands Identifiable assets (1): Engineered Products $ 1,052,576 $ 623,899 $ 681,097 Precision Products 192,743 250,146 315,439 Structures 135,115 125,027 135,021 Corporate (2) 110,898 199,410 174,836 Total assets $ 1,491,332 $ 1,198,482 $ 1,306,393 Capital expenditures: Engineered Products $ 14,667 $ 9,537 $ 11,496 Precision Products 4,658 3,554 2,545 Structures 1,940 2,075 2,650 Corporate 2,424 2,364 1,092 Total capital expenditures $ 23,689 $ 17,530 $ 17,783 Depreciation and amortization (3): Engineered Products $ 30,461 $ 26,306 $ 31,574 Precision Products 3,663 4,148 3,706 Structures 3,519 3,462 5,201 Corporate 3,069 2,738 3,418 Total depreciation and amortization $ 40,712 $ 36,654 $ 43,899 (1) Identifiable assets are year-end assets at their respective net carrying values segregated as to segment and corporate use. (2) For the periods presented, the corporate identifiable assets are principally comprised of cash, short-term and long-term deferred income tax assets, cash surrender value of life insurance policies and fixed assets. (3) Depreciation and amortization amounts exclude amortization of debt issuance costs. |
Long-lived Assets by Geographic Areas [Table Text Block] | Geographic distribution of long-lived assets is as follows: At December 31, 2022 2021 In thousands United States $ 865,659 $ 476,546 Germany 140,626 152,061 Czech Republic 4,827 5,354 Mexico — 1,291 Netherlands 509 593 Switzerland 708 245 Hong Kong 60 132 Total long-lived assets (1) $ 1,012,389 $ 636,222 (1) For the purpose of this disclosure the Company excluded deferred tax assets of $47.4 million and $15.7 million as of December 31, 2022 and 2021, respectively. |
Revenue from External Customers by Geographic Areas | Sales are attributed to geographic regions based on the location to which the product is shipped. Geographic distribution of sales recorded is as follows: For the year ended December 31, 2022 2021 2020 In thousands North America $ 452,392 $ 442,432 $ 412,025 Europe 141,657 113,811 148,473 Middle East 41,948 107,408 170,835 Asia 35,691 27,638 34,424 Oceania 10,208 14,160 11,156 Other 6,065 3,544 7,546 Total revenue $ 687,961 $ 708,993 $ 784,459 |
Reconciliation of Revenue from Segments to Consolidated | Summarized financial information by business segment is as follows: For the year ended December 31, 2022 2021 2020 In thousands Net sales: Engineered Products $ 377,241 $ 317,683 $ 315,063 Precision Products 185,023 256,329 302,509 Structures 125,697 134,981 166,887 Net sales (1) $ 687,961 $ 708,993 $ 784,459 Operating income (loss): Engineered Products $ 57,833 $ 43,097 $ 33,561 Precision Products 17,705 55,366 74,033 Structures (3,000) (340) (8,858) Corporate expense (50,377) (40,519) (53,059) Other unallocated expenses, net (2) (88,504) (8,108) (129,988) Operating (loss) income $ (66,343) $ 49,496 $ (84,311) Interest expense, net 16,874 16,290 19,270 Non-service pension and post retirement benefit income, net (20,574) (26,229) (16,250) Income from transition services agreement — (931) (8,439) Other expense (income), net 315 (142) (728) (Loss) earnings from continuing operations before income taxes $ (62,958) $ 60,508 $ (78,164) (1) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $205.0 million, $230.6 million and $220.8 million in 2022, 2021 and 2020, respectively, and represent direct and indirect sales to the USG and related agencies. (2) Other unallocated expenses, net include program inventory impairment, goodwill and other intangibles impairments, impairment on assets held for sale, program contract costs impairment, costs from the TSA, cost of acquired retention plans, restructuring and severance costs, net gain (loss) on sale of business, and net loss (gain) on sale of assets. |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates segment revenue by major product line: In thousands 2022 Engineered Products Precision Products Structures Total Defense $ 49,982 $ 22,367 $ 73,597 $ 145,946 Safe and Arm Devices — 125,685 — 125,685 Commercial, Business, & General Aviation 166,748 31,663 44,208 242,619 Medical 86,659 — 7,892 94,551 Industrial & Other 73,852 5,308 — 79,160 Total revenue $ 377,241 $ 185,023 $ 125,697 $ 687,961 2021 Engineered Products Precision Products Structures Total Defense $ 51,033 $ 30,062 $ 87,575 $ 168,670 Safe and Arm Devices — 191,524 — 191,524 Commercial, Business, & General Aviation 115,576 28,995 40,115 184,686 Medical 79,424 — 7,291 86,715 Industrial & Other 71,650 5,748 — 77,398 Total revenue $ 317,683 $ 256,329 $ 134,981 $ 708,993 2020 Engineered Products Precision Products Structures Total Defense $ 55,380 $ 22,523 $ 102,497 $ 180,400 Safe and Arm Devices — 248,482 — 248,482 Commercial, Business, & General Aviation 135,289 26,803 58,171 220,263 Medical 63,791 — 6,219 70,010 Industrial & Other 60,603 4,701 — 65,304 Total revenue $ 315,063 $ 302,509 $ 166,887 $ 784,459 4. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED) Segment Information - continued The following table illustrates the approximate percentage of segment revenue recognized by product types. 2022 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 41 % 4 % 18 % 63 % Aftermarket 14 % 5 % — % 19 % Safe and Arm Devices — % 18 % — % 18 % Total revenue 55 % 27 % 18 % 100 % 2021 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 35 % 5 % 19 % 59 % Aftermarket 10 % 4 % — % 14 % Safe and Arm Devices — % 27 % — % 27 % Total revenue 45 % 36 % 19 % 100 % 2020 Engineered Products Precision Products Structures Total Original Equipment Manufacturer 31 % 4 % 21 % 56 % Aftermarket 9 % 3 % — % 12 % Safe and Arm Devices — % 32 % — % 32 % Total revenue 40 % 39 % 21 % 100 % |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Costs | The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other Total In thousands Restructuring accrual balance at December 31, 2021 $ — $ — $ — Provision 6,629 — 6,629 Cash payments — — — Restructuring accrual balance at December 31, 2022 (1) $ 6,629 $ — $ 6,629 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: At December 31, 2022 2021 In thousands Trade receivables $ 31,126 $ 19,228 U.S. Government contracts: Billed 14,150 14,748 Costs and accrued profit – not billed 661 167 Commercial and other government contracts: Billed 41,520 36,787 Costs and accrued profit – not billed 2,268 4,141 Less allowance for doubtful accounts (2,066) (1,547) Accounts receivable, net $ 87,659 $ 73,524 |
Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity in the allowance for doubtful accounts in the year ended December 31, 2022: In thousands Balance at December 31, 2021 $ (1,547) Provision (1,301) Additions attributable to acquisitions (67) Amounts written off 351 Recoveries 495 Changes in foreign currency exchange rates 3 Balance at December 31, 2022 $ (2,066) |
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: At December 31, 2022 2021 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ — $ 900 Total $ — $ 900 |
Contract Assets, Contract Cos_2
Contract Assets, Contract Costs and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contract Assets, Contract Costs and Contract Liabilities [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Activity related to contract assets, contract costs and contract liabilities is as follows: December 31, 2022 December 31, 2021 $ Change % Change In thousands Contract assets (1) $ 113,182 $ 112,354 $ 828 0.7 % Contract costs, current portion $ 695 $ 850 $ (155) (18.2) % Contract costs, noncurrent portion $ 673 $ 10,249 $ (9,576) (93.4) % Contract liabilities, current portion $ 4,081 $ 2,945 $ 1,136 38.6 % Contract liabilities, noncurrent portion $ 20,515 $ 16,528 $ 3,987 24.1 % (1) The Company's contract assets were net of unliquidated progress payments, primarily from the U.S. Government, of $43.3 million and $59.3 million at December 31, 2022 and December 31, 2021, respectively. |
Contract Assets Due to Contract Changes, Negotiated Settlements and Claims for Unanticipated Costs [Table Text Block] | Contract assets includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: At December 31, 2022 2021 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ — $ 682 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments not Carried at Fair Value | The following table provides the carrying value and fair value of financial instruments that are not carried at fair value at December 31, 2022 and 2021: 2022 2021 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 562,500 $ 547,393 $ 191,876 $ 213,222 (1) These amounts are classified within Level 2. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consist of the following: At December 31, 2022 2021 In thousands Raw materials $ 25,798 $ 19,123 Contracts in process: US Government 5,835 1,985 Commercial and other government contracts 85,436 61,637 Contracts and other work in process (including certain general stock materials) 19,338 75,115 Finished goods 40,061 35,240 Inventories $ 176,468 $ 193,100 |
Property Plant and Equipment,_2
Property Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, plant and equipment | Property, plant and equipment, net is summarized as follows: At December 31, 2022 2021 In thousands Land $ 38,743 $ 36,367 Buildings 137,777 135,887 Leasehold improvements 15,778 16,151 Machinery, office furniture and equipment 260,801 249,527 Construction in process 16,596 11,778 Total 469,695 449,710 Less accumulated depreciation (268,089) (251,888) Property, plant and equipment, net $ 201,606 $ 197,822 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the change in the carrying amount of goodwill for the Company: 2022 Engineered Products Precision Products Structures Total In thousands Gross balance at beginning of period $ 199,306 $ 41,375 $ 66,559 $ 307,240 Accumulated impairment — — (66,559) (66,559) Net balance at beginning of period 199,306 41,375 — 240,681 Additions (1) 169,790 — — 169,790 Impairments — (25,306) — (25,306) Foreign currency translation (5,311) — — (5,311) Net balance at end of period $ 363,785 $ 16,069 $ — $ 379,854 Accumulated impairment at end of period $ — $ (25,306) $ (66,559) $ (91,865) (1) The additions to goodwill in the year ended December 31, 2022 were attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments , for further information on this acquisition. 2021 Engineered Products Precision Products Structures Total In thousands Gross balance at beginning of period $ 205,869 $ 41,375 $ 66,559 $ 313,803 Accumulated impairment — — (66,559) (66,559) Net balance at beginning of period 205,869 41,375 — 247,244 Additions — — — — Impairments — — — — Foreign currency translation (6,563) — — (6,563) Net balance at end of period $ 199,306 $ 41,375 $ — $ 240,681 Accumulated impairment at end of period $ — $ — $ (66,559) $ (66,559) 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Goodwill - continued |
Schedule of acquired finite-lived intangible assets by major class | Other intangible assets consisted of: At December 31, At December 31, 2022 2021 Amortization Gross Accumulated Gross Accumulated In thousands Customer lists / relationships 6-38 years $ 363,549 $ (41,695) $ 127,206 $ (35,096) Developed technologies 7-20 years 45,028 (17,508) 45,170 (13,591) Trademarks / trade names 15-40 years 16,681 (3,153) 16,982 (2,659) Non-compete agreements and other 1-15 years 17,336 (7,974) 4,629 (4,617) Patents 17 years 551 (484) 523 (473) Total $ 443,145 $ (70,814) $ 194,510 $ (56,436) The increase in customer lists / relationships and non-compete agreements and other was primarily attributable to the acquisition of Aircraft Wheel and Brake. Refer to Note 3, Business Combinations and Investments , for further information on this acquisition. |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2022 is as follows: In thousands 2023 $ 26,031 2024 $ 21,610 2025 $ 20,825 2026 $ 20,804 2027 $ 20,547 |
Environmental Costs (Tables)
Environmental Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of change in environmental remediation | The following table displays the activity and balances associated with accruals related to environmental costs included in other current liabilities and other long-term liabilities: 2022 2021 In thousands Balance at January 1 $ 5,958 $ 6,049 Net additions to accrual 382 391 Payments (504) (482) Balance at December 31 $ 5,836 $ 5,958 |
Schedule of future payments for environmental remediation | The following represents estimated future payments for the undiscounted environmental remediation liability related to the Bloomfield campus as of December 31, 2022: In thousands 2023 $ 239 2024 387 2025 — 2026 132 2027 120 Thereafter 3,641 Total $ 4,519 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument | |
Schedule of long-term debt instruments | The Company has long-term debt as follows: At December 31, 2022 2021 In thousands Revolving credit agreement $ 363,000 $ — Convertible notes 199,500 191,876 Total 562,500 191,876 Less current portion — — Total excluding current portion $ 562,500 $ 191,876 |
Schedule of maturities of long-term debt | The aggregate annual maturities of long-term debt for each of the next five years are approximately as follows: In thousands 2023 $ — 2024 $ 562,500 2025 $ — 2026 $ — 2027 $ — |
Schedule of line of credit facilities | The following table shows the amounts available for borrowing under the Company's revolving credit facility: At December 31, 2022 2021 In thousands Total facility $ 800,000 $ 800,000 Amounts outstanding, excluding letters of credit 363,000 — Amounts available for borrowing, excluding letters of credit 437,000 800,000 Letters of credit under the credit facility (1)(2) 51,630 92,646 Amounts available for borrowing $ 385,370 $ 707,354 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (3) $ 211,131 $ 409,914 |
2024 Notes | |
Debt Instrument | |
Schedule of changes in conversion rate for convertible notes | The following table illustrates the conversion rate at the date of issuance of the 2024 Notes: 2024 Notes Conversion Rate per $1,000 principal amount (1) 15.3227 Conversion Price (2) $ 65.2626 Contingent Conversion Price (3) $ 84.8413 Aggregate shares to be issued upon conversion (4) 3,056,879 (1) Represents the number of shares of Common Stock hypothetically issuable per each $1,000 principal amount of 2024 Notes, subject to adjustments upon the occurrence of certain specified events in accordance with the terms of the Indenture. (2) Represents $1,000 divided by the conversion rate as of such date. The conversion price reflects the strike price of the embedded option within the 2024 Notes. If the Company's share price exceeds the conversion price at conversion, the noteholders would be entitled to receive additional consideration either in cash, shares or a combination thereof, the form of which is at the sole discretion of the Company. (3) Prior to November 1, 2023, the notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after July 1, 2017, and only during any such fiscal quarter, if the last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter, (2) during the five consecutive business day period following any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day or (3) upon the occurrence of specified corporate events. On or after November 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change (as defined in the Indenture), holders of the notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest. As of December 31, 2022, none of the conditions permitting the holders of the 2024 Notes to convert had been met. Therefore, the 2024 Notes are classified as long-term debt. (4) This represents the number of shares hypothetically issuable upon conversion of 100% of the outstanding aggregate principal amount of the 2024 Notes at each date; however, the terms of the 2024 Notes state that the Company may pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The Company currently intends to settle the aggregate principal amount in cash. Amounts due in excess of the principal, if any, also may 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. |
Schedule of equity and liability components in convertible debt | The carrying amount of the equity component and the principal amount of the liability component, the unamortized discount and the net carrying value of the liability are as follows: 2024 Notes December 31, 2022 December 31, 2021 In thousands Principal amount of liability $ 199,500 $ 199,500 Unamortized discount (1) — 7,624 Carrying value of liability $ 199,500 $ 191,876 Equity component (1) $ — $ 20,408 |
Interest expense associated with convertible notes | Interest expense associated with the 2024 Notes consisted of the following: For the year ended December 31, 2022 2021 2020 In thousands Contractual coupon rate of interest $ 6,484 $ 6,484 $ 6,484 Accretion of convertible notes discount (1) — 2,957 2,860 Interest expense - convertible notes $ 6,484 $ 9,441 $ 9,344 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown below: 2022 2021 In thousands Foreign currency translation and other: Beginning balance $ 8,772 $ (717) Net loss on foreign currency translation (10,843) (13,346) Reclassification to net income (1) — 22,835 Other comprehensive (loss) income, net of tax (10,843) 9,489 Ending balance $ (2,071) $ 8,772 Pension and other post-retirement benefits (2) : Beginning balance $ (120,157) $ (130,104) Reclassification to net income Amortization of net loss, net of tax expense of $999 and $1,031, respectively 3,320 3,478 Change in net loss, net of tax (benefit) expense of $(11,889) and $1,918, respectively (39,513) 6,469 Other comprehensive loss, net of tax (36,193) 9,947 Ending balance $ (156,350) $ (120,157) Total accumulated other comprehensive income (loss) $ (158,421) $ (111,385) (1) The foreign currency translation reclassified to net income relates to the sale of the Company's UK Composites business. This balance was included in the loss accrual recorded in impairment on assets held for sale on the Company's Consolidated Statement of Operations in the year ended December 31, 2020 (see Note 2, Disposals , for additional information). (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans for additional information). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) associated with earnings from continuing operations | The components of income tax expense (benefit) from continuing operations are as follows: For the year ended December 31, 2022 2021 2020 In thousands Current: Federal $ 2,548 $ (5,613) $ 1,693 State (739) 1,061 (3,143) Foreign 441 266 168 2,250 (4,286) (1,282) Deferred: Federal (15,655) 17,533 (5,650) State (3,347) 2,526 899 Foreign 20 1,059 (1,697) (18,982) 21,118 (6,448) Income tax (benefit) expense $ (16,732) $ 16,832 $ (7,730) |
Schedule of effective income tax rate reconciliation | The provision for income taxes from continuing operations differs from that computed at the federal statutory corporate tax rate as follows: For the year ended December 31, 2022 2021 2020 In thousands Federal tax at 21% statutory rate $ (13,205) $ 12,707 $ (16,415) State income taxes, net of federal benefit (3,105) 1,459 (2,208) Tax effect: Goodwill impairment charge — — 8,297 Impairment on business — — 7,620 Research and development credits (1,550) (1,995) (821) Impact of entity classification election — 894 — Foreign derived intangible income benefit (158) (494) — Provision to return adjustments (126) 66 610 Foreign losses for which no tax benefit has been recorded 38 308 41 Change in valuation allowance (94) 2,697 1,449 Equity compensation benefit 236 77 (209) Nondeductible compensation 1,320 1,372 215 Federal benefit of NOL Carryback — — (3,885) Other, net (88) (259) (2,424) Income tax (benefit) expense $ (16,732) $ 16,832 $ (7,730) |
Tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities of continuing operations are presented below: At December 31, 2022 2021 In thousands Deferred tax assets: Deferred employee benefits $ 25,763 $ 18,380 Tax loss and credit carryforwards 17,049 17,057 Accrued liabilities and other 3,012 2,140 Contract accounting differences 4,079 3,693 Environmental liabilities 3,324 3,266 Lease obligations 1,608 2,450 Inventory 12,069 1,413 Capitalized expenses 5,385 — Total deferred tax assets 72,289 48,399 Deferred tax liabilities: Property, plant and equipment (10,714) (11,680) Intangibles (15,201) (21,282) Other items (43) (205) Total deferred tax liabilities (25,958) (33,167) Net deferred tax assets before valuation allowance 46,331 15,232 Valuation allowance (5,025) (6,022) Net deferred tax assets after valuation allowance $ 41,306 $ 9,210 |
Change in the liability for uncertain tax positions | The change in the liability for 2022, 2021 and 2020 is explained as follows: 2022 2021 2020 In thousands Balance at January 1 $ 3,592 $ 3,612 $ 3,214 Additions based on current year tax positions — 32 481 Changes for tax positions of prior years 211 (52) 3 Settlements (67) — (86) Lapse of statute of limitations (281) — — Balance at December 31 (1) $ 3,455 $ 3,592 $ 3,612 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payment for Pension and Other Postretirement Benefits [Abstract] | |
Changes in the actuarial present value of the projected benefit obligation and fair value of plan assets | The changes in the actuarial present value of the projected benefit obligation and fair value of plan assets are as follows: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Projected benefit obligation at beginning of year $ 785,795 $ 836,531 $ 5,017 $ 7,669 Service cost 3,363 1,301 — — Interest cost 17,198 14,165 86 63 Actuarial liability (gain) loss (1) (169,342) (29,590) (737) (63) Benefit payments (40,063) (36,612) (534) (2,652) Projected benefit obligation at end of year $ 596,951 $ 785,795 $ 3,832 $ 5,017 Fair value of plan assets at beginning of year $ 764,009 $ 766,921 $ — $ — Actual return on plan assets (179,304) 23,700 — — Employer contributions — 10,000 534 2,652 Benefit payments (40,063) (36,612) (534) (2,652) Fair value of plan assets at end of year $ 544,642 $ 764,009 $ — $ — Funded status at end of year $ (52,309) $ (21,786) $ (3,832) $ (5,017) Accumulated benefit obligation $ 596,951 $ 785,795 $ 3,832 $ 5,017 (1) The actuarial liability (gain) loss amount for the qualified pension plan for 2022 and 2021 was principally due to the effect of changes in the discount rate. |
Liabilities related to the qualified pension plan and SERP | The Company has recorded liabilities related to our qualified pension plan and SERP as follows: At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Current liabilities (1) $ — $ — $ (520) $ (526) Noncurrent liabilities (52,309) (21,786) (3,312) (4,491) Total $ (52,309) $ (21,786) $ (3,832) $ (5,017) (1) The current liabilities are included in other current liabilities on the Consolidated Balance Sheets. |
Schedule of pension costs in future periods | The following table presents amounts included in accumulated other comprehensive income on the Consolidated Balance Sheets that will be recognized as components of pension cost in future periods. At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Unrecognized loss (gain) $ 206,896 $ 159,015 $ (68) $ 730 Amount included in accumulated other comprehensive income $ 206,896 $ 159,015 $ (68) $ 730 |
Pension plan net periodic benefit costs and other amounts recognized in other comprehensive loss | The pension plan net periodic benefit costs on the Consolidated Statements of Operations and other amounts recognized in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Shareholders’ Equity were computed using the projected unit credit actuarial cost method and included the following components: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2020 2022 2021 2020 In thousands Service cost for benefits earned during the year $ 3,363 $ 1,301 $ 5,234 $ — $ — $ — Interest cost on projected benefit obligation 17,198 14,165 21,020 86 63 165 Expected return on plan assets (42,177) (45,177) (43,183) — — — Recognized net loss 4,258 4,444 4,804 61 65 944 Additional amount recognized due to curtailment/settlement — — — — 211 — Net pension benefit (income) cost $ (17,358) $ (25,267) $ (12,125) $ 147 $ 339 $ 1,109 Change in net (loss) or gain 52,139 (8,113) (708) (737) (274) 703 Amortization of net loss (4,258) (4,444) (4,804) (61) (65) (944) Total recognized in other comprehensive (loss) income $ 47,881 $ (12,557) $ (5,512) $ (798) $ (339) $ (241) Total recognized in net periodic benefit cost and other comprehensive (income) loss $ 30,523 $ (37,824) $ (17,637) $ (651) $ — $ 868 |
Contributions made to the Qualified Pension Plan and SERP | 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 2023: Qualified Pension Plan SERP 2022 2021 2022 2021 In thousands Contributions $ — $ 10,000 $ 534 $ 2,652 Qualified Pension Plan SERP In thousands Expected contributions during 2023 $ — $ 520 |
Actuarial assumptions used in determining benefit obligations and net periodic benefit of the pension plans | Expected future benefit payments are as follows: Qualified SERP In thousands 2023 $ 43,242 $ 520 2024 $ 44,380 $ 487 2025 $ 45,138 $ 454 2026 $ 45,709 $ 421 2027 $ 45,928 $ 388 2028-2032 $ 223,607 $ 1,486 |
Schedule of actuarial assumptions used in determining benefit obligations and net periodic benefit cost of the pension plans | The discount rates used in determining benefit obligations of the pension plans are as follows: At December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 Discount rate 5.19 % 2.71 % 5.04 % 2.33 % The actuarial assumptions used in determining the net periodic benefit cost of the pension plans are as follows: For the year ended December 31, Qualified Pension Plan SERP 2022 2021 2022 2021 Discount rate (1) 2.71 % 2.34 % 2.33 % 1.78 % / 2.29 % Expected return on plan assets 5.70 % 6.00 % N/A N/A Average rate of increase in compensation levels N/A N/A N/A N/A (1) In November 2021, the Company's SERP had a settlement and re-measurement. This resulted in the Company using a discount rate of 1.78% for the first ten months of the year ended December 31, 2021 and a discount rate of 2.29% for the remaining two months following the re-measurement. |
Fair value of the Company’s qualified pension plan assets | The fair values of the Company’s qualified pension plan assets at December 31, 2022 and 2021, are as follows: Total Carrying Value at December 31, 2022 Quoted prices in Significant other Significant Not subject to leveling In thousands Short-term investments: Cash and cash equivalents $ 14,168 $ 14,168 $ — $ — $ — Futures contracts - assets 145 — 145 — — Futures contracts - liabilities (1,283) — (1,283) — — Fixed income securities 251,317 — 251,317 — — Mutual funds 73,042 73,042 — — — Common trust funds (1) 177,894 — — — 177,894 Corporate stock 26,450 26,450 — — — Subtotal $ 541,733 $ 113,660 $ 250,179 $ — $ 177,894 Accrued income/expense 2,909 107 2,802 — — Total $ 544,642 $ 113,767 $ 252,981 $ — $ 177,894 Total Carrying Value at December 31, 2021 Quoted prices in Significant other Significant Not subject to leveling In thousands Short term investments: Cash and cash equivalents $ 19,033 $ 19,033 $ — $ — $ — Futures contracts - assets 2,014 — 2,014 — — Futures contracts - liabilities (372) — (372) — — Fixed income securities 231,433 — 231,433 — — Mutual funds 72,834 72,834 — — — Common trust funds (1) 417,022 — — — 417,022 Corporate stock 20,222 20,222 — — — Subtotal $ 762,186 $ 112,089 $ 233,075 $ — $ 417,022 Accrued income/expense 1,823 (33) 1,856 — — Total $ 764,009 $ 112,056 $ 234,931 $ — $ 417,022 (1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other long-term liabilities | Other long-term liabilities consist of the following: At December 31, 2022 2021 In thousands Supplemental employees' retirement plan ("SERP") $ 3,306 $ 4,491 Deferred compensation 19,237 20,618 Long-term incentive plan — 1,016 Noncurrent income taxes payable 3,288 3,365 Environmental remediation liability 5,376 5,548 Finance leases 2,002 2,629 Other 3,071 2,170 Total other long-term liabilities $ 36,280 $ 39,837 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Right of Use Assets [Table Text Block] | Right-of-use assets, net consisted of the following: Classification December 31, 2022 December 31, 2021 In thousands Assets Operating lease right of use assets Operating lease right-of-use assets, net $ 7,391 $ 11,011 Finance lease right of use assets Property, plant and equipment, net of accumulated depreciation 6,626 3,830 Total leased assets $ 14,017 $ 14,841 |
Schedule of Lease Liabilities [Table Text Block] | Lease liabilities consisted of the following: Classification December 31, 2022 December 31, 2021 In thousands Liabilities Current Operating lease liability, current portion Operating lease liabilities, current portion $ 3,332 $ 4,502 Finance lease liability, current portion Other current liabilities 1,756 1,697 Noncurrent Operating lease liability, noncurrent portion Operating lease liabilities, noncurrent portion 4,534 7,140 Finance lease liability, noncurrent portion Other long-term liabilities 2,002 2,629 Total lease liabilities $ 11,624 $ 15,968 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future rental payments for continuing operations consisted of the following: December 31, 2022 In thousands Operating leases 2023 $ 3,525 2024 2,849 2025 996 2026 546 2027 316 Thereafter 41 Total future operating lease payments $ 8,273 Interest (407) Present value of future operating lease payments $ 7,866 Finance leases 2023 $ 1,817 2024 1,208 2025 839 2026 — 2027 — Thereafter — Total future finance lease payments $ 3,864 Interest (106) Present value of future finance lease payments $ 3,758 Present value of total future lease payments $ 11,624 |
Lease, Cost [Table Text Block] | The following table illustrates the components of lease expense for the Company's leases. For the year ended December 31, 2022 2021 2020 In thousands Finance lease cost Amortization of right-of-use assets $ 894 $ 758 880 Interest on lease liabilities 106 139 196 Operating lease cost 5,217 5,245 5465 Short-term lease cost 328 242 443 Variable lease cost 461 79 96 Total lease expense $ 7,006 $ 6,463 $ 7,080 |
Schedule of Cash Flows, Leasing | The following table segregates cash paid for the Company's leases. For the year ended December 31, 2022 2021 2020 In thousands Operating cash flows from operating leases $ (6,144) $ (6,294) (5,556) Operating cash flows from finance leases (1,830) (2,028) (1,533) Financing cash flows from finance leases (106) (139) (196) Total cash flows from leasing activities $ (8,080) $ (8,461) $ (7,285) |
Lessee, Additional Lease Information [Table Text Block] | Other information related to leases is as follows: December 31, 2022 Weighted-average remaining lease term (years) Operating leases 2.8 Finance leases 2.4 Weighted-average discount rate Operating leases 3.7 % Finance leases 2.7 % |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | For the year ended December 31, 2022 2021 2020 In thousands, except per share amounts (Loss) earnings from continuing operations $ (46,226) $ 43,676 $ (70,434) Total earnings from discontinued operations — — 692 Net (loss) earnings $ (46,226) $ 43,676 $ (69,742) Basic: Weighted average number of shares outstanding 28,011 27,865 27,723 (Loss) earnings per share from continuing operations $ (1.65) $ 1.57 $ (2.54) Earnings per share from discontinued operations 0.00 0.00 0.02 Basic (loss) earnings per share $ (1.65) $ 1.57 $ (2.52) Diluted (1) : Weighted average number of shares outstanding 28,011 27,865 27,723 Weighted average shares issuable on exercise of dilutive stock options — 26 — Total 28,011 27,891 27,723 (Loss) earnings per share from continuing operations $ (1.65) $ 1.57 $ (2.54) Earnings per share from discontinued operations 0.00 0.00 0.02 Diluted (loss) earnings per share $ (1.65) $ 1.57 $ (2.52) (1) As a result of the adoption of ASU 2020-06, the Company began calculating diluted earnings per share using the if-converted method for its convertible debt instruments in 2022. Prior to the adoption, the Company calculated diluted earnings per share for its convertible debt instruments using the treasury stock method. The Company adopted ASU 2020-06 using the modified retrospective approach; therefore, prior period results have not been retroactively adjusted. Refer to Note 1, Summary of Significant Accounting Policies , for further information on the adoption of ASU 2020-06. |
Share-Based Arrangements (Table
Share-Based Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation, stock options, activity | Stock option activity is as follows: Options Weighted average- Options outstanding at December 31, 2021 746,240 $ 55.14 Granted 39,121 31.60 Exercised (11,842) 41.90 Forfeited or expired (62,737) 54.47 Options outstanding at December 31, 2022 710,782 $ 54.12 |
Schedule of share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding | The following table presents information regarding options outstanding as of December 31, 2022: Weighted-average remaining contractual term - options outstanding (years) 4.0 Aggregate intrinsic value - options outstanding (in thousands) $ — Weighted-average exercise price - options outstanding $ 54.12 Options exercisable 555,216 Weighted-average remaining contractual term - options exercisable (years) 3.4 Aggregate intrinsic value - options exercisable (in thousands) $ — Weighted-average exercise price - options exercisable $ 53.91 |
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: 2022 2021 2020 Expected option term (years) 6.5 4.9 4.9 Expected volatility 35.5 % 35.7 % 20.2 % Risk-free interest rate 2.9 % 0.5 % 1.4 % Expected dividend yield 2.0 % 1.6 % 1.3 % Per share fair value of options granted $ 10.22 $ 14.89 $ 10.74 |
Schedule of share-based compensation, restricted stock and restricted stock units activity | Restricted Stock Award and Restricted Stock Unit activity is as follows: Restricted Stock Weighted- Restricted Stock outstanding at December 31, 2021 135,351 $ 53.53 Granted 119,003 40.29 Vested (80,539) 49.88 Forfeited or expired (14,294) 50.46 Restricted Stock outstanding at December 31, 2022 159,521 $ 45.78 |
Share-Based Payment Arrangement, Performance Shares, Activity | Performance stock unit activity was as follows: Performance Stock Weighted- Performance Stock outstanding at December 31, 2021 70,163 $ 70.17 Granted 117,885 54.87 Vested — — Forfeited or expired (15,904) 60.93 Performance Stock outstanding at December 31, 2022 172,144 $ 60.44 |
Schedule of Share-Based Payment Award, Performance Share, Valuation Assumptions | The following table indicates the weighted-average assumptions used in estimating fair value: 2022 2021 Expected term (years) 2.9 2.9 Expected volatility 39.4 % 41.3 % Risk-free interest rate 1.7 % 0.2 % Expected dividend yield 1.9 % 1.4 % Per share fair value of performance stock granted $ 68.10 $ 84.49 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Segments) (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Accounting Policies [Abstract] | |
Primary business segments number | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Basis of Presentation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basis of Presentation [Abstract] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 0 | $ 36,285 | ||
Asset Impairment Charges | 24,300 | ||||
Other Asset Impairment Charges | $ 12,000 | ||||
Error Corrections and Prior Period Adjustments, Description | 1.9 million | 1.1 million | 0.8 million | ||
Gain (Loss) on Disposition of Business | $ 457 | $ (234) | $ 493 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Concentration) (Details) - Customers | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Threshold Percentage | 10% | ||
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Number of customers that exceeded threshold | 0 | 0 | |
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers that exceeded threshold | 1 | 2 | |
Foreign sales | Sales Revenue, Net | Geographic Distribution, Foreign | |||
Concentration Risk [Line Items] | |||
Concentration risk | 37.20% | 41.60% | 50% |
Customer Concentration Risk | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Threshold Percentage | 10% | ||
Customer Concentration Risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Threshold Percentage | 10% | 10% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Additional Cash Flow) (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Total net adjustment | $ (36,200) | $ 9,900 | $ 4,400 | |
Adjustments to other comprehensive income related to underfunding of pension and SERP plans and changes in fair value of derivative financial instruments, tax | (10,900) | 2,900 | 1,300 | |
Dividends declared but not yet paid | 5,600 | 5,600 | 5,500 | $ 5,600 |
Accrual for purchases of property and equipment | 1,700 | 2,000 | ||
Gain (Loss) on Disposition of Business | 457 | (234) | 493 | |
Gain (Loss) on Disposition of Business, Non Cash | 457 | (234) | 493 | |
Noncash Consideration on Sale of Aircraft | (827) | 0 | 0 | |
K-MAX® program | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Noncash Consideration on Sale of Aircraft | $ 800 | |||
U.K. Composites [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ (200) | $ (36,300) | $ (36,519) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 720,900 | $ 700,900 | |
Revenues | 687,961 | 708,993 | $ 784,459 |
Performance obligations satisfied in previous periods [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reductions in revenue | $ (3,500) | $ (2,600) | $ (7,000) |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Cash and Cash Equivalents, Accounts Receivable, Inventory, & Contract Assets) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Integer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 03, 2020 USD ($) | |
Accounting Policies [Abstract] | ||||
Money Market Funds, at Carrying Value | $ 100 | $ 65,500 | ||
Restricted Cash, Current | $ 24,700 | |||
Bank overdrafts | $ 1,500 | 1,400 | ||
Number of types of accounts receivable | Integer | 3 | |||
Program inventory impairment | $ 44,542 | 0 | $ 0 | |
Program contract costs impairment | $ 9,135 | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Property Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Minimum [Member] | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum [Member] | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Leasing) (Details) | Dec. 31, 2022 |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Term of Contract | 3 years |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Term of Contract | 5 years |
Real Estate [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Real Estate [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 8 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Asset Impairment Charges | $ 24,300 | |||
Other Asset Impairment Charges | 12,000 | |||
Goodwill [Line Items] | ||||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 0 | 36,285 | |
Other Asset Impairment Charges | 12,000 | |||
Asset Impairment Charges | 24,300 | |||
Goodwill, Impairment Loss | 25,306 | 0 | ||
Impairment of Intangible Assets, Finite-lived | 0 | 0 | ||
Gain (Loss) on Disposition of Business | 457 | (234) | 493 | |
Goodwill | 379,854 | 240,681 | 247,244 | $ 240,681 |
Goodwill | 379,854 | 240,681 | 247,244 | 240,681 |
Aerosystems [Member] | ||||
Goodwill [Line Items] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | 56,100 | |||
Goodwill, Impairment Loss | 50,300 | |||
KPP-Orlando | ||||
Goodwill [Line Items] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | 25,300 | |||
Goodwill, Impairment Loss | 25,300 | |||
Goodwill | 16,100 | |||
Goodwill | $ 16,100 | |||
U.K. Composites [Member] | ||||
Goodwill [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ (200) | $ (36,300) | $ (36,519) |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Unfulfilled Performance Obligations) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 720.9 | $ 700.9 |
Revenue, Remaining Performance Obligation, Amount, Current | $ 502.6 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Self-Insured Retentions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Total Liability/Deductible for Group Health Insurance Per Claim | $ 0.3 |
Total Liability/Deductible for Workers Compensation Per Claim | 0.4 |
Total Liability/Deductible for Product/General and Auto Insurance Per Claim | $ 0.3 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Research and Development) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development costs | $ 19,552 | $ 16,072 | $ 14,755 |
Cost of sales | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Customer funded research expenditures | $ 400 | $ 400 | $ 100 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Recent Accounting Standards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |||
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | $ (274) | ||
Deferred Tax Assets, Net | 15,717 | $ 47,385 | $ 17,487 |
Long-term debt, excluding current portion, net of debt issuance costs | 189,421 | 561,061 | 197,045 |
Additional paid-in capital | 248,153 | 245,436 | 235,664 |
Retained earnings | 750,445 | 688,457 | 757,080 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Tax Assets, Net | 15,717 | 47,385 | 17,487 |
Long-term debt, excluding current portion, net of debt issuance costs | 189,421 | 561,061 | 197,045 |
Additional paid-in capital | 248,153 | 245,436 | 235,664 |
Retained earnings | $ 750,445 | $ 688,457 | 757,080 |
Accounting Standards Update 2020-06 | |||
Accounting Changes and Error Corrections [Abstract] | |||
Deferred Tax Assets, Net | 1,770 | ||
Long-term debt, excluding current portion, net of debt issuance costs | 7,624 | ||
Additional paid-in capital | 12,489 | ||
Retained earnings | 6,635 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred Tax Assets, Net | 1,770 | ||
Long-term debt, excluding current portion, net of debt issuance costs | 7,624 | ||
Additional paid-in capital | 12,489 | ||
Retained earnings | $ 6,635 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 40 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2022 | Feb. 02, 2021 | Aug. 26, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Costs of Transition Services Agreement | $ 0 | $ 1,728 | $ 12,515 | |||||
Income from transition services agreement | 0 | 931 | 8,439 | |||||
Assets | 1,491,332 | 1,198,482 | 1,306,393 | $ 1,198,482 | $ 1,491,332 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 0 | 0 | 0 | |||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | 692 | |||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 692 | |||||
Proceeds from Divestiture of Businesses | 0 | 0 | 5,223 | |||||
Impairment of Long-Lived Assets to be Disposed of | 0 | 0 | (36,285) | |||||
Asset Impairment Charges | 24,300 | |||||||
Other Asset Impairment Charges | 12,000 | |||||||
Gain (Loss) on Disposition of Business | (457) | 234 | (493) | |||||
U.K. Composites [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (Loss) on Disposition of Business | (500) | $ 3,700 | ||||||
Distribution [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Costs of Transition Services Agreement | 1,700 | 12,500 | 18,900 | |||||
Income from transition services agreement | 900 | 8,400 | 13,000 | |||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 900 | |||||||
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 200 | |||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 700 | |||||||
Proceeds from Divestiture of Businesses | 5,200 | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 700,000 | |||||||
U.K. Composites [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 6,600 | 6,600 | ||||||
Assets | $ 23,460 | |||||||
Disposal Group, Including Discontinued Operation, Liabilities | 6,618 | |||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 22,835 | |||||||
Disposal Group, Including Discontinued Operations, Net Assets | $ 16,842 | |||||||
Proceeds from Divestiture of Businesses | 3,600 | |||||||
Legal Fees | 442 | |||||||
Gain (Loss) on Disposition of Business | 200 | 36,300 | $ 36,519 | |||||
Mexico Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (Loss) on Disposition of Business | $ (500) | |||||||
Cash Outflows [Member] | Distribution [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | 600 | 300 | 8,700 | |||||
Cash Inflows [Member] | Distribution [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | $ 2,000 | $ 13,300 | $ 19,400 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 16, 2022 | Jan. 03, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Restricted Cash, Current | $ 24,700 | ||||
Equity Method Investments | $ 10,000 | $ 0 | |||
Finite-Lived Intangible Assets, Purchase Accounting Adjustments | (7,400) | ||||
Goodwill, Purchase Accounting Adjustments | 7,400 | ||||
Working Capital adjustment | $ 1,500 | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Accounts receivable (1) $ 7,635 Contract assets 171 Inventories 11,246 Property, plant and equipment 7,686 Goodwill 169,790 Other intangible assets 250,500 Contract costs, noncurrent 41 Liabilities (5,729) Net assets acquired $ 441,340 Less cash received — Net consideration $ 441,340 | This acquisition was accounted for under the acquisition method. The assets acquired and liabilities assumed were recorded based on their fair values at the date of acquisition as follows (in thousands): Cash $ 10,953 Restricted cash 1,932 Accounts receivable 9,525 Contract assets 784 Inventories 13,500 Property, plant and equipment 81,997 Operating right-of-use asset 653 Other tangible assets 2,492 Goodwill 95,089 Other intangible assets 110,300 Liabilities (9,679) Net assets acquired 317,546 Less cash received (12,885) Net consideration $ 304,661 | |||
Near Earth Autonomy | |||||
Business Acquisition [Line Items] | |||||
Equity Method Investments | $ 10,000 | ||||
Bal Seal [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 317,500 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 10,953 | ||||
Business Combinations Recognized Identifiable Assets Acquired and Liabilities Assumed, Restricted Cash | 1,932 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 9,525 | ||||
Business Combinations, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract Assets | 784 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 13,500 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 81,997 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right of Use Asset | 653 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 2,492 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 95,089 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 110,300 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (9,679) | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 317,546 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liability Assumed, Cash and Cash Equivalents and Restricted Cash | (12,885) | ||||
Business Combination, Consideration Transferred | 304,661 | ||||
Deferred Compensation Liability, Current and Noncurrent | 1,900 | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 22,800 | ||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 77,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (30,800) | ||||
Business Acquisition, Pro Forma Revenue | 784,459 | ||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | (35,681) | ||||
Business Acquisition, Pro Forma Net Income (Loss) | (34,989) | ||||
Pro Forma, Nonrecurring Adjustment, Reduction in Deferred Compensation Expense | 22,800 | ||||
Pro Forma, Nonrecurring Adjustment, Reduction in Acquisition Related Expense | 8,500 | ||||
Pro Forma, Nonrecurring Adjustment, Reduction for Inventory Step Up | 2,400 | ||||
Pro Forma, Nonrecurring Adjustment, Reduction in Finite Lived Assets Amortization | 5,300 | ||||
Pro Forma, Nonrecurring Adjustment, Income Tax Expense | $ 4,100 | ||||
Bal Seal [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 70,100 | ||||
Bal Seal [Member] | Customer Relationships [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 30 years | ||||
Bal Seal [Member] | Customer Relationships [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 38 years | ||||
Bal Seal [Member] | Technology-Based Intangible Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 25,500 | ||||
Bal Seal [Member] | Technology-Based Intangible Assets [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 7 years | ||||
Bal Seal [Member] | Technology-Based Intangible Assets [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 13 years | ||||
Bal Seal [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11,900 | ||||
Amortization Period | 40 years | ||||
Bal Seal [Member] | Order or Production Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,800 | ||||
Amortization Period | 1 year | ||||
Aircraft Wheel and Brake | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 441,300 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 7,635 | ||||
Business Combinations, Recognized Identifiable Assets Acquired and Liabilities Assumed, Contract Assets | 171 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 11,246 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 7,686 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 169,790 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 250,500 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 41 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (5,729) | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 441,340 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liability Assumed, Cash and Cash Equivalents and Restricted Cash | 0 | ||||
Business Combination, Consideration Transferred | 441,340 | ||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 20,800 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (2,400) | ||||
Business Acquisition, Pro Forma Revenue | 740,960 | 778,167 | |||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | (41,679) | 13,840 | |||
Business Acquisition, Pro Forma Net Income (Loss) | (41,679) | 13,840 | |||
Pro Forma, Nonrecurring Adjustment, Reduction in Acquisition Related Expense | 12,800 | ||||
Pro Forma, Nonrecurring Adjustment, Finite Lived Assets Amortization | 9,100 | 18,200 | |||
Pro Forma, Nonrecurring Adjustment, Acquisition Related Expense | 12,800 | ||||
Pro Forma Nonrecurring Adjustment, Increase in Interest Expense | 20,500 | 29,100 | |||
Pro Forma Nonrecurring Adjustment, Reduction in Income Tax Expense | 3,000 | 13,400 | |||
Pro Forma Nonrecurring Adjustment, Increase in Cost of Sales | $ 3,100 | $ 3,100 | |||
Aircraft Wheel and Brake | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 237,700 | ||||
Aircraft Wheel and Brake | Customer Relationships [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 23 years | ||||
Aircraft Wheel and Brake | Customer Relationships [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization Period | 25 years | ||||
Aircraft Wheel and Brake | Order or Production Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12,800 | ||||
Amortization Period | 2 years |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 687,961 | $ 708,993 | $ 784,459 |
Revenues, Percentage | 100% | 100% | 100% |
Operating income | $ (66,343) | $ 49,496 | $ (84,311) |
Assets | 1,491,332 | 1,198,482 | 1,306,393 |
Expenditures for property, plant & equipment | 23,689 | 17,530 | 17,783 |
Depreciation and amortization | 40,712 | 36,654 | 43,899 |
Long-Lived Assets | 1,012,389 | 636,222 | |
Deferred Tax Assets, Net | 47,400 | 15,700 | |
Research and development costs | $ 19,552 | 16,072 | 14,755 |
Schedule of Segment Reporting Information, by Segment [Table] | Summarized financial information by business segment is as follows: For the year ended December 31, 2022 2021 2020 In thousands Net sales: Engineered Products $ 377,241 $ 317,683 $ 315,063 Precision Products 185,023 256,329 302,509 Structures 125,697 134,981 166,887 Net sales (1) $ 687,961 $ 708,993 $ 784,459 Operating income (loss): Engineered Products $ 57,833 $ 43,097 $ 33,561 Precision Products 17,705 55,366 74,033 Structures (3,000) (340) (8,858) Corporate expense (50,377) (40,519) (53,059) Other unallocated expenses, net (2) (88,504) (8,108) (129,988) Operating (loss) income $ (66,343) $ 49,496 $ (84,311) Interest expense, net 16,874 16,290 19,270 Non-service pension and post retirement benefit income, net (20,574) (26,229) (16,250) Income from transition services agreement — (931) (8,439) Other expense (income), net 315 (142) (728) (Loss) earnings from continuing operations before income taxes $ (62,958) $ 60,508 $ (78,164) (1) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $205.0 million, $230.6 million and $220.8 million in 2022, 2021 and 2020, respectively, and represent direct and indirect sales to the USG and related agencies. (2) Other unallocated expenses, net include program inventory impairment, goodwill and other intangibles impairments, impairment on assets held for sale, program contract costs impairment, costs from the TSA, cost of acquired retention plans, restructuring and severance costs, net gain (loss) on sale of business, and net loss (gain) on sale of assets. | ||
U.S. Government contracts | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 205,000 | 230,600 | 220,800 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 452,392 | 442,432 | 412,025 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 141,657 | 113,811 | 148,473 |
Middle East [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 41,948 | 107,408 | 170,835 |
Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 35,691 | 27,638 | 34,424 |
Oceania [Domain] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,208 | 14,160 | 11,156 |
Segment, Geographical, Groups of Countries, Group Six [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,065 | 3,544 | 7,546 |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 865,659 | 476,546 | |
GERMANY | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 140,626 | 152,061 | |
CZECH REPUBLIC | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 4,827 | 5,354 | |
MEXICO | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 0 | 1,291 | |
NETHERLANDS | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 509 | 593 | |
SWITZERLAND | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 708 | 245 | |
HONG KONG | |||
Segment Reporting Information [Line Items] | |||
Long-Lived Assets | 60 | 132 | |
Military and Defense, other than fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 145,946 | 168,670 | 180,400 |
Missile and Bomb Fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 125,685 | $ 191,524 | $ 248,482 |
Revenues, Percentage | 18% | 27% | 32% |
Commercial Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 242,619 | $ 184,686 | $ 220,263 |
Medical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 94,551 | 86,715 | 70,010 |
Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 79,160 | $ 77,398 | $ 65,304 |
Original Equipment Manufacturer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 63% | 59% | 56% |
Aftermarket [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 19% | 14% | 12% |
Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 377,241 | $ 317,683 | $ 315,063 |
Revenues, Percentage | 55% | 45% | 40% |
Operating income | $ 57,833 | $ 43,097 | $ 33,561 |
Assets | 1,052,576 | 623,899 | 681,097 |
Expenditures for property, plant & equipment | 14,667 | 9,537 | 11,496 |
Depreciation and amortization | 30,461 | 26,306 | 31,574 |
Research and development costs | 8,842 | 8,399 | 8,806 |
Engineered Products | Military and Defense, other than fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 49,982 | 51,033 | 55,380 |
Engineered Products | Missile and Bomb Fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenues, Percentage | 0% | 0% | 0% |
Engineered Products | Commercial Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 166,748 | $ 115,576 | $ 135,289 |
Engineered Products | Medical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 86,659 | 79,424 | 63,791 |
Engineered Products | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 73,852 | $ 71,650 | $ 60,603 |
Engineered Products | Original Equipment Manufacturer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 41% | 35% | 31% |
Engineered Products | Aftermarket [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 14% | 10% | 9% |
Precision Products | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 185,023 | $ 256,329 | $ 302,509 |
Revenues, Percentage | 27% | 36% | 39% |
Operating income | $ 17,705 | $ 55,366 | $ 74,033 |
Assets | 192,743 | 250,146 | 315,439 |
Expenditures for property, plant & equipment | 4,658 | 3,554 | 2,545 |
Depreciation and amortization | 3,663 | 4,148 | 3,706 |
Research and development costs | 10,508 | 7,443 | 5,211 |
Precision Products | Military and Defense, other than fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 22,367 | 30,062 | 22,523 |
Precision Products | Missile and Bomb Fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 125,685 | $ 191,524 | $ 248,482 |
Revenues, Percentage | 18% | 27% | 32% |
Precision Products | Commercial Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 31,663 | $ 28,995 | $ 26,803 |
Precision Products | Medical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 0 |
Precision Products | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,308 | $ 5,748 | $ 4,701 |
Precision Products | Original Equipment Manufacturer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 4% | 5% | 4% |
Precision Products | Aftermarket [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 5% | 4% | 3% |
Structures | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 125,697 | $ 134,981 | $ 166,887 |
Revenues, Percentage | 18% | 19% | 21% |
Operating income | $ (3,000) | $ (340) | $ (8,858) |
Assets | 135,115 | 125,027 | 135,021 |
Expenditures for property, plant & equipment | 1,940 | 2,075 | 2,650 |
Depreciation and amortization | 3,519 | 3,462 | 5,201 |
Research and development costs | 202 | 230 | 738 |
Structures | Military and Defense, other than fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 73,597 | 87,575 | 102,497 |
Structures | Missile and Bomb Fuzes [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenues, Percentage | 0% | 0% | 0% |
Structures | Commercial Aerospace [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 44,208 | $ 40,115 | $ 58,171 |
Structures | Medical | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,892 | 7,291 | 6,219 |
Structures | Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Structures | Original Equipment Manufacturer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 18% | 19% | 21% |
Structures | Aftermarket [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues, Percentage | 0% | 0% | 0% |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Operating income | $ (50,377) | $ (40,519) | $ (53,059) |
Assets | 110,898 | 199,410 | 174,836 |
Expenditures for property, plant & equipment | 2,424 | 2,364 | 1,092 |
Depreciation and amortization | 3,069 | 2,738 | 3,418 |
Other unallocated expenses, net | |||
Segment Reporting Information [Line Items] | |||
Operating income | $ (88,504) | $ (8,108) | $ (129,988) |
Payment (Details)
Payment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Time-and-materials Contract [Member] | Minimum [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Performance Obligation, Description of Timing | 30 |
Time-and-materials Contract [Member] | Maximum [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Performance Obligation, Description of Timing | 60 days |
Fixed-price Contract [Member] | Minimum [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Performance Obligation, Description of Timing | 30 |
Fixed-price Contract [Member] | Maximum [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Performance Obligation, Description of Timing | 90 days |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring and severance costs (Note 5) | $ 9,842 | $ 6,154 | $ 8,359 | |
Gain (Loss) on Disposition of Business | (457) | 234 | (493) | |
Increase (Decrease) in Restructuring Reserve | 6,629 | |||
Restructuring Reserve, Period Increase (Decrease) | 0 | |||
Restructuring accrual, ending balance | 6,629 | |||
Restructuring accrual, beginning balance | 0 | |||
Restructuring Accrual, long-term portion | 1,000 | |||
GA Reduction Effort [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance Costs | 3,200 | 6,200 | 4,000 | |
COVID19 [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance Costs | 3,600 | |||
2017 Announced Restructuring Plan [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring and severance costs (Note 5) | 300 | |||
Bal Seal [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance Costs | 500 | |||
Transformation severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Increase (Decrease) in Restructuring Reserve | 6,629 | |||
Restructuring Reserve, Period Increase (Decrease) | 0 | |||
Restructuring accrual, ending balance | 6,629 | |||
Restructuring accrual, beginning balance | 0 | |||
Transformation other | ||||
Restructuring Reserve [Roll Forward] | ||||
Increase (Decrease) in Restructuring Reserve | 0 | |||
Restructuring Reserve, Period Increase (Decrease) | 0 | |||
Restructuring accrual, ending balance | $ 0 | |||
Restructuring accrual, beginning balance | $ 0 | |||
U.K. Composites [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Gain (Loss) on Disposition of Business | $ (500) | $ 3,700 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 87,659 | $ 73,524 |
Allowance for Doubtful Other Receivables, Current | (2,066) | (1,547) |
Less allowance for doubtful accounts | (2,066) | (1,547) |
Provision for Other Credit Losses | (1,301) | |
Accounts Receivable, Allowance for Credit Loss, Additions due to Acquisitions | (67) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 351 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 495 | |
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | 3 | |
Contract changes, negotiated settlements and claims for unanticipated contract costs | 0 | 900 |
Trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 31,126 | 19,228 |
U.S. Government contracts | Billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 14,150 | 14,748 |
U.S. Government contracts | Costs and accrued profit – not billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 661 | 167 |
Commercial and other government contracts | Billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 41,520 | 36,787 |
Commercial and other government contracts | Costs and accrued profit – not billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 2,268 | $ 4,141 |
Contract Assets, Contract Cos_3
Contract Assets, Contract Costs and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Current | $ 113,182 | $ 112,354 | |
Increase (Decrease) in Contract with Customer, Asset Current | $ 828 | ||
Increase (Decrease) in Contract with Customer Asset, Current, Percentage | 0.70% | ||
Capitalized Contract Cost, Net, Current | $ 695 | 850 | |
increase (Decrease) in Capitalized Contract Cost Current | $ (155) | ||
Increase (Decrease) in Capitalized Contract Cost, Current, Percentage | (18.20%) | ||
Capitalized Contract Cost, Net, Noncurrent | $ 673 | 10,249 | |
Increase (Decrease) in Capitalized Contract Cost Noncurrent | $ (9,576) | ||
Increase (Decrease) in Capitalized Contract Cost, Noncurrent, Percentage | (93.40%) | ||
Contract with Customer, Liability, Current | $ 4,081 | 2,945 | |
Increase (Decrease) in Contract with Customer Liability, Current | $ 1,136 | ||
Increase (Decrease) in Contract with Customer Liability, Current, Percentage | 38.60% | ||
Contract with Customer, Liability, Noncurrent | $ 20,515 | 16,528 | |
Increase (Decrease) in Contract with Customer Liability, Noncurrent | $ 3,987 | ||
Increase (Decrease) in Contract with Customer Liability, Noncurrent, Percentage | 24.10% | ||
Government Contract Receivable, Progress Payment Offset | $ 43,300 | 59,300 | |
Capitalized Contract Cost, Amortization | 700 | 8,700 | |
Contract with Customer, Liability, Revenue Recognized | 2,100 | 47,900 | |
Program contract costs impairment | 9,135 | 0 | $ 0 |
Contract Changes Negotiated Settlements and Claims [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Current | 0 | 682 | |
Costs to Fulfill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Net | 1,400 | 11,100 | |
Costs to Obtain [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Net | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Money Market Funds, at Carrying Value | $ 100 | $ 65,500 | |
Goodwill, Impairment Loss | 25,306 | 0 | |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | |
Program inventory impairment | 44,542 | 0 | $ 0 |
Aerosystems [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Goodwill, Impairment Loss | $ 50,300 | ||
Debt(1) | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 562,500 | 191,876 | |
Debt(1) | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 547,393 | $ 213,222 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Inventory [Line Items] | |||
Raw materials | $ 25,798 | $ 19,123 | |
Contracts and other work in process (including certain general stock materials) | 19,338 | 75,115 | |
Finished goods | 40,061 | 35,240 | |
Inventories | 176,468 | 193,100 | |
Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs | 600 | ||
Segment work in progress | 19,338 | 75,115 | |
Program inventory impairment | 44,542 | 0 | $ 0 |
K-MAX® program | |||
Schedule of Inventory [Line Items] | |||
Total program inventory | 24,700 | 69,200 | |
Inventory, Noncurrent | 22,500 | ||
SH-2G(I) | |||
Schedule of Inventory [Line Items] | |||
Contracts and other work in process (including certain general stock materials) | 6,200 | 6,000 | |
Segment work in progress | 6,200 | 6,000 | |
Inventory, Noncurrent | 5,300 | ||
U.S. Government contracts | |||
Schedule of Inventory [Line Items] | |||
U.S. Government | 5,835 | 1,985 | |
Commercial and other government contracts | |||
Schedule of Inventory [Line Items] | |||
Commercial and other government contracts | $ 85,436 | $ 61,637 |
Property Plant and Equipment,_3
Property Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 469,695 | $ 449,710 | |
Less accumulated depreciation | (268,089) | (251,888) | |
Property, plant and equipment, net | 201,606 | 197,822 | |
Depreciation | 25,400 | 26,200 | $ 28,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 38,743 | 36,367 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 137,777 | 135,887 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,778 | 16,151 | |
Machinery, office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 260,801 | 249,527 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,596 | 11,778 | |
Assets Held under Finance Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 900 | 800 | $ 900 |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | 9,800 | 6,700 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 3,200 | $ 2,900 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Gross balance at beginning of period | $ 307,240 | $ 313,803 | |
Accumulated impairment | $ (91,865) | (66,559) | (66,559) |
Net balance at beginning of period | 240,681 | 247,244 | |
Goodwill, Acquired During Period | 169,790 | 0 | |
Goodwill, Impairment Loss | (25,306) | 0 | |
Foreign currency translation | (5,311) | (6,563) | |
Net balance at end of period | 379,854 | 240,681 | $ 247,244 |
Percentage of Fair Value Estimated based on Income Approach | 80% | ||
Percentage of Fair Value Estimate based on Market-Based Valuation Method | 20% | ||
Engineered Products | |||
Goodwill [Roll Forward] | |||
Gross balance at beginning of period | 199,306 | $ 205,869 | |
Accumulated impairment | 0 | 0 | 0 |
Net balance at beginning of period | 199,306 | 205,869 | |
Goodwill, Acquired During Period | 169,790 | 0 | |
Goodwill, Impairment Loss | 0 | 0 | |
Foreign currency translation | (5,311) | (6,563) | |
Net balance at end of period | 363,785 | 199,306 | 205,869 |
Precision Products | |||
Goodwill [Roll Forward] | |||
Gross balance at beginning of period | 41,375 | 41,375 | |
Accumulated impairment | (25,306) | 0 | 0 |
Net balance at beginning of period | 41,375 | 41,375 | |
Goodwill, Acquired During Period | 0 | 0 | |
Goodwill, Impairment Loss | 25,306 | 0 | |
Foreign currency translation | 0 | 0 | |
Net balance at end of period | 16,069 | 41,375 | 41,375 |
Structures | |||
Goodwill [Roll Forward] | |||
Gross balance at beginning of period | 66,559 | 66,559 | |
Accumulated impairment | (66,559) | (66,559) | (66,559) |
Net balance at beginning of period | 0 | 0 | |
Goodwill, Acquired During Period | 0 | 0 | |
Goodwill, Impairment Loss | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Net balance at end of period | 0 | $ 0 | 0 |
Aerosystems [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Impairment Loss | (50,300) | ||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 56,100 | ||
KPP-Orlando | |||
Goodwill [Roll Forward] | |||
Goodwill, Impairment Loss | (25,300) | ||
Net balance at end of period | 16,100 | ||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 25,300 | ||
Measurement Input, Long-term Revenue Growth Rate [Member] | |||
Goodwill [Roll Forward] | |||
Fair Value, Sensitivity Analysis | 1% | ||
Measurement Input, Discount Rate [Member] | |||
Goodwill [Roll Forward] | |||
Fair Value, Sensitivity Analysis | 1% |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net (Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 443,145 | $ 194,510 | |
Accumulated Amortization | (70,814) | (56,436) | |
Intangible assets amortization expense | 15,331 | 10,468 | $ 15,666 |
Impairment of Intangible Assets, Finite-lived | 0 | 0 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||
2019 | 26,031 | ||
2020 | 21,610 | ||
2021 | 20,825 | ||
2022 | 20,804 | ||
2023 | 20,547 | ||
Customer lists / relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 363,549 | 127,206 | |
Accumulated Amortization | $ (41,695) | (35,096) | |
Customer lists / relationships | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years | ||
Customer lists / relationships | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 38 years | ||
Developed technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 45,028 | 45,170 | |
Accumulated Amortization | $ (17,508) | (13,591) | |
Developed technologies | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years | ||
Developed technologies | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 20 years | ||
Trademarks / trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 16,681 | 16,982 | |
Accumulated Amortization | $ (3,153) | (2,659) | |
Trademarks / trade names | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 15 years | ||
Trademarks / trade names | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 40 years | ||
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 17,336 | 4,629 | |
Accumulated Amortization | $ (7,974) | (4,617) | |
Noncompete agreements | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 1 year | ||
Noncompete agreements | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 15 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 17 years | ||
Gross Amount | $ 551 | 523 | |
Accumulated Amortization | $ (484) | $ (473) |
Environmental Costs (Schedule o
Environmental Costs (Schedule of Change in Environmental Remediation) (Details) - Accruals and Payable and Other Long Term Liabilities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Net additions to accrual | $ 382 | $ 391 | |
Payments | (504) | (482) | |
Accrual for Environmental Loss Contingencies, Accruals & Payables and Other Long-Term Liabilities | $ 5,836 | $ 5,958 | $ 6,049 |
Environmental Costs (Details)
Environmental Costs (Details) - Bloomfield - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 31, 2008 |
Site Contingency [Line Items] | ||
Undiscounted estimated remediation liability | $ 4,519 | $ 20,800 |
Discount rate | 8% | |
Accrual for environmental loss contingencies | $ 10,300 |
Environmental Costs (Schedule_2
Environmental Costs (Schedule of Future Payments for Environmental Remediation) (Details) - Bloomfield - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 31, 2008 |
Site Contingency [Line Items] | ||
Year One | $ 239 | |
Year Two | 387 | |
Year Three | 0 | |
Year Four | 132 | |
Year Five | 120 | |
Thereafter | 3,641 | |
Total | $ 4,519 | $ 20,800 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt and Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Long-term debt, gross | $ 562,500 | $ 191,876 |
Less current portion | 0 | 0 |
Total excluding current portion | 562,500 | 191,876 |
Debt issuance costs | $ 1,400 | $ 2,500 |
Long-term debt, weighted average interest rate | 5.71% | 3.25% |
Other long-term liabilities | $ 36,280 | $ 39,837 |
2019 | 0 | |
2020 | 562,500 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Revolving Credit Facility | ||
Debt Instrument | ||
Long-term debt, gross | 363,000 | 0 |
Convertible Notes | ||
Debt Instrument | ||
Long-term debt, gross | 199,500 | 191,876 |
Finance Lease Obligations [Member] | ||
Debt Instrument | ||
Other long-term liabilities | $ 2,000 | $ 2,600 |
Debt (Convertible Debt) (Detail
Debt (Convertible Debt) (Details) | 12 Months Ended | |||||
May 12, 2017 USD ($) $ / shares | Dec. 31, 2022 USD ($) Integer shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 02, 2020 USD ($) | May 24, 2017 USD ($) | |
Debt Instrument | ||||||
Outstanding balance under revolving credit agreement | $ 562,500,000 | $ 191,876,000 | ||||
Amortization of debt issuance costs | 2,750,000 | 1,836,000 | $ 1,746,000 | |||
Purchase of call options related to convertible notes | $ 20,500,000 | |||||
Convertible Debt [Abstract] | ||||||
Capped call transaction cap price (in dollars per share) | $ / shares | $ 88.7570 | |||||
Effective interest rate | 5% | |||||
Interest Expense, Debt [Abstract] | ||||||
Accretion of convertible notes discount | $ 0 | 2,957,000 | 2,860,000 | |||
Conversion Feature, Repurchase Price Percentage of Principal Amount | 100% | |||||
2024 Notes | ||||||
Debt Instrument | ||||||
Convertible notes face amount | $ 199,500,000 | 199,500,000 | $ 200,000,000 | |||
Unamortized discount | 0 | 7,624,000 | ||||
Carrying value of liability | 199,500,000 | 191,876,000 | ||||
Amount before overallotment | $ 175,000,000 | |||||
Debt Instrument face amount overallotment | 25,000,000 | |||||
Annual principal interest rate | 3.25% | |||||
Multiple, Debt Instrument | $ 1,000 | $ 1,000 | ||||
Debt Instrument, Repurchased Face Amount | $ 500,000 | |||||
Percent, Debt Instrument, Repurchase Amount | 0.25% | |||||
Equity component | 0 | 20,408,000 | 20,500,000 | |||
Deferred finance costs, gross | (7,400,000) | |||||
Amortization of debt issuance costs | $ 1,000,000 | 1,100,000 | 900,000 | |||
Convertible Debt [Abstract] | ||||||
Conversion rate | 15.3227 | |||||
Conversion price (in dollars per share) | $ / shares | $ 65.2626 | |||||
Contingent conversion price (in dollars per shares) | $ / shares | $ 84.8413 | |||||
Aggregate shares to be issued upon conversion, convertible (in shares) | shares | 3,056,879 | |||||
Convertible debt stock price threshold trigger percent | 130% | |||||
Convertible debt trading days threshold | Integer | 20 | |||||
Convertible, threshold consecutive trading days | Integer | 30 | |||||
Percentage of average of closing price of common stock | 98% | |||||
Debt issuance costs, recorded to APIC | 700,000 | |||||
Debt issuance costs, recorded as contra-debt | 6,700,000 | |||||
Interest Expense, Debt [Abstract] | ||||||
Contractual coupon rate of interest | $ 6,484,000 | 6,484,000 | 6,484,000 | |||
Accretion of convertible notes discount | 0 | 2,957,000 | 2,860,000 | |||
Interest expense | 6,484,000 | 9,441,000 | 9,344,000 | |||
Debt Instrument, Convertible, Debt Instrument | $ 179,500,000 | |||||
Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Outstanding balance under revolving credit agreement | 363,000,000 | 0 | ||||
Amortization of debt issuance costs | $ 1,800,000 | $ 700,000 | $ 700,000 |
Debt (Revolving Credit and Term
Debt (Revolving Credit and Term Loan Agreements) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2024 | Dec. 31, 2022 USD ($) qtr | Dec. 31, 2021 USD ($) | Dec. 13, 2019 USD ($) | May 06, 2015 USD ($) | |
Debt Instrument | |||||
Consolidated Total Net Leverage Ratio | 3.65 | ||||
Interest Rate Swaps, Notational Value | $ 200,000 | ||||
Credit Agreement 2019 [Member] | |||||
Debt Instrument | |||||
Line of credit, amount outstanding | $ 363,000 | ||||
Interest rate at period end | 7.07% | 0% | |||
Consolidated total indebtedness to consolidated EBITDA, ratio | 4 | ||||
Debt instrument, basis points | 1 | ||||
Number of consecutive quarters | qtr | 4 | ||||
Minimum liquidity debt covenant under credit agreement | 50% | ||||
Consolidated Total Leverage Ratio, pre-amendment | 4.50 | ||||
Consolidated Total Leverage Ratio, First Anniversary | 5 | ||||
Consolidated Total Leverage Ratio, Between First and Second Anniversaries | 4.75 | ||||
Consolidated Total Leverage Ratio, Second Anniversary | 4.50 | ||||
Weighted Average Interest Rate | 0.0483 | ||||
Credit Agreement 2019 [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 800,000 | $ 800,000 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 4,400 | $ 3,600 | |||
Line of credit, amount outstanding | 363,000 | ||||
Remaining borrowing capacity excluding letters of credit | 437,000 | ||||
Available borrowing capacity | 385,370 | ||||
Remaining borrowing capacity subject to EBITDA limitations | $ 211,131 | ||||
Credit Agreement 2019 [Member] | Collateral Member One | Line of Credit | |||||
Debt Instrument | |||||
Equity interest In certain foreign subsidiaries | 66% | ||||
Credit Agreement 2019 [Member] | Collateral Member Two | Line of Credit | |||||
Debt Instrument | |||||
Equity interest in domestic subsidiaries | 100% | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Interest Coverage Ratio | 1 | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Commitment fee percentage | 0.15% | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | Letter of Credit | |||||
Debt Instrument | |||||
Commitment fee percentage | 1.125% | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Interest Coverage Ratio | 3 | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Commitment fee percentage | 0.25% | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | Letter of Credit | |||||
Debt Instrument | |||||
Commitment fee percentage | 1.625% | ||||
Credit Agreement 2015 | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 800,000 | ||||
Line of credit, amount outstanding | 0 | ||||
Remaining borrowing capacity excluding letters of credit | 800,000 | ||||
Available borrowing capacity | 707,354 | ||||
Remaining borrowing capacity subject to EBITDA limitations | 409,914 | ||||
Credit Agreement 2015 | Co-lead Arrangers Bank of America Securities LLC, JP Morgan Securities LLC, and RBS Citizens N.A. and a Syndicate of Lenders | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 600,000 | ||||
Letter of Credit | Revolving Credit Facility | |||||
Debt Instrument | |||||
Letters of credit outstanding amount | $ 51,630 | 92,646 | |||
Letter of Credit | Revolving Credit Facility | JPF [Member] | |||||
Debt Instrument | |||||
Letters of credit outstanding amount | $ 46,100 | $ 86,300 | |||
Forecast [Member] | Credit Agreement 2019 [Member] | |||||
Debt Instrument | |||||
Minimum liquidity debt covenant under credit agreement | 100% |
Debt (Debt Issuance Costs) (Det
Debt (Debt Issuance Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 24, 2017 | |
Debt Instrument | ||||
Amortization of debt issuance costs | $ 2,750 | $ 1,836 | $ 1,746 | |
Interest paid | 15,300 | 11,500 | 20,800 | |
2024 Notes | ||||
Debt Instrument | ||||
Deferred finance costs, gross | $ 7,400 | |||
Amortization of debt issuance costs | 1,000 | 1,100 | 900 | |
Revolving Credit Facility | ||||
Debt Instrument | ||||
Amortization of debt issuance costs | $ 1,800 | $ 700 | $ 700 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (111,385) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | $ 22,835 | ||
Other comprehensive (loss) income | (47,036) | 19,436 | $ 20,072 | |
Ending balance | (158,421) | (111,385) | ||
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 8,772 | (717) | ||
Other comprehensive income (loss), before reclassifications | (10,843) | 9,489 | ||
Reclassification to net income | 10,843 | 13,346 | ||
Ending balance | (2,071) | 8,772 | (717) | |
Pension and other post-retirement benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | (120,157) | (130,104) | |
Other comprehensive (loss) income | [1] | (36,193) | 9,947 | |
Ending balance | [1] | (156,350) | (120,157) | $ (130,104) |
Amortization of net loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification to net income | [1] | 3,320 | 3,478 | |
Reclassification from AOCI, tax | 999 | 1,031 | ||
Change in net gain | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification to net income | [1] | (39,513) | 6,469 | |
Reclassification from AOCI, tax | $ (11,889) | $ 1,918 | ||
[1] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 2,548 | $ (5,613) | $ 1,693 |
State | (739) | 1,061 | (3,143) |
Foreign | 441 | 266 | 168 |
Total, Current | 2,250 | (4,286) | (1,282) |
Deferred: | |||
Federal | (15,655) | 17,533 | (5,650) |
State | (3,347) | 2,526 | 899 |
Foreign | 20 | 1,059 | (1,697) |
Total, Deferred | (18,982) | 21,118 | (6,448) |
Income tax (benefit) expense | $ (16,732) | $ 16,832 | $ (7,730) |
Federal statutory rate | 21% | 21% | 21% |
Tax loss and credit carryforwards | $ 17,049 | $ 17,057 | |
Deferred Tax Assets, Valuation Allowance | 5,025 | 6,022 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | $ 15,900 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 1,600 | 2,000 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 1,300 | 1,400 | |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ (94) | $ 2,697 | $ 1,449 |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 9,400 | ||
Deferred tax assets: | |||
Deferred employee benefits | 25,763 | $ 18,380 | |
Tax loss and credit carryforwards | 17,049 | 17,057 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 3,012 | 2,140 | |
Deferred Tax Assets, Tax Deferred Expense, Other | 4,079 | 3,693 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 3,324 | 3,266 | |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Deferred Rent | 1,608 | 2,450 | |
Deferred Tax Assets, Deferred Tax Expense, Inventory | 12,069 | 1,413 | |
Deferred Tax Assets, Deferred Tax Expense, Capitalized Expense | 5,385 | 0 | |
Total deferred tax assets | 72,289 | 48,399 | |
Deferred tax liabilities: | |||
Property, plant and equipment | (10,714) | (11,680) | |
Intangibles | (15,201) | (21,282) | |
Other items | (43) | (205) | |
Deferred Tax Liabilities, Gross | 25,958 | 33,167 | |
Net Deferred Tax Assets Before Valuation Allowance | 46,331 | 15,232 | |
Valuation allowance | (5,025) | (6,022) | |
Net deferred tax assets after valuation allowance | 41,306 | 9,210 | |
Pre-tax income (loss) from foreign operations | (2,000) | 1,500 | $ 36,900 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (94) | 2,697 | $ 1,449 |
8888 Foreign Governments | |||
Deferred tax assets: | |||
Tax loss and credit carryforwards | 4,500 | ||
Deferred tax liabilities: | |||
Valuation allowance | (1,800) | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 1,500 | ||
Domestic Tax Authority | |||
Deferred tax assets: | |||
Tax loss and credit carryforwards | 8,900 | ||
Deferred tax liabilities: | |||
Valuation allowance | (3,200) | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | $ 3,600 | $ 1,200 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ (13,205) | $ 12,707 | $ (16,415) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | (3,105) | 1,459 | (2,208) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 15,900 | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | (1,550) | (1,995) | (821) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (126) | 66 | 610 |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 38 | 308 | 41 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | (94) | 2,697 | 1,449 |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | 0 | 0 | (3,885) |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (88) | $ (259) | $ (2,424) |
Federal statutory rate | 21% | 21% | 21% |
Income tax (benefit) expense | $ (16,732) | $ 16,832 | $ (7,730) |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 1,600 | 2,000 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Amount | 1,300 | 1,400 | |
8888 Foreign Governments | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 1,500 | ||
Domestic Tax Authority | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 3,600 | 1,200 | |
Goodwill | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 0 | 0 | 8,297 |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 0 | 0 | 7,620 |
Entity Classification Election [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 0 | 894 | 0 |
Foreign Derived Intangible Income Benefit [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 158 | 494 | 0 |
Equity awards granted to employees | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 236 | 77 | 209 |
Compensation [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 1,320 | $ 1,372 | $ 215 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 500 | $ 500 | $ 400 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | 3,592 | 3,612 | 3,214 |
Additions based on current year tax positions | 0 | 32 | 481 |
Changes for tax positions of prior years | 52 | ||
Changes for tax positions of prior years | (211) | (3) | |
Settlements | (67) | (86) | |
Settlements | 0 | ||
Balance at December 31 | 3,455 | 3,592 | 3,612 |
Unrecognized tax benefits that would impact effective tax rate | 3,000 | ||
Unrecognized tax benefits, income tax penalties and interest expense ($0.1 million or less) | 200 | 200 | 200 |
Income taxes paid, net | $ 2,700 | $ 4,700 | $ 900 |
Pension Plans (Obligations and
Pension Plans (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Fair value of plan assets at beginning of year | $ 764,009 | ||||
Fair value of plan assets at end of year | 544,642 | $ 764,009 | |||
Noncurrent liabilities | (52,309) | (21,786) | |||
Qualified Pension Plan | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation at beginning of year | 785,795 | 836,531 | |||
Service cost | 3,363 | 1,301 | $ 5,234 | ||
Interest cost | 17,198 | 14,165 | 21,020 | ||
Actuarial liability (gain) loss (1) | [1] | (169,342) | (29,590) | ||
Benefit payments | 40,063 | 36,612 | |||
Projected benefit obligation at end of year | 596,951 | 785,795 | 836,531 | ||
Fair value of plan assets at beginning of year | 764,009 | 766,921 | |||
Actual return on plan assets | (179,304) | 23,700 | |||
Employer contributions | 0 | 10,000 | |||
Fair value of plan assets at end of year | 544,642 | 764,009 | 766,921 | ||
Funded status at end of year | (52,309) | (21,786) | |||
Accumulated benefit obligation | 596,951 | 785,795 | |||
Current liabilities | 0 | [2] | 0 | ||
Noncurrent liabilities | (52,309) | (21,786) | |||
Total | (52,309) | (21,786) | |||
Unrecognized loss (gain) | 206,896 | 159,015 | |||
Amount included in accumulated other comprehensive income | 206,896 | 159,015 | |||
SERP | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation at beginning of year | 5,017 | 7,669 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 86 | 63 | 165 | ||
Actuarial liability (gain) loss (1) | [1] | (737) | (63) | ||
Benefit payments | 534 | 2,652 | |||
Projected benefit obligation at end of year | 3,832 | 5,017 | 7,669 | ||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 534 | 2,652 | |||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | ||
Funded status at end of year | (3,832) | (5,017) | |||
Accumulated benefit obligation | 3,832 | 5,017 | |||
Current liabilities | (520) | (526) | |||
Noncurrent liabilities | (3,312) | (4,491) | |||
Total | (3,832) | (5,017) | |||
Unrecognized loss (gain) | (68) | 730 | |||
Amount included in accumulated other comprehensive income | $ (68) | $ 730 | |||
[1]The actuarial liability (gain) loss amount for the qualified pension plan for 2022 and 2021 was principally due to the effect of changes in the discount rate.[2](1) The current liabilities are included in other current liabilities on the Consolidated Balance Sheets |
Pension Plans (Pension Plan Net
Pension Plans (Pension Plan Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the year | $ 3,363 | $ 1,301 | $ 5,234 |
Interest cost on projected benefit obligation | (17,198) | (14,165) | (21,020) |
Expected return on plan assets | (42,177) | (45,177) | (43,183) |
Recognized net loss | 4,258 | 4,444 | 4,804 |
Additional amount recognized due to curtailment/settlement | 0 | 0 | 0 |
Net pension benefit (income) cost | (17,358) | (25,267) | (12,125) |
Change in net (loss) or gain | 52,139 | (8,113) | (708) |
Amortization of net loss | (4,258) | (4,444) | (4,804) |
Total recognized in other comprehensive (loss) income | 47,881 | (12,557) | (5,512) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | 30,523 | (37,824) | (17,637) |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the year | 0 | 0 | 0 |
Interest cost on projected benefit obligation | (86) | (63) | (165) |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net loss | 61 | 65 | 944 |
Additional amount recognized due to curtailment/settlement | 0 | 211 | 0 |
Net pension benefit (income) cost | 147 | 339 | 1,109 |
Change in net (loss) or gain | (737) | (274) | 703 |
Amortization of net loss | (61) | (65) | (944) |
Total recognized in other comprehensive (loss) income | (798) | (339) | (241) |
Total recognized in net periodic benefit cost and other comprehensive (income) loss | $ (651) | $ 0 | $ 868 |
Pension Plans (Contributions) (
Pension Plans (Contributions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Qualified Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Contributions | $ 0 | $ 10,000 |
Expected contributions during $2,023 | 0 | |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Contributions | 534 | $ 2,652 |
Expected contributions during $2,023 | $ 520 |
Pension Plans (Expected Future
Pension Plans (Expected Future Benefits) (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Oct. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual return on pension plan assets | (23.80%) | |||
Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Year One | $ 43,242 | |||
Year Two | 44,380 | |||
Year Three | 45,138 | |||
Year Four | 45,709 | |||
Year Five | 45,928 | |||
2028-2032 | $ 223,607 | |||
Discount rate | 2.71% | 5.19% | 2.71% | |
Discount rate for calculating net periodic benefit cost | 2.71% | 2.34% | ||
Expected return on plan assets | 5.70% | 6% | ||
SERP | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Year One | $ 520 | |||
Year Two | 487 | |||
Year Three | 454 | |||
Year Four | 421 | |||
Year Five | 388 | |||
2028-2032 | $ 1,486 | |||
Discount rate | 2.33% | 5.04% | 2.33% | |
Discount rate for calculating net periodic benefit cost | 2.29% | 1.78% | 2.33% |
Pension Plans (Plan Assets for
Pension Plans (Plan Assets for Qualified Pension Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value plan assets before accrued income | $ 541,733 | $ 762,186 | ||
Total carrying value | $ 544,642 | 764,009 | ||
Liquidity | 61.30% | |||
Maximize return | 38.70% | |||
Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | $ 544,642 | $ 764,009 | $ 766,921 | |
Expected return on plan assets | 5.70% | 6% | ||
Managers’ securities holdings percentage maximum limit of total market value | 7.50% | |||
Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value plan assets before accrued income | $ 113,660 | $ 112,089 | ||
Total carrying value | 113,767 | 112,056 | ||
Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value plan assets before accrued income | 250,179 | 233,075 | ||
Total carrying value | 252,981 | 234,931 | ||
Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value plan assets before accrued income | 0 | 0 | ||
Defined benefit plan, fair value of plan assets, accrued income | 0 | 0 | ||
Total carrying value | 0 | 0 | ||
Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value plan assets before accrued income | 177,894 | 417,022 | ||
Total carrying value | 177,894 | 417,022 | ||
Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 14,168 | 19,033 | ||
Cash and cash equivalents | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 14,168 | 19,033 | ||
Cash and cash equivalents | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Cash and cash equivalents | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Cash and cash equivalents | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Derivative | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 145 | 2,014 | ||
Derivative | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 145 | 2,014 | ||
Futures contracts - liabilities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | (1,283) | (372) | ||
Futures contracts - liabilities | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | (1,283) | (372) | ||
Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 251,317 | 231,433 | ||
Fixed income securities | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Fixed income securities | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 251,317 | 231,433 | ||
Fixed income securities | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Fixed income securities | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Mutual funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 73,042 | 72,834 | ||
Mutual funds | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 73,042 | 72,834 | ||
Mutual funds | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Mutual funds | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Mutual funds | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Common trust funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | [1] | 177,894 | 417,022 | |
Common trust funds | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Common trust funds | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Common trust funds | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Common trust funds | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 177,894 | 417,022 | ||
Corporate stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 26,450 | 20,222 | ||
Corporate stock | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 26,450 | 20,222 | ||
Corporate stock | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Corporate stock | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Corporate stock | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Other Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 2,909 | 1,823 | ||
Other Income | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 107 | (33) | ||
Other Income | Significant other observable inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 2,802 | 1,856 | ||
Other Income | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Assets | Futures contracts - liabilities | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Assets | Futures contracts - liabilities | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Assets | Futures contracts - liabilities | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Liability | Futures contracts - liabilities | Quoted prices in active markets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Liability | Futures contracts - liabilities | Significant unobservable inputs (Level 3) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | 0 | 0 | ||
Liability | Futures contracts - liabilities | Not Subject to Leveling [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total carrying value | $ 0 | $ 0 | ||
[1]1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. |
Pension Plans (Other Plans) (De
Pension Plans (Other Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximize return | 38.70% | ||
Liquidity | 61.30% | ||
Defined contribution, maximum contribution limit | 5% | ||
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 5.70% | 6% | |
Managers’ securities holdings percentage maximum limit of total market value | 7.50% | ||
Continuing Operations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contributions | $ 6.4 | $ 6.1 | $ 6.7 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Long-Term Liabilities [Line Items] | ||
Supplemental employees' retirement plan ("SERP") | $ 52,309 | $ 21,786 |
Other long-term liabilities | 36,280 | 39,837 |
Other Liabilities | ||
Other Long-Term Liabilities [Line Items] | ||
Supplemental employees' retirement plan ("SERP") | 3,306 | 4,491 |
Deferred compensation | 19,237 | 20,618 |
Long-term incentive plan | 0 | 1,016 |
Noncurrent income taxes payable | 3,288 | 3,365 |
Accrued Environmental Loss Contingencies, Noncurrent, Other Liabilities | 5,376 | 5,548 |
Finance lease liability, noncurrent, statement of financial position | 2,002 | 2,629 |
Other Accrued Liabilities, Noncurrent | $ 3,071 | $ 2,170 |
Commitments and Contingencies (
Commitments and Contingencies (Textuals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2008 | |
Accruals and Payable and Other Long Term Liabilities | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies, payments | $ 504 | $ 482 | |
New Hartford | |||
Loss Contingencies [Line Items] | |||
Accrual for environmental loss contingencies | 2,300 | ||
Accrual for environmental loss contingencies, payments | 1,700 | ||
Accrual for payments due to customer under agreement | 600 | ||
New Hartford | Liabilities, Other Accruals and Payables | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies, Liabilities, Other Accruals & Payables | 100 | ||
Bloomfield | |||
Loss Contingencies [Line Items] | |||
Environmental liability, discounted amount | $ 10,300 | ||
Undiscounted estimated remediation liability | 4,519 | $ 20,800 | |
Discount rate | 8% | ||
Accrual for environmental loss contingencies | $ 10,300 | ||
Accrual for environmental loss contingencies, payments | 15,400 | ||
Accrual for payments due to customer under agreement | 2,100 | ||
Bloomfield | Liabilities, Other Accruals and Payables | |||
Loss Contingencies [Line Items] | |||
Accrual for Environmental Loss Contingencies, Liabilities, Other Accruals & Payables | 300 | ||
Offset Agreement [Member] | |||
Loss Contingencies [Line Items] | |||
Notional Amount of Nonderivative Instruments | $ 220,900 | ||
Notional Value of Contract, Percent | 60% | ||
Loss Contingency, Estimate of Possible Loss | $ 18,800 | ||
Contract with Customer, Liability | $ 18,200 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Liability | $ 3,758 | ||
Finance Lease, Right-of-Use Asset | $ 6,626 | $ 3,830 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net of accumulated depreciation of $268,089 and $251,888, respectively | Property, plant and equipment, net of accumulated depreciation of $268,089 and $251,888, respectively | |
Finance Lease, Liability, Current | $ 1,756 | $ 1,697 | |
Finance Lease, Liability, Noncurrent | $ 2,002 | $ 2,629 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |
Operating Lease, Right-of-Use Asset | $ 7,391 | $ 11,011 | |
Finance Lease, Right-of-Use Asset | 6,626 | 3,830 | |
Lease, Right-of-Use Assets | 14,017 | 14,841 | |
Operating Lease, Liability, Current | 3,332 | 4,502 | |
Operating Lease, Liability, Noncurrent | 4,534 | 7,140 | |
Lease Liabilities | 11,624 | 15,968 | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 3,525 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 2,849 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 996 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 546 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 316 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 41 | ||
Lessee, Operating Lease, Liability, Payments, Due | 8,273 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (407) | ||
Operating Lease, Liability | 7,866 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 1,817 | ||
Finance Lease, Liability, Payments, Due Year Two | 1,208 | ||
Finance Lease, Liability, Payments, Due Year Three | 839 | ||
Finance Lease, Liability, Payments, Due Year Four | 0 | ||
Finance Lease, Liability, Payments, Due Year Five | 0 | ||
Finance Lease, Liability, Payments, Due after Year Five | 0 | ||
Finance Lease, Liability, Payment, Due | 3,864 | ||
Finance Lease, Liability, Undiscounted Excess Amount | (106) | ||
Finance Lease, Liability | 3,758 | ||
Finance Lease, Right-of-Use Asset, Amortization | 894 | 758 | $ 880 |
Finance Lease, Interest Expense | 106 | 139 | 196 |
Operating Lease, Cost | 5,217 | 5,245 | 5,465 |
Short-term Lease, Cost | 328 | 242 | 443 |
Variable Lease, Cost | 461 | 79 | 96 |
Lease, Cost | 7,006 | 6,463 | 7,080 |
Operating Lease, Payments | (6,144) | (6,294) | (5,556) |
Finance Lease, Principal Payments | (1,830) | (2,028) | (1,533) |
Finance Lease, Interest Payment on Liability | (106) | (139) | (196) |
Lessee, Lease Payments | (8,080) | (8,461) | $ (7,285) |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,800 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1,200 | ||
Operating Lease, Weighted Average Remaining Lease Term | 2 years 9 months 18 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 4 months 24 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 2.70% | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 3 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 5 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years | ||
Real Estate [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 3 years | ||
Real Estate [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 8 years | ||
Assets Held under Finance Leases [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 3,200 | 2,900 | |
Finance Lease, Right-of-Use Asset, before Accumulated Amortization | $ 9,800 | $ 6,700 |
Computation of Earnings Per S_3
Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | 100% | |
Net (loss) earnings | $ (46,226) | $ 43,676 | $ (70,434) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 692 |
Net (loss) earnings | $ (46,226) | $ 43,676 | $ (69,742) |
Basic: | |||
Weighted average number of shares outstanding (in shares) | 28,011,000 | 27,865,000 | 27,723,000 |
Income (Loss) from Continuing Operations, Per Basic Share | $ (1.65) | $ 1.57 | $ (2.54) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0 | 0 | 0.02 |
Earnings Per Share, Basic (in dollars per share) | $ (1.65) | $ 1.57 | $ (2.52) |
Diluted(1): | |||
Weighted average number of shares outstanding (in shares) | 28,011,000 | 27,865,000 | 27,723,000 |
Weighted average shares issuable on exercise of dilutive stock options (in shares) | 0 | 26,000 | 0 |
Weighted average number of shares outstanding, diluted (in shares) | 28,011,000 | 27,891,000 | 27,723,000 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ (1.65) | $ 1.57 | $ (2.54) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | 0 | 0.02 |
Diluted earnings per share (in dollars per share) | $ (1.65) | $ 1.57 | $ (2.52) |
2024 Notes | |||
Diluted(1): | |||
Aggregate shares to be issued upon conversion, convertible (in shares) | 3,056,879 | ||
Equity awards granted to employees | |||
Diluted(1): | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 714,474 | 567,741 | 597,904 |
Corporate stock | |||
Diluted(1): | |||
Weighted average shares issuable on exercise of convertible notes (in shares) | 64,767 | 40,979 | |
Stock Options | |||
Diluted(1): | |||
Share-based payment award, vesting period | 5 years |
Share-Based Arrangements (Compe
Share-Based Arrangements (Compensation Arrangements by Share-based Payment Award) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 7,821 | $ 6,687 | $ 4,979 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | 100% | |
2021 PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | ||
Continuing Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 7,800 | $ 6,700 | 5,000 |
Restructuring & Severance | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 200 | $ 400 | $ 400 |
Share-Based Arrangements (Stock
Share-Based Arrangements (Stock Incentive Plan) (Details) | 12 Months Ended | |||
Dec. 31, 2022 shares | Dec. 31, 2021 | Apr. 18, 2018 shares | Apr. 17, 2013 shares | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares authorized under the plan for each award issued, fair value awards | 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | 100% | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting rate | 0.20 | |||
Share-based payment award, vesting period | 5 years | |||
2013 Management Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Number of shares authorized (in shares) | 2,250,000 | 2,250,000 | ||
Number of shares available for grant (in shares) | 899,864 | |||
2013 Management Incentive Plan [Member] | LTIP Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | |||
Minimum [Member] | 2013 Management Incentive Plan [Member] | LTIP Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0% | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | |||
Maximum [Member] | 2013 Management Incentive Plan [Member] | LTIP Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200% | |||
Prior to 2021 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting rate | 0.20 | |||
Share-based payment award, vesting period | 5 years | |||
Beginning in 2021 | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting rate | 0.333 | |||
Share-based payment award, vesting period | 3 years | |||
2022 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Award vesting rate | 0.333 | |||
Share-based payment award, vesting period | 3 years |
Share-Based Arrangements (Sto_2
Share-Based Arrangements (Stock Options Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 746,240 | ||
Granted (in shares) | 39,121 | ||
Exercised (in shares) | (11,842) | ||
Forfeited or expired (in shares) | (62,737) | ||
Outstanding at end of period (in shares) | 710,782 | 746,240 | |
Options, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $ 55.14 | ||
Granted (in dollars per share) | 31.60 | ||
Exercised (in dollars per share) | 41.90 | ||
Forfeited or expired (in dollars per share) | 54.47 | ||
Outstanding at end of period (in dollars per share) | $ 54.12 | $ 55.14 | |
Options, Additional Disclosures [Abstract] | |||
Weighted-average remaining contractual term - options outstanding | 4 years | ||
Aggregate intrinsic value - options outstanding | $ 0 | ||
Weighted-average exercise price - options outstanding (in dollars per share) | $ 54.12 | $ 55.14 | |
Options exercisable (in shares) | 555,216 | ||
Weighted-average remaining contractual term - options exercisable | 3 years 4 months 24 days | ||
Aggregate intrinsic value - options exercisable | $ 0 | ||
Weighted-average exercise price - options exercisable (in dollars per share) | $ 53.91 | ||
Intrinsic value of options exercised | $ 300 | $ 2,400 | |
Options, Fair Value Assumptions and Methodology [Abstract] | |||
Expected option term | 6 years 6 months | 4 years 10 months 24 days | 4 years 10 months 24 days |
Expected volatility | 35.50% | 35.70% | 20.20% |
Risk-free interest rate | 2.90% | 0.50% | 1.40% |
Expected dividend yield | 2% | 1.60% | 1.30% |
Per share fair value of options granted | $ 10.22 | $ 14.89 | $ 10.74 |
Share-Based Arrangements (Restr
Share-Based Arrangements (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Restricted Stock, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 135,351 | ||
Granted (in shares) | 119,003 | ||
Vested (in shares) | (80,539) | ||
Forfeited or expired (in shares) | (14,294) | ||
Outstanding at end of period (in shares) | 159,521 | 135,351 | |
Restricted Stock, Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $ 53.53 | ||
Granted (in dollars per share) | 40.29 | ||
Vested (in dollars per share) | 49.88 | ||
Forfeited or expired (in dollars per share) | 50.46 | ||
Outstanding at end of period (in dollars per share) | $ 45.78 | $ 53.53 | |
Total fair value of restricted stock awards vested | $ 3.4 | $ 2.7 | $ 3.1 |
Nonqualified Stock Options and Restricted Stock | |||
Restricted Stock, Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Tax benefit from compensation expense | 1.1 | $ 1.4 | $ 1.1 |
Compensation cost not yet recognized | $ 9.6 | ||
Compensation cost recognized, period | 1 year 8 months 12 days |
Share-Based Arrangements (Emplo
Share-Based Arrangements (Employee Stock Purchase Plan) (Details) - ESPP Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Market price after discount, purchase date | 85% | ||
Number of shares authorized (in shares) | 2,000,000 | ||
Employee stock issued (in shares) | 64,143 | 51,225 | 47,524 |
Number of shares available for purchase (in shares) | 388,220 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Employee stock issued (in dollars per share) | $ 20.37 | $ 35.67 | $ 38.47 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Employee stock issued (in dollars per share) | $ 43.48 | $ 58.35 | $ 65.92 |
Share-Based Arrangements (Perfo
Share-Based Arrangements (Performance Share Units) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 159,521 | 135,351 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 119,003 | ||
Vested (in shares) | (80,539) | ||
Forfeited or expired (in shares) | (14,294) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 45.78 | $ 53.53 | |
Granted (in dollars per share) | 40.29 | ||
Vested (in dollars per share) | 49.88 | ||
Forfeited or expired (in dollars per share) | $ 50.46 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 172,144 | 70,163 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 117,885 | ||
Vested (in shares) | 0 | ||
Forfeited or expired (in shares) | (15,904) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 60.44 | $ 70.17 | |
Granted (in dollars per share) | 54.87 | ||
Vested (in dollars per share) | 0 | ||
Forfeited or expired (in dollars per share) | $ 60.93 | ||
Expected option term | 2 years 10 months 24 days | 2 years 10 months 24 days | |
Expected volatility | 39.40% | 41.30% | |
Risk-free interest rate | 1.70% | 0.20% | |
Expected dividend yield | 1.90% | 1.40% | |
Per share fair value of options granted | $ 68.10 | $ 84.49 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected option term | 6 years 6 months | 4 years 10 months 24 days | 4 years 10 months 24 days |
Expected volatility | 35.50% | 35.70% | 20.20% |
Risk-free interest rate | 2.90% | 0.50% | 1.40% |
Expected dividend yield | 2% | 1.60% | 1.30% |
Per share fair value of options granted | $ 10.22 | $ 14.89 | $ 10.74 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | $ 1,547 | $ 2,008 | $ 1,246 |
Additions Charged to Costs and Expenses / Provision Benefit | 1,301 | 575 | 1,391 |
Additions Other | 67 | 0 | 82 |
Deductions | (849) | (1,036) | (711) |
Balance End of Period | 2,066 | 1,547 | 2,008 |
Valuation Allowance of Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | 6,022 | 10,216 | 8,142 |
Additions Charged to Costs and Expenses / Provision Benefit | 1,263 | 910 | 1,166 |
Additions Other | 2,260 | 908 | |
Deductions | (5,104) | ||
Balance End of Period | $ 5,025 | $ 6,022 | $ 10,216 |
Uncategorized Items - kamn-2022
Label | Element | Value |
Cash, Including Discontinued Operations | us-gaap_CashIncludingDiscontinuedOperations | $ 471,540,000 |