Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 29, 2023 | Oct. 27, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 29, 2023 | |
Document Transition Report | false | |
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 ($1 par value) | |
Trading Symbol | KAMN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,256,389 | |
Entity Central Index Key | 0000054381 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 30,065 | $ 24,154 |
Accounts receivable, net | 106,647 | 87,659 |
Contract assets | 100,709 | 113,182 |
Inventories | 201,439 | 172,383 |
Income tax refunds receivable | 4,680 | 14,843 |
Other current assets | 21,063 | 16,114 |
Total current assets | 464,603 | 428,335 |
Property, plant and equipment, net of accumulated depreciation of $283,272 and $268,089, respectively | 203,704 | 201,606 |
Operating Lease, Right-of-Use Asset | 6,325 | 7,391 |
Goodwill | 380,243 | 379,854 |
Other intangible assets, net | 352,208 | 372,331 |
Deferred income taxes | 45,878 | 47,385 |
Other assets | 54,831 | 51,207 |
Total assets | 1,507,792 | 1,488,109 |
Current liabilities: | ||
Long-Term Debt, Current Maturities | 198,854 | 0 |
Accounts payable – trade | 45,890 | 48,277 |
Accrued salaries and wages | 31,027 | 31,395 |
Contract liabilities, current portion | 7,884 | 4,081 |
Operating Lease, Liability, Current | 3,110 | 3,332 |
Income taxes payable | 2,214 | 393 |
Other current liabilities | 45,540 | 39,097 |
Total current liabilities | 334,519 | 126,575 |
Long-term debt, excluding current portion, net of debt issuance costs | 382,000 | 561,061 |
Deferred income taxes | 6,490 | 6,079 |
Underfunded pension | 49,813 | 52,309 |
Contract liabilities, noncurrent portion | 19,653 | 20,515 |
Operating Lease, Liability, Noncurrent | 3,452 | 4,534 |
Other Liabilities, Noncurrent | 32,570 | 36,280 |
Commitments and contingencies (Note 14) | ||
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; 30,910,177 and 30,640,068 shares issued, respectively | 30,910 | 30,640 |
Additional paid-in capital | 251,843 | 245,436 |
Retained earnings | 674,271 | 685,234 |
Accumulated other comprehensive income (loss) | $ (154,794) | $ (158,421) |
Treasury Stock, Common, Shares | 2,663,437 | 2,607,841 |
Less 2,663,437 and 2,607,841 shares of common stock, respectively, held in treasury, at cost | $ (122,935) | $ (122,133) |
Total shareholders’ equity | 679,295 | 680,756 |
Total liabilities and shareholders’ equity | $ 1,507,792 | $ 1,488,109 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 183,031 | $ 172,004 | $ 572,731 | $ 490,818 |
Cost of sales | 117,977 | 117,326 | 368,246 | 334,008 |
Program Inventory Impairment | 417 | 0 | 1,013 | 0 |
Gross profit | 64,637 | 54,678 | 203,472 | 156,810 |
Selling, general and administrative expenses | 42,501 | 49,009 | 127,765 | 127,980 |
Research and Development Expense | 4,022 | 3,937 | 15,122 | 14,265 |
Amortization of Intangible Assets | 5,593 | 3,118 | 19,937 | 8,024 |
Restructuring and severance costs | 571 | (243) | 3,033 | 2,853 |
Gain (Loss) on Disposition of Business | 0 | (457) | 0 | (457) |
Net loss on disposition of assets | 78 | 15 | 496 | 71 |
Operating income (loss) | 11,872 | (701) | 37,119 | 4,074 |
Interest expense, net | 9,405 | 3,614 | 29,349 | 8,088 |
Non-service pension and post-retirement benefit income | (310) | (5,142) | (930) | (15,429) |
Other expense, net | 849 | 1,221 | 377 | 2,415 |
Earnings (loss) before income taxes | 1,928 | (394) | 8,323 | 9,000 |
Income tax expense (benefit) | 462 | (114) | 2,371 | 1,631 |
Net earnings (loss) | $ 1,466 | $ (280) | $ 5,952 | $ 7,369 |
Earnings per share: | ||||
Basic earnings per share (in usd per share) | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 |
Diluted earnings per share from continuing operations | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 |
Basic (in shares) | 28,247 | 28,037 | 28,189 | 27,997 |
Diluted (in shares) | 28,350 | 28,037 | 28,324 | 28,076 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 1,466 | $ (280) | $ 5,952 | $ 7,369 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (5,766) | (9,875) | (2,297) | (25,347) |
Change in pension and post-retirement benefit plan liabilities, net of tax expense of $445 and $259 and $1,336 and $756, respectively | 1,478 | 821 | 4,434 | 2,483 |
Other Comprehensive Income, Other, Net of Tax | (42) | 0 | 1,490 | (7) |
Other comprehensive (loss) income | (4,330) | (9,054) | 3,627 | (22,871) |
Comprehensive (loss) income | $ (2,864) | $ (9,334) | $ 9,579 | $ (15,502) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Cash Flows (Unaudited) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Statement of Cash Flows [Abstract] | ||
Net earnings (loss) | $ 5,952 | $ 7,369 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 38,244 | 27,037 |
Amortization of debt issuance costs | 2,985 | 1,882 |
Provision for doubtful accounts | 1,495 | 619 |
Gain (Loss) on Disposition of Business | 0 | (457) |
Net loss on disposition of assets | 496 | 71 |
Program Inventory Impairment | 1,013 | 0 |
Net loss on derivative instruments | 620 | 2,670 |
Stock compensation expense | 5,190 | 6,145 |
Non-cash consideration received for blade exchange | (1,309) | (827) |
Deferred income taxes | 212 | 1,600 |
Changes in assets and liabilities, excluding effects of acquisitions/divestitures: | ||
Accounts receivable | (20,736) | (23,640) |
Increase (Decrease) in Contract with Customer, Asset | 12,467 | (5,405) |
Inventories | (30,952) | (19,478) |
Income tax refunds receivable | 10,158 | (2,401) |
Operating Right-of-Use Assets | 1,052 | 3,347 |
Other assets | (3,802) | (3,230) |
Accounts payable - trade | (2,423) | (8,780) |
Contract liabilities | 2,951 | 4,246 |
Operating Lease Liabilities | (1,290) | (3,296) |
Other current liabilities | 5,057 | (4,591) |
Income taxes payable | 1,867 | (227) |
Pension liabilities | 3,005 | (13,309) |
Increase (Decrease) in Other Noncurrent Liabilities | (2,579) | (3,045) |
Net cash provided by operating activities | 29,673 | (33,700) |
Cash flows from investing activities: | ||
Expenditures for property, plant & equipment | (19,864) | (17,626) |
Payments to Acquire Investments | 0 | (10,000) |
Payments to Acquire Businesses, Net of Cash Acquired | 1,487 | 441,340 |
Other, net | (708) | 2,438 |
Net cash used in investing activities | (22,059) | (466,528) |
Cash flows from financing activities: | ||
Proceeds from (Repayments of) Lines of Credit | 19,000 | 412,000 |
Purchase of treasury shares | (780) | (762) |
Dividends paid | (16,871) | (16,760) |
Payments of Debt Issuance Costs | (4,833) | (4,285) |
Other, net | 1,903 | 1,725 |
Net cash provided by (used in) financing activities | (1,581) | 391,918 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 6,033 | (108,310) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (122) | (1,132) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 30,065 | |
Cash and cash equivalents at end of period | $ 30,065 | $ 31,358 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals)) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 283,272 | $ 268,089 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,910,177 | 30,640,068 |
Treasury Stock, Common, Shares | 2,663,437 | 2,607,841 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ 445 | $ 259 | $ 1,336 | $ 756 |
Net earnings (loss) | 1,466 | (280) | 5,952 | 7,369 |
Foreign currency translation adjustments | (5,766) | (9,875) | (2,297) | (25,347) |
Change in pension and post-retirement benefit plan liabilities, net of tax expense of $445 and $259 and $1,336 and $756, respectively | 1,478 | 821 | 4,434 | 2,483 |
Other Comprehensive Income, Other, Net of Tax | (42) | 0 | 1,490 | (7) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (502) | 0 | (808) | (7) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (4,330) | (9,054) | 3,627 | (22,871) |
Comprehensive (loss) income | (2,864) | (9,334) | 9,579 | (15,502) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | $ (13) | $ 0 | $ 449 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION In the opinion of management, the condensed consolidated financial information reflects all adjustments necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented, but do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. The condensed consolidated financial statements for the period ended September 29, 2023 should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company has a calendar year-end; however, its first three fiscal quarters follow a 13-week convention, with each quarter ending on a Friday. The third quarters for 2023 and 2022 ended on September 29, 2023, and September 30, 2022, respectively. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections | 9 Months Ended |
Sep. 29, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Change in Accounting Estimate | ACCOUNTING CHANGES Revision of Previously Issued Consolidated Financial Statements During the three-month fiscal period ended June 30, 2023, the Company identified errors related to (1) the accounting for certain labor costs at one business in the Precision Products segment and (2) the net realizable value on certain portions of the Company's inventory at another business in the Structures segment, each resulting in an overstatement of inventory and an understatement of cost of sales and related tax impacts. The Company concluded that these errors were not material, either individually or in aggregate, to previously issued consolidated financial statements; however, the Company has determined it was appropriate to revise its previously issued consolidated financial statements as of December 31, 2022, and for the years ended December 31, 2022 and 2021 and its unaudited condensed consolidated financial statements as of and for the quarters and year-to-date fiscal periods ended July 1, 2022, September 30, 2022 and March 31, 2023. Accordingly, the accompanying financial statements and relevant footnotes to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q have been revised to correct for these errors. The Company will present the revision of its previously issued consolidated financial statements for the years ended December 31, 2022 and 2021 in connection with the future filing of its Annual Report on Form 10-K for the year ended December 31, 2023. Additionally, the Company will present the revision of its previously issued unaudited condensed consolidated financial statements for the quarter ended March 31, 2023 with the future filing of its Quarterly Report on Form 10-Q for the quarter ending March 29, 2024. The revision to the accompanying unaudited condensed consolidated balance sheet, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income and condensed consolidated statement of cash flows are as follows. There were no changes to the consolidated statement of stockholders' equity that have not otherwise been reflected in the condensed consolidated balance sheets, condensed consolidated statements of operations, and condensed consolidated statements of comprehensive income as detailed in the tables below. Condensed Consolidated Balance Sheet In thousands December 31, 2022 As Previously Reported Adjustments As Corrected Assets Inventories (1) $ 176,468 $ (4,085) $ 172,383 Income tax refunds receivable 13,981 862 14,843 Total $ 190,449 $ (3,223) $ 187,226 Shareholders' equity Retained earnings $ 688,457 $ (3,223) $ 685,234 (1) At December 31, 2022, the adjustments to inventories consisted of an adjustment of $2.5 million for certain labor costs at a business within the Precision Products segment and an adjustment of $1.6 million for the net realizable value on certain portions of the inventory at a business within the Structures segment. 2. ACCOUNTING CHANGES (CONTINUED) Revision of Previously Issued Consolidated Financial Statements - continued Condensed Consolidated Statements of Operations In thousands, except per share amounts For the Three Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Cost of sales $ 116,179 $ 1,147 $ 117,326 Income tax expense 128 (242) (114) Net earnings 625 (905) (280) Basic earnings per share $ 0.02 $ (0.03) $ (0.01) Diluted earnings per share $ 0.02 $ (0.03) $ (0.01) For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Cost of sales $ 332,299 $ 1,709 $ 334,008 Income tax expense 1,992 (361) 1,631 Net earnings 8,717 (1,348) 7,369 Basic earnings per share $ 0.31 $ (0.05) $ 0.26 Diluted earnings per share $ 0.31 $ (0.05) $ 0.26 Condensed Consolidated Statements of Comprehensive Income (Loss) In thousands For the Three Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Comprehensive (loss) income $ (8,429) $ (905) $ (9,334) For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Comprehensive (loss) income $ (14,154) $ (1,348) $ (15,502) Condensed Consolidated Statement of Cash Flows In thousands For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Net earnings $ 8,717 $ (1,348) $ 7,369 Inventories (21,187) 1,709 (19,478) Income tax refunds receivable (2,040) (361) (2,401) Net cash used in operating activities (33,700) — (33,700) |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 29, 2023 | |
Acquisitions [Abstract] | |
Business Combination Disclosure | . BUSINESS COMBINATIONS AND INVESTMENTS 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, of Avon, Ohio, at a purchase price of $442.8 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. 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 $ 7,635 Contract assets 171 Inventories 11,246 Property, plant and equipment 7,686 Goodwill 171,277 Other intangible assets (1) 250,500 Contract costs, noncurrent 41 Liabilities (5,729) Net assets acquired 442,827 Less cash received — Net consideration $ 442,827 (1) Refer to Note 3, Business Combinations and Investments , in the Annual Report on Form 10-K for the year ended December 31, 2022 for information on the Company's determination of the fair value of identifiable intangible assets. During the first quarter of 2023, the Company paid Parker an additional $1.5 million for the working capital adjustment, which resulted in an increase to goodwill. All purchase price allocations were finalized within the one-year measurement period and no further adjustments are expected. 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. Pro Forma Information (Unaudited) 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. In the three-month and nine-month fiscal periods ended September 29, 2023, Aircraft Wheel and Brake contributed $16.9 million and $56.6 million of revenue, respectively, and $1.9 million and $5.8 million of operating income, respectively. Aircraft Wheel and Brake contributed $2.7 million of revenue and $1.1 million of operating loss for both the three-month and nine-month fiscal periods ended September 30, 2022. The following table reflects the pro forma operating results of the Company for the three-month and nine-month fiscal periods ended September 30, 2022 which gives effect to the Acquisition as if the company had been acquired on January 1, 2021. 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 this acquisition been effective January 1, 2021, 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 acquisition. 3. BUSINESS COMBINATIONS AND INVESTMENTS (CONTINUED) Aircraft Wheel & Brake - continued Pro Forma Information (Unaudited) - continued For the Three Months Ended For the Nine Months Ended September 30, September 30, In thousands Net sales 188,554 543,817 Net earnings 8,949 17,035 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 this acquisition. Material pro forma adjustments directly attributable to this acquisition for the three-month and nine-month fiscal period ended September 30, 2022 include: • Increases in depreciation of $0.1 million and $0.5 million relating to fixed assets acquired; • Increases in amortization of $1.8 million and $7.9 million relating to intangible assets acquired; • Decreases in selling, general and administrative costs of $10.1 million and $12.1 million relating to transaction costs for this acquisition; • Increases in interest expense of $3.4 million and $11.4 million relating to debt financing in connection with this acquisition; and • Increase in income tax expense of $1.0 million for the three-month fiscal period and decrease in income tax expense of $1.6 million for the nine-month fiscal period relating to the above adjustments. |
Segment and Geographic Informat
Segment and Geographic Information (Notes) | 9 Months Ended |
Sep. 29, 2023 | |
Revenue [Abstract] | |
Segment Reporting Disclosure | . REVENUE AND 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 Chief Operating Decision Maker ("CODM"), reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments. The Engineered Products segment serves the aerospace and defense, industrial and medical markets providing sophisticated proprietary aircraft bearings and components; super precision, miniature ball bearings; proprietary spring energized seals, springs and contacts; and wheels, brakes and related hydraulic components for helicopters and fixed-wing and unmanned aerial vehicle ("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. REVENUE AND SEGMENT INFORMATION (CONTINUED) Summarized financial information by business segment is as follows: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Net sales: Engineered Products $ 123,598 $ 92,052 $ 380,437 $ 263,269 Precision Products 27,098 46,282 93,128 135,098 Structures 32,335 33,670 99,166 92,451 Net sales $ 183,031 $ 172,004 $ 572,731 $ 490,818 Operating income (loss): Engineered Products $ 29,026 $ 14,156 $ 78,924 $ 40,665 Precision Products (3,241) 5,296 (3,996) 10,725 Structures (3,020) (642) (3,769) (2,121) Corporate expense (9,828) (20,196) (29,499) (42,728) Other unallocated (expenses) income, net (1) (1,065) 685 (4,541) (2,467) Operating income (loss) $ 11,872 $ (701) $ 37,119 $ 4,074 Interest expense, net 9,405 3,614 29,349 8,088 Non-service pension and post-retirement benefit income, net (310) (5,142) (930) (15,429) Other expense, net 849 1,221 377 2,415 Earnings (loss) before income taxes $ 1,928 $ (394) $ 8,323 $ 9,000 (1) Other unallocated expenses, net include program inventory impairment, restructuring and severance costs and net loss on disposition of assets. 4. REVENUE AND SEGMENT INFORMATION (CONTINUED) Disaggregation of Revenue The following tables disaggregate segment revenue by major product line: For the Three Months Ended September 29, 2023 Engineered Products Precision Products Structures Total In thousands Defense $ 18,859 $ 7,541 $ 17,324 $ 43,724 Safe and Arm Devices — 12,890 — 12,890 Commercial, Business & General Aviation 61,550 5,459 13,374 80,383 Medical 23,005 — 1,637 24,642 Industrial & Other 20,184 1,208 — 21,392 Total revenue $ 123,598 $ 27,098 $ 32,335 $ 183,031 For the Three Months Ended September 30, 2022 Engineered Products Precision Products Structures Total In thousands Defense $ 13,356 $ 5,171 $ 20,805 $ 39,332 Safe and Arm Devices — 37,460 — 37,460 Commercial, Business & General Aviation 39,852 2,457 11,006 53,315 Medical 21,782 — 1,859 23,641 Industrial & Other 17,062 1,194 — 18,256 Total revenue $ 92,052 $ 46,282 $ 33,670 $ 172,004 For the Nine Months Ended September 29, 2023 Engineered Products Precision Products Structures Total In thousands Defense $ 57,362 $ 20,502 $ 55,461 $ 133,325 Safe and Arm Devices — 49,486 — 49,486 Commercial, Business & General Aviation 190,471 19,548 38,232 248,251 Medical 73,463 — 5,473 78,936 Industrial & Other 59,141 3,592 — 62,733 Total revenue $ 380,437 $ 93,128 $ 99,166 $ 572,731 For the Nine Months Ended September 30, 2022 Engineered Products Precision Products Structures Total In thousands Defense $ 32,351 $ 17,122 $ 53,158 $ 102,631 Safe and Arm Devices — 96,345 — 96,345 Commercial, Business & General Aviation 109,874 18,119 33,138 161,131 Medical 65,614 — 6,155 71,769 Industrial & Other 55,430 3,512 — 58,942 Total revenue $ 263,269 $ 135,098 $ 92,451 $ 490,818 4. REVENUE AND SEGMENT INFORMATION (CONTINUED) Disaggregation of Revenue - continued The following table disaggregates total revenue by product types. For the Three Months Ended For the Three Months Ended September 29, 2023 September 30, 2022 Engineered Products Precision Products Structures Total Engineered Products Precision Products Structures Total Original Equipment Manufacturer 47 % 3 % 18 % 68 % 40 % 2 % 19 % 61 % Aftermarket 20 % 5 % — % 25 % 14 % 3 % — % 17 % Safe and Arm Devices — % 7 % — % 7 % — % 22 % — % 22 % Total revenue 67 % 15 % 18 % 100 % 54 % 27 % 19 % 100 % For the Nine Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 Engineered Products Precision Products Structures Total Engineered Products Precision Products Structures Total Original Equipment Manufacturer 47 % 3 % 17 % 67 % 41 % 4 % 19 % 64 % Aftermarket 20 % 4 % — % 24 % 12 % 4 % — % 16 % Safe and Arm Devices — % 9 % — % 9 % — % 20 % — % 20 % Total revenue 67 % 16 % 17 % 100 % 53 % 28 % 19 % 100 % Disaggregation of Research and Development Costs The following table presents research and development costs by segment: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Engineered Products $ 1,620 $ 2,106 $ 6,738 $ 6,470 Precision Products 2,387 1,812 8,308 7,599 Structures 15 19 76 196 Total research and development costs $ 4,022 $ 3,937 $ 15,122 $ 14,265 4. REVENUE AND SEGMENT INFORMATION (CONTINUED) Other For contracts in which revenue is recognized 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. Net changes in revenue associated with cost growth on the Company's over time contracts were as follows: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Net change in revenue due to change in profit estimates $ (3,123) $ (892) $ (5,987) $ 580 In the three-month and nine-month fiscal periods ended September 29, 2023, the net decreases in revenue were primarily related to cost growth on certain structures and precision products contracts. In the nine-month fiscal period, this decrease was partially offset by favorable cost performance on the joint programmable fuze ("JPF") contract with the U.S. Government ("USG"). In the three-month fiscal period ended September 30, 2022, the net decrease in revenue was primarily related to cost growth on certain structures programs and legacy fuzing contracts, partially offset by favorable cost performance on memory and measuring programs. In the nine-month fiscal period ended September 30, 2022, the net increase in revenue was primarily related to favorable cost performance on the JPF contract with the USG, partially offset by cost growth on certain structures programs and legacy fuzing contracts. 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. Backlog at September 29, 2023 and December 31, 2022, and the portion of backlog the Company expects to recognize revenue on over the next twelve months is as follows: September 29, 2023 (1) December 31, 2022 (in thousands) Engineered Products $ 363,228 $ 322,452 Precision Products 100,712 134,903 Structures 254,633 263,581 Total Backlog $ 718,573 $ 720,936 (1) The Company expects to recognize revenue on approximately 69% of backlog as of September 29, 2023 over the next twelve months. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 29, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | . RESTRUCTURING AND SEVERANCE COSTS Restructuring and severance costs are included in restructuring and severance costs on the Company's Condensed Consolidated Statements of Operations and other unallocated expenses, net in Note 4, Revenue and Segment 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 three-month and nine-month fiscal periods ended September 29, 2023, the Company incurred $0.6 million and $3.0 million, respectively, in severance costs associated with these actions. Of this amount, $0.3 million was related to share-based compensation expense in the nine-month fiscal period ended September 29, 2023. No share-based compensation expense was recorded to restructuring and severance costs in the three-month fiscal period ended September 29, 2023. The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other (1) Total In thousands Restructuring accrual balance at December 31, 2022 (2) $ 6,629 $ — $ 6,629 Provision 2,147 625 2,772 Cash payments (5,767) (625) (6,392) Changes in foreign currency exchange rates (2) — (2) Restructuring accrual balance at September 29, 2023 $ 3,007 $ — $ 3,007 (1) Includes costs associated with the consolidation of facilities. (2) Of the above accrual balance, $1.0 million was included in other long-term liabilities on the Company's Condensed Consolidated Balance Sheets as of December 31, 2022. The remainder was included in other current liabilities. Other Matters The Company identified workforce reductions and other reductions in certain general and administrative expenses, which resulted in $1.9 million in restructuring and severance costs in the nine-month fiscal period ended September 30, 2022. In conjunction with the sale of the Company's Mexico operations in the third quarter of 2022, the Company reversed severance costs previously accrued, which were partially offset by costs incurred in the period. This resulted in a net reduction to restructuring and severance costs of $0.2 million for the three-month fiscal period ended September 30, 2022. In addition to the restructuring and severance costs discussed above, in the nine-month fiscal period ended September 30, 2022, the Company incurred $1.0 million in other severance expense. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 29, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: September 29, December 31, In thousands Trade receivables $ 42,931 $ 31,126 U.S. Government contracts: Billed 16,333 14,150 Cost and accrued profit - not billed 2,460 661 Commercial and other government contracts Billed 46,751 41,520 Cost and accrued profit - not billed 1,069 2,268 Less allowance for doubtful accounts (2,897) (2,066) Accounts receivable, net $ 106,647 $ 87,659 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 nine-month fiscal period ended September 29, 2023: In thousands Balance at December 31, 2022 $ (2,066) Provision (1,495) Amounts written off 307 Recoveries 356 Changes in foreign currency exchange rates 1 Balance at September 29, 2023 $ (2,897) There were no amounts included in accounts receivable, net for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at September 29, 2023 and December 31, 2022. |
Contract Assets, Contract Costs
Contract Assets, Contract Costs and Contract Liabilities | 9 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets, Contract Costs and Contract Liabilities | Activity related to contract assets, contract costs and contract liabilities was as follows: September 29, December 31, 2022 $ Change % Change In thousands Contract assets $ 100,709 $ 113,182 $ (12,473) (11.0) % Contract costs, current portion (1) $ 139 $ 695 $ (556) (80.0) % Contract costs, noncurrent portion (2) $ 643 $ 673 $ (30) (4.5) % Contract liabilities, current portion $ 7,884 $ 4,081 $ 3,803 93.2 % Contract liabilities, noncurrent portion $ 19,653 $ 20,515 $ (862) (4.2) % (1) Contract costs, current portion are included within other current assets on the Company's Condensed Consolidated Balance Sheets. (2) Contract costs, noncurrent portion are included within other assets on the Company's Condensed Consolidated Balance Sheets. Contract Assets The decrease in contract assets was primarily due to amounts billed in the current period on the JPF program and higher unliquidated progress payments on our legacy fuzing contracts, partially offset by the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations for work performed and not yet billed on various contracts. There were no significant impairment losses related to the Company's contract assets during the three-month and nine-month fiscal periods ended September 29, 2023 and September 30, 2022. There were no amounts included in contract assets for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at September 29, 2023 and December 31, 2022. Contract Costs At September 29, 2023 and December 31, 2022, costs to fulfill a contract were $0.8 million and $1.4 million, respectively. These amounts were included in other current assets and other assets on the Company's Condensed Consolidated Balance Sheets at September 29, 2023 and December 31, 2022. There were no costs to obtain a contract at September 29, 2023 and December 31, 2022. Contract costs, current portion at September 29, 2023 decreased compared to the balance at December 31, 2022. This was primarily attributable to the write-off of contract costs on the A-10 contract and amortization of contract costs. For the three-month and nine-month fiscal periods ended September 29, 2023, amortization of contract costs was $0.1 million and $0.3 million, respectively. For the three-month and nine-month fiscal periods ended September 30, 2022, amortization of contract costs was $0.2 million and $0.5 million, respectively. Contract costs, noncurrent portion at September 29, 2023 remained relatively flat when compared to the balance at December 31, 2022. Contract Liabilities Contract liabilities, current portion at September 29, 2023 increased compared to the balance at December 31, 2022, primarily driven by the FireBurst TM enhanced fuzing capability program and SH-2G program. Revenue recognized related to contract liabilities, current portion was $1.2 million and $1.7 million in the three-month and nine-month fiscal periods ended September 29, 2023, respectively. Revenue recognized related to contract liabilities, current portion was $0.2 million and $1.4 million in the three-month and nine-month fiscal periods ended September 30, 2022, respectively. 7. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES (CONTINUED) Contract Liabilities - continued Contract liabilities, noncurrent portion at September 29, 2023 decreased compared to the balance at December 31, 2022 due to the reclassification of liabilities on the FireBurst TM enhanced fuzing capability program to contract liabilities, current portion. For the three-month and nine-month fiscal periods ended September 29, 2023 and September 30, 2022, the Company did not recognize revenue against contract liabilities, noncurrent portion. Refer to Note 14, Commitments and Contingencies , for further information on the Company's offset agreements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table presents the carrying value and fair value of financial instruments that are not carried at fair value: September 29, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 581,500 $ 547,294 $ 562,500 $ 547,393 (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 September 29, 2023 and December 31, 2022 included $5.4 million and $0.1 million, respectively, of Level 1 money market funds. Recurring Fair Value Measurements The Company holds derivative instruments for foreign exchange contracts and interest rate swaps that are measured at fair value using observable market inputs such as forward rates and its counterparties’ credit risks. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy. At September 29, 2023, the interest rate swaps were included in other assets and other long-term assets on the Company's Condensed Consolidated Balance Sheets. At September 29, 2023, the foreign exchange contracts were included in other current liabilities on the Company's Condensed Consolidated Balance Sheets. At December 31, 2022, the foreign exchange contracts were included in other current assets and other current liabilities on the Company's Condensed Consolidated Balance Sheets. Based on the Company's continued ability to trade and enter into forward contracts and interest rate swaps, the Company considers the markets for its fair value instruments to be active. The Company evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of September 29, 2023, such credit risks had not had an adverse impact on the fair value of these instruments. 8. FAIR VALUE MEASUREMENTS (CONTINUED) Nonrecurring Fair Value Measurements In the three-month and nine-month fiscal periods ended September 29, 2023, the Company incurred impairment charges of $0.4 million and $1.0 million, respectively, associated with the write-off of inventory related to the K-MAX® program. Refer to Note 10, Inventories , for further information. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in foreign currency exchange rates and interest rates. Derivative financial instruments are recognized on the Condensed Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income (loss) 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. Cash Flow Hedges Interest Rate Swaps The Company's Credit Agreement (as defined in Note 12, Debt ) contains floating rate obligations and is subject to interest rate fluctuations. At September 29, 2023, the Company has interest rate swap agreements with a notional value of $175.0 million, 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 the Secured Overnight Financing Rate ("SOFR"). These interest rate swaps were not material to the Company's Condensed Consolidated Financial Statements as of and for the three-month and nine-month fiscal periods ended September 29, 2023. Over the next twelve months, the income related to cash flow hedges expected to be reclassified from other comprehensive income is $1.6 million. Forward Exchange Contracts The Company holds forward exchange contracts designed to hedge forecasted transactions denominated in foreign currencies and to minimize the impact of foreign currency fluctuations on the Company’s earnings and cash flows. These contracts were not material to the Company's Condensed Consolidated Balance Sheets as of September 29, 2023 and December 31, 2022. The activity related to these contracts was not material to the Company's Condensed Consolidated Financial Statements for the three-month and nine-month fiscal periods ended September 29, 2023 and September 30, 2022. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consisted of the following: September 29, December 31, In thousands Raw materials $ 35,228 $ 24,572 Contracts and other work in process (including certain general stock materials) 127,779 107,803 Finished goods 38,432 40,008 Inventories $ 201,439 $ 172,383 There were no amounts included in inventories associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at September 29, 2023 and December 31, 2022. 10. INVENTORIES (CONTINUED) At September 29, 2023 and December 31, 2022, $22.9 million and $24.7 million, respectively, of K-MAX® inventory was included in contracts and other work in process inventory and finished goods on the Company's Condensed Consolidated Balance Sheets. Management believes that approximately $9.5 million of the K-MAX® inventory will be sold after September 30, 2024, based upon the requirements to support the fleet for the foreseeable future. In December 2022, the Company began a review of all businesses and programs to increase efficiencies, improving working capital management and focus on sustainable and consistent revenue and profit generating activities. As a result, the Company determined it would discontinue K-MAX® aircraft production and wrote off $44.5 million of inventory associated with the program as of December 31, 2022. Additionally, production material for the K-MAX® includes long lead parts, which the Company evaluates for alternative use as received. Any write-offs related to these parts are not expected to have a material adverse effect on the Company's results of operations or financial position. Inventory write-offs for the three-month and nine-month fiscal periods ended September 29, 2023 were $0.4 million and $1.0 million, respectively. At September 29, 2023 and December 31, 2022, $5.4 million and $6.2 million, respectively, of SH-2G(I) inventory was included in contracts and other work in process inventory on the Company's Condensed Consolidated Balance Sheets. Management believes that approximately $4.1 million of the SH-2G(I) inventory will be sold after September 30, 2024. This balance represents spares requirements and inventory to be used on SH-2G programs. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 9 Months Ended |
Sep. 29, 2023 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: Engineered Products Precision Products Structures Total In thousands Gross balance at December 31, 2022 $ 363,785 $ 41,375 $ 66,559 $ 471,719 Accumulated impairment — (25,306) (66,559) (91,865) Net balance at December 31, 2022 363,785 16,069 — 379,854 Additions 1,487 — — 1,487 Impairments — — — — Foreign currency translation (1,098) — — (1,098) Ending balance at September 29, 2023 $ 364,174 $ 16,069 $ — $ 380,243 Accumulated impairment at end of period $ — $ (25,306) $ (66,559) $ (91,865) In accordance with ASC 350 - Intangibles - Goodwill and Other ("ASC 350"), the Company evaluates goodwill for possible impairment on an at least annual basis. The Company is currently in the process of updating its long-term forecast, which it will use to complete its annual evaluation during the fourth quarter. Management has determined that the Company will perform a quantitative assessment, rather than a qualitative assessment, for the Precision Products reporting unit, a division of the Precision Products segment which manufactures and produces the JPF. The quantitative assessment could result in a determination that there has been an impairment of some or all of the goodwill associated with this reporting unit. At September 29, 2023, the goodwill associated with the Precision Products reporting unit is $16.1 million. 11. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Other Intangible Assets Other intangible assets consisted of: At September 29, At December 31, 2023 2022 Amortization Gross Accumulated Gross Accumulated In thousands Customer lists / relationships 6-38 years $ 363,269 $ (51,311) $ 363,549 $ (41,695) Developed technologies 7-20 years 44,923 (20,582) 45,028 (17,508) Trademarks / trade names 15-40 years 16,619 (3,583) 16,681 (3,153) Non-compete agreements and other 1-15 years 17,332 (14,516) 17,336 (7,974) Patents 17 years 551 (494) 551 (484) Total intangible assets $ 442,694 $ (90,486) $ 443,145 $ (70,814) |
Debt
Debt | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | DEBT Credit Agreement On June 21, 2023 (the "Closing Date"), the Company closed an amended and restated $740.0 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 June 21, 2028; (ii) reduce the aggregate amount of revolving commitments from $800.0 million to $740.0 million; (iii) modify the financial covenants set forth in Article 6 of the previously existing credit facility; and (iv) effectuate certain additional modifications set forth in the previously existing facility, including its pricing. Capitalized terms used but not defined within this discussion of the Credit Agreement have the meanings ascribed thereto in the Credit Agreement, which with amendments is included as Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. The financial covenants associated with the Credit Agreement require that (i) the Consolidated Total Net Leverage Ratio, as defined by the Credit Agreement, cannot be greater than 5.00 to 1.00 for any quarter ending on or after the Closing Date through September 28, 2023, 4.75 to 1.00 for each quarter ending thereafter through September 26, 2024, 4.50 to 1.00 for each quarter ending thereafter through September 25, 2025 and 4.00 to 1.00 for each quarter ending thereafter. The Company may elect to increase the Consolidated Total Net Leverage Ratio by 0.50 to 1.00 if the Company consummates a Material Permitted Investment, which shall not exceed 5.00 to 1.00 for each of the four consecutive quarters that included the fiscal quarter in which the Material Permitted Investment is consummated. As of September 29, 2023, the Consolidated Total Net Leverage Ratio was 3.89, as calculated in accordance with the Credit Agreement. In addition to the Consolidated Total Net Leverage Ratio, as defined in the Credit Agreement and 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 cannot be less than (a) an amount equal to 50% of the aggregate principal amount of the Convertible Notes as of the last day of the third quarter of 2023 and (b) an amount equal to 100% of the aggregate principal of the 2024 Convertible Notes in the fourth quarter of 2023 and the first quarter of 2024. The Company was in compliance with these financial covenants as of and for the quarter ended September 29, 2023, and management does not anticipate noncompliance in the foreseeable future. Interest rates on amounts outstanding under the Credit Agreement are variable based on the SOFR. The interest rate at September 29, 2023 was 7.13%. We are required to pay a quarterly commitment fee on the unused revolving loan commitment amount at a rate ranging from 0.200% to 0.350% per annum, based on the Senior Secured Net Leverage Ratio. Fees for outstanding letters of credit range from 1.375% to 2.250%, based on the Senior Secured Net Leverage Ratio. At September 29, 2023, $382.0 million was outstanding under the revolving credit facility and total average bank borrowings were $391.9 million during the nine-month fiscal period ended September 29, 2023. Total average bank borrowings were $120.7 million during the year ended December 31, 2022. 12. DEBT (CONTINUED) Credit Agreement - continued The following table shows the amounts available for borrowing under the Company's revolving credit facility: September 29, December 31, In thousands Total facility $ 740,000 $ 800,000 Amounts outstanding, excluding letters of credit 382,000 363,000 Amounts available for borrowing, excluding letters of credit 358,000 437,000 Letters of credit under the credit facility (1)(2) 70,549 51,630 Amounts available for borrowing $ 287,451 $ 385,370 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (3) $ 129,313 $ 196,256 (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. (2) Of these amounts, $65.1 million and $46.1 million in letters of credit relate to a JPF DCS contract in the periods ended September 29, 2023 and December 31, 2022, respectively. (3) The Company's Convertible Notes will mature in 2024. The Company currently expects to settle the Convertible notes with available borrowing capacity under our Credit Agreement; however we are assessing potential options for the refinancing of these instruments prior to their scheduled maturity. With the extension of the Credit Agreement, the Company maintained sufficient capacity to use proceeds from this facility to repay the Convertible Notes. The amounts available for borrowing subject to EBITDA represents amounts available for borrowing after considering the Company's total debt obligations including its Credit Agreement and Convertible Notes. Debt issuance costs in connection with the Credit Agreement have been capitalized. The Company incurred $4.8 million of debt issuance costs in connection with the amendment of the Credit Agreement in 2023, which are being amortized over the term of the agreement with the debt issuance costs associated with the previous existing credit facility for lenders that remained in the Credit Agreement. In the second quarter of 2023, the Company recorded a write-off of debt issuance costs of $0.6 million related to lenders that are no longer participating in the Credit Agreement. Total amortization expense for the three-month fiscal periods ended September 29, 2023 and September 30, 2022 was $0.4 million and $0.7 million, respectively. Total amortization expense for the nine-month fiscal periods ended September 29, 2023 and September 30, 2022 was $1.6 million and $1.2 million, respectively. |
Pension Plans
Pension Plans | 9 Months Ended |
Sep. 29, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Compensation and Employee Benefit Plans | PENSION PLANS Components of net pension cost for the Qualified Pension Plan and Supplemental Employees’ Retirement Plan ("SERP") were as follows: For the Three Months Ended Qualified Pension Plan SERP September 29, September 30, September 29, September 30, In thousands Service cost $ 1,445 $ 840 $ — $ — Interest cost on projected benefit obligation 7,296 4,300 44 22 Expected return on plan assets (9,573) (10,544) — — Amortization of net loss 1,923 1,064 — 16 Net pension cost (income) $ 1,091 $ (4,340) $ 44 $ 38 13. PENSION PLANS (CONTINUED) For the Nine Months Ended Qualified Pension Plan SERP September 29, September 30, September 29, September 30, In thousands Service cost $ 4,336 $ 2,522 $ — $ — Interest cost on projected benefit obligation 21,888 12,899 132 66 Expected return on plan assets (28,720) (31,633) — — Amortization of net loss 5,770 3,193 — 46 Net pension cost (income) $ 3,274 $ (13,019) $ 132 $ 112 No contributions have been or are expected to be made to the qualified pension plan during 2023. The Company contributed $0.4 million to the SERP through the end of the third quarter of 2023 and plans to contribute an additional $0.1 million to the SERP in 2023. No contributions were made to the qualified pension plan during 2022. For the 2022 plan year, the Company contributed $0.5 million to the SERP. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES New Hartford Property In connection with the sale of the Company’s Music segment in 2007, the Company assumed responsibility for meeting certain requirements of the Connecticut Transfer Act (the “Transfer Act”) that applied to the transfer of the New Hartford, Connecticut, facility leased by that segment for guitar manufacturing purposes (“Ovation”). Under the Transfer Act, those responsibilities essentially consist of assessing the site's environmental conditions and remediating environmental impairments, if any, caused by Ovation's operations prior to the sale. The site is a multi-tenant industrial park, in which Ovation and other unrelated entities lease space. The environmental assessment process, which began in 2008, has been completed and site remediation is in process. 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 remediation has been nearly completed and the Company continues to monitor the results of the remediation. The total amount paid to date in connection with these environmental remediation activities is $1.8 million. At September 29, 2023, the Company had $0.5 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 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 Property 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 Connecticut Department of Environmental Protection. 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 $15.5 million. At September 29, 2023, the Company had $2.3 million accrued for these environmental remediation activities. A portion ($0.4 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. 14. COMMITMENTS AND CONTINGENCIES (CONTINUED) Offset Agreement The Company has entered into offset agreements as a condition to obtaining orders from a Middle Eastern 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 September 29, 2023, 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 value of the contracts 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. In February 2023, the Company announced that it received a Business Plan Approval Letter to establish a manufacturing and final assembly facility in collaboration with an in-country vendor, which will enhance the technological capabilities available in this country. At September 29, 2023, the Company continues to work with the Tawazun Council to identify a suitable in-country vendor to support the manufacturing and final assembly facility as the Company is no longer working with the previously announced vendor. 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 contracts 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 September 29, 2023, $18.8 million in contract liabilities associated with the potential penalties of the offset requirements were included on the Company's Condensed Consolidated Balance Sheets. Guarantees 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 fulfilled the requirements of Option 16 in the second quarter of 2023 and the USG has indicated that they will not award the Company any future options. The guaranty will remain in effect until the USG has confirmed that the Company has completed all obligations and the Company requests the expiration, which is expected to occur before the end of the fiscal year. The guaranty 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 guaranty 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 guaranty will not have a material adverse effect on the Company's results of operations, financial position and cash flows. On September 16, 2022, the Company acquired all of the assets and related liabilities of Parker's Aircraft Wheel and Brake division. In association with the acquisition, the Company entered into a novation agreement in which Parker's contractual obligations with respect to Aircraft Wheel and Brake at the time of the acquisition were transferred to the Company. There can be no assurance that this agreement will not have a material adverse effect on the Company's results of operations, financial position and cash flows. |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 9 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation of Earnings Per Share | COMPUTATION OF EARNINGS PER SHARE The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each period. The computation of diluted earnings per share reflects the common stock equivalency of dilutive options granted to employees under the Company's stock incentive plan, shares issuable on redemption of its convertible notes and shares issuable upon redemption of outstanding warrants. For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands, except per share amounts Net earnings (loss) $ 1,466 $ (280) $ 5,952 $ 7,369 Basic: Weighted average number of shares outstanding 28,247 28,037 28,189 27,997 Basic earnings (loss) per share $ 0.05 $ (0.01) $ 0.21 $ 0.26 Diluted: Weighted average number of shares outstanding 28,247 28,037 28,189 27,997 Weighted average shares issuable on exercise of dilutive stock options 103 — 135 79 Total 28,350 28,037 28,324 28,076 Diluted earnings (loss) per share $ 0.05 $ (0.01) $ 0.21 $ 0.26 Equity awards For the three-month and nine-month fiscal periods ended September 29, 2023, respectively, 660,947 and 664,923 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the periods. For the three-month and nine-month fiscal periods ended September 30, 2022, respectively, 756,809 and 707,584 shares issuable under equity awards granted to employees were excluded from the calculation of diluted earnings per share as they were anti-dilutive based on the average stock price during the periods. For the three-month fiscal period ended September 30, 2022, an additional 50,792 shares 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 net loss. Convertible Notes For both three-month and nine-month fiscal periods ended September 29, 2023 and September 30, 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. |
Share-based Arrangements
Share-based Arrangements | 9 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement | 16. SHARE-BASED ARRANGEMENTS The Company accounts for stock options, restricted stock awards ("RSAs"), restricted stock units ("RSUs") and performance stock units ("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. Compensation expense for stock options, RSAs, RSUs 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 return on invested capital ("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. The PSUs granted in 2023 and 2022 assumed a 100% achievement level. Share-based compensation expense recorded for the three-month and nine-month fiscal periods ended September 29, 2023 was $1.3 million and $5.2 million, respectively. For the nine-month fiscal period ended September 29, 2023, $0.3 million was recorded to restructuring and severance costs and the remaining amount was recorded to selling, general and administrative expenses on the Company's Condensed Consolidated Statements of Operations. No share-based compensation expense was recorded to restructuring and severance costs in the three-month fiscal period ended September 29, 2023. Share-based compensation expense recorded for the three-month and nine-month fiscal periods ended September 30, 2022 was $1.3 million and $6.1 million, respectively. For the nine-month fiscal period ended September 30, 2022, $0.2 million was recorded to restructuring and severance costs and the remaining amounts were recorded to selling, general and administrative expenses on the Company's Condensed Consolidated Statements of Operations. Restructuring and severance costs associated with share-based compensation for the three-month fiscal period ended September 30, 2022 were not material. Stock option activity was as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Options Weighted - average Options Weighted - average Options outstanding at beginning of period 615,742 $ 54.31 710,782 $ 54.12 Granted 48,987 $ 24.48 48,987 $ 24.48 Exercised — $ — — $ — Forfeited or expired (5,505) $ 63.09 (100,545) $ 53.45 Options outstanding at September 29, 2023 659,224 $ 52.02 659,224 $ 52.02 The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: For the Nine Months Ended September 29, 2023 September 30, 2022 Expected option term (years) 6.9 6.5 Expected volatility 40.2 % 35.5 % Risk-free interest rate 4.0 % 2.9 % Expected dividend yield 3.3 % 2.0 % Per share fair value of options granted $ 8.17 $ 10.22 16. SHARE-BASED ARRANGEMENTS (CONTINUED) Restricted stock award and restricted stock unit activity were as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Restricted Stock Weighted- Restricted Stock Weighted- Restricted Stock outstanding at beginning of period 227,196 $ 32.58 159,521 $ 45.78 Granted 26,740 $ 24.31 167,572 $ 24.53 Vested (34,507) $ 42.02 (99,239) $ 45.08 Forfeited or expired (13,960) $ 32.98 (22,385) $ 35.58 Restricted Stock outstanding at September 29, 2023 205,469 $ 29.89 205,469 $ 29.89 Performance stock unit activity was as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Performance Stock Weighted- Performance Stock Weighted- Performance Stock outstanding at beginning of period 314,552 $ 45.00 172,144 $ 60.44 Granted — $ — 178,385 $ 32.03 Vested — $ — — $ — Forfeited or expired (34,705) $ 42.98 (70,682) $ 48.89 Performance Stock outstanding at September 29, 2023 279,847 $ 45.25 279,847 $ 45.25 The fair value of the PSUs based on total shareholder return ("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: For the Nine Months Ended September 29, 2023 September 30, 2022 Expected term (years) 2.9 2.9 Expected volatility 41.2 % 39.4 % Risk-free interest rate 4.4 % 1.7 % Expected dividend yield 3.3 % 1.9 % Per share fair value of performance stock granted $ 38.83 $ 68.10 |
Shareholders' Equity and Accumu
Shareholders' Equity and Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity and Accumulated Other Comprehensive Income | SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in shareholders’ equity for the three-month and nine-month fiscal periods ended September 29, 2023, and September 30, 2022, were as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 In thousands Beginning balance (1) $ 686,329 $ 777,623 $ 680,756 $ 795,453 Comprehensive (loss) income (2,864) (9,334) 9,579 (15,502) Dividends declared (per share of common stock, $0.20 and $0.20 and $0.60 and $0.60, respectively) (5,650) (5,604) (16,915) (16,791) Employee stock plans and related tax benefit 495 430 1,465 1,696 Purchase of treasury shares (277) (64) (780) (762) Share-based compensation expense 1,262 1,334 5,190 6,145 Impact of change in accounting standard (2) — — — (5,854) Ending balance $ 679,295 $ 764,385 $ 679,295 $ 764,385 (1) For the three-month and nine-month fiscal periods ended September 30, 2022, the Company revised its previously issued financial statements for errors related to (1) the accounting for certain labor costs at one business in the Precision Products segment and (2) the net realizable value on certain portions of the Company's inventory at another business in the Structures segment. The impact of these items on the beginning shareholders' equity and accumulated other comprehensive income balances noted above was approximately $1.3 million and $0.9 million, respectively. Refer to Note 2, Accounting Changes , for further information. (2) At January 1, 2022, the Company adopted Accounting Standard Update 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" ("ASU 2020-06"). Refer to Note 1, Summary of Significant Accounting Policies , of the Company's Annual Report on Form 10-K for the year ended December 31, 2022 for further information on the adoption of ASU 2020-06. 17. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED) The components of accumulated other comprehensive income (loss) are shown below: For the Three Months Ended September 29, 2023 September 30, 2022 In thousands Foreign currency translation: Beginning balance $ 1,398 $ (6,707) Net loss on foreign currency translation (5,766) (9,875) Other comprehensive income (loss), net of tax (5,766) (9,875) Ending balance $ (4,368) $ (16,582) Pension and other post-retirement benefits (1) : Beginning balance $ (153,394) $ (118,495) Amortization of net loss, net of tax expense of $445 and $259, respectively 1,478 821 Other comprehensive income, net of tax 1,478 821 Ending balance $ (151,916) $ (117,674) Derivative instruments (2) : Beginning balance $ 1,532 $ — Gain on derivative instruments, net of tax expense of $138 and $0, respectively 460 — Reclassification to net income, net of tax benefit of $(151) and $0, respectively (502) — Other comprehensive income (loss), net of tax (42) — Ending balance $ 1,490 $ — Total accumulated other comprehensive loss $ (154,794) $ (134,256) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 13, Pension Plans, for additional information.) (2) See Note 9, Derivative Financial Instruments , for additional information regarding derivative instruments. 17. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED) For the Nine Months Ended September 29, 2023 September 30, 2022 In thousands Foreign currency translation: Beginning balance $ (2,071) $ 8,765 Net loss on foreign currency translation (2,297) (25,347) Other comprehensive income (loss), net of tax (2,297) (25,347) Ending balance $ (4,368) $ (16,582) Pension and other post-retirement benefits (1) : Beginning balance $ (156,350) $ (120,157) Amortization of net loss, net of tax expense of $1,336 and $756, respectively 4,434 2,483 Other comprehensive income, net of tax 4,434 2,483 Ending balance $ (151,916) $ (117,674) Derivative instruments (2) : Beginning balance $ — $ 7 Gain on derivative instruments, net of tax expense of $692 and $0, respectively 2,298 — Reclassification to net income, net of tax benefit of $(243) and $0, respectively (808) (7) Other comprehensive income (loss), net of tax 1,490 (7) Ending balance $ 1,490 $ — Total accumulated other comprehensive loss $ (154,794) $ (134,256) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 13, Pension Plans, for additional information.) (2) See Note 9, Derivative Financial Instruments , for additional information regarding derivative instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the Three Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 Effective Income Tax Rate 24.0 % 28.9 % 28.5 % 18.1 % The effective income tax rate represents the combined federal, state and foreign tax effects attributable to pretax earnings for the period. The effective tax rate for the three-month fiscal period ended September 29, 2023 decreased when compared to the corresponding rate in the prior year period, attributable to higher net earnings in the current period. The effective rate for the nine-month fiscal period ended September 29, 2023 increased when compared to the corresponding rate in the prior year period, primarily driven by a charge to record additional valuation allowances relating to the Company’s state tax loss carryforwards, partially offset by a benefit relating to the reversal of uncertain tax positions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 29, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSThe Company has evaluated subsequent events through the issuance date of these financial statements. No material subsequent events were identified that require disclosure. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings (loss) | $ 1,466 | $ (280) | $ 5,952 | $ 7,369 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Policies) | 9 Months Ended |
Sep. 29, 2023 | |
Basis of Presentation [Abstract] | |
Consolidation, Policy [Policy Text Block] | BASIS OF PRESENTATION In the opinion of management, the condensed consolidated financial information reflects all adjustments necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented, but do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). All such adjustments are of a normal recurring nature, unless otherwise disclosed in this report. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. The condensed consolidated financial statements for the period ended September 29, 2023 should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company has a calendar year-end; however, its first three fiscal quarters follow a 13-week convention, with each quarter ending on a Friday. The third quarters for 2023 and 2022 ended on September 29, 2023, and September 30, 2022, respectively. |
Accounting Changes and Error _2
Accounting Changes and Error Corrections (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Net changes in revenue associated with cost growth on the Company's over time contracts were as follows: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Net change in revenue due to change in profit estimates $ (3,123) $ (892) $ (5,987) $ 580 |
Schedule of Changes in Accounting Estimates - Revision | The revision to the accompanying unaudited condensed consolidated balance sheet, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income and condensed consolidated statement of cash flows are as follows. There were no changes to the consolidated statement of stockholders' equity that have not otherwise been reflected in the condensed consolidated balance sheets, condensed consolidated statements of operations, and condensed consolidated statements of comprehensive income as detailed in the tables below. Condensed Consolidated Balance Sheet In thousands December 31, 2022 As Previously Reported Adjustments As Corrected Assets Inventories (1) $ 176,468 $ (4,085) $ 172,383 Income tax refunds receivable 13,981 862 14,843 Total $ 190,449 $ (3,223) $ 187,226 Shareholders' equity Retained earnings $ 688,457 $ (3,223) $ 685,234 (1) At December 31, 2022, the adjustments to inventories consisted of an adjustment of $2.5 million for certain labor costs at a business within the Precision Products segment and an adjustment of $1.6 million for the net realizable value on certain portions of the inventory at a business within the Structures segment. 2. ACCOUNTING CHANGES (CONTINUED) Revision of Previously Issued Consolidated Financial Statements - continued Condensed Consolidated Statements of Operations In thousands, except per share amounts For the Three Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Cost of sales $ 116,179 $ 1,147 $ 117,326 Income tax expense 128 (242) (114) Net earnings 625 (905) (280) Basic earnings per share $ 0.02 $ (0.03) $ (0.01) Diluted earnings per share $ 0.02 $ (0.03) $ (0.01) For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Cost of sales $ 332,299 $ 1,709 $ 334,008 Income tax expense 1,992 (361) 1,631 Net earnings 8,717 (1,348) 7,369 Basic earnings per share $ 0.31 $ (0.05) $ 0.26 Diluted earnings per share $ 0.31 $ (0.05) $ 0.26 Condensed Consolidated Statements of Comprehensive Income (Loss) In thousands For the Three Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Comprehensive (loss) income $ (8,429) $ (905) $ (9,334) For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Comprehensive (loss) income $ (14,154) $ (1,348) $ (15,502) Condensed Consolidated Statement of Cash Flows In thousands For the Nine Months Ended September 30, 2022 As Previously Reported Adjustments As Corrected Net earnings $ 8,717 $ (1,348) $ 7,369 Inventories (21,187) 1,709 (19,478) Income tax refunds receivable (2,040) (361) (2,401) Net cash used in operating activities (33,700) — (33,700) |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Acquisitions [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 $ 7,635 Contract assets 171 Inventories 11,246 Property, plant and equipment 7,686 Goodwill 171,277 Other intangible assets (1) 250,500 Contract costs, noncurrent 41 Liabilities (5,729) Net assets acquired 442,827 Less cash received — Net consideration $ 442,827 |
Business Acquisition, Pro Forma Information [Table Text Block] | Pro Forma Information (Unaudited) - continued For the Three Months Ended For the Nine Months Ended September 30, September 30, In thousands Net sales 188,554 543,817 Net earnings 8,949 17,035 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended | |
Sep. 29, 2023 | ||
Revenue [Abstract] | ||
Reconciliation of Revenue from Segments to Consolidated | Summarized financial information by business segment is as follows: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Net sales: Engineered Products $ 123,598 $ 92,052 $ 380,437 $ 263,269 Precision Products 27,098 46,282 93,128 135,098 Structures 32,335 33,670 99,166 92,451 Net sales $ 183,031 $ 172,004 $ 572,731 $ 490,818 Operating income (loss): Engineered Products $ 29,026 $ 14,156 $ 78,924 $ 40,665 Precision Products (3,241) 5,296 (3,996) 10,725 Structures (3,020) (642) (3,769) (2,121) Corporate expense (9,828) (20,196) (29,499) (42,728) Other unallocated (expenses) income, net (1) (1,065) 685 (4,541) (2,467) Operating income (loss) $ 11,872 $ (701) $ 37,119 $ 4,074 Interest expense, net 9,405 3,614 29,349 8,088 Non-service pension and post-retirement benefit income, net (310) (5,142) (930) (15,429) Other expense, net 849 1,221 377 2,415 Earnings (loss) before income taxes $ 1,928 $ (394) $ 8,323 $ 9,000 (1) Other unallocated expenses, net include program inventory impairment, restructuring and severance costs and net loss on disposition of assets. | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following tables disaggregate segment revenue by major product line: For the Three Months Ended September 29, 2023 Engineered Products Precision Products Structures Total In thousands Defense $ 18,859 $ 7,541 $ 17,324 $ 43,724 Safe and Arm Devices — 12,890 — 12,890 Commercial, Business & General Aviation 61,550 5,459 13,374 80,383 Medical 23,005 — 1,637 24,642 Industrial & Other 20,184 1,208 — 21,392 Total revenue $ 123,598 $ 27,098 $ 32,335 $ 183,031 For the Three Months Ended September 30, 2022 Engineered Products Precision Products Structures Total In thousands Defense $ 13,356 $ 5,171 $ 20,805 $ 39,332 Safe and Arm Devices — 37,460 — 37,460 Commercial, Business & General Aviation 39,852 2,457 11,006 53,315 Medical 21,782 — 1,859 23,641 Industrial & Other 17,062 1,194 — 18,256 Total revenue $ 92,052 $ 46,282 $ 33,670 $ 172,004 For the Nine Months Ended September 29, 2023 Engineered Products Precision Products Structures Total In thousands Defense $ 57,362 $ 20,502 $ 55,461 $ 133,325 Safe and Arm Devices — 49,486 — 49,486 Commercial, Business & General Aviation 190,471 19,548 38,232 248,251 Medical 73,463 — 5,473 78,936 Industrial & Other 59,141 3,592 — 62,733 Total revenue $ 380,437 $ 93,128 $ 99,166 $ 572,731 For the Nine Months Ended September 30, 2022 Engineered Products Precision Products Structures Total In thousands Defense $ 32,351 $ 17,122 $ 53,158 $ 102,631 Safe and Arm Devices — 96,345 — 96,345 Commercial, Business & General Aviation 109,874 18,119 33,138 161,131 Medical 65,614 — 6,155 71,769 Industrial & Other 55,430 3,512 — 58,942 Total revenue $ 263,269 $ 135,098 $ 92,451 $ 490,818 4. REVENUE AND SEGMENT INFORMATION (CONTINUED) Disaggregation of Revenue - continued The following table disaggregates total revenue by product types. For the Three Months Ended For the Three Months Ended September 29, 2023 September 30, 2022 Engineered Products Precision Products Structures Total Engineered Products Precision Products Structures Total Original Equipment Manufacturer 47 % 3 % 18 % 68 % 40 % 2 % 19 % 61 % Aftermarket 20 % 5 % — % 25 % 14 % 3 % — % 17 % Safe and Arm Devices — % 7 % — % 7 % — % 22 % — % 22 % Total revenue 67 % 15 % 18 % 100 % 54 % 27 % 19 % 100 % For the Nine Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 Engineered Products Precision Products Structures Total Engineered Products Precision Products Structures Total Original Equipment Manufacturer 47 % 3 % 17 % 67 % 41 % 4 % 19 % 64 % Aftermarket 20 % 4 % — % 24 % 12 % 4 % — % 16 % Safe and Arm Devices — % 9 % — % 9 % — % 20 % — % 20 % Total revenue 67 % 16 % 17 % 100 % 53 % 28 % 19 % 100 % | |
Research and Development | The following table presents research and development costs by segment: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Engineered Products $ 1,620 $ 2,106 $ 6,738 $ 6,470 Precision Products 2,387 1,812 8,308 7,599 Structures 15 19 76 196 Total research and development costs $ 4,022 $ 3,937 $ 15,122 $ 14,265 | |
Schedule of Change in Accounting Estimate [Table Text Block] | Net changes in revenue associated with cost growth on the Company's over time contracts were as follows: For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands Net change in revenue due to change in profit estimates $ (3,123) $ (892) $ (5,987) $ 580 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Backlog at September 29, 2023 and December 31, 2022, and the portion of backlog the Company expects to recognize revenue on over the next twelve months is as follows: September 29, 2023 (1) December 31, 2022 (in thousands) Engineered Products $ 363,228 $ 322,452 Precision Products 100,712 134,903 Structures 254,633 263,581 Total Backlog $ 718,573 $ 720,936 (1) The Company expects to recognize revenue on approximately 69% of backlog as of September 29, 2023 over the next twelve months. | [1] |
[1]The Company expects to recognize revenue on approximately 69% of backlog as of September 29, 2023 over the next twelve months. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Costs | The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other (1) Total In thousands Restructuring accrual balance at December 31, 2022 (2) $ 6,629 $ — $ 6,629 Provision 2,147 625 2,772 Cash payments (5,767) (625) (6,392) Changes in foreign currency exchange rates (2) — (2) Restructuring accrual balance at September 29, 2023 $ 3,007 $ — $ 3,007 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: September 29, December 31, In thousands Trade receivables $ 42,931 $ 31,126 U.S. Government contracts: Billed 16,333 14,150 Cost and accrued profit - not billed 2,460 661 Commercial and other government contracts Billed 46,751 41,520 Cost and accrued profit - not billed 1,069 2,268 Less allowance for doubtful accounts (2,897) (2,066) Accounts receivable, net $ 106,647 $ 87,659 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | The following table summarizes the activity in the allowance for doubtful accounts in the nine-month fiscal period ended September 29, 2023: In thousands Balance at December 31, 2022 $ (2,066) Provision (1,495) Amounts written off 307 Recoveries 356 Changes in foreign currency exchange rates 1 Balance at September 29, 2023 $ (2,897) |
Accounts Receivable Due to Contract Changes, Negotiated Settlements and Claims for Unanticipated Cost | There were no amounts included in accounts receivable, net for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at September 29, 2023 and December 31, 2022. |
Contract Assets, Contract Cos_2
Contract Assets, Contract Costs and Contract Liabilities (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Activity Related to Contract Assets, Contract Costs, and Contract Liabilities | Activity related to contract assets, contract costs and contract liabilities was as follows: September 29, December 31, 2022 $ Change % Change In thousands Contract assets $ 100,709 $ 113,182 $ (12,473) (11.0) % Contract costs, current portion (1) $ 139 $ 695 $ (556) (80.0) % Contract costs, noncurrent portion (2) $ 643 $ 673 $ (30) (4.5) % Contract liabilities, current portion $ 7,884 $ 4,081 $ 3,803 93.2 % Contract liabilities, noncurrent portion $ 19,653 $ 20,515 $ (862) (4.2) % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments That Are Not Carried At Fair Value | The following table presents the carrying value and fair value of financial instruments that are not carried at fair value: September 29, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 581,500 $ 547,294 $ 562,500 $ 547,393 (1) These amounts are classified within Level 2. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following: September 29, December 31, In thousands Raw materials $ 35,228 $ 24,572 Contracts and other work in process (including certain general stock materials) 127,779 107,803 Finished goods 38,432 40,008 Inventories $ 201,439 $ 172,383 |
Inventory Due to Contract Changes, Negotiated Settlements and Claims for Unanticipated Contract Costs | There were no amounts included in inventories associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs at September 29, 2023 and December 31, 2022. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of Goodwill | The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: Engineered Products Precision Products Structures Total In thousands Gross balance at December 31, 2022 $ 363,785 $ 41,375 $ 66,559 $ 471,719 Accumulated impairment — (25,306) (66,559) (91,865) Net balance at December 31, 2022 363,785 16,069 — 379,854 Additions 1,487 — — 1,487 Impairments — — — — Foreign currency translation (1,098) — — (1,098) Ending balance at September 29, 2023 $ 364,174 $ 16,069 $ — $ 380,243 Accumulated impairment at end of period $ — $ (25,306) $ (66,559) $ (91,865) |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Other intangible assets consisted of: At September 29, At December 31, 2023 2022 Amortization Gross Accumulated Gross Accumulated In thousands Customer lists / relationships 6-38 years $ 363,269 $ (51,311) $ 363,549 $ (41,695) Developed technologies 7-20 years 44,923 (20,582) 45,028 (17,508) Trademarks / trade names 15-40 years 16,619 (3,583) 16,681 (3,153) Non-compete agreements and other 1-15 years 17,332 (14,516) 17,336 (7,974) Patents 17 years 551 (494) 551 (484) Total intangible assets $ 442,694 $ (90,486) $ 443,145 $ (70,814) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table shows the amounts available for borrowing under the Company's revolving credit facility: September 29, December 31, In thousands Total facility $ 740,000 $ 800,000 Amounts outstanding, excluding letters of credit 382,000 363,000 Amounts available for borrowing, excluding letters of credit 358,000 437,000 Letters of credit under the credit facility (1)(2) 70,549 51,630 Amounts available for borrowing $ 287,451 $ 385,370 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (3) $ 129,313 $ 196,256 |
Pension Plans (Tables)
Pension Plans (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | Components of net pension cost for the Qualified Pension Plan and Supplemental Employees’ Retirement Plan ("SERP") were as follows: For the Three Months Ended Qualified Pension Plan SERP September 29, September 30, September 29, September 30, In thousands Service cost $ 1,445 $ 840 $ — $ — Interest cost on projected benefit obligation 7,296 4,300 44 22 Expected return on plan assets (9,573) (10,544) — — Amortization of net loss 1,923 1,064 — 16 Net pension cost (income) $ 1,091 $ (4,340) $ 44 $ 38 13. PENSION PLANS (CONTINUED) For the Nine Months Ended Qualified Pension Plan SERP September 29, September 30, September 29, September 30, In thousands Service cost $ 4,336 $ 2,522 $ — $ — Interest cost on projected benefit obligation 21,888 12,899 132 66 Expected return on plan assets (28,720) (31,633) — — Amortization of net loss 5,770 3,193 — 46 Net pension cost (income) $ 3,274 $ (13,019) $ 132 $ 112 |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | For the Three Months Ended For the Nine Months Ended September 29, September 30, September 29, September 30, In thousands, except per share amounts Net earnings (loss) $ 1,466 $ (280) $ 5,952 $ 7,369 Basic: Weighted average number of shares outstanding 28,247 28,037 28,189 27,997 Basic earnings (loss) per share $ 0.05 $ (0.01) $ 0.21 $ 0.26 Diluted: Weighted average number of shares outstanding 28,247 28,037 28,189 27,997 Weighted average shares issuable on exercise of dilutive stock options 103 — 135 79 Total 28,350 28,037 28,324 28,076 Diluted earnings (loss) per share $ 0.05 $ (0.01) $ 0.21 $ 0.26 |
Share-based Arrangements (Table
Share-based Arrangements (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Option Activity | Stock option activity was as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Options Weighted - average Options Weighted - average Options outstanding at beginning of period 615,742 $ 54.31 710,782 $ 54.12 Granted 48,987 $ 24.48 48,987 $ 24.48 Exercised — $ — — $ — Forfeited or expired (5,505) $ 63.09 (100,545) $ 53.45 Options outstanding at September 29, 2023 659,224 $ 52.02 659,224 $ 52.02 |
Fair Value Assumptions | The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: For the Nine Months Ended September 29, 2023 September 30, 2022 Expected option term (years) 6.9 6.5 Expected volatility 40.2 % 35.5 % Risk-free interest rate 4.0 % 2.9 % Expected dividend yield 3.3 % 2.0 % Per share fair value of options granted $ 8.17 $ 10.22 |
Restricted Stock Award and Restricted Stock Unit Activity | Restricted stock award and restricted stock unit activity were as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Restricted Stock Weighted- Restricted Stock Weighted- Restricted Stock outstanding at beginning of period 227,196 $ 32.58 159,521 $ 45.78 Granted 26,740 $ 24.31 167,572 $ 24.53 Vested (34,507) $ 42.02 (99,239) $ 45.08 Forfeited or expired (13,960) $ 32.98 (22,385) $ 35.58 Restricted Stock outstanding at September 29, 2023 205,469 $ 29.89 205,469 $ 29.89 |
Share-based Payment Arrangement, Performance Shares, Activity | Performance stock unit activity was as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 29, 2023 Performance Stock Weighted- Performance Stock Weighted- Performance Stock outstanding at beginning of period 314,552 $ 45.00 172,144 $ 60.44 Granted — $ — 178,385 $ 32.03 Vested — $ — — $ — Forfeited or expired (34,705) $ 42.98 (70,682) $ 48.89 Performance Stock outstanding at September 29, 2023 279,847 $ 45.25 279,847 $ 45.25 |
Schedule of Share-based Payment Awards, Performance Shares, Valuation Assumptions | The following table indicates the weighted-average assumptions used in estimating fair value: For the Nine Months Ended September 29, 2023 September 30, 2022 Expected term (years) 2.9 2.9 Expected volatility 41.2 % 39.4 % Risk-free interest rate 4.4 % 1.7 % Expected dividend yield 3.3 % 1.9 % Per share fair value of performance stock granted $ 38.83 $ 68.10 |
Shareholders' Equity and Accu_2
Shareholders' Equity and Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Changes in shareholders’ equity for the three-month and nine-month fiscal periods ended September 29, 2023, and September 30, 2022, were as follows: For the Three Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 In thousands Beginning balance (1) $ 686,329 $ 777,623 $ 680,756 $ 795,453 Comprehensive (loss) income (2,864) (9,334) 9,579 (15,502) Dividends declared (per share of common stock, $0.20 and $0.20 and $0.60 and $0.60, respectively) (5,650) (5,604) (16,915) (16,791) Employee stock plans and related tax benefit 495 430 1,465 1,696 Purchase of treasury shares (277) (64) (780) (762) Share-based compensation expense 1,262 1,334 5,190 6,145 Impact of change in accounting standard (2) — — — (5,854) Ending balance $ 679,295 $ 764,385 $ 679,295 $ 764,385 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown below: For the Three Months Ended September 29, 2023 September 30, 2022 In thousands Foreign currency translation: Beginning balance $ 1,398 $ (6,707) Net loss on foreign currency translation (5,766) (9,875) Other comprehensive income (loss), net of tax (5,766) (9,875) Ending balance $ (4,368) $ (16,582) Pension and other post-retirement benefits (1) : Beginning balance $ (153,394) $ (118,495) Amortization of net loss, net of tax expense of $445 and $259, respectively 1,478 821 Other comprehensive income, net of tax 1,478 821 Ending balance $ (151,916) $ (117,674) Derivative instruments (2) : Beginning balance $ 1,532 $ — Gain on derivative instruments, net of tax expense of $138 and $0, respectively 460 — Reclassification to net income, net of tax benefit of $(151) and $0, respectively (502) — Other comprehensive income (loss), net of tax (42) — Ending balance $ 1,490 $ — Total accumulated other comprehensive loss $ (154,794) $ (134,256) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 13, Pension Plans, for additional information.) (2) See Note 9, Derivative Financial Instruments , for additional information regarding derivative instruments. 17. SHAREHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED) For the Nine Months Ended September 29, 2023 September 30, 2022 In thousands Foreign currency translation: Beginning balance $ (2,071) $ 8,765 Net loss on foreign currency translation (2,297) (25,347) Other comprehensive income (loss), net of tax (2,297) (25,347) Ending balance $ (4,368) $ (16,582) Pension and other post-retirement benefits (1) : Beginning balance $ (156,350) $ (120,157) Amortization of net loss, net of tax expense of $1,336 and $756, respectively 4,434 2,483 Other comprehensive income, net of tax 4,434 2,483 Ending balance $ (151,916) $ (117,674) Derivative instruments (2) : Beginning balance $ — $ 7 Gain on derivative instruments, net of tax expense of $692 and $0, respectively 2,298 — Reclassification to net income, net of tax benefit of $(243) and $0, respectively (808) (7) Other comprehensive income (loss), net of tax 1,490 (7) Ending balance $ 1,490 $ — Total accumulated other comprehensive loss $ (154,794) $ (134,256) (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 13, Pension Plans, for additional information.) (2) See Note 9, Derivative Financial Instruments , for additional information regarding derivative instruments. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rates | For the Three Months Ended For the Nine Months Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 Effective Income Tax Rate 24.0 % 28.9 % 28.5 % 18.1 % |
Accounting Changes and Error _3
Accounting Changes and Error Corrections (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Change in Accounting Estimate [Line Items] | |||||
Income tax refunds receivable | $ 4,680 | $ 4,680 | $ 14,843 | ||
Total Revision to Assets | 187,226 | ||||
Retained earnings | 674,271 | 674,271 | 685,234 | ||
Cost of sales | 117,977 | $ 117,326 | 368,246 | $ 334,008 | |
Income tax expense (benefit) | 462 | (114) | 2,371 | 1,631 | |
Net earnings (loss) | $ 1,466 | $ (280) | $ 5,952 | $ 7,369 | |
Basic earnings per share (in usd per share) | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 | |
Diluted earnings per share from continuing operations | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 | |
Comprehensive (loss) income | $ (2,864) | $ (9,334) | $ 9,579 | $ (15,502) | |
Inventories | (30,952) | (19,478) | |||
Income tax refunds receivable | 10,158 | (2,401) | |||
Net cash provided by operating activities | 29,673 | (33,700) | |||
Inventories | $ 201,439 | $ 201,439 | 172,383 | ||
Revision of Prior Period, Adjustment | |||||
Change in Accounting Estimate [Line Items] | |||||
Income tax refunds receivable | 862 | ||||
Total Revision to Assets | (3,223) | ||||
Retained earnings | (3,223) | ||||
Cost of sales | 1,147 | 1,709 | |||
Income tax expense (benefit) | (242) | (361) | |||
Net earnings (loss) | $ (905) | $ (1,348) | |||
Basic earnings per share (in usd per share) | $ (0.03) | $ (0.05) | |||
Diluted earnings per share from continuing operations | $ (0.03) | $ (0.05) | |||
Comprehensive (loss) income | $ (905) | $ (1,348) | |||
Inventories | 1,709 | ||||
Income tax refunds receivable | (361) | ||||
Net cash provided by operating activities | 0 | ||||
Inventories | (4,085) | ||||
Revision of Prior Period, Adjustment | Precision Products | |||||
Change in Accounting Estimate [Line Items] | |||||
Inventories | 2,500 | ||||
Revision of Prior Period, Adjustment | Structures | |||||
Change in Accounting Estimate [Line Items] | |||||
Inventories | 1,600 | ||||
Previously Reported | |||||
Change in Accounting Estimate [Line Items] | |||||
Income tax refunds receivable | 13,981 | ||||
Total Revision to Assets | 190,449 | ||||
Retained earnings | 688,457 | ||||
Cost of sales | 116,179 | 332,299 | |||
Income tax expense (benefit) | 128 | 1,992 | |||
Net earnings (loss) | $ 625 | $ 8,717 | |||
Basic earnings per share (in usd per share) | $ 0.02 | $ 0.31 | |||
Diluted earnings per share from continuing operations | $ 0.02 | $ 0.31 | |||
Comprehensive (loss) income | $ (8,429) | $ (14,154) | |||
Inventories | (21,187) | ||||
Income tax refunds receivable | (2,040) | ||||
Net cash provided by operating activities | $ (33,700) | ||||
Inventories | $ 176,468 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 29, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Sep. 16, 2022 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill, Purchase Accounting Adjustments | $ 1,500 | |||||
Business Acquisition, Pro Forma Revenue | $ 188,554 | $ 543,817 | ||||
Business Acquisition, Pro Forma Net Income (Loss) | 8,949 | 17,035 | ||||
Pro Forma, Nonrecurring Adjustment, Increase in Depreciation Expense | 100 | 500 | ||||
Pro Forma, Nonrecurring Adjustment, Finite Lived Assets Amortization | 1,800 | 7,900 | ||||
Pro Forma, Nonrecurring Adjustment, Reduction in Acquisition Related Expense | (10,100) | (12,100) | ||||
Pro Forma Nonrecurring Adjustment, Increase in Interest Expense | 3,400 | 11,400 | ||||
Pro Forma Nonrecurring Adjustment, Increase in Income Tax Expense | 1,000 | |||||
Pro Forma Nonrecurring Adjustment, Reduction in Income Tax Expense | (1,600) | |||||
Parker Aircraft Wheels & Brakes | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 442,827 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 0 | |||||
Business Combination, Consideration Transferred | 442,827 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 7,635 | |||||
Business Combination, 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 | 171,277 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 250,500 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 41 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ (5,729) | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 16,900 | $ 2,700 | 56,600 | $ 2,700 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 1,900 | $ (1,100) | $ 5,800 | $ (1,100) |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 183,031 | $ 172,004 | $ 572,731 | $ 490,818 | |
Operating Income (Loss) | 11,872 | (701) | 37,119 | 4,074 | |
Interest expense, net | 9,405 | 3,614 | 29,349 | 8,088 | |
Non-service pension and post-retirement benefit income | (310) | (5,142) | (930) | (15,429) | |
Other expense, net | $ 849 | $ 1,221 | $ 377 | $ 2,415 | |
Revenue, Net, Percentage | 100% | 100% | 100% | 100% | |
Research and Development Expense | $ 4,022 | $ 3,937 | $ 15,122 | $ 14,265 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 1,928 | (394) | 8,323 | 9,000 | |
Program Inventory Impairment | 417 | $ 44,500 | 0 | 1,013 | 0 |
Net earnings (loss) | 1,466 | (280) | 5,952 | 7,369 | |
Military and Defense, other than fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 43,724 | 39,332 | 133,325 | 102,631 | |
Missile and Bomb Fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 12,890 | $ 37,460 | $ 49,486 | $ 96,345 | |
Revenue, Net, Percentage | 7% | 22% | 9% | 20% | |
Commercial Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 80,383 | $ 53,315 | $ 248,251 | $ 161,131 | |
Medical [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 24,642 | 23,641 | 78,936 | 71,769 | |
Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 21,392 | $ 18,256 | $ 62,733 | $ 58,942 | |
Original Equipment Manufacturer [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 68% | 61% | 67% | 64% | |
Aftermarket [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 25% | 17% | 24% | 16% | |
Engineered Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 123,598 | $ 92,052 | $ 380,437 | $ 263,269 | |
Operating Income (Loss) | $ 29,026 | $ 14,156 | $ 78,924 | $ 40,665 | |
Revenue, Net, Percentage | 67% | 54% | 67% | 53% | |
Research and Development Expense | $ 1,620 | $ 2,106 | $ 6,738 | $ 6,470 | |
Engineered Products | Military and Defense, other than fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 18,859 | 13,356 | 57,362 | 32,351 | |
Engineered Products | Missile and Bomb Fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue, Net, Percentage | 0% | 0% | 0% | 0% | |
Engineered Products | Commercial Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 61,550 | $ 39,852 | $ 190,471 | $ 109,874 | |
Engineered Products | Medical [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 23,005 | 21,782 | 73,463 | 65,614 | |
Engineered Products | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 20,184 | $ 17,062 | $ 59,141 | $ 55,430 | |
Engineered Products | Original Equipment Manufacturer [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 47% | 40% | 47% | 41% | |
Engineered Products | Aftermarket [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 20% | 14% | 20% | 12% | |
Precision Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 27,098 | $ 46,282 | $ 93,128 | $ 135,098 | |
Operating Income (Loss) | $ (3,241) | $ 5,296 | $ (3,996) | $ 10,725 | |
Revenue, Net, Percentage | 15% | 27% | 16% | 28% | |
Research and Development Expense | $ 2,387 | $ 1,812 | $ 8,308 | $ 7,599 | |
Precision Products | Military and Defense, other than fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 7,541 | 5,171 | 20,502 | 17,122 | |
Precision Products | Missile and Bomb Fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 12,890 | $ 37,460 | $ 49,486 | $ 96,345 | |
Revenue, Net, Percentage | 7% | 22% | 9% | 20% | |
Precision Products | Commercial Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 5,459 | $ 2,457 | $ 19,548 | $ 18,119 | |
Precision Products | Medical [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Precision Products | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 1,208 | $ 1,194 | $ 3,592 | $ 3,512 | |
Precision Products | Original Equipment Manufacturer [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 3% | 2% | 3% | 4% | |
Precision Products | Aftermarket [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 5% | 3% | 4% | 4% | |
Structures | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 32,335 | $ 33,670 | $ 99,166 | $ 92,451 | |
Operating Income (Loss) | $ (3,020) | $ (642) | $ (3,769) | $ (2,121) | |
Revenue, Net, Percentage | 18% | 19% | 17% | 19% | |
Research and Development Expense | $ 15 | $ 19 | $ 76 | $ 196 | |
Structures | Military and Defense, other than fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 17,324 | 20,805 | 55,461 | 53,158 | |
Structures | Missile and Bomb Fuzes [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 | |
Revenue, Net, Percentage | 0% | 0% | 0% | 0% | |
Structures | Commercial Aerospace [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 13,374 | $ 11,006 | $ 38,232 | $ 33,138 | |
Structures | Medical [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,637 | 1,859 | 5,473 | 6,155 | |
Structures | Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 | |
Structures | Original Equipment Manufacturer [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 18% | 19% | 17% | 19% | |
Structures | Aftermarket [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Net, Percentage | 0% | 0% | 0% | 0% | |
Corporate Segment | |||||
Disaggregation of Revenue [Line Items] | |||||
Operating Income (Loss) | $ (9,828) | $ (20,196) | $ (29,499) | $ (42,728) | |
Other unallocated expenses, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Operating Income (Loss) | $ (1,065) | $ 685 | $ (4,541) | $ (2,467) |
Revenue Changes in Revenue due
Revenue Changes in Revenue due to Estimates in Over Time Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Change in Accounting Estimate [Line Items] | ||||
Net sales | $ 183,031 | $ 172,004 | $ 572,731 | $ 490,818 |
Performance obligations satisfied in previous periods [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Reductions in Revenues | $ (3,123) | $ (892) | $ (5,987) | $ 580 |
Revenue Unfulfilled Performance
Revenue Unfulfilled Performance Obligations (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Unfulfilled Performance Obligations [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 718,573 | $ 720,936 |
Revenue, Remaining Performance Obligation, Percentage | 69% | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 718,573 | 720,936 |
Engineered Products | ||
Unfulfilled Performance Obligations [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | 363,228 | 322,452 |
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 363,228 | 322,452 |
Precision Products | ||
Unfulfilled Performance Obligations [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | 100,712 | 134,903 |
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 100,712 | 134,903 |
Structures | ||
Unfulfilled Performance Obligations [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | 254,633 | 263,581 |
Disaggregation of Revenue [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 254,633 | $ 263,581 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and severance costs | $ 571 | $ (243) | $ 3,033 | $ 2,853 | |
Restructuring accrual, beginning balance | $ 6,629 | ||||
Increase (Decrease) in Restructuring Reserve | 2,772 | ||||
Restructuring Reserve, Period Increase (Decrease) | (6,392) | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (2) | ||||
Restructuring accrual, ending balance | 3,007 | 3,007 | |||
Share-based compensation expense | 1,262 | 1,334 | 5,190 | 6,145 | |
Restructuring accrual, long-term portion | 1,000 | ||||
Severance Costs | 1,000 | ||||
Restructuring and Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Share-based compensation expense | 0 | 300 | 200 | ||
Transformation severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and severance costs | 600 | 3,000 | |||
Restructuring accrual, beginning balance | 6,629 | ||||
Increase (Decrease) in Restructuring Reserve | 2,147 | ||||
Restructuring Reserve, Period Increase (Decrease) | (5,767) | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | (2) | ||||
Restructuring accrual, ending balance | 3,007 | 3,007 | |||
Transformation other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring accrual, beginning balance | $ 0 | ||||
Increase (Decrease) in Restructuring Reserve | 625 | ||||
Restructuring Reserve, Period Increase (Decrease) | (625) | ||||
Restructuring Reserve, Foreign Currency Translation Gain (Loss) | 0 | ||||
Restructuring accrual, ending balance | $ 0 | $ 0 | |||
G&A Reduction Efforts | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance Costs | $ (200) | $ 1,900 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less allowance for doubtful accounts | $ (2,897) | $ (2,066) |
Accounts receivable, net | 106,647 | 87,659 |
Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 42,931 | 31,126 |
U.S. Government contracts | Billed | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 16,333 | 14,150 |
U.S. Government contracts | Not billed | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 2,460 | 661 |
Commercial and other government contracts | Billed | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 46,751 | 41,520 |
Commercial and other government contracts | Not billed | Accounts Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 1,069 | $ 2,268 |
Accounts Receivable, Net Allowa
Accounts Receivable, Net Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Dec. 31, 2022 | |
Allowance for Doubtful Accounts [Abstract] | ||
Less allowance for doubtful accounts | $ (2,897) | $ (2,066) |
Provision for Other Credit Losses | (1,495) | |
Accounts Receivable, Allowance for Credit Loss, Writeoff | 307 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 356 | |
Financing Receivable, Allowance for Credit Loss, Foreign Currency Translation | $ 1 |
Accounts Receivable, Net - Acco
Accounts Receivable, Net - Accounts Receivable due to contract changes, negotiated settlements and claims for unanticipated cost (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Contracts Receivable, Claims and Uncertain Amounts | $ 0 | $ 0 |
Contract Assets, Contract Cos_3
Contract Assets, Contract Costs and Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Contract assets | $ 100,709 | $ 100,709 | $ 113,182 | ||
Contract assets, change | $ (12,473) | ||||
Contract assets, change (as percent) | (11.00%) | ||||
Capitalized Contract Cost, Net, Current | 139 | $ 139 | 695 | ||
Capitalized costs, current portion, change | $ (556) | ||||
Capitalized costs, current portion, change (as percent) | (80.00%) | ||||
Capitalized Contract Cost, Net, Noncurrent | 643 | $ 643 | 673 | ||
Capitalized costs, noncurrent portion, change | $ (30) | ||||
Capitalized costs, noncurrent portion, change (as percent) | (4.50%) | ||||
Contract liabilities, current portion | 7,884 | $ 7,884 | 4,081 | ||
Contract liabilities, current portion, change | $ 3,803 | ||||
Contract liabilities, current portion, change (as percent) | 93.20% | ||||
Contract liabilities, noncurrent portion | 19,653 | $ 19,653 | 20,515 | ||
Contract liabilities, noncurrent portion, change | $ (862) | ||||
Contract liabilities, noncurrent portion, change (as percent) | (4.20%) | ||||
Capitalized contract cost, amortization | 100 | $ 200 | $ 300 | $ 500 | |
Revenue recognized related to contract liabilities | 1,200 | $ 200 | 1,700 | $ 1,400 | |
Contract Changes Negotiated Settlements and Claims [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract assets | 0 | 0 | 0 | ||
Costs to Fulfill [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized Contract Cost, Net | 800 | 800 | 1,400 | ||
Costs to Obtain [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Capitalized Contract Cost, Net | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Instruments not carried at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Money Market Funds, at Carrying Value | $ 5,400 | $ 100 | $ 5,400 | ||
Goodwill, Impairment Loss | 0 | ||||
Program Inventory Impairment | 417 | 44,500 | $ 0 | 1,013 | $ 0 |
Level 2 | Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt | 581,500 | 562,500 | 581,500 | ||
Level 2 | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Debt | $ 547,294 | $ 547,393 | $ 547,294 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) $ in Millions | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative, Notional Amount | $ 175 |
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 1.6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 35,228 | $ 24,572 |
Contracts and other work in process (including certain general stock materials) | 127,779 | 107,803 |
Finished goods | 38,432 | 40,008 |
Inventories | $ 201,439 | $ 172,383 |
Inventories - Inventory Due to
Inventories - Inventory Due to Contract Changes, Negotiated Settlements and Claims for Unanticipated Contract Costs (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory due to contract changes, negotiated settlements and claims for unanticipated contract costs | $ 0 | $ 0 |
Inventories - Other Inventory I
Inventories - Other Inventory Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Schedule of Inventory [Line Items] | |||||
Inventories | $ 201,439 | $ 172,383 | $ 201,439 | ||
Program Inventory Impairment | 417 | 44,500 | $ 0 | 1,013 | $ 0 |
K-MAX® | |||||
Schedule of Inventory [Line Items] | |||||
Inventory, gross | 22,900 | 24,700 | 22,900 | ||
Inventory noncurrent | 9,500 | 9,500 | |||
SH 2GA Super Seasprite Program | |||||
Schedule of Inventory [Line Items] | |||||
Inventory, gross | 5,400 | $ 6,200 | 5,400 | ||
Inventory noncurrent | $ 4,100 | $ 4,100 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | $ 471,719 | |
Accumulated impairment | $ (91,865) | (91,865) |
Net balance at beginning of period | 379,854 | |
Additions | 1,487 | |
Impairments | 0 | |
Foreign currency translation | (1,098) | |
Net balance at end of period | 380,243 | 379,854 |
Engineered Products | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 363,785 | |
Accumulated impairment | 0 | 0 |
Net balance at beginning of period | 363,785 | |
Additions | 1,487 | |
Impairments | 0 | |
Foreign currency translation | (1,098) | |
Net balance at end of period | 364,174 | 363,785 |
Precision Products | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 41,375 | |
Accumulated impairment | (25,306) | (25,306) |
Net balance at beginning of period | 16,069 | |
Additions | 0 | |
Impairments | 0 | |
Foreign currency translation | 0 | |
Net balance at end of period | 16,069 | 16,069 |
Structures | ||
Goodwill [Roll Forward] | ||
Gross balance at beginning of period | 66,559 | |
Accumulated impairment | (66,559) | (66,559) |
Net balance at beginning of period | 0 | |
Additions | 0 | |
Impairments | 0 | |
Foreign currency translation | 0 | |
Net balance at end of period | 0 | $ 0 |
KPP-Orlando | ||
Goodwill [Roll Forward] | ||
Net balance at end of period | $ 16,100 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 442,694 | $ 443,145 |
Accumulated Amortization | (90,486) | (70,814) |
Customer lists / relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 363,269 | 363,549 |
Accumulated Amortization | (51,311) | (41,695) |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 44,923 | 45,028 |
Accumulated Amortization | (20,582) | (17,508) |
Trademarks / trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 16,619 | 16,681 |
Accumulated Amortization | (3,583) | (3,153) |
Non-compete agreements and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 17,332 | 17,336 |
Accumulated Amortization | $ (14,516) | (7,974) |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 17 years | |
Gross Amount | $ 551 | 551 |
Accumulated Amortization | $ (494) | $ (484) |
Minimum | Customer lists / relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 6 years | |
Minimum | Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 7 years | |
Minimum | Trademarks / trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | |
Minimum | Non-compete agreements and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 1 year | |
Maximum | Customer lists / relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 38 years | |
Maximum | Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 20 years | |
Maximum | Trademarks / trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 40 years | |
Maximum | Non-compete agreements and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years |
Debt (Details)
Debt (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Mar. 29, 2024 | Sep. 29, 2023 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2025 | Sep. 25, 2025 | Sep. 26, 2024 | Sep. 28, 2023 | Jun. 21, 2023 USD ($) | Dec. 13, 2019 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||||
Consolidated Total Net Leverage Ratio | 3,890 | 3,890 | |||||||||||
Total Average Bank Borrowings | $ 391,900 | $ 120,700 | |||||||||||
Amortization of debt issuance costs | 2,985 | $ 1,882 | |||||||||||
Deferred Debt Issuance Cost, Writeoff | $ 600 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Amortization of debt issuance costs | $ 400 | $ 700 | 1,600 | $ 1,200 | |||||||||
Credit Agreement 2019 | Revolving Credit Facility [Member] | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 740,000 | 740,000 | 800,000 | $ 800,000 | |||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 740,000 | 740,000 | 800,000 | $ 800,000 | |||||||||
Long-term Line of Credit | 382,000 | 382,000 | 363,000 | ||||||||||
Line of Credit Facility Remaining Borrowing Capacity Excluding LOCs | 358,000 | 358,000 | 437,000 | ||||||||||
Letters of Credit Outstanding, Amount | 70,549 | 70,549 | 51,630 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 287,451 | 287,451 | 385,370 | ||||||||||
Line of Credit Facility Remaining Borrowing Capacity subject to EBITDA limitations | $ 129,313 | $ 129,313 | 196,256 | ||||||||||
Credit Agreement 2023 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt Instrument, Basis Points | 1 | 1 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Ratio | 5 | ||||||||||||
Debt Instrument, Basis Points | 1 | 1 | |||||||||||
Minimum Liquidity Debt Covenant under Credit Agreement | 0.50 | ||||||||||||
Line of Credit Facility, Interest Rate at Period End | 7.13% | 7.13% | |||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Elected Increase | 0.50 | 0.50 | |||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Ratio, Material Permitted Investment | 5 | 5 | |||||||||||
Credit Agreement 2023 | Forecast | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Ratio, Q4 2024 - Q3 2025 | 4.50 | ||||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Ratio, Q4 2025 & thereafter | 4 | ||||||||||||
Minimum Liquidity Debt Covenant under Credit Agreement | 1 | ||||||||||||
Consolidated Total Indebtedness to Consolidated EBITDA, Ratio, Q4 2023 - Q3 2024 | 4.75 | ||||||||||||
Credit Agreement 2023 | Maximum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt Instrument, Interest Coverage Ratio | 3 | 3 | |||||||||||
Credit Agreement 2023 | Minimum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Debt Instrument, Interest Coverage Ratio | 1 | 1 | |||||||||||
Credit Agreement 2023 | Revolving Credit Facility [Member] | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 740,000 | ||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 740,000 | ||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 4,800 | ||||||||||||
Credit Agreement 2023 | Revolving Credit Facility [Member] | Maximum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | ||||||||||||
Credit Agreement 2023 | Revolving Credit Facility [Member] | Minimum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||||||||||||
Credit Agreement 2023 | Letter of Credit | Maximum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 2.25% | ||||||||||||
Credit Agreement 2023 | Letter of Credit | Minimum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 1.375% | ||||||||||||
Letter of Credit | Revolving Credit Facility [Member] | JPF | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Letters of Credit Outstanding, Amount | $ 65,100 | $ 65,100 | $ 46,100 |
Pension Plans - Pension plan ne
Pension Plans - Pension plan net periodic benefit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Qualified Pension Plan | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ (1,445) | $ (840) | $ (4,336) | $ (2,522) |
Interest cost on projected benefit obligation | 7,296 | 4,300 | 21,888 | 12,899 |
Expected return on plan assets | (9,573) | (10,544) | (28,720) | (31,633) |
Amortization of net loss | 1,923 | 1,064 | 5,770 | 3,193 |
Net pension cost (income) | 1,091 | (4,340) | 3,274 | (13,019) |
SERP | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost on projected benefit obligation | 44 | 22 | 132 | 66 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 16 | 0 | 46 |
Net pension cost (income) | $ 44 | $ 38 | $ 132 | $ 112 |
Pension Plans - Contributions (
Pension Plans - Contributions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Qualified Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Contributions paid-to-date | $ 0 | |
Expected future contributions | $ 0 | |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans | ||
Contributions paid-to-date | 0.4 | $ 0.5 |
Expected future contributions | $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Sep. 29, 2023 USD ($) | |
Loss Contingencies [Line Items] | |
Notional Value of Contract, Percent | 60% |
Offset Agreement | |
Loss Contingencies [Line Items] | |
Notional amount | $ 220.9 |
Estimate of possible loss | 18.8 |
Contract with Customer, Liability | 18.8 |
New Hartford | |
Loss Contingencies [Line Items] | |
Estimate of environmental remediation cost | 2.3 |
Payments for environmental remediation | 1.8 |
New Hartford | Other accruals and payables | |
Loss Contingencies [Line Items] | |
Estimate of environmental remediation cost | 0.1 |
New Hartford | Accruals and payables and other long-term liabilties | |
Loss Contingencies [Line Items] | |
Estimate of environmental remediation cost | 0.5 |
Bloomfield | |
Loss Contingencies [Line Items] | |
Estimate of environmental remediation cost | 2.3 |
Payments for environmental remediation | 15.5 |
Environmental liability | 10.3 |
Estimated remediation liability | $ 20.8 |
Discount rate (as a percent) | 8% |
Bloomfield | Other accruals and payables | |
Loss Contingencies [Line Items] | |
Accrual for Environmental Loss Contingencies, Liabilities, Other Accruals & Payables | $ 0.4 |
Computation of Earnings Per S_3
Computation of Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net earnings (loss) | $ 1,466 | $ (280) | $ 5,952 | $ 7,369 |
Basic: | ||||
Weighted average number of shares outstanding (in shares) | 28,247 | 28,037 | 28,189 | 27,997 |
Basic earnings per share (in usd per share) | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 |
Diluted: | ||||
Weighted average shares issuable on exercise of dilutive stock options (in shares) | 103 | 0 | 135 | 79 |
Diluted (in shares) | 28,350 | 28,037 | 28,324 | 28,076 |
Diluted earnings per share from continuing operations | $ 0.05 | $ (0.01) | $ 0.21 | $ 0.26 |
Computation of Earnings Per S_4
Computation of Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
2024 Notes | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Aggregate shares to be issued upon conversion, convertible | 3,056,879 | 3,056,879 | 3,056,879 | 3,056,879 |
Stock Compensation Plan | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive securities excluded from EPS | 660,947 | 756,809 | 664,923 | 707,584 |
Equity Securities | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 50,792 |
Share-based Arrangements - Comp
Share-based Arrangements - Compensation Arrangements by Share-based Payment Award (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock compensation expense | $ 1,262 | $ 1,334 | $ 5,190 | $ 6,145 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | 100% | ||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock compensation expense | 1,300 | $ 1,300 | $ 5,200 | $ 6,100 |
Restructuring and Severance | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock compensation expense | $ 0 | $ 300 | $ 200 |
Share-based Arrangements - Stoc
Share-based Arrangements - Stock Options Activity (Details) - Stock Options - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 29, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding at beginning of the period (in shares) | 615,742 | 710,782 | |||
Granted (in shares) | 48,987 | 48,987 | |||
Exercised (in shares) | 0 | 0 | |||
Forfeited or expired (in shares) | (5,505) | (100,545) | |||
Outstanding at end of period (in shares) | 659,224 | 659,224 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||
Options outstanding at beginning of period, Weighted-average exercise price (in usd per share) | $ 52.02 | $ 52.02 | $ 54.31 | $ 54.12 | |
Granted, Weighted-average exercise price (in usd per share) | 24.48 | 24.48 | |||
Exercised, Weighted-average exercise price (in usd per share) | 0 | 0 | |||
Forfeited or expired, Weighted average exercise price (in usd per share) | 63.09 | 53.45 | |||
Options outstanding end of period, Weighted-average exercise price (in usd per share) | $ 52.02 | $ 52.02 | $ 54.31 | $ 54.12 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Expected option term | 6 years 10 months 24 days | 6 years 6 months | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate | 40.20% | 35.50% | |||
Risk-free interest rate | 4% | 2.90% | |||
Expected dividend yield | 3.30% | 2% | |||
Per share fair value of options granted (in usd per share) | $ 8.17 | $ 10.22 |
Share-based Arrangements - Rest
Share-based Arrangements - Restricted Stock Activity (Details) - Restricted Stock Awards - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 29, 2023 | Sep. 29, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Restricted Stock outstanding at beginning of the period (in shares) | 227,196 | 159,521 |
Granted (in shares) | 26,740 | 167,572 |
Vested (in shares) | (34,507) | (99,239) |
Forfeited or expired (in shares) | (13,960) | (22,385) |
Restricted Stock outstanding at end of period (in shares) | 205,469 | 205,469 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Restricted Stock outstanding at beginning of period, Weighted-average grant date fair value (usd per share) | $ 32.58 | $ 45.78 |
Granted, Weighted Average Grant Date Fair Value (usd per share) | 24.31 | 24.53 |
Vested, Weighted Average Grant Date Fair Value (usd per share) | 42.02 | 45.08 |
Forfeited or expired, Weighted Average Grant Date Fair Value (usd per share) | 32.98 | 35.58 |
Restricted Stock outstanding at end of period Weighted-average grant date fair value (usd per share) | $ 29.89 | $ 29.89 |
Share-based Arrangements Perfor
Share-based Arrangements Performance Shares (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 29, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | 100% | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
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 | |||||
Expected option term | 6 years 10 months 24 days | 6 years 6 months | |||
Risk-free interest rate | 4% | 2.90% | |||
Expected dividend yield | 3.30% | 2% | |||
Per share fair value of options granted (in usd per share) | $ 8.17 | $ 10.22 | |||
Restricted Stock Awards | |||||
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 | 205,469 | 205,469 | 227,196 | 159,521 | |
Granted (in shares) | 26,740 | 167,572 | |||
Vested (in shares) | (34,507) | (99,239) | |||
Forfeited or expired (in shares) | (13,960) | (22,385) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 29.89 | $ 29.89 | $ 32.58 | $ 45.78 | |
Granted, Weighted Average Grant Date Fair Value (usd per share) | 24.31 | 24.53 | |||
Vested, Weighted Average Grant Date Fair Value (usd per share) | 42.02 | 45.08 | |||
Forfeited or expired, Weighted Average Grant Date Fair Value (usd per share) | $ 32.98 | $ 35.58 | |||
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 | 279,847 | 279,847 | 314,552 | 172,144 | |
Granted (in shares) | 0 | 178,385 | |||
Vested (in shares) | 0 | 0 | |||
Forfeited or expired (in shares) | (34,705) | (70,682) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 45.25 | $ 45.25 | $ 45 | $ 60.44 | |
Granted, Weighted Average Grant Date Fair Value (usd per share) | 0 | 32.03 | |||
Vested, Weighted Average Grant Date Fair Value (usd per share) | 0 | 0 | |||
Forfeited or expired, Weighted Average Grant Date Fair Value (usd per share) | $ 42.98 | $ 48.89 | |||
Expected option term | 2 years 10 months 24 days | 2 years 10 months 24 days | |||
Expected volatility | 41.20% | 39.40% | |||
Risk-free interest rate | 4.40% | 1.70% | |||
Expected dividend yield | 3.30% | 1.90% | |||
Per share fair value of options granted (in usd per share) | $ 38.83 | $ 68.10 |
Shareholders' Equity and Accu_3
Shareholders' Equity and Accumulated Other Comprehensive Income - Changes in Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Capitalization, Equity [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance(1) | $ 686,329 | $ 777,623 | $ 680,756 | $ 795,453 | |
Comprehensive (loss) income | (2,864) | (9,334) | 9,579 | (15,502) | |
Dividends declared (per share of common stock, $0.20 and $0.20 and $0.60 and $0.60, respectively) | (5,650) | (5,604) | (16,915) | (16,791) | |
Employee stock plans and related tax benefit | 495 | 430 | 1,465 | 1,696 | |
Purchase of treasury shares | (277) | (64) | (780) | (762) | |
Share-based compensation expense | 1,262 | 1,334 | 5,190 | 6,145 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (5,766) | (9,875) | (2,297) | (25,347) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | 0 | (5,854) | |||
Ending balance | 679,295 | 764,385 | 679,295 | 764,385 | |
Retained earnings | 674,271 | 674,271 | $ 685,234 | ||
Previously Reported | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning balance(1) | 1,300 | 900 | |||
Comprehensive (loss) income | $ (8,429) | $ (14,154) | |||
Retained earnings | $ 688,457 | ||||
Accounting Standards Update 2020-06 Cumulative Effect, Period of Adoption | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $ 0 | $ 0 |
Shareholders' Equity and Accu_4
Shareholders' Equity and Accumulated Other Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 01, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance(1) | $ 686,329 | $ 777,623 | $ 680,756 | $ 795,453 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (5,766) | (9,875) | (2,297) | (25,347) | ||||
Other comprehensive (loss) income | (4,330) | (9,054) | 3,627 | (22,871) | ||||
Ending balance | 679,295 | 764,385 | 679,295 | 764,385 | ||||
Other Comprehensive Income, Derivative Instruments | 1,490 | 0 | 1,490 | 0 | $ 1,532 | $ 0 | $ 0 | $ 7 |
Other Comprehensive Income (Loss), Derivative Instruments, Unrealized Loss / Gain, Tax | 138 | 0 | 692 | 0 | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (502) | 0 | (808) | (7) | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | $ 445 | $ 259 | $ 1,336 | $ 756 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 460 | $ 0 | $ 2,298 | $ 0 | ||||
Other Comprehensive Income, Derivative Instruments, Reclassification to Net Income, Tax | (151) | 0 | (243) | 0 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (13) | 0 | 449 | 0 | ||||
Other Comprehensive Income, Other, Net of Tax | (42) | 0 | 1,490 | (7) | ||||
Total accumulated other comprehensive loss | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Ending balance | (154,794) | (134,256) | (154,794) | (134,256) | ||||
Foreign currency translation | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance(1) | 1,398 | (6,707) | (2,071) | 8,765 | ||||
Other comprehensive (loss) income | (5,766) | (9,875) | (2,297) | (25,347) | ||||
Ending balance | (4,368) | (16,582) | (4,368) | (16,582) | ||||
Pension and other post-retirement benefits | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 1,478 | 821 | 4,434 | 2,483 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning balance(1) | (153,394) | (118,495) | (156,350) | (120,157) | ||||
Other comprehensive (loss) income | 1,478 | 821 | 4,434 | 2,483 | ||||
Ending balance | $ (151,916) | $ (117,674) | $ (151,916) | $ (117,674) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Sep. 29, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate | 24% | 28.90% | 28.50% | 18.10% |
Uncategorized Items - kamn-2023
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 24,154,000 |
Cash, Including Discontinued Operations | us-gaap_CashIncludingDiscontinuedOperations | $ 140,800,000 |