Cover
Cover - shares | 3 Months Ended | |
Apr. 03, 2021 | May 03, 2021 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-7087 | |
Entity Registrant Name | ASTRONICS CORPORATION | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-0959303 | |
Entity Address, Address Line One | 130 Commerce Way | |
Entity Address, City or Town | East Aurora | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14052 | |
City Area Code | 716 | |
Local Phone Number | 805-1599 | |
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | ATRO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000008063 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Filer Category | Accelerated Filer | |
Common Class Undefined | ||
Document Information | ||
Entity Common Stock, Shares Outstanding (in shares) | 24,478,464 | |
Convertible Class B Stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding (in shares) | 6,446,607 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and Cash Equivalents | $ 30,729 | $ 40,412 |
Accounts Receivable, Net of Allowance for Estimated Credit Losses | 98,701 | 93,056 |
Inventories | 155,254 | 157,059 |
Prepaid Expenses and Other Current Assets | 25,552 | 26,420 |
Total Current Assets | 310,236 | 316,947 |
Property, Plant and Equipment, Net of Accumulated Depreciation | 104,931 | 106,678 |
Operating Right-of-Use Assets | 17,750 | 18,953 |
Other Assets | 8,813 | 8,999 |
Intangible Assets, Net of Accumulated Amortization | 105,930 | 109,886 |
Goodwill | 58,297 | 58,282 |
Total Assets | 605,957 | 619,745 |
Current Liabilities: | ||
Accounts Payable | 22,216 | 26,446 |
Current Operating Lease Liabilities | 4,856 | 4,998 |
Accrued Expenses and Other Current Liabilities | 40,723 | 37,721 |
Customer Advance Payments and Deferred Revenue | 27,407 | 24,571 |
Total Current Liabilities | 95,202 | 93,736 |
Long-term Debt | 173,000 | 173,000 |
Long-term Operating Lease Liabilities | 15,415 | 16,637 |
Other Liabilities | 62,036 | 66,001 |
Total Liabilities | 345,653 | 349,374 |
Shareholders’ Equity: | ||
Common Stock | 347 | 347 |
Accumulated Other Comprehensive Loss | (16,653) | (16,450) |
Other Shareholders’ Equity | 276,610 | 286,474 |
Total Shareholders’ Equity | 260,304 | 270,371 |
Total Liabilities and Shareholders’ Equity | $ 605,957 | $ 619,745 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 105,857 | $ 157,584 |
Cost of Products Sold | 91,584 | 121,865 |
Gross Profit | 14,273 | 35,719 |
Selling, General and Administrative Expenses | 23,785 | 28,867 |
Impairment Loss | 0 | 74,408 |
Loss from Operations | (9,512) | (67,556) |
Other Expense, Net of Other Income | 534 | 388 |
Interest Expense, Net of Interest Income | 1,758 | 1,333 |
Loss Before Income Taxes | (11,804) | (69,277) |
Provision for (Benefit from) Income Taxes | 105 | (2,314) |
Net Loss | $ (11,909) | $ (66,963) |
Loss Per Share: | ||
Basic (in usd per share) | $ (0.39) | $ (2.17) |
Diluted (in usd per share) | $ (0.39) | $ (2.17) |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Loss | $ (11,909) | $ (66,963) |
Other Comprehensive (Loss) Income: | ||
Foreign Currency Translation Adjustments | (637) | (2,304) |
Retirement Liability Adjustment – Net of Tax | 434 | 215 |
Total Other Comprehensive Loss | (203) | (2,089) |
Comprehensive Loss | $ (12,112) | $ (69,052) |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (11,909) | $ (66,963) |
Adjustments to Reconcile Net Loss to Cash Flows from Operating Activities: | ||
Depreciation and Amortization | 7,453 | 7,971 |
Provisions for Non-Cash Losses on Inventory and Receivables | 1,269 | 872 |
Equity-based Compensation Expense | 2,097 | 1,703 |
Deferred Tax (Benefit) Expense | (51) | 2,050 |
Operating Lease Non-Cash Expense | 1,185 | 1,210 |
Impairment Loss | 0 | 74,408 |
Other | 1,315 | 968 |
Cash Flows from Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (6,010) | 13,644 |
Inventories | 430 | (7,224) |
Accounts Payable | (4,171) | 6,295 |
Accrued Expenses | (685) | (5,730) |
Other Current Assets and Liabilities | 961 | (557) |
Customer Advance Payments and Deferred Revenue | 2,915 | (490) |
Income Taxes | (246) | (3,591) |
Operating Lease Liabilities | (1,307) | (1,217) |
Supplemental Retirement and Other Liabilities | (109) | (99) |
Cash Flows from Operating Activities | (6,863) | 23,250 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (1,905) | (2,793) |
Cash Flows from Investing Activities | (1,905) | (2,793) |
Cash Flows from Financing Activities: | ||
Proceeds from Long-term Debt | 0 | 150,000 |
Payments for Long-term Debt | 0 | (5,000) |
Purchase of Outstanding Shares for Treasury | 0 | (7,732) |
Finance Lease Principal Payments | (501) | (461) |
Cash Flows from Financing Activities | (553) | 136,840 |
Effect of Exchange Rates on Cash | (362) | (839) |
(Decrease) Increase in Cash and Cash Equivalents | (9,683) | 156,458 |
Cash and Cash Equivalents at Beginning of Period | 40,412 | 31,906 |
Cash and Cash Equivalents at End of Period | 30,729 | 188,364 |
Proceeds of Stock Options Exercised, Net Of Taxes Remitted | $ (52) | $ 33 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common StockCommon Class Undefined | Common StockConvertible Class B Stock | Additional Paid in Capital | Accumulated Comprehensive Loss | Retained Earnings | Treasury Stock |
Beginning of Period at Dec. 31, 2019 | $ 269 | $ 76 | $ 76,340 | $ (15,628) | $ 428,584 | $ (100,784) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Exercise of Stock Options | 1 | 1,735 | |||||
Class B Stock Converted to Common Stock | 2 | (2) | |||||
Foreign Currency Translation Adjustments | (2,304) | ||||||
Retirement Liability Adjustment – Net of Tax | $ 215 | 215 | |||||
Net Loss | (66,963) | (66,963) | |||||
Purchase of Shares | (7,732) | ||||||
End of Period at Mar. 28, 2020 | 313,809 | $ 271 | $ 75 | 78,075 | (17,717) | 361,621 | $ (108,516) |
Beginning of Period (in shares) at Dec. 31, 2019 | 26,874 | 7,650 | 3,526 | ||||
Increase (Decrease) in Stockholders' Equity (in shares) | |||||||
Net Issuance from Exercise of Stock Options (in shares) | 25 | 15 | |||||
Conversion of Class B Shares to Common Shares (in shares) | 189 | (189) | |||||
Purchase of shares (in shares) | 282 | ||||||
End of Period (in shares) at Mar. 28, 2020 | 27,088 | 7,476 | 3,808 | ||||
Beginning of Period at Dec. 31, 2020 | 270,371 | $ 278 | $ 69 | 82,187 | (16,450) | 312,803 | $ (108,516) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Exercise of Stock Options | 0 | 2,045 | |||||
Class B Stock Converted to Common Stock | 1 | (1) | |||||
Foreign Currency Translation Adjustments | (637) | ||||||
Retirement Liability Adjustment – Net of Tax | 434 | 434 | |||||
Net Loss | (11,909) | (11,909) | |||||
Purchase of Shares | 0 | ||||||
End of Period at Apr. 03, 2021 | $ 260,304 | $ 279 | $ 68 | $ 84,232 | $ (16,653) | $ 300,894 | $ (108,516) |
Beginning of Period (in shares) at Dec. 31, 2020 | 27,825 | 6,877 | 3,808 | ||||
Increase (Decrease) in Stockholders' Equity (in shares) | |||||||
Net Issuance from Exercise of Stock Options (in shares) | 19 | 13 | |||||
Conversion of Class B Shares to Common Shares (in shares) | 53 | (53) | |||||
Purchase of shares (in shares) | 0 | ||||||
End of Period (in shares) at Apr. 03, 2021 | 27,897 | 6,837 | 3,808 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. Operating Results The results of operations for any interim period are not necessarily indicative of results for the full year. In addition, the COVID-19 pandemic has increased the volatility we experience in our financial results in recent periods and this could continue in future interim and annual periods. Operating results for the three months ended April 3, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation’s 2020 annual report on Form 10-K. Description of the Business Astronics Corporation (“Astronics” or the “Company”) is a leading provider of advanced technologies to the global aerospace, defense and electronics industries. Our products and services include advanced, high-performance electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, systems and certification, aircraft structures and automated test systems. We have principal operations in the United States (“U.S.”), Canada, France and England, as well as engineering offices in the Ukraine and India. On February 13, 2019, the Company completed a divestiture of its semiconductor test business within the Test Systems segment. The transaction included two elements of contingent earnouts. The First Earnout is calculated based on a multiple of all future sales of existing and certain future derivative products to existing and future customers in each annual period from 2019 through 2022. The First Earnout may not exceed $35.0 million in total. The Second Earnout is calculated based on a multiple of future sales related to an existing product and program with an existing customer exceeding an annual threshold for each annual period from 2019 through 2022. The Second Earnout is not capped. For the Second Earnout, if the applicable sales in an annual period do not exceed the annual threshold, no amounts will be paid relative to such annual period; the sales in such annual period do not carry over to the next annual period. Due to the degree of uncertainty associated with estimating the future sales levels of the divested business and its underlying programs, and the lack of reliable predictive market information, the Company will recognize such earnout proceeds, if received, as additional gain on sale when such proceeds are realized or realizable. In February 2021, the Company was notified by the buyer that they have calculated $10.7 million as being payable to the Company under the contingent earnouts related to the year ended December 31, 2020. In April 2021, the buyer provided a revised calculation, indicating, rather, that $7.1 million is payable to the Company for the 2020 earnout. The Company and the buyer are currently reviewing the calculations and underlying data and are engaged in negotiations. The Company expects to record the additional gain for whatever amount is realized on the sale when that review is complete and agreement is reached. The timing and amount of any amount realized is uncertain and subject to risks and uncertainties as we continue the review and negotiation process. Impact of the COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) surfaced in Wuhan, China, and has since spread to other countries, including the United States. On March 11, 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic. The COVID-19 pandemic had a sudden and significant impact on the global economy, and particularly in the aerospace industry, resulting in the grounding of the majority of the global commercial transportation fleet and significant cost cutting and cash preservation actions by the global airlines. This in turn has resulted in a significant reduction in airlines spending for both new aircraft and on upgrading their existing fleet with the Company’s products. This low level of investment by the airlines has continued into 2021, and while the industry is seeing some improvement on rising vaccination rates and easing travel restrictions, the ultimate impact of COVID-19 on our business results of operations, financial condition and cash flows is dependent on future developments, including the duration of the pandemic, vaccination rates and efficacy and the related length of impact on the global economy and the aerospace industry, which are uncertain and cannot be predicted at this time. In response to the global COVID-19 pandemic, we took immediate and aggressive action early in 2020 to minimize the spread of COVID-19 in our workplaces and reduce costs. Since the early days of the pandemic, we have been following guidance from the World Health Organization and the U.S. Center for Disease Control to protect employees and prevent the spread of the virus within all of our facilities globally. Some of the actions implemented include: social distancing; appropriate personal protective equipment; facility deep cleaning; flexible work-from-home scheduling; pre-shift temperature screenings, where allowed by law; and restrictions on facility visitors and unnecessary travel. Material actions to reduce costs included: (1) reducing our workforce to align operations with customer demand; (2) suspension of certain benefit programs; and (3) delaying non-essential capital projects and minimizing discretionary spending. At the same time, we addressed the ongoing needs of our business to continue to serve our customers. In addition to these measures, we amended our revolving credit facility in May 2020, as further described in Note 7. We are also monitoring the impacts of COVID-19 on the fair value of assets. Refer to Note 6 for a discussion of goodwill impairment charges recorded in the first quarter of 2020. Should future changes in sales, earnings and cash flows differ significantly from our expectations, long-lived assets to be held and used and goodwill could become impaired in the future. The Company qualified for government subsidies from the Canadian and French governments as a result of the COVID-19 pandemic’s impact on our foreign operations. The Canadian and French subsidies are income-based grants intended to reimburse the Company for certain employee wages. The grants are recognized as income over the periods in which the Company recognizes as expenses the costs the grants are intended to defray. The Company recorded $0.6 million in COVID-19 related government assistance in the Consolidated Condensed Statements of Operations for the three months ended April 3, 2021, of which $0.5 million and $0.1 million was included in Cost of Products Sold and Selling, General and Administrative (“SG&A”) expenses, respectively. Trade Accounts Receivable and Contract Assets The allowance for estimated credit losses is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as the age of the receivable balances, historical experience, credit quality, current economic conditions, and reasonable and supportable forecasts of future economic conditions that may affect a customer’s ability to pay. The allowance for estimated credit losses balance was $3.5 million and $3.2 million at April 3, 2021 and December 31, 2020, respectively. The Company’s bad debt expense was $0.3 million during the three months ended April 3, 2021 and insignificant in the three months ended March 28, 2020. Total recoveries and writeoffs and charged against the allowance were insignificant in the three months ended April 3, 2021 and March 28, 2020. The Company's exposure to credit losses may increase if its customers are adversely affected by global economic recessions, disruption associated with the current COVID-19 pandemic, industry conditions, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade receivables and contract assets as airlines and other aerospace company’s cash flows are impacted by the COVID-19 pandemic. Cost of Products Sold, Engineering and Development, Interest, and Selling, General and Administrative Expenses Cost of products sold includes the costs to manufacture products such as direct materials and labor and manufacturing overhead as well as all engineering and development costs. The Company is engaged in a variety of engineering and design activities as well as basic research and development activities directed to the substantial improvement or new application of the Company’s existing technologies. These costs are expensed when incurred and included in cost of products sold. Research and development, design and related engineering amounted to $21.6 million and $26.2 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Selling, general and administrative expenses include costs primarily related to our sales and marketing departments and administrative departments. Interest expense is shown net of interest income. Interest income was insignificant for the three months ended April 3, 2021 and March 28, 2020. Goodwill Impairment The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. As a result of the qualitative factors related to the COVID-19 pandemic, as discussed above, we performed interim quantitative assessments for the reporting units which had goodwill as of March 28, 2020. Based on our quantitative assessment, the Company recorded goodwill impairment charges associated with four Aerospace reporting units, totaling $73.7 million within the Impairment Loss line in the Consolidated Condensed Statement of Operations in the three months ended March 28, 2020. As of April 3, 2021, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed in the three months then ended. For additional information regarding the quantitative test and the related goodwill impairment see Note 6. Valuation of Long-Lived Assets Long-lived assets are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows with the carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. In conjunction with the deteriorating economic conditions associated with the COVID-19 pandemic, we recorded an impairment charge to right-of-use (“ROU”) assets of approximately $0.7 million incurred in one reporting unit in the Aerospace segment within the Impairment Loss line in the Consolidated Condensed Statement of Operations in the three months ended March 28, 2020. As of April 3, 2021, the Company concluded that no indicators of additional impairment relating to long-lived assets existed. Foreign Currency Translation The aggregate foreign currency transaction gain or loss included in operations was insignificant for the three months ended April 3, 2021 and March 28, 2020. Newly Adopted and Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU No. 2018-14 Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) The standard includes updates to the disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. This ASU did not have a significant impact on our consolidated financial statements, as it only includes changes to disclosure requirements. Date of adoption: Q1 2021 ASU No. 2019-12 The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improve consistent application by clarifying and amending existing guidance. The amendments of this standard are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued, with the amendments to be applied on a respective, modified retrospective or prospective basis, depending on the specific amendment. This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. As we do not have any significant activity associated with these items, this ASU did not have a material impact on consolidated results or operations and financial condition. Date of adoption: Q1 2021 Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU No. 2020-04 The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The administrator of LIBOR has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. Extending the publication of certain USD LIBOR tenors until June 30, 2023 would allow most legacy USD LIBOR contracts to mature before LIBOR experiences disruptions. The Company is currently evaluating the impact of adopting this guidance. Planned date of adoption: Before December 31, 2022 We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. |
Revenue
Revenue | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenue is recognized when, or as, the Company transfers control of promised products or services to a customer in an amount that reflects the consideration the Company expects to be entitled in exchange for transferring those products or services. Sales shown on the Company's Consolidated Condensed Statements of Operations are from contracts with customers. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within a range from 30 to 90 days after the performance obligation has been satisfied; or in certain cases, up-front deposits. In circumstances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that the Company's contracts generally do not include a significant financing component. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from sales. The Company recognizes an asset for the incremental, material costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be longer than one year and the costs are expected to be recovered. These incremental costs include, but are not limited to, sales commissions incurred to obtain a contract with a customer. As of April 3, 2021, the Company does not have material incremental costs on any open contracts with an original expected duration of greater than one year. The Company recognizes an asset for certain, material costs to fulfill a contract if it is determined that the costs relate directly to a contract or an anticipated contract that can be specifically identified, generate or enhance resources that will be used in satisfying performance obligations in the future, and are expected to be recovered. Such costs are amortized on a systematic basis that is consistent with the transfer to the customer of the goods to which the asset relates. Start-up costs are expensed as incurred. Capitalized fulfillment costs are included in Inventories in the accompanying Consolidated Condensed Balance Sheets. Should future orders not materialize or it is determined the costs are no longer probable of recovery, the capitalized costs are written off. As of April 3, 2021, the Company does not have material capitalized fulfillment costs. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts which are, therefore, not distinct. Thus, the contract's transaction price is the revenue recognized when or as that performance obligation is satisfied. Promised goods or services that are immaterial in the context of the contract are not separately assessed as performance obligations. Some of our contracts have multiple performance obligations, most commonly due to the contract covering multiple phases of the product lifecycle (development, production, maintenance and support). For contracts with multiple performance obligations, the contract’s transaction price is allocated to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate standalone selling price is the expected cost plus margin approach, under which expected costs are forecast to satisfy a performance obligation and then an appropriate margin is added for that distinct good or service. Shipping and handling activities that occur after the customer has obtained control of the good are considered fulfillment activities, not performance obligations. Some of our contracts offer price discounts or free units after a specified volume has been purchased. The Company evaluates these options to determine whether they provide a material right to the customer, representing a separate performance obligation. If the option provides a material right to the customer, revenue is allocated to these rights and recognized when those future goods or services are transferred, or when the option expires. Contract modifications are routine in the performance of our contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are distinct, and, therefore, are accounted for as new contracts. The effect of modifications has been reflected when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. The majority of the Company’s revenue from contracts with customers is recognized at a point in time, when the customer obtains control of the promised product, which is generally upon delivery and acceptance by the customer. These contracts may provide credits or incentives, which may be accounted for as variable consideration. Variable consideration is estimated at the most likely amount to predict the consideration to which the Company will be entitled, and only to the extent it is probable that a subsequent change in estimate will not result in a significant revenue reversal when estimating the amount of revenue to recognize. Variable consideration is treated as a change to the sales transaction price and based on an assessment of all information (i.e., historical, current and forecasted) that is reasonably available to the Company, and estimated at contract inception and updated at the end of each reporting period as additional information becomes available. Most of our contracts do not contain rights to return product; where this right does exist, it is evaluated as possible variable consideration. For contracts that are subject to the requirement to accrue anticipated losses, the Company recognizes the entire anticipated loss in the period that the loss becomes probable. For contracts with customers in which the Company promises to provide a product to the customer that has no alternative use to the Company and the Company has enforceable rights to payment for progress completed to date inclusive of profit, the Company satisfies the performance obligation and recognizes revenue over time, using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, material and overhead. The Company also recognizes revenue from service contracts (including service-type warranties) over time. The Company recognizes revenue over time during the term of the agreement as the customer is simultaneously receiving and consuming the benefits provided throughout the Company’s performance. The Company typically recognizes revenue on a straight-line basis throughout the contract period. On April 3, 2021, we had $297.5 million of remaining performance obligations, which we refer to as total backlog. We expect to recognize approximately $217.2 million of our remaining performance obligations as revenue in 2021. Costs in excess of billings includes unbilled amounts resulting from revenues under contracts with customers that are satisfied over time and when the cost-to-cost measurement method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Costs in excess of billings are classified as current assets, within Accounts Receivable, Net of Allowance for Estimated Credit Losses on our Consolidated Condensed Balance Sheets. Billings in excess of cost includes billings in excess of revenue recognized as well as other elements of deferred revenue, which includes advanced payments, up-front payments, and progress billing payments. Billings in excess of cost are reported in our Consolidated Condensed Balance Sheets, classified as current liabilities, within Customer Advance Payments and Deferred Revenue, and non-current liabilities, within Other Liabilities. To determine the revenue recognized in the period from the beginning balance of billings in excess of cost, the contract liability as of the beginning of the period is recognized as revenue on a contract-by-contract basis when the Company satisfies the performance obligation related to the individual contract. Once the beginning contract liability balance for an individual contract has been fully recognized as revenue, any additional payments received in the period are recognized as revenue once the related costs have been incurred. We recognized $8.3 million and $8.7 million for the three months ended April 3, 2021 and March 28, 2020, respectively, in revenues that were included in the contract liability balance at the beginning of the period. The Company's contract assets and contract liabilities consist primarily of costs and profits in excess of billings and billings in excess of cost and profits, respectively. The following table presents the beginning and ending balances of contract assets and contract liabilities during the three months ended April 3, 2021: (In thousands) Contract Assets Contract Liabilities Beginning Balance, January 1, 2021 $ 17,697 $ 28,641 Ending Balance, April 3, 2021 $ 25,510 $ 31,285 The following table presents our revenue disaggregated by Market Segments as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Aerospace Segment Commercial Transport $ 38,208 $ 102,775 Military 20,982 18,113 Business Jet 14,028 15,006 Other 8,198 5,176 Aerospace Total 81,416 141,070 Test Systems Segment Semiconductor — 1,634 Aerospace & Defense 24,441 14,880 Test Systems Total 24,441 16,514 Total $ 105,857 $ 157,584 The following table presents our revenue disaggregated by Product Lines as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Aerospace Segment Electrical Power & Motion $ 29,344 $ 69,456 Lighting & Safety 27,100 37,922 Avionics 14,843 22,143 Systems Certification 878 3,331 Structures 1,053 3,042 Other 8,198 5,176 Aerospace Total 81,416 141,070 Test Systems 24,441 16,514 Total $ 105,857 $ 157,584 |
Inventories
Inventories | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: ( In thousands ) April 3, 2021 December 31, 2020 Finished Goods $ 26,691 $ 26,964 Work in Progress 24,777 21,987 Raw Material 103,786 108,108 $ 155,254 $ 157,059 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Apr. 03, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, Plant and Equipment consisted of the following: (In thousands) April 3, 2021 December 31, 2020 Land $ 9,848 $ 9,891 Buildings and Improvements 75,540 75,493 Machinery and Equipment 120,629 119,444 Construction in Progress 5,770 5,843 211,787 210,671 Less Accumulated Depreciation 106,856 103,993 $ 104,931 $ 106,678 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table summarizes acquired intangible assets as follows: April 3, 2021 December 31, 2020 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 11 years $ 2,146 $ 1,913 $ 2,146 $ 1,891 Non-compete Agreement 4 years 11,082 10,212 11,082 10,085 Trade Names 10 years 11,476 7,784 11,512 7,537 Completed and Unpatented Technology 9 years 47,982 26,939 48,043 25,766 Customer Relationships 15 years 142,367 62,275 142,478 60,096 Total Intangible Assets 12 years $ 215,053 $ 109,123 $ 215,261 $ 105,375 All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Amortization Expense $ 3,855 $ 4,265 Amortization expense for acquired intangible assets expected for 2021 and for each of the next five years is summarized as follows: (In thousands) 2021 $ 15,356 2022 $ 14,911 2023 $ 13,878 2024 $ 12,856 2025 $ 10,935 2026 $ 9,533 |
Goodwill
Goodwill | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 3, 2021: (In thousands) December 31, 2020 Foreign Currency Translation April 3, 2021 Aerospace $ 36,648 $ 15 $ 36,663 Test Systems 21,634 — 21,634 $ 58,282 $ 15 $ 58,297 The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Beginning in the first quarter of 2020 the COVID-19 pandemic negatively impacted the global economy and aerospace industry. Management considered these qualitative factors and the impact to each reporting unit’s revenue and earnings, and determined that it was more likely than not that the fair value of several reporting units was less than its carrying value. Therefore, we performed a quantitative test for all eight reporting units with goodwill as of March 28, 2020. Based on our quantitative assessments, the Company recorded non-cash goodwill impairment charges associated with four Aerospace reporting units, totaling approximately $73.7 million within the Impairment Loss line in the Consolidated Condensed Statement of Operations in the three months ended March 28, 2020. As of April 3, 2021, the Company concluded that no indicators of additional impairment relating to intangible assets or goodwill existed and an interim test was not performed in the three months then ended. |
Long-Term Debt and Notes Payabl
Long-Term Debt and Notes Payable | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Notes Payable | Long-term Debt and Notes Payable The Company's Fifth Amended and Restated Credit Agreement (the “Agreement”) provided for a $500 million revolving credit line with the option to increase the line by up to $150 million. The maturity date of the loans under the Agreement is February 16, 2023. The maximum leverage ratio of funded debt, net of cash to Adjusted EBITDA (as defined in the Agreement) was 3.75 to 1, increasing to 4.50 to 1 for up to four fiscal quarters following the closing of an acquisition permitted under the Agreement, subject to limitations. The Company paid interest on the unpaid principal amount of the facility at a rate equal to one-, three- or six-month LIBOR plus between 1.00% and 1.50% based upon the Company’s leverage ratio. The Company also paid a commitment fee to the lenders in an amount equal to between 0.10% and 0.20% on the undrawn portion of the credit facility, based upon the Company’s leverage ratio. In May 2020, the Company executed an amendment to the Agreement (the “Amended Facility”), which reduced the revolving credit line from $500 million to $375 million. The Amended Facility suspends the application of the leverage ratio up through and including the second quarter of 2021 (the “suspension period”). The maximum net leverage ratio will be 6.00 to 1 for the third quarter of 2021, 5.50 to 1 for the fourth quarter of 2021, 4.50 to 1 for the first quarter of 2022, and return to 3.75 to 1 for each quarter thereafter. At April 3, 2021, there was $173.0 million outstanding on the revolving credit facility and there remained $200.9 million available subject to the minimum liquidity covenant discussed below, net of outstanding letters of credit. The credit facility allocates up to $20 million of the $375 million revolving credit line for the issuance of letters of credit, including certain existing letters of credit. At April 3, 2021, outstanding letters of credit totaled $1.1 million. Through the third quarter of 2021, the Amended Facility requires the Company to maintain minimum liquidity, defined as unrestricted cash plus the unused revolving credit commitments, of $180 million at all times. Through the second quarter of 2021, the Company is required to maintain a minimum interest coverage ratio of 1.75x on a quarterly basis, except for the first quarter of 2021, which was set at 1.50x. The Company was in compliance with its financial covenants at April 3, 2021. During the suspension period, the Company will pay interest on the unpaid principal amount of the Amended Facility at a rate equal to one-, three- or six-month LIBOR (which shall be at least 1.00%) plus 2.25%. The Company will also pay a commitment fee to the lenders in an amount equal to 0.35% on the undrawn portion of the Amended Facility. After the suspension period, the Company will pay interest on the unpaid principal amount of the Amended Facility at a rate equal to one-, three- or six-month LIBOR (which shall be at least 1.00%) plus between 1.00% to 2.25% based upon the Company’s leverage ratio. The Company will also pay a commitment fee to the lenders in an amount equal to 0.10% to 0.35% on the undrawn portion of the Amended Facility, based upon the Company’s leverage ratio. The Amended Facility provided for the payment of a consent fee of 15 basis points of the commitment for each consenting lender. The Amended Facility also temporarily restricts certain activities, including acquisitions and share repurchases, and requires mandatory prepayments during the suspension period when the Company’s cash balance exceeds $100 million. The Company has not made any prepayments during the three months ended April 3, 2021. The Company’s obligations under the Amended Facility are jointly and severally guaranteed by each domestic subsidiary of the Company other than non-material subsidiaries. The obligations are secured by a first priority lien on substantially all of the Company’s and the guarantors’ assets. In the event of voluntary or involuntary bankruptcy of the Company or any subsidiary, all unpaid principal and other amounts owing under the Amended Facility automatically become due and payable. Other events of default, such as failure to make payments as they become due and breach of financial and other covenants, change of control, judgments over a certain amount, and cross default under other agreements give the agent the option to declare all such amounts immediately due and payable. |
Product Warranties
Product Warranties | 3 Months Ended |
Apr. 03, 2021 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties In the ordinary course of business, the Company warrants its products against defects in design, materials and workmanship typically over periods ranging from twelve Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Balance at Beginning of Period $ 7,018 $ 7,660 Warranties Issued 808 877 Warranties Settled (685) (691) Reassessed Warranty Exposure (299) (724) Balance at End of Period $ 6,842 $ 7,122 |
Leases
Leases | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, the agreement contains a lease. We lease certain facilities and office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The weighted-average remaining term for the Company's operating and financing leases are approximately 6 and 1, respectively. The weighted-average discount rates for the Company's operating and financing leases are approximately 3.3% and 5.1%, respectively. The following is a summary of the Company's ROU assets and liabilities: (In thousands) April 3, 2021 December 31, 2020 Operating Leases: Operating Right-of-Use Assets, Gross $ 28,458 $ 28,678 Less Accumulated Right-of-Use Asset Impairment 1,710 1,710 Less Accumulated Amortization 8,998 8,015 Operating Right-of-Use Assets, Net $ 17,750 $ 18,953 Short-term Operating Lease Liabilities $ 4,856 $ 4,998 Long-term Operating Lease Liabilities 15,415 16,637 Operating Lease Liabilities $ 20,271 $ 21,635 Finance Leases: Finance Right-of-Use Assets, Gross $ 3,585 $ 3,484 Less Accumulated Amortization 2,282 2,039 Finance Right-of-Use Assets, Net — Included in Other Assets $ 1,303 $ 1,445 Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities $ 2,196 $ 2,081 Long-term Finance Lease Liabilities — Included in Other Liabilities 232 734 Finance Lease Liabilities $ 2,428 $ 2,815 The following is a summary of the Company's total lease costs: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Finance Lease Cost: Amortization of Right-of-Use Assets $ 254 $ 255 Interest on Lease Liabilities 35 63 Total Finance Lease Cost 289 318 Operating Lease Cost 1,359 1,448 Right-of-Use Asset Impairment — 691 Variable Lease Cost 391 272 Short-term Lease Cost (excluding month-to-month) 47 67 Less Sublease and Rental (Income) Expense (309) (331) Total Operating Lease Cost 1,488 2,147 Total Net Lease Cost $ 1,777 $ 2,465 The following is a summary of the Company's maturity of lease liabilities: (In thousands) Operating Leases Finance Leases Remainder of 2021 $ 4,120 $ 1,701 2022 5,171 800 2023 3,800 — 2024 2,858 — 2025 2,809 — Thereafter 3,361 — Total Lease Payments 22,119 2,501 Less: Interest 1,848 73 Total Lease Liability $ 20,271 $ 2,428 |
Leases | Leases The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, the agreement contains a lease. We lease certain facilities and office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised. The weighted-average remaining term for the Company's operating and financing leases are approximately 6 and 1, respectively. The weighted-average discount rates for the Company's operating and financing leases are approximately 3.3% and 5.1%, respectively. The following is a summary of the Company's ROU assets and liabilities: (In thousands) April 3, 2021 December 31, 2020 Operating Leases: Operating Right-of-Use Assets, Gross $ 28,458 $ 28,678 Less Accumulated Right-of-Use Asset Impairment 1,710 1,710 Less Accumulated Amortization 8,998 8,015 Operating Right-of-Use Assets, Net $ 17,750 $ 18,953 Short-term Operating Lease Liabilities $ 4,856 $ 4,998 Long-term Operating Lease Liabilities 15,415 16,637 Operating Lease Liabilities $ 20,271 $ 21,635 Finance Leases: Finance Right-of-Use Assets, Gross $ 3,585 $ 3,484 Less Accumulated Amortization 2,282 2,039 Finance Right-of-Use Assets, Net — Included in Other Assets $ 1,303 $ 1,445 Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities $ 2,196 $ 2,081 Long-term Finance Lease Liabilities — Included in Other Liabilities 232 734 Finance Lease Liabilities $ 2,428 $ 2,815 The following is a summary of the Company's total lease costs: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Finance Lease Cost: Amortization of Right-of-Use Assets $ 254 $ 255 Interest on Lease Liabilities 35 63 Total Finance Lease Cost 289 318 Operating Lease Cost 1,359 1,448 Right-of-Use Asset Impairment — 691 Variable Lease Cost 391 272 Short-term Lease Cost (excluding month-to-month) 47 67 Less Sublease and Rental (Income) Expense (309) (331) Total Operating Lease Cost 1,488 2,147 Total Net Lease Cost $ 1,777 $ 2,465 The following is a summary of the Company's maturity of lease liabilities: (In thousands) Operating Leases Finance Leases Remainder of 2021 $ 4,120 $ 1,701 2022 5,171 800 2023 3,800 — 2024 2,858 — 2025 2,809 — Thereafter 3,361 — Total Lease Payments 22,119 2,501 Less: Interest 1,848 73 Total Lease Liability $ 20,271 $ 2,428 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates were approximately (0.9)% and 3.3% for the three months ended April 3, 2021 and March 28, 2020, respectively. The tax rate in the 2021 period was impacted by State and Foreign income taxes as well as changes in the valuation allowance previously recorded against federal deferred tax assets. As discussed below, the tax rate in the 2020 period was impacted primarily by the initial recording of a valuation allowance against federal deferred tax assets. As a result of the COVID-19 pandemic and its adverse effects on the global economy and aerospace industry that began to take shape in the first quarter of fiscal 2020, through April 3, 2021 the Company is continuing to forecast that it will generate a taxable loss in 2021. The Company records a valuation allowance against the deferred tax assets if and to the extent it is more likely than not that the Company will not recover the deferred tax assets. In evaluating the need for a valuation allowance, the Company weights all relevant positive and negative evidence, and considers among other factors, historical financial performance, projected future taxable income, scheduled reversals of deferred tax liabilities, the overall business environment, and tax planning strategies. Losses in recent periods and cumulative pre-tax losses in the three-year period ending with the current year, combined with the significant uncertainty brought about by the COVID-19 pandemic, is collectively considered significant negative evidence under ASC 740 when assessing whether an entity can use projected income as a basis for concluding that deferred tax assets are realizable on a more-likely-than not basis. For purposes of assessing the recoverability of deferred tax assets, in the first quarter of 2020 the Company determined that it could not include future projected earnings in the analysis due to recent history of losses and therefore had insufficient objective positive evidence that the Company will generate sufficient future pre-tax income to overcome the negative evidence of cumulative losses. As a result, the Company recorded a valuation allowance against its U.S. federal deferred tax assets in the first quarter of 2020 and continues to maintain the valuation allowance against its U.S. federal deferred tax assets as of April 3, 2021. On March 11, 2021, the American Rescue Plan Act, or ARPA, was signed into law. The ARPA enacted certain provisions that are relevant to corporate income tax. These provisions did not have a material impact on our income tax provision for the three months ended April 3, 2021. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted weighted-average shares outstanding are as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Weighted Average Shares - Basic 30,903 30,814 Net Effect of Dilutive Stock Options — — Weighted Average Shares - Diluted 30,903 30,814 Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive. The number of common shares covered by out-of-the-money stock options was approximately 652,000 shares as of April 3, 2021 and 785,000 shares as of March 28, 2020. Further, due to our net loss in the three month periods ended April 3, |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Buyback Program The Company’s Board of Directors from time to time authorizes the repurchase of common stock, which allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market or through privately negotiated transactions. Most recently, on September 17, 2019, the Company’s Board of Directors authorized a repurchase of up to $50 million. Approximately 282,000 shares were repurchased in the first quarter of 2020 at a cost of $7.7 million before the 10b5-1 plan associated with the share repurchase program was terminated on February 3, 2020. Under its current credit agreement, and as described further in Note 7, the Company is currently restricted from further stock repurchases. Comprehensive Loss and Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: (In thousands) April 3, 2021 December 31, 2020 Foreign Currency Translation Adjustments $ (5,105) $ (4,468) Retirement Liability Adjustment – Before Tax (13,830) (14,264) Tax Benefit of Retirement Liability Adjustment 2,282 2,282 Retirement Liability Adjustment – After Tax (11,548) (11,982) Accumulated Other Comprehensive Loss $ (16,653) $ (16,450) The components of other comprehensive (loss) income are as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Foreign Currency Translation Adjustments $ (637) $ (2,304) Retirement Liability Adjustments: Reclassifications to General and Administrative Expense: Amortization of Prior Service Cost 101 101 Amortization of Net Actuarial Losses 333 171 Tax Benefit — (57) Retirement Liability Adjustment 434 215 Other Comprehensive Loss $ (203) $ (2,089) |
Supplemental Retirement Plan an
Supplemental Retirement Plan and Related Post Retirement Benefits | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
Supplemental Retirement Plan and Related Post Retirement Benefits | Supplemental Retirement Plan and Related Post Retirement Benefits The Company has two non-qualified supplemental retirement defined benefit plans (“SERP” and “SERP II”) for certain executive officers. The following table sets forth information regarding the net periodic pension cost for the plans. Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Service Cost $ 49 $ 55 Interest Cost 191 209 Amortization of Prior Service Cost 97 97 Amortization of Net Actuarial Losses 323 162 Net Periodic Cost $ 660 $ 523 Participants in the SERP are entitled to paid medical, dental and long-term care insurance benefits upon retirement under the plan. The net periodic cost was insignificant for the three months ended April 3, 2021 and March 28, 2020. The service cost component of net periodic benefit costs above is recorded in Selling, General and Administrative Expenses within the Consolidated Condensed Statements of Operations, while the remaining components are recorded in Other Expense, Net of Other Income. |
Sales to Major Customers
Sales to Major Customers | 3 Months Ended |
Apr. 03, 2021 | |
Risks and Uncertainties [Abstract] | |
Sales to Major Customers | Sales to Major CustomersThe loss of major customers or a significant reduction in business with a major customer would significantly, negatively impact our sales and earnings. In the three months ended April 3, 2021, the Company had no customer in excess of 10% of consolidated sales. Sales to one customer in the Aerospace segment represented 17% of consolidated sales for the three months ended March 28, 2020. |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings Lufthansa One of the Company’s subsidiaries is involved in numerous patent infringement actions brought by Lufthansa Technik AG (“Lufthansa”) in Germany, UK and France. The Company is vigorously defending all such litigation and proceedings. Additional information about these legal proceedings can be found in Note 19 “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. There were no significant developments in any of these matters during the quarter ended April 3, 2021. The reserve for the German indirect claim was approximately $16.8 million at April 3, 2021, which included an additional $0.1 million in interest accrued during the quarter then ended. We currently believe it is unlikely that the appeals process will be completed and the damages and related interest will be paid within the next twelve months. Therefore, the liability related to this matter is classified within Other Liabilities (non-current) in the Consolidated Condensed Balance Sheets at April 3, 2021 and December 31, 2020. Other On March 23, 2020, Teradyne, Inc. filed a complaint against the Company and its subsidiary, Astronics Test Systems (“ATS”) (together, “the Defendants”) in the United States District Court for the Central District of California alleging patent and copyright infringement, and certain other related claims. The Defendants moved to dismiss certain claims from the case. On November 6, 2020, the Court dismissed the Company from the case, and also dismissed a number of claims, though the patent and copyright infringement claims remain. The case is currently in discovery. In addition, on December 21, 2020, ATS filed a petition with the US Patent Trial and Appeal Board (“PTAB”), seeking to invalidate the subject patent. The parties are waiting to learn whether the PTAB will institute the proceeding. The District Court scheduled a claims construction hearing on the patent for June 2021. Fact discovery has begun on both the patent and copyright claims. We will not have a trial date until 2022 at the earliest. No amounts have been accrued for this matter in the April 3, 2021 financial statements, as loss exposure is neither probable nor estimable at this time. Other than these proceedings, we are not party to any significant pending legal proceedings that management believes will result in a material adverse effect on our financial condition or results of operations. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Below are the sales and operating profit by segment for the three and three months ended April 3, 2021 and March 28, 2020 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Sales: Aerospace $ 81,430 $ 141,137 Less Inter-segment Sales (14) (67) Total Aerospace Sales 81,416 141,070 Test Systems 24,745 16,553 Less Inter-segment Sales (304) (39) Total Test Systems Sales 24,441 16,514 Total Consolidated Sales $ 105,857 $ 157,584 Segment Measure of Operating (Loss) Profit and Margins Aerospace $ (5,563) $ (63,145) (6.8) % (44.8) % Test Systems 1,189 722 4.9 % 4.4 % Total Segment Measure of Operating (Loss) Profit (4,374) (62,423) (4.1) % (39.6) % Additions/Deductions from Segment Measure of Operating (Loss) Profit Interest Expense, Net of Interest Income 1,758 1,333 Corporate Expenses and Other 5,672 5,521 Loss Before Income Taxes $ (11,804) $ (69,277) Total Assets: (In thousands) April 3, 2021 December 31, 2020 Aerospace $ 481,134 $ 484,885 Test Systems 102,138 105,079 Corporate 22,685 29,781 Total Assets $ 605,957 $ 619,745 |
Fair Value
Fair Value | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value A fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Fair value is based upon an exit price model. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and involves consideration of factors specific to the asset or liability. The Company follows a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. On a Recurring Basis: A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. On October 4, 2019, the Company acquired the stock of the primary operating subsidiaries as well as certain other assets from mass transit and defense market test solution provider, Diagnosys Test Systems Limited for $7.0 million in cash, plus an earn-out estimated at a fair value of $2.5 million at the time of acquisition. The terms of the Diagnosys acquisition allow for a potential earn-out of up to an additional $13.0 million over the three years post-acquisition based on achievement of new order levels of over $72.0 million during that period. The fair value of this contingent consideration is estimated at $2.2 million as of April 3, 2021. The fair value assigned to the earnout is determined using the real options method, which requires Level 3 inputs such as new order forecasts, discount rate, volatility factors, and other market variables to assess the probability of Diagnosys achieving certain order levels over the period. There were no other financial assets or liabilities carried at fair value measured on a recurring basis at December 31, 2020 or April 3, 2021. On a Non-recurring Basis: The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. In accordance with the provisions of ASC Topic 350, I ntangibles – Goodwill and Other , the Company estimates the fair value of reporting units, utilizing unobservable Level 3 inputs. Level 3 inputs require significant management judgment due to the absence of quoted market prices or observable inputs for assets of a similar nature. The inputs underlying the fair value measurement of the reporting unit under the step-one analysis of the quantitative goodwill impairment test are classified as Level 3 inputs. As further discussed in Note 6, we performed interim quantitative assessments for the reporting units which had goodwill as of March 28, 2020. Based on our quantitative assessments, the Company recorded non-cash goodwill impairment charges associated with four Aerospace reporting units, totaling approximately $73.7 million within the Impairment Loss line in the Consolidated Condensed Statement of Operations in the three months ended March 28, 2020. The impairment loss was calculated as the difference between the fair value of the reporting unit (which was calculated using level 3 inputs) and the carrying value of the reporting unit. As of April 3, 2021, the Company concluded that no indicators of additional impairment relating to intangible assets or goodwill existed and an interim test was not performed in the three months then ended. Long-lived assets are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows of the asset or asset group (which are Level 3 inputs) with the asset of asset group’s carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. In conjunction with the deteriorating economic conditions associated with the COVID-19 pandemic, we recorded an impairment charge to ROU assets of approximately $0.7 million incurred in the Aerospace segment within the Impairment Loss line in the Consolidated Condensed Statement of Operations in the three months ended March 28, 2020. As of April 3, 2021, the Company concluded that no indicators of additional impairment relating to long-lived assets existed. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges The COVID-19 pandemic has significantly impacted the global economy, and particularly the aerospace industry, resulting in reduced expectations of the Company’s anticipated future operating results. As a result, the Company executed restructuring activities in the form of workforce reduction, primarily in the second quarter of 2020, to align capacity with expected demand. There were no additional restructuring charges associated with this initiative recorded in the three months ended April 3, 2021. In the fourth quarter of 2019, in an effort to reduce the significant operating losses at our AeroSat business, the Company initiated a restructuring plan to reduce costs and minimize losses of our AeroSat antenna business. The Company incurred $0.3 million in additional restructuring charges associated with severance at AeroSat during the three months ended March 28, 2020. The following tables reconcile the beginning and ending liability for restructuring charges: 2021 Balance as of January 1 $ 5,631 Restructuring Charges — Cash Paid (981) Balance as of April 3 $ 4,650 The liability is within Accrued Expenses and Other Current Liabilities and is comprised of employee termination benefits expected to be paid within the next 12 months as well as the current portions of payments to be made under AeroSat’s non-cancelable inventory purchase commitments. The non-cancelable purchase commitments are for inventory in the future which is not expected to be purchased prior to the expiration date of such agreements as a result of the restructuring plan. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying unaudited statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included |
Operating Results | Operating Results The results of operations for any interim period are not necessarily indicative of results for the full year. In addition, the COVID-19 pandemic has increased the volatility we experience in our financial results in recent periods and this could continue in future interim and annual periods. Operating results for the three months ended April 3, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements. |
Trade Accounts Receivable and Contract Assets | Trade Accounts Receivable and Contract AssetsThe allowance for estimated credit losses is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as the age of the receivable balances, historical experience, credit quality, current economic conditions, and reasonable and supportable forecasts of future economic conditions that may affect a customer’s ability to pay. |
Cost of Products Sold, Engineering and Development, Interest, and Selling, General and Administrative Expenses | Cost of Products Sold, Engineering and Development, Interest, and Selling, General and Administrative ExpensesCost of products sold includes the costs to manufacture products such as direct materials and labor and manufacturing overhead as well as all engineering and development costs. The Company is engaged in a variety of engineering and design activities as well as basic research and development activities directed to the substantial improvement or new application of the Company’s existing technologies. These costs are expensed when incurred and included in cost of products sold. |
Selling, General and Administrative Expenses | Selling, general and administrative expenses include costs primarily related to our sales and marketing departments and administrative departments. |
Goodwill Impairment | Goodwill Impairment The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. |
Valuation of Long-Lived Assets | Valuation of Long-Lived AssetsLong-lived assets are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows with the carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. |
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements Recent Accounting Pronouncements Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU No. 2018-14 Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) The standard includes updates to the disclosure requirements for defined benefit plans including several additions, deletions and modifications to the disclosure requirements. The provisions of this ASU are effective for years beginning after December 15, 2020, with early adoption permitted. This ASU did not have a significant impact on our consolidated financial statements, as it only includes changes to disclosure requirements. Date of adoption: Q1 2021 ASU No. 2019-12 The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and improve consistent application by clarifying and amending existing guidance. The amendments of this standard are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period for which financial statements have not been issued, with the amendments to be applied on a respective, modified retrospective or prospective basis, depending on the specific amendment. This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. As we do not have any significant activity associated with these items, this ASU did not have a material impact on consolidated results or operations and financial condition. Date of adoption: Q1 2021 Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU No. 2020-04 The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The administrator of LIBOR has announced it will consult on its intention to cease the publication of the one week and two month USD LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining USD LIBOR settings immediately following the LIBOR publication on June 30, 2023. Extending the publication of certain USD LIBOR tenors until June 30, 2023 would allow most legacy USD LIBOR contracts to mature before LIBOR experiences disruptions. The Company is currently evaluating the impact of adopting this guidance. Planned date of adoption: Before December 31, 2022 |
Fair Value | Fair Value A fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. Fair value is based upon an exit price model. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and involves consideration of factors specific to the asset or liability. The Company follows a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Assets and Liabilities | The following table presents the beginning and ending balances of contract assets and contract liabilities during the three months ended April 3, 2021: (In thousands) Contract Assets Contract Liabilities Beginning Balance, January 1, 2021 $ 17,697 $ 28,641 Ending Balance, April 3, 2021 $ 25,510 $ 31,285 |
Disaggregation of Revenue | The following table presents our revenue disaggregated by Market Segments as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Aerospace Segment Commercial Transport $ 38,208 $ 102,775 Military 20,982 18,113 Business Jet 14,028 15,006 Other 8,198 5,176 Aerospace Total 81,416 141,070 Test Systems Segment Semiconductor — 1,634 Aerospace & Defense 24,441 14,880 Test Systems Total 24,441 16,514 Total $ 105,857 $ 157,584 The following table presents our revenue disaggregated by Product Lines as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Aerospace Segment Electrical Power & Motion $ 29,344 $ 69,456 Lighting & Safety 27,100 37,922 Avionics 14,843 22,143 Systems Certification 878 3,331 Structures 1,053 3,042 Other 8,198 5,176 Aerospace Total 81,416 141,070 Test Systems 24,441 16,514 Total $ 105,857 $ 157,584 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: ( In thousands ) April 3, 2021 December 31, 2020 Finished Goods $ 26,691 $ 26,964 Work in Progress 24,777 21,987 Raw Material 103,786 108,108 $ 155,254 $ 157,059 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, Plant and Equipment consisted of the following: (In thousands) April 3, 2021 December 31, 2020 Land $ 9,848 $ 9,891 Buildings and Improvements 75,540 75,493 Machinery and Equipment 120,629 119,444 Construction in Progress 5,770 5,843 211,787 210,671 Less Accumulated Depreciation 106,856 103,993 $ 104,931 $ 106,678 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | The following table summarizes acquired intangible assets as follows: April 3, 2021 December 31, 2020 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 11 years $ 2,146 $ 1,913 $ 2,146 $ 1,891 Non-compete Agreement 4 years 11,082 10,212 11,082 10,085 Trade Names 10 years 11,476 7,784 11,512 7,537 Completed and Unpatented Technology 9 years 47,982 26,939 48,043 25,766 Customer Relationships 15 years 142,367 62,275 142,478 60,096 Total Intangible Assets 12 years $ 215,053 $ 109,123 $ 215,261 $ 105,375 |
Summary of Amortization Expense for Acquired Intangibles | All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Amortization Expense $ 3,855 $ 4,265 |
Summary of Amortization Expense for Intangible Assets for Each of Next Five Years | Amortization expense for acquired intangible assets expected for 2021 and for each of the next five years is summarized as follows: (In thousands) 2021 $ 15,356 2022 $ 14,911 2023 $ 13,878 2024 $ 12,856 2025 $ 10,935 2026 $ 9,533 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for the three months ended April 3, 2021: (In thousands) December 31, 2020 Foreign Currency Translation April 3, 2021 Aerospace $ 36,648 $ 15 $ 36,663 Test Systems 21,634 — 21,634 $ 58,282 $ 15 $ 58,297 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Product Warranties Disclosures [Abstract] | |
Summary of Activity in Warranty Accrual | The Company determines warranty reserves needed by product line based on experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Balance at Beginning of Period $ 7,018 $ 7,660 Warranties Issued 808 877 Warranties Settled (685) (691) Reassessed Warranty Exposure (299) (724) Balance at End of Period $ 6,842 $ 7,122 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Summary of ROU Assets and Liabilities | The following is a summary of the Company's ROU assets and liabilities: (In thousands) April 3, 2021 December 31, 2020 Operating Leases: Operating Right-of-Use Assets, Gross $ 28,458 $ 28,678 Less Accumulated Right-of-Use Asset Impairment 1,710 1,710 Less Accumulated Amortization 8,998 8,015 Operating Right-of-Use Assets, Net $ 17,750 $ 18,953 Short-term Operating Lease Liabilities $ 4,856 $ 4,998 Long-term Operating Lease Liabilities 15,415 16,637 Operating Lease Liabilities $ 20,271 $ 21,635 Finance Leases: Finance Right-of-Use Assets, Gross $ 3,585 $ 3,484 Less Accumulated Amortization 2,282 2,039 Finance Right-of-Use Assets, Net — Included in Other Assets $ 1,303 $ 1,445 Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities $ 2,196 $ 2,081 Long-term Finance Lease Liabilities — Included in Other Liabilities 232 734 Finance Lease Liabilities $ 2,428 $ 2,815 |
Summary of Lease Costs and Cash Paid | The following is a summary of the Company's total lease costs: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Finance Lease Cost: Amortization of Right-of-Use Assets $ 254 $ 255 Interest on Lease Liabilities 35 63 Total Finance Lease Cost 289 318 Operating Lease Cost 1,359 1,448 Right-of-Use Asset Impairment — 691 Variable Lease Cost 391 272 Short-term Lease Cost (excluding month-to-month) 47 67 Less Sublease and Rental (Income) Expense (309) (331) Total Operating Lease Cost 1,488 2,147 Total Net Lease Cost $ 1,777 $ 2,465 |
Summary of Maturity of Lease Liabilities, Operating Leases | The following is a summary of the Company's maturity of lease liabilities: (In thousands) Operating Leases Finance Leases Remainder of 2021 $ 4,120 $ 1,701 2022 5,171 800 2023 3,800 — 2024 2,858 — 2025 2,809 — Thereafter 3,361 — Total Lease Payments 22,119 2,501 Less: Interest 1,848 73 Total Lease Liability $ 20,271 $ 2,428 |
Summary of Maturity of Lease Liabilities, Financing Leases | The following is a summary of the Company's maturity of lease liabilities: (In thousands) Operating Leases Finance Leases Remainder of 2021 $ 4,120 $ 1,701 2022 5,171 800 2023 3,800 — 2024 2,858 — 2025 2,809 — Thereafter 3,361 — Total Lease Payments 22,119 2,501 Less: Interest 1,848 73 Total Lease Liability $ 20,271 $ 2,428 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Weighted Average Shares - Basic 30,903 30,814 Net Effect of Dilutive Stock Options — — Weighted Average Shares - Diluted 30,903 30,814 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: (In thousands) April 3, 2021 December 31, 2020 Foreign Currency Translation Adjustments $ (5,105) $ (4,468) Retirement Liability Adjustment – Before Tax (13,830) (14,264) Tax Benefit of Retirement Liability Adjustment 2,282 2,282 Retirement Liability Adjustment – After Tax (11,548) (11,982) Accumulated Other Comprehensive Loss $ (16,653) $ (16,450) |
Components of Other Comprehensive Income (Loss) | The components of other comprehensive (loss) income are as follows: Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Foreign Currency Translation Adjustments $ (637) $ (2,304) Retirement Liability Adjustments: Reclassifications to General and Administrative Expense: Amortization of Prior Service Cost 101 101 Amortization of Net Actuarial Losses 333 171 Tax Benefit — (57) Retirement Liability Adjustment 434 215 Other Comprehensive Loss $ (203) $ (2,089) |
Supplemental Retirement Plan _2
Supplemental Retirement Plan and Related Post Retirement Benefits (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Retirement Benefits [Abstract] | |
Summary of the Components of Net Periodic Cost | The following table sets forth information regarding the net periodic pension cost for the plans. Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Service Cost $ 49 $ 55 Interest Cost 191 209 Amortization of Prior Service Cost 97 97 Amortization of Net Actuarial Losses 323 162 Net Periodic Cost $ 660 $ 523 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | Below are the sales and operating profit by segment for the three and three months ended April 3, 2021 and March 28, 2020 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. Three Months Ended (In thousands) April 3, 2021 March 28, 2020 Sales: Aerospace $ 81,430 $ 141,137 Less Inter-segment Sales (14) (67) Total Aerospace Sales 81,416 141,070 Test Systems 24,745 16,553 Less Inter-segment Sales (304) (39) Total Test Systems Sales 24,441 16,514 Total Consolidated Sales $ 105,857 $ 157,584 Segment Measure of Operating (Loss) Profit and Margins Aerospace $ (5,563) $ (63,145) (6.8) % (44.8) % Test Systems 1,189 722 4.9 % 4.4 % Total Segment Measure of Operating (Loss) Profit (4,374) (62,423) (4.1) % (39.6) % Additions/Deductions from Segment Measure of Operating (Loss) Profit Interest Expense, Net of Interest Income 1,758 1,333 Corporate Expenses and Other 5,672 5,521 Loss Before Income Taxes $ (11,804) $ (69,277) Total Assets: (In thousands) April 3, 2021 December 31, 2020 Aerospace $ 481,134 $ 484,885 Test Systems 102,138 105,079 Corporate 22,685 29,781 Total Assets $ 605,957 $ 619,745 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Liabilities for Restructuring Charges | The following tables reconcile the beginning and ending liability for restructuring charges: 2021 Balance as of January 1 $ 5,631 Restructuring Charges — Cash Paid (981) Balance as of April 3 $ 4,650 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2021USD ($) | Feb. 28, 2021USD ($) | Apr. 03, 2021USD ($)reporting_unitelement | Mar. 28, 2020USD ($) | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |||||
Number of elements for contingent earnouts | element | 2 | ||||
COVID-19 related government assistance amount | $ 600,000 | ||||
Allowance for doubtful accounts | 3,500,000 | $ 3,200,000 | |||
Bad debt expense | 300,000 | ||||
Research and development, design and related engineering | $ 21,600,000 | $ 26,200,000 | |||
Number of reporting units impaired | reporting_unit | 4 | ||||
Right-of-use asset impairment | $ 0 | $ 691,000 | |||
Cost of Products Sold | |||||
Business Acquisition [Line Items] | |||||
COVID-19 related government assistance amount | 500,000 | ||||
Selling, General and Administrative | |||||
Business Acquisition [Line Items] | |||||
COVID-19 related government assistance amount | 100,000 | ||||
Aerospace Segment | |||||
Business Acquisition [Line Items] | |||||
Impairment loss | 73,700,000 | ||||
Held for Sale | First Earnout | |||||
Business Acquisition [Line Items] | |||||
Maximum total earnout proceeds | 35,000,000 | ||||
Held for Sale | Second Earnout | |||||
Business Acquisition [Line Items] | |||||
Maximum total earnout proceeds | $ 0 | ||||
Held for Sale | Test Systems Segment | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-outs | $ 10,700,000 | ||||
Held for Sale | Test Systems Segment | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Contingent earn-outs | $ 7,100,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 297.5 | |
Revenue recognized included in contract liability balance | 8.3 | $ 8.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 217.2 | |
Period of recognition | 9 months |
Revenue - Summary of Contract A
Revenue - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 01, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract Assets | $ 25,510 | $ 17,697 |
Contract Liabilities | $ 31,285 | $ 28,641 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Market (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 105,857 | $ 157,584 |
Commercial Transport | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 38,208 | 102,775 |
Military | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 20,982 | 18,113 |
Business Jet | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 14,028 | 15,006 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 8,198 | 5,176 |
Aerospace Segment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 81,416 | 141,070 |
Semiconductor | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 0 | 1,634 |
Aerospace & Defense | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 24,441 | 14,880 |
Test Systems Segment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 24,441 | $ 16,514 |
Revenue - Disaggregated by Prod
Revenue - Disaggregated by Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Sales | $ 105,857 | $ 157,584 |
Aerospace Segment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 81,416 | 141,070 |
Test Systems Segment | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 24,441 | 16,514 |
Electrical Power & Motion | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 29,344 | 69,456 |
Lighting & Safety | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 27,100 | 37,922 |
Avionics | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 14,843 | 22,143 |
Systems Certification | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 878 | 3,331 |
Structures | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 1,053 | 3,042 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 8,198 | $ 5,176 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 26,691 | $ 26,964 |
Work in Progress | 24,777 | 21,987 |
Raw Material | 103,786 | 108,108 |
Inventory, net | $ 155,254 | $ 157,059 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 211,787 | $ 210,671 |
Less Accumulated Depreciation | 106,856 | 103,993 |
Property, plant and equipment, net | 104,931 | 106,678 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 9,848 | 9,891 |
Buildings and Improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 75,540 | 75,493 |
Machinery and Equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 120,629 | 119,444 |
Construction in Progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 5,770 | $ 5,843 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | ||
Weighted Average Life | 12 years | |
Gross Carrying Amount | $ 215,053 | $ 215,261 |
Accumulated Amortization | $ 109,123 | 105,375 |
Patents | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 11 years | |
Gross Carrying Amount | $ 2,146 | 2,146 |
Accumulated Amortization | $ 1,913 | 1,891 |
Non-compete Agreement | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 4 years | |
Gross Carrying Amount | $ 11,082 | 11,082 |
Accumulated Amortization | $ 10,212 | 10,085 |
Trade Names | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 10 years | |
Gross Carrying Amount | $ 11,476 | 11,512 |
Accumulated Amortization | $ 7,784 | 7,537 |
Completed and Unpatented Technology | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 9 years | |
Gross Carrying Amount | $ 47,982 | 48,043 |
Accumulated Amortization | $ 26,939 | 25,766 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 15 years | |
Gross Carrying Amount | $ 142,367 | 142,478 |
Accumulated Amortization | $ 62,275 | $ 60,096 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Amortization Expense for Acquired Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization Expense | $ 3,855 | $ 4,265 |
Intangible Assets - Summary o_3
Intangible Assets - Summary of Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 15,356 |
2022 | 14,911 |
2023 | 13,878 |
2024 | 12,856 |
2025 | 10,935 |
2026 | $ 9,533 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 58,282 |
Foreign Currency Translation | 15 |
Balance at end of period | 58,297 |
Operating Segments | Aerospace Segment | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 36,648 |
Foreign Currency Translation | 15 |
Balance at end of period | 36,663 |
Operating Segments | Test Systems Segment | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 21,634 |
Foreign Currency Translation | 0 |
Balance at end of period | $ 21,634 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Millions | 3 Months Ended | |
Apr. 03, 2021USD ($)reporting_unit | Mar. 28, 2020reporting_unit | |
Goodwill | ||
Number of reporting units | 8 | |
Number of reporting units impaired | 4 | |
Aerospace Segment | ||
Goodwill | ||
Impairment loss | $ | $ 73.7 |
Long-Term Debt and Notes Paya_2
Long-Term Debt and Notes Payable (Details) | 3 Months Ended | ||||||||
Oct. 02, 2021USD ($) | Apr. 03, 2021USD ($)fiscal_quarter | Dec. 31, 2022 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Dec. 31, 2021 | Jul. 03, 2021 | May 04, 2020USD ($) | |
Debt Instrument | |||||||||
Minimum liquidity | $ 100,000,000 | ||||||||
Amended and Restated Credit Agreement | |||||||||
Debt Instrument | |||||||||
Ratio of funded debt to Adjusted EBITDA | 3.75 | ||||||||
Duration of permitted leverage ratio following acquisition, number of fiscal quarters | fiscal_quarter | 4 | ||||||||
Amended and Restated Credit Agreement | Maximum | |||||||||
Debt Instrument | |||||||||
Ratio of funded debt to Adjusted EBITDA | 4.50 | ||||||||
Line of Credit | Forecast | |||||||||
Debt Instrument | |||||||||
Covenant, leverage ratio, maximum | 6 | 3.75 | 3.75 | 3.75 | 4.50 | 5.50 | |||
Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument | |||||||||
Minimum interest coverage ratio on a quarterly basis | 1.50 | ||||||||
Commitment fee percentage | 0.35% | ||||||||
Line of credit facility, consent fee percentage | 0.15% | ||||||||
Line of Credit | Revolving Credit Facility | Forecast | |||||||||
Debt Instrument | |||||||||
Minimum liquidity | $ 180,000,000 | ||||||||
Minimum interest coverage ratio on a quarterly basis | 1.75 | ||||||||
Line of Credit | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument | |||||||||
Commitment fee percentage | 0.10% | ||||||||
Line of Credit | Revolving Credit Facility | Maximum | |||||||||
Debt Instrument | |||||||||
Commitment fee percentage | 0.35% | ||||||||
Line of Credit | Revolving Credit Facility | LIBOR | |||||||||
Debt Instrument | |||||||||
Basis points for variable interest rate | 1.00% | ||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | |||||||||
Debt Instrument | |||||||||
Basis points for variable interest rate | 1.00% | ||||||||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | |||||||||
Debt Instrument | |||||||||
Basis points for variable interest rate | 2.25% | ||||||||
Line of Credit | Fifth Amended and Restated Credit Agreement | Revolving Credit Facility | |||||||||
Debt Instrument | |||||||||
Maximum borrowing capacity | $ 500,000,000 | $ 375,000,000 | |||||||
Line of credit facility increase amount | 150,000,000 | ||||||||
Credit facility outstanding | 173,000,000 | ||||||||
Revolving line of credit | 200,900,000 | ||||||||
Line of Credit | Fifth Amended and Restated Credit Agreement | Letter of Credit | |||||||||
Debt Instrument | |||||||||
Credit facility allocated (up to) | 20,000,000 | ||||||||
Outstanding letters of credit | $ 1,100,000 | ||||||||
Line of Credit | Fourth Amended And Restated Credit Agreement | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument | |||||||||
Basis points for commitment fee | 0.10% | ||||||||
Line of Credit | Fourth Amended And Restated Credit Agreement | Revolving Credit Facility | Maximum | |||||||||
Debt Instrument | |||||||||
Basis points for commitment fee | 0.20% | ||||||||
Line of Credit | Fourth Amended And Restated Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||||||||
Debt Instrument | |||||||||
Basis points for variable interest rate | 1.00% | ||||||||
Line of Credit | Fourth Amended And Restated Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||||||||
Debt Instrument | |||||||||
Basis points for variable interest rate | 1.50% |
Product Warranties - Summary of
Product Warranties - Summary of Activity in Warranty Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at Beginning of Period | $ 7,018 | $ 7,660 |
Warranties Issued | 808 | 877 |
Warranties Settled | (685) | (691) |
Reassessed Warranty Exposure | (299) | (724) |
Balance at End of Period | $ 6,842 | $ 7,122 |
Minimum | ||
Product Liability Contingency [Line Items] | ||
Product warranty period | 12 months | |
Maximum | ||
Product Liability Contingency [Line Items] | ||
Product warranty period | 60 months |
Leases - Narrative (Details)
Leases - Narrative (Details) | Apr. 03, 2021 |
Leases [Abstract] | |
Operating leases, weighted-average remaining term | 6 years |
Financing leases, weighted-average remaining term | 1 year |
Operating leases, weighted-average discount rate | 3.30% |
Finance leases, weighted average discount rate | 5.10% |
Leases - Summary of ROU Assets
Leases - Summary of ROU Assets and Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Operating Leases: | ||
Operating Right-of-Use Assets, Gross | $ 28,458 | $ 28,678 |
Less Accumulated Right-of-Use Asset Impairment | 1,710 | 1,710 |
Less Accumulated Amortization | 8,998 | 8,015 |
Operating Right-of-Use Assets, Net | 17,750 | 18,953 |
Short-term Operating Lease Liabilities | 4,856 | 4,998 |
Long-term Operating Lease Liabilities | 15,415 | 16,637 |
Operating Lease Liabilities | 20,271 | 21,635 |
Finance Leases: | ||
Finance Right-of-Use Assets, Gross | 3,585 | 3,484 |
Less Accumulated Amortization | 2,282 | 2,039 |
Finance Right-of-Use Assets, Net — Included in Other Assets | 1,303 | 1,445 |
Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities | 2,196 | 2,081 |
Long-term Finance Lease Liabilities — Included in Other Liabilities | 232 | 734 |
Finance Lease Liabilities | $ 2,428 | $ 2,815 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost and Cash Paid (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Amortization of Right-of-Use Assets | $ 254 | $ 255 |
Interest on Lease Liabilities | 35 | 63 |
Total Finance Lease Cost | 289 | 318 |
Operating Lease Cost | 1,359 | 1,448 |
Right-of-Use Asset Impairment | 0 | 691 |
Variable Lease Cost | 391 | 272 |
Short-term Lease Cost (excluding month-to-month) | 47 | 67 |
Less Sublease and Rental (Income) Expense | (309) | (331) |
Total Operating Lease Cost | 1,488 | 2,147 |
Total Net Lease Cost | $ 1,777 | $ 2,465 |
Leases - Summary of Maturity of
Leases - Summary of Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remainder of 2021 | $ 4,120 | |
2022 | 5,171 | |
2023 | 3,800 | |
2024 | 2,858 | |
2025 | 2,809 | |
Thereafter | 3,361 | |
Total Lease Payments | 22,119 | |
Less: Interest | 1,848 | |
Total Lease Liability | 20,271 | $ 21,635 |
Finance Leases | ||
Remainder of 2021 | 1,701 | |
2022 | 800 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total Lease Payments | 2,501 | |
Less: Interest | 73 | |
Total Lease Liability | $ 2,428 | $ 2,815 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (0.90%) | 3.30% |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share Computations (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted Average Shares - Basic (in shares) | 30,903 | 30,814 |
Net Effect of Dilutive Stock Options (in shares) | 0 | 0 |
Weighted Average Shares - Diluted (in shares) | 30,903 | 30,814 |
Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Common shares excluded from computation | 652 | 785 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) shares in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Sep. 17, 2019 | |
Stockholders Equity | |||
Authorized repurchase of common stock, amount | $ 50,000,000 | ||
Treasury Stock | |||
Stockholders Equity | |||
Purchase (in shares) | 0 | 282 | |
Value of shares repurchased | $ 0 | $ 7,732,000 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 | Mar. 28, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | $ 260,304 | $ 270,371 | $ 313,809 | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | (5,105) | (4,468) | ||
Retirement Liability Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Retirement Liability Adjustment – Before Tax | (13,830) | (14,264) | ||
Tax Benefit of Retirement Liability Adjustment | 2,282 | 2,282 | ||
Accumulated other comprehensive income | (11,548) | (11,982) | ||
Accumulated Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive income | $ (16,653) | $ (16,450) | $ (17,717) | $ (15,628) |
Shareholders' Equity - Compon_2
Shareholders' Equity - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Loss | $ (203) | $ (2,089) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Loss | (637) | (2,304) |
Amortization of Prior Service Cost | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification to General and Administrative Expense | 101 | 101 |
Amortization of Net Actuarial Losses | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification to General and Administrative Expense | 333 | 171 |
Retirement Liability Adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax Benefit | 0 | (57) |
Other Comprehensive Loss | $ 434 | $ 215 |
Supplemental Retirement Plan _3
Supplemental Retirement Plan and Related Post Retirement Benefits - Summary of the Components of Net Periodic Cost (Details) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021USD ($)retirement_plan | Mar. 28, 2020USD ($) | |
Retirement Benefits [Abstract] | ||
Number of non-qualified supplemental retirement defined benefit plans | retirement_plan | 2 | |
SERP | ||
Defined Benefit Plan Disclosure | ||
Service Cost | $ 49 | $ 55 |
Interest Cost | 191 | 209 |
Amortization of Prior Service Cost | 97 | 97 |
Amortization of Net Actuarial Losses | 323 | 162 |
Net Periodic Cost | $ 660 | $ 523 |
Sales to Major Customers (Detai
Sales to Major Customers (Details) - customer | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Segment Reporting, Asset Reconciling Item | ||
Number of major customers | 0 | 1 |
Sales Revenue, Net | Customer Concentration Risk | Major Customer One | ||
Segment Reporting, Asset Reconciling Item | ||
Percent of consolidated revenue | 17.00% |
Legal Proceedings (Details)
Legal Proceedings (Details) - Germany - Indirect Sales - Patent Infringement - AES $ in Millions | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Loss Contingencies [Line Items] | |
Non-cash litigation settlement | $ 16.8 |
Litigation settlement interest | $ 0.1 |
Segment Information - Summary o
Segment Information - Summary of Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Sales | $ 105,857 | $ 157,584 | |
Segment Measure of Operating (Loss) Profit and Margins | |||
Total Operating Profit | (9,512) | (67,556) | |
Additions/Deductions from Segment Measure of Operating (Loss) Profit | |||
Interest Expense, Net of Interest Income | 1,758 | 1,333 | |
Loss Before Income Taxes | (11,804) | (69,277) | |
Total Assets | 605,957 | $ 619,745 | |
Aerospace Segment | |||
Segment Reporting Information | |||
Sales | 81,416 | 141,070 | |
Test Systems Segment | |||
Segment Reporting Information | |||
Sales | 24,441 | 16,514 | |
Operating Segments | |||
Segment Measure of Operating (Loss) Profit and Margins | |||
Total Operating Profit | $ (4,374) | $ (62,423) | |
Operating margins, percentage | (4.10%) | (39.60%) | |
Operating Segments | Aerospace Segment | |||
Segment Reporting Information | |||
Sales | $ 81,430 | $ 141,137 | |
Segment Measure of Operating (Loss) Profit and Margins | |||
Total Operating Profit | $ (5,563) | $ (63,145) | |
Operating margins, percentage | (6.80%) | (44.80%) | |
Additions/Deductions from Segment Measure of Operating (Loss) Profit | |||
Total Assets | $ 481,134 | 484,885 | |
Operating Segments | Test Systems Segment | |||
Segment Reporting Information | |||
Sales | 24,745 | $ 16,553 | |
Segment Measure of Operating (Loss) Profit and Margins | |||
Total Operating Profit | $ 1,189 | $ 722 | |
Operating margins, percentage | 4.90% | 4.40% | |
Additions/Deductions from Segment Measure of Operating (Loss) Profit | |||
Total Assets | $ 102,138 | 105,079 | |
Less Inter-segment Sales | Aerospace Segment | |||
Segment Reporting Information | |||
Sales | (14) | $ (67) | |
Less Inter-segment Sales | Test Systems Segment | |||
Segment Reporting Information | |||
Sales | (304) | (39) | |
Corporate Expenses and Other | |||
Additions/Deductions from Segment Measure of Operating (Loss) Profit | |||
Corporate Expenses and Other | 5,672 | $ 5,521 | |
Total Assets | $ 22,685 | $ 29,781 |
Fair Value (Details)
Fair Value (Details) | Oct. 04, 2019USD ($) | Apr. 03, 2021USD ($)reporting_unit | Mar. 28, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Number of reporting units impaired | reporting_unit | 4 | ||
Right-of-use asset impairment | $ 0 | $ 691,000 | |
Aerospace Segment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Impairment loss | 73,700,000 | ||
AeroSat | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Right-of-use asset impairment | 700,000 | ||
Diagnosys | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Cash paid to acquire stock | $ 7,000,000 | ||
Fair value of contingent consideration | 2,500,000 | $ 2,200,000 | |
Potential additional earn-out | $ 13,000,000 | ||
Achievement period | 3 years | ||
Earn-out achievement benchmark | $ 72,000,000 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Millions | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Aerospace Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring, settlement and impairment provisions | $ 0.3 |
Restructuring Charges - Beginni
Restructuring Charges - Beginning and Ending Liability for Restructuring Charges (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 5,631 |
Restructuring Charges | 0 |
Cash Paid | (981) |
Ending balance | $ 4,650 |