Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 27, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 27-Sep-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'ATRO |
Entity Registrant Name | 'ASTRONICS CORP |
Entity Central Index Key | '0000008063 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 21,787,436 |
Common Stock [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 14,694,645 |
Convertible Class B Stock [Member] | Common Stock [Member] | ' |
Document Information [Line Items] | ' |
Entity Common Stock, Shares Outstanding | 7,092,791 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and Cash Equivalents | $24,928 | $54,635 |
Accounts Receivable, net of allowance for doubtful accounts | 111,898 | 60,942 |
Inventories | 126,564 | 85,269 |
Prepaid Expenses and Other Current Assets | 14,149 | 10,352 |
Total Current Assets | 277,539 | 211,198 |
Property, Plant and Equipment, net of accumulated depreciation | 111,362 | 70,900 |
Other Assets | 6,179 | 5,474 |
Intangible Assets, net of accumulated amortization | 95,285 | 102,701 |
Goodwill | 100,542 | 100,998 |
Total Assets | 590,907 | 491,271 |
Current Liabilities: | ' | ' |
Current Maturities of Long-term Debt | 10,239 | 12,279 |
Accounts Payable | 43,534 | 25,255 |
Accrued Expenses | 32,970 | 24,668 |
Accrued Income Taxes | 3,355 | 1,318 |
Customer Advance Payments and Deferred Revenue | 45,618 | 20,747 |
Deferred Income Taxes | ' | 970 |
Total Current Liabilities | 135,716 | 85,237 |
Long-term Debt | 202,404 | 188,041 |
Other Liabilities | 41,518 | 46,484 |
Total Liabilities | 379,638 | 319,762 |
Shareholders' Equity: | ' | ' |
Common Stock | 218 | 214 |
Accumulated Other Comprehensive Loss | -6,217 | -3,611 |
Other Shareholders' Equity | 217,268 | 174,906 |
Total Shareholders' Equity | 211,269 | 171,509 |
Total Liabilities and Shareholders' Equity | $590,907 | $491,271 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Sales | $179,442 | $89,681 | $494,956 | $234,481 |
Cost of Products Sold | 128,132 | 65,896 | 370,439 | 171,796 |
Gross Profit | 51,310 | 23,785 | 124,517 | 62,685 |
Selling, General and Administrative Expenses | 25,539 | 11,433 | 62,638 | 31,291 |
Income from Operations | 25,771 | 12,352 | 61,879 | 31,394 |
Interest Expense, net of interest income | 2,301 | 1,605 | 7,183 | 2,085 |
Income Before Income Taxes | 23,470 | 10,747 | 54,696 | 29,309 |
Provision for Income Taxes | 6,390 | 3,592 | 16,965 | 8,432 |
Net Income | $17,080 | $7,155 | $37,731 | $20,877 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.79 | $0.34 | $1.74 | $1 |
Diluted | $0.75 | $0.32 | $1.67 | $0.95 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $17,080 | $7,155 | $37,731 | $20,877 |
Other Comprehensive Income (Loss): | ' | ' | ' | ' |
Foreign Currency Translation Adjustments | -2,375 | 129 | -2,943 | -260 |
Change in Accumulated Income on Derivatives - net of tax | 27 | 27 | 19 | 65 |
Retirement Liability Adjustment - net of tax | 110 | 105 | 318 | 316 |
Other Comprehensive (Loss) Income | -2,238 | 261 | -2,606 | 121 |
Comprehensive Income | $14,842 | $7,416 | $35,125 | $20,998 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Cash Flows From Operating Activities: | ' | ' |
Net Income | $37,731 | $20,877 |
Adjustments to Reconcile Net Income to Cash Provided By Operating Activities: | ' | ' |
Depreciation and Amortization | 21,168 | 6,547 |
Provisions for Non-Cash Losses on Inventory and Receivables | 733 | 381 |
Stock Compensation Expense | 1,304 | 1,048 |
Deferred Tax (Benefit) Expense | -4,598 | 1,109 |
Other | -1,095 | -863 |
Cash Flows from Changes in Operating Assets and Liabilities: | ' | ' |
Accounts Receivable | -41,562 | 4,804 |
Inventories | 16,184 | -3,668 |
Accounts Payable | 7,923 | 3,790 |
Other Current Assets and Liabilities | 5,199 | -590 |
Customer Advanced Payments and Deferred Revenue | 22,593 | -1,579 |
Income Taxes | 2,048 | 1,454 |
Supplemental Retirement and Other Liabilities | 921 | 838 |
Cash Provided By Operating Activities | 68,549 | 34,148 |
Cash Flows From Investing Activities: | ' | ' |
Acquisition of Business, net of cash acquired | -70,028 | -135,898 |
Capital Expenditures | -29,971 | -4,833 |
Cash Used For Investing Activities | -99,999 | -140,731 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from Long Term Debt | 245,414 | 190,000 |
Payments for Long-term Debt | -245,761 | -21,294 |
Debt Acquisition Costs | -573 | -2,288 |
Acquisition Earnout Payments | -37 | -81 |
Proceeds from Exercise of Stock Options | 1,290 | 408 |
Income Tax Benefit from Exercise of Stock Options | 2,041 | 649 |
Cash Provided By Financing Activities | 2,374 | 167,394 |
Effect of Exchange Rates on Cash | -631 | -5 |
(Decrease) Increase in Cash and Cash Equivalents | -29,707 | 60,806 |
Cash and Cash Equivalents at Beginning of Period | 54,635 | 7,380 |
Cash and Cash Equivalents at End of Period | $24,928 | $68,186 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 27, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
1) 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. Operating results for the three and nine month periods ended September 27, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
The balance sheet at December 31, 2013 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 for complete financial statements. | |
For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation’s 2013 annual report on Form 10-K. | |
Description of the Business | |
Astronics is a leading supplier of products to the aerospace and defense industries. Our products include advanced, high-performance lighting and safety systems, electrical power generation, distribution and motion systems, avionics and structure and other products for the global aerospace industry as well as test, training and simulation systems for the military, semi-conductor and consumer electronics markets. | |
The Company has two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications as well as automatic test systems, subsystems and instruments for semi-conductor and consumer electronics products. | |
We have twelve primary locations, ten in the United States, one in Canada, and one in France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); Astronics Test Systems, Inc. (“ATS”); Ballard Technology, Inc. (“Ballard”); DME Corporation (“DME”); Luminescent Systems, Inc. (“LSI”); Luminescent Systems Canada, Inc. (“LSI Canada”); Max-Viz, Inc. (“Max-Viz”); Peco, Inc. (“Peco”) and PGA Electronic s.a. (“PGA”). | |
On February 28, 2014, Astronics acquired, through a wholly owned subsidiary ATS, certain assets and liabilities of EADS North America’s Test and Services division, located in Irvine, California. ATS is a leading provider of highly engineered automatic test systems, subsystems and instruments for semi-conductor and consumer electronics products to both the commercial and defense industries. ATS is included in our Test Systems segment. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Acquisitions are accounted for under the purchase method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of earnings from the respective dates of acquisition. | |
Revenue and Expense Recognition | |
In the Aerospace segment, segment revenue is recognized on the accrual basis at the time of shipment of goods and transfer of title. There are no significant contracts allowing for right of return. | |
In the Test Systems segment, revenue of approximately 1% and 62% for the three months ending September 27, 2014 and September 28, 2013, respectively, and approximately 1% and 40% for the nine months ending September 27, 2014 and September 28, 2013 respectively, is recognized from long-term, fixed-price contracts using the percentage-of-completion method of accounting, measured by multiplying the estimated total contract value by the ratio of actual contract costs incurred to date to the estimated total contract costs. Substantially all long-term contracts are with U.S. government agencies and contractors thereto. The Company makes significant estimates involving its usage of percentage-of-completion accounting to recognize contract revenues. The Company periodically reviews contracts in process for estimates-to-completion, and revises estimated gross profit accordingly. While the Company believes its estimated gross profit on contracts in process is reasonable, unforeseen events and changes in circumstances can take place in a subsequent accounting period that may cause the Company to revise its estimated gross profit on one or more of its contracts in process. Accordingly, the ultimate gross profit realized upon completion of such contracts can vary significantly from estimated amounts between accounting periods. Revenue not recognized using the percentage-of-completion method is recognized at the time of shipment of goods and transfer of title. | |
With the acquisition of ATS, a portion of our Test Systems segment sales are recognized as multiple element arrangements, whereby revenue is allocated to the equipment and post installation maintenance service components based upon vendor specific objective evidence, typically pricing established in the contracts for the post installation services. If vendor-specific objective evidence of selling price is not available, we allocate revenue to the elements of the bundled arrangement using the estimated selling price method in order to qualify the components as separate units of accounting. Revenue on the equipment component is recognized when the equipment is accepted by the customers and title passes. Revenue on the post installation maintenance service component is recognized over the contractual life of the service to be provided, typically 24 months from installation. | |
Cost of Products Sold, Engineering and Development 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 developmental 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 $19.1 million and $12.4 million for the three months ended September 27, 2014 and September 28, 2013, respectively, and $57.1 million and $38.6 million for the nine months ended September 27, 2014 and September 28, 2013, 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 and nine months ended for both September 27, 2014 and September 28, 2013. | |
Financial Instruments | |
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, notes payable, long-term debt and interest rate swaps. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company does not hold or issue financial instruments for trading purposes. Due to their short-term nature, the carrying values of cash and equivalents, accounts receivable, accounts payable, and notes payable, if any, approximate fair value. The carrying value of the Company’s variable rate long-term debt also approximates fair value due to the variable rate feature of these instruments. The Company’s interest rate swaps are recorded at fair value as described under Note 16 – Fair Value and Note 17 – Derivative Financial Instruments. | |
Derivatives | |
The accounting for changes in the fair value of derivatives depends on the intended use and resulting designation. The Company’s use of derivative instruments is limited to cash flow hedges for interest rate risk associated with long-term debt. Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. The Company records all derivatives on the balance sheet at fair value as described under Note 16 – Fair Value and Note 17 – Derivative Financial Instruments. The related gains or losses, to the extent the derivatives are effective as a hedge, are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings at the time interest expense is recognized on the associated long-term debt. Any ineffectiveness is immediately recorded in the statement of operations. | |
Foreign Currency Translation | |
The Company accounts for its foreign currency translation in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Translation. The aggregate transaction gain or loss included in operations was insignificant for the periods ending September 27, 2014 and September 28, 2013. | |
Loss contingencies | |
Loss contingencies may from time to time arise from situations such as claims and other legal actions. Loss contingencies are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will exceed the recorded provision. Contingent liabilities are often resolved over long time periods. In recording liabilities for probable losses, management is required to make estimates and judgments regarding the amount or range of the probable loss. Management continually assesses the adequacy of estimated loss contingencies and, if necessary, adjusts the amounts recorded as better information becomes known. | |
Accounting Pronouncements Adopted in 2014 | |
On January 1, 2014, the Company adopted the new provisions of Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The ASU requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Unrecognized tax benefits are required to be netted against all available same-jurisdiction loss or other tax carryforwards, rather than only against carryforwards that are created by the unrecognized tax benefits. This ASU did not have an impact on the Company’s financial statements. | |
On January 1, 2014, the Company adopted the new provisions of Accounting Standards Update ASU 2013-12, Definition of a Public Business Entity – An Addition to the Master Glossary. The ASU amends the Master Glossary of the FASB Accounting Standards Codification to include one definition of public business entity for future use in U.S. GAAP and identifies the types of business entities that are excluded from the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies. This ASU did not have an impact on the Company’s financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
2) Inventories | |||||||||
Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method. Inventories are as follows: | |||||||||
(In thousands) | September 27, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished Goods | $ | 27,028 | $ | 21,627 | |||||
Work in Progress | 39,761 | 15,017 | |||||||
Raw Material | 59,775 | 48,625 | |||||||
$ | 126,564 | $ | 85,269 | ||||||
The Company records valuation reserves to provide for excess, slow moving or obsolete inventory or to reduce inventory to the lower of cost or market value. In determining the appropriate reserve, the Company considers the age of inventory on hand, the overall inventory levels in relation to forecasted demands as well as reserving for specifically identified inventory that the Company believes is no longer salable. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
3) Property, Plant and Equipment | |||||||||
The following table summarizes Property, Plant and Equipment as follows: | |||||||||
(In thousands) | September 27, | December 31, | |||||||
2014 | 2013 | ||||||||
Land | $ | 10,061 | $ | 6,742 | |||||
Buildings and Improvements | 59,485 | 45,551 | |||||||
Machinery and Equipment | 70,858 | 54,369 | |||||||
Construction in Progress | 15,955 | 1,527 | |||||||
156,359 | 108,189 | ||||||||
Less Accumulated Depreciation | 44,997 | 37,289 | |||||||
$ | 111,362 | $ | 70,900 | ||||||
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||
4) Intangible Assets | |||||||||||||||||||||
The following table summarizes acquired intangible assets as follows: | |||||||||||||||||||||
September 27, 2014 | December 31, 2013 | ||||||||||||||||||||
(In thousands) | Weighted | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | |||||||||||||||||
Patents | 7 Years | $ | 2,146 | $ | 1,031 | $ | 2,146 | $ | 891 | ||||||||||||
Trade Names | 9 Years | 8,344 | 1,104 | 7,453 | 552 | ||||||||||||||||
Completed and Unpatented Technology | 7 Years | 16,958 | 3,743 | 15,377 | 2,620 | ||||||||||||||||
Backlog and Customer Relationships | 11 Years | 91,771 | 18,056 | 88,998 | 7,210 | ||||||||||||||||
Total Intangible Assets | 9 Years | $ | 119,219 | $ | 23,934 | $ | 113,974 | $ | 11,273 | ||||||||||||
All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: | |||||||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Amortization Expense | $ | 12,673 | $ | 2,429 | $ | 7,769 | $ | 1,494 | |||||||||||||
Amortization expense for intangible assets expected for 2014 and for each of the next five years is summarized as follows: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2014 | $ | 15,651 | |||||||||||||||||||
2015 | 8,554 | ||||||||||||||||||||
2016 | 8,092 | ||||||||||||||||||||
2017 | 7,677 | ||||||||||||||||||||
2018 | 7,585 | ||||||||||||||||||||
2019 | 7,433 |
Goodwill
Goodwill | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
5) Goodwill | |||||||||||||||||
The following table summarizes the changes in the carrying amount of goodwill for 2014: | |||||||||||||||||
(In thousands) | December 31, | Acquisition | Foreign | September 27, | |||||||||||||
2013 | Currency | 2014 | |||||||||||||||
Translation | |||||||||||||||||
Aerospace | $ | 100,998 | $ | 512 | $ | (968 | ) | $ | 100,542 | ||||||||
Test Systems | — | — | — | — | |||||||||||||
$ | 100,998 | $ | 512 | $ | (968 | ) | $ | 100,542 | |||||||||
Longterm_Debt_and_Notes_Payabl
Long-term Debt and Notes Payable | 9 Months Ended | ||||
Sep. 27, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Long-term Debt and Notes Payable | ' | ||||
6) Long-term Debt and Notes Payable | |||||
On September 26, 2014, the Company modified and extended its existing credit facility (the “Original Facility”) by entering into the Fourth Amended and Restated Credit Agreement (the “Agreement”). On the closing date, there were $180.5 million of term loans outstanding, $6 million of revolving loans outstanding under the Original Facility. Pursuant to the Agreement, the Original Facility was replaced with a $350 million revolving credit line with the option to increase the line by up to $150 million. The outstanding balances in the Original Facility, were rolled into the Agreement on the date of entry. In addition, the maturity date of the loans under the Agreement is now September 26, 2019. | |||||
Covenants in the Agreement have been modified to where the maximum permitted leverage ratio of funded debt to EBITDA (as defined in the agreement) is 3.5 to 1, increasing to 4.0 to 1 for up to two fiscal quarters following the closing of an acquisition permitted under the Agreement. The Company will pay interest on the unpaid principal amount of the facility at a rate equal to one, three or six month Libor plus between 137.5 basis points and 225 basis points based upon the Company’s leverage ratio. The Company will also pay a commitment fee to the Lenders in an amount equal to between 17.5 basis points and 35 basis points on the undrawn portion of the credit facility, based upon the Company’s leverage ratio. The fixed charge coverage ratio under the Original Facility has been replaced with a minimum interest coverage ratio (EBITDA to interest expense) of 3.0 to 1 for the term of the Agreement. EBITDA, as defined in the agreement, is the sum of consolidated net income plus fees and expenses incurred in connection with a permitted acquisition for financing to the extent reducing consolidated net income, consolidated interest expense, provisions for taxes based on income, total depreciation expense, total amortization expense, other non-cash items reducing consolidated net income and any reduction of consolidated net income resulting from the fair valuation adjustment to inventory cost in connection with any permitted acquisition, less other non-cash items increasing consolidated net income for such period. Extraordinary gains, whether cash or non-cash, and earn-out adjustments in the purchase price for permitted acquisitions shall not be included in the calculation of EBITDA. | |||||
At September 27, 2014, there was $186.5 million outstanding on the revolving credit facility. There remains approximately $154.8 million available under the revolving credit facility on September 27, 2014, net of outstanding letters of credit. The credit facility allocates up to $20 million of the $350 million revolving credit line for the issuance of letters of credit, including certain existing letters of credit. At September 27, 2014, outstanding letters of credit totaled $8.7 million. | |||||
In September 2014, the Company directed the optional redemption in whole of its approximately $7.9 million of Industrial Revenue Bonds. Pursuant to the optional redemption, all of the principal and interest due on such Industrial Revenue Bonds will be paid and all letters of credit in support of the obligations cancelled in the fourth quarter of 2014. | |||||
Scheduled principal payments for the next 12 months on all long term debt amount to approximately $10.2 million. Remaining scheduled principal maturities of long-term debt each year are approximately: | |||||
(In thousands) | |||||
2014 | $ | 8,294 | |||
2015 | 2,698 | ||||
2016 | 2,798 | ||||
2017 | 2,733 | ||||
2018 | 2,729 | ||||
2019 | 188,407 | ||||
Thereafter | 4,984 | ||||
$ | 212,643 | ||||
Product_Warranties
Product Warranties | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
Product Warranties | ' | ||||||||||||||||
7) 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 to sixty months. 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: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | September 27, | Sept. 28, | September 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 2,796 | $ | 2,551 | $ | 3,925 | $ | 2,584 | |||||||||
Acquisitions | 564 | — | (226 | ) | — | ||||||||||||
Warranties issued | 2,842 | 356 | 1,966 | 23 | |||||||||||||
Warranties settled | (1,323 | ) | (618 | ) | (520 | ) | (202 | ) | |||||||||
Reassessed warranty exposure | 271 | (133 | ) | 5 | (249 | ) | |||||||||||
Balance at end of period | $ | 5,150 | $ | 2,156 | $ | 5,150 | $ | 2,156 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
8) Income Taxes | |
The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not expected to be realized. Investment tax credits are recognized on the flow through method. | |
ASC Topic 740-10 Overall – Uncertainty in Income Taxes (“ASC Topic 740-10”) clarifies the accounting and disclosure for uncertainty in tax positions. ASC Topic 740-10 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company is subject to the provisions of ASC Topic 740-10 and has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Should the Company need to accrue a liability for uncertain tax benefits, any interest associated with that liability will be recorded as interest expense. Penalties, if any, would be recognized as operating expenses. There were no penalties or interest liability accrued as of September 27, 2014 or December 31, 2013, nor were any penalties or interest costs included in expense for the three and nine month periods ending September 27, 2014 and September 28, 2013. The years under which we conducted our evaluation coincided with the tax years currently still subject to examination by major federal and state tax jurisdictions, those being 2012 through 2013 for federal purposes and 2011 through 2013 for state purposes. | |
The effective tax rates were approximately 27.2% and 33.4% for the three months and 31.0% and 28.8% for the nine months ended September 27, 2014 and September 28, 2013, respectively. The effective tax rate for the third quarter and first nine months of 2014 was lower than the federal statutory rate, due to the domestic production activity deduction, lower effective tax rates on foreign income and the recognition of $0.9 million in domestic Research and Development (“R&D”) tax credits related to prior years that was recognized in the third quarter of 2014. The effective tax rate for the nine months of 2013 was impacted primarily by the domestic production activity deduction, the recognition of approximately $1.1 million in domestic 2012 R&D tax credits and $0.6 million in domestic 2013 R&D tax credits. The effective tax rate for the three months ended September 28, 2013 was impacted primarily by the recognition of approximately $0.2 million in domestic 2013 R&D tax credits. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Shareholders' Equity | ' | ||||||||||||
9) Shareholders’ Equity | |||||||||||||
The changes in shareholders’ equity for the nine months ended September 27, 2014 are summarized as follows as adjusted to reflect the impact of the one-for-five distribution of Class B Stock as discussed in Note 10: | |||||||||||||
Number of Shares | |||||||||||||
(Dollars and Shares in thousands) | Amount | Common | Convertible | ||||||||||
Stock | Class B Stock | ||||||||||||
Shares Authorized | 40,000 | 10,000 | |||||||||||
Share Par Value | $ | 0.01 | $ | 0.01 | |||||||||
COMMON STOCK | |||||||||||||
Beginning of Period | $ | 214 | 13,268 | 8,221 | |||||||||
Conversion of Class B Shares to Common Shares | — | 1,261 | (1,261 | ) | |||||||||
Exercise of Stock Options | 4 | 166 | 133 | ||||||||||
End of Period | $ | 218 | 14,695 | 7,093 | |||||||||
ADDITIONAL PAID IN CAPITAL | |||||||||||||
Beginning of Period | $ | 40,791 | |||||||||||
Stock Compensation Expense | 1,304 | ||||||||||||
Exercise of Stock Options | 3,365 | ||||||||||||
End of Period | $ | 45,460 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Beginning of Period | $ | (3,611 | ) | ||||||||||
Foreign Currency Translation Adjustment | (2,943 | ) | |||||||||||
Change in Accumulated (Loss) Income on Derivatives – Net of Tax | 19 | ||||||||||||
Retirement Liability Adjustment – Net of Tax | 318 | ||||||||||||
End of Period | $ | (6,217 | ) | ||||||||||
RETAINED EARNINGS | |||||||||||||
Beginning of Period | $ | 134,115 | |||||||||||
Cash Paid in Lieu of Fractional Shares from Stock Distribution | (38 | ) | |||||||||||
Net Income | 37,731 | ||||||||||||
End of Period | $ | 171,808 | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||||
Beginning of Period | $ | 171,509 | |||||||||||
End of Period | $ | 211,269 | |||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
10) Earnings Per Share | |||||||||||||||||
Basic and diluted weighted-average shares outstanding are as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares – Basic | 21,661 | 20,905 | 21,749 | 20,948 | |||||||||||||
Net effect of dilutive stock options | 997 | 1,015 | 928 | 1,113 | |||||||||||||
Weighted average shares – Diluted | 22,658 | 21,920 | 22,677 | 22,061 | |||||||||||||
The above information has been adjusted to reflect the impact of the one-for-five distribution of Class B Stock for shareholders of record on September 5, 2014. | |||||||||||||||||
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 were insignificant at September 27, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss and Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss and Other Comprehensive Loss | ' | ||||||||||||||||
11) Accumulated Other Comprehensive Loss and Other Comprehensive Loss | |||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows: | |||||||||||||||||
(In thousands) | September 27, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign Currency Translation Adjustments | $ | (1,659 | ) | $ | 1,284 | ||||||||||||
Accumulated (Loss) Income on Derivatives – Before Tax | (77 | ) | (107 | ) | |||||||||||||
Tax Benefit | 27 | 38 | |||||||||||||||
Accumulated (Loss) Income on Derivatives – After Tax | (50 | ) | (69 | ) | |||||||||||||
Retirement Liability Adjustment – Before Tax | (6,935 | ) | (7,423 | ) | |||||||||||||
Tax Benefit | 2,427 | 2,597 | |||||||||||||||
Retirement Liability Adjustment – After Tax | (4,508 | ) | (4,826 | ) | |||||||||||||
Accumulated Other Comprehensive Loss | $ | (6,217 | ) | $ | (3,611 | ) | |||||||||||
The components of other comprehensive (loss) income are as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign Currency Translation Adjustments | $ | (2,943 | ) | $ | (260 | ) | $ | (2,375 | ) | $ | 129 | ||||||
Change in Accumulated (Loss) Income on Derivatives: | |||||||||||||||||
Reclassification to Interest Expense | 45 | 90 | 11 | 20 | |||||||||||||
Net (Decrease) Increase in Fair Value of Derivatives | (15 | ) | 11 | 31 | 22 | ||||||||||||
Tax Benefit (Expense) | (11 | ) | (36 | ) | (15 | ) | (15 | ) | |||||||||
Change in Accumulated (Loss) Income on Derivatives | 19 | 65 | 27 | 27 | |||||||||||||
Retirement Liability Adjustments: | |||||||||||||||||
Reclassifications to General and Administrative Expense: | |||||||||||||||||
Amortization of prior service cost | 408 | 388 | 136 | 127 | |||||||||||||
Amortization of net actuarial losses | 80 | 95 | 27 | 32 | |||||||||||||
Tax Benefit | (170 | ) | (167 | ) | (53 | ) | (54 | ) | |||||||||
Retirement Liability Adjustment | 318 | 316 | 110 | 105 | |||||||||||||
Other Comprehensive (Loss) Income | $ | (2,606 | ) | $ | 121 | $ | (2,238 | ) | $ | 261 | |||||||
Supplemental_Retirement_Plan_a
Supplemental Retirement Plan and Related Post Retirement Benefits | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Supplemental Retirement Plan and Related Post Retirement Benefits | ' | ||||||||||||||||
12) 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. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 187 | $ | 222 | $ | 62 | $ | 74 | |||||||||
Interest cost | 565 | 465 | 188 | 155 | |||||||||||||
Amortization of prior service cost | 390 | 370 | 130 | 121 | |||||||||||||
Amortization of net actuarial losses | 80 | 95 | 27 | 32 | |||||||||||||
Net periodic cost | $ | 1,222 | $ | 1,152 | $ | 407 | $ | 382 | |||||||||
Participants in the SERP are entitled to paid medical, dental and long-term care insurance benefits upon retirement under the plan. The following table sets forth information regarding the net periodic cost recognized for those benefits: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 1 | $ | 1 | |||||||||
Interest cost | 24 | 18 | 8 | 6 | |||||||||||||
Amortization of prior service cost | 18 | 18 | 6 | 6 | |||||||||||||
Net periodic cost | $ | 45 | $ | 39 | $ | 15 | $ | 13 | |||||||||
Sales_to_Major_Customers
Sales to Major Customers | 9 Months Ended |
Sep. 27, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Sales to Major Customers | ' |
13) Sales to Major Customers | |
The Company has a significant concentration of business with three major customers, each in excess of 10% of consolidated sales. The loss of any of these customers would significantly, negatively impact our sales and earnings. | |
The Company had sales to three customers that represented 20%, 17% and 14% of consolidated sales for the nine months ended September 27, 2014 and 25%, 17% and 13% of consolidated sales for the three months ended September 27, 2014. Sales to these customers were in the Aerospace and Test Systems segments. | |
The Company had sales to two customers in the Aerospace segment that represented 30% and 12% of consolidated sales for the nine months ended September 28, 2013 and 28% and 20% of consolidated sales for the three months ended September 28, 2013. | |
Accounts receivable from these customers at September 27, 2014 was approximately $57.0 million. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Proceedings | ' |
14) Legal Proceedings | |
The Company is subject to various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, we do not expect these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows. However, the results of these matters cannot be predicted with certainty. Should the Company fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially adversely affected. | |
We are a defendant in an action filed in the Regional State Court of Mannheim, Germany (Lufthansa Technik AG v. Astronics Advanced Electronics Systems Corp.) relating to an allegation of patent infringement. The damages sought include injunctive relief, as well as monetary damages. We dispute the allegation and are vigorously defending ourselves in this action. We have filed a nullity action with the Federal Patent Court in Munich, Germany, requesting the court to revoke the German part of the European patent that is subject to the claim. In November 2011, the Regional State Court of Manheim, Germany, issued an interim decision to the effect that the infringement litigation proceedings be stayed until the Federal Patent Court decides on the concurrent nullity action. In February 2014, the Federal Patent Court issued a written judgment upholding the validity of a portion of the patent. This judgment is being appealed by both litigants. However, as a result the judgment proclaimed by the Federal Patent Court the stay of the infringement litigation proceedings is no longer effective. A hearing has been scheduled for November 2014. The process thereafter could take several years to conclude. At this time we are unable to provide a reasonable estimate of our potential liability or the potential amount of loss related to this action, if any. If the outcome of this litigation is adverse to us, our results and financial condition could be materially affected. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
15) Segment Information | |||||||||||||||||
Below are the sales and operating profit by segment for the three and nine months ended September 27, 2014 and September 28, 2013 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. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(Dollars in thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales | |||||||||||||||||
Aerospace | $ | 366,128 | $ | 227,870 | $ | 122,233 | $ | 87,525 | |||||||||
Test Systems | 129,065 | 7,207 | 57,209 | 2,660 | |||||||||||||
Less Intersegment Sales | (237 | ) | (596 | ) | — | (504 | ) | ||||||||||
128,828 | 6,611 | 57,209 | 2,156 | ||||||||||||||
Total Consolidated Sales | $ | 494,956 | $ | 234,481 | $ | 179,442 | $ | 89,681 | |||||||||
Operating Profit (Loss) and Margins | |||||||||||||||||
Aerospace | $ | 60,308 | $ | 41,112 | $ | 22,057 | $ | 15,377 | |||||||||
16.5 | % | 18 | % | 18 | % | 17.6 | % | ||||||||||
Test Systems | 8,034 | (2,880 | ) | 5,699 | (745 | ) | |||||||||||
6.2 | % | (40.0 | )% | 10 | % | (28.0 | )% | ||||||||||
Total Operating Profit | 68,342 | 38,232 | 27,756 | 14,632 | |||||||||||||
13.8 | % | 16.3 | % | 15.5 | % | 16.3 | % | ||||||||||
Deductions from Operating Profit | |||||||||||||||||
Interest Expense, net of interest income | 7,183 | 2,085 | 2,301 | 1,605 | |||||||||||||
Corporate Expenses and Other | 6,463 | 6,838 | 1,985 | 2,280 | |||||||||||||
Income Before Income Taxes | $ | 54,696 | $ | 29,309 | $ | 23,470 | $ | 10,747 | |||||||||
Identifiable Assets | |||||||||||||||||
(In thousands) | September 27, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Aerospace | $ | 454,322 | $ | 428,619 | |||||||||||||
Test Systems | 114,551 | 11,035 | |||||||||||||||
Corporate | 22,034 | 51,617 | |||||||||||||||
Total Assets | $ | 590,907 | $ | 491,271 | |||||||||||||
Fair_Value
Fair Value | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Fair Value | ' | ||||||||||||||||||
16) Fair Value | |||||||||||||||||||
ASC Topic 820, Fair value Measurements and Disclosures, (“ASC Topic 820”) defines fair value, establishes a framework for measuring fair value and expands the related disclosure requirements. This statement applies under other accounting pronouncements that require or permit fair value measurements. The statement indicates, among other things, that 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. ASC Topic 820 defines fair value 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. | |||||||||||||||||||
ASC Topic 820 establishes 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. The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of September 27, 2014 and December 31, 2013: | |||||||||||||||||||
(In thousands) | Classification | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Interest rate swaps | |||||||||||||||||||
September 27, 2014 | Current Liabilities | $ | (77 | ) | $ | — | $ | (77 | ) | $ | — | ||||||||
December 31, 2013 | Other Liabilities | (107 | ) | — | (107 | ) | — | ||||||||||||
Acquisition contingent consideration | |||||||||||||||||||
September 27, 2014 | Current Liabilities | $ | (2,280 | ) | $ | — | $ | — | $ | (2,280 | ) | ||||||||
December 31, 2013 | Current Liabilities | (137 | ) | — | — | (137 | ) | ||||||||||||
September 27, 2014 | Other Liabilities | $ | (3,784 | ) | $ | — | $ | — | $ | (3,784 | ) | ||||||||
December 31, 2013 | Other Liabilities | (5,709 | ) | — | — | (5,709 | ) | ||||||||||||
Interest rate swaps are securities with no quoted readily available Level 1 inputs, and therefore are measured at fair value using inputs that are directly observable in active markets and are classified within Level 2 of the valuation hierarchy, using the income approach (See Note 17). | |||||||||||||||||||
Our Level 3 fair value liabilities represent contingent consideration recorded related to the 2011 Ballard acquisition, to be paid up to a maximum of $5.5 million if annual revenue growth targets are met in the years 2012 – 2016, the 2012 Max-Viz acquisition, to be paid up to a maximum of $8.0 million if annual revenue targets are met in the years 2013 – 2015 and the 2013 AeroSat acquisition, to be paid up to a maximum of $53.0 million if annual revenue targets are met in the years 2014 and 2015. The calculation of additional purchase consideration (“Earn Out”) related to the acquisition of AeroSat is as follows: | |||||||||||||||||||
AeroSat Revenue | Earn Out Formula | ||||||||||||||||||
2014 | <$30 million | No Earn Out | |||||||||||||||||
>$30 million < $50 million | (AeroSat Revenue X 15%) x ((AeroSat Revenue-$30 million)/$20 million) | ||||||||||||||||||
>$50 million | AeroSat Revenue X 15% | ||||||||||||||||||
2015 | <$40 million | No Earn Out | |||||||||||||||||
>$40 million < $60 million | (AeroSat Revenue X 15%) x ((AeroSat Revenue-$40 million)/$20 million) | ||||||||||||||||||
>$60 million | AeroSat Revenue X 15% | ||||||||||||||||||
The amounts recorded were calculated using an estimate of the probability of future revenue. The varying contingent payments were then discounted to the present value utilizing a discounted cash flow methodology. The contingent consideration liabilities have no observable Level 1 or Level 2 inputs. | |||||||||||||||||||
On a Non-recurring Basis: | |||||||||||||||||||
In accordance with the provisions of ASC Topic 350 Intangibles – 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 Company utilizes a discounted cash flow analysis to estimate the fair value of reporting units utilizing unobservable inputs. The fair value measurement of the reporting unit under the step-one and step-two analysis of the quantitative goodwill impairment test are classified as Level 3 inputs. | |||||||||||||||||||
Intangible assets that are amortized 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. For the Company’s indefinite-lived intangible asset, the impairment test consists of comparing the fair value, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. | |||||||||||||||||||
The fair value of goodwill and intangible assets classified using Level 3 inputs are the Max-Viz, Peco, AeroSat, PGA and ATS goodwill and intangible assets acquired were measured at fair value using a discounted cash flow methodology and are classified as Level 3 inputs. As of September 27, 2014, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed. | |||||||||||||||||||
Due to their short-term nature, the carrying value of cash and equivalents, accounts receivable, accounts payable, and notes payable approximate fair value. The carrying value of the Company’s variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
17) Derivative Financial Instruments | |||||||||||||||||
At September 27, 2014, we had an interest rate swap with a notional amount of approximately $1.5 million, entered into on February 6, 2006, related to the Company’s Series 1999 New York Industrial Revenue Bond, which effectively fixes the rate at 3.99% plus a spread based on the Company’s leverage ratio on this obligation through February 1, 2016. | |||||||||||||||||
An interest rate swap entered into on March 19, 2009 related to the Company’s term note issued January 30, 2009, was terminated in the third quarter of 2013 with no significant impact to the results of our operations. | |||||||||||||||||
At September 27, 2014 and December 31, 2013, the fair value of the interest rate swap was a liability of $0.1 million which is included in other liabilities (See Note 16 – Fair Value). On September 18, 2014, the Company gave notice of its intention to terminate the interest rate swap in the fourth quarter of 2014 in connection with the redemption of the underlying Series 1999 New York Industrial Revenue bonds (See Note 6 – Long-term Debt and Notes Payable). | |||||||||||||||||
Activity in AOCI related to these derivatives is summarized below: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivative balance at the beginning of the period in AOCI | $ | (69 | ) | $ | (142 | ) | $ | (77 | ) | $ | (104 | ) | |||||
Net deferral in AOCI of derivatives: | |||||||||||||||||
Net (decrease) increase in fair value of derivatives | (15 | ) | 11 | 31 | 22 | ||||||||||||
Tax effect | 4 | (4 | ) | (12 | ) | (8 | ) | ||||||||||
(11 | ) | 7 | 19 | 14 | |||||||||||||
Net reclassification from AOCI into earnings: | |||||||||||||||||
Reclassification from AOCI into earnings – interest expense | 45 | 90 | 11 | 20 | |||||||||||||
Tax effect | (15 | ) | (32 | ) | (3 | ) | (7 | ) | |||||||||
30 | 58 | 8 | 13 | ||||||||||||||
Net change in derivatives for the period | 19 | 65 | 27 | 27 | |||||||||||||
Derivative balance at the end of the period in AOCI | $ | (50 | ) | $ | (77 | ) | $ | (50 | ) | $ | (77 | ) | |||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 27, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
18) Recent Accounting Pronouncements | |
The Company’s management has reviewed recent accounting pronouncements issued through the date of the issuance of financial statements. In management’s opinion, none of these new pronouncements apply or will have a material effect on the Company’s financial statements. |
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions | ' | ||||||||||||||||
19) Acquisitions | |||||||||||||||||
Astronics Test Systems | |||||||||||||||||
On January 20, 2014, we entered into an agreement to purchase substantially all of the assets and liabilities of the Test and Services Division of EADS North America, Inc. for approximately $69.4 million in cash, including a net working capital adjustment of approximately $16.4 million. On February 28, 2014, the assets were acquired by our wholly owned subsidiary Astronics Test Systems, Inc. (“ATS”). Located in Irvine, California, ATS is a leading provider of highly engineered automatic test systems, subsystems and instruments for the semi-conductor, consumer electronics, commercial aerospace and defense industries. ATS provides fully customized testing systems and support services for these markets. It also designs and manufactures test equipment under the test instrument brands known as Racal and Talon. The acquisition will strengthen our service offerings and expertise in the test market. This subsidiary is reported as part of our Test Systems segment. The purchase price allocation for this acquisition is not finalized as the fair value determination of assets and liabilities is not complete. | |||||||||||||||||
A preliminary allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||
Accounts Receivable | $ | 10,593 | |||||||||||||||
Inventory | 59,013 | ||||||||||||||||
Other Current Assets | 677 | ||||||||||||||||
Fixed Assets | 19,425 | ||||||||||||||||
Purchased Intangible Assets | 7,103 | ||||||||||||||||
Current Portion of Long Term Debt | (1,124 | ) | |||||||||||||||
Accounts Payable | (10,777 | ) | |||||||||||||||
Accrued Expenses and Other Current Liabilities | (3,489 | ) | |||||||||||||||
Long Term Debt | (11,976 | ) | |||||||||||||||
Total Purchase Price | $ | 69,445 | |||||||||||||||
Intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. Purchased intangible assets are deductible for tax purposes. | |||||||||||||||||
PGA Electronic s.a. | |||||||||||||||||
On December 5, 2013 we acquired 100% of the stock of PGA, a designer and manufacturer of seat motion and lighting systems primarily for business and first class aircraft seats and is Europe’s leading provider of in-flight entertainment/communication systems as well as cabin management systems for private VVIP aircraft. The addition of PGA further diversifies the products and technologies that Astronics offers. The purchase price was approximately $31.3 million for which approximately $9.1 million, net of cash acquired, was paid in cash and the balance paid with 264,168 shares of Astronics stock valued at $51.00 per share. PGA is included in our Aerospace reporting segment. | |||||||||||||||||
The allocation of the purchase price paid for PGA is based on fair values of the acquired assets and liabilities assumed of PGA as of December 5, 2013. | |||||||||||||||||
The allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||
Cash | $ | 8,699 | |||||||||||||||
Accounts Receivable | 9,015 | ||||||||||||||||
Inventory | 12,542 | ||||||||||||||||
Other Current Assets | 1,429 | ||||||||||||||||
Fixed Assets | 10,741 | ||||||||||||||||
Purchased Intangible Assets | 5,592 | ||||||||||||||||
Goodwill | 7,440 | ||||||||||||||||
Other Assets | 74 | ||||||||||||||||
Current Portion of Long Term Debt | (1,672 | ) | |||||||||||||||
Accounts Payable | (6,179 | ) | |||||||||||||||
Accrued Expenses and Other Current Liabilities | (3,387 | ) | |||||||||||||||
Customer Deposits | (4,601 | ) | |||||||||||||||
Long Term Debt | (5,115 | ) | |||||||||||||||
Other Long term Liabilities | (3,315 | ) | |||||||||||||||
Total Purchase Price | $ | 31,263 | |||||||||||||||
The amounts allocated to the purchased intangible assets consist of the following: | |||||||||||||||||
(In thousands) | Weighted | Acquisition | |||||||||||||||
Average Life | Fair Value | ||||||||||||||||
Trademark | 15 Years | $ | 955 | ||||||||||||||
Technology | 5-10 Years | 1,637 | |||||||||||||||
Customer Relationships | 16-19 Years | 3,000 | |||||||||||||||
$ | 5,592 | ||||||||||||||||
Goodwill and other intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to expected synergies and the assembled workforce. | |||||||||||||||||
Astronics AeroSat Corporation | |||||||||||||||||
On October 1, 2013, we acquired certain assets and liabilities from AeroSat Corporation and related entities, a supplier of aircraft antenna systems for $12.5 million in cash, plus the potential additional purchase consideration of up to $53 million based upon the achievement of certain revenue targets in 2014 and 2015. The addition of AeroSat further diversifies the products and technologies that Astronics offers. The additional contingent purchase consideration is recorded at its estimated fair value of approximately $5.0 million at the date of acquisition based upon the Company’s assessment of the probability of AeroSat achieving the revenue growth targets. Substantially all of the goodwill and purchased intangible assets are expected to be deductible for tax purposes over 15 years. AeroSat is included in our Aerospace reporting segment. | |||||||||||||||||
The allocation of the purchase price paid for AeroSat is based on fair values of the acquired assets and liabilities assumed of AeroSat as of October 1, 2013. | |||||||||||||||||
The allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||
Accounts Receivable | $ | 1,712 | |||||||||||||||
Inventory | 4,009 | ||||||||||||||||
Prepaid Deposits | 687 | ||||||||||||||||
Fixed Assets | 448 | ||||||||||||||||
Purchased Intangible Assets | 13,800 | ||||||||||||||||
Goodwill | 1,610 | ||||||||||||||||
Other Assets | 65 | ||||||||||||||||
Accounts Payable | (286 | ) | |||||||||||||||
Accrued Expenses | (543 | ) | |||||||||||||||
Customer Deposits | (4,048 | ) | |||||||||||||||
Total Purchase Price | $ | 17,454 | |||||||||||||||
The amounts allocated to the purchased intangible assets consist of the following: | |||||||||||||||||
(In thousands) | Weighted | Acquisition | |||||||||||||||
Average Life | Fair Value | ||||||||||||||||
Trademark | 10 Years | $ | 800 | ||||||||||||||
Technology | 10 Years | 5,300 | |||||||||||||||
Customer Relationships | 12 Years | 7,700 | |||||||||||||||
$ | 13,800 | ||||||||||||||||
Goodwill and other intangible assets reflected above were determined to meet the criterion for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to expected synergies and the assembled workforce. Purchased intangible assets and goodwill are deductible for tax purposes. | |||||||||||||||||
Peco, Inc. | |||||||||||||||||
On July 18, 2013, we acquired 100% of the stock of Peco which designs and manufactures highly engineered commercial aerospace interior components and systems for the aerospace industry. The company specializes in Passenger Service Units (PSUs) which incorporate air handling, emergency oxygen, electrical power management and cabin lighting systems. It also manufactures a wide range of fuel access doors that meet stringent strength, fuel sealing and anti-corrosion requirements. The addition of Peco diversifies the products and technologies that Astronics offers. We purchased the outstanding stock of Peco for $136.0 million in cash. Peco is included in our Aerospace reporting segment. | |||||||||||||||||
The following summary, prepared on a pro forma basis, combines the consolidated results of operations of the Company with those of Peco as if the acquisition took place on January 1, 2012. The pro forma consolidated results include the impact of certain adjustments, including increased interest expense on acquisition debt, amortization of purchased intangible assets and income taxes. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(in thousands, except earnings per share) | Sept. 27, 2014 | Sept. 28, 2013 | Sept. 27, 2014 | Sept. 28, 2013 | |||||||||||||
as Reported | Pro Forma | as Reported | Pro Forma | ||||||||||||||
Sales | $ | 494,956 | $ | 280,714 | $ | 179,442 | $ | 93,517 | |||||||||
Net Income | 37,731 | 23,034 | 17,080 | 7,230 | |||||||||||||
Basic earnings per share | 1.74 | 1.1 | 0.79 | 0.35 | |||||||||||||
Diluted earnings per share | 1.67 | 1.05 | 0.75 | 0.33 | |||||||||||||
The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been in effect for the three months and nine months ended September 28, 2013. In addition, they are not intended to be a projection of future results. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 27, 2014 | |
Accounting Policies [Abstract] | ' |
Operating Results | ' |
Operating Results | |
The results of operations for any interim period are not necessarily indicative of results for the full year. Operating results for the three and nine month periods ended September 27, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
The balance sheet at December 31, 2013 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 for complete financial statements. | |
For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation’s 2013 annual report on Form 10-K. | |
Description of the Business | ' |
Description of the Business | |
Astronics is a leading supplier of products to the aerospace and defense industries. Our products include advanced, high-performance lighting and safety systems, electrical power generation, distribution and motion systems, avionics and structure and other products for the global aerospace industry as well as test, training and simulation systems for the military, semi-conductor and consumer electronics markets. | |
The Company has two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. The Test Systems segment designs, manufactures and maintains communications and weapons test systems and training and simulation devices for military applications as well as automatic test systems, subsystems and instruments for semi-conductor and consumer electronics products. | |
We have twelve primary locations, ten in the United States, one in Canada, and one in France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); Astronics Test Systems, Inc. (“ATS”); Ballard Technology, Inc. (“Ballard”); DME Corporation (“DME”); Luminescent Systems, Inc. (“LSI”); Luminescent Systems Canada, Inc. (“LSI Canada”); Max-Viz, Inc. (“Max-Viz”); Peco, Inc. (“Peco”) and PGA Electronic s.a. (“PGA”). | |
On February 28, 2014, Astronics acquired, through a wholly owned subsidiary ATS, certain assets and liabilities of EADS North America’s Test and Services division, located in Irvine, California. ATS is a leading provider of highly engineered automatic test systems, subsystems and instruments for semi-conductor and consumer electronics products to both the commercial and defense industries. ATS is included in our Test Systems segment. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Acquisitions are accounted for under the purchase method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of earnings from the respective dates of acquisition. | |
Revenue and Expense Recognition | ' |
Revenue and Expense Recognition | |
In the Aerospace segment, segment revenue is recognized on the accrual basis at the time of shipment of goods and transfer of title. There are no significant contracts allowing for right of return. | |
In the Test Systems segment, revenue of approximately 1% and 62% for the three months ending September 27, 2014 and September 28, 2013, respectively, and approximately 1% and 40% for the nine months ending September 27, 2014 and September 28, 2013 respectively, is recognized from long-term, fixed-price contracts using the percentage-of-completion method of accounting, measured by multiplying the estimated total contract value by the ratio of actual contract costs incurred to date to the estimated total contract costs. Substantially all long-term contracts are with U.S. government agencies and contractors thereto. The Company makes significant estimates involving its usage of percentage-of-completion accounting to recognize contract revenues. The Company periodically reviews contracts in process for estimates-to-completion, and revises estimated gross profit accordingly. While the Company believes its estimated gross profit on contracts in process is reasonable, unforeseen events and changes in circumstances can take place in a subsequent accounting period that may cause the Company to revise its estimated gross profit on one or more of its contracts in process. Accordingly, the ultimate gross profit realized upon completion of such contracts can vary significantly from estimated amounts between accounting periods. Revenue not recognized using the percentage-of-completion method is recognized at the time of shipment of goods and transfer of title. | |
With the acquisition of ATS, a portion of our Test Systems segment sales are recognized as multiple element arrangements, whereby revenue is allocated to the equipment and post installation maintenance service components based upon vendor specific objective evidence, typically pricing established in the contracts for the post installation services. If vendor-specific objective evidence of selling price is not available, we allocate revenue to the elements of the bundled arrangement using the estimated selling price method in order to qualify the components as separate units of accounting. Revenue on the equipment component is recognized when the equipment is accepted by the customers and title passes. Revenue on the post installation maintenance service component is recognized over the contractual life of the service to be provided, typically 24 months from installation. | |
Cost of Products Sold, Engineering and Development and Selling, General and Administrative Expenses | ' |
Cost of Products Sold, Engineering and Development 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 developmental 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 $19.1 million and $12.4 million for the three months ended September 27, 2014 and September 28, 2013, respectively, and $57.1 million and $38.6 million for the nine months ended September 27, 2014 and September 28, 2013, 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 and nine months ended for both September 27, 2014 and September 28, 2013. | |
Financial Instruments | ' |
Financial Instruments | |
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, notes payable, long-term debt and interest rate swaps. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company does not hold or issue financial instruments for trading purposes. Due to their short-term nature, the carrying values of cash and equivalents, accounts receivable, accounts payable, and notes payable, if any, approximate fair value. The carrying value of the Company’s variable rate long-term debt also approximates fair value due to the variable rate feature of these instruments. The Company’s interest rate swaps are recorded at fair value as described under Note 16 – Fair Value and Note 17 – Derivative Financial Instruments. | |
Derivatives | ' |
Derivatives | |
The accounting for changes in the fair value of derivatives depends on the intended use and resulting designation. The Company’s use of derivative instruments is limited to cash flow hedges for interest rate risk associated with long-term debt. Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. The Company records all derivatives on the balance sheet at fair value as described under Note 16 – Fair Value and Note 17 – Derivative Financial Instruments. The related gains or losses, to the extent the derivatives are effective as a hedge, are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings at the time interest expense is recognized on the associated long-term debt. Any ineffectiveness is immediately recorded in the statement of operations. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The Company accounts for its foreign currency translation in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Translation. The aggregate transaction gain or loss included in operations was insignificant for the periods ending September 27, 2014 and September 28, 2013. | |
Loss Contingencies | ' |
Loss contingencies | |
Loss contingencies may from time to time arise from situations such as claims and other legal actions. Loss contingencies are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will exceed the recorded provision. Contingent liabilities are often resolved over long time periods. In recording liabilities for probable losses, management is required to make estimates and judgments regarding the amount or range of the probable loss. Management continually assesses the adequacy of estimated loss contingencies and, if necessary, adjusts the amounts recorded as better information becomes known. | |
Accounting Pronouncements Adopted in 2014 | ' |
Accounting Pronouncements Adopted in 2014 | |
On January 1, 2014, the Company adopted the new provisions of Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The ASU requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Unrecognized tax benefits are required to be netted against all available same-jurisdiction loss or other tax carryforwards, rather than only against carryforwards that are created by the unrecognized tax benefits. This ASU did not have an impact on the Company’s financial statements. | |
On January 1, 2014, the Company adopted the new provisions of Accounting Standards Update ASU 2013-12, Definition of a Public Business Entity – An Addition to the Master Glossary. The ASU amends the Master Glossary of the FASB Accounting Standards Codification to include one definition of public business entity for future use in U.S. GAAP and identifies the types of business entities that are excluded from the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies. This ASU did not have an impact on the Company’s financial statements. | |
Income Taxes Policy | ' |
ASC Topic 740-10 Overall – Uncertainty in Income Taxes (“ASC Topic 740-10”) clarifies the accounting and disclosure for uncertainty in tax positions. ASC Topic 740-10 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company is subject to the provisions of ASC Topic 740-10 and has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Should the Company need to accrue a liability for uncertain tax benefits, any interest associated with that liability will be recorded as interest expense. Penalties, if any, would be recognized as operating expenses. There were no penalties or interest liability accrued as of September 27, 2014 or December 31, 2013, nor were any penalties or interest costs included in expense for the three and nine month periods ending September 27, 2014 and September 28, 2013. The years under which we conducted our evaluation coincided with the tax years currently still subject to examination by major federal and state tax jurisdictions, those being 2012 through 2013 for federal purposes and 2011 through 2013 for state purposes. | |
The effective tax rates were approximately 27.2% and 33.4% for the three months and 31.0% and 28.8% for the nine months ended September 27, 2014 and September 28, 2013, respectively. The effective tax rate for the third quarter and first nine months of 2014 was lower than the federal statutory rate, due to the domestic production activity deduction, lower effective tax rates on foreign income and the recognition of $0.9 million in domestic Research and Development (“R&D”) tax credits related to prior years that was recognized in the third quarter of 2014. The effective tax rate for the nine months of 2013 was impacted primarily by the domestic production activity deduction, the recognition of approximately $1.1 million in domestic 2012 R&D tax credits and $0.6 million in domestic 2013 R&D tax credits. The effective tax rate for the three months ended September 28, 2013 was impacted primarily by the recognition of approximately $0.2 million in domestic 2013 R&D tax credits. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method. Inventories are as follows: | |||||||||
(In thousands) | September 27, | December 31, | |||||||
2014 | 2013 | ||||||||
Finished Goods | $ | 27,028 | $ | 21,627 | |||||
Work in Progress | 39,761 | 15,017 | |||||||
Raw Material | 59,775 | 48,625 | |||||||
$ | 126,564 | $ | 85,269 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | ||||||||
Sep. 27, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Summary of Property, Plant and Equipment | ' | ||||||||
The following table summarizes Property, Plant and Equipment as follows: | |||||||||
(In thousands) | September 27, | December 31, | |||||||
2014 | 2013 | ||||||||
Land | $ | 10,061 | $ | 6,742 | |||||
Buildings and Improvements | 59,485 | 45,551 | |||||||
Machinery and Equipment | 70,858 | 54,369 | |||||||
Construction in Progress | 15,955 | 1,527 | |||||||
156,359 | 108,189 | ||||||||
Less Accumulated Depreciation | 44,997 | 37,289 | |||||||
$ | 111,362 | $ | 70,900 | ||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||||
Summary of Acquired Intangible Assets | ' | ||||||||||||||||||||
The following table summarizes acquired intangible assets as follows: | |||||||||||||||||||||
September 27, 2014 | December 31, 2013 | ||||||||||||||||||||
(In thousands) | Weighted | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | |||||||||||||||||
Patents | 7 Years | $ | 2,146 | $ | 1,031 | $ | 2,146 | $ | 891 | ||||||||||||
Trade Names | 9 Years | 8,344 | 1,104 | 7,453 | 552 | ||||||||||||||||
Completed and Unpatented Technology | 7 Years | 16,958 | 3,743 | 15,377 | 2,620 | ||||||||||||||||
Backlog and Customer Relationships | 11 Years | 91,771 | 18,056 | 88,998 | 7,210 | ||||||||||||||||
Total Intangible Assets | 9 Years | $ | 119,219 | $ | 23,934 | $ | 113,974 | $ | 11,273 | ||||||||||||
Summary of Acquired Intangible Assets | ' | ||||||||||||||||||||
The amounts allocated to the purchased intangible assets consist of the following: | |||||||||||||||||||||
(In thousands) | Weighted | Acquisition | |||||||||||||||||||
Average Life | Fair Value | ||||||||||||||||||||
Trademark | 15 Years | $ | 955 | ||||||||||||||||||
Technology | 5-10 Years | 1,637 | |||||||||||||||||||
Customer Relationships | 16-19 Years | 3,000 | |||||||||||||||||||
$ | 5,592 | ||||||||||||||||||||
Consolidated Results of Operation of Company with Acquired Business | ' | ||||||||||||||||||||
The pro forma consolidated results include the impact of certain adjustments, including increased interest expense on acquisition debt, amortization of purchased intangible assets and income taxes. | |||||||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||||||
(in thousands, except earnings per share) | Sept. 27, 2014 | Sept. 28, 2013 | Sept. 27, 2014 | Sept. 28, 2013 | |||||||||||||||||
as Reported | Pro Forma | as Reported | Pro Forma | ||||||||||||||||||
Sales | $ | 494,956 | $ | 280,714 | $ | 179,442 | $ | 93,517 | |||||||||||||
Net Income | 37,731 | 23,034 | 17,080 | 7,230 | |||||||||||||||||
Basic earnings per share | 1.74 | 1.1 | 0.79 | 0.35 | |||||||||||||||||
Diluted earnings per share | 1.67 | 1.05 | 0.75 | 0.33 | |||||||||||||||||
PGA electronic S.A. | ' | ||||||||||||||||||||
Allocation of Purchase Price Based on Appraised Fair Values | ' | ||||||||||||||||||||
The allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||||||
Cash | $ | 8,699 | |||||||||||||||||||
Accounts Receivable | 9,015 | ||||||||||||||||||||
Inventory | 12,542 | ||||||||||||||||||||
Other Current Assets | 1,429 | ||||||||||||||||||||
Fixed Assets | 10,741 | ||||||||||||||||||||
Purchased Intangible Assets | 5,592 | ||||||||||||||||||||
Goodwill | 7,440 | ||||||||||||||||||||
Other Assets | 74 | ||||||||||||||||||||
Current Portion of Long Term Debt | (1,672 | ) | |||||||||||||||||||
Accounts Payable | (6,179 | ) | |||||||||||||||||||
Accrued Expenses and Other Current Liabilities | (3,387 | ) | |||||||||||||||||||
Customer Deposits | (4,601 | ) | |||||||||||||||||||
Long Term Debt | (5,115 | ) | |||||||||||||||||||
Other Long term Liabilities | (3,315 | ) | |||||||||||||||||||
Total Purchase Price | $ | 31,263 | |||||||||||||||||||
AeroSat [Member] | ' | ||||||||||||||||||||
Summary of Acquired Intangible Assets | ' | ||||||||||||||||||||
The amounts allocated to the purchased intangible assets consist of the following: | |||||||||||||||||||||
(In thousands) | Weighted | Acquisition | |||||||||||||||||||
Average Life | Fair Value | ||||||||||||||||||||
Trademark | 10 Years | $ | 800 | ||||||||||||||||||
Technology | 10 Years | 5,300 | |||||||||||||||||||
Customer Relationships | 12 Years | 7,700 | |||||||||||||||||||
$ | 13,800 | ||||||||||||||||||||
Allocation of Purchase Price Based on Appraised Fair Values | ' | ||||||||||||||||||||
The allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||||||
Accounts Receivable | $ | 1,712 | |||||||||||||||||||
Inventory | 4,009 | ||||||||||||||||||||
Prepaid Deposits | 687 | ||||||||||||||||||||
Fixed Assets | 448 | ||||||||||||||||||||
Purchased Intangible Assets | 13,800 | ||||||||||||||||||||
Goodwill | 1,610 | ||||||||||||||||||||
Other Assets | 65 | ||||||||||||||||||||
Accounts Payable | (286 | ) | |||||||||||||||||||
Accrued Expenses | (543 | ) | |||||||||||||||||||
Customer Deposits | (4,048 | ) | |||||||||||||||||||
Total Purchase Price | $ | 17,454 | |||||||||||||||||||
Astronics Test Systems [Member] | ' | ||||||||||||||||||||
Allocation of Purchase Price Based on Appraised Fair Values | ' | ||||||||||||||||||||
A preliminary allocation of purchase price based on appraised fair values was as follows (In thousands): | |||||||||||||||||||||
Accounts Receivable | $ | 10,593 | |||||||||||||||||||
Inventory | 59,013 | ||||||||||||||||||||
Other Current Assets | 677 | ||||||||||||||||||||
Fixed Assets | 19,425 | ||||||||||||||||||||
Purchased Intangible Assets | 7,103 | ||||||||||||||||||||
Current Portion of Long Term Debt | (1,124 | ) | |||||||||||||||||||
Accounts Payable | (10,777 | ) | |||||||||||||||||||
Accrued Expenses and Other Current Liabilities | (3,489 | ) | |||||||||||||||||||
Long Term Debt | (11,976 | ) | |||||||||||||||||||
Total Purchase Price | $ | 69,445 | |||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Amortization Expense for Acquired Intangibles | ' | ||||||||||||||||
Amortization expense for acquired intangibles is summarized as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Amortization Expense | $ | 12,673 | $ | 2,429 | $ | 7,769 | $ | 1,494 | |||||||||
Summary of Amortization Expense for Intangible Assets for Each of Next Five Years | ' | ||||||||||||||||
Amortization expense for intangible assets expected for 2014 and for each of the next five years is summarized as follows: | |||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 15,651 | |||||||||||||||
2015 | 8,554 | ||||||||||||||||
2016 | 8,092 | ||||||||||||||||
2017 | 7,677 | ||||||||||||||||
2018 | 7,585 | ||||||||||||||||
2019 | 7,433 |
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
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 2014: | |||||||||||||||||
(In thousands) | December 31, | Acquisition | Foreign | September 27, | |||||||||||||
2013 | Currency | 2014 | |||||||||||||||
Translation | |||||||||||||||||
Aerospace | $ | 100,998 | $ | 512 | $ | (968 | ) | $ | 100,542 | ||||||||
Test Systems | — | — | — | — | |||||||||||||
$ | 100,998 | $ | 512 | $ | (968 | ) | $ | 100,542 | |||||||||
Longterm_Debt_and_Notes_Payabl1
Long-term Debt and Notes Payable (Tables) | 9 Months Ended | ||||
Sep. 27, 2014 | |||||
Debt Disclosure [Abstract] | ' | ||||
Principal Maturities of Long-Term Debt | ' | ||||
Remaining scheduled principal maturities of long-term debt each year are approximately: | |||||
(In thousands) | |||||
2014 | $ | 8,294 | |||
2015 | 2,698 | ||||
2016 | 2,798 | ||||
2017 | 2,733 | ||||
2018 | 2,729 | ||||
2019 | 188,407 | ||||
Thereafter | 4,984 | ||||
$ | 212,643 | ||||
Product_Warranties_Tables
Product Warranties (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Guarantees [Abstract] | ' | ||||||||||||||||
Summary of Activity in Warranty Accrual | ' | ||||||||||||||||
Activity in the warranty accrual is summarized as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | September 27, | Sept. 28, | September 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 2,796 | $ | 2,551 | $ | 3,925 | $ | 2,584 | |||||||||
Acquisitions | 564 | — | (226 | ) | — | ||||||||||||
Warranties issued | 2,842 | 356 | 1,966 | 23 | |||||||||||||
Warranties settled | (1,323 | ) | (618 | ) | (520 | ) | (202 | ) | |||||||||
Reassessed warranty exposure | 271 | (133 | ) | 5 | (249 | ) | |||||||||||
Balance at end of period | $ | 5,150 | $ | 2,156 | $ | 5,150 | $ | 2,156 | |||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 27, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Summary of Changes in Shareholder's Equity | ' | ||||||||||||
The changes in shareholders’ equity for the nine months ended September 27, 2014 are summarized as follows as adjusted to reflect the impact of the one-for-five distribution of Class B Stock as discussed in Note 10: | |||||||||||||
Number of Shares | |||||||||||||
(Dollars and Shares in thousands) | Amount | Common | Convertible | ||||||||||
Stock | Class B Stock | ||||||||||||
Shares Authorized | 40,000 | 10,000 | |||||||||||
Share Par Value | $ | 0.01 | $ | 0.01 | |||||||||
COMMON STOCK | |||||||||||||
Beginning of Period | $ | 214 | 13,268 | 8,221 | |||||||||
Conversion of Class B Shares to Common Shares | — | 1,261 | (1,261 | ) | |||||||||
Exercise of Stock Options | 4 | 166 | 133 | ||||||||||
End of Period | $ | 218 | 14,695 | 7,093 | |||||||||
ADDITIONAL PAID IN CAPITAL | |||||||||||||
Beginning of Period | $ | 40,791 | |||||||||||
Stock Compensation Expense | 1,304 | ||||||||||||
Exercise of Stock Options | 3,365 | ||||||||||||
End of Period | $ | 45,460 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Beginning of Period | $ | (3,611 | ) | ||||||||||
Foreign Currency Translation Adjustment | (2,943 | ) | |||||||||||
Change in Accumulated (Loss) Income on Derivatives – Net of Tax | 19 | ||||||||||||
Retirement Liability Adjustment – Net of Tax | 318 | ||||||||||||
End of Period | $ | (6,217 | ) | ||||||||||
RETAINED EARNINGS | |||||||||||||
Beginning of Period | $ | 134,115 | |||||||||||
Cash Paid in Lieu of Fractional Shares from Stock Distribution | (38 | ) | |||||||||||
Net Income | 37,731 | ||||||||||||
End of Period | $ | 171,808 | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||||
Beginning of Period | $ | 171,509 | |||||||||||
End of Period | $ | 211,269 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of Basic and Diluted Weighted-Average Shares Outstanding | ' | ||||||||||||||||
Basic and diluted weighted-average shares outstanding are as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares – Basic | 21,661 | 20,905 | 21,749 | 20,948 | |||||||||||||
Net effect of dilutive stock options | 997 | 1,015 | 928 | 1,113 | |||||||||||||
Weighted average shares – Diluted | 22,658 | 21,920 | 22,677 | 22,061 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss and Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The components of accumulated other comprehensive income (loss) are as follows: | |||||||||||||||||
(In thousands) | September 27, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign Currency Translation Adjustments | $ | (1,659 | ) | $ | 1,284 | ||||||||||||
Accumulated (Loss) Income on Derivatives – Before Tax | (77 | ) | (107 | ) | |||||||||||||
Tax Benefit | 27 | 38 | |||||||||||||||
Accumulated (Loss) Income on Derivatives – After Tax | (50 | ) | (69 | ) | |||||||||||||
Retirement Liability Adjustment – Before Tax | (6,935 | ) | (7,423 | ) | |||||||||||||
Tax Benefit | 2,427 | 2,597 | |||||||||||||||
Retirement Liability Adjustment – After Tax | (4,508 | ) | (4,826 | ) | |||||||||||||
Accumulated Other Comprehensive Loss | $ | (6,217 | ) | $ | (3,611 | ) | |||||||||||
Components of Other Comprehensive (Loss) Income | ' | ||||||||||||||||
The components of other comprehensive (loss) income are as follows: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign Currency Translation Adjustments | $ | (2,943 | ) | $ | (260 | ) | $ | (2,375 | ) | $ | 129 | ||||||
Change in Accumulated (Loss) Income on Derivatives: | |||||||||||||||||
Reclassification to Interest Expense | 45 | 90 | 11 | 20 | |||||||||||||
Net (Decrease) Increase in Fair Value of Derivatives | (15 | ) | 11 | 31 | 22 | ||||||||||||
Tax Benefit (Expense) | (11 | ) | (36 | ) | (15 | ) | (15 | ) | |||||||||
Change in Accumulated (Loss) Income on Derivatives | 19 | 65 | 27 | 27 | |||||||||||||
Retirement Liability Adjustments: | |||||||||||||||||
Reclassifications to General and Administrative Expense: | |||||||||||||||||
Amortization of prior service cost | 408 | 388 | 136 | 127 | |||||||||||||
Amortization of net actuarial losses | 80 | 95 | 27 | 32 | |||||||||||||
Tax Benefit | (170 | ) | (167 | ) | (53 | ) | (54 | ) | |||||||||
Retirement Liability Adjustment | 318 | 316 | 110 | 105 | |||||||||||||
Other Comprehensive (Loss) Income | $ | (2,606 | ) | $ | 121 | $ | (2,238 | ) | $ | 261 | |||||||
Supplemental_Retirement_Plan_a1
Supplemental Retirement Plan and Related Post Retirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
SERP [Member] | ' | ||||||||||||||||
Summarizes the Components of Net Periodic Cost | ' | ||||||||||||||||
The following table sets forth information regarding the net periodic pension cost for the plans. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 187 | $ | 222 | $ | 62 | $ | 74 | |||||||||
Interest cost | 565 | 465 | 188 | 155 | |||||||||||||
Amortization of prior service cost | 390 | 370 | 130 | 121 | |||||||||||||
Amortization of net actuarial losses | 80 | 95 | 27 | 32 | |||||||||||||
Net periodic cost | $ | 1,222 | $ | 1,152 | $ | 407 | $ | 382 | |||||||||
SERP Medical [Member] | ' | ||||||||||||||||
Summarizes the Components of Net Periodic Cost | ' | ||||||||||||||||
The following table sets forth information regarding the net periodic cost recognized for those benefits: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 1 | $ | 1 | |||||||||
Interest cost | 24 | 18 | 8 | 6 | |||||||||||||
Amortization of prior service cost | 18 | 18 | 6 | 6 | |||||||||||||
Net periodic cost | $ | 45 | $ | 39 | $ | 15 | $ | 13 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Summary of Segment Reporting Information | ' | ||||||||||||||||
Below are the sales and operating profit by segment for the three and nine months ended September 27, 2014 and September 28, 2013 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. | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(Dollars in thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Sales | |||||||||||||||||
Aerospace | $ | 366,128 | $ | 227,870 | $ | 122,233 | $ | 87,525 | |||||||||
Test Systems | 129,065 | 7,207 | 57,209 | 2,660 | |||||||||||||
Less Intersegment Sales | (237 | ) | (596 | ) | — | (504 | ) | ||||||||||
128,828 | 6,611 | 57,209 | 2,156 | ||||||||||||||
Total Consolidated Sales | $ | 494,956 | $ | 234,481 | $ | 179,442 | $ | 89,681 | |||||||||
Operating Profit (Loss) and Margins | |||||||||||||||||
Aerospace | $ | 60,308 | $ | 41,112 | $ | 22,057 | $ | 15,377 | |||||||||
16.5 | % | 18 | % | 18 | % | 17.6 | % | ||||||||||
Test Systems | 8,034 | (2,880 | ) | 5,699 | (745 | ) | |||||||||||
6.2 | % | (40.0 | )% | 10 | % | (28.0 | )% | ||||||||||
Total Operating Profit | 68,342 | 38,232 | 27,756 | 14,632 | |||||||||||||
13.8 | % | 16.3 | % | 15.5 | % | 16.3 | % | ||||||||||
Deductions from Operating Profit | |||||||||||||||||
Interest Expense, net of interest income | 7,183 | 2,085 | 2,301 | 1,605 | |||||||||||||
Corporate Expenses and Other | 6,463 | 6,838 | 1,985 | 2,280 | |||||||||||||
Income Before Income Taxes | $ | 54,696 | $ | 29,309 | $ | 23,470 | $ | 10,747 | |||||||||
Identifiable Assets | |||||||||||||||||
(In thousands) | September 27, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Aerospace | $ | 454,322 | $ | 428,619 | |||||||||||||
Test Systems | 114,551 | 11,035 | |||||||||||||||
Corporate | 22,034 | 51,617 | |||||||||||||||
Total Assets | $ | 590,907 | $ | 491,271 | |||||||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Financial Assets and Liabilities Carried at Fair Value Measured on 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. The following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of September 27, 2014 and December 31, 2013: | |||||||||||||||||||
(In thousands) | Classification | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Interest rate swaps | |||||||||||||||||||
September 27, 2014 | Current Liabilities | $ | (77 | ) | $ | — | $ | (77 | ) | $ | — | ||||||||
December 31, 2013 | Other Liabilities | (107 | ) | — | (107 | ) | — | ||||||||||||
Acquisition contingent consideration | |||||||||||||||||||
September 27, 2014 | Current Liabilities | $ | (2,280 | ) | $ | — | $ | — | $ | (2,280 | ) | ||||||||
December 31, 2013 | Current Liabilities | (137 | ) | — | — | (137 | ) | ||||||||||||
September 27, 2014 | Other Liabilities | $ | (3,784 | ) | $ | — | $ | — | $ | (3,784 | ) | ||||||||
December 31, 2013 | Other Liabilities | (5,709 | ) | — | — | (5,709 | ) | ||||||||||||
Calculation of Additional Purchase Consideration (Earn Out) | ' | ||||||||||||||||||
The calculation of additional purchase consideration (“Earn Out”) related to the acquisition of AeroSat is as follows: | |||||||||||||||||||
AeroSat Revenue | Earn Out Formula | ||||||||||||||||||
2014 | <$30 million | No Earn Out | |||||||||||||||||
>$30 million < $50 million | (AeroSat Revenue X 15%) x ((AeroSat Revenue-$30 million)/$20 million) | ||||||||||||||||||
>$50 million | AeroSat Revenue X 15% | ||||||||||||||||||
2015 | <$40 million | No Earn Out | |||||||||||||||||
>$40 million < $60 million | (AeroSat Revenue X 15%) x ((AeroSat Revenue-$40 million)/$20 million) | ||||||||||||||||||
>$60 million | AeroSat Revenue X 15% |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Activity in AOCI Related to Derivatives | ' | ||||||||||||||||
Activity in AOCI related to these derivatives is summarized below: | |||||||||||||||||
Nine Months Ended | Three Months Ended | ||||||||||||||||
(In thousands) | Sept. 27, | Sept. 28, | Sept. 27, | Sept. 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Derivative balance at the beginning of the period in AOCI | $ | (69 | ) | $ | (142 | ) | $ | (77 | ) | $ | (104 | ) | |||||
Net deferral in AOCI of derivatives: | |||||||||||||||||
Net (decrease) increase in fair value of derivatives | (15 | ) | 11 | 31 | 22 | ||||||||||||
Tax effect | 4 | (4 | ) | (12 | ) | (8 | ) | ||||||||||
(11 | ) | 7 | 19 | 14 | |||||||||||||
Net reclassification from AOCI into earnings: | |||||||||||||||||
Reclassification from AOCI into earnings – interest expense | 45 | 90 | 11 | 20 | |||||||||||||
Tax effect | (15 | ) | (32 | ) | (3 | ) | (7 | ) | |||||||||
30 | 58 | 8 | 13 | ||||||||||||||
Net change in derivatives for the period | 19 | 65 | 27 | 27 | |||||||||||||
Derivative balance at the end of the period in AOCI | $ | (50 | ) | $ | (77 | ) | $ | (50 | ) | $ | (77 | ) | |||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Contract | ||||
Segment | ||||
Location | ||||
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Reportable segments | ' | ' | 2 | ' |
Number of Primary locations | ' | ' | 12 | ' |
Significant contracts with right of return | ' | ' | 0 | ' |
Contractual life of service | ' | ' | '24 months | ' |
Research and development, design and related engineering | $19.10 | $12.40 | $57.10 | $38.60 |
Test Systems [Member] | ' | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of revenue recognized from long term fixed price contracts | 1.00% | 62.00% | 1.00% | 40.00% |
United States [Member] | ' | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of Primary locations | ' | ' | 10 | ' |
Canada [Member] | ' | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of Primary locations | ' | ' | 1 | ' |
France [Member] | ' | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' | ' |
Number of Primary locations | ' | ' | 1 | ' |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished Goods | $27,028 | $21,627 |
Work in Progress | 39,761 | 15,017 |
Raw Material | 59,775 | 48,625 |
Inventory, Net | $126,564 | $85,269 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $156,359 | $108,189 |
Less Accumulated Depreciation | 44,997 | 37,289 |
Property, Plant and Equipment Net | 111,362 | 70,900 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 10,061 | 6,742 |
Buildings and Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 59,485 | 45,551 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 70,858 | 54,369 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $15,955 | $1,527 |
Intangible_Assets_Summary_of_A
Intangible Assets - Summary of Acquired Intangible Assets (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Life | '9 years | ' |
Gross Carrying Amount | $119,219 | $113,974 |
Accumulated Amortization | 23,934 | 11,273 |
Patents [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Life | '7 years | ' |
Gross Carrying Amount | 2,146 | 2,146 |
Accumulated Amortization | 1,031 | 891 |
Trade Names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Life | '9 years | ' |
Gross Carrying Amount | 8,344 | 7,453 |
Accumulated Amortization | 1,104 | 552 |
Completed and Unpatented Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Life | '7 years | ' |
Gross Carrying Amount | 16,958 | 15,377 |
Accumulated Amortization | 3,743 | 2,620 |
Backlog and Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Life | '11 years | ' |
Gross Carrying Amount | 91,771 | 88,998 |
Accumulated Amortization | $18,056 | $7,210 |
Intangible_Assets_Summary_of_A1
Intangible Assets - Summary of Amortization Expense for Acquired Intangibles (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization Expense | $7,769 | $1,494 | $12,673 | $2,429 |
Intangible_Assets_Summary_of_A2
Intangible Assets - Summary of Amortization Expense for Intangible Assets for Each of Next Five Years (Detail) (USD $) | Sep. 27, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Expected amortization expense, 2014 | $15,651 |
Expected amortization expense, 2015 | 8,554 |
Expected amortization expense, 2016 | 8,092 |
Expected amortization expense, 2017 | 7,677 |
Expected amortization expense, 2018 | 7,585 |
Expected amortization expense, 2019 | $7,433 |
Goodwill_Summary_of_Changes_in
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2014 |
Goodwill [Line Items] | ' |
Beginning balance | $100,998 |
Acquisition | 512 |
Foreign Currency Translation | -968 |
Ending balance | 100,542 |
Aerospace [Member] | ' |
Goodwill [Line Items] | ' |
Beginning balance | 100,998 |
Acquisition | 512 |
Foreign Currency Translation | -968 |
Ending balance | 100,542 |
Test Systems [Member] | ' |
Goodwill [Line Items] | ' |
Ending balance | $0 |
LongTerm_Debt_and_Note_Payable
Long-Term Debt and Note Payable - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended |
Sep. 26, 2014 | Sep. 27, 2014 | |
Debt Instrument [Line Items] | ' | ' |
Revolving credit facility remaining | ' | 154,800,000 |
Outstanding letters of credit | ' | 8,700,000 |
Principal payment of term loan | ' | 10,200,000 |
Industrial Revenue Bond [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Optional redemption in industrial revenue bonds | ' | 7,900,000 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility Outstanding | ' | 186,500,000 |
Letter of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Credit facility allocated | ' | 20,000,000 |
Amended and Restated Credit Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term loan outstanding amount | 180,500,000 | ' |
Credit facility Outstanding | 6,000,000 | ' |
Replacement of original facility | 350,000,000 | ' |
Line of credit facility increase amount | $150,000,000 | ' |
Maturity date of loans | 26-Sep-19 | ' |
Debt instrument description | ' | 'Covenants in the Agreement have been modified to where the maximum permitted leverage ratio of funded debt to EBITDA (as defined in the agreement) is 3.5 to 1, increasing to 4.0 to 1 for up to two fiscal quarters following the closing of an acquisition permitted under the Agreement. |
Covenants permitted leverage ratio | ' | 3.5 |
Libor rate description | ' | 'Libor plus between 137.5 basis points and 225 basis points based upon the Company's leverage ratio. |
Minimum interest coverage ratio | ' | 3 |
Amended and Restated Credit Agreement [Member] | Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Covenants permitted leverage ratio | ' | 4 |
Line of Credit Facility, Commitment Fee | ' | 0.35% |
Amended and Restated Credit Agreement [Member] | Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Line of Credit Facility, Commitment Fee | ' | 0.18% |
LongTerm_Debt_and_Note_Payable1
Long-Term Debt and Note Payable - Principal Maturities of Long-Term Debt (Detail) (USD $) | Sep. 27, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $8,294 |
2015 | 2,698 |
2016 | 2,798 |
2017 | 2,733 |
2018 | 2,729 |
2019 | 188,407 |
Thereafter | 4,984 |
Total Long-term Debt | $212,643 |
Product_Warranties_Additional_
Product Warranties - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2014 | |
Guarantees [Abstract] | ' |
Product warranty period | 'The Company warrants its products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. |
Product_Warranties_Summary_of_
Product Warranties - Summary of Activity in Warranty Accrual (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Guarantees [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $3,925 | $2,584 | $2,796 | $2,551 |
Acquisitions | -226 | ' | 564 | ' |
Warranties issued | 1,966 | 23 | 2,842 | 356 |
Warranties settled | -520 | -202 | -1,323 | -618 |
Reassessed warranty exposure | 5 | -249 | 271 | -133 |
Balance at end of period | $5,150 | $2,156 | $5,150 | $2,156 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 31, 2013 |
Income Tax [Line Items] | ' | ' | ' | ' | ' |
Penalties or interest liability accrued | $0 | ' | $0 | ' | $0 |
Penalty or interest expense | 0 | 0 | 0 | 0 | ' |
Effective tax rate | 27.20% | 33.40% | 31.00% | 28.80% | ' |
Research and Development Tax Credit [Member] | ' | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' | ' |
R&D tax credits | 0.9 | ' | 0.9 | ' | ' |
2012 R and D Tax Credits [Member] | Research and Development Tax Credit [Member] | ' | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' | ' |
R&D tax credits | ' | 1.1 | ' | 1.1 | ' |
2013 R and D Tax Credits [Member] | ' | ' | ' | ' | ' |
Income Tax [Line Items] | ' | ' | ' | ' | ' |
R&D tax credits | ' | $0.20 | ' | $0.60 | ' |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) (Convertible Class B Stock [Member]) | 9 Months Ended |
Sep. 27, 2014 | |
Convertible Class B Stock [Member] | ' |
Shareholders Equity [Line Items] | ' |
Stock distribution | 'One-for-five |
Shareholders_Equity_Summary_of
Shareholder's Equity - Summary of Changes in Shareholder's Equity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Beginning of Period | ' | ' | $171,509 | ' |
Foreign Currency Translation Adjustment | -2,375 | 129 | -2,943 | -260 |
Stock Compensation Expense | ' | ' | -1,304 | -1,048 |
Change in Accumulated (Loss) Income on Derivatives - Net of Tax | 27 | 27 | 19 | 65 |
Net Income | 17,080 | 7,155 | 37,731 | 20,877 |
Retirement Liability Adjustment - net of tax | 110 | 105 | 318 | 316 |
End of Period | 211,269 | ' | 211,269 | ' |
Convertible Class B Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Shares Authorized | 10,000,000 | ' | 10,000,000 | ' |
Share Par Value | $0.01 | ' | $0.01 | ' |
Beginning of Period | ' | ' | 8,221,000 | ' |
Conversion of Class B Shares to Common Shares | ' | ' | -1,261,000 | ' |
Exercise of Stock Options | ' | ' | 133,000 | ' |
End of Period | 7,093,000 | ' | 7,093,000 | ' |
Common Stock [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Beginning of Period | ' | ' | 214 | ' |
Conversion of Class B Shares to Common Shares | ' | ' | ' | ' |
Exercise of Stock Options | ' | ' | 4 | ' |
End of Period | 218 | ' | 218 | ' |
Shares Authorized | 40,000,000 | ' | 40,000,000 | ' |
Share Par Value | $0.01 | ' | $0.01 | ' |
Beginning of Period | ' | ' | 13,268,000 | ' |
Conversion of Class B Shares to Common Shares | ' | ' | 1,261,000 | ' |
Exercise of Stock Options | ' | ' | 166,000 | ' |
End of Period | 14,695,000 | ' | 14,695,000 | ' |
Additional Paid in Capital [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Beginning of Period | ' | ' | 40,791 | ' |
Stock Compensation Expense | ' | ' | 1,304 | ' |
Exercise of Stock Options | ' | ' | 3,365 | ' |
End of Period | 45,460 | ' | 45,460 | ' |
Accumulated Comprehensive Loss [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Beginning of Period | ' | ' | -3,611 | ' |
Foreign Currency Translation Adjustment | ' | ' | -2,943 | ' |
Change in Accumulated (Loss) Income on Derivatives - Net of Tax | ' | ' | 19 | ' |
Retirement Liability Adjustment - net of tax | ' | ' | 318 | ' |
End of Period | -6,217 | ' | -6,217 | ' |
Retained Earnings [Member] | ' | ' | ' | ' |
Shareholders Equity [Line Items] | ' | ' | ' | ' |
Beginning of Period | ' | ' | 134,115 | ' |
Cash Paid in Lieu of Fractional Shares from Stock Distribution | ' | ' | -38 | ' |
Net Income | ' | ' | 37,731 | ' |
End of Period | $171,808 | ' | $171,808 | ' |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Basic and Diluted Weighted-Average Shares Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average shares - Basic | 21,749 | 20,948 | 21,661 | 20,905 |
Net effect of dilutive stock options | 928 | 1,113 | 997 | 1,015 |
Weighted average shares - Diluted | 22,677 | 22,061 | 22,658 | 21,920 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2014 | |
Earnings Per Share [Line Items] | ' |
Date of payment of dividend to shareholders | 5-Sep-14 |
Convertible Class B Stock [Member] | ' |
Earnings Per Share [Line Items] | ' |
Stock distribution | 'One-for-five |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss and Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 | Dec. 31, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Foreign Currency Translation Adjustments | ($1,659) | ' | $1,284 | ' | ' | ' |
Accumulated (Loss) Income on Derivatives - Before Tax | -77 | ' | -107 | ' | ' | ' |
Tax Benefit | 27 | ' | 38 | ' | ' | ' |
Accumulated (Loss) Income on Derivatives - After Tax | -50 | -77 | -69 | -77 | -104 | -142 |
Retirement Liability Adjustment - Before Tax | -6,935 | ' | -7,423 | ' | ' | ' |
Tax Benefit | 2,427 | ' | 2,597 | ' | ' | ' |
Retirement Liability Adjustment - After Tax | -4,508 | ' | -4,826 | ' | ' | ' |
Accumulated Other Comprehensive Loss | ($6,217) | ' | ($3,611) | ' | ' | ' |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss and Other Comprehensive Loss - Components of Other Comprehensive (Loss) Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation Adjustments | ($2,375) | $129 | ($2,943) | ($260) |
Reclassification to Interest Expense | 11 | 20 | 45 | 90 |
Net (Decrease) Increase in Fair Value of Derivatives | 31 | 22 | -15 | 11 |
Tax Benefit (Expense) | -15 | -15 | -11 | -36 |
Change in Accumulated (Loss) Income on Derivatives | 27 | 27 | 19 | 65 |
Amortization of prior service cost | 136 | 127 | 408 | 388 |
Amortization of net actuarial losses | 27 | 32 | 80 | 95 |
Tax Benefit | -53 | -54 | -170 | -167 |
Retirement Liability Adjustment | 110 | 105 | 318 | 316 |
Other Comprehensive (Loss) Income | ($2,238) | $261 | ($2,606) | $121 |
Supplemental_Retirement_Plan_a2
Supplemental Retirement Plan and Related Post Retirement Benefits - Additional Information (Detail) | 9 Months Ended |
Sep. 27, 2014 | |
RetirementPlans | |
Compensation and Retirement Disclosure [Abstract] | ' |
Number of non-qualified supplemental retirement defined benefit plans | 2 |
Supplemental_Retirement_Plan_a3
Supplemental Retirement Plan and Related Post Retirement Benefits - Summarizes the Components of Net Periodic Cost (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
SERP [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $62 | $74 | $187 | $222 |
Interest cost | 188 | 155 | 565 | 465 |
Amortization of prior service cost | 130 | 121 | 390 | 370 |
Amortization of net actuarial losses | 27 | 32 | 80 | 95 |
Net periodic cost | 407 | 382 | 1,222 | 1,152 |
SERP Medical [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 8 | 6 | 24 | 18 |
Amortization of prior service cost | 6 | 6 | 18 | 18 |
Net periodic cost | $15 | $13 | $45 | $39 |
Sales_to_Major_Customers_Addit
Sales to Major Customers - Additional Information (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 | Sep. 28, 2013 |
Customer | Aerospace Segment [Member] | Aerospace Segment [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | Sales Revenue, Net [Member] | |
Customer | Customer | Aerospace and Test Systems Segment [Member] | Aerospace and Test Systems Segment [Member] | Aerospace and Test Systems Segment [Member] | Aerospace and Test Systems Segment [Member] | Aerospace and Test Systems Segment [Member] | Aerospace and Test Systems Segment [Member] | Aerospace Segment [Member] | Aerospace Segment [Member] | Aerospace Segment [Member] | Aerospace Segment [Member] | |||
Major Customer One [Member] | Major Customer One [Member] | Major Customer Two [Member] | Major Customer Two [Member] | Major Customer Three [Member] | Major Customer Three [Member] | Major Customer One [Member] | Major Customer One [Member] | Major Customer Two [Member] | Major Customer Two [Member] | |||||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major customers | 3 | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of consolidated revenue | ' | ' | ' | 10.00% | 25.00% | 20.00% | 17.00% | 17.00% | 13.00% | 14.00% | 28.00% | 30.00% | 20.00% | 12.00% |
Accounts receivable from major customers | $57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Summary_of
Segment Information - Summary of Segment Reporting Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales | $179,442 | $89,681 | $494,956 | $234,481 | ' |
Operating Profit (Loss) and Margins | 25,771 | 12,352 | 61,879 | 31,394 | ' |
Interest Expense, net of interest income | 2,301 | 1,605 | 7,183 | 2,085 | ' |
Income Before Income Taxes | 23,470 | 10,747 | 54,696 | 29,309 | ' |
Total Assets | 590,907 | ' | 590,907 | ' | 491,271 |
Test Systems [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales | 57,209 | 2,156 | 128,828 | 6,611 | ' |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Operating Profit (Loss) and Margins | 27,756 | 14,632 | 68,342 | 38,232 | ' |
Percentage of Operating Profit (Loss) and Margins | 15.50% | 16.30% | 13.80% | 16.30% | ' |
Operating Segments [Member] | Aerospace [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales | 122,233 | 87,525 | 366,128 | 227,870 | ' |
Operating Profit (Loss) and Margins | 22,057 | 15,377 | 60,308 | 41,112 | ' |
Percentage of Operating Profit (Loss) and Margins | 18.00% | 17.60% | 16.50% | 18.00% | ' |
Total Assets | 454,322 | ' | 454,322 | ' | 428,619 |
Operating Segments [Member] | Test Systems [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales | 57,209 | 2,660 | 129,065 | 7,207 | ' |
Operating Profit (Loss) and Margins | 5,699 | -745 | 8,034 | -2,880 | ' |
Percentage of Operating Profit (Loss) and Margins | 10.00% | -28.00% | 6.20% | -40.00% | ' |
Total Assets | 114,551 | ' | 114,551 | ' | 11,035 |
Intersegment Eliminations [Member] | Test Systems [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Sales | ' | -504 | -237 | -596 | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total Assets | 22,034 | ' | 22,034 | ' | 51,617 |
Segment Reconciling Items [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest Expense, net of interest income | 2,301 | 1,605 | 7,183 | 2,085 | ' |
Corporate Expenses and Other | $1,985 | $2,280 | $6,463 | $6,838 | ' |
Fair_Value_Financial_Assets_an
Fair Value - Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | ($77) | ' |
Acquisition contingent consideration | -2,280 | -137 |
Other Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | ' | -107 |
Acquisition contingent consideration | -3,784 | -5,709 |
Level 2 [Member] | Current Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | -77 | ' |
Level 2 [Member] | Other Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | ' | -107 |
Level 3 [Member] | Current Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | -2,280 | -137 |
Level 3 [Member] | Other Liabilities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Acquisition contingent consideration | ($3,784) | ($5,709) |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | Oct. 01, 2013 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
In Thousands, unless otherwise specified | AeroSat [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] |
Maximum [Member] | Revenue Recognition Milestone Method 2013 to 2015 [Member] | Revenue Recognition Milestone Method 2012 to 2016 [Member] | Revenue Recognition Milestone Method 2014 and 2015 [Member] | ||
Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Max-Viz, Inc. [Member] | Ballard [Member] | AeroSat [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' |
Contingent consideration on fair value liabilities | $5,000 | ' | $8,000 | $5,500 | $53,000 |
Fair value liabilities, description | ' | 'Our Level 3 fair value liabilities represent contingent consideration recorded related to the 2011 Ballard acquisition, to be paid up to a maximum of $5.5 million if annual revenue growth targets are met in the years 2012 - 2016, the 2012 Max-Viz acquisition, to be paid up to a maximum of $8.0 million if annual revenue targets are met in the years 2013 - 2015 and the 2013 AeroSat acquisition, to be paid up to a maximum of $53.0 million if annual revenue targets are met in the years 2014 and 2015 | ' | ' | ' |
Fair_Value_Calculation_of_Addi
Fair Value - Calculation of Additional Purchase Consideration (Earn Out) (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 27, 2014 |
Aero Sat Revenue Formula One [Member] | Fiscal Year Twenty Fourteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | $30 |
Aero Sat Revenue Formula One [Member] | Fiscal Year Twenty Fifteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | 40 |
Aero Sat Revenue Formula Two [Member] | Fiscal Year Twenty Fourteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | 30 |
AeroSat Revenue | 50 |
Earn out multiplier, percentage | 15.00% |
Earn out formula adjustment, amount | 30 |
Earn out formula denominator, amount | 20 |
Aero Sat Revenue Formula Two [Member] | Fiscal Year Twenty Fifteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | 40 |
AeroSat Revenue | 60 |
Earn out multiplier, percentage | 15.00% |
Earn out formula adjustment, amount | 40 |
Earn out formula denominator, amount | 20 |
Aero Sat Revenue Formula Three [Member] | Fiscal Year Twenty Fourteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | 50 |
Earn out multiplier, percentage | 15.00% |
Aero Sat Revenue Formula Three [Member] | Fiscal Year Twenty Fifteen [Member] | ' |
Earnout Payments Payable [Line Items] | ' |
AeroSat Revenue | $60 |
Earn out multiplier, percentage | 15.00% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 27, 2014 | Dec. 31, 2013 | |
Swap | ||
Industrial Revenue Bond [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Notional amount of interest rate swap | $1,500,000 | ' |
Number of interest rate swap | 1 | ' |
Interest of interest rate swap | 3.99% | ' |
Derivative, date inception | 6-Feb-06 | ' |
Derivative, date maturity | 1-Feb-16 | ' |
Fair value of interest rate derivative liabilities | $100,000 | $100,000 |
Term Note [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Derivative, date inception | 19-Mar-09 | ' |
Derivative, date issued | 30-Jan-09 | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Summary of Activity in AOCI Related to Derivatives (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Derivative balance at the beginning of the period in AOCI | ($77) | ($104) | ($69) | ($142) |
Net deferral in AOCI of derivatives: | ' | ' | ' | ' |
Net (Decrease) Increase in Fair Value of Derivatives | 31 | 22 | -15 | 11 |
Tax effect | -12 | -8 | 4 | -4 |
Net Deferral in AOCI of Derivatives | 19 | 14 | -11 | 7 |
Net reclassification from AOCI into earnings: | ' | ' | ' | ' |
Reclassification from AOCI into earnings - interest expense | 11 | 20 | 45 | 90 |
Tax effect | -3 | -7 | -15 | -32 |
Net reclassification from AOCI into earnings | 8 | 13 | 30 | 58 |
Change in Accumulated (Loss) Income on Derivatives | 27 | 27 | 19 | 65 |
Derivative balance at the end of the period in AOCI | ($50) | ($77) | ($50) | ($77) |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 0 Months Ended | ||||
Jan. 20, 2014 | Oct. 01, 2013 | Oct. 01, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Jul. 18, 2013 | |
Astronics Test Systems [Member] | AeroSat [Member] | AeroSat [Member] | PGA electronic S.A. | PGA electronic S.A. | Peco, Inc [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Business acquisition purchase price paid in cash | $69,400,000 | $12,500,000 | ' | $9,100,000 | ' | ' |
Net working capital adjustment | 16,400,000 | ' | ' | ' | ' | ' |
Percentage of acquired stock | ' | ' | ' | ' | 100.00% | 100.00% |
Business acquisition purchase price | ' | ' | ' | ' | 31,300,000 | ' |
Business acquisition purchase price paid with share | ' | ' | ' | ' | $264,168 | ' |
Stock valued at per share | ' | ' | ' | ' | $51 | ' |
Additional Purchase consideration | ' | ' | 53,000,000 | ' | ' | ' |
Contingent purchase consideration | ' | ' | 5,000,000 | ' | ' | ' |
Goodwill and purchased intangible assets deductible for tax purposes period | ' | '15 years | ' | ' | ' | ' |
Purchase outstanding stock in cash | ' | ' | ' | ' | ' | $136,000,000 |
Acquisitions_Preliminary_Alloc
Acquisitions - Preliminary Allocation of Purchase Price Based on Appraised Fair Values (Detail) (USD $) | Sep. 27, 2014 | Dec. 31, 2013 | Dec. 05, 2013 | Oct. 01, 2013 | Sep. 27, 2014 |
In Thousands, unless otherwise specified | PGA electronic S.A. | AeroSat [Member] | Astronics Test Systems [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash | ' | ' | $8,699 | ' | ' |
Accounts Receivable | ' | ' | 9,015 | 1,712 | 10,593 |
Inventory | ' | ' | 12,542 | 4,009 | 59,013 |
Other Current Assets | ' | ' | 1,429 | ' | 677 |
Prepaid Deposits | ' | ' | ' | 687 | ' |
Fixed Assets | ' | ' | 10,741 | 448 | 19,425 |
Purchased Intangible Assets | ' | ' | 5,592 | 13,800 | 7,103 |
Goodwill | 100,542 | 100,998 | 7,440 | 1,610 | ' |
Other Assets | ' | ' | 74 | 65 | ' |
Current Portion of Long Term Debt | ' | ' | -1,672 | ' | -1,124 |
Accounts Payable | ' | ' | -6,179 | -286 | -10,777 |
Accrued Expenses and Other Current Liabilities | ' | ' | -3,387 | -543 | -3,489 |
Customer Deposits | ' | ' | -4,601 | -4,048 | ' |
Long Term Debt | ' | ' | -5,115 | ' | -11,976 |
Other Long term Liabilities | ' | ' | -3,315 | ' | ' |
Total Purchase Price | ' | ' | $31,263 | $17,454 | $69,445 |
Acquisitions_Amounts_Allocated
Acquisitions - Amounts Allocated to Purchased Intangible Assets (Detail) (USD $) | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Dec. 05, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 | Oct. 01, 2013 |
In Thousands, unless otherwise specified | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | PGA electronic S.A. | AeroSat [Member] | AeroSat [Member] | AeroSat [Member] | AeroSat [Member] | AeroSat [Member] | AeroSat [Member] | AeroSat [Member] |
Trademark [Member] | Trademark [Member] | Technology [Member] | Backlog and Customer Relationships [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Trademark [Member] | Trademark [Member] | Technology [Member] | Technology [Member] | Backlog and Customer Relationships [Member] | Backlog and Customer Relationships [Member] | |||
Technology [Member] | Backlog and Customer Relationships [Member] | Technology [Member] | Backlog and Customer Relationships [Member] | |||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Life | ' | '15 years | ' | ' | ' | '5 years | '16 years | '10 years | '19 years | ' | '10 years | ' | '10 years | ' | '12 years | ' |
Acquisition Fair Value | $5,592 | ' | $955 | $1,637 | $3,000 | ' | ' | ' | ' | $13,800 | ' | $800 | ' | $5,300 | ' | $7,700 |
Acquisitions_Consolidated_Resu
Acquisitions - Consolidated Results of Operation of Company with Acquired Business (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Sep. 27, 2014 | Sep. 28, 2013 |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Sales | $179,442 | $89,681 | $494,956 | $234,481 |
Net Income | 17,080 | 7,155 | 37,731 | 20,877 |
Basic earnings per share | $0.79 | $0.34 | $1.74 | $1 |
Diluted earnings per share | $0.75 | $0.32 | $1.67 | $0.95 |
Peco, Inc [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Sales | ' | 93,517 | ' | 280,714 |
Net Income | ' | 7,230 | ' | 23,034 |
Basic earnings per share | ' | $0.35 | ' | $1.10 |
Diluted earnings per share | ' | $0.33 | ' | $1.05 |
Sales | 179,442 | 93,517 | 494,956 | 280,714 |
Net Income | $17,080 | $7,230 | $37,731 | $23,034 |
Basic earnings per share | $0.79 | $0.35 | $1.74 | $1.10 |
Diluted earnings per share | $0.75 | $0.33 | $1.67 | $1.05 |