Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Apr. 04, 2015 | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 4-Apr-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | ATRO |
Entity Registrant Name | ASTRONICS CORP |
Entity Central Index Key | 8063 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 22,079,482 |
Common Class Undefined [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 17,087,180 |
Convertible Class B Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,992,302 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets: | ||
Cash and Cash Equivalents | $22,563 | $21,197 |
Accounts Receivable, Net of Allowance for Doubtful Accounts | 76,346 | 88,888 |
Inventories | 120,784 | 115,053 |
Prepaid Expenses and Other Current Assets | 17,628 | 20,680 |
Total Current Assets | 237,321 | 245,818 |
Property, Plant and Equipment, Net of Accumulated Depreciation | 124,917 | 116,316 |
Other Assets | 6,382 | 5,632 |
Intangible Assets, Net of Accumulated Amortization | 112,033 | 94,991 |
Goodwill | 119,630 | 100,153 |
Total Assets | 600,283 | 562,910 |
Current Liabilities: | ||
Current Maturities of Long-term Debt | 2,658 | 2,796 |
Accounts Payable | 34,875 | 27,903 |
Accrued Expenses and Other Current Liabilities | 31,063 | 33,465 |
Customer Advance Payments and Deferred Revenue | 37,039 | 45,052 |
Total Current Liabilities | 105,635 | 109,216 |
Long-term Debt | 214,099 | 180,212 |
Other Liabilities | 43,558 | 45,305 |
Total Liabilities | 363,292 | 334,733 |
Shareholders' Equity: | ||
Common Stock | 221 | 219 |
Accumulated Other Comprehensive Loss | -15,434 | -11,949 |
Other Shareholders' Equity | 252,204 | 239,907 |
Total Shareholders' Equity | 236,991 | 228,177 |
Total Liabilities and Shareholders' Equity | $600,283 | $562,910 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Income Statement [Abstract] | ||
Sales | $161,638 | $140,951 |
Cost of Products Sold | 121,476 | 110,946 |
Gross Profit | 40,162 | 30,005 |
Selling, General and Administrative Expenses | 22,619 | 16,378 |
Income from Operations | 17,543 | 13,627 |
Interest Expense, Net of Interest Income | 1,246 | 2,323 |
Income Before Income Taxes | 16,297 | 11,304 |
Provision for Income Taxes | 5,614 | 3,797 |
Net Income | $10,683 | $7,507 |
Earnings per share: | ||
Basic | $0.49 | $0.35 |
Diluted | $0.47 | $0.33 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $10,683 | $7,507 |
Other Comprehensive Loss: | ||
Foreign Currency Translation Adjustments | -3,646 | -386 |
Change in Accumulated Income on Derivatives - Net of Tax | 20 | |
Retirement Liability Adjustment - Net of Tax | 161 | 102 |
Other Comprehensive Loss | -3,485 | -264 |
Comprehensive Income | $7,198 | $7,243 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Cash Flows From Operating Activities: | ||
Net Income | $10,683 | $7,507 |
Adjustments to Reconcile Net Income to Cash Provided By Operating Activities: | ||
Depreciation and Amortization | 6,127 | 4,838 |
Provisions for Non-Cash Losses on Inventory and Receivables | -74 | 312 |
Stock Compensation Expense | 506 | 394 |
Deferred Tax Benefit | -40 | -816 |
Other | 110 | -879 |
Cash Flows from Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | 18,563 | -37,632 |
Inventories | -3,474 | 8,699 |
Accounts Payable | 5,517 | 9,520 |
Accrued Expenses | -4,535 | -1,275 |
Other Current Assets and Liabilities | -633 | -382 |
Customer Advanced Payments and Deferred Revenue | -8,796 | 9,203 |
Income Taxes | 2,416 | 2,776 |
Supplemental Retirement and Other Liabilities | 409 | 308 |
Cash Provided By Operating Activities | 26,779 | 2,573 |
Cash Flows From Investing Activities: | ||
Acquisition of Business, Net of Cash Acquired | -52,615 | -70,275 |
Capital Expenditures | -7,059 | -16,906 |
Other Investing Activities | -300 | |
Cash Used For Investing Activities | -59,974 | -87,181 |
Cash Flows From Financing Activities: | ||
Proceeds from Long-term Debt | 40,000 | 58,000 |
Payments for Long-term Debt | -5,663 | -405 |
Debt Acquisition Costs | -280 | |
Acquisition Earnout Payments | -53 | |
Proceeds from Exercise of Stock Options | 402 | 588 |
Income Tax Benefit from Exercise of Stock Options | 708 | 1,261 |
Cash Provided By Financing Activities | 35,447 | 59,111 |
Effect of Exchange Rates on Cash | -886 | -21 |
Increase (Decrease) in Cash and Cash Equivalents | 1,366 | -25,518 |
Cash and Cash Equivalents at Beginning of Period | 21,197 | 54,635 |
Cash and Cash Equivalents at End of Period | $22,563 | $29,117 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Apr. 04, 2015 | |
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 month periods ended April 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
The balance sheet at December 31, 2014 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 2014 annual report on Form 10-K. | |
Description of the Business | |
Astronics Corporation (“Astronics” or the “Company”) is a leading supplier of products to the global aerospace, defense, electronics and semiconductor industries. Our products and services include advanced, high-performance electrical power generation & distribution systems, lighting & safety systems, avionics products, aircraft structures, engineering design and systems certification and automated test systems. | |
We have operations in the United States (“U.S.”), Canada and France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); 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”); PGA Electronic s.a. (“PGA”); Astronics Test Systems, Inc. (“ATS”) and Armstrong Aerospace, Inc. (“Armstrong”). | |
On January 14, 2015, the Company acquired 100% of the equity of Armstrong, located in Itasca, Illinois. Armstrong is a leading provider of engineering, design and systems certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. | |
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 automated test systems, subsystems and instruments for commercial electronics and semiconductor products to both the commercial and defense industries. ATS is included in our Test Systems segment. | |
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 $22.2 million and $17.2 million for the three months ended April 4, 2015 and March 29, 2014, respectively. Selling, general and administrative expenses include costs primarily related to our sales and marketing departments and administrative departments. Interest expense is shown net of interest income. Interest income was insignificant for the three months ended April 4, 2015 and March 29, 2014. | |
Derivatives | |
In November 2014, the Company terminated its interest rate swap. Ineffectiveness was not significant for the three month period ended March 29, 2014. The Company classified the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items. No derivative instruments were outstanding at or for the three month period ended April 4, 2015. | |
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 April 4, 2015 and March 29, 2014. | |
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 2015 | |
There have been no recent accounting pronouncements that have had an impact on the Company’s financial statements. |
Inventories
Inventories | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
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) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Finished Goods | $ | 33,021 | $ | 28,763 | |||||
Work in Progress | 25,134 | 28,488 | |||||||
Raw Material | 62,629 | 57,802 | |||||||
$ | 120,784 | $ | 115,053 | ||||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
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) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Land | $ | 11,258 | $ | 10,008 | |||||
Buildings and Improvements | 76,314 | 74,755 | |||||||
Machinery and Equipment | 79,126 | 73,062 | |||||||
Construction in Progress | 7,447 | 4,757 | |||||||
174,145 | 162,582 | ||||||||
Less Accumulated Depreciation | 49,228 | 46,266 | |||||||
$ | 124,917 | $ | 116,316 | ||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||
4) Intangible Assets | |||||||||||||||||||||
The following table summarizes acquired intangible assets as follows: | |||||||||||||||||||||
April 4, 2015 | December 31, 2014 | ||||||||||||||||||||
(In thousands) | Weighted | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | |||||||||||||||||
Patents | 6 Years | $ | 2,146 | $ | 1,124 | $ | 2,146 | $ | 1,077 | ||||||||||||
Trade Names | 9 Years | 8,217 | 1,472 | 8,304 | 1,288 | ||||||||||||||||
Completed and Unpatented Technology | 7 Years | 17,957 | 4,852 | 18,107 | 4,396 | ||||||||||||||||
Backlog and Customer Relationships | 12 Years | 113,539 | 22,378 | 93,448 | 20,253 | ||||||||||||||||
Total Intangible Assets | 8 Years | $ | 141,859 | $ | 29,826 | $ | 122,005 | $ | 27,014 | ||||||||||||
All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
(In thousands) | April 4, | March 29, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Amortization Expense | $ | 2,852 | $ | 2,467 | |||||||||||||||||
Amortization expense for intangible assets expected for 2015 and for each of the next five years is summarized as follows: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2015 | $ | 11,100 | |||||||||||||||||||
2016 | 10,710 | ||||||||||||||||||||
2017 | 10,293 | ||||||||||||||||||||
2018 | 9,980 | ||||||||||||||||||||
2019 | 9,579 | ||||||||||||||||||||
2020 | 9,524 |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill | 5) Goodwill | ||||||||||||||||
The following table summarizes the changes in the carrying amount of goodwill for 2015: | |||||||||||||||||
(In thousands) | December 31, | Acquisition | Foreign | April 4, | |||||||||||||
2014 | Currency | 2015 | |||||||||||||||
Translation | |||||||||||||||||
Aerospace | $ | 100,153 | $ | 20,325 | $ | (848 | ) | $ | 119,630 | ||||||||
Test Systems | — | — | — | — | |||||||||||||
$ | 100,153 | $ | 20,325 | $ | (848 | ) | $ | 119,630 | |||||||||
Longterm_Debt_and_Notes_Payabl
Long-term Debt and Notes Payable | 3 Months Ended |
Apr. 04, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Notes Payable | 6) Long-term Debt and Notes Payable |
The Company’s obligations under the Credit Agreement as amended are jointly and severally guaranteed by each domestic subsidiary of the Company other than a non-material subsidiary. The obligations are secured by a first priority lien on substantially all of the Company’s and the guarantors’ assets. | |
In connection with the funding of the acquisition of ATS, the Company amended its existing credit facility to exercise its option to increase the revolving credit commitment. The credit agreement provided for a $125 million, five-year revolving credit facility maturing on June 30, 2018, of which $58.0 million was drawn to finance the acquisition. In addition, the Company was required to pay a commitment fee quarterly at a rate of between 0.25% and 0.50% per annum on the unused portion of the total revolving credit commitment, based on the Company’s leverage ratio. | |
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 and $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. At April 4, 2015 there was $200.0 million outstanding on the revolving credit facility and there remains approximately $148.9 million available, net 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 April 4, 2015, outstanding letters of credit totaled $1.1 million. | |
Covenants in the Agreement have been modified to where the maximum permitted leverage ratio of funded debt to Adjusted 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 (Adjusted EBITDA to interest expense) of 3.0 to 1 for the term of the Agreement. The Company’s interest coverage ratio was 22.8 to 1 at April 4, 2015. The Company’s leverage ratio was 1.5 to 1 at April 4, 2015. | |
In the event of voluntary or involuntary bankruptcy of the Company or any subsidiary, all unpaid principal and other amounts owing under the Credit Agreement automatically become due and payable. Other events of default, such as failure to make payments as they become due and breach of financial and other covenants, change of control, judgments over a certain amount, and cross default under other agreements give the Agent the option to declare all such amounts immediately due and payable. |
Product_Warranties
Product Warranties | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
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: | |||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 4,884 | $ | 2,796 | |||||
Acquisitions | 500 | 790 | |||||||
Warranties issued | 738 | 329 | |||||||
Warranties settled | (726 | ) | (334 | ) | |||||
Reassessed warranty exposure | 76 | 156 | |||||||
Balance at end of period | $ | 5,472 | $ | 3,737 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Apr. 04, 2015 | |
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. | |
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 April 4, 2015 or December 31, 2014, nor were any penalties or interest costs included in expense for the three month periods ending April 4, 2015 and March 29, 2014. 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 2014 for federal purposes and 2011 through 2014 for state purposes. | |
The effective tax rates for the three months ended April 4, 2015 and March 29, 2014 were approximately 34.4% and 33.6%, respectively. The effective tax rate for the first quarters of 2015 and 2014 were lower than the federal statutory rate, due to the domestic production activity deduction and lower effective tax rates on foreign income. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Shareholders' Equity | 9) Shareholders’ Equity | ||||||||||||
The changes in shareholders’ equity for the three months ended April 4, 2015 are summarized as follows: | |||||||||||||
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 | $ | 219 | 16,608 | 5,322 | |||||||||
Conversion of Class B Shares to Common Shares | — | 411 | (411 | ) | |||||||||
Exercise of Stock Options | 2 | 68 | 81 | ||||||||||
End of Period | $ | 221 | 17,087 | 4,992 | |||||||||
ADDITIONAL PAID IN CAPITAL | |||||||||||||
Beginning of Period | $ | 49,659 | |||||||||||
Stock Compensation Expense | 506 | ||||||||||||
Exercise of Stock Options | 1,108 | ||||||||||||
End of Period | $ | 51,273 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Beginning of Period | $ | (11,949 | ) | ||||||||||
Foreign Currency Translation Adjustment | (3,646 | ) | |||||||||||
Retirement Liability Adjustment – Net of Tax | 161 | ||||||||||||
End of Period | $ | (15,434 | ) | ||||||||||
RETAINED EARNINGS | |||||||||||||
Beginning of Period | $ | 190,248 | |||||||||||
Net Income | 10,683 | ||||||||||||
End of Period | $ | 200,931 | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||||
Beginning of Period | $ | 228,177 | |||||||||||
End of Period | $ | 236,991 | |||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 10) Earnings Per Share | ||||||||
Basic and diluted weighted-average shares outstanding are as follows: | |||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Weighted average shares - Basic | 22,011 | 21,544 | |||||||
Net effect of dilutive stock options | 795 | 1,108 | |||||||
Weighted average shares - Diluted | 22,806 | 22,652 | |||||||
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 April 4, 2015. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss and Other Comprehensive Loss | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
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 loss are as follows: | |||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Foreign Currency Translation Adjustments | $ | (7,000 | ) | $ | (3,354 | ) | |||
Retirement Liability Adjustment – Before Tax | (12,975 | ) | (13,223 | ) | |||||
Tax Benefit | 4,541 | 4,628 | |||||||
Retirement Liability Adjustment – After Tax | (8,434 | ) | (8,595 | ) | |||||
Accumulated Other Comprehensive Loss | $ | (15,434 | ) | $ | (11,949 | ) | |||
The components of other comprehensive loss are as follows: | |||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Foreign Currency Translation Adjustments | $ | (3,646 | ) | $ | (386 | ) | |||
Change in Accumulated Income on Derivatives: | |||||||||
Reclassification to Interest Expense | — | 15 | |||||||
Mark to Market Adjustments for Derivatives | — | 14 | |||||||
Tax Expense | — | (9 | ) | ||||||
Change in Accumulated Income on Derivatives | — | 20 | |||||||
Retirement Liability Adjustments: | |||||||||
Reclassifications to General and Administrative Expense: | |||||||||
Amortization of prior service cost | 130 | 136 | |||||||
Amortization of net actuarial losses | 118 | 27 | |||||||
Tax Benefit | (87 | ) | (61 | ) | |||||
Retirement Liability Adjustment | 161 | 102 | |||||||
Other Comprehensive Loss | $ | (3,485 | ) | $ | (264 | ) | |||
Supplemental_Retirement_Plan_a
Supplemental Retirement Plan and Related Post Retirement Benefits | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
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. | |||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Service cost | $ | 48 | $ | 62 | |||||
Interest cost | 211 | 188 | |||||||
Amortization of prior service cost | 124 | 130 | |||||||
Amortization of net actuarial losses | 112 | 27 | |||||||
Net periodic cost | $ | 495 | $ | 407 | |||||
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: | |||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Service cost | $ | 2 | $ | 1 | |||||
Interest cost | 10 | 8 | |||||||
Amortization of prior service cost | 6 | 6 | |||||||
Amortization of net actuarial losses | 6 | — | |||||||
Net periodic cost | $ | 24 | $ | 15 | |||||
Sales_to_Major_Customers
Sales to Major Customers | 3 Months Ended |
Apr. 04, 2015 | |
Risks and Uncertainties [Abstract] | |
Sales to Major Customers | 13) Sales to Major Customers |
The Company has a significant concentration of business with two major customers, each in excess of 10% of consolidated sales. The loss of either of these customers would significantly, negatively impact our sales and earnings. | |
Sales to these two customers represented 24% and 15% of consolidated sales for the three months ended April 4, 2015. Sales to these customers were in the Aerospace and Test Systems segments. Accounts receivable from these customers at April 4, 2015 was approximately $21.2 million. | |
The Company had sales to two customers in the Aerospace segment that represented 20% and 15% of consolidated sales for the three months ended March 29, 2014. |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Apr. 04, 2015 | |
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. | |
On December 29, 2010, Lufthansa Technik AG (“Lufthansa”) filed a Statement of Claim in the Regional State Court of Mannheim, Germany. Lufthansa’s claim asserts that our subsidiary, Astronics Advanced Electronic Systems Corp. (“AES”) sold, marketed and brought into use in Germany a power supply system which infringes upon a German patent held by Lufthansa. The relief sought by Lufthansa includes requiring AES to stop selling and marketing the allegedly infringing power supply system, a recall of allegedly infringing products sold to commercial customers since November 26, 2003 and compensation for damages. The claim does not specify an estimate of damages and a damages claim will be made by Lufthansa only if it receives a favorable ruling on the determination of infringement. | |
On February 6, 2015, the Regional State Court of Mannheim, Germany rendered its decision that the patent was infringed. The judgment does not require AES to recall products which are already installed in aircraft or have been sold to other end users. However, if Lufthansa provides the required bank guarantees specified in the decision, the Company may be required to offer a recall of products which are in the distribution channels in Germany, and provide certain financial information regarding sales of the infringing product to enable Lufthansa to make an estimate of requested damages. No such bank guarantees have been issued to date. | |
The Company appealed and believes it has valid defenses to refute the decision. The appeal process is estimated to extend up to two years. As a result, we do not currently have sufficient information to provide an estimate of AES’s potential exposure related to this matter. As loss exposure is neither probable nor estimable at this time, the Company has not recorded any liability with respect to this litigation as of April 4, 2015. | |
On November 26, 2014, Lufthansa filed a complaint in the United States District for the Western District of Washington. Lufthansa’s complaint in this action alleges that AES manufactures, uses, sells and offers for sale a power supply system which infringes upon a U.S. patent held by Lufthansa. The patent at issue in the U.S. action is based on technology similar to that involved in the German action. However, the U.S. court will not be bound by the ultimate determination made by the German court. The Company believes it has valid defenses to refute Lufthansa’s claims and intends to contest this matter vigorously. As this matter is in the early stages of fact discovery, we do not currently have sufficient information to provide an estimate of AES’s potential exposure related to this matter. As loss exposure is neither probable nor estimable at this time, the Company has not recorded any liability with respect to this litigation as of April 4, 2015. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | 15) Segment Information | ||||||||
Below are the sales and operating profit by segment for the three months ended April 4, 2015 and March 29, 2014 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. | |||||||||
Three Months Ended | |||||||||
(Dollars in thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Sales | |||||||||
Aerospace | $ | 142,352 | $ | 122,372 | |||||
Test Systems | 19,341 | 18,689 | |||||||
Less Intersegment Sales | (55 | ) | (110 | ) | |||||
19,286 | 18,579 | ||||||||
Total Consolidated Sales | $ | 161,638 | $ | 140,951 | |||||
Operating Profit (Loss) and Margins | |||||||||
Aerospace | $ | 23,402 | $ | 17,490 | |||||
16.4 | % | 14.3 | % | ||||||
Test Systems | (2,225 | ) | (1,695 | ) | |||||
(11.5 | )% | (9.1 | )% | ||||||
Total Operating Profit | 21,177 | 15,795 | |||||||
13.1 | % | 11.2 | % | ||||||
Deductions from Operating Profit | |||||||||
Interest Expense, Net of Interest Income | 1,246 | 2,323 | |||||||
Corporate Expenses and Other | 3,634 | 2,168 | |||||||
Income Before Income Taxes | $ | 16,297 | $ | 11,304 | |||||
Identifiable Assets | |||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Aerospace | $ | 512,777 | $ | 468,481 | |||||
Test Systems | 64,413 | 69,247 | |||||||
Corporate | 23,093 | 25,182 | |||||||
Total Assets | $ | 600,283 | $ | 562,910 | |||||
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||
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 April 4, 2015 and December 31, 2014: | |||||||||||||||||||
(In thousands) | Classification | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Acquisition contingent consideration | |||||||||||||||||||
April 4, 2015 | Current Liabilities | $ | (1,578 | ) | $ | — | $ | — | $ | (1,578 | ) | ||||||||
December 31, 2014 | Current Liabilities | — | — | — | — | ||||||||||||||
April 4, 2015 | Other Liabilities | $ | (173 | ) | $ | — | $ | — | $ | (173 | ) | ||||||||
December 31, 2014 | Other Liabilities | $ | (1,651 | ) | — | — | $ | (1,651 | ) | ||||||||||
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 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 change in the balance of contingent consideration during the three month period ended April 4, 2015 is due to accretion, which is classified within interest expense in the consolidated condensed statement of operations. Contingent consideration payments related to 2014 were insignificant. | |||||||||||||||||||
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. | |||||||||||||||||||
At April 4, 2015, the fair value of goodwill and intangible assets classified using Level 3 inputs are comprised of the Armstrong goodwill and intangible assets acquired on January 14, 2015, which are currently valued based on management’s best estimates. When the accounting for the acquisition is finalized, these intangible assets will be valued using discounted cash flow methodology. | |||||||||||||||||||
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. As of April 4, 2015, the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Apr. 04, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 17) Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding revenue recognition. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. This authoritative guidance will be effective as of the Company’s first quarter of fiscal 2017. However, the FASB has proposed a deferral of the effective date of the new revenue standard by one year. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures. | |
In April 2015, the FASB issued authoritative guidance regarding the presentation of debt issuance costs. The authoritative guidance requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. This authoritative guidance, which will be applied on a retrospective basis, will be effective as of the Company’s first quarter of fiscal 2016, with early adoption permitted. The Company plans to early adopt by the end of fiscal 2015 with no material impact on its consolidated financial statements and disclosures. | |
In April 2015, the FASB issued authoritative guidance regarding customer’s accounting for fees paid in a cloud computing arrangement. The authoritative guidance provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the guidance requires the software license element of the arrangement to be accounted for consistent with other software license agreements. This authoritative guidance will be effective as of the Company’s first quarter of fiscal 2016, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended |
Apr. 04, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | 18) Acquisitions |
Armstrong | |
On January 14, 2015, the Company purchased 100% of the equity of Armstrong for approximately $52.6 million in cash. Armstrong, located in Itasca, Illinois, is a leading provider of engineering, design and certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong will be included in our Aerospace segment. This transaction was not considered material to the Company’s financial position or results of operations. | |
Astronics Test Systems | |
On February 28, 2014, our wholly owned subsidiary, ATS, purchased 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. Located in Irvine, California, ATS is a leading provider of highly-engineered automated test systems, subsystems and instruments for the semiconductor, commercial 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 strengthens our service offerings and expertise in the test market. This subsidiary is included in our Test Systems segment. The purchase price allocation for this acquisition has been finalized. Purchased intangible assets are deductible for tax purposes. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 04, 2015 | |
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 month periods ended April 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
The balance sheet at December 31, 2014 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 2014 annual report on Form 10-K. | |
Description of the Business | Description of the Business |
Astronics Corporation (“Astronics” or the “Company”) is a leading supplier of products to the global aerospace, defense, electronics and semiconductor industries. Our products and services include advanced, high-performance electrical power generation & distribution systems, lighting & safety systems, avionics products, aircraft structures, engineering design and systems certification and automated test systems. | |
We have operations in the United States (“U.S.”), Canada and France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); 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”); PGA Electronic s.a. (“PGA”); Astronics Test Systems, Inc. (“ATS”) and Armstrong Aerospace, Inc. (“Armstrong”). | |
On January 14, 2015, the Company acquired 100% of the equity of Armstrong, located in Itasca, Illinois. Armstrong is a leading provider of engineering, design and systems certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. | |
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 automated test systems, subsystems and instruments for commercial electronics and semiconductor products to both the commercial and defense industries. ATS is included in our Test Systems segment. | |
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 $22.2 million and $17.2 million for the three months ended April 4, 2015 and March 29, 2014, respectively. Selling, general and administrative expenses include costs primarily related to our sales and marketing departments and administrative departments. Interest expense is shown net of interest income. Interest income was insignificant for the three months ended April 4, 2015 and March 29, 2014. | |
Derivatives | Derivatives |
In November 2014, the Company terminated its interest rate swap. Ineffectiveness was not significant for the three month period ended March 29, 2014. The Company classified the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items. No derivative instruments were outstanding at or for the three month period ended April 4, 2015 | |
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 April 4, 2015 and March 29, 2014. | |
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 2015 | Accounting Pronouncements Adopted in 2015 |
There have been no recent accounting pronouncements that have had 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 April 4, 2015 or December 31, 2014, nor were any penalties or interest costs included in expense for the three month periods ending April 4, 2015 and March 29, 2014. 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 2014 for federal purposes and 2011 through 2014 for state purposes. |
The effective tax rates for the three months ended April 4, 2015 and March 29, 2014 were approximately 34.4% and 33.6%, respectively. The effective tax rate for the first quarters of 2015 and 2014 were lower than the federal statutory rate, due to the domestic production activity deduction and lower effective tax rates on foreign income. | |
Fair value Measurements and Disclosures | 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. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories | Inventories are as follows: | ||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Finished Goods | $ | 33,021 | $ | 28,763 | |||||
Work in Progress | 25,134 | 28,488 | |||||||
Raw Material | 62,629 | 57,802 | |||||||
$ | 120,784 | $ | 115,053 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment | The following table summarizes Property, Plant and Equipment as follows: | ||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Land | $ | 11,258 | $ | 10,008 | |||||
Buildings and Improvements | 76,314 | 74,755 | |||||||
Machinery and Equipment | 79,126 | 73,062 | |||||||
Construction in Progress | 7,447 | 4,757 | |||||||
174,145 | 162,582 | ||||||||
Less Accumulated Depreciation | 49,228 | 46,266 | |||||||
$ | 124,917 | $ | 116,316 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Summary of Acquired Intangible Assets | The following table summarizes acquired intangible assets as follows: | ||||||||||||||||||||
April 4, 2015 | December 31, 2014 | ||||||||||||||||||||
(In thousands) | Weighted | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||||||
Average Life | Amount | Amortization | Amount | Amortization | |||||||||||||||||
Patents | 6 Years | $ | 2,146 | $ | 1,124 | $ | 2,146 | $ | 1,077 | ||||||||||||
Trade Names | 9 Years | 8,217 | 1,472 | 8,304 | 1,288 | ||||||||||||||||
Completed and Unpatented Technology | 7 Years | 17,957 | 4,852 | 18,107 | 4,396 | ||||||||||||||||
Backlog and Customer Relationships | 12 Years | 113,539 | 22,378 | 93,448 | 20,253 | ||||||||||||||||
Total Intangible Assets | 8 Years | $ | 141,859 | $ | 29,826 | $ | 122,005 | $ | 27,014 | ||||||||||||
Summary of Amortization Expense for Acquired Intangibles | Amortization expense for acquired intangibles is summarized as follows: | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
(In thousands) | April 4, | March 29, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Amortization Expense | $ | 2,852 | $ | 2,467 | |||||||||||||||||
Summary of Amortization Expense for Intangible Assets for Each of Next Five Years | Amortization expense for intangible assets expected for 2015 and for each of the next five years is summarized as follows: | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2015 | $ | 11,100 | |||||||||||||||||||
2016 | 10,710 | ||||||||||||||||||||
2017 | 10,293 | ||||||||||||||||||||
2018 | 9,980 | ||||||||||||||||||||
2019 | 9,579 | ||||||||||||||||||||
2020 | 9,524 |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||
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 2015: | ||||||||||||||||
(In thousands) | December 31, | Acquisition | Foreign | April 4, | |||||||||||||
2014 | Currency | 2015 | |||||||||||||||
Translation | |||||||||||||||||
Aerospace | $ | 100,153 | $ | 20,325 | $ | (848 | ) | $ | 119,630 | ||||||||
Test Systems | — | — | — | — | |||||||||||||
$ | 100,153 | $ | 20,325 | $ | (848 | ) | $ | 119,630 | |||||||||
Product_Warranties_Tables
Product Warranties (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Guarantees [Abstract] | |||||||||
Summary of Activity in Warranty Accrual | Activity in the warranty accrual is summarized as follows: | ||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 4,884 | $ | 2,796 | |||||
Acquisitions | 500 | 790 | |||||||
Warranties issued | 738 | 329 | |||||||
Warranties settled | (726 | ) | (334 | ) | |||||
Reassessed warranty exposure | 76 | 156 | |||||||
Balance at end of period | $ | 5,472 | $ | 3,737 | |||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Apr. 04, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Summary of Changes in Shareholder's Equity | The changes in shareholders’ equity for the three months ended April 4, 2015 are summarized as follows: | ||||||||||||
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 | $ | 219 | 16,608 | 5,322 | |||||||||
Conversion of Class B Shares to Common Shares | — | 411 | (411 | ) | |||||||||
Exercise of Stock Options | 2 | 68 | 81 | ||||||||||
End of Period | $ | 221 | 17,087 | 4,992 | |||||||||
ADDITIONAL PAID IN CAPITAL | |||||||||||||
Beginning of Period | $ | 49,659 | |||||||||||
Stock Compensation Expense | 506 | ||||||||||||
Exercise of Stock Options | 1,108 | ||||||||||||
End of Period | $ | 51,273 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Beginning of Period | $ | (11,949 | ) | ||||||||||
Foreign Currency Translation Adjustment | (3,646 | ) | |||||||||||
Retirement Liability Adjustment – Net of Tax | 161 | ||||||||||||
End of Period | $ | (15,434 | ) | ||||||||||
RETAINED EARNINGS | |||||||||||||
Beginning of Period | $ | 190,248 | |||||||||||
Net Income | 10,683 | ||||||||||||
End of Period | $ | 200,931 | |||||||||||
TOTAL SHAREHOLDERS’ EQUITY | |||||||||||||
Beginning of Period | $ | 228,177 | |||||||||||
End of Period | $ | 236,991 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Summary of Basic and Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows: | ||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Weighted average shares - Basic | 22,011 | 21,544 | |||||||
Net effect of dilutive stock options | 795 | 1,108 | |||||||
Weighted average shares - Diluted | 22,806 | 22,652 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss and Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Equity [Abstract] | |||||||||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: | ||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Foreign Currency Translation Adjustments | $ | (7,000 | ) | $ | (3,354 | ) | |||
Retirement Liability Adjustment – Before Tax | (12,975 | ) | (13,223 | ) | |||||
Tax Benefit | 4,541 | 4,628 | |||||||
Retirement Liability Adjustment – After Tax | (8,434 | ) | (8,595 | ) | |||||
Accumulated Other Comprehensive Loss | $ | (15,434 | ) | $ | (11,949 | ) | |||
Components of Other Comprehensive Loss | The components of other comprehensive loss are as follows: | ||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Foreign Currency Translation Adjustments | $ | (3,646 | ) | $ | (386 | ) | |||
Change in Accumulated Income on Derivatives: | |||||||||
Reclassification to Interest Expense | — | 15 | |||||||
Mark to Market Adjustments for Derivatives | — | 14 | |||||||
Tax Expense | — | (9 | ) | ||||||
Change in Accumulated Income on Derivatives | — | 20 | |||||||
Retirement Liability Adjustments: | |||||||||
Reclassifications to General and Administrative Expense: | |||||||||
Amortization of prior service cost | 130 | 136 | |||||||
Amortization of net actuarial losses | 118 | 27 | |||||||
Tax Benefit | (87 | ) | (61 | ) | |||||
Retirement Liability Adjustment | 161 | 102 | |||||||
Other Comprehensive Loss | $ | (3,485 | ) | $ | (264 | ) | |||
Supplemental_Retirement_Plan_a1
Supplemental Retirement Plan and Related Post Retirement Benefits (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
SERP [Member] | |||||||||
Summarizes the Components of Net Periodic Cost | The following table sets forth information regarding the net periodic pension cost for the plans. | ||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Service cost | $ | 48 | $ | 62 | |||||
Interest cost | 211 | 188 | |||||||
Amortization of prior service cost | 124 | 130 | |||||||
Amortization of net actuarial losses | 112 | 27 | |||||||
Net periodic cost | $ | 495 | $ | 407 | |||||
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: | ||||||||
Three Months Ended | |||||||||
(In thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Service cost | $ | 2 | $ | 1 | |||||
Interest cost | 10 | 8 | |||||||
Amortization of prior service cost | 6 | 6 | |||||||
Amortization of net actuarial losses | 6 | — | |||||||
Net periodic cost | $ | 24 | $ | 15 | |||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Apr. 04, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Summary of Segment Reporting Information | Below are the sales and operating profit by segment for the three months ended April 4, 2015 and March 29, 2014 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. | ||||||||
Three Months Ended | |||||||||
(Dollars in thousands) | April 4, | March 29, | |||||||
2015 | 2014 | ||||||||
Sales | |||||||||
Aerospace | $ | 142,352 | $ | 122,372 | |||||
Test Systems | 19,341 | 18,689 | |||||||
Less Intersegment Sales | (55 | ) | (110 | ) | |||||
19,286 | 18,579 | ||||||||
Total Consolidated Sales | $ | 161,638 | $ | 140,951 | |||||
Operating Profit (Loss) and Margins | |||||||||
Aerospace | $ | 23,402 | $ | 17,490 | |||||
16.4 | % | 14.3 | % | ||||||
Test Systems | (2,225 | ) | (1,695 | ) | |||||
(11.5 | )% | (9.1 | )% | ||||||
Total Operating Profit | 21,177 | 15,795 | |||||||
13.1 | % | 11.2 | % | ||||||
Deductions from Operating Profit | |||||||||
Interest Expense, Net of Interest Income | 1,246 | 2,323 | |||||||
Corporate Expenses and Other | 3,634 | 2,168 | |||||||
Income Before Income Taxes | $ | 16,297 | $ | 11,304 | |||||
Identifiable Assets | |||||||||
(In thousands) | April 4, | December 31, | |||||||
2015 | 2014 | ||||||||
Aerospace | $ | 512,777 | $ | 468,481 | |||||
Test Systems | 64,413 | 69,247 | |||||||
Corporate | 23,093 | 25,182 | |||||||
Total Assets | $ | 600,283 | $ | 562,910 | |||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||
Apr. 04, 2015 | |||||||||||||||||||
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 April 4, 2015 and December 31, 2014: | ||||||||||||||||||
(In thousands) | Classification | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Acquisition contingent consideration | |||||||||||||||||||
April 4, 2015 | Current Liabilities | $ | (1,578 | ) | $ | — | $ | — | $ | (1,578 | ) | ||||||||
December 31, 2014 | Current Liabilities | — | — | — | — | ||||||||||||||
April 4, 2015 | Other Liabilities | $ | (173 | ) | $ | — | $ | — | $ | (173 | ) | ||||||||
December 31, 2014 | Other Liabilities | $ | (1,651 | ) | — | — | $ | (1,651 | ) |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |
Apr. 04, 2015 | Mar. 29, 2014 | Jan. 14, 2015 | |
Schedule Of Accounting Policies [Line Items] | |||
Research and development, design and related engineering | $22,200,000 | $17,200,000 | |
Derivative instruments outstanding | $0 | ||
Armstrong [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Percentage of acquired stock | 100.00% | ||
Date of acquisition | 14-Jan-15 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished Goods | $33,021 | $28,763 |
Work in Progress | 25,134 | 28,488 |
Raw Material | 62,629 | 57,802 |
Inventory, Net | $120,784 | $115,053 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $174,145 | $162,582 |
Less Accumulated Depreciation | 49,228 | 46,266 |
Property, Plant and Equipment Net | 124,917 | 116,316 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 11,258 | 10,008 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 76,314 | 74,755 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 79,126 | 73,062 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $7,447 | $4,757 |
Intangible_Assets_Summary_of_A
Intangible Assets - Summary of Acquired Intangible Assets (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 8 years | |
Gross Carrying Amount | $141,859 | $122,005 |
Accumulated Amortization | 29,826 | 27,014 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 6 years | |
Gross Carrying Amount | 2,146 | 2,146 |
Accumulated Amortization | 1,124 | 1,077 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 9 years | |
Gross Carrying Amount | 8,217 | 8,304 |
Accumulated Amortization | 1,472 | 1,288 |
Completed and Unpatented Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 7 years | |
Gross Carrying Amount | 17,957 | 18,107 |
Accumulated Amortization | 4,852 | 4,396 |
Backlog and Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 12 years | |
Gross Carrying Amount | 113,539 | 93,448 |
Accumulated Amortization | $22,378 | $20,253 |
Intangible_Assets_Summary_of_A1
Intangible Assets - Summary of Amortization Expense for Acquired Intangibles (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization Expense | $2,852 | $2,467 |
Intangible_Assets_Summary_of_A2
Intangible Assets - Summary of Amortization Expense for Intangible Assets for Each of Next Five Years (Detail) (USD $) | Apr. 04, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense, 2015 | $11,100 |
Amortization expense, 2016 | 10,710 |
Amortization expense, 2017 | 10,293 |
Amortization expense, 2018 | 9,980 |
Amortization expense, 2019 | 9,579 |
Amortization expense, 2020 | $9,524 |
Goodwill_Summary_of_Changes_in
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Goodwill [Line Items] | |
Beginning balance | $100,153 |
Acquisition | 20,325 |
Foreign Currency Translation | -848 |
Ending balance | 119,630 |
Aerospace Segment [Member] | |
Goodwill [Line Items] | |
Beginning balance | 100,153 |
Acquisition | 20,325 |
Foreign Currency Translation | -848 |
Ending balance | $119,630 |
Recovered_Sheet1
Long-Term Debt and Notes Payable - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended |
Sep. 26, 2014 | Apr. 04, 2015 | |
Debt Instrument [Line Items] | ||
Outstanding letter of credit | 5 years | |
Revolving credit facility remaining | 148,900,000 | |
Outstanding letters of credit | 1,100,000 | |
Interest coverage ratio | 2280.00% | |
Leverage ratio | 150.00% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility unused capacity | 0.50% | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility unused capacity | 0.25% | |
Amended and Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility Outstanding | 6,000,000 | |
Term loan outstanding amount | 180,500,000 | |
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 Adjusted 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. | |
Ratio of funded debt to Adjusted EBITDA | 350.00% | |
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 | 300.00% | |
Amended and Restated Credit Agreement [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Ratio of funded debt to Adjusted EBITDA | 400.00% | |
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% | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility Outstanding | 200,000,000 | |
Revolving Credit Facility [Member] | Acquisition [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility Outstanding | 58,000,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility Outstanding | 125,000,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility, maturity date | 30-Jun-18 | |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility allocated | 20,000,000 |
Product_Warranties_Additional_
Product Warranties - Additional Information (Detail) | 3 Months Ended |
Apr. 04, 2015 | |
Guarantees [Abstract] | |
Product warranty period | 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. |
Product_Warranties_Summary_of_
Product Warranties - Summary of Activity in Warranty Accrual (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Guarantees [Abstract] | ||
Balance at beginning of period | $4,884 | $2,796 |
Acquisitions | 500 | 790 |
Warranties issued | 738 | 329 |
Warranties settled | -726 | -334 |
Reassessed warranty exposure | 76 | 156 |
Balance at end of period | $5,472 | $3,737 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Penalties or interest liability accrued | $0 | $0 | |
Penalty or interest expense | $0 | $0 | |
Effective tax rate | 34.40% | 33.60% |
Shareholders_Equity_Summary_of
Shareholder's Equity - Summary of Changes in Shareholder's Equity (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Shareholders Equity [Line Items] | ||
Beginning of Period | $228,177 | |
Stock Compensation Expense | -506 | -394 |
Foreign Currency Translation Adjustment | -3,646 | -386 |
Net Income | 10,683 | 7,507 |
Retirement Liability Adjustment - Net of Tax | 161 | 102 |
End of Period | 236,991 | |
Convertible Class B Stock [Member] | ||
Shareholders Equity [Line Items] | ||
Shares Authorized | 10,000,000 | |
Share Par Value | $0.01 | |
Beginning of Period | 5,322,000 | |
Conversion of Class B Shares to Common Shares | -411,000 | |
Exercise of Stock Options | 81,000 | |
End of Period | 4,992,000 | |
Common Stock [Member] | ||
Shareholders Equity [Line Items] | ||
Beginning of Period | 219 | |
Conversion of Class B Shares to Common Shares | 0 | |
Exercise of Stock Options | 2 | |
End of Period | 221 | |
Shares Authorized | 40,000,000 | |
Share Par Value | $0.01 | |
Beginning of Period | 16,608,000 | |
Conversion of Class B Shares to Common Shares | 411,000 | |
Exercise of Stock Options | 68,000 | |
End of Period | 17,087,000 | |
Additional Paid in Capital [Member] | ||
Shareholders Equity [Line Items] | ||
Beginning of Period | 49,659 | |
Stock Compensation Expense | 506 | |
Exercise of Stock Options | 1,108 | |
End of Period | 51,273 | |
Accumulated Comprehensive Loss [Member] | ||
Shareholders Equity [Line Items] | ||
Beginning of Period | -11,949 | |
Foreign Currency Translation Adjustment | -3,646 | |
Retirement Liability Adjustment - Net of Tax | 161 | |
End of Period | -15,434 | |
Retained Earnings [Member] | ||
Shareholders Equity [Line Items] | ||
Beginning of Period | 190,248 | |
Net Income | 10,683 | |
End of Period | $200,931 |
Earnings_Per_Share_Summary_of_
Earnings Per Share - Summary of Basic and Diluted Weighted-Average Shares Outstanding (Detail) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Earnings Per Share [Abstract] | ||
Weighted average shares - Basic | 22,011 | 21,544 |
Net effect of dilutive stock options | 795 | 1,108 |
Weighted average shares - Diluted | 22,806 | 22,652 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended |
Apr. 04, 2015 | |
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 Loss (Detail) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Equity [Abstract] | ||
Foreign Currency Translation Adjustments | ($7,000) | ($3,354) |
Retirement Liability Adjustment - Before Tax | -12,975 | -13,223 |
Tax Benefit | 4,541 | 4,628 |
Retirement Liability Adjustment - After Tax | -8,434 | -8,595 |
Accumulated Other Comprehensive Loss | ($15,434) | ($11,949) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss and Other Comprehensive Loss - Components of Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Equity [Abstract] | ||
Foreign Currency Translation Adjustments | ($3,646) | ($386) |
Reclassification to Interest Expense | 15 | |
Mark to Market Adjustments for Derivatives | 14 | |
Tax Expense | -9 | |
Change in Accumulated Income on Derivatives | 20 | |
Amortization of prior service cost | 130 | 136 |
Amortization of net actuarial losses | 118 | 27 |
Tax Benefit | -87 | -61 |
Retirement Liability Adjustment | 161 | 102 |
Other Comprehensive Loss | ($3,485) | ($264) |
Supplemental_Retirement_Plan_a2
Supplemental Retirement Plan and Related Post Retirement Benefits - Additional Information (Detail) | 3 Months Ended |
Apr. 04, 2015 | |
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 | |
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
SERP [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $48 | $62 |
Interest cost | 211 | 188 |
Amortization of prior service cost | 124 | 130 |
Amortization of net actuarial losses | 112 | 27 |
Net periodic cost | 495 | 407 |
SERP Medical [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 10 | 8 |
Amortization of prior service cost | 6 | 6 |
Amortization of net actuarial losses | 6 | |
Net periodic cost | $24 | $15 |
Sales_to_Major_Customers_Addit
Sales to Major Customers - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 |
Customer | Customer | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of major customers | 2 | |
Accounts receivable from major customers | $21.20 | |
Aerospace Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Number of major customers | 2 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Aerospace and Test Systems Segment [Member] | Major Customer One [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Percent of consolidated revenue | 24.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Aerospace and Test Systems Segment [Member] | Major Customer Two [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Percent of consolidated revenue | 15.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Aerospace Segment [Member] | Major Customer One [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Percent of consolidated revenue | 20.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Aerospace Segment [Member] | Major Customer Two [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Percent of consolidated revenue | 15.00% |
Segment_Information_Summary_of
Segment Information - Summary of Segment Reporting Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 04, 2015 | Mar. 29, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Sales | $161,638 | $140,951 | |
Income from Operations | 17,543 | 13,627 | |
Interest Expense, Net of Interest Income | 1,246 | 2,323 | |
Income Before Income Taxes | 16,297 | 11,304 | |
Total Assets | 600,283 | 562,910 | |
Test Systems Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 19,286 | 18,579 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Income from Operations | 21,177 | 15,795 | |
Percentage of Operating Profit (Loss) and Margins | 13.10% | 11.20% | |
Operating Segments [Member] | Aerospace Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 142,352 | 122,372 | |
Income from Operations | 23,402 | 17,490 | |
Percentage of Operating Profit (Loss) and Margins | 16.40% | 14.30% | |
Total Assets | 512,777 | 468,481 | |
Operating Segments [Member] | Test Systems Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | 19,341 | 18,689 | |
Income from Operations | -2,225 | -1,695 | |
Percentage of Operating Profit (Loss) and Margins | -11.50% | -9.10% | |
Total Assets | 64,413 | 69,247 | |
Intersegment Eliminations [Member] | Test Systems Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Sales | -55 | -110 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest Expense, Net of Interest Income | 1,246 | 2,323 | |
Corporate and Other Expenses, Net | 3,634 | 2,168 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Assets | $23,093 | $25,182 |
Fair_Value_Financial_Assets_an
Fair Value - Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) (USD $) | Apr. 04, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition contingent consideration | ($173) | ($1,651) |
Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition contingent consideration | -1,578 | |
Level 3 [Member] | Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition contingent consideration | -173 | -1,651 |
Level 3 [Member] | Current Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Acquisition contingent consideration | ($1,578) |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (Level 3 [Member], Maximum [Member], USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 04, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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 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. |
Revenue Recognition Milestone Method 2014 and 2015 [Member] | AeroSat [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration on fair value liabilities | 53,000 |
Revenue Recognition Milestone Method 2012 to 2016 [Member] | Ballard [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Contingent consideration on fair value liabilities | 5,500 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2014 | Jan. 14, 2015 |
Astronics Test Systems [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition purchase price paid in cash | $69.40 | |
Net working capital adjustment | 16.4 | |
Armstrong [Member] | ||
Business Acquisition [Line Items] | ||
Percentage of acquired stock | 100.00% | |
Business acquisition purchase price paid in cash | $52.60 | |
Date of acquisition | 14-Jan-15 |