Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Registrant Name | B/E AEROSPACE INC | ||
Entity Central Index Key | 861361 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 105,963,213 | ||
Entity Public Float | $7,102,000,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $292.50 | $637.80 |
Accounts receivable | 289 | 484.1 |
Inventories | 925.2 | 1,943.80 |
Deferred income taxes | 17.6 | 29.4 |
Other current assets | 130.7 | 64.6 |
Total current assets | 1,655 | 3,159.70 |
Property and equipment | 397.7 | 425.7 |
Goodwill | 859.5 | 1,571 |
Identifiable intangible assets | 218.2 | 472.2 |
Other assets | 69.5 | 67.6 |
Total assets | 3,199.90 | 5,696.20 |
Current liabilities: | ||
Accounts payable | 275.1 | 357.9 |
Accrued liabilities | 485 | 521.2 |
Current maturities of long-term debt | 20.6 | |
Total current liabilities | 780.7 | 879.1 |
Long-term debt | 2,168.50 | 1,959.40 |
Deferred income taxes | 118.9 | 165 |
Other non-current liabilities | 121.7 | 83.5 |
Commitments, contingencies and off-balance sheet arrangements (Note 8) | ||
Stockholders' equity: | ||
Common stock, $0.01 par value; 200.0 shares authorized; 106.7 shares issued as of December 31, 2014 and 105.7 shares issued as of December 31, 2013 | 1.1 | 1.1 |
Additional paid-in capital | -884.6 | 1,710.40 |
Treasury stock; 738,852 shares at December 31, 2014 and 638,941 shares at December 31, 2013 | -28.6 | -21.6 |
Retained earnings | 1,027.60 | 923.3 |
Accumulated other comprehensive loss | -105.4 | -4 |
Total stockholders' equity | 10.1 | 2,609.20 |
Total liabilities and equity | $3,199.90 | $5,696.20 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 106,700,000 | 105,700,000 |
Treasury stock | 738,852 | 638,941 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Revenues | $2,599 | $2,203.30 | $1,914.30 |
Cost of sales | 1,582.80 | 1,296 | 1,113.70 |
Selling, general and administrative | 347.9 | 323.5 | 315.9 |
Research, development and engineering | 284.3 | 220.9 | 191.7 |
Operating earnings | 384 | 362.9 | 293 |
Interest expense | 130.6 | 123.4 | 124.2 |
Debt prepayment costs | 243.6 | 82.1 | |
Earnings before income taxes | 9.8 | 239.5 | 86.7 |
Income tax (benefit) expense | -47.9 | 44.6 | 7.1 |
Earnings from continuing operations | 57.7 | 194.9 | 79.6 |
Earnings from discontinued operations, net of income taxes | 46.6 | 170.7 | 154.1 |
Net earnings | 104.3 | 365.6 | 233.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment excluding spinoff amount | 101.4 | 28.1 | 37.8 |
Comprehensive income | $205.70 | $393.70 | $271.50 |
Net earnings per share from continuing operations - basic | $0.55 | $1.89 | $0.78 |
Net earnings per share from discontinued operations - basic | $0.45 | $1.65 | $1.51 |
Net earnings per share - basic | $1 | $3.54 | $2.29 |
Net earnings per share from continuing operations - diluted | $0.55 | $1.88 | $0.77 |
Net earnings per share from discontinued operations - diluted | $0.45 | $1.64 | $1.50 |
Net earnings per share - diluted | $1 | $3.52 | $2.27 |
Weighted average common shares - basic | 104 | 103.2 | 102.2 |
Weighted average common shares - diluted | 104.5 | 103.9 | 102.9 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
In Millions, except Share data | ||||||
Balance at Dec. 31, 2011 | $1 | $1,633.20 | ($15.70) | $324 | ($69.90) | $1,872.60 |
Balance (shares) at Dec. 31, 2011 | 104,400,000 | |||||
Sale of stock under employee stock purchase plan (in shares) | 100,000 | 136,000 | ||||
Sale of stock under employee stock purchase plan | 6.3 | 6.3 | ||||
Purchase of treasury stock | -2.6 | -2.6 | ||||
Exercise of stock options (in shares) | 100,000 | 45,040 | ||||
Exercise of stock options | 0.3 | 0.3 | ||||
Restricted stock grants (in shares) | 800,000 | |||||
Restricted stock grants | 0.1 | 23.7 | 23.8 | |||
Tax benefits realized from prior exercises of employee stock options and restricted stock | 7 | 7 | ||||
Net earnings | 233.7 | 233.7 | ||||
Foreign currency translation adjustment and other | 37.8 | 37.8 | ||||
Balance at Dec. 31, 2012 | 1.1 | 1,670.50 | -18.3 | 557.7 | -32.1 | 2,178.90 |
Balance (shares) at Dec. 31, 2012 | 105,400,000 | |||||
Sale of stock under employee stock purchase plan (in shares) | 100,000 | 101,000 | ||||
Sale of stock under employee stock purchase plan | 7.3 | 7.3 | ||||
Purchase of treasury stock | -3.3 | -3.3 | ||||
Exercise of stock options (in shares) | 19,525 | |||||
Exercise of stock options | 0.2 | 0.2 | ||||
Restricted stock grants (in shares) | 200,000 | |||||
Restricted stock grants | 23.2 | 23.2 | ||||
Tax benefits realized from prior exercises of employee stock options and restricted stock | 9.2 | 9.2 | ||||
Net earnings | 365.6 | 365.6 | ||||
Foreign currency translation adjustment and other | 28.1 | 28.1 | ||||
Balance at Dec. 31, 2013 | 1.1 | 1,710.40 | -21.6 | 923.3 | -4 | 2,609.20 |
Balance (shares) at Dec. 31, 2013 | 105,700,000 | |||||
Sale of stock under employee stock purchase plan (in shares) | 100,000 | 98,000 | ||||
Sale of stock under employee stock purchase plan | 8.4 | 8.4 | ||||
Purchase of treasury stock | -7 | -7 | ||||
Exercise of stock options (in shares) | 100,000 | 29,750 | ||||
Exercise of stock options | 0.3 | 0.3 | ||||
Restricted stock grants (in shares) | 800,000 | |||||
Restricted stock grants | 28.2 | 28.2 | ||||
Tax benefits realized from prior exercises of employee stock options and restricted stock | 3.5 | 3.5 | ||||
Net earnings | 104.3 | 104.3 | ||||
Spin-Off of KLX INC | -2,635.40 | 8 | -2,627.40 | |||
Foreign currency translation adjustment and other | -109.4 | -109.4 | ||||
Balance at Dec. 31, 2014 | $1.10 | ($884.60) | ($28.60) | $1,027.60 | ($105.40) | $10.10 |
Balance (shares) at Dec. 31, 2014 | 106,700,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $104.30 | $365.60 | $233.70 |
Adjustments to reconcile net earnings to net cash flows provided by operating activities, net of effects from acquisitions: | |||
Depreciation and amortization | 142.3 | 89.6 | 75 |
Deferred income taxes | 36.3 | 32.9 | 37.3 |
Non-cash compensation | 29.7 | 24.2 | 24.5 |
Tax benefits realized from prior exercises of employee stock options and restricted stock | -3.5 | -9.2 | -7 |
Provision for doubtful accounts | 9.6 | 1.3 | 4.8 |
Loss on disposal of property and equipment | 3.8 | 2.4 | 2.4 |
Debt prepayment costs | 243.6 | 82.1 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | -77 | -67.2 | -32 |
Inventories | -284 | -181.8 | -169.7 |
Other current and non-current assets | -220.2 | -8.3 | -18.2 |
Accounts payable and accrued liabilities | 266 | 129.6 | 122.2 |
Net cash flow provided by continuing operating activities | 250.9 | 379.1 | 355.1 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -255.6 | -154.9 | -125.4 |
Acquisitions, net of cash acquired | -1,043.10 | -118.1 | -649.7 |
Proceeds from sale of businesses and other | 0.8 | 0.1 | 2.6 |
Net cash flow used in continuing investing activities | -1,297.90 | -272.9 | -772.5 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from common stock issued | 7.5 | 6.4 | 5.8 |
Purchase of treasury stock | -7 | -3.3 | -2.6 |
Proceeds from long-term debt | 2,189 | 1,316 | |
Proceeds from KLX long-term debt | 1,200 | ||
Principal payments on long-term debt | -1,950 | -0.3 | -600.5 |
Borrowings on line of credit | 868 | 215 | |
Repayments on line of credit | -868 | -215 | |
Debt prepayment costs | -210.9 | -71.7 | |
Debt origination costs | -61.3 | -30.3 | |
Tax benefits realized from prior exercises of employee stock options and restricted stock | 3.5 | 9.2 | 7 |
Cash divested in connecton with spin-off of KLX | -460 | ||
Net cash flows provided by continuing financing activities | 710.8 | 12 | 623.7 |
Effect of foreign exchange rate changes on cash and cash equivalents | -9.1 | 5.9 | 3.9 |
Net (decrease) increase in cash and cash equivalents | -345.3 | 124.1 | 210.2 |
Cash and cash equivalents, beginning of period | 637.8 | 513.7 | 303.5 |
Cash and cash equivalents, end of period | 292.5 | 637.8 | 513.7 |
Cash paid during period for: | |||
Interest | 148.3 | 118.4 | 125.2 |
Income taxes | 124 | 86.7 | 52.6 |
Supplemental schedule of non-cash activities: | |||
Accrued property additions | $9.10 | $8.70 | $10.80 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||
(In millions, except share and per share data) | |||||||||||
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Organization and Basis of Presentation – B/E Aerospace, Inc. and its wholly owned subsidiaries (the “Company”) designs, manufactures, sells and services commercial aircraft and business jet cabin interior products consisting of a broad range of seating, interior systems, including structures for food and beverage storage and preparation equipment. The Company’s principal customers are the operators of commercial and business jet aircraft, aircraft manufacturers and their suppliers. As a result, the Company’s business is directly dependent upon the conditions in the commercial airline, business jet and aircraft manufacturing industries. The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. | |||||||||||
On December 16, 2014 (the “Distribution Date”), we completed the spin-off of KLX Inc. (“KLX”) by means of the transfer of our Consumables Management Segment to KLX and the subsequent distribution to B/E Aerospace stockholders of all the outstanding shares of KLX common stock (the “Spin-Off”). We retained our commercial aircraft and business jet segments. On the Distribution Date, each of our stockholders of record as of the close of business on December 5, 2014 (the “Record Date”) received one share of KLX common stock for every two shares of our common stock held as of the Record Date. | |||||||||||
Consolidation – The accompanying consolidated financial statements include the accounts of B/E Aerospace, Inc. and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | |||||||||||
Financial Statement Preparation – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. | |||||||||||
Revenue Recognition – Sales of products are recorded when the earnings process is complete. This generally occurs when the products are shipped to the customer in accordance with the contract or purchase order, risk of loss and title has passed to the customer, collectability is reasonably assured and pricing is fixed and determinable. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on the terms of the sales contract. | |||||||||||
Service revenues primarily consist of engineering activities and are recorded when services are performed. | |||||||||||
Revenues and costs under certain long-term contracts are recognized using contract accounting under the percentage-of-completion method in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-35, Construction–Type and Production–Type Contracts (“ASC 605-35”), with the majority of the contracts accounted for under the cost-to-cost method. Under the cost-to-cost method, the revenues related to the long-term contracts are recognized based on the ratio of actual costs incurred to total estimated costs to be incurred. The Company uses the units-of-delivery method to account for certain contracts. Under the units-of delivery method, revenues are recognized based on the contract price of units delivered. | |||||||||||
The percentage-of-completion method requires the use of estimates of costs to complete long-term contracts. Due to the duration of these contracts as well as the technical nature of the products involved, the estimation of these costs requires management’s judgment in connection with assumptions and projections related to the outcome of future events. Management’s assumptions include future labor performance and rates and projections relative to material and overhead costs, as well as the quantity and timing of product deliveries. The Company reevaluates its contract estimates periodically and reflects changes in estimates in the current period using the cumulative catch-up method. There were no significant changes in our contract estimates during 2014, 2013 or 2012 that resulted in material cumulative catch-up adjustments to operating earnings other than cost estimate changes resulting from the extraordinary expedited development of a new product suite to support a major customer initiative during 2014. Revenues associated with any contractual claims are recognized when it is probable that the claim will result in additional contract revenue and the amount can be reasonably estimated. For the years ended December 31, 2014, 2013 and 2012, approximately 25.5%, 25.4% and 23.9% of our revenues, respectively, were derived from contracts accounted for using percentage-of-completion accounting. Net costs and estimated earnings in excess of billings on uncompleted contracts were $93.7 and $81.9 at December 31, 2014 and 2013, respectively, and recorded as work-in-process inventory. Excess over average costs on long-term contracts accounted for using the units-of-delivery method of accounting were $320.6 and $213.4 at December 31, 2014 and 2013, respectively and recorded as work-in-process inventory. Anticipated losses on contracts are recognized in the period in which the losses become evident and determinable. Advance payments and engineering development costs on certain long-term contracts are deferred and included in revenues and research, development and engineering, respectively, when the products are shipped. | |||||||||||
Income Taxes – The Company provides deferred income taxes for temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. Deferred income taxes are computed using enacted tax rates that are expected to be in effect when the temporary differences reverse. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company records uncertain tax positions within income tax expense and classifies interest and penalties related to income taxes as income tax expense. | |||||||||||
Cash Equivalents – The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | |||||||||||
Accounts Receivable – The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer's current creditworthiness, as determined by review of their current credit information. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. The allowance for doubtful accounts at December 31, 2014 and 2013 was $5.4 and $10.4, respectively. | |||||||||||
Inventories – The Company values inventories at the lower of cost or market, using FIFO or weighted average cost method. The Company regularly reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on historical demand, as well as an estimated forecast of product demand and production requirements, and the age of the inventory among other factors. Demand for the Company’s products can fluctuate significantly. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles and to inventory items with long procurement cycles, some of which are not expected to be realized within one year. | |||||||||||
Property and Equipment– Property and equipment are stated at cost and depreciated generally under the straight-line method over their estimated useful lives of one to fifty years (or the lesser of the term of the lease for leasehold improvements, as appropriate). | |||||||||||
Debt Issuance Costs – Costs incurred to issue debt are deferred and amortized as interest expense over the term of the related debt. Unamortized debt issue costs are written off at the time of prepayment. | |||||||||||
Goodwill and Intangible Assets – Under FASB ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill and indefinite-lived intangible assets are reviewed at least annually for impairment. Acquired intangible assets with definite lives are amortized over their individual useful lives. Patents and other intangible assets are amortized using the straight-line method over periods ranging from three to thirty-four years. | |||||||||||
The Company has five reporting units, which were determined based on the guidelines contained in FASB ASC Topic 350, Subtopic 20, Section 35. Each reporting unit represents either (a) an operating segment (which is also a reportable segment) or (b) a component of an operating segment, which constitutes a business, for which there is discrete financial information available that is regularly reviewed by segment management. | |||||||||||
On at least an annual basis, management assesses whether there has been any impairment in the value of goodwill by first comparing the fair value to the net carrying value of reporting units. If the carrying value exceeds its estimated fair value, a second step is performed to compute the amount of the impairment. An impairment loss is recognized if the implied fair value of the asset being tested is less than its carrying value. In this event, the asset is written down accordingly. The fair values of reporting units for goodwill impairment testing are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. The sum of the fair values of the reporting units are evaluated based on market capitalization determined using average share prices within a reasonable period of time near the selected testing date (calendar year-end), plus an estimated control premium plus the fair value of the Company’s debt obligations. | |||||||||||
Indefinite-lived intangible assets are tested at least annually for impairment. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. The fair values of indefinite-lived intangible assets are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. For the years ended December 31, 2014, 2013 and 2012, the Company’s annual impairment testing yielded no impairments of goodwill or indefinite-lived intangible assets. All indefinite-lived intangible assets were included in the spin-off of KLX. | |||||||||||
Long-Lived Assets – The Company assesses potential impairments to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the undiscounted cash flows expected to be generated by an asset (or group of assets) is less than its carrying amount. Any required impairment loss is measured as the amount by which the asset's carrying value exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. There were no impairments of long lived assets in 2014, 2013, and 2012. | |||||||||||
Product Warranty Costs – Estimated costs related to product warranties are accrued at the time products are sold. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty. Estimated warranty costs are included in the accrued liabilities on the consolidated balance sheet. The following table provides a reconciliation of the activity related to the Company's accrued warranty expense: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 67.0 | $ | 63.2 | $ | 51.5 | |||||
Provision for warranty expense | 41.9 | 42.6 | 37.5 | ||||||||
Settlements of warranty claims | -33.5 | -38.8 | -25.8 | ||||||||
Balance at end of period | $ | 75.4 | $ | 67.0 | $ | 63.2 | |||||
Accounting for Stock-Based Compensation – The Company accounts for share-based compensation arrangements in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), whereby share-based compensation cost is measured on the date of grant, based on the fair value of the award, and is recognized over the requisite service period. | |||||||||||
Compensation cost recognized during the three years ended December 31, 2014 related to grants of restricted stock and restricted stock units. No compensation cost related to stock options was recognized during those periods as no options were granted during the three year period ended December 31, 2014 and all options were vested as of December 31, 2006. | |||||||||||
The Company has established a qualified Employee Stock Purchase Plan. The Plan allows qualified employees (as defined in the plan) to participate in the purchase of designated shares of the Company's common stock at a price equal to 85% of the closing price for each semi-annual stock purchase period. The fair value of employee purchase rights represents the difference between the closing price of the Company’s shares on the date of purchase and the purchase price of the shares. The value of the rights granted during the years ended December 31, 2014, 2013 and 2012 was $1.3, $1.1 and $0.9, respectively. | |||||||||||
Treasury Stock – The Company may periodically repurchase shares of its common stock from employees for the satisfaction of their individual payroll tax withholding upon vesting of restricted stock and restricted stock units in connection with the Company’s Long Term Incentive Plan. The Company’s repurchases of common stock are recorded at the average cost of the common stock. The Company repurchased 99,911, 41,376 and 60,266 shares of its common stock for $7.0, $3.3 and $2.6, respectively, during the years ended December 31, 2014, 2013 and 2012 respectively. | |||||||||||
Research and Development – Research and development expenditures are expensed as incurred. | |||||||||||
Foreign Currency Translation – The assets and liabilities of subsidiaries located outside the United States are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Revenue and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from foreign currency transactions are recognized currently in income, and those resulting from translation of financial statements are accumulated as a separate component of stockholders’ equity. The Company's European subsidiaries primarily utilize the British pound or the Euro as their local functional currency. | |||||||||||
Concentration of Risk – The Company’s products and services are primarily concentrated within the aerospace industry with customers consisting primarily of commercial airlines, a wide variety of business jet customers and commercial aircraft manufacturers. In addition to the overall business risks associated with the Company’s concentration within the airline and aerospace industries, the Company is exposed to a concentration of collection risk on credit extended to commercial airlines and commercial aircraft manufacturers. The Company’s management performs ongoing credit evaluations on the financial condition of all customers it has extended credit to and maintains allowances for uncollectible accounts receivable based on expected collectability. Credit losses have historically been within management's expectations and the provisions established. | |||||||||||
Significant customers change from year to year depending on the level of refurbishment activity and/or the level of new aircraft purchases by such customers. During the years ended December 31, 2014 and 2013, The Boeing Company accounted for 12% and 12%, respectively, of the Company’s consolidated revenues. No other individual customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Recent Accounting Pronouncements | |||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation-Stock Compensation, which updated the guidance in ASC Topic 718, Compensation – Stock Compensation. The update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updated the guidance in ASC Topic 606, Revenue Recognition. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. 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. The Company is currently evaluating the impact this guidance will have on its consolidated financial condition, results of operations, cash flows and disclosures and is currently unable to estimate the impact of adopting this guidance. | |||||||||||
In April 2014, FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment, which updated the guidance in ASC Topic 360, Property, Plant and Equipment. The updated guidance is effective prospectively for years beginning on or after December 15, 2014, with early application permitted. The amendments in this update change the requirements for reporting discontinued operations in Subtopic 205-20. Under this updated guidance, a discontinued operation will include a disposal of a major part of an entity’s operations and financial results such as a separate major line of business or a separate major geographical area of operations. The guidance raises the threshold to be a major operation but no longer precludes discontinued operations presentation where there is significant continuing involvement or cash flows with a disposed component of an entity. The guidance expands disclosures to include cash flows where there is significant continuing involvement with a discontinued operation and the pre-tax profit or loss of disposal transactions not reported as discontinued operations. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which updated the guidance in ASC Topic 740, Income Taxes. The update was effective for interim periods beginning on or after December 15, 2013, and generally provides guidance for the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. The adoption of ASU 2013-11 did not have a material impact on the Company’s consolidated financial statements. | |||||||||||
DIVESTITURES_AND_BUSINESS_COMB
DIVESTITURES AND BUSINESS COMBINATIONS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Divestitures and Business Combination [Abstract] | ||||||||||||||||||
Divestitures and Business Combination | 2. DIVESTITURES AND BUSINESS COMBINATIONS | |||||||||||||||||
Spin-off of KLX Inc. | ||||||||||||||||||
On June 10, 2014, we announced a plan to spin-off our Consumables Management Segment into a separate publicly traded company. To accomplish the spin-off, we formed KLX. On the Distribution Date, we completed the spin-off of KLX by means of the transfer of our Consumables Management Segment to KLX and the subsequent distribution of all the outstanding KLX common stock to our stockholders. We retained our commercial aircraft and business jet segments. On the Distribution Date, each of our stockholders of record as of the close of business on the Record Date received one share of KLX common stock for every two shares of our common stock held as of the Record Date. The distribution was structured to be tax free to our U.S. stockholders for U.S. federal income tax purposes. | ||||||||||||||||||
The divested KLX is presented as a discontinued operation on the consolidated statements of earnings and comprehensive income for all periods presented. The KLX balance sheet, other comprehensive income and cash flows are included within our consolidated financial statements through December 16, 2014. | ||||||||||||||||||
Summary results of operations for KLX through December 16, 2014 were as follows: | ||||||||||||||||||
For the Period January 1, 2014 | For the Years Ended December 31, | |||||||||||||||||
through December 16, 2014 | 2013 | 2012 | ||||||||||||||||
Revenues | $ | 1,611.2 | $ | 1,280.4 | $ | 1,171.0 | ||||||||||||
Earnings before income taxes | $ | 207.9 | $ | 267.5 | $ | 246.8 | ||||||||||||
Provision for income taxes | 161.3 | 96.8 | 92.7 | |||||||||||||||
Earnings from discontinued operations, net of income taxes | $ | 46.6 | $ | 170.7 | $ | 154.1 | ||||||||||||
The results of the KLX discontinued operation exclude certain corporate and group allocations which were historically allocated to KLX. These costs include primarily corporate overhead and information systems. | ||||||||||||||||||
On December 16, 2014, we divested the following assets and liabilities in connection with the Spin-Off: | ||||||||||||||||||
Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 460.0 | ||||||||||||||||
Accounts receivable | 310.8 | |||||||||||||||||
Inventories | 1,303.4 | |||||||||||||||||
Deferred income taxes | 40.2 | |||||||||||||||||
Other current assets | 52.3 | |||||||||||||||||
Property and equipment | 323.1 | |||||||||||||||||
Goodwill | 1,370.4 | |||||||||||||||||
Identifiable intangible assets | 430.7 | |||||||||||||||||
Other assets | 119.1 | |||||||||||||||||
4,410.0 | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Accounts payable | 167.1 | |||||||||||||||||
Accrued liabilities | 182.4 | |||||||||||||||||
Long-term debt | 1,200.0 | |||||||||||||||||
Deferred income taxes | 121.1 | |||||||||||||||||
Other non-current liabilities | 112.0 | |||||||||||||||||
1,782.6 | ||||||||||||||||||
Net assets divested in the Spin-Off | $ | 2,627.4 | ||||||||||||||||
We entered into transitional services agreements with KLX prior to the spin-off pursuant to which we and KLX are providing various services to each other on an interim transitional basis. Transition services may be provided for up to 24 months, and for information technology services, KLX has an option for a one-year extension by the recipient. Services being provided by us include certain information technology and back office support. We record billings under these transition services agreements which are recorded as a reduction of the costs of the respective service in the applicable expense category in the consolidated statement of earnings and comprehensive income. This transitional support will enable KLX to establish its stand-alone processes for various activities that were previously provided by us and does not constitute significant continuing support of KLX’s operations. | ||||||||||||||||||
Under the Tax Sharing and Indemnification Agreement between the Company and KLX we generally assume liability for all federal and state income taxes for all tax periods ending on or prior to December 31, 2014. We assume the liability for all federal and state income taxes of KLX’s U.S. operations through the Distribution Date. KLX assumes all other federal taxes, foreign income tax/non-income taxes and state/local non-income taxes related to their business for all periods and we assume all other federal taxes, foreign income tax/non-income taxes and state/local non-income taxes related to our business for all periods. Additional taxes incurred related to the internal restructuring to separate the businesses to complete the spin-off shall be shared equally between the Company and KLX. Taxes incurred related to certain international tax initiatives for the KLX business shall be assumed by KLX subject to the calculation provisions of the Tax Sharing and Indemnification Agreement. In addition, we transferred to KLX all of its deferred tax assets and liabilities as of December 16, 2014. | ||||||||||||||||||
In connection with the spin-off, we have adjusted our employee stock compensation awards and separated our employee medical and dental benefit plans. | ||||||||||||||||||
Acquisitions | ||||||||||||||||||
Energy Services Acquisitions | ||||||||||||||||||
In April 2014, the Company acquired the assets of the Vision Oil Tools, LLC (“Vision”), a provider of technical services and associated rental equipment and logistics services to the energy sector. Vision established a new geographical base of operations for the Company in the North Dakota (Williston/Bakken) and Rocky Mountain regions. The purchase price was initially $140.0 with an additional $35.0 to be paid by KLX in 2015 based on the achievement of 2014 financial results. The Company has not yet completed its evaluation and allocation of the purchase price for Vision although a customary post-closing adjustment to working capital resulted in a $0.7 increase to the purchase price. During June 2014, the Company also acquired the assets of the Cornell group of companies (“Cornell”), which provides technical services, associated logistic services and rental equipment to the energy sector in the Eagle Ford and Permian basins. The purchase price was $70.7 with the potential for an additional $57.2 to be paid by KLX in 2015 based on the achievement of 2014 financial results. The Company has not yet completed its evaluation and allocation of the purchase price for Cornell although a customary post-closing adjustment to working capital resulted in a $1.5 increase to the purchase price. In April 2014, the Company also acquired the assets of the Marcellus group of companies (“MGS”) engaged in manufacturing and rental of equipment in the Marcellus/Utica shales for approximately $45.0. In January 2014, the Company acquired the assets of the LT Energy Services group of companies (“LT”), an Eagle Ford basin provider of rental equipment, for a net purchase price of approximately $102.5. In February 2014, the Company acquired the assets of Wildcat Wireline LLC (“Wildcat”), a provider of wireline services primarily in the Eagle Ford basin, and also in the Marcellus/Utica basin, for a net purchase price of approximately $153.4. | ||||||||||||||||||
For the 2014 energy services acquisitions, based on our preliminary purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $437.1, of which $131.2 was allocated to identified intangible assets, consisting of customer contracts and relationships and covenants not to compete, and $305.9 is included in goodwill. The useful life assigned to the customer contracts and relationships is between 11-20 years, and the covenants not to compete are being amortized over their contractual periods of five years. | ||||||||||||||||||
During the third and fourth quarters of 2013, the Company acquired the assets of Blue Dot Energy Services, LLC (“Blue Dot”) and Bulldog Frac Rentals, LLC (“Bulldog”), providers of technical services and associated rental equipment and logistics services to the energy sector, for a net purchase price of $114.0. For the 2013 acquisitions, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $70.6, of which $42.6 was allocated to identified intangible assets, consisting of customer contracts and relationships and covenants not to compete, and $28.0 is included in goodwill. The useful life assigned to the customer contracts and relationships is 20 years, and the covenants not to compete are being amortized over their contractual periods of five years. | ||||||||||||||||||
All of the aforementioned acquisitions are included in the assets and liabilities divested in connection with the spin-off and collectively referred to as the “Energy Services Acquisitions”. | ||||||||||||||||||
Manufacturing Acquisitions | ||||||||||||||||||
In June 2014, the Company acquired the outstanding shares of the Emteq, Inc. group of companies, a domestic provider of aircraft interior and exterior lighting systems, as well as aircraft cabin management and power systems for a purchase price of $256.3, net of cash acquired. The Company also acquired the outstanding shares of the F+E Fischer + Entwicklungen GmbH & Co. KG group of companies, a leading Europe-based manufacturer of seating products for civilian helicopters for a purchase price of $212.3, net of cash acquired. During the second quarter, the Company also acquired the outstanding shares of Wessex Advanced Switching Products Ltd., engaged in the production of lighting, control units and switches, based in Europe for a purchase price of $63.0, net of cash acquired. These acquisitions are included in the business jet segment and collectively referred to as the “Manufacturing Acquisitions.” | ||||||||||||||||||
For the Manufacturing Acquisitions, based on our preliminary purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $516.4, of which $99.3 was allocated to identified intangible assets, consisting of customer contracts and relationships, developed technologies, trademarks and patents and covenants not to compete, and $417.1 is included in goodwill. The useful life assigned to the customer contracts and relationships and developed technologies is 20 years, the useful life assigned to trademarks and patents is 15 years, and the covenants not to compete are being amortized over their contractual periods of three to five years. | ||||||||||||||||||
The Energy Services Acquisitions and Manufacturing Acquisitions were accounted for as purchases under FASB ASC 805, Business Combinations (“ASC 805”). The assets purchased and liabilities assumed for the Manufacturing Acquisitions have been reflected in the accompanying consolidated balance sheet as of December 31, 2014. The results of operations for the Manufacturing Acquisitions are included in the accompanying consolidated statements of earnings and comprehensive income from their respective dates of acquisition. The assets purchased and liabilities assumed for the Energy Services acquisitions have been reflected in the accompanying balance sheet as of December 16, 2014. The results of operations for the Energy Services Acquisitions are included in the accompanying consolidated statements of earnings and comprehensive income from their respective dates of acquisition through December 16, 2014. | ||||||||||||||||||
The valuation of certain assets, principally intangible assets, is not yet complete, and as such, the Company has not yet finalized its allocation of the purchase prices for the Energy Services Acquisitions or Manufacturing Acquisitions except for the Blue Dot and Bulldog acquisitions. | ||||||||||||||||||
The following table summarizes the current estimates of fair values of assets acquired and liabilities assumed in the Energy Services Acquisitions in accordance with ASC 805, which are currently recorded based on management’s estimates as follows: | ||||||||||||||||||
Other 2014 | ||||||||||||||||||
Wildcat | Vision | Cornell | acquisitions | 2014 | 2013 | |||||||||||||
Accounts receivable-trade | $ | 0.4 | $ | 10.8 | $ | 10.5 | $ | 15.1 | $ | 36.8 | $ | 14.8 | ||||||
Inventories | 1.3 | -- | -- | 0.4 | 1.7 | 3.9 | ||||||||||||
Other current and non-current assets | -- | 2.4 | -- | 0.1 | 2.5 | 0.2 | ||||||||||||
Property and equipment | 25.7 | 44.1 | 28.5 | 40.3 | 138.6 | 35.5 | ||||||||||||
Goodwill | 88.3 | 89.9 | 66.6 | 61.1 | 305.9 | 28.0 | ||||||||||||
Identified intangibles | 37.7 | 30.0 | 24.5 | 39.0 | 131.2 | 42.6 | ||||||||||||
Accounts payable | -- | -1.5 | -0.7 | -4.3 | -6.5 | -10 | ||||||||||||
Other current and non-current liabilities | -- | -35 | -57.2 | -4.2 | -96.4 | -1 | ||||||||||||
Total purchase price | $ | 153.4 | $ | 140.7 | $ | 72.2 | $ | 147.5 | $ | 513.8 | $ | 114.0 | ||||||
All of the goodwill and other intangible assets related to the Energy Services Acquisitions are expected to be deductible for tax purposes. | ||||||||||||||||||
The following table summarizes the current estimates of fair values of assets acquired and liabilities assumed in the Manufacturing Acquisitions in accordance with ASC 805, which are currently recorded based on management’s estimates as follows: | ||||||||||||||||||
Domestic | Foreign | |||||||||||||||||
Accounts receivable-trade | $ | 12.5 | $ | 12.8 | ||||||||||||||
Inventories | 13.2 | 7.6 | ||||||||||||||||
Other current and non-current assets | 0.9 | 0.5 | ||||||||||||||||
Property and equipment | 6.5 | 7.1 | ||||||||||||||||
Goodwill | 197.4 | 219.7 | ||||||||||||||||
Identified intangibles | 46.8 | 52.5 | ||||||||||||||||
Accounts payable | -4.2 | -3.7 | ||||||||||||||||
Other current and non-current liabilities | -16.8 | -21.2 | ||||||||||||||||
Total purchase price | $ | 256.3 | $ | 275.3 | ||||||||||||||
The majority of the goodwill and intangible assets related to the Manufacturing Acquisitions are not expected to be deductible for tax purposes. | ||||||||||||||||||
Consolidated unaudited pro forma revenues, net earnings and diluted net earnings per share giving effect to the Manufacturing Acquisitions as if they had occurred on January 1, 2013 were $2,668.0, $77.4, and $0.74, and $2,372.5, $120.9 and $1.16, for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | 3.INVENTORIES | |||||||
Inventories are stated at the lower of cost or market. Cost is determined using FIFO or the weighted average cost method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles and inventory items with long procurement cycles, some of which are not expected to be realized within one year. Work-in-process inventories include costs and estimated earnings in excess of billings on uncompleted contracts of $127.9 and $107.5 and capitalized development costs on long-term seller furnished equipment contracts of $320.6 and $213.4 as of December 31, 2014 and December 31, 2013, respectively. Inventories consist of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased materials and component parts | $ | 309.1 | $ | 243.4 | ||||
Work-in-process | 605.9 | 484.0 | ||||||
Finished goods | 61.0 | 1,280.8 | ||||||
Inventory reserves | -50.8 | -64.4 | ||||||
$ | 925.2 | $ | 1,943.8 | |||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ||||||||||
PROPERTY AND EQUIPMENT | 4.PROPERTY AND EQUIPMENT | |||||||||
Property and equipment consist of the following: | ||||||||||
Useful Life | December 31, | December 31, | ||||||||
(Years) | 2014 | 2013 | ||||||||
Buildings and improvements | 1 - 50 | $ | 139.0 | $ | 123.0 | |||||
Machinery | 1 - 20 | 163.8 | 197.8 | |||||||
Tooling | 1 - 15 | 97.8 | 84.3 | |||||||
Computer equipment and software | 1 - 10 | 280.5 | 276.9 | |||||||
Furniture and equipment | 1 - 20 | 28.6 | 32.7 | |||||||
709.7 | 714.7 | |||||||||
Less accumulated depreciation | -312 | -289 | ||||||||
$ | 397.7 | $ | 425.7 | |||||||
Depreciation expense was $97.7, $58.9 and $45.9 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||
Goodwill and Intangible Assets | 5.GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||
The following sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions: | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Net | Net | |||||||||||||||||||||
Useful Life | Original | Accumulated | Book | Original | Accumulated | Book | ||||||||||||||||
(Years) | Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||||
Customer contracts and relationships | 8-30 | $ | 100.0 | $ | 13.4 | $ | 86.6 | $ | 424.0 | $ | 85.7 | $ | 338.3 | |||||||||
Acquired technologies and other | 5-34 | 176.2 | 81.0 | 95.2 | 153.8 | 76.6 | 77.2 | |||||||||||||||
Trademarks and patents | 3-20 | 25.2 | 16.5 | 8.7 | 23.0 | 15.4 | 7.6 | |||||||||||||||
Covenants not to compete | 4-5 | 11.2 | 1.7 | 9.5 | 5.5 | 1.7 | 3.8 | |||||||||||||||
Trade names | 15-indefinite | 19.9 | 1.7 | 18.2 | 45.7 | 0.4 | 45.3 | |||||||||||||||
$ | 332.5 | $ | 114.3 | $ | 218.2 | $ | 652.0 | $ | 179.8 | $ | 472.2 | |||||||||||
Amortization expense of intangible assets was $44.6, $30.7 and $29.1 for the years ended December 31, 2014, 2013 and 2012, respectively. As a result of the spin-off, indefinite lived intangible assets were $0 as of December 31, 2014 and $21.5 as of December 31, 2013. Amortization expense associated with identified intangible assets as of December 31, 2014 is expected to be approximately $18 in each of the next five years. The future amortization amounts are estimates. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods or other factors such as changes in exchange rates for assets acquired outside the United States. The Company expenses costs to renew or extend the term of a recognized intangible asset. | ||||||||||||||||||||||
Goodwill decreased by $711.5 primarily due to the spin-off of KLX and foreign currency translations, offset by our preliminary estimate of goodwill associated with acquisitions completed in 2014. | ||||||||||||||||||||||
In accordance with ASC 350, goodwill is not amortized but is subject to an annual impairment test. As of December 31, 2014, the Company completed step one of the impairment test and fair value analysis for goodwill, and no impairment loss was recorded during the years ended December 31, 2014, 2013 or 2012. The accumulated goodwill impairment loss (incurred in 2008) was $369.3 as of December 31, 2014. | ||||||||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||
Commercial | Business | |||||||||||||||||||||
Aircraft | KLX | Jet | Total | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 388.4 | $ | 1,005.8 | $ | 90.0 | $ | 1,484.2 | ||||||||||||||
Acquisitions | - | 58.7 | - | 58.7 | ||||||||||||||||||
Effect of foreign currency translation | 6.2 | 22.0 | -0.1 | 28.1 | ||||||||||||||||||
Balance as of December 31, 2013 | 394.6 | 1,086.5 | 89.9 | 1,571.0 | ||||||||||||||||||
Acquisitions | - | 305.9 | 417.1 | 723.0 | ||||||||||||||||||
Spin-off of KLX | - | -1,370.40 | - | -1,370.40 | ||||||||||||||||||
Effect of foreign currency translation and other | -14.8 | -22 | -27.3 | -64.1 | ||||||||||||||||||
Balance as of December 31, 2014 | $ | 379.8 | $ | - | $ | 479.7 | $ | 859.5 | ||||||||||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables And Accruals [Abstract] | ||||||||
ACCRUED LIABILITIES | 6.ACCRUED LIABILITIES | |||||||
Accrued liabilities consist of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued salaries, vacation and related benefits | $ | 83.4 | $ | 103.2 | ||||
Accrued product warranties | 75.4 | 67.0 | ||||||
Accrued interest | 3.6 | 28.2 | ||||||
Income taxes payable | 14.6 | 28.7 | ||||||
Deferred revenue | 112.9 | 152.9 | ||||||
Other accrued liabilities | 195.1 | 141.2 | ||||||
$ | 485.0 | $ | 521.2 | |||||
Deferred revenue includes billings in excess of costs and estimated earnings of $34.2 and $25.5 at December 31, 2014 and 2013, respectively. | ||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
LONG-TERM DEBT | 7.LONG-TERM DEBT | |||||||
Long-term debt consists of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
5.25% Notes | $ | - | $ | 1,313.7 | ||||
6.875% Notes | - | 645.7 | ||||||
Term Loan Facility | 2,189.1 | - | ||||||
2,189.1 | 1,959.4 | |||||||
Less current portion of long-term debt | 20.6 | - | ||||||
$ | 2,168.5 | $ | 1,959.4 | |||||
In connection with the KLX spin-off, the Company entered into a credit agreement dated as of December 16, 2014 (the “Credit Agreement”) governing its senior secured bank credit facilities, consisting of (a) a five-year, $600.0 revolving credit facility (the “Revolving Credit Facility”) and (b) a seven-year, $2,200.0 term loan facility (the “Term Loan Facility”). Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate (“LIBOR”) plus 200 basis points or prime (as defined) plus 100 basis points. There were no amounts outstanding under the Revolving Credit Facility as of December 31, 2014. Borrowings under the Term Loan Facility bear interest at an annual rate equal to LIBOR plus 325 basis points (LIBOR shall not be less than 75 basis points per annum) or Prime (as defined) plus 225 basis points (4.0% at December 31, 2014). $2,200.0 was outstanding ($2,189.1 net of original issue discount) under the Term Loan Facility as of December 31, 2014. | ||||||||
During December 2014, the Company redeemed $1,300.0 of its 5.25% Notes due 2022 and $650.0 of its 6.875% Notes due 2020. The Company incurred a loss on debt extinguishment of $243.6 related to unamortized debt issue costs and fees and expenses related to the repurchase of its 5.25% and 6.875% Notes during December 2014. | ||||||||
Letters of credit outstanding under the Revolving Credit Facility aggregated $7.7 at December 31, 2014. | ||||||||
The Revolving Credit Facility contains an interest coverage ratio financial covenant (as defined therein) that must be maintained at a level greater than 3.0 to 1 and a total leverage ratio covenant (as defined therein) which limits gross debt to a 5.25 to 1 multiple of EBITDA (as defined therein). The Credit Agreement is collateralized by substantially all of the Company’s assets and contains customary affirmative covenants, negative covenants and conditions precedent for borrowings, all of which were met as of December 31, 2014. | ||||||||
Maturities of long-term debt are as follows: | ||||||||
Year Ending December 31, | ||||||||
2015 | $ | 20.6 | ||||||
2016 | 20.5 | |||||||
2017 | 20.5 | |||||||
2018 | 20.4 | |||||||
2019 | 20.4 | |||||||
Thereafter | 2,086.7 | |||||||
Total | $ | 2,189.1 | ||||||
Interest expense amounted to $130.6, $123.4 and $124.2 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET ARRANGEMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Commitments, Contingencies and Off-Balance Sheet Arrangements | 8.COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET ARRANGEMENTS | ||||
Lease Commitments – The Company finances its use of certain facilities and equipment under committed lease arrangements provided by various institutions. Since the terms of these arrangements meet the accounting definition of operating lease arrangements, the aggregate sum of future minimum lease payments is not reflected on the consolidated balance sheets. At December 31, 2014, future minimum lease payments under these arrangements approximated $203.7, of which $171.9 is related to long-term real estate leases. | |||||
Rent expense for the years ended December 31, 2014, 2013 and 2012 was $29.7, $30.2 and $35.6, respectively. Future payments under operating leases with terms greater than one year as of December 31, 2014 are as follows: | |||||
Year Ending December 31, | |||||
2015 | $ | 27.7 | |||
2016 | 26.2 | ||||
2017 | 23.7 | ||||
2018 | 21.2 | ||||
2019 | 17.8 | ||||
Thereafter | 87.1 | ||||
Total | $ | 203.7 | |||
Litigation – The Company is a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company's consolidated financial statements. | |||||
Indemnities, Commitments and Guarantees – During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include non-infringement of patents and intellectual property indemnities to the Company's customers in connection with the delivery, design, manufacture and sale of its products, indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to other parties to certain acquisition agreements. The duration of these indemnities, commitments and guarantees varies, and in certain cases, is indefinite. Many of these indemnities, commitments and guarantees provide for limitations on the maximum potential future payments the Company could be obligated to make. However, the Company is unable to estimate the maximum amount of liability related to its indemnities, commitments and guarantees because such liabilities are contingent upon the occurrence of events that are not reasonably determinable. Management believes that any liability for these indemnities, commitments and guarantees would not be material to the accompanying consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees. | |||||
Employment Agreements – The Company has employment and compensation agreements with two key officers of the Company. An agreement for one of the officers provides for the officer to earn a minimum of $0.9 per year through a three-year period ending from any date after which it is measured, adjusted annually as determined by the Company's Compensation Committee of the Board of Directors, as well as a retirement compensation payment equal to 100% of the base salary. | |||||
One other agreement provides for an officer to receive annual minimum compensation of $1.0 per year through a three-year period ending from any date after which it is measured, adjusted annually as determined by the Company's Compensation Committee of the Board of Directors, and to receive a retirement compensation payment equal to 27.5% of the officer’s average three years' annual salary (as defined). | |||||
In addition, the Company has employment agreements with certain other key members of management expiring on various dates. The Company's employment agreements generally provide for certain protections in the event of a change of control. These protections generally include the payment of severance and related benefits under certain circumstances in the event of a change of control. | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
INCOME TAXES | 9.INCOME TAXES | ||||||||||
The components of earnings from continuing operations before incomes taxes were: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Earnings/(loss) from continuing operations before income taxes | |||||||||||
United States | $ | -216.6 | $ | 65.9 | $ | -43.8 | |||||
Foreign | 226.4 | 173.6 | 130.5 | ||||||||
Earnings before income taxes | $ | 9.8 | $ | 239.5 | $ | 86.7 | |||||
Income tax (benefit) expense consists of the following: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | -83.8 | $ | 19.5 | $ | -38.1 | |||||
State | - | - | - | ||||||||
Foreign | 39.4 | 30.4 | 20.7 | ||||||||
$ | -44.4 | $ | 49.9 | $ | -17.4 | ||||||
Deferred: | |||||||||||
Federal | -6.6 | -6.1 | 22.7 | ||||||||
State | 1.6 | -1.1 | -0.7 | ||||||||
Foreign | 1.5 | 1.9 | 2.5 | ||||||||
-3.5 | -5.3 | 24.5 | |||||||||
Total income tax (benefit)/expense | $ | -47.9 | $ | 44.6 | $ | 7.1 | |||||
The difference between income tax (benefit) expense and the amount computed by applying the statutory U.S. federal income tax rate (35%) to the pre-tax earnings consists of the following: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal income tax expense | $ | 3.4 | $ | 83.8 | $ | 30.3 | |||||
U.S. state income taxes | -7.6 | 2.3 | -1.5 | ||||||||
Foreign tax rate differential | -39.9 | -30.6 | -28.6 | ||||||||
Non-deductible charges/losses and other | 8.9 | 3.0 | 8.5 | ||||||||
Research and development credit | -12.7 | -13.9 | -1.6 | ||||||||
$ | -47.9 | $ | 44.6 | $ | 7.1 | ||||||
The tax effects of temporary differences and carryforwards that give rise to deferred income tax assets and liabilities consist of the following: | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Inventory reserves | $ | 11.4 | $ | 20.8 | |||||||
Warranty reserves | 16.6 | 14.1 | |||||||||
Accrued liabilities | 27.9 | 31.0 | |||||||||
Net operating loss carryforward | 2.8 | 24.0 | |||||||||
Research and development credit carry forward | 34.4 | 7.3 | |||||||||
Alternative minimum tax credit carryforward | 5.0 | 5.0 | |||||||||
Other | 2.4 | 10.0 | |||||||||
$ | 100.5 | $ | 112.2 | ||||||||
Deferred tax liabilities: | |||||||||||
Book to tax revenue differences | -4.3 | -13.4 | |||||||||
Intangible assets | -160.9 | -168.4 | |||||||||
Depreciation | -14.9 | -34.4 | |||||||||
Other | -8.7 | - | |||||||||
Software development costs | -0.1 | -0.7 | |||||||||
-188.9 | -216.9 | ||||||||||
Deferred tax liability before valuation allowance | -88.4 | -104.7 | |||||||||
Valuation allowance | -12.9 | -31.1 | |||||||||
Net deferred tax liability | $ | -101.3 | $ | -135.8 | |||||||
The above deferred income tax asset and liability balances for 2013 include discontinued operations. The Company has included $82.6 and $6.2 of income tax receivables in other current assets in the consolidated balance sheets as of December 31, 2014 and 2013. | |||||||||||
The Company maintained a valuation allowance of $12.9 as of December 31, 2014 primarily related to state net operating losses and research credits. While the valuation allowance of $31.1 as of December 31, 2013 primarily related to foreign net operating losses. | |||||||||||
As of December 31, 2014, the Company had state and foreign net operating loss carryforwards of approximately $33.9 and $7.0, respectively. The U.S. state net operating loss carryforwards begin to expire in 2015. As of December 31, 2014, the Company had federal and U.S. state research and development tax credit carryforwards of $34.4, which expire from 2015 to 2029. | |||||||||||
The Company has not provided for any residual U.S. income taxes on the approximately $440 of earnings from its foreign subsidiaries because such earnings are intended to be indefinitely reinvested. It is not practicable to determine the amount of U.S. income and foreign withholding tax payable in the event all such foreign earnings are repatriated. | |||||||||||
In 2014, the Company recognized tax deductions of $13.7 related to stock option exercises and restricted share vestings. Pursuant to ASC 718, these deductions are not deemed realized until they reduce taxes payable. During 2014, the Company recorded a credit to additional paid-in capital of $3.5 as these deductions reduced our current year tax liability. | |||||||||||
A reconciliation of the beginning and ending amounts of gross uncertain tax positions is presented below: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of the period | $ | 47.5 | $ | 34.6 | $ | 21.7 | |||||
Additions for current year tax positions | 38.1 | 10.8 | 10.6 | ||||||||
Additions for tax positions of prior years | 1.6 | 2.1 | 2.3 | ||||||||
Impact of Spin-off | -11.2 | -- | -- | ||||||||
Currency fluctuations | -0.3 | -- | -- | ||||||||
Balance, end of the period | $ | 75.7 | $ | 47.5 | $ | 34.6 | |||||
The difference between the gross uncertain tax position of $75.7 and the liability for unrecognized tax benefits of $73.2 is due to the netting of certain items when calculating the liability for unrecognized tax benefits. This liability, if recognized, would affect the Company’s effective tax rate. It is reasonably possible that the amount of liability for unrecognized tax benefits will change in the next twelve months; however, the Company does not expect the change to have a material impact on the Company’s consolidated financial statements. | |||||||||||
With minor exceptions, the Company is currently open to audit by the tax authorities for the eight tax years ending December 31, 2014. There are currently no material income tax audits in progress. | |||||||||||
The Company classifies interest and penalties related to income tax as income tax expense. The increase in the Company’s liability for unrecognized tax benefits for interest and penalties was less than $2.0 for the year ended December 31, 2014. | |||||||||||
EMPLOYEE_RETIREMENT_PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE RETIREMENT PLANS | 10.EMPLOYEE RETIREMENT PLANS |
The Company sponsors and contributes to a qualified, defined contribution savings and investment plan, covering substantially all U.S. employees. The B/E Aerospace, Inc. Savings Plan was established pursuant to Section 401(k) of the Internal Revenue Code. Under the terms of this plan, covered employees may contribute up to 100% of their pay, limited to certain statutory maximum contributions for 2014. Participants are vested in matching contributions immediately and the matching percentage is 100% of the first 3% of employee contributions and 50% on the next 2% of employee contributions. Total expense for the plan was $13.3, $11.3 and $10.1 for the years ended December 31, 2014, 2013 and 2012. In addition, the Company contributes to the B/E Aerospace, Inc. Hourly Tax-Sheltered Retirement Plan. This plan was established pursuant to Section 401(k) of the Internal Revenue Code and covers certain U.S. union employees. Total expense for the plan was $0.4, $0.3 and $0.3 for the years ended December 31, 2014, 2013 and 2012. The Company also sponsors and contributes to a SERP for certain other employees. The B/E Aerospace, Inc. Deferred Compensation Plan was established pursuant to Section 409A of the Internal Revenue Code. The SERP is an unfunded plan maintained for the purpose of providing deferred compensation for certain employees. This plan allows certain employees to annually elect to defer a portion of their compensation, on a pre-tax basis, until their retirement. The retirement benefit to be provided is based on the amount of compensation deferred. The Company makes cash matching contributions and earnings on deferrals. Compensation expense under this program was $1.8, $1.7 and $1.6 in 2014, 2013 and 2012, respectively. The Company and its subsidiaries participate in government-sponsored programs in certain foreign countries. The Company funds these plans based on legal requirements, tax considerations, local practices and investment opportunities. | |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
STOCKHOLDERS' EQUITY | 11.STOCKHOLDERS' EQUITY | |||||||||||||||
Earnings Per Share - Basic net earnings per common share is computed using the weighted average of common shares outstanding during the year. Diluted net earnings per common share reflects the potential dilution from assumed conversion of all dilutive securities such as stock options and unvested restricted stock using the treasury stock method. When the effects of the outstanding stock options are anti-dilutive, they are not included in the calculation of diluted earnings per common share. For the years ended December 31, 2014, 2013 and 2012, securities totaling approximately 0.1, 0.1, and 0.3 million shares, respectively, were excluded from the determination of diluted earnings per common share because the effect would have been anti-dilutive. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net earnings per share for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Numerator: net earnings | $ | 104.3 | $ | 365.6 | $ | 233.7 | ||||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - Weighted average shares (in millions) | 104.0 | 103.2 | 102.2 | |||||||||||||
Effect of dilutive securities - Dilutive securities (in millions) | 0.5 | 0.7 | 0.7 | |||||||||||||
Denominator for diluted earnings per share - Adjusted weighted average shares (in millions) | 104.5 | 103.9 | 102.9 | |||||||||||||
Basic net earnings per share: | ||||||||||||||||
Net earnings per share from continuing operations | $ | 0.55 | $ | 1.89 | $ | 0.78 | ||||||||||
Net earnings per share from discontinued operations | $ | 0.45 | $ | 1.65 | $ | 1.51 | ||||||||||
Basic net earnings per share | $ | 1.00 | $ | 3.54 | $ | 2.29 | ||||||||||
Diluted net earnings per share: | ||||||||||||||||
Net earnings per share from continuing operations | $ | 0.55 | $ | 1.88 | $ | 0.77 | ||||||||||
Net earnings per share from discontinued operations | $ | 0.45 | $ | 1.64 | $ | 1.50 | ||||||||||
Diluted net earnings per share | $ | 1.00 | $ | 3.52 | $ | 2.27 | ||||||||||
Long-Term Incentive Plan - The Company has a Long-Term Incentive Plan under which the Company’s Compensation Committee may grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity based or equity related awards. | ||||||||||||||||
During 2014, 2013 and 2012, the Company granted restricted stock to certain members of the Company’s Board of Directors and management. Restricted stock grants vest over four years and are granted at the discretion of the Compensation Committee of the Board of Directors. Certain awards also vest upon attainment of performance goals. Compensation cost is recorded on a straight-line basis over the vesting term of the shares based on the grant date value using the closing trading price. Share based compensation of $28.1, $23.0 and $23.4 was recorded during 2014, 2013, and 2012 respectively. Unrecognized compensation cost related to these grants was $59.9, $53.6, and $50.4 at December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||
The following table summarizes shares of restricted stock that were granted, vested, forfeited and outstanding: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Weighted | Average | Weighted | Average | |||||||||||||
Average | Remaining | Average | Remaining | |||||||||||||
Shares | Grant Date | Vesting Period | Shares | Grant Date | Vesting Period | |||||||||||
(in thousands) | Fair Value | (in years) | (in thousands) | Fair Value | (in years) | |||||||||||
Outstanding, beginning of period | 1,248 | $ | 52.67 | 2.37 | 1,646 | $ | 37.67 | 2.52 | ||||||||
Shares granted | 642 | 77.91 | — | 342 | 83.84 | — | ||||||||||
Shares vested | -538 | 46.46 | — | -645 | 33.81 | — | ||||||||||
Shares forfeited | -96 | 50.76 | — | -95 | 37.32 | — | ||||||||||
Spin-off Make-whole grants | 444 | — | — | — | — | — | ||||||||||
Spin-off Cancellations | -155 | 67.42 | — | — | — | — | ||||||||||
Outstanding, end of period | 1,545 | 49.03 | 2.65 | 1,248 | 52.67 | 2.37 | ||||||||||
During the years ended December 31, 2014 and 2013, the Company granted 14,342 and 12,081 units of restricted stock. During the year ended December 31, 2012, the Company did not grant restricted stock units. During the year ended December 31, 2014, no restricted stock units were forfeited. As of December 31, 2014, the weighted average remaining vesting period for the 14,342 outstanding restricted stock units was 2.77 years. | ||||||||||||||||
No stock options were granted during the three years ended December 31, 2014 and no related stock compensation was recognized as all options were fully vested as of December 31, 2006. Outstanding stock options at December 31, 2014, 2013 and 2012 totaled approximately 0, 31,500 and 51,000, all of which were exercisable. During the years ended December 31, 2014, 2013 and 2012, 29,750, 19,525 and 45,040 stock options were exercised with an aggregate intrinsic value of $2.0, $1.1 and $1.7, respectively, determined as of the date of option exercise. The aggregate intrinsic value of outstanding options as of December 31, 2014 was $0. | ||||||||||||||||
EMPLOYEE_STOCK_PURCHASE_PLAN
EMPLOYEE STOCK PURCHASE PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EMPLOYEE STOCK PURCHASE PLAN | 12.EMPLOYEE STOCK PURCHASE PLAN |
The Company has established a qualified Employee Stock Purchase Plan, the terms of which allow for qualified employees (as defined in the Plan) to participate in the purchase of designated shares of the Company's common stock at a price equal to 85% of the closing price on the last business day of each semi-annual stock purchase period. The Company issued approximately 98,000, 101,000 and 136,000 shares of common stock during the years ended December 31, 2014, 2013 and 2012, respectively, pursuant to this plan at a weighted average price per share of $72.51, $61.96 and $39.44, respectively. Shares issued during 2014 were purchased prior to the KLX spin-off. | |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | 13.SEGMENT REPORTING | ||||||||||||||||
The Company is organized based on the products and services it offers. The Company’s reportable segments, which are also its operating segments, are comprised of commercial aircraft and business jet. Each segment regularly reports its results of operations and makes requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group (“CODM”). This group is comprised of the Executive Chairman of the Board of Directors, the President and Chief Executive Officer and the Vice President and Chief Financial Officer. Each operating segment has separate management teams and infrastructures dedicated to providing a full range of products and services to their commercial, business jet, military, maintenance, repair and overhaul providers, aircraft leasing and aircraft manufacturing customers. The Company has not included product line information due to the similarity of commercial aircraft segment product offerings. The Company is currently evaluating the appropriate structure and reporting classification of its business segments and reporting units in light of the Company’s spin-off of its consumables management segment and changes in members of CODM and depending on the results of this evaluation our reportable segments and reporting units may change in the future. | |||||||||||||||||
The following table presents revenues and other financial information by business segment: | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 2,058.9 | $ | 540.1 | $ | 2,599.0 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 356.3 | 50.0 | 406.3 | ||||||||||||||
KLX corporate allocations | -22.3 | ||||||||||||||||
Operating earnings | 384.0 | ||||||||||||||||
Total assets(2) | 2,162.0 | 1,037.9 | 3,199.9 | ||||||||||||||
Goodwill | 379.8 | 479.7 | 859.5 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 102.8 | 28.8 | 131.6 | ||||||||||||||
Discontinued operations | 124.0 | ||||||||||||||||
Total capital expenditures | 255.6 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 63.4 | 17.4 | 80.8 | ||||||||||||||
Discontinued operations | 61.5 | ||||||||||||||||
Total depreciation and amortization | 142.3 | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 1,784.7 | $ | 418.6 | $ | 2,203.3 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 320.3 | 69.0 | 389.3 | ||||||||||||||
KLX corporate allocations | -26.4 | ||||||||||||||||
Operating earnings | 362.9 | ||||||||||||||||
Total assets(2) | 2,016.5 | 466.9 | 2,483.4 | ||||||||||||||
Goodwill | 394.6 | 89.9 | 484.5 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 96.5 | 17.8 | 114.3 | ||||||||||||||
Discontinued operations | 40.6 | ||||||||||||||||
Total capital expenditures | 154.9 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 50.4 | 9.4 | 59.8 | ||||||||||||||
Discontinued operations | 29.8 | ||||||||||||||||
Total depreciation and amortization | 89.6 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 1,551.2 | $ | 363.1 | $ | 1,914.3 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 271.3 | 52.0 | 323.3 | ||||||||||||||
KLX corporate allocations | -30.3 | ||||||||||||||||
Operating earnings | 293.0 | ||||||||||||||||
Total assets(2) | 1,719.1 | 380.6 | 2,099.7 | ||||||||||||||
Goodwill | 388.4 | 90.0 | 478.4 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 92.5 | 10.3 | 102.8 | ||||||||||||||
Discontinued operations | 22.6 | ||||||||||||||||
Total capital expenditures | 125.4 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 42.3 | 7.7 | 50.0 | ||||||||||||||
Discontinued operations | 25.0 | ||||||||||||||||
Total depreciation and amortization | 75.0 | ||||||||||||||||
-1 | Operating earnings includes an allocation of corporate IT costs, employee benefits and general and administrative costs based on the proportion of each segment’s systems users, number of employees and sales, respectively. | ||||||||||||||||
-2 | Corporate assets (including cash and cash equivalents) of $368.3, $736.8 and $599.4 at December 31, 2014, 2013 and 2012, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations. | ||||||||||||||||
-3 | Corporate capital expenditures and depreciation and amortization have been allocated to the above segments in a manner consistent with our corporate expense allocations. | ||||||||||||||||
As part of the spin-off, we entered into certain agreements with KLX relating to transition services and IT services for a period of approximately 24 months following the distribution. In addition, we entered into an employee matters agreement and a tax sharing and indemnification agreement with KLX in connection with the spin-off. | |||||||||||||||||
Sales and cost of sales to KLX subsequent to the spin-off were immaterial to the consolidated financial statements. There were no material balances due to or due from KLX as of December 31, 2014. | |||||||||||||||||
Geographic Information | |||||||||||||||||
The Company operates principally in three geographic areas, the United States, Europe (primarily the United Kingdom) and emerging markets, such as Asia, Pacific Rim, and the Middle East. There were no significant transfers among geographic areas during these periods. | |||||||||||||||||
The following table presents revenues and operating earnings based on the originating location for the years ended December 31, 2014, 2013 and 2012. Additionally, it presents all identifiable assets related to the operations in each geographic area as of December 31, 2014 and 2013: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Revenues: | |||||||||||||||||
Domestic | $ | 1,552.8 | $ | 1,315.2 | $ | 1,195.3 | |||||||||||
Foreign | 1,046.2 | 888.1 | 719.0 | ||||||||||||||
$ | 2,599.0 | $ | 2,203.3 | $ | 1,914.3 | ||||||||||||
Operating earnings: | |||||||||||||||||
Domestic | $ | 147.2 | $ | 169.0 | $ | 186.0 | |||||||||||
Foreign | 236.8 | 193.9 | 107.0 | ||||||||||||||
$ | 384.0 | $ | 362.9 | $ | 293.0 | ||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Identifiable assets: | |||||||||||||||||
Domestic | $ | 1,996.3 | $ | 4,482.7 | |||||||||||||
Foreign | 1,203.6 | 1,213.5 | |||||||||||||||
$ | 3,199.9 | $ | 5,696.2 | ||||||||||||||
Revenues by geographic area, based on destination, for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
% of | % of | % of | |||||||||||||||
Revenues | Revenues | Revenues | Revenues | Revenues | Revenues | ||||||||||||
U.S. | $ | 859.1 | 33.1 | % | $ | 788.3 | 35.8 | % | $ | 771.7 | 40.3 | % | |||||
Europe | 684.6 | 26.3 | % | 549.3 | 24.9 | % | 465.5 | 24.3 | % | ||||||||
Asia, Pacific Rim, Middle East and other | 1,055.3 | 40.6 | % | 865.7 | 39.3 | % | 677.1 | 35.4 | % | ||||||||
$ | 2,599.0 | 100.0 | % | $ | 2,203.3 | 100.0 | % | $ | 1,914.3 | 100.0 | % | ||||||
Export revenues from the United States to customers in foreign countries amounted to $863.4, $713.6 and $586.2 in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
FAIR_VALUE_INFORMATION
FAIR VALUE INFORMATION | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14.FAIR VALUE INFORMATION |
All financial instruments are carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations. | |
Level 1 – quoted prices in active markets for identical assets and liabilities. | |
Level 2 – quoted prices for identical assets and liabilities in markets that are not active, or observable inputs other than quoted prices in active markets for identical assets and liabilities. | |
Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. | |
The carrying amounts of cash and cash equivalents (which the Company classifies as Level 1 assets), accounts receivable-trade, and accounts payable represent their respective fair values due to their short-term nature. There was no debt outstanding under either the Revolving Credit Facility as of December 31, 2014 or the 2013 revolving credit facility. During December 2014, the Company redeemed $1,300.0 of its 5.25% Notes due 2022 and $650.0 of its 6.875% Notes due 2020. As of December 31, 2013, the fair value of the Company’s senior notes, based on market prices for publicly-traded debt (which the Company classifies as Level 2 inputs), was $2,058.5. The carrying value of the Term Loan Facility approximates fair value as interest is based upon floating market rates. | |
The fair value information presented herein is based on pertinent information available to management at December 31, 2014 and 2013, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented herein. | |
SELECTED_QUARTERLY_DATA_Unaudi
SELECTED QUARTERLY DATA (Unaudited) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
SELECTED QUARTERLY DATA (Unaudited) | 15.SELECTED QUARTERLY DATA (Unaudited) | ||||||||||
Selected unaudited financial data for each quarter of the last two fiscal years is presented in the table below and has been recast to reflect the spin-off of KLX for all periods presented as discontinued operations. | |||||||||||
Year Ended December 31, 2014 | |||||||||||
First | Second | Third | Fourth | ||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||
Continuing Operations: | |||||||||||
Revenues (1) | $ | 644.7 | $ | 662.7 | $ | 653.8 | $ | 637.8 | |||
Cost of sales | 382.4 | 386.9 | 424.5 | 389.0 | |||||||
Gross profit | 262.3 | 275.8 | 229.3 | 248.8 | |||||||
Net earnings (loss) (2) | 109.0 | 108.6 | 102.2 | -215.5 | |||||||
Basic net earnings (loss) per share (3) | 1.05 | 1.05 | 0.98 | -2.07 | |||||||
Diluted net earnings (loss) per share (3) | 1.05 | 1.04 | 0.98 | -2.07 | |||||||
Year Ended December 31, 2013 | |||||||||||
First | Second | Third | Fourth | ||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||
Continuing Operations: | |||||||||||
Revenues (1) | $ | 515.4 | $ | 537.6 | $ | 570.8 | $ | 579.5 | |||
Cost of sales | 303.7 | 316.0 | 332.2 | 344.1 | |||||||
Gross profit | 211.8 | 221.6 | 238.6 | 235.3 | |||||||
Net earnings | 89.9 | 92.4 | 92.7 | 90.6 | |||||||
Basic net earnings per share (3) | 0.87 | 0.90 | 0.90 | 0.88 | |||||||
Diluted net earnings per share (3) | 0.87 | 0.89 | 0.89 | 0.87 | |||||||
-1 | Revenues from continuing operations relate to B/E Aerospace, Inc. | ||||||||||
-2 | Fourth quarter 2014 net loss reflects debt prepayment costs of $243.6. | ||||||||||
-3 | Net earnings per share are computed individually for each quarter presented. Therefore, the sum of the quarterly net earnings per share may not necessarily equal the total for the year. | ||||||||||
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ‑ VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | ||||||||||||||||
(In millions) | ||||||||||||||||
Balance | ||||||||||||||||
At | Balance | |||||||||||||||
Beginning | Write- | At End | ||||||||||||||
Of | Offs/ | Of | ||||||||||||||
Period | Expenses | Other | -1 | Disposals | Period | |||||||||||
Deducted From Assets: | ||||||||||||||||
Allowance for doubtful accounts: | ||||||||||||||||
Year ended December 31, 2014 | $ | 10.4 | $ | 9.6 | $ | -13 | $ | -1.6 | $ | 5.4 | ||||||
Year ended December 31, 2013 | 12.1 | 1.3 | 0.4 | -3.4 | 10.4 | |||||||||||
Year ended December 31, 2012 | 8.2 | 4.8 | 1.0 | -1.9 | 12.1 | |||||||||||
Reserve for obsolete inventories: | ||||||||||||||||
Year ended December 31, 2014 | $ | 64.4 | $ | 25.1 | $ | -30.3 | $ | -8.4 | $ | 50.8 | ||||||
Year ended December 31, 2013 | 63.5 | 11.2 | -- | -10.3 | 64.4 | |||||||||||
Year ended December 31, 2012 | 49.8 | 20.7 | -- | -7 | 63.5 | |||||||||||
Deferred tax asset valuation allowance: | ||||||||||||||||
Year ended December 31, 2014 | $ | 31.1 | $ | -- | $ | -18.2 | $ | -- | $ | 12.9 | ||||||
Year ended December 31, 2013 | 26.5 | -- | 4.6 | -- | 31.1 | |||||||||||
Year ended December 31, 2012 | 20.1 | -- | 6.4 | -- | 26.5 | |||||||||||
-1 | Primarily related to the spin-off of KLX and acquisitions. | |||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Organization and Basis of Presentation | Organization and Basis of Presentation – B/E Aerospace, Inc. and its wholly owned subsidiaries (the “Company”) designs, manufactures, sells and services commercial aircraft and business jet cabin interior products consisting of a broad range of seating, interior systems, including structures for food and beverage storage and preparation equipment. The Company’s principal customers are the operators of commercial and business jet aircraft, aircraft manufacturers and their suppliers. As a result, the Company’s business is directly dependent upon the conditions in the commercial airline, business jet and aircraft manufacturing industries. The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. | ||||||||||
On December 16, 2014 (the “Distribution Date”), we completed the spin-off of KLX Inc. (“KLX”) by means of the transfer of our Consumables Management Segment to KLX and the subsequent distribution to B/E Aerospace stockholders of all the outstanding shares of KLX common stock (the “Spin-Off”). We retained our commercial aircraft and business jet segments. On the Distribution Date, each of our stockholders of record as of the close of business on December 5, 2014 (the “Record Date”) received one share of KLX common stock for every two shares of our common stock held as of the Record Date. | |||||||||||
Consolidation | Consolidation – The accompanying consolidated financial statements include the accounts of B/E Aerospace, Inc. and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. | ||||||||||
Financial Statement Preparation | Financial Statement Preparation – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. | ||||||||||
Revenue Recognition | Revenue Recognition – Sales of products are recorded when the earnings process is complete. This generally occurs when the products are shipped to the customer in accordance with the contract or purchase order, risk of loss and title has passed to the customer, collectability is reasonably assured and pricing is fixed and determinable. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on the terms of the sales contract. | ||||||||||
Service revenues primarily consist of engineering activities and are recorded when services are performed. | |||||||||||
Revenues and costs under certain long-term contracts are recognized using contract accounting under the percentage-of-completion method in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-35, Construction–Type and Production–Type Contracts (“ASC 605-35”), with the majority of the contracts accounted for under the cost-to-cost method. Under the cost-to-cost method, the revenues related to the long-term contracts are recognized based on the ratio of actual costs incurred to total estimated costs to be incurred. The Company uses the units-of-delivery method to account for certain contracts. Under the units-of delivery method, revenues are recognized based on the contract price of units delivered. | |||||||||||
The percentage-of-completion method requires the use of estimates of costs to complete long-term contracts. Due to the duration of these contracts as well as the technical nature of the products involved, the estimation of these costs requires management’s judgment in connection with assumptions and projections related to the outcome of future events. Management’s assumptions include future labor performance and rates and projections relative to material and overhead costs, as well as the quantity and timing of product deliveries. The Company reevaluates its contract estimates periodically and reflects changes in estimates in the current period using the cumulative catch-up method. There were no significant changes in our contract estimates during 2014, 2013 or 2012 that resulted in material cumulative catch-up adjustments to operating earnings other than cost estimate changes resulting from the extraordinary expedited development of a new product suite to support a major customer initiative during 2014. Revenues associated with any contractual claims are recognized when it is probable that the claim will result in additional contract revenue and the amount can be reasonably estimated. For the years ended December 31, 2014, 2013 and 2012, approximately 25.5%, 25.4% and 23.9% of our revenues, respectively, were derived from contracts accounted for using percentage-of-completion accounting. Net costs and estimated earnings in excess of billings on uncompleted contracts were $93.7 and $81.9 at December 31, 2014 and 2013, respectively, and recorded as work-in-process inventory. Excess over average costs on long-term contracts accounted for using the units-of-delivery method of accounting were $320.6 and $213.4 at December 31, 2014 and 2013, respectively and recorded as work-in-process inventory. Anticipated losses on contracts are recognized in the period in which the losses become evident and determinable. Advance payments and engineering development costs on certain long-term contracts are deferred and included in revenues and research, development and engineering, respectively, when the products are shipped. | |||||||||||
Income Taxes | Income Taxes – The Company provides deferred income taxes for temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. Deferred income taxes are computed using enacted tax rates that are expected to be in effect when the temporary differences reverse. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion or the entire deferred tax asset will not be realized. The Company records uncertain tax positions within income tax expense and classifies interest and penalties related to income taxes as income tax expense. | ||||||||||
Cash Equivalents | Cash Equivalents – The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||||
Accounts Receivable | Accounts Receivable – The Company performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer's current creditworthiness, as determined by review of their current credit information. The Company continuously monitors collections and payments from its customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. The allowance for doubtful accounts at December 31, 2014 and 2013 was $5.4 and $10.4, respectively. | ||||||||||
Inventories | Inventories – The Company values inventories at the lower of cost or market, using FIFO or weighted average cost method. The Company regularly reviews inventory quantities on hand and records a provision for excess and obsolete inventory based primarily on historical demand, as well as an estimated forecast of product demand and production requirements, and the age of the inventory among other factors. Demand for the Company’s products can fluctuate significantly. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles and to inventory items with long procurement cycles, some of which are not expected to be realized within one year. | ||||||||||
Property and Equipment | Property and Equipment– Property and equipment are stated at cost and depreciated generally under the straight-line method over their estimated useful lives of one to fifty years (or the lesser of the term of the lease for leasehold improvements, as appropriate). | ||||||||||
Debt Issuance Costs | Debt Issuance Costs – Costs incurred to issue debt are deferred and amortized as interest expense over the term of the related debt. Unamortized debt issue costs are written off at the time of prepayment. | ||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets – Under FASB ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill and indefinite-lived intangible assets are reviewed at least annually for impairment. Acquired intangible assets with definite lives are amortized over their individual useful lives. Patents and other intangible assets are amortized using the straight-line method over periods ranging from three to thirty-four years. | ||||||||||
The Company has five reporting units, which were determined based on the guidelines contained in FASB ASC Topic 350, Subtopic 20, Section 35. Each reporting unit represents either (a) an operating segment (which is also a reportable segment) or (b) a component of an operating segment, which constitutes a business, for which there is discrete financial information available that is regularly reviewed by segment management. | |||||||||||
On at least an annual basis, management assesses whether there has been any impairment in the value of goodwill by first comparing the fair value to the net carrying value of reporting units. If the carrying value exceeds its estimated fair value, a second step is performed to compute the amount of the impairment. An impairment loss is recognized if the implied fair value of the asset being tested is less than its carrying value. In this event, the asset is written down accordingly. The fair values of reporting units for goodwill impairment testing are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. The sum of the fair values of the reporting units are evaluated based on market capitalization determined using average share prices within a reasonable period of time near the selected testing date (calendar year-end), plus an estimated control premium plus the fair value of the Company’s debt obligations. | |||||||||||
Indefinite-lived intangible assets are tested at least annually for impairment. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. The fair values of indefinite-lived intangible assets are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. For the years ended December 31, 2014, 2013 and 2012, the Company’s annual impairment testing yielded no impairments of goodwill or indefinite-lived intangible assets. All indefinite-lived intangible assets were included in the spin-off of KLX. | |||||||||||
Long-Lived Assets | Long-Lived Assets – The Company assesses potential impairments to its long-lived assets when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the undiscounted cash flows expected to be generated by an asset (or group of assets) is less than its carrying amount. Any required impairment loss is measured as the amount by which the asset's carrying value exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. There were no impairments of long lived assets in 2014, 2013, and 2012. | ||||||||||
Product Warranty Costs | Product Warranty Costs – Estimated costs related to product warranties are accrued at the time products are sold. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company's stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty. Estimated warranty costs are included in the accrued liabilities on the consolidated balance sheet. The following table provides a reconciliation of the activity related to the Company's accrued warranty expense: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 67.0 | $ | 63.2 | $ | 51.5 | |||||
Provision for warranty expense | 41.9 | 42.6 | 37.5 | ||||||||
Settlements of warranty claims | -33.5 | -38.8 | -25.8 | ||||||||
Balance at end of period | $ | 75.4 | $ | 67.0 | $ | 63.2 | |||||
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation – The Company accounts for share-based compensation arrangements in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation (“ASC 718”), whereby share-based compensation cost is measured on the date of grant, based on the fair value of the award, and is recognized over the requisite service period. | ||||||||||
Compensation cost recognized during the three years ended December 31, 2014 related to grants of restricted stock and restricted stock units. No compensation cost related to stock options was recognized during those periods as no options were granted during the three year period ended December 31, 2014 and all options were vested as of December 31, 2006. | |||||||||||
The Company has established a qualified Employee Stock Purchase Plan. The Plan allows qualified employees (as defined in the plan) to participate in the purchase of designated shares of the Company's common stock at a price equal to 85% of the closing price for each semi-annual stock purchase period. The fair value of employee purchase rights represents the difference between the closing price of the Company’s shares on the date of purchase and the purchase price of the shares. The value of the rights granted during the years ended December 31, 2014, 2013 and 2012 was $1.3, $1.1 and $0.9, respectively. | |||||||||||
Treasury Stock | Treasury Stock – The Company may periodically repurchase shares of its common stock from employees for the satisfaction of their individual payroll tax withholding upon vesting of restricted stock and restricted stock units in connection with the Company’s Long Term Incentive Plan. The Company’s repurchases of common stock are recorded at the average cost of the common stock. The Company repurchased 99,911, 41,376 and 60,266 shares of its common stock for $7.0, $3.3 and $2.6, respectively, during the years ended December 31, 2014, 2013 and 2012 respectively. | ||||||||||
Research and Development | Research and Development – Research and development expenditures are expensed as incurred. | ||||||||||
Foreign Currency Translation | Foreign Currency Translation – The assets and liabilities of subsidiaries located outside the United States are translated into U.S. dollars at the rates of exchange in effect at the balance sheet dates. Revenue and expense items are translated at the average exchange rates prevailing during the period. Gains and losses resulting from foreign currency transactions are recognized currently in income, and those resulting from translation of financial statements are accumulated as a separate component of stockholders’ equity. The Company's European subsidiaries primarily utilize the British pound or the Euro as their local functional currency. | ||||||||||
Concentration of Risk | Concentration of Risk – The Company’s products and services are primarily concentrated within the aerospace industry with customers consisting primarily of commercial airlines, a wide variety of business jet customers and commercial aircraft manufacturers. In addition to the overall business risks associated with the Company’s concentration within the airline and aerospace industries, the Company is exposed to a concentration of collection risk on credit extended to commercial airlines and commercial aircraft manufacturers. The Company’s management performs ongoing credit evaluations on the financial condition of all customers it has extended credit to and maintains allowances for uncollectible accounts receivable based on expected collectability. Credit losses have historically been within management's expectations and the provisions established. | ||||||||||
Significant customers change from year to year depending on the level of refurbishment activity and/or the level of new aircraft purchases by such customers. During the years ended December 31, 2014 and 2013, The Boeing Company accounted for 12% and 12%, respectively, of the Company’s consolidated revenues. No other individual customer accounted for more than 10% of the Company’s consolidated revenues during the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||
In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-12, Compensation-Stock Compensation, which updated the guidance in ASC Topic 718, Compensation – Stock Compensation. The update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updated the guidance in ASC Topic 606, Revenue Recognition. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. 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. The Company is currently evaluating the impact this guidance will have on its consolidated financial condition, results of operations, cash flows and disclosures and is currently unable to estimate the impact of adopting this guidance. | |||||||||||
In April 2014, FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment, which updated the guidance in ASC Topic 360, Property, Plant and Equipment. The updated guidance is effective prospectively for years beginning on or after December 15, 2014, with early application permitted. The amendments in this update change the requirements for reporting discontinued operations in Subtopic 205-20. Under this updated guidance, a discontinued operation will include a disposal of a major part of an entity’s operations and financial results such as a separate major line of business or a separate major geographical area of operations. The guidance raises the threshold to be a major operation but no longer precludes discontinued operations presentation where there is significant continuing involvement or cash flows with a disposed component of an entity. The guidance expands disclosures to include cash flows where there is significant continuing involvement with a discontinued operation and the pre-tax profit or loss of disposal transactions not reported as discontinued operations. The adoption of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which updated the guidance in ASC Topic 740, Income Taxes. The update was effective for interim periods beginning on or after December 15, 2013, and generally provides guidance for the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The guidance requires an unrecognized tax benefit to be presented as a decrease in a deferred tax asset where a net operating loss, a similar tax loss, or a tax credit carryforward exists and certain criteria are met. The adoption of ASU 2013-11 did not have a material impact on the Company’s consolidated financial statements. | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Reconciliation of Activity Related to Company's Accrued Warranty Expense | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at beginning of period | $ | 67.0 | $ | 63.2 | $ | 51.5 | |||||
Provision for warranty expense | 41.9 | 42.6 | 37.5 | ||||||||
Settlements of warranty claims | -33.5 | -38.8 | -25.8 | ||||||||
Balance at end of period | $ | 75.4 | $ | 67.0 | $ | 63.2 | |||||
DIVESTITURES_AND_BUSINESS_COMB1
DIVESTITURES AND BUSINESS COMBINATIONS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Summary of Results of Operations for KLX Inc. | ||||||||||||||||||
For the Period January 1, 2014 | For the Years Ended December 31, | |||||||||||||||||
through December 16, 2014 | 2013 | 2012 | ||||||||||||||||
Revenues | $ | 1,611.2 | $ | 1,280.4 | $ | 1,171.0 | ||||||||||||
Earnings before income taxes | $ | 207.9 | $ | 267.5 | $ | 246.8 | ||||||||||||
Provision for income taxes | 161.3 | 96.8 | 92.7 | |||||||||||||||
Earnings from discontinued operations, net of income taxes | $ | 46.6 | $ | 170.7 | $ | 154.1 | ||||||||||||
Schedule of Spinoff Costs | On December 16, 2014, we divested the following assets and liabilities in connection with the Spin-Off: | |||||||||||||||||
Assets | ||||||||||||||||||
Cash and cash equivalents | $ | 460.0 | ||||||||||||||||
Accounts receivable | 310.8 | |||||||||||||||||
Inventories | 1,303.4 | |||||||||||||||||
Deferred income taxes | 40.2 | |||||||||||||||||
Other current assets | 52.3 | |||||||||||||||||
Property and equipment | 323.1 | |||||||||||||||||
Goodwill | 1,370.4 | |||||||||||||||||
Identifiable intangible assets | 430.7 | |||||||||||||||||
Other assets | 119.1 | |||||||||||||||||
4,410.0 | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Accounts payable | 167.1 | |||||||||||||||||
Accrued liabilities | 182.4 | |||||||||||||||||
Long-term debt | 1,200.0 | |||||||||||||||||
Deferred income taxes | 121.1 | |||||||||||||||||
Other non-current liabilities | 112.0 | |||||||||||||||||
1,782.6 | ||||||||||||||||||
Net assets divested in the Spin-Off | $ | 2,627.4 | ||||||||||||||||
Energy Services | ||||||||||||||||||
Preliminary Estimates of Fair Values of Assets Acquired and Liabilities Assumed | ||||||||||||||||||
Other 2014 | ||||||||||||||||||
Wildcat | Vision | Cornell | acquisitions | 2014 | 2013 | |||||||||||||
Accounts receivable-trade | $ | 0.4 | $ | 10.8 | $ | 10.5 | $ | 15.1 | $ | 36.8 | $ | 14.8 | ||||||
Inventories | 1.3 | -- | -- | 0.4 | 1.7 | 3.9 | ||||||||||||
Other current and non-current assets | -- | 2.4 | -- | 0.1 | 2.5 | 0.2 | ||||||||||||
Property and equipment | 25.7 | 44.1 | 28.5 | 40.3 | 138.6 | 35.5 | ||||||||||||
Goodwill | 88.3 | 89.9 | 66.6 | 61.1 | 305.9 | 28.0 | ||||||||||||
Identified intangibles | 37.7 | 30.0 | 24.5 | 39.0 | 131.2 | 42.6 | ||||||||||||
Accounts payable | -- | -1.5 | -0.7 | -4.3 | -6.5 | -10 | ||||||||||||
Other current and non-current liabilities | -- | -35 | -57.2 | -4.2 | -96.4 | -1 | ||||||||||||
Total purchase price | $ | 153.4 | $ | 140.7 | $ | 72.2 | $ | 147.5 | $ | 513.8 | $ | 114.0 | ||||||
Manufacturing | ||||||||||||||||||
Consolidated Unaudited Pro Forma Revenues, Net Earnings and Diluted Net Earnings Per Share | ||||||||||||||||||
Domestic | Foreign | |||||||||||||||||
Accounts receivable-trade | $ | 12.5 | $ | 12.8 | ||||||||||||||
Inventories | 13.2 | 7.6 | ||||||||||||||||
Other current and non-current assets | 0.9 | 0.5 | ||||||||||||||||
Property and equipment | 6.5 | 7.1 | ||||||||||||||||
Goodwill | 197.4 | 219.7 | ||||||||||||||||
Identified intangibles | 46.8 | 52.5 | ||||||||||||||||
Accounts payable | -4.2 | -3.7 | ||||||||||||||||
Other current and non-current liabilities | -16.8 | -21.2 | ||||||||||||||||
Total purchase price | $ | 256.3 | $ | 275.3 | ||||||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased materials and component parts | $ | 309.1 | $ | 243.4 | ||||
Work-in-process | 605.9 | 484.0 | ||||||
Finished goods | 61.0 | 1,280.8 | ||||||
Inventory reserves | -50.8 | -64.4 | ||||||
$ | 925.2 | $ | 1,943.8 | |||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property Plant And Equipment [Abstract] | ||||||||||
Property and Equipment | ||||||||||
Useful Life | December 31, | December 31, | ||||||||
(Years) | 2014 | 2013 | ||||||||
Buildings and improvements | 1 - 50 | $ | 139.0 | $ | 123.0 | |||||
Machinery | 1 - 20 | 163.8 | 197.8 | |||||||
Tooling | 1 - 15 | 97.8 | 84.3 | |||||||
Computer equipment and software | 1 - 10 | 280.5 | 276.9 | |||||||
Furniture and equipment | 1 - 20 | 28.6 | 32.7 | |||||||
709.7 | 714.7 | |||||||||
Less accumulated depreciation | -312 | -289 | ||||||||
$ | 397.7 | $ | 425.7 | |||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||
Intangible Assets by Major Asset Class | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Net | Net | |||||||||||||||||||||
Useful Life | Original | Accumulated | Book | Original | Accumulated | Book | ||||||||||||||||
(Years) | Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||||
Customer contracts and relationships | 8-30 | $ | 100.0 | $ | 13.4 | $ | 86.6 | $ | 424.0 | $ | 85.7 | $ | 338.3 | |||||||||
Acquired technologies and other | 5-34 | 176.2 | 81.0 | 95.2 | 153.8 | 76.6 | 77.2 | |||||||||||||||
Trademarks and patents | 3-20 | 25.2 | 16.5 | 8.7 | 23.0 | 15.4 | 7.6 | |||||||||||||||
Covenants not to compete | 4-5 | 11.2 | 1.7 | 9.5 | 5.5 | 1.7 | 3.8 | |||||||||||||||
Trade names | 15-indefinite | 19.9 | 1.7 | 18.2 | 45.7 | 0.4 | 45.3 | |||||||||||||||
$ | 332.5 | $ | 114.3 | $ | 218.2 | $ | 652.0 | $ | 179.8 | $ | 472.2 | |||||||||||
Goodwill by Reportable Segment | ||||||||||||||||||||||
Commercial | Business | |||||||||||||||||||||
Aircraft | KLX | Jet | Total | |||||||||||||||||||
Balance as of December 31, 2012 | $ | 388.4 | $ | 1,005.8 | $ | 90.0 | $ | 1,484.2 | ||||||||||||||
Acquisitions | - | 58.7 | - | 58.7 | ||||||||||||||||||
Effect of foreign currency translation | 6.2 | 22.0 | -0.1 | 28.1 | ||||||||||||||||||
Balance as of December 31, 2013 | 394.6 | 1,086.5 | 89.9 | 1,571.0 | ||||||||||||||||||
Acquisitions | - | 305.9 | 417.1 | 723.0 | ||||||||||||||||||
Spin-off of KLX | - | -1,370.40 | - | -1,370.40 | ||||||||||||||||||
Effect of foreign currency translation and other | -14.8 | -22 | -27.3 | -64.1 | ||||||||||||||||||
Balance as of December 31, 2014 | $ | 379.8 | $ | - | $ | 479.7 | $ | 859.5 | ||||||||||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables And Accruals [Abstract] | ||||||||
Accrued Liabilities | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued salaries, vacation and related benefits | $ | 83.4 | $ | 103.2 | ||||
Accrued product warranties | 75.4 | 67.0 | ||||||
Accrued interest | 3.6 | 28.2 | ||||||
Income taxes payable | 14.6 | 28.7 | ||||||
Deferred revenue | 112.9 | 152.9 | ||||||
Other accrued liabilities | 195.1 | 141.2 | ||||||
$ | 485.0 | $ | 521.2 | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
5.25% Notes | $ | - | $ | 1,313.7 | ||||
6.875% Notes | - | 645.7 | ||||||
Term Loan Facility | 2,189.1 | - | ||||||
2,189.1 | 1,959.4 | |||||||
Less current portion of long-term debt | 20.6 | - | ||||||
$ | 2,168.5 | $ | 1,959.4 | |||||
Maturities of Long-Term Debt | ||||||||
Year Ending December 31, | ||||||||
2015 | $ | 20.6 | ||||||
2016 | 20.5 | |||||||
2017 | 20.5 | |||||||
2018 | 20.4 | |||||||
2019 | 20.4 | |||||||
Thereafter | 2,086.7 | |||||||
Total | $ | 2,189.1 | ||||||
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET ARRANGEMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments And Contingencies Disclosure [Abstract] | |||||
Future Payments under Operating Leases with Terms Greater Than One Year | |||||
Year Ending December 31, | |||||
2015 | $ | 27.7 | |||
2016 | 26.2 | ||||
2017 | 23.7 | ||||
2018 | 21.2 | ||||
2019 | 17.8 | ||||
Thereafter | 87.1 | ||||
Total | $ | 203.7 | |||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Components of Earnings Before Incomes Taxes | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Earnings/(loss) from continuing operations before income taxes | |||||||||||
United States | $ | -216.6 | $ | 65.9 | $ | -43.8 | |||||
Foreign | 226.4 | 173.6 | 130.5 | ||||||||
Earnings before income taxes | $ | 9.8 | $ | 239.5 | $ | 86.7 | |||||
Components of Income Tax Expense | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | -83.8 | $ | 19.5 | $ | -38.1 | |||||
State | - | - | - | ||||||||
Foreign | 39.4 | 30.4 | 20.7 | ||||||||
$ | -44.4 | $ | 49.9 | $ | -17.4 | ||||||
Deferred: | |||||||||||
Federal | -6.6 | -6.1 | 22.7 | ||||||||
State | 1.6 | -1.1 | -0.7 | ||||||||
Foreign | 1.5 | 1.9 | 2.5 | ||||||||
-3.5 | -5.3 | 24.5 | |||||||||
Total income tax (benefit)/expense | $ | -47.9 | $ | 44.6 | $ | 7.1 | |||||
Difference Between Income Tax Expense and Amount Computed by Applying Statutory United States Federal Income Tax Rate to Pre-Tax Earnings | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal income tax expense | $ | 3.4 | $ | 83.8 | $ | 30.3 | |||||
U.S. state income taxes | -7.6 | 2.3 | -1.5 | ||||||||
Foreign tax rate differential | -39.9 | -30.6 | -28.6 | ||||||||
Non-deductible charges/losses and other | 8.9 | 3.0 | 8.5 | ||||||||
Research and development credit | -12.7 | -13.9 | -1.6 | ||||||||
$ | -47.9 | $ | 44.6 | $ | 7.1 | ||||||
Tax Effects of Temporary Differences and Carryforwards that Give Rise to Deferred Income Tax Assets and Liabilities | |||||||||||
December 31, | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets: | |||||||||||
Inventory reserves | $ | 11.4 | $ | 20.8 | |||||||
Warranty reserves | 16.6 | 14.1 | |||||||||
Accrued liabilities | 27.9 | 31.0 | |||||||||
Net operating loss carryforward | 2.8 | 24.0 | |||||||||
Research and development credit carry forward | 34.4 | 7.3 | |||||||||
Alternative minimum tax credit carryforward | 5.0 | 5.0 | |||||||||
Other | 2.4 | 10.0 | |||||||||
$ | 100.5 | $ | 112.2 | ||||||||
Deferred tax liabilities: | |||||||||||
Book to tax revenue differences | -4.3 | -13.4 | |||||||||
Intangible assets | -160.9 | -168.4 | |||||||||
Depreciation | -14.9 | -34.4 | |||||||||
Other | -8.7 | - | |||||||||
Software development costs | -0.1 | -0.7 | |||||||||
-188.9 | -216.9 | ||||||||||
Deferred tax liability before valuation allowance | -88.4 | -104.7 | |||||||||
Valuation allowance | -12.9 | -31.1 | |||||||||
Net deferred tax liability | $ | -101.3 | $ | -135.8 | |||||||
Reconciliation of Beginning and Ending Amounts of Gross Uncertain Tax Positions | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance, beginning of the period | $ | 47.5 | $ | 34.6 | $ | 21.7 | |||||
Additions for current year tax positions | 38.1 | 10.8 | 10.6 | ||||||||
Additions for tax positions of prior years | 1.6 | 2.1 | 2.3 | ||||||||
Impact of Spin-off | -11.2 | -- | -- | ||||||||
Currency fluctuations | -0.3 | -- | -- | ||||||||
Balance, end of the period | $ | 75.7 | $ | 47.5 | $ | 34.6 | |||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Computations of Basic and Diluted Earnings Per Share | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Numerator: net earnings | $ | 104.3 | $ | 365.6 | $ | 233.7 | ||||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - Weighted average shares (in millions) | 104.0 | 103.2 | 102.2 | |||||||||||||
Effect of dilutive securities - Dilutive securities (in millions) | 0.5 | 0.7 | 0.7 | |||||||||||||
Denominator for diluted earnings per share - Adjusted weighted average shares (in millions) | 104.5 | 103.9 | 102.9 | |||||||||||||
Basic net earnings per share: | ||||||||||||||||
Net earnings per share from continuing operations | $ | 0.55 | $ | 1.89 | $ | 0.78 | ||||||||||
Net earnings per share from discontinued operations | $ | 0.45 | $ | 1.65 | $ | 1.51 | ||||||||||
Basic net earnings per share | $ | 1.00 | $ | 3.54 | $ | 2.29 | ||||||||||
Diluted net earnings per share: | ||||||||||||||||
Net earnings per share from continuing operations | $ | 0.55 | $ | 1.88 | $ | 0.77 | ||||||||||
Net earnings per share from discontinued operations | $ | 0.45 | $ | 1.64 | $ | 1.50 | ||||||||||
Diluted net earnings per share | $ | 1.00 | $ | 3.52 | $ | 2.27 | ||||||||||
Restricted Stock Shares Granted, Vested, Forfeited and Outstanding | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Weighted | Average | Weighted | Average | |||||||||||||
Average | Remaining | Average | Remaining | |||||||||||||
Shares | Grant Date | Vesting Period | Shares | Grant Date | Vesting Period | |||||||||||
(in thousands) | Fair Value | (in years) | (in thousands) | Fair Value | (in years) | |||||||||||
Outstanding, beginning of period | 1,248 | $ | 52.67 | 2.37 | 1,646 | $ | 37.67 | 2.52 | ||||||||
Shares granted | 642 | 77.91 | — | 342 | 83.84 | — | ||||||||||
Shares vested | -538 | 46.46 | — | -645 | 33.81 | — | ||||||||||
Shares forfeited | -96 | 50.76 | — | -95 | 37.32 | — | ||||||||||
Spin-off Make-whole grants | 444 | — | — | — | — | — | ||||||||||
Spin-off Cancellations | -155 | 67.42 | — | — | — | — | ||||||||||
Outstanding, end of period | 1,545 | 49.03 | 2.65 | 1,248 | 52.67 | 2.37 | ||||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Revenues and Operating Earnings by Reportable Segment | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 2,058.9 | $ | 540.1 | $ | 2,599.0 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 356.3 | 50.0 | 406.3 | ||||||||||||||
KLX corporate allocations | -22.3 | ||||||||||||||||
Operating earnings | 384.0 | ||||||||||||||||
Total assets(2) | 2,162.0 | 1,037.9 | 3,199.9 | ||||||||||||||
Goodwill | 379.8 | 479.7 | 859.5 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 102.8 | 28.8 | 131.6 | ||||||||||||||
Discontinued operations | 124.0 | ||||||||||||||||
Total capital expenditures | 255.6 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 63.4 | 17.4 | 80.8 | ||||||||||||||
Discontinued operations | 61.5 | ||||||||||||||||
Total depreciation and amortization | 142.3 | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 1,784.7 | $ | 418.6 | $ | 2,203.3 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 320.3 | 69.0 | 389.3 | ||||||||||||||
KLX corporate allocations | -26.4 | ||||||||||||||||
Operating earnings | 362.9 | ||||||||||||||||
Total assets(2) | 2,016.5 | 466.9 | 2,483.4 | ||||||||||||||
Goodwill | 394.6 | 89.9 | 484.5 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 96.5 | 17.8 | 114.3 | ||||||||||||||
Discontinued operations | 40.6 | ||||||||||||||||
Total capital expenditures | 154.9 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 50.4 | 9.4 | 59.8 | ||||||||||||||
Discontinued operations | 29.8 | ||||||||||||||||
Total depreciation and amortization | 89.6 | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Commercial | Business | ||||||||||||||||
Aircraft | Jet | Consolidated | |||||||||||||||
Revenues | $ | 1,551.2 | $ | 363.1 | $ | 1,914.3 | |||||||||||
Operating earnings excluding KLX corporate allocations (1) | 271.3 | 52.0 | 323.3 | ||||||||||||||
KLX corporate allocations | -30.3 | ||||||||||||||||
Operating earnings | 293.0 | ||||||||||||||||
Total assets(2) | 1,719.1 | 380.6 | 2,099.7 | ||||||||||||||
Goodwill | 388.4 | 90.0 | 478.4 | ||||||||||||||
Capital expenditures(3) | |||||||||||||||||
Continuing operations | 92.5 | 10.3 | 102.8 | ||||||||||||||
Discontinued operations | 22.6 | ||||||||||||||||
Total capital expenditures | 125.4 | ||||||||||||||||
Depreciation and amortization(3) | |||||||||||||||||
Continuing operations | 42.3 | 7.7 | 50.0 | ||||||||||||||
Discontinued operations | 25.0 | ||||||||||||||||
Total depreciation and amortization | 75.0 | ||||||||||||||||
-1 | Operating earnings includes an allocation of corporate IT costs, employee benefits and general and administrative costs based on the proportion of each segment’s systems users, number of employees and sales, respectively. | ||||||||||||||||
-2 | Corporate assets (including cash and cash equivalents) of $368.3, $736.8 and $599.4 at December 31, 2014, 2013 and 2012, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations. | ||||||||||||||||
-3 | Corporate capital expenditures and depreciation and amortization have been allocated to the above segments in a manner consistent with our corporate expense allocations. | ||||||||||||||||
As part of the spin-off, we entered into certain agreements with KLX relating to transition services and IT services for a period of approximately 24 months following the distribution. In addition, we entered into an employee matters agreement and a tax sharing and indemnification agreement with KLX in connection with the spin-off. | |||||||||||||||||
Sales and cost of sales to KLX subsequent to the spin-off were immaterial to the consolidated financial statements. There were no material balances due to or due from KLX as of December 31, 2014. | |||||||||||||||||
Total Assets by Reportable Segment | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Revenues: | |||||||||||||||||
Domestic | $ | 1,552.8 | $ | 1,315.2 | $ | 1,195.3 | |||||||||||
Foreign | 1,046.2 | 888.1 | 719.0 | ||||||||||||||
$ | 2,599.0 | $ | 2,203.3 | $ | 1,914.3 | ||||||||||||
Operating earnings: | |||||||||||||||||
Domestic | $ | 147.2 | $ | 169.0 | $ | 186.0 | |||||||||||
Foreign | 236.8 | 193.9 | 107.0 | ||||||||||||||
$ | 384.0 | $ | 362.9 | $ | 293.0 | ||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Identifiable assets: | |||||||||||||||||
Domestic | $ | 1,996.3 | $ | 4,482.7 | |||||||||||||
Foreign | 1,203.6 | 1,213.5 | |||||||||||||||
$ | 3,199.9 | $ | 5,696.2 | ||||||||||||||
Revenues by Geographic Area Based on Destination | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
% of | % of | % of | |||||||||||||||
Revenues | Revenues | Revenues | Revenues | Revenues | Revenues | ||||||||||||
U.S. | $ | 859.1 | 33.1 | % | $ | 788.3 | 35.8 | % | $ | 771.7 | 40.3 | % | |||||
Europe | 684.6 | 26.3 | % | 549.3 | 24.9 | % | 465.5 | 24.3 | % | ||||||||
Asia, Pacific Rim, Middle East and other | 1,055.3 | 40.6 | % | 865.7 | 39.3 | % | 677.1 | 35.4 | % | ||||||||
$ | 2,599.0 | 100.0 | % | $ | 2,203.3 | 100.0 | % | $ | 1,914.3 | 100.0 | % | ||||||
SELECTED_QUARTERLY_DATA_Unaudi1
SELECTED QUARTERLY DATA (Unaudited) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Quarterly Financial Data | |||||||||||
Year Ended December 31, 2014 | |||||||||||
First | Second | Third | Fourth | ||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||
Continuing Operations: | |||||||||||
Revenues (1) | $ | 644.7 | $ | 662.7 | $ | 653.8 | $ | 637.8 | |||
Cost of sales | 382.4 | 386.9 | 424.5 | 389.0 | |||||||
Gross profit | 262.3 | 275.8 | 229.3 | 248.8 | |||||||
Net earnings (loss) (2) | 109.0 | 108.6 | 102.2 | -215.5 | |||||||
Basic net earnings (loss) per share (3) | 1.05 | 1.05 | 0.98 | -2.07 | |||||||
Diluted net earnings (loss) per share (3) | 1.05 | 1.04 | 0.98 | -2.07 | |||||||
Year Ended December 31, 2013 | |||||||||||
First | Second | Third | Fourth | ||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||
Continuing Operations: | |||||||||||
Revenues (1) | $ | 515.4 | $ | 537.6 | $ | 570.8 | $ | 579.5 | |||
Cost of sales | 303.7 | 316.0 | 332.2 | 344.1 | |||||||
Gross profit | 211.8 | 221.6 | 238.6 | 235.3 | |||||||
Net earnings | 89.9 | 92.4 | 92.7 | 90.6 | |||||||
Basic net earnings per share (3) | 0.87 | 0.90 | 0.90 | 0.88 | |||||||
Diluted net earnings per share (3) | 0.87 | 0.89 | 0.89 | 0.87 | |||||||
-1 | Revenues from continuing operations relate to B/E Aerospace, Inc. | ||||||||||
-2 | Fourth quarter 2014 net loss reflects debt prepayment costs of $243.6. | ||||||||||
Net earnings per share are computed individually for each quarter presented. Therefore, the sum of the quarterly net earnings per share may not necessarily equal the total for the year | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
entity | |||
Significant Accounting Policies [Line Items] | |||
Revenues derived from percentage of completion accounting, percentage | 25.50% | 25.40% | 23.90% |
Costs and estimated earnings in excess of billings on uncompleted contracts | $93.70 | $81.90 | |
Excess over average costs on long-term contracts | 320.6 | 213.4 | |
Accounts receivable - trade, allowance for doubtful accounts | 5.4 | 10.4 | |
Number of reportable units | 5 | ||
Percentage of discounted closing price for Employee Stock Purchase Plan | 85.00% | ||
Employee Stock Purchase Plan, rights granted | 1.3 | 1.1 | 0.9 |
Stock compensation | 0 | ||
Purchase of treasury stock, share | 99,911 | 41,376 | 60,266 |
Purchase of treasury stock | $7 | $3.30 | $2.60 |
Boeing | Sales Revenue, Net | |||
Significant Accounting Policies [Line Items] | |||
Percentage of net sales | 12.00% | 12.00% | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 1 year | ||
Useful life (years) | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Useful life (years) | 34 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Balance at beginning of period | $67 | $63.20 | $51.50 |
Provision for warranty expense | 41.9 | 42.6 | 37.5 |
Settlements of warranty claims | -33.5 | -38.8 | -25.8 |
Balance at end of period | $75.40 | $67 | $63.20 |
DIVESTITURES_AND_BUSINESS_COMB2
DIVESTITURES AND BUSINESS COMBINATIONS (Details) (Spinoff [Member], KLX Inc [Member], USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 16, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Spinoff [Member] | KLX Inc [Member] | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Ratio of shares of common stock to be distributed to shareholders | 0.5 | |||
Revenues | $1,611.20 | $1,280.40 | $1,171 | |
Earnings before income taxes | 207.9 | 267.5 | 246.8 | |
Provision for income taxes | 161.3 | 96.8 | 92.7 | |
Earnings from discontinued operations, net of income taxes | $46.60 | $170.70 | $154.10 |
DIVESTITURES_AND_BUSINESS_COMB3
DIVESTITURES AND BUSINESS COMBINATIONS (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 16, 2014 |
Transtiional services | ||
Term of transition services maximum | 24 months | |
Information technology services extension option term | 1 year | |
Spinoff [Member] | KLX Inc [Member] | ||
Disposal Group, Including Discontinued Operation, Assets [Abstract] | ||
Cash and cash equivalents | $460 | |
Accounts receivable | 310.8 | |
Inventories | 1,303.40 | |
Deferred income taxes | 40.2 | |
Other current assets | 52.3 | |
Property and equipment | 323.1 | |
Goodwill | 1,370.40 | |
Identifiable intangible assets | 430.7 | |
Other assets | 119.1 | |
Assets | 4,410 | |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | ||
Accounts payable | 167.1 | |
Accrued liabilities | 182.4 | |
Long-term debt | 1,200 | |
Deferred income taxes | 121.1 | |
Other non-current liabilities | 112 | |
Liabilities | 1,782.60 | |
Net assets divested in the Spin-Off | $2,627.40 |
DIVESTITURES_AND_BUSINESS_COMB4
DIVESTITURES AND BUSINESS COMBINATIONS (Details 3) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Apr. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Jan. 31, 2014 | Apr. 30, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquisitions [Line Items] | ||||||||
Goodwill | $859.50 | $1,571 | $1,484.20 | |||||
2013 Acquisitions | ||||||||
Acquisitions [Line Items] | ||||||||
Purchase price fair value of identifiable assets acquired | 114 | |||||||
Identified intangibles | 42.6 | |||||||
Goodwill | 28 | |||||||
Vision Oil Tools, LLC | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 140 | |||||||
Additional cash payment for business acquisition | 35 | 0.7 | ||||||
Purchase price fair value of identifiable assets acquired | 140.7 | |||||||
Identified intangibles | 30 | |||||||
Goodwill | 89.9 | |||||||
Eagle Ford and Permian basins | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 70.7 | |||||||
Additional cash payment for business acquisition | 57.2 | |||||||
2014 Acquisitions | ||||||||
Acquisitions [Line Items] | ||||||||
Purchase price fair value of identifiable assets acquired | 513.8 | |||||||
Identified intangibles | 131.2 | |||||||
Goodwill | 305.9 | |||||||
Cornell | ||||||||
Acquisitions [Line Items] | ||||||||
Additional cash payment for business acquisition | 1.5 | |||||||
Purchase price fair value of identifiable assets acquired | 72.2 | |||||||
Identified intangibles | 24.5 | |||||||
Goodwill | 66.6 | |||||||
LT Energy Services | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 102.5 | |||||||
Marcellus/Utica basin | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 45 | |||||||
Wildcat Wireline LLC | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 153.4 | |||||||
Purchase price fair value of identifiable assets acquired | 153.4 | |||||||
Identified intangibles | 37.7 | |||||||
Goodwill | 88.3 | |||||||
Blue Dot/Bulldog Frac Rentals | ||||||||
Acquisitions [Line Items] | ||||||||
Cash paid for business acquisition | 114 | |||||||
Purchase price fair value of identifiable assets acquired | 70.6 | |||||||
Identified intangibles | 42.6 | |||||||
Goodwill | 28 | |||||||
Energy Services | ||||||||
Acquisitions [Line Items] | ||||||||
Purchase price fair value of identifiable assets acquired | 437.1 | |||||||
Identified intangibles | 131.2 | |||||||
Goodwill | $305.90 | |||||||
Energy Services | Covenants not to compete | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 5 years | |||||||
Minimum | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 3 years | |||||||
Minimum | Customer contracts and relationships | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 8 years | |||||||
Minimum | Covenants not to compete | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 4 years | |||||||
Minimum | Energy Services | Customer contracts and relationships | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 11 years | |||||||
Maximum | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 34 years | |||||||
Maximum | Customer contracts and relationships | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 30 years | |||||||
Maximum | Covenants not to compete | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 5 years | |||||||
Maximum | Blue Dot/Bulldog Frac Rentals | Customer contracts and relationships | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 20 years | |||||||
Maximum | Blue Dot/Bulldog Frac Rentals | Covenants not to compete | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 5 years | |||||||
Maximum | Energy Services | Customer contracts and relationships | ||||||||
Acquisitions [Line Items] | ||||||||
Useful life (years) | 20 years |
DIVESTITURES_AND_BUSINESS_COMB5
DIVESTITURES AND BUSINESS COMBINATIONS (Details 4) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price, net of cash acquired | $1,043.10 | $118.10 | $649.70 | ||
Goodwill | 859.5 | 1,571 | 1,484.20 | ||
Unaudited pro forma revenues had business acquisitions occurred at the beginning of the period | 2,668 | 2,372.50 | |||
Unaudited pro forma net earnings had business acquisitions occurred at the beginning of the period | 77.4 | 120.9 | |||
Unaudited pro forma diluted net earnings per share had business acquisitions occurred at the beginning of the period | $0.74 | $1.16 | |||
EMTEQ, Inc. | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price, net of cash acquired | 256.3 | ||||
F+E Fischer + Entwicklungen GmbH and Co. KG | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price, net of cash acquired | 212.3 | ||||
Smaller business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price, net of cash acquired | 63 | ||||
2014 Acquisitions | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Identified intangibles | 131.2 | ||||
Goodwill | 305.9 | ||||
Vision Oil Tools, LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Identified intangibles | 30 | ||||
Goodwill | 89.9 | ||||
Wildcat Wireline LLC | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Identified intangibles | 37.7 | ||||
Goodwill | 88.3 | ||||
Energy Services | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Identified intangibles | 131.2 | ||||
Goodwill | 305.9 | ||||
Manufacturing | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Identified intangible assets including goodwill | 516.4 | ||||
Identified intangibles | 99.3 | ||||
Goodwill | $417.10 | ||||
Manufacturing | Customer contracts and relationships | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 20 years | ||||
Manufacturing | Trademarks and patents | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 15 years | ||||
Minimum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 3 years | ||||
Minimum | Customer contracts and relationships | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 8 years | ||||
Minimum | Trademarks and patents | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 3 years | ||||
Minimum | Energy Services | Customer contracts and relationships | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 11 years | ||||
Minimum | Manufacturing | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 3 years | ||||
Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 34 years | ||||
Maximum | Customer contracts and relationships | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 30 years | ||||
Maximum | Trademarks and patents | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 20 years | ||||
Maximum | Energy Services | Customer contracts and relationships | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 20 years | ||||
Maximum | Manufacturing | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Useful life (years) | 5 years |
DIVESTITURES_AND_BUSINESS_COMB6
DIVESTITURES AND BUSINESS COMBINATIONS (Details 5) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | $859.50 | $1,571 | $1,484.20 |
Unaudited pro forma revenues had business acquisitions occurred at the beginning of the period | 2,668 | 2,372.50 | |
Unaudited pro forma net earnings had business acquisitions occurred at the beginning of the period | 77.4 | 120.9 | |
Unaudited pro forma diluted net earnings per share had business acquisitions occurred at the beginning of the period | $0.74 | $1.16 | |
2014 Acquisitions | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 36.8 | ||
Inventories | 1.7 | ||
Other current and non-current assets | 2.5 | ||
Property and equipment | 138.6 | ||
Goodwill | 305.9 | ||
Identified intangibles | 131.2 | ||
Accounts payable | -6.5 | ||
Other current and non-current liabilities | -96.4 | ||
Total purchase price | 513.8 | ||
2014 Acquisitions | Domestic | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 12.5 | ||
Inventories | 13.2 | ||
Other current and non-current assets | 0.9 | ||
Property and equipment | 6.5 | ||
Goodwill | 197.4 | ||
Identified intangibles | 46.8 | ||
Accounts payable | -4.2 | ||
Other current and non-current liabilities | -16.8 | ||
Total purchase price | 256.3 | ||
2014 Acquisitions | Foreign | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 12.8 | ||
Inventories | 7.6 | ||
Other current and non-current assets | 0.5 | ||
Property and equipment | 7.1 | ||
Goodwill | 219.7 | ||
Identified intangibles | 52.5 | ||
Accounts payable | -3.7 | ||
Other current and non-current liabilities | -21.2 | ||
Total purchase price | 275.3 | ||
Wildcat Wireline LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 0.4 | ||
Inventories | 1.3 | ||
Property and equipment | 25.7 | ||
Goodwill | 88.3 | ||
Identified intangibles | 37.7 | ||
Total purchase price | 153.4 | ||
Vision Oil Tools, LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 10.8 | ||
Other current and non-current assets | 2.4 | ||
Property and equipment | 44.1 | ||
Goodwill | 89.9 | ||
Identified intangibles | 30 | ||
Accounts payable | -1.5 | ||
Other current and non-current liabilities | -35 | ||
Total purchase price | 140.7 | ||
Cornell | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 10.5 | ||
Property and equipment | 28.5 | ||
Goodwill | 66.6 | ||
Identified intangibles | 24.5 | ||
Accounts payable | -0.7 | ||
Other current and non-current liabilities | -57.2 | ||
Total purchase price | 72.2 | ||
Other 2014 Acquisitions | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 15.1 | ||
Inventories | 0.4 | ||
Other current and non-current assets | 0.1 | ||
Property and equipment | 40.3 | ||
Goodwill | 61.1 | ||
Identified intangibles | 39 | ||
Accounts payable | -4.3 | ||
Other current and non-current liabilities | -4.2 | ||
Total purchase price | 147.5 | ||
Energy Services | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | 305.9 | ||
Identified intangibles | 131.2 | ||
Total purchase price | 437.1 | ||
Manufacturing | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | 417.1 | ||
Identified intangibles | 99.3 | ||
2013 Acquisitions | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 14.8 | ||
Inventories | 3.9 | ||
Other current and non-current assets | 0.2 | ||
Property and equipment | 35.5 | ||
Goodwill | 28 | ||
Identified intangibles | 42.6 | ||
Accounts payable | -10 | ||
Other current and non-current liabilities | -1 | ||
Total purchase price | $114 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $93.70 | $81.90 |
Excess over average costs on long-term contracts | 320.6 | 213.4 |
Work-in-process inventories | ||
Inventory [Line Items] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 127.9 | 107.5 |
Excess over average costs on long-term contracts | $320.60 | $213.40 |
INVENTORIES_Details_2
INVENTORIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Purchased materials and component parts | $309.10 | $243.40 |
Work-in-process | 605.9 | 484 |
Finished goods | 61 | 1,280.80 |
Inventory reserves | -50.8 | -64.4 |
Inventories | $925.20 | $1,943.80 |
INVENTORIES_Details_3
INVENTORIES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
In-process inventories summarized by contract | ||
Work-in-process | $605.90 | $484 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 709.7 | $714.70 |
Less accumulated depreciation | -312 | -289 |
Property, Plant and Equipment, Net, Total | 397.7 | 425.7 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 50 years | |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 139 | 123 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 50 years | |
Machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 163.8 | 197.8 |
Machinery | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Machinery | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 20 years | |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 97.8 | 84.3 |
Tooling | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Tooling | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 15 years | |
Computer Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 280.5 | 276.9 |
Computer Equipment and Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Computer Equipment and Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 10 years | |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28.6 | $32.70 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 1 year | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, useful lives | 20 years |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $97.70 | $58.90 | $45.90 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Intangible assets, original cost | $332.50 | $652 |
Accumulated Amortization | 114.3 | 179.8 |
Intangible assets, net book value | 218.2 | 472.2 |
Indefinite lived intangible assets, net book value | 0 | 21.5 |
Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 3 years | |
Maximum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 34 years | |
Customer contracts and relationships | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 100 | 424 |
Accumulated Amortization | 13.4 | 85.7 |
Intangible assets, net book value | 338.3 | |
Finite lived intangible assets, net book value | 86.6 | |
Customer contracts and relationships | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 8 years | |
Customer contracts and relationships | Maximum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 30 years | |
Acquired technologies | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 176.2 | 153.8 |
Accumulated Amortization | 81 | 76.6 |
Intangible assets, net book value | 77.2 | |
Finite lived intangible assets, net book value | 95.2 | |
Useful life (years) | 34 years | |
Acquired technologies | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 5 years | |
Trademarks and patents | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 25.2 | 23 |
Accumulated Amortization | 16.5 | 15.4 |
Intangible assets, net book value | 7.6 | |
Finite lived intangible assets, net book value | 8.7 | |
Trademarks and patents | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 3 years | |
Trademarks and patents | Maximum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 20 years | |
Covenants not to compete | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 11.2 | 5.5 |
Accumulated Amortization | 1.7 | 1.7 |
Intangible assets, net book value | 3.8 | |
Finite lived intangible assets, net book value | 9.5 | |
Covenants not to compete | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 4 years | |
Covenants not to compete | Maximum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 5 years | |
Trade names | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 19.9 | 45.7 |
Accumulated Amortization | 1.7 | 0.4 |
Intangible assets, net book value | 45.3 | |
Finite lived intangible assets, net book value | $18.20 | |
Trade names | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 15 years |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense on identifiable intangible assets | $44.60 | $30.70 | $29.10 |
Indefinite lived intangible assets | 0 | 21.5 | |
Expected amortization expenses in year one | 18 | ||
Expected amortization expenses in year two | 50 | ||
Expected amortization expenses in year three | 50 | ||
Expected amortization expenses in year four | 50 | ||
Expected amortization expenses in year five | 50 | ||
Goodwill decrease during period | -711.5 | ||
Preliminary estimate of goodwill associated with acquisitions in 2013 and 2014 | 723 | 58.7 | |
Accumulated goodwill impairment loss | $369.30 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $1,571 | $1,484.20 |
Acquisitions | 723 | 58.7 |
Spin-off of KLX | -1,370.40 | |
Effect of foreign currency translation | -64.1 | 28.1 |
Goodwill, Ending Balance | 859.5 | 1,571 |
Preliminary estimate of goodwill associated with acquisitions in 2013 and 2014 | 723 | 58.7 |
Commercial Aircraft | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 394.6 | 388.4 |
Effect of foreign currency translation | -14.8 | 6.2 |
Goodwill, Ending Balance | 379.8 | 394.6 |
Consumables Management | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,086.50 | 1,005.80 |
Acquisitions | 305.9 | 58.7 |
Spin-off of KLX | -1,370.40 | |
Effect of foreign currency translation | -22 | 22 |
Goodwill, Ending Balance | 1,086.50 | |
Preliminary estimate of goodwill associated with acquisitions in 2013 and 2014 | 305.9 | 58.7 |
Business Jet | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 89.9 | 90 |
Acquisitions | 417.1 | |
Effect of foreign currency translation | -27.3 | -0.1 |
Goodwill, Ending Balance | 479.7 | 89.9 |
Preliminary estimate of goodwill associated with acquisitions in 2013 and 2014 | $417.10 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Payables And Accruals [Abstract] | ||||
Accrued salaries, vacation and related benefits | $83.40 | $103.20 | ||
Accrued product warranties | 75.4 | 67 | 63.2 | 51.5 |
Accrued interest | 3.6 | 28.2 | ||
Income taxes payable | 14.6 | 28.7 | ||
Deferred revenue | 112.9 | 152.9 | ||
Other accrued liabilities | 195.1 | 141.2 | ||
Accrued Liabilities, Current, Total | $485 | $521.20 |
ACCRUED_LIABILITIES_Details_2
ACCRUED LIABILITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Billings in excess of costs and estimated earnings included in deferred revenue | $34.20 | $25.50 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $2,189.10 | $1,959.40 |
Less current portion of long-term debt | 20.6 | |
Long-term debt, net of current maturities | 2,168.50 | 1,959.40 |
Senior Unsecured Notes 5.25 Percent Due 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 1,313.70 | |
Senior Unsecured Notes 6.875 Percent Due 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 645.7 | |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Senior notes | $2,189.10 |
LONGTERM_DEBT_Details_2
LONG-TERM DEBT (Details 2) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 16, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Principal payments on long-term debt | $1,950 | $0.30 | $600.50 | |||
Loss on extinguishment of debt | -243.6 | -82.1 | ||||
Outstanding letter of credit amount | 7.7 | 7.7 | 7.7 | |||
Interest expense | 130.6 | 123.4 | 124.2 | |||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Revolving credit facility | 600 | |||||
Amount outstanding | 0 | 0 | 0 | |||
Revolving credit facility agreement | Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate ("LIBOR") plus 200 basis points or prime (as defined) plus 100 basis points. | |||||
Debt, interest rate | 4.00% | |||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread percentage | 2.00% | |||||
Revolving Credit Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread percentage | 1.00% | |||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 7 years | |||||
Amount outstanding | 2,200 | 2,200 | 2,200 | |||
Revolving credit facility agreement | Borrowings under the Term Loan Facility bear interest at an annual rate equal to LIBOR plus 325 basis points (LIBOR shall not be less than 75 basis points per annum) or Prime (as defined) plus 225 basis points | |||||
Aggregate principal amount | 2,200 | |||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread percentage | 3.25% | |||||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread percentage | 0.75% | |||||
Term Loan Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread percentage | 2.25% | |||||
Senior Unsecured Notes 5.25 Percent Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Principal payments on long-term debt | 1,300 | 1,300 | ||||
Debt, due date | 2022 | |||||
Interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||
Senior Unsecured Notes 6.875 Percent Due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Principal payments on long-term debt | $650 | $650 | ||||
Debt, due date | 2020 | |||||
Interest rate (as a percent) | 6.88% | 6.88% | 6.88% | |||
Covenant Requirement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest coverage ratio | 300.00% | 300.00% | 300.00% | |||
Covenant Requirement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest coverage ratio | 525.00% | 525.00% | 525.00% |
LONGTERM_DEBT_Details_3
LONG-TERM DEBT (Details 3) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $20.60 |
2016 | 20.5 |
2017 | 20.5 |
2018 | 20.4 |
2019 | 20.4 |
Thereafter | 2,086.70 |
Total | $2,189.10 |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET ARRANGEMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, future minimum lease payments | $203.70 | ||
Rent expense | 29.7 | 30.2 | 35.6 |
Executive Officer One | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Terms of employment and compensation agreement with a key officer | An agreement for one of the officers provides for the officer to earn a minimum of $0.9 per year through a three-year period ending from any date after which it is measured, adjusted annually as determined by the Company's Compensation Committee of the Board of Directors, as well as a retirement compensation payment equal to 100% of the base salary. | ||
Retirement compensation payment factor of base salary | 100 | ||
Executive Officer One | Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Annual earning of a key officer | 0.9 | ||
Executive Officer Two | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Terms of employment and compensation agreement with a key officer | One other agreement provides for an officer to receive annual minimum compensation of $1.0 per year through a three-year period ending from any date after which it is measured, adjusted annually as determined by the Company's Compensation Committee of the Board of Directors, and to receive a retirement compensation payment equal to 27.5% of the officer's average three years' annual salary (as defined). | ||
Retirement compensation payment, percentage of the three years' annual salary | 27.50% | ||
Real Estate | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, future minimum lease payments | $171.90 |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET ARRANGEMENTS (Details 2) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
2015 | $27.70 |
2016 | 26.2 |
2017 | 23.7 |
2018 | 21.2 |
2019 | 17.8 |
Thereafter | 87.1 |
Total | $203.70 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings before income taxes | |||
United States | ($216.60) | $65.90 | ($43.80) |
Foreign | 226.4 | 173.6 | 130.5 |
Earnings before income taxes | $9.80 | $239.50 | $86.70 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($83.80) | $19.50 | ($38.10) |
Foreign | 39.4 | 30.4 | 20.7 |
Current Income Tax Expense (Benefit), Total | -44.4 | 49.9 | -17.4 |
Deferred: | |||
Federal | -6.6 | -6.1 | 22.7 |
State | 1.6 | -1.1 | -0.7 |
Foreign | 1.5 | 1.9 | 2.5 |
Total Deferred Income Tax Expense (Benefit), Total | -3.5 | -5.3 | 24.5 |
Income Tax Expense (Benefit), Total | ($47.90) | $44.60 | $7.10 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | ||||
Income Tax Disclosure [Abstract] | ||||
Statutory U.S. federal income tax rate | 35.00% | |||
Deferred tax assets, valuation allowance | $12.90 | $31.10 | ||
State net operating loss carryforwards | 33.9 | |||
Foreign net operating loss carryforwards | 7 | |||
Net operating loss carryforwards, beginning expiration year | 2015 | |||
Research and development credit carry forward | 34.4 | 7.3 | ||
Research and development credit carry forward, beginning expiration year | 2015 | |||
Research and development credit carry forward, ending expiration year | 2029 | |||
Earnings from foreign subsidiaries that residual U.S. income taxes is not provided | 440 | |||
Cumulative unrealized tax deductions related to stock option exercises and vested restricted shares | 13.7 | |||
Realized tax deductions related to stock option exercises and vested restricted shares | 3.5 | |||
Gross uncertain tax position | 75.7 | 47.5 | 34.6 | 21.7 |
Liability for unrecognized tax benefits that would affect effective tax rate, if recognized | 73.2 | |||
Number of tax years the company is currently open to audit by tax authorities | 8 | |||
Liability for unrecognized tax benefits for interest and penalties | 2 | |||
income tax receivables | $82.60 | $6.20 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax expense | $3.40 | $83.80 | $30.30 |
U.S. state income taxes | -7.6 | 2.3 | -1.5 |
Foreign tax rate differential | -39.9 | -30.6 | -28.6 |
Non-deductible charges/losses and other | 8.9 | 3 | 8.5 |
Research and development credit | -12.7 | -13.9 | -1.6 |
Income Tax Expense (Benefit), Total | ($47.90) | $44.60 | $7.10 |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Inventory reserves | $11.40 | $20.80 |
Warranty reserves | 16.6 | 14.1 |
Accrued liabilities | 27.9 | 31 |
Net operating loss carryforward | 2.8 | 24 |
Research and development credit carry forward | 34.4 | 7.3 |
Alternative minimum tax credit carryforward | 5 | 5 |
Other | 2.4 | 10 |
Deferred Tax Assets, Gross, Total | 100.5 | 112.2 |
Deferred tax liabilities: | ||
Book to tax revenue differences | -4.3 | -13.4 |
Intangible assets | -160.9 | -168.4 |
Depreciation | -14.9 | -34.4 |
Other | -8.7 | |
Software development costs | -0.1 | -0.7 |
Deferred Tax Liabilities, Net | -188.9 | -216.9 |
Net deferred tax liability before valuation allowance | -88.4 | -104.7 |
Valuation allowance | -12.9 | -31.1 |
Net deferred tax liability | ($101.30) | ($135.80) |
INCOME_TAXES_Details_6
INCOME TAXES (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of the period | $47.50 | $34.60 | $21.70 |
Additions for current year tax positions | 38.1 | 10.8 | 10.6 |
Additions for tax positions of prior years | 1.6 | 2.1 | 2.3 |
Impact of Spin-off | -11.2 | ||
Currency fluctuations | -0.3 | ||
Balance, end of the period | $75.70 | $47.50 | $34.60 |
EMPLOYEE_RETIREMENT_PLANS_Deta
EMPLOYEE RETIREMENT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation expense | $1.80 | $1.70 | $1.60 |
Savings and Investment Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Compensation expense | 13.3 | 11.3 | 10.1 |
Hourly Tax-Sheltered Retirement Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Compensation expense | $0.40 | $0.30 | $0.30 |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution savings and investment plan, employees contribution rate | 100.00% | ||
First 3% of employee contributions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching percentage of employee contributions | 100.00% | ||
The next 2% of employee contributions | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching percentage of employee contributions | 50.00% |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | 36 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Stockholders Equity Note [Line Items] | ||||
Anti-dilutive securities excluded from determination of diluted earnings per common share | 100,000 | 100,000 | 300,000 | |
Restricted stock units granted | 642,000 | 342,000 | ||
Restricted stock units forfeited | 96,000 | 95,000 | ||
Outstanding restricted stock units | 1,545,000 | 1,248,000 | 1,646,000 | 1,545,000 |
Outstanding exercisable stock options | 0 | 31,500 | 51,000 | 0 |
Stock options granted | 0 | |||
Stock options exercised | 29,750 | 19,525 | 45,040 | |
Stock options exercised, aggregate intrinsic value | $2 | $1.10 | $1.70 | |
Stock options outstanding, aggregate intrinsic value | 0 | 0 | ||
Restricted Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Share based compensation | 28.1 | 23 | 23.4 | |
Unrecognized compensation cost | $59.90 | $53.60 | $50.40 | $59.90 |
Restricted Stock | Maximum | ||||
Stockholders Equity Note [Line Items] | ||||
Restricted stock and restricted stock unit grants, vesting period | 4 years | |||
Restricted Stock Unit | ||||
Stockholders Equity Note [Line Items] | ||||
Restricted stock units granted | 14,342 | 12,081 | ||
Restricted stock units forfeited | 0 | |||
Weighted average remaining vesting period | 2 years 9 months 7 days | |||
Outstanding restricted stock units | 14,342 | 14,342 |
STOCKHOLDERS_EQUITY_Details_2
STOCKHOLDERS' EQUITY (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Uncategorized [Abstract] | |||||||||||
Numerator: net earnings | ($215.50) | $102.20 | $108.60 | $109 | $90.60 | $92.70 | $92.40 | $89.90 | $104.30 | $365.60 | $233.70 |
Weighted average common shares: | |||||||||||
Denominator for basic earnings per share - Weighted average shares (in millions) | 104 | 103.2 | 102.2 | ||||||||
Effect of dilutive securities - Dilutive securities (in millions) | 0.5 | 0.7 | 0.7 | ||||||||
Denominator for diluted earnings per share - Adjusted weighted average shares (in millions) | 104.5 | 103.9 | 102.9 | ||||||||
Basic net earnings per share: | |||||||||||
Net earnings per share from continuing operations - basic | $0.55 | $1.89 | $0.78 | ||||||||
Net earnings per share from discontinued operations-basic | $0.45 | $1.65 | $1.51 | ||||||||
Basic net earnings (loss) per share | ($2.07) | $0.98 | $1.05 | $1.05 | $0.88 | $0.90 | $0.90 | $0.87 | $1 | $3.54 | $2.29 |
Diluted net earnings per share: | |||||||||||
Net earnings per share from continuing operations - diluted | $0.55 | $1.88 | $0.77 | ||||||||
Net earnings per share from discontinued operations - diluted | $0.45 | $1.64 | $1.50 | ||||||||
Diluted net earnings (loss) per share | ($2.07) | $0.98 | $1.04 | $1.05 | $0.87 | $0.89 | $0.89 | $0.87 | $1 | $3.52 | $2.27 |
STOCKHOLDERS_EQUITY_Details_3
STOCKHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Shares | |||
Outstanding, beginning of period | 1,248 | 1,646 | |
Shares granted | 642 | 342 | |
Shares vested | -538 | -645 | |
Shares forfeited | -96 | -95 | |
Spin off make whole grants | 444 | ||
Spin off cancellations | -155 | ||
Outstanding, end of period | 1,545 | 1,248 | 1,646 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period | $52.67 | $37.67 | |
Shares granted | $77.91 | $83.84 | |
Shares vested | $46.46 | $33.81 | |
Shares forfeited | $50.76 | $37.32 | |
Spin-off cancellations | $67.42 | ||
Outstanding, end of period | $49.03 | $52.67 | $37.67 |
Weighted Average Remaining Vesting Period | |||
Weighted Average Remaining Vesting Period | 2 years 7 months 24 days | 2 years 4 months 13 days | 2 years 6 months 7 days |
EMPLOYEE_STOCK_PURCHASE_PLAN_D
EMPLOYEE STOCK PURCHASE PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Percentage of discounted closing price for Employee Stock Purchase Plan | 85.00% | ||
Employee Stock Purchase Plan, common stock issued | 98,000 | 101,000 | 136,000 |
Employee Stock Purchase Plan, weighted average price per share | $72.51 | $61.96 | $39.44 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $637.80 | $653.80 | $662.70 | $644.70 | $579.50 | $570.80 | $537.60 | $515.40 | $2,599 | $2,203.30 | $1,914.30 |
Operating earnings | 384 | 362.9 | 293 | ||||||||
Total assets | 3,199.90 | 5,696.20 | 3,199.90 | 5,696.20 | |||||||
Goodwill | 859.5 | 1,571 | 859.5 | 1,571 | 1,484.20 | ||||||
Capital expenditures | 255.6 | 154.9 | 125.4 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 142.3 | 89.6 | 75 | ||||||||
Term of transition services maximum | 24 months | ||||||||||
Commercial Aircraft | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 2,058.90 | 1,784.70 | 1,551.20 | ||||||||
Operating earnings excluding KLX corporate allocations | 356.3 | 320.3 | 271.3 | ||||||||
Total assets | 2,162 | 2,016.50 | 2,162 | 2,016.50 | 1,719.10 | ||||||
Goodwill | 379.8 | 394.6 | 379.8 | 394.6 | 388.4 | ||||||
Commercial Aircraft | Continuing Operations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Capital expenditures | 102.8 | 96.5 | 92.5 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 63.4 | 50.4 | 42.3 | ||||||||
Consumables Management | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Goodwill | 1,086.50 | 1,086.50 | 1,005.80 | ||||||||
Business Jet | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 540.1 | 418.6 | 363.1 | ||||||||
Operating earnings excluding KLX corporate allocations | 50 | 69 | 52 | ||||||||
Total assets | 1,037.90 | 466.9 | 1,037.90 | 466.9 | 380.6 | ||||||
Goodwill | 479.7 | 89.9 | 479.7 | 89.9 | 90 | ||||||
Business Jet | Continuing Operations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Capital expenditures | 28.8 | 17.8 | 10.3 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 17.4 | 9.4 | 7.7 | ||||||||
Corporation [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 2,599 | 2,203.30 | 1,914.30 | ||||||||
Operating earnings excluding KLX corporate allocations | 406.3 | 389.3 | 323.3 | ||||||||
KLX corporate allocations | -22.3 | -26.4 | -30.3 | ||||||||
Operating earnings | 384 | 362.9 | 293 | ||||||||
Total assets | 3,199.90 | 2,483.40 | 3,199.90 | 2,483.40 | 2,099.70 | ||||||
Goodwill | 859.5 | 484.5 | 859.5 | 484.5 | 478.4 | ||||||
Capital expenditures | 255.6 | 154.9 | 125.4 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 142.3 | 89.6 | 75 | ||||||||
Corporation [Member] | Continuing Operations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Capital expenditures | 131.6 | 114.3 | 102.8 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | 80.8 | 59.8 | 50 | ||||||||
Corporation [Member] | Discontinued Operations [Member] | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Capital expenditures | 124 | 40.6 | 22.6 | ||||||||
Depreciation, Depletion and Amortization [Abstract] | |||||||||||
Depreciation and amortization | $61.50 | $29.80 | $25 |
SEGMENT_REPORTING_Details_2
SEGMENT REPORTING (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total assets | $3,199.90 | $5,696.20 | |
Corporate, Non-Segment | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total assets | $368.30 | $736.80 | $599.40 |
SEGMENT_REPORTING_Details_3
SEGMENT REPORTING (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $637.80 | $653.80 | $662.70 | $644.70 | $579.50 | $570.80 | $537.60 | $515.40 | $2,599 | $2,203.30 | $1,914.30 |
Operating earnings (loss) | 384 | 362.9 | 293 | ||||||||
Domestic | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,552.80 | 1,315.20 | 1,195.30 | ||||||||
Operating earnings (loss) | 147.2 | 169 | 186 | ||||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,046.20 | 888.1 | 719 | ||||||||
Operating earnings (loss) | $236.80 | $193.90 | $107 |
SEGMENT_REPORTING_Details_4
SEGMENT REPORTING (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $3,199.90 | $5,696.20 |
Domestic | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,996.30 | 4,482.70 |
Foreign | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $1,203.60 | $1,213.50 |
SEGMENT_REPORTING_Details_5
SEGMENT REPORTING (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Revenues | $637.80 | $653.80 | $662.70 | $644.70 | $579.50 | $570.80 | $537.60 | $515.40 | $2,599 | $2,203.30 | $1,914.30 |
% of Revenues | 100.00% | 100.00% | 100.00% | ||||||||
UNITED STATES | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Revenues | 859.1 | 788.3 | 771.7 | ||||||||
% of Revenues | 33.10% | 35.80% | 40.30% | ||||||||
Europe | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Revenues | 684.6 | 549.3 | 465.5 | ||||||||
% of Revenues | 26.30% | 24.90% | 24.30% | ||||||||
Asia, Pacific Rim, Middle East and other | |||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | |||||||||||
Revenues | $1,055.30 | $865.70 | $677.10 | ||||||||
% of Revenues | 40.60% | 39.30% | 35.40% |
SEGMENT_REPORTING_Details_6
SEGMENT REPORTING (Details 6) (Foreign, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Export revenues from United States to customers in foreign countries | $863.40 | $713.60 | $586.20 |
FAIR_VALUE_INFORMATION_Details
FAIR VALUE INFORMATION (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long Term Debt | $2,189.10 | $1,959.40 | $2,189.10 | |
Amount of debt redemption | 1,950 | 0.3 | 600.5 | |
Senior Unsecured Notes 5.25 Percent Due 2022 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of debt redemption | 1,300 | 1,300 | ||
Senior Unsecured Notes 6.875 Percent Due 2020 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amount of debt redemption | 650 | 650 | ||
Revolving Credit Facility | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long Term Debt | 0 | 0 | ||
Revolving credit facility 2013 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long Term Debt | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Senior Unsecured Notes | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Senior unsecured notes, fair value | $2,058.50 |
SELECTED_QUARTERLY_DATE_Detail
SELECTED QUARTERLY DATE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $637.80 | $653.80 | $662.70 | $644.70 | $579.50 | $570.80 | $537.60 | $515.40 | $2,599 | $2,203.30 | $1,914.30 |
Cost of sales | 389 | 424.5 | 386.9 | 382.4 | 344.1 | 332.2 | 316 | 303.7 | 1,582.80 | 1,296 | 1,113.70 |
Gross profit | 248.8 | 229.3 | 275.8 | 262.3 | 235.3 | 238.6 | 221.6 | 211.8 | |||
Income (loss) from continuing operations | 57.7 | 194.9 | 79.6 | ||||||||
Earnings from discontinued operations, net of income taxes | 46.6 | 170.7 | 154.1 | ||||||||
Net earnings | -215.5 | 102.2 | 108.6 | 109 | 90.6 | 92.7 | 92.4 | 89.9 | 104.3 | 365.6 | 233.7 |
Basic net earnings (loss) per share | ($2.07) | $0.98 | $1.05 | $1.05 | $0.88 | $0.90 | $0.90 | $0.87 | $1 | $3.54 | $2.29 |
Diluted net earnings (loss) per share | ($2.07) | $0.98 | $1.04 | $1.05 | $0.87 | $0.89 | $0.89 | $0.87 | $1 | $3.52 | $2.27 |
Payments Of Debt Extinguishment Costs | $243.60 | $210.90 | $71.70 |
VALUATION_AND_QUALIFYING_ACCOU1
VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance At Beginning Of Period | $10.40 | $12.10 | $8.20 |
Expenses | 9.6 | 1.3 | 4.8 |
Other | -13 | 0.4 | 1 |
Write- Offs/ Disposals | -1.6 | -3.4 | -1.9 |
Balance At End Of Period | 5.4 | 10.4 | 12.1 |
Reserve for Obsolete Inventories | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance At Beginning Of Period | 64.4 | 63.5 | 49.8 |
Expenses | 25.1 | 11.2 | 20.7 |
Other | -30.3 | ||
Write- Offs/ Disposals | -8.4 | -10.3 | -7 |
Balance At End Of Period | 50.8 | 64.4 | 63.5 |
Deferred tax asset valuation allowance | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance At Beginning Of Period | 31.1 | 26.5 | 20.1 |
Other | -18.2 | 4.6 | 6.4 |
Balance At End Of Period | $12.90 | $31.10 | $26.50 |