Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 22, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
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 Common Stock, Shares Outstanding | 106,164,492 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $295.40 | $292.50 |
Accounts receivable – trade, less allowance for doubtful accounts | 353.7 | 289 |
Inventories | 970.6 | 925.2 |
Deferred income taxes | 14.3 | 17.6 |
Other current assets | 89 | 130.7 |
Total current assets | 1,723 | 1,655 |
Property and equipment, net of accumulated depreciation ($323.1 at March 31, 2015 and $312.0 at December 31, 2014) | 399.6 | 397.7 |
Goodwill | 823.5 | 859.5 |
Identifiable intangible assets, net of accumulated amortization | 215.4 | 218.2 |
Other assets | 41.1 | 39.3 |
Total assets | 3,202.60 | 3,169.70 |
Current liabilities: | ||
Accounts payable | 298.7 | 275.1 |
Accrued liabilities | 488.6 | 485 |
Current maturities of long-term debt | 16.1 | 16.2 |
Total current liabilities | 803.4 | 776.3 |
Long-term debt | 2,138.60 | 2,142.70 |
Deferred income taxes | 115.6 | 118.9 |
Other non-current liabilities | 120.9 | 121.7 |
Stockholders' equity: | ||
Common stock, $0.01 par value; 200.0 shares authorized; 106.9 shares issued as of March 31, 2015 and 106.7 shares issued as of December 31, 2014 | 1.1 | 1.1 |
Additional paid-in capital | -876.9 | -884.6 |
Treasury stock; .7 shares at March 31, 2015 and December 31, 2014 | -29.1 | -28.6 |
Retained earnings | 1,085 | 1,027.60 |
Accumulated other comprehensive loss | -156 | -105.4 |
Total stockholders' equity | 24.1 | 10.1 |
Total liabilities and equity | $3,202.60 | $3,169.70 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) 10Q (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $323.10 | $312 |
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 | 106,900,000 | 106,700,000 |
Treasury stock | 700,000 | 700,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenues | $690 | $644.70 |
Cost of sales | 401.6 | 383 |
Selling, general and administrative | 87.1 | 80.9 |
Research, development and engineering | 75.6 | 70.7 |
Operating earnings | 125.7 | 110.1 |
Operating earnings, as percentage of revenues | 18.20% | 17.10% |
Interest expense | 24.3 | 30.6 |
Earnings from continuing operations before income taxes | 101.4 | 79.5 |
Income tax expense | 23.8 | 16.3 |
Net earnings from continuing operations | 77.6 | 63.2 |
Net earnings from discontinued operations | 45.8 | |
Net earnings | 77.6 | 109 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment and other | -50.6 | 3.9 |
Comprehensive income | $27 | $112.90 |
Basic net earnings per share - Continuing operations | $0.74 | $0.61 |
Basic net earnings per share - Discontinued operations | $0.44 | |
Basic net earnings per share | $0.74 | $1.05 |
Diluted net earnings per share - Continuing operations | $0.74 | $0.61 |
Diluted net earnings per share - Discontinued operations | $0.44 | |
Diluted net earnings per share | $0.74 | $1.05 |
Dividends declared per share | $0.19 | |
Basic weighted average common shares | 104.5 | 103.9 |
Weighted average common shares - diluted | 104.9 | 104.3 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 10Q (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $77.60 | $109 |
Adjustments to reconcile net earnings to net cash flows provided by operating activities, net of effects from acquisitions: | ||
Depreciation and amortization | 20.4 | 28.1 |
Deferred income taxes | 2.7 | 4.1 |
Non-cash compensation | 6.8 | 6.9 |
Loss on disposal of property and equipment | 0.2 | 0.3 |
Tax benefits realized from prior exercises of employee stock options and restricted stock | -1.2 | -2.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -75.1 | -68.4 |
Inventories | -61.2 | -92.7 |
Other current and non-current assets | 40.3 | -33.8 |
Accounts payable and accrued liabilities | 26.9 | 105.2 |
Net cash provided by operating activities | 37.4 | 56.3 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | -25.3 | -56.2 |
Acquisitions, net of cash acquired | 4 | -256.4 |
Other | -3.8 | |
Net cash used in investing activities | -25.1 | -312.6 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from common stock issued | 0.1 | |
Purchase of treasury stock | -0.4 | -0.1 |
Tax benefits realized from prior exercises of employee stock options and restricted stock | 1.2 | 2.4 |
Principal payments on long-term debt | -5.5 | |
Net cash (used in) provided by financing activities | -4.7 | 2.4 |
Effect of foreign exchange rate changes on cash and cash equivalents | -4.7 | 0.8 |
Net increase (decrease) in cash and cash equivalents | 2.9 | -253.1 |
Cash and cash equivalents, beginning of period | 292.5 | 637.8 |
Cash and cash equivalents, end of period | 295.4 | 384.7 |
Cash paid (refunded) during period for: | ||
Interest | 13.8 | 0.8 |
Income taxes | -24.4 | 28.4 |
Supplemental schedule of non-cash activities: | ||
Accrued property additions | $6.20 | $8.20 |
Basis_of_Presentation_10Q
Basis of Presentation 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | |
Note 1.Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. All adjustments which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and accompanying notes included in the B/E Aerospace, Inc. (the “Company”) Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | |
The preparation of 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. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 2.Recent Accounting Pronouncements |
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which updated the guidance in ASC Topic 835, Interest. The updated guidance is effective retrospectively for annual periods and interim periods within the annual periods beginning after December 15, 2015. Early adoption is permitted, including early adoption in an interim period. The amendment requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The Company adopted ASU 2015-03 effective January 1, 2015 and has presented debt issuance costs of $29.2 and $30.2 as of March 31, 2015 and December 31, 2014, respectively, as a direct deduction from the carrying amounts of its debt liabilities. | |
In June 2014, the FASB issued 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 F-12 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 guidance permits two implementation approaches, either prospectively to all awards granted or modified after the effective date, or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. 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 did not have a material impact on the Company’s condensed consolidated financial statements. | |
Divestures_and_Business_Combin
Divestures and Business Combinations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Divestitures and Business Combination [Abstract] | ||||||||
Divestitures and Business Combination | Note 3.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 Inc. (“KLX”). On December 16, 2014 (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 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 condensed consolidated statements of earnings and comprehensive income for all periods presented. The cash flows of KLX are included within our condensed consolidated statement of cash flows for the three months ended March 31, 2014. | ||||||||
In connection with the spin-off, we entered into certain agreements with KLX relating to transition services and information technology (“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. | ||||||||
During the three months ended March 31, 2014, KLX generated revenues of $366.6, earnings before income taxes of $72.9, and net earnings of $45.8, which have been presented as net earnings from discontinued operations in the accompanying condensed consolidated statements of earnings for the three month period ended March 31, 2014. The results of the KLX discontinued operation exclude certain corporate and group allocations which were historically allocated to our consumables management business. These costs include primarily corporate overhead and information systems. | ||||||||
Acquisitions | ||||||||
During the second quarter of 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 $253.2, 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 $211.7, net of cash acquired. The Company also acquired the outstanding shares of Wessex Advanced Switching Products Ltd. (“WASP”), which is engaged in the production of lighting, control units and switches and is 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 “2014 Acquisitions.” | ||||||||
For the 2014 Acquisitions, based on our preliminary purchase price allocation, the excess of the purchase price over the fair value of the identifiable assets acquired approximated $514.0, of which $107.8 was allocated to identified intangible assets, consisting of customer contracts and relationships, developed technologies, trademarks and patents and covenants not to compete, and $406.2 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 2014 Acquisitions were accounted for as purchases under FASB ASC 805, Business Combinations (“ASC 805”). The assets purchased and liabilities assumed for the 2014 Acquisitions have been reflected in the accompanying condensed consolidated balance sheets as of March 31, 2015 and December 31, 2014, and the results of operations for the 2014 Acquisitions are included in the accompanying condensed consolidated statements of earnings from their respective dates of acquisition. | ||||||||
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 2014 Acquisitions except for WASP. | ||||||||
The following table summarizes the current estimates of fair values of assets acquired and liabilities assumed in the 2014 Acquisitions in accordance with ASC 805, which are currently recorded based on management’s estimates as follows: | ||||||||
Domestic | Foreign | |||||||
Accounts receivable-trade | $ | 12.5 | $ | 12.1 | ||||
Inventories | 13.2 | 7.9 | ||||||
Other current and non-current assets | 0.9 | 1.2 | ||||||
Property and equipment | 6.5 | 7.1 | ||||||
Goodwill | 194.3 | 211.9 | ||||||
Identified intangibles | 46.8 | 61.0 | ||||||
Accounts payable | -4.2 | -3.6 | ||||||
Other current and non-current liabilities | -16.8 | -22.9 | ||||||
Total purchase price | $ | 253.2 | $ | 274.7 | ||||
The majority of the goodwill and intangible assets related to the 2014 Acquisitions are not expected to be deductible for tax purposes. | ||||||||
Consolidated unaudited pro forma revenues, net earnings, and diluted net earnings per share from continuing operations for the three month period ended March 31, 2014 were $684.8, $65.5 and $0.63, respectively, giving effect to the 2014 Acquisitions as if they had occurred on January 1, 2013. | ||||||||
Inventories_10Q
Inventories 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Note 4.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, 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 $122.9 and $127.9 and capitalized development costs on long-term seller furnished equipment contracts of $343.4 and $320.6 as of March 31, 2015 and December 31, 2014, respectively. Inventories consist of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Purchased materials and component parts | $ | 277.2 | $ | 258.3 | ||||
Work-in-process | 636.3 | 605.9 | ||||||
Finished goods | 57.1 | 61.0 | ||||||
$ | 970.6 | $ | 925.2 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets - 10Q | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Intangible Assets | Note 5.Goodwill and Intangible Assets | ||||||||||||
The table below sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions: | |||||||||||||
March 31, 2015 | |||||||||||||
Useful | Net | ||||||||||||
Life | Original | Accumulated | Book | ||||||||||
(Years) | Cost | Amortization | Value | ||||||||||
Customer contracts and relationships | 30-Aug | $ | 99.8 | $ | 14.0 | $ | 85.8 | ||||||
Acquired technologies and other | May-34 | 166.7 | 77.1 | 89.6 | |||||||||
Trademarks and patents | 20-Mar | 28.0 | 16.8 | 11.2 | |||||||||
Covenants not to compete | 5-Apr | 9.5 | 1.9 | 7.6 | |||||||||
Trade names | 15 | 23.4 | 2.2 | 21.2 | |||||||||
$ | 327.4 | $ | 112.0 | $ | 215.4 | ||||||||
Amortization expense associated with identifiable intangible assets within continuing operations was approximately $4.3 and $2.9 for the three months ended March 31, 2015 and 2014, respectively. The Company currently expects to recognize amortization expense of approximately $16 in each of the next five fiscal 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 $36.0 during the three months ended March 31, 2015, primarily due to foreign currency translations and $9.7 due to adjustments in our preliminary estimate of goodwill associated with acquisitions completed in 2014. | |||||||||||||
LongTerm_Debt_10Q
Long-Term Debt 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | Note 6.Long-Term Debt |
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 ABR (as defined therein) plus 100 basis points. There were no amounts outstanding under the Revolving Credit Facility as of March 31, 2015 or 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 ABR (as defined therein) plus 225 basis points (4.0% at March 31, 2015). | |
Outstanding long-term debt as of March 31, 2015 was $2,172.5, which consists of an amount outstanding of $2,194.5 under the Term Loan Facility, of which $22.0 was current. In addition, the Company has a $600.0 Revolving Credit Facility of which there were no amounts outstanding as of March 31, 2015. On a net basis, after taking into consideration the unamortized original issue discount and debt issue costs for both the Term Loan Facility and Revolving Credit Facility, total long-term debt was $2,138.6, consisting of total debt of $2,154.7 of which $16.1 was current. | |
In connection with the KLX spin-off, 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 $8.4 at March 31, 2015 ($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, restrictions on the payment of dividends and the repurchase of our stock, and conditions precedent for borrowings, all of which were met as of March 31, 2015. | |
Fair_Value_Measurements_10Q
Fair Value Measurements 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7.Fair Value Measurements |
All short-term financial instruments are generally 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 the Revolving Credit Facility as of March 31, 2015 or December 31, 2014. The carrying value of the Term Loan Facility approximates fair value due to the recent debt refinancing (which the Company classifies as Level 2). | |
The fair value information presented herein is based on pertinent information available to management at March 31, 2015 and December 31, 2014, 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 condensed consolidated financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented herein. | |
Commitments_Contingencies_and_
Commitments, Contingencies and Off-Balance Sheet Arrangements 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Off-Balance Sheet Arrangements | Note 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 condensed consolidated balance sheets. At March 31, 2015, future minimum lease payments under these arrangements approximated $198.0, the majority of which related to long-term real estate leases. | |
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 condensed 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 design, manufacture, sale and delivery 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 condensed consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees. | |
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. | |
Accounting_for_StockBased_Comp
Accounting for Stock-Based Compensation 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EMPLOYEE STOCK PURCHASE PLAN | Note 9.Accounting for Stock-Based Compensation |
The Company has a Long-Term Incentive Plan (“LTIP”) under which the Company’s Compensation Committee has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity-based or equity-related awards. | |
Compensation cost generally is recognized on a straight-line basis over the vesting period of the shares. Share-based compensation of $6.3 and $6.4 was recognized during the three months ended March 31, 2015 and 2014, respectively, related to the equity grants made pursuant to the LTIP. Unrecognized compensation expense related to equity grants, including the estimated impact of any future forfeitures, was $69.8 at March 31, 2015. | |
The Company has established a qualified Employee Stock Purchase Plan which allows qualified employees (as defined therein) to purchase shares of the Company’s common stock at a price equal to 85% of the closing price at the end of each semi-annual stock purchase period. Compensation cost for this plan was not material to any of the periods presented. | |
Segment_Reporting_10Q
Segment Reporting 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Reporting | Note 10.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 KLX and changes in the members of the 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 operating earnings by reportable segment: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Commercial aircraft | $ | 526.1 | $ | 523.5 | ||||
Business jet | 163.9 | 121.2 | ||||||
$ | 690.0 | $ | 644.7 | |||||
Operating earnings(1) | ||||||||
Commercial aircraft | $ | 98.4 | $ | 93.1 | ||||
Business jet | 27.3 | 21.1 | ||||||
125.7 | 114.2 | |||||||
Corporate allocations related to discontinued operations | - | -4.1 | ||||||
Operating earnings | 125.7 | 110.1 | ||||||
Interest expense | 24.3 | 30.6 | ||||||
Earnings from continuing operations | ||||||||
before income taxes | $ | 101.4 | $ | 79.5 | ||||
-1 | Operating earnings are presented before certain allocations of overhead and corporate IT costs. | |||||||
The following table presents capital expenditures(1) by reportable segment: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 23.2 | $ | 26.4 | ||||
Business jet | 2.1 | 6.2 | ||||||
Discontinued operations | - | 23.6 | ||||||
$ | 25.3 | $ | 56.2 | |||||
-1 | Corporate capital expenditures have been allocated to the above segments in a manner consistent with our corporate expense allocations. | |||||||
The following table presents goodwill by reportable segment: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 372.0 | $ | 379.8 | ||||
Business jet | 451.5 | 479.7 | ||||||
$ | 823.5 | $ | 859.5 | |||||
The following table presents total assets(1) by reportable segment: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 2,178.1 | $ | 2,139.3 | ||||
Business jet | 1,024.5 | 1,030.4 | ||||||
$ | 3,202.6 | $ | 3,169.7 | |||||
-1 | Corporate assets (including cash and cash equivalents) of $292.6 and $338.1 at March 31, 2015 and December 31, 2014, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations. | |||||||
Net_Earnings_Per_Common_Share_
Net Earnings Per Common Share 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Earnings Per Common Share | Note 11.Net Earnings Per Common Share | |||||||
Basic net earnings per common share is computed using the weighted average common shares outstanding during the period. Diluted net earnings per common share is computed by using the weighted average common shares outstanding including the dilutive effect of stock options, shares issued under the Employee Stock Purchase Plan and restricted shares based on an average share price during the period. For the three months ended March 31, 2015 and 2014, approximately 0.7 and 0.0 shares of the Company’s common stock, respectively, were excluded from the determination of diluted earnings per common share because their effect would have been anti-dilutive. | ||||||||
The computations of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014, respectively, are as follows: | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings | $ | 77.6 | $ | 109.0 | ||||
Basic weighted average common shares | 104.5 | 103.9 | ||||||
Effect of restricted shares issued | 0.4 | 0.4 | ||||||
Diluted weighted average common shares | 104.9 | 104.3 | ||||||
Basic net earnings per share: | ||||||||
Continuing operations | $ | 0.74 | $ | 0.61 | ||||
Discontinued operations | -- | 0.44 | ||||||
Basic net earnings per share | $ | 0.74 | $ | 1.05 | ||||
Diluted net earnings per share: | ||||||||
Continuing operations | $ | 0.74 | $ | 0.61 | ||||
Discontinued operations | -- | 0.44 | ||||||
Diluted net earnings per share | $ | 0.74 | $ | 1.05 | ||||
Accounting_for_Uncertainty_in_
Accounting for Uncertainty in Income Taxes 10Q | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 12.Accounting for Uncertainty in Income Taxes |
In accordance with FASB ASC 740, Income Taxes (“ASC 740”), the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. As of March 31, 2015 and December 31, 2014, the Company had $73.1 and $73.2, respectively, of net unrecognized tax benefits. This liability, if recognized, would affect the Company’s effective tax rate. The Company is currently open to audit by the tax authorities for the eight tax years ended 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 amount included in the Company’s liability for unrecognized tax benefits for interest and penalties was less than $2.0 as of March 31, 2015 and December 31, 2014. | |
Divestutures_and_Business_Comb
Divestutures and Business Combinations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Divestitures and Business Combination [Abstract] | ||||||||
Preliminary Estimates of Fair Values of Assets Acquired and Liabilities Assumed | ||||||||
Domestic | Foreign | |||||||
Accounts receivable-trade | $ | 12.5 | $ | 12.1 | ||||
Inventories | 13.2 | 7.9 | ||||||
Other current and non-current assets | 0.9 | 1.2 | ||||||
Property and equipment | 6.5 | 7.1 | ||||||
Goodwill | 194.3 | 211.9 | ||||||
Identified intangibles | 46.8 | 61.0 | ||||||
Accounts payable | -4.2 | -3.6 | ||||||
Other current and non-current liabilities | -16.8 | -22.9 | ||||||
Total purchase price | $ | 253.2 | $ | 274.7 | ||||
Inventories_Tables_10Q
Inventories (Tables) 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Purchased materials and component parts | $ | 277.2 | $ | 258.3 | ||||
Work-in-process | 636.3 | 605.9 | ||||||
Finished goods | 57.1 | 61.0 | ||||||
$ | 970.6 | $ | 925.2 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) - 10Q | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||
Intangible Assets by Major Asset Class | |||||||||||||
March 31, 2015 | |||||||||||||
Useful | Net | ||||||||||||
Life | Original | Accumulated | Book | ||||||||||
(Years) | Cost | Amortization | Value | ||||||||||
Customer contracts and relationships | 30-Aug | $ | 99.8 | $ | 14.0 | $ | 85.8 | ||||||
Acquired technologies and other | May-34 | 166.7 | 77.1 | 89.6 | |||||||||
Trademarks and patents | 20-Mar | 28.0 | 16.8 | 11.2 | |||||||||
Covenants not to compete | 5-Apr | 9.5 | 1.9 | 7.6 | |||||||||
Trade names | 15 | 23.4 | 2.2 | 21.2 | |||||||||
$ | 327.4 | $ | 112.0 | $ | 215.4 | ||||||||
Segment_Reporting_Tables_10Q
Segment Reporting (Tables) 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Revenues and Operating Earnings by Reportable Segment | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Commercial aircraft | $ | 526.1 | $ | 523.5 | ||||
Business jet | 163.9 | 121.2 | ||||||
$ | 690.0 | $ | 644.7 | |||||
Operating earnings(1) | ||||||||
Commercial aircraft | $ | 98.4 | $ | 93.1 | ||||
Business jet | 27.3 | 21.1 | ||||||
125.7 | 114.2 | |||||||
Corporate allocations related to discontinued operations | - | -4.1 | ||||||
Operating earnings | 125.7 | 110.1 | ||||||
Interest expense | 24.3 | 30.6 | ||||||
Earnings from continuing operations | ||||||||
before income taxes | $ | 101.4 | $ | 79.5 | ||||
Capital Expenditures by Reportable Segment | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 23.2 | $ | 26.4 | ||||
Business jet | 2.1 | 6.2 | ||||||
Discontinued operations | - | 23.6 | ||||||
$ | 25.3 | $ | 56.2 | |||||
-1 | Corporate capital expenditures have been allocated to the above segments in a manner consistent with our corporate expense allocations. | |||||||
Goodwill by Reportable Segment | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 372.0 | $ | 379.8 | ||||
Business jet | 451.5 | 479.7 | ||||||
$ | 823.5 | $ | 859.5 | |||||
Total Assets by Reportable Segment | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Commercial aircraft | $ | 2,178.1 | $ | 2,139.3 | ||||
Business jet | 1,024.5 | 1,030.4 | ||||||
$ | 3,202.6 | $ | 3,169.7 | |||||
Net_Earnings_Per_Common_Share_1
Net Earnings Per Common Share (Tables) 10Q | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Computations of Basic and Diluted Earnings Per Share | ||||||||
Three months ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Net earnings | $ | 77.6 | $ | 109.0 | ||||
Basic weighted average common shares | 104.5 | 103.9 | ||||||
Effect of restricted shares issued | 0.4 | 0.4 | ||||||
Diluted weighted average common shares | 104.9 | 104.3 | ||||||
Basic net earnings per share: | ||||||||
Continuing operations | $ | 0.74 | $ | 0.61 | ||||
Discontinued operations | -- | 0.44 | ||||||
Basic net earnings per share | $ | 0.74 | $ | 1.05 | ||||
Diluted net earnings per share: | ||||||||
Continuing operations | $ | 0.74 | $ | 0.61 | ||||
Discontinued operations | -- | 0.44 | ||||||
Diluted net earnings per share | $ | 0.74 | $ | 1.05 | ||||
Divestitures_and_Business_Comb
Divestitures and Business Combinations (Details) (Spinoff [Member], KLX Inc [Member], USD $) | 0 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 16, 2014 | Mar. 31, 2014 |
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 | $366.60 | |
Earnings before income taxes | 72.9 | |
Earnings from discontinued operations, net of income taxes | $45.80 |
Divestitures_and_Business_Comb1
Divestitures and Business Combinations (Details 2) | 0 Months Ended |
Dec. 16, 2014 | |
Transtiional services | |
Term of transition services maximum | 24 months |
Divestitures_and_Business_Comb2
Divestitures and Business Combinations (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Acquisitions [Line Items] | ||
Goodwill | $823.50 | $859.50 |
Goodwill increase | ($9.70) | |
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 | |
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 |
Divestitures_and_Business_Comb3
Divestitures and Business Combinations (Details 4) (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchase price, net of cash acquired | ($4) | $256.40 | ||
Goodwill | 823.5 | 859.5 | ||
Unaudited pro forma revenues had business acquisitions occurred at the beginning of the period | 684.8 | |||
Unaudited pro forma net earnings had business acquisitions occurred at the beginning of the period | 65.5 | |||
Unaudited pro forma diluted net earnings per share had business acquisitions occurred at the beginning of the period | $0.63 | |||
EMTEQ, Inc. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchase price, net of cash acquired | 253.2 | |||
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 | 211.7 | |||
Smaller business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchase price, net of cash acquired | 63 | |||
Manufacturing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Identified intangible assets including goodwill | 514 | |||
Identified intangibles | 107 | |||
Goodwill | $406.20 | |||
Manufacturing | Customer contracts and relationships and developed technologies | ||||
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 | 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 | Manufacturing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Useful life (years) | 3 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 | Manufacturing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Useful life (years) | 5 years |
Divestitures_and_Business_Comb4
Divestitures and Business Combinations (Details 5) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | $823.50 | $859.50 | |
Unaudited pro forma revenues had business acquisitions occurred at the beginning of the period | 684.8 | ||
Unaudited pro forma net earnings had business acquisitions occurred at the beginning of the period | 65.5 | ||
Unaudited pro forma diluted net earnings per share had business acquisitions occurred at the beginning of the period | $0.63 | ||
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 | 194.3 | ||
Identified intangibles | 46.8 | ||
Accounts payable | -4.2 | ||
Other current and non-current liabilities | -16.8 | ||
Total purchase price | 253.2 | ||
2014 Acquisitions | Foreign | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable-trade | 12.1 | ||
Inventories | 7.9 | ||
Other current and non-current assets | 1.2 | ||
Property and equipment | 7.1 | ||
Goodwill | 211.9 | ||
Identified intangibles | 61 | ||
Accounts payable | -3.6 | ||
Other current and non-current liabilities | -22.9 | ||
Total purchase price | 274.7 | ||
Manufacturing | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | 406.2 | ||
Identified intangibles | $107 |
Inventories_Details
Inventories (Details) (Work-in-process inventories, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Work-in-process inventories | ||
Inventory [Line Items] | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $122.90 | $127.90 |
Excess over average costs on long-term contracts | $343.40 | $320.60 |
Inventories_Details_2
Inventories (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ||||
Purchased materials and component parts | $277.20 | $258.30 | ||
Work-in-process | 636.3 | 605.9 | ||
Finished goods | 57.1 | 61 | ||
Inventories | $970.60 | $925.20 | $970.60 | $925.20 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 327.4 | |
Accumulated Amortization | 112 | |
Intangible assets, net book value | 215.4 | 218.2 |
Customer contracts and relationships | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 99.8 | |
Accumulated Amortization | 14 | |
Intangible assets, net book value | 85.8 | |
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 | 166.7 | |
Accumulated Amortization | 77.1 | |
Intangible assets, net book value | 89.6 | |
Acquired technologies | Minimum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 5 years | |
Acquired technologies | Maximum | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Useful life (years) | 34 years | |
Trademarks and patents | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Finite lived intangible assets, original cost | 28 | |
Accumulated Amortization | 16.8 | |
Intangible assets, net book value | 11.2 | |
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 | 9.5 | |
Accumulated Amortization | 1.9 | |
Intangible assets, net book value | 7.6 | |
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 | 23.4 | |
Accumulated Amortization | 2.2 | |
Intangible assets, net book value | 21.2 | |
Useful life (years) | 15 years |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense on identifiable intangible assets | $4.30 | $2.90 | |
Expected amortization expenses in year one | 16 | ||
Expected amortization expenses in year two | 16 | ||
Expected amortization expenses in year three | 16 | ||
Expected amortization expenses in year four | 16 | ||
Expected amortization expenses in year five | 16 | ||
Goodwill decrease during period | -36 | ||
Adjustment to preliminary estimate of goodwill | ($9.70) |
LongTerm_debt_Details
Long-Term debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $2,154.70 | |
Less current portion of long-term debt | 16.1 | 16.2 |
Long-term debt, net of current maturities | 2,138.60 | 2,142.70 |
Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Outstanding long-term debt net | 2,172.50 | |
Outstanding long-term debt | 2,194.50 | |
Outstanding long-term debt, current | $22 |
LongTerm_Debt_Details_2
Long-Term Debt (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 16, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||||
Principal payments on long-term debt | $5.50 | ||||
Loss on extinguishment of debt | 243.6 | ||||
Outstanding letter of credit amount | 8.4 | 7.7 | |||
London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 0.75% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument term | 5 years | ||||
Revolving credit facility | 600 | ||||
Amount outstanding | 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 ABR (as defined therein) plus 100 basis points. | ||||
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 | ||||
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 ABR (as defined therein) 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 | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread percentage | 2.25% | ||||
Debt, interest rate | 4.00% | ||||
Senior Unsecured Notes 5.25 Percent Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Principal payments on long-term debt | 1,300 | ||||
Interest rate (as a percent) | 5.25% | ||||
Senior Unsecured Notes 6.875 Percent Due 2020 | |||||
Debt Instrument [Line Items] | |||||
Principal payments on long-term debt | $650 | ||||
Interest rate (as a percent) | 6.88% | ||||
Covenant Requirement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest coverage ratio | 300.00% | ||||
Covenant Requirement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Total leverage ratio | 525.00% |
Commitments_Contingencies_and_1
Commitments, Contingencies and Off-Balance Sheet Arrangements (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease, future minimum lease payments | $198 |
Accounting_for_StockBased_Comp1
Accounting for Stock-Based Compensation (Details) 10Q (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of discounted closing price for Employee Stock Purchase Plan | 85.00% | ||
Long Term Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation | $6.30 | $6.40 | |
Unrecognized compensation cost | 69.8 |
Revenues_and_Operating_Earning
Revenues and Operating Earnings by Reportable Segment (Details) 10Q (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $690 | $644.70 |
Operating earnings before corporate allocations related to discontinued operations | 125.7 | 114.2 |
Corporate allocations related to discontinued operations | -4.1 | |
Operating earnings | 125.7 | 110.1 |
Interest expense | 24.3 | 30.6 |
Earnings from continuing operations before income taxes | 101.4 | 79.5 |
Commercial Aircraft | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 526.1 | 523.5 |
Operating earnings before corporate allocations related to discontinued operations | 98.4 | 93.1 |
Business Jet | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 163.9 | 121.2 |
Operating earnings before corporate allocations related to discontinued operations | $27.30 | $21.10 |
Capital_Expenditures_by_Report
Capital Expenditures by Reportable Segment (Details) 10Q (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $25.30 | $56.20 |
Commercial Aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | 23.2 | 26.4 |
Business Jet | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | 2.1 | 6.2 |
Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $23.60 |
Goodwill_by_Reportable_Segment
Goodwill by Reportable Segment (Details) 10Q (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $823.50 | $859.50 |
Commercial Aircraft | ||
Goodwill [Line Items] | ||
Goodwill | 372 | 379.8 |
Business Jet | ||
Goodwill [Line Items] | ||
Goodwill | $451.50 | $479.70 |
Total_Assets_by_Reportable_Seg
Total Assets by Reportable Segment (Details) 10Q (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $3,202.60 | $3,169.70 |
Commercial Aircraft | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,178.10 | 2,139.30 |
Business Jet | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $1,024.50 | $1,030.40 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Details) 10Q (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | |||
Segment Reporting Information [Line Items] | |||
Total assets | $3,202.60 | $3,169.70 | |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | $292.60 | $338.10 |
Net_Earnings_Per_Common_Share_2
Net Earnings Per Common Share - Additional Information (Details) 10Q | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from determination of diluted earnings per common share | 0.7 | 0 |
Computations_of_Basic_and_Dilu
Computations of Basic and Diluted Earnings Per Share (Details) 10Q (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net earnings | $77.60 | $109 |
Basic weighted average common shares | 104.5 | 103.9 |
Effect of restricted shares issued | 0.4 | 0.4 |
Diluted weighted average common shares | 104.9 | 104.3 |
Basic net earnings per share - Continuing operations | $0.74 | $0.61 |
Basic net earnings per share - Discontinued operations | $0.44 | |
Basic net earnings per share | $0.74 | $1.05 |
Diluted net earnings per share - Continuing operations | $0.74 | $0.61 |
Diluted net earnings per share - Discontinued operations | $0.44 | |
Diluted net earnings per share | $0.74 | $1.05 |
Accounting_for_Uncertainty_in_1
Accounting for Uncertainty in Income Taxes - Additional Information (Details 10Q (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2015 | Sep. 30, 2014 |
Deferred Taxes Classification [Line Items] | |||
Liability for unrecognized tax benefits that would affect effective tax rate, if recognized | $73.20 | $73.10 | |
Number of tax years the company is currently open to audit by tax authorities | 8 years | ||
Maximum | |||
Deferred Taxes Classification [Line Items] | |||
Liability for unrecognized tax benefits for interest and penalties | $2 | $2 |