Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 04, 2015 | Oct. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | ORBITAL ATK, INC. | |
Entity Central Index Key | 866,121 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 4, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,828,770 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |||||
Sales | $ 1,134,886 | $ 743,202 | $ 2,264,842 | $ 1,457,562 | ||||
Cost of sales | 884,734 | 579,818 | 1,760,265 | 1,131,528 | ||||
Gross profit | 250,152 | 163,384 | 504,577 | 326,034 | ||||
Operating expenses: | ||||||||
Research and development | 28,666 | 8,942 | 53,330 | 14,105 | ||||
Selling | 28,137 | 23,213 | 60,641 | 46,288 | ||||
General and administrative | 69,384 | 50,962 | 140,847 | 113,555 | ||||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 123,965 | 80,267 | 249,759 | 152,086 | ||||
Net interest expense | (24,293) | (23,340) | (39,655) | (46,731) | ||||
Income from continuing operations, before income taxes and noncontrolling interest | 99,672 | 56,927 | 210,104 | 105,355 | ||||
Income taxes | 33,123 | 15,632 | 70,685 | 32,218 | ||||
Income from continuing operations, before noncontrolling interest | 66,549 | 41,295 | 139,419 | 73,137 | ||||
Less net income attributable to noncontrolling interest | 147 | 81 | 264 | 150 | ||||
Income from continuing operations of Orbital ATK, Inc. | 66,402 | 41,214 | 139,155 | 72,987 | ||||
Discontinued operations: | ||||||||
Income from discontinued operations, before income taxes | 0 | 80,411 | 0 | 164,147 | ||||
Income taxes | 0 | 26,516 | 0 | 56,427 | ||||
Income from discontinued operations | 0 | 53,895 | 0 | 107,720 | ||||
Net income attributable to Orbital ATK, Inc. | $ 66,402 | $ 95,109 | $ 139,155 | $ 180,707 | ||||
Basic earnings per common share from: | ||||||||
Continuing operations, basic (in dollars per share) | $ 1.13 | $ 1.30 | $ 2.36 | $ 2.31 | ||||
Discontinued operations, basic (in dollars per share) | 0 | 1.70 | 0 | 3.40 | ||||
Net income attributable to Orbital ATK, Inc., basic (in dollars per share) | $ 1.13 | $ 3 | $ 2.36 | $ 5.71 | ||||
Weighted-average number of common shares outstanding | 58,746 | 31,689 | 58,944 | 31,666 | ||||
Diluted earnings per common share from: | ||||||||
Continuing operations, diluted (in dollars per share) | $ 1.12 | $ 1.29 | $ 2.34 | $ 2.24 | ||||
Discontinued operations, diluted (in dollars per share) | 0 | 1.68 | 0 | 3.30 | ||||
Net income attributable to Orbital ATK, Inc., diluted (in dollars per share) | $ 1.12 | $ 2.97 | $ 2.34 | $ 5.54 | ||||
Weighted-average number of diluted common shares outstanding | 59,304 | 32,058 | 59,526 | 32,605 | ||||
Comprehensive income: | ||||||||
Net income attributable to Orbital ATK, Inc. and noncontrolling interest (from above) | $ 66,549 | $ 95,190 | $ 139,419 | $ 180,857 | ||||
Pension and other postretirement benefit liabilities: | ||||||||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $2,691, $2,954, $5,382 and $5,909, respectively | (4,335) | [1] | (4,761) | [2] | (8,670) | [1] | (9,524) | [2] |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(14,196), $(11,582), $(28,806) and $(23,165), respectively | 22,870 | [1] | 18,640 | [2] | 46,406 | [1] | 37,281 | [2] |
Change in fair value of derivatives, net of tax (expense) benefit of $1,896, $(407), $2,257 and $(2,508), respectively | (2,996) | 650 | (3,567) | 4,006 | ||||
Other, net of tax (expense) benefit of $55, $(54), $72 and $(154), respectively | (88) | 86 | (115) | 246 | ||||
Change in cumulative translation adjustment, net of tax expense of $0, $5,593, $0 and $4,844, respectively | 0 | (8,934) | 0 | (7,738) | ||||
Total other comprehensive income | 15,451 | 5,681 | 34,054 | 24,271 | ||||
Comprehensive income | 82,000 | 100,871 | 173,473 | 205,128 | ||||
Less comprehensive income attributable to noncontrolling interest | 147 | 81 | 264 | 150 | ||||
Comprehensive income attributable to Orbital ATK, Inc. | 81,853 | 100,790 | 173,209 | 204,978 | ||||
Pension and Other Postretirement Benefits | ||||||||
Pension and other postretirement benefit liabilities: | ||||||||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $2,691, $2,954, $5,382 and $5,909, respectively | (4,335) | [1] | (4,761) | [2] | (8,670) | [1] | (9,524) | [2] |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(14,196), $(11,582), $(28,806) and $(23,165), respectively | 22,870 | [1] | 18,640 | [2] | 46,406 | [1] | 37,281 | [2] |
Available-for-sale Securities | ||||||||
Pension and other postretirement benefit liabilities: | ||||||||
Other, net of tax (expense) benefit of $55, $(54), $72 and $(154), respectively | $ (88) | $ 86 | $ (115) | $ 246 | ||||
[1] | Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. | |||||||
[2] | Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Pension and other postretirement benefit liabilities: | ||||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, tax benefit | $ 2,691 | $ 2,954 | $ 5,382 | $ 5,909 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, tax expense | (14,196) | (11,582) | (28,806) | (23,165) |
Change in fair value of derivatives, tax benefit (expense) | 1,896 | (407) | 2,257 | (2,508) |
Other, tax benefit (expense) | 55 | (54) | 72 | (154) |
Change in cumulative translation adjustment, tax expense | $ 0 | $ 5,593 | $ 0 | $ 4,844 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 65,087 | $ 139,253 |
Net receivables | 1,882,675 | 1,793,556 |
Net inventories | 175,317 | 196,114 |
Income taxes receivable | 0 | 31,415 |
Deferred income taxes | 107,466 | 107,484 |
Prepaid expenses and other current assets | 129,427 | 121,084 |
Total current assets | 2,359,972 | 2,388,906 |
Net property, plant and equipment | 797,524 | 807,057 |
Goodwill | 1,875,269 | 1,875,269 |
Net intangibles | 139,284 | 165,207 |
Deferred income taxes | 121,319 | 140,321 |
Deferred charges and other noncurrent assets | 117,280 | 127,642 |
Total assets | 5,410,648 | 5,504,402 |
Current liabilities: | ||
Current portion of long-term debt | 40,000 | 59,997 |
Accounts payable | 227,051 | 158,137 |
Contract-related accruals | 268,129 | 357,296 |
Contract advances and allowances | 154,845 | 173,198 |
Accrued compensation | 140,800 | 135,528 |
Other current liabilities | 144,192 | 212,628 |
Total current liabilities | 975,017 | 1,096,784 |
Long-term debt | 1,497,000 | 1,528,504 |
Postretirement and postemployment benefits | 70,342 | 74,658 |
Pension | 811,459 | 851,001 |
Other noncurrent liabilities | 150,619 | 165,795 |
Total liabilities | $ 3,504,437 | $ 3,716,742 |
Commitments and contingencies (Notes 13 and 16) | ||
Common stock—$.01 par value: authorized—180,000,000 shares; issued and outstanding— 58,898,248 shares at October 4, 2015 and 59,427,942 shares at March 31, 2015 | $ 589 | $ 594 |
Additional paid-in-capital | 2,181,288 | 2,182,814 |
Retained earnings | 1,284,063 | 1,160,272 |
Accumulated other comprehensive loss | (813,594) | (847,648) |
Common stock in treasury, at cost—10,036,776 shares held at October 4, 2015 and 9,507,082 shares held at March 31, 2015 | (757,061) | (719,034) |
Total Orbital ATK, Inc. stockholders' equity | 1,895,285 | 1,776,998 |
Noncontrolling interest | 10,926 | 10,662 |
Total equity | 1,906,211 | 1,787,660 |
Total liabilities and equity | $ 5,410,648 | $ 5,504,402 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Oct. 04, 2015 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 180,000,000 | 180,000,000 |
Common stock, issued shares | 58,898,248 | 59,427,942 |
Common stock, outstanding shares | 58,898,248 | 59,427,942 |
Common stock in treasury, shares | 10,036,776 | 9,507,082 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 04, 2015 | Sep. 28, 2014 | |
Operating Activities | ||
Net income attributable to Orbital ATK, Inc. | $ 139,419 | $ 180,857 |
Net income from discontinued operations | 0 | 107,720 |
Income from continuing operations | 139,419 | 73,137 |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities of continuing operations: | ||
Depreciation | 63,057 | 35,317 |
Amortization of intangible assets | 26,241 | 1,547 |
Amortization of debt discount | 0 | 3,212 |
Amortization and write-off of deferred financing costs | 11,211 | 2,698 |
Deferred income taxes | (2,076) | (7,353) |
(Gain) loss on disposal of property | 802 | 1,008 |
Share-based plans expense | 15,049 | 7,927 |
Excess tax benefits from share-based plans | (4,460) | (6,783) |
Changes in assets and liabilities: | ||
Net receivables | (89,119) | (107,869) |
Net inventories | 20,797 | 4,847 |
Accounts payable | 64,703 | 54,635 |
Contract advances and allowances | (18,353) | 12,813 |
Accrued compensation | 12,184 | (36,126) |
Contract-related accruals | (89,167) | 19,999 |
Pension and other postretirement benefits | 17,303 | 5,365 |
Other assets and liabilities | (37,614) | (24,263) |
Cash provided by (used for) operating activities of continuing operations | 129,977 | 40,111 |
Cash provided by (used for) operating activities of discontinued operations | 0 | (15,596) |
Cash provided by (used for) operating activities | 129,977 | 24,515 |
Investing Activities | ||
Capital expenditures | (53,424) | (39,346) |
Proceeds from the disposition of property, plant and equipment | 13 | 2,158 |
Cash provided by (used for) investing activities of continuing operations | (53,411) | (37,188) |
Cash provided by (used for) investing activities of discontinued operations | 0 | (20,337) |
Cash provided by (used for) investing activities | (53,411) | (57,525) |
Financing Activities | ||
Borrowings on revolving credit facilities | 775,000 | 410,000 |
Payments on revolving credit facilities | (725,000) | (310,000) |
Payments made on bank debt | (14,999) | (13,250) |
Payments made to extinguish debt | (1,373,502) | (404,462) |
Proceeds from issuance of debt | 1,287,000 | 150,000 |
Payments made for debt issuance costs | (9,078) | (507) |
Purchase of treasury shares | (63,798) | (8,451) |
Dividends paid | (30,815) | (20,438) |
Excess tax benefits from share-based plans | 4,460 | 6,783 |
Cash provided by (used for) financing activities | (150,732) | (190,325) |
Effect of foreign exchange rate fluctuations on cash | 0 | (629) |
Decrease in cash and cash equivalents | (74,166) | (223,964) |
Cash and cash equivalents at beginning of period | 139,253 | 266,632 |
Cash and cash equivalents at end of period | 65,087 | 42,668 |
Supplemental Cash Flow Disclosures | ||
Interest, net | 35,811 | 36,340 |
Income taxes, net | 16,036 | 69,439 |
Noncash investing and financing and operating activity: | ||
Capital expenditures included in accounts payable | 5,296 | 3,423 |
Debt issuance costs included in accounts payable | 819 | 0 |
Treasury shares purchased included in accounts payable | $ 2,159 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock $.01 Par Value | Additional Paid-in- capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interest |
Balance at Mar. 31, 2014 | $ 1,922,138 | $ 318 | $ 534,015 | $ 2,789,264 | $ (680,809) | $ (731,213) | $ 10,563 |
Balance (in shares) at Mar. 31, 2014 | 31,842,642 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Comprehensive income | 205,128 | 180,707 | 24,271 | 150 | |||
Restricted stock grants | (3,312) | 3,312 | |||||
Restricted stock grants (in shares) | 29,497 | ||||||
Share-based compensation | 7,927 | 7,927 | |||||
Shares issued net of treasury stock withheld | (5,807) | (7,388) | 1,581 | ||||
Shares issued net of treasury stock withheld (in shares) | 59,193 | ||||||
Tax benefit related to share-based plans and other | 12,108 | 12,108 | |||||
Dividends | (20,438) | (20,438) | |||||
Employee benefit plans and other | (2,642) | $ 1 | 1,172 | (3,815) | |||
Employee benefit plans and other (in shares) | 22 | ||||||
Convertible debt premium, net of tax $42,322 | (112,555) | (112,555) | |||||
Balance at Sep. 28, 2014 | 2,005,859 | $ 319 | 431,967 | 2,949,533 | (656,538) | (730,135) | 10,713 |
Balance (in shares) at Sep. 28, 2014 | 31,931,354 | ||||||
Balance at Mar. 31, 2015 | 1,787,660 | $ 594 | 2,182,814 | 1,160,272 | (847,648) | (719,034) | 10,662 |
Balance (in shares) at Mar. 31, 2015 | 59,427,942 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Comprehensive income | 173,473 | 139,155 | 34,054 | 264 | |||
Exercise of stock options | 6,875 | $ 1 | (1,461) | 8,335 | |||
Exercise of stock options (in shares) | 110,197 | ||||||
Restricted stock grants | 1 | $ 1 | (6,429) | 6,429 | |||
Restricted stock grants (in shares) | 72,125 | ||||||
Share-based compensation | 15,049 | 15,049 | |||||
Treasury stock purchased | (60,777) | $ (8) | (60,769) | ||||
Treasury stock purchased (in shares) | (825,986) | ||||||
Shares issued net of treasury stock withheld | (4,825) | $ 1 | (14,183) | 9,357 | |||
Shares issued net of treasury stock withheld (in shares) | 117,878 | ||||||
Tax benefit related to share-based plans and other | 4,438 | 4,438 | |||||
Dividends | (15,364) | (15,364) | |||||
Employee benefit plans and other | (319) | 1,060 | (1,379) | ||||
Employee benefit plans and other (in shares) | 3,908 | ||||||
Balance at Oct. 04, 2015 | $ 1,906,211 | $ 589 | $ 2,181,288 | $ 1,284,063 | $ (813,594) | $ (757,061) | $ 10,926 |
Balance (in shares) at Oct. 04, 2015 | 58,898,248 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Thousands | 6 Months Ended |
Sep. 28, 2014USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Convertible debt premium, tax | $ 42,322 |
Basis of Presentation and Respo
Basis of Presentation and Responsiblity for Interim Financial Statements | 6 Months Ended |
Oct. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements The unaudited condensed consolidated financial statements of Orbital ATK, Inc. ("the Company" or "Orbital ATK") as set forth in this quarterly report have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States can be condensed or omitted. The Company’s accounting policies are described in the notes to the consolidated financial statements in its Annual Report on Form 10-K for the fiscal year ended March 31, 2015 ("fiscal 2015 "). Management is responsible for the unaudited condensed consolidated financial statements included in this document. The condensed consolidated financial statements included in this document are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of the Company’s financial position as of October 4, 2015 , and its results of operations and cash flows for the quarters and six months ended October 4, 2015 and September 28, 2014 . On February 9, 2015, the Company completed a tax-free spin-off of and distribution of Sporting Group to its stockholders (the "Distribution") as a new public company called Vista Outdoor Inc. ("Vista Outdoor"). Immediately following the Distribution, the Company combined with Orbital Sciences Corporation ("Orbital") through the merger of a Company subsidiary with Orbital (the "Merger"). These transactions are discussed in greater detail in Note 4. Following the Distribution and Merger, the Company changed its name from Alliant Techsystems Inc. to Orbital ATK, Inc. As a result of the Distribution, Sporting Group is no longer reported within the Company’s results from continuing operations but is reported as a discontinued operation for all prior periods presented. The Company used the acquisition method to account for the Merger; accordingly, the results of Orbital have been included in the Company's consolidated financial statements since the date of the Merger. Following the Distribution and Merger, the Company reorganized its business groups and realigned its reporting segments. The Company’s remaining businesses, combined with the businesses of Orbital, are now reported in three segments: Flight Systems Group, Defense Systems Group and Space Systems Group, as discussed in Note 20. The business comprising Sporting Group is presented as a discontinued operation - see Note 4. Sales, expenses, cash flows, assets and liabilities can and do vary during the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its fiscal 2015 Annual Report on Form 10-K. Fiscal Year. The Company's interim quarterly periods are based on 13-week periods and end on Sundays. On March 10, 2015, the Company's Board of Directors approved a change in the Company's fiscal year end from March 31 to a fiscal year ending on December 31 of each year. The Company filed an Annual Report on Form 10-K for the fiscal year ended March 31, 2015. The period covered in this report on Form 10-Q will be included in the Company's transition period of April 1, 2015 to December 31, 2015 which will be reported on a Form 10-K. |
New Accounting Pronoucements
New Accounting Pronoucements | 6 Months Ended |
Oct. 04, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements The Company considers the applicability and impact of all accounting standards updates ("ASUs"). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial position or results of operations. In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance. On July 9, 2015 the FASB voted to approve a one year delay of the effective date of the new standard. Accordingly, the new standard will be effective for periods beginning after December 15, 2017, although companies may voluntarily adopt the new standard as of the original effective date. This guidance can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact this standard will have on the Company's consolidated financial statements or disclosures. In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis." This update is intended to improve targeted areas of consolidation guidance by simplifying the consolidation evaluation process and by placing more emphasis on risk of loss when determining a controlling financial interest. The provisions of this ASU are effective for interim and annual periods beginning after December 15, 2015. The Company is in the process of evaluating the impact this standard will have on the Company's consolidated financial statements or disclosures. In May 2015, the FASB issued ASU No. 2015-07, "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." This ASU removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Such investments should be disclosed separate from the fair value hierarchy. This ASU will be effective retrospectively for the Company for interim and annual periods beginning after December 15, 2015. The adoption of this guidance is not expected to have an impact on the Company's consolidated financial statements but will impact certain disclosures. In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments." This ASU eliminates the requirement to restate prior period financial statements for measurement period adjustments in purchase accounting. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. This ASU will be effective for the Company for interim and annual periods beginning after December 15, 2015. The Company is in the process of evaluating the impact this standard will have on the Company's consolidated financial statements or disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Oct. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The current authoritative guidance on fair value clarifies the definition of fair value, prescribes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about the use of fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation techniques required by the current authoritative literature are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1—Quoted prices for identical instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Significant inputs to the valuation model are unobservable. The following section describes the valuation methodologies used by the Company to measure its financial instruments at fair value. Investments in marketable securities —The Company's investments in marketable securities represent investments held in a common collective trust ("CCT") that primarily invests in fixed income securities which are used to pay benefits under a nonqualified supplemental executive retirement plan for certain executives and highly compensated employees. Investments in a collective investment vehicle are valued by multiplying the investee company's net asset value per share with the number of units or shares owned at the valuation date as determined by the investee company. Net asset value per share is determined by the investee company's custodian or fund administrator by deducting from the value of the assets of the investee company all of its liabilities and dividing the resulting number by the outstanding number of shares or units. Investments held by the CCT, including collateral invested for securities on loan, are valued on the basis of valuations furnished by a pricing service approved by the CCT's investment manager, which determines valuations using methods based on market transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders, or at fair value as determined in good faith by the CCT's investment manager. The fair value of these securities is included within other current assets and deferred charges and other noncurrent assets on the consolidated balance sheet. Derivative financial instruments and hedging activities —In order to manage its exposure to commodity pricing, foreign currency risk and interest rate risk on debt, the Company periodically utilizes commodity, foreign currency and interest rate derivatives, which are considered Level 2 instruments. As discussed further in Note 7 , the Company has outstanding commodity forward contracts that were entered into to hedge forecasted purchases of copper and zinc, as well as outstanding foreign currency forward contracts that were entered into to hedge forecasted transactions denominated in a foreign currency. Commodity derivatives are valued based on prices of futures exchanges and recently reported transactions in the marketplace. During the fiscal year ended March 31, 2014 ("fiscal 2014"), the Company entered into five interest rate swaps. These swaps are valued based on future LIBOR rates and the established fixed rate is based primarily on quotes from banks. Foreign currency derivatives are valued based on observable market transactions of spot currency rates and forward currency prices. Long-term Debt —The fair value of the variable-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities. The fair value of the fixed-rate debt is based on market quotes for each issuance. The Company has considered these to be Level 2 instruments. The following table sets forth by level within the fair value hierarchy the Company's financial assets and liabilities that are measured at fair value on a recurring basis: October 4, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Marketable securities $ — $ 11,428 $ — Derivatives — 1,993 — Liabilities: Derivatives $ — $ 11,132 $ — March 31, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Marketable securities $ — $ 10,327 $ — Derivatives — 7,823 — Liabilities: Derivatives $ — $ 11,137 $ — The following table presents the Company's assets and liabilities that are not measured at fair value on a recurring basis. The carrying values and estimated fair values were as follows: October 4, 2015 March 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fixed-rate debt $ 700,000 $ 706,875 $ 300,000 $ 306,000 Variable-rate debt 837,000 837,000 1,288,501 1,283,539 |
Mergers, Acquisitions and Dives
Mergers, Acquisitions and Divestitures | 6 Months Ended |
Oct. 04, 2015 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Divestiture | Mergers, Acquisitions and Divestitures On February 9, 2015, the Company completed the spin-off and Distribution of Sporting Group to its stockholders and merged with Orbital pursuant to a transaction agreement, dated April 28, 2014 (the "Transaction Agreement"). The Company completed the Merger with Orbital in order to create a global aerospace and defense company with greater technical and industrial capabilities and increased financial resources. Both the Distribution and Merger were structured to be tax-free to U.S. stockholders for U.S. federal income tax purposes. Under the Transaction Agreement, a subsidiary of the Company merged with and into Orbital, with Orbital continuing as a wholly-owned subsidiary of the Company. Pursuant to the Distribution, Company stockholders received 2 shares of Vista Outdoor for each share of Company common stock held. The Company distributed a total of approximately 63.9 million shares of Vista Outdoor common stock to its stockholders of record as of the close of business on February 2, 2015 the record date for the Distribution. As a result of the Distribution, Sporting Group is no longer reported within the Company’s results from continuing operations but is reported as a discontinued operation for all prior periods presented in accordance with ASC Topic 205, "Presentation of Financial Statements." In connection with the Merger, each outstanding share of Orbital common stock was converted into the right to receive 0.449 shares of Company common stock. The Company issued approximately 27.4 million shares of common stock to Orbital stockholders. Immediately following the Merger, Orbital stockholders owned 46.2% of the common stock of the Company and existing stockholders owned 53.8% . Based on the closing price of the Company's common stock following the Distribution on February 9, 2015 as reported on the New York Stock Exchange, the aggregate value of the consideration paid or payable to former holders of Orbital common stock was approximately $1.8 billion . The Company used the acquisition method to account for the Merger; accordingly, the results of Orbital have been included in the Company's consolidated financial statements since the date of the Merger. Preliminary Valuation of Net Assets Acquired Certain estimated values, including: goodwill, intangibles, property, plant and equipment, and deferred taxes, are not final and the preliminary purchase price allocations are subject to change as the Company completes the analysis of the fair value at the date of the Merger. The final determination of the fair value of assets and liabilities will be completed within the 12-month measurement period from the date of the Merger as required. Due to the significance of the Merger, the Company believes that it may use all of this measurement period to adequately analyze and assess the fair values of acquired assets and liabilities. This assessment includes the evaluation of the significant contractual and operational factors and assumptions associated with the fair values of contract-related intangibles and property, plant and equipment and the related tax impacts. No adjustments were made during the six-month period ended October 4, 2015 to the preliminary purchase price allocations recorded in the Company's financial statements as of March 31, 2015. The consideration paid for Orbital's assets and liabilities was determined using the fair market value of the Company stock issued at the date of the Merger along with restricted stock awards granted to certain employees of Orbital. The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the February 9, 2015 closing date of the Merger and the preliminary goodwill generated from the transaction: Purchase Price: Value of common shares issued to Orbital shareholders (1) $ 1,749,323 Value of replacement equity-based awards to holders of Orbital equity-based awards (2) 8,654 Total purchase price $ 1,757,977 Preliminary value of assets acquired and liabilities assumed: Cash $ 253,734 Net receivables 562,639 Net inventories 75,294 Intangibles 164,000 Property, plant and equipment 281,654 Other assets 36,878 Goodwill 866,106 Accounts payable (52,028 ) Deferred tax liabilities, net (51,537 ) Other liabilities (378,763 ) Total purchase price $ 1,757,977 (1) Equals 27.4 million Orbital ATK shares issued to Orbital shareholders multiplied by $63.94 , the closing share price of the Company’s common stock on the closing date of the Merger. (2) The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger. Goodwill recognized from the Merger primarily relates to the expanded market opportunities, expected synergies and benefits of increased scale and scope of combined human, physical and financial resources attributable to merging the operations of the two companies. As stated above, the Merger was a tax-free transaction and as such, goodwill is not amortized for tax purposes. In determining the fair values of identifiable assets acquired and liabilities assumed, a review was conducted for any significant contingent assets or liabilities existing as of the Merger date. The preliminary assessment did not identify any significant contingencies related to any legal or government action. Discontinued Operations Sales from discontinued operations totaled $530,047 and $1,091,077 for the quarter and six months ended September 28, 2014 , respectively. Ongoing Business with Vista Outdoor In conjunction with the Distribution , the Company entered into two supply agreements and one transition services agreement ("TSA") with Vista Outdoor. The chairman and chief executive officer of Vista Outdoor is a member of the Company's board of directors. The supply agreements call for Vista Outdoor to purchase certain minimum quantities of ammunition and gun powder from the Company through March 2018. The supply agreements expire in 2017 and 2018 and may be extended in one -to- three year increments. Under the terms of the TSA, the Company provides various administrative services to Vista Outdoor for up to 12 months and tax assistance services for a term of 18 months that may be extended to 30 months. Costs incurred for services under the TSA are charged to Vista Outdoor. Sales to Vista Outdoor under the supply agreements were $48,839 and $105,528 for the quarter and six months ended October 4, 2015 , respectively. Sales to Sporting Group, previously reported as intercompany sales and eliminated in consolidation were $67,231 and $119,649 for the quarter and six months ended September 28, 2014 , respectively. |
Goodwill, Net Intangibles and D
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets | 6 Months Ended |
Oct. 04, 2015 | |
Goodwill and Deferred Charges and Other Non-Current Assets | |
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets | Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets The changes in the carrying amount of goodwill by segment were as follows: Flight Systems Group Defense Systems Group Space Systems Group Total Balance, March 31, 2015 $ 799,362 $ 366,947 $ 708,960 $ 1,875,269 No change — — — — Balance, October 4, 2015 $ 799,362 $ 366,947 $ 708,960 $ 1,875,269 Net intangibles consisted of the following: October 4, 2015 March 31, 2015 Gross Accumulated Net Intangibles Gross Accumulated Net Intangibles Amortizing intangibles: Contract backlog $ 164,000 $ (30,833 ) $ 133,167 $ 164,000 $ (6,167 ) $ 157,833 Patented technology 11,018 (5,913 ) 5,105 10,700 (5,350 ) 5,350 Customer relationships and other 24,294 (23,282 ) 1,012 24,294 (22,270 ) 2,024 Intangibles $ 199,312 $ (60,028 ) $ 139,284 $ 198,994 $ (33,787 ) $ 165,207 The assets in the table above are being amortized using a straight-line method over a weighted-average remaining period of 2.6 years. Amortization expense for the quarter and six months ended October 4, 2015 was $13,218 and $26,241 , respectively. Amortization expense for the quarter and six months ended September 28, 2014 was $772 and $1,547 , respectively. The Company expects amortization expense related to these assets to be as follows: Contract Backlog Patents and Customer Relationships Total Remainder of 2015 $ 12,333 $ 800 $ 13,133 2016 49,333 1,682 51,015 2017 49,333 1,176 50,509 2018 10,833 1,123 11,956 2019 5,335 1,068 6,403 Thereafter 6,000 268 6,268 Total $ 133,167 $ 6,117 $ 139,284 Deferred charges and other noncurrent assets consisted of the following: October 4, 2015 March 31, 2015 Gross debt issuance costs $ 17,829 $ 22,280 Less accumulated amortization (2,575 ) (5,712 ) Net debt issuance costs 15,254 16,568 Environmental remediation receivable 15,717 23,771 Other noncurrent assets 86,309 87,303 Total deferred charges and other noncurrent assets $ 117,280 $ 127,642 |
Earnings Per Share Data
Earnings Per Share Data | 6 Months Ended |
Oct. 04, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Data | Earnings Per Share Data Basic earnings per share ("EPS") is computed based upon the weighted average number of common shares outstanding for each period. Diluted EPS is computed based on the weighted-average number of common shares and common equivalent shares outstanding for each period. Common equivalent shares represent the effect of stock-based awards and contingently issuable shares related to the Company's Convertible Senior Subordinated Notes during each period presented, which, if exercised, earned or converted, would have a dilutive effect on EPS (the Company's Convertible Senior Subordinated Notes were retired in the quarter ended September 28, 2014). In computing EPS for the quarters and six months ended October 4, 2015 and September 28, 2014 , earnings reported for each respective period were divided by weighted-average shares outstanding, determined as follows (in thousands): Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Basic 58,746 31,689 58,944 31,666 Dilutive effect of stock-based awards 558 314 582 336 Dilutive effect of contingently issuable shares — 55 — 603 Diluted 59,304 32,058 59,526 32,605 Anti-dilutive stock options excluded from the calculation of diluted shares 89 44 89 44 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 04, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to market risks arising from adverse changes in commodity prices affecting the cost of raw materials and energy, interest rates and foreign exchange risks. In the normal course of business, these risks are managed through a variety of strategies, including the use of derivative instruments. Commodity forward contracts are periodically used to hedge forecasted purchases of certain commodities, foreign currency exchange contracts are used to hedge forecasted transactions denominated in a foreign currency, and the Company periodically uses interest rate swaps to hedge forecasted interest payments and the risk associated with variable interest rates on long-term debt. The Company's copper and zinc forward contracts essentially establish a fixed price for the underlying commodity and are designated and qualify as effective cash flow hedges of purchases of the commodity. Ineffectiveness is calculated as the amount by which the change in the fair value of the derivatives exceeds the change in the fair value of the anticipated commodity purchases. The Company entered into interest rate swaps in fiscal 2014 whereby the Company pays a fixed rate on a total notional amount of $400,000 and receives one-month LIBOR. The fair value of interest rate swap agreements approximates the amount at which they could be settled, based on estimates obtained from the counterparties. The Company performs assessments of the effectiveness of hedge instruments on a quarterly basis and determined the hedges to be highly effective. The counterparties to the interest rate swap agreements expose the Company to credit risk in the event of nonperformance. However, at October 4, 2015 , five of the outstanding swap agreements were in a net liability position which would require the Company to make the net settlement payments to the counterparties. The Company does not anticipate nonperformance by the Company's counterparties. The Company does not hold or issue derivative financial instruments for trading purposes. The Company entered into foreign currency forward contracts during fiscal 2015 to hedge forecasted cash receipts from a customer and forecasted inventory purchases and subsequent payments. These transactions were designated and qualified as effective cash flow hedges. Ineffectiveness with respect to forecasted inventory purchases or customer cash receipts was calculated based on changes in the forward rate until the anticipated purchase or cash receipt occurs; ineffectiveness of the hedge of the accounts payable was evaluated based on the change in fair value of its anticipated settlement. The fair value of the commodity and foreign currency forward contracts is recorded within other assets or liabilities, as appropriate, and the effective portion is reflected in accumulated other comprehensive income (loss) in the financial statements. The gains or losses on the commodity forward contracts are recorded in inventory as the commodities are purchased. The gains or losses on the foreign currency forward contracts are recorded in earnings when the related inventory is sold. As of October 4, 2015 , the Company had the following outstanding commodity forward contracts which hedge forecasted purchases: Number of Pounds Copper 11,200 Zinc 2,560 As of October 4, 2015 , the Company had three outstanding interest rate swaps with notional amounts of $100,000 each with maturity dates in August 2016, 2017 and 2018, as well as two interest rate swaps with notional amounts of $50,000 each with maturity dates in November 2016 and 2017. See Note 12 for additional information. As of October 4, 2015 , the Company had the following outstanding foreign currency forward contracts in place: Quantity Hedged Euros Sold 86,920 Euros Purchased 16,062 The table below presents the fair value and location of the Company's derivative instruments designated as hedging instruments in the consolidated balance sheets as of the periods presented. Asset Derivatives Fair Value Liability Derivatives Fair Value Location October 4, 2015 March 31, 2015 October 4, 2015 March 31, 2015 Commodity forward contracts Other current assets / $ — $ 1,054 $ 3,850 $ 899 Commodity forward contracts Deferred charges and — 271 — 2 Foreign currency forward contracts Other current assets / 1,123 2,664 1,962 5,101 Foreign currency forward contracts Deferred charges and 870 3,834 76 897 Interest rate contracts Deferred charges and — — 5,244 4,238 Total $ 1,993 $ 7,823 $ 11,132 $ 11,137 Due to the nature of the Company's business, the benefits associated with the commodity contracts may be passed on to the customer and not realized by the Company. For the periods presented below, the derivative gains and losses in the condensed consolidated statements of comprehensive income related to derivative instruments were as follows: Gain (Loss) Reclassified from AOCI Gain (Loss) Recognized in Income Location Amount Location Amount Quarter ended October 4, 2015 Commodity forward contracts Cost of Sales $ (919 ) Cost of Sales $ — Interest rate contracts Interest expense (1,011 ) Interest expense — Foreign currency forward contracts Cost of Sales (834 ) Cost of Sales — Quarter ended September 28, 2014 Commodity forward contracts Cost of Sales $ 752 Cost of Sales $ — Interest rate contracts Interest expense (929 ) Interest expense — Foreign currency forward contracts Cost of Sales — Cost of Sales — Six months ended October 4, 2015 Commodity forward contracts Cost of Sales $ (1,109 ) Cost of Sales $ — Interest rate contracts Interest expense (2,031 ) Interest expense — Foreign currency forward contracts Cost of Sales (1,390 ) Cost of Sales — Six months ended September 28, 2014 Commodity forward contracts Cost of Sales $ (1,772 ) Cost of Sales $ — Interest rate contracts Interest expense (1,970 ) Interest expense — Foreign currency forward contracts Cost of Sales — Cost of Sales — All derivatives used by the Company during the periods presented were designated as hedging instruments for accounting purposes. The Company expects the remaining unrealized losses will be realized and reported in cost of sales as the cost of the commodities is included in cost of sales. Estimated and actual gains or losses will change as market prices change. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) ("AOCI") | 6 Months Ended |
Oct. 04, 2015 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (AOCI) | Accumulated Other Comprehensive Income (Loss) ("AOCI") The following table summarizes the components and changes in the balance of AOCI, net of income taxes: Quarter Ended October 4, 2015 Six Months Ended October 4, 2015 Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Total Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Total Balance, beginning of period $ (2,644 ) $ (827,444 ) $ 1,043 $ (829,045 ) $ (2,073 ) $ (846,645 ) $ 1,070 $ (847,648 ) Net change in fair value of derivatives (4,696 ) — — (4,696 ) (6,356 ) — — (6,356 ) Net losses reclassified from AOCI, offsetting the price paid to suppliers (1) 1,700 — — 1,700 2,789 — — 2,789 Net actuarial losses reclassified from AOCI (2) — 22,870 — 22,870 — 46,406 — 46,406 Prior service costs reclassified from AOCI (2) — (4,335 ) — (4,335 ) — (8,670 ) — (8,670 ) Other — — (88 ) (88 ) — — (115 ) (115 ) Balance, October 4, 2015 $ (5,640 ) $ (808,909 ) $ 955 $ (813,594 ) $ (5,640 ) $ (808,909 ) $ 955 $ (813,594 ) (1) Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. (2) Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. Quarter Ended September 28, 2014 Six Months Ended September 28, 2014 Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Cumulative Translation Adjustment Total Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Cumulative Translation Adjustment Total Balance, beginning of period $ (1,666 ) $ (661,236 ) $ 992 $ (309 ) $ (662,219 ) $ (5,022 ) $ (675,114 ) $ 832 $ (1,505 ) $ (680,809 ) Net change in fair value of derivatives 541 — — — 541 1,705 — — — 1,705 Net losses reclassified from AOCI, offsetting the price paid to suppliers (1) 109 — — — 109 2,301 — — — 2,301 Net actuarial losses reclassified from AOCI (2) — 18,640 — — 18,640 — 37,281 — — 37,281 Prior service costs reclassified from AOCI (2) — (4,761 ) — — (4,761 ) — (9,524 ) — — (9,524 ) Net change in cumulative translation adjustment — — — (8,934 ) (8,934 ) — — — (7,738 ) (7,738 ) Other — — 86 — 86 — — 246 — 246 Balance, September 28, 2014 $ (1,016 ) $ (647,357 ) $ 1,078 $ (9,243 ) $ (656,538 ) $ (1,016 ) $ (647,357 ) $ 1,078 $ (9,243 ) $ (656,538 ) (1) Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. (2) Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. |
Net Receivables
Net Receivables | 6 Months Ended |
Oct. 04, 2015 | |
Receivables [Abstract] | |
Net Receivables | Net Receivables Net receivables, including amounts due under long-term contracts, consisted of the following: October 4, 2015 March 31, 2015 Billed receivables $ 276,919 $ 278,031 Unbilled receivables 1,606,839 1,520,217 Less allowance for doubtful accounts (1,083 ) (4,692 ) Net receivables $ 1,882,675 $ 1,793,556 Receivable balances are shown net of customer progress payments received of $549,526 as of October 4, 2015 and $585,932 as of March 31, 2015 . Unbilled receivables represent the balance of recoverable costs and accrued profit, comprised principally of revenue recognized on contracts for which billings have not been presented to the customer because the amounts were earned but not contractually billable as of the balance sheet date. As of October 4, 2015 and March 31, 2015 , the net receivable balance includes contract-related unbilled receivables which the Company does not expect to collect within the next 12 months of $278,600 and $298,900 , respectively. |
Net Inventories
Net Inventories | 6 Months Ended |
Oct. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Net Inventories | Net Inventories Net inventories consisted of the following: October 4, 2015 March 31, 2015 Raw materials $ 76,886 $ 69,112 Contracts in process 97,032 126,038 Finished goods 1,399 964 Net inventories $ 175,317 $ 196,114 |
Other Current and Noncurrent Li
Other Current and Noncurrent Liabilities | 6 Months Ended |
Oct. 04, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current and Noncurrent Liabilities | Other Current and Noncurrent Liabilities Other current and noncurrent liabilities consisted of the following: October 4, 2015 March 31, 2015 Other current liabilities: Employee benefits and insurance, including pension and other postretirement benefits $ 55,518 $ 53,588 Deferred lease obligation 28,789 30,857 Warranty 5,524 9,555 Interest 441 7,801 Other 53,920 110,827 Total other current liabilities $ 144,192 $ 212,628 Other noncurrent liabilities: Environmental remediation $ 38,839 $ 43,326 Income taxes 36,380 34,415 Deferred lease obligation 19,863 21,036 Management nonqualified deferred compensation plan 17,165 14,853 Other 38,372 52,165 Total other noncurrent liabilities $ 150,619 $ 165,795 The Company provides product warranties, which entail repair or replacement of non-conforming items, in conjunction with sales of certain products. Estimated costs related to warranties are recorded in the period in which the related product sales occur. The warranty liability recorded at each balance sheet date reflects the estimated liability for warranty coverage for products delivered based on historical information and current trends. The following is a reconciliation of the changes in the Company's product warranty liability during the periods presented: Balance, March 31, 2015 $ 9,555 Payments made (350 ) Warranties issued 57 Changes related to preexisting warranties (3,517 ) Balance, July 5, 2015 5,745 Payments made (61 ) Warranties issued — Changes related to preexisting warranties (160 ) Balance, October 4, 2015 $ 5,524 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Oct. 04, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt, including the current portion, consisted of the following: October 4, 2015 March 31, 2015 Senior Credit Facility: Term Loan A due 2020 $ 800,000 $ — Revolving Credit Facility due 2020 37,000 — 5.25% Senior Notes due 2021 300,000 300,000 5.50% Senior Notes due 2023 400,000 — Former Senior Credit Facility: Term A Loan due 2018 — 946,875 Term A Loan due 2019 — 144,375 Term B Loan due 2020 — 197,251 Revolving Credit Facility due 2018 — — Carrying amount of long-term debt 1,537,000 1,588,501 Less: Current portion of long-term debt 40,000 59,997 Long-term debt $ 1,497,000 $ 1,528,504 Senior Credit Facility In September 2015, the Company refinanced its Former Senior Credit Facility (see below) with a new senior credit facility (the "Senior Credit Facility"), which is comprised of a term loan of $800,000 (the "Term Loan A") and a revolving credit facility of $1,000,000 (the "Revolving Credit Facility"), both of which mature in 2020. The Term Loan A is subject to quarterly principal payments of $10,000 , with the remaining balance due on September 29, 2020. Substantially all tangible and intangible assets of the Company and certain domestic subsidiaries, excluding real property, are pledged as collateral under the Senior Credit Facility. Borrowings under the Senior Credit Facility bear interest at a per annum rate equal to either the sum of a base rate plus a margin or the sum of a LIBOR rate plus a margin. Each margin is based on the Company's total leverage ratio. Based on the Company's current total leverage ratio, the current base rate margin is 0.5% and the current LIBOR margin is 1.5% . The weighted-average interest rate for the Term Loan A, after taking into account the interest rate swaps discussed below, was 2.19% at October 4, 2015 . The Company pays a quarterly commitment fee on the unused portion of the Revolving Credit Facility based on its total leverage ratio. Based on the Company's current total leverage ratio, this current fee is 0.25% . As of October 4, 2015 , the Company had borrowings of $37,000 against the Revolving Credit Facility and had outstanding letters of credit of $152,894 , which reduced amounts available on the Revolving Credit Facility to $810,106 . As a result of this refinancing, the Company recorded a charge of $9,482 , reported in net interest expense, to write off a portion of the unamortized debt issuance costs associated with the Former Senior Credit Facility. The remaining unamortized debt issuance costs associated with the Former Senior Credit Facility of $3,361 will be amortized to interest expense along with $3,903 of debt issuance costs incurred related to the Senior Credit Facility over five years , the term of the Senior Credit Facility. 5.50% Notes In September 2015, the Company issued $400,000 aggregate principal amount of 5.50% Senior Notes (the "5.50% Notes") that mature on October 1, 2023. These notes are general unsecured obligations. Interest on these notes is payable on April 1 and October 1 of each year. The Company has the right to redeem some or all of these notes from time to time on or after October 1, 2018, at specified redemption prices. Prior to October 1, 2018, the Company may redeem some or all of these notes at a price equal to 100% of their principal amount plus accrued and unpaid interest to the date of redemption and a specified make-whole premium. In addition, prior to October 1, 2018, the Company may redeem up to 35% of the aggregate principal amount of these notes with the net cash proceeds of certain equity offerings, at a price equal to 105.5% of their principal amount plus accrued and unpaid interest to the date of redemption. Debt issuance costs of $5,994 related to these notes are being amortized to interest expense over eight years , the term of the notes. 5.25% Notes In October 2013, the Company issued $300,000 aggregate principal amount of 5.25% Senior Notes (the "5.25% Notes") that mature on October 1, 2021. These notes are general unsecured obligations. Interest on these notes is payable on April 1 and October 1 of each year. The Company has the right to redeem some or all of these notes from time to time on or after October 1, 2016, at specified redemption prices. Prior to October 1, 2016, the Company may redeem some or all of these notes at a price equal to 100% of their principal amount plus accrued and unpaid interest to the date of redemption and a specified make-whole premium. In addition, prior to October 1, 2016, the Company may redeem up to 35% of the aggregate principal amount of these notes with the net cash proceeds of certain equity offerings, at a price equal to 105.25% of their principal amount plus accrued and unpaid interest to the date of redemption. Debt issuance costs of approximately $2,625 related to these notes are being amortized to interest expense over eight years , the term of the notes. Former Senior Credit Facility In September 2015, the Company refinanced and paid off its former senior credit facility (the "Former Senior Credit Facility") which was comprised of a term loan of $1,160,000 (the "Former Term A Loan"), a term loan of $250,000 (the "Former Term B Loan") and a $700,000 revolving credit facility (the "Former Revolving Credit Facility"), all of which were to mature from 2018 to 2020. The Former Term A Loan and the Former Term B loan were subject to quarterly principal payments of $14,500 and $499 , respectively. Substantially all domestic tangible and intangible assets of the Company and its subsidiaries were pledged as collateral under the Former Senior Credit Facility. Borrowings under the Former Senior Credit Facility were charged interest at a rate equal to either the sum of a base rate plus a margin or the sum of a Eurodollar rate plus a margin. Each margin was based on the Company's senior secured credit ratings. The Company paid an annual commitment fee on the unused portion of the Former Revolving Credit Facility based on its senior secured credit ratings. Interest Rate Swaps During fiscal 2014, the Company entered into five floating-to-fixed interest rate swap agreements in order to manage interest costs and the risk associated with variable interest rates. As of October 4, 2015 , the Company had the following cash flow hedge interest rate swaps in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ (466 ) 0.87 % 0.19 % August 2016 Non-amortizing swap 100,000 (1,421 ) 1.29 % 0.19 % August 2017 Non-amortizing swap 100,000 (2,670 ) 1.69 % 0.19 % August 2018 Non-amortizing swap 50,000 (148 ) 0.65 % 0.19 % November 2016 Non-amortizing swap 50,000 (540 ) 1.10 % 0.19 % November 2017 The amount to be paid or received under these swaps is recorded as an adjustment to interest expense. Rank and Guarantees The 5.50% Notes and the 5.25% Notes are the Company’s general unsecured and unsubordinated obligations and rank equally in right of payment with all of the Company’s existing and future unsecured and unsubordinated indebtedness, rank senior in right of payment to all of the Company’s existing and future subordinated indebtedness and are effectively subordinated to all existing and future senior secured indebtedness, including the Senior Credit Facility, to the extent of the collateral. The 5.50% Notes and the 5.25% Notes are guaranteed on an unsecured basis, jointly and severally and fully and unconditionally, by substantially all of the Company's domestic subsidiaries. The Senior Credit Facility obligations are guaranteed on a secured basis, jointly and severally and fully and unconditionally, by substantially all of the Company's domestic subsidiaries. All of these guarantor subsidiaries are 100% owned by the Company. The Company, exclusive of these guarantor subsidiaries, has no independent operations or material assets. The guarantee by any Subsidiary Guarantor of the Company's obligations in respect of the 5.50% Notes and the 5.25% Notes will be released in each of the following circumstances: • if, as a result of the sale of its capital stock, such Subsidiary Guarantor ceases to be a Restricted Subsidiary; • if such Subsidiary Guarantor is designated as an "Unrestricted Subsidiary" with respect to the 5.25% Notes and the 5.50% Notes; • upon defeasance or satisfaction and discharge of the 5.25% Notes and the 5.50% Notes, as applicable; and • if such Subsidiary Guarantor has been released from its guarantees of indebtedness under the credit agreement governing the Senior Credit Facility (the "Credit Agreement") and all capital markets debt securities. Scheduled Minimum Loan Payments The scheduled minimum loan payments on outstanding long-term debt are as follows: Remainder of 2015 $ 10,000 Calendar 2016 40,000 Calendar 2017 40,000 Calendar 2018 40,000 Calendar 2019 40,000 Thereafter 1,367,000 Total $ 1,537,000 Covenants and Default Provisions The Company's Senior Credit Facility and the indentures governing the 5.50% Notes and the 5.25% Notes impose restrictions on the Company, including limitations on its ability to incur additional debt, enter into capital leases, grant liens, pay dividends and make certain other payments, sell assets, or merge or consolidate with or into another entity. In addition, the Senior Credit Facility limits the Company's ability to enter into sale-and-leaseback transactions. The 5.50% Notes and 5.25% Notes limit the aggregate sum of dividends, share repurchases, and other designated restricted payments to an amount based on the Company’s net income, stock issuance proceeds, and certain other items since April 1, 2001, less restricted payments made since that date. The Senior Credit Facility allows the Company to make unlimited "restricted payments" (as defined in the Credit Agreement), which, among other items, would allow payments for future stock repurchases, as long as the Company maintains a certain amount of liquidity and maintains certain senior secured debt limits, with a limit, when those senior secured debt limits are not met, of $250,000 plus proceeds of any equity issuances plus 50% of net income since October 7, 2010. The Senior Credit Facility also requires the Company to meet and maintain specified financial ratios, including a minimum interest coverage ratio and a maximum consolidated total leverage ratio. The Company's debt agreements contain cross-default provisions so that noncompliance with the covenants within one debt agreement could cause a default under other debt agreements as well. The Company's ability to comply with these covenants and to meet and maintain the financial ratios may be affected by events beyond its control. Borrowings under the Senior Credit Facility are subject to compliance with these covenants. As of October 4, 2015 , the Company was in compliance with the financial covenants. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Oct. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit cost are as follows: Pension Benefits Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Service cost $ 4,815 $ 5,849 $ 9,630 $ 11,698 Interest cost 30,348 32,596 60,696 65,193 Expected return on plan assets (40,117 ) (41,803 ) (80,234 ) (83,607 ) Amortization of unrecognized net loss 37,690 29,814 75,379 59,629 Amortization of unrecognized prior service cost (5,213 ) (5,622 ) (10,425 ) (11,245 ) Net periodic benefit cost $ 27,523 $ 20,834 $ 55,046 $ 41,668 The components of net periodic benefit income are as follows: Other Postretirement Benefits Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Service cost $ 1 $ 1 $ 1 $ 2 Interest cost 1,126 1,203 2,252 2,407 Expected return on plan assets (922 ) (888 ) (1,844 ) (1,776 ) Amortization of unrecognized net loss 495 409 991 818 Amortization of unrecognized prior service cost (1,813 ) (2,094 ) (3,626 ) (4,188 ) Net periodic benefit income $ (1,113 ) $ (1,369 ) $ (2,226 ) $ (2,737 ) Employer Contributions. During the six months ended October 4, 2015 , the Company contributed $28,700 directly to the pension trust and $1,240 directly to retirees under its nonqualified supplemental executive retirement plan. The Company also contributed $4,431 to its other postretirement benefit plans. The Company anticipates making additional pension contributions of approximately $12,300 in order to meet the minimum required contributions for 2015. The Company anticipates making additional contributions of approximately $1,534 directly to retirees under the nonqualified plan and $1,892 to its other postretirement benefit plans during the remainder of 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 04, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s income taxes include federal, foreign and state income taxes. Income taxes for interim periods are based on estimated effective annual income tax rates. The effective income tax rates for the quarters ended October 4, 2015 and September 28, 2014 , were 33.2% and 27.5% , respectively. The increase in the rate from the prior-year quarter is primarily due to the absence of favorable true-ups of prior year taxes in the prior-year quarter, partially offset by a discrete revaluation of deferred tax liabilities resulting from a change in state tax apportionment method in the current-year quarter. The effective income tax rates for the six months ended October 4, 2015 and September 28, 2014 , were 33.6% and 30.6% , respectively. The increase in the rate from the prior-year period is primarily due to the absence of favorable true-ups of prior year taxes in the prior-year period, partially offset by a discrete revaluation of deferred tax liabilities resulting from a change in state tax apportionment method in the current-year period. The IRS released final regulations relating to the capitalization of tangible personal property on September 13, 2013. The Company has substantially completed its analysis of the impact of these new regulations, with no material impact on the Company's financial statements. The Company or one of its subsidiaries files income tax returns in the U.S. federal, various U.S. state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or foreign income tax examinations by tax authorities for years prior to 2008. The IRS has completed the audits of the Company through fiscal 2012 and is currently auditing the Company's income tax returns for fiscal years 2013 and 2014. The Company believes appropriate provisions for all outstanding issues have been made for all remaining open years in all jurisdictions. Although the timing and outcome of audit settlements are uncertain, it is reasonably possible that a $483 reduction of the uncertain tax benefits will occur in the next 12 months . The settlement of these unrecognized tax benefits could result in an increase in net income of $0 to $309 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 04, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The Company has authorized 5,000,000 shares of preferred stock, par value $1.00 , none of which has been issued. Total pretax stock-based compensation expense of $6,046 and $4,066 was recognized during the quarters ended October 4, 2015 and September 28, 2014 , respectively and $15,049 and $7,927 was recognized during the six months ended October 4, 2015 and September 28, 2014, respectively. The total income tax benefit recognized in the income statement for share-based compensation was $2,194 and $1,560 during the quarters ended October 4, 2015 and September 28, 2014 , respectively and $5,660 and $3,042 was recognized during the six months ended October 4, 2015 and September 28, 2014, respectively. The Company sponsors six stock-based incentive plans: the Orbital ATK, Inc. 2015 Stock Incentive Plan (the "2015 Stock Incentive Plan"); three legacy ATK plans (the Alliant Techsystems Inc. 2005 Stock Incentive Plan, the Non-Employee Director Restricted Stock Plan and the 1990 Equity Incentive Plan); and two legacy Orbital plans, under which the Company assumed the obligation to issue Company common stock pursuant to the terms of the Transaction Agreement relating to the Merger (the Orbital Sciences Corporation 2005 Amended and Restated Stock Incentive Plan and the Orbital Sciences Corporation 1997 Stock Option and Incentive Plan). As of October 4, 2015 , the Company authorized up to 3,750,000 common shares under the 2015 Stock Incentive Plan, of which 3,707,162 common shares were available to be granted. No new grants will be made out of the other five plans. There are five types of awards outstanding under the Company's stock incentive plans: performance awards, total stockholder return performance awards ("TSR awards"), restricted stock units, restricted stock and stock options. The Company issues treasury shares upon (i) the payment of performance awards, TSR awards and restricted stock units, (ii) the grant of restricted stock, and (iii) the exercise of stock options. Pursuant to the terms of the Transaction Agreement and under the terms of the ATK 2005 Stock Incentive Plan, all of the performance awards and TSR awards outstanding as of February 9, 2015 were converted into time-vesting restricted stock units in connection with the Distribution, with vesting periods corresponding to the respective performance periods. On March 31, 2015, 107,976 shares were paid upon the vesting of restricted stock units for the fiscal 2013-2015 performance period. As of March 31, 2015, there were 40,707 shares reserved for the vesting of restricted stock units for the fiscal 2014-2016 performance period on March 31, 2016 and 65,157 shares reserved for the vesting of restricted stock units for the fiscal 2015-2017 performance period on March 31, 2017. As of October 4, 2015 , there were 40,707 shares reserved for the vesting of restricted stock units for the fiscal 2014-2016 performance period on March 31, 2016 and 57,096 shares reserved for the vesting of restricted stock units for the fiscal 2015-2017 performance period on March 31, 2017. As of October 4, 2015 , there were up to 161,974 shares reserved for performance awards for executive officers and key employees. Performance shares are valued at the fair value of the Company stock as of the grant date and expense is recognized based on the number of shares expected to vest under the terms of the award under which they are granted. Of these shares: • up to 50% will become payable only upon achievement of a financial performance goal relating to absolute earnings per share growth for the performance period beginning April 1, 2015 and ending December 31, 2017; and • up to 50% will become payable only upon achievement of a performance goal relating to absolute sales growth for the performance period beginning April 1, 2015 and ending December 31, 2017. The Company used an integrated Monte Carlo simulation model to determine the fair value of the TSR awards. The Monte Carlo model calculates the probability of satisfying the market conditions stipulated in the award. This probability is an input into the trinomial lattice model used to determine the fair value of the awards as well as the assumptions of other variables, including the risk-free interest rate and expected volatility of the Company's stock price in future periods. The risk-free rate is based on the U.S. dollar-denominated U.S. Treasury strip rate with a remaining term that approximates the life assumed at the date of grant. There were 820 TSR awards granted during the six months ended October 4, 2015 . Restricted stock granted to non-employee directors and certain key employees totaled 15,645 shares during the quarter ended October 4, 2015 . Restricted shares vest over periods generally ranging from one to three years from the date of award and are valued at the fair value of the Company's common stock as of the grant date. Stock options may be granted periodically, with an exercise price equal to the fair market value of the Company's common stock on the date of grant, and generally vest from one to three years from the date of grant. Options are generally granted with seven -year or ten -year terms. The weighted-average fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model and represents the difference between fair market value on the date of grant and the estimated market value on the expected exercise date. The option pricing model requires the Company to make assumptions. The risk-free rate is based on U.S. Treasury zero-coupon issues with a remaining term that approximates the expected life assumed at the date of grant. Expected volatility is based on the historical volatility of the Company's stock over the past seven years. The expected option life is based on the contractual term of the stock option and expected employee exercise and post-vesting employment termination trends. There were 1,443 stock options granted during the six months ended October 4, 2015 and no stock options granted during the six months ended September 28, 2014 . |
Contingencies
Contingencies | 6 Months Ended |
Oct. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Litigation. From time to time, the Company is subject to various legal proceedings, including lawsuits, which arise out of, and are incidental to, the conduct of the Company's business. The Company does not consider any of such proceedings that are currently pending, individually or in the aggregate, notwithstanding that the unfavorable resolution of any matter may have a material effect on net earnings in any particular quarter, to be material to its business or likely to result in a material adverse effect on its operating results, financial condition or cash flows. U.S. Government Investigations. The Company is also subject to U.S. Government investigations from which civil, criminal or administrative proceedings could result. Such proceedings could involve claims by the U.S. Government for fines, penalties, compensatory and treble damages, restitution and/or forfeitures. Under government regulations, a company, or one or more of its operating divisions or subdivisions, can also be suspended or debarred from government contracts, or lose its export privileges, based on the results of investigations. The Company believes, based upon all available information, that the outcome of any such pending government investigations will not have a material adverse effect on its operating results, financial condition or cash flows. Claim Recovery. Profits expected to be realized on contracts are based on management's estimates of total contract sales value and costs at completion. Estimated amounts for contract changes and claims are included in contract sales only when realization is estimated to be probable. At October 4, 2015 , based on progress to date on certain contracts, there was approximately $29,292 included in unbilled receivables for contract claims compared to $42,055 as of March 31, 2015 . Environmental Liabilities. The Company's operations and ownership or use of real property are subject to a number of federal, state, and local environmental laws and regulations, including those for discharge of hazardous materials, remediation of contaminated sites and restoration of damage to the environment. At certain sites that the Company owns or operates or formerly owned or operated, there is known or potential contamination that the Company is required to investigate or remediate. The Company could incur substantial costs, including remediation costs, resource restoration costs, fines, and penalties, or third party property damage or personal injury claims, as a result of liabilities associated with past practices or violations of environmental laws or noncompliance with environmental permits. The liability for environmental remediation represents management's best estimate of the present value of the probable and reasonably estimable costs related to known remediation obligations. The receivable represents the present value of the amount that the Company expects to recover, as discussed below. Both the liability and receivable have been discounted to reflect the present value of the expected future cash flows, using a discount rate of 0.5% and 0.5% as of October 4, 2015 and March 31, 2015 , respectively. The Company's discount rate is calculated using the 20 -year Treasury constant maturities rate, net of an estimated inflationary factor of 1.9% , rounded to the nearest quarter percent. The following is a summary of the amounts recorded for environmental remediation: October 4, 2015 March 31, 2015 Liability Receivable Liability Receivable Amounts (payable) receivable $ (42,693 ) $ 18,114 $ (51,749 ) $ 26,506 Unamortized discount 1,223 (398 ) 1,624 (750 ) Present value amounts (payable) receivable $ (41,470 ) $ 17,716 $ (50,125 ) $ 25,756 Amounts expected to be paid or received in periods more than one year from the balance sheet date are classified as noncurrent. Of the $41,470 discounted liability as of October 4, 2015 , $2,631 was recorded within other current liabilities and $38,839 was recorded within other long-term liabilities. Of the $17,716 discounted receivable, the Company recorded $1,999 within other current assets and $15,717 within other noncurrent assets. As of October 4, 2015 , the estimated discounted range of reasonably possible costs of environmental remediation was $41,470 to $82,494 . The Company expects that a portion of its environmental compliance and remediation costs will be recoverable under U.S. Government contracts. Some of the remediation costs that are not recoverable from the U.S. Government that are associated with facilities purchased in a business acquisition may be covered by various indemnification agreements, as described in Note 13 to the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015 . The Company has been identified as a potentially responsible party ("PRP"), along with other parties, in several regulatory agency actions associated with hazardous waste sites. As a PRP, the Company may be required to pay a share of the costs of the investigation and clean-up of these sites. While uncertainties exist with respect to the amounts and timing of the ultimate environmental liabilities, based on currently available information, the Company has concluded that these matters, individually or in the aggregate, will not have a material adverse effect on the Company's operating results, financial condition or cash flows. |
Share Repurchases
Share Repurchases | 6 Months Ended |
Oct. 04, 2015 | |
Share Repurchases [Abstract] | |
Share Repurchases | Share Repurchases On March 11, 2015, the Company's Board of Directors authorized the Company to repurchase up to the lesser of $75 million or 1.0 million shares of its common stock through December 31, 2015. On August 4, 2015, the Board of Directors increased the amount authorized for repurchase to the lesser of $100 million or 1.4 million shares of the Company's common stock. On October 29, 2015 , the Board of Directors increased the amount authorized for repurchase to the lesser of $250 million or 3.25 million shares and extended the repurchase period through December 31, 2016. Under the authorized repurchase program, shares of the Company common stock may be purchased from time to time in the open market, subject to compliance with applicable laws and regulations and the Company’s debt covenants, depending upon market conditions and other factors. The Company repurchased 497,145 shares for $36,275 and 825,986 for $60,777 during the quarter and six months ended October 4, 2015 , respectively. In accordance with the Transaction Agreement entered into on April 28, 2014, the Company did not repurchase any outstanding shares prior to the closing of the Distribution and Merger during fiscal 2015. |
Changes in Estimates
Changes in Estimates | 6 Months Ended |
Oct. 04, 2015 | |
Changes in Estimates [Abstract] | |
Changes in Estimates | Changes in Estimates The majority of the Company’s sales are accounted for as long-term contracts, which are accounted for using the percentage-of-completion method ("POC"). Accounting for contracts under POC requires judgment relative to assessing risks and estimating contract revenues and costs. Profits expected to be realized on contracts are based on management’s estimates of total contract sales value and costs at completion. Estimated amounts for contract changes, including scope and claims, are included in contract sales only when realization is estimated to be probable. Assumptions used for recording sales and earnings are adjusted in the period of change to reflect revisions in contract value and estimated costs. In the period in which it is determined that a loss will be incurred on a contract, the entire amount of the estimated gross margin loss is charged to cost of sales. Changes in estimates of contract sales, costs or profits are recognized using the cumulative catch-up method of accounting. The cumulative effect of a change in estimate is recognized in the period a change in estimate occurs. The effect of the changes on future periods of contract performance is recognized as if the revised estimate had been used since contract inception. Changes in contract estimates occur for a variety of reasons including changes in contract scope, unforeseen changes in contract cost estimates due to unanticipated cost growth or risks affecting contract costs and/or the resolution of contract risks at lower costs than anticipated, as well as changes in contract overhead costs over the performance period. Changes in estimates could have a material effect on the Company’s consolidated financial position or annual results of operations. Aggregate net changes in contract estimates recognized using the cumulative catch-up method of accounting increased operating income by approximately $45 million and $24 million for the quarters ended October 4, 2015 and September 28, 2014 , respectively. The changes in estimates for the quarter ended October 4, 2015 are primarily attributable to a favorable adjustment in connection with the Company’s Commercial Resupply Services (“CRS”) contract, discussed below, in addition to a favorable adjustment associated with a contract termination in Flight Systems Group. The prior-year quarter adjustments were primarily due to profit margin improvements in Flight Systems Group and Defense Systems Group. Aggregate net changes in contract estimates recognized using the cumulative catch-up method of accounting increased operating income by approximately $70 million and $47 million for the six months ended October 4, 2015 and September 28, 2014 , respectively. The current six-month changes in estimates are primarily attributable to the favorable cumulative adjustment pertaining to the CRS contract mentioned above, in addition to a favorable adjustment associated with a contract termination in Flight Systems Group. The prior-year six month adjustments were primarily due to profit margin improvements in Flight Systems Group and Defense Systems Group. During the quarter ended October 4, 2015, the Company settled disputes related to its contract with a supplier, Aerojet-Rocketdyne Holdings, Inc. ("Aerojet"), which dealt with the purchase of engines for the Company’s Antares rocket. In connection with this settlement, Aerojet made a one-time $50 million cash payment to the Company in September 2015. As a result, the Company recorded a cost reduction and a corresponding revenue reduction on the Antares rocket program. The Antares rocket has been used in the execution of the CRS contract with NASA to deliver cargo to the International Space Station. The financial results for the Antares rocket program are reported in Flight Systems Group and the financial results for the Cygnus spacecraft, which is also utilized in the execution of the CRS contract, are reported in Space Systems Group. The contract profit margin estimate for the CRS contract is determined as one rate for both the Antares and Cygnus programs. As a result of the Aerojet settlement and progress on the CRS contract, the Company increased its profit margin estimate on the CRS contract and recorded a favorable adjustment that is reflected in the results of Flight Systems Group and Space Systems Group in the quarter ended October 4, 2015. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Oct. 04, 2015 | |
Realignment Obligations | |
Restructuring Costs | Restructuring Costs During the quarter ended October 4, 2015, the Company incurred a restructuring charge related to termination benefits offered to employees within Defense Systems Group. The following table summarizes activity pertaining to the Company's restructuring activities: Termination Benefits Remaining Lease Rentals Total Balance, March 31, 2015 $ 8,332 $ 10,427 $ 18,759 Expense 2,173 — 2,173 Cash paid (8,431 ) (1,206 ) (9,637 ) Balance, October 4, 2015 $ 2,074 $ 9,221 $ 11,295 |
Operating Segment Information
Operating Segment Information | 6 Months Ended |
Oct. 04, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment Information | Operating Segment Information The Company operates its business structure within three operating segments. These operating segments ("groups") are defined based on the reporting and review process used by the Company's chief executive officer and other management. The operating structure aligns the Company's capabilities and resources with its customers and markets and positions the Company for long-term growth and improved profitability. • Flight Systems Group is comprised of a portion of the Company's former Aerospace Group (Aerospace Structures division and Space Systems Operations' Launch Systems business); and Orbital's former Launch Vehicles segment. Flight Systems Group develops rockets that are used as small- and medium-class space launch vehicles to place satellites into Earth orbit and escape trajectories, interceptor and target vehicles for missile defense systems and suborbital launch vehicles that place payloads into a variety of high-altitude trajectories. The group also develops and produces medium- and large-class rocket propulsion systems for human and satellite launch vehicles, strategic missiles, missile defense interceptors and target vehicles. Additionally, Flight Systems Group operates in the military and commercial aircraft and launch structures markets. Other products include illuminating flares and aircraft countermeasures. • Defense Systems Group is comprised of all of the Company's former Defense Group (Armament Systems, Defense Electronic Systems, Missile Products and Small-caliber Systems divisions). Defense Systems Group develops and produces small-, medium- and large-caliber ammunition, propulsion systems for tactical missiles and missile defense applications, strike weapons, precision weapons and munitions, high-performance gun systems, aircraft survivability systems, fuzes and warheads, energetic materials and special mission aircraft. • Space Systems Group is comprised of a portion of the Company's former Aerospace Group (Space Components division and part of Space Systems Operations division); and Orbital's former Advanced Space Programs and Satellite and Space Systems segments. Space Systems Group develops and produces small- and medium-class satellites that are used to enable global and regional communications and broadcasting, conduct space-related scientific research, and perform other activities related to national security. In addition, Space Systems Group develops and produces human-rated space systems for Earth-orbit and deep-space exploration, including re-supplying the International Space Station. This group is also a provider of spacecraft components and subsystems and specialized engineering and operations services to U.S. Government agencies. The following summarizes the Company's results by segment: Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Sales to external customers: Flight Systems Group $ 317,449 $ 250,529 $ 704,261 $ 505,411 Defense Systems Group 451,120 418,816 888,900 806,131 Space Systems Group 366,317 73,857 671,681 146,020 Total external sales 1,134,886 743,202 2,264,842 1,457,562 Intercompany sales: Flight Systems Group 7,173 1,715 18,433 4,081 Defense Systems Group 1,488 68,918 3,478 123,754 Space Systems Group 5,021 3,834 9,724 7,891 Corporate (13,682 ) (74,467 ) (31,635 ) (135,726 ) Net intercompany sales — — — — Total sales $ 1,134,886 $ 743,202 $ 2,264,842 $ 1,457,562 Income from continuing operations, before interest, income taxes and noncontrolling interest: Flight Systems Group $ 51,138 $ 34,535 $ 109,198 $ 67,202 Defense Systems Group 35,294 50,342 74,458 95,486 Space Systems Group 41,552 4,812 82,981 10,523 Corporate (4,019 ) (9,422 ) (16,878 ) (21,125 ) Total income from continuing operations, before interest, income taxes and noncontrolling interest $ 123,965 $ 80,267 $ 249,759 $ 152,086 October 4, 2015 March 31, 2015 Total assets: Flight Systems Group $ 2,076,634 $ 2,047,966 Defense Systems Group 1,411,867 1,320,425 Space Systems Group 1,477,639 1,467,948 Corporate 444,508 668,063 Total assets $ 5,410,648 $ 5,504,402 Certain administrative functions are primarily managed by the Company at the corporate headquarters ("Corporate"). Some examples of such functions are human resources, pension and postretirement benefits, corporate accounting, legal, tax and treasury. Significant assets and liabilities managed at Corporate include those associated with debt, restructuring, pension and postretirement benefits, environmental liabilities, litigation liabilities, strategic growth costs and income taxes. Costs related to the administrative functions managed by Corporate are either recorded at Corporate or allocated to the business units based on the nature of the expense. The difference between pension and postretirement benefit expense calculated under Financial Accounting Standards and the expense calculated under U.S. Cost Accounting Standards is recorded at the corporate level which provides for greater clarity on the operating results of the business segments. Administrative expenses such as corporate accounting, legal and treasury costs are allocated out to the business segments. Environmental expenses are allocated to each segment based on the origin of the underlying environmental cost. Transactions between segments are recorded at the segment level, consistent with the Company's financial accounting policies. Intercompany balances and transactions involving different segments are eliminated at the Company's consolidated financial statements level and are shown above in Corporate. The amortization expense pertaining to intangible assets recorded in connection with the Merger is also reported in Corporate. |
Basis of Presentation and Res29
Basis of Presentation and Responsibility for Interim Financial Statements (Policies) | 6 Months Ended |
Oct. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The unaudited condensed consolidated financial statements of Orbital ATK, Inc. ("the Company" or "Orbital ATK") as set forth in this quarterly report have been prepared in accordance with the requirements of the U.S. Securities and Exchange Commission for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States can be condensed or omitted. |
Fiscal Year | Fiscal Year. The Company's interim quarterly periods are based on 13-week periods and end on Sundays. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The current authoritative guidance on fair value clarifies the definition of fair value, prescribes a framework for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about the use of fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The valuation techniques required by the current authoritative literature are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1—Quoted prices for identical instruments in active markets. Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3—Significant inputs to the valuation model are unobservable. The following section describes the valuation methodologies used by the Company to measure its financial instruments at fair value. Investments in marketable securities —The Company's investments in marketable securities represent investments held in a common collective trust ("CCT") that primarily invests in fixed income securities which are used to pay benefits under a nonqualified supplemental executive retirement plan for certain executives and highly compensated employees. Investments in a collective investment vehicle are valued by multiplying the investee company's net asset value per share with the number of units or shares owned at the valuation date as determined by the investee company. Net asset value per share is determined by the investee company's custodian or fund administrator by deducting from the value of the assets of the investee company all of its liabilities and dividing the resulting number by the outstanding number of shares or units. Investments held by the CCT, including collateral invested for securities on loan, are valued on the basis of valuations furnished by a pricing service approved by the CCT's investment manager, which determines valuations using methods based on market transactions for comparable securities and various relationships between securities which are generally recognized by institutional traders, or at fair value as determined in good faith by the CCT's investment manager. The fair value of these securities is included within other current assets and deferred charges and other noncurrent assets on the consolidated balance sheet. Derivative financial instruments and hedging activities —In order to manage its exposure to commodity pricing, foreign currency risk and interest rate risk on debt, the Company periodically utilizes commodity, foreign currency and interest rate derivatives, which are considered Level 2 instruments. As discussed further in Note 7 , the Company has outstanding commodity forward contracts that were entered into to hedge forecasted purchases of copper and zinc, as well as outstanding foreign currency forward contracts that were entered into to hedge forecasted transactions denominated in a foreign currency. Commodity derivatives are valued based on prices of futures exchanges and recently reported transactions in the marketplace. During the fiscal year ended March 31, 2014 ("fiscal 2014"), the Company entered into five interest rate swaps. These swaps are valued based on future LIBOR rates and the established fixed rate is based primarily on quotes from banks. Foreign currency derivatives are valued based on observable market transactions of spot currency rates and forward currency prices. Long-term Debt —The fair value of the variable-rate long-term debt is calculated based on current market rates for debt of the same risk and maturities. The fair value of the fixed-rate debt is based on market quotes for each issuance. The Company has considered these to be Level 2 instruments. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on a recurring basis | The following table sets forth by level within the fair value hierarchy the Company's financial assets and liabilities that are measured at fair value on a recurring basis: October 4, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Marketable securities $ — $ 11,428 $ — Derivatives — 1,993 — Liabilities: Derivatives $ — $ 11,132 $ — March 31, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Marketable securities $ — $ 10,327 $ — Derivatives — 7,823 — Liabilities: Derivatives $ — $ 11,137 $ — |
Schedule of carrying values and estimated fair values of assets and liabilities that are not measured on a recurring basis | The carrying values and estimated fair values were as follows: October 4, 2015 March 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fixed-rate debt $ 700,000 $ 706,875 $ 300,000 $ 306,000 Variable-rate debt 837,000 837,000 1,288,501 1,283,539 |
Mergers, Acquisitions and Div31
Mergers, Acquisitions and Divestitures (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Business Combinations [Abstract] | |
Summary of preliminary fair value of assets acquired and liabilities assumed | The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed at the February 9, 2015 closing date of the Merger and the preliminary goodwill generated from the transaction: Purchase Price: Value of common shares issued to Orbital shareholders (1) $ 1,749,323 Value of replacement equity-based awards to holders of Orbital equity-based awards (2) 8,654 Total purchase price $ 1,757,977 Preliminary value of assets acquired and liabilities assumed: Cash $ 253,734 Net receivables 562,639 Net inventories 75,294 Intangibles 164,000 Property, plant and equipment 281,654 Other assets 36,878 Goodwill 866,106 Accounts payable (52,028 ) Deferred tax liabilities, net (51,537 ) Other liabilities (378,763 ) Total purchase price $ 1,757,977 (1) Equals 27.4 million Orbital ATK shares issued to Orbital shareholders multiplied by $63.94 , the closing share price of the Company’s common stock on the closing date of the Merger. (2) The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger. |
Goodwill, Net Intangibles and32
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Goodwill and Deferred Charges and Other Non-Current Assets | |
Schedule of carrying amount of goodwill by operating segment | The changes in the carrying amount of goodwill by segment were as follows: Flight Systems Group Defense Systems Group Space Systems Group Total Balance, March 31, 2015 $ 799,362 $ 366,947 $ 708,960 $ 1,875,269 No change — — — — Balance, October 4, 2015 $ 799,362 $ 366,947 $ 708,960 $ 1,875,269 |
Schedule of amortizing assets | Net intangibles consisted of the following: October 4, 2015 March 31, 2015 Gross Accumulated Net Intangibles Gross Accumulated Net Intangibles Amortizing intangibles: Contract backlog $ 164,000 $ (30,833 ) $ 133,167 $ 164,000 $ (6,167 ) $ 157,833 Patented technology 11,018 (5,913 ) 5,105 10,700 (5,350 ) 5,350 Customer relationships and other 24,294 (23,282 ) 1,012 24,294 (22,270 ) 2,024 Intangibles $ 199,312 $ (60,028 ) $ 139,284 $ 198,994 $ (33,787 ) $ 165,207 |
Schedule of expected future amortization expense | The Company expects amortization expense related to these assets to be as follows: Contract Backlog Patents and Customer Relationships Total Remainder of 2015 $ 12,333 $ 800 $ 13,133 2016 49,333 1,682 51,015 2017 49,333 1,176 50,509 2018 10,833 1,123 11,956 2019 5,335 1,068 6,403 Thereafter 6,000 268 6,268 Total $ 133,167 $ 6,117 $ 139,284 |
Schedule of deferred charges and other non-current assets | Deferred charges and other noncurrent assets consisted of the following: October 4, 2015 March 31, 2015 Gross debt issuance costs $ 17,829 $ 22,280 Less accumulated amortization (2,575 ) (5,712 ) Net debt issuance costs 15,254 16,568 Environmental remediation receivable 15,717 23,771 Other noncurrent assets 86,309 87,303 Total deferred charges and other noncurrent assets $ 117,280 $ 127,642 |
Earnings Per Share Data (Tables
Earnings Per Share Data (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares | In computing EPS for the quarters and six months ended October 4, 2015 and September 28, 2014 , earnings reported for each respective period were divided by weighted-average shares outstanding, determined as follows (in thousands): Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Basic 58,746 31,689 58,944 31,666 Dilutive effect of stock-based awards 558 314 582 336 Dilutive effect of contingently issuable shares — 55 — 603 Diluted 59,304 32,058 59,526 32,605 Anti-dilutive stock options excluded from the calculation of diluted shares 89 44 89 44 |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding commodity forward contracts | As of October 4, 2015 , the Company had the following outstanding foreign currency forward contracts in place: Quantity Hedged Euros Sold 86,920 Euros Purchased 16,062 As of October 4, 2015 , the Company had the following outstanding commodity forward contracts which hedge forecasted purchases: Number of Pounds Copper 11,200 Zinc 2,560 |
Schedule of fair value and location of derivative instruments designated as hedging instruments in the consolidated balance sheet | The table below presents the fair value and location of the Company's derivative instruments designated as hedging instruments in the consolidated balance sheets as of the periods presented. Asset Derivatives Fair Value Liability Derivatives Fair Value Location October 4, 2015 March 31, 2015 October 4, 2015 March 31, 2015 Commodity forward contracts Other current assets / $ — $ 1,054 $ 3,850 $ 899 Commodity forward contracts Deferred charges and — 271 — 2 Foreign currency forward contracts Other current assets / 1,123 2,664 1,962 5,101 Foreign currency forward contracts Deferred charges and 870 3,834 76 897 Interest rate contracts Deferred charges and — — 5,244 4,238 Total $ 1,993 $ 7,823 $ 11,132 $ 11,137 |
Schedule of derivative gains and losses in the consolidated income statements related to commodity forward contracts and foreign currency forward contracts | For the periods presented below, the derivative gains and losses in the condensed consolidated statements of comprehensive income related to derivative instruments were as follows: Gain (Loss) Reclassified from AOCI Gain (Loss) Recognized in Income Location Amount Location Amount Quarter ended October 4, 2015 Commodity forward contracts Cost of Sales $ (919 ) Cost of Sales $ — Interest rate contracts Interest expense (1,011 ) Interest expense — Foreign currency forward contracts Cost of Sales (834 ) Cost of Sales — Quarter ended September 28, 2014 Commodity forward contracts Cost of Sales $ 752 Cost of Sales $ — Interest rate contracts Interest expense (929 ) Interest expense — Foreign currency forward contracts Cost of Sales — Cost of Sales — Six months ended October 4, 2015 Commodity forward contracts Cost of Sales $ (1,109 ) Cost of Sales $ — Interest rate contracts Interest expense (2,031 ) Interest expense — Foreign currency forward contracts Cost of Sales (1,390 ) Cost of Sales — Six months ended September 28, 2014 Commodity forward contracts Cost of Sales $ (1,772 ) Cost of Sales $ — Interest rate contracts Interest expense (1,970 ) Interest expense — Foreign currency forward contracts Cost of Sales — Cost of Sales — |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Other Comprehensive Income [Abstract] | |
Schedule of components of accumulated OCI, net of income taxes | The following table summarizes the components and changes in the balance of AOCI, net of income taxes: Quarter Ended October 4, 2015 Six Months Ended October 4, 2015 Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Total Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Total Balance, beginning of period $ (2,644 ) $ (827,444 ) $ 1,043 $ (829,045 ) $ (2,073 ) $ (846,645 ) $ 1,070 $ (847,648 ) Net change in fair value of derivatives (4,696 ) — — (4,696 ) (6,356 ) — — (6,356 ) Net losses reclassified from AOCI, offsetting the price paid to suppliers (1) 1,700 — — 1,700 2,789 — — 2,789 Net actuarial losses reclassified from AOCI (2) — 22,870 — 22,870 — 46,406 — 46,406 Prior service costs reclassified from AOCI (2) — (4,335 ) — (4,335 ) — (8,670 ) — (8,670 ) Other — — (88 ) (88 ) — — (115 ) (115 ) Balance, October 4, 2015 $ (5,640 ) $ (808,909 ) $ 955 $ (813,594 ) $ (5,640 ) $ (808,909 ) $ 955 $ (813,594 ) (1) Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. (2) Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. Quarter Ended September 28, 2014 Six Months Ended September 28, 2014 Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Cumulative Translation Adjustment Total Derivatives Pension and Other Postretire- ment Benefits Available-for-sale Securities Cumulative Translation Adjustment Total Balance, beginning of period $ (1,666 ) $ (661,236 ) $ 992 $ (309 ) $ (662,219 ) $ (5,022 ) $ (675,114 ) $ 832 $ (1,505 ) $ (680,809 ) Net change in fair value of derivatives 541 — — — 541 1,705 — — — 1,705 Net losses reclassified from AOCI, offsetting the price paid to suppliers (1) 109 — — — 109 2,301 — — — 2,301 Net actuarial losses reclassified from AOCI (2) — 18,640 — — 18,640 — 37,281 — — 37,281 Prior service costs reclassified from AOCI (2) — (4,761 ) — — (4,761 ) — (9,524 ) — — (9,524 ) Net change in cumulative translation adjustment — — — (8,934 ) (8,934 ) — — — (7,738 ) (7,738 ) Other — — 86 — 86 — — 246 — 246 Balance, September 28, 2014 $ (1,016 ) $ (647,357 ) $ 1,078 $ (9,243 ) $ (656,538 ) $ (1,016 ) $ (647,357 ) $ 1,078 $ (9,243 ) $ (656,538 ) (1) Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. (2) Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. |
Net Receivables (Tables)
Net Receivables (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Receivables [Abstract] | |
Schedule of receivables, including amounts due under long-term contracts (contract receivables) | Net receivables, including amounts due under long-term contracts, consisted of the following: October 4, 2015 March 31, 2015 Billed receivables $ 276,919 $ 278,031 Unbilled receivables 1,606,839 1,520,217 Less allowance for doubtful accounts (1,083 ) (4,692 ) Net receivables $ 1,882,675 $ 1,793,556 |
Net Inventories (Tables)
Net Inventories (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of net inventories | Net inventories consisted of the following: October 4, 2015 March 31, 2015 Raw materials $ 76,886 $ 69,112 Contracts in process 97,032 126,038 Finished goods 1,399 964 Net inventories $ 175,317 $ 196,114 |
Other Current and Noncurrent 38
Other Current and Noncurrent Liabilities (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of major categories of other current and long-term accrued liabilities | Other current and noncurrent liabilities consisted of the following: October 4, 2015 March 31, 2015 Other current liabilities: Employee benefits and insurance, including pension and other postretirement benefits $ 55,518 $ 53,588 Deferred lease obligation 28,789 30,857 Warranty 5,524 9,555 Interest 441 7,801 Other 53,920 110,827 Total other current liabilities $ 144,192 $ 212,628 Other noncurrent liabilities: Environmental remediation $ 38,839 $ 43,326 Income taxes 36,380 34,415 Deferred lease obligation 19,863 21,036 Management nonqualified deferred compensation plan 17,165 14,853 Other 38,372 52,165 Total other noncurrent liabilities $ 150,619 $ 165,795 |
Schedule of reconciliation of the changes in product warranty liability | The following is a reconciliation of the changes in the Company's product warranty liability during the periods presented: Balance, March 31, 2015 $ 9,555 Payments made (350 ) Warranties issued 57 Changes related to preexisting warranties (3,517 ) Balance, July 5, 2015 5,745 Payments made (61 ) Warranties issued — Changes related to preexisting warranties (160 ) Balance, October 4, 2015 $ 5,524 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | Long-term debt, including the current portion, consisted of the following: October 4, 2015 March 31, 2015 Senior Credit Facility: Term Loan A due 2020 $ 800,000 $ — Revolving Credit Facility due 2020 37,000 — 5.25% Senior Notes due 2021 300,000 300,000 5.50% Senior Notes due 2023 400,000 — Former Senior Credit Facility: Term A Loan due 2018 — 946,875 Term A Loan due 2019 — 144,375 Term B Loan due 2020 — 197,251 Revolving Credit Facility due 2018 — — Carrying amount of long-term debt 1,537,000 1,588,501 Less: Current portion of long-term debt 40,000 59,997 Long-term debt $ 1,497,000 $ 1,528,504 |
Schedule of cash flow hedge interest rate swaps | As of October 4, 2015 , the Company had the following cash flow hedge interest rate swaps in place: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ (466 ) 0.87 % 0.19 % August 2016 Non-amortizing swap 100,000 (1,421 ) 1.29 % 0.19 % August 2017 Non-amortizing swap 100,000 (2,670 ) 1.69 % 0.19 % August 2018 Non-amortizing swap 50,000 (148 ) 0.65 % 0.19 % November 2016 Non-amortizing swap 50,000 (540 ) 1.10 % 0.19 % November 2017 |
Schedule of minimum payments on outstanding long-term debt | The scheduled minimum loan payments on outstanding long-term debt are as follows: Remainder of 2015 $ 10,000 Calendar 2016 40,000 Calendar 2017 40,000 Calendar 2018 40,000 Calendar 2019 40,000 Thereafter 1,367,000 Total $ 1,537,000 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of net periodic benefit cost | The components of net periodic benefit cost are as follows: Pension Benefits Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Service cost $ 4,815 $ 5,849 $ 9,630 $ 11,698 Interest cost 30,348 32,596 60,696 65,193 Expected return on plan assets (40,117 ) (41,803 ) (80,234 ) (83,607 ) Amortization of unrecognized net loss 37,690 29,814 75,379 59,629 Amortization of unrecognized prior service cost (5,213 ) (5,622 ) (10,425 ) (11,245 ) Net periodic benefit cost $ 27,523 $ 20,834 $ 55,046 $ 41,668 The components of net periodic benefit income are as follows: Other Postretirement Benefits Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Service cost $ 1 $ 1 $ 1 $ 2 Interest cost 1,126 1,203 2,252 2,407 Expected return on plan assets (922 ) (888 ) (1,844 ) (1,776 ) Amortization of unrecognized net loss 495 409 991 818 Amortization of unrecognized prior service cost (1,813 ) (2,094 ) (3,626 ) (4,188 ) Net periodic benefit income $ (1,113 ) $ (1,369 ) $ (2,226 ) $ (2,737 ) |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the amounts recorded for environmental remediation | The following is a summary of the amounts recorded for environmental remediation: October 4, 2015 March 31, 2015 Liability Receivable Liability Receivable Amounts (payable) receivable $ (42,693 ) $ 18,114 $ (51,749 ) $ 26,506 Unamortized discount 1,223 (398 ) 1,624 (750 ) Present value amounts (payable) receivable $ (41,470 ) $ 17,716 $ (50,125 ) $ 25,756 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Realignment Obligations | |
Schedule of restructuring costs liability activity | The following table summarizes activity pertaining to the Company's restructuring activities: Termination Benefits Remaining Lease Rentals Total Balance, March 31, 2015 $ 8,332 $ 10,427 $ 18,759 Expense 2,173 — 2,173 Cash paid (8,431 ) (1,206 ) (9,637 ) Balance, October 4, 2015 $ 2,074 $ 9,221 $ 11,295 |
Operating Segment Information (
Operating Segment Information (Tables) | 6 Months Ended |
Oct. 04, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following summarizes the Company's results by segment: Quarters Ended Six Months Ended October 4, 2015 September 28, 2014 October 4, 2015 September 28, 2014 Sales to external customers: Flight Systems Group $ 317,449 $ 250,529 $ 704,261 $ 505,411 Defense Systems Group 451,120 418,816 888,900 806,131 Space Systems Group 366,317 73,857 671,681 146,020 Total external sales 1,134,886 743,202 2,264,842 1,457,562 Intercompany sales: Flight Systems Group 7,173 1,715 18,433 4,081 Defense Systems Group 1,488 68,918 3,478 123,754 Space Systems Group 5,021 3,834 9,724 7,891 Corporate (13,682 ) (74,467 ) (31,635 ) (135,726 ) Net intercompany sales — — — — Total sales $ 1,134,886 $ 743,202 $ 2,264,842 $ 1,457,562 Income from continuing operations, before interest, income taxes and noncontrolling interest: Flight Systems Group $ 51,138 $ 34,535 $ 109,198 $ 67,202 Defense Systems Group 35,294 50,342 74,458 95,486 Space Systems Group 41,552 4,812 82,981 10,523 Corporate (4,019 ) (9,422 ) (16,878 ) (21,125 ) Total income from continuing operations, before interest, income taxes and noncontrolling interest $ 123,965 $ 80,267 $ 249,759 $ 152,086 October 4, 2015 March 31, 2015 Total assets: Flight Systems Group $ 2,076,634 $ 2,047,966 Defense Systems Group 1,411,867 1,320,425 Space Systems Group 1,477,639 1,467,948 Corporate 444,508 668,063 Total assets $ 5,410,648 $ 5,504,402 |
Basis of Presentation and Res44
Basis of Presentation and Responsibility for Interim Financial Statements (Details) - segment | 3 Months Ended | 6 Months Ended |
Oct. 04, 2015 | Oct. 04, 2015 | |
Accounting Policies [Abstract] | ||
Number of operating segments | 3 | 3 |
Fair Value of Financial Instr45
Fair Value of Financial Instruments (Fair value of assets and liabilities measured on a recurring basis) (Details) $ in Thousands | Oct. 04, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014derivative | Mar. 31, 2014derivative |
Fair value of assets and liabilities measured on a recurring basis | ||||
Number of interest rate derivatives held | derivative | 5 | 5 | ||
Fair value of assets and liabilities that are measured on a recurring basis | Fair Value Measurements Using Inputs Considered as Level 2 | ||||
Assets | ||||
Marketable securities | $ 11,428 | $ 10,327 | ||
Derivatives | 1,993 | 7,823 | ||
Liabilities | ||||
Derivatives | $ 11,132 | $ 11,137 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Carrying values and estimated fair values of assets and liabilities not measured on a recurring basis) (Details) - Fair value of assets and liabilities that are not measured on a recurring basis - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Carrying Amount | ||
Assets and liabilities that are not measured on a recurring basis | ||
Fixed-rate debt | $ 700,000 | $ 300,000 |
Variable-rate debt | 837,000 | 1,288,501 |
Fair Value | ||
Assets and liabilities that are not measured on a recurring basis | ||
Fixed-rate debt | 706,875 | 306,000 |
Variable-rate debt | $ 837,000 | $ 1,283,539 |
Mergers, Acquisitions and Div47
Mergers, Acquisitions and Divestitures (Narrative) (Details) $ / shares in Units, $ in Thousands, shares in Millions | Feb. 09, 2015USD ($)agreement$ / sharesshares | Feb. 02, 2015shares | Oct. 04, 2015USD ($)entity | Sep. 28, 2014USD ($) | Oct. 04, 2015USD ($)entity | Sep. 28, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Merger-date share price | $ / shares | $ 63.94 | |||||
Number of Companies | entity | 2 | 2 | ||||
Sales from discontinued operations | $ 530,047 | $ 1,091,077 | ||||
Number of supply agreements | agreement | 2 | |||||
Number of transition services agreements | agreement | 1 | |||||
Administrative services agreement, term | 12 months | |||||
Sales | $ 1,134,886 | 743,202 | $ 2,264,842 | 1,457,562 | ||
Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Supply agreement, term | 1 year | |||||
Tax assistance services agreement, term | 18 months | |||||
Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Supply agreement, term | 3 years | |||||
Tax assistance services agreement, term | 30 months | |||||
Existing Stockholders | ||||||
Business Acquisition [Line Items] | ||||||
Percent of common stock owned | 53.80% | |||||
Orbital | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate value of the consideration paid or payable to former holders of Orbital common stock | $ 1,800,000 | |||||
Orbital | Orbital Stockholders | ||||||
Business Acquisition [Line Items] | ||||||
Percent of common stock owned | 46.20% | |||||
Vista Outdoor formerly Sporting Group | ||||||
Business Acquisition [Line Items] | ||||||
Sales | $ 48,839 | $ 67,231 | $ 105,528 | $ 119,649 | ||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Stock issued during period related to merger | shares | 27.4 | |||||
Common Stock | Vista Outdoor | ||||||
Business Acquisition [Line Items] | ||||||
Shares, conversion ratio | 2 | |||||
Company distributed shares of Vista Outdoor common stock to its stockholders | shares | 63.9 | |||||
Common Stock | Orbital | ||||||
Business Acquisition [Line Items] | ||||||
Shares, conversion ratio | 0.449 |
Mergers, Acquisitions and Div48
Mergers, Acquisitions and Divestitures Tables (Details) - USD ($) $ in Thousands | Feb. 09, 2015 | Oct. 04, 2015 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||||
Purchase price | $ 1,757,977 | |||
Preliminary value of assets acquired and liabilities assumed: | ||||
Cash | 253,734 | |||
Net receivables | 562,639 | |||
Net inventories | 75,294 | |||
Intangibles | 164,000 | |||
Property, plant and equipment | 281,654 | |||
Other assets | 36,878 | |||
Goodwill | 866,106 | $ 1,875,269 | $ 1,875,269 | |
Accounts payable | (52,028) | |||
Deferred tax liabilities, net | (51,537) | |||
Other liabilities | (378,763) | |||
Total purchase price | 1,757,977 | |||
Common Stock | ||||
Business Acquisition [Line Items] | ||||
Purchase price | [1] | 1,749,323 | ||
Preliminary value of assets acquired and liabilities assumed: | ||||
Total purchase price | [1] | 1,749,323 | ||
Equity-based Awards | ||||
Business Acquisition [Line Items] | ||||
Purchase price | [2] | 8,654 | ||
Preliminary value of assets acquired and liabilities assumed: | ||||
Total purchase price | [2] | $ 8,654 | ||
[1] | Equals 27.4 million Orbital ATK shares issued to Orbital shareholders multiplied by $63.94, the closing share price of the Company’s common stock on the closing date of the Merger. | |||
[2] | The fair value of replacement equity-based awards attributable to pre-Merger service was recorded as part of the consideration transferred in the Merger. |
Goodwill, Net Intangibles and49
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets (Goodwill and Deferred Charges) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Oct. 04, 2015 | Mar. 31, 2015 | |
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | $ 1,875,269 | |
No change | 0 | |
Balance at the end of the period | 1,875,269 | |
Deferred charges and other non-current assets | ||
Gross debt issuance costs | 17,829 | $ 22,280 |
Less accumulated amortization | (2,575) | (5,712) |
Net debt issuance costs | 15,254 | 16,568 |
Environmental remediation receivable | 15,717 | 23,771 |
Other noncurrent assets | 86,309 | 87,303 |
Total deferred charges and other noncurrent assets | 117,280 | $ 127,642 |
Flight Systems Group | ||
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | 799,362 | |
No change | 0 | |
Balance at the end of the period | 799,362 | |
Defense Systems Group | ||
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | 366,947 | |
No change | 0 | |
Balance at the end of the period | 366,947 | |
Space Systems Group | ||
Changes in the carrying amount of goodwill | ||
Balance at the beginning of the period | 708,960 | |
No change | 0 | |
Balance at the end of the period | $ 708,960 |
Goodwill, Net Intangibles and50
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets (Intangibles) (Details) - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Amortizing assets | ||
Gross Carrying Amount | $ 199,312 | $ 198,994 |
Accumulated Amortization | (60,028) | (33,787) |
Net Intangibles | 139,284 | 165,207 |
Expected future amortization expense | ||
Remainder of 2015 | 13,133 | |
Fiscal 2,016 | 51,015 | |
Fiscal 2,017 | 50,509 | |
Fiscal 2,018 | 11,956 | |
Fiscal 2,019 | 6,403 | |
Thereafter | 6,268 | |
Net Intangibles | 139,284 | 165,207 |
Contract backlog | ||
Amortizing assets | ||
Gross Carrying Amount | 164,000 | 164,000 |
Accumulated Amortization | (30,833) | (6,167) |
Net Intangibles | 133,167 | 157,833 |
Expected future amortization expense | ||
Remainder of 2015 | 12,333 | |
Fiscal 2,016 | 49,333 | |
Fiscal 2,017 | 49,333 | |
Fiscal 2,018 | 10,833 | |
Fiscal 2,019 | 5,335 | |
Thereafter | 6,000 | |
Net Intangibles | 133,167 | 157,833 |
Patented technology | ||
Amortizing assets | ||
Gross Carrying Amount | 11,018 | 10,700 |
Accumulated Amortization | (5,913) | (5,350) |
Net Intangibles | 5,105 | 5,350 |
Expected future amortization expense | ||
Net Intangibles | 5,105 | 5,350 |
Customer relationships and other | ||
Amortizing assets | ||
Gross Carrying Amount | 24,294 | 24,294 |
Accumulated Amortization | (23,282) | (22,270) |
Net Intangibles | 1,012 | 2,024 |
Expected future amortization expense | ||
Net Intangibles | 1,012 | $ 2,024 |
Patents and Customer Relationships | ||
Amortizing assets | ||
Net Intangibles | 6,117 | |
Expected future amortization expense | ||
Remainder of 2015 | 800 | |
Fiscal 2,016 | 1,682 | |
Fiscal 2,017 | 1,176 | |
Fiscal 2,018 | 1,123 | |
Fiscal 2,019 | 1,068 | |
Thereafter | 268 | |
Net Intangibles | $ 6,117 |
Goodwill, Net Intangibles and51
Goodwill, Net Intangibles and Deferred Charges and Other Noncurrent Assets (Intangibles Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Goodwill and Deferred Charges and Other Non-Current Assets | ||||
Amortizing intangible assets weighted average remaining period for amortization (in years) | 2 years 7 months 24 days | |||
Amortization expense | $ 13,218 | $ 772 | $ 26,241 | $ 1,547 |
Earnings Per Share Data (Detail
Earnings Per Share Data (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Earnings Per Share [Abstract] | ||||
Basic (in shares) | 58,746 | 31,689 | 58,944 | 31,666 |
Dilutive effect of stock-based awards (in shares) | 558 | 314 | 582 | 336 |
Dilutive effect of contingently issuable shares (in shares) | 0 | 55 | 0 | 603 |
Diluted (in shares) | 59,304 | 32,058 | 59,526 | 32,605 |
Anti-dilutive stock options excluded from the calculation of diluted shares | 89 | 44 | 89 | 44 |
Derivative Financial Instrume53
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||||
Oct. 04, 2015USD ($)lbderivative | Sep. 28, 2014USD ($) | Oct. 04, 2015USD ($)lbderivative | Sep. 28, 2014USD ($) | Oct. 04, 2015EUR (€)lbderivative | Mar. 31, 2015USD ($) | Dec. 31, 2014derivative | Mar. 31, 2014derivative | |
Derivative Financial Instruments | ||||||||
Notional amount | € | € 16,062 | |||||||
Number of interest rate derivatives held | derivative | 5 | 5 | ||||||
Designated as Hedging Instrument | ||||||||
Derivative Asset [Abstract] | ||||||||
Fair value of derivative assets | $ 1,993,000 | $ 1,993,000 | $ 7,823,000 | |||||
Derivative Liability [Abstract] | ||||||||
Fair value of derivative liabilities | 11,132,000 | 11,132,000 | 11,137,000 | |||||
Interest Rate Swap | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | $ 400,000,000 | $ 400,000,000 | ||||||
Number of interest rate derivatives held | derivative | 5 | 5 | 5 | |||||
Copper | ||||||||
Derivative Financial Instruments | ||||||||
Outstanding commodity forward contract | lb | 11,200 | 11,200 | 11,200 | |||||
Zinc | ||||||||
Derivative Financial Instruments | ||||||||
Outstanding commodity forward contract | lb | 2,560 | 2,560 | 2,560 | |||||
Euros Sold | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | € | € 86,920 | |||||||
Commodity forward contracts | Cost of Sales | ||||||||
Pretax amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||
Commodity forward contracts, gain/(loss) reclassified from accumulated other comprehensive income (loss) | $ (919,000) | $ 752,000 | $ (1,109,000) | $ (1,772,000) | ||||
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||
Commodity forward contracts, gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | ||||
Commodity forward contracts | Designated as Hedging Instrument | Other current assets / other current liabilities | ||||||||
Derivative Asset [Abstract] | ||||||||
Commodity forward contracts, fair value of assets | 0 | 0 | 1,054,000 | |||||
Derivative Liability [Abstract] | ||||||||
Commodity forward contracts, fair value of liabilities | 3,850,000 | 3,850,000 | 899,000 | |||||
Commodity forward contracts | Designated as Hedging Instrument | Deferred charges and other noncurrent assets / other noncurrent liabilities | ||||||||
Derivative Asset [Abstract] | ||||||||
Commodity forward contracts, fair value of assets | 0 | 0 | 271,000 | |||||
Derivative Liability [Abstract] | ||||||||
Commodity forward contracts, fair value of liabilities | 0 | 0 | 2,000 | |||||
Foreign currency forward contracts | Cost of Sales | ||||||||
Pretax amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||
Forward foreign currency contracts, gain/(loss) reclassified from accumulated other comprehensive income (loss) | (834,000) | 0 | (1,390,000) | 0 | ||||
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||
Forward foreign currency contracts, gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | 0 | 0 | 0 | ||||
Foreign currency forward contracts | Designated as Hedging Instrument | Other current assets / other current liabilities | ||||||||
Derivative Asset [Abstract] | ||||||||
Foreign currency forward contracts, fair value of assets | 1,123,000 | 1,123,000 | 2,664,000 | |||||
Derivative Liability [Abstract] | ||||||||
Foreign currency forward contracts, fair value of liabilities | 1,962,000 | 1,962,000 | 5,101,000 | |||||
Foreign currency forward contracts | Designated as Hedging Instrument | Deferred charges and other noncurrent assets / other noncurrent liabilities | ||||||||
Derivative Asset [Abstract] | ||||||||
Foreign currency forward contracts, fair value of assets | 870,000 | 870,000 | 3,834,000 | |||||
Derivative Liability [Abstract] | ||||||||
Foreign currency forward contracts, fair value of liabilities | 76,000 | 76,000 | 897,000 | |||||
Interest rate contracts | Interest expense | ||||||||
Pretax amount of gain (loss) reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||
Interest rate contracts, gain/(loss) reclassified from accumulated other comprehensive income (loss) | (1,011,000) | (929,000) | (2,031,000) | (1,970,000) | ||||
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | ||||||||
Interest rate contracts, gain/(loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) | 0 | $ 0 | 0 | $ 0 | ||||
Interest rate contracts | Designated as Hedging Instrument | Deferred charges and other noncurrent assets / other noncurrent liabilities | ||||||||
Derivative Asset [Abstract] | ||||||||
Interest rate contracts, fair value of assets | 0 | 0 | 0 | |||||
Derivative Liability [Abstract] | ||||||||
Interest rate contracts, fair value of liabilities | $ 5,244,000 | $ 5,244,000 | $ 4,238,000 | |||||
Notional amount of $100 million | ||||||||
Derivative Financial Instruments | ||||||||
Number of interest rate derivatives held | derivative | 3 | 3 | 3 | |||||
Notional amount of $50 million | ||||||||
Derivative Financial Instruments | ||||||||
Number of interest rate derivatives held | derivative | 2 | 2 | 2 | |||||
Notional amount to mature August 2016 | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | $ 100,000,000 | $ 100,000,000 | ||||||
Notional amount to mature August 2017 | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | 100,000,000 | 100,000,000 | ||||||
Notional amount to mature August 2018 | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | 100,000,000 | 100,000,000 | ||||||
Notional amount to mature November 2016 | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | 50,000,000 | 50,000,000 | ||||||
Notional amount to mature November 2017 | ||||||||
Derivative Financial Instruments | ||||||||
Notional amount | $ 50,000,000 | $ 50,000,000 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |||||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||||||||
Beginning balance | $ (829,045) | $ (662,219) | $ (847,648) | $ (680,809) | ||||
Net change in fair value of derivatives | (4,696) | 541 | (6,356) | 1,705 | ||||
Net losses reclassified from AOCI, offsetting the price paid to suppliers | 1,700 | [1] | 109 | [2] | 2,789 | [1] | 2,301 | [2] |
Net actuarial losses reclassified from AOCI | 22,870 | [3] | 18,640 | [4] | 46,406 | [3] | 37,281 | [4] |
Prior service costs reclassified from AOCI | (4,335) | [3] | (4,761) | [4] | (8,670) | [3] | (9,524) | [4] |
Net change in cumulative translation adjustment | 0 | (8,934) | 0 | (7,738) | ||||
Other | (88) | 86 | (115) | 246 | ||||
Ending balance | (813,594) | (656,538) | (813,594) | (656,538) | ||||
Derivatives | ||||||||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||||||||
Beginning balance | (2,644) | (1,666) | (2,073) | (5,022) | ||||
Net change in fair value of derivatives | (4,696) | 541 | (6,356) | 1,705 | ||||
Net losses reclassified from AOCI, offsetting the price paid to suppliers | 1,700 | [1] | 109 | [2] | 2,789 | [1] | 2,301 | [2] |
Ending balance | (5,640) | (1,016) | (5,640) | (1,016) | ||||
Pension and Other Postretirement Benefits | ||||||||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||||||||
Beginning balance | (827,444) | (661,236) | (846,645) | (675,114) | ||||
Net actuarial losses reclassified from AOCI | 22,870 | [3] | 18,640 | [4] | 46,406 | [3] | 37,281 | [4] |
Prior service costs reclassified from AOCI | (4,335) | [3] | (4,761) | [4] | (8,670) | [3] | (9,524) | [4] |
Ending balance | (808,909) | (647,357) | (808,909) | (647,357) | ||||
Available-for-sale Securities | ||||||||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||||||||
Beginning balance | 1,043 | 992 | 1,070 | 832 | ||||
Other | (88) | 86 | (115) | 246 | ||||
Ending balance | $ 955 | 1,078 | $ 955 | 1,078 | ||||
Cumulative Translation Adjustment | ||||||||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||||||||
Beginning balance | (309) | (1,505) | ||||||
Net change in cumulative translation adjustment | (8,934) | (7,738) | ||||||
Ending balance | $ (9,243) | $ (9,243) | ||||||
[1] | Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. | |||||||
[2] | Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented. | |||||||
[3] | Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. | |||||||
[4] | Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented. |
Net Receivables (Details)
Net Receivables (Details) - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Receivables [Abstract] | ||
Billed receivables | $ 276,919 | $ 278,031 |
Unbilled receivables | 1,606,839 | 1,520,217 |
Less allowance for doubtful accounts | (1,083) | (4,692) |
Net receivables | 1,882,675 | 1,793,556 |
Customer progress payments received | 549,526 | 585,932 |
Unbilled receivables | ||
Long-term unbilled receivables, relating to commercial aerospace programs | $ 278,600 | $ 298,900 |
Net Inventories (Details)
Net Inventories (Details) - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 76,886 | $ 69,112 |
Contracts in process | 97,032 | 126,038 |
Finished goods | 1,399 | 964 |
Net inventories | $ 175,317 | $ 196,114 |
Other Current and Noncurrent 57
Other Current and Noncurrent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Oct. 04, 2015 | Jul. 05, 2015 | Oct. 04, 2015 | Mar. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | ||||
Employee benefits and insurance, including pension and other postretirement benefits | $ 55,518 | $ 53,588 | ||
Deferred lease obligation | 28,789 | 30,857 | ||
Warranty | $ 5,745 | $ 9,555 | 5,524 | 9,555 |
Interest | 441 | 7,801 | ||
Other | 53,920 | 110,827 | ||
Total other current liabilities | 144,192 | 212,628 | ||
Environmental remediation | 38,839 | 43,326 | ||
Income taxes | 36,380 | 34,415 | ||
Deferred lease obligation | 19,863 | 21,036 | ||
Management nonqualified deferred compensation plan | 17,165 | 14,853 | ||
Other | 38,372 | 52,165 | ||
Total other noncurrent liabilities | $ 150,619 | $ 165,795 | ||
Reconciliation of the changes in product warranty liability | ||||
Balance at the beginning of the period | 5,745 | 9,555 | ||
Payments made | (61) | (350) | ||
Warranties issued | 0 | 57 | ||
Changes related to preexisting warranties | (160) | (3,517) | ||
Balance at the end of period | $ 5,524 | $ 5,745 |
Long-term Debt (Debt table and
Long-term Debt (Debt table and narrative) (Details) | 3 Months Ended | 6 Months Ended | |||||
Oct. 04, 2015USD ($) | Oct. 04, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014derivative | Mar. 31, 2014derivative | Oct. 31, 2013USD ($) | |
Long-term Debt Table | |||||||
Total | $ 1,537,000,000 | $ 1,537,000,000 | $ 1,588,501,000 | ||||
Less: Current portion of long-term debt | 40,000,000 | 40,000,000 | 59,997,000 | ||||
Long-term debt | $ 1,497,000,000 | $ 1,497,000,000 | 1,528,504,000 | ||||
Number of interest rate derivatives held | derivative | 5 | 5 | |||||
Subsidiary guarantors percentage owned | 100.00% | 100.00% | |||||
Restricted payment limit | $ 250,000,000 | $ 250,000,000 | |||||
2015 Senior Credit Facility | |||||||
Long-term Debt Table | |||||||
Debt issuance costs | $ 3,903,000 | ||||||
Debt instrument, term (in years) | 5 years | ||||||
2015 Senior Credit Facility | Base Rate | |||||||
Long-term Debt Table | |||||||
Basis spread on variable rate | 0.50% | ||||||
2015 Senior Credit Facility | LIBOR | |||||||
Long-term Debt Table | |||||||
Basis spread on variable rate | 1.50% | ||||||
2015 Senior Credit Facility | Term Loan A due 2020 | |||||||
Long-term Debt Table | |||||||
Total | $ 800,000,000 | $ 800,000,000 | 0 | ||||
Debt instrument, face amount | $ 800,000,000 | ||||||
Periodic principal payments | $ 10,000,000 | ||||||
Weighted average interest rate | 2.19% | 2.19% | |||||
2015 Senior Credit Facility | Revolving Credit Facility due 2020 | Revolving Credit Facility | |||||||
Long-term Debt Table | |||||||
Total | $ 37,000,000 | $ 37,000,000 | 0 | ||||
Revolving credit cacility, maximum borrowing capacity | $ 1,000,000,000 | ||||||
Annual commitment fee on the unused portion (as a percent) | 0.25% | ||||||
Outstanding letters of credit | $ 152,894,000 | 152,894,000 | |||||
Line of credit facility, remaining borrowing capacity | 810,106,000 | 810,106,000 | |||||
5.25% Senior Notes due 2021 | |||||||
Long-term Debt Table | |||||||
Total | $ 300,000,000 | $ 300,000,000 | 300,000,000 | ||||
Debt instrument interest rate stated percentage | 5.25% | 5.25% | 5.25% | ||||
Debt instrument, face amount | $ 300,000,000 | ||||||
Debt instrument, term (in years) | 8 years | ||||||
Percentage of principal amount at which the entity may redeem some or all of the notes prior to specified date | 100.00% | ||||||
Maximum redemption with net proceeds from equity offerings as percentage of original principal | 35.00% | ||||||
Redemption price with net proceeds from equity offerings as percentage of original principal | 105.25% | ||||||
Deferred finance costs | $ 2,625,000 | $ 2,625,000 | |||||
Senior Notes [Member] | 5.50% Senior Notes due 2023 | |||||||
Long-term Debt Table | |||||||
Total | $ 400,000,000 | $ 400,000,000 | 0 | ||||
Debt instrument interest rate stated percentage | 5.50% | 5.50% | 5.50% | ||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Debt issuance costs | $ 5,994,000 | ||||||
Debt instrument, term (in years) | 8 years | ||||||
Percentage of principal amount at which the entity may redeem some or all of the notes prior to specified date | 100.00% | ||||||
Maximum redemption with net proceeds from equity offerings as percentage of original principal | 35.00% | ||||||
Redemption price with net proceeds from equity offerings as percentage of original principal | 105.50% | ||||||
Term A Loan due 2018 | |||||||
Long-term Debt Table | |||||||
Total | $ 0 | $ 0 | 946,875,000 | ||||
Debt instrument, face amount | 1,160,000,000 | 1,160,000,000 | |||||
Quarterly repayments of principal | 14,500,000 | 14,500,000 | |||||
Term A Loan due 2019 | |||||||
Long-term Debt Table | |||||||
Total | 0 | 0 | 144,375,000 | ||||
Term B Loan due 2020 | |||||||
Long-term Debt Table | |||||||
Total | 0 | 0 | 197,251,000 | ||||
Debt instrument, face amount | 250,000,000 | 250,000,000 | |||||
Line of Credit 2018 | |||||||
Long-term Debt Table | |||||||
Total | 0 | 0 | $ 0 | ||||
Long-term debt | 700,000,000 | 700,000,000 | |||||
2013 Senior Credit Facility | |||||||
Long-term Debt Table | |||||||
Loss on extinguishment of debt | 9,482,000 | ||||||
Unamortized debt issuance costs | 3,361,000 | $ 3,361,000 | |||||
Maximum amount of restricted payments as a percent of net income | 50.00% | ||||||
2013 Term Loan B notes | |||||||
Long-term Debt Table | |||||||
Quarterly repayments of principal | $ 499,000 | $ 499,000 |
Long-term Debt (Interest rate s
Long-term Debt (Interest rate swaps) (Details 2) | Oct. 04, 2015USD ($) | Oct. 04, 2015EUR (€) |
Long-Term Debt | ||
Notional amount | € | € 16,062 | |
Notional amount to mature August 2016 | ||
Long-Term Debt | ||
Notional amount | $ 100,000,000 | |
Derivative at fair value | $ (466,000) | |
Derivative, fixed interest rate | 0.87% | 0.87% |
Derivative, variable interest rate | 0.19% | 0.19% |
Notional amount to mature August 2017 | ||
Long-Term Debt | ||
Notional amount | $ 100,000,000 | |
Derivative at fair value | $ (1,421,000) | |
Derivative, fixed interest rate | 1.29% | 1.29% |
Derivative, variable interest rate | 0.19% | 0.19% |
Notional amount to mature August 2018 | ||
Long-Term Debt | ||
Notional amount | $ 100,000,000 | |
Derivative at fair value | $ (2,670,000) | |
Derivative, fixed interest rate | 1.69% | 1.69% |
Derivative, variable interest rate | 0.19% | 0.19% |
Notional amount to mature November 2016 | ||
Long-Term Debt | ||
Notional amount | $ 50,000,000 | |
Derivative at fair value | $ (148,000) | |
Derivative, fixed interest rate | 0.65% | 0.65% |
Derivative, variable interest rate | 0.19% | 0.19% |
Notional amount to mature November 2017 | ||
Long-Term Debt | ||
Notional amount | $ 50,000,000 | |
Derivative at fair value | $ (540,000) | |
Derivative, fixed interest rate | 1.10% | 1.10% |
Derivative, variable interest rate | 0.19% | 0.19% |
Long-term Debt (Minimum loan pa
Long-term Debt (Minimum loan payments) (Details 3) - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 |
Minimum payments on outstanding long-term debt | ||
Remainder of 2015 | $ 10,000 | |
Calendar 2,016 | 40,000 | |
Calendar 2,017 | 40,000 | |
Calendar 2,018 | 40,000 | |
Calendar 2,019 | 40,000 | |
Thereafter | 1,367,000 | |
Total | $ 1,537,000 | $ 1,588,501 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Pension Benefits | ||||
Change in benefit obligation | ||||
Service cost | $ 4,815 | $ 5,849 | $ 9,630 | $ 11,698 |
Interest cost | 30,348 | 32,596 | 60,696 | 65,193 |
Expected return on plan assets | (40,117) | (41,803) | (80,234) | (83,607) |
Amortization of unrecognized net loss | 37,690 | 29,814 | 75,379 | 59,629 |
Amortization of unrecognized prior service cost | (5,213) | (5,622) | (10,425) | (11,245) |
Net periodic benefit cost (income) | 27,523 | 20,834 | 55,046 | 41,668 |
Other Postretirement Benefits | ||||
Change in benefit obligation | ||||
Service cost | 1 | 1 | 1 | 2 |
Interest cost | 1,126 | 1,203 | 2,252 | 2,407 |
Expected return on plan assets | (922) | (888) | (1,844) | (1,776) |
Amortization of unrecognized net loss | 495 | 409 | 991 | 818 |
Amortization of unrecognized prior service cost | (1,813) | (2,094) | (3,626) | (4,188) |
Net periodic benefit cost (income) | $ (1,113) | $ (1,369) | $ (2,226) | $ (2,737) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 6 Months Ended |
Oct. 04, 2015USD ($) | |
Supplemental (nonqualified) executive retirement plan | |
Contributions | |
Employer contributions directly to the pension trust for the period | $ 28,700 |
Employer's contribution to retirees during the period | 1,240 |
Estimated future employer contributions in current fiscal year | 1,534 |
Other Postretirement Benefits | |
Contributions | |
Employer contributions directly to the pension trust for the period | 4,431 |
Estimated future employer contributions in current fiscal year | 1,892 |
Pension Benefits | |
Contributions | |
Estimated future employer contributions in current fiscal year | $ 12,300 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | 33.20% | 27.50% | 33.60% | 30.60% |
Potential reduction of uncertain tax benefits over the next 12 months from audit settlements | $ 483,000 | $ 483,000 | ||
Minimum increase in earnings from settlement of unrecognized tax benefits based on current estimates | 0 | |||
Maximum increase in earnings from settlement of unrecognized tax benefits based on current estimates | $ 309,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2015USD ($)awardplan$ / sharesshares | Sep. 28, 2014USD ($) | Oct. 04, 2015USD ($)awardplan$ / sharesshares | Sep. 28, 2014USD ($)shares | Mar. 31, 2015shares | |
Stock-Based Compensation | |||||
Number of authorized shares of preferred stock | 5,000,000 | 5,000,000 | |||
Par value of preferred stock (in dollars per share) | $ / shares | $ 1 | $ 1 | |||
Total pre-tax stock-based compensation expense | $ | $ 6,046 | $ 4,066 | $ 7,927 | $ 15,049 | |
Total income tax benefit recognized in the income statement for share-based compensation | $ | $ 2,194 | $ 1,560 | $ 5,660 | $ 3,042 | |
Number of stock-based incentive plans | plan | 6 | 6 | |||
Number of plans under which no new grants are being made | plan | 5 | 5 | |||
Number of types of awards outstanding under the entity's stock incentive plans | award | 5 | 5 | |||
Shares paid upon vesting of restricted stock units | 107,976 | ||||
Restricted stock | |||||
Stock-Based Compensation | |||||
Restricted stock granted to non-employee directors and certain key employees (in shares) | 15,645 | ||||
Restricted stock | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
Restricted stock | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | ||||
Stock options | |||||
Stock-Based Compensation | |||||
Minimum terms of options | 7 years | ||||
Maximum terms of options | 10 years | ||||
Number of years upon which expected volatility is based | 7 years | ||||
Stock options granted | 1,443 | 0 | |||
Stock options | Minimum | |||||
Stock-Based Compensation | |||||
Vesting period | 1 year | ||||
Stock options | Maximum | |||||
Stock-Based Compensation | |||||
Vesting period | 3 years | ||||
Fiscal 2014 through fiscal 2016 period | |||||
Stock-Based Compensation | |||||
Number of shares payable only upon the achievement of certain financial performance goals | 40,707 | 40,707 | 40,707 | ||
Fiscal 2015 through Fiscal 2017 period | |||||
Stock-Based Compensation | |||||
Number of shares payable only upon the achievement of certain financial performance goals | 57,096 | 57,096 | 65,157 | ||
Legacy ATK Plans | |||||
Stock-Based Compensation | |||||
Number of stock-based incentive plans | plan | 3 | 3 | |||
Legacy Orbital Plans | |||||
Stock-Based Compensation | |||||
Number of stock-based incentive plans | plan | 2 | 2 | |||
2005 Stock Incentive Plan | |||||
Stock-Based Compensation | |||||
Number of authorized common shares | 3,750,000 | 3,750,000 | |||
Number of available shares to be granted | 3,707,162 | 3,707,162 | |||
Performance awards | |||||
Stock-Based Compensation | |||||
Number of shares reserved | 161,974 | 161,974 | |||
Maximum percentage payable upon achieving performance goal related to earnings | 50.00% | 50.00% | |||
Maximum percentage payable upon achieving performance goal related to sales growth | 50.00% | 50.00% | |||
Total stockholder return performance awards ("TSR awards") | |||||
Stock-Based Compensation | |||||
Shares earned | 820 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | Oct. 04, 2015 | Mar. 31, 2015 | Oct. 04, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||
Unbilled receivables for contract claims | $ 29,292 | $ 42,055 | $ 29,292 |
Discount rate | 0.50% | 0.50% | |
Treasury constant maturities rate used to estimate discount rate (in years) | 20 years | ||
Estimated inflationary factor (as a percent) | 1.90% | 1.90% | |
Environmental remediation | |||
Amounts (payable) | $ (42,693) | $ (51,749) | $ (42,693) |
Unamortized discount on liability | 1,223 | 1,624 | 1,223 |
Present value amounts (payable) | (41,470) | (50,125) | (41,470) |
Amounts receivable | 18,114 | 26,506 | 18,114 |
Unamortized discount on receivable | (398) | (750) | (398) |
Present value amounts receivable | 17,716 | 25,756 | 17,716 |
Discounted liability recorded in other current liabilities | 2,631 | 2,631 | |
Discounted liability recorded in other long-term liabilities | 38,839 | $ 43,326 | 38,839 |
Discounted receivable recorded in other current assets | 1,999 | 1,999 | |
Discounted receivable recorded in other non-current assets | 15,717 | $ 15,717 | |
Minimum | |||
Business Acquisition [Line Items] | |||
Period beyond balance sheet date for classifying the environmental remediation as non-current (in years) | 1 year | ||
Estimated discounted reasonably possible costs of environmental remediation | 41,470 | $ 41,470 | |
Maximum | |||
Business Acquisition [Line Items] | |||
Estimated discounted reasonably possible costs of environmental remediation | $ 82,494 | $ 82,494 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Oct. 29, 2015 | Aug. 04, 2015 | Mar. 11, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 100,000,000 | $ 75,000,000 | ||||
Stock repurchase program, number of shares authorized to be repurchased | 1,400,000 | 1,000,000 | ||||
Stock repurchased during period, shares | 497,145 | 825,986 | ||||
Stock repurchased during period, value | $ 36,275,000 | $ 60,777,000 | ||||
Subsequent Event [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 | |||||
Stock repurchase program, number of shares authorized to be repurchased | 3,250,000 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Oct. 04, 2015 | Sep. 28, 2014 | Oct. 04, 2015 | Sep. 28, 2014 | |
Changes in Estimates [Abstract] | ||||
Operating income adjustments under percentage of completion method | $ 45,000,000 | $ 24,000,000 | $ 70,000,000 | $ 47,000,000 |
Aerojet-Rocketdyne Holdings, Inc. | ||||
Loss Contingencies [Line Items] | ||||
Contract settlement | $ 50,000,000 |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 6 Months Ended |
Oct. 04, 2015USD ($) | |
Realignment liability activity | |
Balance at the beginning of the period | $ 18,759 |
Expense | 2,173 |
Cash paid | (9,637) |
Balance at the end of the period | 11,295 |
Termination Benefits | |
Realignment liability activity | |
Balance at the beginning of the period | 8,332 |
Expense | 2,173 |
Cash paid | (8,431) |
Balance at the end of the period | 2,074 |
Remaining Lease Rentals | |
Realignment liability activity | |
Balance at the beginning of the period | 10,427 |
Expense | 0 |
Cash paid | (1,206) |
Balance at the end of the period | $ 9,221 |
Operating Segment Information69
Operating Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Oct. 04, 2015USD ($)segment | Sep. 28, 2014USD ($) | Oct. 04, 2015USD ($)segment | Sep. 28, 2014USD ($) | Mar. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||
Number of operating segments | segment | 3 | 3 | |||
Results by operating segment | |||||
Net intercompany sales | $ 1,134,886 | $ 743,202 | $ 2,264,842 | $ 1,457,562 | |
Sales | 1,134,886 | 743,202 | 2,264,842 | 1,457,562 | |
Income from continuing operations, before interest, income taxes and noncontrolling interest | 123,965 | 80,267 | 249,759 | 152,086 | |
Total assets | 5,410,648 | 5,410,648 | $ 5,504,402 | ||
Flight Systems Group | |||||
Results by operating segment | |||||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 51,138 | 34,535 | 109,198 | 67,202 | |
Total assets | 2,076,634 | 2,076,634 | 2,047,966 | ||
Defense Systems Group | |||||
Results by operating segment | |||||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 35,294 | 50,342 | 74,458 | 95,486 | |
Total assets | 1,411,867 | 1,411,867 | 1,320,425 | ||
Space Systems Group | |||||
Results by operating segment | |||||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 41,552 | 4,812 | 82,981 | 10,523 | |
Total assets | 1,477,639 | 1,477,639 | 1,467,948 | ||
Corporate | |||||
Results by operating segment | |||||
Income from continuing operations, before interest, income taxes and noncontrolling interest | (4,019) | (9,422) | (16,878) | (21,125) | |
Total assets | 444,508 | 444,508 | $ 668,063 | ||
Sales to External Customers | Flight Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 317,449 | 250,529 | 704,261 | 505,411 | |
Sales to External Customers | Defense Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 451,120 | 418,816 | 888,900 | 806,131 | |
Sales to External Customers | Space Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 366,317 | 73,857 | 671,681 | 146,020 | |
Intercompany Sales | |||||
Results by operating segment | |||||
Net intercompany sales | 0 | 0 | 0 | 0 | |
Intercompany Sales | Flight Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 7,173 | 1,715 | 18,433 | 4,081 | |
Intercompany Sales | Defense Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 1,488 | 68,918 | 3,478 | 123,754 | |
Intercompany Sales | Space Systems Group | |||||
Results by operating segment | |||||
Net intercompany sales | 5,021 | 3,834 | 9,724 | 7,891 | |
Intercompany Sales | Corporate | |||||
Results by operating segment | |||||
Net intercompany sales | $ (13,682) | $ (74,467) | $ (31,635) | $ (135,726) |