Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2016 | May. 02, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ORBITAL ATK, INC. | |
Entity Central Index Key | 866,121 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 3, 2016 | |
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 | 58,557,150 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Sales | $ 1,064,954 | $ 969,539 |
Cost of sales | 842,695 | 756,998 |
Gross profit | 222,259 | 212,541 |
Operating expenses: | ||
Research and development | 19,779 | 25,368 |
Selling | 27,048 | 20,908 |
General and administrative | 59,529 | 133,057 |
Goodwill impairment | 0 | 34,300 |
Income (loss) from continuing operations, before interest, income taxes and noncontrolling interest | 115,903 | (1,092) |
Net interest expense | (20,691) | (20,579) |
Loss on extinguishment of debt | 0 | (26,626) |
Income (loss) from continuing operations, before income taxes and noncontrolling interest | 95,212 | (48,297) |
Income taxes | 25,367 | (7,398) |
Income (loss) from continuing operations, before noncontrolling interest | 69,845 | (40,899) |
Less net income (loss) attributable to noncontrolling interest | 9 | (192) |
Income (loss) from continuing operations of Orbital ATK, Inc. | 69,836 | (40,707) |
Discontinued operations: | ||
Income from discontinued operations, before income taxes | 0 | 17,505 |
Income taxes | 0 | 668 |
Income from discontinued operations | 0 | 16,837 |
Net income (loss) attributable to Orbital ATK, Inc. | $ 69,836 | $ (23,870) |
Basic earnings per common share from: | ||
Continuing operations, basic (in dollars per share) | $ 1.20 | $ (0.87) |
Discontinued operations, basic (in dollars per share) | 0 | 0.36 |
Net income attributable to Orbital ATK, Inc., basic (in dollars per share) | $ 1.20 | $ (0.51) |
Weighted-average number of common shares outstanding (in shares) | 58,298 | 46,465 |
Diluted earnings per common share from: | ||
Continuing operations, diluted (in dollars per share) | $ 1.19 | $ (0.87) |
Discontinued operations, diluted (in dollars per share) | 0 | 0.36 |
Net income attributable to Orbital ATK, Inc., diluted (in dollars per share) | $ 1.19 | $ (0.51) |
Weighted-average number of diluted common shares outstanding (in shares) | 58,881 | 46,928 |
Comprehensive income: | ||
Net income (loss) attributable to Orbital ATK, Inc. and noncontrolling interest (from above) | $ 69,845 | $ (24,062) |
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 $2,470 and $2,876, respectively | (3,972) | (4,621) |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(11,944) and $26,561, respectively | 19,232 | (42,078) |
Valuation adjustment for pension and postretirement benefit plans, net of tax (expense) benefit of $0 and $139,583, respectively | 0 | (224,389) |
Change in fair value of derivatives, net of tax (expense) benefit of $129 and $(981), respectively | (204) | 1,535 |
Other, net of tax (expense) benefit of $(565) and $21, respectively | 1,064 | (38) |
Change in cumulative translation adjustment, net of tax expense of $0 and $(9,650) respectively | 0 | (21,381) |
Total other comprehensive income (loss) | 16,120 | (290,972) |
Comprehensive income (loss) | 85,965 | (315,034) |
Less comprehensive (loss) income attributable to noncontrolling interest | 9 | (192) |
Comprehensive income (loss) attributable to Orbital ATK, Inc. | $ 85,956 | $ (314,842) |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Pension and other postretirement benefit liabilities: | ||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, tax benefit | $ 2,470 | $ 2,876 |
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, tax expense | (11,944) | 26,561 |
Valuation adjustment for pension and postretirement benefit plans, tax | 0 | 139,583 |
Change in fair value of derivatives, tax benefit (expense) | 129 | (981) |
Other Comprehensive Income, Other, Tax | (565) | 21 |
Change in cumulative translation adjustment, tax expense | $ 0 | $ (9,650) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 73,524 | $ 104,032 |
Net receivables | 1,972,333 | 1,784,434 |
Net inventories | 233,721 | 211,712 |
Other current assets | 128,558 | 140,264 |
Total current assets | 2,408,136 | 2,240,442 |
Net property, plant and equipment | 797,027 | 806,187 |
Goodwill | 1,835,711 | 1,832,066 |
Other noncurrent assets | 428,169 | 460,697 |
Total assets | 5,469,043 | 5,339,392 |
Current liabilities: | ||
Current portion of long-term debt | 40,000 | 40,000 |
Accounts payable | 171,456 | 129,312 |
Accrued compensation | 111,705 | 125,278 |
Other current liabilities | 631,037 | 672,389 |
Total current liabilities | 954,198 | 966,979 |
Long-term debt | 1,551,481 | 1,435,836 |
Pension and other postretirement benefits | 801,327 | 820,834 |
Other noncurrent liabilities | 171,775 | 167,798 |
Total liabilities | $ 3,478,781 | $ 3,391,447 |
Commitments and contingencies (Notes 12 and 15) | ||
Common stock—$.01 par value: authorized—180,000,000 shares; issued and outstanding— 58,607,941 shares at April 3, 2016 and 58,729,995 shares at December 31, 2015 | $ 586 | $ 587 |
Additional paid-in-capital | 2,173,657 | 2,187,940 |
Retained earnings | 1,357,799 | 1,305,550 |
Accumulated other comprehensive loss | (769,788) | (785,908) |
Common stock in treasury, at cost—10,327,083 shares held at April 3, 2016 and 10,205,029 shares held at December 31, 2015 | (782,805) | (771,029) |
Total Orbital ATK, Inc. stockholders' equity | 1,979,449 | 1,937,140 |
Noncontrolling interest | 10,813 | 10,805 |
Total equity | 1,990,262 | 1,947,945 |
Total liabilities and equity | $ 5,469,043 | $ 5,339,392 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 03, 2016 | Dec. 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 | 58,607,941 | 58,729,995 |
Common stock, outstanding shares | 58,607,941 | 58,729,995 |
Common stock in treasury, shares | 10,327,083 | 10,205,029 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 69,845,000 | $ (24,062,000) |
Net income from discontinued operations | 0 | (16,837,000) |
Income (loss) from continuing operations, before noncontrolling interest | 69,845,000 | (40,899,000) |
Adjustments to reconcile income from continuing operations to cash provided by (used for) operating activities of continuing operations: | ||
Depreciation and amortization | 40,866,000 | 28,485,000 |
Amortization and write-off of deferred financing costs | 644,000 | 1,270,000 |
Deferred income taxes | 3,264,000 | (40,205,000) |
Goodwill impairment | 0 | 34,300,000 |
Loss on the extinguishment of debt | 0 | 26,626,000 |
Share-based plans expense | 4,747,000 | 13,320,000 |
Other | 194,000 | 774,000 |
Changes in assets and liabilities: | ||
Net receivables | (187,899,000) | 113,384,000 |
Net inventories | (22,009,000) | 15,847,000 |
Accounts payable | 43,134,000 | (31,869,000) |
Accrued compensation | (13,571,000) | (16,917,000) |
Pension and other postretirement benefits | 6,865,000 | (15,610,000) |
Other assets and liabilities | (21,151,000) | 57,898,000 |
Cash provided by (used for) operating activities of continuing operations | (75,071,000) | 146,404,000 |
Cash provided by (used for) operating activities of discontinued operations | 0 | 10,741,000 |
Cash provided by (used for) operating activities | (75,071,000) | 157,145,000 |
Investing Activities | ||
Capital expenditures | (22,573,000) | (51,343,000) |
Cash acquired in Merger with Orbital | 0 | 253,734,000 |
Cash dividend received from Vista Outdoor, net of cash transferred to Vista Outdoor in conjunction with the Distribution of Sporting Group | 0 | 188,878,000 |
Other | 0 | 132,000 |
Cash provided by (used for) investing activities of continuing operations | (22,573,000) | 391,401,000 |
Cash provided by (used for) investing activities of discontinued operations | 0 | 49,000 |
Cash provided by (used for) investing activities | (22,573,000) | 391,450,000 |
Financing Activities | ||
Borrowings on revolving credit facilities | 290,000,000 | 163,000,000 |
Payments on revolving credit facilities | (165,000,000) | (263,000,000) |
Payments made on bank debt | (10,000,000) | (29,999,000) |
Payments made to extinguish debt | 0 | (372,758,000) |
Purchase of treasury shares | (30,754,000) | (7,787,000) |
Dividends paid | (17,590,000) | (10,399,000) |
Proceeds from employee stock compensation plans | 480,000 | 0 |
Tax benefits from share-based plans | 0 | 21,000 |
Cash provided by (used for) financing activities | 67,136,000 | (520,922,000) |
Effect of foreign exchange rate fluctuations on cash | 0 | (1,340,000) |
Decrease in cash and cash equivalents | (30,508,000) | 26,333,000 |
Cash and cash equivalents at beginning of period | 104,032,000 | 112,920,000 |
Cash and cash equivalents at end of period | 73,524,000 | 139,253,000 |
Supplemental Cash Flow Disclosures | ||
Interest, net | 24,605,000 | 23,200,000 |
Income taxes, net | 2,437,000 | 31,438,000 |
Noncash investing and financing and operating activity: | ||
Capital expenditures included in accounts payable | 2,992,000 | 2,567,000 |
Issuance of shares for noncash assets and liabilities of Orbital | 0 | 1,504,243 |
Treasury shares purchased included in accounts payable | $ 533,000 | $ 0 |
Basis of Presentation and Respo
Basis of Presentation and Responsiblity for Interim Financial Statements | 3 Months Ended |
Apr. 03, 2016 | |
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 Transition Report on Form 10-K for the nine-month transition period ended December 31, 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 April 3, 2016 , and its results of operations and cash flows for the quarters ended April 3, 2016 and March 31, 2015 . On February 9, 2015, the Company completed a tax-free spin-off of and distribution of its former 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 19. 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. Certain reclassifications have been made to prior year amounts to conform to current year presentation. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes included in its Transition Report on Form 10-K for the nine-month transition period ended December 31, 2015. Fiscal Year. The Company's interim quarterly periods are based on 13-week periods and end on Sundays. The quarter ended March 31, 2015 did not end on a Sunday because it was the last quarter of the Company's fiscal year ended March 31, 2015. 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 a Transition Report on Form 10-K for the nine-month transition period ended December 31, 2015. |
New Accounting Pronoucements
New Accounting Pronoucements | 3 Months Ended |
Apr. 03, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-09, Compensation--Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, which requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid in capital pools. The guidance also allows for the employer to repurchase a greater number of an employee’s shares for tax withholding purposes without triggering liability accounting. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. The guidance is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company elected to early adopt this ASU effective for the quarter ended April 3, 2016. The adoption of this new standard did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires recognition of lease assets and lease liabilities for those leases classified as operating leases under previous generally accepted accounting principles in the United States ("U.S. GAAP"). The new standard is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company currently is evaluating the potential changes from this ASU to its future financial reporting and disclosures. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which 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 became effective retrospectively for the Company beginning in the quarter ended April 3, 2016. The adoption of this new standard did not have an impact on the Company's consolidated financial statements but impacted certain disclosures reflected in the notes to the accompanying condensed consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs and in August 2015, the FASB issued ASU No. 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” These ASUs more closely align the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt. The amendments in these ASUs became effective for the Company in the current quarter ended April 3, 2016. The adoption of these new standards impacted the presentation of the current and prior period debt issuance costs included in Note 11. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which simplifies the consolidation evaluation process by placing more emphasis on risk of loss when determining a controlling financial interest. This new standard is effective for interim and annual periods beginning after December 15, 2015. The adoption of this new standard did not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which will replace numerous requirements in U.S. GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Under the new standard, the Company expects to continue using the cost-to-cost percentage of completion method to recognize revenue for most of its long-term contracts. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has not yet selected a transition method. The Company currently is evaluating the potential changes from this ASU to its future financial reporting and disclosures. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard now will be effective for annual reporting periods beginning after December 15, 2017. The FASB will permit companies to adopt the new standard early, but not before the original effective date of annual reporting periods beginning after December 15, 2016. Other new pronouncements issued but not effective for the Company until after April 3, 2016 are not expected to have a material impact on the Company's continuing financial position, results of operations or liquidity. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 03, 2016 | |
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. The fair value of these securities is measured on a recurring basis. The fair value of these securities was $10,751 and $12,065 as of April 3, 3016 and December 31, 2015, respectively. 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: April 3, 2016 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Derivatives $ — $ 1,685 $ — Liabilities: Derivatives — 6,943 — December 31, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Derivatives $ — $ 3,979 $ — Liabilities: Derivatives — 8,353 — 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: April 3, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fixed-rate debt $ 700,000 $ 735,250 $ 700,000 $ 712,500 Variable-rate debt 905,000 899,606 790,000 787,697 |
Mergers, Acquisitions and Dives
Mergers, Acquisitions and Divestitures | 3 Months Ended |
Apr. 03, 2016 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Divestiture | Mergers, Acquisitions and Divestitures On February 9, 2015, the Company completed the spin-off and Distribution of its former 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 two 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." Sales reported as discontinued operations were $186 million in the quarter ended March 31, 2015. 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. Orbital's sales and pre-tax income included in the Company's financial statements for the post-Merger period of February 9, 2015 through March 31, 2015 were approximately $191 million and $16 million, respectively. Valuation of Net Assets Acquired The following amounts represent the final determination (as of the Merger date) of the fair value of identifiable assets acquired and liabilities assumed in the Merger, including adjustments made to date during the one year measurement period from the date of the Merger: 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 Value of assets acquired and liabilities assumed: Cash $ 253,734 Net receivables 558,639 Net inventories 75,294 Intangibles 173,000 Property, plant and equipment 277,438 Deferred tax assets, net 64,821 Other assets 36,878 Goodwill 826,548 Accounts payable (52,028 ) Contract fair value liabilities (130,888 ) Other liabilities (325,459 ) 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. The consideration paid for Orbital's assets and liabilities was determined using the fair market value of the Company stock issued on the closing date of the Merger along with restricted stock awards granted to certain employees of Orbital. 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. There were no significant contingencies identified related to any legal or government action. The accompanying condensed consolidated income statement for the quarter ended April 3, 2016 included a measurement period adjustment pertaining to the fair value of intangibles that was immaterial. All elements in the determination of the fair value of identifiable assets acquired and liabilities assumed in the Merger are final as of April 3, 2016 . Supplemental Pro Forma Data The following unaudited supplemental pro forma data for the quarter ended March 31, 2015 presents consolidated information as if the Merger had been completed on April 1, 2013. The pro forma results were calculated by combining the results from continuing operations of the Company with the stand-alone results of Orbital for the pre-Merger period, which were adjusted to eliminate historical sales between the companies and to account for certain costs which would have been incurred during this pre-Merger period: Quarter Ended March 31, 2015 Sales $ 1,086,680 Loss from continuing operations (30,981 ) Basic earnings per common share from continuing operations $ (0.52 ) Diluted earnings per common share from continuing operations (0.51 ) The unaudited supplemental pro forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the Merger had been completed on April 1, 2013, as adjusted for the applicable income tax impact: Quarter Ended March 31, 2015 Amortization of acquired Orbital intangible assets (1) $ 3,877 Interest expense adjustment (2) (6,069 ) Transaction fees for advisory, legal and accounting services (3) (19,134 ) _________________________________________ (1) Added the amortization of acquired Orbital intangible assets recognized at fair value in purchase accounting and eliminated historical Orbital intangible asset amortization expense. (2) Reduced interest expense for the net reduction in debt of the Company and Orbital. (3) Excluded transaction fees for advisory, legal and accounting services incurred in the quarter ended March 31, 2015 . The unaudited supplemental pro forma data above does not reflect the potential realization of cost savings related to the integration of the two companies. Further, the pro forma data should not be considered indicative of the results that would have occurred if the Merger had been completed on April 1, 2013, nor are they indicative of future results. 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 supply agreements call for Vista Outdoor to purchase certain minimum quantities of ammunition and gun powder from the Company through March 2017 or 2018, as applicable. The supply agreements which are priced at arms-length expire in 2017 (powder) and 2018 (ammunition) and may be extended in one -to- three year increments. Under the terms of the TSA, the Company provided various administrative services to Vista Outdoor for up to 12 months following the Distribution and will provide tax assistance services for 18 months following the Distribution, extendable to 30 months. Fees for services under the TSA are charged to Vista Outdoor. Sales to Vista Outdoor under the supply agreements were $61,611 and $ 18,928 for the quarters ended April 3, 2016 and March 31, 2015, respectively. Sales to Sporting Group, previously reported as intercompany sales and eliminated in consolidation were $13,595 for the quarter ended March 31, 2015. |
Goodwill and Net Intangibles
Goodwill and Net Intangibles | 3 Months Ended |
Apr. 03, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Net Intangibles | Goodwill and Net Intangibles The changes in the carrying amount of goodwill by segment were as follows: Flight Systems Group Defense Systems Group Space Systems Group Total Balance, December 31, 2015 $ 922,991 $ 366,947 $ 542,128 $ 1,832,066 Measurement period adjustments 5,467 — (1,822 ) 3,645 Balance, April 3, 2016 $ 928,458 $ 366,947 $ 540,306 $ 1,835,711 Net intangibles consisted of the following: April 3, 2016 December 31, 2015 Gross Accumulated Net Intangibles Gross Accumulated Net Intangibles Amortizing intangibles: Contract backlog $ 173,000 $ (47,239 ) $ 125,761 $ 179,000 $ (36,696 ) $ 142,304 Patented technology 11,018 (6,476 ) 4,542 11,018 (6,206 ) 4,812 Customer relationships and other 24,294 (24,294 ) — 24,294 (24,254 ) 40 Intangibles $ 208,312 $ (78,009 ) $ 130,303 $ 214,312 $ (67,156 ) $ 147,156 The contract backlog asset in the table above is being amortized as underlying costs are recognized under the contract. The other assets in the table above are being amortized using a straight-line method. The weighted-average remaining period of amortization of total net intangible assets above is 3.8 years. Amortization expense for the quarter ended April 3, 2016 and March 31, 2015 was $10,850 and $6,942 , respectively. The Company expects amortization expense related to these assets to be as follows: Contract Backlog Patents Total Remainder of 2016 $ 31,629 $ 912 $ 32,541 2017 35,882 1,180 37,062 2018 25,609 1,120 26,729 2019 21,760 1,072 22,832 2020 10,881 258 11,139 Thereafter — — — Total $ 125,761 $ 4,542 $ 130,303 |
Earnings Per Share Data
Earnings Per Share Data | 3 Months Ended |
Apr. 03, 2016 | |
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 outstanding for each period. In computing EPS for the quarters ended April 3, 2016 and March 31, 2015 , earnings reported for each respective period were divided by weighted-average shares outstanding, determined as follows (in thousands): Quarters Ended April 3, 2016 March 31, 2015 Basic 58,298 46,465 Dilutive effect of stock-based awards 583 463 Diluted 58,881 46,928 Anti-dilutive stock options excluded from the calculation of diluted shares 147 73 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Apr. 03, 2016 | |
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 entered into forward contracts for copper and zinc during the quarter ended April 3, 2016. The contracts 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 future LIBOR, and the established fixed rate is based primarily on quotes from banks. 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 April 3, 2016 , 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 the quarter ended April 3, 2016 to hedge forecasted cash payments to a customer. This transaction was designated and qualified as effective cash flow hedge. 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 and in cost of sales when the related inventory is sold. The gains or losses on the foreign currency forward contracts are recorded in earnings when the related inventory is sold or customer cash receipts are received. Commodity forward contracts outstanding that hedge forecasted commondity purchases were as follows: Number of Pounds Copper 16,575 Zinc 5,090 Interest rate swap agreements in order to manage interest costs and the risk associated with variable interest rates were as follows: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ (173 ) 0.87 % 0.43 % August 2016 Non-amortizing swap 100,000 (921 ) 1.29 % 0.43 % August 2017 Non-amortizing swap 100,000 (2,236 ) 1.69 % 0.43 % August 2018 Non-amortizing swap 50,000 (37 ) 0.65 % 0.43 % November 2016 Non-amortizing swap 50,000 (921 ) 1.10 % 0.43 % November 2017 The amount to be paid or received under these swaps is recorded as an adjustment to interest expense. Outstanding foreign currency forward contracts were as follows: Quantity Hedged Euros Sold 61,420 Euros Purchased 8,466 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 April 3, 2016 December 31, 2015 April 3, 2016 December 31, 2015 Commodity forward contracts Other current assets / $ 445 $ — $ 2,083 $ 4,445 Commodity forward contracts Other noncurrent assets / 537 — — — Foreign currency forward contracts Other current assets / 637 2,875 572 1,442 Foreign currency forward contracts Other noncurrent assets / 66 1,095 — 18 Interest rate contracts Other current assets / other current liabilities — 9 — — Interest rate contracts Other noncurrent assets / — — 4,288 2,448 Total $ 1,685 $ 3,979 $ 6,943 $ 8,353 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 April 3, 2016 Commodity forward contracts Cost of Sales $ (2,035 ) Cost of Sales $ — Interest rate contracts Interest expense (758 ) Interest expense — Foreign currency forward contracts Cost of Sales 49 Cost of Sales — Quarter ended March 31, 2015 Commodity forward contracts Cost of Sales $ (2,618 ) Cost of Sales $ — Interest rate contracts Interest expense (1,010 ) Interest expense — Foreign currency forward contracts Cost of Sales (9,136 ) 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") | 3 Months Ended |
Apr. 03, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (AOCI) | Accumulated Other Comprehensive Income (Loss) ("AOCI") The following table summarizes the components of AOCI, net of income taxes: April 3, 2016 December 31, 2015 Derivatives $ (3,263 ) $ (3,059 ) Pension and Other Postretirement Benefits (769,034 ) (784,294 ) Available-for-sale Securities 2,509 1,445 Total $ (769,788 ) $ (785,908 ) |
Net Receivables
Net Receivables | 3 Months Ended |
Apr. 03, 2016 | |
Receivables [Abstract] | |
Net Receivables | Net Receivables Net receivables, including amounts due under long-term contracts, consisted of the following: April 3, 2016 December 31, 2015 Billed receivables $ 260,117 $ 217,522 Unbilled receivables 1,713,163 1,567,940 Less allowance for doubtful accounts (947 ) (1,028 ) Net receivables $ 1,972,333 $ 1,784,434 Receivable balances are shown net of customer progress payments received of $567,774 as of April 3, 2016 and $584,325 as of December 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 April 3, 2016 and December 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 $318,600 and $311,600 , respectively. |
Net Inventories
Net Inventories | 3 Months Ended |
Apr. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Net Inventories | Net Inventories Net inventories consisted of the following: April 3, 2016 December 31, 2015 Raw materials $ 99,641 $ 86,865 Contracts in process 133,769 124,315 Finished goods 311 532 Net inventories $ 233,721 $ 211,712 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Apr. 03, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term Debt Long-term debt consisted of the following: April 3, 2016 December 31, 2015 Senior Credit Facility: Term Loan A due 2020 $ 780,000 $ 790,000 Revolving Credit Facility due 2020 125,000 — 5.25% Senior Notes due 2021 300,000 300,000 5.50% Senior Notes due 2023 400,000 400,000 Principal amount of long-term debt 1,605,000 1,490,000 Unamortized Debt Issuance Costs: Senior Credit Facility 5,932 6,302 5.25% Senior Notes due 2021 1,832 1,915 5.50% Senior Notes due 2023 5,755 5,947 Unamortized Debt Issuance Costs 13,519 14,164 Long-term Debt Less Unamortized Debt Issuance Costs 1,591,481 1,475,836 Less: Current portion of long-term debt 40,000 40,000 Long-term debt $ 1,551,481 $ 1,435,836 Senior Credit Facility In September 2015, the Company refinanced its Former Senior Credit Facility (as defined 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 2.07% at April 3, 2016 . 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 fee currently is 0.25% . As of April 3, 2016 , the Company had borrowings of $125,000 under the Revolving Credit Facility and had outstanding letters of credit of $130,316 , which reduced amounts available on the Revolving Credit Facility to $744,684 . There are unamortized debt issuance costs associated with the Former Senior Credit Facility of $3,361 that will be amortized to interest expense along with $3,306 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 At April 3, 2016, the Company had interest rate swap agreements in order to manage interest costs and the risk associated with variable interest rates - see Note 7. 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 2016 $ 30,000 Calendar 2017 40,000 Calendar 2018 40,000 Calendar 2019 40,000 Calendar 2020 755,000 Thereafter 700,000 Total $ 1,605,000 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 April 3, 2016 , the Company was in compliance with the financial covenants. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Apr. 03, 2016 | |
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 April 3, 2016 March 31, 2015 Service cost $ 4,530 $ 5,635 Interest cost 25,449 31,448 Expected return on plan assets (40,718 ) (40,371 ) Amortization of unrecognized net loss 30,798 28,721 Amortization of unrecognized prior service cost (5,151 ) (5,418 ) Net periodic benefit cost 14,908 20,015 Special termination benefit cost / curtailment 1,618 2,469 Net periodic benefit cost $ 16,526 $ 22,484 The components of net periodic benefit income are as follows: Other Postretirement Benefits Quarters Ended April 3, 2016 March 31, 2015 Service cost $ — $ — Interest cost 855 1,194 Expected return on plan assets (801 ) (888 ) Amortization of unrecognized net loss 397 402 Amortization of unrecognized prior service cost (1,290 ) (2,080 ) Net periodic benefit income $ (839 ) $ (1,372 ) During the quarter ended April 3, 2016, the Company recorded a settlement expense of $1,618 to recognize the impact of lump sum benefit payments made in the non-qualified supplemental executive retirement plan. Effective January 1, 2016, the Company changed the approach used to measure service and interest costs for pension and other postretirement benefits. Prior to January 1, 2016, the Company measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plan obligations. For 2016, the Company has elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. The Company believes the new approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. This change does not affect the measurement of our plan obligations. The Company has accounted for this change as a change in accounting estimate and, accordingly, has accounted for it on a prospective basis. This change resulted in approximately $6 million lower pension expense compared to the method used prior to January 1, 2016. Employer Contributions. During the three months ended April 3, 2016 , the Company contributed $3,334 directly to retirees under its nonqualified supplemental executive retirement plan. The Company also contributed $1,059 to its other postretirement benefit plans. During the remainder of 2016, the Company anticipates making pension contributions of approximately $37,600 in order to meet the minimum required contributions for 2016. The Company anticipates making additional contributions of approximately $2,048 directly to retirees under the nonqualified plan and $6,505 to its other postretirement benefit plans during the remainder of 2016 . |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 03, 2016 | |
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 rate for the tax expense in the quarter ended April 3, 2016 was 26.6% compared to an effective income tax rate of 15.3% for the tax benefit in the quarter ended March 31, 2015 , reflecting the impact of domestic manufacturing deductions and research and development tax credits in the quarter ended April 3, 2016 and the impact of certain non-deductible costs in the quarter ended March 31, 2015 . 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 $3,725 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 from $0 to $2,850 . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Apr. 03, 2016 | |
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 $4,640 and $11,734 was recognized during the quarters ended April 3, 2016 and March 31, 2015 , respectively. The total income tax benefit recognized in the income statement for share-based compensation was $1,804 and $4,538 during the quarters ended April 3, 2016 and March 31, 2015 , 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). At April 3, 2016 , the Company had authorized up to 3,750,000 common shares under the 2015 Stock Incentive Plan, of which 2,853,398 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. As of December 31, 2015, there were 55,677 shares reserved for the vesting of restricted stock units for the fiscal 2015-2017 performance period on March 31, 2017 . During the quarter ended April 3, 2016 , 40,707 shares reserved for the vesting of restricted stock units for the fiscal 2014-2016 performance period vested. As of April 3, 2016 , there were 55,677 shares reserved for the vesting of restricted stock units for the fiscal 2015-2017 performance period on March 31, 2017. As of April 3, 2016 , there were up to 82,042 shares reserved for performance awards for the fiscal 2015-2017 performance period 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. As of April 3, 2016 , there were up to 73,447 shares reserved for performance awards for the fiscal 2016-2018 performance period 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 return on investment of capital for the performance period beginning April 1, 2016 and ending December 31, 2018; 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, 2016 and ending December 31, 2018. As of April 3, 2016 , there were up to 73,447 shares and 82,042 shares reserved for TSR awards for key employees for the fiscal year 2016-2018 and 2015-2017 performance periods, respectively. 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 73,447 TSR awards granted during the quarter ended April 3, 2016 with a fair value of $87.85 per share. Restricted stock granted to non-employee directors and certain key employees totaled 153,815 shares during the quarter ended April 3, 2016 . 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 73,100 stock options granted during the quarter ended March 31, 2015 with a weighted average fair value of $39.81 per stock option. There were 72,328 stock options granted during the quarter ended April 3, 2016 with a weighted average fair value of $20.53 per stock option. |
Contingencies
Contingencies | 3 Months Ended |
Apr. 03, 2016 | |
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 April 3, 2016 , based on progress to date on certain contracts, there was approximately $26,747 included in unbilled receivables for contract claims compared to $25,042 as of December 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 0.4% and 0.7% as of April 3, 2016 and December 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: April 3, 2016 December 31, 2015 Liability Receivable Liability Receivable Amounts (payable) receivable $ (42,921 ) $ 18,675 $ (41,824 ) $ 18,236 Unamortized discount 920 (286 ) 1,718 (568 ) Present value amounts (payable) receivable $ (42,001 ) $ 18,389 $ (40,106 ) $ 17,668 Amounts expected to be paid or received in periods more than one year from the balance sheet date are classified as noncurrent. Of the $42,001 discounted liability as of April 3, 2016 , $5,323 was recorded within other current liabilities and $36,678 was recorded within other long-term liabilities. Of the $18,389 discounted receivable, the Company recorded $2,836 within other current assets and $15,553 within other noncurrent assets. As of April 3, 2016 , the estimated discounted range of reasonably possible costs of environmental remediation was $42,001 to $80,536 . 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 Transition Report on Form 10-K for the nine-month transition period ended December 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 | 3 Months Ended |
Apr. 03, 2016 | |
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 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 334,101 shares for $27,402 during the quarter ended April 3, 2016. 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 the quarter ended March 31, 2015. |
Changes in Estimates
Changes in Estimates | 3 Months Ended |
Apr. 03, 2016 | |
Changes in Estimates [Abstract] | |
Changes in Estimates | Changes in Estimates The majority of our 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 probable. Assumptions used for recording sales and earnings are modified 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. This method recognizes in the current period the cumulative effect of the changes on current or prior periods. 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 our 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 $20 million and $25 million for the quarters ended April 3, 2016 and March 31, 2015 , respectively. The changes in estimates for the quarter ended April 3, 2016 are primarily attributable to higher profit expectations in the Flight Systems Group and the Space Systems Group. The adjustments for the quarter ended March 31, 2015 were primarily due to profit margin improvements in the Flight Systems Group and Defense Systems Group. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Apr. 03, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs The Company had restructuring liabilities for termination benefits of $1,994 and $ 3,589 and facility related liabilities of $20,525 and $21,855 for the quarters ended April 3, 2016 and December 31, 2015, respectively. The change in restructuring liabilities for the quarter ending April 3, 2016, was primarily attributed to cash expenditures for termination benefits and facilities. |
Operating Segment Information
Operating Segment Information | 3 Months Ended |
Apr. 03, 2016 | |
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 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 cargo launch vehicles, strategic missiles, missile defense interceptors and target vehicles. Additionally, the Group operates in the military and commercial aircraft and launch structures markets. Other products include illuminating flares and aircraft countermeasures. • Defense Systems Group develops and produces small-, medium-, and large-caliber ammunition, precision weapons and munitions, high performance gun systems, and propellant and energetic materials. It operates the Lake City Army Ammunition Plant in Independence, MO ("LCAAP") and a Naval Sea Systems Command ("NAVSEA") facility in Rocket Center, WV. Defense Systems Group is also a leader in tactical solid rocket motor development and production for a variety of air-, sea- and land-based missile systems. The Group serves a variety of domestic and international customers in the defense and security markets in a prime contractor, partner or supplier role. Defense Systems Group also provides propulsion control systems that support Missile Defense Agency and NASA programs, airborne missile warning systems, advanced fuzes, and defense electronics. The Group produces the U.S. Navy's Advanced Anti-Radiation Guided Missile ("AARGM") and has developed advanced air-breathing propulsion systems and special-mission aircraft for defense applications. • 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 delivering cargo to 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 April 3, 2016 March 31, 2015 Sales to external customers: Flight Systems Group $ 352,226 $ 304,468 Defense Systems Group 432,221 479,219 Space Systems Group 280,507 185,852 Total external sales 1,064,954 969,539 Intercompany sales: Flight Systems Group 3,630 23,608 Defense Systems Group 4,291 15,414 Space Systems Group 6,087 4,808 Corporate (14,008 ) (43,830 ) Net intercompany sales — — Total sales $ 1,064,954 $ 969,539 Income from continuing operations, before interest, income taxes and noncontrolling interest: Flight Systems Group $ 49,965 $ 42,686 Defense Systems Group 35,696 44,924 Space Systems Group 30,701 (18,482 ) Corporate (459 ) (70,220 ) Total income from continuing operations, before interest, income taxes and noncontrolling interest $ 115,903 $ (1,092 ) April 3, 2016 December 31, 2015 Total assets: Flight Systems Group $ 2,306,498 $ 2,252,031 Defense Systems Group 1,425,686 1,346,463 Space Systems Group 1,322,421 1,247,546 Corporate 414,438 493,352 Total assets $ 5,469,043 $ 5,339,392 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 related to purchase accounting attributed to the acquisition of Orbital is also recorded in Corporate. |
Basis of Presentation and Res26
Basis of Presentation and Responsibility for Interim Financial Statements (Policies) | 3 Months Ended |
Apr. 03, 2016 | |
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. |
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. The fair value of these securities is measured on a recurring basis. The fair value of these securities was $10,751 and $12,065 as of April 3, 3016 and December 31, 2015, respectively. 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 Instr27
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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: April 3, 2016 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Derivatives $ — $ 1,685 $ — Liabilities: Derivatives — 6,943 — December 31, 2015 Fair Value Measurements Using Inputs Considered as Level 1 Level 2 Level 3 Assets: Derivatives $ — $ 3,979 $ — Liabilities: Derivatives — 8,353 — |
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: April 3, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Fixed-rate debt $ 700,000 $ 735,250 $ 700,000 $ 712,500 Variable-rate debt 905,000 899,606 790,000 787,697 |
Mergers, Acquisitions and Div28
Mergers, Acquisitions and Divestitures (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Business Combinations [Abstract] | |
Summary of preliminary fair value of assets acquired and liabilities assumed | 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 Value of assets acquired and liabilities assumed: Cash $ 253,734 Net receivables 558,639 Net inventories 75,294 Intangibles 173,000 Property, plant and equipment 277,438 Deferred tax assets, net 64,821 Other assets 36,878 Goodwill 826,548 Accounts payable (52,028 ) Contract fair value liabilities (130,888 ) Other liabilities (325,459 ) 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. |
Business Acquisition, Pro Forma Information | The following unaudited supplemental pro forma data for the quarter ended March 31, 2015 presents consolidated information as if the Merger had been completed on April 1, 2013. The pro forma results were calculated by combining the results from continuing operations of the Company with the stand-alone results of Orbital for the pre-Merger period, which were adjusted to eliminate historical sales between the companies and to account for certain costs which would have been incurred during this pre-Merger period: Quarter Ended March 31, 2015 Sales $ 1,086,680 Loss from continuing operations (30,981 ) Basic earnings per common share from continuing operations $ (0.52 ) Diluted earnings per common share from continuing operations (0.51 ) |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustments | The unaudited supplemental pro forma data above includes the following significant adjustments made to account for certain costs which would have been incurred if the Merger had been completed on April 1, 2013, as adjusted for the applicable income tax impact: Quarter Ended March 31, 2015 Amortization of acquired Orbital intangible assets (1) $ 3,877 Interest expense adjustment (2) (6,069 ) Transaction fees for advisory, legal and accounting services (3) (19,134 ) _________________________________________ (1) Added the amortization of acquired Orbital intangible assets recognized at fair value in purchase accounting and eliminated historical Orbital intangible asset amortization expense. (2) Reduced interest expense for the net reduction in debt of the Company and Orbital. (3) Excluded transaction fees for advisory, legal and accounting services incurred in the quarter ended March 31, 2015 . |
Goodwill and Net Intangibles (T
Goodwill and Net Intangibles (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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, December 31, 2015 $ 922,991 $ 366,947 $ 542,128 $ 1,832,066 Measurement period adjustments 5,467 — (1,822 ) 3,645 Balance, April 3, 2016 $ 928,458 $ 366,947 $ 540,306 $ 1,835,711 |
Schedule of amortizing assets | Net intangibles consisted of the following: April 3, 2016 December 31, 2015 Gross Accumulated Net Intangibles Gross Accumulated Net Intangibles Amortizing intangibles: Contract backlog $ 173,000 $ (47,239 ) $ 125,761 $ 179,000 $ (36,696 ) $ 142,304 Patented technology 11,018 (6,476 ) 4,542 11,018 (6,206 ) 4,812 Customer relationships and other 24,294 (24,294 ) — 24,294 (24,254 ) 40 Intangibles $ 208,312 $ (78,009 ) $ 130,303 $ 214,312 $ (67,156 ) $ 147,156 |
Schedule of expected future amortization expense | The Company expects amortization expense related to these assets to be as follows: Contract Backlog Patents Total Remainder of 2016 $ 31,629 $ 912 $ 32,541 2017 35,882 1,180 37,062 2018 25,609 1,120 26,729 2019 21,760 1,072 22,832 2020 10,881 258 11,139 Thereafter — — — Total $ 125,761 $ 4,542 $ 130,303 |
Earnings Per Share Data (Tables
Earnings Per Share Data (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares | In computing EPS for the quarters ended April 3, 2016 and March 31, 2015 , earnings reported for each respective period were divided by weighted-average shares outstanding, determined as follows (in thousands): Quarters Ended April 3, 2016 March 31, 2015 Basic 58,298 46,465 Dilutive effect of stock-based awards 583 463 Diluted 58,881 46,928 Anti-dilutive stock options excluded from the calculation of diluted shares 147 73 |
Derivative Financial Instrume31
Derivative Financial Instruments (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding commodity forward contracts | Commodity forward contracts outstanding that hedge forecasted commondity purchases were as follows: Number of Pounds Copper 16,575 Zinc 5,090 Interest rate swap agreements in order to manage interest costs and the risk associated with variable interest rates were as follows: Notional Fair Value Pay Fixed Receive Floating Maturity Date Non-amortizing swap $ 100,000 $ (173 ) 0.87 % 0.43 % August 2016 Non-amortizing swap 100,000 (921 ) 1.29 % 0.43 % August 2017 Non-amortizing swap 100,000 (2,236 ) 1.69 % 0.43 % August 2018 Non-amortizing swap 50,000 (37 ) 0.65 % 0.43 % November 2016 Non-amortizing swap 50,000 (921 ) 1.10 % 0.43 % November 2017 The amount to be paid or received under these swaps is recorded as an adjustment to interest expense. Outstanding foreign currency forward contracts were as follows: Quantity Hedged Euros Sold 61,420 Euros Purchased 8,466 |
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 April 3, 2016 December 31, 2015 April 3, 2016 December 31, 2015 Commodity forward contracts Other current assets / $ 445 $ — $ 2,083 $ 4,445 Commodity forward contracts Other noncurrent assets / 537 — — — Foreign currency forward contracts Other current assets / 637 2,875 572 1,442 Foreign currency forward contracts Other noncurrent assets / 66 1,095 — 18 Interest rate contracts Other current assets / other current liabilities — 9 — — Interest rate contracts Other noncurrent assets / — — 4,288 2,448 Total $ 1,685 $ 3,979 $ 6,943 $ 8,353 |
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 April 3, 2016 Commodity forward contracts Cost of Sales $ (2,035 ) Cost of Sales $ — Interest rate contracts Interest expense (758 ) Interest expense — Foreign currency forward contracts Cost of Sales 49 Cost of Sales — Quarter ended March 31, 2015 Commodity forward contracts Cost of Sales $ (2,618 ) Cost of Sales $ — Interest rate contracts Interest expense (1,010 ) Interest expense — Foreign currency forward contracts Cost of Sales (9,136 ) Cost of Sales — |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Equity [Abstract] | |
Schedule of components of accumulated OCI, net of income taxes | The following table summarizes the components of AOCI, net of income taxes: April 3, 2016 December 31, 2015 Derivatives $ (3,263 ) $ (3,059 ) Pension and Other Postretirement Benefits (769,034 ) (784,294 ) Available-for-sale Securities 2,509 1,445 Total $ (769,788 ) $ (785,908 ) |
Net Receivables (Tables)
Net Receivables (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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: April 3, 2016 December 31, 2015 Billed receivables $ 260,117 $ 217,522 Unbilled receivables 1,713,163 1,567,940 Less allowance for doubtful accounts (947 ) (1,028 ) Net receivables $ 1,972,333 $ 1,784,434 |
Net Inventories (Tables)
Net Inventories (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of net inventories | Net inventories consisted of the following: April 3, 2016 December 31, 2015 Raw materials $ 99,641 $ 86,865 Contracts in process 133,769 124,315 Finished goods 311 532 Net inventories $ 233,721 $ 211,712 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt, including the current portion | Long-term debt consisted of the following: April 3, 2016 December 31, 2015 Senior Credit Facility: Term Loan A due 2020 $ 780,000 $ 790,000 Revolving Credit Facility due 2020 125,000 — 5.25% Senior Notes due 2021 300,000 300,000 5.50% Senior Notes due 2023 400,000 400,000 Principal amount of long-term debt 1,605,000 1,490,000 Unamortized Debt Issuance Costs: Senior Credit Facility 5,932 6,302 5.25% Senior Notes due 2021 1,832 1,915 5.50% Senior Notes due 2023 5,755 5,947 Unamortized Debt Issuance Costs 13,519 14,164 Long-term Debt Less Unamortized Debt Issuance Costs 1,591,481 1,475,836 Less: Current portion of long-term debt 40,000 40,000 Long-term debt $ 1,551,481 $ 1,435,836 |
Schedule of minimum payments on outstanding long-term debt | The scheduled minimum loan payments on outstanding long-term debt are as follows: Remainder of 2016 $ 30,000 Calendar 2017 40,000 Calendar 2018 40,000 Calendar 2019 40,000 Calendar 2020 755,000 Thereafter 700,000 Total $ 1,605,000 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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 April 3, 2016 March 31, 2015 Service cost $ 4,530 $ 5,635 Interest cost 25,449 31,448 Expected return on plan assets (40,718 ) (40,371 ) Amortization of unrecognized net loss 30,798 28,721 Amortization of unrecognized prior service cost (5,151 ) (5,418 ) Net periodic benefit cost 14,908 20,015 Special termination benefit cost / curtailment 1,618 2,469 Net periodic benefit cost $ 16,526 $ 22,484 The components of net periodic benefit income are as follows: Other Postretirement Benefits Quarters Ended April 3, 2016 March 31, 2015 Service cost $ — $ — Interest cost 855 1,194 Expected return on plan assets (801 ) (888 ) Amortization of unrecognized net loss 397 402 Amortization of unrecognized prior service cost (1,290 ) (2,080 ) Net periodic benefit income $ (839 ) $ (1,372 ) |
Contingencies (Tables)
Contingencies (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
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: April 3, 2016 December 31, 2015 Liability Receivable Liability Receivable Amounts (payable) receivable $ (42,921 ) $ 18,675 $ (41,824 ) $ 18,236 Unamortized discount 920 (286 ) 1,718 (568 ) Present value amounts (payable) receivable $ (42,001 ) $ 18,389 $ (40,106 ) $ 17,668 |
Operating Segment Information (
Operating Segment Information (Tables) | 3 Months Ended |
Apr. 03, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following summarizes the Company's results by segment: Quarters Ended April 3, 2016 March 31, 2015 Sales to external customers: Flight Systems Group $ 352,226 $ 304,468 Defense Systems Group 432,221 479,219 Space Systems Group 280,507 185,852 Total external sales 1,064,954 969,539 Intercompany sales: Flight Systems Group 3,630 23,608 Defense Systems Group 4,291 15,414 Space Systems Group 6,087 4,808 Corporate (14,008 ) (43,830 ) Net intercompany sales — — Total sales $ 1,064,954 $ 969,539 Income from continuing operations, before interest, income taxes and noncontrolling interest: Flight Systems Group $ 49,965 $ 42,686 Defense Systems Group 35,696 44,924 Space Systems Group 30,701 (18,482 ) Corporate (459 ) (70,220 ) Total income from continuing operations, before interest, income taxes and noncontrolling interest $ 115,903 $ (1,092 ) April 3, 2016 December 31, 2015 Total assets: Flight Systems Group $ 2,306,498 $ 2,252,031 Defense Systems Group 1,425,686 1,346,463 Space Systems Group 1,322,421 1,247,546 Corporate 414,438 493,352 Total assets $ 5,469,043 $ 5,339,392 |
Basis of Presentation and Res39
Basis of Presentation and Responsibility for Interim Financial Statements (Details) | 3 Months Ended |
Apr. 03, 2016segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Fair Value of Financial Instr40
Fair Value of Financial Instruments (Fair value of assets and liabilities measured on a recurring basis) (Details) $ in Thousands | Apr. 03, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2014derivative |
Fair value of assets and liabilities measured on a recurring basis | |||
Number of interest rate derivatives held | derivative | 5 | ||
Fair value of assets and liabilities that are measured on a recurring basis | Level 2 | |||
Fair value of assets and liabilities measured on a recurring basis | |||
Marketable securities | $ 10,751 | $ 12,065 | |
Assets | |||
Derivatives | 1,685 | 3,979 | |
Liabilities | |||
Derivatives | $ 6,943 | $ 8,353 |
Fair Value of Financial Instr41
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 | Apr. 03, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Assets and liabilities that are not measured on a recurring basis | ||
Fixed-rate debt | $ 700,000 | $ 700,000 |
Variable-rate debt | 905,000 | 790,000 |
Fair Value | ||
Assets and liabilities that are not measured on a recurring basis | ||
Fixed-rate debt | 735,250 | 712,500 |
Variable-rate debt | $ 899,606 | $ 787,697 |
Mergers, Acquisitions and Div42
Mergers, Acquisitions and Divestitures - Narrative (Details) $ in Thousands, shares in Millions | Feb. 09, 2015USD ($)agreementshares | Feb. 02, 2015shares | Mar. 31, 2015USD ($) | Apr. 03, 2016USD ($)entity | Mar. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Sales from discontinued operations | $ 186,000 | ||||
Aggregate value of the consideration paid or payable to former holders of Orbital common stock | $ 1,800,000 | ||||
Number of companies | entity | 2 | ||||
Number of supply agreements | agreement | 2 | ||||
Number of transition services agreements | agreement | 1 | ||||
Administrative services agreement, term | 12 months | ||||
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 | ||||
Orbital Sciences | |||||
Business Acquisition [Line Items] | |||||
Sales | $ 191,000 | ||||
Pre-tax income | $ 16,000 | ||||
Common Stock | |||||
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 Sciences | |||||
Business Acquisition [Line Items] | |||||
Shares, conversion ratio | 0.449 | ||||
Stock issued during period related to merger | shares | 27.4 | ||||
Sporting Group | |||||
Business Acquisition [Line Items] | |||||
Revenue from Related Parties | 13,595 | ||||
Vista Outdoor | |||||
Business Acquisition [Line Items] | |||||
Revenue from Related Parties | $ 61,611 | $ 18,928 | |||
Orbital Stockholders | Orbital Sciences | |||||
Business Acquisition [Line Items] | |||||
Percent of common stock owned | 46.20% | ||||
Existing Stockholders | Orbital Sciences | |||||
Business Acquisition [Line Items] | |||||
Percent of common stock owned | 53.80% |
Mergers, Acquisitions and Div43
Mergers, Acquisitions and Divestitures - Valuation of Net Assets Acquired (Details) $ / shares in Units, $ in Thousands, shares in Millions | Feb. 09, 2015USD ($)$ / sharesshares | Apr. 03, 2016USD ($)entity | Dec. 31, 2015USD ($) |
Value of assets acquired and liabilities assumed: | |||
Goodwill | $ 1,835,711 | $ 1,832,066 | |
Number of companies | entity | 2 | ||
Orbital Sciences | |||
Value of assets acquired and liabilities assumed: | |||
Cash | $ 253,734 | ||
Net receivables | 558,639 | ||
Net inventories | 75,294 | ||
Intangibles | 173,000 | ||
Property, plant and equipment | 277,438 | ||
Deferred tax assets, net | 64,821 | ||
Other assets | 36,878 | ||
Goodwill | 826,548 | ||
Accounts payable | (52,028) | ||
Contract fair value liabilities | (130,888) | ||
Other liabilities | (325,459) | ||
Total purchase price | $ 1,757,977 | ||
Share Price | $ / shares | $ 63.94 | ||
Orbital Sciences | Common Stock | |||
Value of assets acquired and liabilities assumed: | |||
Total purchase price | $ 1,749,323 | ||
Orbital Sciences | Equity-based Awards | |||
Value of assets acquired and liabilities assumed: | |||
Total purchase price | $ 8,654 | ||
Common Stock | Orbital Sciences | |||
Value of assets acquired and liabilities assumed: | |||
Shares issued | shares | 27.4 |
Mergers, Acquisitions and Div44
Mergers, Acquisitions and Divestitures - Supplemental Pro Forma Data (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2016USD ($)entity | Mar. 31, 2015USD ($) | Mar. 31, 2015USD ($)$ / shares | |
Business Acquisition [Line Items] | |||
Number of companies | entity | 2 | ||
Sales | $ 1,086,680 | ||
Loss from continuing operations | $ (30,981) | ||
Basic earnings per common share from continuing operations (in dollars per share) | $ / shares | $ (0.52) | ||
Diluted earnings per common share from continuing operations (in dollars per share) | $ / shares | $ (0.51) | ||
Amortization of intangible assets | $ 10,850 | $ 6,942 | |
Acquisition-related Costs | |||
Business Acquisition [Line Items] | |||
Amortization of intangible assets | $ 3,877 | ||
Interest expense adjustment | (6,069) | ||
Transaction fees for advisory, legal and accounting services | $ (19,134) | $ (19,134) |
Goodwill and Net Intangibles (G
Goodwill and Net Intangibles (Goodwill and Deferred Charges) (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | $ 1,832,066 |
Measurement period adjustments | 3,645 |
Balance at the end of the period | 1,835,711 |
Flight Systems Group | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | 922,991 |
Measurement period adjustments | 5,467 |
Balance at the end of the period | 928,458 |
Defense Systems Group | |
Changes in the carrying amount of goodwill | |
Balance at the beginning of the period | 366,947 |
Measurement period adjustments | 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 | 542,128 |
Measurement period adjustments | (1,822) |
Balance at the end of the period | $ 540,306 |
Goodwill and Net Intangibles (I
Goodwill and Net Intangibles (Intangibles) (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Amortizing assets | ||
Gross Carrying Amount | $ 208,312 | $ 214,312 |
Accumulated Amortization | (78,009) | (67,156) |
Net Intangibles | 130,303 | 147,156 |
Expected future amortization expense | ||
Remainder of 2016 | 32,541 | |
Fiscal 2,017 | 37,062 | |
Fiscal 2,018 | 26,729 | |
Fiscal 2,019 | 22,832 | |
Fiscal 2,020 | 11,139 | |
Thereafter | 0 | |
Net Intangibles | 130,303 | 147,156 |
Contract backlog | ||
Amortizing assets | ||
Gross Carrying Amount | 173,000 | 179,000 |
Accumulated Amortization | (47,239) | (36,696) |
Net Intangibles | 125,761 | 142,304 |
Expected future amortization expense | ||
Remainder of 2016 | 31,629 | |
Fiscal 2,017 | 35,882 | |
Fiscal 2,018 | 25,609 | |
Fiscal 2,019 | 21,760 | |
Fiscal 2,020 | 10,881 | |
Thereafter | 0 | |
Net Intangibles | 125,761 | 142,304 |
Patented technology | ||
Amortizing assets | ||
Gross Carrying Amount | 11,018 | 11,018 |
Accumulated Amortization | (6,476) | (6,206) |
Net Intangibles | 4,542 | 4,812 |
Expected future amortization expense | ||
Net Intangibles | 4,542 | 4,812 |
Customer relationships and other | ||
Amortizing assets | ||
Gross Carrying Amount | 24,294 | 24,294 |
Accumulated Amortization | (24,294) | (24,254) |
Net Intangibles | 0 | 40 |
Expected future amortization expense | ||
Net Intangibles | 0 | $ 40 |
Patents | ||
Amortizing assets | ||
Net Intangibles | 4,542 | |
Expected future amortization expense | ||
Remainder of 2016 | 912 | |
Fiscal 2,017 | 1,180 | |
Fiscal 2,018 | 1,120 | |
Fiscal 2,019 | 1,072 | |
Fiscal 2,020 | 258 | |
Thereafter | 0 | |
Net Intangibles | $ 4,542 |
Goodwill and Net Intangibles 47
Goodwill and Net Intangibles (Intangibles Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortizing intangible assets weighted average remaining period for amortization (in years) | 3 years 9 months 24 days | |
Amortization expense | $ 10,850 | $ 6,942 |
Earnings Per Share Data (Detail
Earnings Per Share Data (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Basic (in shares) | 58,298 | 46,465 |
Dilutive effect of stock-based awards (in shares) | 583 | 463 |
Diluted (in shares) | 58,881 | 46,928 |
Anti-dilutive stock options excluded from the calculation of diluted shares | 147 | 73 |
Derivative Financial Instrume49
Derivative Financial Instruments (Details) € in Thousands, lb in Thousands | 3 Months Ended | ||||
Apr. 03, 2016USD ($)derivativelb | Mar. 31, 2015USD ($) | Apr. 03, 2016EUR (€)derivative | Dec. 31, 2015USD ($) | Mar. 31, 2014derivative | |
Derivative [Line Items] | |||||
Number of interest rate derivatives held | derivative | 5 | ||||
Designated as Hedging Instrument | |||||
Derivative Asset [Abstract] | |||||
Fair value of derivative assets | $ 1,685,000 | $ 3,979,000 | |||
Derivative Liability [Abstract] | |||||
Fair value of derivative liabilities | 6,943,000 | 8,353,000 | |||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional amount | $ 400,000,000 | ||||
Number of interest rate derivatives held | derivative | 5 | 5 | |||
Copper | |||||
Derivative [Line Items] | |||||
Notional amount, mass | lb | 16,575 | ||||
Zinc | |||||
Derivative [Line Items] | |||||
Notional amount, mass | lb | 5,090 | ||||
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) | $ (2,035,000) | $ (2,618,000) | |||
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 | |||
Commodity forward contracts | Designated as Hedging Instrument | Other Current Assets | |||||
Derivative Asset [Abstract] | |||||
Commodity forward contracts, fair value of assets | 445,000 | 0 | |||
Commodity forward contracts | Designated as Hedging Instrument | Other Current Liabilities | |||||
Derivative Liability [Abstract] | |||||
Commodity forward contracts, fair value of liabilities | 2,083,000 | 4,445,000 | |||
Commodity forward contracts | Designated as Hedging Instrument | Other Noncurrent Assets | |||||
Derivative Asset [Abstract] | |||||
Commodity forward contracts, fair value of assets | 537,000 | 0 | |||
Commodity forward contracts | Designated as Hedging Instrument | Other Noncurrent Liabilities | |||||
Derivative Liability [Abstract] | |||||
Commodity forward contracts, fair value of liabilities | 0 | 0 | |||
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) | 49,000 | (9,136,000) | |||
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 | |||
Foreign currency forward contracts | Designated as Hedging Instrument | Other Current Assets | |||||
Derivative Asset [Abstract] | |||||
Foreign currency forward contracts, fair value of assets | 637,000 | 2,875,000 | |||
Foreign currency forward contracts | Designated as Hedging Instrument | Other Current Liabilities | |||||
Derivative Liability [Abstract] | |||||
Foreign currency forward contracts, fair value of liabilities | 572,000 | 1,442,000 | |||
Foreign currency forward contracts | Designated as Hedging Instrument | Other Noncurrent Assets | |||||
Derivative Asset [Abstract] | |||||
Foreign currency forward contracts, fair value of assets | 66,000 | 1,095,000 | |||
Foreign currency forward contracts | Designated as Hedging Instrument | Other Noncurrent Liabilities | |||||
Derivative Liability [Abstract] | |||||
Foreign currency forward contracts, fair value of liabilities | 0 | 18,000 | |||
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) | (758,000) | (1,010,000) | |||
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 | |||
Interest rate contracts | Designated as Hedging Instrument | Other Current Assets | |||||
Derivative Asset [Abstract] | |||||
Interest rate contracts, fair value of assets | 0 | 9,000 | |||
Interest rate contracts | Designated as Hedging Instrument | Other Current Liabilities | |||||
Derivative Liability [Abstract] | |||||
Interest rate contracts, fair value of liabilities | 0 | 0 | |||
Interest rate contracts | Designated as Hedging Instrument | Other Noncurrent Assets | |||||
Derivative Asset [Abstract] | |||||
Interest rate contracts, fair value of assets | 0 | 0 | |||
Interest rate contracts | Designated as Hedging Instrument | Other Noncurrent Liabilities | |||||
Derivative Liability [Abstract] | |||||
Interest rate contracts, fair value of liabilities | $ 4,288,000 | $ 2,448,000 | |||
Euros Sold | Foreign currency forward contracts | |||||
Derivative [Line Items] | |||||
Notional amount | € | € 61,420 | ||||
Euros Purchased | Foreign currency forward contracts | |||||
Derivative [Line Items] | |||||
Notional amount | € | € 8,466 |
Derivative Financial Instrume50
Derivative Financial Instruments - Floating to fixed rate (Details) - Interest Rate Swap | Apr. 03, 2016USD ($) |
Derivative [Line Items] | |
Notional | $ 400,000,000 |
Notional amount to mature August 2016 | |
Derivative [Line Items] | |
Notional | 100,000,000 |
Fair Value | $ (173,000) |
Pay Fixed | 0.87% |
Receive Floating | 0.43% |
Notional amount to mature August 2017 | |
Derivative [Line Items] | |
Notional | $ 100,000,000 |
Fair Value | $ (921,000) |
Pay Fixed | 1.29% |
Receive Floating | 0.43% |
Notional amount to mature August 2018 | |
Derivative [Line Items] | |
Notional | $ 100,000,000 |
Fair Value | $ (2,236,000) |
Pay Fixed | 1.69% |
Receive Floating | 0.43% |
Notional amount to mature November 2016 | |
Derivative [Line Items] | |
Notional | $ 50,000,000 |
Fair Value | $ (37,000) |
Pay Fixed | 0.65% |
Receive Floating | 0.43% |
Notional amount to mature November 2017 | |
Derivative [Line Items] | |
Notional | $ 50,000,000 |
Fair Value | $ (921,000) |
Pay Fixed | 1.10% |
Receive Floating | 0.43% |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) | $ (769,788) | $ (785,908) |
Derivatives | ||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) | (3,263) | (3,059) |
Pension and Other Postretirement Benefits | ||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) | (769,034) | (784,294) |
Available-for-sale Securities | ||
Accumulated Other Comprehensive Income Loss Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss) | $ 2,509 | $ 1,445 |
Net Receivables (Details)
Net Receivables (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Billed receivables | $ 260,117 | $ 217,522 |
Unbilled receivables | 1,713,163 | 1,567,940 |
Less allowance for doubtful accounts | (947) | (1,028) |
Net receivables | 1,972,333 | 1,784,434 |
Customer progress payments received | 567,774 | 584,325 |
Unbilled receivables | ||
Long-term unbilled receivables, relating to commercial aerospace programs | $ 318,600 | $ 311,600 |
Net Inventories (Details)
Net Inventories (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 99,641 | $ 86,865 |
Contracts in process | 133,769 | 124,315 |
Finished goods | 311 | 532 |
Net inventories | $ 233,721 | $ 211,712 |
Long-term Debt - Summary Of Deb
Long-term Debt - Summary Of Debt (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Oct. 31, 2013 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,605,000 | |||
Unamortized Debt Issuance Costs | 13,519 | $ 14,164 | ||
Long-term Debt Less Unamortized Debt Issuance Costs | 1,591,481 | 1,475,836 | ||
Current portion of long-term debt | 40,000 | 40,000 | ||
Long-term debt | 1,551,481 | 1,435,836 | ||
Senior Notes | 5.25% Senior Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 300,000 | 300,000 | ||
Unamortized Debt Issuance Costs | $ 1,832 | 1,915 | ||
Interest rate | 5.25% | 5.25% | ||
Senior Notes | 5.50% Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 400,000 | 400,000 | ||
Unamortized Debt Issuance Costs | $ 5,755 | 5,947 | ||
Interest rate | 5.50% | 5.50% | ||
Senior Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,605,000 | 1,490,000 | ||
Unamortized Debt Issuance Costs | 5,932 | 6,302 | ||
Senior Credit Facility | Term Loan | Term Loan A due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 780,000 | 790,000 | ||
Senior Credit Facility | Line of Credit | Revolving Credit Facility due 2020 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 125,000 | $ 0 |
Long-term Debt - Senior Credit
Long-term Debt - Senior Credit Facility (Details) - USD ($) | 3 Months Ended | ||
Apr. 03, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,605,000,000 | ||
Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,605,000,000 | $ 1,490,000,000 | |
Senior Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | $ 130,316,000 | ||
Debt instrument, term (in years) | 5 years | ||
Senior Credit Facility | Line of Credit | Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Senior Credit Facility | Line of Credit | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Senior Credit Facility | Line of Credit | Term Loan A due 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 800,000,000 | ||
Periodic principal payments | $ 10,000,000 | ||
Weighted average interest rate | 2.07% | ||
Senior Credit Facility | Line of Credit | Revolving Credit Facility due 2020 | |||
Debt Instrument [Line Items] | |||
Revolving credit cacility, maximum borrowing capacity | $ 1,000,000,000 | ||
Annual commitment fee on the unused portion (as a percent) | 0.25% | ||
Long-term debt | $ 125,000,000 | $ 0 | |
Line of credit facility, remaining borrowing capacity | 744,684,000 | ||
Former Senior Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 3,361,000 | ||
Deferred finance costs | $ 3,306,000 |
Long-term Debt - Senior Notes (
Long-term Debt - Senior Notes (Details) - Senior Notes - USD ($) | 3 Months Ended | ||
Apr. 03, 2016 | Sep. 30, 2015 | Oct. 31, 2013 | |
5.50% Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 400,000,000 | ||
Interest rate | 5.50% | 5.50% | |
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% | ||
Debt issuance costs | $ 5,994,000 | ||
Debt instrument, term (in years) | 8 years | ||
5.25% Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 300,000,000 | ||
Interest rate | 5.25% | 5.25% | |
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 | ||
Debt instrument, term (in years) | 8 years |
Long-term Debt - Former Senior
Long-term Debt - Former Senior Credit Facility (Details) - Former Senior Credit Facility - Line of Credit | Sep. 30, 2015USD ($) |
Term A Loan due 2018 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1,160,000,000 |
Repayments of principal quarterly through maturity | 14,500,000 |
Term B Loan due 2020 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | 250,000,000 |
Repayments of principal quarterly through maturity | 499,000 |
Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 700,000,000 |
Long-term Debt - Minimum loan p
Long-term Debt - Minimum loan payments (Details 3) $ in Thousands | Apr. 03, 2016USD ($) |
Minimum payments on outstanding long-term debt | |
Remainder of 2016 | $ 30,000 |
Calendar 2,017 | 40,000 |
Calendar 2,018 | 40,000 |
Calendar 2,019 | 40,000 |
Calendar 2,020 | 755,000 |
Thereafter | 700,000 |
Total | $ 1,605,000 |
Long-term Debt - Covenants and
Long-term Debt - Covenants and Default Provisions (Details) | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Debt Instrument [Line Items] | |
Subsidiary guarantors percentage owned | 100.00% |
Senior Credit Facility | |
Debt Instrument [Line Items] | |
Restricted debt limit | $ 250,000,000 |
Restricted debt limit percent of net income | 50.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Pension Benefits | ||
Change in benefit obligation | ||
Service cost | $ 4,530 | $ 5,635 |
Interest cost | 25,449 | 31,448 |
Expected return on plan assets | (40,718) | (40,371) |
Amortization of unrecognized net loss | 30,798 | 28,721 |
Amortization of unrecognized prior service cost | (5,151) | (5,418) |
Net periodic benefit cost | 14,908 | 20,015 |
Special termination benefit cost / curtailment | 1,618 | 2,469 |
Net periodic benefit cost (income) | 16,526 | 22,484 |
Other Postretirement Benefits | ||
Change in benefit obligation | ||
Service cost | 0 | 0 |
Interest cost | 855 | 1,194 |
Expected return on plan assets | (801) | (888) |
Amortization of unrecognized net loss | 397 | 402 |
Amortization of unrecognized prior service cost | (1,290) | (2,080) |
Net periodic benefit cost (income) | $ (839) | $ (1,372) |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2016USD ($) | |
Supplemental (nonqualified) executive retirement plan | |
Contributions | |
Employer's contribution to retirees during the period | $ 3,334 |
Estimated future employer contributions in current fiscal year | 2,048 |
Other Postretirement Benefits | |
Contributions | |
Employer contributions directly to the pension trust for the period | 1,059 |
Estimated future employer contributions in current fiscal year | 6,505 |
Pension Benefits | |
Contributions | |
Estimated future employer contributions in current fiscal year | 37,600 |
Change in Accounting Method Accounted for as Change in Estimate | |
Defined Benefit Plans | |
Decrease in pension expense | $ 6,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 26.60% | 15.30% |
Potential reduction of uncertain tax benefits over the next 12 months from audit settlements | $ 3,725,000 | |
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 | $ 2,850,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Apr. 03, 2016USD ($)planaward$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2015shares | |
Stock-Based Compensation | |||
Number of authorized shares of preferred stock | 5,000,000 | ||
Par value of preferred stock (in dollars per share) | $ / shares | $ 1 | ||
Total pre-tax stock-based compensation expense | $ | $ 4,640 | $ 11,734 | |
Total income tax benefit recognized in the income statement for share-based compensation | $ | $ 1,804 | $ 4,538 | |
Number of stock-based incentive plans | plan | 6 | ||
Number of plans under which no new grants are being made | plan | 5 | ||
Number of types of awards outstanding under the entity's stock incentive plans | award | 5 | ||
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 | 72,328 | 73,100 | |
Weighted average fair value | $ / shares | $ 20.53 | $ 39.81 | |
Stock options | Minimum | |||
Stock-Based Compensation | |||
Vesting period | 1 year | ||
Stock options | Maximum | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Legacy ATK Plans | |||
Stock-Based Compensation | |||
Number of stock-based incentive plans | plan | 3 | ||
Legacy Orbital Plans | |||
Stock-Based Compensation | |||
Number of stock-based incentive plans | plan | 2 | ||
2005 Stock Incentive Plan | |||
Stock-Based Compensation | |||
Number of authorized common shares | 3,750,000 | ||
Number of available shares to be granted | 2,853,398 | ||
Fiscal 2015 through Fiscal 2017 period | Restricted stock | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 55,677 | 55,677 | |
Fiscal 2014 through fiscal 2016 period | Restricted stock | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 40,707 | ||
Executive Officers and Key Employees | TSR Awards | |||
Stock-Based Compensation | |||
Restricted stock granted to non-employee directors and certain key employees (in shares) | 73,447 | ||
Weighted average grant date fair value | $ / shares | $ 87.85 | ||
Executive Officers and Key Employees | Fiscal 2016 through Fiscal 2018 period | Performance Shares | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 73,447 | ||
Maximum percentage payable upon achieving performance goal related to earnings | 50.00% | ||
Maximum percentage payable upon achieving performance goal related to sales growth | 50.00% | ||
Executive Officers and Key Employees | Fiscal 2016 through Fiscal 2018 period | TSR Awards | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 73,447 | ||
Executive Officers and Key Employees | Fiscal 2015 through Fiscal 2017 period | Performance Shares | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 82,042 | ||
Maximum percentage payable upon achieving performance goal related to earnings | 50.00% | ||
Maximum percentage payable upon achieving performance goal related to sales growth | 50.00% | ||
Executive Officers and Key Employees | Fiscal 2015 through Fiscal 2017 period | TSR Awards | |||
Stock-Based Compensation | |||
Number of shares payable only upon the achievement of certain financial performance goals | 82,042 | ||
Non-employee Directors and Certain Key Employees | Restricted stock | |||
Stock-Based Compensation | |||
Restricted stock granted to non-employee directors and certain key employees (in shares) | 153,815 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 03, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Unbilled receivables for contract claims | $ 26,747 | $ 25,042 |
Discount rate | 0.40% | 0.70% |
Treasury constant maturities rate used to estimate discount rate (in years) | 20 years | |
Estimated inflationary factor (as a percent) | 1.90% | |
Environmental remediation | ||
Amounts (payable) | $ (42,921) | $ (41,824) |
Unamortized discount on liability | 920 | 1,718 |
Present value amounts (payable) | (42,001) | (40,106) |
Amounts receivable | 18,675 | 18,236 |
Unamortized discount on receivable | (286) | (568) |
Present value amounts receivable | 18,389 | $ 17,668 |
Discounted liability recorded in other current liabilities | 5,323 | |
Discounted liability recorded in other long-term liabilities | 36,678 | |
Discounted receivable recorded in other current assets | 2,836 | |
Discounted receivable recorded in other non-current assets | $ 15,553 | |
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 | $ 42,001 | |
Maximum | ||
Business Acquisition [Line Items] | ||
Estimated discounted reasonably possible costs of environmental remediation | $ 80,536 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) | 3 Months Ended | |||
Apr. 03, 2016 | Oct. 29, 2015 | Aug. 04, 2015 | Mar. 11, 2015 | |
Share Repurchases [Abstract] | ||||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 100,000,000 | $ 75,000,000 | |
Stock repurchase program, number of shares authorized to be repurchased | 3,250,000 | 1,400,000 | 1,000,000 | |
Stock repurchased during period, shares | 334,101 | |||
Stock repurchased during period, value | $ 27,402,000 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2016 | Mar. 31, 2015 | |
Changes in Estimates [Abstract] | ||
Operating income adjustments under percentage of completion method | $ 20 | $ 25 |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | Apr. 03, 2016 | Dec. 31, 2015 |
Termination Benefits | ||
Realignment liability activity | ||
Restructuring liabilities | $ 1,994 | $ 3,589 |
Remaining Lease Rentals | ||
Realignment liability activity | ||
Restructuring liabilities | $ 20,525 | $ 21,855 |
Operating Segment Information68
Operating Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Results by operating segment | |||
Net intercompany sales | $ 1,064,954 | $ 969,539 | |
Sales | 1,064,954 | 969,539 | |
Income from continuing operations, before interest, income taxes and noncontrolling interest | 115,903 | (1,092) | |
Total assets | 5,469,043 | $ 5,339,392 | |
Flight Systems Group | |||
Results by operating segment | |||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 49,965 | 42,686 | |
Total assets | 2,306,498 | 2,252,031 | |
Defense Systems Group | |||
Results by operating segment | |||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 35,696 | 44,924 | |
Total assets | 1,425,686 | 1,346,463 | |
Space Systems Group | |||
Results by operating segment | |||
Income from continuing operations, before interest, income taxes and noncontrolling interest | 30,701 | (18,482) | |
Total assets | 1,322,421 | 1,247,546 | |
Corporate | |||
Results by operating segment | |||
Income from continuing operations, before interest, income taxes and noncontrolling interest | (459) | (70,220) | |
Total assets | 414,438 | $ 493,352 | |
Sales to External Customers | Flight Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 352,226 | 304,468 | |
Sales to External Customers | Defense Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 432,221 | 479,219 | |
Sales to External Customers | Space Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 280,507 | 185,852 | |
Intercompany Sales | |||
Results by operating segment | |||
Net intercompany sales | 0 | 0 | |
Intercompany Sales | Flight Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 3,630 | 23,608 | |
Intercompany Sales | Defense Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 4,291 | 15,414 | |
Intercompany Sales | Space Systems Group | |||
Results by operating segment | |||
Net intercompany sales | 6,087 | 4,808 | |
Intercompany Sales | Corporate | |||
Results by operating segment | |||
Net intercompany sales | $ (14,008) | $ (43,830) |