SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 29, 1997 or / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 1-10582 ALLIANT TECHSYSTEMS INC. (Exact name of registrant as specified in its charter) DELAWARE 41-16726904 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 600 SECOND STREET N.E. HOPKINS, MINNESOTA 55343-8384 (Address of principal executive office) (Zip Code) (612) 931-6000 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name, former address and former fiscal year if changed from last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /X/ No / / As of July 31, 1997, the number of shares of the registrant's common stock, par value $.01 per share, outstanding was 12,994,785 (excluding 868,785 treasury shares). PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Income Statements (Unaudited) (In thousands except QUARTERS ENDED per share data) -------- -------- June 29 June 30 1997 1996 -------- -------- Sales $251,639 $230,173 Cost of sales 207,919 194,014 -------- -------- Gross margin 43,720 36,159 Operating expenses Research and development 2,038 2,800 Selling 10,249 7,178 General and administrative 10,144 9,789 -------- -------- Total operating expenses 22,431 19,767 -------- -------- Income from operations 21,289 16,392 Miscellaneous income 98 248 -------- -------- Earnings before interest and taxes 21,387 16,640 Interest expense (7,556) (9,280) Interest income 826 254 -------- -------- Income from continuing operations 14,657 7,614 Income from discontinued operations, net of income taxes 2,290 -------- -------- Net income $ 14,657 $ 9,904 ======== ======== Earnings per common and common equivalent share: Continuing operations $1.10 $ .57 Discontinued operations .17 -------- -------- Net income $1.10 $ .74 ======== ======== Average number of common and common equivalent shares (thousands) 13,299 13,350 ======== ======== See Notes to Financial Statements Balance Sheets (Unaudited) -------------- -------------- (In thousands except share data) June 29, 1997 March 31, 1997 -------------- -------------- Assets Current assets: Cash and cash equivalents $ 89,369 $ 122,491 Marketable securities 378 378 Receivables 191,160 191,675 Net inventory 77,417 68,125 Deferred income tax asset 37,244 37,244 Other current assets 7,598 5,329 -------- ---------- Total current assets 403,166 425,242 Net property, plant, and equipment 347,680 360,560 Goodwill 122,766 123,618 Deferred charges 10,531 10,925 Prepaid and intangible pension assets 81,746 80,569 Other assets 116 116 Net assets of discontinued operations 9,244 8,674 -------- ---------- Total assets $975,249 $1,009,704 ======== ========== Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt $ 29,749 $ 29,024 Notes payable 2,291 2,302 Accounts payable 52,370 85,451 Contract advances and allowances 86,308 64,500 Accrued compensation 26,581 28,392 Accrued income taxes 9,007 9,156 Restructuring liability 3,384 5,876 Other accrued liabilities 93,185 106,496 -------- ---------- Total current liabilities 302,875 331,197 Long-term debt 229,089 237,071 Post-retirement and post-employment benefits liability 141,757 143,373 Pension liability 34,359 37,079 Other long-term liabilities 38,034 42,192 -------- ---------- Total liabilities 746,114 790,912 Stockholders' Equity: Common stock - $.01 par value Authorized - 20,000,000 shares Issued and outstanding 12,980,307 shares at June 29, 1997 and 13,081,538 at March 31, 1997 130 131 Additional paid-in-capital 248,575 248,612 Retained earnings 19,019 4,361 Unearned compensation (1,138) (1,324) Pension liability adjustment (2,304) (2,304) Common stock in treasury, at cost (883,306 shares held at June 29, 1997 and 782,075 at March 31, 1997) (35,147) (30,684) -------- ---------- Total stockholders' equity 229,135 218,792 -------- ---------- Total liabilities and stockholders' equity $975,249 $1,009,704 ======== ========== See Notes to Financial Statements Statements of Cash Flows (Unaudited) (In thousands) QUARTERS ENDED ----------------- ----------------- June 29, 1997 June 30, 1996 ----------------- ----------------- Operating activities Net income $ 14,657 $ 9,904 Adjustments to net income to arrive at cash used for operations: Depreciation 10,317 10,992 Amortization of intangible assets and unearned compensation 1,544 1,954 Gain on disposal of property (21) (83) Changes in assets and liabilities: Receivables 515 (4,999) Inventory (9,292) 1,799 Accounts payable (33,081) (24,977) Contract advances and allowances 21,808 (3,967) Accrued compensation (1,811) (1,422) Accrued income taxes (149) (227) Accrued restructure liability (2,492) (6,455) Accrued environmental liability (273) (445) Other assets and liabilities (19,550) (6,732) Operating activities of discontinued operations (570) (5,019) -------- -------- Cash used for operations (18,398) (29,677) -------- -------- Investing activities Capital expenditures (3,004) (3,721) Proceeds from disposition of property, plant, and equipment 131 142 Investing activities of discontinued operations (582) -------- -------- Cash used for investing activities (2,873) (4,161) -------- -------- Financing activities Net borrowings on line of credit 20,000 Payments made on long-term debt (7,256) (11,250) Net purchase of treasury shares (5,015) (2,299) Proceeds from exercised stock options 431 1,573 Other financing activities, net (11) (422) -------- -------- Cash provided by (used for) financing activities (11,851) 7,602 -------- -------- Decrease in cash and cash equivalents (33,122) (26,236) Cash and cash equivalents - beginning of period 122,491 45,532 -------- -------- Cash and cash equivalents - end of period $ 89,369 $ 19,296 ======== ======== See Notes to Financial Statements Notes to Financial Statements (Unaudited) 1. In interim accounting periods, the Company absorbs operating expenses based upon sales volume using the anticipated relationship of such costs to sales for the year. Accordingly, the Company had $.4 million and $2.0 million of underabsorbed operating expenses recorded in other current assets at June 29, 1997 and June 30, 1996, respectively. Unabsorbed expenses at June 29, 1997, will be absorbed over the remainder of fiscal 1998. 2. During the three month period ended June 29, 1997, the Company made principal payments on its Bank Term Loan of $7.3 million. No borrowings were outstanding against its revolving line of credit at June 29, 1997. Letters of credit totaling $38.5 million reduced the available line of credit to $236.5 million. The remaining scheduled minimum loan payments on outstanding long-term debt are as follows: fiscal 1998, $21.8 million; fiscal 1999, $31.9 million; fiscal 2000, $31.9 million; fiscal 2001, $23.2 million; fiscal 2002 and thereafter, $150.0 million. 3. No income taxes were paid for the three months ended June 29, 1997, or June 30, 1996. The effective income tax rate of 0 percent on continuing operations in the current three month period reflects the utilization of $14.7 million of available federal and state loss carry forwards (gross) for tax purposes. 4. During fiscal 1996, the Company began a program to repurchase up to $50.0 million of its common stock. During the quarter ended June 29, 1997, the Company repurchased an additional 139,600 shares for approximately $6.0 million. As of June 29, 1997, the Company has substantially completed its stock repurchase program, having repurchased approximately 1.26 million shares of common stock over the life of the program, at an average price of $39.09 per share, for an aggregate cost of $49.4 million. 5. Contingencies: As a U.S. Government contractor, the Company is subject to defective pricing and cost accounting standards non-compliance claims by the government. Additionally, the Company has substantial government contracts and subcontracts, the prices of which are subject to adjustment. The Company believes that resolution of such claims and price adjustments made or to be made by the government for open fiscal years (1987 through 1997) will not materially exceed the amount provided in the accompanying balance sheets. The Company is subject to various local and national laws relating to protection of the environment and is in various stages of investigation or remediation of potential, alleged, or acknowledged contamination. The Company records environmental remediation and the related ongoing monitoring and maintenance liabilities when the event obligating the Company has occurred and the cost is both probable and reasonably estimable. At June 29, 1997, the accrued liability for environmental remediation of $34.5 million represents management's best estimate of the probable and reasonably estimable costs related to the Company's known remediation obligations. It is expected that a significant portion of the Company's environmental costs will be reimbursed to the Company. As collection of those reimbursements is estimated to be probable, the Company has recorded amounts receivable of approximately $10.6 million at June 29, 1997. Such receivable primarily represents the expected reimbursement of costs associated with the operations acquired from Hercules Incorporated in March, 1995 (Aerospace acquisition). As part of the Aerospace acquisition, the Company generally assumed responsibility for environmental compliance at the acquired facilities. It is expected that much of the compliance and remediation costs associated with these facilities will be reimbursable under U.S. Government contracts, and that those environmental remediation costs not covered through such contracts will be covered by Hercules under various agreements. The Company's accrual for environmental remediation liabilities and the associated receivable for reimbursement have been discounted, and are recorded net of $10 million and $3 million, respectively, to reflect the present value of the expected future cash flows, using a discount rate, net of estimated inflation, of 5 percent. At June 29, 1997, the estimated discounted range of reasonably possible costs of study and remediation is between $34 million and $70 million. The Company does not anticipate that resolution of the environmental contingencies in excess of amounts accrued, net of recoveries, will materially affect future operating results. In future periods, new laws, rules and regulations, advances in technologies, outcomes of negotiations/litigations with regulatory authorities and other parties, additional information about the ultimate remedy selected at new and existing sites, changes in the extent and type of site utilization, the number of parties found liable at each site, and their ability to pay could significantly change the Company's estimates. The Company is a defendant in numerous lawsuits that arise out of, and are incidental to, the conduct of its business. Such matters arise out of the normal course of business and relate to product liability, government regulations, including environmental issues, and other issues. Certain of the lawsuits and claims seek damages in very large amounts. In these legal proceedings, no director, officer, or affiliate is a party or a named defendant. The Company is involved in three "qui tam" lawsuits brought by former employees of the operations acquired from Hercules in March, 1995. One involves allegations relating to submission of false claims and records, delivery of defective products, and a deficient quality control program. The second involves allegations of mischarging of work performed under government contracts, misuse of government equipment, other acts of financial mismanagement and wrongful termination claims. The government did not join in either of these lawsuits. Under the terms of the agreements relating to the Aerospace acquisition, all litigation and legal disputes arising in the ordinary course of the acquired operations will be assumed by the Company except for a few specific lawsuits and disputes including the two qui tam lawsuits referred to above. The Company has agreed to indemnify and reimburse Hercules for a portion of litigation costs incurred, and a portion of damages, if any, awarded in these lawsuits. Under terms of the purchase agreement with Hercules, the Company's maximum settlement liability is approximately $4 million, for which the Company has fully reserved at June 29, 1997. In the third qui tam lawsuit, the Company received a partially unsealed complaint in March 1997 alleging labor mischarging on a government contract. Damages are not specified. The government is currently investigating the claim and has not determined whether it will join the lawsuit. In late fiscal 1997, the Company was also served with two complaints in civil actions alleging violations of the False Claims Act and the Truth in Negotiations Act. The complaints allege defective pricing on two separate government contracts. Damages in either case were not specified. While the results of litigation cannot be predicted with certainty, management believes, based upon the advice of counsel, that the actions seeking to recover damages against the Company either are without merit, are covered by insurance and reserves, do not support any grounds for cancellation of any contract, or are not likely to materially affect the financial condition or results of operations of the Company, although the resolution of any of such matters during a specific period could have a material effect on the quarterly or annual operating results for that period. It is reasonably possible that management's current estimates of liabilities for the above contingencies could change in the near term, as more definitive information becomes available. 6. Interest paid during the three month periods ended June 29, 1997, and June 30, 1996, totaled $3.1 and $5.8 million, respectively. The Company has entered into interest rate swap and cap agreements as hedging transactions to protect against increases in market interest rates on its long term debt. At June 29, 1997, the notional amount of amortizing interest rate swap agreements was $65.0 million. Under the swap agreements, the Company currently pays an average fixed rate of 6.7 percent and receives interest at a rate equal to three-month LIBOR (5.7 percent at June 29, 1997). These agreements have remaining terms of 12-18 months, with certain cancellation options. The interest rate cap agreements limit the Company's LIBOR exposure to 7.0 percent and have a remaining term of 3 months. The notional amount of these amortizing interest rate cap agreements was $15.0 million at June 29, 1997. 7. Effective April 1, 1996, the Company adopted SFAS No. 123, "Accounting for Stock-Based Compensation." As permitted by SFAS No. 123, the Company has elected to continue following the guidance of Accounting Principles Board No. 25, "Accounting for Stock Issued to Employees" for measurement and recognition of stock-based transactions with employees, and therefore the adoption of SFAS No. 123 did not have a significant impact on the Company's financial position or results of operations. 8. Earnings per common share are computed based upon the weighted average number of common shares and common equivalent shares, consisting of the dilutive effect of stock options outstanding during each year. Earnings per common share assuming full dilution are substantially the same. In February 1997, the Financial Accounting Standards board issued SFAS No. 128, "Earnings Per Share", which will require companies to present basic earnings per share (EPS) and diluted earnings per share, instead of the primary and fully diluted EPS that is currently required. The new standard requires additional informational disclosures and also makes certain modifications to the currently applicable EPS calculations defined in Accounting Principles Board No. 15. The new standard is required to be adopted by all public companies for reporting periods ending after December 15, 1997 (the Company's third quarter of fiscal 1998), and will require restatement of EPS for all prior periods reported. Under the requirements of SFAS No. 128, the Company's EPS would be as follows: Quarters Ended ------------------------------- June 29, 1997 June 30, 1996 - ---------------------------------------------------------------- Basic earnings per share: Continuing operations 1.13 .58 Discontinued operations -- .18 - ---------------------------------------------------------------- Total Basic Earnings Per Share $1.13 $.76 ================================================================ Diluted earnings per share: Continuing operations 1.10 .57 Discontinued operations -- .17 - ---------------------------------------------------------------- Total Diluted Earnings Per Share $1.10 $.74 ================================================================ 9. Certain reclassifications have been made to the fiscal 1997 financial statements, as previously reported, to conform to the current classification. These reclassifications did not affect the net income from operations, as previously reported. 10. The figures set forth in this quarterly report are unaudited but, in the opinion of the Company, include all adjustments necessary for a fair presentation of the results of operations for the three month periods ended June 29, 1997, and June 30, 1996. The Company's accounting policies are described in the notes to financial statements in its fiscal 1997 Annual Report on Form 10-K. 11. On October 10, 1996, the American Institute of Certified Public Accountants (AICPA) issued Statement of Position 96-1 (SOP 96-1) entitled "Environmental Remediation Liabilities." The SOP provides authoritative guidance on specific accounting issues relative to recognition, measurement, display, and disclosure of environmental remediation liabilities. The Company adopted SOP 96-1 in the fourth quarter of fiscal 1997. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - --------------------- Sales Sales from continuing operations for the quarter ended June 29, 1997, totaled $251.6 million, an increase of $21.4 million, or 9.3 percent, from $230.2 million for the comparable quarter in the prior year. Conventional Munitions Group sales were $116.7 million for the quarter ended June 29, 1997, an increase of $25.6 million, or 28.1 percent, compared to $91.1 million in the comparable quarter of the prior year. The sales increase was primarily driven by an increase in tank ammunition sales of approximately $32 million during the quarter ended June 29, 1997, compared to the comparable quarter of the prior year. The increase was largely the result of higher revenues due to increased production of tank ammunition training rounds, up $19 million, compared to the comparable quarter of the prior year. The remainder of the increase in tank ammunition sales is attributable to resolution of the technical issues on the M830A1 tactical tank round, which had delayed production and shipments through early fiscal 1997. Space and Strategic Systems Group sales were $78.1 million for the quarter ended June 29, 1997, a decrease of $.2 million, compared to $78.3 million in the comparable quarter of the prior year. Increased sales from the composite structures business, up approximately $10 million compared to the comparable quarter of the prior year, completely offset the absence in fiscal 1998 of revenue recognized in fiscal 1997 on the Evolved Expendable Launch Vehicle (EELV) program, which the Company completed in fiscal 1997. Defense Systems Group sales were $50.6 million for the quarter ended June 29, 1997, a decrease of $7.0 million, or 12.2 percent, compared to $57.6 million in the comparable quarter of the prior year. The decrease is largely attributable to decreased revenues on antitank mines and artillery fire control systems, down approximately $14 million, which was partially offset by increased revenues attributable to the Outrider program, awarded to the Company in the first quarter of fiscal 1997. Emerging Business Group sales were $8.7 million for the quarter ended June 29, 1997, an increase of $1.1 million, or 14.5 percent over revenues of $7.6 million in the comparable quarter of the prior year. Company sales for fiscal 1998 are expected to be approximately $1 billion. Gross Margin The Company's gross margin in the quarter ended June 29, 1997 was $43.7 million or 17.4 percent of sales, compared to $36.2 million, or 15.7 percent of sales for the comparable quarter of the prior year. The increase in gross margin was due to a combination of factors, including improved cost performance on the Titan rocket motor booster program and other Space and Strategic programs. Fiscal 1998 gross margin, as a percent of sales, is expected to be in the 17.5 to 18.5 percent range. Operating Expenses The Company's operating expenses for the quarter ended June 29, 1997, totaled $22.4 million, or 8.9 percent of sales, compared to $19.8 million, or 8.6 percent of sales for the comparable quarter in the prior year. Operating expenses, stated as a percent of sales, were slightly higher in the quarter ended June 29, 1997, as compared to the comparable quarter of the prior year. The increase in the current quarter expenses is due primarily to the Company's investment of approximately $3.5 million in pursuit of the U.S. government's Intercontinental Ballistic Missile (ICBM) Prime Integration Program. Fiscal 1998 operating expenses, as a percent of sales, are expected to be approximately 9.5 percent. Interest Expense The Company's interest expense for the quarter ended June 29, 1997 was $7.6 million, a decrease of $1.7 million compared to $9.3 million for the comparable quarter in the prior year. The large decrease was driven by significantly reduced borrowings outstanding in the current quarter, as compared to the comparable quarter of the prior year. Total borrowings outstanding (including notes payable, and the current and long-term portions of the long-term debt) at June 29, 1997, were $145.0 million less than total borrowings outstanding at June 30, 1996, due to scheduled debt repayments, as well as the $88.6 million pre-payment of debt in late fiscal 1997, as a result of the sale of the Company's former Marine Systems Group. Interest Income Interest income for the quarter ended June 29, 1997 was $.8 million, compared to $.3 million for the comparable quarter of the prior year, an increase of $.5 million. The increase is driven by interest income earned on increased average cash balances in the current quarter. Income Taxes The quarters ended June 29, 1997, and June 30, 1996, respectively, reflect an effective income tax rate of 0 percent. This tax rate differs from statutory tax rates due to the utilization of available tax loss carryforwards. Such carry forwards are expected to reduce future tax expense. It is currently expected that payments for taxes in fiscal 1998 will also be reduced due to the aforementioned tax loss carryforwards. However, the Company may be subject to the provisions of the Alternative Minimum Tax (AMT), in which case tax payments could be required. Net Income Net income reported for the quarter ended June 29, 1997, was $14.7 million ($1.10 per share), an increase of $4.8 million, or 48.0 percent, when compared with net income of $9.9 million ($.74 per share) for the comparable quarter of the prior year. The increase was primarily due to a combination of increased sales volume, improved gross margins, and reduced interest costs in the current quarter ended June 29, 1997, as compared to the comparable quarter of the prior year. LIQUIDITY, CAPITAL RESOURCES, AND FINANCIAL CONDITION - ----------------------------------------------------- Cash used by operations totaled $18.4 million for the quarter ended June 29, 1997, a reduction in cash usage of $11.3 million, when compared with cash used by operations of $29.7 million in the comparable quarter of the prior year. The reduced level of cash usage in the quarter ended June 29, 1997 resulted from a combination of factors, the most significant of which included improved working capital management and improved profitability for the quarter ended June 27, 1997, as compared to the comparable quarter of the prior year. Cash used in investing activities for the quarter ended June 29, 1997, was $2.9 million, a $1.3 million decrease in cash used, compared to cash used by investing activities of $4.2 million in the comparable quarter of the prior year. This difference primarily represented reduced capital expenditures in the current year. Net outlays for capital expenditures for the quarter ended June 29, 1997, totaled $3.0 million, or 1.2 percent of sales, a decrease as a percentage of sales, compared to capital expenditures of $3.7 million, or 1.6 percent of sales, in the comparable quarter of the prior year. The Company expects capital expenditures, as a percentage of sales, to be approximately 2.0 percent of sales for fiscal 1998. At June 29, 1997, the Company had no borrowings outstanding against its bank revolving credit facility. Outstanding letters of credit of $38.5 million reduced amounts available on this facility to $236.5 million at June 29, 1997. During fiscal 1996, the Company began a program to repurchase up to $50.0 million of its common stock. During the quarter ended June 29, 1997, the Company repurchased an additional 139,600 shares for approximately $6.0 million. As of June 29, 1997, the Company has substantially completed its stock repurchase program, having repurchased approximately 1.26 million shares of common stock over the life of the program, at an average price of $39.09 per share, for an aggregate cost of $49.4 million. The Company's total debt (notes payable, current portion of long-term debt, and long-term debt) as a percentage of total capitalization decreased to 53 percent on June 29, 1997, compared to 55 percent on March 31, 1997. This decrease reflects principal repayments of $7.3 million on the bank term debt during the quarter ended June 29, 1997, as well as increased equity, due primarily to fiscal 1998 net earnings to date. In June 1995, the Company and claimants reached an agreement to settle the Accudyne "qui tam" lawsuit. Terms of the agreement include payments by the Company of $12.0 million, consisting of payments of $.5 million, $3.0 million and $4.0 million, made in June 1995, April 1996, and April 1997, respectively, and payment to be made of $4.5 million, plus interest at the three year Treasury Bill rate, in June 1998. In addition, legal costs of approximately $3.0 million have been paid. Accordingly, the Company recorded an unusual charge of $15.0 million as of the fourth quarter of the fiscal year ended March 31, 1995. Based on the financial condition of the Company at June 29, 1997, the Company believes that future operating cash flows, combined with existing cash balances, and the availability of funding under its line of credit, will be adequate to fund the future growth of the Company, as well as to service its long-term debt obligations. INFLATION - --------- In the opinion of management, inflation has not had a significant impact upon the results of the Company's operations. The selling prices under contracts, the majority of which are long term, generally include estimated costs to be incurred in future periods. These cost projections can generally be negotiated into new buys under fixed-price government contracts, while actual cost increases are recoverable on cost-type contracts. RISK FACTORS - ------------ Except for the historical information contained herein, certain of the matters discussed in this report are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, which involves risks and uncertainties, including, but not limited to, changes in governmental spending and budgetary policies, governmental laws and other rules and regulations surrounding various matters such as environmental remediation, contract pricing, changing economic and political conditions in the United States and in other countries, international trading restrictions, outcome of union negotiations, customer product acceptance, continued access to technical and capital resources, and merger and acquisition activity within the industry. All forecasts and projections in this report are "forward-looking statements" and are based on management's current expectations of the Company's near term results, based on current information available pertaining to the Company, including the aforementioned risk factors. Actual results could differ materially. PART II -- OTHER INFORMATION ITEM 2. LEGAL PROCEEDINGS In connection with the GAU-8/A contract for target practice rounds, the registrant has been served with three grand jury subpoenas, dated February 4, 1991, July 19, 1994 and October 27, 1994, for documents. All subpoenas were issued by the U.S. District Court, Northern District of Illinois, Eastern Division. The registrant supplied all documents requested. The registrant has been informed by the Department of Justice that both criminal and civil investigations have been completed without further action to be taken. Incorporated herein by reference is note 5 of Notes to Financial Statements included in Item 1 of Part I of this report. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. Exhibit No. Description ----------- ----------- 10.1 Amendment No. 1 to Stockholder's Agreement, dated March 15, 1995, between Alliant Techsystems Inc. and Hercules Incorporated 10.2 Agreement and Confirmation Effective as of June 19, 1997 10.3 Non-Qualified Stock Option Agreement 11 Computation of Earnings Per Common and Common Equivalent Share 27 Financial Data Schedule (b) Reports on Form 8-K. During the quarterly period ended June 29, 1997, the registrant filed no reports on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALLIANT TECHSYSTEMS INC. Date: August 7, 1997 By: /s/ Charles H. Gauck Name: Charles H. Gauck Title: Secretary (On behalf of the registrant) Date: August 7, 1997 By: /s/ Scott S. Meyers Name: Scott S. Meyers Title: Vice President and Chief Financial Officer (Principal Financial Officer) ALLIANT TECHSYSTEMS INC. FORM 10-Q EXHIBIT INDEX Exhibit No. Description Method of Filing - ----------- ----------- ---------------- 10.1 Amendment No. 1 to Stockholder's Agreement, dated March 15, 1995, between Alliant Techsystems Inc. and Hercules Incorporated............................... Filed herewith electronically 10.2 Agreement and Confirmation Effective as of June 19, 1997........................ Filed herewith electronically 10.3 Non-Qualified Stock Option Agreement....... Filed herewith electronically 11 Computation of Earnings Per Common and Common Equivalent Share.................... Filed herewith electronically 27 Financial Data Schedule.................... Filed herewith electronically