Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 28, 2018 | Jul. 25, 2018 | |
Class Of Stock [Line Items] | ||
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. | |
Entity Central Index Key | 1,364,885 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 28, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Amendment Flag | false | |
Trading Symbol | SPR | |
Class A [Member] | ||
Class Of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 106,499,459 | |
Class B [Member] | ||
Class Of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Revenues [Abstract] | ||||
Revenue | $ 1,836.9 | $ 1,826.1 | $ 3,573 | $ 3,520.2 |
Operating costs and expenses | ||||
Cost of sales | 1,547.2 | 1,855.2 | 3,058.2 | 3,276.2 |
Selling, general and administrative | 61 | 47.2 | 117.2 | 100.1 |
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 9.1 | 0 | 19.9 |
Research and development | 11.1 | 6.7 | 20.5 | 11.7 |
Total operating costs and expenses | 1,619.3 | 1,918.2 | 3,195.9 | 3,407.9 |
Operating income (loss) | 217.6 | (92.1) | 377.1 | 112.3 |
Interest expense and financing fee amortization | (24.8) | (10.2) | (36.1) | (19.7) |
Other (expense) income, net | 12.3 | (10.5) | 8.2 | (21.2) |
Income (loss) before income taxes and equity in net income of affiliate | 180.5 | (91.8) | 332.8 | 113.8 |
Income tax provision | (35.3) | 35 | (62.8) | (29) |
Income (loss) before equity in net income of affiliate | 145.2 | (56.8) | 270 | 84.8 |
Equity in net income of affiliate | 0 | 0 | 0.6 | 0.1 |
Net income (loss) | $ 145.2 | $ (56.8) | $ 270.6 | $ 84.9 |
Earnings (loss) per share | ||||
Earnings Per Share, Basic | $ 1.32 | $ (0.48) | $ 2.43 | $ 0.71 |
Diluted (in dollars per share) | 1.31 | (0.48) | 2.40 | 0.71 |
Common Stock, Dividends, Per Share, Declared | $ 0.12 | $ 0.10 | $ 0.22 | $ 0.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 145.2 | $ (56.8) | $ 270.6 | $ 84.9 |
Changes in other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (27) | 14.7 | (13.4) | 18.1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (0.6) | (0.5) | (1.2) | (0.9) |
Unrealized foreign exchange loss on intercompany loan, net of tax effect of $0.7 and ($0.4) for three months ended, respectively, and $0.3 and ($0.6) for the six months ended, respectively | (2.9) | 1.6 | (1.3) | 2.6 |
Total other comprehensive (loss) income | (30.5) | 15.8 | (15.9) | 19.8 |
Total comprehensive income (loss) | $ 114.7 | $ (41) | $ 254.7 | $ 104.7 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ 0.2 | $ 0.8 | $ 0.4 | $ 1 |
Unrealized exchange (loss) on intercompany loan, tax | $ 0.7 | $ (0.4) | $ 0.3 | $ (0.6) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 593 | $ 423.3 |
Restricted Cash and Cash Equivalents | 97.8 | 2.2 |
Accounts receivable, net | 682.9 | 722.2 |
Unbilled Receivables, Current | 498.1 | 0 |
Inventory, net | 900.8 | 1,449.9 |
Other current assets | 53.4 | 53.5 |
Total current assets | 2,826 | 2,651.1 |
Property, plant and equipment, net | 2,102.6 | 2,105.3 |
Unbilled Receivable, Non Current | 55.1 | 0 |
Pension assets | 363.7 | 347.1 |
Other assets | 264.4 | 164.3 |
Total assets | 5,611.8 | 5,267.8 |
Liabilities | ||
Accounts payable | 837.5 | 693.1 |
Accrued expenses | 367.9 | 269.3 |
Profit sharing | 28.5 | 109.5 |
Current portion of long-term debt | 128.1 | 31.1 |
Advance payments, short-term | 106.7 | 100 |
Billings in Excess of Cost, Current | 114.6 | 0 |
Provision for Loss on Contracts | 157.1 | 0 |
Deferred revenue and other deferred credits, short-term | 7 | 64.6 |
Deferred grant income liability - current | 22.7 | 21.6 |
Other current liabilities | 84 | 331.8 |
Total current liabilities | 1,854.1 | 1,621 |
Liabilities Noncurrent | ||
Long-term debt | 1,858.4 | 1,119.9 |
Advance payments, long-term | 175.8 | 231.7 |
Pension/OPEB obligation | 39.2 | 40.8 |
Billings in Excess of Cost, Noncurrent | 362.2 | 0 |
Provision for Loss on Contacts, Non Current | 94.3 | 0 |
Deferred grant income liability - non-current | 27.5 | 39.3 |
Deferred revenue and other deferred credits | 28.5 | 161 |
Other liabilities | 217.1 | 252.6 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued | 0 | 0 |
Additional Paid in Capital [Abstract] | ||
Additional paid-in capital | 977.3 | 1,086.9 |
AccumulatedOtherComprehensiveIncomeLossNetOfTaxAbstract | ||
Accumulated other comprehensive loss | (144.4) | (128.5) |
Retained Earnings Accumulated Deficit [Abstract] | ||
Retained earnings | 2,392.5 | 2,422.4 |
Treasury Stock, Value | (2,272.3) | (1,580.9) |
Total stockholders’ equity | 954.2 | 1,801 |
Noncontrolling interest | 0.5 | 0.5 |
Total equity | 954.7 | 1,801.5 |
Total liabilities and equity | 5,611.8 | 5,267.8 |
Class A [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock | $ 1.1 | $ 1.1 |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 28, 2018 | Dec. 31, 2017 |
Shareholders' equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury Stock, Shares | 39,624,996 | 31,467,709 |
Class A [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 106,498,050 | 114,447,605 |
Class B [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Operating activities | ||
Net income (loss) | $ 270.6 | $ 84.9 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation expense | 113.5 | 105.5 |
Amortization expense | 0.3 | 0 |
Amortization of deferred financing fees | 11.2 | 1.7 |
Accretion of customer supply agreement | 2.2 | 5.1 |
Employee stock compensation expense | 13.6 | 11 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 19.2 | 1.5 |
Gain from foreign currency transactions | (2.2) | (3.4) |
Gain (Loss) on Disposition of Property Plant Equipment | 4.5 | 6.5 |
Deferred taxes | (16.9) | 3 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (16.9) | (21.7) |
Grant liability amortization | (10.2) | (8.8) |
Equity in net income of affiliate | (0.6) | (0.1) |
Increase (Decrease) in Forward Provision | (102.5) | 0 |
Changes in assets and liabilities | ||
Accounts receivable | (117) | (156.5) |
Inventory, net | 58.4 | 438.9 |
Increase (Decrease) in Unbilled Receivables | (36.5) | 0 |
Accounts payable and accrued liabilities | 247.6 | 179.7 |
Profit sharing/deferred compensation | (80.9) | (60.2) |
Advance payments | (49.9) | (106.6) |
Income taxes receivable/payable | (42.9) | (60.6) |
Increase (Decrease) in Billing in Excess of Cost of Earnings | 157.5 | 0 |
Deferred revenue and other deferred credits | 0 | (271.5) |
Other | (24.9) | 185.6 |
Net cash provided by operating activities | 397.2 | 334 |
Investing activities | ||
Purchase of property, plant and equipment | (109.4) | (88.1) |
Payments for (Proceeds from) Other Investing Activities | 0.3 | 0 |
Proceeds from Sales of Assets, Investing Activities | 0.2 | |
Net cash used in investing activities | (109.1) | (87.9) |
Financing activities | ||
Proceeds from Issuance of Senior Long-term Debt | 1,300 | 0 |
Principal payments of debt | (3.3) | (1.8) |
Repayments of Debt | (256.2) | (6.3) |
Early Repayment of Senior Debt | (202.6) | 0 |
Repayments of Senior Debt | (256.2) | (6.3) |
Payments Related to Tax Withholding for Share-based Compensation | (15.4) | (13.1) |
Debt issuance and financing costs | (16.9) | (0.9) |
Proceeds from Other Debt | 0 | 7.6 |
Payments for Repurchase of Common Stock | (805.8) | (207.6) |
Payments of Dividends | (22.8) | 24 |
Net cash used in financing activities | (23) | (246.1) |
Effect of exchange rate changes on cash and cash equivalents | 0.2 | 3.6 |
Net increase in cash, cash equivalents, and restricted cash for the period | 265.3 | 3.6 |
Cash, cash equivalents, and restricted cash, beginning of period | 445.5 | 717.6 |
Cash, cash equivalents, and restricted cash, end of period | $ 593 | $ 696.9 |
Organization and Basis of Inter
Organization and Basis of Interim Presentation | 6 Months Ended |
Jun. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Interim Presentation | Organization and Basis of Interim Presentation Spirit AeroSystems Holdings, Inc. (“Holdings” or the “Company”) provides manufacturing and design expertise in a wide range of fuselage, propulsion, and wing products and services for aircraft original equipment manufacturers (“OEM”) and operators through its subsidiary, Spirit AeroSystems, Inc. (“Spirit”). The Company's headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Tulsa and McAlester, Oklahoma; Prestwick, Scotland; Wichita, Kansas; Kinston, North Carolina; Subang, Malaysia; and Saint-Nazaire, France. The accompanying unaudited interim condensed consolidated financial statements include the Company’s financial statements and the financial statements of its majority-owned or controlled subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. The Company’s fiscal quarters are 13 weeks in length. Since the Company’s fiscal year ends on December 31, the number of days in the Company’s first and fourth quarters varies slightly from year to year. All intercompany balances and transactions have been eliminated in consolidation. As part of the monthly consolidation process, the Company’s international entities that have functional currencies other than the U.S. dollar are translated to U.S. dollars using the end-of-month translation rate for balance sheet accounts and average period currency translation rates for revenue and income accounts. The U.K. and Malaysian subsidiaries use the British pound as their functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments and elimination of intercompany balances and transactions) considered necessary to fairly present the results of operations for the interim period. The results of operations for the six months ended June 28, 2018 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. Certain reclassifications have been made to the prior year financial statements and notes to conform to the 2018 presentation. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events through the date the financial statements were issued. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 9, 2018 (the “2017 Form 10-K”). |
Changes in Estimates
Changes in Estimates | 6 Months Ended |
Jun. 28, 2018 | |
Changes in Estimates [Abstract] | |
Change In Estimate [Text Block] | . Changes in Estimates The Company has a periodic forecasting process in which management assesses the progress and performance of the Company’s programs. This process requires management to review each program’s progress by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated revenues and costs for the accounting contracts (and options if applicable), and any outstanding contract matters. Risks and opportunities include but are not limited to management’s judgment about the cost associated with the Company’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product), and any other program requirements. Due to the span of years it may take to completely satisfy the performance obligations for the accounting contracts (and options, if any) and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs is subject to many variables and, accordingly, is subject to change based upon judgment. When adjustments in estimated total consideration or estimated total cost are required, any changes from prior estimates for fully satisfied performance obligations are recognized in the current period as a cumulative catch-up adjustment for the inception-to-date effect of such changes. Cumulative catch-up adjustments are driven by several factors including production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work, and contract modifications. For 2017, the changes in estimates apply to contract blocks under legacy GAAP under the units of delivery method. For 2018, cumulative catch-up adjustments are primarily related to changes in measure of progress for contracts with performance obligations that are satisfied over time. For 2018, forward losses recorded relate primarily to the impact of the adoption of ASU 2017-07 related to pension, offset by favorable performance on cost initiatives. Changes in estimates are summarized below: For the Three Months Ended For the Six Months Ended Changes in Estimates June 28, 2018 June 29, 2017 June 28, 2018 June 29, 2017 Favorable (Unfavorable) Cumulative Catch-up Adjustment by Segment Fuselage Systems $ 5.7 $ 0.7 $ (2.5 ) $ 3.3 Propulsion Systems 3.4 6.1 1.4 3.8 Wing Systems (1.6 ) 17.5 0.7 22.0 Total Favorable (Unfavorable) Cumulative Catch-up Adjustment $ 7.5 $ 24.3 $ (0.4 ) $ 29.1 Changes in Estimate on Loss Programs (Forward Loss) by Segment Fuselage Systems $ 10.1 $ (231.7 ) $ (1.5 ) $ (237.6 ) Propulsion Systems 4.3 (48.0 ) 0.8 (48.0 ) Wing Systems 3.0 (73.8 ) (0.5 ) (72.0 ) Total Change in Estimate on Loss Programs (Forward Loss) $ 17.4 $ (353.5 ) $ (1.2 ) $ (357.6 ) Total Change in Estimate $ 24.9 $ (329.2 ) $ (1.6 ) $ (328.5 ) EPS Impact (diluted per share based upon statutory rates) $ 0.18 $ (1.75 ) $ (0.01 ) $ (1.73 ) |
Accounts Receivable, net
Accounts Receivable, net | 6 Months Ended |
Jun. 28, 2018 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable, net | . Accounts Receivable, net Accounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. For balances as of June 28, 2018, amounts that are receivable or payable that are contingent upon, or related to, satisfied or to be satisfied performance obligations, are presented as contract assets or liabilities. The Company determines an allowance for doubtful accounts based on a review of outstanding receivables that are charged off against the allowance after the potential for recovery is considered remote. Accounts receivable, net consists of the following: June 28, December 31, Trade receivables $ 654.9 $ 710.5 Other 28.8 13.0 Less: allowance for doubtful accounts (0.8 ) (1.3 ) Accounts receivable, net $ 682.9 $ 722.2 In October 2017, the Company entered into an agreement (the “Receivable Sales Agreement”), to sell, on a revolving basis, certain trade accounts receivable balances to a third party financial institution. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the balance sheet. The Receivable Sales Agreement provides for the continuing sale of certain receivables on a revolving basis until terminated by either party. The receivables under the Receivable Sales Agreement are sold without recourse to the third party financial institution. During 2018, $2,743.2 of accounts receivable were sold via this arrangement. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statement of Cash Flows. The recorded net loss on sale of receivables is $8.3 for the six months ended June 28, 2018 and is included in Other income and expense. See Note 21, Other (Expense) Income, net . |
Contract with customer, asset a
Contract with customer, asset and liability (Notes) | 6 Months Ended |
Jun. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
contract with customer, asset and liability [Text Block] | 7. Contract Assets and Contract Liabilities Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets, current are those for which performance obligations are expected to be fully satisfied within 12 months of contract origination and contract assets, long-term are expected to be fully satisfied over periods greater than 12 months. No impairments to contract assets were recorded for the period ended June 28, 2018. Contract liabilities are established for cash received that is in excess of revenues recognized and are contingent upon the satisfaction of performance obligations. Contract liabilities primarily consist of cash received on contracts for which revenue has been deferred since the receipts are in excess of transaction price resulting from the allocation of consideration based on relative standalone selling price to future units (including those under option that the Company believes are likely to be exercised) with prices that are lower than standalone selling price. These contract liabilities will be recognized earlier if the options are not fully exercised, or immediately, if the contract is terminated prior to the options being fully exercised. January 1, 2018 June 28, 2018 Change Contract assets $ 517.8 $ 553.2 $ 35.4 Contract liabilities (319.4 ) (476.8 ) (157.4 ) Net contract asset $ 198.4 $ 76.4 $ (122.0 ) The increase in contract assets reflects the net impact of additional unbilled revenues recorded in excess of revenue recognized during the period. The increase in contract liabilities reflects the net impact of additional deferred revenues recorded in excess of revenue recognized during the period. For the period ended June 28, 2018, the Company recognized $27.6 of revenue that was included in the contract liability balance at the beginning of the period. |
Contract with Customer, Asset and Liability [Table Text Block] | January 1, 2018 June 28, 2018 Change Contract assets $ 517.8 $ 553.2 $ 35.4 Contract liabilities (319.4 ) (476.8 ) (157.4 ) Net contract asset $ 198.4 $ 76.4 $ (122.0 ) |
Performance Obligations (Notes)
Performance Obligations (Notes) | 6 Months Ended |
Jun. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Performance Obligations [Text Block] | 8. Performance Obligations Unsatisfied, or partially unsatisfied, performance obligations that are expected to be recognized in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below. Remaining in 2018 2019 2020 2021 and After Unsatisfied performance obligations $2,808.3 $6,340.3 $4,478.2 $1,671.4 |
Inventory
Inventory | 6 Months Ended |
Jun. 28, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of raw materials used in the production process, work-in-process, which is direct material, direct labor, overhead and purchases, and capitalized preproduction costs. Raw materials are stated at lower of cost (principally on an actual or average cost basis) or market. Capitalized pre-production costs include certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis. These costs are typically amortized over a period that is consistent with the satisfaction of the underlying performance obligations to which these relate. See Note 3, Summary of Significant Accounting Policies - Inventory . For 2017, deferred production includes costs for the excess of production costs over the estimated average cost per shipset, and credit balances for favorable variances on contracts between actual costs incurred and the estimated average cost per shipset for units delivered under the current production blocks. Recovery of excess-over-average deferred production costs is dependent on the number of shipsets ultimately sold and the ultimate selling prices and lower production costs associated with future production under these contract blocks. Forward loss reserves on contract blocks are recorded in the period in which they become evident and are included as a reduction to inventory with remaining amounts, if any, reflected in accrued deferred revenue. Inventories are summarized as follows: June 28, December 31, Raw materials $ 243.5 $ 321.0 Work-in-process (1) 604.5 854.4 Finished goods 11.2 35.8 Product inventory 859.2 1,211.2 Capitalized pre-production (2) 41.6 78.9 Deferred production (3) — 640.3 Forward loss provision (4) — (480.5 ) Total inventory, net $ 900.8 $ 1,449.9 (1) For the period ended June 28, 2018 , work-in-process inventory includes direct labor, direct material, overhead and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized using the input method. For the period ended December 31, 2017, work-in-process included direct labor, direct material, overhead and purchases on all contracts that were accounted for using the units of delivery method. For the period ended June 28, 2018 , work-in-process inventory includes $129.9 of costs incurred in anticipation of specific contracts and no impairments were recorded in the period. (2) As part of the Transition Adjustment, $43.0 (pretax) of pre-production costs on the A350 XWB were eliminated. (3) As part of the Transition Adjustment, $640.3 (pretax) of deferred production was eliminated. For the period ended December 31, 2017, the balance contained $632.8 and $129.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (4) For the period ended June 28, 2018 , forward loss reserves of $251.4 have been classified as a liability in the condensed consolidated balance sheet. For the period ended December 31, 2017, the forward loss reserve for the B787 program exceeded the program's inventory balance. This excess was classified as a liability and reported in other current liabilities on the balance sheet in the amount of $254.5 as of December 31, 2017. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consists of the following: June 28, December 31, Land $ 15.5 $ 15.9 Buildings (including improvements) 802.7 764.1 Machinery and equipment 1,578.1 1,529.9 Tooling 1,021.5 1,013.9 Capitalized software 269.2 263.3 Construction-in-progress 203.9 213.4 Total 3,890.9 3,800.5 Less: accumulated depreciation (1,788.3 ) (1,695.2 ) Property, plant and equipment, net $ 2,102.6 $ 2,105.3 Repair and maintenance costs are expensed as incurred. The Company recognized repair and maintenance costs of $34.9 and $28.9 for the three months ended June 28, 2018 and June 29, 2017 , respectively, and $67.7 and $51.3 for the six months ended June 28, 2018 and June 29, 2017 , respectively. The Company capitalizes certain costs, such as software coding, installation, and testing, that are incurred to purchase or to create and implement internal-use computer software. Depreciation expense related to capitalized software was $4.2 and $5.1 for the three months ended June 28, 2018 and June 29, 2017 , respectively, and $8.6 and $10.3 for the six months ended June 28, 2018 and June 29, 2017 , respectively. The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company evaluated its long-lived assets at its locations and determined no impairment was necessary for the period ended June 28, 2018 . |
Other Assets
Other Assets | 6 Months Ended |
Jun. 28, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | . Other Assets Other assets are summarized as follows: June 28, December 31, Intangible assets Patents $ 1.9 $ 1.9 Favorable leasehold interests 6.3 6.3 Total intangible assets 8.2 8.2 Less: Accumulated amortization - patents (1.9 ) (1.8 ) Accumulated amortization - favorable leasehold interest (4.7 ) (4.6 ) Intangible assets, net 1.6 1.8 Deferred financing Deferred financing costs 39.5 39.5 Less: Accumulated amortization - deferred financing costs (34.5 ) (33.7 ) Deferred financing costs, net 5.0 5.8 Other Goodwill - Europe 2.4 2.5 Equity in net assets of affiliates — 4.7 Supply agreements (1) 17.4 19.9 Restricted cash - collateral requirements 20.0 20.0 Deferred Tax Asset - non-current 173.7 72.5 Other 44.3 37.1 Total $ 264.4 $ 164.3 (1) Under two agreements, certain payments accounted for as consideration paid by the Company to a customer and a supplier are being amortized as reductions to net revenues. |
Advance Payments and Deferred R
Advance Payments and Deferred Revenue/Credits | 6 Months Ended |
Jun. 28, 2018 | |
Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments And Deferred Revenue Credits | Advance Payments Advances on the B787 Program. Boeing has made advance payments to Spirit under the B787 Supply Agreement, that are required to be repaid to Boeing by way of offset against the purchase price for future shipset deliveries. Advance repayments were scheduled to be spread evenly over the remainder of the first 1,000 B787 shipsets delivered to Boeing. On April 8, 2014, the Company signed a memorandum of agreement with Boeing that suspended advance repayments related to the B787 program for a period of twelve months beginning April 1, 2014. Repayment recommenced on April 1, 2015, and any repayments which otherwise would have become due during such twelve-month period will offset the purchase price for shipsets 1,001 through 1,120. In the event Boeing does not take delivery of a sufficient number of shipsets to repay the full amount of advances prior to the termination of the B787 program or the B787 Supply Agreement, any advances not then repaid will be applied against any outstanding payments then due by Boeing to us, and any remaining balance will be repaid in annual installments of $42.0 due on December 15th of each year until the advance payments have been fully recovered by Boeing. As of June 28, 2018 , the amount of advance payments received by us from Boeing under the B787 Supply Agreement and not yet repaid was approximately $280.0 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB’s authoritative guidance on fair value measurements defines fair value as the exchange price that would be received for 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. It also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. At June 28, 2018 and December 31, 2017, the Company did not hold any cash within money market funds. The Company’s long-term debt includes a senior unsecured term loan and senior unsecured notes. The estimated fair value of the Company’s debt obligations is based on the quoted market prices for such obligations or the historical default rate for debt with similar credit ratings. The following table presents the carrying amount and estimated fair value of long-term debt: June 28, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Senior unsecured term loan A (including current portion) $ 205.4 $ 205.9 (2) $ 460.7 $ 461.9 (2) Senior unsecured notes due 2021 298.2 298.8 (1) — — (1) Senior unsecured notes due 2022 95.9 98.5 (1) 294.8 304.6 (1) Senior unsecured notes due 2023 297.7 299.3 (1) — — (1) Senior unsecured notes due 2026 297.4 286.7 (1) 297.2 301.0 (1) Senior unsecured notes due 2028 693.2 699.7 (1) — — (1) Total $ 1,887.8 $ 1,888.9 $ 1,052.7 $ 1,067.5 (1) Level 1 Fair Value hierarchy (2) Level 2 Fair Value hierarchy |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 6 Months Ended |
Jun. 28, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities The Company has historically entered into interest rate swap agreements to reduce its exposure to the variable rate portion of its long-term debt. The Company also considers counterparty credit risk and its own credit risk in its determination of all estimated fair values. The Company has historically entered into derivative instruments covered by master netting arrangements whereby, in the event of a default as defined by the 2016 Credit Agreement (as defined below) or termination event, the non-defaulting party has the right to offset any amounts payable against any obligation of the defaulting party under the same counterparty agreement. See Note 15, Debt , for more information. Interest Rate Swaps On March 15, 2017, the Company entered into an interest rate swap agreement, with an effective date of March 31, 2017. The swaps have a notional value of $250.0 and fix the variable portion of the Company’s floating rate debt at 1.815% . The fair value of the interest rate swaps, using Level 2 inputs, was an asset of $3.2 and $0.9 as of June 28, 2018 and December 31, 2017, respectively. The Company recorded a gain related to swap activity of $0.6 and $2.3 , for the three and six months ended June 28, 2018 , respectively. Foreign Currency Forward Contract As described further in Note 24, Asco Acquisition , the Company and its wholly-owned subsidiary Spirit AeroSystems Belgium Holdings BVBA (“Spirit Belgium”) entered into a definitive agreement (the “Purchase Agreement”) with certain private sellers pursuant to which Spirit Belgium will purchase all of the issued and outstanding equity of S.R.I.F. N.V., the parent company of Asco Industries N.V. (“Asco”) for $650.0 in cash, subject to certain customary closing adjustments, including foreign currency adjustments. As such, movements in the Euro exchange rates could cause the purchase price to fluctuate, affecting our cash flows. To reduce the Company's exposure to currency exchange rate fluctuations, the Company entered into foreign currency forward contract. The objective of this contract is to minimize the impact of currency exchange rate movements on the Company's cash flows, however the Company has not designated this forward contract as a hedge and has not applied hedge accounting to it. During the second quarter of 2018, the Company entered into a foreign currency forward contract in the amount of $580.0 to reduce the Euro exchange rate exposure of the purchase of Asco. The fair value of the foreign currency forward contract, using Level 2 inputs, was a liability of $21.5 as of June 28, 2018. The Company recorded a loss related to foreign currency forward contract activity of $21.5 , for both the three and six months ended June 28, 2018 . |
Debt
Debt | 6 Months Ended |
Jun. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Total debt shown on the balance sheet is comprised of the following: June 28, 2018 December 31, 2017 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 180.5 $ 24.9 $ 435.8 Senior notes due 2021 — 298.2 — — Senior notes due 2022 95.9 — — 294.8 Senior notes due 2023 — 297.7 — — Senior notes due 2026 — 297.4 — 297.2 Senior notes due 2028 — 693.2 — — Present value of capital lease obligations 6.3 35.4 5.2 33.6 Other 1.0 56.0 1.0 58.5 Total $ 128.1 $ 1,858.4 $ 31.1 $ 1,119.9 Senior Unsecured Credit Facility On June 6, 2016, the Company entered into the senior unsecured Amended and Restated Credit Agreement, among Spirit, as borrower, the Company, as parent guarantor, the lenders party thereto, Bank of America, N.A., as administrative agent, and the other agents named therein (the “2016 Credit Agreement”). The 2016 Credit Agreement provides for a $650.0 revolving credit facility (the “2016 Revolver”) and a $500.0 term loan A facility (the “2016 Term Loan”). Each of the 2016 Revolver and the 2016 Term Loan has a maturity date of June 4, 2021, and each bears interest, at Spirit’s option, at either LIBOR plus 1.5% or a defined “base rate” plus 0.50%, subject to adjustment to amounts between and including LIBOR plus 1.125% and LIBOR plus 2.0% (or amounts between and including base rate plus 0.125% and base rate plus 1.0%, as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc . The principal obligations under the 2016 Term Loan are to be repaid in equal quarterly installments of $6.25 , with the remaining balance due at maturity of the 2016 Term Loan. The 2016 Credit Agreement contains affirmative and negative covenants available to investment grade companies, including certain financial covenants that are tested on a quarterly basis. The 2016 Credit Agreement contains an accordion feature that provides Spirit with the option to increase the 2016 Revolver commitments and/or institute one or more additional term loans by an amount not to exceed $500.0 in the aggregate, subject to the satisfaction of certain conditions and the participation of the lenders. On September 22, 2017, the Company, the lenders, and the administrative agent entered into Amendment No. 1 to the 2016 Credit Agreement, which made certain minor administrative changes to the 2016 Credit Agreement to account for the Company’s upcoming adoption of ASU 2014-09, among other things. As of June 28, 2018, the outstanding balance of the 2016 Term Loan was $206.3 and the carrying value was $205.4 . On July 12, 2018, the Company replaced the 2016 Credit Agreement with a $1,260.0 senior unsecured Second Amended and Restated Credit Agreement among Spirit AeroSystems, Inc., as borrower, the Company, as parent guarantor, the lenders party thereto, Bank of America, N.A., as administrative agent, and the other agents named therein. See Note 25, Subsequent Event , for more information. Senior Notes 2022 Notes On May 22, 2018, the Company commenced an offer to purchase for cash (the “Tender Offer”) any and all of the $300.0 outstanding principal amount of our 5 1/4% Senior Notes due 2022 (the “2022 Notes”). The Tender Offer was made pursuant to an Offer to Purchase dated May 22, 2018, and a related Letter of Transmittal and Notice of Guaranteed Delivery, which set forth the terms and conditions of the Tender Offer in full detail. Under the terms of the Tender Offer, holders of 2022 Notes who validly tendered their notes at or prior to May 29, 2018 would receive, in whole dollars, $1,028.50 per $1,000 principal amount of Notes tendered. Tendering holders will also receive accrued and unpaid interest from the last applicable interest payment date to, but not including, the settlement date of the Tender Offer. On May 30, 2018, Spirit repurchased $202.6 aggregate principal amount of its 2022 Notes pursuant to the Tender Offer. Tender fees were $5.8, which are included within debt issuance costs on the Condensed Consolidated Statement of Cash Flows for the six months ended June 28, 2018. In addition, on May 30, 2018, Spirit called for redemption the remaining $97.4 aggregate principal amount of the 2022 Notes outstanding following completion of the Tender Offer. This amount was recorded as Restricted Cash on the Balance Sheet for the period ended June 28, 2018. The redemption price of the 2022 Notes was 102.85% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the redemption date of June 29, 2018. Following the redemption on June 29, 2018, none of the 2022 Notes remain outstanding. As a result of the extinguishment of the 2022 Notes, the Company recognized a loss on extinguishment of $9.0 , all of which is reflected within amortization of deferred financing fees on the Condensed Consolidated Statement of Cash Flows for the six months ended June 28, 2018. The carrying value of the 2022 Notes was $95.9 as of June 28, 2018. New Notes On May 30, 2018, Spirit entered into an Indenture (the “Indenture”) by and among Spirit, the Company and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), as trustee in connection with Spirit’s offering of $300.0 aggregate principal amount of its Senior Floating Rate Notes due 2021 (the “Floating Rate Notes”), $300.0 aggregate principal amount of its 3.950% Senior Notes due 2023 (the “2023 Notes”) and $700.0 aggregate principal amount of its 4.600% Senior Notes due 2028 (the “2028 Notes” and, together with the Floating Rate Notes and the 2023 Notes, the “New Notes”). The Company guaranteed Spirit’s obligations under the Notes on a senior unsecured basis (the “Guarantees”). The Floating Rate Notes bear interest at a rate per annum equal to three-month LIBOR, as determined in the case of the initial interest period, on May 25, 2018, and thereafter at the beginning of each quarterly period as described herein, plus 80 basis points and mature on June 15, 2021. Interest on the Floating Rate Notes is payable on March 15, June 15, September 15 and December 15 of each year, beginning on September 15, 2018. The 2023 Notes bear interest at a rate of 3.950% per annum and mature on June 15, 2023. The 2028 Notes bear interest at a rate of 4.600% per annum and mature on June 15, 2028. Interest on the 2023 Notes and 2028 Notes is payable on June 15 and December 15 of each year, beginning on December 15, 2018. The carrying value of the 2021 Notes, 2023 Notes, and 2028 Notes was $298.2 , $297.7 , and $693.2 as of June 28, 2018, respectively. The Notes and the Guarantees have been registered under the Securities Act of 1933, as amended (the “Act”), pursuant to a Registration Statement on Form S-3 (No. 333-211423) previously filed with the SEC under the Act. The Indenture contains covenants that limit Spirit’s, the Company’s and certain of the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to create liens without granting equal and ratable liens to the holders of the New Notes and enter into sale and leaseback transactions. These covenants are subject to a number of qualifications and limitations. In addition, the Indenture provides for customary events of default. 2026 Notes In June 2016, the Company issued $300.0 in aggregate principal amount of 3.850% Senior Notes due June 15, 2026 (the “2026 Notes”) with interest payable, in cash in arrears, on June 15 and December 15 of each year, beginning December 15, 2016. The carrying value of the 2026 Notes was $297.4 as of June 28, 2018. |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 6 Months Ended |
Jun. 28, 2018 | |
Defined Benefit Plan [Abstract] | |
Pension and Other Post-Retirement Benefits | Pension and Other Post-Retirement Benefits Defined Benefit Plans For the Three Months Ended For the Six Months Ended Components of Net Periodic Pension Expense/(Income) June 28, June 29, June 28, June 29, Service cost $ 0.2 $ 0.3 $ 0.4 $ 0.5 Interest cost 8.9 9.3 18.2 18.9 Expected return on plan assets (17.4 ) (18.1 ) (34.9 ) (36.4 ) Net periodic pension (income) expense $ (8.3 ) $ (8.5 ) $ (16.3 ) $ (17.0 ) Other Benefits For the Three Months Ended For the Six Months Ended Components of Other Benefit Expense June 28, June 29, June 28, June 29, Service cost $ 0.2 $ 0.3 $ 0.5 $ 0.6 Interest cost 0.2 0.3 0.5 0.6 Amortization of prior service cost (0.3 ) (0.3 ) (0.5 ) (0.5 ) Amortization of net gain (0.5 ) (0.5 ) (1.1 ) (1.1 ) Net periodic other benefit (income) expense $ (0.4 ) $ (0.2 ) $ (0.6 ) $ (0.4 ) Employer Contributions The Company expects to contribute zero dollars to the U.S. qualified pension plan and a combined total of approximately $7.4 for the Supplemental Executive Retirement Plan (“SERP”) and post-retirement medical plans in 2018. The Company’s projected contributions to the U.K. pension plan for 2018 are $1.8 . The entire amount contributed can vary based on exchange rate fluctuations. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 28, 2018 | |
Share-based Compensation [Abstract] | |
Stock Compensation | Stock Compensation The Company recognized a net total of $6.5 and $3.0 of stock compensation expense for the three months ended June 28, 2018 and June 29, 2017 , respectively. The Company recognized a net total of $13.6 and $11.0 of stock compensation expense for the six months ended June 28, 2018 and June 29, 2017 , respectively. During the six months ended June 28, 2018 , 241,010 shares, 92,375 shares, and 63,904 shares of class A common stock with aggregate grant date fair values of $21.4 , $8.4 and $5.7 were granted under the service-based, market-based, and performance based portions of the Company’s LTIAs, respectively. Additionally, 454,402 shares of class A common stock with an aggregate grant date fair value of $23.9 that were LTIAs vested during the three months ended June 28, 2018 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The process for calculating the Company’s income tax expense involves estimating actual current taxes due plus assessing temporary differences arising from differing treatment for tax and accounting purposes that are recorded as deferred tax assets and liabilities. Deferred tax assets are periodically evaluated to determine their recoverability. The total net deferred tax asset at June 28, 2018, and December 31, 2017, was $173.3 and $72.2 , respectively. The difference is primarily due to the creation of deductible temporary differences within the Transition Adjustment, and the utilization of taxable temporary differences within the current year. The Company files income tax returns in all jurisdictions in which it operates. The Company establishes reserves to provide for additional income taxes that may be due upon audit. These reserves are established based on management’s assessment as to the potential exposure attributable to permanent tax adjustments and associated interest. All tax reserves are analyzed quarterly and adjustments made as events occur that warrant modification. In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share-based compensation, finalizing amounts in income tax returns filed, finalizing audit examinations for open tax years and expiration of statutes of limitations and changes in tax law. On December 22, 2017, President Trump signed into law legislation referred to as the “Tax Cuts and Jobs Act” (the “TCJA”). The staff of the SEC has recognized the complexity of reflecting the impacts of the TCJA, and on December 22, 2017, issued guidance in Staff Accounting Bulletin 118 (“SAB 118”) which clarifies accounting for income taxes under ASC 740 if information is not yet available or complete and provides for up to a one-year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or “buckets”) associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. The Company has not made revisions to the provisional tax effects of the TCJA on its existing deferred tax balances and one-time transition tax, but will include any revisions as an adjustment to tax expense in the period in which the amounts are determined. The TCJA subjects a US stockholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries for years ending after December 31, 2017. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. At June 28, 2018, because the Company is still evaluating the effects of the GILTI provisions, an accounting policy on whether the Company will account for GILTI as a period expense or record deferred taxes for anticipated GILTI has not been made. The Company's accounting for the effects of the GILTI provision is incomplete, however the Company has included estimated GILTI tax related to current-year operations in the Company's annualized effective tax rate and have not provided additional GILTI on deferred items. The TCJA also introduces base erosion and anti-abuse tax provisions (“BEAT”) for companies that meet certain thresholds by effectively excluding deductions on certain payments to foreign related entities. Although the Company's analysis of the tax effects of the BEAT provision is incomplete the Company does not expect to be subject to the tax. In January 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (“Topic 220”); Reclassification of Certain Tax effects from Accumulated Other Comprehensive Income (“AOCI”), which gives entities the option to reclassify to retained earnings the tax effects resulting from the TCJA that are stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the TCJA is recognized in the period of adoption. The Company must adopt this guidance for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or made available for issuance, including the period the TCJA was enacted. The guidance, when adopted, will require new disclosures regarding a company’s accounting policy for releasing the tax effects in AOCI. The Company is currently evaluating how to apply the new guidance and has not determined whether it will elect to reclassify stranded amounts. The adoption of ASU 2018-02 is not expected to have a material effect on its consolidated financial statements. The 18.9% effective tax rate for the six months ended June 28, 2018 differs from the 25.5% effective tax rate for the same period of 2017 primarily due to the enactment of the TCJA, including the reduction in the U.S. corporate federal income tax rate from 35% to 21%, and the elimination of the domestic manufacturing deduction, offset by the proportional tax rate effects of lower pre-tax income in 2017. The Company will continue to participate in the Internal Revenue Service’s Compliance Assurance Process (“CAP”) program for its 2018 tax year. The CAP program’s objective is to resolve issues in a timely, contemporaneous manner and eliminate the need for a lengthy post-filing examination. There are no open audits in the Company’s foreign jurisdictions. The Company expects no material change in its recorded unrecognized tax benefit liability in the next 12 months. |
Equity
Equity | 6 Months Ended |
Jun. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Accelerated Share Repurchase Program In May 2018, the Company entered into accelerated share repurchase agreements (“ASRs”) with Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC (collectively, the “Dealers”) to repurchase in total $725.0 of the Company’s class A common stock. Under the ASRs, the Company delivered a total of $725.0 in cash to the Dealers and received a total of 7.3 million shares which represented approximately 85% of the total common shares expected to be repurchased under the ASRs based on the closing price on the day the Company entered into the ASRs. The final number of shares to be repurchased and the final average price per share under the ASRs will depend on the volume-weighted average price of the Company’s class A common stock, less a discount, during the term of the agreement. Purchases under the ASRs are expected to be completed in the fourth quarter of 2018. For further information regarding the ASRs, refer to the Company's Current Report on Form 8-K filed with the SEC on May 30, 2018. The Company accounts for the ASRs as two separate transactions: (i) as shares of reacquired common stock for the shares delivered to us upon effectiveness of the ASRs and (ii) as a forward contract indexed to our own common stock for the undelivered shares. The initial delivery of shares is included in treasury stock at cost and results in an immediate reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share. The forward contracts indexed to our own common stock meet the criteria for equity classification, and these amounts are initially recorded in additional paid-in capital and reclassified to treasury stock upon completion of the ASRs. Earnings per Share Calculation Basic net income per share is computed using the weighted-average number of outstanding shares of common stock during the measurement period. Diluted net income per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential outstanding shares of common stock during the measurement period. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of June 28, 2018 , no treasury shares have been reissued or retired. The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended June 28, 2018 June 29, 2017 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common stockholders $ 145.1 110.0 $ 1.32 $ (56.8 ) 118.2 $ (0.48 ) Income allocated to participating securities 0.1 0.1 — — Net income $ 145.2 $ (56.8 ) Diluted potential common shares 0.9 — Diluted EPS Net income $ 145.2 111.0 $ 1.31 $ (56.8 ) 118.2 $ (0.48 ) For the Six Months Ended June 28, 2018 June 29, 2017 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common shareholders $ 270.4 111.4 $ 2.43 $ 84.8 118.8 $ 0.71 Income allocated to participating securities 0.2 0.1 0.1 0.1 Net income $ 270.6 $ 84.9 Diluted potential common shares 1.1 — Diluted EPS Net income $ 270.6 112.6 $ 2.40 $ 84.9 118.9 $ 0.71 Included in the outstanding common shares were 1.4 million and 1.5 million of issued but unvested shares at June 28, 2018 and June 29, 2017 , respectively, which are excluded from the basic EPS calculation. For the impact of the transition adjustment due to the adoption ASC 606 on retained earnings, see Note 2, Adoption of New Revenue Standard . Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of June 28, 2018 December 31, 2017 Pension $ (75.9 ) $ (75.9 ) SERP/Retiree medical 16.5 17.7 Foreign currency impact on long term intercompany loan (15.5 ) (14.2 ) Currency translation adjustment (69.5 ) (56.1 ) Total accumulated other comprehensive loss $ (144.4 ) $ (128.5 ) |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 28, 2018 | |
Commitments Contingencies And Guarantees [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Litigation From time to time the Company is subject to, and is presently involved in, litigation or other legal proceedings arising in the ordinary course of business. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the meritorious legal defenses available, it is the opinion of the Company that none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. From time to time, in the ordinary course of business and similar to others in the industry, the Company receives requests for information from government agencies in connection with their regulatory or investigational authority. Such requests can include subpoenas or demand letters for documents to assist the government in audits or investigations. The Company reviews such requests and notices and takes appropriate action. Additionally, the Company is subject to federal and state requirements for protection of the environment, including those for disposal of hazardous waste and remediation of contaminated sites. As a result, the Company is required to participate in certain government investigations regarding environmental remediation actions. On December 5, 2014, Boeing filed a complaint in Delaware Superior Court, Complex Commercial Litigation Division, entitled The Boeing Co. v. Spirit AeroSystems, Inc., No. N14C-12-055 (EMD) (the “Complaint”) seeking indemnification of approximately $139.0 from Spirit for (a) damages assessed against Boeing in International Union, United Automobile, Aerospace and Agricultural Workers of America v. Boeing Co., AAA Case No. 54 300 00795 07 (“UAW Arbitration”), which was brought on behalf of certain former Boeing employees in Tulsa and McAlester, Oklahoma, (b) claims that Boeing settled in Society of Professional Engineering Employees in Aerospace v. Boeing Co., Nos. 05-1251-MLB, 07-1043-MLB (D. Kan.) (“Harkness Class Action”), and (c) attorneys’ fees Boeing alleges it expended to defend the UAW Arbitration and Harkness Class Action, as well as reasonable fees, costs and expenses Boeing expends litigating the case against Spirit. Boeing’s Complaint asserts that the damages assessed against Boeing in the UAW Arbitration and the claims settled by Boeing in the Harkness Class Action are liabilities that Spirit assumed under an Asset Purchase Agreement between Boeing and Spirit, dated February 22, 2005 (the “APA”). Boeing asserts claims for breach of contract and declaratory judgment regarding its indemnification rights under the APA. Spirit asserted a Counterclaim against Boeing, on the ground that the liabilities at issue were Boeing’s responsibility under the APA. Spirit’s Counterclaim alleges breach of contract and seeks a declaratory judgment regarding Spirit’s right to indemnification from Boeing under the APA. Spirit’s Counterclaim seeks to recover the amounts that Spirit spent litigating the Harkness Class Action, responding to Boeing’s indemnification demands concerning the Harkness Class Action and UAW Arbitration, and also litigating the current lawsuit against Boeing. On December 20, 2016, Boeing and Spirit moved for summary judgment. On June 27, 2017, the Delaware Superior Court (the “Superior Court”) issued an order denying Boeing’s Motion for Summary Judgment and granting Spirit’s Motion for Summary Judgment, finding that the liabilities at issue were excluded liabilities under the APA and holding that Spirit is entitled to recover reasonable attorneys' fees, costs and other expenses from Boeing. The Court granted Spirit’s motion as to fees, costs, and expenses incurred as a result of the litigation and underlying matters and denied the motion as to pre- and post-trial interest. Boeing appealed the Superior Court’s decision to the Supreme Court of the State of Delaware (the “Supreme Court”). On July 12, 2018, a unanimous three judge panel of the Supreme Court ruled in favor of Spirit and on July 26, 2018, the Supreme Court denied Boeing’s Motion for Reargument and returned the case to the Superior Court. Spirit will continue to pursue its recovery for attorneys’ fees. Guarantees Outstanding guarantees were $20.7 and $23.2 at June 28, 2018 , and December 31, 2017 , respectively. Restricted Cash - Collateral Requirements The Company was required to maintain $20.0 of restricted cash as of both June 28, 2018 and December 31, 2017 , related to certain collateral requirements for obligations under its workers’ compensation programs. The restricted cash is included in “Other assets” in the Company’s Condensed Consolidated Balance Sheets. Indemnification The Company has entered into customary indemnification agreements with its non-employee directors, and certain executive employment agreements include indemnification provisions. Under those agreements, the Company agrees to indemnify each of these individuals against claims arising out of events or occurrences related to that individual’s service as the Company’s agent or the agent of any of its subsidiaries to the fullest extent legally permitted. The Company has agreed to indemnify parties for specified liabilities incurred, or that may be incurred, in connection with transactions they have entered into with the Company. The Company is unable to assess the potential number of future claims that may be asserted under these indemnities, nor the amounts thereof (if any). As a result, the Company cannot estimate the maximum potential amount of future payments under these indemnities and therefore, no liability has been recorded. Service and Product Warranties and Extraordinary Rework Provisions for estimated expenses related to service and product warranties and certain extraordinary rework are evaluated on a quarterly basis. These costs are accrued and are recorded to unallocated cost of goods sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims, including the experience of industry peers. In the case of new development products or new customers, Spirit considers other factors including the experience of other entities in the same business and management judgment, among others. Service warranty and extraordinary rework is reported in current liabilities and other liabilities on the balance sheet. The warranty balance presented in the table below includes unresolved warranty claims that are in dispute in regards to their value as well as their contractual liability. The Company estimated the total costs related to some of these claims, however, there is significant uncertainty surrounding the disposition of these disputed claims and as such, the ultimate determination of the provision’s adequacy requires significant management judgment. The amount of the specific provisions recorded against disputed warranty claims was $104.0 and $101.0 as of June 28, 2018 , and December 31, 2017 , respectively. These specific provisions represent the Company’s best estimate of reasonably possible warranty claim. Should the Company incur higher than expected warranty costs and/or discover new or additional information related to these warranty provisions, the Company may incur additional charges that exceed these recorded provisions. The Company utilized available information to make appropriate assessments, however, the Company recognizes that data on actual claims experience is of limited duration and therefore, claims projections are subject to significant judgment. The amount of the disputed warranty claims in excess of the specific warranty provision was $179.0 as of June 28, 2018 , and $223.0 as of December 31, 2017 . The following is a roll forward of the service warranty and extraordinary rework balance at June 28, 2018 : Balance, December 31, 2017 $ 166.4 Charges to costs and expenses 2.9 Payouts (2.7 ) Exchange rate (0.3 ) Balance, June 28, 2018 $ 166.3 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 28, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income (Expense), Net | Other (Expense) Income, Net Other (expense) income, net is summarized as follows: For the Three Months Ended For the Six Months Ended June 28, June 29, June 28, June 29, Kansas Development Finance Authority bond $ 0.9 $ 0.7 $ 2.1 $ 1.7 Rental and miscellaneous income 0.3 — (1.3 ) 0.1 Interest income 1.7 1.5 2.9 2.5 Foreign currency losses 1.6 0.5 (1.5 ) (0.1 ) Loss on sale of accounts receivable (4.6 ) — (8.3 ) — Pension Income 8.7 9.3 17.1 18.5 Loss on foreign currency forward contract and interest rate swaps (20.9 ) (1.5 ) (19.2 ) (1.5 ) Total $ (12.3 ) $ 10.5 $ (8.2 ) $ 21.2 Foreign currency losses are due to the impact of movement in foreign currency exchange rates on an intercompany revolver and long-term contractual rights/obligations, as well as trade and intercompany receivables/payables that are denominated in a currency other than the entity’s functional currency. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates in three principal segments: Fuselage Systems, Propulsion Systems, and Wing Systems. Revenue from Boeing represents a substantial portion of the Company's revenues in all segments. Wing Systems also includes significant revenues from Airbus. Approximately 95% of the Company's net revenues for the three months ended June 28, 2018, came from the Company's two largest customers, Boeing and Airbus. All other activities fall within the All Other segment, principally made up of sundry sales of miscellaneous services, tooling contracts and sales of natural gas through a tenancy-in-common with other companies that have operations in Wichita, Kansas. The Company's primary profitability measure to review a segment’s operating performance is segment operating income before corporate selling, general and administrative expenses, research and development, and unallocated cost of sales. Corporate selling, general and administrative expenses include centralized functions such as accounting, treasury, and human resources that are not specifically related to the Company's operating segments and are not allocated in measuring the operating segments’ profitability and performance and net profit margins. Research and development includes research and development efforts that benefit the Company as a whole and are not unique to a specific segment. Unallocated cost of sales includes general costs not directly attributable to segment operations, such as warranty, early retirement and other incentives. All of these items are not specifically related to the Company’s operating segments and are not utilized in measuring the operating segments’ profitability and performance. The Company’s Fuselage Systems segment includes development, production, and marketing of forward, mid and rear fuselage sections and systems, primarily to aircraft OEMs (OEM refers to aircraft original equipment manufacturer), as well as related spares and maintenance, repairs and overhaul (“MRO”) services. The Fuselage Systems segment manufactures products at the Company's facilities in Wichita, Kansas and Kinston, North Carolina. The Fuselage Systems segment also includes an assembly plant for the A350 XWB aircraft in Saint-Nazaire, France. The Company’s Propulsion Systems segment includes development, production and marketing of struts/pylons, nacelles (including thrust reversers), and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Propulsion Systems segment manufactures products at the Company's facility in Wichita, Kansas. The Company’s Wing Systems segment includes development, production and marketing of wings and wing components (including flight control surfaces), and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. These activities take place at the Company’s facilities in Tulsa and McAlester, Oklahoma; Kinston, North Carolina; Prestwick, Scotland; and Subang, Malaysia. The Company’s segments are consistent with the organization and responsibilities of management reporting to the chief operating decision-maker for the purpose of assessing performance. The Company’s definition of segment operating income differs from net profit margin as presented in its primary financial statements and a reconciliation of the segment and consolidated results is provided in the table set forth below. While some working capital accounts are maintained on a segment basis, much of the Company’s assets are not managed or maintained on a segment basis. Property, plant and equipment, including tooling, is used in the design and production of products for each of the segments and, therefore, is not allocated to any individual segment. In addition, cash, prepaid expenses, other assets and deferred taxes are managed and maintained on a consolidated basis and generally do not pertain to any particular segment. Raw materials and certain component parts are used in aerostructure production across all segments. Work-in-process inventory is identifiable by segment, but is managed and evaluated at the program level. As there is no segmentation of the Company’s productive assets, depreciation expense (included in fixed manufacturing costs and selling, general and administrative expenses) and capital expenditures, no allocation of these amounts has been made solely for purposes of segment disclosure requirements. The following table shows segment revenues and operating income for the three and six months ended June 28, 2018 , and June 29, 2017 : Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Segment Revenues Fuselage Systems $ 1,029.7 $ 938.2 $ 1,992.4 $ 1,855.1 Propulsion Systems 422.7 436.5 817.2 842.8 Wing Systems 383.0 450.5 760.0 819.5 All Other 1.5 0.9 3.4 2.8 $ 1,836.9 $ 1,826.1 $ 3,573.0 $ 3,520.2 Segment Operating Income (Loss) Fuselage Systems (1) $ 163.2 $ (84.8 ) $ 282.9 $ 61.2 Propulsion Systems (1) 74.8 39.3 127.7 111.0 Wing Systems (1) 56.7 28.9 107.5 85.6 All Other — (0.6 ) (1.0 ) (0.7 ) 294.7 (17.2 ) 517.1 257.1 SG&A (61.0 ) (47.2 ) (117.2 ) (100.1 ) Impact of severe weather event — (9.1 ) — (19.9 ) Research and development (11.1 ) (6.7 ) (20.5 ) (11.7 ) Unallocated cost of sales (5.0 ) (11.9 ) (2.3 ) (13.1 ) Total operating income (loss) $ 217.6 $ (92.1 ) $ 377.1 $ 112.3 (1) Prior period information has been reclassified as a result of the Company's adoption of ASU 2017-07 on a retrospective basis in 2018. In accordance with the adoption of this guidance, prior year amounts related to the components of net periodic pension and postretirement benefit cost other than service costs have been reclassified from cost of sales and selling, general and administrative expense to other income (expense) within the consolidated statement of operations for all periods presented. Accordingly, expenses of $4.6 , $1.7 , and $1.9 on the Fuselage, Propulsion, and Wing Systems, respectively, were reclassified into segment operating income for the three months ended June 29, 2017 and expenses of $9.0 , $3.7 , and $3.7 on the Fuselage, Propulsion, and Wing Systems, respectively, were reclassified into segment operating income for the six months ended June 29, 2017. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 28, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The 2021 Notes, 2023 Notes, 2026 Notes, and 2028 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Holdings. No subsidiaries are guarantors to any of Spirit’s senior notes. All statements below reflect the 2016 Credit Agreement, on the guarantor structure. The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for: (i) Holdings, as the parent company and parent guarantor to the 2016 Credit Agreement, as further detailed in Note 15, Debt ; (ii) Spirit, as the subsidiary issuer of the 2021 Notes, the 2023 Notes, the 2026 Notes, and the 2028 Notes; (iii) The Company’s subsidiaries, (the “Non-Guarantor Subsidiaries”), on a combined basis; (iv) Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Holdings and the Non-Guarantor Subsidiaries, (b) eliminate the investments in the Company’s subsidiaries, and (c) record consolidating entries; and (v) Holdings and its subsidiaries on a consolidated basis. Condensed Consolidating Statements of Operations For the Three Months Ended June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ — $ 1,654.2 $ 342.3 $ (159.6 ) $ 1,836.9 Operating costs and expenses Cost of sales — 1,400.3 306.5 (159.6 ) 1,547.2 Selling, general and administrative 3.3 53.6 4.1 — 61.0 Research and development — 10.0 1.1 — 11.1 Total operating costs and expenses 3.3 1,463.9 311.7 (159.6 ) 1,619.3 Operating (loss) income (3.3 ) 190.3 30.6 — 217.6 Interest expense and financing fee amortization — (24.6 ) (1.6 ) 1.4 (24.8 ) Other income (expense), net — (12.9 ) 2.0 (1.4 ) (12.3 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.3 ) 152.8 31.0 — 180.5 Income tax benefit (provision) 0.7 (31.2 ) (4.8 ) — (35.3 ) (Loss) income before equity in net income of affiliate and subsidiaries (2.6 ) 121.6 26.2 — 145.2 Equity in net income of affiliate — — — — — Equity in net income of subsidiaries 147.8 26.2 — (174.0 ) — Net income 145.2 147.8 26.2 (174.0 ) 145.2 Other comprehensive (loss) income (30.5 ) (30.5 ) (29.9 ) 60.4 (30.5 ) Comprehensive income (loss) $ 114.7 $ 117.3 $ (3.7 ) $ (113.6 ) $ 114.7 Condensed Consolidating Statements of Operations For the Three Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ — $ 1,608.0 $ 380.5 $ (162.4 ) $ 1,826.1 Operating costs and expenses Cost of sales — 1,687.1 330.5 (162.4 ) 1,855.2 Selling, general and administrative 3.3 40.3 3.6 — 47.2 Impact of severe weather event — 9.1 — — 9.1 Research and development — 6.5 0.2 — 6.7 Total operating costs and expenses 3.3 1,743.0 334.3 (162.4 ) 1,918.2 Operating (loss) income (3.3 ) (135.0 ) 46.2 — (92.1 ) Interest expense and financing fee amortization — (10.1 ) (1.6 ) 1.5 (10.2 ) Other income (expense), net — 11.5 0.5 (1.5 ) 10.5 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.3 ) (133.6 ) 45.1 — (91.8 ) Income tax benefit (provision) 1.4 43.2 (9.6 ) — 35.0 (Loss) income before equity in net income of affiliate and subsidiaries (1.9 ) (90.4 ) 35.5 — (56.8 ) Equity in net income of affiliate — — — — — Equity in net income of subsidiaries (54.9 ) 35.5 — 19.4 — Net income (56.8 ) (54.9 ) 35.5 19.4 (56.8 ) Other comprehensive (loss) income 15.8 15.8 16.2 (32.0 ) 15.8 Comprehensive income (loss) $ (41.0 ) $ (39.1 ) $ 51.7 $ (12.6 ) $ (41.0 ) Condensed Consolidating Statements of Operations For the Six Months Ended June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 3,195.2 $ 712.0 $ (334.2 ) $ 3,573.0 Operating costs and expenses Cost of sales — 2,751.9 640.5 (334.2 ) 3,058.2 Selling, general and administrative 5.7 101.7 9.8 — 117.2 Research and development — 18.6 1.9 — 20.5 Total operating costs and expenses 5.7 2,872.2 652.2 (334.2 ) 3,195.9 Operating (loss) income (5.7 ) 323.0 59.8 — 377.1 Interest expense and financing fee amortization — (35.9 ) (2.8 ) 2.6 (36.1 ) Other income (expense), net — (3.0 ) (2.6 ) (2.6 ) (8.2 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (5.7 ) 284.1 54.4 — 332.8 Income tax benefit (provision) 1.1 (54.9 ) (9.0 ) — (62.8 ) (Loss) income before equity in net income of affiliate and subsidiaries (4.6 ) 229.2 45.4 — 270.0 Equity in net income of affiliate 0.6 — 0.6 (0.6 ) 0.6 Equity in net income of subsidiaries 274.6 45.4 — (320.0 ) — Net income 270.6 274.6 46.0 (320.6 ) 270.6 Other comprehensive (loss) income (15.9 ) (15.9 ) (14.8 ) 30.7 (15.9 ) Comprehensive income (loss) $ 254.7 $ 258.7 $ 31.2 $ (289.9 ) $ 254.7 Condensed Consolidating Statements of Operations For the Six Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 3,128.1 $ 713.6 $ (321.5 ) $ 3,520.2 Operating costs and expenses Cost of sales — 2,968.2 629.5 (321.5 ) 3,276.2 Selling, general and administrative 4.9 88.1 7.1 — 100.1 Impact of severe weather event — 19.9 — — 19.9 Research and development — 10.6 1.1 — 11.7 Total operating costs and expenses 4.9 3,086.8 637.7 (321.5 ) 3,407.9 Operating (loss) income (4.9 ) 41.3 75.9 — 112.3 Interest expense and financing fee amortization — (19.6 ) (3.2 ) 3.1 (19.7 ) Other income (expense), net — 24.3 — (3.1 ) 21.2 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (4.9 ) 46.0 72.7 — 113.8 Income tax (provision) benefit 1.9 (17.2 ) (13.7 ) — (29.0 ) (Loss) income before equity in net income of affiliate and subsidiaries (3.0 ) 28.8 59.0 — 84.8 Equity in net income of affiliate 0.1 — 0.1 (0.1 ) 0.1 Equity in net income of subsidiaries 87.8 59.0 — (146.8 ) — Net income 84.9 87.8 59.1 (146.9 ) 84.9 Other comprehensive (loss) income 19.8 19.8 20.7 (40.5 ) 19.8 Comprehensive income (loss) $ 104.7 $ 107.6 $ 79.8 $ (187.4 ) $ 104.7 Condensed Consolidating Balance Sheet June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 534.7 $ 58.3 $ — $ 593.0 Restricted cash — 97.8 — — 97.8 Accounts receivable, net — 712.2 334.9 (364.2 ) 682.9 Contract assets, short-term — 463.7 34.4 — 498.1 Inventory, net — 601.6 299.2 — 900.8 Other current assets — 50.9 2.5 — 53.4 Total current assets — 2,460.9 729.3 (364.2 ) 2,826.0 Property, plant and equipment, net — 1,595.6 507.0 — 2,102.6 Contract assets, long-term — 55.1 — — 55.1 Pension assets, net — 343.3 20.4 — 363.7 Investment in subsidiary 954.7 666.9 — (1,621.6 ) — Other assets — 360.8 133.1 (229.5 ) 264.4 Total assets $ 954.7 $ 5,482.6 $ 1,389.8 $ (2,215.3 ) $ 5,611.8 Liabilities Accounts payable $ — $ 801.3 $ 400.4 $ (364.2 ) $ 837.5 Accrued expenses — 333.0 34.9 — 367.9 Profit sharing — 25.8 2.7 — 28.5 Current portion of long-term debt — 127.2 0.9 — 128.1 Advance payments, short-term — 106.7 — — 106.7 Contract liabilities, short-term — 114.6 — — 114.6 Forward loss provision, long-term — 156.7 0.4 — 157.1 Deferred revenue and other deferred credits, short-term — 6.5 0.5 — 7.0 Deferred grant income liability - current — — 22.7 — 22.7 Other current liabilities — 83.8 0.2 — 84.0 Total current liabilities — 1,755.6 462.7 (364.2 ) 1,854.1 Long-term debt — 1,850.7 136.6 (128.9 ) 1,858.4 Advance payments, long-term — 173.5 2.3 — 175.8 Pension/OPEB obligation — 39.2 — — 39.2 Contract liabilities, long-term — 362.2 — — 362.2 Forward loss provision, long-term — 94.3 — — 94.3 Deferred grant income liability - non-current — 0.3 27.2 — 27.5 Deferred revenue and other deferred credits — 25.9 2.6 — 28.5 Other liabilities — 306.2 11.5 (100.6 ) 217.1 Total equity 954.7 874.7 746.9 (1,621.6 ) 954.7 Total liabilities and stockholders’ equity $ 954.7 $ 5,482.6 $ 1,389.8 $ (2,215.3 ) $ 5,611.8 Condensed Consolidating Balance Sheet December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 365.1 $ 58.2 $ — $ 423.3 Restricted cash — 2.2 — — 2.2 Accounts receivable, net — 752.6 330.9 (361.3 ) 722.2 Inventory, net — 1,010.0 439.9 — 1,449.9 Other current assets — 50.3 3.2 — 53.5 Total current assets — 2,180.2 832.2 (361.3 ) 2,651.1 Property, plant and equipment, net — 1,585.8 519.5 — 2,105.3 Pension assets, net — 327.2 19.9 — 347.1 Investment in subsidiary 1,801.5 704.4 — (2,505.9 ) — Other assets — 298.2 124.5 (258.4 ) 164.3 Total assets $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Liabilities Accounts payable $ — $ 629.0 $ 425.4 $ (361.3 ) $ 693.1 Accrued expenses — 239.5 29.8 — 269.3 Profit sharing — 103.4 6.1 — 109.5 Current portion of long-term debt — 30.2 0.9 — 31.1 Advance payments, short-term — 100.0 — — 100.0 Deferred revenue and other deferred credits, short-term — 63.6 1.0 — 64.6 Deferred grant income liability - current — — 21.6 — 21.6 Other current liabilities — 324.3 7.5 — 331.8 Total current liabilities — 1,490.0 492.3 (361.3 ) 1,621.0 Long-term debt — 1,110.6 167.1 (157.8 ) 1,119.9 Advance payments, long-term — 231.7 — — 231.7 Pension/OPEB obligation — 40.8 — — 40.8 Deferred grant income liability - non-current — — 39.3 — 39.3 Deferred revenue and other deferred credits — 158.2 2.8 — 161.0 Other liabilities — 343.1 10.1 (100.6 ) 252.6 Total equity 1,801.5 1,721.4 784.5 (2,505.9 ) 1,801.5 Total liabilities and stockholders’ equity $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 320.1 $ 77.1 $ — $ 397.2 Investing activities Purchase of property, plant and equipment — (89.4 ) (20.0 ) — (109.4 ) Other — (0.3 ) 0.6 — 0.3 Net cash used in investing activities — (89.7 ) (19.4 ) — (109.1 ) Financing activities Proceeds from issuance of bonds — 1,300.0 — — 1,300.0 Principal payments of debt — (2.7 ) (0.6 ) — (3.3 ) Payments on term loan — (256.2 ) — (256.2 ) Payments on bonds — (202.6 ) — — (202.6 ) Proceeds (payments) from intercompany debt — 57.2 (57.2 ) — — Debt issuance and financing costs — (16.9 ) — — (16.9 ) Taxes paid related to net share settlement of awards — (15.4 ) — — (15.4 ) Proceeds (payments) from subsidiary for purchase of treasury stock 805.8 (805.8 ) — — — Purchase of treasury stock (805.8 ) — — — (805.8 ) Proceeds (payments) from subsidiary for dividends paid 22.8 (22.8 ) — — — Dividends Paid (22.8 ) — — — (22.8 ) Net cash used in financing activities — 34.8 (57.8 ) — (23.0 ) Effect of exchange rate changes on cash and cash equivalents — — 0.2 — 0.2 Net increase in cash, cash equivalents, and restricted cash for the period — 265.2 0.1 — 265.3 Cash, cash equivalents, and restricted cash, beginning of period — 387.3 58.2 — 445.5 Cash, cash equivalents, and restricted cash, end of period $ — $ 652.5 $ 58.3 $ — $ 710.8 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 255.7 $ 78.3 $ — $ 334.0 Investing activities Purchase of property, plant and equipment — (76.2 ) (11.9 ) — (88.1 ) Proceeds from sale of assets — 0.2 — — 0.2 Other — — — — — Net cash used in investing activities — (76.0 ) (11.9 ) — (87.9 ) Financing activities Principal payments of debt — (0.6 ) (1.2 ) — (1.8 ) Payment on term loan — (6.3 ) — — (6.3 ) Proceeds (payments) from intercompany debt — 39.0 (39.0 ) — — Taxes paid related to net share settlement of awards — (13.1 ) — — (13.1 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Proceeds from financing under the New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 207.6 (207.6 ) — — — Purchase of treasury stock (207.6 ) — — — (207.6 ) Proceeds (payments) from subsidiary for dividends paid 24.0 (24.0 ) — — — Dividends Paid (24.0 ) — — — (24.0 ) Net cash used in financing activities — (205.9 ) (40.2 ) — (246.1 ) Effect of exchange rate changes on cash and cash equivalents — — 3.6 — 3.6 Net (decrease) increase in cash, cash equivalents, and restricted cash for the period — (26.2 ) 29.8 — 3.6 Cash, cash equivalents, and restricted cash, beginning of period — 700.0 17.6 — 717.6 Cash, cash equivalents, and restricted cash, end of period $ — $ 673.8 $ 47.4 $ — $ 721.2 |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Jun. 28, 2018 | |
Subsequent Event [Line Items] | |
Business Combination Disclosure [Text Block] | 24. Asco Acquisition On May 1, 2018, the Company and its wholly-owned subsidiary Spirit Belgium entered into the Purchase Agreement pursuant to which Spirit Belgium will purchase all of the issued and outstanding equity of Asco, a leading supplier of high lift wing structures, mechanical assemblies and major functional components to major OEMs and Tier I suppliers in the global commercial aerospace and military markets, for the translated amount of $650.0 in cash, subject to certain customary closing adjustments, including foreign currency adjustments. The definitive agreement is subject to customary closing conditions, including regulatory approvals and customer consents. The acquisition is expected to close in the second half of 2018 and financial results will not include Asco’s results until the acquisition is closed. Acquisition-related expenses were $12.1 for the three months ended June 28, 2018 and are included in selling, general and administrative costs on the condensed and consolidated statements of income. The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the description set forth in the Company’s Current Report on Form 8-K filed with the SEC on May 2, 2018, and the full text of the Purchase Agreement, which is filed as an exhibit hereto. |
Business Combination (Notes)
Business Combination (Notes) | 6 Months Ended |
Jun. 28, 2018 | |
Business Acquisition [Line Items] | |
Subsequent Events [Text Block] | 25. Subsequent Events 2018 Credit Agreement On July 12, 2018, the Company replaced the 2016 Credit Agreement by entering into a $1,260.0 senior unsecured Second Amended and Restated Credit Agreement among Spirit AeroSystems, Inc., as borrower (“Spirit” or the “Borrower”), the Company, as parent guarantor, the lenders party thereto, Bank of America, N.A., as administrative agent, and the other agents named therein (the “2018 Credit Agreement”), consisting of a $800.0 revolving credit facility (the “2018 Revolver”), a $206.0 term loan A facility (the “2018 Term Loan”) and a $250.0 delayed draw term loan facility (the “Delayed Draw Term Loan”). Each of the 2018 Revolver, the 2018 Term Loan and the Delayed Draw Term Loan matures July 12, 2023, and bears interest, at Spirit’s option, at either LIBOR plus 1.375% or a defined “base rate” plus 0.375%, subject to adjustment to between LIBOR plus 1.125% and LIBOR plus 1.875% (or between base rate plus 0.125% and base rate plus 0.875%, as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc. The principal obligations under the 2018 Term Loan are to be repaid in equal quarterly installments of $2.6 , commencing with the fiscal quarter ending March 31, 2019, and with the balance due at maturity of the 2018 Term Loan. The principal obligations under the Delayed Draw Term Loan are to be repaid in equal quarterly installments of 1.25% of the outstanding principal amount of the Delayed Draw Term Loan as of March 31, 2019, subject to adjustments for any extension of the availability period of the Delayed Draw Term Loan, with the balance due at maturity of the Delayed Draw Term Loan . The Delayed Draw Term Loan is available for Spirit to draw until January 12, 2019, which date may be extended for two additional three-month periods, in each instance subject to Spirit’s payment of a fee to the relevant lenders based on the undrawn Delayed Draw Term Loan commitment. The 2018 Credit Agreement also contains an accordion feature that provides Spirit with the option to increase the 2018 Revolver commitments and/or institute one or more additional term loans by an amount not to exceed $750.0 in the aggregate, subject to the satisfaction of certain conditions and the participation of the lenders. The 2018 Credit Agreement contains customary affirmative and negative covenants, including certain financial covenants that are tested on a quarterly basis. Spirit’s obligations under the 2018 Credit Agreement may be accelerated upon an event of default, which includes non-payment of principal or interest, material breach of a representation or warranty, material breach of a covenant, cross-default to material indebtedness, material judgments, ERISA events, change in control, bankruptcy and invalidity of the guarantee of Spirit’s obligations under the 2018 Credit Agreement made by the Company. Spirit used the proceeds of the 2018 Term Loan to pay off outstanding amounts under the 2016 Credit Agreement and the remainder will be used for general corporate purposes The foregoing description of the 2018 Credit Agreement in this Quarterly Report on Form 10-Q does not purport to be complete and is qualified in its entirety by reference to the full text of the 2018 Credit Agreement, which was filed as an exhibit to the Company's Current Report on Form 8-K filed with the SEC on July 13, 2018. Contractual Terms Clarification On July 6, 2018, Spirit filed a complaint in Washington Superior Court entitled Spirit AeroSystems, Inc. v. The Boeing Company (No. 18-2-16649-7 SEA). Spirit is seeking payment of money that Boeing owes Spirit for product ordered by Boeing and delivered by Spirit. As of the date of filing the complaint, Boeing has underpaid Spirit approximately $64.0. Boeing claims to be withholding money due to customer warranty claims, which are technical in nature and largely relate to designs that predate Spirit’s separation from Boeing in 2005. Spirit disputes its liability for those claims. Spirit is also asking the court to clarify the parties’ contractual obligations, including that Boeing has no right under the parties’ contracts to withhold money presently due based on disputed warranty claims on past orders. |
Business Combination Disclosure [Text Block] | 24. Asco Acquisition On May 1, 2018, the Company and its wholly-owned subsidiary Spirit Belgium entered into the Purchase Agreement pursuant to which Spirit Belgium will purchase all of the issued and outstanding equity of Asco, a leading supplier of high lift wing structures, mechanical assemblies and major functional components to major OEMs and Tier I suppliers in the global commercial aerospace and military markets, for the translated amount of $650.0 in cash, subject to certain customary closing adjustments, including foreign currency adjustments. The definitive agreement is subject to customary closing conditions, including regulatory approvals and customer consents. The acquisition is expected to close in the second half of 2018 and financial results will not include Asco’s results until the acquisition is closed. Acquisition-related expenses were $12.1 for the three months ended June 28, 2018 and are included in selling, general and administrative costs on the condensed and consolidated statements of income. The foregoing description of the Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the description set forth in the Company’s Current Report on Form 8-K filed with the SEC on May 2, 2018, and the full text of the Purchase Agreement, which is filed as an exhibit hereto. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 28, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the Company's financial statements in conformity with GAAP requires management to use estimates and assumptions. The results of these estimates form the basis for making judgments that may affect the reported amounts of assets and liabilities, including the impacts of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Management may make significant judgments when assessing estimated amounts of variable consideration and related constraints, the number of options likely to be exercised, and the standalone selling prices of the Company’s products and services. The Company also estimates the cost of satisfying the performance obligations in its contracts and options that may extend over many years. Cost estimates reflect currently available information and the impact of any changes to cost estimates, based upon the facts and circumstances, are recorded in the period in which they become known. The transaction price for a contract reflects the consideration the Company expects to receive for fully satisfying the performance obligations in the contract. The Company’s contracts with customers are typically for products and services to be provided at fixed stated prices but may also include variable consideration. Variable consideration may include, but is not limited to, unpriced contract modifications, cost sharing provisions, incentives and awards, non-warranty claims and assertions, provisions for non-conformance and rights to return, or other payments to, or receipts from, customers and suppliers. The Company estimates the variable consideration using the expected value or the most likely amount based upon the facts and circumstances, available data and trends and the history of resolving variability with specific customers and suppliers. The Company regularly commences work and incorporates customer-directed changes prior to negotiating pricing terms for engineering work, product modifications, and other statements of work. The Company's contractual terms typically provide for price negotiations after certain customer-directed changes have been accepted by the Company. Prices are estimated until they are contractually agreed upon with the customer. When a contract is modified, the Company evaluates whether additional distinct products and services have been promised and whether allocation of consideration is necessary. If not, the modification is treated as a change to the performance obligations within the existing contract, or otherwise accounted for as a new contract prospectively. The Company allocates the consideration for a contract to the performance obligations on the basis of their relative standalone selling price. The Company estimates the likelihood of the amount of options that the customer is going to exercise when assessing the existence of performance obligations with respect to this allocation or for assessing the impact of loss contracts. The Company typically provides warranties on all the Company's products and services. Generally, warranties are not priced separately because customers cannot purchase them independently of the products or services under contract so they do not create performance obligations. Spirit warranties generally provide assurance to the Company's customers that the products or services meet the specifications in the contract. In the event that there is a warranty claim because of a covered design, material or workmanship issue, the Company may be required to redesign or modify the product, offer concessions, and/or pay the customer for repairs or perform the repair. Provisions for estimated expenses related to design, service, and product warranties and certain extraordinary rework are made at the time products are sold. These costs are accrued at the time of the sale and are recorded as unallocated cost of sales. These estimates are established using historical information on the nature, frequency, and the cost experience of warranty claims, including the experience of industry peers. In the case of new development products or new customers, Spirit also considers factors including the warranty experience of other entities in the same business, management judgment, and the type and nature of the new product or new customer, among others. Actual results could differ from those estimates and assumptions. |
Revenue Recognition, Policy [Policy Text Block] | Revenues and Profit Recognition Substantially all of the Company’s revenues are from long-term supply agreements with Boeing, Airbus, and other aerospace manufacturers. The Company participates in its customers’ programs by providing design, development, manufacturing, fabrication, and support services for major aerostructures in the fuselage, propulsion, and wing segments. During the early stages of a program, this frequently involves nonrecurring design and development services, including tooling. As the program matures, the Company provides recurring manufacturing of products in accordance with customer design and schedule requirements. Many contracts include clauses that provide sole supplier status to the Company for the duration of the program’s life (including derivatives). The Company's long-term supply agreements typically include fixed price volume-based terms and require the satisfaction of performance obligations for the duration of the program’s life. The identification of an accounting contract with a customer and the related promises require an assessment of each party’s rights and obligations regarding the products or services to be transferred, including an evaluation of termination clauses and presently enforceable rights and obligations. In general, these long-term supply agreements are legally governed by Master Supply Agreements (or General Terms and Agreements) together with special business provisions (or work package agreements), which define specific program requirements. Purchase orders (or authorizations to proceed) are issued under these agreements to reflect presently enforceable rights and obligations for the units of products and services being purchased. The units for accounting purposes (“accounting contract”) is typically determined by the purchase orders. Revenue is recognized when the Company has a contract with presently enforceable rights and obligations, including an enforceable right to payment for work performed. These agreements may lead to continuing sales of more than twenty years. Customers generally contract with the Company for requirements in a segment relating to a specific program, and the Company’s performance obligations consist of a wide range of engineering design services and manufactured structural components, as well as spare parts and repairs for OEMs. A single program may result in multiple contracts for accounting purposes, and within the respective contracts, non-recurring work elements and recurring work elements may result in multiple performance obligations. The Company generally contracts directly with its customers and is the principal in all current contracts. Management considers a number of factors when determining the existence of a contract and the related performance obligations that include, but are not limited to, the nature and substance of the business exchange, the contractual terms and conditions, the promised products and services, the termination provisions in the contract, including the presently enforceable rights and obligations of the parties to the contract, the nature and execution of the customer’s ordering process and how the Company is authorized to perform work, whether the promised products and services are distinct or capable of being distinct within the context of the contract, as well as how and when products and services are transferred to the customer. Revenue is recognized when, or as, control of promised products or services transfers to a customer and is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. Revenue is recognized over time as work progresses when the Company is entitled to the reimbursement of costs plus a reasonable profit for work performed for which the Company has no alternate use. For these performance obligations that are satisfied over time, the Company generally recognizes revenue using an input method with revenue amounts being recognized proportionately as costs are incurred relative to the total expected costs to satisfy the performance obligation. The Company believes that costs incurred as a portion of total estimated costs is an appropriate measure of progress towards satisfaction of the performance obligation since this measure reasonably depicts the progress of the work effort. Revenue for performance obligations that are not recognized over time are recognized at the point in time when control transfers to the customer (which is generally upon delivery). For performance obligations that are satisfied at a point in time, the Company evaluates the point in time when the customer can direct the use of, and obtain the benefits from, the products and services. Shipping and handling costs are not considered performance obligations and are included in cost of sales as incurred. The transaction price for a contract reflects the consideration the Company expects to receive for fully satisfying the performance obligations in the contract. The Company’s current contracts do not include any significant financing components because the timing of the transfer of the underlying products and services under contract are at the customers’ discretion. The Company's contracts with customers generally require payment under normal commercial terms after delivery. Payment terms are typically within 30 to 120 days of delivery. The total transaction price is allocated to each of the identified performance obligations using the relative standalone selling price to reflect the amount the Company expects to be entitled for transferring the promised products and services to the customer. A majority of the Company’s agreements with customers include options for future purchases. For the purposes of allocating transaction price, the Company assesses, based upon the facts and circumstances of the business arrangement, the amount and likelihood of options to be exercised that may result in deferral of revenue to future contracts and options. Deferred revenues are recognized as, or when, the underlying future performance obligations are satisfied. Standalone selling price is the price at which the Company would sell a promised good or service separately to a customer. Standalone selling prices are established at contract inception and subsequent changes in transaction price are allocated on the same basis as at contract inception. Standalone selling prices for the Company’s products and services are generally not observable and the Company uses the “Expected Cost plus a Margin” approach to determine standalone selling price. Expected costs are typically derived from the available periodic forecast information. If a contract modification changes the overall transaction price of an existing contract, the Company allocates the new transaction price on the basis of the relative standalone selling prices of the performance obligations and cumulative adjustments, if any, are recorded in the current period. The Company also identifies and estimates variable consideration for contractual provisions such as unpriced contract modifications, cost sharing provisions, incentives and awards, non-warranty claims and assertions, provisions for non-conformance and rights to return, or other payments to, or receipts from, customers and suppliers. The timing of satisfaction of performance obligations and actual receipt of payment from a customer may differ and affects the balances of the contract assets and liabilities. For contracts that are deemed to be loss contracts, the Company establishes forward loss reserves for total estimated costs that are in excess of total estimated consideration in the period in which they become known. These reserves are based on estimates for accounting contracts, plus options that the Company believes are likely to be exercised. The Company records forward loss reserves for all performance obligations in the aggregate for the accounting contract. Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, and determining whether the accounting contract is a short duration or long duration contract. Short duration contracts are those for which the performance obligations are expected to be fully satisfied within 12 months of contract origination. The number of units and the production schedule is used to make this assessment. Additionally, the Company disaggregates revenue based upon the location where products and services are transferred to the customer. The Company’s principal operating segments and related revenue are noted in Note 22, Segment Information . The following table disaggregates revenues by the method of performance obligation satisfaction: For the Three Months Ended For the Six Months Ended Revenue June 28, June 28, Contracts with performance obligations satisfied over time $ 1,433.6 $ 2,756.0 Contracts with performance obligations satisfied at a point in time 403.3 817.0 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Months Ended Customer June 28, June 28, Boeing $ 1,456.4 $ 2,796.8 Airbus 290.6 605.1 Other 89.9 171.1 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Months Ended Location June 28, June 28, United States $ 1,523.5 $ 2,924.4 International United Kingdom 193.6 392.1 Other 119.8 256.5 Total International 313.4 648.6 Total Revenue $ 1,836.9 $ 3,573.0 |
Inventory, Policy [Policy Text Block] | Inventory Raw materials are stated at lower of cost (principally on an actual or average cost basis) or market. Production costs for contracts, including costs expected to be recovered on specific anticipated contracts (satisfaction of performance obligations that have commenced because the Company expects the customer to exercise options), are classified as work-in-process and include direct material, labor, overhead, and purchases. Revenue and related cost of sales are recognized as the performance obligations are satisfied. Typically, anticipated contracts materialize and the related performance obligations are satisfied within 6-12 months. These costs are evaluated for impairment periodically and capitalized costs for which anticipated contracts do not materialize are written off in the period in which it becomes known. Work-in-process includes $129.9 in costs incurred in anticipation of specific future contracts and no impairments were charged for the period ending June 28, 2018 . See Note 9, Inventory . |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 28, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | . New Accounting Pronouncements In February 2018, the FASB issued ASU No. 2018-02 (“ASU 2018-02”), Income Statement - Reporting Comprehensive Income (Topic 220) . The guidance in ASU 2018-02 allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 (the “TCJA”) from accumulated other comprehensive income into retained earnings. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company does not expect the adoption of this standard to have a material effect to the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which expands component and fair value hedging, specifies the presentation of the effects of hedging instruments, and eliminates the separate measurement and presentation of hedge ineffectiveness. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU 2017-12 as of January 1, 2018. The adoption of ASU 2017-12 did not have a material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). This update requires recognition of lease assets and lease liabilities on the balance sheet of lessees. ASU 2016-02 is effective for fiscal years and interim reporting periods within those years beginning after December 15, 2018. Early adoption is permitted. ASU 2016-02 requires a modified retrospective transition approach and provides certain optional transition relief. The Company is progressing through its implementation plan and continue to evaluate the impact of the standard on our business processes, accounting systems, controls and financial statement disclosures, however the Company does not expect the adoption of this standard to have a material effect to the Company’s consolidated financial statements. |
Adoption of New Standard (Table
Adoption of New Standard (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Item Effected [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements [Table Text Block] | For the Three Months Ended For the Six As Reported Impact of Adoption of As Adjusted As Reported Impact of Adoption of As Adjusted June 28, ASC Topic 606 June 28, June 28, ASC Topic 606 June 28, Revenue $ 1,836.9 $ 75.2 $ 1,912.1 $ 3,573.0 $ 90.7 $ 3,663.7 Cost of sales 1,547.2 132.2 1,679.4 3,058.2 139.5 3,197.7 Income tax provision (35.3 ) 11.6 (23.7 ) (62.8 ) 10.3 (52.5 ) Net income 145.2 (45.4 ) 99.8 270.6 (38.5 ) 232.1 Earnings per share Basic $ 1.32 $ (0.41 ) $ 0.91 $ 2.43 $ (0.35 ) $ 2.08 Diluted $ 1.31 $ (0.41 ) $ 0.90 $ 2.40 $ (0.34 ) $ 2.06 As Reported Impact of Adoption of As Adjusted June 28, ASC Topic 606 June 28, Assets Accounts receivable, net $ 682.9 $ 115.1 $ 798.0 Contract assets, short-term 498.1 (498.1 ) — Inventory, net 900.8 509.1 1,409.9 Other current assets 53.4 31.0 84.4 Contract assets, long-term 55.1 (55.1 ) — Other assets 264.4 (81.8 ) 182.6 Total assets 5,611.8 20.2 5,632.0 Liabilities Accrued expenses 367.9 (5.8 ) 362.1 Contract liabilities, short-term 114.6 (114.6 ) — Forward loss provision, short-term 157.1 (157.1 ) — Deferred revenue and other deferred credits, short-term 7.0 100.1 107.1 Other current liabilities 84.0 318.8 402.8 Contract liabilities, long-term 362.2 (362.2 ) — Forward loss provision, long-term 94.3 (94.3 ) — Deferred revenue and other deferred credits 28.5 99.5 128.0 Stockholders' Equity Accumulated other comprehensive loss (144.4 ) (2.2 ) (146.6 ) Retained earnings 2,392.5 238.0 2,630.5 Total liabilities and equity 5,611.8 20.2 5,632.0 |
Accounting Standards Update 2017-07 [Member] | |
Item Effected [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | For the Three Months Ended For the Six Months Ended As Reported Impact of Adoption of As Adjusted As Reported Impact of Adoption of As Adjusted June 29, ASU 2017-07 June 29, June 29, ASU 2017-07 June 29, Cost of sales $ 1,847.0 $ 8.2 $ 1,855.2 $ 3,259.8 $ 16.4 $ 3,276.2 Selling, general and administrative 46.1 1.1 47.2 98.0 2.1 100.1 Other income, net 1.2 9.3 10.5 2.7 18.5 21.2 |
Accounting Standards Update 2016-18 [Member] | |
Item Effected [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Reconciliation of Cash, Cash Equivalents, and Restricted Cash: For the Six Months Ended June 28, June 29, Cash and cash equivalents, beginning of the period $ 423.3 $ 697.7 Restricted cash, short-term, beginning of the period 2.2 — Restricted cash, long-term, beginning of the period 20.0 19.9 Cash, cash equivalents, and restricted cash, beginning of the period $ 445.5 $ 717.6 Cash and cash equivalents, end of the period $ 593.0 $ 696.9 Restricted cash, short-term, end of the period 97.8 4.4 Restricted cash, long-term, end of the period 20.0 19.9 Cash, cash equivalents, and restricted cash, end of the period $ 710.8 $ 721.2 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |
Jun. 28, 2018 | Jun. 29, 2017 | |
Disaggregation of Revenue [Abstract] | ||
Disaggregation of Revenue [Table Text Block] | The following table disaggregates revenues by the method of performance obligation satisfaction: For the Three Months Ended For the Six Months Ended Revenue June 28, June 28, Contracts with performance obligations satisfied over time $ 1,433.6 $ 2,756.0 Contracts with performance obligations satisfied at a point in time 403.3 817.0 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Months Ended Customer June 28, June 28, Boeing $ 1,456.4 $ 2,796.8 Airbus 290.6 605.1 Other 89.9 171.1 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Months Ended Location June 28, June 28, United States $ 1,523.5 $ 2,924.4 International United Kingdom 193.6 392.1 Other 119.8 256.5 Total International 313.4 648.6 Total Revenue $ 1,836.9 $ 3,573.0 | For the Three Months Ended For the Six Months Ended Revenue June 28, June 28, Contracts with performance obligations satisfied over time $ 1,433.6 $ 2,756.0 Contracts with performance obligations satisfied at a point in time 403.3 817.0 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue by major customer: For the Three Months Ended For the Six Months Ended Customer June 28, June 28, Boeing $ 1,456.4 $ 2,796.8 Airbus 290.6 605.1 Other 89.9 171.1 Total Revenue $ 1,836.9 $ 3,573.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Three Months Ended For the Six Months Ended Location June 28, June 28, United States $ 1,523.5 $ 2,924.4 International United Kingdom 193.6 392.1 Other 119.8 256.5 Total International 313.4 648.6 Total Revenue $ 1,836.9 $ 3,573.0 |
Changes in Estimates Changes in
Changes in Estimates Changes in Estimates (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Changes in estimates are summarized below: For the Three Months Ended For the Six Months Ended Changes in Estimates June 28, 2018 June 29, 2017 June 28, 2018 June 29, 2017 Favorable (Unfavorable) Cumulative Catch-up Adjustment by Segment Fuselage Systems $ 5.7 $ 0.7 $ (2.5 ) $ 3.3 Propulsion Systems 3.4 6.1 1.4 3.8 Wing Systems (1.6 ) 17.5 0.7 22.0 Total Favorable (Unfavorable) Cumulative Catch-up Adjustment $ 7.5 $ 24.3 $ (0.4 ) $ 29.1 Changes in Estimate on Loss Programs (Forward Loss) by Segment Fuselage Systems $ 10.1 $ (231.7 ) $ (1.5 ) $ (237.6 ) Propulsion Systems 4.3 (48.0 ) 0.8 (48.0 ) Wing Systems 3.0 (73.8 ) (0.5 ) (72.0 ) Total Change in Estimate on Loss Programs (Forward Loss) $ 17.4 $ (353.5 ) $ (1.2 ) $ (357.6 ) Total Change in Estimate $ 24.9 $ (329.2 ) $ (1.6 ) $ (328.5 ) EPS Impact (diluted per share based upon statutory rates) $ 0.18 $ (1.75 ) $ (0.01 ) $ (1.73 ) |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Accounts Receivable, Net, Current [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consists of the following: June 28, December 31, Trade receivables $ 654.9 $ 710.5 Other 28.8 13.0 Less: allowance for doubtful accounts (0.8 ) (1.3 ) Accounts receivable, net $ 682.9 $ 722.2 |
Performance Obligations (Tables
Performance Obligations (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining in 2018 2019 2020 2021 and After Unsatisfied performance obligations $2,808.3 $6,340.3 $4,478.2 $1,671.4 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | Inventories are summarized as follows: June 28, December 31, Raw materials $ 243.5 $ 321.0 Work-in-process (1) 604.5 854.4 Finished goods 11.2 35.8 Product inventory 859.2 1,211.2 Capitalized pre-production (2) 41.6 78.9 Deferred production (3) — 640.3 Forward loss provision (4) — (480.5 ) Total inventory, net $ 900.8 $ 1,449.9 (1) For the period ended June 28, 2018 , work-in-process inventory includes direct labor, direct material, overhead and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized using the input method. For the period ended December 31, 2017, work-in-process included direct labor, direct material, overhead and purchases on all contracts that were accounted for using the units of delivery method. For the period ended June 28, 2018 , work-in-process inventory includes $129.9 of costs incurred in anticipation of specific contracts and no impairments were recorded in the period. (2) As part of the Transition Adjustment, $43.0 (pretax) of pre-production costs on the A350 XWB were eliminated. (3) As part of the Transition Adjustment, $640.3 (pretax) of deferred production was eliminated. For the period ended December 31, 2017, the balance contained $632.8 and $129.3 on the A350 XWB and Rolls-Royce BR725 programs, respectively. (4) For the period ended June 28, 2018 , forward loss reserves of $251.4 have been classified as a liability in the condensed consolidated balance sheet. For the period ended December 31, 2017, the forward loss reserve for the B787 program exceeded the program's inventory balance. This excess was classified as a liability and reported in other current liabilities on the balance sheet in the amount of $254.5 as of December 31, 2017. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, plant and equipment, net consists of the following: June 28, December 31, Land $ 15.5 $ 15.9 Buildings (including improvements) 802.7 764.1 Machinery and equipment 1,578.1 1,529.9 Tooling 1,021.5 1,013.9 Capitalized software 269.2 263.3 Construction-in-progress 203.9 213.4 Total 3,890.9 3,800.5 Less: accumulated depreciation (1,788.3 ) (1,695.2 ) Property, plant and equipment, net $ 2,102.6 $ 2,105.3 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Other Assets, Noncurrent [Abstract] | |
Other Assets | Other assets are summarized as follows: June 28, December 31, Intangible assets Patents $ 1.9 $ 1.9 Favorable leasehold interests 6.3 6.3 Total intangible assets 8.2 8.2 Less: Accumulated amortization - patents (1.9 ) (1.8 ) Accumulated amortization - favorable leasehold interest (4.7 ) (4.6 ) Intangible assets, net 1.6 1.8 Deferred financing Deferred financing costs 39.5 39.5 Less: Accumulated amortization - deferred financing costs (34.5 ) (33.7 ) Deferred financing costs, net 5.0 5.8 Other Goodwill - Europe 2.4 2.5 Equity in net assets of affiliates — 4.7 Supply agreements (1) 17.4 19.9 Restricted cash - collateral requirements 20.0 20.0 Deferred Tax Asset - non-current 173.7 72.5 Other 44.3 37.1 Total $ 264.4 $ 164.3 (1) Under two agreements, certain payments accounted for as consideration paid by the Company to a customer and a supplier are being amortized as reductions to net revenues. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
Carrying Amount And Estimated Fair Value Of Long Term Debt | The following table presents the carrying amount and estimated fair value of long-term debt: June 28, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Senior unsecured term loan A (including current portion) $ 205.4 $ 205.9 (2) $ 460.7 $ 461.9 (2) Senior unsecured notes due 2021 298.2 298.8 (1) — — (1) Senior unsecured notes due 2022 95.9 98.5 (1) 294.8 304.6 (1) Senior unsecured notes due 2023 297.7 299.3 (1) — — (1) Senior unsecured notes due 2026 297.4 286.7 (1) 297.2 301.0 (1) Senior unsecured notes due 2028 693.2 699.7 (1) — — (1) Total $ 1,887.8 $ 1,888.9 $ 1,052.7 $ 1,067.5 (1) Level 1 Fair Value hierarchy (2) Level 2 Fair Value hierarchy |
Derivative and Hedging Activi41
Derivative and Hedging Activities (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate swaps |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Debt Disclosure [Abstract] | |
Long Term Debt And Capital Lease Obligations Current And Non Current | Total debt shown on the balance sheet is comprised of the following: June 28, 2018 December 31, 2017 Current Noncurrent Current Noncurrent Senior unsecured term loan A $ 24.9 $ 180.5 $ 24.9 $ 435.8 Senior notes due 2021 — 298.2 — — Senior notes due 2022 95.9 — — 294.8 Senior notes due 2023 — 297.7 — — Senior notes due 2026 — 297.4 — 297.2 Senior notes due 2028 — 693.2 — — Present value of capital lease obligations 6.3 35.4 5.2 33.6 Other 1.0 56.0 1.0 58.5 Total $ 128.1 $ 1,858.4 $ 31.1 $ 1,119.9 |
Pension and Other Post-Retire43
Pension and Other Post-Retirement Benefits (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Defined Benefit Plan [Abstract] | |
Change in projected benefit obligations | . Pension and Other Post-Retirement Benefits Defined Benefit Plans For the Three Months Ended For the Six Months Ended Components of Net Periodic Pension Expense/(Income) June 28, June 29, June 28, June 29, Service cost $ 0.2 $ 0.3 $ 0.4 $ 0.5 Interest cost 8.9 9.3 18.2 18.9 Expected return on plan assets (17.4 ) (18.1 ) (34.9 ) (36.4 ) Net periodic pension (income) expense $ (8.3 ) $ (8.5 ) $ (16.3 ) $ (17.0 ) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |
Basic and Diluted Earnings per share | The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended June 28, 2018 June 29, 2017 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common stockholders $ 145.1 110.0 $ 1.32 $ (56.8 ) 118.2 $ (0.48 ) Income allocated to participating securities 0.1 0.1 — — Net income $ 145.2 $ (56.8 ) Diluted potential common shares 0.9 — Diluted EPS Net income $ 145.2 111.0 $ 1.31 $ (56.8 ) 118.2 $ (0.48 ) For the Six Months Ended June 28, 2018 June 29, 2017 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS Income available to common shareholders $ 270.4 111.4 $ 2.43 $ 84.8 118.8 $ 0.71 Income allocated to participating securities 0.2 0.1 0.1 0.1 Net income $ 270.6 $ 84.9 Diluted potential common shares 1.1 — Diluted EPS Net income $ 270.6 112.6 $ 2.40 $ 84.9 118.9 $ 0.71 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss is summarized by component as follows: As of As of June 28, 2018 December 31, 2017 Pension $ (75.9 ) $ (75.9 ) SERP/Retiree medical 16.5 17.7 Foreign currency impact on long term intercompany loan (15.5 ) (14.2 ) Currency translation adjustment (69.5 ) (56.1 ) Total accumulated other comprehensive loss $ (144.4 ) $ (128.5 ) |
Equity Accelerated Share Repurc
Equity Accelerated Share Repurchase (Tables) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 28, 2018 | Jun. 28, 2018 | |
Accelerated Share Repurchases [Line Items] | ||
Accelerated Share Repurchases [Table Text Block] | Accelerated Share Repurchase Program In May 2018, the Company entered into accelerated share repurchase agreements (“ASRs”) with Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC (collectively, the “Dealers”) to repurchase in total $725.0 of the Company’s class A common stock. Under the ASRs, the Company delivered a total of $725.0 in cash to the Dealers and received a total of 7.3 million shares which represented approximately 85% of the total common shares expected to be repurchased under the ASRs based on the closing price on the day the Company entered into the ASRs. The final number of shares to be repurchased and the final average price per share under the ASRs will depend on the volume-weighted average price of the Company’s class A common stock, less a discount, during the term of the agreement. Purchases under the ASRs are expected to be completed in the fourth quarter of 2018. For further information regarding the ASRs, refer to the Company's Current Report on Form 8-K filed with the SEC on May 30, 2018. The Company accounts for the ASRs as two separate transactions: (i) as shares of reacquired common stock for the shares delivered to us upon effectiveness of the ASRs and (ii) as a forward contract indexed to our own common stock for the undelivered shares. The initial delivery of shares is included in treasury stock at cost and results in an immediate reduction of the outstanding shares used to calculate the weighted average common shares outstanding for basic and diluted earnings per share. The forward contracts indexed to our own common stock meet the criteria for equity classification, and these amounts are initially recorded in additional paid-in capital and reclassified to treasury stock upon completion of the ASRs. | |
Accelerated Share Repurchase - Initial Share Delivery [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Treasury Stock, Shares, Acquired | 7,300 | |
Accelerated Share Repurchase Program [Member] | ||
Accelerated Share Repurchases [Line Items] | ||
Treasury Stock, Value, Acquired, Cost Method | $ 725 |
Commitments, Contingencies an46
Commitments, Contingencies and Guarantees (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Commitments Contingencies And Guarantees [Abstract] | |
Service warranty roll forward | The following is a roll forward of the service warranty and extraordinary rework balance at June 28, 2018 : Balance, December 31, 2017 $ 166.4 Charges to costs and expenses 2.9 Payouts (2.7 ) Exchange rate (0.3 ) Balance, June 28, 2018 $ 166.3 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income Expense Net | Other (expense) income, net is summarized as follows: For the Three Months Ended For the Six Months Ended June 28, June 29, June 28, June 29, Kansas Development Finance Authority bond $ 0.9 $ 0.7 $ 2.1 $ 1.7 Rental and miscellaneous income 0.3 — (1.3 ) 0.1 Interest income 1.7 1.5 2.9 2.5 Foreign currency losses 1.6 0.5 (1.5 ) (0.1 ) Loss on sale of accounts receivable (4.6 ) — (8.3 ) — Pension Income 8.7 9.3 17.1 18.5 Loss on foreign currency forward contract and interest rate swaps (20.9 ) (1.5 ) (19.2 ) (1.5 ) Total $ (12.3 ) $ 10.5 $ (8.2 ) $ 21.2 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | The following table shows segment revenues and operating income for the three and six months ended June 28, 2018 , and June 29, 2017 : Three Months Ended Six Months Ended June 28, June 29, June 28, June 29, Segment Revenues Fuselage Systems $ 1,029.7 $ 938.2 $ 1,992.4 $ 1,855.1 Propulsion Systems 422.7 436.5 817.2 842.8 Wing Systems 383.0 450.5 760.0 819.5 All Other 1.5 0.9 3.4 2.8 $ 1,836.9 $ 1,826.1 $ 3,573.0 $ 3,520.2 Segment Operating Income (Loss) Fuselage Systems (1) $ 163.2 $ (84.8 ) $ 282.9 $ 61.2 Propulsion Systems (1) 74.8 39.3 127.7 111.0 Wing Systems (1) 56.7 28.9 107.5 85.6 All Other — (0.6 ) (1.0 ) (0.7 ) 294.7 (17.2 ) 517.1 257.1 SG&A (61.0 ) (47.2 ) (117.2 ) (100.1 ) Impact of severe weather event — (9.1 ) — (19.9 ) Research and development (11.1 ) (6.7 ) (20.5 ) (11.7 ) Unallocated cost of sales (5.0 ) (11.9 ) (2.3 ) (13.1 ) Total operating income (loss) $ 217.6 $ (92.1 ) $ 377.1 $ 112.3 (1) Prior period information has been reclassified as a result of the Company's adoption of ASU 2017-07 on a retrospective basis in 2018. In accordance with the adoption of this guidance, prior year amounts related to the components of net periodic pension and postretirement benefit cost other than service costs have been reclassified from cost of sales and selling, general and administrative expense to other income (expense) within the consolidated statement of operations for all periods presented. Accordingly, expenses of $4.6 , $1.7 , and $1.9 on the Fuselage, Propulsion, and Wing Systems, respectively, were reclassified into segment operating income for the three months ended June 29, 2017 and expenses of $9.0 , $3.7 , and $3.7 on the Fuselage, Propulsion, and Wing Systems, respectively, were reclassified into segment operating income for the six months ended June 29, 2017. |
Condensed Consolidating Finan49
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 28, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Income Statement | Condensed Consolidating Statements of Operations For the Three Months Ended June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ — $ 1,654.2 $ 342.3 $ (159.6 ) $ 1,836.9 Operating costs and expenses Cost of sales — 1,400.3 306.5 (159.6 ) 1,547.2 Selling, general and administrative 3.3 53.6 4.1 — 61.0 Research and development — 10.0 1.1 — 11.1 Total operating costs and expenses 3.3 1,463.9 311.7 (159.6 ) 1,619.3 Operating (loss) income (3.3 ) 190.3 30.6 — 217.6 Interest expense and financing fee amortization — (24.6 ) (1.6 ) 1.4 (24.8 ) Other income (expense), net — (12.9 ) 2.0 (1.4 ) (12.3 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.3 ) 152.8 31.0 — 180.5 Income tax benefit (provision) 0.7 (31.2 ) (4.8 ) — (35.3 ) (Loss) income before equity in net income of affiliate and subsidiaries (2.6 ) 121.6 26.2 — 145.2 Equity in net income of affiliate — — — — — Equity in net income of subsidiaries 147.8 26.2 — (174.0 ) — Net income 145.2 147.8 26.2 (174.0 ) 145.2 Other comprehensive (loss) income (30.5 ) (30.5 ) (29.9 ) 60.4 (30.5 ) Comprehensive income (loss) $ 114.7 $ 117.3 $ (3.7 ) $ (113.6 ) $ 114.7 Condensed Consolidating Statements of Operations For the Three Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenue $ — $ 1,608.0 $ 380.5 $ (162.4 ) $ 1,826.1 Operating costs and expenses Cost of sales — 1,687.1 330.5 (162.4 ) 1,855.2 Selling, general and administrative 3.3 40.3 3.6 — 47.2 Impact of severe weather event — 9.1 — — 9.1 Research and development — 6.5 0.2 — 6.7 Total operating costs and expenses 3.3 1,743.0 334.3 (162.4 ) 1,918.2 Operating (loss) income (3.3 ) (135.0 ) 46.2 — (92.1 ) Interest expense and financing fee amortization — (10.1 ) (1.6 ) 1.5 (10.2 ) Other income (expense), net — 11.5 0.5 (1.5 ) 10.5 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (3.3 ) (133.6 ) 45.1 — (91.8 ) Income tax benefit (provision) 1.4 43.2 (9.6 ) — 35.0 (Loss) income before equity in net income of affiliate and subsidiaries (1.9 ) (90.4 ) 35.5 — (56.8 ) Equity in net income of affiliate — — — — — Equity in net income of subsidiaries (54.9 ) 35.5 — 19.4 — Net income (56.8 ) (54.9 ) 35.5 19.4 (56.8 ) Other comprehensive (loss) income 15.8 15.8 16.2 (32.0 ) 15.8 Comprehensive income (loss) $ (41.0 ) $ (39.1 ) $ 51.7 $ (12.6 ) $ (41.0 ) |
Condensed Balance Sheet | Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 3,195.2 $ 712.0 $ (334.2 ) $ 3,573.0 Operating costs and expenses Cost of sales — 2,751.9 640.5 (334.2 ) 3,058.2 Selling, general and administrative 5.7 101.7 9.8 — 117.2 Research and development — 18.6 1.9 — 20.5 Total operating costs and expenses 5.7 2,872.2 652.2 (334.2 ) 3,195.9 Operating (loss) income (5.7 ) 323.0 59.8 — 377.1 Interest expense and financing fee amortization — (35.9 ) (2.8 ) 2.6 (36.1 ) Other income (expense), net — (3.0 ) (2.6 ) (2.6 ) (8.2 ) (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (5.7 ) 284.1 54.4 — 332.8 Income tax benefit (provision) 1.1 (54.9 ) (9.0 ) — (62.8 ) (Loss) income before equity in net income of affiliate and subsidiaries (4.6 ) 229.2 45.4 — 270.0 Equity in net income of affiliate 0.6 — 0.6 (0.6 ) 0.6 Equity in net income of subsidiaries 274.6 45.4 — (320.0 ) — Net income 270.6 274.6 46.0 (320.6 ) 270.6 Other comprehensive (loss) income (15.9 ) (15.9 ) (14.8 ) 30.7 (15.9 ) Comprehensive income (loss) $ 254.7 $ 258.7 $ 31.2 $ (289.9 ) $ 254.7 Condensed Consolidating Statements of Operations For the Six Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Net revenues $ — $ 3,128.1 $ 713.6 $ (321.5 ) $ 3,520.2 Operating costs and expenses Cost of sales — 2,968.2 629.5 (321.5 ) 3,276.2 Selling, general and administrative 4.9 88.1 7.1 — 100.1 Impact of severe weather event — 19.9 — — 19.9 Research and development — 10.6 1.1 — 11.7 Total operating costs and expenses 4.9 3,086.8 637.7 (321.5 ) 3,407.9 Operating (loss) income (4.9 ) 41.3 75.9 — 112.3 Interest expense and financing fee amortization — (19.6 ) (3.2 ) 3.1 (19.7 ) Other income (expense), net — 24.3 — (3.1 ) 21.2 (Loss) income before income taxes and equity in net income of affiliate and subsidiaries (4.9 ) 46.0 72.7 — 113.8 Income tax (provision) benefit 1.9 (17.2 ) (13.7 ) — (29.0 ) (Loss) income before equity in net income of affiliate and subsidiaries (3.0 ) 28.8 59.0 — 84.8 Equity in net income of affiliate 0.1 — 0.1 (0.1 ) 0.1 Equity in net income of subsidiaries 87.8 59.0 — (146.8 ) — Net income 84.9 87.8 59.1 (146.9 ) 84.9 Other comprehensive (loss) income 19.8 19.8 20.7 (40.5 ) 19.8 Comprehensive income (loss) $ 104.7 $ 107.6 $ 79.8 $ (187.4 ) $ 104.7 Condensed Consolidating Balance Sheet June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 534.7 $ 58.3 $ — $ 593.0 Restricted cash — 97.8 — — 97.8 Accounts receivable, net — 712.2 334.9 (364.2 ) 682.9 Contract assets, short-term — 463.7 34.4 — 498.1 Inventory, net — 601.6 299.2 — 900.8 Other current assets — 50.9 2.5 — 53.4 Total current assets — 2,460.9 729.3 (364.2 ) 2,826.0 Property, plant and equipment, net — 1,595.6 507.0 — 2,102.6 Contract assets, long-term — 55.1 — — 55.1 Pension assets, net — 343.3 20.4 — 363.7 Investment in subsidiary 954.7 666.9 — (1,621.6 ) — Other assets — 360.8 133.1 (229.5 ) 264.4 Total assets $ 954.7 $ 5,482.6 $ 1,389.8 $ (2,215.3 ) $ 5,611.8 Liabilities Accounts payable $ — $ 801.3 $ 400.4 $ (364.2 ) $ 837.5 Accrued expenses — 333.0 34.9 — 367.9 Profit sharing — 25.8 2.7 — 28.5 Current portion of long-term debt — 127.2 0.9 — 128.1 Advance payments, short-term — 106.7 — — 106.7 Contract liabilities, short-term — 114.6 — — 114.6 Forward loss provision, long-term — 156.7 0.4 — 157.1 Deferred revenue and other deferred credits, short-term — 6.5 0.5 — 7.0 Deferred grant income liability - current — — 22.7 — 22.7 Other current liabilities — 83.8 0.2 — 84.0 Total current liabilities — 1,755.6 462.7 (364.2 ) 1,854.1 Long-term debt — 1,850.7 136.6 (128.9 ) 1,858.4 Advance payments, long-term — 173.5 2.3 — 175.8 Pension/OPEB obligation — 39.2 — — 39.2 Contract liabilities, long-term — 362.2 — — 362.2 Forward loss provision, long-term — 94.3 — — 94.3 Deferred grant income liability - non-current — 0.3 27.2 — 27.5 Deferred revenue and other deferred credits — 25.9 2.6 — 28.5 Other liabilities — 306.2 11.5 (100.6 ) 217.1 Total equity 954.7 874.7 746.9 (1,621.6 ) 954.7 Total liabilities and stockholders’ equity $ 954.7 $ 5,482.6 $ 1,389.8 $ (2,215.3 ) $ 5,611.8 Condensed Consolidating Balance Sheet December 31, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 365.1 $ 58.2 $ — $ 423.3 Restricted cash — 2.2 — — 2.2 Accounts receivable, net — 752.6 330.9 (361.3 ) 722.2 Inventory, net — 1,010.0 439.9 — 1,449.9 Other current assets — 50.3 3.2 — 53.5 Total current assets — 2,180.2 832.2 (361.3 ) 2,651.1 Property, plant and equipment, net — 1,585.8 519.5 — 2,105.3 Pension assets, net — 327.2 19.9 — 347.1 Investment in subsidiary 1,801.5 704.4 — (2,505.9 ) — Other assets — 298.2 124.5 (258.4 ) 164.3 Total assets $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Liabilities Accounts payable $ — $ 629.0 $ 425.4 $ (361.3 ) $ 693.1 Accrued expenses — 239.5 29.8 — 269.3 Profit sharing — 103.4 6.1 — 109.5 Current portion of long-term debt — 30.2 0.9 — 31.1 Advance payments, short-term — 100.0 — — 100.0 Deferred revenue and other deferred credits, short-term — 63.6 1.0 — 64.6 Deferred grant income liability - current — — 21.6 — 21.6 Other current liabilities — 324.3 7.5 — 331.8 Total current liabilities — 1,490.0 492.3 (361.3 ) 1,621.0 Long-term debt — 1,110.6 167.1 (157.8 ) 1,119.9 Advance payments, long-term — 231.7 — — 231.7 Pension/OPEB obligation — 40.8 — — 40.8 Deferred grant income liability - non-current — — 39.3 — 39.3 Deferred revenue and other deferred credits — 158.2 2.8 — 161.0 Other liabilities — 343.1 10.1 (100.6 ) 252.6 Total equity 1,801.5 1,721.4 784.5 (2,505.9 ) 1,801.5 Total liabilities and stockholders’ equity $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 |
Condensed Cash Flow Statement | Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 365.1 $ 58.2 $ — $ 423.3 Restricted cash — 2.2 — — 2.2 Accounts receivable, net — 752.6 330.9 (361.3 ) 722.2 Inventory, net — 1,010.0 439.9 — 1,449.9 Other current assets — 50.3 3.2 — 53.5 Total current assets — 2,180.2 832.2 (361.3 ) 2,651.1 Property, plant and equipment, net — 1,585.8 519.5 — 2,105.3 Pension assets, net — 327.2 19.9 — 347.1 Investment in subsidiary 1,801.5 704.4 — (2,505.9 ) — Other assets — 298.2 124.5 (258.4 ) 164.3 Total assets $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Liabilities Accounts payable $ — $ 629.0 $ 425.4 $ (361.3 ) $ 693.1 Accrued expenses — 239.5 29.8 — 269.3 Profit sharing — 103.4 6.1 — 109.5 Current portion of long-term debt — 30.2 0.9 — 31.1 Advance payments, short-term — 100.0 — — 100.0 Deferred revenue and other deferred credits, short-term — 63.6 1.0 — 64.6 Deferred grant income liability - current — — 21.6 — 21.6 Other current liabilities — 324.3 7.5 — 331.8 Total current liabilities — 1,490.0 492.3 (361.3 ) 1,621.0 Long-term debt — 1,110.6 167.1 (157.8 ) 1,119.9 Advance payments, long-term — 231.7 — — 231.7 Pension/OPEB obligation — 40.8 — — 40.8 Deferred grant income liability - non-current — — 39.3 — 39.3 Deferred revenue and other deferred credits — 158.2 2.8 — 161.0 Other liabilities — 343.1 10.1 (100.6 ) 252.6 Total equity 1,801.5 1,721.4 784.5 (2,505.9 ) 1,801.5 Total liabilities and stockholders’ equity $ 1,801.5 $ 5,095.8 $ 1,496.1 $ (3,125.6 ) $ 5,267.8 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 28, 2018 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 320.1 $ 77.1 $ — $ 397.2 Investing activities Purchase of property, plant and equipment — (89.4 ) (20.0 ) — (109.4 ) Other — (0.3 ) 0.6 — 0.3 Net cash used in investing activities — (89.7 ) (19.4 ) — (109.1 ) Financing activities Proceeds from issuance of bonds — 1,300.0 — — 1,300.0 Principal payments of debt — (2.7 ) (0.6 ) — (3.3 ) Payments on term loan — (256.2 ) — (256.2 ) Payments on bonds — (202.6 ) — — (202.6 ) Proceeds (payments) from intercompany debt — 57.2 (57.2 ) — — Debt issuance and financing costs — (16.9 ) — — (16.9 ) Taxes paid related to net share settlement of awards — (15.4 ) — — (15.4 ) Proceeds (payments) from subsidiary for purchase of treasury stock 805.8 (805.8 ) — — — Purchase of treasury stock (805.8 ) — — — (805.8 ) Proceeds (payments) from subsidiary for dividends paid 22.8 (22.8 ) — — — Dividends Paid (22.8 ) — — — (22.8 ) Net cash used in financing activities — 34.8 (57.8 ) — (23.0 ) Effect of exchange rate changes on cash and cash equivalents — — 0.2 — 0.2 Net increase in cash, cash equivalents, and restricted cash for the period — 265.2 0.1 — 265.3 Cash, cash equivalents, and restricted cash, beginning of period — 387.3 58.2 — 445.5 Cash, cash equivalents, and restricted cash, end of period $ — $ 652.5 $ 58.3 $ — $ 710.8 Condensed Consolidating Statements of Cash Flows For the Six Months Ended June 29, 2017 Holdings Spirit Non-Guarantor Subsidiaries Consolidating Adjustments Total Operating activities Net cash provided by operating activities $ — $ 255.7 $ 78.3 $ — $ 334.0 Investing activities Purchase of property, plant and equipment — (76.2 ) (11.9 ) — (88.1 ) Proceeds from sale of assets — 0.2 — — 0.2 Other — — — — — Net cash used in investing activities — (76.0 ) (11.9 ) — (87.9 ) Financing activities Principal payments of debt — (0.6 ) (1.2 ) — (1.8 ) Payment on term loan — (6.3 ) — — (6.3 ) Proceeds (payments) from intercompany debt — 39.0 (39.0 ) — — Taxes paid related to net share settlement of awards — (13.1 ) — — (13.1 ) Debt issuance and financing costs — (0.9 ) — — (0.9 ) Proceeds from financing under the New Markets Tax Credit Program — 7.6 — — 7.6 Proceeds (payments) from subsidiary for purchase of treasury stock 207.6 (207.6 ) — — — Purchase of treasury stock (207.6 ) — — — (207.6 ) Proceeds (payments) from subsidiary for dividends paid 24.0 (24.0 ) — — — Dividends Paid (24.0 ) — — — (24.0 ) Net cash used in financing activities — (205.9 ) (40.2 ) — (246.1 ) Effect of exchange rate changes on cash and cash equivalents — — 3.6 — 3.6 Net (decrease) increase in cash, cash equivalents, and restricted cash for the period — (26.2 ) 29.8 — 3.6 Cash, cash equivalents, and restricted cash, beginning of period — 700.0 17.6 — 717.6 Cash, cash equivalents, and restricted cash, end of period $ — $ 673.8 $ 47.4 $ — $ 721.2 |
Adoption of New Standard (Detai
Adoption of New Standard (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Item Effected [Line Items] | ||||||
Cash and cash equivalents | $ 593 | $ 696.9 | $ 593 | $ 696.9 | $ 423.3 | $ 697.7 |
Restricted Cash and Cash Equivalents | 97.8 | 4.4 | 97.8 | 4.4 | 2.2 | 0 |
Accounts Receivable, Net, Current | 682.9 | 682.9 | 722.2 | |||
Unbilled Receivables, Current | 498.1 | 498.1 | 0 | |||
Inventory, net | 900.8 | 900.8 | 1,449.9 | |||
Other Assets, Current | 53.4 | 53.4 | 53.5 | |||
Unbilled Receivable, Non Current | 55.1 | 55.1 | 0 | |||
Assets, Current | 2,826 | 2,826 | 2,651.1 | |||
Property, Plant and Equipment, Net | 2,102.6 | 2,102.6 | 2,105.3 | |||
Assets for Plan Benefits, Defined Benefit Plan | 363.7 | 363.7 | 347.1 | |||
Revenues | 1,836.9 | 1,826.1 | 3,573 | 3,520.2 | ||
Cost of Goods and Services Sold | 1,547.2 | 1,855.2 | 3,058.2 | 3,276.2 | ||
Selling, General and Administrative Expense | 61 | 47.2 | 117.2 | 100.1 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 9.1 | 0 | 19.9 | ||
Research and Development Expense | 11.1 | 6.7 | 20.5 | 11.7 | ||
Interest and Debt Expense | 24.8 | 10.2 | 36.1 | 19.7 | ||
Other Nonoperating Income (Expense) | (12.3) | 10.5 | (8.2) | 21.2 | ||
Income Tax Expense (Benefit) | (35.3) | 35 | (62.8) | (29) | ||
Net Income (Loss) Attributable to Parent | $ 145.2 | $ (56.8) | $ 270.6 | $ 84.9 | ||
Earnings Per Share, Basic | $ 1.32 | $ (0.48) | $ 2.43 | $ 0.71 | ||
Earnings Per Share, Diluted | $ 1.31 | $ (0.48) | $ 2.40 | $ 0.71 | ||
Other Assets, Noncurrent | $ 264.4 | $ 264.4 | 164.3 | |||
Assets | 5,611.8 | 5,611.8 | 5,267.8 | |||
Accounts Payable, Current | 837.5 | 837.5 | 693.1 | |||
Accrued Liabilities, Current | 367.9 | 367.9 | 269.3 | |||
Billings in Excess of Cost, Current | 114.6 | 114.6 | 0 | |||
Provision for Loss on Contracts | 157.1 | 157.1 | 0 | |||
Deferred Compensation Liability, Current | 28.5 | 28.5 | 109.5 | |||
Long-term Debt and Capital Lease Obligations, Current | 128.1 | 128.1 | 31.1 | |||
Customer Advances, Current | 106.7 | 106.7 | 100 | |||
Deferred Revenue, Current | 7 | 7 | 64.6 | |||
Deferred Grant Income Liability Current | 22.7 | 22.7 | 21.6 | |||
Other Liabilities, Current | 84 | 84 | 331.8 | |||
Billings in Excess of Cost, Noncurrent | 362.2 | 362.2 | 0 | |||
Provision for Loss on Contacts, Non Current | 94.3 | 94.3 | 0 | |||
Liabilities, Current | 1,854.1 | 1,854.1 | 1,621 | |||
Long-term Debt and Capital Lease Obligations | 1,858.4 | 1,858.4 | 1,119.9 | |||
Customer Advances, Noncurrent | 175.8 | 175.8 | 231.7 | |||
Liability, Defined Benefit Plan, Noncurrent | 39.2 | 39.2 | 40.8 | |||
Deferred Revenue and Credits, Noncurrent | 28.5 | 28.5 | 161 | |||
Deferred Grant Income Liability Noncurrent | 27.5 | 27.5 | 39.3 | |||
Other Liabilities, Noncurrent | 217.1 | 217.1 | 252.6 | |||
Preferred Stock, Value, Issued | 0 | 0 | 0 | |||
Additional Paid in Capital, Common Stock | 977.3 | 977.3 | 1,086.9 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (144.4) | (144.4) | (128.5) | |||
Retained Earnings (Accumulated Deficit) | 2,392.5 | 2,392.5 | 2,422.4 | |||
Treasury Stock, Value | 2,272.3 | 2,272.3 | 1,580.9 | |||
Stockholders' Equity Attributable to Parent | 954.2 | 954.2 | 1,801 | |||
Stockholders' Equity Attributable to Noncontrolling Interest | 0.5 | 0.5 | 0.5 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 954.7 | 954.7 | 1,801.5 | |||
Liabilities and Equity | 5,611.8 | 5,611.8 | 5,267.8 | |||
Restricted Cash and Investments, Noncurrent | 20 | $ 19.9 | 20 | $ 19.9 | 20 | 19.9 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 710.8 | 721.2 | 710.8 | 721.2 | $ 445.5 | $ 717.6 |
Transition Adjustment | 277 | 277 | ||||
Transition Adjustment - deferred production costs | 640.3 | 640.3 | ||||
Transition adjustment - forward loss reserves | 364 | 364 | ||||
Transition Adjustment - contract asset | 342 | 342 | ||||
Transition Adjustment - contract liability | 113 | 113 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Item Effected [Line Items] | ||||||
Accounts Receivable, Net, Current | 115.1 | 115.1 | ||||
Unbilled Receivables, Current | (498.1) | (498.1) | ||||
Inventory, net | 509.1 | 509.1 | ||||
Other Assets, Current | 31 | 31 | ||||
Unbilled Receivable, Non Current | (55.1) | (55.1) | ||||
Revenues | 75.2 | 90.7 | ||||
Cost of Goods and Services Sold | 132.2 | 139.5 | ||||
Income Tax Expense (Benefit) | 11.6 | 10.3 | ||||
Net Income (Loss) Attributable to Parent | $ (45.4) | $ (38.5) | ||||
Earnings Per Share, Basic | $ (0.41) | $ (0.35) | ||||
Earnings Per Share, Diluted | $ (0.41) | $ (0.34) | ||||
Other Assets, Noncurrent | $ (81.8) | $ (81.8) | ||||
Assets | 20.2 | 20.2 | ||||
Accrued Liabilities, Current | (5.8) | (5.8) | ||||
Billings in Excess of Cost, Current | (114.6) | (114.6) | ||||
Provision for Loss on Contracts | (157.1) | (157.1) | ||||
Deferred Revenue, Current | 100.1 | 100.1 | ||||
Other Liabilities, Current | 318.8 | 318.8 | ||||
Billings in Excess of Cost, Noncurrent | (362.2) | (362.2) | ||||
Provision for Loss on Contacts, Non Current | (94.3) | (94.3) | ||||
Deferred Revenue and Credits, Noncurrent | 99.5 | 99.5 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2.2) | (2.2) | ||||
Retained Earnings (Accumulated Deficit) | 238 | 238 | ||||
Liabilities and Equity | 20.2 | 20.2 | ||||
Accounting Standards Update 2014-09 [Member] | ||||||
Item Effected [Line Items] | ||||||
Accounts Receivable, Net, Current | 798 | 798 | ||||
Unbilled Receivables, Current | 0 | 0 | ||||
Inventory, net | 1,409.9 | 1,409.9 | ||||
Other Assets, Current | 84.4 | 84.4 | ||||
Unbilled Receivable, Non Current | 0 | 0 | ||||
Revenues | 1,912.1 | 3,663.7 | ||||
Cost of Goods and Services Sold | 1,679.4 | 3,197.7 | ||||
Income Tax Expense (Benefit) | (23.7) | (52.5) | ||||
Net Income (Loss) Attributable to Parent | $ 99.8 | $ 232.1 | ||||
Earnings Per Share, Basic | $ 0.91 | $ 2.08 | ||||
Earnings Per Share, Diluted | $ 0.90 | $ 2.06 | ||||
Other Assets, Noncurrent | $ 182.6 | $ 182.6 | ||||
Assets | 5,632 | 5,632 | ||||
Accrued Liabilities, Current | 362.1 | 362.1 | ||||
Billings in Excess of Cost, Current | 0 | 0 | ||||
Provision for Loss on Contracts | 0 | 0 | ||||
Deferred Revenue, Current | 107.1 | 107.1 | ||||
Other Liabilities, Current | 402.8 | 402.8 | ||||
Billings in Excess of Cost, Noncurrent | 0 | 0 | ||||
Provision for Loss on Contacts, Non Current | 0 | 0 | ||||
Deferred Revenue and Credits, Noncurrent | 128 | 128 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (146.6) | (146.6) | ||||
Retained Earnings (Accumulated Deficit) | 2,630.5 | 2,630.5 | ||||
Liabilities and Equity | $ 5,632 | $ 5,632 | ||||
Balance prior to Adoption of ASU 2017-07 [Member] | ||||||
Item Effected [Line Items] | ||||||
Cost of Goods and Services Sold | 1,847 | 3,259.8 | ||||
Selling, General and Administrative Expense | 46.1 | 98 | ||||
Other Nonoperating Income (Expense) | 1.2 | 2.7 | ||||
Impact of 2017-07 [Member] | ||||||
Item Effected [Line Items] | ||||||
Cost of Goods and Services Sold | 8.2 | 16.4 | ||||
Selling, General and Administrative Expense | 1.1 | 2.1 | ||||
Other Nonoperating Income (Expense) | $ 9.3 | $ 18.5 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 28, 2018USD ($) | Jun. 28, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Costs Incurred in Anticipation of Contracts | $ 129.9 | $ 129.9 |
Revenues | 1,836.9 | 3,573 |
Boeing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,456.4 | 2,796.8 |
Airbus [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 290.6 | 605.1 |
Other Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 89.9 | 171.1 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,523.5 | 2,924.4 |
UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 193.6 | 392.1 |
Other International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 119.8 | 256.5 |
Total International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 313.4 | 648.6 |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,433.6 | 2,756 |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 403.3 | $ 817 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ / shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | $ (1.2) | |||
Cumulative Catch Up Adjustment | $ (0.4) | $ 29.1 | ||
Changes in Contract Estimates, aggregate, Affecting earnings from Continuing Operations, per Share diluted | $ 180 | $ (1,750) | $ (10) | $ (1,730) |
Change In Accounting Estimate, aggregate | $ 24.9 | $ (329.2) | $ (1.6) | $ (328.5) |
Reduction In Previously Reported Forward-Loss | (357.6) | |||
Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 7.5 | 24.3 | ||
Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (353.5) | |||
Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 17.4 | |||
Fuselage Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | (1.5) | |||
Cumulative Catch Up Adjustment | (2.5) | 3.3 | ||
Reduction In Previously Reported Forward-Loss | (237.6) | |||
Fuselage Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 5.7 | 0.7 | ||
Fuselage Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (231.7) | |||
Fuselage Systems [Member] | Forward Loss [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 10.1 | |||
Wing Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Cumulative Catch Up Adjustment | 0.7 | 22 | ||
Reduction In Previously Reported Forward-Loss | (0.5) | (72) | ||
Wing Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | (1.6) | 17.5 | ||
Wing Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | 3 | (73.8) | ||
Propulsion Systems [Member] | ||||
Change In Estimate [Line Items] | ||||
Current Period Forward Loss Recorded | (48) | |||
Cumulative Catch Up Adjustment | 1.4 | $ 3.8 | ||
Reduction In Previously Reported Forward-Loss | $ 0.8 | |||
Change in Accounting Estimate - Contract Accounting | 4.3 | |||
Propulsion Systems [Member] | Cumulative catch-up adjustment [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | $ 3.4 | 6.1 | ||
Propulsion Systems [Member] | Change in Estimate on Loss Program [Member] | ||||
Change In Estimate [Line Items] | ||||
Change in Accounting Estimate - Contract Accounting | $ (48) |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | |
Accounts Receivable, Net, Current [Abstract] | |||||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 2,743.2 | $ 2,743.2 | |||
Trade receivables | 654.9 | 654.9 | $ 710.5 | ||
Other | 28.8 | 28.8 | 13 | ||
Less: allowance for doubtful accounts | (0.8) | (0.8) | (1.3) | ||
Accounts receivable, net | 682.9 | 682.9 | $ 722.2 | ||
Gain (Loss) on Sale of Accounts Receivable | $ (4.6) | $ 0 | $ (8.3) | $ 0 |
Contract with customer, asset54
Contract with customer, asset and liability (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2018 | Jun. 28, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Revenue Recognized | $ 27,600,000 | ||
Contract with Customer, Asset, Gross | 553,200,000 | $ 553,200,000 | $ 517,800,000 |
Change in contract asset | 35,400,000 | ||
Contract with Customer, Liability | (476,800,000) | (476,800,000) | (319,400,000) |
Change in contract liability | (157,400,000) | ||
Contract with Customer, Asset, Net | $ 76,400,000 | 76,400,000 | $ 198,400,000 |
Change in net contract asset | $ (122,000,000) |
Performance Obligations (Detail
Performance Obligations (Details) $ in Millions | Jun. 28, 2018USD ($) |
Remaining in Current Year [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 2,808.3 |
2019 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | 6,340.3 |
2020 [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | 4,478.2 |
2021 and after [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation | $ 1,671.4 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 |
Summary Of Inventories [Abstract] | ||
Raw materials | $ 243.5 | $ 321 |
Work-in-process | 604.5 | 854.4 |
Finished goods | 11.2 | 35.8 |
Product inventory | 859.2 | 1,211.2 |
Capitalized pre-production | 41.6 | 78.9 |
Deferred Production Costs | 0 | 640.3 |
Provision for Loss on Contracts, Inventory | 0 | 480.5 |
Total inventory, net | $ 900.8 | $ 1,449.9 |
Inventory (Details 1)
Inventory (Details 1) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 29, 2017 | Jun. 28, 2018 | Dec. 31, 2017 | |
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Capitalized pre-production | $ 41.6 | $ 78.9 | |
Deferred Production Costs | 0 | 640.3 | |
Forward loss provision | (157.1) | 0 | |
Total inventory, net | $ 900.8 | 1,449.9 | |
Reduction In Previously Reported Forward-Loss | $ (357.6) | ||
Airbus Three Hundred Fifty XWB [Member] | |||
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Deferred Production Costs | 632.8 | ||
Rolls-Royce | |||
Capitalized Preproduction Costs Included In Inventory [Abstract] | |||
Deferred Production Costs | $ 129.3 |
Inventory (Details 2)
Inventory (Details 2) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 |
Inventories [Line Items] | ||
Costs Incurred in Anticipation of Contracts | $ 129.9 | |
Forward Loss Provision, gross | 251.4 | |
Transition adjustment - capitalized costs (pretax) | 43 | |
Block And Order Detail [Abstract] | ||
Transition Adjustment - deferred production costs | $ 640.3 | |
forward loss provision | $ 254.5 |
Property, Plant and Equipment59
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 |
Property, plant and equipment, net | ||
Land | $ 15.5 | $ 15.9 |
Buildings (including improvements) | 802.7 | 764.1 |
Machinery and equipment | 1,578.1 | 1,529.9 |
Tooling | 1,021.5 | 1,013.9 |
Capitalized software | 269.2 | 263.3 |
Construction-in-progress | 203.9 | 213.4 |
Total | 3,890.9 | 3,800.5 |
Less: accumulated depreciation | (1,788.3) | (1,695.2) |
Property, plant and equipment, net | $ 2,102.6 | $ 2,105.3 |
Property, Plant and Equipment60
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Property Plant And Equipment Textuals [Abstract] | ||||
Repair and maintenance costs | $ 34.9 | $ 28.9 | $ 67.7 | $ 51.3 |
Depreciation expense related to capitalized software | $ 4.2 | $ 5.1 | $ 8.6 | $ 10.3 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 | Jun. 29, 2017 | Dec. 31, 2016 |
Intangible assets | ||||
Total intangible assets | $ 8.2 | $ 8.2 | ||
Intangible assets, net | 1.6 | 1.8 | ||
Deferred financing costs | 39.5 | 39.5 | ||
Less: Accumulated amortization-deferred financing costs | (34.5) | (33.7) | ||
Deferred financing costs, net | 5 | 5.8 | ||
Goodwill - Europe | 2.4 | 2.5 | ||
Equity in net assets of affiliates | 0 | 4.7 | ||
Customer Supply Agreement | 17.4 | 19.9 | ||
Restricted Cash and Investments, Noncurrent | 20 | 20 | $ 19.9 | $ 19.9 |
Deferred Tax Assets, Net, Noncurrent | 173.7 | 72.5 | ||
Other | 44.3 | 37.1 | ||
Total | 264.4 | 164.3 | ||
Patents [Member] | ||||
Intangible assets | ||||
Total intangible assets | 1.9 | 1.9 | ||
Less: Accumulated amortization | (1.9) | (1.8) | ||
Favorable Leasehold Interests [Member] | ||||
Intangible assets | ||||
Total intangible assets | 6.3 | 6.3 | ||
Less: Accumulated amortization | $ (4.7) | $ (4.6) |
Advance Payments and Deferred62
Advance Payments and Deferred Revenue/Credits (Details) $ in Millions | Jun. 28, 2018USD ($) |
Deferred Revenue Arrangement [Line Items] | |
Customer advances | $ 280 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 28, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
ASCO - purchase price | $ 650 | |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 1,887.8 | $ 1,052.7 |
Fair Value | 1,888.9 | 1,067.5 |
Secured Debt Term A [Member] | ||
Debt Instrument [Line Items] | ||
Secured Debt, Current | 24.9 | |
Secured Long-term Debt, Noncurrent | 435.8 | |
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 205.4 | 460.7 |
Fair Value | 205.9 | 461.9 |
Senior Unsecured Notes Due 2021 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 298.2 | 0 |
Fair Value | 298.8 | 0 |
Senior unsecured notes due 2022 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 95.9 | 294.8 |
Fair Value | 98.5 | 304.6 |
SeniorUnsecuredNotesDueTwoThousandAndTwentySix [Member] [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 297.4 | 297.2 |
Fair Value | 286.7 | 301 |
Senior Unsecured Notes Due 2023 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 297.7 | 0 |
Fair Value | 299.3 | 0 |
Senior Unsecured Notes Due 2028 [Member] | ||
Carrying amount and estimated fair value of long term debt | ||
Carrying Amount | 693.2 | 0 |
Fair Value | $ 699.7 | $ 0 |
Derivative and Hedging Activi64
Derivative and Hedging Activities (Details) $ in Millions | 6 Months Ended |
Jun. 28, 2018USD ($) | |
Derivative [Line Items] | |
Interest Rate Swaps [Table Text Block] | |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 250 |
Derivative and Hedging Activi65
Derivative and Hedging Activities (Details 1) - Interest Rate Swap [Member] $ in Millions | Jun. 28, 2018USD ($) |
Derivatives, Fair Value [Line Items] | |
Derivative, Notional Amount | $ 250 |
Derivative, Fixed Interest Rate | 1.815% |
Derivative and Hedging Activi66
Derivative and Hedging Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 28, 2018 | Jun. 28, 2018 | Dec. 31, 2017 | |
Derivatives Fair Value [Line Items] | |||
ASCO - purchase price | $ 650 | $ 650 | |
Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative, Fair Value, Net | 3.2 | 3.2 | $ 0.9 |
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | (0.6) | (2.3) | |
Derivative, Notional Amount | 250 | 250 | |
Foreign Exchange Forward [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative, Fair Value, Net | 21.5 | 21.5 | |
Derivative, Notional Amount | 580 | $ 580 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (21.5) |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 28, 2018 | Dec. 31, 2017 | Jun. 01, 2016 | |
Debt Type [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650 | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Capital Lease Obligations, Current | 6.3 | $ 5.2 | |
Capital Lease Obligations, Noncurrent | 35.4 | 33.6 | |
Other Long-term Debt, Current | 1 | 1 | |
Other Long-term Debt, Noncurrent | 56 | 58.5 | |
Long-term Debt and Capital Lease Obligations, Current | 128.1 | 31.1 | |
Long-term Debt and Capital Lease Obligations | 1,858.4 | 1,119.9 | |
Optional Revolver Commitment | 500 | ||
Secured Debt Term A [Member] | |||
Debt Disclosure [Abstract] | |||
Secured Debt, Current | 24.9 | ||
Secured Long-term Debt, Noncurrent | 435.8 | ||
Debt Type [Line Items] | |||
Unsecured Debt | 24.9 | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Unsecured Long-term Debt, Noncurrent | 180.5 | ||
Senior unsecured notes due 2022 [Member] | |||
Debt Type [Line Items] | |||
Extinguishment of Debt, Amount | 300 | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Senior Notes, Current | 95.9 | 0 | |
Senior Notes, Noncurrent | 0 | 294.8 | |
Debt Instrument, Repurchase Amount | 202.6 | ||
Incremental Tender Amount | 97.4 | ||
Senior Unsecured Notes Due 2026 [Member] | |||
Debt Type [Line Items] | |||
Debt Instrument, Face Amount | $ 300 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Senior Notes, Current | 0 | 0 | |
Senior Notes, Noncurrent | 297.4 | 297.2 | |
Senior Unsecured Notes Due 2021 [Member] | |||
Debt Type [Line Items] | |||
Debt Instrument, Face Amount | 300 | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Senior Notes, Current | 0 | 0 | |
Senior Notes, Noncurrent | 298.2 | 0 | |
Senior Unsecured Notes Due 2023 [Member] | |||
Debt Type [Line Items] | |||
Debt Instrument, Face Amount | 300 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Senior Notes, Current | 0 | 0 | |
Senior Notes, Noncurrent | 297.7 | 0 | |
Senior Unsecured Notes Due 2028 [Member] | |||
Debt Type [Line Items] | |||
Debt Instrument, Face Amount | 700 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | |||
Senior Notes, Current | 0 | 0 | |
Senior Notes, Noncurrent | $ 693.2 | $ 0 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 01, 2016 | |
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 650,000 | ||||
Proceeds from (Payments for) Other Financing Activities | 0 | $ 0 | |||
Optional Revolver Commitment | 500,000 | ||||
Restricted Cash and Cash Equivalents | 97,800 | $ 4,400 | $ 2,200 | $ 0 | |
Secured Debt Term A [Member] | |||||
Debt Instrument [Line Items] | |||||
Unsecured Long-term Debt, Noncurrent | 180,500 | ||||
Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 500,000 | ||||
Senior unsecured notes due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Gains (Losses) on Extinguishment of Debt | 9,000 | ||||
Senior Notes | 95,900 | ||||
Senior Notes, Noncurrent | 0 | 294,800 | |||
Senior Notes, Current | $ 95,900 | 0 | |||
Senior Unsecured Notes Due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 300,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | ||||
Maturity Date 2022 Notes | Jun. 15, 2026 | ||||
Senior Notes, Noncurrent | $ 297,400 | 297,200 | |||
Senior Notes, Current | $ 0 | $ 0 | |||
Amended and Restated Credit Agreement Due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate Terms | Each of the 2016 Revolver and the 2016 Term Loan has a maturity date of June 4, 2021, and each bears interest, at Spirit’s option, at either LIBOR plus 1.5% or a defined “base rate” plus 0.50%, subject to adjustment to amounts between and including LIBOR plus 1.125% and LIBOR plus 2.0% (or amounts between and including base rate plus 0.125% and base rate plus 1.0%, as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc | ||||
Outstanding Balance Term Loan | $ 206,300 | ||||
Debt Instrument, Periodic Payment, Principal | 6,250 | ||||
Carry Value Term Loan | 205,400 | ||||
2018 Amended Restated Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,260,000 | ||||
Debt Instrument, Face Amount | $ 1,260,000 | ||||
Debt Instrument, Interest Rate Terms | Each of the 2018 Revolver, the 2018 Term Loan and the Delayed Draw Term Loan matures July 12, 2023, and bears interest, at Spirit’s option, at either LIBOR plus 1.375% or a defined “base rate” plus 0.375%, subject to adjustment to between LIBOR plus 1.125% and LIBOR plus 1.875% (or between base rate plus 0.125% and base rate plus 0.875%, as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc. |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Pension And Other Post Retirement Benefits Textuals [Abstract] | ||||
Defined Benefit Plan Estimated Future Employer Contributions Remainder Of Year | $ 7.4 | |||
Expected UK Pension Plan Contribution For The Year | 1.8 | |||
Defined Benefit Plans [Member] | ||||
Pension and Other Post-Retirement Benefits | ||||
Service cost | $ 0.2 | $ 0.3 | 0.4 | $ 0.5 |
Interest cost | 8.9 | 9.3 | 18.2 | 18.9 |
Expected return on plan assets | (17.4) | (18.1) | (34.9) | (36.4) |
Net periodic pension income | (8.3) | (8.5) | (16.3) | (17) |
Other Benefits [Member] | ||||
Pension and Other Post-Retirement Benefits | ||||
Service cost | 0.2 | 0.3 | 0.5 | 0.6 |
Interest cost | 0.2 | 0.3 | 0.5 | 0.6 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.3) | (0.3) | (0.5) | (0.5) |
Amortization of net loss | (0.5) | (0.5) | (1.1) | (1.1) |
Net periodic pension income | $ (0.4) | $ (0.2) | $ (0.6) | $ (0.4) |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Company recognized total stock compensation expense, net of forfeitures | $ 13.6 | $ 11 | ||
LTIA AND Prior Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Company recognized total stock compensation expense, net of forfeitures | $ 6.5 | $ 3 | $ 13.6 | $ 11 |
Class A [Member] | Long Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 454,402 | |||
Grant date value of shares vested | $ 23.9 | |||
Class A [Member] | Market Based LTIA [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 92,375 | |||
Fair Value Of Shares Granted | $ 8.4 | |||
Class A [Member] | Service Based LTIA [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 241,010 | |||
Fair Value Of Shares Granted | $ 21.4 | |||
Class A [Member] | Performance Based LTIA [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 63,904 | |||
Fair Value Of Shares Granted | $ 5.7 |
Income Tax (details)
Income Tax (details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | |
Income Taxes Textuals [Abstract] | |||
Deferred tax assets net total | $ (173.3) | $ (72.2) | |
Valuation Allowance [Line Items] | |||
Effective tax rate | 18.90% | 25.50% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.12 | $ 0.10 | $ 0.22 | $ 0.20 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (144.4) | $ (144.4) | $ (128.5) | ||
Basic EPS | |||||
Income available to common shareholders | $ 145.1 | $ (56.8) | $ 270.4 | $ 84.8 | |
Income available to common shareholders, shares | 110 | 118.2 | 111.4 | 118.8 | |
Income available to common shareholders, per share amount | $ 1.32 | $ (0.48) | $ 2.43 | $ 0.71 | |
Income allocated to participating securities | $ 0.1 | $ 0 | $ 0.2 | $ 0.1 | |
Income allocated to participating securities, shares | 0.1 | 0 | 0.1 | 0.1 | |
Net income (loss) | $ 145.2 | $ (56.8) | $ 270.6 | $ 84.9 | |
Diluted potential common shares | 0.9 | 0 | 1.1 | 0 | |
Diluted EPS | |||||
Net income (loss) | $ 145.2 | $ (56.8) | $ 270.6 | $ 84.9 | |
Shares | 111 | 118.2 | 112.6 | 118.9 | |
Diluted (in dollars per share) | $ 1.31 | $ (0.48) | $ 2.40 | $ 0.71 | |
Equity Textuals [Abstract] | |||||
Common shares outstanding issued but unvested | 1.4 | 1.5 | 1.4 | 1.5 | |
Noncontrolling interest | $ 0.5 | $ 0.5 | 0.5 | ||
Pension [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (75.9) | (75.9) | (75.9) | ||
SERP and Retiree medical [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 16.5 | 16.5 | 17.7 | ||
Foreign currency impact on long term intercompany loan [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (15.5) | (15.5) | (14.2) | ||
Currency translation adjustment [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (69.5) | (69.5) | $ (56.1) | ||
Accelerated Share Repurchase Program [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 725 |
Commitments, Contingencies an73
Commitments, Contingencies and Guarantees (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 28, 2018 | Jun. 28, 2018 | Dec. 31, 2017 | Jun. 29, 2017 | Dec. 31, 2016 | |
Commitments Contingencies And Guarantees [Abstract] | |||||
Litigation settlement amount against Boeing | $ 139,000,000 | ||||
Current Period Forward Loss Recorded | $ (1,200,000) | ||||
Service warranty roll forward | |||||
Product Warranty And Extraordinary Rework | 166,400,000 | ||||
Charges to costs and expenses | 2,900,000 | ||||
Product Warranty Accrual, Payments | (2,700,000) | ||||
Product Warranty And Extraordinary Rework | 166,300,000 | 166,300,000 | $ 166,400,000 | ||
Product Warranty Extraordinary Rework Accrual Currency Translation Increase Decrease | (300,000) | ||||
Commitments Contingencies And Guarantees Textuals [Abstract] | |||||
Outstanding amount of guarantees | 20,700,000 | 20,700,000 | 23,200,000 | ||
Restricted Cash and Investments, Noncurrent | 20,000,000 | 20,000,000 | 20,000,000 | $ 19,900,000 | $ 19,900,000 |
Product Liability Accrual, Component Amount | 104,000,000 | $ 104,000,000 | 101,000,000 | ||
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | $ 179,000,000 | $ 223,000,000 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Kansas Development Finance Authority bond | $ 0.9 | $ 0.7 | $ 2.1 | $ 1.7 |
Rental and miscellaneous income | 0.3 | 0 | (1.3) | 0.1 |
Interest Income, Other | 1.7 | 1.5 | 2.9 | 2.5 |
Foreign currency losses | 1.6 | 0.5 | (1.5) | (0.1) |
Gain (Loss) on Sale of Accounts Receivable | (4.6) | 0 | (8.3) | 0 |
pension income (expense) without service cost | 8.7 | 9.3 | 17.1 | 18.5 |
Unrealized Gain (Loss) on Derivatives | (20.9) | (1.5) | (19.2) | (1.5) |
Total | $ (12.3) | $ 10.5 | $ (8.2) | $ 21.2 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 28, 2018USD ($) | Jun. 29, 2017USD ($) | Jun. 28, 2018USD ($)segment | Jun. 29, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | $ 1,547.2 | $ 1,855.2 | $ 3,058.2 | $ 3,276.2 |
Segment Revenues | ||||
Segment Revenues | 1,836.9 | 3,573 | ||
Revenues | 1,836.9 | 1,826.1 | 3,573 | 3,520.2 |
Segment Operating Income | ||||
Business Segment Operating Income | 294.7 | (17.2) | 517.1 | 257.1 |
Segment Information Unallocated Corporate Selling General And Administrative | (61) | (47.2) | (117.2) | (100.1) |
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | (9.1) | 0 | (19.9) |
Segment Information Unallocated Research And Development | (11.1) | (6.7) | (20.5) | (11.7) |
Segment Information Unallocated Cost Of Sales | (5) | (11.9) | (2.3) | (13.1) |
Operating income (loss) | $ 217.6 | (92.1) | 377.1 | 112.3 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | $ (1.2) | |||
Reduction In Previously Reported Forward-Loss | (357.6) | |||
Number Of Principal Segments | segment | 3 | |||
Percentage Of Net Revenue Derived From Two Largest Customers | 95.00% | |||
Cumulative Catch Up Adjustment | $ (0.4) | 29.1 | ||
Fuselage Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | $ 1,029.7 | 938.2 | 1,992.4 | 1,855.1 |
Segment Operating Income | ||||
Business Segment Operating Income | 163.2 | (84.8) | 282.9 | 61.2 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | (1.5) | |||
Reduction In Previously Reported Forward-Loss | (237.6) | |||
Cumulative Catch Up Adjustment | (2.5) | 3.3 | ||
Propulsion Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 422.7 | 436.5 | 817.2 | 842.8 |
Segment Operating Income | ||||
Business Segment Operating Income | 74.8 | 39.3 | 127.7 | 111 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Forward Loss Recorded For The Period | (48) | |||
Reduction In Previously Reported Forward-Loss | 0.8 | |||
Cumulative Catch Up Adjustment | 1.4 | 3.8 | ||
Wing Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 383 | 450.5 | 760 | 819.5 |
Segment Operating Income | ||||
Business Segment Operating Income | 56.7 | 28.9 | 107.5 | 85.6 |
Segment Reporting Information, Additional Information [Abstract] | ||||
Reduction In Previously Reported Forward-Loss | (0.5) | (72) | ||
Cumulative Catch Up Adjustment | 0.7 | 22 | ||
Other Systems [Member] | ||||
Segment Revenues | ||||
Segment Revenues | 1.5 | 0.9 | 3.4 | 2.8 |
Segment Operating Income | ||||
Business Segment Operating Income | $ 0 | (0.6) | $ (1) | (0.7) |
Impact of 2017-07 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | 8.2 | 16.4 | ||
Impact of 2017-07 [Member] | Fuselage Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | 4.6 | 9 | ||
Impact of 2017-07 [Member] | Propulsion Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | 1.7 | 3.7 | ||
Impact of 2017-07 [Member] | Wing Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cost of Goods and Services Sold | $ 1.9 | $ 3.7 |
Condensed Consolidating Finan76
Condensed Consolidating Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 28, 2018 | Jun. 29, 2017 | Jun. 28, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Revenue | $ 1,836.9 | $ 1,826.1 | $ 3,573 | $ 3,520.2 | ||
Operating costs and expenses | ||||||
Cost of sales | 1,547.2 | 1,855.2 | 3,058.2 | 3,276.2 | ||
Selling, general and administrative | 61 | 47.2 | 117.2 | 100.1 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 9.1 | 0 | 19.9 | ||
Research and development | 11.1 | 6.7 | 20.5 | 11.7 | ||
Total operating costs and expenses | 1,619.3 | 1,918.2 | 3,195.9 | 3,407.9 | ||
Operating income | 217.6 | (92.1) | 377.1 | 112.3 | ||
Interest expense and financing fee amortization | (24.8) | (10.2) | (36.1) | (19.7) | ||
Other expense, net | (12.3) | 10.5 | (8.2) | 21.2 | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 180.5 | (91.8) | 332.8 | 113.8 | ||
Income tax provision | (35.3) | 35 | (62.8) | (29) | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 145.2 | (56.8) | 270 | 84.8 | ||
Equity in net income of affiliate | 0 | 0 | 0.6 | 0.1 | ||
Equity in net income of subsidiaries | 0 | 0 | ||||
Net income (loss) | 145.2 | (56.8) | 270.6 | 84.9 | ||
Total other comprehensive income (loss) | (30.5) | 15.8 | (15.9) | 19.8 | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 114.7 | (41) | 254.7 | 104.7 | ||
Assets | ||||||
Cash and cash equivalents | 710.8 | 721.2 | 710.8 | 721.2 | $ 445.5 | $ 717.6 |
Restricted Cash and Cash Equivalents | 97.8 | 4.4 | 97.8 | 4.4 | 2.2 | 0 |
Accounts receivable, net | 682.9 | 682.9 | 722.2 | |||
Unbilled Receivables, Current | 498.1 | 498.1 | 0 | |||
Inventory | 900.8 | 900.8 | 1,449.9 | |||
Other current assets | 53.4 | 53.4 | 53.5 | |||
Total current assets | 2,826 | 2,826 | 2,651.1 | |||
Property, plant and equipment, net | 2,102.6 | 2,102.6 | 2,105.3 | |||
Unbilled Receivable, Non Current | 55.1 | 55.1 | 0 | |||
Pension assets | 363.7 | 363.7 | 347.1 | |||
Other assets | 264.4 | 264.4 | 164.3 | |||
Total assets | 5,611.8 | 5,611.8 | 5,267.8 | |||
Liabilities | ||||||
Accounts payable | 837.5 | 837.5 | 693.1 | |||
Accrued expenses | 367.9 | 367.9 | 269.3 | |||
Profit sharing | 28.5 | 28.5 | 109.5 | |||
Current portion of long-term debt | 128.1 | 128.1 | 31.1 | |||
Advance payments, short-term | 106.7 | 106.7 | 100 | |||
Billings in Excess of Cost, Current | 114.6 | 114.6 | 0 | |||
Provision for Loss on Contracts | 157.1 | 157.1 | 0 | |||
Deferred revenue and other deferred credits, short-term | 7 | 7 | 64.6 | |||
Deferred grant income liability - current | 22.7 | 22.7 | 21.6 | |||
Other current liabilities | 84 | 84 | 331.8 | |||
Total current liabilities | 1,854.1 | 1,854.1 | 1,621 | |||
Long-term debt | 1,858.4 | 1,858.4 | 1,119.9 | |||
Advance payments, long-term | 175.8 | 175.8 | 231.7 | |||
Pension/OPEB obligation | 39.2 | 39.2 | 40.8 | |||
Billings in Excess of Cost, Noncurrent | 362.2 | 362.2 | 0 | |||
Provision for Loss on Contacts, Non Current | 94.3 | 94.3 | 0 | |||
Deferred grant income liability - non-current | 27.5 | 27.5 | 39.3 | |||
Deferred revenue and other deferred credits | 28.5 | 28.5 | 161 | |||
Other liabilities | 217.1 | 217.1 | 252.6 | |||
Total equity | 954.7 | 954.7 | 1,801.5 | |||
Total liabilities and equity | 5,611.8 | 5,611.8 | 5,267.8 | |||
Operating activities | ||||||
Net cash (used in) operating activities | 397.2 | 334 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (109.4) | (88.1) | ||||
Proceeds from Sales of Assets, Investing Activities | 0.2 | |||||
Payments for (Proceeds from) Other Investing Activities | 0.3 | 0 | ||||
Net cash used in investing activities | (109.1) | (87.9) | ||||
Proceeds from Issuance of Senior Long-term Debt | 1,300 | 0 | ||||
Financing activities | ||||||
Principal payments of debt | (3.3) | (1.8) | ||||
Repayments of Senior Debt | (256.2) | (6.3) | ||||
Early Repayment of Senior Debt | (202.6) | 0 | ||||
Repayments of Debt | (256.2) | (6.3) | ||||
Payments Related to Tax Withholding for Share-based Compensation | (15.4) | (13.1) | ||||
Debt issuance and financing costs | (16.9) | (0.9) | ||||
Increase (Decrease) in Other Operating Assets and Liabilities, Net | (24.9) | 185.6 | ||||
Proceeds from Other Debt | 0 | 7.6 | ||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | (805.8) | (207.6) | ||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | 0 | ||||
Payments of Dividends | 22.8 | (24) | ||||
Net cash used in financing activities | (23) | (246.1) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.2 | 3.6 | ||||
Net increase in cash, cash equivalents, and restricted cash for the period | 265.3 | 3.6 | ||||
Cash and cash equivalents, beginning of period | 423.3 | 697.7 | ||||
Cash, cash equivalents, and restricted cash, end of period | 593 | 696.9 | 593 | 696.9 | ||
Consolidation, Eliminations [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Revenue | (159.6) | (162.4) | (334.2) | (321.5) | ||
Operating costs and expenses | ||||||
Cost of sales | (159.6) | (162.4) | (334.2) | (321.5) | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||
Total operating costs and expenses | (159.6) | (162.4) | (334.2) | (321.5) | ||
Interest expense and financing fee amortization | 1.4 | 1.5 | 2.6 | 3.1 | ||
Other expense, net | (1.4) | (1.5) | (2.6) | (3.1) | ||
Equity in net income of affiliate | (0.6) | (0.1) | ||||
Equity in net income of subsidiaries | (174) | 19.4 | (320) | (146.8) | ||
Net income (loss) | (174) | 19.4 | (320.6) | (146.9) | ||
Total other comprehensive income (loss) | 60.4 | (32) | 30.7 | (40.5) | ||
Comprehensive Income, Net of Tax, Attributable to Parent | (113.6) | (12.6) | (289.9) | (187.4) | ||
Assets | ||||||
Restricted Cash and Cash Equivalents | 0 | 0 | 0 | |||
Accounts receivable, net | (364.2) | (364.2) | (361.3) | |||
Unbilled Receivables, Current | 0 | 0 | ||||
Total current assets | (364.2) | (364.2) | (361.3) | |||
Unbilled Receivable, Non Current | 0 | 0 | ||||
Investment in subsidiary | (1,621.6) | (1,621.6) | (2,505.9) | |||
Other assets | (229.5) | (229.5) | (258.4) | |||
Total assets | (2,215.3) | (2,215.3) | (3,125.6) | |||
Liabilities | ||||||
Accounts payable | (364.2) | (364.2) | (361.3) | |||
Billings in Excess of Cost, Current | 0 | 0 | ||||
Provision for Loss on Contracts | 0 | 0 | ||||
Total current liabilities | (364.2) | (364.2) | (361.3) | |||
Long-term debt | (128.9) | (128.9) | (157.8) | |||
Billings in Excess of Cost, Noncurrent | 0 | 0 | ||||
Provision for Loss on Contacts, Non Current | 0 | 0 | ||||
Other liabilities | (100.6) | (100.6) | (100.6) | |||
Total equity | (1,621.6) | (1,621.6) | (2,505.9) | |||
Total liabilities and equity | (2,215.3) | (2,215.3) | (3,125.6) | |||
Investing activities | ||||||
Proceeds from Sales of Assets, Investing Activities | 0 | |||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||||
Proceeds from Issuance of Senior Long-term Debt | 0 | |||||
Financing activities | ||||||
Repayments of Senior Debt | 0 | 0 | ||||
Early Repayment of Senior Debt | 0 | |||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Parent Company [Member] | ||||||
Operating costs and expenses | ||||||
Selling, general and administrative | 3.3 | 3.3 | 5.7 | 4.9 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||
Total operating costs and expenses | 3.3 | 3.3 | 5.7 | 4.9 | ||
Operating income | (3.3) | (3.3) | (5.7) | (4.9) | ||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | (3.3) | (3.3) | (5.7) | (4.9) | ||
Income tax provision | 0.7 | 1.4 | 1.1 | 1.9 | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | (2.6) | (1.9) | (4.6) | (3) | ||
Equity in net income of affiliate | 0.6 | 0.1 | ||||
Equity in net income of subsidiaries | 147.8 | (54.9) | 274.6 | 87.8 | ||
Net income (loss) | 145.2 | (56.8) | 270.6 | 84.9 | ||
Total other comprehensive income (loss) | (30.5) | 15.8 | (15.9) | 19.8 | ||
Comprehensive Income, Net of Tax, Attributable to Parent | 114.7 | (41) | 254.7 | 104.7 | ||
Assets | ||||||
Restricted Cash and Cash Equivalents | 0 | 0 | 0 | |||
Unbilled Receivables, Current | 0 | 0 | ||||
Unbilled Receivable, Non Current | 0 | 0 | ||||
Investment in subsidiary | 954.7 | 954.7 | 1,801.5 | |||
Total assets | 954.7 | 954.7 | 1,801.5 | |||
Liabilities | ||||||
Billings in Excess of Cost, Current | 0 | 0 | ||||
Provision for Loss on Contracts | 0 | 0 | ||||
Billings in Excess of Cost, Noncurrent | 0 | 0 | ||||
Provision for Loss on Contacts, Non Current | 0 | 0 | ||||
Total equity | 954.7 | 954.7 | 1,801.5 | |||
Total liabilities and equity | 954.7 | 954.7 | 1,801.5 | |||
Investing activities | ||||||
Proceeds from Sales of Assets, Investing Activities | 0 | |||||
Payments for (Proceeds from) Other Investing Activities | 0 | 0 | ||||
Proceeds from Issuance of Senior Long-term Debt | 0 | |||||
Financing activities | ||||||
Repayments of Senior Debt | 0 | 0 | ||||
Early Repayment of Senior Debt | 0 | |||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 805.8 | 207.6 | ||||
Payments for Repurchase of Common Stock | (805.8) | (207.6) | ||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 22.8 | 24 | ||||
Payments of Dividends | 22.8 | 24 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Revenue | 342.3 | 380.5 | 712 | 713.6 | ||
Operating costs and expenses | ||||||
Cost of sales | 306.5 | 330.5 | 640.5 | 629.5 | ||
Selling, general and administrative | 4.1 | 3.6 | 9.8 | 7.1 | ||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 0 | 0 | ||||
Research and development | 1.1 | 0.2 | 1.9 | 1.1 | ||
Total operating costs and expenses | 311.7 | 334.3 | 652.2 | 637.7 | ||
Operating income | 30.6 | 46.2 | 59.8 | 75.9 | ||
Interest expense and financing fee amortization | (1.6) | (1.6) | (2.8) | (3.2) | ||
Other expense, net | 2 | 0.5 | (2.6) | |||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 31 | 45.1 | 54.4 | 72.7 | ||
Income tax provision | (4.8) | (9.6) | (9) | (13.7) | ||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 26.2 | 35.5 | 45.4 | 59 | ||
Equity in net income of affiliate | 0.6 | 0.1 | ||||
Net income (loss) | 26.2 | 35.5 | 46 | 59.1 | ||
Total other comprehensive income (loss) | (29.9) | 16.2 | (14.8) | 20.7 | ||
Comprehensive Income, Net of Tax, Attributable to Parent | (3.7) | 51.7 | 31.2 | 79.8 | ||
Assets | ||||||
Cash and cash equivalents | 58.3 | 47.4 | 58.3 | 47.4 | 58.2 | 17.6 |
Restricted Cash and Cash Equivalents | 0 | 0 | 0 | |||
Accounts receivable, net | 334.9 | 334.9 | 330.9 | |||
Unbilled Receivables, Current | 34.4 | 34.4 | ||||
Inventory | 299.2 | 299.2 | 439.9 | |||
Other current assets | 2.5 | 2.5 | 3.2 | |||
Total current assets | 729.3 | 729.3 | 832.2 | |||
Property, plant and equipment, net | 507 | 507 | 519.5 | |||
Unbilled Receivable, Non Current | 0 | 0 | ||||
Pension assets | 20.4 | 20.4 | 19.9 | |||
Other assets | 133.1 | 133.1 | 124.5 | |||
Total assets | 1,389.8 | 1,389.8 | 1,496.1 | |||
Liabilities | ||||||
Accounts payable | 400.4 | 400.4 | 425.4 | |||
Accrued expenses | 34.9 | 34.9 | 29.8 | |||
Profit sharing | 2.7 | 2.7 | 6.1 | |||
Current portion of long-term debt | 0.9 | 0.9 | 0.9 | |||
Billings in Excess of Cost, Current | 0 | 0 | ||||
Provision for Loss on Contracts | 0.4 | 0.4 | ||||
Deferred revenue and other deferred credits, short-term | 0.5 | 0.5 | 1 | |||
Deferred grant income liability - current | 22.7 | 22.7 | 21.6 | |||
Other current liabilities | 0.2 | 0.2 | 7.5 | |||
Total current liabilities | 462.7 | 462.7 | 492.3 | |||
Long-term debt | 136.6 | 136.6 | 167.1 | |||
Advance payments, long-term | 2.3 | 2.3 | ||||
Billings in Excess of Cost, Noncurrent | 0 | 0 | ||||
Provision for Loss on Contacts, Non Current | 0 | 0 | ||||
Deferred grant income liability - non-current | 27.2 | 27.2 | 39.3 | |||
Deferred revenue and other deferred credits | 2.6 | 2.6 | 2.8 | |||
Other liabilities | 11.5 | 11.5 | 10.1 | |||
Total equity | 746.9 | 746.9 | 784.5 | |||
Total liabilities and equity | 1,389.8 | 1,389.8 | 1,496.1 | |||
Operating activities | ||||||
Net cash (used in) operating activities | 77.1 | 78.3 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (20) | (11.9) | ||||
Proceeds from Sales of Assets, Investing Activities | 0 | |||||
Payments for (Proceeds from) Other Investing Activities | 0.6 | 0 | ||||
Net cash used in investing activities | (19.4) | (11.9) | ||||
Proceeds from Issuance of Senior Long-term Debt | 0 | |||||
Financing activities | ||||||
Principal payments of debt | (0.6) | (1.2) | ||||
Repayments of Senior Debt | 0 | |||||
Early Repayment of Senior Debt | 0 | |||||
Collection on (repayment of) intercompany debt | (57.2) | (39) | ||||
Payments Related to Tax Withholding for Share-based Compensation | 0 | 0 | ||||
Debt issuance and financing costs | 0 | |||||
Proceeds from Other Debt | 0 | |||||
Proceeds from (Payments for) Other Financing Activities | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | |||||
Proceeds from subsidiary (payments to Parent) to pay dividends | 0 | 0 | ||||
Payments of Dividends | 0 | 0 | ||||
Net cash used in financing activities | (57.8) | (40.2) | ||||
Effect of exchange rate changes on cash and cash equivalents | 0.2 | 3.6 | ||||
Net increase in cash, cash equivalents, and restricted cash for the period | 0.1 | 29.8 | ||||
Cash and cash equivalents, beginning of period | 58.2 | |||||
Cash, cash equivalents, and restricted cash, end of period | 58.3 | 58.3 | ||||
Subsidiary Issuer [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Revenue | 1,654.2 | 1,608 | ||||
Operating costs and expenses | ||||||
Cost of sales | 1,400.3 | 1,687.1 | ||||
Selling, general and administrative | 53.6 | 40.3 | ||||
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 9.1 | 19.9 | ||||
Research and development | 10 | 6.5 | ||||
Total operating costs and expenses | 1,463.9 | 1,743 | ||||
Operating income | 190.3 | (135) | ||||
Interest expense and financing fee amortization | (24.6) | (10.1) | ||||
Other expense, net | (12.9) | 11.5 | ||||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 152.8 | (133.6) | ||||
Income tax provision | (31.2) | 43.2 | ||||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 121.6 | (90.4) | ||||
Equity in net income of subsidiaries | 26.2 | 35.5 | ||||
Net income (loss) | 147.8 | (54.9) | ||||
Total other comprehensive income (loss) | (30.5) | 15.8 | ||||
Comprehensive Income, Net of Tax, Attributable to Parent | 117.3 | (39.1) | ||||
Assets | ||||||
Cash and cash equivalents | 652.5 | $ 673.8 | 652.5 | 673.8 | 387.3 | $ 700 |
Restricted Cash and Cash Equivalents | 97.8 | 97.8 | 2.2 | |||
Accounts receivable, net | 712.2 | 712.2 | 752.6 | |||
Unbilled Receivables, Current | 463.7 | 463.7 | ||||
Inventory | 601.6 | 601.6 | 1,010 | |||
Other current assets | 50.9 | 50.9 | 50.3 | |||
Total current assets | 2,460.9 | 2,460.9 | 2,180.2 | |||
Property, plant and equipment, net | 1,595.6 | 1,595.6 | 1,585.8 | |||
Unbilled Receivable, Non Current | 55.1 | 55.1 | ||||
Pension assets | 343.3 | 343.3 | 327.2 | |||
Investment in subsidiary | 666.9 | 666.9 | 704.4 | |||
Other assets | 360.8 | 360.8 | 298.2 | |||
Total assets | 5,482.6 | 5,482.6 | 5,095.8 | |||
Liabilities | ||||||
Accounts payable | 801.3 | 801.3 | 629 | |||
Accrued expenses | 333 | 333 | 239.5 | |||
Profit sharing | 25.8 | 25.8 | 103.4 | |||
Current portion of long-term debt | 127.2 | 127.2 | 30.2 | |||
Advance payments, short-term | 106.7 | 106.7 | 100 | |||
Billings in Excess of Cost, Current | 114.6 | 114.6 | ||||
Provision for Loss on Contracts | 156.7 | 156.7 | ||||
Deferred revenue and other deferred credits, short-term | 6.5 | 6.5 | 63.6 | |||
Other current liabilities | 83.8 | 83.8 | 324.3 | |||
Total current liabilities | 1,755.6 | 1,755.6 | 1,490 | |||
Long-term debt | 1,850.7 | 1,850.7 | 1,110.6 | |||
Advance payments, long-term | 173.5 | 173.5 | 231.7 | |||
Pension/OPEB obligation | 39.2 | 39.2 | 40.8 | |||
Billings in Excess of Cost, Noncurrent | 362.2 | 362.2 | ||||
Provision for Loss on Contacts, Non Current | 94.3 | 94.3 | ||||
Deferred grant income liability - non-current | 0.3 | 0.3 | ||||
Deferred revenue and other deferred credits | 25.9 | 25.9 | 158.2 | |||
Other liabilities | 306.2 | 306.2 | 343.1 | |||
Total equity | 874.7 | 874.7 | 1,721.4 | |||
Total liabilities and equity | 5,482.6 | 5,482.6 | $ 5,095.8 | |||
Operating activities | ||||||
Net cash (used in) operating activities | 320.1 | 255.7 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (89.4) | (76.2) | ||||
Net cash used in investing activities | (89.7) | (76) | ||||
Proceeds from Issuance of Senior Long-term Debt | 1,300 | |||||
Financing activities | ||||||
Principal payments of debt | (2.7) | (0.6) | ||||
Collection on (repayment of) intercompany debt | 57.2 | 39 | ||||
Payments Related to Tax Withholding for Share-based Compensation | (15.4) | (13.1) | ||||
Proceeds from (Payments for) Other Financing Activities | (805.8) | (207.6) | ||||
Proceeds from subsidiary (payments to Parent) to pay dividends | (22.8) | (24) | ||||
Payments of Dividends | 0 | 0 | ||||
Net cash used in financing activities | 34.8 | (205.9) | ||||
Net increase in cash, cash equivalents, and restricted cash for the period | 265.2 | (26.2) | ||||
Cash and cash equivalents, beginning of period | 365.1 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ 534.7 | 534.7 | ||||
Spirit [Member] | ||||||
Condensed Consolidating Statements of Operations [Abstract] | ||||||
Revenue | 3,195.2 | 3,128.1 | ||||
Operating costs and expenses | ||||||
Cost of sales | 2,751.9 | 2,968.2 | ||||
Selling, general and administrative | 101.7 | 88.1 | ||||
Research and development | 18.6 | 10.6 | ||||
Total operating costs and expenses | 2,872.2 | 3,086.8 | ||||
Operating income | 323 | 41.3 | ||||
Interest expense and financing fee amortization | (35.9) | (19.6) | ||||
Other expense, net | (3) | 24.3 | ||||
Income (loss) before income taxes and equity in net loss of affiliates and subsidiaries | 284.1 | 46 | ||||
Income tax provision | (54.9) | (17.2) | ||||
Income (loss) Before Equity In Net Income (Loss) Of Affiliates and Subsidiaries | 229.2 | 28.8 | ||||
Equity in net income of subsidiaries | 45.4 | 59 | ||||
Net income (loss) | 274.6 | 87.8 | ||||
Total other comprehensive income (loss) | (15.9) | 19.8 | ||||
Comprehensive Income, Net of Tax, Attributable to Parent | 258.7 | 107.6 | ||||
Investing activities | ||||||
Proceeds from Sales of Assets, Investing Activities | 0.2 | |||||
Payments for (Proceeds from) Other Investing Activities | (0.3) | 0 | ||||
Financing activities | ||||||
Repayments of Senior Debt | (256.2) | (6.3) | ||||
Early Repayment of Senior Debt | (202.6) | |||||
Debt issuance and financing costs | $ (16.9) | (0.9) | ||||
Proceeds from Other Debt | $ 7.6 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 6 Months Ended |
Jun. 28, 2018USD ($) | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 650 |
Optional Revolver Commitment | $ 500 |
Loss Contingency, Allegations | On July 6, 2018, Spirit filed a complaint in Washington Superior Court entitled Spirit AeroSystems, Inc. v. The Boeing Company (No. 18-2-16649-7 SEA). Spirit is seeking payment of money that Boeing owes Spirit for product ordered by Boeing and delivered by Spirit. As of the date of filing the complaint, Boeing has underpaid Spirit approximately $64.0. Boeing claims to be withholding money due to customer warranty claims, which are technical in nature and largely relate to designs that predate Spirit’s separation from Boeing in 2005. Spirit disputes its liability for those claims. Spirit is also asking the court to clarify the parties’ contractual obligations, including that Boeing has no right under the parties’ contracts to withhold money presently due based on disputed warranty claims on past orders. |
2018 Amended Restated Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,260 |
Debt Instrument, Face Amount | $ 1,260 |
Debt Instrument, Interest Rate Terms | Each of the 2018 Revolver, the 2018 Term Loan and the Delayed Draw Term Loan matures July 12, 2023, and bears interest, at Spirit’s option, at either LIBOR plus 1.375% or a defined “base rate” plus 0.375%, subject to adjustment to between LIBOR plus 1.125% and LIBOR plus 1.875% (or between base rate plus 0.125% and base rate plus 0.875%, as applicable) based on changes to Spirit’s senior unsecured debt rating provided by Standard & Poor’s Financial Services LLC and/or Moody’s Investors Service, Inc. |
2018 Revolver [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 800 |
Optional Revolver Commitment | 750 |
2018 Term Loan A [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | 206 |
Debt Instrument, Periodic Payment, Principal | 2.6 |
Delayed Draw Term Loan [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 250 |
Debt Instrument, Payment Terms | The principal obligations under the Delayed Draw Term Loan are to be repaid in equal quarterly installments of 1.25% of the outstanding principal amount of the Delayed Draw Term Loan as of March 31, 2019, subject to adjustments for any extension of the availability period of the Delayed Draw Term Loan, with the balance due at maturity of the Delayed Draw Term Loan |
Business Combination (Details)
Business Combination (Details) $ in Millions | Jun. 28, 2018USD ($) |
Business Acquisition [Line Items] | |
Business Acquisition, Transaction Costs | $ 12.1 |
ASCO - purchase price | $ 650 |