Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 20, 2023 | Jun. 30, 2022 | |
Class of Stock [Line Items] | |||
Title of 12(b) Security | Class A common stock, par value $0.01 per share | ||
Security Exchange Name | NYSE | ||
Entity Incorporation, State or Country Code | DE | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 105,250,292 | ||
Entity File Number | 001-33160 | ||
Entity Tax Identification Number | 20-2436320 | ||
Entity Address, Address Line One | 3801 South Oliver | ||
Entity Address, City or Town | Wichita | ||
Entity Address, State or Province | KS | ||
Entity Address, Postal Zip Code | 67210 | ||
City Area Code | 316 | ||
Local Phone Number | 526-9000 | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Shell Company | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Trading Symbol | SPR | ||
Document Annual Report | true | ||
Entity Current Reporting Status | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Registrant Name | Spirit AeroSystems Holdings, Inc. | ||
Entity Central Index Key | 0001364885 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 3,100,000,000 | ||
Trading Symbol | SPR | ||
Document Information [Line Items] | |||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Wichita, Kansas | ||
Auditor Firm ID | 42 |
Cover
Cover | 12 Months Ended |
Dec. 31, 2022 | |
Cover [Abstract] | |
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the 2023 Annual Meeting of Stockholders to be filed not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated herein by reference in Part III of this Annual Report on Form 10-K. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net revenues | $ 5,029.6 | $ 3,953 | $ 3,404.8 |
Operating costs and expenses | |||
Cost of sales | 4,981 | 4,070.8 | 3,845.5 |
Selling, general and administrative | 279.2 | 279.9 | 237.4 |
Restructuring Charges | 0.2 | 8.2 | 73 |
Research and development | 50.4 | 53.3 | 38.8 |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | 0 | 22.9 |
Total operating costs and expenses | 5,310.8 | 4,412.2 | 4,217.6 |
Operating loss | (281.2) | (459.2) | (812.8) |
Interest expense and financing fee amortization | (244.1) | (242.6) | (195.3) |
Other (expense) income, net | 14.1 | (146.6) | 77.8 |
Loss before income taxes and equity in net loss of affiliates | (539.4) | (555.2) | (1,085.9) |
Income tax (provision) benefit | (5.2) | 17.2 | 220.2 |
Loss before equity in net loss of affiliates | (544.6) | (538) | (865.7) |
Equity in net loss of affiliates | (1.6) | (2.8) | (4.6) |
Net loss | $ (545.7) | $ (540.8) | $ (870.3) |
Loss per share | |||
Basic (in dollars per share) | $ (5.21) | $ (5.19) | $ (8.38) |
Earnings Per Share, Diluted | (5.21) | (5.19) | (8.38) |
Common Stock, Dividends, Per Share, Declared | $ 0.03 | $ 0.04 | $ 0.04 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (546.2) | $ (540.8) | $ (870.3) |
Net Income (Loss) Attributable to Noncontrolling Interest | 0.5 | 0 | 0 |
Net income | (545.7) | (540.8) | (870.3) |
Income (Loss) from Equity Method Investments | $ (1.6) | $ (2.8) | $ (4.6) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss | $ (545.7) | $ (540.8) | $ (870.3) |
Other comprehensive (loss) income, net of tax: | |||
Pension, SERP and Retiree medical adjustments, net of tax | (121.4) | 136.3 | (61.5) |
Unrealized foreign exchange gain (loss) on intercompany loan, net of effect | (4.4) | (0.4) | 1.3 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (23.7) | (2) | (10.9) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 18.7 | 0.8 | 10.7 |
Foreign currency translation adjustments | (49.4) | (4.3) | 15.5 |
Total other comprehensive (loss) income, net of tax | (180.2) | 130.4 | (44.9) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0.5 | 0 | 0 |
Total comprehensive loss | $ (725.9) | $ (410.4) | $ (915.2) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension, SERP and Retiree medical adjustments, tax | $ 35.3 | $ (15.1) | $ (8.6) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | (4.6) | 0 | 3.4 |
Unrealized foreign exchange gain (loss) on intercompany loan, tax | 1.8 | 0.2 | (0.4) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | $ 0 | $ (0.3) | $ (3.3) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 658.6 | $ 1,478.6 |
Restricted Cash, Current | 0.2 | 0.3 |
Accounts receivable, net | 489.5 | 461.6 |
Unbilled Receivables, Current | 501 | 443.2 |
Inventory, net | 1,470.7 | 1,382.6 |
Other current assets | 38.3 | 39.7 |
Total current assets | 3,158.3 | 3,806 |
Property, plant and equipment, net | 2,205.9 | 2,385.5 |
Operating Lease, Right-of-Use Asset | 94.3 | 85.3 |
Unbilled Receivable, Non Current | 1.2 | 0 |
Pension assets | 196.9 | 532.5 |
Pension reversion assets | 71.1 | 0 |
Deferred tax asset-non-current, net | 4.8 | 0.4 |
Other assets | 91.8 | 91.6 |
Total assets | 6,666.2 | 7,737.3 |
Liabilities | ||
Accounts payable | 919.8 | 720.3 |
Accrued expenses | 411.7 | 376.1 |
Profit sharing | 40.5 | 63.7 |
Current portion of long-term debt | 53.7 | 49.5 |
Operating Lease, Liability, Current | 8.3 | 8.2 |
Advance payments, short-term | 24.9 | 137.8 |
Contract with Customer, Liability, Current | 111.1 | 97.9 |
Provision for Loss on Contracts | 305.9 | 244.6 |
Deferred revenue and other deferred credits, short-term | 21.7 | 72.7 |
Other current liabilities | 54.9 | 105.2 |
Total current liabilities | 1,952.5 | 1,876 |
Long-term debt | 3,814.9 | 3,742.7 |
Operating Lease, Liability, Noncurrent | 85.4 | 78.8 |
Advance payments, long-term | 199.9 | 201.3 |
Pension/OPEB obligation | 25.2 | 74.8 |
Contract with Customer, Liability, Noncurrent | 245.3 | 289.1 |
Provision for Loss on Contacts, Non Current | 369.2 | 521.6 |
Deferred grant income liability — non-current | 25.7 | 26.4 |
Deferred Tax Liabilities, Net, Noncurrent | 1.3 | 21.8 |
Deferred revenue and other deferred credits | 49 | 32.1 |
Other non-current liabilities | 141.6 | 423.9 |
Stockholders’ Equity | ||
Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued | 0 | 0 |
Additional paid-in capital | 1,179.5 | 1,146.2 |
Accumulated other comprehensive loss | (203.9) | (23.7) |
Retained earnings | 1,232.5 | 1,781.4 |
Treasury Stock, Value | (2,456.7) | (2,456.7) |
Total stockholders' equity | (247.5) | 448.3 |
Noncontrolling interest | 3.7 | 0.5 |
Total equity | (243.8) | 448.8 |
Total liabilities and equity | 6,666.2 | 7,737.3 |
Goodwill | 630.5 | 623.7 |
Intangible Assets, Net (Excluding Goodwill) | $ 211.4 | $ 212.3 |
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Treasury Stock, Shares | 41,587,480 | 41,523,470 |
Class A [Member] | ||
Stockholders’ Equity | ||
Common stock | $ 1.1 | $ 1.1 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 105,252,421 | 105,037,845 |
Class B [Member] | ||
Stockholders’ Equity | ||
Common Stock, Par Value | $ 0 | $ 0 |
Common Stock, Shares Authorized | 0 | 0 |
Common Stock, Shares, Issued | 0 | 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 41,587,480 | 41,523,470 |
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 | 105,252,421 | 105,037,845 |
Class B [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 0 | 0 |
Common stock, shares issued | 0 | 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock, Common [Member] | Noncontrolling Interest |
Treasury Stock, Value | $ (2,456.8) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,761.9 | ||||||
Balance, shares at Dec. 31, 2019 | 104,882,379 | ||||||
Balance at Dec. 31, 2019 | $ 1.1 | $ 1,125 | $ (109.2) | $ 3,201.3 | $ 0.5 | ||
Net loss | (870.3) | ||||||
Dividends, Common Stock, Cash | (4.4) | (4.4) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 952,392 | ||||||
Employee equity awards, value | 26.7 | 26.7 | |||||
Stock forfeitures, shares | 192,111 | ||||||
Net shares settled | 224,964 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 14.5 | 14.5 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 124,466 | ||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 2.6 | 2.6 | |||||
Treasury Stock, Shares, Acquired | 0 | ||||||
Treasury Stock, Value, Acquired, Cost Method | 0 | $ 0.1 | |||||
Stock Repurchased During Period, Value | 0.1 | ||||||
Other Comprehensive Income | (44.9) | ||||||
Balance, shares at Dec. 31, 2020 | 105,542,162 | ||||||
Balance at Dec. 31, 2020 | $ 1.1 | 1,139.8 | (154.1) | 2,326.4 | 0.5 | ||
Other retained earnings | (0.2) | (0.2) | |||||
Treasury Stock, Value | (2,456.7) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 857 | ||||||
Net loss | (540.8) | ||||||
Dividends, Common Stock, Cash | (4.3) | (4.3) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 59,538 | ||||||
Employee equity awards, value | 25.8 | 25.8 | |||||
Stock forfeitures, shares | 523,551 | ||||||
Net shares settled | 116,025 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 5.2 | 5.2 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 66,523 | ||||||
Stock Forfeitures, value | (17.1) | (17.1) | |||||
SERP shares issued | 9,198 | ||||||
Supplemental Retirement Plan Shares Issued Value | 2.9 | 2.9 | |||||
Other Comprehensive Income | 130.4 | ||||||
Balance, shares at Dec. 31, 2021 | 105,037,845 | ||||||
Balance at Dec. 31, 2021 | 448.3 | $ 1.1 | 1,146.2 | (23.7) | 1,781.4 | 0.5 | |
Other retained earnings | 0.1 | 0.1 | |||||
Treasury Stock, Value | (2,456.7) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 448.8 | ||||||
Net loss | (545.7) | ||||||
Dividends, Common Stock, Cash | (3.2) | (3.2) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 338,243 | ||||||
Employee equity awards, value | 36.6 | 36.6 | |||||
Shares Issued, Value, Share-based Payment Arrangement, Forfeited | 0 | ||||||
Stock forfeitures, shares | 95,262 | ||||||
Net shares settled | 163,126 | ||||||
Payment, Tax Withholding, Share-based Payment Arrangement | 7.2 | 7.2 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 134,721 | ||||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 3.9 | ||||||
Stock Forfeitures, value | 0 | ||||||
Supplemental Retirement Plan Shares Issued Value | 3.9 | ||||||
Other Comprehensive Income | (180.2) | ||||||
Balance, shares at Dec. 31, 2022 | 105,252,421 | ||||||
Balance at Dec. 31, 2022 | (247.5) | $ 1.1 | $ 1,179.5 | $ (203.9) | 1,232.5 | 3.7 | |
Other retained earnings | 3.2 | $ 0 | $ 3.2 | ||||
Treasury Stock, Value | (2,456.7) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (243.8) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Adjustments to reconcile net loss to net cash used in operating activities | |||
Depreciation and amortization expense | $ 337.1 | $ 327.6 | $ 277.6 |
Amortization of deferred financing fees | 11.9 | 15.1 | 20.4 |
Accretion of customer supply agreement | 2.2 | 3.5 | 2 |
Employee stock compensation expense | 36.6 | 25.8 | 24.2 |
Loss (Gain) from derivative instruments | 17.1 | (0.1) | 0 |
(Gain) loss from foreign currency transactions | (18.9) | (4.4) | 25 |
Write off of Deferred Debt Issuance Cost | 2.6 | ||
Gains (Losses) on Extinguishment of Debt | 7.2 | 0 | 0 |
Loss on disposition of assets | 1.1 | 4.1 | 26.4 |
Deferred taxes | 8.5 | (4.5) | 94 |
Pension and other post-retirement plans expense (income) | 37.1 | (109.1) | 44.5 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | 19.5 | (173.8) | (5.6) |
Grant liability amortization | (1.5) | (1.5) | (3.5) |
Equity in net loss of affiliates | 1.6 | 2.8 | 4.6 |
Increase (Decrease) in Forward Position | (89.7) | (10.4) | 216.5 |
Changes in assets and liabilities | |||
Accounts receivable, net | (39.4) | 51.5 | 168.3 |
Inventory, net | (118.2) | 30.9 | (39.5) |
Increase (Decrease) in Contract with Customer, Asset | (63.9) | (70.9) | 168.2 |
Accounts payable and accrued liabilities | 220.7 | 160.2 | (592.7) |
Profit sharing/deferred compensation | (22.5) | 6.2 | (28.2) |
Advance payments | (133.2) | 2.7 | (21) |
Income taxes receivable/payable | 9.5 | 302.4 | (246.3) |
Increase (Decrease) in Contract with Customer, Liability | (30.4) | (82.4) | (49.5) |
Other | (14.3) | 1.9 | 40 |
Net cash used in operating activities | (394.6) | (63.2) | (744.9) |
Investing activities | |||
Purchase of property, plant and equipment | (121.6) | (150.6) | (118.9) |
Payments to Acquire Businesses, Net of Cash Acquired | (31.3) | (21.1) | (388.5) |
Payments for (Proceeds from) Other Investing Activities | 2.6 | (7.9) | (5.4) |
Net cash used in investing activities | (155.5) | (163.8) | (502) |
Financing activities | |||
Proceeds from Issuance of Senior Long-term Debt | 900 | 0 | 1,700 |
Payments on revolving credit facility | 0 | 0 | (800) |
Principal payments of debt | (47.6) | (42.1) | (31.6) |
Repayments of Debt | (6) | (401.5) | (439.7) |
Early Repayment of Senior Debt | (779.2) | (300) | 0 |
Payment, Tax Withholding, Share-based Payment Arrangement | (7.2) | (5.2) | (14.5) |
Proceeds from Stock Plans | 3.9 | 3 | 2.6 |
Debt issuance and financing costs | (32.3) | (3.4) | (41.9) |
Payments of Dividends | (4.2) | (4.3) | (15.4) |
Proceeds from Noncontrolling Interests | 3.7 | ||
Proceeds from (Payments for) Other Financing Activities | (289.5) | 0 | 0 |
Net cash (used in) provided by financing activities | (261) | (163.5) | 769.5 |
Proceeds from Issuance of Secured Debt | 0 | 600 | 400 |
Net decrease in cash, cash equivalents, and restricted cash for the period | (820) | (394.7) | (474.1) |
Cash, cash equivalents, and restricted cash, end of period | 658.6 | 1,478.6 | 1,873.3 |
Restricted Cash, Current | 0.2 | 0.3 | 0.3 |
Restricted Cash and Investments, Noncurrent | 19.6 | 19.5 | 19.5 |
Supplemental information | |||
Interest paid | 222.5 | 198.4 | 146.6 |
Proceeds from Income Tax Refunds | (15.2) | ||
Income taxes paid | (314.4) | (62.5) | |
Property acquired through capital leases | 49.6 | 32.1 | 26.3 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 678.4 | 1,498.4 | 1,893.1 |
Proceeds from (Repayments of) Other Debt | 0 | (10) | 10 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (546.2) | (540.8) | (870.3) |
Gain (Loss) on Contract Termination | (21.9) | 0 | 0 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (8.9) | (4.2) | 3.3 |
Interest paid | 222.5 | 198.4 | 146.6 |
Proceeds from Income Tax Refunds | 15.2 | ||
Income taxes paid | 314.4 | 62.5 | |
Lease Obligation Incurred | 49.6 | 32.1 | 26.3 |
Payments to Acquire Businesses, Net of Cash Acquired | $ 31.3 | $ 21.1 | $ 388.5 |
Nature of Business
Nature of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Spirit AeroSystems Holdings, Inc. and its consolidated subsidiaries (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 subsidiaries, including Spirit AeroSystems, Inc. (“Spirit”). As used herein, “Company” refer to Spirit AeroSystems Holdings, Inc. and its consolidated subsidiaries. References to “Spirit” refer only to the Company's subsidiary, Spirit AeroSystems, Inc., and references to “Spirit Holdings” or “Holdings” refer only to Spirit AeroSystems Holdings, Inc. The Company's headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Tulsa, Oklahoma; Prestwick, Scotland; Wichita, Kansas; Kinston, North Carolina; Subang, Malaysia; Saint-Nazaire, France; Biddeford, Maine; Woonsocket, RI; Belfast, Northern Ireland; Morocco, Casablanca; and Dallas, Texas. The Company had previously announced site consolidation activities, including at the McAlester, Oklahoma and San Antonio, Texas sites. The work transfer and closure activities for these sites were complete as of December 31, 2022. The Company largely supports commercial aerostructures customers, and the Company's financial results and prospects are almost entirely dependent on global commercial aviation demand and the resulting production rates of the Company's customers. The Company's customers, including Boeing and Airbus, have in the past decreased production rates across many programs due to decreased demand for aviation, including as a result of the COVID-19 pandemic, and may in the future continue to adjust production rates or suspend production, potentially without early warning and within a short time horizon. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | Adoption of Accounting Standards Adoption of ASU 2021-10 In November 2021, the FASB issued ASU No. 2021-10, Government Assistance (Topic 832) Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). The amendments in the update require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. ASU 2021-10 is effective for all entities within its scope for financial statements issued for annual periods beginning after December 15, 2021. An entity should apply ASU 2021-10 either prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions entered into after the date of initial application, or retrospectively to those transactions. The adoption of ASU 2021-10 did not have a material impact on the Company's consolidated financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 4. New Accounting Pronouncements In December 2022, the FASB issued ASU No. 2022-06, which defers the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) from December 31, 2022 to December 31, 2024. ASU No. 2022-06 was effective upon issuance. Topic 848 provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, providing optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. To date, the Company has not had a modification to which the application of this guidance is applicable. The Company will continue evaluating the potential impact of adopting this guidance on its consolidated financial statements . In September 2022, the FASB issued ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50) . The amendments in the update require additional qualitative and quantitative disclosure about supplier finance programs. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. ASU No. 2022-04 is effective on a retrospective basis for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for an amended disclosure requirement related to certain rollforward information, which is effective on a prospective basis for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance, which is not expected to have a significant impact on its consolidated financial statements. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying 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 U.S. (“GAAP”) and Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Spirit is the majority participant in the Kansas Industrial Energy Supply Company ("KIESC"), a tenancy-in-common with other Wichita companies established to purchase natural gas. KIESC is fully consolidated as the Company owns 77.8% of the entity’s equity. Spirit has a controlling interest in, and fully consolidates, its subsidiary Spirit Evergreen Aftermarket Solutions Co., Ltd., a joint venture with Evergreen Technologies Corporation to provide MRO services to the Asia-Pacific market. The Company’s U.K. subsidiary in Prestwick uses local currency, the British pound sterling, as its functional currency, and the Malaysian subsidiary also uses the British pound sterling as its functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. As part of the monthly consolidation process, the functional currencies of the Company’s international subsidiaries are translated to U.S. dollars using the end-of-month translation rate for assets and liabilities and average period currency translation rates for revenue and income accounts. 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. 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 at standalone selling prices, in which case the modification is treated as a separate contract. If not, depending on whether the remaining performance obligations are distinct from the goods or services transferred on or before the modification, the modification is either treated prospectively as if it were a termination of the existing contract and the creation of a new contract, treated as if it were a part of the existing contract, or treated as some combination. 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 impact of loss contracts. The Company typically provides warranties on all the Company's products and services. Generally, warranties are not priced separately and customers cannot purchase them independently of the products or services under contract, so they do not create performance obligations. The Company's 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 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, the Company 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. 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 commercial, defense and space, and aftermarket 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 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”) are 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 for more than twenty years. Customers generally contract with the Company for requirements 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 an accounting 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. When the Company experiences abnormal production costs such as excess capacity costs the Company will expense the costs in the period incurred separately from the costs incurred for satisfaction of the performance obligations under the Company's contracts with customers. Revenue for performance obligations that are not recognized over time are recognized at the point in time when control transfers to the customer. 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. Additionally, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. 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. 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. Research and Development Research and development includes costs incurred for experimentation, design, and testing that are expensed as incurred. Cash and Cash Equivalents Cash and cash equivalents represent all highly liquid investments with original maturities of three months or less. Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Unbilled receivables are recorded on the balance sheet as contract assets, as per ASC 606 guidance. Management assesses and records an allowance for credit losses on financial assets within the scope of ASU 2016-13 using the current expected credit loss ("CECL") model. The amount necessary to adjust the allowance for credit losses to management’s current estimate, as of the reporting date, on these assets is recorded in net income as credit loss expense. All credit losses reported in accordance with ASU 2016-13 were on trade receivables and/or contract assets arising from the Company’s contracts with customers. See Note 6, Accounts Receivable, net , for more information. The Company has three agreements to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus, and Rolls-Royce to a third-party financial institution. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and continue to allow the Company to monetize the receivables prior to the payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of Boeing’s and Airbus’s financial condition. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the Company's balance sheet. For additional information on the sale of receivables see Note 6, Accounts Receivable, net . Inventory Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. Production costs for contracts, including costs expected to be recovered on specific anticipated contracts (work that has commenced because the Company expects the customer to exercise options), are classified as work-in-process and include direct material, labor, overhead, and purchases. 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. Revenue and related cost of sales are recognized as the performance obligations are satisfied. When the Company experiences abnormal production costs, such as excess capacity costs, the Company will expense the costs in the period incurred and these costs are excluded from inventoriable costs. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by evaluating inventory of individual raw materials and parts against both historical usage rates and forecasted production requirements. See Note 9, Inventory . Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by the Company, and has an acquisition cost of greater than $0.1. The Company applies the same criteria for capitalizing implementation costs incurred in a cloud computing arrangement hosted by the vendor. Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. See Note 10, Property, Plant and Equipment, net. Impairment or Disposal of Long-Lived Assets The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment whenever events or changes in circumstances indicate that the recorded amount may not be recoverable. Assets are classified as either held-for-use or available-for-sale. For held-for-use assets, if indicators are present, the Company performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset group in question to its carrying amount. If the undiscounted cash flows used in the recoverability test are less than the long-lived asset group’s carrying amount, the Company determines the fair value of the long-lived asset group and recognize an impairment loss if the carrying amount of the long-lived asset group exceeds its fair value. For assets available-for-sale, a loss is recognized when the recorded amount exceeds the fair value less cost to sell. Business Combinations and Goodwill The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations. Transaction costs related to business combinations are expensed as incurred. Assets acquired and liabilities assumed are measured and recognized based on their estimated fair values at the acquisition date, any excess of the purchase consideration when compared to the fair value of the net tangible and intangible assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. In some cases, the Company uses discounted cash flow analyses, which are based on estimates of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long term business plans and recent operating performance. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, the business combination is recorded and disclosed on a preliminary basis. Subsequent to the acquisition date, and not later than one year from the acquisition date, adjustments to the initial preliminary recognized amounts are recorded to the extent new information is obtained about the measurement of assets and liabilities that existed as of the date of the acquisition. The Company assesses goodwill for impairment annually as of the first day of the fourth quarter or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. The Company tests goodwill for impairment by performing a qualitative assessment or quantitative test at the reporting unit level. In performing a qualitative assessment, the Company evaluates company-specific, market and industry, economic, and other relevant factors that may impact the fair value of reporting units or the carrying value of the net assets of the respective reporting unit. If it is determined that it is more likely than not that the carrying value of the net assets is more than the fair value of the respective reporting unit, then a quantitative test is performed, the Company may in any event opt to bypass the qualitative assessment at the annual assessment date and perform a quantitative assessment. Where the quantitative test is used, the Company compares the carrying value of net assets to the estimated fair value of the respective reporting unit. If the fair value is determined to be less than carrying value, a goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. Derivative Instruments and Hedging Activity The Company uses derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates and interest rates. Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Changes in fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether the Company elected hedge accounting and whether a derivative is effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item or when the hedge is no longer effective. Cash flows associated with the Company’s derivatives are presented as a component of the operating section of the statement of cash flows. The use of derivatives has generally been limited to interest rate swaps and foreign currency forward contracts. The Company enters into foreign currency forward contracts to reduce the risks associated with the changes in foreign exchange rates on sales and cost of sales denominated in currencies other than the entities’ functional currency. See Note 15, Derivative and Hedging Activities. Fair Value of Financial Instruments Financial instruments are measured in accordance with FASB authoritative guidance related to fair value measurements. This guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. See Note 14, Fair Value Measurements . Income Taxes Income taxes are accounted for in accordance with FASB authoritative guidance on accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Tax rate changes impacting these assets and liabilities are recognized in the period during which the rate change occurs. Deferred tax assets are periodically evaluated to determine their recoverability and whether or not a valuation allowance is necessary. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. This assessment is completed on a taxing jurisdiction and entity filing basis. Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding the Company’s prior earnings history including the forward losses previously recognized in the U.S. and U.K., management determined that it was necessary to establish a valuation allowance against nearly all of its net U.S. and U.K. deferred tax assets at December 31, 2020. This determination was made as the Company entered into a U.S. cumulative loss position during the first half of 2021, as prior period positive earnings fell outside of the three-year measurement period. Additionally, entities of the U.K. operations are in cumulative loss positions after the inclusion of 2022, 2021 and 2020 losses. Once a company anticipates or enters a cumulative three-year loss position, there is a presumption that a company should no longer rely solely on projected future income in determining whether the deferred tax asset is more likely than not to be realized. Changes in the Company's estimates and judgments regarding realization of deferred tax assets may result in an increase or decrease to tax expense and/or other comprehensive income, which would be recorded in the period in which the change occurs. The Company records income tax provision or benefit based on the net income earned or net loss incurred in each tax jurisdiction and the tax rate applicable to that income or loss. In the ordinary course of business, there are transactions for which the ultimate tax outcome is uncertain. These uncertainties are accounted for in accordance with FASB authoritative guidance on accounting for the uncertainty in income taxes. The final tax outcome for these matters may be different than management's original estimates made in determining the income tax provision. A change to these estimates could impact the effective tax rate and net income or loss in subsequent periods. The Company uses the flow-through accounting method for tax credits. Under this method, tax credits reduce income tax expense. See Note 20, Income Taxes , for further discussion. Stock-Based Compensation and Other Share-Based Payments Many of the Company’s employees are participants in the Omnibus Incentive Plan of 2014 (as amended, the “Omnibus Plan”). The expense attributable to the Company’s employees is recognized over the period the amounts are earned and vested, as described in Note 19, Stock Compensation . The expense includes an estimate of expected forfeitures, based on historical forfeiture trends. Government Assistance The Company has received grants in the form of government funding for various capital and development initiatives. For agreements where the government is funding (or partially funding) capital, the associated fixed assets generally remain on the Property, plant and equipment, net line item on the Company’s Consolidated Balance Sheet at full cost, with deferred grant income separately recorded as a liability on the Company’s Consolidated Balance Sheet for the amounts funded. The liability is amortized each period to offset the related costs for which the grant was intended to compensate on a systematic basis (e.g. over the depreciable lives of the capital investments). The amount of deferred grant income within the Deferred grant income liability — non-current line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $18.0. The amount of deferred grant income within the Other non-current liabilities line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $8.2 . The amount of deferred grant income within the Property, plant and equipment, net line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $14.2. The amount of deferred grant income amortized as a reduction to the Cost of sales and Other (expense) income, net line items on the Consolidated Statements of Operations for the twelve months ended December 31, 2022 was $3.3 and $0.3, respectively. These agreements generally have recapture provisions related to the Company achieving a certain level of capital investment on the project. In instances where the government is funding (or partially funding) business development other than capital projects, recognition is based on the specific terms associated with the various grants, generally resulting in the government funding being recognized as a reduction to related expenses in the period which received, or the government funding being recorded as deferred grant income within the liabilities on the Company’s Consolidated Balance Sheet. The amount of deferred grant income within the Deferred grant income liability — non-current line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of business development projects was $7.7. These liabilities are amortized over a period for which performance criteria provisions are included. Performance criteria provisions are generally related to achieving and/or maintaining a specific level of employment for the project. These agreements generally have recapture provisions related to the Company achieving the specified performance provisions on the project. As the performance criteria are met, or in instances where there are no performance criteria or applicable recapture provisions, the government funding is recognized as a reduction to related expenses. The amount of government assistance recognized as a reduction to the Cost of sales line item on the Consolidated Statements of Operations for the twelve months ended December 31, 2022 was $1.4, the amount recognized as a reduction to the Selling, general and administrative line item was $0.5. The Company’s grant claim filed under the Aviation Manufacturing Jobs Protection Program ("AMJPP") was approved by the U.S. Department of Transportation. AMJPP was a component of the American Rescue Plan Act of 2021. This program provided funding for a portion of the compensation costs of certain categories of employees for up to six months. In return, the Company was required to make several commitments, including a commitment that the Company would not involuntarily furlough or lay off employees within those categories of employees during the same six month period. As of December 31, 2022, the Company has been paid of the full amount of the award of $75.5, of which half was received in 2021 and half in 2022. The full amount of the award has been amortized against related expenses on the Consolidated Statements of Operations, including $32.6 that was amortized against Cost of sales and $1.5 against Selling, general and administrative in the twelve months ended December 31, 2022 and the remainder that was amortized against Cost of sales in the prior |
Government Assistance | Government Assistance The Company has received grants in the form of government funding for various capital and development initiatives. For agreements where the government is funding (or partially funding) capital, the associated fixed assets generally remain on the Property, plant and equipment, net line item on the Company’s Consolidated Balance Sheet at full cost, with deferred grant income separately recorded as a liability on the Company’s Consolidated Balance Sheet for the amounts funded. The liability is amortized each period to offset the related costs for which the grant was intended to compensate on a systematic basis (e.g. over the depreciable lives of the capital investments). The amount of deferred grant income within the Deferred grant income liability — non-current line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $18.0. The amount of deferred grant income within the Other non-current liabilities line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $8.2 . The amount of deferred grant income within the Property, plant and equipment, net line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of capital projects was $14.2. The amount of deferred grant income amortized as a reduction to the Cost of sales and Other (expense) income, net line items on the Consolidated Statements of Operations for the twelve months ended December 31, 2022 was $3.3 and $0.3, respectively. These agreements generally have recapture provisions related to the Company achieving a certain level of capital investment on the project. In instances where the government is funding (or partially funding) business development other than capital projects, recognition is based on the specific terms associated with the various grants, generally resulting in the government funding being recognized as a reduction to related expenses in the period which received, or the government funding being recorded as deferred grant income within the liabilities on the Company’s Consolidated Balance Sheet. The amount of deferred grant income within the Deferred grant income liability — non-current line item on the Company’s Consolidated Balance Sheet as of December 31, 2022 related to these types of business development projects was $7.7. These liabilities are amortized over a period for which performance criteria provisions are included. Performance criteria provisions are generally related to achieving and/or maintaining a specific level of employment for the project. These agreements generally have recapture provisions related to the Company achieving the specified performance provisions on the project. As the performance criteria are met, or in instances where there are no performance criteria or applicable recapture provisions, the government funding is recognized as a reduction to related expenses. The amount of government assistance recognized as a reduction to the Cost of sales line item on the Consolidated Statements of Operations for the twelve months ended December 31, 2022 was $1.4, the amount recognized as a reduction to the Selling, general and administrative line item was $0.5. The Company’s grant claim filed under the Aviation Manufacturing Jobs Protection Program ("AMJPP") was approved by the U.S. Department of Transportation. AMJPP was a component of the American Rescue Plan Act of 2021. This program provided funding for a portion of the compensation costs of certain categories of employees for up to six months. In return, the Company was required to make several commitments, including a commitment that the Company would not involuntarily furlough or lay off employees within those categories of employees during the same six month period. As of December 31, 2022, the Company has been paid of the full amount of the award of $75.5, of which half was received in 2021 and half in 2022. The full amount of the award has been amortized against related expenses on the Consolidated Statements of Operations, including $32.6 that was amortized against Cost of sales and $1.5 against Selling, general and administrative in the twelve months ended December 31, 2022 and the remainder that was amortized against Cost of sales in the prior year. Additionally, in 2022 the Company received a $3.6 grant from the State of North Carolina’s Business Recovery Grant Program, which provided assistance to eligible North Carolina businesses that experienced a significant economic loss due to COVID-19. The full amount of the grant is included in the Other (expense) income, net line item on the Consolidated Statements of Operations for the twelve months ended December 31, 2022. |
New Accounting Pronouncements (
New Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | 4. New Accounting Pronouncements In December 2022, the FASB issued ASU No. 2022-06, which defers the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) from December 31, 2022 to December 31, 2024. ASU No. 2022-06 was effective upon issuance. Topic 848 provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, providing optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. To date, the Company has not had a modification to which the application of this guidance is applicable. The Company will continue evaluating the potential impact of adopting this guidance on its consolidated financial statements . In September 2022, the FASB issued ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50) . The amendments in the update require additional qualitative and quantitative disclosure about supplier finance programs. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. ASU No. 2022-04 is effective on a retrospective basis for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for an amended disclosure requirement related to certain rollforward information, which is effective on a prospective basis for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance, which is not expected to have a significant impact on its consolidated financial statements. |
Accounts Receivable, net
Accounts Receivable, net | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [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. Unbilled receivables are reflected under contract assets on the balance sheet. Management assesses and records an allowance for credit losses using a current expected credit loss ("CECL") model. See Allowance for Credit Losses, below . Accounts receivable, net consists of the following: December 31, December 31, Trade receivables $ 477.9 $ 412.0 Other 19.7 58.1 Less: allowance for credit losses (8.1) (8.5) Accounts receivable, net $ 489.5 $ 461.6 _______________________________________ Other receivables as of December 31, 2021 in the table above includes an amount related to the Department of Transportation’s approval of the Company’s grant claim filed under the Aviation Manufacturing Jobs Protection Program, a component of the American Rescue Plan Act of 2021. This program provided funding for a portion of the compensation costs of certain categories of employees for up to six months. In return, the Company was required to make several commitments, including a commitment that the Company would not involuntarily furlough or lay off employees within those categories of employees during the same six month period. As of December 31, 2021, the Company's other receivable balance, noted in the table above, included $37.7 for the program, reflecting the amount that had not yet been paid of the full amount of the award of $75.5. As of December 31, 2022, the amount in other receivables was $0, reflecting a payment of $37.7 received in the twelve months ended December 31, 2022. The full amount of the award has been amortized against Cost of sales on the Consolidated Statements of Operations as of December 31, 2022. The Company has agreements (through its subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus Group SE and its affiliates (collectively, “Airbus”), and Rolls-Royce PLC and its affiliates (collectively, “Rolls-Royce”) to third-party financial institutions. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and they continue to allow the Company to monetize the receivables prior to their payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of the applicable customer’s financial condition. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being derecognized from the Company's balance sheet. For the twelve months ended December 31, 2022, $2,899.8 of accounts receivable have been sold via this arrangement. The proceeds from these sales of receivables are included in cash from operating activities in the Consolidated Statements of Cash Flows. The recorded net loss on sale of receivables is $23.4 for the year ended December 31, 2022 and is included in Other (expense) income. See Note 23, Other Income (Expense), net . Allowance for Credit Losses Management assesses and records an allowance for credit losses on financial assets within the scope of ASU 2016-13 using the CECL model. The amount necessary to adjust the allowance for credit losses to management’s current estimate, as of the reporting date, on these assets is recorded in net income as credit loss expense. All credit losses reported in accordance with ASU 2016-13 were on trade receivables and/or contract assets arising from the Company’s contracts with customers. In determining the appropriate methodology to use within the CECL model for receivables and contract assets arising from the Company’s contracts with customers, the Company considered the risk characteristics of the applicable assets. The Company segregated the trade receivables and contract assets into “pools” of assets at the segment level. The Company's assessment was based on similarity of risk characteristics shared by these pool of assets. Management observed that risks for collectability, with regard to the trade receivables and contract assets resulting from contracts with customers include: macro level economic conditions that impact all of the Company's customers, macro-level market conditions that could impact the Company's customers in certain aircraft categories, certain customer specific market conditions, certain customer specific economic conditions, and certain customer specific administrative conditions. The Company selected a loss-rate method for the CECL model, based on the relationship between historical write-offs of receivables and the underlying sales. Utilizing this model, a loss-rate is applied against the cost of applicable assets, at the time the asset is established. The loss rate reflects the Company’s current estimate of the risk of loss (even when that risk is remote) over the expected life of the assets. The Company's policy is to deduct write-offs from the allowance for credit losses account in the period in which the financial assets are deemed uncollectible. The changes to the allowance for credit losses and related credit loss expense reported for the twelve months ended December 31, 2022 were solely based on the results of the CECL model. During the twelve months ended December 31, 2022 there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material. |
Credit Loss, Financial Instrument | Management assesses and records an allowance for credit losses on financial assets within the scope of ASU 2016-13 using the CECL model. The amount necessary to adjust the allowance for credit losses to management’s current estimate, as of the reporting date, on these assets is recorded in net income as credit loss expense. All credit losses reported in accordance with ASU 2016-13 were on trade receivables and/or contract assets arising from the Company’s contracts with customers. In determining the appropriate methodology to use within the CECL model for receivables and contract assets arising from the Company’s contracts with customers, the Company considered the risk characteristics of the applicable assets. The Company segregated the trade receivables and contract assets into “pools” of assets at the segment level. The Company's assessment was based on similarity of risk characteristics shared by these pool of assets. Management observed that risks for collectability, with regard to the trade receivables and contract assets resulting from contracts with customers include: macro level economic conditions that impact all of the Company's customers, macro-level market conditions that could impact the Company's customers in certain aircraft categories, certain customer specific market conditions, certain customer specific economic conditions, and certain customer specific administrative conditions. The Company selected a loss-rate method for the CECL model, based on the relationship between historical write-offs of receivables and the underlying sales. Utilizing this model, a loss-rate is applied against the cost of applicable assets, at the time the asset is established. The loss rate reflects the Company’s current estimate of the risk of loss (even when that risk is remote) over the expected life of the assets. The Company's policy is to deduct write-offs from the allowance for credit losses account in the period in which the financial assets are deemed uncollectible. The changes to the allowance for credit losses and related credit loss expense reported for the twelve months ended December 31, 2022 were solely based on the results of the CECL model. During the twelve months ended December 31, 2022 there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material. |
Contract with customer, asset a
Contract with customer, asset and liability (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
contract with customer, asset and liability [Text Block] | 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 have been fully satisfied and billing is expected within 12 months of contract origination and contract assets, long-term are fully satisfied obligations that are expected to be billed in more than 12 months. No impairments to contract assets were recorded for the twelve months ended December 31, 2022 or December 31, 2021. See also Note 6, Accounts Receivable, net . 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. December 31, 2022 December 31, 2021 Change Contract assets $ 502.2 $ 443.2 $ 59.0 Contract liabilities (356.4) (387.0) 30.6 Net contract assets (liabilities) $ 145.8 $ 56.2 $ 89.6 For the period ended December 31, 2022, the increase in contract assets reflects the net impact of additional revenue recognized in excess of billed revenues during the period. The decrease in contract liabilities reflects the net decrease of deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $72.8 of revenue that was included in the contract liability balance at the beginning of the period. December 31, 2021 December 31, 2020 Change Contract assets $ 443.2 $ 372.8 $ 70.4 Contract liabilities (387.0) (469.6) 82.6 Net contract assets (liabilities) $ 56.2 $ (96.8) $ 153.0 For the period ended December 31, 2021, the increase in contract assets reflects the net impact of additional revenue recognized in excess of billed revenues during the period. The decrease in contract liabilities reflects the net decrease of deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $192.4 of revenue that was included in the contract liability balance at the beginning of the period. |
Revenue Disaggregation and Outs
Revenue Disaggregation and Outstanding Performance Obligations (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue, Performance Obligation [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 8. Revenue Disaggregation and Outstanding Performance Obligations 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. Additionally, the Company disaggregates revenue based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 26, Segment and Geographical Information . The following table disaggregates revenues by the method of performance obligation satisfaction: For the Twelve Months Ended Revenue December 31, December 31, Contracts with performance obligations satisfied over time $ 3,684.8 $ 3,040.3 Contracts with performance obligations satisfied at a point in time 1,344.8 912.7 Total Revenue $ 5,029.6 $ 3,953.0 The following table disaggregates revenue by major customer: For the Twelve Months Ended Customer December 31, December 31, Boeing $ 3,008.9 $ 2,206.0 Airbus 1,098.2 945.6 Other 922.5 801.4 Total net revenues $ 5,029.6 $ 3,953.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Twelve Months Ended Location December 31, December 31, United States $ 3,814.5 $ 2,822.2 International United Kingdom 632.8 580.4 Other 582.3 550.4 Total International 1,215.1 1,130.8 Total Revenue $ 5,029.6 $ 3,953.0 Remaining Performance Obligations Unsatisfied, or partially unsatisfied, performance obligations currently under contract that are expected to be recognized to revenue in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below. 2023 2024 2025 2026 and After Unsatisfied performance obligations $4,216.9 $4,467.4 $975.3 $247.1 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
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 capitalized preproduction costs. Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. 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 . December 31, 2022 December 31, 2021 Raw materials $ 332.7 $ 301.4 Work-in-process (1) 1,044.9 999.1 Finished goods 69.4 56.9 Product inventory 1,447.0 1,357.4 Capitalized pre-production 23.7 25.2 Total inventory, net $ 1,470.7 $ 1,382.6 _______________________________________ (1) Work-in-process inventory includes direct labor, direct material, and overhead 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 over time using the input method. For the periods ended December 31, 2022 and December 31, 2021, work-in-process inventory includes $392.2 and $381.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the period. Product inventory, summarized in the table above, is shown net of valuation reserves of $136.8 and $97.3 as of December 31, 2022 and December 31, 2021, respectively. The increase in reserves from the prior period was driven by reserves recorded against inventory as of December 31, 2022 that were impacted by the suspension of activities in Russia. Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for the twelve months ended December 31, 2022 includes $157.3 of excess capacity production costs related to temporary B737 MAX, A220, and A320 production schedule changes. Cost of sales also includes abnormal costs related to workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies for the twelve months ended December 31, 2022 of $9.6. Cost of sales for the twelve months ended December 31, 2021 includes $217.5 of excess capacity production costs related to temporary B737 MAX, A220, and A320 production schedule changes and abnormal costs related to workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies for the twelve months ended December 31, 2021 of $12.0 . |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | Property, plant and equipment, net consists of the following: December 31, 2022 December 31, 2021 Land $ 30.1 $ 30.7 Buildings (including improvements) 1,269.1 1,242.0 Machinery and equipment 2,365.1 2,276.5 Tooling 1,055.9 1,051.1 Capitalized software 336.1 323.0 Construction-in-progress 102.2 117.1 Total 5,158.5 5,040.4 Less: accumulated depreciation (2,952.6) (2,654.9) Property, plant and equipment, net $ 2,205.9 $ 2,385.5 Capitalized interest was $3.8, $6.1, and $5.0 for the twelve months ended December 31, 2022, 2021 and 2020, respectively. Repair and maintenance costs are expensed as incurred. The Company recognized repair and maintenance costs of $161.9, $158.8, and $119.7 for the twelve months ended December 31, 2022, 2021 and 2020, 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 $23.4, $16.7, and $16.1 for the twelve months ended December 31, 2022, 2021, and 2020, respectively. The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. There was no impairment f or the twelve months ended December 31, 2022 and December 31, 2021. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in ROU assets (long-term), short-term operating lease liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheet. Finance leases are included in Property, Plant and Equipment, current portion of long-term debt, and long-term debt. ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the balance sheet. The aggregate amount of lease cost for leases with a term of 12 months or less is not material. The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease components as a single lease component. A portfolio approach is applied to effectively account for the assets and liabilities for those specific leases referenced above. The Company does not have any material leases containing variable lease payments or residual value guarantees. The Company also does not have any material subleases. The Company currently has operating and finance leases for items such as manufacturing facilities, corporate offices, manufacturing equipment, transportation equipment, and vehicles. Majority of the Company's active leases have remaining lease terms that range between less than o ne year to 18 years, some of which i nclude options to extend the leases for up to 30 years, and some of which include options to terminate the leases within one year. |
Lessee Disclosure [Abstract] | |
Lessee, Finance Leases | For the twelve months ended December 31, 2022, total net lease cost was $54.3. This was comprised of $13.6 of operating lease costs, $33.6 amortization of assets related to finance leases, and $7.1 interest on finance lease liabilities. For the twelve months ended December 31, 2021, total net lease cost was $47.3. This was comprised of $11.5 of operating lease costs, $28.8 amortization of assets related to finance leases, and $7.0 interest on finance lease liabilities. For the twelve months ended December 31, 2020, total net lease cost was $36.8. This was comprised of $9.0 of operating lease costs, $21.5 of amortization of assets related to finance leases, and $6.3 interest on finance lease liabilities. Supplemental cash flow information related to leases was as follows: For the Twelve Months Ended For the Twelve Months Ended December 31, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13.1 $ 10.9 Operating cash flows from finance leases $ 7.1 $ 7.0 Financing cash flows from finance leases $ 44.4 $ 40.9 ROU assets obtained in exchange for lease obligations: Operating leases $ 11.2 $ 20.8 Supplemental balance sheet information related to leases: December 31, 2022 December 31, 2021 Finance leases: Property and equipment, gross $ 295.4 $ 266.1 Accumulated amortization (103.4) (73.1) Property and equipment, net $ 192.0 $ 193.0 The weighted average remaining lease term as of December 31, 2022 for operating and finance leases was 31.7 years and 5.3 years, respectively. Th e weighted average discount rate as of December 31, 2022 for operating and finance leases was 5.8% and 5.0%, respectively. See Note 16, Debt , for current and non-current finance lease obligations. The weighted average remaining lease term as of December 31, 2021 for operating and finance leases was 36.3 years and 4.9 years, respectively. The weighted average discount rate as of December 31, 2021 for operating and finance leases was 5.6% and 4.5%, respectively. As of December 31, 2022, remaining maturities of lease liabilities were as follows: 2023 2024 2025 2026 2027 2028 and thereafter Total Lease Payments Less: Imputed Interest Total Lease Obligations Operating Leases $ 13.6 $ 13.0 $ 13.1 $ 11.3 $ 8.8 $ 161.2 $ 221.0 $ (127.3) $ 93.7 Financing Leases $ 47.7 $ 39.9 $ 25.8 $ 18.7 $ 7.5 $ 26.2 $ 165.8 $ (21.3) $ 144.5 |
Lessee, Operating Leases | For the twelve months ended December 31, 2022, total net lease cost was $54.3. This was comprised of $13.6 of operating lease costs, $33.6 amortization of assets related to finance leases, and $7.1 interest on finance lease liabilities. For the twelve months ended December 31, 2021, total net lease cost was $47.3. This was comprised of $11.5 of operating lease costs, $28.8 amortization of assets related to finance leases, and $7.0 interest on finance lease liabilities. For the twelve months ended December 31, 2020, total net lease cost was $36.8. This was comprised of $9.0 of operating lease costs, $21.5 of amortization of assets related to finance leases, and $6.3 interest on finance lease liabilities. Supplemental cash flow information related to leases was as follows: For the Twelve Months Ended For the Twelve Months Ended December 31, 2022 December 31, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 13.1 $ 10.9 Operating cash flows from finance leases $ 7.1 $ 7.0 Financing cash flows from finance leases $ 44.4 $ 40.9 ROU assets obtained in exchange for lease obligations: Operating leases $ 11.2 $ 20.8 Supplemental balance sheet information related to leases: December 31, 2022 December 31, 2021 Finance leases: Property and equipment, gross $ 295.4 $ 266.1 Accumulated amortization (103.4) (73.1) Property and equipment, net $ 192.0 $ 193.0 The weighted average remaining lease term as of December 31, 2022 for operating and finance leases was 31.7 years and 5.3 years, respectively. Th e weighted average discount rate as of December 31, 2022 for operating and finance leases was 5.8% and 5.0%, respectively. See Note 16, Debt , for current and non-current finance lease obligations. The weighted average remaining lease term as of December 31, 2021 for operating and finance leases was 36.3 years and 4.9 years, respectively. The weighted average discount rate as of December 31, 2021 for operating and finance leases was 5.6% and 4.5%, respectively. As of December 31, 2022, remaining maturities of lease liabilities were as follows: 2023 2024 2025 2026 2027 2028 and thereafter Total Lease Payments Less: Imputed Interest Total Lease Obligations Operating Leases $ 13.6 $ 13.0 $ 13.1 $ 11.3 $ 8.8 $ 161.2 $ 221.0 $ (127.3) $ 93.7 Financing Leases $ 47.7 $ 39.9 $ 25.8 $ 18.7 $ 7.5 $ 26.2 $ 165.8 $ (21.3) $ 144.5 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Assets | Other current assets are summarized as follows: December 31, December 31, Prepaid expenses 27.5 20.7 Income tax receivable 3.9 14.0 Other assets- short term 6.9 5.0 Total other current assets $ 38.3 $ 39.7 Other assets are summarized as follows: December 31, December 31, Deferred financing Deferred financing costs 0.9 0.9 Less: Accumulated amortization-deferred financing costs (0.8) (0.6) Deferred financing costs, net 0.1 0.3 Other Supply agreements (1) 6.4 9.2 Equity in net assets of affiliates 1.1 0.8 Restricted cash - collateral requirements 19.6 19.5 Rotables 39.0 38.3 Other 25.6 23.5 Total $ 91.8 $ 91.6 _______________________________________ (1) Certain payments accounted for as consideration paid by the Company to a customer are being amortized as reductions to net revenues. |
Goodwill Disclosure | Goodwill is summarized as follows: Changes in Goodwill Balance Balance at Balance at Segment December 31, Acquisitions Adjustments/Other Currency Exchange December 31, Commercial $ 296.8 $ — $ — $ (0.3) $ 296.5 Defense & Space $ 5.5 $ 7.1 (1) $ — $ — $ 12.6 Aftermarket $ 321.4 $ — $ — $ — $ 321.4 $ 623.7 $ 7.1 $ — $ (0.3) $ 630.5 (1) The T.E.A.M., Inc. acquisition (as defined below in Note 28, Acquisitions ) resulted in the establishment of $7.1 of goodwill that was included in the balance reported at December 31, 2022. The total goodwill value includes no a ccumulated impairment loss in any of the periods present |
Advance Payments and Deferred R
Advance Payments and Deferred Revenue/Credits | 12 Months Ended |
Dec. 31, 2022 | |
Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments And Deferred Revenue/Credits | Advances on the B787 Program. Boeing has made advance payments to Spirit under the B787 Special Business Provisions and General Terms Agreement (collectively, 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 originally 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 that otherwise would have become due during such twelve-month period were to offset the purchase price for shipsets 1001 through 1120. On December 21, 2018, the Company signed the 2018 MOA with Boeing that again suspended the advance repayments beginning with line unit 818. The advance repayments will resume at a lower rate of $0.45 per shipset at line number 1135 and continue through line number 1605. 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 $27.0 due on December 15th of each year until the advance payments have been fully recovered by Boeing. As of December 31, 2022, the amount of advance payments received by us from Boeing and not yet repaid was approximately $205.4. Advances on the B737 Program. In an effort to minimize the disruption to Spirit's operations and its supply chain, the 2019 MOA entered into on April 12, 2019 included the terms and conditions for an advance payment to be made from Boeing to Spirit in the amount of $123, which was received during the third quarter of 2019. The 2020 MOA entered into on February 6, 2020, extended the repayment date of the $123 advance received by Spirit under the 2019 MOA to 2022. In the twelve months ended December 31, 2022 the $123 of advance payments received from Boeing were repaid and there was no balance due as of December 31, 2022. Other . The Advance payments, long-term line item on the Consolidated Balance Sheet for the period ended December 31, 2022 includes $18.9 related to payments received from an Aftermarket segment customer for contracted work that was impacted by the sanctions imposed by the U.S. and other governments on Russia following its invasion of Ukraine. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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. The Company’s long-term debt includes a senior secured term loan and senior notes described further under Note 16 Debt . 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. See also Note 15 Derivative and Hedging Activities, and Note 17 Pension and Other Post-Retirement Benefits. December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Senior secured term loan B (including current portion) 571.7 564.5 (2) 595.2 595.2 (2) Senior notes due 2023 — — (1) 299.3 303.6 (1) Senior secured first lien notes due 2025 20.7 20.8 (1) 495.3 513.3 (1) Senior secured second lien notes due 2025 1,191.0 1,179.0 (1) 1,187.5 1,252.4 (1) Senior notes due 2026 298.8 272.8 (1) 298.4 307.5 (1) Senior notes due 2028 695.9 562.3 (1) 695.2 697.4 (1) Senior notes due 2029 $ 887.2 $ 935.7 (1) $ — $ — (1) Total $ 3,665.3 $ 3,535.1 $ 3,570.9 $ 3,669.4 _______________________________________ (1) Level 1 Fair Value hierarchy (2) Level 2 Fair Value hierarchy |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging Activities | Derivative and Hedging Activities Derivatives Accounted for as Hedges Cash Flow Hedges - Interest Rate Swaps The Company has traditionally 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. As of December 31, 2020, the Company had one interest rate swap agreement, designated as cash flow hedge, with a notional value of $150. The fair value of the hedges under this agreement was a liability of $1.2 as of December 31, 2020, which is recorded in the other current liabilities line item on the Consolidated Balance Sheet for the respective period. On February 24, 2021, the Company terminated the swap agreement. As of December 31, 2022 and 2021 , the Company had no swaps outstanding. Changes in the fair value of cash flow hedges are recorded in Accumulated Other Comprehensive Income (Loss) ("AOCI") and recorded in earnings in the period in which the hedged transaction occurs. No gain or loss was recognized in AOCI for the twelve months ended December 31, 2022 and 2021 . For the twelve months ended December 31, 2020, the Company recorded a net loss in AOCI of $14.3. For the twelve months ended December 31, 2022, 2021 and 2020 a loss of $0.0, $0.4 and $3.6, respectively, was reclassified from AOCI to earnings, and included in the interest expense line item on the Consolidated Statements of Operations, and in operating activities on the Consolidated Statements of Cash Fl ows. For the twelve months ended December 31, 2022, 2021 and 2 020, a loss of $0.0, $0.7 and $10.4, respectively, was reclassified from AOCI to earnings resulting from the termination of a swap agreement, and included in the Other (expense) income, net line item on the Consolidated Statements of Operations, and in operating activities on the Consolidated Statements of Cash Flows. Cash Flow Hedges – Foreign Currency Hedge The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British pound sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through September 2023. The following table summarizes the notional amounts (representing the gross contract/notional amount of the derivatives outstanding) and fair values of the derivative instruments in the Consolidated Balance Sheets as of December 31, 2022 , and December 31, 2021. The foreign currency exchange contracts are measured within Level 1 of the Fair Value hierarchy. See Note 14, Fair Value Measurements . Notional amount Other assets Other liabilities December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 157.1 $ 167.7 $ — $ — $ 2.4 $ 2.0 Total derivatives at fair value $ — $ — $ 2.4 $ 2.0 Changes in the fair value of cash flow hedges are recorded in AOCI and recorded in earnings in the period in which the hedged transaction settles. The gain (loss) recognized in AOCI associated with the Company's hedging transactions is presented in the following table: For the Twelve Months Ended December 31, December 31, December 31, Recognized in total other comprehensive loss: Foreign currency exchange contracts $ (19.1) $ (2.0) $ — The following table summarizes the gains/(losses) associated with the Company's hedging transactions reclassified from AOCI to earnings: For the Twelve Months Ended December 31, December 31, December 31, Foreign currency exchange contracts: Other expense $ (18.7) $ (0.2) $ — Within the next 12 months, the Company expects to recognize a loss of $2.4 in earnings related to the foreign currency forward contracts. As of December 31, 2022 , the maximum term of the hedged forecasted transaction was 9 months. Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. Derivatives Not Accounted for as Hedges During the twelve months ended December 31, 2022, the Company entered into foreign currency forward contracts in the amount of $291.5 to minimize the risk of currency exchange rate movements on the Company's planned settlement of the repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy. During the twelve-month period ended December 31, 2022, these foreign currency forward contracts were settled and new contracts were entered into in the amount of $293.7, which were also settled during the period. The Company did not designate these forward contracts as hedges or apply hedge accounting to the forward contracts. For the twelve months ended December 31, 2022, the Company recorded a net gain of $1.6 to the Other (expense) income, net line item on the Consolidated Statements of Operations related to the foreign currency forward contracts. There were no foreign currency forward contracts, other than those accounted for as cash flow hedges noted above, in existence as of December 31, 2022, December 31, 2021 or December 31, 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Total debt shown on the balance sheet is comprised of the following: December 31, 2022 December 31, 2021 Current Noncurrent Current Noncurrent Senior secured term loan B 5.7 566.0 5.9 589.3 Senior notes due 2023 — — — 299.3 Senior secured first lien notes due 2025 — 20.7 — 495.3 Senior secured second lien notes due 2025 — 1,191.0 — 1,187.5 Senior notes due 2026 — 298.8 — 298.4 Senior notes due 2028 — 695.9 — 695.2 Senior secured first lien notes due 2029 — 887.2 — — Present value of finance lease obligations 42.2 102.3 42.2 122.9 Other 5.8 53.0 1.4 54.8 Total $ 53.7 $ 3,814.9 $ 49.5 $ 3,742.7 Credit Agreement On October 5, 2020, Spirit entered into a term loan credit agreement (the “Credit Agreement”) providing for a $400.0 senior secured term loan B credit facility with the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent. On October 5, 2020 Spirit borrowed the full $400.0 of initial term loans available under the Credit Agreement. The Credit Agreement also permits Spirit to request one or more incremental term facilities in an aggregate principal amount not to exceed (x) in the case of any incremental facility that is secured on a pari passu basis with the Credit Agreement, the greater of (a) $950.0 and (b) such other amount, so long as on a pro forma basis after giving effect to the incurrence of such indebtedness and the use of proceeds thereof, the first lien secured net leverage ratio does not exceed 3.25 to 1.00; and (y) in the case of any incremental facility that is secured on a junior basis to the Credit Agreement, the greater of (a) $500.0 and (b) such other amount, so long as on a pro forma basis after giving effect to the incurrence of such indebtedness and the use of proceeds thereof, the secured net leverage ratio does not exceed 5.00 to 1.00. On November 15, 2021, the Company entered into a first refinancing, incremental assumption and amendment agreement (the “November 2021 Amendment”) to the Credit Agreement. The November 2021 Amendment provides for, among other things, (i) the refinancing of the $397.0 aggregate principal amount of term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the November 2021 Amendment with term loans in an equal principal amount with a lower interest rate (the “Repriced Term Loans”) and (ii) an incremental term loan facility of $203.0 in aggregate principal amount with the same terms as the Repriced Term Loans. On November 23, 2022, the Company entered into a second refinancing amendment ("the "November 2022 Amendment") to the Credit Agreement (the Credit Agreement as amended by the November 2021 Amendment and the November 2022 Amendment, the “Amended Credit Agreement”). The November 2022 Amendment provides for, among other things, the refinancing of the $594.0 aggregate principal amount of term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the November 2022 Amendment (the “Existing Term Loans”) with term loans in an equal principal amount with a later maturity date (the “New Term Loans”). The proceeds of the New Term Loans were used to refinance the Existing Term Loans. The New Term Loans will mature on January 15, 2027. The New Term Loans bear interest at a rate ranging between Term SOFR plus 4.25% and Term SOFR plus 4.50% (or, at Spirit’s option, between base rate plus 3.25% and base rate plus 3.50%, as applicable) with the margin varying based on Spirit’s first lien secured gross leverage ratio. The obligations under the Amended Credit Agreement are guaranteed by Holdings and Spirit AeroSystems North Carolina, Inc., a wholly-owned subsidiary of the Company (“Spirit NC”, and together with Holdings, the “Guarantors”), and each existing and future, direct and indirect, wholly-owned material domestic subsidiary of Spirit, subject to certain customary exceptions. The obligations are secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. The Amended Credit Agreement contains usual and customary affirmative and negative covenants for facilities and transactions of this type and that, among other things, restrict the Company and its restricted subsidiaries’ ability to incur additional indebtedness, create liens, consolidate or merge, make acquisitions and other investments, guarantee obligations of third parties, make loans or advances, declare or pay certain dividends or distributions on the Company’s stock, redeem or repurchase shares of the Company’s stock, engage in transactions with affiliates and enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends or dispose of assets. These covenants are subject to a number of qualifications and limitations. The Amended Credit Agreement provides for customary events of default, including, but not limited to, failure to pay principal and interest, failure to comply with covenants, agreements or conditions, and certain events of bankruptcy or insolvency involving the Company and its material subsidiaries. As a result of the modification and extinguishment of the Company's prior credit agreement, the Company recognized a loss on extinguishment of $7.2, recorded to the Interest expense and financing fee amortization line item for the twelve months ended December 31, 2022, on the Company's Consolidated Statement of Operations, of which $4.6 is reflected within the Amortization of deferred financing fees line item in operating activities and 2.6 is reflected within the Payment of debt extinguishment costs line item under financing activities on the Consolidated Statement of Cash Flows for the twelve months ended December 31, 2022. As of December 31, 2022, the outstanding balance of the Amended Credit Agreement was $592.5 and the carrying value was $571.7. First Lien 2029 Notes On November 23, 2022, Spirit entered into an Indenture (the “First Lien 2029 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $900.0 aggregate principal amount of its 9.375% Senior Secured First Lien Notes due 2029 (the “First Lien 2029 Notes”). The First Lien 2029 Notes were issued and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and in offshore transactions to non-U.S. persons pursuant to Regulation S under the Securities Act. The First Lien 2029 Notes mature on November 30, 2029 and bear interest at a rate of 9.375% per year payable semiannually in cash in arrears on May 30 and November 30 of each year. The first interest payment date is May 30, 2023. The First Lien 2029 Notes are guaranteed by the Guarantors, and each existing and future, direct and indirect, wholly-owned material domestic subsidiary of the Company, subject to certain customary exceptions. The First Lien 2029 Notes are secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. The First Lien 2029 Notes Indenture contains covenants that limit Spirit’s, the Company’s and the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to incur indebtedness secured by liens, enter into sale and leaseback transactions, make restricted payments and investments and enter into certain mergers or consolidations and transfer substantially all of the Company and its subsidiaries’ assets. These covenants are subject to a number of qualifications and limitations. In addition, the Indenture provides for customary events of default. As of December 31, 2022, the outstanding balance of the First Lien 2029 Notes was $900.0 and the carrying value was $887.2. First Lien 2025 Notes On October 5, 2020, Spirit entered into an Indenture (the “First Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $500.0 aggregate principal amount of its 5.500% Senior Secured First Lien Notes due 2025 (the “First Lien 2025 Notes"). The First Lien 2025 Notes were issued and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and in offshore transactions to non-U.S. persons pursuant to Regulation S under the Securities Act. The First Lien 2025 Notes mature on January 15, 2025 and bear interest at a rate of 5.500% per year payable semiannually in cash in arrears on January 15 and July 15 of each year. The first interest payment date is January 15, 2021. The First Lien 2025 Notes are guaranteed by the Guarantors and were initially secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. The First Lien 2025 Notes Indenture initially contained covenants that limit Spirit’s, the Company’s and the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to incur indebtedness secured by liens, enter into sale and leaseback transactions, make restricted payments and investments and enter into certain mergers or consolidations and transfer substantially all of the Company and its subsidiaries’ assets. These covenants are subject to a number of qualifications and limitations. In addition, the First Lien 2025 Indenture provides for customary events of default. In the fourth quarter of 2022, S pirit purchased $479.2 in aggregate principal amount of its outstanding First Lien 2025 Notes for cash pursuant to a tender offer (the “Tender Offer”). A s of December 31, 2022, the outstanding balance of the First Lien 2025 Notes was $20.8 and the carrying value was $20.7. In connection with the Tender Offer, Spirit received the requisite consents from holders of the 2025 First Lien Notes necessary to approve amendments to the 2025 First Lien Notes Indenture, to, among other things, eliminate certain of the restrictive covenants and events of default contained in the 2025 First Lien Notes Indenture (the “Majority Amendments”) and terminate the security interest and release the collateral under the 2025 First Lien Notes Indenture (the “Collateral Release Amendments”). Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A. entered into the First Supplemental Indenture, dated as of November 23, 2022, to the 2025 First Lien Notes Indenture, which effects (i) the Majority Amendments and (ii) the Collateral Release Amendments, in each case, as of November 23, 2022. As of December 31, 2022, the First Lien 2025 Notes are unsecured and the First Lien 2025 Notes Indenture no longer includes covenants that limit Spirit’s, the Company’s and the Company’s subsidiaries’ ability to incur indebtedness secured by liens, enter into sale and leaseback transactions or make restricted payments and investments. 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. As of December 31, 2022, the outstanding balance of the 2026 Notes was $300.0 and the carrying value was $298.8. The Company and Spirit NC guarantee Spirit's obligations under the 2026 Notes on a senior secured basis. On February 24, 2020, Spirit entered into a Second Supplemental Indenture (the “Second Supplemental Indenture”) by and among Spirit, the Company, Spirit NC, and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), as trustee in connection with the 2026 Notes. Under the Second Supplemental Indenture, the 2026 Noteholders were granted security on an equal and ratable basis with the lenders under the 2018 Credit Agreement until the security in favor of the lenders under the 2018 Credit Agreement was released on October 5, 2020. The Supplemental Indenture also added Spirit NC as an additional guarantor under the indenture governing the 2026 Notes. On April 17, 2020, Spirit entered into a Third Supplemental Indenture (the “Third Supplemental Indenture”), by and among Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with the 2026 Notes. Under the Third Supplemental Indenture, the noteholders were granted security on an equal and ratable basis with the holders of the Second Lien 2025 Notes. On October 5, 2020, Spirit entered into a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”), by and among Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with 2026 Notes. Under the Fourth Supplemental Indenture, the holders of the 2026 Notes were granted security on an equal and ratable basis with the holders of the First Lien 2025 Notes (until the security in favor of the lenders under the holders of the First Lien 2025 Notes was released on November 23, 2022) and the secured parties under the Amended Credit Agreement. On November 23, 2022, Spirit entered into a Fifth Supplemental Indenture (the “Fifth Supplemental Indenture”), by and among Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with the 2026 Notes. Under the Fifth Supplemental Indenture, the holders of the 2026 Notes were granted security on an equal and ratable basis with the holders of the First Lien 2029 Notes. Second Lien 2025 Notes On April 17, 2020, Spirit entered into an Indenture (the “Second Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $1,200.0 aggregate principal amount of its 7.500% Senior Secured Second Lien Notes due 2025 (the “Second Lien 2025 Notes”). The Second Lien 2025 Notes were issued and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and in offshore transactions to non-U.S. persons pursuant to Regulation S under the Securities Act. The Second Lien 2025 Notes mature on April 15, 2025 and bear interest at a rate of 7.500% per year payable semiannually in cash in arrears on April 15 and October 15 of each year. The first interest payment date was October 15, 2020. As of December 31, 2022 , the outstanding balance of the Second Lien 2025 Notes was $1,200.0 and the carrying value was $1,191.0. The Second Lien 2025 Notes are guaranteed by the Guarantors and secured by a second-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. The Second Lien 2025 Notes Indenture contains covenants that limit Spirit’s, the Company’s and the Company’s subsidiaries’ ability, subject to certain exceptions and qualifications, to create liens, enter into sale and leaseback transactions and guarantee other indebtedness without guaranteeing the Second Lien 2025 Notes. These covenants are subject to a number of qualifications and limitations. In addition, the Second Lien 2025 Notes Indenture provides for customary events of default. Floating Rate, 2023, and 2028 Notes On May 30, 2018, Spirit entered into an Indenture (the “2018 Indenture”) by and among Spirit, the Company and The Bank of New York Mellon Trust Company, N.A., 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 “2018 Notes”). Holdings guaranteed Spirit’s obligations under the 2018 Notes on a senior unsecured basis. On February 24, 2021, Spirit redeemed the outstanding $300.0 principal amount of the Floating Rate Notes. On November 23, 2022, Spirit redeemed the outstanding $300.0 principal amount of the 2023 Notes. The 2028 Notes bear interest at a rate of 4.600% per annum and mature on June 15, 2028. Interest on the 2028 Notes is payable on June 15 and December 15 of each year, beginning on December 15, 2018. The outstanding balance of the Floating Rate Notes, 2023 Notes, and 2028 Notes was $0.0, $0.0, and $700.0 as of December 31, 2022, respectively. The carrying value of the Floating Rate Notes, 2023 Notes, and 2028 Notes was $0.0, $0.0, and $695.9 as of December 31, 2022, respectively. The 2018 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 2018 Notes and enter into sale and leaseback transactions. These covenants are subject to a number of qualifications and limitations. In addition, the 2018 Indenture provides for customary events of default. As of December 31, 2022, the Company was in compliance with all covenants contained in the indentures governing the First Lien 2029 Notes, First Lien 2025 Notes, Second Lien 2025 Notes, 2026 Notes, and the 2028 Notes. The following table shows required payments during the next five years on the term loan and notes outstanding at December 31, 2022. See Note 11, Leases for maturities of finance lease obligations. 2023 2024 2025 2026 2027 Required payments $ 5.9 $ 5.9 $ 1,226.8 $ 305.9 $ 568.8 |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Pension and Other Post-Retirement Benefit Plans [Abstract] | |
Pension and Other Post Retirement Benefits Plans U.K. Belfast Asset Category | The Plans have asset allocations as of December 31, 2022 and December 31, 2021, as follows: 2022 2021 Asset Category — U.K. Belfast Equity securities 29 % 32 % Fixed Income 34 % 34 % Indexed-Linked Gilts 21 % 18 % Real Return Assets 13 % 13 % Money Market 3 % 3 % Total 100 % 100 % |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock Holdings has authorized 210,000,000 shares of stock. Of that, 200,000,000 shares are Common Stock, par value $0.01 per share, one vote per share and 10,000,000 shares are preferred stock, par value $0.01 per share. In association with the Boeing Acquisition, Spirit executives with balances in Boeing’s Supplemental Executive Retirement Plan (“SERP”) were authorized to purchase a fixed number of units of Holdings “phantom stock” at $3.33 per unit based on the present value of their SERP balances. Any payment on account of units may be made in cash or shares of Common Stock at the sole discretion of Holdings. The balance of SERP units was 16,023, 16,023 and 28,950 as of December 31, 2022, 2021, and 2020, respectively. Repurchases of Common Stock |
Stock Compensation
Stock Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Compensation | Stock Compensation Holdings has established the stockholder-approved 2014 Omnibus Incentive Plan, as amended (the “Omnibus Plan”) to grant cash and equity awards to certain individuals. Compensation values are based on the value of Holdings’ Common Stock on the grant date, which is added to equity and charged to period expense. The Company’s Omnibus Plan was amended in October 2019 to allow for participants to make tax elections with respect to their equity awards. Holdings has recognized a net total of $36.6, $25.8, and $24.2 of stock compensation expense for the twelve months ended December 31, 2022, 2021, and 2020, respectively. During the twelve months ended December 31, 2022, 93,565 shares of Common Stock with aggregate grant date fair value of $3.0 were granted, and vested immediately, to employees in connection with the ratification of new labor contracts. Short-Term Incentive Plan The Short-Term Incentive Program under the Omnibus Plan enables eligible employees to receive incentive benefits in the form of cash as determined by the Compensation Committee. Board of Directors Stock Awards The Company’s Omnibus Plan provides non-employee directors the opportunity to receive grants of restricted shares of Common Stock, or Restricted Stock Units (“RSUs”) or a combination of both Common Stock and RSUs. The Common Stock grants and RSU grants vest one year from the grant date subject to the director's compliance with the one-year service condition; however, the RSU grants are not payable until the director’s separation from service. The Board of Directors is authorized to make discretionary grants of shares or RSUs from time to time. Compensation values are based on the value of Holdings’ Common Stock on the grant date, which is added to equity and charged to period expense. The Company expensed a net amount of $1.6, $1.5, and $1.4 for the restricted shares of Common Stock and RSUs for the twelve months ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the Company’s unamortized stock compensation related to these restricted shares of Common Stock and RSUs is $0.7, which will be recognized over a weighted average remaining period of 4 months. The intrinsic value of the unvested restricted shares of Common Stock and RSUs, based on the value of the Company’s stock at December 31, 2022, was $1.9, based on the value of the Company’s Common Stock and the number of unvested shares of restricted Common Stock and RSUs. The following table summarizes grants of restricted Common Stock and RSUs to members of the Company’s Board of Directors for the twelve months ended December 31, 2022, 2021, and 2020: Shares Value (1) Class A Class A (Thousands) Board of Directors Stock Grants Nonvested at December 31, 2019 17 1.4 Granted during period 65 1.3 Vested during period (17) (1.5) Forfeited during period — — Nonvested at December 31, 2020 65 1.2 Granted during period 36 1.6 Vested during period (65) (1.2) Forfeited during period — — Nonvested at December 31, 2021 36 1.6 Granted during period 68 $ 2.2 Vested during period (41) $ (1.8) Forfeited during period — $ — Nonvested at December 31, 2022 63 $ 2.0 ______________________________________________________________________________________________________________________________ (1) Value represents grant date fair value per share. Long-Term Incentive Awards Holdings has established the Long-Term Incentive Plan (the “LTIP”) under the Omnibus Plan to grant equity awards to certain employees. Generally, specified employees are entitled to receive a long-term incentive award that, for the 2022 year, consisted of the following: • 50% of the award consisted of time-based, service-condition restricted Common Stock that vests in equal installments over a three-year period (restricted stock units (“RSUs”)). Values for these awards are based on the value of Common Stock on the grant date. • 50% of the award consisted of performance-based, market-condition restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon TSR compared to the Company’s peers (the “TSR Award”). Values for these awards are initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. For the 2021 year, specified employees were entitled to receive a long-term incentive award that generally consisted of the following: • 60% of the award consisted of time-based, service-condition restricted Common Stock that vests in equal installments over a three-year period (restricted stock awards (“RSAs”) or restricted stock units (“RSUs”)). Values for these awards are based on the value of Common Stock on the grant date. • 40% of the award consisted of performance-based, market-condition restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon TSR compared to the Company’s peers (the “TSR Award”). Values for these awards are initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. For the 2020 year, specified employees were entitled to receive a long-term incentive award that generally consisted of the following: • 60% of the award consisted of time-based, service-condition restricted Common Stock that vests in equal installments over a three-year period (the “RS Award”). Values for these awards are based on the value of Common Stock on the grant date. • 20% of the award consisted of performance-based, market-condition restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon TSR compared to the Company’s peers (the “TSR Award”). Values for these awards are initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. • 20% of the award consisted of performance-based, (performance-condition) restricted Common Stock that vests on the three-year anniversary of the grant date contingent upon the Company’s cumulative three-year free cash flow as a percentage of the Company’s cumulative three-year revenues meeting certain pre-established goals (the “FCF Percentage Award”). Values for these awards are based on the dividend adjusted value of Common Stock on the grant date. For the twelve months ended December 31, 2022, 553,578 time or service-based restricted stock units (“RSUs”) were granted with aggregate date fair values of $24.0 under the Company's LTIP. In addition, 284,653 performance-based restricted stock units (“PBRSUs”) were granted with aggregate grant date fair value of $22.0 under the Company’s LTIP. For the twelve months ended December 31, 2021, 570,914 time or service-based restricted stock units ("RSUs") and 30,024 time or service-based restricted stock awards ("RSAs") were granted with aggregate date fair values of $26.9 under the Company's LTIP. In addition, 162,102 performance-based restricted stock units ("PBRSUs") were granted with aggregate grant date fair value of shares of $9.8 under the Company’s LTIP. For the twelve months ended December 31, 2020, 515,788 shares of Common Stock with an aggregate grant date fair value of $21.0 were granted as RS Awards under the Company’s LTIP. In addition, 385,887 shares of Common Stock with an aggregate grant date fair value of $16.1 were granted as TSR Awards under the Company’s LTIP. The Company expensed a net total of $32.1, $24.3, and $22.8 for share of Common Stock issued under the LTIP for the twelve months ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the Company’s unamortized stock compensation related to these unvested shares of Common Stock is $37.5, which will be recognized over a weighted average remaining period of 1.7 years. The intrinsic value of the unvested shares of Common Stock issued under the LTIP at December 31, 2022 was $50.6, based on the value of the Company’s Common Stock and the number of unvested shares. The following table summarizes the activity of the restricted shares under the LTIP for the twelve months ended December 31, 2022, 2021, and 2020: Shares Value (1) Common Stock Common Stock (Thousands) Long-Term Incentive Plan/Long-Term Incentive Award under Omnibus Plan Nonvested at December 31, 2019 1,304 $ 94.0 Granted during period 940 39.6 Vested during period (573) (39.1) Forfeited during period (192) (14.0) Nonvested at December 31, 2020 1,479 80.5 Granted during period 763 36.7 Vested during period (305) (20.6) Forfeited during period (535) (27.7) Nonvested at December 31, 2021 1,402 68.9 Granted during period 839 46.0 Vested during period (396) (20.6) Forfeited during period (142) (11.6) Nonvested at December 31, 2022 1,703 $ 82.7 ________________________________________________________________________________________________________________________________ (1) Value represents grant date fair value. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes Income Before Income Taxes: The sources of income before income taxes are: 2022 2021 2020 U.S. $ (467.2) $ (553.3) $ (1,046.7) International (72.2) (1.9) (39.2) Total (before equity earnings) $ (539.4) $ (555.2) $ (1,085.9) Income taxes are accounted for in accordance with FASB authoritative guidance on accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Tax rate changes impacting these assets and liabilities are recognized in the period during which the rate change occurs. The Company records an income tax expense or benefit based on the income earned or loss incurred in each tax jurisdiction and the tax rate applicable to that income or loss. In the ordinary course of business, there are transactions for which the ultimate tax outcome is uncertain. These uncertainties are accounted for in accordance with FASB authoritative guidance on accounting for the uncertainty in income taxes. The final tax outcome for these matters may be different than management’s original estimates made in determining the income tax provision. A change to these estimates could impact the effective tax rate and net income or loss in subsequent periods. The Company uses the flow-through accounting method for tax credits. Under this method, tax credits reduce income tax expense. Provision for Income Tax Taxes: The income tax (benefit) expense contains the following components: 2022 2021 2020 Current Federal $ (4.5) $ (11.4) $ (301.0) State (0.7) (0.2) (5.5) Foreign 1.7 0.9 (8.1) Total current $ (3.5) $ (10.7) $ (314.6) Deferred Federal $ 10.2 $ (14.0) $ (16.2) State 2.5 15.9 106.9 Foreign (4.0) (8.4) 3.7 Total deferred 8.7 (6.5) 94.4 Total income tax provision (benefit) $ 5.2 $ (17.2) $ (220.2) Reconciliation of Effective Income Tax Rate: The income tax provision from operations differs from the tax provision computed at the U.S. federal statutory income tax rate due to the following: 2022 2021 2020 Tax at U.S. Federal statutory rate $ (113.3) 21.0 % $ (116.5) 21.0 % $ (228.1) 21.0 % State income taxes, net of Federal benefit (9.6) 1.8 (24.9) 4.5 (28.1) 2.6 State income tax credits, net of Federal benefit (15.6) 2.9 (7.4) 1.3 (17.4) 1.6 Foreign rate differences (3.5) 0.6 (5.2) 0.9 (3.3) 0.3 Research and experimentation (5.2) 1.0 (1.6) 0.3 (0.1) — Excess tax benefits 0.4 (0.1) 0.8 (0.1) 0.1 — Non-deductible expenses 4.2 (0.8) 1.9 (0.3) 10.5 (1.0) Re-measurement of Deferred Taxes (7.1) 1.3 (58.8) 10.6 1.7 (0.2) Global Intangible Low-Taxed Income (GILTI) Tax (1.8) 0.3 0.9 (0.2) 3.9 (0.4) Valuation Allowance 170.6 (31.6) 204.2 (36.9) 150.2 (13.8) NOL Utilized at 35% vs 21% — — (5.3) 1.0 (104.8) 9.7 Previously unrecognized tax benefit (10.6) 2.0 — — — — Other (3.3) 0.6 (5.3) 1.0 (4.8) 0.5 Total income tax provision (benefit) $ 5.2 (1.0 %) $ (17.2) 3.1 % $ (220.2) 20.3 % The income tax provision (benefit) for the twelve months ended December 31, 2022, was $5.2 compared to ($17.2) for the prior year. The 2022 effective tax rate was (1.0%) as compared to 3.1% for 2021. 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 to provide for the tax expense related to GILTI cost in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI as a period cost in the year the tax is incurred. As of December 31, 2022, there was $1.8 of GILTI tax benefit primarily due to the refundable U.K. research credits being credited against prior years' GILTI tax expense. As of December 31, 2021, there was $0.9 of GILTI tax expense due to the finalization of the 2020 U.K. NOL carryback to 2019 that will result in an increase to U.S. GILTI tax. As of December 31, 2020 there was a $3.9 of GILTI tax expense due to the preliminary 2020 U.K. NOL carryback to 2019 that resulted in an increase to U.S. GILTI tax. The 2021 and 2022 U.S. Net Operating Losses will be carried forward while the 2020 U.S. Net Operating Loss has been carried back to 2015 and 2016. The tax rate in the carryback years is 35% compared to the current tax rate of 21%. The impact of this rate difference was included in the 2020 year tax provision. The difference between the 2020 provision and the 2020 U.S. Income Tax return impacted the 2020 net operating loss available to be carried back. This difference times the tax rate difference is included in the 2021 year tax provision. The CARES Act allows net operating losses from 2018, 2019 and 2020 to be carried back to the previous five years, when the federal tax rate was 35%. As of December 31, 2020 the Company reported a net operating loss when it filed its fiscal year 2020 tax return. A preliminary net operating loss carryback claim was filed in March 2021 requesting a refund of $305 which was received in 2021. A second net operating loss carryback claim using the finalized 2020 U.S. Net Operating Loss was filed in December 2021 requesting an additional $11.6 federal refund, which was received in 2022. The Company had $3.9 and $14.0 of income tax receivable as of December 31, 2022 and December 31, 2021, respectively, which is reflected within other current assets on the balance sheet as well as $0.4 and $0.9 of income tax payable as of December 31, 2022 and December 31, 2021, respectively, which is reflected within other current liabilities on the balance sheet. The Company had $1.5 and $1.6 of non-current income tax payable as of December 31, 2022 and December 31, 2021, respectively, which is reflected within other liabilities on the balance sheet. Additionally, as allowed by the CARES Act, the Company had deferred $33.0 of employer payroll taxes as of December 31, 2020, of which 50% was deposited by December 2021 and the remaining 50% was credited against the outstanding pre-tax employee retention credit refund claim in 2022. The Company has filed a claim for a pre-tax employee retention credit of $18.8 for 2020 and $1.0 for 2021. The outstanding pre-tax employee retention credit refund claim as of December 31, 2022 was $3.1. In addition, as of December 31, 2020, the Company had recorded a deferral of $31.5 of VAT payments with the option to pay in smaller payments through the end of March 31, 2022 interest free under the United Kingdom deferral scheme. There is no outstanding deferral of VAT payments as of December 31, 2022. Oklahoma follows the CARES Act and also allows 2018, 2019 and 2020 net operating losses to be carried back to the previous five years. The 2020 Oklahoma Net Operating Loss was carried back to 2015 and 2016 resulting in a $3.1 refund claim that was received during 2022. Deferred Income Taxes: Significant tax effected temporary differences comprising the net deferred tax asset, prior to valuation allowance, are as follows: 2022 2021 Depreciation and amortization $ (116.6) $ (159.6) Long-term contracts 113.3 144.2 State income tax credits 145.2 130.1 Net operating loss carryforward 438.1 321.7 Accruals and reserves 46.2 47.8 Employee compensation accruals 21.1 40.0 Pension and other employee benefit plans (32.8) (78.3) Interest expense limitation 30.7 27.1 Postretirement benefits other than pensions 7.9 10.2 Other 64.0 30.7 Inventory 0.5 1.0 Interest swap contracts 0.6 0.5 Net deferred tax asset before valuation allowance 718.2 515.4 Valuation allowance (714.7) (536.8) Net deferred tax (liability) 3.5 (21.4) Deferred tax detail above is included in the balance sheet and supplemental information as follows: 2022 2021 Non-current deferred tax assets 4.8 0.4 Non-current deferred tax liabilities (1.3) (21.8) Net non-current deferred tax asset (liability) $ 3.5 $ (21.4) Total deferred tax asset (liability) $ 3.5 $ (21.4) The following is a roll forward of the deferred tax valuation allowance at December 31, 2022, 2021, and 2020: 2022 2021 2020 Balance at January 1 $ 536.8 $ 340.9 $ 10.2 Bombardier Acquisition opening balance sheet — 13.6 163.6 Corporate rate remeasurement (0.2) 63.0 — State income tax credits 18.3 6.8 110.1 Net operating losses 155.3 135.4 20.7 Depreciation and amortization 0.2 0.2 — Other (3.0) (1.3) 19.4 Other comprehensive income adjustment 7.3 (21.8) 16.9 Balance at December 31 $ 714.7 $ 536.8 $ 340.9 Deferred tax assets are periodically evaluated to determine their recoverability and whether or not a valuation allowance is necessary. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding the Company’s prior earnings history including the forward losses previously recognized in the U.S., Management determined that it was necessary to establish a valuation allowance against nearly all of its net U.S. deferred tax assets at December 31, 2022 and December 31, 2021. This determination was made as the Company entered into a U.S. cumulative loss position during 2021. Once a company enters a cumulative three year loss position, there is a presumption that a company should no longer rely solely on projected future income in determining whether the deferred tax asset is more likely than not to be realized. As of December 31, 2022, the total net U.S. deferred tax asset, prior to valuation allowance, was $436.2. The net U.S. deferred tax asset after recording valuation allowances is $1.0. Valuation allowances recorded against the consolidated net U.S. deferred tax asset in the current year were $139.0 for a total valuation allowance of $435.2 for the U.S. The Company has determined a valuation allowance on certain U.K. deferred tax assets is needed based upon historic cumulative losses and current year losses generated in the U.K. The Company recorded a portion of the increase in the valuation allowance to income tax expense in continuing operations $31.4, a portion to OCI $7.3. Valuation allowances recorded against U.K. deferred tax assets in the current year were $38.7 for a total valuation allowance of $279.3 for the U.K. Included in the deferred tax assets at December 31, 2022 are $125.7 in Kansas High Performance Incentive Program (“HPIP”) Credit, $12.8 in Kansas Research & Development (“R&D”) Credit and $1.4 in Kansas Qualified Vendor (“QV”) Credit, totaling $139.9 in gross Kansas state income tax credit carryforwards, net of federal benefit. The HPIP Credit provides a 10% investment tax credit for qualified business facilities located in Kansas. This credit can be carried forward 16 years. The Kansas R&D Credit provides a credit for qualified research and development expenditures conducted within Kansas. This credit can be carried forward indefinitely. The QV Credit is equal to 15% of the amount for approved expenditures of goods and services purchased from a qualified vendor, not to exceed $0.5 per qualified vendor per tax year. The QV Credit can be carried forward 4 years. The one-time transition tax and GILTI provisions within the TCJA effectively transitioned the U.S. to a territorial system and eliminated the deferral of U.S. taxation for certain amounts of income which is not taxed at a minimum level. To the extent a dividend is declared, the tax impact of repatriating earnings would not be significant as substantially all of the net prior unrepatriated earnings have been subject to U.S. tax. Additionally, any foreign tax withholding would not be significant. During 2021, the Company made a one-time distribution from Malaysia to the U.S. resulting in an insignificant amount of U.S. income tax recorded to the financial statements. The Company continues to maintain that the remaining earnings of all foreign operating subsidiaries are indefinitely invested outside the U.S. As a result, no additional income taxes have been provided on any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable at this time. Accordingly, no deferred taxes have been provided for withholding taxes or other taxes on permanently reinvested earnings. Unrecognized Tax Benefits: The beginning and ending unrecognized tax benefits reconciliation is as follows: 2022 2021 2020 Beginning balance at January 1 $ 18.3 $ 16.5 $ 5.4 Bombardier Acquisition opening balance sheet — — 14.0 Remeasurement for tax rate change — 2.0 — Gross increases related to current period tax positions 0.4 0.4 0.4 Statute of limitations' expiration (10.6) (0.6) (3.3) Ending balance at December 31 $ 8.1 $ 18.3 $ 16.5 Included in the December 31 , 2022 balance was $8.1 in unrecognized tax benefits of which $6.9 would reduce the Company's effective tax rate if ultimately recognized. The Company reports interest and penalties, if any, related to unrecognized tax benefits in the income tax provision. As of December 31, 2022, 2021, and 2020, there was no accrued interest on the unrecognized tax benefit liability included in the balance sheets and income statements during 2022, 2021, and 2020. The Company files income tax returns in all jurisdictions in which it operates. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity Employee Stock Purchase Plan The Company maintains the Spirit AeroSystems Holdings, Inc. Employee Stock Purchase Plan (the “ESPP”), which became effective on October 1, 2017 and was amended and restated on January 21, 2020. The ESPP is implemented over consecutive six-month offering periods, beginning on April 1 and October 1 of each year and ending on the last day of September and March, respectively. Shares are issued on the last trading day of each six-month offering period. Generally, any person who is employed by the Company, Spirit or by a subsidiary or affiliate of the Company that has been designated by the Compensation Committee may participate in the ESPP. As of December 31, 2022, the number of remaining ESPP shares available for future issuances was 616,953. The maximum number of shares of the Company's Common Stock that may be purchased under the ESPP will be 1,000,000 shares, subject to adjustment for stock dividends, stock splits or combinations of shares of the Company's stock. The per-share purchase price for the Company's Common Stock purchased under the ESPP is 95% of the fair market value of a share of such stock on the last day of the offering period. Dividends On February 6, 2020, the Company announced that its Board of Directors reduced its quarterly dividend to a penny per share to preserve liquidity. For each of the four quarters in 2022, the Company paid a quarterly dividend to stockholders of $0.01 per share. The total amount of dividends paid during 2022 was $4.2 . On November 3, 2022, the Company announced that the Board had suspended payments of dividends. The Board regularly evaluates the Company's capital allocation strategy and dividend policy. Any future determination to pay dividends will be at the discretion of the Company's Board of Directors and will depend upon, among other factors, the Company's results of operations, financial condition, capital requirements and contractual restrictions, including the requirements of financing agreements to which the Company may be a party. No assurance can be given that cash dividends will be declared and paid at historical levels or at all. 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 following table sets forth the computation of basic and diluted earnings per share: For the Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Loss Shares Per Loss Shares Per Loss Shares Per Basic EPS Loss available to common shareholders $ (545.7) 104.6 $ (5.21) $ (540.8) 104.2 $ (5.19) $ (870.3) 103.9 $ (8.38) Income allocated to participating securities — — — — — — Net loss $ (545.7) $ (540.8) $ (870.3) Diluted potential common shares — Diluted EPS Net loss $ (545.7) 104.6 $ (5.21) $ (540.8) 104.2 $ (5.19) $ (870.3) 103.9 $ (8.38) Included in the outstanding common shares were 0.4 million, 0.7 million and 1.5 million of issued but unvested shares at December 31, 2022, 2021 and 2020, respectively, which are excluded from the basic EPS calculation. Common shares of 0.6 million were excluded from diluted EPS as a result of incurring a net loss for the twelve- month period ended December 31, 2022 , as the effect would have been antidilutive. Additionally, diluted EPS for the twelve- month period ended December 31, 2022 excludes 0.3 million shares that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Common shares of 0.6 million were excluded from diluted EPS as a result of incurring a net loss for the twelve- month period ended December 31, 2021, as the effect would have been antidilutive. Additionally, diluted EPS for the twelve- month period ended December 31, 2021 excluded 0.3 million shares that were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss, net of tax, is summarized by component as follows: December 31, 2022 December 31, 2021 Pension (1) (95.4) 26.6 SERP/ Retiree medical 12.7 12.1 Derivatives - foreign currency hedge (7.1) (2.0) Foreign currency impact on long term intercompany loan (16.4) (12.2) Currency translation adjustment (97.7) (48.2) Total accumulated other comprehensive loss $ (203.9) $ (23.7) (1) The change in Pension related accumulated other comprehensive (loss) income from December 31, 2021 to December 31, 2022 is primarily related to the termination of the PVP A plan. See Note 17, Pension and Other Post-Retirement Benefits . Amortization or settlement cost recognition of the pension plans’ net gain/(loss) reclassified from accumulated other comprehensive loss and realized into costs of sales and selling, general and administrative on the consolidated statements of operations was ($107.0), $2.1 and ($9.5) for the twelve months ended December 31, 2022, 2021 and 2020, respectively. Non-controlling Interest Non-controlling interest at December 31, 2022 was $3.7, representing $0.5 non-controlling interest in the Company's KIESC subsidiary, the value of which remains unchanged from prior year, and a $3.2 non-controlling interest in the Company's subsidiary Spirit Evergreen Aftermarket Solutions Co., Ltd., a joint venture with Evergreen Technologies Corporation to provide MRO services to the Asia-Pacific market. Repurchases of Common Stock The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of December 31, 2022, no treasury shares have been reissued or retired. The number of treasury stock shares as of December 31, 2022 includes a minor adjustment related to the October 19, 2021 court ruling described in Note 22, Commitments, Contingencies and Guarantees for certain shares that were previously awarded to the Company's former Chief Executive Officer that were not settled in stock per the terms of the ruling. During the twelve-month periods ended December 31, 2022 and December 31, 2021 the Company purchased zero shares of its Common Stock under this share repurchase program. The total authorization amount remaining under the current share repurchase program is approximately $925.0. Share repurchases are currently on hold. The Credit Agreement imposes additional restrictions on the Company’s ability to repurchase shares. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure | Litigation On February 10, 2020, February 24, 2020, and March 24, 2020, three separate private securities class action lawsuits were filed against the Company in the U.S. District Court for the Northern District of Oklahoma, its Chief Executive Officer, Tom Gentile III, former Chief Financial Officer, Jose Garcia, and former Controller (principal accounting officer), John Gilson. On April 20, 2020, the Class Actions were consolidated by the court (the “Consolidated Class Action”), and on July 20, 2020, the plaintiffs filed a Consolidated Class Action Complaint which added Shawn Campbell, the Company’s former Vice President for the 737NG and B737 MAX program, as a defendant. Allegations in the Consolidated Class Action include (i) violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Rule 10b-5 promulgated thereunder against the Company and Messrs. Gentile, Garcia and Gilson, (ii) violations of Section 20(a) of the Exchange Act against the individual defendants, and (iii) violations of Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) promulgated thereunder against all defendants. On June 11, 2020, a shareholder derivative lawsuit (the “Derivative Action 1”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the U.S. District Court for the Northern District of Oklahoma. Allegations in the Derivative Action 1 include (i) breach of fiduciary duty, (ii) abuse of control, and (iii) gross mismanagement. On October 5, 2020, a shareholder derivative lawsuit (the “Derivative Action 2” and, together with Derivative Action 1, the “Derivative Actions”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the Eighteenth Judicial District, District Court of Sedgwick County, Kansas. Allegations in the Derivative Action 2 include (i) breach of fiduciary duty, (ii) waste of corporate assets, and (iii) unjust enrichment. The facts underlying the Consolidated Class Action and Derivative Actions relate to the accounting process compliance independent review (the “Accounting Review”) discussed in the Company’s January 30, 2020 press release and described under Management's Discussion and Analysis of Financial Condition and Results of Operations - Accounting Review in Part II, Item 7 of the Annual Report on Form 10-K for the year ended December 31, 2019, and its resulting conclusions. The Company voluntarily reported to the SEC the determination that, with respect to the third quarter of 2019, the Company did not comply with its established accounting processes related to potential third quarter contingent liabilities received after the quarter-end. On March 24, 2020, the Staff of the SEC Enforcement Division informed the Company that it had determined to close its inquiry without recommending any enforcement action against the Company. In addition, the facts underlying the Consolidated Class Action and Derivative Actions relate to the Company’s disclosures regarding the B737 MAX grounding and Spirit’s production rate (and related matters) after the grounding. On September 18, 2020, the Company and individual defendants filed a motion to dismiss the Consolidated Class Action. That motion was granted by the U.S. District Court on January 7, 2022, which denied leave to amend and dismissed the Consolidated Class Action with prejudice. On February 4, 2022, the plaintiffs in the Consolidated Class Action appealed this decision to the Tenth Circuit Court of Appeals. Briefings have been filed and oral argument was held before the 10th Circuit on November 18, 2022. The Derivative Actions remain stayed at this point. The Company and the individual defendants have denied, and continue to deny, the allegations in the Consolidated Class Action and the Derivative Actions. Spirit is also involved in litigation with its former Chief Executive Officer related to a disputed violation of restrictive covenants in his retirement agreement. On October 19, 2021, the U.S. District Court for the District of Kansas ruled in favor of the former Chief Executive Officer and awarded him $44.8 for benefits withheld in connection with the disputed violation. The Company has appealed this decision to the Tenth Circuit Court of Appeals. The matter has been fully briefed by both parties, and oral argument was held on November 15, 2022. A liability for the full amount of the award, plus accrued interest, has been recognized in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021. 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. In addition to the items addressed above, from time to time, the Company is subject to, and is presently involved in, litigation, legal proceedings, or other claims 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, the Company believes that, on a basis of information presently available, none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. Customer and Vendor Claims The Company receives, and is currently subject to, customer and vendor claims arising in the ordinary course of business, including, but not limited to, those related to product quality and late delivery. The Company accrues for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, the Company takes into consideration multiple factors including without limitation its historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of an unfavorable outcome, and the severity of any potential loss. Any accruals deemed necessary are reevaluated at least quarterly and updated as matters progress over time. The Company has evaluated and refined management’s original estimate of costs related to rework on the B787 aircraft, including a preliminary assessment related to rework on the forward section of the fuselage, for which the Company identified an additional fit and finish issue in the prior year. The Company continues to coordinate with Boeing for necessary rework. The Company cannot reasonably estimate the amount of any potential claims related to this issue at this time. On June 25, 2022, the Company received notice of a claim from a key customer seeking cost recovery primarily related to alleged product quality issues associated with the Company’s performance from 2018 through 2020 as well as onsite manufacturing support costs incurred by the customer. The Company has continued to evaluate the details included within the claim, however, the Company cannot currently reasonably estimate the amount of a range of possible losses due to various reasons, including, among others: (i) that there is uncertainty as to the outcome of this claim, (ii) that there are significant factual, commercial, and/or legal issues to be resolved, and (iii) the availability of data required to complete an assessment of the potential loss. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the factual and 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. However, it is possible that the Company’s results of operations in a specific period could be materially affected by one or more of these other matters. Commitments The Company's future aggregate capital commitments totaled $110.2 and $137.5 at December 31, 2022 and December 31, 2021, respectively. Contingencies In the fourth quarter of 2022, the Company updated its estimated cost to satisfy all customer firm orders on the B787, A350, and A220 production programs. Based on forecasted backlog and rates of production, each of these programs anticipate production will extend beyond the period of time for which the Company has recorded forward losses. The Company has recorded forward losses on the A220 and A350 programs for forecasted production through the end of 2025 and has recognized forward losses on the B787 program for forecasted production through May of 2026. As a result of the Company’s assessment on existing cost estimates and the impact macroeconomic factors may have on the Company's cost to complete all firm orders, as well as ongoing discussions with its customers, the Company now believes it is reasonably possible one or more of these programs could be performed at a loss incremental to forward losses previously recorded for production outside of the timeframe highlighted above, and the cumulative range of such loss across these programs is between $0 and $220 million. As the Company does not currently believe incremental losses are evident on any of these programs, the Company has not recognized any such losses in its financial results for the period ended December 31, 2022. Guarantees Contingent liabilities in the form of letters of guarantee have been provided by the Company. Outstanding guarantees were $13.9 and $15.9 at December 31, 2022 and December 31, 2021, respectively. Restricted Cash - Collateral Requirements The Company was required to maintain $19.6 and $19.5 of restricted cash as of December 31, 2022 and December 31, 2021, respectively, related to certain collateral requirements for obligations under its workers’ compensation programs. Restricted cash is included in "Other assets" in the Company's Consolidated Balance Sheet. Indemnification The Company has entered into customary indemnification agreements with its non-employee directors, and its bylaws and certain executive employment agreements include indemnification and advancement provisions. Pursuant to the terms of the bylaws and, with respect to Jose Garcia, his employment agreement, the Company is providing Messrs. Garcia and Gilson and all other individual defendants with defense costs and provisional indemnity with respect to the Consolidated Class Action and Derivative Actions, as appropriate. Under the bylaws and any applicable 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, the Company considers other factors including the experience of other entities in the same business and management judgment, among others. Service warranty and extraordinary work 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 $2.3 as of December 31, 2022 and December 31, 2021. These specific provisions represent the Company’s best estimate of probable warranty claims. 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 reasonably possible disputed warranty claims in excess of the specific warranty provision was $3.4 as of December 31, 2022 and December 31, 2021. The following is a roll forward of the service warranty and extraordinary rework balance at December 31, 2022, 2021 and 2020: 2022 2021 2020 Balance, January 1 $ 71.3 $ 76.9 $ 64.7 Charges to costs and expenses 6.7 12.3 3.3 Payouts (2.7) (17.7) (1.9) Bombardier Acquisition (1) — — 10.3 Exchange rate (0.4) (0.2) 0.5 Balance, December 31 $ 74.9 $ 71.3 $ 76.9 _______________________________________ (1) Warranty liabilities acquired in the Bombardier acquisition. Bonds Since its incorporation, Spirit has periodically utilized City of Wichita issued Industrial Revenue Bonds (“IRBs”) to finance self-constructed and purchased real property at its Wichita site. Tax benefits associated with IRBs include provisions for a ten-year complete property tax abatement and a Kansas Department of Revenue sales tax exemption on all IRB funded purchases. Spirit purchased these IRBs so they are bondholders and debtor / lessee for the property purchased with the IRB proceeds. Spirit recorded the property net of a finance lease obligation to repay the IRB proceeds on its balance sheet. Gross assets and liabilities associated with these IRBs were $393.2 as of December 31, 2022 and December 31, 2021 . |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income (Expense), Net | Other (Expense) Income, Net Other (expense) income, net is summarized as follows: For the Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Kansas Development Finance Authority bond $ 2.4 $ 2.8 $ 3.0 Pension (loss) income (1) (30.2) 150.1 (36.8) Interest income 6.2 1.8 10.0 Loss on foreign currency forward contract and interest rate swaps (17.1) (1.0) (10.5) Loss on sale of accounts receivable (23.4) (6.7) (8.9) Foreign currency gains (losses) (2) 21.6 1.4 (27.0) Excise tax on pension assets reversion (3) (6.8) — — Gain on settlement of financial instrument (4) 20.7 — — Other (5) 12.5 (1.8) (7.6) Total Other (Expense) Income, net $ (14.1) $ 146.6 $ (77.8) (1) Pension expense for the twelve months ended December 31, 2022 includes a $73.5 non-cash, pre-tax non-operating charge for amortization of prior service costs and $33.3 of settlement loss. See also Note 17 Pension and Other Post-Retirement Benefits . Pension income for the twelve months ended December 31, 2021 includes $119.8 of income related to pension plans for current and former employees at the Belfast location, including the impact of the closure of the Shorts Pension which resulted in a curtailment gain of $61.0 for the twelve months ended December 31, 2021. Pension expense for the twelve months ended December 31, 2020 included $86.5 of expenses related to the voluntary retirement program. (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. (3) Excise tax related to the reversion of excess plan assets for the twelve months ended December 31, 2022. See Note 17 Pension and Other Post-Retirement Benefits. (4) The twelve-month period ended December 31, 2022 includes a $20.7 gain related to a deed of release and related cash payment that fully settled the existing repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy ("BEIS"). The repayable investment obligation, which was denominated in GBP, was included on the Company’s Consolidated Balance Sheet as of December 31, 2021, as $41.7 recorded to "Other current liabilities" and $301.9 recorded to "Other non-current liabilities". In January 2022, the Company made repayments of $25.6 to the UK’s Department for Business Energy and Industrial Strategy for units sold, including interest, in respect to the agreement. In April 2022, the deed of release settled the remaining outstanding repayment obligation, including current year interest accrual and foreign currency measurement impacts, in exchange for a payment of $292.8. The portion of the payments related to interest expense and the portion of the payments related to principal repayment are included in net cash used in operating activities and net cash used in financing activities, respectively, on the Company's Consolidated Statement of Cash Flows for the period ended December 31, 2022. (5) The twelve-month period ended December 31, 2022 include a gain of $10.0 related to the termination of a previously existing joint venture agreement within the period. |
Significant Concentration of Ri
Significant Concentration of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Significant Concentration Risk | Significant Concentrations of Risk Economic Dependence The Company’s largest customer (Boeing) accounted for approximately 60%, 56%, and 60% of the revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively. Approximately 28% and 24% of the Company's accounts receivable balance at December 31, 2022, and 2021, respectively, was attributable to Boeing. The Company’s second largest customer (Airbus) accounted for approximately 22%, 24%, and 23% of the revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively. Approximately 36% and 27% of the Company's accounts receivable balance at December 31, 2022, and 2021, respectively, was attributable to Airbus. Employees At December 31, 2022, the Company had approximately 18,235 employees: 12,735 located in its six U.S. facilities, 3,200 located in its Belfast facilities, 1000 located at its Prestwick facility, 950 located in its Malaysia facility, 250 located in its Morocco facility, and 100 located in its France facility. Of the employees located in the Company's six U.S. facilities, 11,000 were located in Wichita, Kansas; 850 were located in Tulsa Oklahoma; 450 were located in Kinston, North Carolina; 300 were located in Biddeford, Maine; 100 were located in Dallas, Texas; and 35 were located in Woonsocket, Rhode Island. Approximately 83% of the Company’s U.S. employees are represented by unions. Approximately 57% of U.S. employees are represented by the International Association of Machinists and Aerospace Workers (IAM) collective bargaining agreement. There are two IAM collective bargaining agreements that will expire in June 2023 and November 2027. Approximately 55% of U.S. employees are represented by the IAM on the collective bargaining agreement that will expire in June 2023. Approximately 20% of the Company's U.S. employees are represented by the Society of Professional Engineering Employees in Aerospace (SPEEA) collective bargaining agreement. There are two SPEEA agreements that will expire in December 2024 and January 2026. Approximately 5% of the Company's U.S. employees are represented by the International Union, Automobile, Aerospace and Agricultural Implement Workers of America (UAW) collective bargaining agreement that will expire in December 2025. Approximately 1% of the Company's U.S. employees are represented by an International Brotherhood of Electrical Workers (IBEW) collective bargaining agreement that will expire in September 2023. Approximat ely 91% of the Company's Prestwick employees are part of the collective bargaining group represented by one union, Unite (Amicus Section). In 2013, the Company negotiated two separate ten-year pay agreements with the Manual Staff bargaining and the Monthly Staff bargaining groups of the Unite union. These agreements cover basic pay and variable at risk pay, while other employee terms and conditions generally remain the same from year to year until both parties agree to change them. In the first quarter of 2021, the Company negotiated and agreed with Unite, a three-year extension to the pay agreements which are effective from January 2023 to December 2025. The elements of the contract extension remain the same as those in the ten-year agreements. In the U.K. (Belfast), approximately 84% of the employees are part of the collective group represented by the Trade Unions. Unite the Union is the largest representing approximately 94% of such employees, with General, Municipal, Boilermakers making up the balance. The current agreement covers the period from January 2020 to December 2023. In France, the Company's employees are represented by CFTC (“Confédération Française des Travailleurs Chrétiens" or "French Confederation of Christian Workers”) and FO (“Force Ouvrière" or "Labor Force”). The Company negotiates yearly on compensation and once every four years on issues related to gender equality and work-life balance. The next election to determine union representation will occur in July 2023. In Morocco, approximately 65% of the Company's employees are represented by Union Marocain du Travail ("UMT"). The Company negotiated a three year agreement with UMT that expires in December 2025. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accrued expenses and other liabilities consist of the following: December 31, 2022 December 31, 2021 Accrued expenses Accrued wages and bonuses $ 56.3 $ 49.8 Accrued fringe benefits 110.7 104.3 Accrued payroll taxes 8.6 24.0 Accrued interest 31.6 34.9 Workers' compensation 7.6 7.6 Property and sales tax 23.4 25.4 Warranty/extraordinary rework reserve — current 1.5 2.9 Former executive officer liability (4) 47.0 44.8 Other (1) 125.0 82.4 Total $ 411.7 $ 376.1 Other liabilities Repayable investment agreement (2) $ — $ 301.9 Warranty/extraordinary rework reserve - non-current 73.4 68.4 Other (3) 68.2 53.6 Total $ 141.6 $ 423.9 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment and Geographical Information The Company operates in three principal segments: Commercial, Defense & Space and Aftermarket. Approximately 82% of the Company's net revenues for the twelve months ended December 31, 2022 came from the Company's two largest customers, Boeing and Airbus. Boeing represents a substantial portion of the Company's revenues across segments. Airbus also represent a substantial portion of revenues in the Commercial segment. 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. 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 Commercial segment includes design and manufacturing of forward, mid and rear fuselage sections and systems, struts/pylons, nacelles (including thrust reversers) and related engine structural components, wings and wing components (including flight control surfaces), as well as other miscellaneous structural parts for large commercial aircraft and/or business/regional jets. Sales from this segment are primarily to the aircraft OEMs or engine OEMs of large commercial aircraft and/or business/regional jet programs. Approximately 65%, 60%, and 64% of Commercial segment net revenues came from the Company's contracts with Boeing for the twelve months ended December 31, 2022, 2021, and 2020, respectively. Approximately 27%, 30%, and 28% of Commercial segment net revenues came from the Company's contracts with Airbus for the twelve months ended December 31, 2022, 2021, and 2020, respectively. The Commercial segment manufactures products at the Company's facilities in Wichita, Kansas; Tulsa, Oklahoma; Kinston, North Carolina; Prestwick, Scotland; Casablanca, Morocco; Belfast, Northern Ireland; and Subang, Malaysia. The Commercial segment also includes an assembly plant for the A350 XWB aircraft in Saint-Nazaire, France. The Company's Defense & Space segment includes design and manufacturing of fuselage, strut, nacelle, and wing aerostructures (primarily) for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker, which are commercial aircraft that are modified for military use. The segment also includes fabrication, bonding, assembly, testing tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles and hypersonics work, including solid rocket motor throats and nozzles and re-entry vehicle thermal protections systems, and forward cockpit and cabin, and fuselage work on rotorcraft aerostructures. Sales from this segment are primarily to the prime contractors on various U.S. Government defense program contracts for which the Company is a sub-contractor. A significant portion of the Defense & Space segment revenues are represented by defense business that is classified by the U.S. Government and cannot be specifically described. Approximately 34%, 36%, and 28% of Defense & Space segment net revenues came from the Company's contracts with an individual customer for the twelve months ended December 31, 2022, 2021, and 2020, respectively. In addition, a customer accounted for approximately 30%, 39%, and 44% of Defense & Space segment net revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively. The Defense & Space segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Biddeford, ME; Woonsocket, RI; Belfast, Northern Ireland; and Prestwick, Scotland. The Company's Aftermarket segment includes design, manufacturing, and marketing of spare parts and MRO services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repair, and other repair and overhaul (MRO) services. Approximately 48%, 44%, and 80% of Aftermarket segment net revenues came from the Company's contracts with a single customer for the twelve months ended December 31, 2022, 2021, and 2020, respectively. The Aftermarket segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Dallas, TX; Prestwick, Scotland; Casablanca, Morocco; and Belfast, Northern Ireland. 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 Operating income 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 twelve months ended December 31, 2022, 2021 and 2020: Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Segment Revenues Commercial $ 4,068.4 $ 3,128.1 $ 2,711.3 Defense & Space 649.8 585.0 491.3 Aftermarket 311.4 239.9 202.2 $ 5,029.6 $ 3,953.0 $ 3,404.8 Segment Operating (loss) income (1) Commercial (2) $ (82.9) $ (220.6) $ (620.6) Defense & Space (3) 72.8 44.3 47.0 Aftermarket (4) 58.5 50.3 37.0 48.4 (126.0) (536.6) Corporate SG&A (279.2) (279.9) (237.4) Research and development (50.4) (53.3) (38.8) Total operating (loss) income $ (281.2) $ (459.2) $ (812.8) _______________________________________ (1) Inclusive of forward losses, changes in estimate on loss programs and cumulative catch-up adjustments. These changes in estimates for the periods ended December 31, 2022, 2021, and 2020 are further detailed in Note 5, Changes in Estimates . (2) The twelve months ended December 31, 2022 include the impact of $24.7 of the total charge, mentioned above, in relation to the suspension of activities in Russia. The twelve months ended December 31, 2022 include excess capacity production costs of $149.5 related to temporary B737 MAX, A320 and A220 production schedule changes, $9.6 of temporary workforce adjustment costs as a result of the COVID-19 pandemic net of a U.S. employee retention credit and U.K government subsidies, and net ($25.5) of restructuring costs and other costs, including offset related to AMJPP. The year ended December 31, 2021 includes excess capacity production costs of $206.7 related to the temporary B737 MAX and A220 production schedule changes, abnormal costs of $12.0 for workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies, $6.8 of restructuring costs, and a $35.9 offset related to AMJPP . The year ended December 31, 2020 includes excess capacity production costs of $265.5 related to the temporary B737 MAX and A220 production schedule changes, abnormal costs of $33.7 for workforce adjustments as a result of COVID-19 production pause, net of U.S. employee retention credit and U.K. government subsidies, and $64.0 of restructuring costs. (3) The twelve months ended December 31, 2022 include excess capacity production costs of $7.8 related to the temporary B737 production schedule changes and a $2.3 offset to costs related to AMJPP. The year ended December 31, 2021 includes excess capacity production costs of $10.8, $1.1 of restructuring costs, and a $3.0 offset related to AMJPP . The year ended December 31, 2020 includes excess capacity production costs of $13.4 related to the temporary B737 production schedule changes, and $3.8 of restructuring costs. (4) The twelve months ended December 31, 2022 include the impact of $4.4 of the total charge, mentioned above, in relation to the suspension of activities in Russia. The twelve months ended December 31, 2022 include $1.9 offset to costs related to AMJPP. The year ended December 31, 2021 includes $0.3 restructuring costs, and a $2.2 offset to costs related to AMJPP. The year ended December 31, 2020 includes $5.2 of restructuring costs. Most of the Company’s revenue is obtained from sales inside the U.S. However, the Company does generate international sales, primarily from sales to Airbus. The following chart illustrates the split between domestic and foreign revenues: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Revenue Source (1) Net Revenues Percent of Net Revenues Percent of Net Revenues Percent of United States $ 3,814.5 76 % $ 2,822.2 71 % $ 2,637.6 77 % International United Kingdom 632.8 13 % 580.4 15 % 433.5 13 % Other 582.3 11 % 550.4 14 % 333.7 10 % Total International 1,215.1 24 % 1,130.8 29 % 767.2 23 % Total Revenues $ 5,029.6 100 % $ 3,953.0 100 % $ 3,404.8 100 % _______________________________________ (1) Net Revenues are attributable to countries based on destination where goods are delivered. As of December 31, 2022, most of the Company’s property, plant and equipment are located within the U.S. Approximately 18% of the Company's property, plant and equipment based on book value are located in the U.K., with approximately another 4% of the Company's total property, plant and equipment located in countries outside the U.S. and the U.K. The following chart illustrates the split between domestic and foreign assets: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Asset Location Total Percent of Total Percent of Total Percent of United States $ 1,708.2 78 % $ 1,833.7 77 % $ 1,931.0 77 % International United Kingdom 404.1 18 % 451.3 19 % 466.2 19 % Other 93.6 4 % 100.5 4 % 106.6 4 % Total International 497.7 22 % 551.8 23 % 572.8 23 % Total Property, Plant & Equipment $ 2,205.9 100 % $ 2,385.5 100 % $ 2,503.8 100 % |
Acquisitions (Notes)
Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Asco Acquisition [Text Block] | Asco Acquisition On May 1, 2018, the Company and its wholly-owned subsidiary Spirit AeroSystems Belgium Holdings BVBA (“Spirit Belgium”) entered into a definitive agreement (as amended, the “Asco Purchase Agreement”) with certain private sellers providing for the purchase by Spirit Belgium of all of the issued and outstanding equity of S.R.I.F. N.V., the parent company of Asco Industries N.V. (“Asco”), subject to certain customary closing adjustments, including foreign currency adjustments (the “Asco Acquisition”). On September 25, 2020, the Company, Spirit Belgium and the Sellers entered into an amendment to the Asco Purchase Agreement (the “Termination Agreement”) pursuant to which the parties agreed to terminate the Asco Purchase Agreement, including all schedules and annexes thereto (other than certain confidentiality agreements) (collectively with the Asco Purchase Agreement, the “Transaction Documents”), effective as of September 25, 2020. Under the Termination Agreement, the parties also agreed to release each other from any and all claims, rights of action, howsoever arising, of every kind and nature, in connection with, arising out of, based upon or related to, directly or indirectly, the Transaction Documents, including any breach, non-performance, action or failure to act under the Transaction Documents. Acquisition-related expenses were $20.0 for the twelve months ended December 31, 2020, and are included in selling, general and administrative costs on the Consolidated Statement of Operations. |
Applied Aerodynamics Acquisition | Applied Aerodynamics On April 26, 2021, the Company acquired the assets of Applied Aerodynamics, an MRO company based in Farmers Branch, Texas, for a purchase price of $29.6, including cash consideration of $21.1. The acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations. The purchase price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess purchase price recorded as goodwill, which is fully allocated to the Aftermarket segment. As of December 31, 2021 , t he Company concluded its assessment and purchase price allocation of the acquisition. The purchase price allocation of the assets acquired and the liabilities assumed was recorded as of the acquisition date, and those assets and liabilities were included in the Consolidated Balance Sheet as of December 31, 2021, including $3.0 of property, plant and equipment, $2.3 of working capital, $6.2 of intangible assets and $18.1 allocated to goodwill, which is expected to be deductible for tax purposes. Operating income from the acquired business is reported within the Aftermarket segment. Acquisition-related expenses were $0.6 for the twelve months ended December 31, 2021 and are included in selling, general and administrative costs on the Consolidated Statements of Operations. |
T.E.A.M., Inc. Acquisition | T.E.A.M., Inc. On November 23, 2022, Spirit AeroSystems Textiles, LLC ("Spirit Textiles"), a fully owned subsidiary of Spirit AeroSystems, Inc. closed its purchase of substantially all of the assets and all of the liabilities of T.E.A.M., Inc., a Rhode Island corporation, which is engaged in the business of manufacturing and engineering textiles, composites, and textile and composite products, for cash consideration of $31.3. The acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations. The purchase price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess purchase price recorded as goodwill, which is fully allocated to the Defense & Space segment. As of December 31, 2022, t he Company has preliminarily concluded, but not finalized, its assessment and purchase price allocation of the acquisition. The final fair value determination is subject to a contractual post-closing working capital true-up, which the Company expects to conclude in the first quarter of 2023. The final purchase price allocation is not expected to result in material adjustments to the assets acquired and the liabilities assumed that have been recorded as of the acquisition date, which are included in the Consolidated Balance Sheet as of December 31, 2022 , including $8.3 of property, plant and equipment, $2.3 of working capital, $13.5 of intangible assets and $7.1 allocated to goodwill, which is expected to be deductible for tax purposes. Operating income, as of the acquisition date, from the acquired business was immaterial and reported within the Defense & Space segment. Acquisition-related expenses were $1.2 for the twelve months ended December 31, 2022, and are included in selling, general and administrative costs on the Consolidated Statements of Operations. |
Bombardier Acquisition | Bombardier Acquisition On October 30, 2020, Spirit and Spirit AeroSystems Global Holdings Limited (“Spirit UK”), wholly owned subsidiaries of the Company, completed their previously announced acquisition of the outstanding equity of Short Brothers plc (“Shorts”) and Bombardier Aerospace North Africa SAS ("BANA"), and substantially all the assets of the maintenance, repair and overhaul business in Dallas, Texas (collectively, the “Bombardier Acquired Business”), along with the assumption of certain liabilities of Shorts and BANA (the “Bombardier Acquisition”). The Bombardier Acquired Businesses are global leaders in aerostructures and fabrication, delivering composite and metallic wing components, nacelles, fuselages and tail assemblies, along with high-value mechanical assemblies made out of aluminum, titanium and steel. The backlog of work includes long-term contracts on the Airbus aircraft family, along with Bombardier business and regional jets. The acquisition is in line with the Company’s growth strategy of increasing Airbus content, developing low-cost country footprint, and growing the Company’s aftermarket business. The Bombardier Acquired Businesses are included within the Commercial and Aftermarket reporting segments. Refer to Note 26, Segment and Geographical Information for additional information about the Company’s segments. The Company, acting through certain of its subsidiaries, also assumed net pension liabilities of approximately $316. In addition, Spirit assumed financial obligations related to a repayable investment agreement with the Department for Business, Energy and Industrial Strategy of the Government of the United Kingdom. As a result of its obligation to make future payments under this agreement, the Company recorded the assumed obligation from this transaction as a liability on its Consolidated Balance Sheet that will be accounted for using the interest method over the estimated life of the agreement. As a result, the Company imputes interest on the transaction and recorded imputed interest expense at the estimated interest rate. The Company's estimate of the interest rate under the agreement is based on the amount of payments expected to be made over the remaining life of the agreement. The Company utilizes future sales projections and growth rates to further develop this estimate. The projected amount of payments expected to be made involves the use of significant estimates and assumptions with respect to the number of units expected to be sold. The Company periodically assesses the expected payments to be made using a combination of historical results and forecasts from market data sources. To the extent such payments are greater or less than its initial estimates or the timing of such payments is materially different than its original estimates, the Company will adjust the amortization of the liability prospectively. The Company determined the fair value of the liability at the acquisition date to be $304 which is included within the liabilities assumed, with a current effective annual imputed interest rate of 6.78%. Cash payments made related to the principal component of the liability will be classified as a financing outflow on the Consolidated Statements of Cash Flows, while payments made related to the interest component will be presented within operating cash flows. The $275 cash consideration, along with these assumed liabilities, resulted in a total enterprise value of $895 a s of October 30, 2020. The Company agreed to procure payment of a special contribution of £100 million to the Shorts pension scheme (the "Shorts Pension") on October 30, 2021. In addition, included within the liabilities assumed is approximately $320 in forward loss contracts. Acquisition-related expenses were $3.3 and $11.0 for the twelve months ended December 31, 2021 and December 31, 2020, respectively, and are included in selling, general and administrative costs on the Consolidated Statements of Operations. The acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations . The purchase price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess purchase price recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. In some cases, the Company used discounted cash flow analyses, which were based on the Company's best estimate of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long-term business plans and recent operating performance. Use of different estimates and judgments could yield materially different results. The Company also identified contractual obligations with customers on certain contracts with economic returns that are lower than could be realized in market transactions as of the acquisition date. The Company measured these liabilities under the measurement provisions of FASB ASC Topic 820, Fair Value Measurements and Disclosures , which is based on the price to transfer the obligation to a market participant at the measurement date, assuming that the liability will remain outstanding in the marketplace. Significant assumptions were used to determine the fair value of the loss contract reserves using the discounted cash flow model including discount rates, forecasted quantities of products to be sold under the long-term contracts and market prices for respective products. These were forward looking assumptions that could be affected by future economic and market conditions. Based on the estimated net cash outflows of the programs plus a reasonable contracting profit margin required to transfer the contracts to market participants, the Company recorded assumed liabilities of approximately $320.1 in connection with the Bombardier Acquisition. These liabilities will be liquidated in accordance with the underlying pattern of obligations, as reflected by the expenses incurred on the contracts, as a reduction to cost of sales. These liabilities, net of amortization to date, are shown within the forward loss provision on the Consolidated Balance Sheets for the period ended December 31, 2022 . The Company has concluded its assessment and purchase price allocation of the Bombardier Acquisition. Based on additional information obtained during the nine month period ended September 30, 2021 , the Company recognized the following adjustments to its preliminary purchase price allocation, which are included in the final purchase price allocation below: intangible assets increased by $4.9, forward loss liability increased by $38.5, other non-current liabilities increased by $4.3, working capital decreased by $2.3. As a result of these adjustments, as of September 30, 2021 , the recognized goodwill was adjusted from $486.8 to $527.0. There were no measurement period adjustments materially impacting earnings that would have been recorded in previous reporting periods if the adjustments had been recognized as of the acquisition date. The purchase price allocation of the assets acquired and the liabilities assumed at the acquisition date is as follows: At October 30, 2020 Cash and cash equivalents $ 4.4 Accounts receivable, net 91.9 Inventory 251.6 Other current assets 11.4 Intangible assets, net 193.0 Other non-current assets 11.7 Property and equipment, net 373.6 Right of use asset 27.7 Goodwill 527.0 Total assets acquired $ 1,492.3 Accounts payable 90.4 Accrued payroll and employee benefits 113.8 Forward loss provision, short-term 33.8 Other current liabilities 31.5 Forward loss provision, long-term 286.3 Other non-current liabilities 317.7 Operating lease liabilities, long-term 27.5 Retirement benefits 316.3 Total liabilities assumed 1,217.3 Net assets acquired $ 275.0 The amounts allocated to the intangible assets identified above are as follows: Amount Amortization Period (in years) Developed Technology $ 62.0 15.0 Customer Relationships $ 131.0 18.0 Total intangible assets $ 193.0 The customer relationships intangible asset consists of estimated future revenues. The customer relationships intangible asset was valued using the excess earnings method (income approach) in which the value is derived from an estimation of the after-tax cash flows specifically attributable to the customer relationships. The analysis included assumptions for projections of revenues and expenses, contributory asset charges, discount rates, and a tax amortization benefit. The developed technology intangible asset was valued using the relief from royalty method (income approach) in which the value is derived by estimation of the after-tax royalty savings attributable to owning the assets. Assumptions in this analysis included projections of revenues, royalty rates representing costs avoided due to ownership of the assets, discount rates, and a tax amortization benefit. The goodwill recognized is attributable primarily to expected synergies and intangible assets that do not qualify for separate recognition, such as the acquired assembled workforce. The Company expects $24.8 of the goodwill to be deductible for income tax purposes. The Company's allocation of goodwill to its reportable segments is based on the fair value of projected earnings as of the acquisition date. The goodwill is allocated $228.8 to the Commercial segment and $298.2 to the Aftermarket segment. The results of operations of the Bombardier Acquired Businesses have been included in the Company’s consolidated statements of operations as of the acquisition date. The following table provides the results of operations for the Bombardier Acquired Businesses included in the Company’s consolidated statements of operations for the year ended December 31, 2020. Net revenue 93.4 Net income attributable to the Bombardier Acquired Businesses (26.5) The following summary, prepared on a pro forma basis, presents the unaudited consolidated results of operations for the twelve months ended December 31, 2020 as if the Bombardier Acquisition had been completed as of January 1, 2020. The pro forma results include the impact of any post-acquisition adjustments directly attributable to the acquisition and the impact of adjustments such as the recognition of additional depreciation and amortization expense, and the related income tax effects. This pro forma presentation does not include any impact of transaction synergies. The pro forma results are not necessarily indicative of what the results of operations would have been had the Bombardier Acquisition occurred during the periods presented, nor does it purport to represent results for any future periods. For the Twelve Months Ended December 31, Revenue - as reported $ 3,404.8 Revenue - pro forma $ 3,983.6 Net loss - as reported $ (870.3) Net loss - pro forma $ (883.2) Earnings Per Share - Diluted - as reported $ (8.38) Earnings Per Share - Diluted - pro forma (8.50) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Long-term Contracts [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 commercial, defense and space, and aftermarket 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 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”) are 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 for more than twenty years. Customers generally contract with the Company for requirements 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 an accounting 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. When the Company experiences abnormal production costs such as excess capacity costs the Company will expense the costs in the period incurred separately from the costs incurred for satisfaction of the performance obligations under the Company's contracts with customers. Revenue for performance obligations that are not recognized over time are recognized at the point in time when control transfers to the customer. 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. Additionally, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. 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. 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. |
Property, Plant and Equipment [Line Items] | |
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. 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 at standalone selling prices, in which case the modification is treated as a separate contract. If not, depending on whether the remaining performance obligations are distinct from the goods or services transferred on or before the modification, the modification is either treated prospectively as if it were a termination of the existing contract and the creation of a new contract, treated as if it were a part of the existing contract, or treated as some combination. 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 impact of loss contracts. The Company typically provides warranties on all the Company's products and services. Generally, warranties are not priced separately and customers cannot purchase them independently of the products or services under contract, so they do not create performance obligations. The Company's 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 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, the Company 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. |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying 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 U.S. (“GAAP”) and Regulation S-X. All intercompany balances and transactions have been eliminated in consolidation. Spirit is the majority participant in the Kansas Industrial Energy Supply Company ("KIESC"), a tenancy-in-common with other Wichita companies established to purchase natural gas. KIESC is fully consolidated as the Company owns 77.8% of the entity’s equity. Spirit has a controlling interest in, and fully consolidates, its subsidiary Spirit Evergreen Aftermarket Solutions Co., Ltd., a joint venture with Evergreen Technologies Corporation to provide MRO services to the Asia-Pacific market. The Company’s U.K. subsidiary in Prestwick uses local currency, the British pound sterling, as its functional currency, and the Malaysian subsidiary also uses the British pound sterling as its functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. As part of the monthly consolidation process, the functional currencies of the Company’s international subsidiaries are translated to U.S. dollars using the end-of-month translation rate for assets and liabilities and average period currency translation rates for revenue and income accounts. |
Research and Development | Research and Development Research and development includes costs incurred for experimentation, design, and testing that are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent all highly liquid investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the invoiced amount and do not bear interest. Unbilled receivables are recorded on the balance sheet as contract assets, as per ASC 606 guidance. Management assesses and records an allowance for credit losses on financial assets within the scope of ASU 2016-13 using the current expected credit loss ("CECL") model. The amount necessary to adjust the allowance for credit losses to management’s current estimate, as of the reporting date, on these assets is recorded in net income as credit loss expense. All credit losses reported in accordance with ASU 2016-13 were on trade receivables and/or contract assets arising from the Company’s contracts with customers. See Note 6, Accounts Receivable, net , for more information. The Company has three agreements to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus, and Rolls-Royce to a third-party financial institution. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and continue to allow the Company to monetize the receivables prior to the payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of Boeing’s and Airbus’s financial condition. Transfers under this agreement are accounted for as sales of receivables resulting in the receivables being de-recognized from the Company's balance sheet. For additional information on the sale of receivables see Note 6, Accounts Receivable, net |
Inventory | Inventory Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. Production costs for contracts, including costs expected to be recovered on specific anticipated contracts (work that has commenced because the Company expects the customer to exercise options), are classified as work-in-process and include direct material, labor, overhead, and purchases. 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. Revenue and related cost of sales are recognized as the performance obligations are satisfied. When the Company experiences abnormal production costs, such as excess capacity costs, the Company will expense the costs in the period incurred and these costs are excluded from inventoriable costs. Valuation reserves for excess, obsolete, and slow-moving inventory are estimated by evaluating inventory of individual raw materials and parts against both historical usage rates and forecasted production requirements. See Note 9, Inventory |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by the Company, and has an acquisition cost of greater than $0.1. The Company applies the same criteria for capitalizing implementation costs incurred in a cloud computing arrangement hosted by the vendor. Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. See Note 10, Property, Plant and Equipment, net. |
Impairment or Disposal of Long-Lived Assets, and Goodwill | Impairment or Disposal of Long-Lived AssetsThe Company reviews capital and amortizing intangible assets (long-lived assets) for impairment whenever events or changes in circumstances indicate that the recorded amount may not be recoverable. Assets are classified as either held-for-use or available-for-sale. For held-for-use assets, if indicators are present, the Company performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset group in question to its carrying amount. If the undiscounted cash flows used in the recoverability test are less than the long-lived asset group’s carrying amount, the Company determines the fair value of the long-lived asset group and recognize an impairment loss if the carrying amount of the long-lived asset group exceeds its fair value. For assets available-for-sale, a loss is recognized when the recorded amount exceeds the fair value less cost to sell. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging ActivityThe Company uses derivative financial instruments to manage the economic impact of fluctuations in currency exchange rates and interest rates. Derivative financial instruments are recognized on the balance sheet as either assets or liabilities and are measured at fair value. Changes in fair value of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether the Company elected hedge accounting and whether a derivative is effective as part of a hedge transaction, and if it is, the type of hedge transaction. Gains and losses on derivative instruments reported in other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item or when the hedge is no longer effective. Cash flows associated with the Company’s derivatives are presented as a component of the operating section of the statement of cash flows. The use of derivatives has generally been limited to interest rate swaps and foreign currency forward contracts. The Company enters into foreign currency forward contracts to reduce the risks associated with the changes in foreign exchange rates on sales and cost of sales denominated in currencies other than the entities’ functional currency |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments are measured in accordance with FASB authoritative guidance related to fair value measurements. This guidance clarifies the definition of fair value, prescribes methods for measuring fair value, establishes a fair value hierarchy based on the inputs used to measure fair value, and expands disclosures about fair value measurements. See Note 14, Fair Value Measurements . |
Income Taxes | Income Taxes Income taxes are accounted for in accordance with FASB authoritative guidance on accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts for existing assets and liabilities and their respective tax bases. Tax rate changes impacting these assets and liabilities are recognized in the period during which the rate change occurs. Deferred tax assets are periodically evaluated to determine their recoverability and whether or not a valuation allowance is necessary. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. This assessment is completed on a taxing jurisdiction and entity filing basis. Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding the Company’s prior earnings history including the forward losses previously recognized in the U.S. and U.K., management determined that it was necessary to establish a valuation allowance against nearly all of its net U.S. and U.K. deferred tax assets at December 31, 2020. This determination was made as the Company entered into a U.S. cumulative loss position during the first half of 2021, as prior period positive earnings fell outside of the three-year measurement period. Additionally, entities of the U.K. operations are in cumulative loss positions after the inclusion of 2022, 2021 and 2020 losses. Once a company anticipates or enters a cumulative three-year loss position, there is a presumption that a company should no longer rely solely on projected future income in determining whether the deferred tax asset is more likely than not to be realized. Changes in the Company's estimates and judgments regarding realization of deferred tax assets may result in an increase or decrease to tax expense and/or other comprehensive income, which would be recorded in the period in which the change occurs. The Company records income tax provision or benefit based on the net income earned or net loss incurred in each tax jurisdiction and the tax rate applicable to that income or loss. In the ordinary course of business, there are transactions for which the ultimate tax outcome is uncertain. These uncertainties are accounted for in accordance with FASB authoritative guidance on accounting for the uncertainty in income taxes. The final tax outcome for these matters may be different than management's original estimates made in determining the income tax provision. A change to these estimates could impact the effective tax rate and net income or loss in subsequent periods. The Company uses the flow-through accounting method for tax credits. Under this method, tax credits reduce income tax expense. See Note 20, Income Taxes , for further discussion. |
Stock-Based Compensation and Other Share-based Payments | Stock-Based Compensation and Other Share-Based Payments Many of the Company’s employees are participants in the Omnibus Incentive Plan of 2014 (as amended, the “Omnibus Plan”). The expense attributable to the Company’s employees is recognized over the period the amounts are earned and vested, as described in Note 19, Stock Compensation . The expense includes an estimate of expected forfeitures, based on historical forfeiture trends. |
Business Combinations Policy | The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations. Transaction costs related to business combinations are expensed as incurred. Assets acquired and liabilities assumed are measured and recognized based on their estimated fair values at the acquisition date, any excess of the purchase consideration when compared to the fair value of the net tangible and intangible assets acquired is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. In some cases, the Company uses discounted cash flow analyses, which are based on estimates of future sales, earnings and cash flows after considering such factors as general market conditions, customer budgets, existing firm and future orders, changes in working capital, long term business plans and recent operating performance. If the initial accounting for the business combination is incomplete by the end of the reporting period in which the acquisition occurs, the business combination is recorded and disclosed on a preliminary basis. Subsequent to the acquisition date, and not later than one year from the acquisition date, adjustments to the initial preliminary recognized amounts are recorded to the extent new information is obtained about the measurement of assets and liabilities that existed as of the date of the acquisition. |
Goodwill and Intangible Assets, Goodwill, Policy | The Company assesses goodwill for impairment annually as of the first day of the fourth quarter or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. The Company tests goodwill for impairment by performing a qualitative assessment or quantitative test at the reporting unit level. In performing a qualitative assessment, the Company evaluates company-specific, market and industry, economic, and other relevant factors that may impact the fair value of reporting units or the carrying value of the net assets of the respective reporting unit. If it is determined that it is more likely than not that the carrying value of the net assets is more than the fair value of the respective reporting unit, then a quantitative test is performed, the Company may in any event opt to bypass the qualitative assessment at the annual assessment date and perform a quantitative assessment. Where the quantitative test is used, the Company compares the carrying value of net assets to the estimated fair value of the respective reporting unit. If the fair value is determined to be less than carrying value, a goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Life | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by the Company, and has an acquisition cost of greater than $0.1. The Company applies the same criteria for capitalizing implementation costs incurred in a cloud computing arrangement hosted by the vendor. Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. See Note 10, Property, Plant and Equipment, net. |
Changes in Estimates Changes in
Changes in Estimates Changes in Estimate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Change in Accounting Estimate [Line Items] | |
Schedule of Change in Accounting Estimate [Table Text Block] | Changes in Estimates December 31, 2022 December 31, 2021 December 31, 2020 (Unfavorable) Favorable Cumulative Catch-up Adjustments by Segment Commercial (30.1) (5.7) (28.9) Defense & Space 2.4 0.7 (1.5) Aftermarket — — — Total (Unfavorable) Favorable Cumulative Catch-up Adjustment $ (27.7) $ (5.0) $ (30.4) (Forward Loss) and Changes in Estimates on Loss Programs by Segment Commercial (243.9) (227.3) (366.8) Defense & Space (6.4) (14.2) (3.5) Aftermarket — — — Total (Forward Loss) and Change in Estimate on Loss Program $ (250.3) $ (241.5) $ (370.3) Total Change in Estimate $ (278.0) $ (246.5) $ (400.7) EPS Impact (diluted per share based on statutory tax rate) $ (2.68) $ (2.29) $ (3.07) |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts receivable, net consists of the following: December 31, December 31, Trade receivables $ 477.9 $ 412.0 Other 19.7 58.1 Less: allowance for credit losses (8.1) (8.5) Accounts receivable, net $ 489.5 $ 461.6 _______________________________________ |
Revenue Disaggregation and Ou_2
Revenue Disaggregation and Outstanding Performance Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table disaggregates revenues by the method of performance obligation satisfaction: For the Twelve Months Ended Revenue December 31, December 31, Contracts with performance obligations satisfied over time $ 3,684.8 $ 3,040.3 Contracts with performance obligations satisfied at a point in time 1,344.8 912.7 Total Revenue $ 5,029.6 $ 3,953.0 The following table disaggregates revenue by major customer: For the Twelve Months Ended Customer December 31, December 31, Boeing $ 3,008.9 $ 2,206.0 Airbus 1,098.2 945.6 Other 922.5 801.4 Total net revenues $ 5,029.6 $ 3,953.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Twelve Months Ended Location December 31, December 31, United States $ 3,814.5 $ 2,822.2 International United Kingdom 632.8 580.4 Other 582.3 550.4 Total International 1,215.1 1,130.8 Total Revenue $ 5,029.6 $ 3,953.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 8. Revenue Disaggregation and Outstanding Performance Obligations 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. Additionally, the Company disaggregates revenue based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 26, Segment and Geographical Information . The following table disaggregates revenues by the method of performance obligation satisfaction: For the Twelve Months Ended Revenue December 31, December 31, Contracts with performance obligations satisfied over time $ 3,684.8 $ 3,040.3 Contracts with performance obligations satisfied at a point in time 1,344.8 912.7 Total Revenue $ 5,029.6 $ 3,953.0 The following table disaggregates revenue by major customer: For the Twelve Months Ended Customer December 31, December 31, Boeing $ 3,008.9 $ 2,206.0 Airbus 1,098.2 945.6 Other 922.5 801.4 Total net revenues $ 5,029.6 $ 3,953.0 The following table disaggregates revenue based upon the location where control of products are transferred to the customer: For the Twelve Months Ended Location December 31, December 31, United States $ 3,814.5 $ 2,822.2 International United Kingdom 632.8 580.4 Other 582.3 550.4 Total International 1,215.1 1,130.8 Total Revenue $ 5,029.6 $ 3,953.0 Remaining Performance Obligations Unsatisfied, or partially unsatisfied, performance obligations currently under contract that are expected to be recognized to revenue in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below. 2023 2024 2025 2026 and After Unsatisfied performance obligations $4,216.9 $4,467.4 $975.3 $247.1 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | December 31, 2022 December 31, 2021 Raw materials $ 332.7 $ 301.4 Work-in-process (1) 1,044.9 999.1 Finished goods 69.4 56.9 Product inventory 1,447.0 1,357.4 Capitalized pre-production 23.7 25.2 Total inventory, net $ 1,470.7 $ 1,382.6 _______________________________________ (1) Work-in-process inventory includes direct labor, direct material, and overhead 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 over time using the input method. For the periods ended December 31, 2022 and December 31, 2021, work-in-process inventory includes $392.2 and $381.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the period. Product inventory, summarized in the table above, is shown net of valuation reserves of $136.8 and $97.3 as of December 31, 2022 and December 31, 2021, respectively. The increase in reserves from the prior period was driven by reserves recorded against inventory as of December 31, 2022 that were impacted by the suspension of activities in Russia. Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for the twelve months ended December 31, 2022 includes $157.3 of excess capacity production costs related to temporary B737 MAX, A220, and A320 production schedule changes. Cost of sales also includes abnormal costs related to workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies for the twelve months ended December 31, 2022 of $9.6. Cost of sales for the twelve months ended December 31, 2021 includes $217.5 of excess capacity production costs related to temporary B737 MAX, A220, and A320 production schedule changes and abnormal costs related to workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies for the twelve months ended December 31, 2021 of $12.0 . |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consists of the following: December 31, 2022 December 31, 2021 Land $ 30.1 $ 30.7 Buildings (including improvements) 1,269.1 1,242.0 Machinery and equipment 2,365.1 2,276.5 Tooling 1,055.9 1,051.1 Capitalized software 336.1 323.0 Construction-in-progress 102.2 117.1 Total 5,158.5 5,040.4 Less: accumulated depreciation (2,952.6) (2,654.9) Property, plant and equipment, net $ 2,205.9 $ 2,385.5 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets are summarized as follows: December 31, December 31, Intangible assets Favorable leasehold interests 2.8 2.8 Developed technology asset (1) 103.1 92.0 Customer relationships intangible assets (2) 139.6 137.2 Total intangible assets 245.5 232.0 Accumulated amortization - favorable leasehold interest (2.1) (1.9) Accumulated amortization - developed technology asset (15.0) (8.8) Accumulated amortization - customer relationships (17.0) (9.0) Intangible assets, net 211.4 212.3 (1) The acquisition of T.E.A.M., Inc. resulted in the establishment of an $11.1 intangible asset for developed technology. See also Note 28, Acquisitions. (2) The acquisition of T.E.A.M., Inc. resulted in the establishment of a $2.4 intangible asset for customer relationships. See also Note 28, Acquisitions. Amortization expense was $14.4 and $14.0 for the twelve months ended December 31, 2022 and 2021, respectively. The Company’s policy is to use straight-line amortization on the amortizing intangible assets. The amortization for each of the five succeeding years relating to intangible assets currently recorded in the Consolidated Balance sheet and the weighted average amortization is estimated to be the following as of December 31, 2022: Year Favorable leasehold interest Developed Technology Customer Relationships Total 2023 0.1 7.0 8.2 15.3 2024 0.1 6.9 8.2 15.2 2025 0.1 6.9 8.2 15.2 2026 0.1 6.9 8.2 15.2 2027 0.1 6.9 8.2 15.2 Weighted average amortization period 6.5 12.9 15.4 14.3 |
Other Assets | Other current assets are summarized as follows: December 31, December 31, Prepaid expenses 27.5 20.7 Income tax receivable 3.9 14.0 Other assets- short term 6.9 5.0 Total other current assets $ 38.3 $ 39.7 Other assets are summarized as follows: December 31, December 31, Deferred financing Deferred financing costs 0.9 0.9 Less: Accumulated amortization-deferred financing costs (0.8) (0.6) Deferred financing costs, net 0.1 0.3 Other Supply agreements (1) 6.4 9.2 Equity in net assets of affiliates 1.1 0.8 Restricted cash - collateral requirements 19.6 19.5 Rotables 39.0 38.3 Other 25.6 23.5 Total $ 91.8 $ 91.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount And Estimated Fair Value Of Long Term Debt | December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Senior secured term loan B (including current portion) 571.7 564.5 (2) 595.2 595.2 (2) Senior notes due 2023 — — (1) 299.3 303.6 (1) Senior secured first lien notes due 2025 20.7 20.8 (1) 495.3 513.3 (1) Senior secured second lien notes due 2025 1,191.0 1,179.0 (1) 1,187.5 1,252.4 (1) Senior notes due 2026 298.8 272.8 (1) 298.4 307.5 (1) Senior notes due 2028 695.9 562.3 (1) 695.2 697.4 (1) Senior notes due 2029 $ 887.2 $ 935.7 (1) $ — $ — (1) Total $ 3,665.3 $ 3,535.1 $ 3,570.9 $ 3,669.4 _______________________________________ (1) Level 1 Fair Value hierarchy (2) Level 2 Fair Value hierarchy |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |
Multiemployer Plan Table | Multi-employer Pension Plan In connection with the collective bargaining agreement signed with the International Association of Machinists and Aerospace Workers (“IAM”), the Company contributes to a multi-employer defined benefit pension plan (“IAM National Pension Fund”). As of July 1, 2015, the level of contribution, as specified in the bargaining agreement was, in whole dollars, $1.75 per hour of employee service. The IAM bargaining agreement provided for a $0.05 per hour increase, in whole dollars, effective July 1 of each year through 2019. Effective July 1, 2019 the level of employer contribution increased to $1.95 per hour and will remain at $1.95 per hour through contract expiration. The IAM contract expires June 24, 2023. The collective bargaining agreement with the United Automobile, Aerospace and Agricultural Workers of America (“UAW”) requires the Company to contribute a specified amount per hour of service to the IAM National Pension Fund. The specified amount was $1.70 per hour in 2019. Per the negotiated UAW collective bargaining agreement, the pension contributions, in whole dollars, was $1.70 per hour effective January 1, 2019 and will be $1.75 per hour effective January 1, 2020 through year 2025. The risk of this multi-employer plan is different from single-employer plans in the following aspects: 1. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. 2. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. 3. If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The following table summarizes the multi-employer plan to which the Company contributes. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2021 and 2022 is for the plan's year-end at December 31, 2021, and December 31, 2022, respectively. The zone status is based on information received from the plan. Pension Protection Act Zone Status Expiration FIP/RP Contributions of the Company EIN/Pension Surcharge Pension Fund 2021 2022 2020 2021 2022 IAM National Pension Fund 51-60321295 Red Red Yes $ 30.1 $ 23.0 $ 27.2 Yes IAM June 24, 2023 Pension Fund Year Company Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan ’ s Year-End) IAM National Pension Fund 2020, 2022 |
Change in projected benefit obligations | Obligations and Funded Status The following tables reconcile the funded status of both pension and post-retirement medical benefits to the balance on the balance sheets for the fiscal years 2022 and 2021. Benefit obligation balances presented in the tables reflect the projected benefit obligation and accumulated benefit obligation for the Company’s pension plans, and accumulated post-retirement benefit obligations for the Company’s post-retirement medical plan. The Company uses an end of fiscal year measurement date of December 31 for the Company's U.S. pension and post-retirement medical plans. The funded status of the U.S. based defined benefit plans as of December 31, 2022 decreased overall due to less than expected asset returns, asset transfers, increased Pension Benefits Other Post-Retirement Periods Ended December 31, Periods Ended December 31, U.S. Plans 2022 2021 2022 2021 Change in projected benefit obligation: Beginning balance $ 814.1 $ 1,099.1 $ 42.5 $ 49.5 Service cost — — 0.7 0.8 Employee contributions — — 1.1 1.3 Interest cost 20.8 18.7 0.6 0.3 Actuarial (gains) losses (105.2) (38.7) (2.3) 1.0 Plan Amendments 73.5 — — — Plan Settlements (270.0) (226.7) — — Benefits paid (39.9) (38.3) (9.5) (10.4) Projected benefit obligation at the end of the period $ 493.3 $ 814.1 $ 33.1 $ 42.5 Assumptions used to determine benefit obligation: Discount rate 5.22 % 2.72 % 5.04 % 1.96 % Rate of compensation increase N/A N/A N/A N/A Medical assumptions: Trend assumed for the year N/A N/A 7.25 % 7.00 % Ultimate trend rate N/A N/A 4.00 % 4.00 % Year that ultimate trend rate is reached N/A N/A 2048 2047 Change in fair value of plan assets: Beginning balance $ 1,318.6 $ 1,526.3 $ — $ — Actual (loss) return on assets (218.9) 66.3 — — Employer contributions to plan (119.5) (9.0) 8.4 9.1 Employee contributions to plan — — 1.1 1.3 Plan Settlements (270.0) (226.7) — — Benefits paid (39.9) (38.3) (9.5) (10.4) Ending balance $ 670.3 $ 1,318.6 $ — $ — Reconciliation of funded status to net amounts recognized: Funded status (deficit) $ 177.0 $ 504.5 $ (33.1) $ (42.5) Net amounts recognized $ 177.0 $ 504.5 $ (33.1) $ (42.5) Amounts recognized in the balance sheet: Noncurrent assets $ 178.0 $ 505.8 — — Current liabilities (0.1) (0.1) (9.2) (9.7) Noncurrent liabilities (0.9) (1.2) (23.9) (32.8) Net amounts recognized $ 177.0 $ 504.5 $ (33.1) $ (42.5) Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive (loss) income $ (72.7) $ 51.7 $ 16.6 $ 16.2 Cumulative employer contributions in excess of net periodic benefit cost 249.7 452.8 (49.7) (58.7) Net amount recognized in the balance sheet $ 177.0 $ 504.5 $ (33.1) $ (42.5) Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation $ 1.0 $ 1.3 $ 33.1 $ 42.5 Accumulated benefit obligation 1.0 1.3 — — The U.S. based defined benefit plans utilize a cash balance based formula for a subset of the plan participants. The weighted-average interest crediting rates used to determine the benefit obligation and net periodic benefit cost for all future years is 5.25%. Pension Benefits Periods Ended December 31, U.K. Prestwick Plan 2022 2021 Change in projected benefit obligation: Beginning balance $ 71.6 $ 75.9 Service cost 1.7 1.2 Interest cost 1.1 1.0 Plan amendments 0.7 — Actuarial gains (26.7) (1.3) Benefits paid (1.7) (1.1) Expense paid (1.7) (1.2) Plan settlements (2.5) (2.2) Exchange rate changes (7.0) (0.7) Projected benefit obligation at the end of the period $ 35.5 $ 71.6 Assumptions used to determine benefit obligation: Discount rate 4.90 % 1.75 % Rate of compensation increase 3.35 % 3.50 % Change in fair value of plan assets: Beginning balance $ 98.3 $ 103.1 Actual loss on assets (38.7) (0.9) Company contributions 0.3 1.9 Plan settlements (2.9) (2.5) Expenses paid (1.7) (1.2) Benefits paid (1.7) (1.1) Exchange rate changes (9.5) (1.0) Ending balance $ 44.1 $ 98.3 Reconciliation of funded status to net amounts recognized: Funded status 8.6 26.7 Net amounts recognized $ 8.6 $ 26.7 Amounts recognized in the balance sheet: Noncurrent assets $ 8.6 $ 26.7 Noncurrent liabilities — — Net amounts recognized $ 8.6 $ 26.7 Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive income (10.0) 4.3 Prepaid pension cost 18.6 22.4 Net amount recognized in the balance sheet $ 8.6 $ 26.7 Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation $ — $ — Accumulated benefit obligation — — Fair value of assets $ — $ — Pension Benefits Other Periods Ended December 31, Periods Ended December 31, U.K Belfast Plans 2022 2021 2022 2021 Change in projected benefit obligation: Beginning balance $ 2,528.0 $ 2,661.4 $ 0.8 $ 0.8 Service cost 1.3 39.3 — 0.1 Employee contributions — 0.9 — — Expenses paid (1.3) (1.3) — — Interest cost 39.9 36.3 — — Actuarial gains (854.1) (57.5) (0.4) — Plan curtailments — (61.0) — — Exchange rate changes (250.8) (22.2) (0.1) — Benefits paid (55.4) (67.9) — (0.1) Projected benefit obligation at the end of the period $ 1,407.6 $ 2,528.0 $ 0.3 $ 0.8 Assumptions used to determine benefit obligation: Discount rate 4.96 % 1.80 % 4.96 % 1.80 % Rate of compensation increase N/A N/A N/A N/A Medical assumptions: Trend assumed for the year N/A N/A 5.95 % 5.75 % Ultimate trend rate N/A N/A 5.95 % 5.75 % Year that ultimate trend rate is reached N/A N/A N/A N/A Change in fair value of plan assets: Beginning balance $ 2,488.1 $ 2,262.7 $ — $ — Net transfer in/(out) (including the effect of any business combination divestitures) — — — — Actual (loss) return on assets (785.0) 139.7 — — Employer contributions to plan 19.0 180.9 — 0.1 Employee contributions to plan — 0.9 — — Benefits paid (55.4) (67.9) — (0.1) Exchange rate changes (247.6) (26.9) — — Expenses paid (1.3) (1.3) — — Ending balance $ 1,417.8 $ 2,488.1 $ — $ — Reconciliation of funded status to net amounts recognized: Funded status (deficit) $ 10.2 $ (39.9) $ (0.3) $ (0.8) Net amounts recognized $ 10.2 $ (39.9) $ (0.3) $ (0.8) Amounts recognized in the balance sheet: Noncurrent assets 10.2 0.6 — — Current liabilities — — — (0.1) Noncurrent liabilities — (40.5) (0.3) (0.7) Net amounts recognized $ 10.2 $ (39.9) $ (0.3) $ (0.8) Amounts not yet reflected in net periodic benefit cost and included in AOCI: Accumulated other comprehensive (loss) income $ (3.1) $ 21.6 $ 0.4 $ — Cumulative employer contributions in excess of net periodic benefit cost 13.3 (61.5) (0.7) (0.8) Net amount recognized in the balance sheet $ 10.2 $ (39.9) $ (0.3) $ (0.8) Information for pension plans with benefit obligations in excess of plan assets: Projected benefit obligation $ 15.2 $ 2,501.9 $ 0.3 $ 0.8 Accumulated benefit obligation 15.2 2,501.9 — — Fair value of assets 15.1 2,461.2 — — |
Annual Expense | Annual Expense The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Other Periods Ended Periods Ended U.S. Plans 2022 2021 2020 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 0.7 $ 0.8 $ 0.8 Interest cost 20.8 18.7 24.4 0.6 0.3 1.0 Expected return on plan assets (44.0) (57.7) (64.2) — — — Amortization of net (gain) loss — — 0.2 (1.0) (1.3) (1.7) Amortization of prior service costs (1) 73.5 — — (0.8) (0.8) (0.9) Settlement loss recognized (2) 33.3 11.0 9.8 — — — Curtailment loss/(gain) (3) — — 33.9 — — (0.2) Special termination benefits (3) — — 31.0 — — 12.0 Net periodic benefit cost (income) 83.6 (28.0) 35.1 (0.5) (1.0) 11.0 Other changes recognized in OCI: Total recognized in other OCI (income) loss $ 124.4 $ (58.2) $ (39.4) $ (0.4) $ 3.2 $ 1.0 Total recognized in other net periodic benefit and OCI loss (income) $ 208.0 $ (86.2) $ (4.3) $ (0.9) $ 2.2 $ 12.0 Assumptions used to determine net periodic benefit costs: Discount rate 2.72 % 2.31 % 3.19 % 1.96 % 1.26 % 2.55 % Expected return on plan assets 4.00 % 4.00 % 4.50 % N/A N/A N/A Salary increases N/A N/A N/A N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 7.00 % 5.56 % 5.90 % Ultimate trend rate N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A N/A 2047 2038 2038 (1) Due to a plan amendment related to a benefit enhancement, prior service cost amortization of $73.5 was recorded to Other income (expense). (2) Due to settlement accounting during the fiscal years ending 2022, 2021, and 2020, the Company recognized charges of $33.3, $11.0 and $9.8, respectively, that was recorded to Other income (expense). (2) Special termination benefits and curtailment loss as of December 31, 2020 is a combination of pension value plan, post-retirement medical plan, offset by a reduction in the Company’s net benefit obligation. The increase is due to voluntary retirement programs in 2020. The Company records the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income. The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Periods Ended U.K. Prestwick Plan 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ 1.7 $ 1.2 $ 0.9 Interest cost 1.1 1.0 1.2 Expected return on plan assets (1.7) (1.4) (1.7) Settlement gain (loss) 0.6 (0.2) (0.4) Net periodic benefit cost (income) $ 1.7 $ 0.6 $ — Other changes recognized in OCI: Total cost (income) recognized in OCI $ 13.9 $ 1.2 $ (0.9) Total recognized in net periodic benefit cost and OCI $ 15.6 $ 1.8 $ (0.9) Assumptions used to determine net periodic benefit costs: Discount rate 1.75 % 1.45 % 2.10 % Expected return on plan assets 2.00 % 1.40 % 2.00 % Salary increases 3.50 % 3.10 % 3.15 % The components of the pension benefit plan expense for the Belfast plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Other Post-Retirement Benefits Periods Ended Periods Ended U.K. Belfast Plans 2022 2021 2020 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ 1.3 $ 39.3 $ 6.3 $ — $ 0.1 $ — Interest cost 39.9 36.3 5.9 — — — Curtailment (gain) recognized (1) — (61.0) — — — — Expected return on plan assets (92.0) (95.2) (14.0) — — — Net periodic benefit (income) cost $ (50.8) $ (80.6) $ (1.8) $ — $ 0.1 $ — Other changes recognized in OCI: Total (income) recognized in OCI $ 24.7 $ (98.1) $ 96.6 $ (0.4) $ — $ — Total recognized in net periodic benefit cost and OCI $ (26.1) $ (178.7) $ 94.8 $ (0.4) $ 0.1 $ — Assumptions used to determine net periodic benefit costs: Discount rate 1.80 % 1.45 % 1.75 % 1.80 % 1.45 % 1.75 % Expected return on plan assets 4.10 % 4.20 % 4.20 % N/A N/A N/A Salary increases N/A 2.90 % 2.75 % N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 5.75 % 5.75 % 5.50 % Ultimate trend rate N/A N/A N/A 5.75 % 5.75 % 5.50 % Year that ultimate trend rate is reached N/A N/A N/A N/A N/A N/A (1) In the fourth quarter of 2021, the Shorts Pension Defined Benefit plan was closed out and a new defined contribution plan was opened for affected employees. This closure resulted in a curtailment gain of $6 1.0. Assumptions The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. During 2015, the mortality assumption for the U.S. plans was updated to Mercer’s MRP-2007 generational mortality tables for non-annuitants and Mercer’s MILES-2010 generational tables for the Auto, Industrial Goods and Transportation group for annuitants both reflecting Mercer’s MMP-2007 improvement scale. In 2018, the Company incorporated the MMP-2018 improvement scale. MMP-2018 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2018 scale, but with different parameters and adjustments for actual experience since 2006. In 2019, the Company incorporated the MMP-2019 improvement scale which was utilized in 2020. In 2021, the Company incorporated the MMP-2021 improvement scale. MMP-2021 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2019 scale, but with different parameters and adjustments for actual experience since 2006. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership. The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trend s. These assumptions were reviewed in 2022 based on a review of updated national health trends. |
Asset Category U.S. | The Company’s plans have asset allocations for the U.S., as of December 31, 2022 and December 31, 2021, as follows: 2022 2021 Asset Category — U.S. Cash equivalents 29 % 6 % Equity securities — U.S. 71 % 22 % Equity securities — International — % 3 % Debt securities — % 67 % Real estate — % 2 % Total 100 % 100 % |
U.K. Plans Investment Objecives | U.K. Prestwick Plan The Trustee’s investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plan. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is: Equity securities 15 – 17% Debt securities 82 - 84% Property 1% |
Asset Category U.K. | The Plan has asset allocations as of December 31, 2022 and December 31, 2021, as follows: 2022 2021 Asset Category — U.K. Prestwick Equity securities 15 % 15 % Debt securities 80 % 80 % Other 5 % 5 % Total 100 % 100 % |
Total Benefits Expected To Be Paid Over Next Ten Years | The total benefits expected to be paid over the next ten years from the plans’ assets or the assets of the Company, by country, are as follows: U.S. Pension Plans Other 2023 $ 494.6 $ 9.2 2024 $ 0.1 $ 7.0 2025 $ 0.1 $ 4.8 2026 $ 0.1 $ 3.7 2027 $ 0.1 $ 3.4 2028-2032 $ 0.4 $ 9.6 U.K. Prestwick Pension Plans 2023 $ 3.6 2024 $ 3.7 2025 $ 3.8 2026 $ 3.9 2027 $ 4.1 2028-2032 $ 22.5 U.K. Belfast Pension Plans Other 2023 $ 57.2 $ — 2024 $ 60.8 $ — 2025 $ 64.4 $ — 2026 $ 69.6 $ — 2027 $ 73.8 $ — 2028-2032 $ 438.7 $ 0.1 |
Pension Plan Assets Measured at Fair Value on a Recurring Basis | Fair Value Measurements The pension plan assets are valued at fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Temporary Cash Investments — These investments consist of U.S. dollars and foreign currencies held in master trust accounts. Foreign currencies held are reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as level 1 investments. Collective Investment Trusts — These investments are public investment vehicles valued using market prices and performance of the fund. The trust allocates notional units to the policy holder based on the underlying notional unit buy (offer) price using the middle market price plus transaction costs. These investments are classified within level 2 of the valuation hierarchy. In addition, the collective investment trust includes a real estate fund, which is classified within level 3 of the valuation hierarchy. Commingled Equity and Bond Funds — These investments are valued at the closing price reported by the Plan Trustee. These investments are not being traded in an active market, but are backed by various investment securities managed by the Bank of New York. Fair value is being calculated using inputs that rely on the Bank of New York’s own assumptions, which are based on underlying investments that are traded on an active market and classified within level 2 of the valuation hierarchy. As of December 31, 2022 and December 31, 2021, the pension plan assets measured at fair value on a recurring basis were as follows: At December 31, 2022 Using Description December 31, 2022 Total Quoted Prices in Significant Significant Temporary Cash Investments $ 193.6 $ 193.6 $ — $ — Collective Investment Trusts 1,894.8 — 1,894.8 — Commingled Equity and Bond Funds 43.9 — 42.4 1.5 $ 2,132.3 $ 193.6 $ 1,937.2 $ 1.5 At December 31, 2021 Using Description December 31, 2021 Total Quoted Prices in Significant Significant Temporary Cash Investments $ 80.4 $ 80.4 $ — $ — Collective Investment Trusts 97.6 — 95.7 1.9 Commingled Equity and Bond Funds 3,700.1 — 3,700.1 — $ 3,878.1 $ 80.4 $ 3,795.8 $ 1.9 The table below sets forth a summary of changes in the fair value of the Plan’s level 3 investment assets and liabilities for the years ended December 31, 2022 and December 31, 2021: December 31, 2022 Description Beginning Purchases Gain (Loss) Sales, Exchange Ending Fair Collective Investment Trusts $ 1.9 $ — $ (0.2) $ — $ (0.2) $ 1.5 $ 1.9 $ — $ (0.2) $ — $ (0.2) $ 1.5 December 31, 2021 Description Beginning Purchases Gain (Loss) Sales, Exchange Ending Fair Collective Investment Trusts $ 3.4 $ — $ 0.2 $ (1.7) $ — $ 1.9 $ 3.4 $ — $ 0.2 $ (1.7) $ — $ 1.9 |
Pension and Other Post Retirement Benefits Plans Belfast Investment Objectives | The Trustees’ investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plans. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is: Equity securities 31% Fixed Income 35% Indexed-Linked Gilts 19% Real Return Assets 13% Money Market 2% |
Stock Compensation (Tables)
Stock Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | 19. Stock Compensation Holdings has established the stockholder-approved 2014 Omnibus Incentive Plan, as amended (the “Omnibus Plan”) to grant cash and equity awards to certain individuals. Compensation values are based on the value of Holdings’ Common Stock on the grant date, which is added to equity and charged to period expense. The Company’s Omnibus Plan was amended in October 2019 to allow for participants to make tax elections with respect to their equity awards. Holdings has recognized a net total of $36.6, $25.8, and $24.2 of stock compensation expense for the twelve months ended December 31, 2022, 2021, and 2020, respectively. During the twelve months ended December 31, 2022, 93,565 shares of Common Stock with aggregate grant date fair value of $3.0 were granted, and vested immediately, to employees in connection with the ratification of new labor contracts. Short-Term Incentive Plan The Short-Term Incentive Program under the Omnibus Plan enables eligible employees to receive incentive benefits in the form of cash as determined by the Compensation Committee. Board of Directors Stock Awards The Company’s Omnibus Plan provides non-employee directors the opportunity to receive grants of restricted shares of Common Stock, or Restricted Stock Units (“RSUs”) or a combination of both Common Stock and RSUs. The Common Stock grants and RSU grants vest one year from the grant date subject to the director's compliance with the one-year service condition; however, the RSU grants are not payable until the director’s separation from service. The Board of Directors is authorized to make discretionary grants of shares or RSUs from time to time. Compensation values are based on the value of Holdings’ Common Stock on the grant date, which is added to equity and charged to period expense. The Company expensed a net amount of $1.6, $1.5, and $1.4 for the restricted shares of Common Stock and RSUs for the twelve months ended December 31, 2022, 2021, and 2020, respectively. As of December 31, 2022, the Company’s unamortized stock compensation related to these restricted shares of Common Stock and RSUs is $0.7, which will be recognized over a weighted average remaining period of 4 months. The intrinsic value of the unvested restricted shares of Common Stock and RSUs, based on the value of the Company’s stock at December 31, 2022, was $1.9, based on the value of the Company’s Common Stock and the number of unvested shares of restricted Common Stock and RSUs. Shares Value (1) Class A Class A (Thousands) Board of Directors Stock Grants Nonvested at December 31, 2019 17 1.4 Granted during period 65 1.3 Vested during period (17) (1.5) Forfeited during period — — Nonvested at December 31, 2020 65 1.2 Granted during period 36 1.6 Vested during period (65) (1.2) Forfeited during period — — Nonvested at December 31, 2021 36 1.6 Granted during period 68 $ 2.2 Vested during period (41) $ (1.8) Forfeited during period — $ — Nonvested at December 31, 2022 63 $ 2.0 ______________________________________________________________________________________________________________________________ (1) Value represents grant date fair value per share. Shares Value (1) Common Stock Common Stock (Thousands) Long-Term Incentive Plan/Long-Term Incentive Award under Omnibus Plan Nonvested at December 31, 2019 1,304 $ 94.0 Granted during period 940 39.6 Vested during period (573) (39.1) Forfeited during period (192) (14.0) Nonvested at December 31, 2020 1,479 80.5 Granted during period 763 36.7 Vested during period (305) (20.6) Forfeited during period (535) (27.7) Nonvested at December 31, 2021 1,402 68.9 Granted during period 839 46.0 Vested during period (396) (20.6) Forfeited during period (142) (11.6) Nonvested at December 31, 2022 1,703 $ 82.7 ________________________________________________________________________________________________________________________________ (1) Value represents grant date fair value. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2022 2021 2020 U.S. $ (467.2) $ (553.3) $ (1,046.7) International (72.2) (1.9) (39.2) Total (before equity earnings) $ (539.4) $ (555.2) $ (1,085.9) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2022 2021 2020 Current Federal $ (4.5) $ (11.4) $ (301.0) State (0.7) (0.2) (5.5) Foreign 1.7 0.9 (8.1) Total current $ (3.5) $ (10.7) $ (314.6) Deferred Federal $ 10.2 $ (14.0) $ (16.2) State 2.5 15.9 106.9 Foreign (4.0) (8.4) 3.7 Total deferred 8.7 (6.5) 94.4 Total income tax provision (benefit) $ 5.2 $ (17.2) $ (220.2) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 2020 Tax at U.S. Federal statutory rate $ (113.3) 21.0 % $ (116.5) 21.0 % $ (228.1) 21.0 % State income taxes, net of Federal benefit (9.6) 1.8 (24.9) 4.5 (28.1) 2.6 State income tax credits, net of Federal benefit (15.6) 2.9 (7.4) 1.3 (17.4) 1.6 Foreign rate differences (3.5) 0.6 (5.2) 0.9 (3.3) 0.3 Research and experimentation (5.2) 1.0 (1.6) 0.3 (0.1) — Excess tax benefits 0.4 (0.1) 0.8 (0.1) 0.1 — Non-deductible expenses 4.2 (0.8) 1.9 (0.3) 10.5 (1.0) Re-measurement of Deferred Taxes (7.1) 1.3 (58.8) 10.6 1.7 (0.2) Global Intangible Low-Taxed Income (GILTI) Tax (1.8) 0.3 0.9 (0.2) 3.9 (0.4) Valuation Allowance 170.6 (31.6) 204.2 (36.9) 150.2 (13.8) NOL Utilized at 35% vs 21% — — (5.3) 1.0 (104.8) 9.7 Previously unrecognized tax benefit (10.6) 2.0 — — — — Other (3.3) 0.6 (5.3) 1.0 (4.8) 0.5 Total income tax provision (benefit) $ 5.2 (1.0 %) $ (17.2) 3.1 % $ (220.2) 20.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2022 2021 Depreciation and amortization $ (116.6) $ (159.6) Long-term contracts 113.3 144.2 State income tax credits 145.2 130.1 Net operating loss carryforward 438.1 321.7 Accruals and reserves 46.2 47.8 Employee compensation accruals 21.1 40.0 Pension and other employee benefit plans (32.8) (78.3) Interest expense limitation 30.7 27.1 Postretirement benefits other than pensions 7.9 10.2 Other 64.0 30.7 Inventory 0.5 1.0 Interest swap contracts 0.6 0.5 Net deferred tax asset before valuation allowance 718.2 515.4 Valuation allowance (714.7) (536.8) Net deferred tax (liability) 3.5 (21.4) |
Schedule of Unrecognized Tax Benefits Roll Forward | 2022 2021 2020 Beginning balance at January 1 $ 18.3 $ 16.5 $ 5.4 Bombardier Acquisition opening balance sheet — — 14.0 Remeasurement for tax rate change — 2.0 — Gross increases related to current period tax positions 0.4 0.4 0.4 Statute of limitations' expiration (10.6) (0.6) (3.3) Ending balance at December 31 $ 8.1 $ 18.3 $ 16.5 |
Equity (Tables)
Equity (Tables) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss, net of tax, is summarized by component as follows: December 31, 2022 December 31, 2021 Pension (1) (95.4) 26.6 SERP/ Retiree medical 12.7 12.1 Derivatives - foreign currency hedge (7.1) (2.0) Foreign currency impact on long term intercompany loan (16.4) (12.2) Currency translation adjustment (97.7) (48.2) Total accumulated other comprehensive loss $ (203.9) $ (23.7) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | $ (107) | $ 2.1 | $ (9.5) |
Accumulated Other Comprehensive Income (Loss) | $ (203.9) | (23.7) | |
Stock Repurchased During Period, Value | $ 0.1 | ||
Schedule Of Earnings Per Share, Basic And Diluted | 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 following table sets forth the computation of basic and diluted earnings per share: For the Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Loss Shares Per Loss Shares Per Loss Shares Per Basic EPS Loss available to common shareholders $ (545.7) 104.6 $ (5.21) $ (540.8) 104.2 $ (5.19) $ (870.3) 103.9 $ (8.38) Income allocated to participating securities — — — — — — Net loss $ (545.7) $ (540.8) $ (870.3) Diluted potential common shares — Diluted EPS Net loss $ (545.7) 104.6 $ (5.21) $ (540.8) 104.2 $ (5.19) $ (870.3) 103.9 $ (8.38) Included in the outstanding common shares were 0.4 million, 0.7 million and 1.5 million of issued but unvested shares at December 31, 2022, 2021 and 2020, respectively, which are excluded from the basic EPS calculation. Common shares of 0.6 million were excluded from diluted EPS as a result of incurring a net loss for the twelve- month period ended December 31, 2022 , as the effect would have been antidilutive. Additionally, diluted EPS for the twelve- month period ended December 31, 2022 excludes 0.3 million shares that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Common shares of 0.6 million were excluded from diluted EPS as a result of incurring a net loss for the twelve- month period ended December 31, 2021, as the effect would have been antidilutive. Additionally, diluted EPS for the twelve- month period ended December 31, 2021 excluded 0.3 million shares that were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. | ||
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) | $ (95.4) | 26.6 | |
Accumulated SERP And Retiree Medical [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) | 12.7 | 12.1 | |
Foreign Currency Impact On Long Term Intercompany Loan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) | (16.4) | (12.2) | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) | $ (97.7) | $ (48.2) |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Service Warranty Roll Forward | The following is a roll forward of the service warranty and extraordinary rework balance at December 31, 2022, 2021 and 2020: 2022 2021 2020 Balance, January 1 $ 71.3 $ 76.9 $ 64.7 Charges to costs and expenses 6.7 12.3 3.3 Payouts (2.7) (17.7) (1.9) Bombardier Acquisition (1) — — 10.3 Exchange rate (0.4) (0.2) 0.5 Balance, December 31 $ 74.9 $ 71.3 $ 76.9 _______________________________________ |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Income Expense Net | Other (expense) income, net is summarized as follows: For the Twelve Months Ended December 31, 2022 December 31, 2021 December 31, 2020 Kansas Development Finance Authority bond $ 2.4 $ 2.8 $ 3.0 Pension (loss) income (1) (30.2) 150.1 (36.8) Interest income 6.2 1.8 10.0 Loss on foreign currency forward contract and interest rate swaps (17.1) (1.0) (10.5) Loss on sale of accounts receivable (23.4) (6.7) (8.9) Foreign currency gains (losses) (2) 21.6 1.4 (27.0) Excise tax on pension assets reversion (3) (6.8) — — Gain on settlement of financial instrument (4) 20.7 — — Other (5) 12.5 (1.8) (7.6) Total Other (Expense) Income, net $ (14.1) $ 146.6 $ (77.8) |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following: December 31, 2022 December 31, 2021 Accrued expenses Accrued wages and bonuses $ 56.3 $ 49.8 Accrued fringe benefits 110.7 104.3 Accrued payroll taxes 8.6 24.0 Accrued interest 31.6 34.9 Workers' compensation 7.6 7.6 Property and sales tax 23.4 25.4 Warranty/extraordinary rework reserve — current 1.5 2.9 Former executive officer liability (4) 47.0 44.8 Other (1) 125.0 82.4 Total $ 411.7 $ 376.1 Other liabilities Repayable investment agreement (2) $ — $ 301.9 Warranty/extraordinary rework reserve - non-current 73.4 68.4 Other (3) 68.2 53.6 Total $ 141.6 $ 423.9 (1) Balance as of December 31, 2022 includes $86.1 of general and production material accruals and $13.3 of B787 program liabilities. Balance as of December 21, 2021 includes $61.3 of general and production material accruals and $13.9 of B787 program liabilities. (2) As a result of the acquisition of the acquired Bombardier Business, Spirit assumed financial obligations related to a repayable investment agreement with the Department for Business, Energy and Industrial Strategy of the Government of the United Kingdom. The balance above is the long term portion. Current portion of $0.0 a nd $41.8 as of December 31, 2022 and December 31, 2021, respectively, is within Other Liabilities – Short Term on the Balance Sheet. See Note 28, Acquisitions (3) Balance as of December 31, 2022 i ncludes $8.2 of deferred grant in Morocco, $8.3 various tax credits, $10.7 of estimated workers compensation liability, $8.5 earn-out provision, $17.8 of provisions related to the suspension of activities in Russia, and $8.0 of deferred compensation. (4) On October 19, 2021, the U.S. District Court for the District of Kansas ruled in favor of the Company’s former Chief Executive Officer and awarded him $44.8 plus interest for benefits withheld in connection with a disputed violation of restrictive covenants in his retirement agreement. See Note 22, Commitments, Contingencies, Guarantees. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | The following table shows segment revenues and operating income for the twelve months ended December 31, 2022, 2021 and 2020: Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Segment Revenues Commercial $ 4,068.4 $ 3,128.1 $ 2,711.3 Defense & Space 649.8 585.0 491.3 Aftermarket 311.4 239.9 202.2 $ 5,029.6 $ 3,953.0 $ 3,404.8 Segment Operating (loss) income (1) Commercial (2) $ (82.9) $ (220.6) $ (620.6) Defense & Space (3) 72.8 44.3 47.0 Aftermarket (4) 58.5 50.3 37.0 48.4 (126.0) (536.6) Corporate SG&A (279.2) (279.9) (237.4) Research and development (50.4) (53.3) (38.8) Total operating (loss) income $ (281.2) $ (459.2) $ (812.8) _______________________________________ (1) Inclusive of forward losses, changes in estimate on loss programs and cumulative catch-up adjustments. These changes in estimates for the periods ended December 31, 2022, 2021, and 2020 are further detailed in Note 5, Changes in Estimates . (2) The twelve months ended December 31, 2022 include the impact of $24.7 of the total charge, mentioned above, in relation to the suspension of activities in Russia. The twelve months ended December 31, 2022 include excess capacity production costs of $149.5 related to temporary B737 MAX, A320 and A220 production schedule changes, $9.6 of temporary workforce adjustment costs as a result of the COVID-19 pandemic net of a U.S. employee retention credit and U.K government subsidies, and net ($25.5) of restructuring costs and other costs, including offset related to AMJPP. The year ended December 31, 2021 includes excess capacity production costs of $206.7 related to the temporary B737 MAX and A220 production schedule changes, abnormal costs of $12.0 for workforce adjustments as a result of COVID-19 production pause, net of a U.S. employee retention credit and U.K. government subsidies, $6.8 of restructuring costs, and a $35.9 offset related to AMJPP . The year ended December 31, 2020 includes excess capacity production costs of $265.5 related to the temporary B737 MAX and A220 production schedule changes, abnormal costs of $33.7 for workforce adjustments as a result of COVID-19 production pause, net of U.S. employee retention credit and U.K. government subsidies, and $64.0 of restructuring costs. (3) The twelve months ended December 31, 2022 include excess capacity production costs of $7.8 related to the temporary B737 production schedule changes and a $2.3 offset to costs related to AMJPP. The year ended December 31, 2021 includes excess capacity production costs of $10.8, $1.1 of restructuring costs, and a $3.0 offset related to AMJPP . The year ended December 31, 2020 includes excess capacity production costs of $13.4 related to the temporary B737 production schedule changes, and $3.8 of restructuring costs. (4) The twelve months ended December 31, 2022 include the impact of $4.4 of the total charge, mentioned above, in relation to the suspension of activities in Russia. The twelve months ended December 31, 2022 include $1.9 offset to costs related to AMJPP. The year ended December 31, 2021 includes $0.3 restructuring costs, and a $2.2 offset to costs related to AMJPP. The year ended December 31, 2020 includes $5.2 of restructuring costs. |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following chart illustrates the split between domestic and foreign revenues: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Revenue Source (1) Net Revenues Percent of Net Revenues Percent of Net Revenues Percent of United States $ 3,814.5 76 % $ 2,822.2 71 % $ 2,637.6 77 % International United Kingdom 632.8 13 % 580.4 15 % 433.5 13 % Other 582.3 11 % 550.4 14 % 333.7 10 % Total International 1,215.1 24 % 1,130.8 29 % 767.2 23 % Total Revenues $ 5,029.6 100 % $ 3,953.0 100 % $ 3,404.8 100 % _______________________________________ (1) Net Revenues are attributable to countries based on destination where goods are delivered. As of December 31, 2022, most of the Company’s property, plant and equipment are located within the U.S. Approximately 18% of the Company's property, plant and equipment based on book value are located in the U.K., with approximately another 4% of the Company's total property, plant and equipment located in countries outside the U.S. and the U.K. The following chart illustrates the split between domestic and foreign assets: Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Asset Location Total Percent of Total Percent of Total Percent of United States $ 1,708.2 78 % $ 1,833.7 77 % $ 1,931.0 77 % International United Kingdom 404.1 18 % 451.3 19 % 466.2 19 % Other 93.6 4 % 100.5 4 % 106.6 4 % Total International 497.7 22 % 551.8 23 % 572.8 23 % Total Property, Plant & Equipment $ 2,205.9 100 % $ 2,385.5 100 % $ 2,503.8 100 % |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition [Abstract] [Abstract] | |
Asco Acquisition [Text Block] | Asco Acquisition On May 1, 2018, the Company and its wholly-owned subsidiary Spirit AeroSystems Belgium Holdings BVBA (“Spirit Belgium”) entered into a definitive agreement (as amended, the “Asco Purchase Agreement”) with certain private sellers providing for the purchase by Spirit Belgium of all of the issued and outstanding equity of S.R.I.F. N.V., the parent company of Asco Industries N.V. (“Asco”), subject to certain customary closing adjustments, including foreign currency adjustments (the “Asco Acquisition”). On September 25, 2020, the Company, Spirit Belgium and the Sellers entered into an amendment to the Asco Purchase Agreement (the “Termination Agreement”) pursuant to which the parties agreed to terminate the Asco Purchase Agreement, including all schedules and annexes thereto (other than certain confidentiality agreements) (collectively with the Asco Purchase Agreement, the “Transaction Documents”), effective as of September 25, 2020. Under the Termination Agreement, the parties also agreed to release each other from any and all claims, rights of action, howsoever arising, of every kind and nature, in connection with, arising out of, based upon or related to, directly or indirectly, the Transaction Documents, including any breach, non-performance, action or failure to act under the Transaction Documents. Acquisition-related expenses were $20.0 for the twelve months ended December 31, 2020, and are included in selling, general and administrative costs on the Consolidated Statement of Operations. |
FMI Acquisition [Text Block] |
Nature of Business (Details)
Nature of Business (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 3,868.6 | $ 3,034.3 | ||
Cash and cash equivalents | $ 658.6 | $ 1,478.6 | $ 1,873.3 | $ 2,350.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is applied using a straight-line method over the useful lives of the respective assets as described in the following table: Estimated Useful Life Land improvements 20 years Buildings 45 years Machinery and equipment 3-20 years Tooling — Airplane program — B787, Rolls-Royce 5-20 years Tooling — Airplane program — all others 2-10 years Capitalized software 3-7 years 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. The Company’s capitalization policy includes specifications that the software must have a service life greater than one year, is legally and substantially owned by the Company, and has an acquisition cost of greater than $0.1. The Company applies the same criteria for capitalizing implementation costs incurred in a cloud computing arrangement hosted by the vendor. Where the Company is involved in build-to-suit leasing arrangements, the Company is deemed the owner of the asset for accounting purposes during the construction period of the asset. The Company records the related assets and liabilities for construction costs incurred under these build-to-suit leasing arrangements during the construction period. Upon completion of the asset, the Company considers whether the assets and liabilities qualify for derecognition under the sale-leaseback accounting guidance. See Note 10, Property, Plant and Equipment, net. | ||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Product Warranty And Extraordinary Rework, Beginning Balance | $ 71.3 | $ 76.9 | $ 64.7 |
Charges to costs and expenses | 6.7 | 12.3 | 3.3 |
Product Warranty Accrual, Payments | 2.7 | 17.7 | 1.9 |
Exchange rate | (0.4) | (0.2) | 0.5 |
Product Warranty And Extraordinary Rework, Ending Balance | 74.9 | 71.3 | $ 76.9 |
Affiliates [Line Items] | |||
Equity in net assets of affiliates | 1.1 | 0.8 | |
Deferred Tax Assets, Valuation Allowance | 714.7 | 536.8 | |
Schedule of Property, Plant and Equipment [Table] | |||
Deferred Grant Income Liability Noncurrent | 25.7 | 26.4 | |
Deferred grant income in PP&E balance | 14.2 | ||
AMJPP government grant award | 75.5 | ||
Other Liabilities, Noncurrent | $ 141.6 | $ 423.9 | |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 45 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Tooling Airplane Program B787 Rolls Royce [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Tooling Airplane Program All Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | Tooling Airplane Program B787 Rolls Royce [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Tooling Airplane Program All Others [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Minimum [Member] | Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Capitalization Policy, Service Life | 1 year | ||
Capitalization Policy, Software, Acquisition Cost | $ 0.1 | ||
Domestic Tax Authority [Member] | |||
Affiliates [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 435.2 | ||
Foreign Tax Authority [Member] | |||
Affiliates [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | $ 279.3 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Income Tax (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 714.7 | $ 536.8 |
Foreign Tax Authority [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 279.3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Government Assistance [Line Items] | ||
Deferred Grant Income Liability Noncurrent | $ 25.7 | $ 26.4 |
AMJPP government grant award | 75.5 | |
Cost of Sales | ||
Government Assistance [Line Items] | ||
AMJPP government grant award | (32.6) | |
Selling, General and Administrative Expenses | ||
Government Assistance [Line Items] | ||
AMJPP government grant award | (1.5) | |
Government funding - other | Other Expense | ||
Government Assistance [Line Items] | ||
Government Assistance, Amount | 3.6 | |
Government funding (or partially funding) of capital | ||
Government Assistance [Line Items] | ||
Deferred Grant Income Liability Noncurrent | 18 | |
Government funding (or partially funding) of capital | Other Expense | ||
Government Assistance [Line Items] | ||
Government Assistance, Amount | 0.3 | |
Government funding (or partially funding) of capital | Cost of Sales | ||
Government Assistance [Line Items] | ||
Government Assistance, Amount | 3.3 | |
Government funding (or partially funding) of business development | ||
Government Assistance [Line Items] | ||
Deferred Grant Income Liability Noncurrent | 7.7 | |
Government funding (or partially funding) of business development | Cost of Sales | ||
Government Assistance [Line Items] | ||
Government Assistance, Amount | 1.4 | |
Government funding (or partially funding) of business development | Selling, General and Administrative Expenses | ||
Government Assistance [Line Items] | ||
Government Assistance, Amount | $ 0.5 |
Changes in Estimates (Details)
Changes in Estimates (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change In Estimate [Line Items] | |||
Change In Accounting Estimate, aggregate, affecting earnings from continuing operations | $ (278) | $ (246.5) | $ (400.7) |
Changes in Accounting Estimates - Contract Accounting, aggregate, Affecting earnings from Continuing Operations, per Share diluted | $ (2.68) | $ (2.29) | $ (3.07) |
Change in Accounting Estimate, Description | 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. The Company’s estimate of costs depends on maintaining continuing, uninterrupted production at its manufacturing facilities and its suppliers’ facilities. Interruptions in deliveries of or increased prices for components or raw materials used in the Company's products could delay production and/or materially adversely affect the Company's business. 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. Cumulative catch-up adjustments are primarily related to changes in the estimated margin of contracts with performance obligations that are satisfied over time.Changes in estimates could materially affect the Company’s future financial performance. Other than certain increases in raw material costs that can generally be passed on to the Company’s customers, in most instances the Company must fully absorb cost overruns. Some of the factors that may cause the costs incurred in fulfilling contracts to vary substantially from current estimates are technical problems, production rate changes, materials shortages, supplier difficulties, realization targets, existence of and execution to recovery plans caused by these factors, and multiple other events, including those identified in Item 1A. "Risk Factors". The risk particularly applies to products such as the B787, A220, and A350, which are in forward loss positions.Changes in estimates are summarized below:Changes in EstimatesDecember 31, 2022December 31, 2021December 31, 2020(Unfavorable) Favorable Cumulative Catch-up Adjustments by SegmentCommercial(30.1)(5.7)(28.9)Defense & Space2.4 0.7 (1.5)Aftermarket— — — Total (Unfavorable) Favorable Cumulative Catch-up Adjustment$(27.7)$(5.0)$(30.4)(Forward Loss) and Changes in Estimates on Loss Programs by SegmentCommercial(243.9)(227.3)(366.8)Defense & Space(6.4)(14.2)(3.5)Aftermarket— — — Total (Forward Loss) and Change in Estimate on Loss Program$(250.3)$(241.5)$(370.3)Total Change in Estimate$(278.0)$(246.5)$(400.7)EPS Impact (diluted per share based on statutory tax rate)$(2.68)$(2.29)$(3.07)2022 Changes in EstimatesDuring the twelve months ended December 31, 2022, the Company recognized net forward loss charges of $250.3 primarily driven by increased cost estimates for production rate decreases and build schedule changes, supply chain costs, costs of rework, and other costs on the B787 program, and additional labor, freight, and other cost requirements driven by parts shortages and production and quality issues, production schedule changes received from Airbus, increased freight and utility costs, and increased non-recurring engineering and tooling costs on the A350 program. Forward losses were also impacted by technical problems, realization targets, and existence and execution of factory recovery plans caused by the factors listed above and other factors. Additionally, the forward loss charges reflect anticipated production recovery costs related to the bankruptcy of a supplier and associated failure to deliver key parts on the A220 wing program, and, to a lesser extent, increased cost projections on the RB3070, B767, Bombardier Challenger 650, and a partial offset related to the release of a previously recorded forward loss provision that was impacted by the suspension of activities in Russia. Unfavorable cumulative catch-up adjustments of $27.7 were primarily recognized on the B737 MAX and A320 programs, reflective of increased costs experienced and estimated for supply chain, raw material, labor and other costs on the B737 MAX program, driven by production schedule changes, parts shortages, production recovery plan execution and increased supply chain and other costs. The A320 program unfavorable cumulative catch-up adjustment was driven by production cost overruns experienced due to operational and supply chain disruptions, and estimates of the impact of production schedule changes, increased material costs, increased freight costs, and increased labor and overhead costs. 2021 Changes in EstimatesDuring the twelve months ended December 31, 2021, the Company recognized net forward loss charges of $241.5 primarily driven by production rate changes on B787 and A350 programs and the corresponding amount of fixed overhead absorption applied to lower deliveries, engineering analysis and estimated costs of rework on the B787 programs, estimated quality improvement costs on the A350 program, and cost performance on the B767 program. Unfavorable cumulative catch-up adjustments of $5.0 were primarily driven by the change on the estimate of production for the B737 program.2020 Changes in EstimatesDuring the twelve months ended December 31, 2020, the Company recognized net forward loss charges of $370.3 primarily driven by production rate changes on B787 and A350 from 10 aircraft per month to 5 aircraft per month and 9 aircraft per month to 4 aircraft per month, respectively. Unfavorable cumulative catch up adjustments of $30.4 were primarily driven by rate reduction across all overtime programs due to the COVID-19 pandemic. | ||
Cumulative catch-up adjustment [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | $ 27.7 | $ 5 | $ 30.4 |
Forward Loss [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | 250.3 | 241.5 | 370.3 |
Commercial [Member] | Cumulative catch-up adjustment [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | 30.1 | 5.7 | 28.9 |
Commercial [Member] | Forward Loss [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | 243.9 | 227.3 | 366.8 |
Defense & Space [Member] | Cumulative catch-up adjustment [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | (2.4) | (0.7) | 1.5 |
Defense & Space [Member] | Forward Loss [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | 6.4 | 14.2 | 3.5 |
Aftermarket [Member] | Cumulative catch-up adjustment [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | 0 | 0 | 0 |
Aftermarket [Member] | Forward Loss [Member] | |||
Change In Estimate [Line Items] | |||
Change in Accounting Estimate - Contract Accounting | $ 0 | $ 0 | $ 0 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 2,899.8 | ||
Accounts Receivable, Net | |||
Trade receivables | 477.9 | $ 412 | |
Other | 19.7 | 58.1 | |
Less: allowance for credit losses | (8.1) | (8.5) | |
Accounts receivable, net | 489.5 | 461.6 | |
Gain (Loss) on Sale of Accounts Receivable | (23.4) | (6.7) | $ (8.9) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nontrade Receivables, Current | 19.7 | 58.1 | |
AMJPP government grant award | 75.5 | ||
AMJPP | |||
Accounts Receivable, Net | |||
Other | 0 | 37.7 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Nontrade Receivables, Current | $ 0 | $ 37.7 |
Contract with customer, asset_2
Contract with customer, asset and liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Asset, before Allowance for Credit Loss | $ 502.2 | $ 443.2 | $ 372.8 |
change in contract asset | 59 | 70.4 | |
Contract with Customer, Liability | (356.4) | (387) | (469.6) |
change in contract liability | 30.6 | 82.6 | |
Contract with Customer, Liability, Revenue Recognized | 72.8 | 192.4 | |
Contracts with Customers, Net Contract Asset (Liability) | 145.8 | 56.2 | $ (96.8) |
change in net contract asset | $ 89.6 | $ 153 |
Revenue Disaggregation and Ou_3
Revenue Disaggregation and Outstanding Performance Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | $ 5,029.6 | $ 3,953 | $ 3,404.8 |
Expected to be satisfied in next fiscal year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 4,216.9 | ||
Expected to be satisfied in fiscal year +2 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 4,467.4 | ||
Expected to be satisfied in fiscal year +3 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 975.3 | ||
Expected to be satisfied in fiscal year +4 and thereafter | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 247.1 | ||
Transferred over Time [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 3,684.8 | 3,040.3 | |
Transferred at Point in Time [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 1,344.8 | 912.7 | |
Location United States [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 3,814.5 | 2,822.2 | 2,637.6 |
Location United Kingdom [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 632.8 | 580.4 | 433.5 |
Other Countries [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 582.3 | 550.4 | 333.7 |
Disaggregation of revenue, total international locations [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 1,215.1 | 1,130.8 | $ 767.2 |
Boeing - all programs [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 3,008.9 | 2,206 | |
Airbus [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | 1,098.2 | 945.6 | |
Other Customer [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenues | $ 922.5 | $ 801.4 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Inventories [Abstract] | ||
Raw materials | $ 332.7 | $ 301.4 |
Work-in-process(1) | 1,044.9 | 999.1 |
Finished goods | 69.4 | 56.9 |
Product inventory | 1,447 | 1,357.4 |
Capitalized pre-production | 23.7 | 25.2 |
Total inventory, net | 1,470.7 | 1,382.6 |
Inventory [Line Items] | ||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 157.3 | 217.5 |
Abnormal Costs- COVID19 production suspension | $ 9.6 | |
COVID-19 U.S. employee retention credit and U.K. government subsidies | $ 12 |
Inventory (Details 1)
Inventory (Details 1) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory By Platform [Abstract] | ||
Total capitalized pre-production | $ 23.7 | $ 25.2 |
Forward loss provision(4) | (305.9) | (244.6) |
Total inventory, net | $ 1,470.7 | $ 1,382.6 |
Inventory (Details 2)
Inventory (Details 2) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories [Line Items] | ||
Inventory Valuation Reserves | $ 136.8 | $ 97.3 |
Costs Incurred in Anticipation of Contracts | $ 392.2 | $ 381.2 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Cost of Property Repairs and Maintenance | $ 161.9 | $ 158.8 | $ 119.7 |
Capitalized Computer Software, Amortization | 23.4 | 16.7 | 16.1 |
Property, plant and equipment, net | |||
Land | 30.1 | 30.7 | |
Buildings (including improvements) | 1,269.1 | 1,242 | |
Machinery and equipment | 2,365.1 | 2,276.5 | |
Tooling | 1,055.9 | 1,051.1 | |
Capitalized software | 336.1 | 323 | |
Construction-in-progress | 102.2 | 117.1 | |
Property, Plant and Equipment, Gross | 5,158.5 | 5,040.4 | |
Less: accumulated depreciation | (2,952.6) | (2,654.9) | |
Property, plant and equipment, net | $ 2,205.9 | $ 2,385.5 | $ 2,503.8 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment Textuals [Abstract] | |||
Capitalized Interest Related To Construction-In-Progress | $ 3.8 | $ 6.1 | $ 5 |
Repair And Maintenance Costs | 161.9 | 158.8 | 119.7 |
Depreciation Expense Related To Capitalized Software | $ 23.4 | $ 16.7 | $ 16.1 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 13.6 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 13 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 13.1 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 11.3 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 8.8 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 161.2 | ||
Lessee, Operating Lease, Liability, Payments, Due | 221 | ||
Lessee Imputed Interest Due- Operating | (127.3) | ||
Operating Lease, Liability | 93.7 | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | 47.7 | ||
Finance Lease, Liability, Payments, Due Year Two | 39.9 | ||
Finance Lease, Liability, Payments, Due Year Three | 25.8 | ||
Finance Lease, Liability, Payments, Due Year Four | 18.7 | ||
Finance Lease, Liability, Payments, Due Year Five | 7.5 | ||
Finance Lease, Liability, Payments, Due after Year Five | 26.2 | ||
Finance Lease, Liability, Payment, Due | 165.8 | ||
Lessee Imputed Interest Due- Finance | (21.3) | ||
finance lease, Right-of-Use Asset, gross | 295.4 | $ 266.1 | |
Operating Lease, Payments | 13.1 | 10.9 | |
Finance Lease, Interest Payment on Liability | 7.1 | 7 | |
Lease, Cost | 54.3 | 47.3 | $ 36.8 |
Operating Lease, Cost | 13.6 | 11.5 | 9 |
Finance Lease, Right-of-Use Asset, Amortization | 33.6 | 28.8 | 21.5 |
Finance Lease, Interest Expense | 7.1 | 7 | $ 6.3 |
Finance Lease, Principal Payments | 44.4 | 40.9 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 11.2 | 20.8 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization Amount | (103.4) | (73.1) | |
Finance Lease, Right-of-Use Asset | $ 192 | $ 193 | |
Operating Lease, Weighted Average Remaining Lease Term | 31 years 8 months 12 days | 36 years 3 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 5 years 3 months 18 days | 4 years 10 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.80% | 5.60% | |
Finance Lease, Weighted Average Discount Rate, Percent | 5% | 4.50% | |
Finance Lease, Liability | $ 144.5 | ||
Lessee, Operating Lease, Lease Not Yet Commenced, Liability | 0.1 | ||
Lessee, Finance Lease, Lease Not Yet Commenced, Commitment | $ 54.9 | ||
Lessee, Finance Lease, Lease Not yet Commenced, Description | for manufacturing equipment and facilities which are in various phases of construction or customization for the Company's ultimate use, with lease terms between 3 and 7 years. The Company's involvement in the construction and design process for these assets is generally limited to project management. |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||||
Beginning Balance | $ 623.7 | |||
Ending Balance | 630.5 | $ 623.7 | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 245.5 | 232 | ||
Intangible Assets, Net (Excluding Goodwill) | 211.4 | 212.3 | ||
Amortization of Intangible Assets | 14.4 | 14 | ||
Other assets | ||||
Prepaid Expense, Current | 27.5 | 20.7 | ||
Income Taxes Receivable, Current | 3.9 | 14 | ||
Other Assets, Miscellaneous, Current | 6.9 | 5 | ||
Other Assets, Current | 38.3 | 39.7 | ||
Deferred financing costs | 0.9 | 0.9 | ||
Less: Accumulated amortization-deferred financing costs | (0.8) | (0.6) | ||
Deferred financing costs, net | 0.1 | 0.3 | ||
Equity in net assets of affiliates | 1.1 | 0.8 | ||
Equity in net assets of affiliates | 6.4 | 9.2 | ||
Restricted Cash and Investments, Noncurrent | 19.6 | 19.5 | $ 19.5 | $ 16.4 |
Rotables | 39 | 38.3 | ||
Other | 25.6 | 23.5 | ||
Goodwill | 630.5 | 623.7 | ||
Total | 91.8 | 91.6 | ||
Favorable Leasehold [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 2.8 | 2.8 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (2.1) | (1.9) | ||
Developed Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 103.1 | 92 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (15) | (8.8) | ||
Customer Contracts | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible Assets, Gross (Excluding Goodwill) | 139.6 | 137.2 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (17) | $ (9) |
Other Assets (Details Textuals)
Other Assets (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization Expense Of Intangibles | $ 14.4 | $ 14 |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | 7.1 | |
Intangible Assets, Gross (Excluding Goodwill) | 245.5 | 232 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 103.1 | 92 |
Customer Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 139.6 | $ 137.2 |
T.E.A.M., Inc. Acquisition | Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 11.1 | |
T.E.A.M., Inc. Acquisition | Customer Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 2.4 | |
T.E.A.M., Inc. Acquisition | Defense & Space [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Acquired During Period | $ 7.1 |
Other Assets (Details 1)
Other Assets (Details 1) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2014 | $ 15.3 | |
2015 | 15.2 | |
2016 | 15.2 | |
2017 | 15.2 | |
2018 | 15.2 | |
Goodwill [Line Items] | ||
Goodwill | 630.5 | $ 623.7 |
Goodwill, Acquired During Period | 7.1 | |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | (0.3) | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 245.5 | 232 |
Intangible Assets, Net (Excluding Goodwill) | 211.4 | 212.3 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 15.3 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 15.2 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 15.2 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 14 years 3 months 18 days | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | $ 15.2 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 15.2 | |
Commercial [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 296.5 | 296.8 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | 228.8 |
Goodwill, Foreign Currency Translation Gain (Loss) | (0.3) | |
Defense & Space [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 12.6 | 5.5 |
Goodwill, Other Increase (Decrease) | 0 | |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Defense & Space [Member] | T.E.A.M., Inc. Acquisition | ||
Goodwill [Line Items] | ||
Goodwill, Acquired During Period | 7.1 | |
Aftermarket [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 321.4 | 321.4 |
Goodwill, Acquired During Period | 0 | |
Goodwill, Other Increase (Decrease) | 0 | 298.2 |
Goodwill, Foreign Currency Translation Gain (Loss) | 0 | |
Favorable Leasehold [Member] | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2014 | 0.1 | |
2015 | 0.1 | |
2016 | 0.1 | |
2017 | 0.1 | |
2018 | 0.1 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 2.8 | 2.8 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2.1) | (1.9) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 0.1 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 0.1 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 0.1 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 6 years 6 months | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | $ 0.1 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 0.1 | |
Developed Technology | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2014 | 7 | |
2015 | 6.9 | |
2016 | 6.9 | |
2017 | 6.9 | |
2018 | 6.9 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 103.1 | 92 |
Finite-Lived Intangible Assets, Accumulated Amortization | (15) | (8.8) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 7 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 6.9 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 6.9 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 12 years 10 months 24 days | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | $ 6.9 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 6.9 | |
Developed Technology | T.E.A.M., Inc. Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 11.1 | |
Customer Contracts | ||
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ||
2014 | 8.2 | |
2015 | 8.2 | |
2016 | 8.2 | |
2017 | 8.2 | |
2018 | 8.2 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 139.6 | 137.2 |
Finite-Lived Intangible Assets, Accumulated Amortization | (17) | $ (9) |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 8.2 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 8.2 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | $ 8.2 | |
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years 4 months 24 days | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | $ 8.2 | |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 8.2 | |
Customer Contracts | T.E.A.M., Inc. Acquisition | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 2.4 |
Advance Payments and Deferred_2
Advance Payments and Deferred Revenue/Credits (Details) $ / ship_set in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) $ / ship_set | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Deferred Revenue Arrangement [Line Items] | ||||
Increase (Decrease) in Customer Advances | $ (133.2) | $ 2.7 | $ (21) | |
Advance payments and deferred revenue/credits summarized | ||||
Amortization Of Advances Per Ship Set (dollars per ship set) | $ / ship_set | 450 | |||
Customer advances- 787 program | $ 205.4 | |||
customer advances- 737 program 2019 MOA | 0 | $ 123 | ||
Customer advances- Other program | 18.9 | |||
Annual Repayment of Advances in case of termination of program | $ 27 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | $ 3,665.3 | $ 3,570.9 |
Debt Instrument, Fair Value Disclosure | 3,535.1 | 3,669.4 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 3,665.3 | 3,570.9 |
Long-term Debt, Fair Value | 3,535.1 | 3,669.4 |
Senior Unsecured Notes Due 2028 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 695.9 | 695.2 |
Debt Instrument, Fair Value Disclosure | 562.3 | 697.4 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 695.9 | 695.2 |
Long-term Debt, Fair Value | 562.3 | 697.4 |
Senior Secured Notes Due 2026 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 298.8 | 298.4 |
Debt Instrument, Fair Value Disclosure | 272.8 | 307.5 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 298.8 | 298.4 |
Long-term Debt, Fair Value | 272.8 | 307.5 |
Senior Unsecured Notes Due 2023 [Member] [Domain] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 0 | 299.3 |
Debt Instrument, Fair Value Disclosure | 0 | 303.6 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 0 | 299.3 |
Long-term Debt, Fair Value | 0 | 303.6 |
Secured Debt Term B [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 571.7 | 595.2 |
Debt Instrument, Fair Value Disclosure | 564.5 | 595.2 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 571.7 | 595.2 |
Long-term Debt, Fair Value | 564.5 | 595.2 |
Senior Secured Notes Due 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 20.7 | 495.3 |
Debt Instrument, Fair Value Disclosure | 20.8 | 513.3 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 20.7 | 495.3 |
Long-term Debt, Fair Value | 20.8 | 513.3 |
Senior Secured Second Lien Notes Due 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 1,191 | 1,187.5 |
Debt Instrument, Fair Value Disclosure | 1,179 | 1,252.4 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 1,191 | 1,187.5 |
Long-term Debt, Fair Value | 1,179 | 1,252.4 |
Senior secured first lien notes due 2029 | ||
Fair Value Assets And Liabilities Measured On Recurring Basis Financial Statement Captions [Line Items] | ||
Long-term Debt | 887.2 | 0 |
Debt Instrument, Fair Value Disclosure | 935.7 | 0 |
Carrying amount and estimated fair value of long term debt | ||
Long-term Debt, Carrying Amount | 887.2 | 0 |
Long-term Debt, Fair Value | $ 935.7 | $ 0 |
Derivative and Hedging Activi_2
Derivative and Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Rate Swaps | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (2.4) | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (17.1) | $ (1) | $ (10.5) |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 0 | 1.2 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | ||
Derivative, Credit Risk Related Contingent Features, Existence and Nature | Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. | ||
Interest Rate Swap [Member] | |||
Interest Rate Swaps | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 0 | 14.3 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0 | 0.4 | 3.6 |
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 0 | 0.7 | 10.4 |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 157.1 | 167.7 | |
Interest Rate Swaps | |||
Objectives for Using Cash Flow Hedging Instruments | The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British pound sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through September 2023. | ||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 0 | 0 | |
Foreign Currency Cash Flow Hedge Liability at Fair Value | (2.4) | (2) | |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (19.1) | (2) | 0 |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ (0.2) | $ 0 | |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | $ (18.7) |
Derivative and Hedging Activi_3
Derivative and Hedging Activities (Details 2) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Foreign currency hedge contracts [Member] | |
Effect of derivative instrument on statement of other comprehensive income | |
Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ 18.7 |
Derivative and Hedging Activi_4
Derivative and Hedging Activities (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ (17.1) | $ (1) | $ (10.5) |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (2.4) | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain | 1.6 | ||
Interest Rate Swap [Member] | |||
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 0 | $ 14.3 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Capital Lease Obligations, Current | $ 42.2 | $ 42.2 | ||
Capital Lease Obligations, Noncurrent | 102.3 | 122.9 | ||
Other Long-term Debt, Current | 5.8 | 1.4 | ||
Other Long-term Debt, Noncurrent | 53 | 54.8 | ||
Long-term Debt and Lease Obligation, Current | 53.7 | 49.5 | ||
Long-term Debt and Lease Obligation | 3,814.9 | 3,742.7 | ||
Long-Term Debt, Maturity, Year One | 5.9 | |||
Long-Term Debt, Maturity, Year Two | 5.9 | |||
Long-Term Debt, Maturity, Year Three | 1,226.8 | |||
Long-Term Debt, Maturity, Year Four | 305.9 | |||
Long-Term Debt, Maturity, Year Five | 568.8 | |||
Debt, Long-term and Short-term, Combined Amount | 3,868.6 | $ 3,034.3 | ||
Gains (Losses) on Extinguishment of Debt | 7.2 | 0 | $ 0 | |
Cash flows from operating activities | ||||
Debt Instrument [Line Items] | ||||
Gains (Losses) on Extinguishment of Debt | 4.6 | |||
Senior Unsecured Notes Due 2021 [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | 0 | |||
Debt, Long-term and Short-term, Combined Amount | 0 | |||
Secured Debt Term B [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | 566 | 589.3 | ||
Long-term Debt | 5.7 | 5.9 | ||
Debt, Long-term and Short-term, Combined Amount | $ 571.7 | |||
Senior Unsecured Notes Due 2023 [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |||
Long-term Debt | $ 0 | 0 | ||
Unsecured Long-term Debt, Noncurrent | 0 | 299.3 | ||
Long-term Debt, Gross | 0 | |||
Debt, Long-term and Short-term, Combined Amount | 0 | |||
Senior Unsecured Notes Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 700 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.60% | |||
Long-term Debt | $ 0 | 0 | ||
Unsecured Long-term Debt, Noncurrent | 695.9 | 695.2 | ||
Debt, Long-term and Short-term, Combined Amount | 695.9 | |||
Senior Secured Notes Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 300 | |||
Secured Long-term Debt, Noncurrent | $ 298.8 | 298.4 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.85% | |||
Long-term Debt | $ 0 | 0 | ||
Debt, Long-term and Short-term, Combined Amount | 298.8 | |||
Senior Secured Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | $ 20.7 | 495.3 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |||
Long-term Debt | $ 0 | 0 | ||
Debt, Long-term and Short-term, Combined Amount | 20.8 | |||
Senior Secured Second Lien Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 1,200 | |||
Secured Long-term Debt, Noncurrent | $ 1,191 | 1,187.5 | ||
Debt Instrument, Interest Rate, Stated Percentage | 750% | |||
Long-term Debt | $ 0 | 0 | ||
Debt, Long-term and Short-term, Combined Amount | 1,191 | |||
Senior secured first lien notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 900 | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.375% | |||
Long-term Debt | $ 0 | 0 | ||
Unsecured Long-term Debt, Noncurrent | 887.2 | $ 0 | ||
Debt, Long-term and Short-term, Combined Amount | $ 887.2 |
Debt (Details Textual)
Debt (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Gains (Losses) on Extinguishment of Debt | $ 7.2 | $ 0 | $ 0 | |
Debt, Long-term and Short-term, Combined Amount | 3,868.6 | $ 3,034.3 | ||
Payments of Debt Issuance Costs | 2.6 | |||
Cash flows from operating activities | ||||
Debt Instrument [Line Items] | ||||
Gains (Losses) on Extinguishment of Debt | 4.6 | |||
Senior Unsecured Notes Due 2021 [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | 0 | |||
Debt, Long-term and Short-term, Combined Amount | $ 0 | |||
Senior Unsecured Notes Due 2023 [Member] [Domain] | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 3.95% | |||
Long-term Debt, Gross | $ 0 | |||
Debt, Long-term and Short-term, Combined Amount | 0 | |||
Senior Unsecured Notes Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 700 | |||
Fixed interest rate | 4.60% | |||
Debt, Long-term and Short-term, Combined Amount | $ 695.9 | |||
Senior Secured Notes Due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | 298.8 | 298.4 | ||
Debt Instrument, Face Amount | $ 300 | |||
Fixed interest rate | 3.85% | |||
Debt, Long-term and Short-term, Combined Amount | $ 298.8 | |||
Senior Secured Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | $ 20.7 | 495.3 | ||
Fixed interest rate | 5.50% | |||
Debt, Long-term and Short-term, Combined Amount | $ 20.8 | |||
Senior secured first lien notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 900 | |||
Fixed interest rate | 9.375% | |||
Debt, Long-term and Short-term, Combined Amount | $ 887.2 | |||
Senior Secured Second Lien Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Secured Long-term Debt, Noncurrent | 1,191 | $ 1,187.5 | ||
Debt Instrument, Face Amount | $ 1,200 | |||
Fixed interest rate | 750% | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,191 |
Pension and Other Post Retireme
Pension and Other Post Retirement Benefits (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) uSDollarPerHour | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
IAM Level of Contribution per hour until June 2019 | uSDollarPerHour | 1.75 | ||
Amounts recognized in balance sheet | |||
Noncurrent assets | $ 196,900,000 | $ 532,500,000 | |
Noncurrent liabilities | (25,200,000) | (74,800,000) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Multiemployer Plan, Employer Contribution, Cost | $ 27,200,000 | $ 23,000,000 | $ 30,100,000 |
Multiemployer Plan, Pension, Significant, Surcharge [Fixed List] | Yes | ||
Multiemployer Plan, Pension, Significant, Certified Zone Status [Fixed List] | Red | Red | |
Pension and Other Post Retirement Benefit Plans Annual Expense | Annual Expense The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Other Periods Ended Periods Ended U.S. Plans 2022 2021 2020 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ — $ — $ — $ 0.7 $ 0.8 $ 0.8 Interest cost 20.8 18.7 24.4 0.6 0.3 1.0 Expected return on plan assets (44.0) (57.7) (64.2) — — — Amortization of net (gain) loss — — 0.2 (1.0) (1.3) (1.7) Amortization of prior service costs (1) 73.5 — — (0.8) (0.8) (0.9) Settlement loss recognized (2) 33.3 11.0 9.8 — — — Curtailment loss/(gain) (3) — — 33.9 — — (0.2) Special termination benefits (3) — — 31.0 — — 12.0 Net periodic benefit cost (income) 83.6 (28.0) 35.1 (0.5) (1.0) 11.0 Other changes recognized in OCI: Total recognized in other OCI (income) loss $ 124.4 $ (58.2) $ (39.4) $ (0.4) $ 3.2 $ 1.0 Total recognized in other net periodic benefit and OCI loss (income) $ 208.0 $ (86.2) $ (4.3) $ (0.9) $ 2.2 $ 12.0 Assumptions used to determine net periodic benefit costs: Discount rate 2.72 % 2.31 % 3.19 % 1.96 % 1.26 % 2.55 % Expected return on plan assets 4.00 % 4.00 % 4.50 % N/A N/A N/A Salary increases N/A N/A N/A N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 7.00 % 5.56 % 5.90 % Ultimate trend rate N/A N/A N/A 4.50 % 4.50 % 4.50 % Year that ultimate trend rate is reached N/A N/A N/A 2047 2038 2038 (1) Due to a plan amendment related to a benefit enhancement, prior service cost amortization of $73.5 was recorded to Other income (expense). (2) Due to settlement accounting during the fiscal years ending 2022, 2021, and 2020, the Company recognized charges of $33.3, $11.0 and $9.8, respectively, that was recorded to Other income (expense). (2) Special termination benefits and curtailment loss as of December 31, 2020 is a combination of pension value plan, post-retirement medical plan, offset by a reduction in the Company’s net benefit obligation. The increase is due to voluntary retirement programs in 2020. The Company records the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income. The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Periods Ended U.K. Prestwick Plan 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ 1.7 $ 1.2 $ 0.9 Interest cost 1.1 1.0 1.2 Expected return on plan assets (1.7) (1.4) (1.7) Settlement gain (loss) 0.6 (0.2) (0.4) Net periodic benefit cost (income) $ 1.7 $ 0.6 $ — Other changes recognized in OCI: Total cost (income) recognized in OCI $ 13.9 $ 1.2 $ (0.9) Total recognized in net periodic benefit cost and OCI $ 15.6 $ 1.8 $ (0.9) Assumptions used to determine net periodic benefit costs: Discount rate 1.75 % 1.45 % 2.10 % Expected return on plan assets 2.00 % 1.40 % 2.00 % Salary increases 3.50 % 3.10 % 3.15 % The components of the pension benefit plan expense for the Belfast plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2022, 2021, and 2020 are as follows: Pension Benefits Other Post-Retirement Benefits Periods Ended Periods Ended U.K. Belfast Plans 2022 2021 2020 2022 2021 2020 Components of net periodic benefit cost (income): Service cost $ 1.3 $ 39.3 $ 6.3 $ — $ 0.1 $ — Interest cost 39.9 36.3 5.9 — — — Curtailment (gain) recognized (1) — (61.0) — — — — Expected return on plan assets (92.0) (95.2) (14.0) — — — Net periodic benefit (income) cost $ (50.8) $ (80.6) $ (1.8) $ — $ 0.1 $ — Other changes recognized in OCI: Total (income) recognized in OCI $ 24.7 $ (98.1) $ 96.6 $ (0.4) $ — $ — Total recognized in net periodic benefit cost and OCI $ (26.1) $ (178.7) $ 94.8 $ (0.4) $ 0.1 $ — Assumptions used to determine net periodic benefit costs: Discount rate 1.80 % 1.45 % 1.75 % 1.80 % 1.45 % 1.75 % Expected return on plan assets 4.10 % 4.20 % 4.20 % N/A N/A N/A Salary increases N/A 2.90 % 2.75 % N/A N/A N/A Medical Assumptions: Trend assumed for the year N/A N/A N/A 5.75 % 5.75 % 5.50 % Ultimate trend rate N/A N/A N/A 5.75 % 5.75 % 5.50 % Year that ultimate trend rate is reached N/A N/A N/A N/A N/A N/A (1) In the fourth quarter of 2021, the Shorts Pension Defined Benefit plan was closed out and a new defined contribution plan was opened for affected employees. This closure resulted in a curtailment gain of $6 1.0. Assumptions The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. During 2015, the mortality assumption for the U.S. plans was updated to Mercer’s MRP-2007 generational mortality tables for non-annuitants and Mercer’s MILES-2010 generational tables for the Auto, Industrial Goods and Transportation group for annuitants both reflecting Mercer’s MMP-2007 improvement scale. In 2018, the Company incorporated the MMP-2018 improvement scale. MMP-2018 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2018 scale, but with different parameters and adjustments for actual experience since 2006. In 2019, the Company incorporated the MMP-2019 improvement scale which was utilized in 2020. In 2021, the Company incorporated the MMP-2021 improvement scale. MMP-2021 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2019 scale, but with different parameters and adjustments for actual experience since 2006. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership. The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company’s investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trend s. These assumptions were reviewed in 2022 based on a review of updated national health trends. | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4% | ||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | The Company’s objective is to manage the assets as appropriate for the near-term termination and closing of the PVP A. The assets are invested solely in cash and diversified taxable fixed income bonds. | ||
Excess pension plan assets reversion | $ 34,000,000 | ||
U.K. [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Contribution Plan, Cost | 3,900,000 | $ 3,900,000 | 4,100,000 |
U.K. - Belfast [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Contribution Plan, Cost | $ 1,200,000 | 30,000 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 8% | ||
U.K. - Belfast New 2021 | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount, first 4 years | 5% | ||
Defined Contribution Plan, Employer additional contribution percent | 4% | ||
Domestic Plan [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Contribution Plan, Cost | $ 31,800,000 | 30,400,000 | 32,500,000 |
UNITED STATES | |||
Change in fair value of plan assets: | |||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ (270,000,000) | $ (226,700,000) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% | |
UNITED STATES | Defined Benefit Plan, Debt Security | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 67% | |
UNITED STATES | Defined Benefit Plan, Real Estate | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 2% | |
UNITED STATES | Defined Benefit Plan, Equity Securities, US [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 71% | 22% | |
UNITED STATES | Defined Benefit Plan, Equity Securities, US [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 3% | |
UNITED STATES | Defined Benefit Plan, Cash and Cash Equivalents | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 29% | 6% | |
Belfast | |||
Change in fair value of plan assets: | |||
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | $ 0 | $ 900,000 | |
Belfast | Defined Benefit Plan, Equity Securities | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3,100% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 29% | 32% | |
Belfast | Defined Benefit Plan, Debt Security | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 3,500% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 34% | 34% | |
Belfast | Other Debt Obligations | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1,900% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 21% | 18% | |
Belfast | Defined Benefit Plan, Real Assets | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1,300% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 13% | 13% | |
Belfast | Money Market Fund [Member] | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 200% | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3% | 3% | |
UNITED KINGDOM | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 0 | $ 0 | |
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% | |
UNITED KINGDOM | Defined Benefit Plan, Equity Securities | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 15% | 15% | |
UNITED KINGDOM | Defined Benefit Plan, Debt Security | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 80% | 80% | |
UNITED KINGDOM | Defined Benefit Plan, Real Estate | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 5% | 5% | |
UNITED KINGDOM | Minimum [Member] | Defined Benefit Plan, Equity Securities | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 15% | ||
UNITED KINGDOM | Minimum [Member] | Defined Benefit Plan, Debt Security | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 82% | ||
UNITED KINGDOM | Minimum [Member] | Defined Benefit Plan, Real Estate | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1% | ||
UNITED KINGDOM | Maximum [Member] | Defined Benefit Plan, Equity Securities | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 17% | ||
UNITED KINGDOM | Maximum [Member] | Defined Benefit Plan, Debt Security | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 84% | ||
UNITED KINGDOM | Maximum [Member] | Defined Benefit Plan, Real Estate | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 1% | ||
Other Benefits [Member] | UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | 0 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |
Defined Benefit Plan, Amortization of Gain (Loss) | (1,000,000) | (1,300,000) | (1,700,000) |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (900,000) | $ (2,200,000) | $ (12,000,000) |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.96% | 1.26% | 2.55% |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 42,500,000 | $ 49,500,000 | |
Service cost | 700,000 | 800,000 | $ 800,000 |
Interest cost | 600,000 | 300,000 | 1,000,000 |
Actuarial gains | 2,300,000 | (1,000,000) | |
Special termination benefits(3) | 0 | 0 | 12,000,000 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 9,500,000 | 10,400,000 | |
Projected benefit obligation at the end of the period | 33,100,000 | 42,500,000 | 49,500,000 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 1,100,000 | $ 1,300,000 | |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Discount rate | 5.04% | 1.96% | |
Medical Assumptions: | |||
Trend assumed for the year | 7.25% | 7% | |
Ultimate trend rate | 4% | 4% | |
Year that ultimate trend rate is reached | 2048 | 2047 | |
Change in fair value of plan assets: | |||
Beginning balance | $ 0 | $ 0 | |
Company contributions | (8,400,000) | (9,100,000) | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1,100,000 | 1,300,000 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 9,500,000 | 10,400,000 | |
Ending balance | 0 | 0 | 0 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | (33,100,000) | (42,500,000) | |
Net amounts recognized | (33,100,000) | (42,500,000) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | (9,200,000) | (9,700,000) | |
Noncurrent liabilities | (23,900,000) | (32,800,000) | |
Net amounts recognized | (33,100,000) | (42,500,000) | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | 16,600,000 | 16,200,000 | |
Accumulated other comprehensive income (AOCI) | 16,600,000 | 16,200,000 | |
Cumulative employer contributions in excess of net periodic benefit cost | (49,700,000) | (58,700,000) | |
Net amount recognized in the balance sheet | (33,100,000) | (42,500,000) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation | 33,100,000 | 42,500,000 | |
Accumulated benefit obligation | 0 | 0 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (500,000) | (1,000,000) | 11,000,000 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (400,000) | 3,200,000 | 1,000,000 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | (200,000) |
Other Benefits [Member] | Belfast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | (100,000) | 0 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | 800,000 | 800,000 | |
Service cost | 0 | 100,000 | |
Interest cost | 0 | 0 | 0 |
Actuarial gains | 400,000 | 0 | |
Special termination benefits(3) | 0 | 0 | |
Exchange rate changes | (100,000) | 0 | |
Projected benefit obligation at the end of the period | 300,000 | 800,000 | 800,000 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Expenses paid | $ 0 | $ 0 | |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Discount rate | 4.96% | 1.80% | |
Medical Assumptions: | |||
Trend assumed for the year | 5.95% | 5.75% | |
Ultimate trend rate | 5.95% | 5.75% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 0 | $ 0 | |
Company contributions | 0 | (100,000) | |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | |
Exchange rate changes | 0 | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 0 | 100,000 | |
Defined Benefit Plan, Plan Assets, Administration Expense | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 0 | |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | (300,000) | (800,000) | |
Net amounts recognized | (300,000) | (800,000) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 0 | 0 | |
Current liabilities | 0 | (100,000) | |
Noncurrent liabilities | (300,000) | (700,000) | |
Net amounts recognized | (300,000) | (800,000) | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | 400,000 | 0 | 0 |
Accumulated other comprehensive income (AOCI) | 400,000 | 0 | 0 |
Cumulative employer contributions in excess of net periodic benefit cost | (700,000) | (800,000) | |
Net amount recognized in the balance sheet | (300,000) | (800,000) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation | 300,000 | 800,000 | |
Accumulated benefit obligation | 0 | 0 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (400,000) | 0 | |
Pension Plan [Member] | UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (33,300,000) | (11,000,000) | (9,800,000) |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (218,900,000) | 66,300,000 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | 200,000 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 73,500,000 | 0 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ 208,000,000 | $ 86,200,000 | $ 4,300,000 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.72% | 2.31% | 3.19% |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 814,100,000 | $ 1,099,100,000 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 20,800,000 | 18,700,000 | 24,400,000 |
Actuarial gains | 105,200,000 | 38,700,000 | |
Special termination benefits(3) | 0 | 0 | 31,000,000 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | (270,000,000) | (226,700,000) | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 39,900,000 | 38,300,000 | |
Projected benefit obligation at the end of the period | 493,300,000 | 814,100,000 | 1,099,100,000 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | $ 0 | $ 0 | |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Discount rate | 5.22% | 2.72% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 1,318,600,000 | $ 1,526,300,000 | |
Company contributions | (119,500,000) | (9,000,000) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 39,900,000 | 38,300,000 | |
Ending balance | 670,300,000 | 1,318,600,000 | 1,526,300,000 |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | 177,000,000 | 504,500,000 | |
Net amounts recognized | 177,000,000 | 504,500,000 | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 178,000,000 | 505,800,000 | |
Current liabilities | (100,000) | (100,000) | |
Noncurrent liabilities | (900,000) | (1,200,000) | |
Net amounts recognized | 177,000,000 | 504,500,000 | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | (72,700,000) | 51,700,000 | |
Accumulated other comprehensive income (AOCI) | (72,700,000) | 51,700,000 | |
Cumulative employer contributions in excess of net periodic benefit cost | 249,700,000 | 452,800,000 | |
Net amount recognized in the balance sheet | 177,000,000 | 504,500,000 | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation | 1,000,000 | 1,300,000 | |
Accumulated benefit obligation | 1,000,000 | 1,300,000 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (44,000,000) | (57,700,000) | (64,200,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 83,600,000 | $ (28,000,000) | $ 35,100,000 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4% | 4% | 4.50% |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | $ 124,400,000 | $ (58,200,000) | $ (39,400,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 33,900,000 |
Pension Plan [Member] | Belfast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (785,000,000) | 139,700,000 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (26,100,000) | $ 178,700,000 | $ (94,800,000) |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.80% | 1.45% | 1.75% |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 2,528,000,000 | $ 2,661,400,000 | |
Service cost | 1,300,000 | 39,300,000 | $ 6,300,000 |
Interest cost | 39,900,000 | 36,300,000 | 5,900,000 |
Actuarial gains | 854,100,000 | 57,500,000 | |
Special termination benefits(3) | 0 | 61,000,000 | |
Exchange rate changes | (250,800,000) | (22,200,000) | |
Projected benefit obligation at the end of the period | 1,407,600,000 | 2,528,000,000 | $ 2,661,400,000 |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 900,000 | |
Defined Benefit Plan, Benefit Obligation, Expenses paid | $ (1,300,000) | $ (1,300,000) | |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Discount rate | 4.96% | 1.80% | |
Salary increases | 2.90% | 2.75% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 2,488,100,000 | $ 2,262,700,000 | |
Company contributions | (19,000,000) | (180,900,000) | |
Exchange rate changes | 247,600,000 | 26,900,000 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 55,400,000 | 67,900,000 | |
Defined Benefit Plan, Plan Assets, Administration Expense | (1,300,000) | (1,300,000) | |
Ending balance | 1,417,800,000 | 2,488,100,000 | $ 2,262,700,000 |
Defined Benefit Plan, Plan Assets, Business Combination | 0 | 0 | |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | 10,200,000 | (39,900,000) | |
Net amounts recognized | 10,200,000 | (39,900,000) | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 10,200,000 | 600,000 | |
Current liabilities | 0 | 0 | |
Noncurrent liabilities | 0 | (40,500,000) | |
Net amounts recognized | 10,200,000 | (39,900,000) | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | (3,100,000) | 21,600,000 | 96,600,000 |
Accumulated other comprehensive income (AOCI) | (3,100,000) | 21,600,000 | 96,600,000 |
Cumulative employer contributions in excess of net periodic benefit cost | 13,300,000 | (61,500,000) | |
Net amount recognized in the balance sheet | 10,200,000 | (39,900,000) | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Projected benefit obligation | 15,200,000 | 2,501,900,000 | |
Accumulated benefit obligation | 15,200,000 | 2,501,900,000 | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Fair value of assets | $ 15,100,000 | $ 2,461,200,000 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (14,000,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ (1,800,000) | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.10% | 4.20% | 4.20% |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | $ 24,700,000 | $ (98,100,000) | |
Bombardier Acquisition Pension Contributions | 154,700,000 | ||
Bombardier Acquisition One-time Special Pension Contribution | 137,600,000 | ||
Pension Plan [Member] | UNITED KINGDOM | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (600,000) | 200,000 | $ 400,000 |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (38,700,000) | (900,000) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (2,500,000) | (2,200,000) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ 15,600,000 | $ (1,800,000) | $ 900,000 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.75% | 1.45% | 2.10% |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning balance | $ 71,600,000 | $ 75,900,000 | |
Service cost | 1,700,000 | 1,200,000 | $ 900,000 |
Interest cost | 1,100,000 | 1,000,000 | 1,200,000 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 700,000 | 0 | |
Actuarial gains | 26,700,000 | 1,300,000 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,700,000 | 1,100,000 | |
Expense paid | (1,700,000) | (1,200,000) | |
Exchange rate changes | (7,000,000) | (700,000) | |
Projected benefit obligation at the end of the period | $ 35,500,000 | $ 71,600,000 | 75,900,000 |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Discount rate | 4.90% | 1.75% | |
Salary increases | 3.35% | 3.50% | |
Change in fair value of plan assets: | |||
Beginning balance | $ 98,300,000 | $ 103,100,000 | |
Company contributions | (300,000) | (1,900,000) | |
Expense paid | (1,700,000) | (1,200,000) | |
Exchange rate changes | (9,500,000) | (1,000,000) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 1,700,000 | 1,100,000 | |
Defined Benefit Plan, Plan Assets, Administration Expense | (1,700,000) | (1,200,000) | |
Ending balance | 44,100,000 | 98,300,000 | 103,100,000 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (2,900,000) | (2,500,000) | |
Reconciliation of funded status to net amounts recognized: | |||
Funded status (deficit) | 8,600,000 | 26,700,000 | |
Net amounts recognized | 8,600,000 | 26,700,000 | |
Amounts recognized in balance sheet | |||
Noncurrent assets | 8,600,000 | 26,700,000 | |
Liability, Defined Benefit Plan | 0 | 0 | |
Net amounts recognized | 8,600,000 | 26,700,000 | |
Amounts not yet reflected in net periodic benefit cost and included in AOCI: | |||
Accumulated gain (loss) | (10,000,000) | 4,300,000 | |
Accumulated other comprehensive income (AOCI) | (10,000,000) | 4,300,000 | |
Prepaid pension cost | 18,600,000 | 22,400,000 | |
Net amount recognized in the balance sheet | 8,600,000 | 26,700,000 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 0 | 0 | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Accumulated benefit obligation | 0 | 0 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (1,700,000) | (1,400,000) | (1,700,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1,700,000 | $ 600,000 | $ 0 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 2% | 1.40% | 2% |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | $ 13,900,000 | $ 1,200,000 | $ (900,000) |
PVP A | UNITED STATES | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (34,700,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 34,700,000 | ||
Shorts pension | UNITED STATES | |||
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | (61,000,000) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 61,000,000 | ||
Annual Expense [Member] | Other Benefits [Member] | UNITED STATES | |||
Medical Assumptions: | |||
Trend assumed for the year | 7% | 5.56% | 5.90% |
Ultimate trend rate | 4.50% | 4.50% | 4.50% |
Year that ultimate trend rate is reached | 2047 | 2038 | 2038 |
Annual Expense [Member] | Other Benefits [Member] | Belfast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | $ (400,000) | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.80% | 1.45% | 1.75% |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $ 0 | $ 100,000 | $ 0 |
Interest cost | $ 0 | $ 0 | |
Medical Assumptions: | |||
Trend assumed for the year | 5.75% | 5.75% | 5.50% |
Ultimate trend rate | 5.75% | 5.75% | 5.50% |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | $ 0 | $ 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 0 | 100,000 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 0 |
Annual Expense [Member] | Pension Plan [Member] | Belfast | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | 1,300,000 | 39,300,000 | |
Interest cost | 39,900,000 | 36,300,000 | |
Information for pension plans with benefit obligations in excess of plan assets: | |||
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (92,000,000) | (95,200,000) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (50,800,000) | (80,600,000) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | $ 0 | $ (61,000,000) | $ 0 |
Annual Expense [Member] | Pension Plan [Member] | UNITED KINGDOM | |||
Total recognized in other net periodic benefit and OCI loss (income) | |||
Salary increases | 3.50% | 3.10% | 3.15% |
Pension and Other Post Retire_2
Pension and Other Post Retirement Benefits (Details 1) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) uSDollarPerHour | Dec. 31, 2021 USD ($) uSDollarPerHour | Dec. 31, 2020 USD ($) | |
Multiemployer Plans [Line Items] | |||
IAM Level of Contribution per hour until June 2019 | 1.75 | ||
IAM Level of Contribution per hour Effective July 2019 | 1.95 | ||
EIN/Pensions plan number | 51-60321295 | ||
FIP RP Status | Yes | ||
Year Company Contributions Exceed 5 Percent | 2020, 2022 | ||
Multiple-Employer Plan Accounted for as Multiemployer Plan, Plan Name | IAM National Pension Fund | ||
Multiemployer Plan, Pension, Significant, Certified Zone Status [Fixed List] | Red | Red | |
Multiemployer Plan, Employer Contribution, Cost | $ | $ 27,200,000 | $ 23,000,000 | $ 30,100,000 |
Multiemployer Plan, Pension, Significant, Surcharge [Fixed List] | Yes | ||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | IAM June 24, 2023UAW December 7, 2025 | ||
2019 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.70 | ||
2020 [Member] | |||
Multiemployer Plans [Line Items] | |||
UAW Level of Contribution per hour | 1.75 | ||
Other Benefits [Member] | |||
Multiemployer Plans [Line Items] | |||
Description of Multiemployer Plan | Other Post-Retirement Benefit PlansThe Company also has post-retirement health care coverage for eligible U.S. retirees and qualifying dependents prior to age 65. Eligibility for employer-provided benefits is limited to those employees who were employed at the date of the Boeing Acquisition and retire on or after attainment of age 62 and 10 years of service. Employees who do not satisfy these eligibility requirements can retire with post-retirement medical benefits at age 55 and 10 years of service, but they must pay the full cost of medical benefits provided.On October 30, 2020, as part of the Bombardier Acquisition, the Company acquired a post-retirement medical plan for certain former employees at the Belfast location. Eligibility for this plan is closed and no further participants in the plan are expected. |
Pension and Other Post Retire_3
Pension and Other Post Retirement Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
UNITED STATES | Other Benefits [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 0.7 | $ 0.8 | $ 0.8 |
Interest cost | 0.6 | 0.3 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (0.8) | (0.8) | (0.9) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | (0.2) |
Special termination benefits(3) | 0 | 0 | 12 |
Net periodic benefit cost (income) | (0.5) | (1) | 11 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (0.4) | 3.2 | 1 |
Defined Benefit Plan, Amortization of Gain (Loss) | 1 | 1.3 | 1.7 |
Other changes recognized in OCI: | |||
Total recognized in net periodic benefit cost and OCI | $ 0.9 | $ 2.2 | $ 12 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.96% | 1.26% | 2.55% |
Medical Assumptions: | |||
Trend assumed for the year | 7.25% | 7% | |
Ultimate trend rate | 4% | 4% | |
Year that ultimate trend rate is reached | 2048 | 2047 | |
UNITED STATES | Pension Plan [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 20.8 | 18.7 | 24.4 |
Expected return on plan assets | (44) | (57.7) | (64.2) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 73.5 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 33.3 | 11 | 9.8 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 33.9 |
Special termination benefits(3) | 0 | 0 | 31 |
Net periodic benefit cost (income) | 83.6 | (28) | 35.1 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 124.4 | (58.2) | (39.4) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0 | (0.2) |
Other changes recognized in OCI: | |||
Total recognized in net periodic benefit cost and OCI | $ (208) | $ (86.2) | $ (4.3) |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 2.72% | 2.31% | 3.19% |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Expected return on plan assets | 4% | 4% | 4.50% |
UNITED KINGDOM | Pension Plan [Member] | |||
Components of net periodic benefit cost (income): | |||
Service cost | $ 1.7 | $ 1.2 | $ 0.9 |
Interest cost | 1.1 | 1 | 1.2 |
Expected return on plan assets | (1.7) | (1.4) | (1.7) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0.6 | (0.2) | (0.4) |
Net periodic benefit cost (income) | 1.7 | 0.6 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 13.9 | 1.2 | (0.9) |
Other changes recognized in OCI: | |||
Total recognized in net periodic benefit cost and OCI | $ (15.6) | $ 1.8 | $ (0.9) |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 1.75% | 1.45% | 2.10% |
Total recognized in other net periodic benefit and OCI loss (income) | |||
Expected return on plan assets | 2% | 1.40% | 2% |
Salary increases | 3.35% | 3.50% |
Pension and Other Post Retire_4
Pension and Other Post Retirement Plans (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% | |
UNITED STATES | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 494.6 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 0.4 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (73.5) | $ 0 | $ 0 |
UNITED STATES | Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 9.2 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 7 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 4.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3.7 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 3.4 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 9.6 | ||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | $ 0.8 | $ 0.8 | $ 0.9 |
UNITED STATES | Defined Benefit Plan, Equity Securities, US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 71% | 22% | |
UNITED STATES | Defined Benefit Plan, Equity Securities, US [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 3% | |
UNITED STATES | Defined Benefit Plan, Debt Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 67% | |
UNITED STATES | Defined Benefit Plan, Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 0% | 2% | |
Belfast | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 57.2 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 60.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 64.4 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 69.6 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 73.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 438.7 | ||
Belfast | Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 0.1 | ||
Belfast | Defined Benefit Plan, Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 29% | 32% | |
Belfast | Defined Benefit Plan, Debt Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 34% | 34% | |
Belfast | Defined Benefit Plan, Real Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 13% | 13% | |
Belfast | Other Debt Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 21% | 18% | |
Belfast | Money Market Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 3% | 3% | |
UNITED KINGDOM | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% | |
UNITED KINGDOM | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 3.6 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 3.7 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3.8 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3.9 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 4.1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 22.5 | ||
UNITED KINGDOM | Defined Benefit Plan, Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 15% | 15% | |
UNITED KINGDOM | Defined Benefit Plan, Debt Security | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 80% | 80% | |
UNITED KINGDOM | Defined Benefit Plan, Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 5% | 5% |
Pension and Other Post Retire_5
Pension and Other Post Retirement Plans (Details 4) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year, Description | Required U.S. pension contributions under Employee Retirement Income Security Act (ERISA) regulations are expected to be zero in 2023 and discretionary contributions are not expected in 2023. SERP and post-retirement medical plan contributions in 2023 are expected to be $9.3. Expected contributions to the U.K. Prestwick plan for 2023 are zero. Expected contributions to the U.K. (Belfast) plans for 2023 are $1.8. |
Pension Plan [Member] | UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 494.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 0.4 |
Pension Plan [Member] | UNITED KINGDOM | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 3.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 3.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 3.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3.9 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 4.1 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 22.5 |
Pension Plan [Member] | Belfast | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 57.2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 60.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 64.4 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 69.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 73.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 438.7 |
Other Benefits [Member] | UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 9.2 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 4.8 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 3.7 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 3.4 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 9.6 |
Other Benefits [Member] | Belfast | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 0 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 0.1 |
Pension and Other Post Retire_6
Pension and Other Post Retirement Plans (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Period Increase (Decrease) | $ (0.2) | $ 0 |
UNITED KINGDOM | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Actual Allocation, Percentage | 100% | 100% |
Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | $ 193.6 | $ 80.4 |
Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 1,894.8 | 97.6 |
Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 43.9 | 3,700.1 |
Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 3,878.1 | |
Ending Fair Value | 2,132.3 | 3,878.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 193.6 | 80.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 80.4 | |
Ending Fair Value | 193.6 | 80.4 |
Significant Other Observable Inputs (Level 2) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 1,894.8 | 95.7 |
Significant Other Observable Inputs (Level 2) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 42.4 | 3,700.1 |
Significant Other Observable Inputs (Level 2) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 3,795.8 | |
Ending Fair Value | 1,937.2 | 3,795.8 |
Significant Unobservable Inputs (Level 3) [Member] | Temporary Cash Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Collective Investment Trusts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 0 | 1.9 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 1.9 | 3.4 |
Purchases | 0 | 0 |
Gain (loss) | (0.2) | 0.2 |
Ending Fair Value | 1.5 | 1.9 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | 0 | (1.7) |
Significant Unobservable Inputs (Level 3) [Member] | Commingled Equity Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Amount | 1.5 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Total [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Fair Value | 1.9 | 3.4 |
Purchases | 0 | 0 |
Gain (loss) | (0.2) | 0.2 |
Ending Fair Value | 1.5 | 1.9 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | $ 0 | $ (1.7) |
Pension and Other Post Retire_7
Pension and Other Post Retirement Plans (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 75% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4% | ||
Statement Defined Contribution Plans [Line Items] | |||
Multiemployer Plans, Collective-Bargaining Arrangement, Expiration Date | IAM June 24, 2023UAW December 7, 2025 | ||
Multiple-Employer Plan Accounted for as Multiemployer Plan, Plan Name | IAM National Pension Fund | ||
U.K. [Member] | |||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
Defined Contribution Plan, Cost | $ 3,900 | $ 3,900 | $ 4,100 |
U.K. - Belfast [Member] | |||
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 8% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 8% | ||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
Defined Contribution Plan, Cost | $ 1,200 | $ 30 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||
Total Shares Authorized | 210,000,000 | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par Value | $ 0.01 | $ 0.01 | |
Phantom Stock Value Per Share | $ 3.33 | ||
SERP units | 16,023 | 28,950 | 16,023 |
Stock Repurchased During Period, Value | $ (0.1) | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 925 | ||
Common Stock, Voting Rights | one vote per share | ||
Stock Repurchased and Retired During Period, Shares | 0 | ||
Class A [Member] | |||
Class Of Stock [Line Items] | |||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | |
Common Stock, Par Value | $ 0.01 | $ 0.01 | |
Class B [Member] | |||
Class Of Stock [Line Items] | |||
Common Stock, Shares Authorized | 0 | 0 | |
Common Stock, Par Value | $ 0 | $ 0 |
Stock Compensation (Details)
Stock Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Company recognized total stock compensation expense, net of forfeitures | $ 36.6 | $ 25.8 | $ 24.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning balance | 700,000 | 1,500,000 | |
Nonvested, ending balance | 400,000 | 700,000 | 1,500,000 |
Director Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 1.6 | $ 1.5 | $ 1.4 |
Intrinsic value of the unvested | $ 1,900,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 4 months | ||
Number of shares granted | 68,000 | 36,000 | 65,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 0.7 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning balance | 36,000 | 65,000 | 17,000 |
Vested during period | (41,000) | (65,000) | (17,000) |
Forfeited during period | 0 | 0 | 0 |
Nonvested, ending balance | 63,000 | 36,000 | 65,000 |
Restricted Share Activity [Roll Forward] | |||
Nonvested, beginning balance, value | $ 1.6 | $ 1.2 | $ 1.4 |
Granted during period, value | 2.2 | 1.6 | 1.3 |
Vested during period, value | (1.8) | (1.2) | (1.5) |
Forfeited during period, value | 0 | 0 | 0 |
Nonvested, ending balance, value | $ 2 | $ 1.6 | $ 1.2 |
Market Based LTIA [Member] | Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 162,102 | 385,887 | |
Grant Date Of Fair Value Of Shares Granted | $ 9.8 | $ 16.1 | |
Long Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of the unvested | $ 50,600,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 37.5 | ||
Long Term Incentive Plan [Member] | Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 32.1 | $ 24.3 | $ 22.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, beginning balance | 1,402,000 | 1,479,000 | 1,304,000 |
Granted during period | 839,000 | 763,000 | 940,000 |
Vested during period | (396,000) | (305,000) | (573,000) |
Forfeited during period | (142,000) | (535,000) | (192,000) |
Nonvested, ending balance | 1,703,000 | 1,402,000 | 1,479,000 |
Restricted Share Activity [Roll Forward] | |||
Nonvested, beginning balance, value | $ 68.9 | $ 80.5 | $ 94 |
Granted during period, value | 46 | 36.7 | 39.6 |
Vested during period, value | (20.6) | (20.6) | (39.1) |
Forfeited during period, value | (11.6) | (27.7) | (14) |
Nonvested, ending balance, value | $ 82.7 | $ 68.9 | $ 80.5 |
Service Based LTIA [Member] | Class A [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 570,914 | 515,788 | |
Grant Date Of Fair Value Of Shares Granted | $ 26.9 | $ 21 | |
Restricted Stock Units (RSUs) [Member] | LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 553,578 | ||
Share-based Payment Arrangement | LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant Date Of Fair Value Of Shares Granted | $ 24 | ||
Performance Shares | LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted | 284,653 | ||
Grant Date Of Fair Value Of Shares Granted | $ 22 | ||
Union ratification stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 3 | ||
Number of shares granted | 93,565 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | $ 0 | $ 13.6 | $ 163.6 | |
Valuation Allowances and Reserves, Corporate rate remeasurement | (0.2) | 63 | 0 | |
Summary Pretax Income [Abstract] | ||||
U.S. | (467.2) | (553.3) | (1,046.7) | |
International | (72.2) | (1.9) | (39.2) | |
Loss before income taxes and equity in net loss of affiliates | (539.4) | (555.2) | (1,085.9) | |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 18.3 | 6.8 | 110.1 | |
Valuation Allowances and Reserves, Depreciation and Amortization | 0.2 | 0.2 | 0 | |
Valuation Allowances and Reserves, Other | (3) | (1.3) | 19.4 | |
Valuation Allowances and Reserves, Other comprehensive income adjustment | 7.3 | (21.8) | 16.9 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 714.7 | 536.8 | 340.9 | $ 10.2 |
Valuation Allowances and Reserves, Net operating losses | 155.3 | 135.4 | 20.7 | |
Deferred Tax Assets, Gross | 718.2 | 515.4 | ||
Current | ||||
Federal | (4.5) | (11.4) | (301) | |
State | (0.7) | (0.2) | (5.5) | |
Foreign | 1.7 | 0.9 | (8.1) | |
Total current | (3.5) | (10.7) | (314.6) | |
Deferred | ||||
Federal | 10.2 | (14) | (16.2) | |
State | 2.5 | 15.9 | 106.9 | |
Foreign | (4) | (8.4) | 3.7 | |
Total Deferred | 8.7 | (6.5) | 94.4 | |
Total income tax provision (benefit) | 5.2 | (17.2) | (220.2) | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Tax at U.S. Federal statutory rate | (113.3) | (116.5) | (228.1) | |
State income taxes, net of Federal benefit | (9.6) | (24.9) | (28.1) | |
State income tax credits, net of Federal benefit | (15.6) | (7.4) | (17.4) | |
Foreign rate differences | (3.5) | (5.2) | (3.3) | |
Research and experimentation | (5.2) | (1.6) | (0.1) | |
Valuation Allowance - U.S. Deferred Tax Asset | $ 170.6 | $ 204.2 | $ 150.2 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 0% | 1% | 9.70% | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 0 | $ (5.3) | $ (104.8) | |
Other | (3.3) | (5.3) | (4.8) | |
Total income tax provision (benefit) | $ 5.2 | $ (17.2) | $ (220.2) | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ||||
Tax at U.S. Federal statutory rate | 21% | 21% | 21% | |
State income taxes, net of Federal benefit | 1.80% | 4.50% | 2.60% | |
State income tax credits, net of Federal benefit | 2.90% | 1.30% | 1.60% | |
Foreign rate differences | 0.60% | 0.90% | 0.30% | |
Research and experimentation | (1.00%) | (0.30%) | 0% | |
Valuation Allowance - U.S. Deferred Tax Asset | (31.60%) | (36.90%) | (13.80%) | |
Other | 0.60% | 1% | 0.50% | |
Effective Income Tax Rate Reconciliation, Percent | (1.00%) | 3.10% | 20.30% | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (10.6) | $ 0 | $ 0 | |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 2% | 0% | 0% | |
Effective Tax Reconciliation- GILTI | $ (1.8) | $ 0.9 | $ 3.9 | |
Effective Income Tax Reconciliation, GILTI Tax, Percent | 0.30% | (0.20%) | (0.40%) | |
Effective Income Tax Rate Reconciliation, Excess Tax Benefit | $ 0.4 | $ 0.8 | $ 0.1 | |
EffectiveTaxRateRecon, ExcessTaxBenefit, Percentage | (0.10%) | (0.10%) | 0% | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 4.2 | $ 1.9 | $ 10.5 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | (0.80%) | (0.30%) | (1.00%) | |
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ||||
Depreciation and amortization | $ 113.3 | $ 144.2 | ||
Net operating loss carryforward | 21.1 | 40 | ||
Deferred Tax Liabilities, Other | (32.8) | (78.3) | ||
Accruals and reserves | (116.6) | (159.6) | ||
Employee compensation accruals | 0.5 | 1 | ||
Pension and other employee benefit plans | 438.1 | 321.7 | ||
Deferred Tax Asset, Interest Carryforward | 30.7 | 27.1 | ||
Deferred Tax Assets, State Taxes | 145.2 | 130.1 | ||
Interest expense limitation | 46.2 | 47.8 | ||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Other | 7.9 | 10.2 | ||
Deferred Tax Assets, Tax Deferred Expense, Other | 64 | 30.7 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | 0.6 | 0.5 | ||
Net deferred tax asset before valuation allowance | 718.2 | 515.4 | ||
Deferred Tax Liabilities, Net | (21.4) | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning Balance | 18.3 | 16.5 | $ 5.4 | |
Gross increases related to current period tax positions | 0.4 | 0.4 | 0.4 | |
Statute of limitations' expiration | (10.6) | (0.6) | (3.3) | |
Ending Balance | 8.1 | 18.3 | 16.5 | |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 0 | 0 | 14 | |
Unrecognized Tax Benefits, Increase Resulting from remeasurement for tax rate change | 0 | 2 | 0 | |
Tax Credit Carryforward [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6.9 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Unrecognized Tax Benefits | 8.1 | 18.3 | 16.5 | $ 5.4 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 6.9 | |||
Deferred Tax Assets, Valuation Allowance | 714.7 | 536.8 | ||
Deferred Tax Assets, Net of Valuation Allowance | 4.8 | 0.4 | ||
Deferred Tax Liabilities, Gross | 1.3 | 21.8 | ||
Net non-current deferred tax asset (liability) | 3.5 | |||
Deferred Tax Assets, Valuation Allowance | 714.7 | 536.8 | ||
Deferred Tax Assets, Net | 3.5 | |||
U.S. Deferred Tax Assets, Net of Valuation Allowance | 1 | |||
Effective Income Tax Rate Reconciliation, Re-measurement of Deferred Taxes, Amount | $ (7.1) | $ (58.8) | $ 1.7 | |
Effective Income Tax Rate Reconciliation, Re-measurement of Deferred Taxes, Percent | 1.30% | 10.60% | (0.20%) | |
Foreign Tax Authority [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | $ 279.3 | |||
Deferred Tax Assets, Valuation Allowance | 279.3 | |||
Domestic Tax Authority [Member] | ||||
Summary Pretax Income [Abstract] | ||||
Deferred Tax Assets, Gross | 436.2 | |||
Deferred Tax Assets, Tax Deferred Expense [Abstract] | ||||
Net deferred tax asset before valuation allowance | 436.2 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 435.2 | |||
Deferred Tax Assets, Valuation Allowance | $ 435.2 |
Income Taxes (Details Textuals)
Income Taxes (Details Textuals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 6.9 | ||
Effective Income Tax Rate Reconciliation, Percent | (1.00%) | 3.10% | 20.30% |
Deferred Tax Liabilities, Net | $ 21.4 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 6.9 |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss) | $ (203.9) | $ (203.9) | $ (23.7) | |
Class of Stock [Line Items] | ||||
Employee Stock Purchase Plan, Number of Allocated Shares | 1,000,000 | 1,000,000 | ||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.03 | $ 0.04 | $ 0.04 |
Issued But Unvested Shares (in shares) | 400,000 | 400,000 | 700,000 | 1,500,000 |
Noncontrolling interest | $ 3.7 | $ 3.7 | $ 0.5 | |
Stock Repurchased During Period, Value | $ 0.1 | |||
Payments of Dividends | $ 4.2 | $ 4.3 | 15.4 | |
Basic EPS | ||||
(Loss) income available to common shareholders | $ (870.3) | |||
(Loss) income available to common shareholders (in shares) | 104,600,000 | 104,200,000 | 103,900,000 | |
Earnings Per Share, Basic | $ (5.21) | $ (5.19) | $ (8.38) | |
Income allocated to participating securities | $ 0 | $ 0 | $ 0 | |
Income allocated to participating securities, shares | 0 | 0 | 0 | |
Net loss | $ (545.7) | $ (540.8) | $ (870.3) | |
Diluted potential common shares (in shares) | 0 | |||
Diluted EPS | ||||
Net income | $ (545.7) | $ (540.8) | $ (870.3) | |
Shares | 104,600,000 | 104,200,000 | 103,900,000 | |
(Loss) earnings per share, diluted (in dollars per share) | $ (5.21) | $ (5.19) | $ (8.38) | |
Employee stock purchase plan, remaining shares | 616,953 | 616,953 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | $ (203.9) | $ (203.9) | $ (23.7) | |
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (7.1) | (7.1) | (2) | |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 3.2 | |||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 6,493 | |||
Foreign Currency Impact On Long Term Intercompany Loan [Member] | ||||
Equity [Abstract] | ||||
Accumulated Other Comprehensive Income (Loss) | (16.4) | $ (16.4) | (12.2) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss) | $ (16.4) | $ (16.4) | $ (12.2) | |
Common Class A [Member] | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | 200,000,000 | |
Class B [Member] | ||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Common Stock, Shares Authorized | 0 | 0 | 0 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Contingencies [Line Items] | ||||
Valuation allowance | $ (714.7) | $ (536.8) | ||
Service warranty roll forward | ||||
Charges to costs and expenses | 6.7 | 12.3 | $ 3.3 | |
Product Warranty Accrual, Payments | (2.7) | (17.7) | (1.9) | |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 0 | 0 | 10.3 | |
Exchange rate | (0.4) | (0.2) | 0.5 | |
Product Warranty And Extraordinary Rework, Ending Balance | 74.9 | 71.3 | 76.9 | |
Commitments Contingencies And Guarantees Textuals [Abstract] | ||||
Capital Commitments | 110.2 | 137.5 | ||
Outstanding Amount Of Guarantees | 13.9 | 15.9 | ||
Restricted Cash and Investments, Noncurrent | 19.6 | 19.5 | $ 19.5 | $ 16.4 |
Product Liability Accrual, Component Amount | 2.3 | 2.3 | ||
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | 3.4 | $ 3.4 | ||
Loss Contingency, Estimate of Possible Loss | 0 | |||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | 220 | |||
Industrial Revenue Bond [Member] | ||||
Commitments Contingencies And Guarantees Textuals [Abstract] | ||||
Tax Exempt Bonds | $ 393.2 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |||
Kansas Development Finance Authority bond | $ 2.4 | $ 2.8 | $ 3 |
Pension Income (Expense) without Service Cost | (30.2) | 150.1 | (36.8) |
Interest Income, Other | 6.2 | 1.8 | 10 |
Other Income | 12.5 | (1.8) | (7.6) |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (17.1) | (1) | (10.5) |
Gain (Loss) on Sale of Accounts Receivable | (23.4) | (6.7) | (8.9) |
Foreign currency gains (losses) (2) | 21.6 | 1.4 | (27) |
Taxes, Miscellaneous | 6.8 | 0 | 0 |
Amortization of Intangible Assets | 14.4 | 14 | |
Total Other (Expense) Income, net | (14.1) | 146.6 | (77.8) |
Gain on settlement of financial instrument | $ 20.7 | $ 0 | $ 0 |
Significant Concentrations of R
Significant Concentrations of Risk (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Entity Number of Employees | 18,235 | ||
Boeing [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 60% | 56% | 60% |
Boeing [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 28% | 24% | |
Airbus [Member] | Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 22% | 24% | 23% |
Airbus [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 36% | 27% | |
UNITED STATES | |||
Concentration Risk [Line Items] | |||
Entity Number of Employees | 12,735 | ||
UNITED STATES | Workforce Subject to Collective-Bargaining Arrangements Expiring within One Year | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 55% |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses other [Line Items] | ||
Other Accrued Liabilities, Current | $ 125 | $ 82.4 |
Other Liabilities, Noncurrent | 141.6 | 423.9 |
Accrued Liabilities, Current [Abstract] | ||
Accrued wages and bonuses | 56.3 | 49.8 |
Accrued fringe benefits | 110.7 | 104.3 |
Accrued Payroll Taxes, Current | 8.6 | 24 |
Accrued interest | 31.6 | 34.9 |
Workers' compensation | 7.6 | 7.6 |
Property and sales tax | 23.4 | 25.4 |
Warranty/extraordinary rework reserve — current | 1.5 | 2.9 |
Other(1) | 125 | 82.4 |
Total | 411.7 | 376.1 |
Repayable Investment Agreement | 0 | 301.9 |
Other Liabilities, Noncurrent [Abstract] | ||
Warranty/extraordinary rework reserve - non-current | 73.4 | 68.4 |
Other(3) | 68.2 | 53.6 |
Total | 141.6 | 423.9 |
Estimated Litigation Liability | 47 | $ 44.8 |
Government funding (or partially funding) of capital | ||
Accrued Expenses other [Line Items] | ||
Other Liabilities, Noncurrent | 8.2 | |
Other Liabilities, Noncurrent [Abstract] | ||
Total | $ 8.2 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) customer integer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number Of Largest Customers | customer | 2 | ||
Segment Revenues | |||
Revenues | $ 5,029.6 | $ 3,953 | $ 3,404.8 |
Segment Operating Income | |||
Business Segment Operating Income | 48.4 | (126) | (536.6) |
Research and development | (50.4) | (53.3) | (38.8) |
Operating loss | (281.2) | (459.2) | (812.8) |
Textuals [Abstract] | |||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 157.3 | 217.5 | |
Abnormal Costs- COVID19 production suspension | 9.6 | ||
Restructuring Charges | $ 0.2 | 8.2 | 73 |
Number of Reportable Segments | integer | 3 | ||
Selling, General and Administrative Expense | $ (279.2) | (279.9) | (237.4) |
Commercial [Member] | |||
Segment Revenues | |||
Revenues | 4,068.4 | 3,128.1 | 2,711.3 |
Segment Operating Income | |||
Business Segment Operating Income | (82.9) | (220.6) | (620.6) |
Textuals [Abstract] | |||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 149.5 | 206.7 | 265.5 |
Abnormal Costs- COVID19 production suspension | 9.6 | 12 | 33.7 |
Restructuring Charges | 0.2 | 6.8 | 64 |
Aviation Manufacturing Jobs Protection Program grant | $ (25.5) | (35.9) | |
Segment Reporting, Disclosure of Major Customers | Approximately 65%, 60%, and 64% of Commercial segment net revenues came from the Company's contracts with Boeing for the twelve months ended December 31, 2022, 2021, and 2020, respectively. Approximately 27%, 30%, and 28% of Commercial segment net revenues came from the Company's contracts with Airbus for the twelve months ended December 31, 2022, 2021, and 2020, respectively. | ||
Charge related to suspension of activities due to sanctions | $ 24.7 | ||
Defense & Space [Member] | |||
Segment Revenues | |||
Revenues | 649.8 | 585 | 491.3 |
Segment Operating Income | |||
Business Segment Operating Income | 72.8 | 44.3 | 47 |
Textuals [Abstract] | |||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 7.8 | 10.8 | 13.4 |
Restructuring Charges | 1.1 | 3.8 | |
Aviation Manufacturing Jobs Protection Program grant | $ (2.3) | (3) | |
Segment Reporting, Disclosure of Major Customers | Approximately 34%, 36%, and 28% of Defense & Space segment net revenues came from the Company's contracts with an individual customer for the twelve months ended December 31, 2022, 2021, and 2020, respectively. In addition, a customer accounted for approximately 30%, 39%, and 44% of Defense & Space segment net revenues for the twelve months ended December 31, 2022, 2021, and 2020, respectively. | ||
Aftermarket [Member] | |||
Segment Revenues | |||
Revenues | $ 311.4 | 239.9 | 202.2 |
Segment Operating Income | |||
Business Segment Operating Income | 58.5 | 50.3 | 37 |
Textuals [Abstract] | |||
Restructuring Charges | 0.3 | $ 5.2 | |
Aviation Manufacturing Jobs Protection Program grant | $ (1.9) | $ (2.2) | |
Segment Reporting, Disclosure of Major Customers | Approximately 48%, 44%, and 80% of Aftermarket segment net revenues came from the Company's contracts with a single customer for the twelve months ended December 31, 2022, 2021, and 2020, respectively. | ||
Charge related to suspension of activities due to sanctions | $ 4.4 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 5,029.6 | $ 3,953 | $ 3,404.8 |
Total Percentage Revenues | 100% | 100% | 100% |
Total Percentage Long Lived Assets | 100% | 100% | 100% |
Property, plant and equipment, net | $ 2,205.9 | $ 2,385.5 | $ 2,503.8 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percent of Total Net Revenues, United States | 76% | 71% | 77% |
Long-Lived Assets | $ 1,708.2 | $ 1,833.7 | $ 1,931 |
United States | 78% | 77% | 77% |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percent of Total Net Revenues, International | 13% | 15% | 13% |
Long-Lived Assets | $ 404.1 | $ 451.3 | $ 466.2 |
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 18% | 19% | 19% |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 582.3 | $ 550.4 | $ 333.7 |
Percent of Total Net Revenues, International | 11% | 14% | 10% |
Long-Lived Assets | $ 93.6 | $ 100.5 | $ 106.6 |
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 4% | 4% | 4% |
Total International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percent of Total Net Revenues, International | 24% | 29% | 23% |
Long-Lived Assets | $ 497.7 | $ 551.8 | $ 572.8 |
Disclosure on Geographic Areas, Long Lived Assets from External Customers Attributed to Foreign Countries | 22% | 23% | 23% |
Restructuring and Related Activ
Restructuring and Related Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 0.2 | $ 8.2 | $ 73 |
Abnormal Costs- COVID19 production suspension | 9.6 | ||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 157.3 | 217.5 | |
Commercial [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0.2 | 6.8 | 64 |
Abnormal Costs- COVID19 production suspension | 9.6 | 12 | 33.7 |
Excess Capacity Costs- B737MAX and A320 Production Schedules | 149.5 | 206.7 | 265.5 |
Defense & Space [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1.1 | 3.8 | |
Excess Capacity Costs- B737MAX and A320 Production Schedules | $ 7.8 | 10.8 | 13.4 |
Aftermarket [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 0.3 | 5.2 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 51.4 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 21.6 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | $ 630.5 | $ 623.7 | |
Revenues | 5,029.6 | 3,953 | $ 3,404.8 |
Net income | $ (545.7) | $ (540.8) | $ (870.3) |
Earnings Per Share, Diluted | $ (5.21) | $ (5.19) | $ (8.38) |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 24.8 | ||
Provision for Loss on Contracts | 305.9 | $ 244.6 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 4.9 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 38.5 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other non-current liabilities | 4.3 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 2.3 | ||
Goodwill, Other Increase (Decrease) | 0 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 31.3 | 21.1 | $ 388.5 |
FMI Acquisition [Text Block] | |||
Goodwill, Acquired During Period | $ 7.1 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 31.3 | 21.1 | 388.5 |
Commercial [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 296.5 | 296.8 | |
Revenues | 4,068.4 | 3,128.1 | 2,711.3 |
Goodwill, Other Increase (Decrease) | 0 | 228.8 | |
Goodwill, Acquired During Period | 0 | ||
Defense & Space [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 12.6 | 5.5 | |
Revenues | 649.8 | 585 | 491.3 |
Goodwill, Other Increase (Decrease) | 0 | ||
Aftermarket [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill | 321.4 | 321.4 | |
Revenues | 311.4 | 239.9 | 202.2 |
Goodwill, Other Increase (Decrease) | 0 | 298.2 | |
Goodwill, Acquired During Period | 0 | ||
Asco [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Transaction Costs | $ 20 | ||
Bombardier Acquisition [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Transaction Costs | $ 3.3 | 11 | |
Business Acquisition, Effective Date of Acquisition | Oct. 30, 2020 | ||
Business Combination, Consideration Transferred | $ 895 | ||
Business Acquisition, Description of Acquired Entity | The Bombardier Acquired Businesses are global leaders in aerostructures and fabrication, delivering composite and metallic wing components, nacelles, fuselages and tail assemblies, along with high-value mechanical assemblies made out of aluminum, titanium and steel. | ||
Business Combination, Reason for Business Combination | The acquisition is in line with the Company’s growth strategy of increasing Airbus content, developing low-cost country footprint, and growing the Company’s aftermarket business. | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 4.4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 91.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 251.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 11.4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 373.6 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets, Right of Use | 27.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 193 | ||
Goodwill | 527 | 486.8 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 11.7 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,492.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 90.4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, forward loss provisions, short term | 33.8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 31.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 286.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 317.7 | ||
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation | 27.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Retirement benefits | 316.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 1,217.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 275 | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 93.4 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | (26.5) | ||
Business Acquisition, Pro Forma Revenue | 3,983.6 | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ (883.2) | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ (8.50) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accrued payroll and employee benefits | 113.8 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | 316 | ||
Business Combination, Consideration Transferred, Other | 304 | ||
Payments to Acquire Businesses, Gross | 275 | ||
Bombardier Acquisition [Member] | Technology-Based Intangible Assets | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 62 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Bombardier Acquisition [Member] | Customer relationships [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 131 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years | ||
Applied Aerodynamics Acquisition | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Transaction Costs | $ 0.6 | ||
Business Acquisition, Effective Date of Acquisition | Apr. 26, 2021 | ||
Business Combination, Consideration Transferred | $ 29.6 | ||
Business Acquisition, Description of Acquired Entity | an MRO company based in Farmers Branch, Texas, | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6.2 | ||
Goodwill | 18.1 | ||
Payments to Acquire Businesses, Gross | $ 21.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 2.3 | ||
T.E.A.M., Inc. Acquisition | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Business Acquisition, Transaction Costs | $ 1.2 | ||
Business Acquisition, Effective Date of Acquisition | Nov. 23, 2022 | ||
Business Acquisition, Description of Acquired Entity | a Rhode Island corporation, which is engaged in the business of manufacturing and engineering textiles, composites, and textile and composite products | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 8.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 13.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 2.3 | ||
T.E.A.M., Inc. Acquisition | Defense & Space [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Goodwill, Acquired During Period | $ 7.1 |
Uncategorized Items - spr-20221
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 2,367,200,000 |