Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 21, 2017 | Jul. 02, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DCO | ||
Entity Registrant Name | DUCOMMUN INC /DE/ | ||
Entity Central Index Key | 30,305 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 11,195,101 | ||
Entity Public Float | $ 219 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 7,432 | $ 5,454 |
Accounts receivable (less allowance for doubtful accounts of $495 and $359 at December 31, 2016 and 2015, respectively) | 76,239 | 77,089 |
Inventories | 119,896 | 115,404 |
Production cost of contracts | 11,340 | 10,290 |
Other current assets | 11,034 | 13,389 |
Assets held for sale | 0 | 41,636 |
Total Current Assets | 225,941 | 263,262 |
Property and Equipment, Net | 101,590 | 96,551 |
Goodwill | 82,554 | 82,554 |
Intangibles, Net | 101,573 | 110,621 |
Non-Current Deferred Income Taxes | 286 | 324 |
Other Assets | 3,485 | 3,769 |
Total Assets | 515,429 | 557,081 |
Current Liabilities | ||
Current portion of long-term debt | 3 | 26 |
Accounts payable | 57,024 | 40,343 |
Accrued liabilities | 29,279 | 36,458 |
Liabilities held for sale | 0 | 6,780 |
Total Current Liabilities | 86,306 | 83,607 |
Long-Term Debt, Less Current Portion | 166,896 | 240,661 |
Non-Current Deferred Income Taxes | 31,417 | 28,125 |
Other Long-Term Liabilities | 18,707 | 18,954 |
Total Liabilities | 303,326 | 371,347 |
Commitments and Contingencies (Notes 13, 16) | ||
Shareholders’ Equity | ||
Common stock - $0.01 par value; 35,000,000 shares authorized; 11,193,813 and 11,084,318 shares issued and outstanding at December 31, 2016 and 2015, respectively | 112 | 111 |
Additional paid-in capital | 76,783 | 75,200 |
Retained earnings | 141,287 | 116,026 |
Accumulated other comprehensive loss | (6,079) | (5,603) |
Total Shareholders’ Equity | 212,103 | 185,734 |
Total Liabilities and Shareholders’ Equity | $ 515,429 | $ 557,081 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 495 | $ 359 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 11,193,813 | 11,084,318 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Net Revenues | $ 550,642 | $ 666,011 | $ 742,045 |
Cost of Sales | 444,449 | 565,219 | 601,713 |
Gross Profit | 106,193 | 100,792 | 140,332 |
Selling, General and Administrative Expenses | 77,625 | 85,921 | 88,565 |
Goodwill Impairment | 0 | 57,243 | 0 |
Intangible Asset Impairment | 0 | 32,937 | 0 |
Operating Income (Loss) | 28,568 | (75,309) | 51,767 |
Interest Expense | (8,274) | (18,709) | (28,077) |
Gain on Divestitures, Net | 17,604 | 0 | 0 |
Loss on Extinguishment of Debt | 0 | (14,720) | 0 |
Other Income, Net | 215 | 2,148 | 2,550 |
Income (Loss) Before Taxes | 38,113 | (106,590) | 26,240 |
Income Tax Expense (Benefit) | 12,852 | (31,711) | 6,373 |
Net Income (Loss) | $ 25,261 | $ (74,879) | $ 19,867 |
Earnings (Loss) Per Share | |||
Basic earnings (loss) per share (in dollars per share) | $ 2.27 | $ (6.78) | $ 1.82 |
Diluted earnings (loss) per share (in dollars per share) | $ 2.24 | $ (6.78) | $ 1.79 |
Weighted-Average Number of Shares Outstanding | |||
Basic (in shares) | 11,151 | 11,047 | 10,897 |
Diluted (in shares) | 11,299 | 11,047 | 11,126 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 25,261 | $ (74,879) | $ 19,867 |
Pension Adjustments: | |||
Amortization of actuarial loss included in net income, net of tax benefit of $283, $330, and $156 for 2016, 2015, and 2014, respectively | 479 | 557 | 263 |
Actuarial (loss) gain arising during the period, net of tax (benefit) expense of $(413), $300, and $(1,810) for 2016, 2015, and 2014, respectively | (650) | 491 | (3,052) |
Decrease in net unrealized gains and losses on cash flow hedges, net of tax benefit of $180, $0, and $0 for 2016, 2015, and 2014, respectively | (305) | 0 | 0 |
Other Comprehensive (Loss) Income, Net of Tax | (476) | 1,048 | (2,789) |
Comprehensive Income (Loss), Net of Tax | $ 24,785 | $ (73,831) | $ 17,078 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Amortization of actuarial (loss) gain, tax | $ 283 | $ 330 | $ 156 |
Actuarial gain (loss) arising during the period, tax expense (benefit) | (413) | 300 | (1,810) |
Unrealized gain (loss) on cash flow hedges, tax | $ 180 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2013 | 10,816,754 | |||||
Beginning Balance at Dec. 31, 2013 | $ 234,271 | $ 110 | $ (1,924) | $ 68,909 | $ 171,038 | $ (3,862) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 19,867 | 19,867 | ||||
Other comprehensive loss, net of tax | (2,789) | (2,789) | ||||
Stock options exercised (in shares) | 117,149 | |||||
Stock options exercised | 2,276 | $ 1 | 2,275 | |||
Stock repurchased related to the exercise of stock options (in shares) | (34,597) | |||||
Stock repurchased related to the exercise of stock options | (920) | $ (1) | (919) | |||
Stock awards vested (in shares) | 52,962 | |||||
Stock awards vested | 0 | $ 1 | (1) | |||
Stock-based compensation | 3,725 | 3,725 | ||||
Excess tax (expense) benefits from share-based compensation | 140 | 140 | ||||
Retirement of treasury stock | 0 | $ (1) | 1,924 | (1,923) | ||
Ending Balance (in shares) at Dec. 31, 2014 | 10,952,268 | |||||
Ending Balance at Dec. 31, 2014 | 256,570 | $ 110 | 0 | 72,206 | 190,905 | (6,651) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (74,879) | (74,879) | ||||
Other comprehensive loss, net of tax | 1,048 | 1,048 | ||||
Stock options exercised (in shares) | 167,523 | |||||
Stock options exercised | 3,084 | $ 1 | 3,083 | |||
Stock repurchased related to the exercise of stock options (in shares) | (137,194) | |||||
Stock repurchased related to the exercise of stock options | (4,210) | $ (1) | (4,209) | |||
Stock awards vested (in shares) | 101,721 | |||||
Stock awards vested | 0 | $ 1 | (1) | |||
Stock-based compensation | 3,495 | 3,495 | ||||
Excess tax (expense) benefits from share-based compensation | 626 | 626 | ||||
Ending Balance (in shares) at Dec. 31, 2015 | 11,084,318 | |||||
Ending Balance at Dec. 31, 2015 | 185,734 | $ 111 | 0 | 75,200 | 116,026 | (5,603) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 25,261 | 25,261 | ||||
Other comprehensive loss, net of tax | $ (476) | (476) | ||||
Stock options exercised (in shares) | 132,325 | 132,325 | ||||
Stock options exercised | $ 2,122 | $ 1 | 2,121 | |||
Stock repurchased related to the exercise of stock options (in shares) | (151,916) | |||||
Stock repurchased related to the exercise of stock options | $ (3,465) | $ (1) | (3,464) | |||
Stock awards vested (in shares) | 114,325 | 129,086 | ||||
Stock awards vested | $ 0 | $ 1 | (1) | |||
Stock-based compensation | 3,007 | 3,007 | ||||
Excess tax (expense) benefits from share-based compensation | (80) | (80) | ||||
Ending Balance (in shares) at Dec. 31, 2016 | 11,193,813 | |||||
Ending Balance at Dec. 31, 2016 | $ 212,103 | $ 112 | $ 0 | $ 76,783 | $ 141,287 | $ (6,079) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net Income (Loss) | $ 25,261 | $ (74,879) | $ 19,867 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities | |||
Depreciation and amortization | 22,860 | 26,846 | 29,024 |
Gain on divestitures, net | (17,604) | 0 | 0 |
Goodwill impairment | 0 | 57,243 | 0 |
Intangible asset impairment | 0 | 32,937 | 0 |
Stock-based compensation expense | 3,007 | 3,495 | 3,725 |
Deferred income taxes | 3,519 | (29,110) | 345 |
Excess tax benefits from stock-based compensation | (248) | (626) | (140) |
Provision for (recovery of) doubtful accounts | 112 | 132 | (237) |
Noncash loss on extinguishment of debt | 0 | 4,970 | 0 |
Other | (7,204) | 5,628 | (5,713) |
Changes in Assets and Liabilities: | |||
Accounts receivable | 3,220 | 4,444 | 1,086 |
Inventories | (5,182) | 20,985 | (2,335) |
Production cost of contracts | (1,536) | 330 | (3,513) |
Other assets | 2,974 | 5,884 | 4,800 |
Accounts payable | 15,055 | (13,978) | 410 |
Accrued and other liabilities | (966) | (20,623) | 6,103 |
Net Cash Provided by Operating Activities | 43,268 | 23,678 | 53,422 |
Cash Flows from Investing Activities | |||
Purchases of property and equipment | (17,001) | (15,891) | (18,096) |
Proceeds from sale of assets | 16 | 904 | 91 |
Insurance recoveries related to property and equipment | 0 | 1,510 | 2,550 |
Proceeds from divestitures | 51,893 | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 34,908 | (13,477) | (15,455) |
Cash Flows from Financing Activities | |||
Borrowings from senior secured revolving credit facility | 71,800 | 65,000 | 0 |
Repayment of senior secured revolving credit facility | (71,800) | (65,000) | (42,650) |
Borrowings from term loan | 0 | 275,000 | 0 |
Repayments of senior unsecured notes and term loans | (75,000) | (320,000) | 0 |
Repayments of other debt | (23) | (26) | 0 |
Debt issuance costs | 0 | (4,848) | 0 |
Excess tax benefits from stock-based compensation | 248 | 626 | 140 |
Net (cash paid) proceeds from issuance of common stock under stock plans | (1,423) | (1,126) | 1,356 |
Net Cash Used in Financing Activities | (76,198) | (50,374) | (41,154) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,978 | (40,173) | (3,187) |
Cash and Cash Equivalents at Beginning of Year | 5,454 | 45,627 | 48,814 |
Cash and Cash Equivalents at End of Year | 7,432 | 5,454 | 45,627 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 6,877 | 26,501 | 25,105 |
Taxes paid | 9,778 | 1,150 | 3,476 |
Non-cash activities: | |||
Purchases of property and equipment not yet paid | $ 3,241 | $ 1,549 | $ 1,458 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business We are a leading global provider of engineering and manufacturing services for high-performance products and high-cost-of failure applications used primarily in the aerospace, defense, industrial, medical, and other industries. Our subsidiaries are organized into two primary businesses: Electronic Systems segment and Structural Systems segment, each of which is a reportable operating segment. Electronic Systems designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace, defense, industrial, medical, and other end-use markets. Electronic Systems’ product offerings range from prototype development to complex assemblies. Structural Systems designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. Structural Systems’ products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. All reportable operating segments follow the same accounting principles. Basis of Presentation The consolidated financial statements include the accounts of Ducommun Incorporated and its subsidiaries (“Ducommun,” the “Company,” “we,” “us” or “our”), after eliminating intercompany balances and transactions. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our consolidated financial position, results of operations, comprehensive income (loss) and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Our fiscal quarters typically end on the Saturday closest to the end of March, June and September for the first three fiscal quarters of each year, and ends on December 31 for our fourth fiscal quarter. As a result of using fiscal quarters for the first three quarters combined with leap years, our first and fourth fiscal quarters can range between 12 1/2 weeks to 13 1/2 weeks while the second and third fiscal quarters remain at a constant 13 weeks per fiscal quarter. Use of Estimates Certain amounts and disclosures included in the consolidated financial statements required management to make estimates and judgments that affect the amount of assets, liabilities (including forward loss reserves), revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Reclassifications Certain prior period amounts have been reclassified to conform to current year’s presentation. Revision of 2015 Financial Statements During the fourth quarter of 2016, we determined that we improperly calculated the tax impact of the goodwill impairment charge recorded in the fourth quarter of 2015. As a result, $1.6 million was incorrectly recorded as a deferred tax asset as of December 31, 2015, however, this amount should have decreased our income tax benefit for the year ended December 31, 2015. Therefore, we have revised our December 31, 2015 consolidated balance sheet to increase non-current deferred tax liabilities by $1.6 million and revised our consolidated statement of operations for the year ended December 31, 2015 to increase our net loss by $1.6 million . We have also revised all related footnote disclosures in these consolidated financial statements to correct this error. This error had no effect on net cash provided by operating activities on our consolidated cash flow statement for the year ended December 31, 2015. We assessed the materiality of this error and do not believe it is material to any prior interim or annual periods. Fair Value We measure certain assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. See Note 3 for further information. Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less .These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value above. Derivative Instruments We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2016 and December 31, 2015, all of our derivative instruments were designated as cash flow hedges. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in other comprehensive income (loss), net of tax until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within interest expense. We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions. Inventories Inventories are stated at the lower of cost or market with cost being determined using a moving average cost basis for raw materials and actual cost for work-in-process and finished goods, with units being relieved from inventory and charged to cost of sales on a first-in, first-out basis. Market value for raw materials is based on replacement cost and for other inventory classifications it is based on net realizable value. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) incurred. Costs under long-term contracts are accumulated into, and removed from, inventory on the same basis as other contracts. We assess the inventory carrying value and record write-downs, if necessary, to its net realizable value based on customer orders on hand, and internal demand forecasts using management’s best estimates given information currently available. We maintain a reserve for excess and obsolete inventories and inventories that are carried at costs that are higher than their estimated net realizable values. We net progress payments from customers related to inventory purchases against inventories in the consolidated balance sheets. Production Cost of Contracts Production cost of contracts includes non-recurring production costs, such as design and engineering costs, and tooling and other special-purpose machinery necessary to build parts as specified in a contract. Production costs of contracts are recorded to cost of goods sold using the units of delivery method. We review long-lived assets within production costs of contracts for impairment on an annual basis (which we perform during the fourth quarter) or when events or changes in circumstances indicate that the carrying value of our long-lived assets may not be recoverable. An impairment charge is recognized when the carrying value of an asset exceeds the projected undiscounted future cash flows expected from its use and disposal. As of December 31, 2016 and 2015 , production costs of contracts were $11.3 million and $10.3 million , respectively. Assets Held For Sale In the fourth quarter of 2015, we made the decision to sell our Huntsville, Alabama and Iuka, Mississippi (collectively, “Miltec”) operations and our Pittsburgh, Pennsylvania operation, both of which are part of our Electronic Systems operating segment, and as a result, we met the criteria for assets held for sale. However, the proposed sale of these two operations did not represent a strategic shift in our business and thus, were included in the ongoing operating results in the consolidated statements of operations for all periods presented. On January 22, 2016, we entered into an agreement, and completed the sale on the same date, to sell our operation located in Pittsburgh, Pennsylvania for a final sales price of $38.6 million in cash. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. Net assets sold were $ 24.0 million , net liabilities sold were $4.0 million , and direct transaction costs incurred were $0.3 million , resulting in a gain on divestiture of $18.3 million . In February 2016, we entered into an agreement to sell our Miltec operation for a final sales price of $13.3 million , in cash. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We completed the sale on March 25, 2016. Net assets sold were $15.4 million , net liabilities sold were $2.7 million , and direct transaction costs incurred were $1.3 million , resulting in a loss on divestiture of $0.7 million . The carrying values of the major classes of assets and liabilities related to these assets held for sale were as follows: (In thousands) December 31, December 31, Assets Accounts receivable (less allowance for doubtful accounts of zero and $24 at December 31, 2016 and December 31, 2015, respectively) $ — $ 9,395 Inventory — 6,453 Deferred income taxes — 1,246 Other current assets — 3,315 Total current assets — 20,409 Property and equipment, net of accumulated depreciation of zero and $8,509 at December 31, 2016 and December 31, 2015, respectively — 1,941 Goodwill — 17,772 Other Intangible Assets — 1,514 $ — $ 41,636 Liabilities Accounts payable $ — $ 4,836 Accrued liabilities — 1,944 $ — $ 6,780 Property and Equipment and Depreciation Property and equipment, including assets recorded under capital leases, are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, or the lease term if shorter for leasehold improvements. Repairs and maintenance are charged to expense as incurred. We evaluate long-lived assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses if any, based upon the fair value of the assets. Goodwill and Indefinite-Lived Intangible Asset Goodwill is tested for impairment utilizing a two-step method. In the first step, we determine the fair value of the reporting unit using expected future discounted cash flows and market valuation approaches considering comparable Company revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) multiples. If the carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of the goodwill impairment loss, if any. The second step requires fair valuation of all the reporting unit’s assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill. This residual fair value of goodwill is then compared to the carrying value of goodwill to determine impairment. An impairment charge will be recognized equal to the excess of the carrying value of goodwill over the implied fair value of goodwill. In 2015, as a result of the annual goodwill impairment test, we recorded $57.2 million of goodwill impairment to the Structural Systems operating segment reducing the goodwill carrying value to zero as of December 31, 2015. See Note 7 for further information. We review our indefinite-lived intangible asset for impairment on an annual basis or when events or changes in circumstances indicate that the carrying value of our intangible asset may not be recoverable. We may first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test. Impairment indicators include, but are not limited to, cost factors, financial performance, adverse legal or regulatory developments, industry and market conditions and general economic conditions. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, we would recognize an impairment loss in the amount of such excess. In performing our annual impairment test in the fourth quarter of 2015, we concluded the fair value of the indefinite-lived trade name to be zero as a result of divesting businesses in Electronic Systems and our discontinuation of the use of the trade name. Thus, we recorded a $32.9 million of trade name impairment to the Electronic Systems trade name carrying value to decrease its trade name carrying value to zero as of December 31, 2015. See Note 7 for further information. Other Intangible Assets We amortize purchased other intangible assets with finite lives over the estimated economic lives of the assets, ranging from fourteen to eighteen years generally using the straight-line method. The value of other intangibles acquired through business combinations has been estimated using present value techniques which involve estimates of future cash flows. We evaluate other intangible assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses, if any, based upon the estimated fair value of the assets. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was composed of cumulative pension and retirement liability adjustments, net of tax, and change in net unrealized gains and losses on cash flow hedges, net of tax. Revenue Recognition Except as described below, we recognize revenue, including revenue from products sold under long-term contracts, when persuasive evidence of an arrangement exists, the price is fixed or determinable, collection is reasonably assured and delivery of products has occurred or services have been rendered. We have a significant number of contracts for which we recognize revenue under the contract method of accounting and record revenues and cost of sales on each contract in accordance with the percentage-of-completion method of accounting, using the units-of-delivery method. Under the units-of-delivery method, revenue is recognized based upon the number of units delivered during a period and the costs are recognized based on the actual costs allocable to the delivered units. Costs allocable to undelivered units are reported on the balance sheet as inventory. This method is used in circumstances in which a company produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. These contracts are primarily fixed-price contracts that vary widely in terms of size, length of performance period, and expected gross profit margins. Provision for Estimated Losses on Contracts We record provisions for the total anticipated losses on contracts considering total estimated costs to complete the contract compared to total anticipated revenues in the period in which such losses are identified. The provisions for estimated losses on contracts require management to make certain estimates and assumptions, including those with respect to the future revenue under a contract and the future cost to complete the contract. Management's estimate of the future cost to complete a contract may include assumptions as to improvements in manufacturing efficiency, reductions in operating and material costs, and our ability to resolve claims and assertions with our customers. If any of these or other assumptions and estimates do not materialize in the future, we may be required to record additional provisions for estimated losses on contracts. In 2015, we recorded a charge in Structural Systems related to estimated cost overruns as a result of a change in the contract requirements for the remaining contractual period for a regional jet program of $10.0 million . This amount was recorded as part of cost of goods sold in our results of operations and increased accrued liabilities by $7.6 million and other long-term liabilities by $2.4 million . Income Taxes Deferred tax assets and liabilities are recognized, using enacted tax rates, for the expected future tax consequences of temporary differences between the book and tax bases of recorded assets and liabilities, operating losses and tax credit carryforwards. Deferred tax assets are evaluated quarterly and are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not, based on technical merits, to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement, including resolution of related appeals and/or litigation process, if any. We elected to early adopt ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” and on a prospective basis for the year ended December 31, 2015. Litigation and Commitments In the normal course of business, we are defendants in certain litigation, claims and inquiries, including matters relating to environmental laws. In addition, we make various commitments and incur contingent liabilities. Management’s estimates regarding contingent liabilities could differ from actual results. Environmental Liabilities Environmental liabilities are recorded when environmental assessments and/or remedial efforts are probable and costs can be reasonably estimated. Generally, the timing of these accruals coincides with the completion of a feasibility study or our commitment to a formal plan of action. Further, we review and update our environmental accruals as circumstances change and/or additional information is obtained that reasonably could be expected to have a meaningful effect on the outcome of a matter or the estimated cost thereof. Accounting for Stock-Based Compensation We measure and recognize compensation expense for share-based payment transactions to our employees and non-employees at their estimated fair value. The expense is measured at the grant date, based on the calculated fair value of the share-based award, and is recognized over the requisite service period (generally the vesting period of the equity award). The fair value of stock options are determined using the Black-Scholes-Merton (“Black-Scholes”) valuation model, which requires assumptions and judgments regarding stock price volatility, risk-free interest rates, and expected options terms. Management’s estimates could differ from actual results. The fair value of unvested stock awards is determined based on the closing price of the underlying common stock on the date of grant. Earnings (Loss) Per Share Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding in each period. Diluted earnings per share are computed by dividing income available to common shareholders plus income associated with dilutive securities by the weighted-average number of common shares outstanding, plus any potential dilutive shares that could be issued if exercised or converted into common stock in each period. The net earnings (loss) and weighted-average number of common shares outstanding used to compute earnings (loss) per share were as follows: (In thousands, except per share data) Years Ended December 31, 2016 2015 2014 Net income (loss) $ 25,261 $ (74,879 ) $ 19,867 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,151 11,047 10,897 Dilutive potential common shares 148 — 229 Diluted weighted-average common shares outstanding 11,299 11,047 11,126 Earnings (loss) per share Basic $ 2.27 $ (6.78 ) $ 1.82 Diluted $ 2.24 $ (6.78 ) $ 1.79 Potentially dilutive stock options and stock units to purchase common stock, as shown below, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. However, these shares may be potentially dilutive common shares in the future. (In thousands) Years Ended December 31, 2016 2015 2014 Stock options and stock units 553 778 218 Recent Accounting Pronouncements New Accounting Guidance Adopted in 2016 In August 2015, the FASB issued ASU 2015-15, “Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which provides guidance on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. Other guidance does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Thus, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new guidance was effective for us beginning January 1, 2016. We did not have debt issuance costs associated with line-of-credit arrangements and thus, the adoption of this new guidance did not have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. The amendments in this new guidance that require transition guidance were effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-7, “Fair Value Measurement (820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-7”), which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. The amendments in ASU 2015-7 remove the requirement to categorize investments for which fair values are measured using the net asset value per share practical expedient. It also limits disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. The new guidance was effective for us beginning January 1, 2016.. As a result of the adoption of this new guidance, we are disclosing certain investments using the net asset value per share of the investment and prior amounts have been reclassified to conform to current year presentation. See Note 12. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of those costs is reported as interest expense. The new guidance was effective for us beginning January 1, 2016. As a result of the adoption of this new guidance, we reclassed $3.1 million of debt issuance costs against $170.0 million of total debt as of December 31, 2016 and prior period amounts have been reclassified to conform to current year presentation. See Note 9. In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)” (“ASU 2015-01”), which eliminates from U.S. GAAP the concept of extraordinary items. Current guidance requires separate classification, presentation, and disclosure of extraordinary events and transactions. In addition, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provide principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. The new guidance was effective for us for our annual year ending December 31, 2016, and interim periods beginning January 1, 2017. The adoption of this standard did not have a significant impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period” (“ASU 2014-12”), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. Thus, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which simplifies the subsequent measurement of goodwill, the amendments eliminate Step Two from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step Two of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are evaluating the impact of this standard. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. We are evaluating the impact of this standard. In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which cover a variety of Topics in the Codification related to the new revenue recognition standard (ASU 2014-09). The amendments in ASU 2016-20 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. We are evaluating the impact of this standard. In December 2016, the FASB issued ASU 2016-19, “Technical Corrections and Improvements” (“2016-19”), which cover a variety of Topics in the Codification. The amendments in ASU 2016-19 represent changes to make corrections or improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, which will be our interim period beginning January 1, 2017. We are evaluating the impact of this standard and currently do not anticipate it will have a significant impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses the following eight specific cash flow issues: Debt |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities Summary of 2015 Restructuring Plans In September 2015, management approved and commenced implementation of several restructuring actions, including organizational re-alignment, consolidation and relocation of the New York facilities that was completed in December 2015, closure of the Houston facility that was completed in December 2015, and closure of the St. Louis facility that was completed in April 2016, all of which are part of our overall strategy to streamline operations. We have recorded cumulative expenses of $2.2 million for severance and benefits and loss on early exit from leases, all of which were charged to selling, general and administrative expenses in 2015. We do not expect to record additional expenses related to these restructuring plans. As of December 31, 2016, we have accrued $0.6 million for loss on early exit from lease in the Structural Systems segment. Summary of 2016 Restructuring Plan In May 2016, management approved and commenced implementation of the closure of one of our Tulsa facilities that was completed in June 2016, and is part of our overall strategy to streamline operations. We have recorded cumulative expenses of $0.2 million for severance and benefits and loss on early exit from a lease, all of which were charged to selling, general and administrative expenses in 2016. We do not expect to record additional expenses related to this restructuring plan. As of December 31, 2016, we have accrued $0.1 million for loss on early exit from lease in the Electronic Systems segment. Our restructuring activities for 2016 and 2015 were as follows (in thousands): December 31, 2015 2016 December 31, 2016 Balance Charges Cash Payments Change in Estimates Balance Severance and benefits $ 722 $ 49 $ (779 ) $ 8 $ — Lease termination 1,181 133 (674 ) 14 654 Ending balance $ 1,903 $ 182 $ (1,453 ) $ 22 $ 654 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for an asset or the price that would be paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard provides a framework for measuring fair value using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities; 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; and Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments consist primarily of cash and cash equivalents and interest rate cap derivatives designated as cash flow hedging instruments. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2016 As of December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Level 3 Total Balance Assets Money market funds (1) $ 3,751 $ — $ — $ 3,751 $ 4,587 $ — $ — $ 4,587 Interest rate cap hedges (2) — 553 — 553 — 963 — 963 Total Assets $ 3,751 $ 553 $ — $ 4,304 $ 4,587 $ 963 $ — $ 5,550 (1) Included as cash and cash equivalents. (2) Interest rate cap hedge premium included as other current assets and other assets. The fair value of the interest rate cap hedge agreements is determined using pricing models that use observable market inputs as of the balance sheet date, a Level 2 measurement. There were no transfers between Level 1, Level 2, or Level 3 financial instruments in either 2016 or 2015. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Derivative Instruments and Hedging Activities We periodically enter into cash flow derivative transactions, such as interest rate cap agreements, to hedge exposure to various risks related to interest rates. We assess the effectiveness of the interest rate cap hedges at inception of the hedge. We recognize all derivatives at their fair value. For cash flow designated hedges, the effective portion of the changes in fair value of the derivative contract are recorded in accumulated other comprehensive income (loss), net of taxes, and are recognized in net earnings at the time earnings are affected by the hedged transaction. Adjustments to record changes in fair values of the derivative contracts that are attributable to the ineffective portion of the hedges, if any, are recognized in earnings. We present derivative instruments in our consolidated statements of cash flows’ operating, investing, or financing activities consistent with the cash flows of the hedged item. Our interest rate cap hedges were designated as cash flow hedges and deemed highly effective at the inception of the hedges. These interest rate cap hedges mature concurrently with the term loan in June 2020. In 2016, the interest rate cap hedges continued to be highly effective and $0.3 million , net of tax, was recognized in other comprehensive income. No amount was recorded in the consolidated statements of operations in 2016. See Note 9. The recorded fair value of the derivative financial instruments in the consolidated balance sheets were as follows: (In thousands) December 31, 2016 (In thousands) Other Current Assets Other Long Term Assets Other Current Assets Other Long Term Assets Derivatives Designated as Hedging Instruments Cash Flow Hedges: Interest rate cap premiums $ — $ 553 $ 1 $ 962 Total Derivatives $ — $ 553 $ 1 $ 962 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (In thousands) December 31, 2016 2015 Raw materials and supplies $ 64,650 $ 61,840 Work in process 56,806 49,299 Finished goods 9,180 10,073 130,636 121,212 Less progress payments 10,740 5,808 Total $ 119,896 $ 115,404 We net progress payments from customers related to inventory purchases against inventories on the consolidated balance sheets. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following: (In thousands) December 31, Range of Estimated 2016 2015 Useful Lives Land $ 15,662 $ 15,454 Buildings and improvements 49,870 44,313 5 - 40 Years Machinery and equipment 137,555 127,934 2 - 20 Years Furniture and equipment 21,749 24,187 2 - 10 Years Construction in progress 12,238 13,196 237,074 225,084 Less accumulated depreciation 135,484 128,533 Total $ 101,590 $ 96,551 Depreciation expense was $13.3 million , $15.7 million and $15.3 million , for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2016 and 2015 were as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun Gross goodwill $ 57,243 $ 182,048 $ 239,291 Accumulated goodwill impairment (57,243 ) (81,722 ) (138,965 ) Transfer to assets held for sale — (17,772 ) (17,772 ) Balance at December 31, 2015 $ — $ 82,554 $ 82,554 Balance at December 31, 2016 $ — $ 82,554 $ 82,554 We perform our annual goodwill impairment test during the fourth quarter each year. In the fourth quarter of 2016, the carrying amount of goodwill at the date of the most recent annual impairment test was $82.6 million , all of which was in our Electronic Systems operating segment. In performing our annual goodwill impairment test in the fourth quarter of 2016, the fair value of our Electronic Systems internal reporting unit exceeding its carrying value by 32% and thus, not deemed impaired. In the fourth quarter of 2015, we met the criteria for assets held for sale for our Pittsburgh, Pennsylvania (“Pittsburgh”) operation and Miltec (“Miltec”) operation (both are part of our Electronic Systems operating segment). Assets held for sale, other than goodwill, is tested for impairment prior to the testing of goodwill for impairment. No impairment was noted of these assets held for sale. Our Pittsburgh operation and Miltec operation were sold in January 2016 and March 2016, respectively. As of the date of the 2015 annual goodwill impairment test, the fair value of the Electronic Systems and Miltec internal reporting units exceeded their carrying values by 42% and 18% , respectively, and thus, not deemed impaired. However, the fair value of the Structural Systems reporting unit was less than the carrying value as a result of the lowered revenue outlook in our military and space end-use markets due to the decrease in U.S. government defense spending. As a result, the second step (“Step Two”) of the goodwill impairment test was performed for the Structural Systems reporting unit. The implied fair value of goodwill was determined by allocating the fair value of the tangible and intangible assets and liabilities in a manner similar to a purchase price allocation. As a result of this analysis, we recorded $57.2 million of goodwill impairment thereby reducing the Structural Systems operating segment’s its goodwill carrying value to zero as of December 31, 2015. In the fourth quarter of 2015, the carrying value of the trade-name indefinite-lived intangible asset at the date of the impairment test was approximately $32.9 million . In performing our annual impairment test in the fourth quarter of 2015, we concluded the fair value of the indefinite-lived trade name to be zero as a result of divesting businesses in Electronic Systems and our discontinuation of the use of the trade name. Thus, we recorded an impairment of approximate $32.9 million , which was the remaining carrying value of the trade name. Other Intangible Assets Other intangible assets are related to acquisitions and recorded at fair value at the time of the acquisition. Other intangible assets with finite lives are generally amortized on the straight-line method over periods ranging from fourteen to eighteen years. Intangible assets are as follows: (In thousands) December 31, 2016 December 31, 2015 Wtd. Avg Life (Yrs) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived assets Customer relationships 18 $ 159,200 $ 58,352 $ 100,848 $ 159,200 $ 49,463 $ 109,737 Contract renewal 14 1,845 1,362 483 1,845 1,230 615 Technology 15 400 158 242 400 131 269 Total $ 161,445 $ 59,872 $ 101,573 $ 161,445 $ 50,824 $ 110,621 The carrying amount of other intangible assets by operating segment as of December 31, 2016 and 2015 was as follows: (In thousands) December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Structural Systems $ 19,300 $ 15,555 $ 3,745 $ 19,300 $ 14,433 $ 4,867 Electronic Systems 142,145 44,317 97,828 142,145 36,391 105,754 Total $ 161,445 $ 59,872 $ 101,573 $ 161,445 $ 50,824 $ 110,621 Amortization expense of other intangible assets was $9.0 million , $10.0 million and $10.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Future amortization expense by operating segment is expected to be as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun 2017 $ 907 $ 7,927 $ 8,834 2018 737 7,927 8,664 2019 591 7,926 8,517 2020 490 7,883 8,373 2021 381 7,794 8,175 Thereafter 639 58,371 59,010 $ 3,745 $ 97,828 $ 101,573 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities consisted of the following: (In thousands) December 31, 2016 2015 Accrued compensation $ 15,455 $ 13,521 Accrued income tax and sales tax 332 1,513 Customer deposits 3,204 1,758 Interest payable 273 58 Provision for forward loss reserves 4,780 11,925 Other 5,235 7,683 Total $ 29,279 $ 36,458 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt and the current period interest rates were as follows: (In thousands) December 31, 2016 2015 Term loan $ 170,000 $ 245,000 Other debt (fixed 5.41%) 3 26 Total debt 170,003 245,026 Less current portion 3 26 Total long-term debt 170,000 245,000 Less debt issuance costs 3,104 4,339 Total long-term debt, net of debt issuance costs $ 166,896 $ 240,661 Weighted-average interest rate 3.25 % 3.07 % Future long-term debt payments at December 31, 2016 were as follows: (In thousands) 2017 $ 3 2018 — 2019 — 2020 170,000 2021 — Total $ 170,003 In June 2015, we completed a new credit facility to replace the Existing Credit Facilities. The new credit facility consists of a $275.0 million senior secured term loan, which matures on June 26, 2020 (“Term Loan”), and a $200.0 million senior secured revolving credit facility (“Revolving Credit Facility”), which matures on June 26, 2020 (collectively, the “Credit Facilities”). The Credit Facilities bear interest, at our option, at a rate equal to either (i) the Eurodollar Rate (defined as LIBOR) plus an applicable margin ranging from 1.50% to 2.75% per year or (ii) the Base Rate (defined as the highest of [a] Federal Funds Rate plus 0.50% , [b] Bank of America’s prime rate, and [c] the Eurodollar Rate plus 1.00% ) plus an applicable margin ranging from 0.50% to 1.75% per year, in each case based upon the consolidated total net adjusted leverage ratio. The undrawn portions of the commitments of the Credit Facilities are subject to a commitment fee ranging from 0.175% to 0.300% , based upon the consolidated total net adjusted leverage ratio. Further, we are required to make mandatory prepayments of amounts outstanding under the Term Loan. The mandatory prepayments will be made quarterly, equal to 5.0% per year of the original aggregate principal amount during the first two years and increase to 7.5% per year during the third year, and increase to 10.0% per year during the fourth year and fifth years, with the remaining balance payable on June 26, 2020. The loans under the Revolving Credit Facility are due on June 26, 2020. As of December 31, 2016, we were in compliance with all covenants required under the Credit Facilities. We have been making voluntary principal prepayments on a quarterly basis on our senior secured term loan and in conjunction with the closing of the Credit Facilities in June 2015, we drew down $65.0 million on the Revolving Credit Facility and used those proceeds along with current cash on hand to extinguish the existing senior secured term loan of $80.0 million . We expensed the unamortized debt issuance costs related to the existing senior secured term loan of $2.8 million as part of extinguishing the existing senior secured term loan during 2015. We also incurred $4.8 million of debt issuance costs related to the Credit Facilities and those costs are capitalized and being amortized over the five year life of the Credit Facilities. In addition, we retired all of the $200.0 million senior unsecured notes (“Existing Notes”) in July 2015. We drew down on the Term Loan in the amount of $275.0 million . Along with the call notice amount and paying the call premium of $9.8 million , we also paid down the $65.0 million drawn on the Revolving Credit Facility in June 2015. We expensed the call premium of $9.8 million and debt issuance costs related to the Existing Notes of $2.1 million upon extinguishing the Existing Notes during 2015. We made voluntary principal prepayments of $75.0 million under the Term Loan during 2016. As of December 31, 2016, we had $199.0 million of unused borrowing capacity under the Revolving Credit Facility, after deducting $1.0 million for standby letters of credit. The Existing Notes were issued by us (“Parent Company”) and guaranteed by all of our subsidiaries, other than one subsidiary that was considered minor (“Subsidiary Guarantors”). The Subsidiary Guarantors jointly and severally guarantee the Existing Notes and Credit Facilities. The Parent Company has no independent assets or operations and therefore, no consolidating financial information for the Parent Company and its subsidiaries are presented. In October 2015, we entered into interest rate cap hedges designated as cash flow hedges with maturity dates of June 2020, and in aggregate, totaling $135.0 million of our debt. We paid a total of $1.0 million in connection with the interest rate cap hedges. See Note 4 for further information. In December 2016, we entered into an agreement to purchase $9.9 million of industrial revenue bonds (“IRBs”) issued by the city of Parsons, Kansas (“Parsons”) and concurrently, sold $9.9 million of property and equipment (“Property”) to Parsons as well as entered into a lease agreement to lease the Property from Parsons (“Lease”) with lease payments totaling $9.9 million over the lease term. The sale of the Property and concurrent lease back of the Property did not meet the sale-leaseback accounting requirements as a result of our continuous involvement with the Property and thus, the $9.9 million in cash received from Parsons was not recorded as a sale but as a financing obligation. Further, the Lease included a right of offset and thus, the financing obligation of $9.9 million was offset against the $9.9 million of IRBs assets and presented net on the consolidated balance sheets with no impact to the consolidated statements of operations or consolidated cash flow statements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity We are authorized to issue five million shares of preferred stock. At December 31, 2016 and 2015 , no preferred shares were issued or outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Compensation Plans We have two stock incentive plans: the 2007 Stock Incentive Plan (the “2007 Plan”), as amended effective March 20, 2007, and the 2013 Stock Incentive Plan (the “2013 Plan”), collectively referred to as (the “Stock Incentive Plans”). The Stock Incentive Plans permit awards of stock options, restricted stock units, performance stock units and other stock-based awards to our officers, key employees and non-employee directors on terms determined by the Compensation Committee of the Board of Directors (the “Committee”). The aggregate number of shares available for issuance under the 2007 Plan and 2013 Plan is 1,200,000 and 1,040,000 , respectively. Under the 2007 Plan, no more than an aggregate of 400,000 shares are available for issue of stock-based awards other than stock options and stock appreciation rights. As of December 31, 2016 , shares available for future grant under the 2007 Plan and 2013 Plan are 78,417 and 320,172 , respectively. Prior the adoption of the 2007 Plan, we granted stock-based awards to purchase shares of our common stock to officers, key employees and non-employee directors under certain predecessor plans. No further awards can be granted under these predecessor plans. Stock Options In the years ended December 31, 2016 , 2015, and 2014, we granted stock options to our officers, key employees and non-employee directors of 123,500 , 73,000 , and 71,000 , respectively, with weighted-average grant date fair values of $6.53 , $10.63 , and $12.62 , respectively. Stock options have been granted with an exercise price equal to the fair market value of our stock on the date of grant and expire not more than seven years from the date of grant. The stock options typically vest over a period of four years from the date of grant. The option price and number of shares are subject to adjustment under certain dilutive circumstances. If an employee terminates employment, the non-vested portion of the stock options will not vest and all rights to the non-vested portion will terminate completely. Stock option activity for the year ended December 31, 2016 were as follows: Number of Stock Options Weighted- Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2016 483,491 $ 20.08 Granted 123,500 $ 15.92 Exercised (132,325 ) $ 16.04 Expired (19,516 ) $ 22.66 Forfeited (15,600 ) $ 18.54 Outstanding at December 31, 2016 439,550 $ 20.07 4.4 $ 2,414 Exerciseable at December 31, 2016 214,375 $ 20.24 3.3 $ 1,141 Changes in nonvested stock options for the year ended December 31, 2016 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2016 231,600 $ 10.03 Granted 123,500 $ 6.53 Vested (114,325 ) $ 7.95 Forfeited (15,600 ) $ 8.08 Nonvested at December 31, 2016 225,175 $ 8.77 The aggregate intrinsic value of stock options represents the amount by which the market price of our common stock exceeds the exercise price of the stock option. The aggregate intrinsic value of stock options exercised for the years ended December 31, 2016 , 2015 and 2014 was $1.3 million , $2.3 million , and $1.0 million , respectively. Cash received from stock options exercised for the years ended December 31, 2016 , 2015 and 2014 was $2.1 million , $3.1 million , and $2.3 million , respectively, with related tax benefits of $0.5 million , $0.9 million , and $0.4 million , respectively. The total amount of stock options vested and expected to vest in the future is 439,550 shares with a weighted-average exercise price of $20.07 and an aggregate intrinsic value of $2.4 million . These stock options have a weighted-average remaining contractual term of 4.4 years. The share-based compensation cost expensed for stock options for the years ended December 31, 2016 , 2015 , and 2014 (before tax benefits) was $0.8 million , $1.2 million , and $1.5 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2016 , total unrecognized compensation cost (before tax benefits) related to stock options of $1.3 million is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of stock options vested during the years ended December 31, 2016 , 2015 , and 2014 was $0.9 million , $1.3 million , and $1.3 million , respectively. We apply fair value accounting for stock-based compensation based on the grant date fair value estimated using a Black-Scholes-Merton (“Black-Scholes”) valuation model. The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Risk-free interest rate 1.20 % 1.13 % 1.67 % Expected volatility 51.79 % 53.72 % 55.27 % Expected dividends — — — Expected term (in months) 48 47 66 We recognize compensation expense, net of an estimated forfeiture rate, on a straight-line basis over the requisite service period of the award. We have one award population with an option vesting term of four years. We estimate the forfeiture rate based on our historic experience, attempting to determine any discernible activity patterns. The expected life computation is based on historic exercise patterns and post-vesting termination behavior. The risk-free interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The expected volatility is derived from historical volatility of our common stock. We suspended payments of dividends after the first quarter of 2011. Restricted Stock Units We granted restricted stock units (“RSUs”) to certain officers, key employees and non-employee directors of 139,450 , 108,500 , and 86,300 RSUs during the years ended December 31, 2016 , 2015 , and 2014 , respectively, with weighted-average grant date fair values (equal to the fair market value of our stock on the date of grant) of $15.97 , $25.15 , and $24.74 per share, respectively. RSUs represent a right to receive a share of stock at future vesting dates with no cash payment required from the holder. The RSUs have a three year vesting term of 33% , 33% and 34% on the first, second and third anniversaries of the date of grant, respectively. If an employee terminates employment, their non-vested portion of the RSUs will not vest and all rights to the non-vested portion will terminate. Restricted stock unit activity for the year ended December 31, 2016 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 155,191 $ 24.24 Granted 139,450 15.97 Vested (84,107 ) 23.34 Forfeited (17,152 ) 21.76 Outstanding at December 31, 2016 193,382 $ 18.88 The share-based compensation cost expensed for RSUs for the years ended December 31, 2016 , 2015 , and 2014 (before tax benefits) was $1.8 million , $1.8 million , and $1.3 million respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2016 , total unrecognized compensation cost (before tax benefits) related to RSUs of $2.2 million is expected to be recognized over a weighted average period of 1.7 years. The total fair value of RSUs vested for the years ended December 31, 2016 , 2015 , and 2014 was $1.3 million , $1.8 million , and $1.3 million , respectively. The tax benefit realized from vested RSUs for the years ended December 31, 2016 , 2015 , and 2014 was $0.7 million , $0.7 million , and $0.5 million , respectively. Performance Stock Units We granted performance stock awards (“PSUs”) to certain key employees of 62,500 , 64,000 , and 67,500 PSUs during the years ended December 31, 2016 , 2015 , and 2014 , respectively, with weighted-average grant date fair values of $15.92 , $25.51 , and $24.90 per share, respectively. PSU awards are subject to the attainment of performance goals established by the Committee, the periods during which performance is to be measured, and all other limitations and conditions applicable to the awarded shares. Performance goals are based on a pre-established objective formula that specifies the manner of determining the number of performance stock awards that will be granted if performance goals are attained. If an employee terminates employment, their non-vested portion of the PSUs will not vest and all rights to the non-vested portion will terminate. Performance stock activity for the year ended December 31, 2016 was as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 133,497 $ 22.86 Granted 62,500 15.92 Vested (44,979 ) 18.36 Forfeited (29,381 ) 25.22 Outstanding at December 31, 2016 121,637 $ 20.39 The share-based compensation cost expensed for PSUs for the years ended December 31, 2016 , 2015 , and 2014 (before tax benefits) was $0.4 million , $0.5 million and $1.0 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2016 , total unrecognized compensation cost (before tax benefits) related to PSUs of $1.1 million is expected to be recognized over a weighted-average period of 1.3 years. The total fair value of PSUs vested during the years ended December 31, 2016 , 2015 , and 2014 , was $1.1 million , $0.9 million, and zero , respectively. The tax benefit realized from PSUs for the years ended December 31, 2016 , 2015 , and 2014 were $0.2 million , 0.3 million, and zero , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Supplemental Retirement Plans We have three unfunded supplemental retirement plans. The first plan was suspended in 1986 , but continues to cover certain former executives. The second plan was suspended in 1997 , but continues to cover certain current and retired directors. The third plan covers certain current and retired employees and further employee contributions to this plan were suspended on August 5, 2011 . The liability for the third plan and interest thereon is included in accrued employee compensation and long-term liabilities and was $0.6 million and $0.8 million , respectively, at December 31, 2016 and $0.5 million and $1.7 million , respectively, at December 31, 2015 . The accumulated benefit obligations of the first two plans at December 31, 2016 and December 31, 2015 were $1.1 million and $0.9 million , respectively, and are included in accrued liabilities. Defined Contribution 401(K) Plans We sponsor a 401(k) defined contribution plan for all our employees. The plan allows the employees to make annual voluntary contributions not to exceed the lesser of an amount equal to 25% of their compensation or limits established by the Internal Revenue Code. Under this plan, we generally provide a match equal to 50% of the employee’s contributions up to the first 6% of compensation, except for union employees who are not eligible to receive the match. Our provision for matching and profit sharing contributions for the three years ended December 31, 2016 , 2015 , and 2014 was $2.7 million , $3.2 million , and $3.3 million , respectively. Other Plans We have a defined benefit pension plan covering certain hourly employees of a subsidiary (the “Pension Plan”). Pension Plan benefits are generally determined on the basis of the retiree’s age and length of service. Assets of the Pension Plan are composed primarily of fixed income and equity securities. We also have a retirement plan covering certain current and retired employees (the “LaBarge Retirement Plan”). The components of net periodic pension cost for both plans are as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Service cost $ 531 $ 785 $ 693 Interest cost 1,367 1,350 1,278 Expected return on plan assets (1,482 ) (1,495 ) (1,400 ) Amortization of actuarial losses 762 887 419 Net periodic pension cost $ 1,178 $ 1,527 $ 990 The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for 2016 were as follows: (In thousands) Year Ended December 31, 2016 Amortization of actuarial loss - total before tax (1) $ 762 Tax benefit (283 ) Net of tax $ 479 (1) The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss. The estimated net actuarial loss for both plans that will be amortized from accumulated other comprehensive loss into net periodic cost during 2017 is $0.8 million . The obligations, fair value of plan assets, and funded status of both plans are as follows: (In thousands) December 31, 2016 2015 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 31,510 $ 33,299 Service cost 531 785 Interest cost 1,367 1,350 Actuarial loss (gain) 1,132 (2,599 ) Benefits paid (1,386 ) (1,325 ) Ending benefit obligation (December 31) $ 33,154 $ 31,510 Change in plan assets Beginning fair value of plan assets (January 1) $ 19,933 $ 19,725 Return on assets 1,551 (296 ) Employer contribution 1,917 1,829 Benefits paid (1,386 ) (1,325 ) Ending fair value of plan assets (December 31) $ 22,015 $ 19,933 Funded status (underfunded) $ (11,139 ) $ (11,577 ) Amounts recognized in the consolidated balance sheet Current liabilities $ 545 $ 527 Non-current liabilities $ 10,595 $ 11,050 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 8,919 $ 10,614 Amortization (762 ) (887 ) Liability (gain) loss 1,132 (2,599 ) Asset (loss) gain (69 ) 1,791 Ending unrecognized loss, before tax (December 31) 9,220 8,919 Tax impact (3,425 ) (3,316 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 5,795 $ 5,603 (1) Projected benefit obligation equals the accumulated benefit obligation for the plans. On December 31, 2016 , our annual measurement date, the accumulated benefit obligation exceeded the fair value of the plans assets by $11.1 million . Such excess is referred to as an unfunded accumulated benefit obligation. We recorded unrecognized loss included in accumulated other comprehensive loss, net of tax at December 31, 2016 and 2015 of $5.8 million and $5.6 million , respectively, which decreased shareholders’ equity. This charge to shareholders’ equity represents a net loss not yet recognized as pension expense. This charge did not affect reported earnings, and would be decreased or be eliminated if either interest rates increase or market performance and plan returns improve which will cause the Pension Plan to return to fully funded status. Our Pension Plan asset allocations at December 31, 2016 and 2015 , by asset category, were as follows: December 31, 2016 2015 Equity securities 65 % 74 % Cash and equivalents 2 % 6 % Debt securities 33 % 20 % Total (1) 100 % 100 % (1) Our overall investment strategy is to achieve an asset allocation within the following ranges to achieve an appropriate rate of return relative to risk. Cash 0-5% Fixed income securities 0-25% Equities 25-95% Pension Plan assets consist primarily of listed stocks and bonds and do not include any of the Company’s securities. The return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. We select the return on asset assumption by considering our current and target asset allocation. We consider information from various external investment managers, forward-looking information regarding expected returns by asset class and our own judgment when determining the expected returns. (In thousands) Year Ended December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 366 $ — $ — $ 366 Fixed income securities 3,468 — — 3,468 Equities (1) 1,611 — — 1,611 Other investments 760 — — 760 Total plan assets at fair value $ 6,205 $ — $ — 6,205 Pooled funds 15,810 Total fair value of plan assets $ 22,015 (In thousands) Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 1,149 $ — $ — $ 1,149 Fixed income securities 3,986 — — 3,986 Equities (1) 9,468 — — 9,468 Other investments — — — — Total plan assets at fair value $ 14,603 $ — $ — 14,603 Pooled funds 5,330 Total fair value of plan assets $ 19,933 (1) Represents mutual funds and commingled accounts which invest primarily in equities, but may also hold fixed income securities, cash and other investments. Commingled funds with publicly quoted prices and actively traded are classified as Level 1 investments. Pooled funds are measured using the net asset value (“NAV”) as a practical expedient for fair value as permissible under the accounting standard for fair value measurements and have not been categorized in the fair value hierarchy in accordance with ASU 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” Pooled fund NAVs are provided by the trustee and are determined by reference to the fair value of the underlying securities of the trust, less its liabilities, which are valued primarily through the use of directly or indirectly observable inputs. Depending on the pooled fund, underlying securities may include marketable equity securities or fixed income securities. The assumptions used to determine the benefit obligations and expense for our two plans are presented in the tables below. The expected long-term return on assets, noted below, represents an estimate of long-term returns on investment portfolios consisting of a mixture of fixed income and equity securities. The estimated cash flows from the plans for all future years are determined based on the plans’ population at the measurement date. We used the expected benefit payouts from the plans for each year into the future and discounted them back to the present using the Wells Fargo yield curve rate for that duration. The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2016 2015 2014 Discount rate used to determine pension expense Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2016 2015 2014 Discount rate used to determine value of obligations Pension Plan 4.18 % 4.55 % 4.25 % LaBarge Retirement Plan 3.75 % 4.00 % 3.70 % Long-term rate of return - Pension Plan only 7.00 % 7.50 % 7.50 % The following benefit payments under both plans, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) Pension Plan LaBarge Retirement Plan 2017 $ 1,063 $ 545 2018 1,174 535 2019 1,215 521 2020 1,297 504 2021 1,369 485 2022 - 2026 7,862 2,079 Our funding policy is to contribute cash to our plans so that the minimum contribution requirements established by government funding and taxing authorities are met. We expect to make contributions of $0.9 million to the plans in 2017 . |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Guarantees and Indemnifications [Abstract] | |
Indemnifications | Indemnifications We have made guarantees and indemnities under which we may be required to make payments to a guaranteed or indemnified party, in relation to certain transactions, including revenue transactions in the ordinary course of business. In connection with certain facility leases, we have indemnified our lessors for certain claims arising from the facility or the lease. We indemnify our directors and officers to the maximum extent permitted under the laws of the State of Delaware. However, we have a directors and officers insurance policy that may reduce our exposure in certain circumstances and may enable us to recover a portion of future amounts that may be payable, if any. The duration of the guarantees and indemnities varies and, in many cases is indefinite but subject to statute of limitations. The majority of guarantees and indemnities do not provide any limitations of the maximum potential future payments we could be obligated to make. Historically, payments related to these guarantees and indemnities have been immaterial. We estimate the fair value of our indemnification obligations as insignificant based on this history and insurance coverage and have, therefore, not recorded any liability for these guarantees and indemnities in the accompanying consolidated balance sheets. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases We lease certain facilities and equipment for periods ranging from one to ten years. The leases generally are renewable and provide for the payment of property taxes, insurance and other costs relative to the property. Rental expense in 2016 , 2015 , and 2014 was $4.9 million , $8.5 million , and $7.3 million , respectively. Future minimum rental payments under operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2016 were as follows: (In thousands) 2017 $ 4,270 2018 3,505 2019 2,732 2020 2,492 2021 1,864 Thereafter 1,106 Total $ 15,969 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our pre-tax income attributable to foreign operations was not material. The provision for income tax expense (benefit) consisted of the following: (In thousands) Years Ended December 31, 2016 2015 2014 Current tax expense (benefit) Federal $ 5,953 $ (1,511 ) $ 5,258 State 2,982 (418 ) 244 8,935 (1,929 ) 5,502 Deferred tax expense (benefit) Federal 3,876 (28,011 ) 1,186 State 41 (1,771 ) (315 ) 3,917 (29,782 ) 871 Income tax expense (benefit) $ 12,852 $ (31,711 ) $ 6,373 The current income tax expense (benefit) excludes net (tax shortfalls) excess tax benefits recorded directly to additional paid-in-capital related to share-based compensation of $(0.1) million , $0.6 million , and $0.1 million for the years ended December 31, 2016, 2015, and 2014, respectively. Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2016 2015 Deferred tax assets: Accrued expenses $ 760 $ 1,363 Allowance for doubtful accounts 184 134 Contract overrun reserves 1,776 4,412 Deferred compensation 507 491 Employment-related accruals 2,888 2,463 Environmental reserves 769 772 Federal tax credit carryforwards 4,234 7,031 Inventory reserves 2,313 2,703 Investment in common stock — 297 Pension obligation 4,002 3,299 State net operating loss carryforwards 63 1,402 State tax credit carryforwards 6,585 5,937 Stock-based compensation 1,950 2,165 Workers’ compensation 122 133 Other 2,098 1,595 Total gross deferred tax assets 28,251 34,197 Valuation allowance (6,607 ) (7,477 ) Total gross deferred tax assets, net of valuation allowance 21,644 26,720 Deferred tax liabilities: Depreciation (13,167 ) (11,802 ) Goodwill (3,909 ) (3,632 ) Intangibles (35,071 ) (37,891 ) Prepaid insurance (626 ) (514 ) Section 481(a) adjustment — (682 ) Unbilled receivables (2 ) — Total gross deferred tax liabilities (52,775 ) (54,521 ) Net deferred tax liabilities $ (31,131 ) $ (27,801 ) We elected to early adopt ASU 2015-17, prospectively, beginning with the annual period ended December 31, 2015, which required that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The adoption of this new guidance had no impact on our results of operations or cash flows for 2015. We have net operating losses in various states of $1.7 million as of December 31, 2016. The state net operating loss carryforwards include $1.3 million that is not expected to be realized under ASC Subtopic 740-10 and has been reduced by a valuation allowance. If not realized, the state net operating loss carryforwards will begin to expire in 2032 . We have federal and state tax credit carryforwards of $4.9 million and $11.1 million , respectively, as of December 31, 2016. A valuation allowance of $10.1 million has been provided on state tax credit carryforwards that are not expected to be realized under ASC Subtopic 740-10. If not realized, the federal and state tax credit carryforwards will expire between 2017 and 2030 . We believe it is more likely than not that we will generate sufficient taxable income to realize the benefit of the remaining deferred tax assets. The principal reasons for the variation between the statutory and effective tax rates were as follows: Years Ended December 31, 2016 2015 2014 Statutory federal income tax (benefit) rate 35.0% (35.0)% 35.0% State income taxes (net of federal benefit) 5.7 (1.2) 0.9 Qualified domestic production activities (2.0) 0.5 (2.3) Research and development tax credits (8.6) (2.9) (11.3) Goodwill impairment — 8.1 — Changes in valuation allowance 0.9 0.6 8.5 Non-deductible book expenses 0.2 0.2 0.9 Changes in deferred tax assets 1.5 0.1 (5.0) Remeasurement of deferred taxes for changes in state tax law — — (1.9) Changes in tax reserves — 0.1 (0.7) Other 1.0 (0.2) 0.2 Effective income tax (benefit) rate 33.7% (29.7)% 24.3% The deduction for qualified domestic production activities is treated as a “special deduction” which has no effect on deferred tax assets and liabilities. Instead, the impact of this deduction is reported in our rate reconciliation. No deduction for qualified domestic production has been recognized in 2015 due to a taxable loss. The loss has been carried back to 2014 and 2013, reducing the deduction for qualified domestic production in those years. We recorded a goodwill impairment charge related to the Structural Systems operating segment in 2015. A portion of this goodwill impairment charge was nondeductible for tax purposes and was a permanent impact to our income tax provision of $8.7 million . On December 18, 2015, the President of the United States signed into law the Protecting Americans from Tax Hikes Act (“PATH”). The PATH Act permanently extended the research and development credit. As a result, we recorded a benefit of $2.2 million and $2.6 million for the U.S. Federal R&D credit in 2016 and 2015, respectively. In December 2014, the federal research and development tax credit was retroactively extended from the beginning of 2014. We recorded total federal research and development tax credits of $2.4 million in 2014. Our total amount of unrecognized tax benefits was $3.0 million , $3.0 million , and $2.8 million at December 31, 2016 , 2015 , and 2014, respectively. We record interest and penalty charge, if any, related to uncertain tax positions as a component of tax expense and unrecognized tax benefits. The amounts accrued for interest and penalty charge as of December 31, 2016, 2015, and 2014 were not significant. If recognized, $2.0 million would affect the effective income tax rate. We do not reasonably expect significant increases or decreases to our unrecognized tax benefits in the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Balance at January 1, $ 2,963 $ 2,803 $ 2,297 Additions for tax positions related to the current year 476 702 668 Additions for tax positions related to prior years 385 — 31 Reductions for tax positions related to prior years (567 ) (48 ) (22 ) Reductions for lapse of statute of limitations (221 ) (494 ) (171 ) Balance at December 31, $ 3,036 $ 2,963 $ 2,803 We file U.S. Federal and state income tax returns. Federal income tax returns after 2012, California franchise (income) tax returns after 2011 and other state income tax returns after 2011 are subject to examination. We are no longer subject to examination prior to those periods, although carryforwards generated prior to those periods may still be adjusted upon examination by the Internal Revenue Service (“IRS”) or state taxing authority if they either have been or will be used in a subsequent period. During 2016, the IRS commenced an audit of our 2014 and 2015 tax years. Although the outcome of tax examinations cannot be predicted with certainty, we believe we have adequately accrued for tax deficiencies or reductions in tax benefits, if any, that could result from the examination as well as all open audit years. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies On October 8, 2014, the United States District Court for the District of Kansas (the “District Court”) granted summary judgment in favor of The Boeing Company (“Boeing”) and Ducommun and dismissed the lawsuit entitled United States of America ex rel Taylor Smith, Jeannine Prewitt and James Ailes v. The Boeing Company and Ducommun Inc. The lawsuit was a qui tam action brought by three former Boeing employees (“Relators”) against Boeing and Ducommun on behalf of the United States of America for violations of the United States False Claims Act. On June 13, 2016, the United States Court of Appeals for the Tenth Circuit affirmed the District Court’s decision and on July 8, 2016, denied Relators’ petition for rehearing. Structural Systems has been directed by California environmental agencies to investigate and take corrective action for groundwater contamination at its facilities located in El Mirage and Monrovia, California. Based on currently available information, Ducommun has established a reserve for its estimated liability for such investigation and corrective action of $1.5 million at December 31, 2016 , which is reflected in other long-term liabilities on its consolidated balance sheet. Structural Systems also faces liability as a potentially responsible party for hazardous waste disposed at landfills located in Casmalia and West Covina, California. Structural Systems and other companies and government entities have entered into consent decrees with respect to these landfills with the United States Environmental Protection Agency and/or California environmental agencies under which certain investigation, remediation and maintenance activities are being performed. Based on currently available information, Ducommun preliminarily estimates that the range of its future liabilities in connection with the landfill located in West Covina, California is between $0.4 million and $3.1 million . Ducommun has established a reserve for its estimated liability in connection with the West Covina landfill of $0.4 million at December 31, 2016 , which is reflected in other long-term liabilities on its consolidated balance sheet. Ducommun’s ultimate liability in connection with these matters will depend upon a number of factors, including changes in existing laws and regulations, the design and cost of construction, operation and maintenance activities, and the allocation of liability among potentially responsible parties. In the normal course of business, Ducommun and its subsidiaries are defendants in certain other litigation, claims and inquiries, including matters relating to environmental laws. In addition, Ducommun makes various commitments and incurs contingent liabilities. While it is not feasible to predict the outcome of these matters, Ducommun does not presently expect that any sum it may be required to pay in connection with these matters would have a material adverse effect on its consolidated financial position, results of operations or cash flows. |
Major Customers and Concentrati
Major Customers and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Major Customers and Concentrations of Credit Risk | Major Customers and Concentrations of Credit Risk We provide proprietary products and services to the Department of Defense and various United States Government agencies, and most of the aerospace and aircraft manufacturers who receive contracts directly from the U.S. Government as an original equipment manufacturer (“prime manufacturers”). In addition, we also service technology-driven markets in the industrial, medical and other end-use markets. As a result, we have significant net revenues from certain customers. Accounts receivable were diversified over a number of different commercial, military and space programs and were made by both operating segments. Net revenues from our top ten customers, including the Boeing Company (“Boeing”), Raytheon Company (“Raytheon”), Spirit AeroSystems Holdings, Inc. (“Spirit”), and United Technologies Corporation (“United Technologies”), represented the following percentages of total net sales: Years Ended December 31, 2016 2015 2014 Boeing 17.3 % 16.0 % 19.4 % Raytheon 8.4 % 8.7 % 9.4 % Spirit 8.2 % 7.4 % 6.4 % United Technologies 6.0 % 6.1 % 5.5 % Top ten customers (1) 58.6 % 55.7 % 59.2 % (1) Includes the Boeing, Raytheon, Spirit, and United Technologies. Boeing, Raytheon, Spirit, and United Technologies represented the following percentages of total accounts receivable: December 31, 2016 2015 Boeing 7.8 % 13.3 % Raytheon 10.9 % 11.5 % Spirit 9.0 % 7.1 % United Technologies 7.8 % 5.0 % In 2016 , 2015 and 2014 , net revenues from foreign customers based on the location of the customer were $56.4 million , $60.2 million and $66.7 million , respectively. No net revenues from a foreign country were greater than 3.0% of total net revenues in 2016 , 2015 , and 2014 . We have manufacturing facilities in Thailand and Mexico. Our net revenues, profitability and identifiable long-lived assets attributable to foreign revenues activity were not material compared to our net revenues, profitability and identifiable long-lived assets attributable to our domestic operations during 2016 , 2015 , and 2014 . We are not subject to any significant foreign currency risks as all our sales are made in United States dollars. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We supply products and services primarily to the aerospace and defense industries. Our subsidiaries are organized into two strategic businesses, Structural Systems and Electronic Systems, each of which is an operating segment as well as a reportable segment. Financial information by reportable segment was as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Net Revenues Structural Systems $ 246,465 $ 273,319 $ 319,956 Electronic Systems 304,177 392,692 422,089 Total Net Revenues $ 550,642 $ 666,011 $ 742,045 Segment Operating (Loss) Income (1) Structural Systems (2) $ 16,497 $ (53,010 ) $ 34,949 Electronic Systems (3) 28,983 (4,472 ) 34,599 45,480 (57,482 ) 69,548 Corporate General and Administrative Expenses (1)(4) (16,912 ) (17,827 ) (17,781 ) Operating (Loss) Income $ 28,568 $ (75,309 ) $ 51,767 Depreciation and Amortization Expenses Structural Systems $ 8,688 $ 9,417 $ 10,959 Electronic Systems 14,087 17,267 17,928 Corporate Administration 85 162 137 Total Depreciation and Amortization Expenses $ 22,860 $ 26,846 $ 29,024 Capital Expenditures Structural Systems $ 15,661 $ 11,559 $ 12,742 Electronic Systems 3,032 4,419 5,782 Corporate Administration — 10 30 Total Capital Expenditures $ 18,693 $ 15,988 $ 18,554 (1) Includes cost not allocated to either the Structural Systems or Electronic Systems operating segments. (2) The results for 2015 included $57.2 million of goodwill impairment charge. (3) The results for 2015 included $32.9 million of an intangible asset impairment charge. (4) The results for 2014 included $1.2 million of workers’ compensation insurance expenses included in gross profit and not allocated to the operating segments. Segment assets include assets directly identifiable with each segment. Corporate assets include assets not specifically identified with a business segment, including cash. The following table summarizes our segment assets for 2016 and 2015 : (In thousands) December 31, 2016 2015 Total Assets Structural Systems $ 175,580 $ 179,134 Electronic Systems 325,780 363,227 Corporate Administration 14,069 14,720 Total Assets $ 515,429 $ 557,081 Goodwill and Intangibles Structural Systems $ 3,745 $ 4,866 Electronic Systems 180,382 207,595 Total Goodwill and Intangibles $ 184,127 $ 212,461 In the first quarter of 2016, we entered into and completed the sale of our Pittsburgh, Pennsylvania and Miltec operations, both of which were part of our Electronic Systems operating segment. See Note 1 for additional information. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data (Unaudited) | Supplemental Quarterly Financial Data (Unaudited) (In thousands, except per share amounts) Three Months Ended 2016 Three Months Ended 2015 Dec 31 Oct 1 Jul 2 Apr 2 Dec 31 Oct 3 Jul 4 Apr 4 Net Revenues $ 142,486 $ 132,571 $ 133,437 $ 142,148 $ 156,576 $ 161,670 $ 174,845 $ 172,920 Gross Profit 27,786 25,223 26,215 26,969 22,796 20,028 31,207 26,761 Income (Loss) Before Taxes 5,825 6,248 5,331 20,709 (90,170 ) (16,447 ) 3,061 (3,034 ) Income Tax Expense (Benefit) 2,989 1,234 1,470 7,159 (24,997 ) (6,932 ) 1,279 (1,061 ) Net Income (Loss) $ 2,836 $ 5,014 $ 3,861 $ 13,550 $ (65,173 ) $ (9,515 ) $ 1,782 $ (1,973 ) Earnings (Loss) Per Share Basic earnings (loss) per share $ 0.25 $ 0.45 $ 0.35 $ 1.22 $ (5.88 ) $ (0.86 ) $ 0.16 $ (0.18 ) Diluted earnings (loss) per share $ 0.25 $ 0.44 $ 0.34 $ 1.21 $ (5.88 ) $ (0.86 ) $ 0.16 $ (0.18 ) In the first quarter of 2016, we entered into and completed the sale of our Pittsburgh, Pennsylvania and Miltec operations, both of which were part of our Electronic Systems operating segment. We recorded a preliminary pre-tax gain of $18.8 million . See Note 1 for additional information. In the fourth quarter of 2015, we recorded a goodwill impairment charge in our Structural Systems operating segment of $57.2 million . In addition, we recorded an intangible asset impairment charge in our Electronic Systems operating segment of $32.9 million related to the write off an indefinite-lived trade name intangible asset. In the third quarter of 2015, we recorded loss on extinguishment of debt of $11.9 million which was made up of the call premium to retire the existing $200.0 million senior unsecured notes in July 2015 of $9.8 million and the write off of the unamortized debt issuance costs associated with the existing $200.0 million senior unsecured notes of $2.1 million . Also in the third quarter of 2015, we recorded a charge in our Structural Systems operating segment related to estimated cost overruns as a result of a change in the contract requirements for the remaining contractual period for a regional jet program of $10.0 million . This amount was recorded as part of cost of goods sold in our results of operations and increased accrued liabilities by $7.6 million and other long-term liabilities by $2.4 million . In the second quarter of 2015, we recorded loss on extinguishment of debt of $2.8 million which was made up of the write off of the unamortized debt issuance costs associated with the existing senior secured term loan and existing senior secured revolving credit facility when the existing senior secured term loan was paid off in June 2015 and both were replaced with the Credit Facilities. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | DUCOMMUN INCORPORATED AND SUBSIDIARIES CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2016, 2015, AND 2014 (in thousands) SCHEDULE II Description Balance at Beginning of Period Charged to Costs and Expenses (1) Deductions Balance at End of Period 2016 Allowance for Doubtful Accounts $ 359 $ 233 $ 97 $ 495 Valuation Allowance on Deferred Tax Assets 7,477 (870 ) — 6,607 2015 Allowance for Doubtful Accounts (1) $ 252 $ 235 $ 128 $ 359 Valuation Allowance on Deferred Tax Assets 6,882 595 — 7,477 2014 Allowance for Doubtful Accounts $ 489 $ 166 $ 403 $ 252 Valuation Allowance on Deferred Tax Assets 4,650 2,232 — 6,882 (1) Included amount that was part of assets held for sale. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business We are a leading global provider of engineering and manufacturing services for high-performance products and high-cost-of failure applications used primarily in the aerospace, defense, industrial, medical, and other industries. Our subsidiaries are organized into two primary businesses: Electronic Systems segment and Structural Systems segment, each of which is a reportable operating segment. Electronic Systems designs, engineers and manufactures high-reliability products used in worldwide technology-driven markets including aerospace, defense, industrial, medical, and other end-use markets. Electronic Systems’ product offerings range from prototype development to complex assemblies. Structural Systems designs, engineers and manufactures large, complex contoured aerospace structural components and assemblies and supplies composite and metal bonded structures and assemblies. Structural Systems’ products are used on commercial aircraft, military fixed-wing aircraft and military and commercial rotary-wing aircraft. All reportable operating segments follow the same accounting principles. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Ducommun Incorporated and its subsidiaries (“Ducommun,” the “Company,” “we,” “us” or “our”), after eliminating intercompany balances and transactions. In the opinion of management, all adjustments, consisting of recurring accruals, have been made that are necessary to fairly state our consolidated financial position, results of operations, comprehensive income (loss) and cash flows in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates Certain amounts and disclosures included in the consolidated financial statements required management to make estimates and judgments that affect the amount of assets, liabilities (including forward loss reserves), revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to current year’s presentation. |
Fair Value | Fair Value We measure certain assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. See Note 3 for further information. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid instruments purchased with original maturities of three months or less .These assets are valued at cost, which approximates fair value, which we classify as Level 1. See Fair Value above. |
Derivative Instruments | Derivative Instruments We recognize derivative instruments on our consolidated balance sheets at their fair value. On the date that we enter into a derivative contract, we designate the derivative instrument as a fair value hedge, a cash flow hedge, a hedge of a net investment in a foreign operation, or a derivative instrument that will not be accounted for using hedge accounting methods. As of December 31, 2016 and December 31, 2015, all of our derivative instruments were designated as cash flow hedges. We record changes in the fair value of a derivative instrument that is highly effective and that is designated and qualifies as a cash flow hedge in other comprehensive income (loss), net of tax until our earnings are affected by the variability of cash flows of the underlying hedge. We record any hedge ineffectiveness and amounts excluded from effectiveness testing in current period earnings within interest expense. We report changes in the fair values of derivative instruments that are not designated or do not qualify for hedge accounting in current period earnings. We classify cash flows from derivative instruments on the consolidated statements of cash flows in the same category as the item being hedged or on a basis consistent with the nature of the instrument. When we determine that a derivative instrument is not highly effective as a hedge, we discontinue hedge accounting prospectively. In all situations in which we discontinue hedge accounting and the derivative instrument remains outstanding, we will carry the derivative instrument at its fair value on our consolidated balance sheets and recognize subsequent changes in its fair value in our current period earnings. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses from the inability of customers to make required payments. The allowance for doubtful accounts is evaluated periodically based on the aging of accounts receivable, the financial condition of customers and their payment history, historical write-off experience and other assumptions, such as current assessment of economic conditions. |
Inventories | Inventories Inventories are stated at the lower of cost or market with cost being determined using a moving average cost basis for raw materials and actual cost for work-in-process and finished goods, with units being relieved from inventory and charged to cost of sales on a first-in, first-out basis. Market value for raw materials is based on replacement cost and for other inventory classifications it is based on net realizable value. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) incurred. Costs under long-term contracts are accumulated into, and removed from, inventory on the same basis as other contracts. We assess the inventory carrying value and record write-downs, if necessary, to its net realizable value based on customer orders on hand, and internal demand forecasts using management’s best estimates given information currently available. We maintain a reserve for excess and obsolete inventories and inventories that are carried at costs that are higher than their estimated net realizable values. We net progress payments from customers related to inventory purchases against inventories in the consolidated balance sheets. |
Production Cost of Contracts | Production Cost of Contracts Production cost of contracts includes non-recurring production costs, such as design and engineering costs, and tooling and other special-purpose machinery necessary to build parts as specified in a contract. Production costs of contracts are recorded to cost of goods sold using the units of delivery method. We review long-lived assets within production costs of contracts for impairment on an annual basis (which we perform during the fourth quarter) or when events or changes in circumstances indicate that the carrying value of our long-lived assets may not be recoverable. An impairment charge is recognized when the carrying value of an asset exceeds the projected undiscounted future cash flows expected from its use and disposal. |
Assets Held For Sale | Assets Held For Sale In the fourth quarter of 2015, we made the decision to sell our Huntsville, Alabama and Iuka, Mississippi (collectively, “Miltec”) operations and our Pittsburgh, Pennsylvania operation, both of which are part of our Electronic Systems operating segment, and as a result, we met the criteria for assets held for sale. However, the proposed sale of these two operations did not represent a strategic shift in our business and thus, were included in the ongoing operating results in the consolidated statements of operations for all periods presented. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment, including assets recorded under capital leases, are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, or the lease term if shorter for leasehold improvements. Repairs and maintenance are charged to expense as incurred. We evaluate long-lived assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses if any, based upon the fair value of the assets. |
Goodwill and Indefinite-Lived Intangible Asset | Goodwill and Indefinite-Lived Intangible Asset Goodwill is tested for impairment utilizing a two-step method. In the first step, we determine the fair value of the reporting unit using expected future discounted cash flows and market valuation approaches considering comparable Company revenue and Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) multiples. If the carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of the goodwill impairment loss, if any. The second step requires fair valuation of all the reporting unit’s assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill. This residual fair value of goodwill is then compared to the carrying value of goodwill to determine impairment. An impairment charge will be recognized equal to the excess of the carrying value of goodwill over the implied fair value of goodwill. In 2015, as a result of the annual goodwill impairment test, we recorded $57.2 million of goodwill impairment to the Structural Systems operating segment reducing the goodwill carrying value to zero as of December 31, 2015. See Note 7 for further information. |
Other Intangible Assets | Other Intangible Assets We amortize purchased other intangible assets with finite lives over the estimated economic lives of the assets, ranging from fourteen to eighteen years generally using the straight-line method. The value of other intangibles acquired through business combinations has been estimated using present value techniques which involve estimates of future cash flows. We evaluate other intangible assets for recoverability considering undiscounted cash flows, when significant changes in conditions occur, and recognize impairment losses, if any, based upon the estimated fair value of the assets. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss, as reflected in the consolidated balance sheets under the equity section, was composed of cumulative pension and retirement liability adjustments, net of tax, and change in net unrealized gains and losses on cash flow hedges, net of tax. |
Revenue Recognition | Revenue Recognition Except as described below, we recognize revenue, including revenue from products sold under long-term contracts, when persuasive evidence of an arrangement exists, the price is fixed or determinable, collection is reasonably assured and delivery of products has occurred or services have been rendered. We have a significant number of contracts for which we recognize revenue under the contract method of accounting and record revenues and cost of sales on each contract in accordance with the percentage-of-completion method of accounting, using the units-of-delivery method. Under the units-of-delivery method, revenue is recognized based upon the number of units delivered during a period and the costs are recognized based on the actual costs allocable to the delivered units. Costs allocable to undelivered units are reported on the balance sheet as inventory. This method is used in circumstances in which a company produces units of a basic product under production-type contracts in a continuous or sequential production process to buyers’ specifications. These contracts are primarily fixed-price contracts that vary widely in terms of size, length of performance period, and expected gross profit margins. |
Provision for Estimated Losses on Contracts | Provision for Estimated Losses on Contracts We record provisions for the total anticipated losses on contracts considering total estimated costs to complete the contract compared to total anticipated revenues in the period in which such losses are identified. The provisions for estimated losses on contracts require management to make certain estimates and assumptions, including those with respect to the future revenue under a contract and the future cost to complete the contract. Management's estimate of the future cost to complete a contract may include assumptions as to improvements in manufacturing efficiency, reductions in operating and material costs, and our ability to resolve claims and assertions with our customers. If any of these or other assumptions and estimates do not materialize in the future, we may be required to record additional provisions for estimated losses on contracts. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized, using enacted tax rates, for the expected future tax consequences of temporary differences between the book and tax bases of recorded assets and liabilities, operating losses and tax credit carryforwards. Deferred tax assets are evaluated quarterly and are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax positions taken or expected to be taken in a tax return are recognized when it is more-likely-than-not, based on technical merits, to be sustained upon examination by taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement, including resolution of related appeals and/or litigation process, if any. We elected to early adopt ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” and on a prospective basis for the year ended December 31, 2015. |
Litigation and Commitments | Litigation and Commitments In the normal course of business, we are defendants in certain litigation, claims and inquiries, including matters relating to environmental laws. In addition, we make various commitments and incur contingent liabilities. Management’s estimates regarding contingent liabilities could differ from actual results. |
Environmental Liabilities | Environmental Liabilities Environmental liabilities are recorded when environmental assessments and/or remedial efforts are probable and costs can be reasonably estimated. Generally, the timing of these accruals coincides with the completion of a feasibility study or our commitment to a formal plan of action. Further, we review and update our environmental accruals as circumstances change and/or additional information is obtained that reasonably could be expected to have a meaningful effect on the outcome of a matter or the estimated cost thereof. |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation We measure and recognize compensation expense for share-based payment transactions to our employees and non-employees at their estimated fair value. The expense is measured at the grant date, based on the calculated fair value of the share-based award, and is recognized over the requisite service period (generally the vesting period of the equity award). The fair value of stock options are determined using the Black-Scholes-Merton (“Black-Scholes”) valuation model, which requires assumptions and judgments regarding stock price volatility, risk-free interest rates, and expected options terms. Management’s estimates could differ from actual results. The fair value of unvested stock awards is determined based on the closing price of the underlying common stock on the date of grant. |
(Loss) Earnings per Share | Earnings (Loss) Per Share Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding in each period. Diluted earnings per share are computed by dividing income available to common shareholders plus income associated with dilutive securities by the weighted-average number of common shares outstanding, plus any potential dilutive shares that could be issued if exercised or converted into common stock in each period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements New Accounting Guidance Adopted in 2016 In August 2015, the FASB issued ASU 2015-15, “Imputation of Interest (Subtopic 835-30)” (“ASU 2015-15”), which provides guidance on the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. Other guidance does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Thus, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The new guidance was effective for us beginning January 1, 2016. We did not have debt issuance costs associated with line-of-credit arrangements and thus, the adoption of this new guidance did not have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-10, “Technical Corrections and Improvements” (“ASU 2015-10”), which covers a wide range of Topics in the Codification. The amendments in ASU 2015-10 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost on most entities. The amendments in this new guidance that require transition guidance were effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In June 2015, the FASB issued ASU 2015-7, “Fair Value Measurement (820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-7”), which permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. The amendments in ASU 2015-7 remove the requirement to categorize investments for which fair values are measured using the net asset value per share practical expedient. It also limits disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. The new guidance was effective for us beginning January 1, 2016.. As a result of the adoption of this new guidance, we are disclosing certain investments using the net asset value per share of the investment and prior amounts have been reclassified to conform to current year presentation. See Note 12. In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (“ASU 2015-05”), which provides guidance on fees paid by a customer in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of those costs is reported as interest expense. The new guidance was effective for us beginning January 1, 2016. As a result of the adoption of this new guidance, we reclassed $3.1 million of debt issuance costs against $170.0 million of total debt as of December 31, 2016 and prior period amounts have been reclassified to conform to current year presentation. See Note 9. In January 2015, the FASB issued ASU 2015-01, “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)” (“ASU 2015-01”), which eliminates from U.S. GAAP the concept of extraordinary items. Current guidance requires separate classification, presentation, and disclosure of extraordinary events and transactions. In addition, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (“ASU 2014-15”), which defines management’s responsibility to evaluate whether there is substantial doubt about a company’s ability to continue as a going concern. ASU 2014-15 also provide principles and definitions that are intended to reduce diversity in the timing and content of disclosures in the financial statement footnotes. The new guidance was effective for us for our annual year ending December 31, 2016, and interim periods beginning January 1, 2017. The adoption of this standard did not have a significant impact on our consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period” (“ASU 2014-12”), which requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. Thus, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The new guidance was effective for us beginning January 1, 2016. The adoption of this standard did not have a significant impact on our consolidated financial statements. Recently Issued Accounting Standards In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which simplifies the subsequent measurement of goodwill, the amendments eliminate Step Two from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step Two of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are evaluating the impact of this standard. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of businesses. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. We are evaluating the impact of this standard. In December 2016, the FASB issued ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”), which cover a variety of Topics in the Codification related to the new revenue recognition standard (ASU 2014-09). The amendments in ASU 2016-20 represent changes to make minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. We are evaluating the impact of this standard. In December 2016, the FASB issued ASU 2016-19, “Technical Corrections and Improvements” (“2016-19”), which cover a variety of Topics in the Codification. The amendments in ASU 2016-19 represent changes to make corrections or improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The new guidance is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods, which will be our interim period beginning January 1, 2017. We are evaluating the impact of this standard and currently do not anticipate it will have a significant impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (“COLIs”) (including bank-owned life insurance policies [“BOLIs”]); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. We are evaluating the impact of this standard. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), which amends the guidance in the new revenue standard on collectability, noncash consideration, presentation of sales tax, and transition. The amendments are intended to address implementation issues and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods with that reporting period. We are evaluating the impact of this standard. In May 2016, the FASB issued ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-06 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting” (“ASU 2016-11”), which clarifies revenue and expense recognition for freight costs, accounting for shipping and handling fees and costs, and accounting for consideration given by a vendor to a customer. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods with that reporting period. We are evaluating the impact of this standard. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” (“ASU 2016-10”), which clarifies the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, which will be our interim period beginning January 1, 2018. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods with that reporting period. We are evaluating the impact of this standard. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which is intended to improve the accounting for employee share-based payments. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2017. Early adoption is permitted in any interim or annual reporting period. We are evaluating the impact of this standard and currently do not anticipate it will have a significant impact on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”), which clarifies that a change in the counter party to a derivative instrument designated as a hedging instrument does not require dedesignation of that hedging relationship, provided that all other hedge accounting criteria are met. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2017. Early adoption is permitted as of the beginning of an interim period on a modified retrospective basis. We are evaluating the impact of this standard and currently do not anticipate it will have a significant impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to present right-of-use assets and lease liabilities on the balance sheet. Lessees are required to apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2019. We are evaluating the impact of this standard and currently anticipate it will impact our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330)” (“ASU 2015-11”), which requires inventory within the scope of ASU 2015-11 to be measured at the lower of cost and net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out (“LIFO”) or the retail inventory value. The new guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2017. Early adoption is permitted as of the beginning of an interim or annual reporting period. We are evaluating the impact of this standard, but currently do not anticipate it will have a significant impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. It requires entities to exercise judgment when considering the terms of the contract(s) which include (i) identifying the contract(s) with the customer, (ii) identifying the separate performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the separate performance obligations, and (v) recognizing revenue when each performance obligation is satisfied. Thus, it depicts the transfer of promised goods or services to customers in an amount that reflects the consideration an entity expects to receive in exchange for those goods or services. Companies have the option of applying the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. In August 2015, the FASB issued ASU 2015-14, “Revenue From Contracts With Customers (Topic 606)” (“ASU 2015-14”), which defer the effective date of ASU 2014-09 by one year to annual periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new guidance is effective for us beginning January 1, 2018 and will provide us additional time to evaluate the method and impact that ASU 2014-09 will have on our consolidated financial statements. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Assets Held-for-sale | The carrying values of the major classes of assets and liabilities related to these assets held for sale were as follows: (In thousands) December 31, December 31, Assets Accounts receivable (less allowance for doubtful accounts of zero and $24 at December 31, 2016 and December 31, 2015, respectively) $ — $ 9,395 Inventory — 6,453 Deferred income taxes — 1,246 Other current assets — 3,315 Total current assets — 20,409 Property and equipment, net of accumulated depreciation of zero and $8,509 at December 31, 2016 and December 31, 2015, respectively — 1,941 Goodwill — 17,772 Other Intangible Assets — 1,514 $ — $ 41,636 Liabilities Accounts payable $ — $ 4,836 Accrued liabilities — 1,944 $ — $ 6,780 |
Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share | The net earnings (loss) and weighted-average number of common shares outstanding used to compute earnings (loss) per share were as follows: (In thousands, except per share data) Years Ended December 31, 2016 2015 2014 Net income (loss) $ 25,261 $ (74,879 ) $ 19,867 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,151 11,047 10,897 Dilutive potential common shares 148 — 229 Diluted weighted-average common shares outstanding 11,299 11,047 11,126 Earnings (loss) per share Basic $ 2.27 $ (6.78 ) $ 1.82 Diluted $ 2.24 $ (6.78 ) $ 1.79 |
Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings | Potentially dilutive stock options and stock units to purchase common stock, as shown below, were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive. However, these shares may be potentially dilutive common shares in the future. (In thousands) Years Ended December 31, 2016 2015 2014 Stock options and stock units 553 778 218 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | Our restructuring activities for 2016 and 2015 were as follows (in thousands): December 31, 2015 2016 December 31, 2016 Balance Charges Cash Payments Change in Estimates Balance Severance and benefits $ 722 $ 49 $ (779 ) $ 8 $ — Lease termination 1,181 133 (674 ) 14 654 Ending balance $ 1,903 $ 182 $ (1,453 ) $ 22 $ 654 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements | Our financial instruments consist primarily of cash and cash equivalents and interest rate cap derivatives designated as cash flow hedging instruments. Assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2016 As of December 31, 2015 Fair Value Measurements Using Fair Value Measurements Using Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Level 3 Total Balance Assets Money market funds (1) $ 3,751 $ — $ — $ 3,751 $ 4,587 $ — $ — $ 4,587 Interest rate cap hedges (2) — 553 — 553 — 963 — 963 Total Assets $ 3,751 $ 553 $ — $ 4,304 $ 4,587 $ 963 $ — $ 5,550 (1) Included as cash and cash equivalents. (2) Interest rate cap hedge premium included as other current assets and other assets. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The recorded fair value of the derivative financial instruments in the consolidated balance sheets were as follows: (In thousands) December 31, 2016 (In thousands) Other Current Assets Other Long Term Assets Other Current Assets Other Long Term Assets Derivatives Designated as Hedging Instruments Cash Flow Hedges: Interest rate cap premiums $ — $ 553 $ 1 $ 962 Total Derivatives $ — $ 553 $ 1 $ 962 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (In thousands) December 31, 2016 2015 Raw materials and supplies $ 64,650 $ 61,840 Work in process 56,806 49,299 Finished goods 9,180 10,073 130,636 121,212 Less progress payments 10,740 5,808 Total $ 119,896 $ 115,404 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment, net consisted of the following: (In thousands) December 31, Range of Estimated 2016 2015 Useful Lives Land $ 15,662 $ 15,454 Buildings and improvements 49,870 44,313 5 - 40 Years Machinery and equipment 137,555 127,934 2 - 20 Years Furniture and equipment 21,749 24,187 2 - 10 Years Construction in progress 12,238 13,196 237,074 225,084 Less accumulated depreciation 135,484 128,533 Total $ 101,590 $ 96,551 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2016 and 2015 were as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun Gross goodwill $ 57,243 $ 182,048 $ 239,291 Accumulated goodwill impairment (57,243 ) (81,722 ) (138,965 ) Transfer to assets held for sale — (17,772 ) (17,772 ) Balance at December 31, 2015 $ — $ 82,554 $ 82,554 Balance at December 31, 2016 $ — $ 82,554 $ 82,554 |
Other Intangible Assets | Intangible assets are as follows: (In thousands) December 31, 2016 December 31, 2015 Wtd. Avg Life (Yrs) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-lived assets Customer relationships 18 $ 159,200 $ 58,352 $ 100,848 $ 159,200 $ 49,463 $ 109,737 Contract renewal 14 1,845 1,362 483 1,845 1,230 615 Technology 15 400 158 242 400 131 269 Total $ 161,445 $ 59,872 $ 101,573 $ 161,445 $ 50,824 $ 110,621 The carrying amount of other intangible assets by operating segment as of December 31, 2016 and 2015 was as follows: (In thousands) December 31, 2016 December 31, 2015 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Structural Systems $ 19,300 $ 15,555 $ 3,745 $ 19,300 $ 14,433 $ 4,867 Electronic Systems 142,145 44,317 97,828 142,145 36,391 105,754 Total $ 161,445 $ 59,872 $ 101,573 $ 161,445 $ 50,824 $ 110,621 |
Summary of Future Amortization Expense | Future amortization expense by operating segment is expected to be as follows: (In thousands) Structural Systems Electronic Systems Consolidated Ducommun 2017 $ 907 $ 7,927 $ 8,834 2018 737 7,927 8,664 2019 591 7,926 8,517 2020 490 7,883 8,373 2021 381 7,794 8,175 Thereafter 639 58,371 59,010 $ 3,745 $ 97,828 $ 101,573 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | The components of accrued liabilities consisted of the following: (In thousands) December 31, 2016 2015 Accrued compensation $ 15,455 $ 13,521 Accrued income tax and sales tax 332 1,513 Customer deposits 3,204 1,758 Interest payable 273 58 Provision for forward loss reserves 4,780 11,925 Other 5,235 7,683 Total $ 29,279 $ 36,458 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt Summary | Long-term debt and the current period interest rates were as follows: (In thousands) December 31, 2016 2015 Term loan $ 170,000 $ 245,000 Other debt (fixed 5.41%) 3 26 Total debt 170,003 245,026 Less current portion 3 26 Total long-term debt 170,000 245,000 Less debt issuance costs 3,104 4,339 Total long-term debt, net of debt issuance costs $ 166,896 $ 240,661 Weighted-average interest rate 3.25 % 3.07 % |
Future Long Term Debt Payments | Future long-term debt payments at December 31, 2016 were as follows: (In thousands) 2017 $ 3 2018 — 2019 — 2020 170,000 2021 — Total $ 170,003 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | Stock option activity for the year ended December 31, 2016 were as follows: Number of Stock Options Weighted- Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2016 483,491 $ 20.08 Granted 123,500 $ 15.92 Exercised (132,325 ) $ 16.04 Expired (19,516 ) $ 22.66 Forfeited (15,600 ) $ 18.54 Outstanding at December 31, 2016 439,550 $ 20.07 4.4 $ 2,414 Exerciseable at December 31, 2016 214,375 $ 20.24 3.3 $ 1,141 |
Schedule of Nonvested Options Activity | Changes in nonvested stock options for the year ended December 31, 2016 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2016 231,600 $ 10.03 Granted 123,500 $ 6.53 Vested (114,325 ) $ 7.95 Forfeited (15,600 ) $ 8.08 Nonvested at December 31, 2016 225,175 $ 8.77 |
Schedule of Assumptions Used | The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Risk-free interest rate 1.20 % 1.13 % 1.67 % Expected volatility 51.79 % 53.72 % 55.27 % Expected dividends — — — Expected term (in months) 48 47 66 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2016 2015 2014 Discount rate used to determine pension expense Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2016 2015 2014 Discount rate used to determine value of obligations Pension Plan 4.18 % 4.55 % 4.25 % LaBarge Retirement Plan 3.75 % 4.00 % 3.70 % Long-term rate of return - Pension Plan only 7.00 % 7.50 % 7.50 % |
Schedule of Restricted Stock Units Activity | Restricted stock unit activity for the year ended December 31, 2016 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 155,191 $ 24.24 Granted 139,450 15.97 Vested (84,107 ) 23.34 Forfeited (17,152 ) 21.76 Outstanding at December 31, 2016 193,382 $ 18.88 |
Schedule of Performance-based Units Activity | Performance stock activity for the year ended December 31, 2016 was as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2016 133,497 $ 22.86 Granted 62,500 15.92 Vested (44,979 ) 18.36 Forfeited (29,381 ) 25.22 Outstanding at December 31, 2016 121,637 $ 20.39 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost for both plans are as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Service cost $ 531 $ 785 $ 693 Interest cost 1,367 1,350 1,278 Expected return on plan assets (1,482 ) (1,495 ) (1,400 ) Amortization of actuarial losses 762 887 419 Net periodic pension cost $ 1,178 $ 1,527 $ 990 |
Reclassification out of Accumulated Other Comprehensive Income | The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for 2016 were as follows: (In thousands) Year Ended December 31, 2016 Amortization of actuarial loss - total before tax (1) $ 762 Tax benefit (283 ) Net of tax $ 479 (1) The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss. |
Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan | The obligations, fair value of plan assets, and funded status of both plans are as follows: (In thousands) December 31, 2016 2015 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 31,510 $ 33,299 Service cost 531 785 Interest cost 1,367 1,350 Actuarial loss (gain) 1,132 (2,599 ) Benefits paid (1,386 ) (1,325 ) Ending benefit obligation (December 31) $ 33,154 $ 31,510 Change in plan assets Beginning fair value of plan assets (January 1) $ 19,933 $ 19,725 Return on assets 1,551 (296 ) Employer contribution 1,917 1,829 Benefits paid (1,386 ) (1,325 ) Ending fair value of plan assets (December 31) $ 22,015 $ 19,933 Funded status (underfunded) $ (11,139 ) $ (11,577 ) Amounts recognized in the consolidated balance sheet Current liabilities $ 545 $ 527 Non-current liabilities $ 10,595 $ 11,050 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 8,919 $ 10,614 Amortization (762 ) (887 ) Liability (gain) loss 1,132 (2,599 ) Asset (loss) gain (69 ) 1,791 Ending unrecognized loss, before tax (December 31) 9,220 8,919 Tax impact (3,425 ) (3,316 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 5,795 $ 5,603 (1) Projected benefit obligation equals the accumulated benefit obligation for the plans. |
Company's Pension Plan Asset Allocation, by Asset Category | Our Pension Plan asset allocations at December 31, 2016 and 2015 , by asset category, were as follows: December 31, 2016 2015 Equity securities 65 % 74 % Cash and equivalents 2 % 6 % Debt securities 33 % 20 % Total (1) 100 % 100 % (1) Our overall investment strategy is to achieve an asset allocation within the following ranges to achieve an appropriate rate of return relative to risk. Cash 0-5% Fixed income securities 0-25% Equities 25-95% |
Summary of Return on Plan Asset | (In thousands) Year Ended December 31, 2016 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 366 $ — $ — $ 366 Fixed income securities 3,468 — — 3,468 Equities (1) 1,611 — — 1,611 Other investments 760 — — 760 Total plan assets at fair value $ 6,205 $ — $ — 6,205 Pooled funds 15,810 Total fair value of plan assets $ 22,015 (In thousands) Year Ended December 31, 2015 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 1,149 $ — $ — $ 1,149 Fixed income securities 3,986 — — 3,986 Equities (1) 9,468 — — 9,468 Other investments — — — — Total plan assets at fair value $ 14,603 $ — $ — 14,603 Pooled funds 5,330 Total fair value of plan assets $ 19,933 (1) Represents mutual funds and commingled accounts which invest primarily in equities, but may also hold fixed income securities, cash and other investments. Commingled funds with publicly quoted prices and actively traded are classified as Level 1 investments. |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | The assumptions used to compute the fair value of stock option grants under the Stock Incentive Plans for years ended December 31, 2016, 2015, and 2014 were as follows: Years Ended December 31, 2016 2015 2014 Risk-free interest rate 1.20 % 1.13 % 1.67 % Expected volatility 51.79 % 53.72 % 55.27 % Expected dividends — — — Expected term (in months) 48 47 66 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2016 2015 2014 Discount rate used to determine pension expense Pension Plan 4.55 % 4.25 % 4.75 % LaBarge Retirement Plan 4.00 % 3.70 % 4.00 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2016 2015 2014 Discount rate used to determine value of obligations Pension Plan 4.18 % 4.55 % 4.25 % LaBarge Retirement Plan 3.75 % 4.00 % 3.70 % Long-term rate of return - Pension Plan only 7.00 % 7.50 % 7.50 % |
Expected Future Benefit Payments Under Pension Plans | The following benefit payments under both plans, which reflect expected future service, as appropriate, are expected to be paid: (In thousands) Pension Plan LaBarge Retirement Plan 2017 $ 1,063 $ 545 2018 1,174 535 2019 1,215 521 2020 1,297 504 2021 1,369 485 2022 - 2026 7,862 2,079 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Rental Payments Under Operating Leases | Future minimum rental payments under operating leases having initial or remaining non-cancelable terms in excess of one year at December 31, 2016 were as follows: (In thousands) 2017 $ 4,270 2018 3,505 2019 2,732 2020 2,492 2021 1,864 Thereafter 1,106 Total $ 15,969 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Tax Expense (Benefit) | The provision for income tax expense (benefit) consisted of the following: (In thousands) Years Ended December 31, 2016 2015 2014 Current tax expense (benefit) Federal $ 5,953 $ (1,511 ) $ 5,258 State 2,982 (418 ) 244 8,935 (1,929 ) 5,502 Deferred tax expense (benefit) Federal 3,876 (28,011 ) 1,186 State 41 (1,771 ) (315 ) 3,917 (29,782 ) 871 Income tax expense (benefit) $ 12,852 $ (31,711 ) $ 6,373 |
Summary of Deferred Tax Assets (Liabilities) | Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2016 2015 Deferred tax assets: Accrued expenses $ 760 $ 1,363 Allowance for doubtful accounts 184 134 Contract overrun reserves 1,776 4,412 Deferred compensation 507 491 Employment-related accruals 2,888 2,463 Environmental reserves 769 772 Federal tax credit carryforwards 4,234 7,031 Inventory reserves 2,313 2,703 Investment in common stock — 297 Pension obligation 4,002 3,299 State net operating loss carryforwards 63 1,402 State tax credit carryforwards 6,585 5,937 Stock-based compensation 1,950 2,165 Workers’ compensation 122 133 Other 2,098 1,595 Total gross deferred tax assets 28,251 34,197 Valuation allowance (6,607 ) (7,477 ) Total gross deferred tax assets, net of valuation allowance 21,644 26,720 Deferred tax liabilities: Depreciation (13,167 ) (11,802 ) Goodwill (3,909 ) (3,632 ) Intangibles (35,071 ) (37,891 ) Prepaid insurance (626 ) (514 ) Section 481(a) adjustment — (682 ) Unbilled receivables (2 ) — Total gross deferred tax liabilities (52,775 ) (54,521 ) Net deferred tax liabilities $ (31,131 ) $ (27,801 ) |
Principle Reasons for Variation Between Expected and Effective Tax Rate | The principal reasons for the variation between the statutory and effective tax rates were as follows: Years Ended December 31, 2016 2015 2014 Statutory federal income tax (benefit) rate 35.0% (35.0)% 35.0% State income taxes (net of federal benefit) 5.7 (1.2) 0.9 Qualified domestic production activities (2.0) 0.5 (2.3) Research and development tax credits (8.6) (2.9) (11.3) Goodwill impairment — 8.1 — Changes in valuation allowance 0.9 0.6 8.5 Non-deductible book expenses 0.2 0.2 0.9 Changes in deferred tax assets 1.5 0.1 (5.0) Remeasurement of deferred taxes for changes in state tax law — — (1.9) Changes in tax reserves — 0.1 (0.7) Other 1.0 (0.2) 0.2 Effective income tax (benefit) rate 33.7% (29.7)% 24.3% |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Balance at January 1, $ 2,963 $ 2,803 $ 2,297 Additions for tax positions related to the current year 476 702 668 Additions for tax positions related to prior years 385 — 31 Reductions for tax positions related to prior years (567 ) (48 ) (22 ) Reductions for lapse of statute of limitations (221 ) (494 ) (171 ) Balance at December 31, $ 3,036 $ 2,963 $ 2,803 |
Major Customers and Concentra43
Major Customers and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk by Major Customers | Net revenues from our top ten customers, including the Boeing Company (“Boeing”), Raytheon Company (“Raytheon”), Spirit AeroSystems Holdings, Inc. (“Spirit”), and United Technologies Corporation (“United Technologies”), represented the following percentages of total net sales: Years Ended December 31, 2016 2015 2014 Boeing 17.3 % 16.0 % 19.4 % Raytheon 8.4 % 8.7 % 9.4 % Spirit 8.2 % 7.4 % 6.4 % United Technologies 6.0 % 6.1 % 5.5 % Top ten customers (1) 58.6 % 55.7 % 59.2 % (1) Includes the Boeing, Raytheon, Spirit, and United Technologies. Boeing, Raytheon, Spirit, and United Technologies represented the following percentages of total accounts receivable: December 31, 2016 2015 Boeing 7.8 % 13.3 % Raytheon 10.9 % 11.5 % Spirit 9.0 % 7.1 % United Technologies 7.8 % 5.0 % |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment was as follows: (In thousands) Years Ended December 31, 2016 2015 2014 Net Revenues Structural Systems $ 246,465 $ 273,319 $ 319,956 Electronic Systems 304,177 392,692 422,089 Total Net Revenues $ 550,642 $ 666,011 $ 742,045 Segment Operating (Loss) Income (1) Structural Systems (2) $ 16,497 $ (53,010 ) $ 34,949 Electronic Systems (3) 28,983 (4,472 ) 34,599 45,480 (57,482 ) 69,548 Corporate General and Administrative Expenses (1)(4) (16,912 ) (17,827 ) (17,781 ) Operating (Loss) Income $ 28,568 $ (75,309 ) $ 51,767 Depreciation and Amortization Expenses Structural Systems $ 8,688 $ 9,417 $ 10,959 Electronic Systems 14,087 17,267 17,928 Corporate Administration 85 162 137 Total Depreciation and Amortization Expenses $ 22,860 $ 26,846 $ 29,024 Capital Expenditures Structural Systems $ 15,661 $ 11,559 $ 12,742 Electronic Systems 3,032 4,419 5,782 Corporate Administration — 10 30 Total Capital Expenditures $ 18,693 $ 15,988 $ 18,554 (1) Includes cost not allocated to either the Structural Systems or Electronic Systems operating segments. (2) The results for 2015 included $57.2 million of goodwill impairment charge. (3) The results for 2015 included $32.9 million of an intangible asset impairment charge. (4) The results for 2014 included $1.2 million of workers’ compensation insurance expenses included in gross profit and not allocated to the operating segments. |
Segment Assets | Corporate assets include assets not specifically identified with a business segment, including cash. The following table summarizes our segment assets for 2016 and 2015 : (In thousands) December 31, 2016 2015 Total Assets Structural Systems $ 175,580 $ 179,134 Electronic Systems 325,780 363,227 Corporate Administration 14,069 14,720 Total Assets $ 515,429 $ 557,081 Goodwill and Intangibles Structural Systems $ 3,745 $ 4,866 Electronic Systems 180,382 207,595 Total Goodwill and Intangibles $ 184,127 $ 212,461 |
Supplemental Quarterly Financ45
Supplemental Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (In thousands, except per share amounts) Three Months Ended 2016 Three Months Ended 2015 Dec 31 Oct 1 Jul 2 Apr 2 Dec 31 Oct 3 Jul 4 Apr 4 Net Revenues $ 142,486 $ 132,571 $ 133,437 $ 142,148 $ 156,576 $ 161,670 $ 174,845 $ 172,920 Gross Profit 27,786 25,223 26,215 26,969 22,796 20,028 31,207 26,761 Income (Loss) Before Taxes 5,825 6,248 5,331 20,709 (90,170 ) (16,447 ) 3,061 (3,034 ) Income Tax Expense (Benefit) 2,989 1,234 1,470 7,159 (24,997 ) (6,932 ) 1,279 (1,061 ) Net Income (Loss) $ 2,836 $ 5,014 $ 3,861 $ 13,550 $ (65,173 ) $ (9,515 ) $ 1,782 $ (1,973 ) Earnings (Loss) Per Share Basic earnings (loss) per share $ 0.25 $ 0.45 $ 0.35 $ 1.22 $ (5.88 ) $ (0.86 ) $ 0.16 $ (0.18 ) Diluted earnings (loss) per share $ 0.25 $ 0.44 $ 0.34 $ 1.21 $ (5.88 ) $ (0.86 ) $ 0.16 $ (0.18 ) |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 25, 2016USD ($) | Jan. 22, 2016USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Dec. 31, 2015USD ($)Segment | Oct. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Apr. 04, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($)Segment | Dec. 31, 2014USD ($) |
Significant Accounting Policies [Line Items] | |||||||||||||
Number of reportable segments | Segment | 2 | ||||||||||||
Non-Current Deferred Income Taxes | $ 31,417,000 | $ 28,125,000 | $ 31,417,000 | $ 28,125,000 | |||||||||
Net (loss) income | 2,836,000 | $ 5,014,000 | $ 3,861,000 | $ 13,550,000 | (65,173,000) | $ (9,515,000) | $ 1,782,000 | $ (1,973,000) | $ 25,261,000 | (74,879,000) | $ 19,867,000 | ||
Cash equivalent maturity period | three months or less | ||||||||||||
Production cost of contracts | 11,340,000 | $ 10,290,000 | $ 11,340,000 | $ 10,290,000 | |||||||||
Operations proposed for sale | Segment | 2 | 2 | |||||||||||
Goodwill impairment | $ 57,200,000 | 0 | $ 57,243,000 | $ 0 | |||||||||
Goodwill | 82,554,000 | 82,554,000 | 82,554,000 | 82,554,000 | |||||||||
Carrying value of trade names | 0 | 32,900,000 | 0 | ||||||||||
Provision for forward loss reserves | 4,780,000 | 11,925,000 | $ 4,780,000 | 11,925,000 | |||||||||
Minimum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of intangible assets (in years) | 14 years | ||||||||||||
Income tax benefit percentage | 50.00% | ||||||||||||
Maximum | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Estimated useful life of intangible assets (in years) | 18 years | ||||||||||||
Accrued Liabilities | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Provision for forward loss reserves | 7,600,000 | 7,600,000 | 7,600,000 | ||||||||||
Other Long-term Liabilities | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Provision for forward loss reserves | 2,400,000 | 2,400,000 | 2,400,000 | ||||||||||
Electronic Systems | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Goodwill | 82,554,000 | 82,554,000 | $ 82,554,000 | 82,554,000 | |||||||||
Structural Systems | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Goodwill impairment | 57,200,000 | 57,200,000 | |||||||||||
Goodwill | 0 | 0 | 0 | 0 | |||||||||
Forward loss provision | $ 10,000,000 | 10,000,000 | |||||||||||
Disposal Group Sold | Pittsburgh, Pennsylvania Operations | Electronic Systems | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Final sales price | $ 38,600,000 | ||||||||||||
Net assets sold in disposal | 24,000,000 | ||||||||||||
Net liabilities sold in disposal | 4,000,000 | ||||||||||||
Transaction costs, discontinued operations | 300,000 | ||||||||||||
Gain (loss) on disposition of assets | $ 18,300,000 | ||||||||||||
Disposal Group Sold | Miltec Operations | Electronic Systems | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Final sales price | $ 13,300,000 | ||||||||||||
Net assets sold in disposal | 15,400,000 | ||||||||||||
Net liabilities sold in disposal | 2,700,000 | ||||||||||||
Transaction costs, discontinued operations | 1,300,000 | ||||||||||||
Gain (loss) on disposition of assets | $ (700,000) | ||||||||||||
Trade names | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Impairment of trade names | 32,900,000 | ||||||||||||
Scenario, Previously Reported | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Deferred tax assets | 1,600,000 | 1,600,000 | |||||||||||
Error Correction, Deferred Tax Asset to Deferred Tax Liability | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Non-Current Deferred Income Taxes | $ 1,600,000 | 1,600,000 | |||||||||||
Net (loss) income | $ (1,600,000) | ||||||||||||
Accounting Standards Update 2015-03 | Other Long-term Liabilities | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Unamortized debt issuance expense | 3,100,000 | 3,100,000 | |||||||||||
Accounting Standards Update 2015-03 | Other Long Term Assets | |||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||
Unamortized debt issuance expense | $ (3,100,000) | $ (3,100,000) |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Assets Held For Sale (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Total current assets | $ 0 | $ 41,636,000 |
Liabilities | ||
Total Debt | (170,003,000) | |
Disposal Group | ES | ||
Assets | ||
Accounts receivable (less allowance for doubtful accounts of zero and $24 at December 31, 2016 and December 31, 2015, respectively) | 0 | 9,395,000 |
Allowance for doubtful accounts | 0 | 24,000 |
Inventory | 0 | 6,453,000 |
Deferred income taxes | 0 | 1,246,000 |
Other current assets | 0 | 3,315,000 |
Total current assets | 0 | 20,409,000 |
Property and equipment, net of accumulated depreciation of zero and $8,509 at December 31, 2016 and December 31, 2015, respectively | 0 | 1,941,000 |
Accumulated depreciation | 0 | 8,509,000 |
Goodwill | 0 | 17,772,000 |
Other Intangible Assets | 0 | 1,514,000 |
Preliminary total assets to be sold | 0 | 41,636,000 |
Liabilities | ||
Accounts payable | 0 | 4,836,000 |
Accrued liabilities | 0 | 1,944,000 |
Preliminary total liabilities to be sold | $ 0 | $ 6,780,000 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | |||||||||||
Net Income (Loss) | $ 2,836 | $ 5,014 | $ 3,861 | $ 13,550 | $ (65,173) | $ (9,515) | $ 1,782 | $ (1,973) | $ 25,261 | $ (74,879) | $ 19,867 |
Weighted-average number of common shares outstanding | |||||||||||
Basic weighted-average common shares outstanding (in shares) | 11,151 | 11,047 | 10,897 | ||||||||
Dilutive potential common shares (in shares) | 148 | 0 | 229 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 11,299 | 11,047 | 11,126 | ||||||||
Earnings (Loss) Per Share | |||||||||||
Basic (in dollars per share) | $ 0.25 | $ 0.45 | $ 0.35 | $ 1.22 | $ (5.88) | $ (0.86) | $ 0.16 | $ (0.18) | $ 2.27 | $ (6.78) | $ 1.82 |
Diluted (in dollars per share) | $ 0.25 | $ 0.44 | $ 0.34 | $ 1.21 | $ (5.88) | $ (0.86) | $ 0.16 | $ (0.18) | $ 2.24 | $ (6.78) | $ 1.79 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Options And Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and stock units | 553 | 778 | 218 |
Restructuring Activities (Detai
Restructuring Activities (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2016facility | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Number of facilities closed | facility | 1 | ||
Restructuring charges accrued during period | $ 1,903 | $ 654 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,903 | ||
Charges | 182 | ||
Cash Payments | (1,453) | ||
Change in Estimates | 22 | ||
Ending balance | 654 | ||
Severance and benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges accrued during period | 722 | 0 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 722 | ||
Charges | 49 | ||
Cash Payments | (779) | ||
Change in Estimates | 8 | ||
Ending balance | 0 | ||
Lease termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges accrued during period | 1,181 | 654 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 1,181 | ||
Charges | 133 | ||
Cash Payments | (674) | ||
Change in Estimates | 14 | ||
Ending balance | 654 | ||
Structural Systems | Severance benefits and loss on early exit from leases | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges accrued during period | 600 | 600 | |
Restructuring Reserve [Roll Forward] | |||
Ending balance | 600 | ||
Restructuring Plan, 2015 | Severance benefits and loss on early exit from leases | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred to date | 2,200 | ||
Restructuring Plan, 2016 | Severance benefits and loss on early exit from leases | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred to date | 200 | ||
Restructuring Plan, 2016 | Electronic Systems | Lease termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges accrued during period | 100 | $ 100 | |
Restructuring Reserve [Roll Forward] | |||
Ending balance | $ 100 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring Measurement - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 3,751 | $ 4,587 |
Interest rate cap hedges | 553 | 963 |
Total Assets | 4,304 | 5,550 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 3,751 | 4,587 |
Interest rate cap hedges | 0 | 0 |
Total Assets | 3,751 | 4,587 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate cap hedges | 553 | 963 |
Total Assets | 553 | 963 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Interest rate cap hedges | 0 | 0 |
Total Assets | $ 0 | $ 0 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Interest rate cap hedges recognized in other comprehensive income, net of tax | $ 305,000 | $ 0 | $ 0 |
Other Current Assets | |||
Derivative [Line Items] | |||
Derivative asset | 0 | 1,000 | |
Other Long Term Assets | |||
Derivative [Line Items] | |||
Derivative asset | 553,000 | 962,000 | |
Interest rate cap premiums | |||
Derivative [Line Items] | |||
Interest rate cap hedges recognized in other comprehensive income, net of tax | 300,000 | ||
Gain (loss) on derivative, net | 0 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate cap premiums | Other Current Assets | |||
Derivative [Line Items] | |||
Derivative asset | 0 | 1,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate cap premiums | Other Long Term Assets | |||
Derivative [Line Items] | |||
Derivative asset | $ 553,000 | $ 962,000 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 64,650 | $ 61,840 |
Work in process | 56,806 | 49,299 |
Finished goods | 9,180 | 10,073 |
Inventory, Gross, Total | 130,636 | 121,212 |
Less progress payments | 10,740 | 5,808 |
Total | $ 119,896 | $ 115,404 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 15,662 | $ 15,454 | |
Buildings and improvements | 49,870 | 44,313 | |
Machinery and equipment | 137,555 | 127,934 | |
Furniture and equipment | 21,749 | 24,187 | |
Construction in progress | 12,238 | 13,196 | |
Property, Plant and Equipment, Gross, Total | 237,074 | 225,084 | |
Less accumulated depreciation | 135,484 | 128,533 | |
Total | 101,590 | 96,551 | |
Depreciation expense | $ 13,300 | $ 15,700 | $ 15,300 |
Buildings and Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Buildings and Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 40 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 20 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Gross goodwill | $ 239,291,000 | $ 239,291,000 |
Accumulated goodwill impairment | (138,965,000) | (138,965,000) |
Transfer to assets held for sale | (17,772,000) | (17,772,000) |
Goodwill, net | 82,554,000 | 82,554,000 |
Structural Systems | ||
Goodwill [Line Items] | ||
Gross goodwill | 57,243,000 | 57,243,000 |
Accumulated goodwill impairment | (57,243,000) | (57,243,000) |
Transfer to assets held for sale | 0 | 0 |
Goodwill, net | 0 | 0 |
Electronic Systems | ||
Goodwill [Line Items] | ||
Gross goodwill | 182,048,000 | 182,048,000 |
Accumulated goodwill impairment | (81,722,000) | (81,722,000) |
Transfer to assets held for sale | (17,772,000) | (17,772,000) |
Goodwill, net | $ 82,554,000 | $ 82,554,000 |
Goodwill and Other Intangible56
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Oct. 03, 2015 | |
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 82,554,000 | $ 82,554,000 | $ 82,554,000 | ||
Goodwill impairment | 57,200,000 | 0 | 57,243,000 | $ 0 | |
Carrying value of trade names | 0 | 0 | $ 32,900,000 | ||
Amortization expense of intangible asset | $ 9,000,000 | 10,000,000 | $ 10,400,000 | ||
Minimum | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Acquired intangible assets amortization period | 14 years | ||||
Maximum | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Acquired intangible assets amortization period | 18 years | ||||
SS | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | 0 | $ 0 | 0 | ||
Goodwill impairment | $ 57,200,000 | 57,200,000 | |||
ES | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | 82,600,000 | ||||
Percentage exceeded from carrying value | 42.00% | ||||
Electronic Systems | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Goodwill | $ 82,554,000 | $ 82,554,000 | $ 82,554,000 | ||
Goodwill fair value in excess of carrying value | 32.00% | ||||
Miltec | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Percentage exceeded from carrying value | 18.00% | ||||
Trade names | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Impairment of trade names | $ 32,900,000 |
Goodwill and Other Intangible57
Goodwill and Other Intangible Assets - Carrying Amount of Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 161,445 | $ 161,445 |
Accumulated Amortization | 59,872 | 50,824 |
Net Carrying Amount | $ 101,573 | 110,621 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 18 years | |
Gross Carrying Amount | $ 159,200 | 159,200 |
Accumulated Amortization | 58,352 | 49,463 |
Net Carrying Amount | $ 100,848 | 109,737 |
Contract renewal | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 14 years | |
Gross Carrying Amount | $ 1,845 | 1,845 |
Accumulated Amortization | 1,362 | 1,230 |
Net Carrying Amount | $ 483 | 615 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 15 years | |
Gross Carrying Amount | $ 400 | 400 |
Accumulated Amortization | 158 | 131 |
Net Carrying Amount | 242 | 269 |
Structural Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,300 | 19,300 |
Accumulated Amortization | 15,555 | 14,433 |
Net Carrying Amount | 3,745 | 4,867 |
Electronic Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 142,145 | 142,145 |
Accumulated Amortization | 44,317 | 36,391 |
Net Carrying Amount | $ 97,828 | $ 105,754 |
Goodwill and Other Intangible58
Goodwill and Other Intangible Assets - Future Amortization Expense of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 8,834 | |
2,018 | 8,664 | |
2,019 | 8,517 | |
2,020 | 8,373 | |
2,021 | 8,175 | |
Thereafter | 59,010 | |
Net Carrying Amount | 101,573 | $ 110,621 |
Structural Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | 907 | |
2,018 | 737 | |
2,019 | 591 | |
2,020 | 490 | |
2,021 | 381 | |
Thereafter | 639 | |
Net Carrying Amount | 3,745 | 4,867 |
Electronic Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,017 | 7,927 | |
2,018 | 7,927 | |
2,019 | 7,926 | |
2,020 | 7,883 | |
2,021 | 7,794 | |
Thereafter | 58,371 | |
Net Carrying Amount | $ 97,828 | $ 105,754 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 15,455 | $ 13,521 |
Accrued income tax and sales tax | 332 | 1,513 |
Customer deposits | 3,204 | 1,758 |
Interest payable | 273 | 58 |
Provision for forward loss reserves | 4,780 | 11,925 |
Other | 5,235 | 7,683 |
Total | $ 29,279 | $ 36,458 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 170,003 | $ 245,026 |
Less current portion | 3 | 26 |
Total long-term debt | 170,000 | 245,000 |
Less debt issuance costs | 3,104 | 4,339 |
Total long-term debt, net of debt issuance costs | $ 166,896 | $ 240,661 |
Weighted-average interest rate (percent) | 3.25% | 3.07% |
New Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 170,000 | $ 245,000 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 3 | $ 26 |
Fixed rate (percent) | 5.41% |
Long-Term Debt - Future Long-Te
Long-Term Debt - Future Long-Term Debt Payment (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,017 | $ 3 |
2,018 | 0 |
2,019 | 0 |
2,020 | 170,000 |
2,021 | 0 |
Total Debt | $ 170,003 |
Long-Term Debt - Additional inf
Long-Term Debt - Additional information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Oct. 31, 2015 | Jun. 30, 2015 | Oct. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | |||||||
Debt outstanding | $ 166,896,000 | $ 166,896,000 | $ 240,661,000 | ||||
Interest rate cap premiums | |||||||
Debt Instrument [Line Items] | |||||||
Hedging asset | $ 135,000,000 | ||||||
Payments for hedging asset | $ 1,000,000 | ||||||
New Credit Facilities | First Two Years | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment percentage of principal | 5.00% | ||||||
New Credit Facilities | Third Year | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment percentage of principal | 7.50% | ||||||
New Credit Facilities | Fourth and Fifth Year | |||||||
Debt Instrument [Line Items] | |||||||
Prepayment percentage of principal | 10.00% | ||||||
New Credit Facilities | Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Fixed rate spread (percent) | 0.50% | ||||||
New Credit Facilities | Eurodollar Rate | |||||||
Debt Instrument [Line Items] | |||||||
Fixed rate spread (percent) | 1.00% | ||||||
New Credit Facilities | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (percent) | 0.175% | ||||||
New Credit Facilities | Minimum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate spread (percent) | 1.50% | ||||||
New Credit Facilities | Minimum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate spread (percent) | 0.50% | ||||||
New Credit Facilities | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee (percent) | 0.30% | ||||||
New Credit Facilities | Maximum | LIBOR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate spread (percent) | 2.75% | ||||||
New Credit Facilities | Maximum | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate spread (percent) | 1.75% | ||||||
New Credit Facilities | New Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of instrument | $ 275,000,000 | ||||||
Term of debt instrument | 5 years | ||||||
Proceeds from line of credit | 275,000,000 | ||||||
Repayments of line of credit | 75,000,000 | ||||||
New Credit Facilities | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Face amount of instrument | $ 200,000,000 | ||||||
Proceeds from issuance of debt | 65,000,000 | ||||||
Debt issuance costs | 4,800,000 | ||||||
Repayments of line of credit | 65,000,000 | ||||||
Remaining borrowing capacity | 199,000,000 | 199,000,000 | |||||
Outstanding standby letters of credit | 1,000,000 | 1,000,000 | |||||
Existing Credit Facilities | New Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt extinguished | 80,000,000 | ||||||
Debt issuance costs written off | $ 2,800,000 | ||||||
Existing Credit Facilities | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs written off | $ 2,100,000 | 2,100,000 | |||||
Debt outstanding | 200,000,000 | $ 200,000,000 | |||||
Call premium incurred on extinguishment of debt | $ 9,800,000 | 9,800,000 | |||||
Parsons, KS | Municipal Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Purchase of industrial revenue bonds | 9,900,000 | 9,900,000 | |||||
Parsons, KS | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds received from sale of property to be leased back | 9,900,000 | ||||||
Total lease liability from assets sold | $ 9,900,000 | $ 9,900,000 |
Shareholders' Equity (Detail)
Shareholders' Equity (Detail) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of incentive plans | plan | 2 | ||
Options, Granted (in shares) | shares | 123,500 | ||
Weighted-average fair value of grants (in dollars per share) | $ / shares | $ 6.53 | ||
Outstanding at end of period, Weighted average remaining contractual term | 4 years 4 months 24 days | ||
Total fair value of options expensed before tax benefits | $ 0 | $ 0 | $ 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, Granted (in shares) | shares | 123,500 | 73,000 | 71,000 |
Weighted-average fair value of grants (in dollars per share) | $ / shares | $ 6.53 | $ 10.63 | $ 12.62 |
Expiration period from date of grant | 7 years | ||
Option vesting term | 4 years | ||
Aggregate intrinsic value of stock options exercised | $ 1,300,000 | $ 2,300,000 | $ 1,000,000 |
Cash received from the exercise of options | 2,100,000 | 3,100,000 | 2,300,000 |
Tax benefits realized for the tax deductions from options exercised | $ 500,000 | 900,000 | 400,000 |
Options vested (in shares) | shares | 439,550 | ||
Weighted average exercise price (in dollars per share) | $ / shares | $ 20.07 | ||
Aggregate intrinsic value | $ 2,400,000 | ||
Outstanding at end of period, Weighted average remaining contractual term | 4 years 4 months 24 days | ||
Share-based compensation expense | $ 800,000 | 1,200,000 | 1,500,000 |
Unrecognized compensation cost related to stock option | $ 1,300,000 | ||
Weighted average period | 2 years 3 months 18 days | ||
Total fair value of options expensed before tax benefits | $ 900,000 | 1,300,000 | 1,300,000 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting term | 3 years | ||
Share-based compensation expense | $ 1,800,000 | $ 1,800,000 | $ 1,300,000 |
Weighted average period | 1 year 8 months 12 days | ||
Awards, Granted (in shares) | shares | 139,450 | 108,500 | 86,300 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.97 | $ 25.15 | $ 24.74 |
Vesting percentage in year one | 33.00% | ||
Vesting percentage in year two | 33.00% | ||
Vesting percentage in year three | 34.00% | ||
Compensation not yet recognized | $ 2,200,000 | ||
Fair value of awards vested in period | 1,300,000 | $ 1,800,000 | $ 1,300,000 |
Tax benefit realized on vesting of options | 700,000 | 700,000 | 500,000 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 400,000 | $ 500,000 | $ 1,000,000 |
Weighted average period | 1 year 3 months 18 days | ||
Awards, Granted (in shares) | shares | 62,500 | 64,000 | 67,500 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 15.92 | $ 25.51 | $ 24.90 |
Compensation not yet recognized | $ 1,100,000 | ||
Fair value of awards vested in period | 1,100,000 | $ 900,000 | $ 0 |
Tax benefit realized on vesting of options | $ 200,000 | $ 300,000 | $ 0 |
2007 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | shares | 1,200,000 | ||
Shares reserved for future issuance other than stock options | shares | 400,000 | ||
Shares reserved for future issuance | shares | 78,417 | ||
2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | shares | 1,040,000 | ||
Shares reserved for future issuance | shares | 320,172 |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Shares | |
Options, Outstanding Beginning Balance (in shares) | shares | 483,491 |
Options, Granted (in shares) | shares | 123,500 |
Options, Exercised (in shares) | shares | (132,325) |
Option, Expired (in shares) | shares | (19,516) |
Options, Forfeited (in shares) | shares | (15,600) |
Options, Outstanding Ending Balance (in shares) | shares | 439,550 |
Options, Exercisable at end of period (in shares) | shares | 214,375 |
Weighted-Average Exercise Price Per Share | |
Options, Beginning Balance (in dollars per share) | $ / shares | $ 20.08 |
Options, Granted (in dollars per share) | $ / shares | 15.92 |
Options, Exercised (in dollars per share) | $ / shares | 16.04 |
Options, Expired, (in dollars per share) | $ / shares | 22.66 |
Options, Forfeited (in dollars per share) | $ / shares | 18.54 |
Options, Ending Balance (in dollars per share) | $ / shares | 20.07 |
Options, Exercisable at end of period (in dollars per share) | $ / shares | $ 20.24 |
Options, Outstanding at end of period, Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 24 days |
Options, Exercisable at end of period, Weighted Average Remaining Contractual Life (Years) | 3 years 3 months 18 days |
Options, Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 2,414 |
Options, Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 1,141 |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Nonvested Stock Options (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Options, Nonvested, Beginning balance (shares) | shares | 231,600 |
Options, Nonvested, Granted (in shares) | shares | 123,500 |
Options, Nonvested, Vested (shares) | shares | (114,325) |
Options, Nonvested, Forfeited (shares) | shares | (15,600) |
Options, Nonvested, Ending balance (shares) | shares | 225,175 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning balance, (in dollars per share) | $ / shares | $ 10.03 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Granted, (in dollars per share) | $ / shares | 6.53 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Vested, (in dollars per share) | $ / shares | 7.95 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Forfeited, (in dollars per share) | $ / shares | 8.08 |
Options, Nonvested, Weighted Average Grant Date Fair Value, Ending balance, (in dollars per share) | $ / shares | $ 8.77 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used for Estimating Fair Value of Share Based Payment Award (Detail) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percent) | 1.20% | 1.13% | 1.67% |
Expected volatility (percent) | 51.79% | 53.72% | 55.27% |
Expected dividends | $ 0 | $ 0 | $ 0 |
Expected term (in months) | 48 months | 47 months | 66 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units | |||
Outstanding | |||
Awards, Outstanding at beginning of period (in shares) | 155,191 | ||
Awards, Granted (in shares) | 139,450 | 108,500 | 86,300 |
Awards, Vested (in shares) | (84,107) | ||
Awards, Forfeited (in shares) | (17,152) | ||
Awards, Outstanding at ending of period (in shares) | 193,382 | 155,191 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 24.24 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 15.97 | $ 25.15 | $ 24.74 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 23.34 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 21.76 | ||
Outstanding at ending of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 18.88 | $ 24.24 | |
Performance Stock Units | |||
Outstanding | |||
Awards, Outstanding at beginning of period (in shares) | 133,497 | ||
Awards, Granted (in shares) | 62,500 | 64,000 | 67,500 |
Awards, Vested (in shares) | (44,979) | ||
Awards, Forfeited (in shares) | (29,381) | ||
Awards, Outstanding at ending of period (in shares) | 121,637 | 133,497 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 22.86 | ||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 15.92 | $ 25.51 | $ 24.90 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 18.36 | ||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 25.22 | ||
Outstanding at ending of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.39 | $ 22.86 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)CompensationPlan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of unfunded supplemental retirement plans | CompensationPlan | 3 | ||
Accumulated benefit obligations | $ 1.1 | $ 0.9 | |
Number of company sponsored 401(K) defined contribution plans | CompensationPlan | 1 | ||
Provision for matching and profit sharing contribution | $ 2.7 | 3.2 | $ 3.3 |
Estimated net actuarial loss for the defined benefit pension plan | 0.8 | ||
Excess of accumulated benefit obligation over fair value of plan assets | 11.1 | ||
Pension liability | 5.8 | 5.6 | |
Estimated employer Contribution to pension plan in next fiscal year | $ 0.9 | ||
Plan One covering all employees, other than employees of Miltec | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution by employee towards defined benefit plan | 25.00% | ||
Contribution by employer towards defined benefit plan | 50.00% | ||
Employee contribution compensation limit | 6.00% | ||
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability for LaBarge Deferred Compensation Plan | $ 0.6 | 0.5 | |
Interest on LaBarge Deferred Compensation Plan | $ 0.8 | $ 1.7 | |
Executives and Directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of unfunded supplemental retirement plans | CompensationPlan | 2 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Pension Cost for Defined Benefit Pension Plan and Retirement Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 531 | $ 785 | $ 693 |
Interest cost | 1,367 | 1,350 | 1,278 |
Expected return on plan assets | (1,482) | (1,495) | (1,400) |
Amortization of actuarial losses | 762 | 887 | 419 |
Net periodic pension cost | $ 1,178 | $ 1,527 | $ 990 |
Employee Benefit Plans - Reclas
Employee Benefit Plans - Reclassifications from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Amortization of actuarial loss - total before tax | $ 762 | ||
Tax benefit | (283) | $ (330) | $ (156) |
Net of tax | $ 479 | $ 557 | $ 263 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 31,510 | $ 33,299 | |
Service cost | 531 | 785 | $ 693 |
Interest cost | 1,367 | 1,350 | 1,278 |
Actuarial loss (gain) | 1,132 | (2,599) | |
Benefits paid | (1,386) | (1,325) | |
Ending benefit obligation (December 31) | 33,154 | 31,510 | 33,299 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 19,933 | 19,725 | |
Return on assets | 1,551 | (296) | |
Employer contribution | 1,917 | 1,829 | |
Benefits paid | (1,386) | (1,325) | |
Fair value of plan assets at end of year | 22,015 | 19,933 | 19,725 |
Funded status (underfunded) | (11,139) | (11,577) | |
Amounts recognized in the consolidated balance sheet | |||
Current liabilities | 545 | 527 | |
Non-current liabilities | 10,595 | 11,050 | |
Unrecognized loss included in accumulated other comprehensive loss | |||
Unrecognized loss before tax, beginning balance | 8,919 | 10,614 | |
Amortization | (762) | (887) | (419) |
Liability (gain) loss | 1,132 | (2,599) | |
Asset (loss) gain | (69) | 1,791 | |
Unrecognized loss before tax, ending balance | 9,220 | 8,919 | $ 10,614 |
Tax impact | (3,425) | (3,316) | |
Unrecognized loss included in accumulated other comprehensive loss, net of tax | $ 5,795 | $ 5,603 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plan Asset Allocations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 65.00% | 74.00% |
Cash and equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 2.00% | 6.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 33.00% | 20.00% |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocation Ranges (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 0.00% |
Maximum % | 5.00% |
Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 0.00% |
Maximum % | 25.00% |
Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum % | 25.00% |
Maximum % | 95.00% |
Employee Benefit Plans - Return
Employee Benefit Plans - Return on Current and Target Asset Allocation (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 22,015 | $ 19,933 | $ 19,725 |
Total fair value of plan assets, not including pooled funds | 6,205 | 14,603 | |
Pooled funds | 15,810 | 5,330 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 366 | 1,149 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3,468 | 3,986 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,611 | 9,468 | |
Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 760 | 0 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets, not including pooled funds | 6,205 | 14,603 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 366 | 1,149 | |
Level 1 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 3,468 | 3,986 | |
Level 1 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 1,611 | 9,468 | |
Level 1 | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 760 | 0 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets, not including pooled funds | 0 | 0 | |
Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 2 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 2 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 2 | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total fair value of plan assets, not including pooled funds | 0 | 0 | |
Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | 0 | 0 | |
Level 3 | Other Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plan | |||
Discount rate used to determine pension expense : | |||
Discount rate | 4.55% | 4.25% | 4.75% |
Discount rate used to determine value of obligations | |||
Discount rate | 4.18% | 4.55% | 4.25% |
Long term rate of return | 7.00% | 7.50% | 7.50% |
Retirement Plan | La Barge | |||
Discount rate used to determine pension expense : | |||
Discount rate | 4.00% | 3.70% | 4.00% |
Discount rate used to determine value of obligations | |||
Discount rate | 3.75% | 4.00% | 3.70% |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments Under Pension Plans (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | $ 1,063 |
2,018 | 1,174 |
2,019 | 1,215 |
2,020 | 1,297 |
2,021 | 1,369 |
2022 - 2026 | 7,862 |
Retirement Plan | La Barge | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,017 | 545 |
2,018 | 535 |
2,019 | 521 |
2,020 | 504 |
2,021 | 485 |
2022 - 2026 | $ 2,079 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Lease term, Minimum | 1 year | ||
Lease term, Maximum | 10 years | ||
Lease rental expense | $ 4.9 | $ 8.5 | $ 7.3 |
Leases - Rental Payments Under
Leases - Rental Payments Under Operating Lease (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 4,270 |
2,018 | 3,505 |
2,019 | 2,732 |
2,020 | 2,492 |
2,021 | 1,864 |
Thereafter | 1,106 |
Total | $ 15,969 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense (benefit) | |||||||||||
Federal | $ 5,953 | $ (1,511) | $ 5,258 | ||||||||
State | 2,982 | (418) | 244 | ||||||||
Current Income Tax Expense (Benefit), Total | 8,935 | (1,929) | 5,502 | ||||||||
Deferred tax expense (benefit) | |||||||||||
Federal | 3,876 | (28,011) | 1,186 | ||||||||
State | 41 | (1,771) | (315) | ||||||||
Deferred Income Tax Expense (Benefit), Total | 3,917 | (29,782) | 871 | ||||||||
Income tax expense (benefit) | $ 2,989 | $ 1,234 | $ 1,470 | $ 7,159 | $ (24,997) | $ (6,932) | $ 1,279 | $ (1,061) | $ 12,852 | $ (31,711) | $ 6,373 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Excess tax benefits from share-based compensation | $ (80) | $ 626 | $ 140 | |
Tax Credit Carryforward [Line Items] | ||||
Operating loss carryforward not expected to be realized under ASC subtopic 740-10 | 1,300 | |||
Tax credit carryforwards | 4,234 | 7,031 | ||
Tax credit carryforwards valuation allowance | 6,607 | 7,477 | ||
Permanent book to tax difference from goodwill impairment | 8,700 | |||
Federal research and development tax credit benefits recognized | 2,200 | 2,600 | 2,400 | |
Unrecognized tax benefits | 3,036 | $ 2,963 | $ 2,803 | $ 2,297 |
Unrecognized tax benefits that would impact effective tax rate | 2,000 | |||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards | 4,900 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 1,700 | |||
Tax credit carryforwards | 11,100 | |||
Tax credit carryforwards valuation allowance | $ 10,100 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Accrued expenses | $ 760 | $ 1,363 |
Allowance for doubtful accounts | 184 | 134 |
Contract overrun reserves | 1,776 | 4,412 |
Deferred compensation | 507 | 491 |
Employment-related accruals | 2,888 | 2,463 |
Environmental reserves | 769 | 772 |
Federal tax credit carryforwards | 4,234 | 7,031 |
Inventory reserves | 2,313 | 2,703 |
Investment in common stock | 0 | 297 |
Pension obligation | 4,002 | 3,299 |
State net operating loss carryforwards | 63 | 1,402 |
State tax credit carryforwards | 6,585 | 5,937 |
Stock-based compensation | 1,950 | 2,165 |
Workers’ compensation | 122 | 133 |
Other | 2,098 | 1,595 |
Total gross deferred tax assets | 28,251 | 34,197 |
Valuation allowance | (6,607) | (7,477) |
Total gross deferred tax assets, net of valuation allowance | 21,644 | 26,720 |
Deferred tax liabilities: | ||
Depreciation | (13,167) | (11,802) |
Goodwill | (3,909) | (3,632) |
Intangibles | (35,071) | (37,891) |
Prepaid insurance | (626) | (514) |
Section 481(a) adjustment | 0 | (682) |
Unbilled receivables | (2) | 0 |
Total gross deferred tax liabilities | (52,775) | (54,521) |
Net deferred tax liabilities | $ (31,131) | $ (27,801) |
Income Taxes - Variation Betwee
Income Taxes - Variation Between Expected and Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax (benefit) rate (percent) | 35.00% | (35.00%) | 35.00% |
State income taxes (net of federal benefit) (percent) | 5.70% | (1.20%) | 0.90% |
Qualified domestic production activities (percent) | (2.00%) | 0.50% | (2.30%) |
Research and development tax credits (percent) | (8.60%) | (2.90%) | (11.30%) |
Goodwill impairment (percent) | 0.00% | 8.10% | 0.00% |
Changes in valuation allowance | 0.90% | 0.60% | 8.50% |
Non-deductible book expenses | 0.20% | 0.20% | 0.90% |
Changes in deferred tax assets (percent) | 1.50% | 0.10% | (5.00%) |
Remeasurement of deferred taxes for changes in state tax law (percent) | 0.00% | 0.00% | (1.90%) |
Changes in tax reserves (percent) | 0.00% | 0.10% | (0.70%) |
Other (percent) | 1.00% | (0.20%) | 0.20% |
Effective income tax (benefit) rate (percent) | 33.70% | (29.70%) | 24.30% |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,963 | $ 2,803 | $ 2,297 |
Additions for tax positions related to the current year | 476 | 702 | 668 |
Additions for tax positions related to prior years | 385 | 0 | 31 |
Reductions for tax positions related to prior years | (567) | (48) | (22) |
Reductions for lapse of statute of limitations | (221) | (494) | (171) |
Ending Balance | $ 3,036 | $ 2,963 | $ 2,803 |
Contingencies (Detail)
Contingencies (Detail) $ in Millions | Oct. 08, 2014plaintiff | Dec. 31, 2016USD ($) |
Loss Contingencies [Line Items] | ||
Number of plaintiffs | plaintiff | 3 | |
Ducommun AeroStructures | El Mirage and Monrovia, California | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated liability | $ 1.5 | |
Ducommun AeroStructures | Casmalia and West Covina, California | ||
Loss Contingencies [Line Items] | ||
Reserve for estimated liability | 0.4 | |
Minimum | Ducommun AeroStructures | Casmalia and West Covina, California | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | 0.4 | |
Maximum | Ducommun AeroStructures | Casmalia and West Covina, California | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | $ 3.1 |
Major Customers and Concentra86
Major Customers and Concentrations of Credit Risk - Sales to Major Customers (Detail) - Customer Concentration Risk - Sales Revenue, Net | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Boeing | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 17.30% | 16.00% | 19.40% |
Raytheon | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 8.40% | 8.70% | 9.40% |
Spirit | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 8.20% | 7.40% | 6.40% |
United Technologies | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 6.00% | 6.10% | 5.50% |
Top Ten Customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 58.60% | 55.70% | 59.20% |
Major Customers and Concentra87
Major Customers and Concentrations of Credit Risk - Receivables from Customers (Detail) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Boeing | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 7.80% | 13.30% |
Raytheon | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 10.90% | 11.50% |
Spirit | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 9.00% | 7.10% |
United Technologies | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 7.80% | 5.00% |
Major Customers and Concentra88
Major Customers and Concentrations of Credit Risk - Additional Information (Detail) - Foreign Customers Worldwide - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Revenues | $ 56.4 | $ 60.2 | $ 66.7 |
Maximum | |||
Concentration Risk [Line Items] | |||
Percentage of sales | 3.00% | 3.00% | 3.00% |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Business Segment Information 90
Business Segment Information - Financial Information by Reportable Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | $ 142,486 | $ 132,571 | $ 133,437 | $ 142,148 | $ 156,576 | $ 161,670 | $ 174,845 | $ 172,920 | $ 550,642 | $ 666,011 | $ 742,045 |
Segment Operating Income (Loss) | 45,480 | (57,482) | 69,548 | ||||||||
Corporate General and Administrative Expenses | (16,912) | (17,827) | (17,781) | ||||||||
Operating Income (Loss) | 28,568 | (75,309) | 51,767 | ||||||||
Depreciation and amortization | 22,860 | 26,846 | 29,024 | ||||||||
Capital Expenditures | 18,693 | 15,988 | 18,554 | ||||||||
Goodwill impairment | 57,200 | 0 | 57,243 | 0 | |||||||
Intangible asset impairment | 32,900 | 0 | 32,937 | 0 | |||||||
Workers' compensation expense | 1,200 | ||||||||||
Structural Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill impairment | $ 57,200 | 57,200 | |||||||||
Forward loss provision | $ 10,000 | 10,000 | |||||||||
Operating Segments | Structural Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 246,465 | 273,319 | 319,956 | ||||||||
Segment Operating Income (Loss) | 16,497 | (53,010) | 34,949 | ||||||||
Depreciation and amortization | 8,688 | 9,417 | 10,959 | ||||||||
Capital Expenditures | 15,661 | 11,559 | 12,742 | ||||||||
Operating Segments | Electronic Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 304,177 | 392,692 | 422,089 | ||||||||
Segment Operating Income (Loss) | 28,983 | (4,472) | 34,599 | ||||||||
Depreciation and amortization | 14,087 | 17,267 | 17,928 | ||||||||
Capital Expenditures | 3,032 | 4,419 | 5,782 | ||||||||
Corporate Administration | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 85 | 162 | 137 | ||||||||
Capital Expenditures | $ 0 | $ 10 | $ 30 |
Business Segment Information 91
Business Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 515,429 | $ 557,081 |
Goodwill and Intangibles | 184,127 | 212,461 |
Operating Segments | Structural Systems | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 175,580 | 179,134 |
Goodwill and Intangibles | 3,745 | 4,866 |
Operating Segments | Electronic Systems | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 325,780 | 363,227 |
Goodwill and Intangibles | 180,382 | 207,595 |
Corporate Administration | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 14,069 | $ 14,720 |
Supplemental Quarterly Financ92
Supplemental Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Revenues | $ 142,486 | $ 132,571 | $ 133,437 | $ 142,148 | $ 156,576 | $ 161,670 | $ 174,845 | $ 172,920 | $ 550,642 | $ 666,011 | $ 742,045 |
Gross Profit | 27,786 | 25,223 | 26,215 | 26,969 | 22,796 | 20,028 | 31,207 | 26,761 | 106,193 | 100,792 | 140,332 |
Income (Loss) Before Taxes | 5,825 | 6,248 | 5,331 | 20,709 | (90,170) | (16,447) | 3,061 | (3,034) | 38,113 | (106,590) | 26,240 |
Income Tax Expense (Benefit) | 2,989 | 1,234 | 1,470 | 7,159 | (24,997) | (6,932) | 1,279 | (1,061) | 12,852 | (31,711) | 6,373 |
Net Income (Loss) | $ 2,836 | $ 5,014 | $ 3,861 | $ 13,550 | $ (65,173) | $ (9,515) | $ 1,782 | $ (1,973) | $ 25,261 | $ (74,879) | $ 19,867 |
Earnings (Loss) Per Share | |||||||||||
Basic earnings (loss) per share (in dollars per share) | $ 0.25 | $ 0.45 | $ 0.35 | $ 1.22 | $ (5.88) | $ (0.86) | $ 0.16 | $ (0.18) | $ 2.27 | $ (6.78) | $ 1.82 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.25 | $ 0.44 | $ 0.34 | $ 1.21 | $ (5.88) | $ (0.86) | $ 0.16 | $ (0.18) | $ 2.24 | $ (6.78) | $ 1.79 |
Supplemental Quarterly Financ93
Supplemental Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||||||
Goodwill impairment | $ 57,200 | $ 0 | $ 57,243 | $ 0 | ||||
Intangible asset impairment | 32,900 | 0 | 32,937 | 0 | ||||
Loss on extinguishment of debt | $ 11,900 | $ 2,800 | 0 | 14,720 | $ 0 | |||
Debt outstanding | 240,661 | 166,896 | 240,661 | |||||
Provision for forward loss reserves | 11,925 | 4,780 | 11,925 | |||||
Existing Credit Facilities | Senior Unsecured Notes | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Debt outstanding | 200,000 | $ 200,000 | ||||||
Call premium incurred on extinguishment of debt | 9,800 | 9,800 | ||||||
Debt issuance costs written off | 2,100 | $ 2,100 | ||||||
Pittsburgh and Miltec Operations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain (loss) on disposition of assets | $ 18,800 | |||||||
Structural Systems | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Goodwill impairment | 57,200 | 57,200 | ||||||
Forward loss provision | 10,000 | 10,000 | ||||||
Accrued Liabilities | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Provision for forward loss reserves | 7,600 | 7,600 | 7,600 | |||||
Other Noncurrent Liabilities | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Provision for forward loss reserves | $ 2,400 | $ 2,400 | $ 2,400 |
Valuation and Qualifying Acco94
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 359 | $ 252 | $ 489 |
Additions Charged to Costs and Expenses | 233 | 235 | 166 |
Deductions | 97 | 128 | 403 |
Balance at End of Period | 495 | 359 | 252 |
Valuation Allowance of Deferred Tax Assets | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 7,477 | 6,882 | 4,650 |
Additions Charged to Costs and Expenses | (870) | 595 | 2,232 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 6,607 | $ 7,477 | $ 6,882 |