Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 29, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | DUCOMMUN INC /DE/ | ||
Entity Central Index Key | 0000030305 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding | 11,606,827 | ||
Entity Public Float | $ 519 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 39,584 | $ 10,263 |
Accounts receivable (net of allowance for doubtful accounts of $1,321 and $1,135 at December 31, 2019 and 2018, respectively) | 67,133 | 67,819 |
Contract assets | 106,670 | 86,665 |
Inventories | 112,482 | 101,125 |
Production cost of contracts | 9,402 | 11,679 |
Other current assets | 5,497 | 6,531 |
Total Current Assets | 340,768 | 284,082 |
Property and Equipment, Net | 115,216 | 107,045 |
Operating lease right-of-use assets | 19,105 | 0 |
Goodwill | 170,917 | 136,057 |
Intangibles, Net | 138,362 | 112,092 |
Non-Current Deferred Income Taxes | 55 | 308 |
Other Assets | 6,006 | 5,155 |
Total Assets | 790,429 | 644,739 |
Current Liabilities | ||
Accounts payable | 82,597 | 69,274 |
Contract liabilities | 14,517 | 17,145 |
Accrued liabilities | 37,620 | 37,786 |
Operating lease liabilities | 2,956 | 0 |
Current portion of long-term debt | 7,000 | 2,330 |
Total Current Liabilities | 144,690 | 126,535 |
Long-Term Debt, Less Current Portion | 300,887 | 228,868 |
Non-Current Operating Lease Liabilities | 17,565 | 0 |
Non-Current Deferred Income Taxes | 16,766 | 18,070 |
Other Long-Term Liabilities | 17,721 | 14,441 |
Total Liabilities | 497,629 | 387,914 |
Commitments and Contingencies (Notes 13, 15) | ||
Shareholders’ Equity | ||
Common stock - $0.01 par value; 35,000,000 shares authorized; 11,572,668 and 11,417,863 shares issued and outstanding at December 31, 2019 and 2018, respectively | 116 | 114 |
Additional paid-in capital | 88,399 | 83,712 |
Retained earnings | 212,553 | 180,356 |
Accumulated other comprehensive loss | (8,268) | (7,357) |
Total Shareholders’ Equity | 292,800 | 256,825 |
Total Liabilities and Shareholders’ Equity | $ 790,429 | $ 644,739 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,321 | $ 1,135 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 35,000,000 | 35,000,000 |
Common stock, shares issued (in shares) | 11,572,668 | 11,417,863 |
Common Stock, shares outstanding (in shares) | 11,572,668 | 11,417,863 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net Revenues | $ 721,088 | $ 629,307 | $ 558,183 |
Cost of Sales | 568,891 | 506,711 | 455,050 |
Gross Profit | 152,197 | 122,596 | 103,133 |
Selling, General and Administrative Expenses | 95,964 | 84,007 | 79,139 |
Restructuring Charges | 0 | 14,671 | 8,360 |
Operating Income | 56,233 | 23,918 | 15,634 |
Interest Expense | (18,290) | (13,024) | (8,870) |
Loss on Extinguishment of Debt | (180) | (926) | 0 |
Other Income, Net | 0 | 303 | 845 |
Income Before Taxes | 37,763 | 10,271 | 7,609 |
Income Tax Expense (Benefit) | 5,302 | 1,236 | (12,468) |
Net Income | $ 32,461 | $ 9,035 | $ 20,077 |
Earnings Per Share | |||
Basic earnings (loss) per share (in dollars per share) | $ 2.82 | $ 0.79 | $ 1.78 |
Diluted earnings (loss) per share (in dollars per share) | $ 2.75 | $ 0.77 | $ 1.74 |
Weighted-Average Number of Shares Outstanding | |||
Basic (in shares) | 11,518 | 11,390 | 11,290 |
Diluted (in shares) | 11,792 | 11,659 | 11,558 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 32,461 | $ 9,035 | $ 20,077 |
Pension Adjustments: | |||
Amortization of actuarial losses and prior service costs, net of tax of $209, $173, and $302 for 2019, 2018, and 2017, respectively | 676 | 570 | 508 |
Actuarial losses arising during the period, net of tax benefit of $502, $302, and $194 for 2019, 2018, and 2017, respectively | (1,682) | (899) | (304) |
Change in net unrealized gains (losses) on cash flow hedges, net of tax expense (benefit) of $29, $121, and $(145) for 2019, 2018, and 2017, respectively | 95 | ||
Change in net unrealized gains (losses) on cash flow hedges, net of tax expense (benefit) of $29, $121, and $(145) for 2019, 2018, and 2017, respectively | 407 | (242) | |
Other Comprehensive (Loss) Income, Net of Tax | (911) | 78 | (38) |
Comprehensive Income, Net of Tax | $ 31,550 | $ 9,113 | $ 20,039 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Amortization of actuarial (loss) gain, tax | $ 209 | $ 173 | $ 302 |
Actuarial gain (loss) arising during the period, tax expense (benefit) | 502 | 302 | 194 |
Unrealized gain (loss) on cash flow hedge, tax | $ 29 | ||
Unrealized gain (loss) on cash flow hedges, tax | $ 121 | $ (145) |
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, 2016 | 11,193,813 | |||||
Beginning Balance at Dec. 31, 2016 | $ 212,103 | $ 112 | $ 0 | $ 76,783 | $ 141,287 | $ (6,079) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 20,077 | 20,077 | ||||
Other comprehensive income (loss), net of tax | (38) | (38) | ||||
Exercised (in shares) | 212,775 | |||||
Stock options exercised | 4,336 | $ 2 | 4,334 | |||
Stock repurchased related to the exercise of stock options (in shares) | (219,164) | |||||
Stock repurchased related to the exercise of stock options | (6,904) | $ (2) | (6,902) | |||
Stock awards vested (in shares) | 145,417 | |||||
Stock awards vested | 0 | $ 1 | (1) | |||
Stock-based compensation | 6,009 | 6,009 | ||||
Ending Balance (in shares) at Dec. 31, 2017 | 11,332,841 | |||||
Ending Balance at Dec. 31, 2017 | 235,583 | $ 113 | 0 | 80,223 | 161,364 | (6,117) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 9,035 | 9,035 | ||||
Other comprehensive income (loss), net of tax | 78 | 78 | ||||
Adoption of ASU 2018-02 adjustment | (26) | 1,292 | (1,318) | |||
Exercised (in shares) | 84,800 | |||||
Stock options exercised | 1,822 | $ 1 | 1,821 | |||
Stock repurchased related to the exercise of stock options (in shares) | (98,438) | |||||
Stock repurchased related to the exercise of stock options | (3,372) | $ (1) | (3,371) | |||
Stock awards vested (in shares) | 98,660 | |||||
Stock awards vested | 0 | $ 1 | (1) | |||
Stock-based compensation | 5,040 | 5,040 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 11,417,863 | |||||
Ending Balance at Dec. 31, 2018 | 256,825 | $ 114 | 0 | 83,712 | 180,356 | (7,357) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 32,461 | |||||
Other comprehensive income (loss), net of tax | (911) | (911) | ||||
Employee stock purchase plan (in shares) | 26,521 | |||||
Employee stock purchase plan | $ 1,118 | 1,118 | ||||
Exercised (in shares) | 80,693 | 80,693 | ||||
Stock options exercised | $ 2,015 | $ 1 | 2,014 | |||
Stock repurchased related to the exercise of stock options (in shares) | (123,192) | |||||
Stock repurchased related to the exercise of stock options | (5,605) | $ (1) | (5,604) | |||
Stock awards vested (in shares) | 170,783 | |||||
Stock awards vested | 0 | $ 2 | (2) | |||
Stock-based compensation | 7,161 | 7,161 | ||||
Ending Balance (in shares) at Dec. 31, 2019 | 11,572,668 | |||||
Ending Balance at Dec. 31, 2019 | $ 292,800 | $ 116 | $ 0 | $ 88,399 | $ 212,553 | $ (8,268) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net Income | $ 32,461 | $ 9,035 | $ 20,077 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities | |||
Depreciation and amortization | 28,305 | 25,296 | 22,845 |
Non-cash operating lease cost | 2,669 | 0 | 0 |
Property and equipment impairment due to restructuring | 0 | 6,207 | 3,607 |
Stock-based compensation expense | 7,161 | 5,040 | 4,675 |
Deferred income taxes | (1,830) | 2,042 | (15,411) |
Provision for doubtful accounts | 186 | 267 | 373 |
Noncash loss on extinguishment of debt | 180 | 926 | 0 |
Other | 942 | 11,659 | (1,182) |
Changes in Assets and Liabilities: | |||
Accounts receivable | 2,380 | 7,495 | 2,720 |
Contract assets | (20,005) | (86,665) | 0 |
Inventories | (8,491) | 23,243 | (533) |
Production cost of contracts | (1,079) | (1,569) | (267) |
Other assets | 1,358 | 1,881 | 40 |
Accounts payable | 11,620 | 18,496 | (4,015) |
Contract liabilities | (2,628) | 17,145 | 0 |
Accrued and other liabilities | (2,198) | 5,739 | 2,505 |
Net Cash Provided by Operating Activities | 51,031 | 46,237 | 35,434 |
Cash Flows from Investing Activities | |||
Purchases of property and equipment | (18,290) | (17,617) | (27,610) |
Proceeds from sale of assets | 3 | 396 | 913 |
Insurance recoveries related to property and equipment | 0 | 0 | 288 |
Payments for acquisition of Lightning Diversion Systems, LLC, net of cash acquired | 0 | 0 | (59,798) |
Payments for acquisition of Certified Thermoplastics Co., LLC, net of cash acquired | 0 | (30,712) | 0 |
Payments for acquisition of Nobles Worldwide, Inc. net of cash acquired | (76,647) | 0 | 0 |
Net Cash Used in Investing Activities | (94,934) | (47,933) | (86,207) |
Cash Flows from Financing Activities | |||
Borrowings from senior secured revolving credit facility | 298,400 | 296,400 | 395,900 |
Repayment of senior secured revolving credit facility | (298,400) | (354,500) | (337,800) |
Borrowings from term loans | 140,000 | 240,000 | 0 |
Repayments of term loans | (63,000) | (167,000) | (10,000) |
Repayments of other debt | (169) | 0 | (3) |
Debt issuance costs | (1,135) | (3,541) | 0 |
Net cash paid from issuance of common stock under stock plans | (2,472) | (1,550) | (2,606) |
Net Cash Provided by Financing Activities | 73,224 | 9,809 | 45,491 |
Net Increase (Decrease) in Cash and Cash Equivalents | 29,321 | 8,113 | (5,282) |
Cash and Cash Equivalents at Beginning of Year | 10,263 | 2,150 | 7,432 |
Cash and Cash Equivalents at End of Year | $ 39,584 | $ 10,263 | $ 2,150 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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 and defense (“A&D”), industrial, medical, and other industries (collectively, “Industrial”). Our operations 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 electronic and electromechanical products used in worldwide technology-driven markets including A&D and Industrial end-use markets. Electronic Systems’ product offerings primarily range from prototype development to complex assemblies. Structural Systems designs, engineers and manufactures large, complex contoured aerostructure components and assemblies and supplies composite and metal bonded structures and assemblies. Structural Systems’ products are primarily 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 present our consolidated financial position, statements of income, comprehensive income, 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. Changes in Accounting Policies We adopted Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”), on January 1, 2019. As a result, we changed our accounting policy for lease accounting as discussed in Note 2. We applied ASC 842 using the additional transition method and therefore, recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening consolidated balance sheet at January 1, 2019. Therefore, the comparative information has not been adjusted and continues to be reported under the previous lease accounting standard, ASC 840, “Leases” (“ASC 840”). The details of the significant changes and quantitative impact of the changes are described in Note 2. We adopted ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), on January 1, 2018. As a result, we changed our accounting policy for revenue recognition and the majority of our revenues began being recognized over time. The majority of our inventory began being charged to cost of sales as raw materials are placed into production and the related revenue is recognized. Revenues recognized before billing are classified as contract assets. Payments received from customers prior to our billing are classified as contract liabilities. The determination of our provision for estimated losses on contracts was also changed as the definition of a contract for us became the customer purchase order instead of the long-term arrangements and are classified as contract liabilities. We applied ASC 606 using the modified retrospective method (also known as the cumulative effect method) and as such, recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening consolidated balance sheet at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under the previous revenue recognition accounting standard, ASC 605, “Revenue Recognition” (“ASC 605”). 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. Supplemental Cash Flow Information (Dollars in thousands) Years Ended December 31, 2019 2018 2017 Interest paid $ 16,474 $ 11,573 $ 7,307 Taxes paid $ 5,699 $ 316 $ 3,125 Non-cash activities: Purchases of property and equipment not paid $ 1,380 $ 824 $ 2,104 Fair Value Assets and liabilities that are measured, recorded or disclosed at fair value on a recurring basis are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Level 1, the highest level, refers to the values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant observable inputs. Level 3, the lowest level, includes fair values estimated using significant unobservable inputs. We have money market funds and they are included as cash and cash equivalents. We also have interest rate cap hedge agreements and the fair value of the interest rate cap hedge agreements were determined using pricing models that use observable market inputs as of the balance sheet date, a Level 2 measurement. The interest rate cap hedge premium was zero as of December 31, 2019. There were no transfers between Level 1, Level 2, or Level 3 financial instruments in either 2019 or 2018. 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, 2019 and December 31, 2018 , 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 in 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. In 2019, the impact of cash flow hedges was insignificant. 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 net realizable value with cost being determined using a moving average cost basis for raw materials and actual cost for work-in-process and finished goods. The majority of our inventory is charged to cost of sales as raw materials are placed into production and the related revenue is recognized. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle performance center expense, freight, handling costs, and wasted materials (spoilage) incurred. We assess the inventory carrying value and reduce it, 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. The majority of our revenues are recognized over time, however, for revenue contracts where revenue is recognized using the point in time method, inventory is not reduced until it is shipped or transfer of control to the customer has occurred. Our ending inventory consists of raw materials, work-in-process, and finished goods. 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 sales using the over time revenue recognition model. We review the value of the production cost of contracts on a quarterly basis to ensure when added to the estimated cost to complete, the value is not greater than the estimated realizable value of the related contracts. As of December 31, 2019 and 2018 , production costs of contracts were $9.4 million and $11.7 million , respectively. Property and Equipment and Depreciation Property and equipment, including assets recorded under operating and finance 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 Goodwill is evaluated for impairment on an annual basis on the first day of the fourth fiscal quarter. If certain factors occur, including significant under performance of our business relative to expected operating results, significant adverse economic and industry trends, significant decline in our market capitalization for an extended period of time relative to net book value, a decision to divest individual businesses within a reporting unit, or a decision to group individual businesses differently, we may perform an impairment test prior to the fourth quarter. In addition, we early adopted ASU 2017-04 on January 1, 2019 which simplified our goodwill impairment testing by eliminating Step Two of the goodwill impairment test. See Note 1. We acquired Certified Thermoplastics Co., LLC (“CTP”) in April 2018 and recorded goodwill of $18.6 million in our Structural Systems segment, which is also our reporting unit. Since a goodwill impairment analysis is required to be performed within one year of the acquisition date or sooner upon a triggering event, we performed a Step One goodwill impairment analysis as of April 2019 for our Structural Systems segment. The fair value of our Structural Systems segment exceeded its carrying value by 85% and thus, was not deemed impaired. In the fourth quarter of 2019, the carrying amount of goodwill at the date of the most recent annual impairment evaluation for Electronic Systems and Structural Systems was $117.4 million and $18.6 million , respectively. As of the date of our 2019 annual evaluation for goodwill impairment, for the Electronic Systems segment, which is also our reporting unit, we elected to perform a Step One goodwill impairment analysis and will continue to do so from time to time. The fair value of our Electronic Systems segment exceeded its carrying value by 44% and thus, was not deemed impaired. As of the date of our 2019 annual evaluation for goodwill impairment, for the Structural Systems segment, we used a qualitative assessment including 1) margin of passing most recent step 1 analysis, 2) earnings before interest, taxes, depreciation, and amortization, 3) long-term growth rate, 4) analyzing material adverse factors/changes between valuation dates, 5) general macroeconomic factors, and 6) industry and market conditions, noting it was not more likely than not that the fair value of a reporting unit is less than its carrying amount and thus, goodwill was not deemed impaired. Other Intangible Assets We amortize acquired other intangible assets with finite lives over the estimated economic lives of the assets, ranging from 10 to 18 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 on the consolidated balance sheets under the equity section, was comprised 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 Our customers typically engage us to manufacture products based on designs and specifications provided by the end-use customer. This requires the building of tooling and manufacturing first article inspection products (prototypes) before volume manufacturing. Contracts with our customers generally include a termination for convenience clause. We have a significant number of contracts that are started and completed within the same year, as well as contracts derived from long-term agreements and programs that can span several years. We recognize revenue under ASC 606, which utilizes a five-step model. The definition of a contract for us is typically defined as a customer purchase order as this is when we achieve an enforceable right to payment. The majority of our contracts are firm fixed-price contracts. The deliverables within a customer purchase order are analyzed to determine the number of performance obligations. In addition, at times, in order to achieve economies of scale and based on our customer’s forecasted demand, we may build in advance of receiving a purchase order from our customer. When that occurs, we would not recognize revenue until we have received the customer purchase order. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account under ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control is transferred and the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services are highly interrelated or met the series guidance. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate the standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. We manufacture most products to customer specifications and the product cannot be easily modified for another customer. As such, these products are deemed to have no alternative use once the manufacturing process begins. In the event the customer invokes a termination for convenience clause, we would be entitled to costs incurred to date plus a reasonable profit. Contract costs typically include labor, materials, overhead, and when applicable, subcontractor costs. For most of our products, we are building assets with no alternative use and have enforceable right to payment, and thus, we recognize revenue using the over time method. The majority of our performance obligations are satisfied over time as work progresses. Typically, revenue is recognized over time using an input measure (i.e., costs incurred to date relative to total estimated costs at completion, also known as cost-to-cost plus reasonable profit) to measure progress. Our typical revenue contract is a firm fixed price contract, and the cost of raw materials could make up a significant amount of the total costs incurred. As such, we believe using the total costs incurred input method would be the most appropriate method. While the cost of raw materials could make up a significant amount of the total costs incurred, there is a direct relationship between our inputs and the transfer of control of goods or services to the customer. Contract estimates are based on various assumptions to project the outcome of future events that can span multiple months or years. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; and the performance of subcontractors. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates on a regular basis. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. Net cumulative catch-up adjustments on profit recorded were not material for the year ended December 31, 2019 . Payments under long-term contracts may be received before or after revenue is recognized. When revenue is recognized before we bill our customer, a contract asset is created for the work performed but not yet billed. Similarly, when we receive payment before we ship our products to our customer, a contract liability is created for the advance or progress payment. Contract Assets and Contract Liabilities Contract assets consist of our right to payment for work performed but not yet billed. Contract assets are transferred to accounts receivable when we bill our customers. We bill our customers when we ship the products and meet the shipping terms within the revenue contract. Contract liabilities consist of advance or progress payments received from our customers prior to the time transfer of control occurs plus the estimated losses on contracts. Contract assets and contract liabilities from revenue contracts with customers are as follows: (Dollars in thousands) December 31, December 31, Contract assets $ 106,670 $ 86,665 Contract liabilities $ 14,517 $ 17,145 Remaining performance obligations is defined as customer placed purchase orders (“POs”) with firm fixed price and firm delivery dates. Our remaining performance obligations as of December 31, 2019 totaled $745.3 million . We anticipate recognizing an estimated 65% of our remaining performance obligations as revenue during the next 12 months with the remaining performance obligations being recognized in 2021 and beyond. Revenue by Category In addition to the revenue categories disclosed above, the following table reflects our revenue disaggregated by major end-use market: (Dollars in thousands) Years Ended December 31, % of Net Revenues Change 2019 2018 2019 2018 Consolidated Ducommun Military and space $ 46,208 $ 323,800 $ 277,592 44.9 % 44.1 % Commercial aerospace 44,981 348,503 303,522 48.3 % 48.2 % Industrial 592 48,785 48,193 6.8 % 7.7 % Total $ 91,781 $ 721,088 $ 629,307 100.0 % 100.0 % Electronic Systems Military and space $ 28,526 $ 244,245 $ 215,719 67.8 % 63.8 % Commercial aerospace (6,613 ) 67,343 73,956 18.7 % 21.9 % Industrial 592 48,785 48,193 13.5 % 14.3 % Total $ 22,505 $ 360,373 $ 337,868 100.0 % 100.0 % Structural Systems Military and space $ 17,682 $ 79,555 $ 61,873 22.1 % 21.2 % Commercial aerospace 51,594 281,160 229,566 77.9 % 78.8 % Total $ 69,276 $ 360,715 $ 291,439 100.0 % 100.0 % 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 us 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. Our estimate of the future cost to complete a contract may include assumptions as to changes in manufacturing efficiency, 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 adjust the provisions for estimated losses on contracts. The provision for estimated losses on contracts is included as part of contract liabilities on the consolidated balance sheets. As of December 31, 2019 and 2018 , provision for estimated losses on contracts were $4.2 million and $5.3 million , respectively. Income Taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities. 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. 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 except for market condition awards for which the fair value was based on a Monte Carlo simulation model. Earnings 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 is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding, plus potentially dilutive shares that could be issued if exercised or converted into common stock in each period. The net income and weighted-average common shares outstanding used to compute earnings per share were as follows: (In thousands, except per share data) Years Ended December 31, 2019 2018 2017 Net income $ 32,461 $ 9,035 $ 20,077 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,518 11,390 11,290 Dilutive potential common shares 274 269 268 Diluted weighted-average common shares outstanding 11,792 11,659 11,558 Earnings per share Basic $ 2.82 $ 0.79 $ 1.78 Diluted $ 2.75 $ 0.77 $ 1.74 Potentially dilutive stock awards 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, 2019 2018 2017 Stock options and stock units 127 208 126 Recent Accounting Pronouncements New Accounting Guidance Adopted in 2019 In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates” (“ASU 2019-07”), which improve, update, and simplify its regulations on financial reporting and disclosure. The new guidance was effective when issued, which is our interim period ending September 28, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging” (“ASU 2017-12”), which intends to improve and simplify accounting rules around hedge accounting. ASU 2017-12 refines and expands hedge accounting for both financial (i.e., interest rate) and commodity risks. In addition, it creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. The new guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, which is our interim period beginning January 1, 2019. Early adoption is permitted, including adoption in any interim period after the issuance of ASU 2017-12. The adoption of this standard did not have a material impact on our consolidated financial statements. 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. The adoption of this standard did not have a material 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 or the additional transition method. Under the additional transition method, the cumulative effect of applying the new guidance is recognized as an adjustment to certain captions on the balance sheet, including the opening balance of retained earnings in the first quarter of 2019, and the prior years’ financial information will be presented under the prior accounting standard, ASC 840, “Leases,” (“ASC 840”). Additional guidance was issued subsequently as follows: • July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”); and • July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) All the new guidance was effective for us beginning January 1, 2019. The cumulative impact to our retained earnings at January 1, 2019 was a net decrease of $0.3 million . See Note 2. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which removes certain exceptions and provides guidance on various areas of tax accounting. The new guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2021. Early adoption is permitted. We are evaluating the impact of this standard. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Statements” (“ASU 2019-04”), which clarify, correct, and improve various aspects of the guidance in ASU 2016-01, ASU 2016-13, and ASU 2017-12. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2020. We are evaluating the impact of this standard. In Mar |
Adoption of Accounting Standard
Adoption of Accounting Standards Codification 842 | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Adoption of Accounting Standards Codification 842 | Adoption of Accounting Standards Codification 842 We adopted ASC 842 with an initial application as of January 1, 2019. We utilized the additional transition method, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to certain captions on the consolidated balance sheet, including the opening balance of retained earnings in the year ended December 31, 2019 . As part of the adoption of ASC 842, we have elected to utilize the following practical expedients that are permitted under ASC 842: • Need not reassess whether any expired or existing contracts are or contain leases; • Need not reassess the lease classification for any expired or existing leases; • Need not reassess initial direct costs for any existing leases; • As an accounting policy election by class of underlying asset, choose not to separate nonlease components from lease components and instead to account for each separate lease component and the nonlease components associated with that lease component as a single lease component; and • As an accounting policy election not to apply the recognition requirements in ASC 842 to short term leases (a lease at commencement date has a lease term of 12 months or less and does not contain a purchase option that the lessee is reasonably certain to exercise). The net impact to the various captions on our January 1, 2019 opening consolidated balance sheets was as follows: (Dollars in thousands) December 31, 2018 January 1, 2019 Unaudited Consolidated Balance Sheets Balances Without Adoption of ASC 842 Effect of Adoption Balances With Adoption of ASC 842 Assets Other current assets $ 6,531 $ (208 ) $ 6,323 Operating lease right-of-use assets $ — $ 18,985 $ 18,985 Non-current deferred income taxes $ 308 $ 5 $ 313 Other assets $ 5,155 $ 254 $ 5,409 Liabilities Operating lease liabilities $ — $ 2,544 $ 2,544 Accrued and other liabilities $ 37,786 $ (329 ) $ 37,457 Non-current operating lease liabilities $ — $ 18,117 $ 18,117 Non-current deferred income taxes $ 18,070 $ (76 ) $ 17,994 Other long-term liabilities $ 14,441 $ (956 ) $ 13,485 Shareholders’ Equity Retained earnings $ 180,356 $ (264 ) $ 180,092 The net impact to retained earnings as a result of adopting ASC 842 on the January 1, 2019 opening balance sheet was shown as a change in “other” on the consolidated statements of cash flows. We have operating and finance leases for manufacturing facilities, corporate offices, and various equipment. Our leases have remaining lease terms of 1 to 11 years, some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The components of lease expense for the year ended December 31, 2019 were as follows: (In thousands) Operating leases expense $ 3,963 Finance leases expense: Amortization of right-of-use assets $ 216 Interest on lease liabilities 42 Total finance lease expense $ 258 Short term and variable lease expense for the year ended December 31, 2019 were not material. Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,030 Operating cash flows from finance leases $ 39 Financing cash flows from finance leases $ 169 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,574 Finance leases $ 483 The weighted average remaining lease terms as of December 31, 2019 were as follows: (In years) Operating leases 7 Finance leases 4 When a lease is identified, we recognize a right-of-use asset and a corresponding lease liability based on the present value of the lease payments over the lease term discounted using our incremental borrowing rate, unless an implicit rate is readily determinable. As the discount rate in our leases is usually not readily available, we use our own incremental borrowing rate as the discount rate. Our incremental borrowing rate is based on the interest rate on our term loan, which is a secured rate. The interest rate on our term loan is based on London Interbank Offered Rate (“LIBOR”) plus an applicable margin. The difference between a three year, five year, or seven year LIBOR rate was not deemed significant and thus, we have chosen to use the five year incremental borrowing rate for all our leases. The weighted average discount rates as of December 31, 2019 were as follows: Operating leases 6.5 % Finance leases 6.5 % Maturity of operating and finance lease liabilities are as follows: (In thousands) Operating Leases Finance Leases 2020 $ 4,178 $ 242 2021 4,147 229 2022 3,756 92 2023 3,425 53 2024 3,003 26 Thereafter 7,022 46 Total lease payments 25,531 688 Less imputed interest 5,010 74 Total $ 20,521 $ 614 Operating lease payments include $11.4 million related to options to extend lease terms that are reasonably certain of being exercised. As of December 31, 2019 , there are no legally binding minimum lease payments for leases signed but not yet commenced. Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are not significant. As of December 31, 2019 , it excludes $1.3 million of legally binding minimum lease payments for leases signed but not yet commenced. These finance leases will commence during 2020 with lease terms of 7 years to 10 years . As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous accounting maturities of lease liabilities were as follows as of December 31, 2018 : (In thousands) 2019 $ 3,680 2020 3,405 2021 2,789 2022 1,404 2023 980 Thereafter 580 Total $ 12,838 |
Adoption of Accounting Standards Codification 842 | Adoption of Accounting Standards Codification 842 We adopted ASC 842 with an initial application as of January 1, 2019. We utilized the additional transition method, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to certain captions on the consolidated balance sheet, including the opening balance of retained earnings in the year ended December 31, 2019 . As part of the adoption of ASC 842, we have elected to utilize the following practical expedients that are permitted under ASC 842: • Need not reassess whether any expired or existing contracts are or contain leases; • Need not reassess the lease classification for any expired or existing leases; • Need not reassess initial direct costs for any existing leases; • As an accounting policy election by class of underlying asset, choose not to separate nonlease components from lease components and instead to account for each separate lease component and the nonlease components associated with that lease component as a single lease component; and • As an accounting policy election not to apply the recognition requirements in ASC 842 to short term leases (a lease at commencement date has a lease term of 12 months or less and does not contain a purchase option that the lessee is reasonably certain to exercise). The net impact to the various captions on our January 1, 2019 opening consolidated balance sheets was as follows: (Dollars in thousands) December 31, 2018 January 1, 2019 Unaudited Consolidated Balance Sheets Balances Without Adoption of ASC 842 Effect of Adoption Balances With Adoption of ASC 842 Assets Other current assets $ 6,531 $ (208 ) $ 6,323 Operating lease right-of-use assets $ — $ 18,985 $ 18,985 Non-current deferred income taxes $ 308 $ 5 $ 313 Other assets $ 5,155 $ 254 $ 5,409 Liabilities Operating lease liabilities $ — $ 2,544 $ 2,544 Accrued and other liabilities $ 37,786 $ (329 ) $ 37,457 Non-current operating lease liabilities $ — $ 18,117 $ 18,117 Non-current deferred income taxes $ 18,070 $ (76 ) $ 17,994 Other long-term liabilities $ 14,441 $ (956 ) $ 13,485 Shareholders’ Equity Retained earnings $ 180,356 $ (264 ) $ 180,092 The net impact to retained earnings as a result of adopting ASC 842 on the January 1, 2019 opening balance sheet was shown as a change in “other” on the consolidated statements of cash flows. We have operating and finance leases for manufacturing facilities, corporate offices, and various equipment. Our leases have remaining lease terms of 1 to 11 years, some of which include options to extend the leases for up to 5 years , and some of which include options to terminate the leases within 1 year . The components of lease expense for the year ended December 31, 2019 were as follows: (In thousands) Operating leases expense $ 3,963 Finance leases expense: Amortization of right-of-use assets $ 216 Interest on lease liabilities 42 Total finance lease expense $ 258 Short term and variable lease expense for the year ended December 31, 2019 were not material. Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,030 Operating cash flows from finance leases $ 39 Financing cash flows from finance leases $ 169 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,574 Finance leases $ 483 The weighted average remaining lease terms as of December 31, 2019 were as follows: (In years) Operating leases 7 Finance leases 4 When a lease is identified, we recognize a right-of-use asset and a corresponding lease liability based on the present value of the lease payments over the lease term discounted using our incremental borrowing rate, unless an implicit rate is readily determinable. As the discount rate in our leases is usually not readily available, we use our own incremental borrowing rate as the discount rate. Our incremental borrowing rate is based on the interest rate on our term loan, which is a secured rate. The interest rate on our term loan is based on London Interbank Offered Rate (“LIBOR”) plus an applicable margin. The difference between a three year, five year, or seven year LIBOR rate was not deemed significant and thus, we have chosen to use the five year incremental borrowing rate for all our leases. The weighted average discount rates as of December 31, 2019 were as follows: Operating leases 6.5 % Finance leases 6.5 % Maturity of operating and finance lease liabilities are as follows: (In thousands) Operating Leases Finance Leases 2020 $ 4,178 $ 242 2021 4,147 229 2022 3,756 92 2023 3,425 53 2024 3,003 26 Thereafter 7,022 46 Total lease payments 25,531 688 Less imputed interest 5,010 74 Total $ 20,521 $ 614 Operating lease payments include $11.4 million related to options to extend lease terms that are reasonably certain of being exercised. As of December 31, 2019 , there are no legally binding minimum lease payments for leases signed but not yet commenced. Finance lease payments related to options to extend lease terms that are reasonably certain of being exercised are not significant. As of December 31, 2019 , it excludes $1.3 million of legally binding minimum lease payments for leases signed but not yet commenced. These finance leases will commence during 2020 with lease terms of 7 years to 10 years . As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous accounting maturities of lease liabilities were as follows as of December 31, 2018 : (In thousands) 2019 $ 3,680 2020 3,405 2021 2,789 2022 1,404 2023 980 Thereafter 580 Total $ 12,838 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination | Business Combinations Nobles Worldwide, Inc. On October 8, 2019, we acquired 100.0% of the outstanding equity interests of Nobles Parent Inc., the parent company of Nobles Worldwide, Inc. (“Nobles”), a privately-held global leader in the design and manufacturing of high performance ammunition handling systems for a wide range of military platforms including fixed-wing aircraft, rotary-wing aircraft, ground vehicles, and shipboard systems. Nobles is located in St. Croix Falls, Wisconsin. The acquisition of Nobles advances our strategy to diversify and offer more customized, value-driven engineered products with aftermarket opportunities. The purchase price for Nobles was $77.0 million , net of cash acquired, all payable in cash. We paid $77.3 million upon the closing of the transaction. We preliminarily allocated the gross purchase price of $77.3 million to the assets acquired and liabilities assumed at estimated fair values. The excess of the purchase price over the aggregate fair values of the net assets was recorded as goodwill. The allocation is subject to revision as the estimates of fair value of the assets acquired and liabilities assumed are based on preliminary information and are subject to refinement. We are in the process of reviewing third party valuation of the assets and liabilities. The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Estimated Fair Value Cash $ 658 Accounts receivable 1,880 Inventories 2,866 Other current assets 168 Property and equipment 2,319 Intangible assets 37,700 Goodwill 34,860 Other non-current assets 675 Total assets acquired 81,126 Current liabilities (2,285 ) Net non-current deferred tax liability (861 ) Other non-current liabilities (675 ) Total liabilities assumed (3,821 ) Total purchase price allocation $ 77,305 Useful Life Estimated Fair Value (In thousands) Intangible assets: Customer relationships 15-16 $ 34,700 Trade names and trademarks 15 3,000 $ 37,700 The intangible assets acquired of $37.7 million were preliminarily determined based on the estimated fair values using valuation techniques consistent with the income approach to measure fair value. The useful lives were estimated based on the underlying agreements or the future economic benefit expected to be received from the assets. The fair values of the identifiable intangible assets were estimated using several valuation methodologies, which represented Level 3 fair value measurements. The value for customer relationships was estimated based on a multi-period excess earnings approach, while the value for trade names and trademarks was assessed using the relief from royalty methodology. The goodwill of $34.9 million arising from the acquisition is attributable to the benefits we expect to derive from expected synergies from the transaction, including complementary products that will enhance our overall product portfolio, opportunities within new markets, and an acquired assembled workforce. All the goodwill was assigned to the Structural Systems segment. The Nobles acquisition, for tax purposes, is also deemed a stock acquisition and thus, the goodwill recognized is not deductible for income tax purposes except for $6.7 million of pre-acquisition goodwill that is tax deductible. Acquisition related transaction costs were not included as components of consideration transferred but have been expensed as incurred. Total acquisition-related transaction costs incurred by us were $0.8 million during 2019 and charged to selling, general and administrative expenses. Nobles’ results of operations have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. Pro forma results of operations of the Nobles acquisition have not been presented as the effect of the Nobles acquisition was not material to our financial results. Certified Thermoplastics Co., LLC In April 2018, we acquired 100.0% of the outstanding equity interests of Certified Thermoplastics Co., LLC (“CTP”), a privately-held leader in precision profile extrusions and extruded assemblies of engineered thermoplastic resins, compounds, and alloys for a wide range of commercial aerospace, defense, medical, and industrial applications. CTP is located in Santa Clarita, California. The acquisition of CTP was part of our strategy to diversify towards more customized, higher value, engineered products with greater aftermarket potential. The purchase price for CTP was $30.7 million , net of cash acquired, all payable in cash. We paid an aggregate of $30.8 million in cash related to this transaction. We allocated the gross purchase price of $30.8 million to the assets acquired and liabilities assumed at estimated fair values. The estimated fair value of the assets acquired included $8.1 million of intangible assets, $2.2 million of inventories, $1.5 million of accounts receivable, $0.6 million of property and equipment, $0.1 million of cash, less than $0.1 million of other current assets, and $0.4 million of liabilities assumed. The excess of the purchase price over the aggregate fair values of the assets acquired and liabilities assumed of $18.6 million was recorded as goodwill. The intangible assets acquired were comprised of $6.9 million for customer relationships and $1.2 million for trade names and trademarks, all of which were assigned an estimated useful life of 10 years . All the goodwill was assigned to the Structural Systems segment. Since the CTP acquisition, for tax purposes, was deemed an asset acquisition, the goodwill recognized is deductible for income tax purposes. CTP’s results of operations have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities In November 2017, management approved and commenced a restructuring plan that was intended to increase operating efficiencies (“2017 Restructuring Plan”). We completed the 2017 Restructuring Plan as of December 31, 2018 and have recorded cumulative expenses of $23.6 million , with $14.8 million recorded during 2018, and $8.8 million recorded during 2017. In the Electronic Systems segment, we recorded cumulative expenses of $3.8 million for severance and benefits which were classified as restructuring charges. We recorded cumulative of $0.9 million for loss on early exit from lease termination which was classified as restructuring charges. We also recorded cumulative expenses of $0.9 million of other expenses which were classified as restructuring charges. In addition, we recorded cumulative expenses of $0.2 million for professional service fees which were classified as restructuring charges. Further, we recorded cumulative non-cash expenses of $0.1 million for inventory write down which were classified as cost of sales. Finally, we recorded cumulative non-cash expenses of $0.1 million for property and equipment impairment which were classified as restructuring charges. In the Structural Systems segment, we recorded cumulative expenses of $3.0 million for severance and benefits which were classified as restructuring charges. We recorded cumulative non-cash expenses of $9.8 million for property and equipment impairment which were classified as restructuring charges. We also recorded cumulative non-cash expenses of $0.5 million for inventory write down which were classified as cost of sales. Further, we recorded cumulative other expenses of $0.4 million which were classified as restructuring charges. In Corporate, we recorded cumulative expenses of $1.4 million for severance and benefits which was classified as restructuring charges. We recorded cumulative non-cash expenses of $1.4 million for stock-based compensation awards which were modified, all of which were classified as restructuring charges. We also recorded cumulative expenses of $1.0 million for professional service fees which were classified as restructuring charges. As of December 31, 2019 , all restructuring activities have been completed and thus, there were no accruals remaining. Our restructuring activities for 2019 were as follows (in thousands): December 31, 2018 2019 December 31, 2019 Balance Charges Cash Payments Adoption of ASC 842 Adjustment Change in Estimates Balance Severance and benefits $ 2,631 $ — $ (2,631 ) $ — $ — $ — Lease termination 861 — (126 ) (735 ) — — Professional service fees 43 — (43 ) — — — Other 416 — (416 ) — — — Total charged to restructuring charges 3,951 — (3,216 ) (735 ) — — Inventory reserve 50 — — — (50 ) — Total charged to cost of sales 50 — — — (50 ) — Ending balance $ 4,001 $ — $ (3,216 ) $ (735 ) $ (50 ) $ — |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: (In thousands) December 31, 2019 2018 Raw materials and supplies $ 98,151 $ 89,767 Work in process 10,887 9,199 Finished goods 3,444 2,159 Total $ 112,482 $ 101,125 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Useful Lives Land $ 15,765 $ 15,662 Buildings and improvements 61,626 57,642 5 - 40 Years Machinery and equipment 167,688 160,163 2 - 20 Years Furniture and equipment 18,714 19,676 2 - 10 Years Construction in progress 14,343 8,742 278,136 261,885 Less accumulated depreciation 162,920 154,840 Total $ 115,216 $ 107,045 Depreciation expense was $13.5 million , $13.5 million , and $13.2 million , for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 were as follows: (In thousands) Electronic Systems Structural Systems Consolidated Ducommun Gross goodwill $ 199,157 $ 18,622 $ 217,779 Accumulated goodwill impairment (81,722 ) — (81,722 ) Balance at December 31, 2018 117,435 18,622 136,057 Goodwill from acquisition during the period — 34,860 34,860 Balance at December 31, 2019 $ 117,435 $ 53,482 $ 170,917 We perform our annual goodwill impairment test as of the first day of the fourth quarter. See Note 1. We acquired Certified Thermoplastics Co., LLC (“CTP”) in April 2018 and recorded goodwill of $18.6 million in our Structural Systems segment. Since a goodwill impairment analysis is required to be performed within one year of the acquisition date or sooner upon a triggering event, we performed a Step One goodwill impairment analysis as of April 2019 for our Structural Systems segment, which is also our reporting unit. The fair value of our Structural Systems segment exceeded its carrying value by 85% and thus, was not deemed impaired. On October 8, 2019, we acquired 100.0% of the outstanding equity interests of Nobles for a purchase price of $77.0 million , net of cash acquired. We allocated the gross purchase price of $77.3 million to the assets acquired and liabilities assumed at estimated fair values. The excess of the purchase over the aggregate fair values was recorded as goodwill within the Structural Systems reporting unit. See Note 3. In April 2018, we acquired 100.0% of the outstanding equity interests of CTP for a purchase price of $30.7 million , net of cash acquired. We allocated the gross purchase price of $30.8 million to the assets acquired and liabilities assumed at estimated fair values. The excess of the purchase over the aggregate fair values was recorded as goodwill within the Structural Systems reporting unit. See Note 3. Other intangible assets are related to acquisitions, including Nobles, 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 10 to 18 years. Intangible assets are as follows: (In thousands) December 31, 2019 December 31, 2018 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 17 $ 221,900 $ 88,838 $ 133,062 $ 187,200 $ 77,824 $ 109,376 Trade names and trademarks 14 5,500 450 5,050 2,500 193 2,307 Contract renewal 14 1,845 1,757 88 1,845 1,625 220 Technology 15 400 238 162 400 211 189 Total $ 229,645 $ 91,283 $ 138,362 $ 191,945 $ 79,853 $ 112,092 The carrying amount of other intangible assets by operating segment as of December 31, 2019 and 2018 was as follows: (In thousands) December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Electronic Systems $ 164,545 $ 71,527 $ 93,018 $ 164,545 $ 62,108 $ 102,437 Structural Systems 65,100 19,756 45,344 27,400 17,745 9,655 Total $ 229,645 $ 91,283 $ 138,362 $ 191,945 $ 79,853 $ 112,092 Amortization expense of other intangible assets was $11.4 million , $10.7 million and $9.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Future amortization expense by operating segment is expected to be as follows: (In thousands) Electronic Systems Structural Systems Consolidated Ducommun 2020 $ 9,348 $ 3,719 $ 13,067 2021 9,287 3,614 12,901 2022 9,288 3,553 12,841 2023 9,287 3,495 12,782 2024 9,288 3,260 12,548 Thereafter 46,520 27,703 74,223 $ 93,018 $ 45,344 $ 138,362 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The components of accrued liabilities consisted of the following: (In thousands) December 31, 2019 2018 Accrued compensation $ 31,342 $ 29,616 Accrued income tax and sales tax 163 82 Other 6,115 8,088 Total $ 37,620 $ 37,786 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 Term loans $ 310,000 $ 233,000 Revolving credit facility — — Total debt 310,000 233,000 Less current portion 7,000 2,330 Total long-term debt, less current portion 303,000 230,670 Less debt issuance costs - term loans 2,113 1,802 Total long-term debt, net of debt issuance costs - term loans $ 300,887 $ 228,868 Debt issuance costs - revolving credit facility (1) $ 1,894 $ 1,907 Weighted-average interest rate 6.87 % 4.71 % (1) Included as part of other assets. Future long-term debt payments at December 31, 2019 were as follows: (In thousands) 2020 $ 7,000 2021 7,000 2022 7,000 2023 7,000 2024 112,000 Thereafter 170,000 Total $ 310,000 On December 20, 2019, we completed the refinancing of a portion of our existing debt by entering into a new revolving credit facility (“New Revolving Credit Facility”) to replace the existing revolving credit facility that was entered into in November 2018 (“2018 Revolving Credit Facility”) and entering into a new term loan (“New Term Loan”). The New Revolving Credit Facility is a $100.0 million senior secured revolving credit facility that matures on December 20, 2024 replacing the $100.0 million 2018 Revolving Credit Facility that would have matured on November 21, 2023. The New Term Loan is a $140.0 million senior secured term loan that matures on December 20, 2024. We also have an existing $240.0 million senior secured term loan that was entered into in November 2018 that matures on November 21, 2025 (“2018 Term Loan”). The original amounts available under the New Revolving Credit Facility, New Term Loan, and 2018 Term Loan (collectively, the “Credit Facilities”) in aggregate, totaled $480.0 million . The New Term Loan bears interest, at our option, at a rate equal to either (i) the Eurodollar Rate (defined as the London Interbank Offered Rate [“LIBOR”]) plus an applicable margin ranging from 1.50% to 2.50% 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 1.50% per year, in each case based upon the consolidated total net adjusted leverage ratio, typically payable quarterly. In addition, the New Term Loan requires installment payments of 1.25% of the original outstanding principal balance of the New Term Loan amount on a quarterly basis. The New Revolving Credit Facility bears 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 2.50% 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 1.50% per year, in each case based upon the consolidated total net adjusted leverage ratio, typically payable quarterly. The undrawn portion of the commitment of the New Revolving Credit Facility is subject to a commitment fee ranging from 0.175% to 0.275% , based upon the consolidated total net adjusted leverage ratio. In November 2018, we completed credit facilities to replace the then existing credit facilities. The November 2018 credit facilities consisted of the 2018 Term Loan and the 2018 Revolving Credit Facility. The 2018 Term Loan bears interest, at our option, at a rate equal to either (i) the Eurodollar Rate (defined as LIBOR plus an applicable margin ranging from 3.75% to 4.00% 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 3.75% to 4.00% per year, in each case based upon the consolidated total net adjusted leverage ratio, typically payable quarterly. In addition, the 2018 Term Loan requires installment payments of 0.25% of the outstanding principal balance of the 2018 Term Loan amount on a quarterly basis. The 2018 Revolving Credit Facility bears interest, at our option, at a rate equal to either (i) the Eurodollar Rate (defined as LIBOR) plus an applicable margin ranging from 1.75% 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 0.75% to 1.75% per year, in each case based upon the consolidated total net adjusted leverage ratio, typically payable quarterly. The undrawn portion of the commitment of the 2018 Revolving Credit Facility is subject to a commitment fee ranging from 0.200% to 0.300% , based upon the consolidated total net adjusted leverage ratio. Further, under the Credit Facilities, if we meet the annual excess cash flow threshold, we will be required to make excess flow payments. The annual mandatory excess cash flow payments will be based on (i) 50% of the excess cash flow amount if the adjusted leverage ratio is greater than 3.25 to 1.0, (ii) 25% of the excess cash flow amount if the adjusted leverage ratio is less than or equal to 3.25 to 1.0 but greater than 2.50 to 1.0, and (iii) zero percent of the excess cash flow amount if the adjusted leverage ratio is less than or equal to 2.50 to 1.0. As of December 31, 2019, we were in compliance with all covenants required under the Credit Facilities. We have been making periodic voluntary principal prepayments on our credit facilities, however, during 2019, as a result of drawing down on the New Term Loan, we made no net aggregate voluntary prepayments. In conjunction with entering into the New Revolving Credit Facility and the New Term Loan, we drew down the entire $140.0 million on the New Term Loan and used those proceeds to pay off and close the 2018 Revolving Credit Facility of $58.5 million , pay down a portion of the 2018 Term Loan of $56.0 million , pay the accrued interest associated with the amounts being paid down on the 2018 Revolving Credit Facility and 2018 Term Loan, pay the fees related to this transaction, and the remainder will be used for general corporate expenses. The New Term Loan and 2018 Term Loan were considered a modification of debt and thus, no gain or loss was recorded. Instead, the new fees paid to the lenders of $0.6 million were capitalized and are being amortized over the life of the New Term Loan. The remaining debt issuance costs related to the 2018 Term Loan of $1.5 million will continue to be amortized over its remaining life. The New Revolving Credit Facility that replaced the 2018 Revolving Credit Facility was considered an extinguishment of debt except for the portion related to the creditors that were part of both the New Revolving Credit Facility and the 2018 Revolving Credit Facility and in which case, it was considered a modification of debt. As a result, we expensed the portion of the unamortized debt issuance costs related to the 2018 Revolving Credit Facility that was considered an extinguishment of debt of $0.5 million . In addition, the new fees paid to the lenders of $0.5 million as part of the New Revolving Credit Facility were capitalized and are being amortized over its remaining life. Further, the remaining debt issuance costs related to the 2018 Revolving Credit Facility of $1.1 million will also be amortized its remaining life. In conjunction with entering into the 2018 Credit Facilities in November 2018, we drew down the entire $240.0 million on the 2018 Term Loan, $7.9 million on the 2018 Revolving Credit Facility and used those proceeds along with current cash on hand to pay off the then existing credit facilities of $247.9 million . The 2018 Term Loan replaced the term loan that was a part of the then existing credit facilities was considered an extinguishment of debt except for the portion related to a creditor that was part of the then existing term loan and the 2018 Term Loan and in which case, it was considered a modification of debt. As a result, we expensed the portion of the unamortized debt issuance costs related to the then existing term loan that was considered an extinguishment of debt of $0.4 million . In addition, the 2018 Revolving Credit Facility replaced the then existing revolving credit facility that was part of the then existing credit facilities was considered an extinguishment of debt except for the portion related to the creditors that were part of the then existing revolving credit facility and the 2018 Revolving Credit Facility and in which case, it was considered a modification of debt. As a result, we expensed the portion of the unamortized debt issuance costs related to the 2018 Revolving Credit Facility that was considered an extinguishment of debt of $0.5 million . As such, an aggregate total loss on extinguishment of debt of $0.9 million was recorded in 2018. Further, we incurred $3.5 million of new debt issuance costs that can be capitalized related to the 2018 Credit Facilities, of which $1.7 million were allocated to the 2018 Term Loan and the remaining $1.8 million was allocated to the 2018 Revolving Credit Facility. The 2018 Term Loan new debt issuance costs of $1.7 million and remaining unamortized then existing term loan debt issuance costs of $0.1 million , for an aggregate total of $1.8 million of debt issuance costs related to the 2018 Term Loan were capitalized and are being amortized over the seven year life of the 2018 Term Loan. The 2018 Revolving Credit Facility new debt issuance costs of $1.8 million and remaining unamortized then existing revolving credit facility debt issuance costs of $0.2 million , for an aggregate total of $2.0 million of debt issuance costs related to the 2018 Revolving Credit Facility were capitalized and were being amortized over the five years life of the 2018 Revolving Credit Facility. On October 8, 2019, we acquired 100.0% of the outstanding equity interests of Nobles for a purchase price of $77.0 million , net of cash acquired, all payable in cash. Upon the closing of the transaction, we paid $77.3 million in cash by drawing down on the 2018 Revolving Credit Facility. See Note 3. In April 2018, we acquired CTP for a purchase price of $30.7 million , net of cash acquired, all payable in cash. We paid an aggregate of $30.8 million in cash by drawing down on the then existing revolving credit facility. See Note 3. In September 2017, we acquired Lightning Diversion Systems, LLC (“LDS”) for a purchase price of $60.0 million , net of cash acquired, all payable in cash. Upon the closing of the transaction, we paid $61.4 million in cash by drawing down on our then existing revolving credit facility. The remaining $0.6 million was paid in October 2017 in cash, also by drawing down on our then existing revolving credit facility. As of December 31, 2019 , we had $99.8 million of unused borrowing capacity under the New Revolving Credit Facility, after deducting $0.2 million for standby letters of credit. The New Credit Facilities were entered into by us (“Parent Company”) and guaranteed by all of our subsidiaries, other than two subsidiaries that were considered minor (“Subsidiary Guarantors”). The Subsidiary Guarantors jointly and severally guarantee the New 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 a portion of these interest rate cap hedges maturing on a quarterly basis, and a final quarterly maturity date of June 2020, 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 1 for further information. In December 2018 and 2017, we entered into agreements to purchase $2.2 million and $14.2 million of industrial revenue bonds (“IRBs”) issued by the city of Parsons, Kansas (“Parsons”) and concurrently, sold $2.2 million and $14.2 million of property and equipment (“Property”) to Parsons as well as entered into lease agreements to lease the Property from Parsons (“Lease”) with lease payments totaling $2.2 million and $14.2 million over the lease terms, respectively. The sale of the Property and concurrent lease back of the Property in December 2018 and 2017 did not meet the sale-leaseback accounting requirements as a result of our continuous involvement with the Property and thus, the $2.2 million and $14.2 million in cash received from Parsons was not recorded as a sale but as a financing obligation, respectively. Further, the Lease included a right of offset so long as we continue to own the IRBs and thus, the financing obligations of $2.2 million and $14.2 million were offset against the $2.2 million and $14.2 million , respectively, of IRBs assets and are presented net on the consolidated balance sheets with no impact to the consolidated statements of income or consolidated cash flow statements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity We are authorized to issue five million shares of preferred stock. At December 31, 2019 and 2018 , no preferred shares were issued or outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Compensation Plans We currently have two stock incentive plans: i) the 2013 Stock Incentive Plan, as amended (the “2013 Plan”), which expires on May 2, 2028, provided that Incentive Stock Options may not be granted after February 21, 2028, and ii) the 2018 Employee Stock Purchase Plan (“ESPP”). The 2013 Plan 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 “Compensation Committee”). The aggregate number of shares available for issuance under the 2013 Plan is 1,690,000 . Under the 2013 Plan, no more than an aggregate of 337,693 shares are available for issue of stock-based awards other than stock options and stock appreciation rights after December 31, 2017. As of December 31, 2019 , shares available for future grant under the 2013 Plan are 222,132 . Prior to the adoption of the 2013 Plan, we granted stock-based awards to purchase shares of our common stock under certain predecessor plans. No further awards can be granted under these predecessor plans. Employee Stock Purchase Plan The ESPP was adopted by the Board of Directors and approved by the shareholders in 2018, including 750,000 shares that can be awarded. The first offering period closed on July 31, 2019. Under the ESPP, our employees who elect to participate have the right to purchase common stock at a 15% discount from the lower of the market value of the common stock at the beginning or the end of each six month offering period and the discount will be treated as compensation to those employees. Employees purchase common stock using payroll deductions, which may not exceed 10% of their eligible compensation and other limitations. The Compensation Committee administers the ESPP. As of December 31, 2019 , there are 723,479 shares available for future award grants. Stock Options In the years ended December 31, 2019 , 2018 , and 2017 , we granted stock options to our officers and key employees of 189,170 , 176,940 , and 129,400 , respectively, with weighted-average grant date fair values of $15.95 , $12.87 , and $11.88 , 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 ten years from the date of grant. The stock options typically vest over a period of three or 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, 2019 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, 2019 363,225 $ 28.33 Granted 189,170 $ 41.97 Exercised (80,693 ) $ 24.97 Expired (2,857 ) $ 20.09 Forfeited (22,027 ) $ 29.99 Outstanding at December 31, 2019 446,818 $ 34.68 7.7 $ 7,319 Exerciseable at December 31, 2019 96,947 $ 27.70 5.3 $ 2,265 Changes in nonvested stock options for the year ended December 31, 2019 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2019 292,013 $ 12.20 Granted 189,170 $ 15.95 Vested (109,285 ) $ 11.95 Forfeited (22,027 ) $ 10.24 Nonvested at December 31, 2019 349,871 $ 14.33 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, 2019 , 2018 and 2017 was $1.8 million , $1.3 million , and $2.5 million , respectively. Cash received from stock options exercised for the years ended December 31, 2019 , 2018 and 2017 was $2.6 million , $1.8 million , and $4.3 million , respectively, with related tax benefits of $0.6 million , $0.3 million , and $0.9 million , respectively. The total amount of stock options vested and expected to vest in the future is 446,818 shares with a weighted-average exercise price of $34.68 and an aggregate intrinsic value of $7.3 million . These stock options have a weighted-average remaining contractual term of 7.7 years. The share-based compensation cost expensed for stock options for the years ended December 31, 2019 , 2018 , and 2017 (before tax benefits) was $1.6 million , $0.9 million , and $0.7 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2019 , total unrecognized compensation cost (before tax benefits) related to stock options of $3.7 million is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of stock options vested during the years ended December 31, 2019 , 2018 , and 2017 was $1.3 million , $0.8 million , and $0.8 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, 2019 , 2018 , and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Risk-free interest rate 1.92 % 2.65 % 1.75 % Expected volatility 40.44 % 53.66 % 50.37 % Expected dividends — — — Expected term (in months) 60 36 48 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 award populations with option vesting terms of three and 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 62,520 , 81,230 , and 135,350 RSUs during the years ended December 31, 2019 , 2018 , and 2017 , respectively, with weighted-average grant date fair values (equal to the fair market value of our stock on the date of grant) of $41.04 , $32.36 , and $28.97 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 typically 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, 2019 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 157,937 $ 28.96 Granted 62,520 $ 41.04 Vested (85,279 ) $ 27.94 Forfeited (7,755 ) $ 30.80 Outstanding at December 31, 2019 127,423 $ 36.22 The share-based compensation cost expensed for RSUs for the years ended December 31, 2019 , 2018 , and 2017 (before tax benefits) was $2.4 million , $2.1 million , and $2.0 million respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2019 , total unrecognized compensation cost (before tax benefits) related to RSUs of $2.9 million is expected to be recognized over a weighted average period of 1.4 years. The total fair value of RSUs vested for the years ended December 31, 2019 , 2018 , and 2017 was $2.4 million , $2.7 million , and $3 million , respectively. The tax benefit realized from vested RSUs for the years ended December 31, 2019 , 2018 , and 2017 was $0.6 million , $0.6 million , and $1.1 million , respectively. Performance Stock Units We granted performance stock awards (“PSUs”) to certain key employees of 58,178 , 64,700 , and 126,000 PSUs during the years ended December 31, 2019 , 2018 , and 2017 , respectively, with weighted-average grant date fair values of $43.80 , $35.16 , and $26.31 per share, respectively. PSU awards are subject to the attainment of performance goals established by the Compensation 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, 2019 was as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 236,700 $ 26.21 Granted 58,178 $ 43.80 Vested (85,504 ) $ 19.05 Forfeited (11,800 ) $ 33.21 Outstanding at December 31, 2019 197,574 $ 33.98 The share-based compensation cost expensed for PSUs for the years ended December 31, 2019 , 2018 , and 2017 (before tax benefits) was $3.2 million , $1.9 million and $2.0 million , respectively, and is included in selling, general and administrative expenses on the consolidated income statements. At December 31, 2019 , total unrecognized compensation cost (before tax benefits) related to PSUs of $3.2 million is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of PSUs vested during the years ended December 31, 2019 , 2018 , and 2017 , was $3.8 million , $0.3 million , and $1.2 million , respectively. The tax benefit realized from PSUs for the years ended December 31, 2019 , 2018 , and 2017 were $0.9 million , $0.1 million , and $0.5 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [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 zero and $0.1 million , respectively, at December 31, 2019 and $0.7 million and $0.1 million , respectively, at December 31, 2018 . The accumulated benefit obligations of the first two plans at December 31, 2019 and December 31, 2018 were $0.4 million and $0.6 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, 2019 , 2018 , and 2017 was $2.7 million , $2.6 million , and $2.7 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”). As part of the acquisition of CTP, we acquired their defined benefit pension plan (the “CTP Pension Plan”), which covered certain current and retired employees that were fully funded by CTP as of the acquisition date in April 2018. The CTP Pension Plan was suspended as of the acquisition date but continued to cover certain current and former CTP employees. The CTP Pension Plan gross assets, liabilities, and current year expense were immaterial for disclosure purposes. The CTP Pension Plan was subsequently liquidated in November 2019 with no loss recorded as a pension plan escrow fund was established as part of the acquisition to cover any losses until it was liquidated. The components of net periodic pension cost for the Pension Plan and LaBarge Retirement Plan in aggregate are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Service cost $ 503 $ 601 $ 531 Interest cost 1,388 1,268 1,329 Expected return on plan assets (1,644 ) (1,784 ) (1,530 ) Amortization of actuarial losses 885 743 810 Net periodic pension cost $ 1,132 $ 828 $ 1,140 The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for 2019 were as follows: (In thousands) Year Ended December 31, 2019 Amortization of actuarial loss - total before tax (1) $ 885 Tax benefit (209 ) Net of tax $ 676 (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 2020 is $0.9 million . The obligations, fair value of plan assets, and funded status of both plans are as follows: (In thousands) December 31, 2019 2018 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 33,951 $ 36,002 Service cost 503 601 Interest cost 1,388 1,268 Actuarial (gain) loss 4,769 (2,415 ) Benefits paid (1,526 ) (1,505 ) Ending benefit obligation (December 31) $ 39,085 $ 33,951 Change in plan assets Beginning fair value of plan assets (January 1) $ 23,749 $ 25,646 Return on assets 4,347 (1,951 ) Employer contribution 1,873 1,559 Benefits paid (1,526 ) (1,505 ) Ending fair value of plan assets (December 31) $ 28,443 $ 23,749 Funded status (underfunded) $ (10,642 ) $ (10,202 ) Amounts recognized in the consolidated balance sheet Current liabilities $ — $ 580 Non-current liabilities $ 10,642 $ 9,622 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 9,485 $ 8,908 Amortization (885 ) (743 ) Liability (gain) loss 4,769 (2,415 ) Asset loss (gain) (2,709 ) 3,735 Ending unrecognized loss, before tax (December 31) 10,660 9,485 Tax impact (2,544 ) (2,263 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 8,116 $ 7,222 (1) Projected benefit obligation equals the accumulated benefit obligation for the plans. On December 31, 2019 , our annual measurement date, the accumulated benefit obligation exceeded the fair value of the plans assets by $10.6 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, 2019 and 2018 of $8.1 million and $7.2 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, 2019 and 2018 , by asset category, were as follows: December 31, 2019 2018 Equity securities 69 % 57 % Cash and equivalents 1 % 1 % Debt securities 30 % 42 % 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 0-10% Fixed income securities 15-75% Equities 30-80% 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, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 232 $ — $ — $ 232 Fixed income securities 3,247 — — 3,247 Equities (1) 2,645 — — 2,645 Other investments 1,552 — — 1,552 Total plan assets at fair value $ 7,676 $ — $ — 7,676 Pooled funds 20,767 Total fair value of plan assets $ 28,443 (In thousands) Year Ended December 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 153 $ — $ — $ 153 Fixed income securities 3,647 — — 3,647 Equities (1) 1,475 — — 1,475 Other investments 851 — — 851 Total plan assets at fair value $ 6,126 $ — $ — 6,126 Pooled funds 17,623 Total fair value of plan assets $ 23,749 (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, 2019 2018 2017 Discount rate used to determine pension expense Pension Plan 3.22 % 3.64 % 4.18 % LaBarge Retirement Plan 2.85 % 3.40 % 3.75 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2019 2018 2017 Discount rate used to determine value of obligations Pension Plan 4.23 % 4.23 % 3.64 % LaBarge Retirement Plan 4.00 % 4.00 % 3.40 % Long-term rate of return - Pension Plan only 7.00 % 7.00 % 7.00 % 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 2020 $ 1,252 $ 589 2021 1,339 569 2022 1,452 545 2023 1,495 517 2024 1,607 486 2025 - 2029 9,002 2,012 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 2020 . |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2019 | |
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 performance center leases, we have indemnified our lessors for certain claims arising from the performance center 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our pre-tax income attributable to foreign operations was not material. The provision for income tax (benefit) expense consisted of the following: (In thousands) Years Ended December 31, 2019 2018 2017 Current tax expense Federal $ 5,802 $ 474 $ 2,387 State 1,067 1,260 525 6,869 1,734 2,912 Deferred tax (benefit) expense Federal (650 ) (789 ) (15,515 ) State (917 ) 291 135 (1,567 ) (498 ) (15,380 ) Income tax expense (benefit) $ 5,302 $ 1,236 $ (12,468 ) On December 22, 2017, the U. S. enacted the Tax Cuts and Jobs Act (the “2017 Tax Act”) which, among a broad range of tax reform measures, reduced the U.S. corporate tax rate from 35.0% to 21.0% effective January 1, 2018. The reduction in the corporate tax rate required the federal portion of our deferred tax assets and liabilities at December 31, 2017 to be re-measured at the enacted tax rate expected to apply when the temporary differences are to be realized or settled using 21.0%. As a result, we recorded a provisional deferred income tax benefit of $13.0 million related to the re-measurement for the year ended December 31, 2017. SEC Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), allowed us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Since the 2017 Tax Act was passed late in the fourth quarter of 2017, and ongoing tax guidance and accounting interpretation were expected during 2018, we considered the accounting of the deferred tax re-measurement and other items to be incomplete as of December 31, 2017. Based on our review of proposed tax regulations and related guidance issued and available as of December 22, 2018, we determined that no refinements were needed to the tax positions and provisional amounts recorded in the fourth quarter of 2017 and finalized the accounting of the tax effects of the 2017 Tax Act as of December 31, 2018. We recognized net income tax benefits from deductions of share-based payments in excess of compensation cost recognized for financial reporting purposes of $0.8 million , $0.2 million , and $0.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 776 $ 704 Allowance for doubtful accounts 314 267 Contract overrun reserves 1,004 1,263 Deferred compensation 94 302 Employment-related accruals 5,049 4,252 Environmental reserves 494 479 Federal tax credit carryforwards 84 288 Inventory reserves 2,334 1,757 Pension obligation 2,552 2,324 Federal and state net operating loss carryforwards 6,251 51 State tax credit carryforwards 8,900 9,075 Stock-based compensation 1,672 1,661 Workers’ compensation 43 51 Other 1,409 1,538 Total gross deferred tax assets 30,976 24,012 Valuation allowance (9,375 ) (9,083 ) Total gross deferred tax assets, net of valuation allowance 21,601 14,929 Deferred tax liabilities: Deferred revenue (256 ) (649 ) Depreciation (8,852 ) (7,951 ) Goodwill (4,109 ) (3,963 ) Intangibles (24,749 ) (19,905 ) Prepaid insurance (346 ) (223 ) Total gross deferred tax liabilities (38,312 ) (32,691 ) Net deferred tax liabilities $ (16,711 ) $ (17,762 ) We have federal and state tax net operating losses of $22.5 million and $26.5 million , respectively, as of December 31, 2019 . The federal net operating losses acquired from the acquisition of Nobles are subject to an annual limitation under Internal Revenue Code Section 382; however, we expect to fully realize them under ASC Subtopic 740-10 before they begin to expire in 2033. The state net operating loss carryforwards include $16.9 million that is not expected to be realized due to various limitations and has been reduced by a valuation allowance. If not realized, the state net operating loss carryforwards will begin to expire in 2027 . We have federal and state tax credit carryforwards of $0.1 million and $12.8 million , respectively, as of December 31, 2019 . A valuation allowance of $10.7 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 begin to expire in 2020 . 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, 2019 2018 2017 Statutory federal income tax rate 21.0% 21.0% 35.0% State income taxes (net of federal benefit) 3.6 5.3 2.5 Foreign derived intangible income deduction (1.2) — — Qualified domestic production activities — — (2.6) Stock-based compensation expense (2.1) (1.9) (8.2) Research and development tax credits (7.8) (32.0) (50.6) Other tax credits — (1.2) (7.5) Changes in valuation allowance (1.6) 0.7 10.6 Non-deductible book expenses 3.9 8.2 1.1 Changes in deferred tax assets (2.2) 12.1 15.4 Re-measurement of deferred taxes for 2017 Tax Act — — (171.3) Changes in tax reserves 1.2 1.2 11.4 Other (0.8) (1.4) 0.4 Effective income tax (benefit) rate 14.0% 12.0% (163.8)% As a result of the 2017 Tax Act, we began utilizing the enacted U.S. corporate rate of 21.0% for the tax year 2018 and beyond. Our total amount of unrecognized tax benefits was $5.7 million , $5.3 million , and $5.3 million at December 31, 2019 , 2018 , and 2017 , 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 charges as of December 31, 2019 , 2018 , and 2017 were not significant. If recognized, $4.0 million would affect the effective income tax rate. As a result of statute of limitations set to expire in 2020, we expect decreases to our unrecognized tax benefits of approximately $2.0 million 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, 2019 2018 2017 Balance at January 1, $ 5,283 $ 5,271 $ 3,036 Additions for tax positions related to the current year 408 419 422 Additions for tax positions related to prior years — 92 1,953 Reductions for tax positions related to prior years (28 ) (499 ) (99 ) Reductions for lapse of statute of limitations — — (41 ) Balance at December 31, $ 5,663 $ 5,283 $ 5,271 We file U.S. Federal and state income tax returns. We are subject to examination by the Internal Revenue Service (“IRS”) for tax years after 2015 and by state taxing authorities for tax years after 2014. While we are no longer subject to examination prior to those periods, carryforwards generated prior to those periods may still be adjusted upon examination by the IRS or state taxing authorities if they either have been or will be used in a subsequent period. We believe we have adequately accrued for tax deficiencies or reductions in tax benefits, if any, that could result from the examination and all open audit years. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies 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 an accrual for its estimated liability for such investigation and corrective action of $1.5 million at December 31, 2019 , 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 an accrual for its estimated liability in connection with the West Covina landfill of $0.4 million at December 31, 2019 , 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, 2019 | |
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 (“Primes”). 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”), Lockheed Martin Corporation (“Lockheed Martin”), Raytheon Company (“Raytheon”), and Spirit AeroSystems Holdings, Inc. (“Spirit”), represented the following percentages of total net sales: Years Ended December 31, 2019 2018 2017 Boeing 16.6 % 17.0 % 16.3 % Lockheed Martin 4.0 % 4.4 % 5.5 % Raytheon 11.0 % 11.7 % 13.5 % Spirit 12.2 % 9.5 % 8.2 % Top ten customers (1) 63.5 % 62.9 % 62.5 % (1) Includes Boeing, Lockheed Martin, Raytheon, and Spirit. Boeing, Lockheed Martin, Raytheon, and Spirit represented the following percentages of total accounts receivable: December 31, 2019 2018 Boeing 5.9 % 8.0 % Lockheed Martin 0.8 % 2.5 % Raytheon 3.3 % 3.2 % Spirit 2.0 % — % In 2019 , 2018 and 2017 , net revenues from foreign customers based on the location of the customer were $81.6 million , $71.9 million and $57.2 million , respectively. No net revenues from a foreign country were greater than 4.0% of total net revenues in 2019 , 2018 , and 2017 . 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 2019 , 2018 , and 2017 . 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, 2019 | |
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, Electronic Systems and Structural 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, 2019 2018 2017 Net Revenues Electronic Systems $ 360,373 $ 337,868 $ 316,723 Structural Systems 360,715 291,439 241,460 Total Net Revenues $ 721,088 $ 629,307 $ 558,183 Segment Operating Income (Loss) (1)(2)(3) Electronic Systems $ 38,613 $ 30,916 $ 31,236 Structural Systems 46,836 19,063 5,790 85,449 49,979 37,026 Corporate General and Administrative Expenses (4) (29,216 ) (26,061 ) (21,392 ) Operating Income $ 56,233 $ 23,918 $ 15,634 Depreciation and Amortization Expenses Electronic Systems $ 14,170 $ 14,223 $ 13,888 Structural Systems 13,663 10,525 8,860 Corporate Administration 472 548 97 Total Depreciation and Amortization Expenses $ 28,305 $ 25,296 $ 22,845 Capital Expenditures Electronic Systems $ 5,508 $ 6,719 $ 5,019 Structural Systems 13,338 9,104 20,679 Corporate Administration — 514 775 Total Capital Expenditures $ 18,846 $ 16,337 $ 26,473 (1) The results for 2019 includes Nobles’ results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. (2) The results for 2018 includes CTP’s results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. (3) The results for 2017 includes LDS’ results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Electronic Systems segment. (4) Includes cost not allocated to either the Electronic Systems or Structural Systems 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 2019 and 2018 : (In thousands) December 31, 2019 2018 Total Assets Electronic Systems $ 411,981 $ 405,743 Structural Systems 328,718 220,993 Corporate Administration 49,730 18,003 Total Assets $ 790,429 $ 644,739 Goodwill and Intangibles Electronic Systems $ 210,453 $ 219,872 Structural Systems 98,826 28,277 Total Goodwill and Intangibles $ 309,279 $ 248,149 On October 8, 2019, we acquired 100.0% of the outstanding equity interests of Nobles for a purchase price of $77.0 million , net of cash acquired. We allocated the gross purchase price of $77.3 million to the assets acquired and liabilities assumed at preliminary estimated fair values. The excess of the purchase price over the aggregate fair values of the net assets was recorded as goodwill. See Note 3. In April 2018, we acquired 100.0% of the outstanding equity interests of CTP for a purchase price of $30.7 million , net of cash acquired. We allocated the gross purchase price of $30.8 million to the assets acquired and liabilities assumed at estimated fair values. The excess of the purchase price over the aggregate fair values of the net assets was recorded as goodwill. See Note 3. In September 2017, we acquired 100.0% of the outstanding equity interests of LDS for a purchase price of $60.0 million , net of cash acquired. We allocated the gross purchase price of $62.0 million to the assets acquired and liabilities assumed at estimated fair values. The excess of the purchase over the aggregate fair values was recorded as goodwill. |
Supplemental Quarterly Financia
Supplemental Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data (Unaudited) | Supplemental Quarterly Financial Data (Unaudited) (In thousands, except per share amounts) Three Months Ended Three Months Ended Dec 31 Sep 28 Jun 29 Mar 30 Dec 31 Sep 29 Jun 30 Mar 31 Net Revenues $ 186,926 $ 181,101 $ 180,495 $ 172,566 $ 164,183 $ 159,842 $ 154,827 $ 150,455 Gross Profit 40,111 38,327 38,065 35,694 32,697 31,116 32,028 26,755 Income Before Taxes 9,848 10,240 9,178 8,497 1,791 4,290 1,833 2,357 Income Tax Expense (Benefit) 977 1,937 1,363 1,025 1,118 119 242 (243 ) Net Income $ 8,871 $ 8,303 $ 7,815 $ 7,472 $ 673 $ 4,171 $ 1,591 $ 2,600 Earnings Per Share Basic earnings per share $ 0.77 $ 0.72 $ 0.68 $ 0.65 $ 0.06 $ 0.37 $ 0.14 $ 0.23 Diluted earnings per share $ 0.75 $ 0.70 $ 0.66 $ 0.64 $ 0.06 $ 0.36 $ 0.14 $ 0.22 In the fourth quarter of 2019, we acquired 100.0% of the outstanding equity interests of Nobles and Nobles’ results of operations have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. In the fourth quarter of 2018, we recorded restructuring charges of $3.8 million as part of a restructuring plan that commenced during the fourth quarter of 2017. See Note 4. In the third quarter of 2018, we recorded restructuring charges of $3.4 million as part of a restructuring plan that commenced during the fourth quarter of 2017. See Note 4. In the second quarter of 2018, we acquired 100.0% of the outstanding equity interests of CTP and CTP’s results of operations have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. In addition, we recorded restructuring charges of $5.4 million as part of a restructuring plan that commenced during the fourth quarter of 2017. See Note 4. In the first quarter of 2018, we recorded restructuring charges of $2.2 million as part of a restructuring plan that commenced during the fourth quarter of 2017. See Note 4. |
Consolidated Valuation and Qual
Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Consolidated Valuation and Qualifying Accounts | DUCOMMUN INCORPORATED AND SUBSIDIARIES CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017 (Dollars in thousands) SCHEDULE II Description Balance at Beginning of Period Charged to (Reduction of) Costs and Expenses Deductions/(Recoveries) Other (1) Balance at End of Period 2019 Allowance for Doubtful Accounts $ 1,135 $ 219 $ 33 $ — $ 1,321 Valuation Allowance on Deferred Tax Assets $ 9,083 $ (593 ) $ — $ 885 $ 9,375 2018 Allowance for Doubtful Accounts $ 868 $ 776 $ 509 $ — $ 1,135 Valuation Allowance on Deferred Tax Assets $ 9,013 $ 70 $ — $ — $ 9,083 2017 Allowance for Doubtful Accounts $ 495 $ 334 $ (39 ) $ — $ 868 Valuation Allowance on Deferred Tax Assets $ 6,607 $ 2,406 $ — $ — $ 9,013 (1) Includes opening balances of Nobles Worldwide, Inc. acquired in October 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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 and defense (“A&D”), industrial, medical, and other industries (collectively, “Industrial”). Our operations 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 electronic and electromechanical products used in worldwide technology-driven markets including A&D and Industrial end-use markets. Electronic Systems’ product offerings primarily range from prototype development to complex assemblies. Structural Systems designs, engineers and manufactures large, complex contoured aerostructure components and assemblies and supplies composite and metal bonded structures and assemblies. Structural Systems’ products are primarily 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 present our consolidated financial position, statements of income, comprehensive income, 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. |
Changes in Accounting Policies and Recent Accounting Pronouncements | Changes in Accounting Policies We adopted Accounting Standards Codification (“ASC”) 842, “Leases” (“ASC 842”), on January 1, 2019. As a result, we changed our accounting policy for lease accounting as discussed in Note 2. We applied ASC 842 using the additional transition method and therefore, recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening consolidated balance sheet at January 1, 2019. Therefore, the comparative information has not been adjusted and continues to be reported under the previous lease accounting standard, ASC 840, “Leases” (“ASC 840”). The details of the significant changes and quantitative impact of the changes are described in Note 2. We adopted ASC 606, “Revenue from Contracts with Customers” (“ASC 606”), on January 1, 2018. As a result, we changed our accounting policy for revenue recognition and the majority of our revenues began being recognized over time. The majority of our inventory began being charged to cost of sales as raw materials are placed into production and the related revenue is recognized. Revenues recognized before billing are classified as contract assets. Payments received from customers prior to our billing are classified as contract liabilities. The determination of our provision for estimated losses on contracts was also changed as the definition of a contract for us became the customer purchase order instead of the long-term arrangements and are classified as contract liabilities. We applied ASC 606 using the modified retrospective method (also known as the cumulative effect method) and as such, recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening consolidated balance sheet at January 1, 2018. Therefore, the comparative information has not been adjusted and continues to be reported under the previous revenue recognition accounting standard, ASC 605, “Revenue Recognition” (“ASC 605”). Recent Accounting Pronouncements New Accounting Guidance Adopted in 2019 In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections: Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates” (“ASU 2019-07”), which improve, update, and simplify its regulations on financial reporting and disclosure. The new guidance was effective when issued, which is our interim period ending September 28, 2019. The adoption of this standard did not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging” (“ASU 2017-12”), which intends to improve and simplify accounting rules around hedge accounting. ASU 2017-12 refines and expands hedge accounting for both financial (i.e., interest rate) and commodity risks. In addition, it creates more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes. The new guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, which is our interim period beginning January 1, 2019. Early adoption is permitted, including adoption in any interim period after the issuance of ASU 2017-12. The adoption of this standard did not have a material impact on our consolidated financial statements. 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. The adoption of this standard did not have a material 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 or the additional transition method. Under the additional transition method, the cumulative effect of applying the new guidance is recognized as an adjustment to certain captions on the balance sheet, including the opening balance of retained earnings in the first quarter of 2019, and the prior years’ financial information will be presented under the prior accounting standard, ASC 840, “Leases,” (“ASC 840”). Additional guidance was issued subsequently as follows: • July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”); and • July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) All the new guidance was effective for us beginning January 1, 2019. The cumulative impact to our retained earnings at January 1, 2019 was a net decrease of $0.3 million . See Note 2. Recently Issued Accounting Standards In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), which removes certain exceptions and provides guidance on various areas of tax accounting. The new guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2021. Early adoption is permitted. We are evaluating the impact of this standard. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Statements” (“ASU 2019-04”), which clarify, correct, and improve various aspects of the guidance in ASU 2016-01, ASU 2016-13, and ASU 2017-12. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2020. We are evaluating the impact of this standard. In March 2019, the FASB issued ASU 2019-01, “Leases (Topic 842): Codification Improvements” (“ASU 2019-01”), which addresses various lessor implementation issues and clarifies that lessees and lessors are exempt from certain interim disclosure requirements associated with the adoption of ASC 842. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2020. Early adoption is permitted. We are evaluating the impact of this standard. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Topic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), which will remove disclosures that no longer are considered cost-beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The new guidance is effective for fiscal years ending after December 15, 2020 and no amendments are made to the interim disclosure requirements. Early adoption is permitted. We are evaluating the impact of this standard. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), which should improve the effectiveness of fair value measurement disclosures by removing certain requirements, modifying certain requirements, and adding certain new requirements. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2020. Early adoption is permitted. We are evaluating the impact of this standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. ASU 2016-13 requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which will be our interim period beginning January 1, 2020. We are evaluating the impact of this standard. |
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 Assets and liabilities that are measured, recorded or disclosed at fair value on a recurring basis are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Level 1, the highest level, refers to the values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant observable inputs. Level 3, the lowest level, includes fair values estimated using significant unobservable inputs. We have money market funds and they are included as cash and cash equivalents. We also have interest rate cap hedge agreements and the fair value of the interest rate cap hedge agreements were determined using pricing models that use observable market inputs as of the balance sheet date, a Level 2 measurement. |
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, 2019 and December 31, 2018 , 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 in 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. In 2019, the impact of cash flow hedges was insignificant. 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 net realizable value with cost being determined using a moving average cost basis for raw materials and actual cost for work-in-process and finished goods. The majority of our inventory is charged to cost of sales as raw materials are placed into production and the related revenue is recognized. Inventoried costs include raw materials, outside processing, direct labor and allocated overhead, adjusted for any abnormal amounts of idle performance center expense, freight, handling costs, and wasted materials (spoilage) incurred. We assess the inventory carrying value and reduce it, 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. The majority of our revenues are recognized over time, however, for revenue contracts where revenue is recognized using the point in time method, inventory is not reduced until it is shipped or transfer of control to the customer has occurred. Our ending inventory consists of raw materials, work-in-process, and finished goods. |
Production Cost of Contracts and Revenue Recognition | 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 sales using the over time revenue recognition model. We review the value of the production cost of contracts on a quarterly basis to ensure when added to the estimated cost to complete, the value is not greater than the estimated realizable value of the related contracts. Revenue Recognition Our customers typically engage us to manufacture products based on designs and specifications provided by the end-use customer. This requires the building of tooling and manufacturing first article inspection products (prototypes) before volume manufacturing. Contracts with our customers generally include a termination for convenience clause. We have a significant number of contracts that are started and completed within the same year, as well as contracts derived from long-term agreements and programs that can span several years. We recognize revenue under ASC 606, which utilizes a five-step model. The definition of a contract for us is typically defined as a customer purchase order as this is when we achieve an enforceable right to payment. The majority of our contracts are firm fixed-price contracts. The deliverables within a customer purchase order are analyzed to determine the number of performance obligations. In addition, at times, in order to achieve economies of scale and based on our customer’s forecasted demand, we may build in advance of receiving a purchase order from our customer. When that occurs, we would not recognize revenue until we have received the customer purchase order. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account under ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control is transferred and the performance obligation is satisfied. The majority of our contracts have a single performance obligation as the promise to transfer the individual goods or services are highly interrelated or met the series guidance. For contracts with multiple performance obligations, we allocate the contract transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. The primary method used to estimate the standalone selling price is the expected cost plus a margin approach, under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. We manufacture most products to customer specifications and the product cannot be easily modified for another customer. As such, these products are deemed to have no alternative use once the manufacturing process begins. In the event the customer invokes a termination for convenience clause, we would be entitled to costs incurred to date plus a reasonable profit. Contract costs typically include labor, materials, overhead, and when applicable, subcontractor costs. For most of our products, we are building assets with no alternative use and have enforceable right to payment, and thus, we recognize revenue using the over time method. The majority of our performance obligations are satisfied over time as work progresses. Typically, revenue is recognized over time using an input measure (i.e., costs incurred to date relative to total estimated costs at completion, also known as cost-to-cost plus reasonable profit) to measure progress. Our typical revenue contract is a firm fixed price contract, and the cost of raw materials could make up a significant amount of the total costs incurred. As such, we believe using the total costs incurred input method would be the most appropriate method. While the cost of raw materials could make up a significant amount of the total costs incurred, there is a direct relationship between our inputs and the transfer of control of goods or services to the customer. Contract estimates are based on various assumptions to project the outcome of future events that can span multiple months or years. These assumptions include labor productivity and availability; the complexity of the work to be performed; the cost and availability of materials; and the performance of subcontractors. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates on a regular basis. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the quarter it is identified. The impact of adjustments in contract estimates on our operating earnings can be reflected in either operating costs and expenses or revenue. Net cumulative catch-up adjustments on profit recorded were not material for the year ended December 31, 2019 . Payments under long-term contracts may be received before or after revenue is recognized. When revenue is recognized before we bill our customer, a contract asset is created for the work performed but not yet billed. Similarly, when we receive payment before we ship our products to our customer, a contract liability is created for the advance or progress payment. Contract Assets and Contract Liabilities Contract assets consist of our right to payment for work performed but not yet billed. Contract assets are transferred to accounts receivable when we bill our customers. We bill our customers when we ship the products and meet the shipping terms within the revenue contract. Contract liabilities consist of advance or progress payments received from our customers prior to the time transfer of control occurs plus the estimated losses on contracts. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation Property and equipment, including assets recorded under operating and finance 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 Goodwill is evaluated for impairment on an annual basis on the first day of the fourth fiscal quarter. If certain factors occur, including significant under performance of our business relative to expected operating results, significant adverse economic and industry trends, significant decline in our market capitalization for an extended period of time relative to net book value, a decision to divest individual businesses within a reporting unit, or a decision to group individual businesses differently, we may perform an impairment test prior to the fourth quarter. In addition, we early adopted ASU 2017-04 on January 1, 2019 which simplified our goodwill impairment testing by eliminating Step Two of the goodwill impairment test. See Note 1. We acquired Certified Thermoplastics Co., LLC (“CTP”) in April 2018 and recorded goodwill of $18.6 million in our Structural Systems segment, which is also our reporting unit. Since a goodwill impairment analysis is required to be performed within one year of the acquisition date or sooner upon a triggering event, we performed a Step One goodwill impairment analysis as of April 2019 for our Structural Systems segment. The fair value of our Structural Systems segment exceeded its carrying value by 85% and thus, was not deemed impaired. In the fourth quarter of 2019, the carrying amount of goodwill at the date of the most recent annual impairment evaluation for Electronic Systems and Structural Systems was $117.4 million and $18.6 million , respectively. As of the date of our 2019 annual evaluation for goodwill impairment, for the Electronic Systems segment, which is also our reporting unit, we elected to perform a Step One goodwill impairment analysis and will continue to do so from time to time. The fair value of our Electronic Systems segment exceeded its carrying value by 44% and thus, was not deemed impaired. As of the date of our 2019 annual evaluation for goodwill impairment, for the Structural Systems segment, we used a qualitative assessment including 1) margin of passing most recent step 1 analysis, 2) earnings before interest, taxes, depreciation, and amortization, 3) long-term growth rate, 4) analyzing material adverse factors/changes between valuation dates, 5) general macroeconomic factors, and 6) industry and market conditions, noting it was not more likely than not that the fair value of a reporting unit is less than its carrying amount and thus, goodwill was not deemed impaired. |
Other Intangible Assets | Other Intangible Assets We amortize acquired other intangible assets with finite lives over the estimated economic lives of the assets, ranging from 10 to 18 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 on the consolidated balance sheets under the equity section, was comprised 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. |
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 us 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. Our estimate of the future cost to complete a contract may include assumptions as to changes in manufacturing efficiency, 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 adjust the provisions for estimated losses on contracts. The provision for estimated losses on contracts is included as part of contract liabilities on the consolidated balance sheets. |
Income Taxes | Income Taxes Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities. 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. |
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 except for market condition awards for which the fair value was based on a Monte Carlo simulation model. |
Earnings (Loss) per Share | Earnings 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 is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding, plus potentially dilutive shares that could be issued if exercised or converted into common stock in each period. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information (Dollars in thousands) Years Ended December 31, 2019 2018 2017 Interest paid $ 16,474 $ 11,573 $ 7,307 Taxes paid $ 5,699 $ 316 $ 3,125 Non-cash activities: Purchases of property and equipment not paid $ 1,380 $ 824 $ 2,104 |
Contract with Customer, Asset and Liability | Contract assets and contract liabilities from revenue contracts with customers are as follows: (Dollars in thousands) December 31, December 31, Contract assets $ 106,670 $ 86,665 Contract liabilities $ 14,517 $ 17,145 |
Disaggregation of Revenue | In addition to the revenue categories disclosed above, the following table reflects our revenue disaggregated by major end-use market: (Dollars in thousands) Years Ended December 31, % of Net Revenues Change 2019 2018 2019 2018 Consolidated Ducommun Military and space $ 46,208 $ 323,800 $ 277,592 44.9 % 44.1 % Commercial aerospace 44,981 348,503 303,522 48.3 % 48.2 % Industrial 592 48,785 48,193 6.8 % 7.7 % Total $ 91,781 $ 721,088 $ 629,307 100.0 % 100.0 % Electronic Systems Military and space $ 28,526 $ 244,245 $ 215,719 67.8 % 63.8 % Commercial aerospace (6,613 ) 67,343 73,956 18.7 % 21.9 % Industrial 592 48,785 48,193 13.5 % 14.3 % Total $ 22,505 $ 360,373 $ 337,868 100.0 % 100.0 % Structural Systems Military and space $ 17,682 $ 79,555 $ 61,873 22.1 % 21.2 % Commercial aerospace 51,594 281,160 229,566 77.9 % 78.8 % Total $ 69,276 $ 360,715 $ 291,439 100.0 % 100.0 % |
Weighted Average Number of Shares Outstanding Used to Compute Earnings Per Share | The net income and weighted-average common shares outstanding used to compute earnings per share were as follows: (In thousands, except per share data) Years Ended December 31, 2019 2018 2017 Net income $ 32,461 $ 9,035 $ 20,077 Weighted-average number of common shares outstanding Basic weighted-average common shares outstanding 11,518 11,390 11,290 Dilutive potential common shares 274 269 268 Diluted weighted-average common shares outstanding 11,792 11,659 11,558 Earnings per share Basic $ 2.82 $ 0.79 $ 1.78 Diluted $ 2.75 $ 0.77 $ 1.74 |
Weighted Average Number of Shares Outstanding Excluded from Computation of Diluted Earnings | Potentially dilutive stock awards 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, 2019 2018 2017 Stock options and stock units 127 208 126 |
Adoption of Accounting Standa_2
Adoption of Accounting Standards Codification 842 (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Policies | The net impact to the various captions on our January 1, 2019 opening consolidated balance sheets was as follows: (Dollars in thousands) December 31, 2018 January 1, 2019 Unaudited Consolidated Balance Sheets Balances Without Adoption of ASC 842 Effect of Adoption Balances With Adoption of ASC 842 Assets Other current assets $ 6,531 $ (208 ) $ 6,323 Operating lease right-of-use assets $ — $ 18,985 $ 18,985 Non-current deferred income taxes $ 308 $ 5 $ 313 Other assets $ 5,155 $ 254 $ 5,409 Liabilities Operating lease liabilities $ — $ 2,544 $ 2,544 Accrued and other liabilities $ 37,786 $ (329 ) $ 37,457 Non-current operating lease liabilities $ — $ 18,117 $ 18,117 Non-current deferred income taxes $ 18,070 $ (76 ) $ 17,994 Other long-term liabilities $ 14,441 $ (956 ) $ 13,485 Shareholders’ Equity Retained earnings $ 180,356 $ (264 ) $ 180,092 |
Lease, Cost | The components of lease expense for the year ended December 31, 2019 were as follows: (In thousands) Operating leases expense $ 3,963 Finance leases expense: Amortization of right-of-use assets $ 216 Interest on lease liabilities 42 Total finance lease expense $ 258 Supplemental cash flow information related to leases for the year ended December 31, 2019 was as follows: (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,030 Operating cash flows from finance leases $ 39 Financing cash flows from finance leases $ 169 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,574 Finance leases $ 483 The weighted average remaining lease terms as of December 31, 2019 were as follows: (In years) Operating leases 7 Finance leases 4 The weighted average discount rates as of December 31, 2019 were as follows: Operating leases 6.5 % Finance leases 6.5 % |
Finance Lease, Liability, Maturity | Maturity of operating and finance lease liabilities are as follows: (In thousands) Operating Leases Finance Leases 2020 $ 4,178 $ 242 2021 4,147 229 2022 3,756 92 2023 3,425 53 2024 3,003 26 Thereafter 7,022 46 Total lease payments 25,531 688 Less imputed interest 5,010 74 Total $ 20,521 $ 614 |
Lessee, Operating Lease, Liability, Maturity | Maturity of operating and finance lease liabilities are as follows: (In thousands) Operating Leases Finance Leases 2020 $ 4,178 $ 242 2021 4,147 229 2022 3,756 92 2023 3,425 53 2024 3,003 26 Thereafter 7,022 46 Total lease payments 25,531 688 Less imputed interest 5,010 74 Total $ 20,521 $ 614 |
Schedule of Future Minimum Rental Payments for Operating Leases | As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous accounting maturities of lease liabilities were as follows as of December 31, 2018 : (In thousands) 2019 $ 3,680 2020 3,405 2021 2,789 2022 1,404 2023 980 Thereafter 580 Total $ 12,838 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Estimated Fair Value Cash $ 658 Accounts receivable 1,880 Inventories 2,866 Other current assets 168 Property and equipment 2,319 Intangible assets 37,700 Goodwill 34,860 Other non-current assets 675 Total assets acquired 81,126 Current liabilities (2,285 ) Net non-current deferred tax liability (861 ) Other non-current liabilities (675 ) Total liabilities assumed (3,821 ) Total purchase price allocation $ 77,305 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Useful Life Estimated Fair Value (In thousands) Intangible assets: Customer relationships 15-16 $ 34,700 Trade names and trademarks 15 3,000 $ 37,700 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Activities | Our restructuring activities for 2019 were as follows (in thousands): December 31, 2018 2019 December 31, 2019 Balance Charges Cash Payments Adoption of ASC 842 Adjustment Change in Estimates Balance Severance and benefits $ 2,631 $ — $ (2,631 ) $ — $ — $ — Lease termination 861 — (126 ) (735 ) — — Professional service fees 43 — (43 ) — — — Other 416 — (416 ) — — — Total charged to restructuring charges 3,951 — (3,216 ) (735 ) — — Inventory reserve 50 — — — (50 ) — Total charged to cost of sales 50 — — — (50 ) — Ending balance $ 4,001 $ — $ (3,216 ) $ (735 ) $ (50 ) $ — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: (In thousands) December 31, 2019 2018 Raw materials and supplies $ 98,151 $ 89,767 Work in process 10,887 9,199 Finished goods 3,444 2,159 Total $ 112,482 $ 101,125 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 Useful Lives Land $ 15,765 $ 15,662 Buildings and improvements 61,626 57,642 5 - 40 Years Machinery and equipment 167,688 160,163 2 - 20 Years Furniture and equipment 18,714 19,676 2 - 10 Years Construction in progress 14,343 8,742 278,136 261,885 Less accumulated depreciation 162,920 154,840 Total $ 115,216 $ 107,045 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill, by operating segment, for the years ended December 31, 2019 and 2018 were as follows: (In thousands) Electronic Systems Structural Systems Consolidated Ducommun Gross goodwill $ 199,157 $ 18,622 $ 217,779 Accumulated goodwill impairment (81,722 ) — (81,722 ) Balance at December 31, 2018 117,435 18,622 136,057 Goodwill from acquisition during the period — 34,860 34,860 Balance at December 31, 2019 $ 117,435 $ 53,482 $ 170,917 |
Other Intangible Assets | Intangible assets are as follows: (In thousands) December 31, 2019 December 31, 2018 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 17 $ 221,900 $ 88,838 $ 133,062 $ 187,200 $ 77,824 $ 109,376 Trade names and trademarks 14 5,500 450 5,050 2,500 193 2,307 Contract renewal 14 1,845 1,757 88 1,845 1,625 220 Technology 15 400 238 162 400 211 189 Total $ 229,645 $ 91,283 $ 138,362 $ 191,945 $ 79,853 $ 112,092 The carrying amount of other intangible assets by operating segment as of December 31, 2019 and 2018 was as follows: (In thousands) December 31, 2019 December 31, 2018 Gross Accumulated Amortization Net Carrying Value Gross Accumulated Amortization Net Carrying Value Other intangible assets Electronic Systems $ 164,545 $ 71,527 $ 93,018 $ 164,545 $ 62,108 $ 102,437 Structural Systems 65,100 19,756 45,344 27,400 17,745 9,655 Total $ 229,645 $ 91,283 $ 138,362 $ 191,945 $ 79,853 $ 112,092 |
Summary of Future Amortization Expense | Future amortization expense by operating segment is expected to be as follows: (In thousands) Electronic Systems Structural Systems Consolidated Ducommun 2020 $ 9,348 $ 3,719 $ 13,067 2021 9,287 3,614 12,901 2022 9,288 3,553 12,841 2023 9,287 3,495 12,782 2024 9,288 3,260 12,548 Thereafter 46,520 27,703 74,223 $ 93,018 $ 45,344 $ 138,362 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Liabilities | The components of accrued liabilities consisted of the following: (In thousands) December 31, 2019 2018 Accrued compensation $ 31,342 $ 29,616 Accrued income tax and sales tax 163 82 Other 6,115 8,088 Total $ 37,620 $ 37,786 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt Summary | Long-term debt and the current period interest rates were as follows: (In thousands) December 31, 2019 2018 Term loans $ 310,000 $ 233,000 Revolving credit facility — — Total debt 310,000 233,000 Less current portion 7,000 2,330 Total long-term debt, less current portion 303,000 230,670 Less debt issuance costs - term loans 2,113 1,802 Total long-term debt, net of debt issuance costs - term loans $ 300,887 $ 228,868 Debt issuance costs - revolving credit facility (1) $ 1,894 $ 1,907 Weighted-average interest rate 6.87 % 4.71 % (1) Included as part of other assets. |
Future Long Term Debt Payments | Future long-term debt payments at December 31, 2019 were as follows: (In thousands) 2020 $ 7,000 2021 7,000 2022 7,000 2023 7,000 2024 112,000 Thereafter 170,000 Total $ 310,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | Stock option activity for the year ended December 31, 2019 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, 2019 363,225 $ 28.33 Granted 189,170 $ 41.97 Exercised (80,693 ) $ 24.97 Expired (2,857 ) $ 20.09 Forfeited (22,027 ) $ 29.99 Outstanding at December 31, 2019 446,818 $ 34.68 7.7 $ 7,319 Exerciseable at December 31, 2019 96,947 $ 27.70 5.3 $ 2,265 |
Schedule of Nonvested Options Activity | Changes in nonvested stock options for the year ended December 31, 2019 were as follows: Number of Stock Options Weighted- Average Grant Date Fair Value Nonvested at January 1, 2019 292,013 $ 12.20 Granted 189,170 $ 15.95 Vested (109,285 ) $ 11.95 Forfeited (22,027 ) $ 10.24 Nonvested at December 31, 2019 349,871 $ 14.33 |
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, 2019 , 2018 , and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Risk-free interest rate 1.92 % 2.65 % 1.75 % Expected volatility 40.44 % 53.66 % 50.37 % Expected dividends — — — Expected term (in months) 60 36 48 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2019 2018 2017 Discount rate used to determine pension expense Pension Plan 3.22 % 3.64 % 4.18 % LaBarge Retirement Plan 2.85 % 3.40 % 3.75 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2019 2018 2017 Discount rate used to determine value of obligations Pension Plan 4.23 % 4.23 % 3.64 % LaBarge Retirement Plan 4.00 % 4.00 % 3.40 % Long-term rate of return - Pension Plan only 7.00 % 7.00 % 7.00 % |
Schedule of Restricted Stock Units Activity | Restricted stock unit activity for the year ended December 31, 2019 was as follows: Number of Restricted Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 157,937 $ 28.96 Granted 62,520 $ 41.04 Vested (85,279 ) $ 27.94 Forfeited (7,755 ) $ 30.80 Outstanding at December 31, 2019 127,423 $ 36.22 |
Schedule of Performance-based Units Activity | Performance stock activity for the year ended December 31, 2019 was as follows: Number of Performance Stock Units Weighted- Average Grant Date Fair Value Outstanding at January 1, 2019 236,700 $ 26.21 Granted 58,178 $ 43.80 Vested (85,504 ) $ 19.05 Forfeited (11,800 ) $ 33.21 Outstanding at December 31, 2019 197,574 $ 33.98 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost for the Pension Plan and LaBarge Retirement Plan in aggregate are as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Service cost $ 503 $ 601 $ 531 Interest cost 1,388 1,268 1,329 Expected return on plan assets (1,644 ) (1,784 ) (1,530 ) Amortization of actuarial losses 885 743 810 Net periodic pension cost $ 1,132 $ 828 $ 1,140 |
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 2019 were as follows: (In thousands) Year Ended December 31, 2019 Amortization of actuarial loss - total before tax (1) $ 885 Tax benefit (209 ) Net of tax $ 676 (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, 2019 2018 Change in benefit obligation (1) Beginning benefit obligation (January 1) $ 33,951 $ 36,002 Service cost 503 601 Interest cost 1,388 1,268 Actuarial (gain) loss 4,769 (2,415 ) Benefits paid (1,526 ) (1,505 ) Ending benefit obligation (December 31) $ 39,085 $ 33,951 Change in plan assets Beginning fair value of plan assets (January 1) $ 23,749 $ 25,646 Return on assets 4,347 (1,951 ) Employer contribution 1,873 1,559 Benefits paid (1,526 ) (1,505 ) Ending fair value of plan assets (December 31) $ 28,443 $ 23,749 Funded status (underfunded) $ (10,642 ) $ (10,202 ) Amounts recognized in the consolidated balance sheet Current liabilities $ — $ 580 Non-current liabilities $ 10,642 $ 9,622 Unrecognized loss included in accumulated other comprehensive loss Beginning unrecognized loss, before tax (January 1) $ 9,485 $ 8,908 Amortization (885 ) (743 ) Liability (gain) loss 4,769 (2,415 ) Asset loss (gain) (2,709 ) 3,735 Ending unrecognized loss, before tax (December 31) 10,660 9,485 Tax impact (2,544 ) (2,263 ) Unrecognized loss included in accumulated other comprehensive loss, net of tax $ 8,116 $ 7,222 (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, 2019 and 2018 , by asset category, were as follows: December 31, 2019 2018 Equity securities 69 % 57 % Cash and equivalents 1 % 1 % Debt securities 30 % 42 % 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 0-10% Fixed income securities 15-75% Equities 30-80% (In thousands) Year Ended December 31, 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 232 $ — $ — $ 232 Fixed income securities 3,247 — — 3,247 Equities (1) 2,645 — — 2,645 Other investments 1,552 — — 1,552 Total plan assets at fair value $ 7,676 $ — $ — 7,676 Pooled funds 20,767 Total fair value of plan assets $ 28,443 (In thousands) Year Ended December 31, 2018 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 153 $ — $ — $ 153 Fixed income securities 3,647 — — 3,647 Equities (1) 1,475 — — 1,475 Other investments 851 — — 851 Total plan assets at fair value $ 6,126 $ — $ — 6,126 Pooled funds 17,623 Total fair value of plan assets $ 23,749 (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, 2019 , 2018 , and 2017 were as follows: Years Ended December 31, 2019 2018 2017 Risk-free interest rate 1.92 % 2.65 % 1.75 % Expected volatility 40.44 % 53.66 % 50.37 % Expected dividends — — — Expected term (in months) 60 36 48 The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows: Years Ended December 31, 2019 2018 2017 Discount rate used to determine pension expense Pension Plan 3.22 % 3.64 % 4.18 % LaBarge Retirement Plan 2.85 % 3.40 % 3.75 % The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows: December 31, 2019 2018 2017 Discount rate used to determine value of obligations Pension Plan 4.23 % 4.23 % 3.64 % LaBarge Retirement Plan 4.00 % 4.00 % 3.40 % Long-term rate of return - Pension Plan only 7.00 % 7.00 % 7.00 % |
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 2020 $ 1,252 $ 589 2021 1,339 569 2022 1,452 545 2023 1,495 517 2024 1,607 486 2025 - 2029 9,002 2,012 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Tax Expense (Benefit) | The provision for income tax (benefit) expense consisted of the following: (In thousands) Years Ended December 31, 2019 2018 2017 Current tax expense Federal $ 5,802 $ 474 $ 2,387 State 1,067 1,260 525 6,869 1,734 2,912 Deferred tax (benefit) expense Federal (650 ) (789 ) (15,515 ) State (917 ) 291 135 (1,567 ) (498 ) (15,380 ) Income tax expense (benefit) $ 5,302 $ 1,236 $ (12,468 ) |
Summary of Deferred Tax Assets (Liabilities) | Deferred tax (liabilities) assets were comprised of the following: (In thousands) December 31, 2019 2018 Deferred tax assets: Accrued expenses $ 776 $ 704 Allowance for doubtful accounts 314 267 Contract overrun reserves 1,004 1,263 Deferred compensation 94 302 Employment-related accruals 5,049 4,252 Environmental reserves 494 479 Federal tax credit carryforwards 84 288 Inventory reserves 2,334 1,757 Pension obligation 2,552 2,324 Federal and state net operating loss carryforwards 6,251 51 State tax credit carryforwards 8,900 9,075 Stock-based compensation 1,672 1,661 Workers’ compensation 43 51 Other 1,409 1,538 Total gross deferred tax assets 30,976 24,012 Valuation allowance (9,375 ) (9,083 ) Total gross deferred tax assets, net of valuation allowance 21,601 14,929 Deferred tax liabilities: Deferred revenue (256 ) (649 ) Depreciation (8,852 ) (7,951 ) Goodwill (4,109 ) (3,963 ) Intangibles (24,749 ) (19,905 ) Prepaid insurance (346 ) (223 ) Total gross deferred tax liabilities (38,312 ) (32,691 ) Net deferred tax liabilities $ (16,711 ) $ (17,762 ) |
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, 2019 2018 2017 Statutory federal income tax rate 21.0% 21.0% 35.0% State income taxes (net of federal benefit) 3.6 5.3 2.5 Foreign derived intangible income deduction (1.2) — — Qualified domestic production activities — — (2.6) Stock-based compensation expense (2.1) (1.9) (8.2) Research and development tax credits (7.8) (32.0) (50.6) Other tax credits — (1.2) (7.5) Changes in valuation allowance (1.6) 0.7 10.6 Non-deductible book expenses 3.9 8.2 1.1 Changes in deferred tax assets (2.2) 12.1 15.4 Re-measurement of deferred taxes for 2017 Tax Act — — (171.3) Changes in tax reserves 1.2 1.2 11.4 Other (0.8) (1.4) 0.4 Effective income tax (benefit) rate 14.0% 12.0% (163.8)% |
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, 2019 2018 2017 Balance at January 1, $ 5,283 $ 5,271 $ 3,036 Additions for tax positions related to the current year 408 419 422 Additions for tax positions related to prior years — 92 1,953 Reductions for tax positions related to prior years (28 ) (499 ) (99 ) Reductions for lapse of statute of limitations — — (41 ) Balance at December 31, $ 5,663 $ 5,283 $ 5,271 |
Major Customers and Concentra_2
Major Customers and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration Risk by Major Customers | Net revenues from our top ten customers, including The Boeing Company (“Boeing”), Lockheed Martin Corporation (“Lockheed Martin”), Raytheon Company (“Raytheon”), and Spirit AeroSystems Holdings, Inc. (“Spirit”), represented the following percentages of total net sales: Years Ended December 31, 2019 2018 2017 Boeing 16.6 % 17.0 % 16.3 % Lockheed Martin 4.0 % 4.4 % 5.5 % Raytheon 11.0 % 11.7 % 13.5 % Spirit 12.2 % 9.5 % 8.2 % Top ten customers (1) 63.5 % 62.9 % 62.5 % (1) Includes Boeing, Lockheed Martin, Raytheon, and Spirit. Boeing, Lockheed Martin, Raytheon, and Spirit represented the following percentages of total accounts receivable: December 31, 2019 2018 Boeing 5.9 % 8.0 % Lockheed Martin 0.8 % 2.5 % Raytheon 3.3 % 3.2 % Spirit 2.0 % — % |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment was as follows: (In thousands) Years Ended December 31, 2019 2018 2017 Net Revenues Electronic Systems $ 360,373 $ 337,868 $ 316,723 Structural Systems 360,715 291,439 241,460 Total Net Revenues $ 721,088 $ 629,307 $ 558,183 Segment Operating Income (Loss) (1)(2)(3) Electronic Systems $ 38,613 $ 30,916 $ 31,236 Structural Systems 46,836 19,063 5,790 85,449 49,979 37,026 Corporate General and Administrative Expenses (4) (29,216 ) (26,061 ) (21,392 ) Operating Income $ 56,233 $ 23,918 $ 15,634 Depreciation and Amortization Expenses Electronic Systems $ 14,170 $ 14,223 $ 13,888 Structural Systems 13,663 10,525 8,860 Corporate Administration 472 548 97 Total Depreciation and Amortization Expenses $ 28,305 $ 25,296 $ 22,845 Capital Expenditures Electronic Systems $ 5,508 $ 6,719 $ 5,019 Structural Systems 13,338 9,104 20,679 Corporate Administration — 514 775 Total Capital Expenditures $ 18,846 $ 16,337 $ 26,473 (1) The results for 2019 includes Nobles’ results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. (2) The results for 2018 includes CTP’s results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Structural Systems segment. See Note 3. (3) The results for 2017 includes LDS’ results of operations which have been included in our consolidated statements of income since the date of acquisition as part of the Electronic Systems segment. (4) Includes cost not allocated to either the Electronic Systems or Structural Systems 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 2019 and 2018 : (In thousands) December 31, 2019 2018 Total Assets Electronic Systems $ 411,981 $ 405,743 Structural Systems 328,718 220,993 Corporate Administration 49,730 18,003 Total Assets $ 790,429 $ 644,739 Goodwill and Intangibles Electronic Systems $ 210,453 $ 219,872 Structural Systems 98,826 28,277 Total Goodwill and Intangibles $ 309,279 $ 248,149 |
Supplemental Quarterly Financ_2
Supplemental Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (In thousands, except per share amounts) Three Months Ended Three Months Ended Dec 31 Sep 28 Jun 29 Mar 30 Dec 31 Sep 29 Jun 30 Mar 31 Net Revenues $ 186,926 $ 181,101 $ 180,495 $ 172,566 $ 164,183 $ 159,842 $ 154,827 $ 150,455 Gross Profit 40,111 38,327 38,065 35,694 32,697 31,116 32,028 26,755 Income Before Taxes 9,848 10,240 9,178 8,497 1,791 4,290 1,833 2,357 Income Tax Expense (Benefit) 977 1,937 1,363 1,025 1,118 119 242 (243 ) Net Income $ 8,871 $ 8,303 $ 7,815 $ 7,472 $ 673 $ 4,171 $ 1,591 $ 2,600 Earnings Per Share Basic earnings per share $ 0.77 $ 0.72 $ 0.68 $ 0.65 $ 0.06 $ 0.37 $ 0.14 $ 0.23 Diluted earnings per share $ 0.75 $ 0.70 $ 0.66 $ 0.64 $ 0.06 $ 0.36 $ 0.14 $ 0.22 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Production cost of contracts | $ 9,402,000 | $ 11,679,000 | |||
Goodwill | 170,917,000 | 136,057,000 | |||
Provision for loss on contracts | $ 4,200,000 | 5,300,000 | |||
Cumulative impact to retained earnings | $ (264,000) | $ 8,665,000 | |||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of intangible assets (in years) | 10 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful life of intangible assets (in years) | 18 years | ||||
Certified Thermoplastics Co., LLC | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill | $ 18,600,000 | ||||
Estimated useful life of intangible assets (in years) | 10 years | ||||
Electronic Systems | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill | $ 117,435,000 | 117,435,000 | |||
Percentage of fair value in excess of carrying amount | 44.00% | ||||
Structural Systems | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill | $ 53,482,000 | $ 18,622,000 | |||
Percentage of fair value in excess of carrying amount | 85.00% | ||||
Other Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Interest rate cap hedge premium | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid | $ 16,474 | $ 11,573 | $ 7,307 |
Taxes paid | 5,699 | 316 | 3,125 |
Non-cash activities: | |||
Purchases of property and equipment not paid | $ 1,380 | $ 824 | $ 2,104 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Contact Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Contract assets | $ 106,670 | $ 86,665 |
Contract liabilities | $ 14,517 | $ 17,145 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Remaining Performance Obligation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Remaining performance obligation, amount | $ 745.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 65.00% |
Remaining performance obligation, period | 12 months |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 91,781 | ||||||||||
Revenues | $ 186,926 | $ 181,101 | $ 180,495 | $ 172,566 | $ 164,183 | $ 159,842 | $ 154,827 | $ 150,455 | $ 721,088 | $ 629,307 | $ 558,183 |
Percentage of revenues | 100.00% | 100.00% | |||||||||
Electronic Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 22,505 | ||||||||||
Revenues | $ 360,373 | $ 337,868 | |||||||||
Percentage of revenues | 100.00% | 100.00% | |||||||||
Structural Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 69,276 | ||||||||||
Revenues | $ 360,715 | $ 291,439 | |||||||||
Percentage of revenues | 100.00% | 100.00% | |||||||||
Military and space | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 46,208 | ||||||||||
Revenues | $ 323,800 | $ 277,592 | |||||||||
Percentage of revenues | 44.90% | 44.10% | |||||||||
Military and space | Electronic Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 28,526 | ||||||||||
Revenues | $ 244,245 | $ 215,719 | |||||||||
Percentage of revenues | 67.80% | 63.80% | |||||||||
Military and space | Structural Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 17,682 | ||||||||||
Revenues | $ 79,555 | $ 61,873 | |||||||||
Percentage of revenues | 22.10% | 21.20% | |||||||||
Commercial aerospace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 44,981 | ||||||||||
Revenues | $ 348,503 | $ 303,522 | |||||||||
Percentage of revenues | 48.30% | 48.20% | |||||||||
Commercial aerospace | Electronic Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ (6,613) | ||||||||||
Revenues | $ 67,343 | $ 73,956 | |||||||||
Percentage of revenues | 18.70% | 21.90% | |||||||||
Commercial aerospace | Structural Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 51,594 | ||||||||||
Revenues | $ 281,160 | $ 229,566 | |||||||||
Percentage of revenues | 77.90% | 78.80% | |||||||||
Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 592 | ||||||||||
Revenues | $ 48,785 | $ 48,193 | |||||||||
Percentage of revenues | 6.80% | 7.70% | |||||||||
Industrial | Electronic Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Change in revenue for the period | $ 592 | ||||||||||
Revenues | $ 48,785 | $ 48,193 | |||||||||
Percentage of revenues | 13.50% | 14.30% |
Summary of Significant Accoun_9
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, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||
Net Income | $ 8,871 | $ 8,303 | $ 7,815 | $ 7,472 | $ 673 | $ 4,171 | $ 1,591 | $ 2,600 | $ 32,461 | $ 9,035 | $ 20,077 |
Weighted-average number of common shares outstanding | |||||||||||
Basic weighted-average common shares outstanding (in shares) | 11,518 | 11,390 | 11,290 | ||||||||
Dilutive potential common shares (in shares) | 274 | 269 | 268 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 11,792 | 11,659 | 11,558 | ||||||||
Earnings Per Share | |||||||||||
Basic earnings (loss) per share (in dollars per share) | $ 0.77 | $ 0.72 | $ 0.68 | $ 0.65 | $ 0.06 | $ 0.37 | $ 0.14 | $ 0.23 | $ 2.82 | $ 0.79 | $ 1.78 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.75 | $ 0.70 | $ 0.66 | $ 0.64 | $ 0.06 | $ 0.36 | $ 0.14 | $ 0.22 | $ 2.75 | $ 0.77 | $ 1.74 |
Summary of Significant Accou_10
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options and stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options and stock units | 127 | 208 | 126 |
Adoption of Accounting Standa_3
Adoption of Accounting Standards Codification 842 - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Other current assets | $ 5,497 | $ 6,323 | $ 6,531 |
Operating lease right-of-use assets | 19,105 | 18,985 | 0 |
Non-current deferred income taxes | 55 | 313 | 308 |
Other assets | 6,006 | 5,409 | 5,155 |
Liabilities | |||
Operating lease liabilities | 2,956 | 2,544 | 0 |
Accrued and other liabilities | 37,620 | 37,457 | 37,786 |
Non-current operating lease liabilities | 17,565 | 18,117 | 0 |
Non-current deferred income taxes | 16,766 | 17,994 | 18,070 |
Other long-term liabilities | 17,721 | 13,485 | 14,441 |
Shareholders’ Equity | |||
Retained earnings | $ 212,553 | 180,092 | $ 180,356 |
Accounting Standards Update 2016-02 | |||
Assets | |||
Other current assets | (208) | ||
Operating lease right-of-use assets | 18,985 | ||
Non-current deferred income taxes | 5 | ||
Other assets | 254 | ||
Liabilities | |||
Operating lease liabilities | 2,544 | ||
Accrued and other liabilities | (329) | ||
Non-current operating lease liabilities | 18,117 | ||
Non-current deferred income taxes | (76) | ||
Other long-term liabilities | (956) | ||
Shareholders’ Equity | |||
Retained earnings | $ (264) |
Adoption of Accounting Standa_4
Adoption of Accounting Standards Codification 842 - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease renewal term | 5 years |
Lease termination period | 1 year |
Payments due with option to extend | $ 11,400,000 |
Operating lease, lease not yet commenced, amount | 0 |
Finance lease, lease not yet commenced, amount | $ 1,300,000 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Finance lease, lease not yet commenced, term of contract | 7 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 11 years |
Finance lease, lease not yet commenced, term of contract | 10 years |
Adoption of Accounting Standa_5
Adoption of Accounting Standards Codification 842 - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating leases expense | $ 3,963 |
Finance leases expense: | |
Amortization of right-of-use assets | 216 |
Interest on lease liabilities | 42 |
Total finance lease expense | $ 258 |
Adoption of Accounting Standa_6
Adoption of Accounting Standards Codification 842 - Supplemental Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 4,030 |
Operating cash flows from finance leases | 39 |
Financing cash flows from finance leases | 169 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 2,574 |
Finance leases | $ 483 |
Adoption of Accounting Standa_7
Adoption of Accounting Standards Codification 842 - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Weighted Average Lease Term | |
Operating leases | 7 years |
Finance leases | 4 years |
Weighted Average Discount Rate | |
Operating leases | 6.50% |
Finance leases | 6.50% |
Adoption of Accounting Standa_8
Adoption of Accounting Standards Codification 842 - Undiscounted Cash Flows (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 4,178 |
2021 | 4,147 |
2022 | 3,756 |
2023 | 3,425 |
2024 | 3,003 |
Thereafter | 7,022 |
Total lease payments | 25,531 |
Less imputed interest | 5,010 |
Total | 20,521 |
Finance Leases | |
2020 | 242 |
2021 | 229 |
2022 | 92 |
2023 | 53 |
2024 | 26 |
Thereafter | 46 |
Total lease payments | 688 |
Less imputed interest | 74 |
Total | $ 614 |
Adoption of Accounting Standa_9
Adoption of Accounting Standards Codification 842 - Prior Year Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2020 | $ 3,680 |
2021 | 3,405 |
2022 | 2,789 |
2023 | 1,404 |
2024 | 980 |
Thereafter | 580 |
Total | $ 12,838 |
Business Combinations - Nobles
Business Combinations - Nobles Worldwide, Inc. (Details) - USD ($) $ in Thousands | Oct. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Purchase price, net of cash acquired | $ 0 | $ 0 | $ 59,798 | |
Goodwill | $ 170,917 | $ 136,057 | ||
Nobles Worldwide, Inc. | ||||
Business Acquisition [Line Items] | ||||
Equity interest acquired | 100.00% | 100.00% | ||
Purchase price, net of cash acquired | $ 77,000 | |||
Payments to acquire business | 77,300 | |||
Gross purchase price | 77,305 | |||
Intangible assets | 37,700 | |||
Goodwill, expected tax deductible amount | $ 6,700 | |||
Acquisition related costs | $ 800 | |||
Goodwill | $ 34,860 |
Business Combinations - Fair Va
Business Combinations - Fair Value of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 08, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 170,917 | $ 136,057 | |
Nobles Worldwide, Inc. | |||
Business Acquisition [Line Items] | |||
Cash | $ 658 | ||
Accounts receivable | 1,880 | ||
Inventories | 2,866 | ||
Other current assets | 168 | ||
Property and equipment | 2,319 | ||
Intangible assets | 37,700 | ||
Goodwill | 34,860 | ||
Other non-current assets | 675 | ||
Total assets acquired | 81,126 | ||
Current liabilities | (2,285) | ||
Net non-current deferred tax liability | (861) | ||
Other non-current liabilities | (675) | ||
Total liabilities assumed | 3,821 | ||
Total purchase price allocation | $ 77,305 |
Business Combinations - Estimat
Business Combinations - Estimated Fair Value of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Oct. 08, 2019 | Dec. 31, 2019 |
Nobles Worldwide, Inc. | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 37,700 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 17 years | |
Customer relationships | Nobles Worldwide, Inc. | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 34,700 | |
Trade names and trademarks | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 14 years | |
Trade names and trademarks | Nobles Worldwide, Inc. | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 15 years | |
Intangible assets | $ 3,000 | |
Minimum | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 10 years | |
Minimum | Customer relationships | Nobles Worldwide, Inc. | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 15 years | |
Maximum | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 18 years | |
Maximum | Customer relationships | Nobles Worldwide, Inc. | ||
Business Acquisition [Line Items] | ||
Useful Life (In years) | 16 years |
Business Combinations - Certifi
Business Combinations - Certified Thermoplastics Co., LLC (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | |||||
Purchase price, net of cash acquired | $ 0 | $ 0 | $ 59,798 | ||
Goodwill | $ 170,917 | $ 136,057 | |||
Certified Thermoplastics Co., LLC | |||||
Business Acquisition [Line Items] | |||||
Equity interest acquired | 100.00% | 100.00% | |||
Purchase price, net of cash acquired | $ 30,700 | ||||
Payments to acquire business | 30,800 | ||||
Gross purchase price | 30,800 | ||||
Intangible assets | 8,100 | ||||
Inventories | 2,200 | ||||
Accounts receivable | 1,500 | ||||
Property and equipment | 600 | ||||
Cash | 100 | ||||
Other current assets | 100 | ||||
Total liabilities assumed | 400 | ||||
Goodwill | $ 18,600 | ||||
Estimated useful life of intangible assets (in years) | 10 years | ||||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life of intangible assets (in years) | 17 years | ||||
Customer relationships | Certified Thermoplastics Co., LLC | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 6,900 | ||||
Trade Names | Certified Thermoplastics Co., LLC | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,200 |
Restructuring Activities - Narr
Restructuring Activities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 3,800 | $ 3,400 | $ 5,400 | $ 2,200 | $ 0 | $ 14,671 | $ 8,360 |
Restructuring Plan, 2017 | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 23,600 | ||||||
Restructuring charges | 0 | $ 14,800 | $ 8,800 | ||||
Non-cash payments | 735 | ||||||
Restructuring Plan, 2017 | Severance and benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Non-cash payments | 0 | ||||||
Restructuring Plan, 2017 | Lease termination | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Non-cash payments | 735 | ||||||
Restructuring Plan, 2017 | Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Non-cash payments | 0 | ||||||
Restructuring Plan, 2017 | Professional service fees | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 0 | ||||||
Non-cash payments | 0 | ||||||
Restructuring Plan, 2017 | Electronic Systems | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Inventory write-down | 100 | ||||||
Restructuring Plan, 2017 | Electronic Systems | Severance and benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 3,800 | ||||||
Restructuring Plan, 2017 | Electronic Systems | Lease termination | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 900 | ||||||
Restructuring Plan, 2017 | Electronic Systems | Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 900 | ||||||
Restructuring Plan, 2017 | Electronic Systems | Professional service fees | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 200 | ||||||
Restructuring Plan, 2017 | Electronic Systems | Property and equipment impairment due to restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Non-cash payments | 100 | ||||||
Restructuring Plan, 2017 | Structural Systems | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Inventory write-down | 500 | ||||||
Restructuring Plan, 2017 | Structural Systems | Severance and benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 3,000 | ||||||
Restructuring Plan, 2017 | Structural Systems | Other | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, cost incurred to date | 400 | ||||||
Restructuring Plan, 2017 | Structural Systems | Property and equipment impairment due to restructuring | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Non-cash payments | 9,800 | ||||||
Corporate Segment | Restructuring Plan, 2017 | Severance and benefits | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Accrued severance and loss on early exit | 1,400 | ||||||
Corporate Segment | Restructuring Plan, 2017 | Professional service fees | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Accrued severance and loss on early exit | 1,000 | ||||||
Corporate Segment | Restructuring Plan, 2017 | Modification of stock-based compensation awards | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Accrued severance and loss on early exit | $ 1,400 |
Restructuring Activities - (Det
Restructuring Activities - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||||
Charges | $ 3,800 | $ 3,400 | $ 5,400 | $ 2,200 | $ 0 | $ 14,671 | $ 8,360 |
Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 4,001 | ||||||
Charges | 0 | 14,800 | $ 8,800 | ||||
Cash Payments | (3,216) | ||||||
Adoption of ASC 842 Adjustment | (735) | ||||||
Change in Estimates | (50) | ||||||
Ending balance | 4,001 | 0 | 4,001 | ||||
Restructuring Plan, 2017 | Restructuring Charges | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 3,951 | ||||||
Charges | 0 | ||||||
Cash Payments | (3,216) | ||||||
Adoption of ASC 842 Adjustment | (735) | ||||||
Change in Estimates | 0 | ||||||
Ending balance | 3,951 | 0 | 3,951 | ||||
Restructuring Plan, 2017 | Cost of Sales | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 50 | ||||||
Charges | 0 | ||||||
Cash Payments | 0 | ||||||
Adoption of ASC 842 Adjustment | 0 | ||||||
Change in Estimates | (50) | ||||||
Ending balance | 50 | 0 | 50 | ||||
Severance and benefits | Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 2,631 | ||||||
Charges | 0 | ||||||
Cash Payments | (2,631) | ||||||
Adoption of ASC 842 Adjustment | 0 | ||||||
Change in Estimates | 0 | ||||||
Ending balance | 2,631 | 0 | 2,631 | ||||
Lease termination | Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 861 | ||||||
Charges | 0 | ||||||
Cash Payments | (126) | ||||||
Adoption of ASC 842 Adjustment | (735) | ||||||
Change in Estimates | 0 | ||||||
Ending balance | 861 | 0 | 861 | ||||
Professional service fees | Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 43 | ||||||
Charges | 0 | ||||||
Cash Payments | (43) | ||||||
Adoption of ASC 842 Adjustment | 0 | ||||||
Change in Estimates | 0 | ||||||
Ending balance | 43 | 0 | 43 | ||||
Other | Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 416 | ||||||
Charges | 0 | ||||||
Cash Payments | (416) | ||||||
Adoption of ASC 842 Adjustment | 0 | ||||||
Change in Estimates | 0 | ||||||
Ending balance | 416 | 0 | 416 | ||||
Inventory reserve | Restructuring Plan, 2017 | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | 50 | ||||||
Charges | 0 | ||||||
Cash Payments | 0 | ||||||
Adoption of ASC 842 Adjustment | 0 | ||||||
Change in Estimates | (50) | ||||||
Ending balance | $ 50 | $ 0 | $ 50 |
Inventories - (Details)
Inventories - (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 98,151 | $ 89,767 |
Work in process | 10,887 | 9,199 |
Finished goods | 3,444 | 2,159 |
Total | $ 112,482 | $ 101,125 |
Property and Equipment, Net - (
Property and Equipment, Net - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 278,136 | $ 261,885 | |
Less accumulated depreciation | 162,920 | 154,840 | |
Total | 115,216 | 107,045 | |
Depreciation expense | 13,500 | 13,500 | $ 13,200 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 15,765 | 15,662 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 61,626 | 57,642 | |
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 | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 167,688 | 160,163 | |
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 equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 18,714 | 19,676 | |
Furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 14,343 | $ 8,742 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Gross goodwill | $ 217,779 | |
Accumulated goodwill impairment | (81,722) | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 136,057 | |
Goodwill from acquisition during the period | 34,860 | |
Goodwill, ending balance | 170,917 | |
Electronic Systems | ||
Goodwill [Line Items] | ||
Gross goodwill | 199,157 | |
Accumulated goodwill impairment | (81,722) | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 117,435 | |
Goodwill from acquisition during the period | 0 | |
Goodwill, ending balance | 117,435 | |
Structural Systems | ||
Goodwill [Line Items] | ||
Gross goodwill | 18,622 | |
Accumulated goodwill impairment | $ 0 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 18,622 | |
Goodwill from acquisition during the period | 34,860 | |
Goodwill, ending balance | $ 53,482 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | Oct. 08, 2019 | Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 |
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 170,917 | $ 136,057 | ||||
Purchase price, net of cash acquired | 0 | 0 | $ 59,798 | |||
Amortization expense of intangible asset | $ 11,400 | 10,700 | $ 9,300 | |||
Minimum | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Acquired intangible assets amortization period | 10 years | |||||
Maximum | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Acquired intangible assets amortization period | 18 years | |||||
Certified Thermoplastics Co., LLC | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 18,600 | |||||
Equity interest acquired | 100.00% | 100.00% | ||||
Purchase price, net of cash acquired | $ 30,700 | |||||
Gross purchase price | $ 30,800 | |||||
Nobles Worldwide, Inc. | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 34,860 | |||||
Equity interest acquired | 100.00% | 100.00% | ||||
Purchase price, net of cash acquired | $ 77,000 | |||||
Gross purchase price | $ 77,305 | |||||
Structural Systems | ||||||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $ 53,482 | $ 18,622 | ||||
Percentage of fair value in excess of carrying amount | 85.00% |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Amount of Finite-lived and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 229,645 | $ 191,945 |
Accumulated Amortization | 91,283 | 79,853 |
Net Carrying Amount | 138,362 | 112,092 |
Electronic Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 164,545 | 164,545 |
Accumulated Amortization | 71,527 | 62,108 |
Net Carrying Amount | 93,018 | 102,437 |
Structural Systems | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 65,100 | 27,400 |
Accumulated Amortization | 19,756 | 17,745 |
Net Carrying Amount | $ 45,344 | 9,655 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 17 years | |
Gross Carrying Amount | $ 221,900 | 187,200 |
Accumulated Amortization | 88,838 | 77,824 |
Net Carrying Amount | $ 133,062 | 109,376 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 14 years | |
Gross Carrying Amount | $ 5,500 | 2,500 |
Accumulated Amortization | 450 | 193 |
Net Carrying Amount | $ 5,050 | 2,307 |
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 | 1,757 | 1,625 |
Net Carrying Amount | $ 88 | 220 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life of intangible assets (in years) | 15 years | |
Gross Carrying Amount | $ 400 | 400 |
Accumulated Amortization | 238 | 211 |
Net Carrying Amount | $ 162 | $ 189 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Future Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | $ 13,067 | |
2021 | 12,901 | |
2022 | 12,841 | |
2023 | 12,782 | |
2024 | 12,548 | |
Thereafter | 74,223 | |
Net Carrying Amount | 138,362 | $ 112,092 |
Electronic Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | 9,348 | |
2021 | 9,287 | |
2022 | 9,288 | |
2023 | 9,287 | |
2024 | 9,288 | |
Thereafter | 46,520 | |
Net Carrying Amount | 93,018 | 102,437 |
Structural Systems | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | 3,719 | |
2021 | 3,614 | |
2022 | 3,553 | |
2023 | 3,495 | |
2024 | 3,260 | |
Thereafter | 27,703 | |
Net Carrying Amount | $ 45,344 | $ 9,655 |
Accrued Liabilities - (Details)
Accrued Liabilities - (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | |||
Accrued compensation | $ 31,342 | $ 29,616 | |
Accrued income tax and sales tax | 163 | 82 | |
Other | 6,115 | 8,088 | |
Total | $ 37,620 | $ 37,457 | $ 37,786 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 310,000 | $ 233,000 |
Less current portion | 7,000 | 2,330 |
Total long-term debt, less current portion | 303,000 | 230,670 |
Less debt issuance costs | 2,113 | 1,802 |
Total long-term debt, net of debt issuance costs | $ 300,887 | $ 228,868 |
Weighted-average interest rate (percent) | 6.87% | 4.71% |
Term loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 310,000 | $ 233,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 0 |
Less debt issuance costs | $ 1,894 | $ 1,907 |
Long-Term Debt - Future Long-Te
Long-Term Debt - Future Long-Term Debt Payment (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 7,000 |
2021 | 7,000 |
2022 | 7,000 |
2023 | 7,000 |
2024 | 112,000 |
Thereafter | 170,000 |
Total Debt | $ 310,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Dec. 20, 2019 | Oct. 08, 2019 | Nov. 30, 2018 | Apr. 30, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Oct. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||||||||||
Repayments of debt | $ 169,000 | $ 0 | $ 3,000 | ||||||||
Loss on extinguishment of debt | 180,000 | 926,000 | 0 | ||||||||
Purchase price, net of cash acquired | $ 0 | 0 | 59,798,000 | ||||||||
Parsons, KS | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Proceeds received from sale of property to be leased back | 2,200,000 | 14,200,000 | |||||||||
Total lease liability from assets sold | 2,200,000 | 14,200,000 | |||||||||
Parsons, KS | Municipal Bonds | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Purchase of industrial revenue bonds | 2,200,000 | $ 14,200,000 | |||||||||
Interest rate cap premiums | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Hedging asset | $ 135,000,000 | ||||||||||
Payments for hedging asset | $ 1,000,000 | ||||||||||
2018 Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs, net | $ 1,800,000 | ||||||||||
Accumulated amortization of debt | 200,000 | ||||||||||
Debt issuance costs | $ 2,000,000 | ||||||||||
Term of debt instrument | 5 years | ||||||||||
2018 Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs, net | $ 1,700,000 | ||||||||||
Accumulated amortization of debt | 100,000 | ||||||||||
Debt issuance costs | $ 1,800,000 | ||||||||||
Term of debt instrument | 7 years | ||||||||||
Credit Facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of instrument | $ 480,000,000 | ||||||||||
New Existing Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amortization of debt issuance costs | $ 500,000 | ||||||||||
Loss on extinguishment of debt | 900,000 | ||||||||||
Existing Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Amortization of debt issuance costs | 400,000 | ||||||||||
New Credit Facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt issuance costs, net | $ 3,500,000 | ||||||||||
Nobles Worldwide, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity interest acquired | 100.00% | 100.00% | |||||||||
Purchase price, net of cash acquired | $ 77,000,000 | ||||||||||
Payments to acquire business | $ 77,300,000 | ||||||||||
Certified Thermoplastics Co., LLC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity interest acquired | 100.00% | 100.00% | |||||||||
Purchase price, net of cash acquired | $ 30,700,000 | ||||||||||
Payments to acquire business | $ 30,800,000 | ||||||||||
Lightning Diversion Systems, Inc. | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Equity interest acquired | 100.00% | ||||||||||
Purchase price, net of cash acquired | $ 60,000,000 | ||||||||||
Payments to acquire business | $ 600,000 | $ 61,400,000 | |||||||||
Revolving Credit Facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (percent) | 0.20% | ||||||||||
Revolving Credit Facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (percent) | 0.30% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (percent) | 0.175% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Commitment fee (percent) | 0.275% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | LIBOR Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.50% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | LIBOR Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 2.50% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 0.50% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 1.00% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 0.50% | ||||||||||
Revolving Credit Facility | New Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.50% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||||||||||
Percentage of excess cash flow payment when leverage ratio is greater than 3.25 | 50.00% | ||||||||||
Percentage of excess cash flow payment when leverage ratio is less than or equal to 3.25 | 25.00% | ||||||||||
Percentage of excess cash flow payment when leverage ratio is less than or equal to 2.50 | 0.00% | ||||||||||
Proceeds from lines of credit | $ 7,900,000 | ||||||||||
Repayments of lines of credit | $ 58,500,000 | ||||||||||
Fees paid to lenders to be capitalized | $ 500,000 | ||||||||||
Amortization of debt issuance costs | 500,000 | ||||||||||
Debt issuance costs, net | 1,100,000 | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | LIBOR Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.75% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | LIBOR Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 2.75% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 0.50% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 1.00% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 0.75% | ||||||||||
Revolving Credit Facility | 2018 Revolving Credit Facility | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.75% | ||||||||||
Revolving Credit Facility | 2018 Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fees paid to lenders to be capitalized | 1,500,000 | ||||||||||
Revolving Credit Facility | New Existing Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Repayments of lines of credit | $ 247,900,000 | ||||||||||
Revolving Credit Facility | New Credit Facilities | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Remaining borrowing capacity | 99,800,000 | ||||||||||
Outstanding standby letters of credit | 200,000 | ||||||||||
Secured Debt | New Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of instrument | $ 140,000,000 | ||||||||||
Prepayment percentage of principal | 1.25% | ||||||||||
Proceeds from lines of credit | $ 140,000,000 | ||||||||||
Fees paid to lenders to be capitalized | $ 600,000 | ||||||||||
Secured Debt | New Term Loan | LIBOR Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.50% | ||||||||||
Secured Debt | New Term Loan | LIBOR Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 2.50% | ||||||||||
Secured Debt | New Term Loan | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 0.50% | ||||||||||
Secured Debt | New Term Loan | Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 1.00% | ||||||||||
Secured Debt | New Term Loan | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 0.50% | ||||||||||
Secured Debt | New Term Loan | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 1.50% | ||||||||||
Secured Debt | 2018 Term Loan | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount of instrument | $ 240,000,000 | ||||||||||
Prepayment percentage of principal | 0.25% | ||||||||||
Proceeds from lines of credit | $ 240,000,000 | ||||||||||
Repayments of debt | $ 56,000,000 | ||||||||||
Secured Debt | 2018 Term Loan | LIBOR Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 3.75% | ||||||||||
Secured Debt | 2018 Term Loan | LIBOR Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 4.00% | ||||||||||
Secured Debt | 2018 Term Loan | Federal Funds Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 0.50% | ||||||||||
Secured Debt | 2018 Term Loan | Eurodollar Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate spread (percent) | 1.00% | ||||||||||
Secured Debt | 2018 Term Loan | Base Rate | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 3.75% | ||||||||||
Secured Debt | 2018 Term Loan | Base Rate | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Variable rate spread (percent) | 4.00% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)plan$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of incentive plans | plan | 2 | ||
Granted (in shares) | shares | 189,170 | ||
Grants (in dollars per share) | $ / shares | $ 15.95 | ||
Weighted average remaining contractual term | 7 years 8 months 18 days | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | shares | 750,000 | ||
Shares reserved for future issuance (in shares) | shares | 723,479 | ||
Discount from market price, offering date | 15.00% | ||
Maximum percentage of employee compensation for purchase of common stock | 10.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | shares | 189,170 | 176,940 | 129,400 |
Grants (in dollars per share) | $ / shares | $ 15.95 | $ 12.87 | $ 11.88 |
Expiration period from date of grant | 10 years | ||
Aggregate intrinsic value of stock options exercised | $ 1.8 | $ 1.3 | $ 2.5 |
Cash received from the exercise of options | 2.6 | 1.8 | 4.3 |
Tax benefits realized for the tax deductions from options exercised | $ 0.6 | 0.3 | 0.9 |
Options vested (in shares) | shares | 446,818 | ||
Weighted average exercise price (in dollars per share) | $ / shares | $ 34.68 | ||
Aggregate intrinsic value | $ 7.3 | ||
Weighted average remaining contractual term | 7 years 8 months 18 days | ||
Share-based compensation expense | $ 1.6 | 0.9 | 0.7 |
Unrecognized compensation cost related to stock option | $ 3.7 | ||
Weighted average period | 1 year 11 months 14 days | ||
Total fair value of options expensed before tax benefits | $ 1.3 | 0.8 | 0.8 |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting term | 3 years | ||
Share-based compensation expense | $ 2.4 | $ 2.1 | $ 2 |
Weighted average period | 1 year 4 months 24 days | ||
Granted (in shares) | shares | 62,520 | 81,230 | 135,350 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 41.04 | $ 32.36 | $ 28.97 |
Compensation not yet recognized | $ 2.9 | ||
Fair value of awards vested in period | 2.4 | $ 2.7 | $ 3 |
Tax benefit realized on vesting of options | 0.6 | 0.6 | 1.1 |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 3.2 | $ 1.9 | $ 2 |
Weighted average period | 2 years 3 months 18 days | ||
Granted (in shares) | shares | 58,178 | 64,700 | 126,000 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 43.80 | $ 35.16 | $ 26.31 |
Compensation not yet recognized | $ 3.2 | ||
Fair value of awards vested in period | 3.8 | $ 0.3 | $ 1.2 |
Tax benefit realized on vesting of options | $ 0.9 | $ 0.1 | $ 0.5 |
2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | shares | 1,690,000 | ||
Shares reserved for future issuance other than stock options (in shares) | shares | 337,693 | ||
Shares reserved for future issuance (in shares) | shares | 222,132 | ||
Minimum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting term | 3 years | ||
Maximum | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting term | 4 years | ||
Third Anniversary | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Second Anniversary | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
First Anniversary | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 34.00% |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Beginning Balance (in shares) | shares | 363,225 |
Granted (in shares) | shares | 189,170 |
Exercised (in shares) | shares | (80,693) |
Expired (in shares) | shares | (2,857) |
Forfeited (in shares) | shares | (22,027) |
Ending Balance (in shares) | shares | 446,818 |
Exercisable at end of period (in shares) | shares | 96,947 |
Weighted-Average Exercise Price Per Share | |
Beginning Balance (in dollars per share) | $ / shares | $ 28.33 |
Granted (in dollars per share) | $ / shares | 41.97 |
Exercised (in dollars per share) | $ / shares | 24.97 |
Expired (in dollars per share) | $ / shares | 20.09 |
Forfeited (in dollars per share) | $ / shares | 29.99 |
Ending Balance (in dollars per share) | $ / shares | 34.68 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 27.70 |
Weighted-Average Remaining Contractual Life (Years) | |
Outstanding | 7 years 8 months 18 days |
Exerciseable | 5 years 3 months 18 days |
Aggregate Intrinsic Value (in thousands) | |
Outstanding | $ | $ 7,319 |
Exerciseable | $ | $ 2,265 |
Stock-Based Compensation - Chan
Stock-Based Compensation - Changes in Nonvested Stock Options (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of Stock Options | |
Beginning balance (in shares) | shares | 292,013 |
Granted (in shares) | shares | 189,170 |
Vested (shares) | shares | (109,285) |
Forfeited (shares) | shares | (22,027) |
Ending balance (in shares) | shares | 349,871 |
Weighted- Average Grant Date Fair Value | |
Beginning balance, (in dollars per share) | $ / shares | $ 12.20 |
Granted, (in dollars per share) | $ / shares | 15.95 |
Vested, (in dollars per share) | $ / shares | 11.95 |
Forfeited, (in dollars per share) | $ / shares | 10.24 |
Ending balance, (in dollars per share) | $ / shares | $ 14.33 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used for Estimating Fair Value of Share Based Payment Award (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (percent) | 1.92% | 2.65% | 1.75% |
Expected volatility (percent) | 40.44% | 53.66% | 50.37% |
Expected dividends | $ 0 | $ 0 | $ 0 |
Expected term (in months) | 60 months | 36 months | 48 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Outstanding | |||
Beginning of period (in shares) | 157,937 | ||
Granted (in shares) | 62,520 | 81,230 | 135,350 |
Vested (in shares) | (85,279) | ||
Forfeited (in shares) | (7,755) | ||
Ending of period (in shares) | 127,423 | 157,937 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 28.96 | ||
Granted (in dollars per share) | 41.04 | $ 32.36 | $ 28.97 |
Vested (in dollars per share) | 27.94 | ||
Forfeited (in dollars per share) | 30.80 | ||
Outstanding at ending of period (in dollars per share) | $ 36.22 | $ 28.96 | |
Performance Stock Units | |||
Outstanding | |||
Beginning of period (in shares) | 236,700 | ||
Granted (in shares) | 58,178 | 64,700 | 126,000 |
Vested (in shares) | (85,504) | ||
Forfeited (in shares) | (11,800) | ||
Ending of period (in shares) | 197,574 | 236,700 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at beginning of period (in dollars per share) | $ 26.21 | ||
Granted (in dollars per share) | 43.80 | $ 35.16 | $ 26.31 |
Vested (in dollars per share) | 19.05 | ||
Forfeited (in dollars per share) | 33.21 | ||
Outstanding at ending of period (in dollars per share) | $ 33.98 | $ 26.21 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)CompensationPlan | Dec. 31, 2018USD ($)CompensationPlan | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of unfunded supplemental retirement plans | CompensationPlan | 3 | ||
Accumulated benefit obligations | $ 400,000 | $ 600,000 | |
Number of company sponsored 401(K) defined contribution plans | CompensationPlan | 1 | ||
Provision for matching and profit sharing contribution | $ 2,700,000 | 2,600,000 | $ 2,700,000 |
Estimated net actuarial loss for the defined benefit pension plan | 900,000 | ||
Excess of accumulated benefit obligation over fair value of plan assets | 10,600,000 | ||
Pension liability | 8,100,000 | $ 7,200,000 | |
Estimated employer Contribution to pension plan in next fiscal year | $ 900,000 | ||
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% | ||
Executives and Directors | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of unfunded supplemental retirement plans | CompensationPlan | 2 | 2 | |
Deferred Compensation Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liability for labarge deferred compensation plan | $ 0 | $ 700,000 | |
Interest on labarge deferred compensation plan | $ 100,000 | $ 100,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Pension Cost for Defined Benefit Pension Plan and Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 503 | $ 601 | $ 531 |
Interest cost | 1,388 | 1,268 | 1,329 |
Expected return on plan assets | (1,644) | (1,784) | (1,530) |
Amortization of actuarial losses | 885 | 743 | 810 |
Net periodic pension cost | $ 1,132 | $ 828 | $ 1,140 |
Employee Benefit Plans - Reclas
Employee Benefit Plans - Reclassifications from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Amortization of actuarial loss - total before tax | $ 885 | ||
Tax benefit | (209) | $ (173) | $ (302) |
Net of tax | $ 676 | $ 570 | $ 508 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 33,951 | $ 36,002 | |
Service cost | 503 | 601 | $ 531 |
Interest cost | 1,388 | 1,268 | 1,329 |
Actuarial (gain) loss | 4,769 | (2,415) | |
Benefits paid | (1,526) | (1,505) | |
Ending benefit obligation | 39,085 | 33,951 | 36,002 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 23,749 | 25,646 | |
Return on assets | 4,347 | (1,951) | |
Employer contribution | 1,873 | 1,559 | |
Benefits paid | (1,526) | (1,505) | |
Fair value of plan assets at end of year | 28,443 | 23,749 | 25,646 |
Funded status (underfunded) | (10,642) | (10,202) | |
Amounts recognized in the consolidated balance sheet | |||
Current liabilities | 0 | 580 | |
Non-current liabilities | 10,642 | 9,622 | |
Unrecognized loss included in accumulated other comprehensive loss | |||
Unrecognized loss before tax, beginning balance | 9,485 | 8,908 | |
Amortization | (885) | (743) | |
Liability (gain) loss | 4,769 | (2,415) | |
Asset loss (gain) | (2,709) | 3,735 | |
Unrecognized loss before tax, ending balance | 10,660 | 9,485 | $ 8,908 |
Tax impact | (2,544) | (2,263) | |
Unrecognized loss included in accumulated other comprehensive loss, net of tax | $ 8,116 | $ 7,222 |
Employee Benefit Plans - Pensio
Employee Benefit Plans - Pension Plan Asset Allocations (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 69.00% | 57.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 1.00% | 1.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan Assets | 30.00% | 42.00% |
Employee Benefit Plans - Asset
Employee Benefit Plans - Asset Allocation Ranges (Details) | Dec. 31, 2019 |
Minimum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 0.00% |
Minimum | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 15.00% |
Minimum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 30.00% |
Maximum | Cash | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 10.00% |
Maximum | Fixed income securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 75.00% |
Maximum | Equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Asset allocation percentage | 80.00% |
Employee Benefit Plans - Return
Employee Benefit Plans - Return on Current and Target Asset Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | $ 28,443 | $ 23,749 |
Total plan assets at fair value | 7,676 | 6,126 |
Pooled funds | 20,767 | 17,623 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 232 | 153 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 3,247 | 3,647 |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 2,645 | 1,475 |
Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,552 | 851 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 7,676 | 6,126 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 232 | 153 |
Level 1 | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 3,247 | 3,647 |
Level 1 | Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 2,645 | 1,475 |
Level 1 | Other Investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plan assets | 1,552 | 851 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total plan assets at fair value | 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 | Equities | ||
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 plan assets at fair value | 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 | Equities | ||
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 (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | |||
Discount rate used to determine pension expense : | |||
Discount rate | 3.22% | 3.64% | 4.18% |
Discount rate used to determine value of obligations | |||
Discount rate | 4.23% | 4.23% | 3.64% |
Long term rate of return | 7.00% | 7.00% | 7.00% |
Retirement Plan | |||
Discount rate used to determine pension expense : | |||
Discount rate | 2.85% | 3.40% | 3.75% |
Discount rate used to determine value of obligations | |||
Discount rate | 4.00% | 4.00% | 3.40% |
Employee Benefit Plans - Future
Employee Benefit Plans - Future Benefit Payments Under Pension Plans (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | $ 1,252 |
2021 | 1,339 |
2022 | 1,452 |
2023 | 1,495 |
2024 | 1,607 |
2025 - 2029 | 9,002 |
Retirement Plan | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 589 |
2021 | 569 |
2022 | 545 |
2023 | 517 |
2024 | 486 |
2025 - 2029 | $ 2,012 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense | |||||||||||
Federal | $ 5,802 | $ 474 | $ 2,387 | ||||||||
State | 1,067 | 1,260 | 525 | ||||||||
Current tax expense | 6,869 | 1,734 | 2,912 | ||||||||
Deferred tax (benefit) expense | |||||||||||
Federal | (650) | (789) | (15,515) | ||||||||
State | (917) | 291 | 135 | ||||||||
Deferred tax (benefit) expense | (1,567) | (498) | (15,380) | ||||||||
Income tax expense (benefit) | $ 977 | $ 1,937 | $ 1,363 | $ 1,025 | $ 1,118 | $ 119 | $ 242 | $ (243) | $ 5,302 | $ 1,236 | $ (12,468) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tax Credit Carryforward [Line Items] | ||||
Tax Cuts and Jobs Act of 2017, tax benefit | $ 13,000 | |||
Excess tax benefit over compensation cost recognized, amount | $ 800 | $ 200 | 600 | |
Operating loss carryforward not expected to be realized under ASC subtopic 740-10 | 16,900 | |||
Tax credit carryforwards | 84 | 288 | ||
Tax credit carryforwards valuation allowance | 9,375 | 9,083 | ||
Unrecognized tax benefits | 5,663 | $ 5,283 | $ 5,271 | $ 3,036 |
Unrecognized tax benefits that would impact effective tax rate | 4,000 | |||
Decrease in unrecognized tax benefits is reasonably possible | 2,000 | |||
Federal | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 22,500 | |||
Tax credit carryforwards | 100 | |||
State | ||||
Tax Credit Carryforward [Line Items] | ||||
Net operating loss carryforwards | 26,500 | |||
Tax credit carryforwards | 12,800 | |||
Tax credit carryforwards valuation allowance | $ 10,700 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Accrued expenses | $ 776 | $ 704 |
Allowance for doubtful accounts | 314 | 267 |
Contract overrun reserves | 1,004 | 1,263 |
Deferred compensation | 94 | 302 |
Employment-related accruals | 5,049 | 4,252 |
Environmental reserves | 494 | 479 |
Federal tax credit carryforwards | 84 | 288 |
Inventory reserves | 2,334 | 1,757 |
Pension obligation | 2,552 | 2,324 |
Federal and state net operating loss carryforwards | 6,251 | 51 |
State tax credit carryforwards | 8,900 | 9,075 |
Stock-based compensation | 1,672 | 1,661 |
Workers’ compensation | 43 | 51 |
Other | 1,409 | 1,538 |
Total gross deferred tax assets | 30,976 | 24,012 |
Valuation allowance | (9,375) | (9,083) |
Total gross deferred tax assets, net of valuation allowance | 21,601 | 14,929 |
Deferred tax liabilities: | ||
Deferred revenue | (256) | (649) |
Depreciation | (8,852) | (7,951) |
Goodwill | (4,109) | (3,963) |
Intangibles | (24,749) | (19,905) |
Prepaid insurance | (346) | (223) |
Total gross deferred tax liabilities | (38,312) | (32,691) |
Net deferred tax liabilities | $ (16,711) | $ (17,762) |
Income Taxes - Variation Betwee
Income Taxes - Variation Between Expected and Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes (net of federal benefit) | 3.60% | 5.30% | 2.50% |
Foreign derived intangible income deduction | (0.012) | 0 | 0 |
Qualified domestic production activities | (0.00%) | (0.00%) | (2.60%) |
Stock-based compensation expense | (2.10%) | (1.90%) | (8.20%) |
Research and development tax credits | (7.80%) | (32.00%) | (50.60%) |
Other tax credits | (0.00%) | (1.20%) | (7.50%) |
Changes in valuation allowance | (1.60%) | 0.70% | 10.60% |
Non-deductible book expenses | 3.90% | 8.20% | 1.10% |
Changes in deferred tax assets | (2.20%) | 12.10% | 15.40% |
Re-measurement of deferred taxes for 2017 Tax Act | 0 | 0 | (1.713) |
Changes in tax reserves | 1.20% | 1.20% | 11.40% |
Other | (0.80%) | (1.40%) | 0.40% |
Effective income tax (benefit) rate | 14.00% | 12.00% | (163.80%) |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes in Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 5,283 | $ 5,271 | $ 3,036 |
Additions for tax positions related to the current year | 408 | 419 | 422 |
Additions for tax positions related to prior years | 0 | 92 | 1,953 |
Reductions for tax positions related to prior years | (28) | (499) | (99) |
Reductions for lapse of statute of limitations | 0 | 0 | (41) |
Ending Balance | $ 5,663 | $ 5,283 | $ 5,271 |
- Narrative (Details)
- Narrative (Details) - Ducommun AeroStructures $ in Millions | Dec. 31, 2019USD ($) |
El Mirage and Monrovia, California | |
Loss Contingencies [Line Items] | |
Reserve for estimated liability | $ 1.5 |
Casmalia and West Covina, California | |
Loss Contingencies [Line Items] | |
Reserve for estimated liability | 0.4 |
Casmalia and West Covina, California | Minimum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | 0.4 |
Casmalia and West Covina, California | Maximum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 3.1 |
Major Customers and Concentra_3
Major Customers and Concentrations of Credit Risk - Sales to Major Customers (Details) - Customer Concentration Risk - Revenue from Contract with Customer Benchmark | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Boeing | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 16.60% | 17.00% | 16.30% |
Lockheed Martin | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 4.00% | 4.40% | 5.50% |
Raytheon | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 11.00% | 11.70% | 13.50% |
Spirit | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 12.20% | 9.50% | 8.20% |
Top Ten Customers | |||
Revenue, Major Customer [Line Items] | |||
Concentration percentage | 63.50% | 62.90% | 62.50% |
Major Customers and Concentra_4
Major Customers and Concentrations of Credit Risk - Receivables from Customers (Details) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Boeing | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 5.90% | 8.00% |
Lockheed Martin | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 0.80% | 2.50% |
Raytheon | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 3.30% | 3.20% |
Spirit | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 2.00% | 0.00% |
Major Customers and Concentra_5
Major Customers and Concentrations of Credit Risk - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 186,926 | $ 181,101 | $ 180,495 | $ 172,566 | $ 164,183 | $ 159,842 | $ 154,827 | $ 150,455 | $ 721,088 | $ 629,307 | $ 558,183 |
Non-Us | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Revenues | $ 81,600 | $ 71,900 | $ 57,200 | ||||||||
Maximum | Non-Us | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of sales | 4.00% | 3.00% | 3.00% |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Thousands | Oct. 08, 2019USD ($) | Apr. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018 |
Segment Reporting [Abstract] | |||||||
Number of reportable segments | Segment | 2 | ||||||
Segment Reporting Information [Line Items] | |||||||
Purchase price, net of cash acquired | $ 0 | $ 0 | $ 59,798 | ||||
Nobles Worldwide, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity interest acquired | 100.00% | 100.00% | |||||
Purchase price, net of cash acquired | $ 77,000 | ||||||
Gross purchase price | $ 77,305 | ||||||
Certified Thermoplastics Co., LLC | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity interest acquired | 100.00% | 100.00% | |||||
Purchase price, net of cash acquired | $ 30,700 | ||||||
Gross purchase price | $ 30,800 | ||||||
Lightning Diversion Systems, Inc. | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity interest acquired | 100.00% | ||||||
Purchase price, net of cash acquired | $ 60,000 | ||||||
Gross purchase price | $ 62,000 |
Business Segment Information _2
Business Segment Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | $ 186,926 | $ 181,101 | $ 180,495 | $ 172,566 | $ 164,183 | $ 159,842 | $ 154,827 | $ 150,455 | $ 721,088 | $ 629,307 | $ 558,183 |
Operating Income | 56,233 | 23,918 | 15,634 | ||||||||
Depreciation and amortization | 28,305 | 25,296 | 22,845 | ||||||||
Capital Expenditures | 18,846 | 16,337 | 26,473 | ||||||||
Electronic Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 360,373 | 337,868 | |||||||||
Structural Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 360,715 | 291,439 | |||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 85,449 | 49,979 | 37,026 | ||||||||
Operating Segments | Electronic Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 360,373 | 337,868 | 316,723 | ||||||||
Operating Income | 38,613 | 30,916 | 31,236 | ||||||||
Depreciation and amortization | 14,170 | 14,223 | 13,888 | ||||||||
Capital Expenditures | 5,508 | 6,719 | 5,019 | ||||||||
Operating Segments | Structural Systems | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Revenues | 360,715 | 291,439 | 241,460 | ||||||||
Operating Income | 46,836 | 19,063 | 5,790 | ||||||||
Depreciation and amortization | 13,663 | 10,525 | 8,860 | ||||||||
Capital Expenditures | 13,338 | 9,104 | 20,679 | ||||||||
Corporate Administration | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate General and Administrative Expenses | (29,216) | (26,061) | (21,392) | ||||||||
Depreciation and amortization | 472 | 548 | 97 | ||||||||
Capital Expenditures | $ 0 | $ 514 | $ 775 |
Business Segment Information _3
Business Segment Information - Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 790,429 | $ 644,739 |
Goodwill and Intangibles | 309,279 | 248,149 |
Operating Segments | Electronic Systems | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 411,981 | 405,743 |
Goodwill and Intangibles | 210,453 | 219,872 |
Operating Segments | Structural Systems | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 328,718 | 220,993 |
Goodwill and Intangibles | 98,826 | 28,277 |
Corporate Administration | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 49,730 | $ 18,003 |
Supplemental Quarterly Financ_3
Supplemental Quarterly Financial Data (Unaudited) - (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Revenues | $ 186,926 | $ 181,101 | $ 180,495 | $ 172,566 | $ 164,183 | $ 159,842 | $ 154,827 | $ 150,455 | $ 721,088 | $ 629,307 | $ 558,183 |
Gross Profit | 40,111 | 38,327 | 38,065 | 35,694 | 32,697 | 31,116 | 32,028 | 26,755 | 152,197 | 122,596 | 103,133 |
Income Before Taxes | 9,848 | 10,240 | 9,178 | 8,497 | 1,791 | 4,290 | 1,833 | 2,357 | 37,763 | 10,271 | 7,609 |
Income Tax Expense (Benefit) | 977 | 1,937 | 1,363 | 1,025 | 1,118 | 119 | 242 | (243) | 5,302 | 1,236 | (12,468) |
Net Income | $ 8,871 | $ 8,303 | $ 7,815 | $ 7,472 | $ 673 | $ 4,171 | $ 1,591 | $ 2,600 | $ 32,461 | $ 9,035 | $ 20,077 |
Earnings Per Share | |||||||||||
Basic earnings (loss) per share (in dollars per share) | $ 0.77 | $ 0.72 | $ 0.68 | $ 0.65 | $ 0.06 | $ 0.37 | $ 0.14 | $ 0.23 | $ 2.82 | $ 0.79 | $ 1.78 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.75 | $ 0.70 | $ 0.66 | $ 0.64 | $ 0.06 | $ 0.36 | $ 0.14 | $ 0.22 | $ 2.75 | $ 0.77 | $ 1.74 |
Supplemental Quarterly Financ_4
Supplemental Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 08, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | |||||||||
Restructuring charges | $ 3,800 | $ 3,400 | $ 5,400 | $ 2,200 | $ 0 | $ 14,671 | $ 8,360 | ||
Nobles Worldwide, Inc. | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Equity interest acquired | 100.00% | 100.00% | |||||||
Certified Thermoplastics Co., LLC | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Equity interest acquired | 100.00% | 100.00% |
Consolidated Valuation and Qu_2
Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,135 | $ 868 | $ 495 |
Additions Charged to Costs and Expenses | 219 | 776 | 334 |
Deductions | 33 | 509 | |
Recoveries | (39) | ||
Other | 0 | 0 | 0 |
Balance at End of Period | 1,321 | 1,135 | 868 |
Valuation Allowance of Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 9,083 | 9,013 | 6,607 |
Additions Charged to Costs and Expenses | (593) | 70 | 2,406 |
Deductions | 0 | 0 | 0 |
Other | 885 | 0 | 0 |
Balance at End of Period | $ 9,375 | $ 9,083 | $ 9,013 |
Uncategorized Items - dco-20191
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 8,665,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (264,000) |