Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-01520 | ||
Entity Registrant Name | Aerojet Rocketdyne Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-0244000 | ||
Entity Address, Address Line One | 222 N. Pacific Coast Highway | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | El Segundo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90245 | ||
City Area Code | (310) | ||
Local Phone Number | 252-8100 | ||
Title of 12(b) Security | Common stock, $0.10 par value | ||
Trading Symbol | AJRD | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Shares Outstanding | 78,709,885 | ||
Documents Incorporated by Reference | Portions of the 2020 Proxy Statement of Aerojet Rocketdyne Holdings, Inc. relating to its annual meeting of stockholders scheduled to be held on May 6, 2020, are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000040888 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,981.5 | $ 1,895.9 | $ 1,877.2 |
Operating costs and expenses: | |||
Cost of sales (exclusive of items shown separately below) | 1,613.6 | 1,549.4 | 1,562.2 |
Selling, general and administrative expense | 53.6 | 43.8 | 47 |
Depreciation and amortization | 74.5 | 72.3 | 72.6 |
Other expense (income), net: | |||
Environmental remediation provision adjustments | 2.1 | (36.9) | 8.2 |
Other | (0.5) | (3.3) | (0.3) |
Total operating costs and expenses | 1,743.3 | 1,625.3 | 1,689.7 |
Operating income | 238.2 | 270.6 | 187.5 |
Non-operating: | |||
Retirement benefits expense | 26.1 | 57.6 | 73.2 |
Interest income | (15.5) | (10) | (3.5) |
Interest expense | 35.7 | 34.4 | 30.9 |
Total non-operating expense, net | 46.3 | 82 | 100.6 |
Income before income taxes | 191.9 | 188.6 | 86.9 |
Income tax provision | 50.9 | 51.3 | 96.1 |
Net income (loss) | $ 141 | $ 137.3 | $ (9.2) |
Basic: | |||
Basic earnings (loss) per share (in USD per share) | $ 1.79 | $ 1.80 | $ (0.13) |
Diluted: | |||
Diluted earnings (loss) per share (in USD per share) | $ 1.69 | $ 1.75 | $ (0.13) |
Weighted average shares of common stock outstanding, basic (in shares) | 77.2 | 74.8 | 73 |
Weighted average shares of common stock outstanding, diluted (in shares) | 81.7 | 76.8 | 73 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 141 | $ 137.3 | $ (9.2) |
Other comprehensive income: | |||
Amortization of net actuarial losses, net of $7.6 million, $16.8 million, and $24.5 million of income taxes in 2019, 2018, and 2017, respectively | 29.5 | 49.7 | 39 |
Actuarial losses, net of $6.9 million, $5.5 million, and $2.9 million of income taxes in 2019, 2018, and 2017, respectively | (26.5) | (16.4) | (8.5) |
Amortization of prior service credits, net of $0.0 million, $0.0 million, and $0.0 million of income taxes in 2019, 2018, and 2017, respectively | (0.1) | (0.1) | (0.1) |
Other comprehensive income, net of income taxes | 2.9 | 33.2 | 30.4 |
Comprehensive income | $ 143.9 | $ 170.5 | $ 21.2 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Income taxes netted with amortization of net actuarial losses | $ 7.6 | $ 16.8 | $ 16.8 |
Income taxes netted from actuarial (losses) gains | 6.9 | 5.5 | 2.9 |
Income taxes netted from amortization of prior service credits | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 932.6 | $ 735.3 |
Restricted cash | 3 | 5 |
Accounts receivable, net | 112.5 | 141.2 |
Contract assets | 224.1 | 235.1 |
Other current assets, net | 145.8 | 117.7 |
Total Current Assets | 1,418 | 1,234.3 |
Noncurrent Assets | ||
Right-of-use assets | 48 | |
Property, plant and equipment, net | 409.9 | |
Property, plant and equipment, net | 399.7 | |
Recoverable environmental remediation costs | 234.8 | 251.1 |
Deferred income taxes | 121.9 | 116.9 |
Goodwill | 161.4 | 161.3 |
Intangible assets | 58.2 | 71.8 |
Other noncurrent assets, net | 255.6 | 255 |
Total Noncurrent Assets | 1,289.8 | 1,255.8 |
Total Assets | 2,707.8 | 2,490.1 |
Current Liabilities | ||
Current portion of long-term debt | 284.7 | 273.1 |
Accounts payable | 127.3 | 88.7 |
Reserves for environmental remediation costs | 40.1 | 39.8 |
Contract liabilities | 262.3 | 272.6 |
Other current liabilities | 155.5 | 204.1 |
Total Current Liabilities | 869.9 | 878.3 |
Noncurrent Liabilities | ||
Long-term debt | 352.3 | 352.3 |
Reserves for environmental remediation costs | 269.1 | 288.1 |
Pension benefits | 398.9 | 376.7 |
Operating lease liabilities | 39.1 | |
Other noncurrent liabilities | 201.8 | 173.4 |
Total Noncurrent Liabilities | 1,261.2 | 1,190.5 |
Total Liabilities | 2,131.1 | 2,068.8 |
Commitments and contingencies (Note 9) | ||
Stockholders’ Equity | ||
Preferred stock, par value of $1.00; 15.0 million shares authorized; none issued or outstanding | 0 | 0 |
Common stock, par value of $0.10; 150.0 million shares authorized; 77.3 million shares issued and outstanding as of December 31, 2019; 76.8 million shares issued and outstanding as of December 31, 2018 | 7.7 | 7.7 |
Other capital | 573.3 | 561.8 |
Treasury stock at cost, 0.8 million shares as of December 31, 2019 and 2018 | (12.7) | (12.7) |
Retained earnings | 244.9 | 103.9 |
Accumulated other comprehensive loss, net of income taxes | (236.5) | (239.4) |
Total Stockholders’ Equity | 576.7 | 421.3 |
Total Liabilities and Stockholders’ Equity | $ 2,707.8 | $ 2,490.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, share authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 77,300,000 | 76,800,000 |
Common stock, shares outstanding (in shares) | 77,300,000 | 76,800,000 |
Treasury stock, shares (in shares) | 800,000 | 800,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Other Capital | Treasury Stock | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2016 | 69.2 | |||||
Beginning balance at Dec. 31, 2016 | $ 34.5 | $ 6.9 | $ 456.9 | $ (64.5) | $ (61.8) | $ (303) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (9.2) | (9.2) | ||||
Other comprehensive income, net of income taxes | 30.4 | 30.4 | ||||
Reclassification of redeemable common stock (in shares) | 0.1 | |||||
Reclassification of redeemable common stock | 0.9 | 0.9 | ||||
Conversion of debt to common stock (in shares) | 3.9 | |||||
Conversion of debt to common stock | 35.6 | $ 0.4 | 35.2 | |||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (6.2) | (6.2) | ||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 0.4 | |||||
Stock-based compensation and shares issued under equity plans, net | 16.1 | $ 0.1 | 16 | |||
Ending balance, (in shares) at Dec. 31, 2017 | 73.6 | |||||
Ending balance at Dec. 31, 2017 | 102.4 | $ 7.4 | 503.1 | (64.5) | (71) | (272.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 137.3 | 137.3 | ||||
Other comprehensive income, net of income taxes | 33.2 | 33.2 | ||||
Contribution of treasury stock to retirement benefit plan (in shares) | 2.7 | |||||
Contribution of treasury stock to retirement benefit plan | 95 | $ 0.3 | 42.9 | 51.8 | ||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (3.3) | (3.3) | ||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 0.5 | |||||
Stock-based compensation and shares issued under equity plans, net | 19.1 | 19.1 | ||||
Ending balance, (in shares) at Dec. 31, 2018 | 76.8 | |||||
Ending balance at Dec. 31, 2018 | 421.3 | $ 7.7 | 561.8 | (12.7) | 103.9 | (239.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 141 | 141 | ||||
Other comprehensive income, net of income taxes | 2.9 | |||||
Repurchase of shares for option cost and to satisfy tax withholding obligations (in shares) | (0.3) | |||||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (8.5) | (8.5) | ||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 0.8 | |||||
Stock-based compensation and shares issued under equity plans, net | 20 | 20 | ||||
Ending balance, (in shares) at Dec. 31, 2019 | 77.3 | |||||
Ending balance at Dec. 31, 2019 | $ 576.7 | $ 7.7 | $ 573.3 | $ (12.7) | $ 244.9 | $ (236.5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income (loss) | $ 141 | $ 137.3 | $ (9.2) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 74.5 | 72.3 | 72.6 |
Amortization of debt discount and deferred financing costs | 9.4 | 8.9 | 8.5 |
Stock-based compensation | 27.3 | 20.5 | 22 |
Retirement benefits, net | 21.6 | 15.9 | (8.2) |
Other, net | (0.6) | (2.2) | 0.7 |
Changes in assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable, net | 28.8 | (47.3) | 5.6 |
Contract assets | 11 | 10.5 | (20.5) |
Other current assets, net | (27.9) | 21.5 | 8.9 |
Recoverable for environmental remediation costs | 16.3 | (20) | 8.7 |
Other noncurrent assets | (6.3) | 5.8 | (31.4) |
Accounts payable | 20.3 | (39.4) | 1.6 |
Contract liabilities | (10.3) | 29.2 | 30.7 |
Other current liabilities | (72.5) | 40.9 | (6.5) |
Deferred income taxes | (5.7) | 4.7 | 125.7 |
Reserves for environmental remediation costs | (18.7) | (13.5) | (8.3) |
Other noncurrent liabilities and other | 53 | 7.6 | 11.9 |
Net Cash Provided by Operating Activities | 261.2 | 252.7 | 212.8 |
Investing Activities | |||
Capital expenditures | (42.9) | (43.2) | (29.4) |
Purchases of marketable securities | 0 | (47.7) | (24) |
Sale of marketable securities | 0 | 68.1 | 4 |
Purchase of Coleman Aerospace | 0 | 0 | (17) |
Other | 1.1 | 1.9 | 0 |
Net Cash Used in Investing Activities | (41.8) | (20.9) | (66.4) |
Financing Activities | |||
Debt issuance costs | 0 | (3.3) | 0 |
Debt principal payments | (20.8) | (25.3) | (20) |
Proceeds from shares issued under equity plans | 5.2 | 5.4 | 4.5 |
Repurchase of shares for withholding taxes and option costs under employee equity plans | (8.5) | (3.3) | (6.2) |
Net Cash Used in Financing Activities | (24.1) | (26.5) | (21.7) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 195.3 | 205.3 | 124.7 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 740.3 | 535 | 410.3 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 935.6 | 740.3 | 535 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 26.3 | 25.3 | 22.2 |
Cash paid for income taxes | 63.8 | 24 | 3 |
Cash refund for income taxes | 2 | 5.2 | 22.9 |
Conversion of debt to common stock | 0 | 0 | 35.6 |
Contribution of treasury stock to retirement benefit plans | $ 0 | $ 95 | $ 0 |
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 a. Basis of Presentation and Nature of Operations The consolidated financial statements of Aerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") include the accounts of the Company and its 100% owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to financial information for prior years to conform to the current year’s presentation. The Company’s operations are organized into two segments: Aerospace and Defense — includes the operations of the Company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. ("Aerojet Rocketdyne"), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States ("U.S.") government, including the Department of Defense ("DoD"), the National Aeronautics and Space Administration ("NASA"), and major aerospace and defense prime contractors. Real Estate — includes the activities of the Company’s wholly-owned subsidiary Easton Development Company, LLC ("Easton") related to the re-zoning, entitlement, sale, and leasing of the Company’s excess real estate assets. The year of the Company's subsidiary, Aerojet Rocketdyne, ends on the last Saturday in December. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. b. Cash and Cash Equivalents All highly liquid debt instruments purchased with a remaining maturity at the date of purchase of three months or less are considered to be cash equivalents. The Company aggregates its cash balances by bank, and reclassifies any negative balances, if applicable, to other current liabilities. c. Restricted Cash As of December 31, 2019 and 2018, the Company designated $3.0 million and $5.0 million as restricted cash to satisfy indemnification obligations for environmental remediation coverage. d. Fair Value of Financial Instruments Financial instruments are classified using a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Fair value measurement as of December 31, 2019 Total Quoted Prices in (In millions) Money market funds $ 626.0 $ 626.0 $ — $ — Registered investment companies 3.7 3.7 — — Commercial paper 99.9 99.9 — Total $ 729.6 $ 629.7 $ 99.9 $ — Fair value measurement as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) Money market funds $ 186.3 $ 186.3 $ — $ — Commercial paper 154.7 — 154.7 — Total $ 341.0 $ 186.3 $ 154.7 $ — The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities. The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: Fair Value Principal Amount As of December 31, As of December 31, 2019 2018 2019 2018 (In millions) Term loan $ 328.1 $ 345.6 $ 328.1 $ 345.6 2.25% Convertible Senior Notes ("2¼% Notes") 546.0 441.1 300.0 300.0 $ 874.1 $ 786.7 $ 628.1 $ 645.6 The fair value of the 2¼% Notes was determined using broker quotes that are based on open markets for the Company’s debt securities (Level 2 securities). The term loan bore interest at variable rates, which adjusted based on market conditions, and its carrying value approximates fair value. e. Accounts Receivable, net Accounts Receivable represent the Company's unconditional right to consideration under the contract and include amounts billed and currently due from long-term contract customers. The amounts are stated at their net estimated realizable value. Other receivables represent amounts billed for revenue not derived from long-term contracts. f. Inventories Inventories are stated at cost (generally using the average cost method) or net realizable value. The Company capitalizes costs incurred in advance of contract award or funding in inventories if it determines that contract award or funding is probable. Amounts previously capitalized are expensed when changes in facts and circumstances indicate that a contract award or funding is no longer probable. General and administrative costs incurred throughout 2019 and 2018 totaled $273.9 million and $248.8 million , respectively, and the cumulative amount of general and administrative costs in long-term contract inventories were estimated to be $3.8 million and $2.7 million as of December 31, 2019 and 2018 , respectively. Inventories are included as a component of other current assets. g. Income Taxes The Company files a consolidated U.S. federal income tax return with its 100% owned consolidated subsidiaries. The deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the period of the enactment date of the change. The carrying value of the Company’s deferred tax assets is dependent upon its ability to generate sufficient taxable income in the future. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. A review of all available positive and negative evidence is considered, including the Company’s past and future performance, the market environment in which it operates, the utilization of tax attributes in the past, the length of carryback and carryforward periods, and evaluation of potential tax planning strategies. h. Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Refurbishment costs that extend the life or increase the value of an asset are capitalized in the property accounts, whereas ordinary maintenance and repair costs are expensed as incurred. Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years Costs related to software acquired, developed or modified solely to meet the Company's internal requirements (including cloud computing arrangements) and for which there are no substantive plans to market for sale are capitalized and depreciated over 3 to 7 years. Only costs incurred after the preliminary planning stage of the project and after management has authorized and committed funds to the project are eligible for capitalization. i. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities. Finance leases are included in property, plant and equipment and debt. Operating ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense related to finance leases is included in depreciation and amortization expense. For certain technology equipment leases, the Company accounts for lease and nonlease (service) components separately based on a relative fair market value basis. For all other leases, the Company accounts for the lease and nonlease components (e.g., common area maintenance) on a combined basis. The discount rate used for leases is the Company's incremental borrowing rate for collateralized debt based on information available at the lease commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Leases with a term of twelve months or less and that do not include a purchase option that is likely to be exercised are treated as short-term leases and are not reflected on the balance sheet. The Company leases certain facilities, machinery and equipment (including information technology equipment), and office buildings under long-term, non-cancelable operating and finance leases. j. Real Estate Held for Entitlement and Leasing The Company capitalizes all costs associated with the real estate entitlement and leasing process. The Company classifies activities related to the entitlement, sale, and leasing of its excess real estate assets as operating activities in the consolidated statements of cash flows. Real estate held for entitlement and leasing is included as a component of other noncurrent assets. k. Goodwill Goodwill represents the excess of the purchase price of an acquired enterprise or assets over the fair values of the identifiable assets acquired and liabilities assumed. All of the Company's recorded goodwill resides in the Aerospace and Defense reporting unit. Tests for impairment of goodwill are performed on an annual basis, or at any other time if events occur or circumstances indicate that the carrying amount of goodwill may not be recoverable. Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; adverse cash flow trends; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; decline in stock price; and results of testing for recoverability of a significant asset group within a reporting unit. The Company evaluates qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is necessary to perform the first step of the goodwill test. This step is referred to as the "Step Zero" analysis. If it is determined that it is more likely than not (a likelihood of more than 50% ) that the fair value of a reporting unit is less than its carrying amount, the Company will proceed to the quantitative ("Step One") analysis to determine the existence and amount of any goodwill impairment. The Company may also perform a Step One analysis from time to time to augment its qualitative assessment. The Company evaluated goodwill using a Step Zero analysis as of October 1, 2019, and determined that goodwill was not impaired. The Company evaluated goodwill using a Step One analysis as of October 1, 2018, and determined that goodwill was not impaired. There can be no assurance that the Company’s estimates and assumptions made for purposes of its goodwill impairment testing will prove to be accurate predictions of the future. If the Company’s assumptions and estimates are incorrect, the Company may be required to record goodwill impairment charges in future periods. l. Intangible Assets Identifiable intangible assets, such as patents, trademarks, and licenses are recorded at cost or when acquired as part of a business combination at estimated fair value. Identifiable intangible assets are amortized based on when they provide the Company economic benefit, or using the straight-line method, over their estimated useful life. Amortization periods for identifiable intangible assets range from 7 years to 30 years . m. Environmental Remediation The Company expenses, on a current basis, recurring costs associated with managing hazardous substances and contamination in ongoing operations. The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a fifteen-year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the Baldwin Park Operable Unit ("BPOU") site are currently estimated through the term of the project agreement, which expires in May 2027. In establishing reserves, the most probable estimated amount is used when determinable, and the minimum amount is used when no single amount in the range is more probable. Environmental reserves include the costs of completing remedial investigation and feasibility studies, remedial and corrective actions, regulatory oversight costs, the cost of operation and maintenance of the remedial action plan, and employee compensation costs for employees who are expected to devote a significant amount of time to remediation efforts. Calculation of environmental reserves is based on the evaluation of currently available information with respect to each individual environmental site and considers factors such as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. Such estimates are based on the expected costs of investigation and remediation and the likelihood that other potentially responsible parties will be able to fulfill their commitments at sites where the Company may be jointly or severally liable. At the time a liability is recorded for future environmental costs, the Company records an asset for estimated future recoveries that are estimable and probable. Some of the Company’s environmental costs are eligible for future recovery in the pricing of its products and services to the U.S. government and under existing third party agreements. The Company considers the recovery probable based on the Global Settlement, U.S. government contracting regulations, and its long history of receiving reimbursement for such costs (see Notes 9(b) and 9(c)). n. Retirement Benefits The Company discontinued future benefit accruals for the defined benefit pension plans in 2009. The Company provides medical and life insurance benefits ("postretirement benefits") to certain eligible retired employees, with varied coverage by employee group. Annual charges are made for the cost of the plans, including interest costs on benefit obligations, and net amortization and deferrals, increased or reduced by the return on assets. The Company also sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees (see Note 8). o. Conditional Asset Retirement Obligations Conditional asset retirement obligations ("CAROs") are legal obligations associated with the retirement of long-lived assets. These liabilities are initially recorded at fair value and the expected asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, the Company records period-to-period changes in the CARO liability resulting from the passage of time and revisions to either the timing or the amount of the estimate of the undiscounted cash flows. CAROs associated with owned properties are based on estimated costs necessary for the legally required removal or remediation of various regulated materials, primarily asbestos disposal and radiological decontamination of an ordnance manufacturing facility. For leased properties, CAROs are based on the estimated cost of contractually required property restoration. The following table summarizes the changes in the carrying amount of CAROs: Year Ended December 31, 2019 2018 2017 (In millions) Balance at beginning of year $ 46.0 $ 44.0 $ 30.6 Additions and other, net 2.6 (0.5 ) 11.2 Accretion 2.8 2.5 2.2 Balance at end of year $ 51.4 $ 46.0 $ 44.0 p. Loss Contingencies The Company is currently involved in certain legal proceedings and has accrued its estimate of the probable costs and recoveries (in relation to environmental costs) for resolution of these claims. These estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations or cash flows for any particular period could be materially affected by changes in estimates or the effectiveness of strategies related to these proceedings. q. Warranties The Company provides product warranties in conjunction with certain product sales. The majority of the Company’s warranties are a one -year standard warranty for parts, workmanship, and compliance with specifications. On occasion, the Company has made commitments beyond the standard warranty obligation. While the Company has contracts with warranty provisions, there is not a history of any significant warranty claims experience. A reserve for warranty exposure is made on a product by product basis when it is both estimable and probable. These costs are included in the program’s estimate at completion and are expensed in accordance with the Company’s revenue recognition methodology for that particular contract. r. Revenue Recognition In the Company’s Aerospace and Defense segment, the majority of revenue is earned from long-term contracts to design, develop, and manufacture aerospace and defense products for, and provide related services to, the Company’s customers, including the U.S. government and major aerospace and defense prime contractors. Each customer contract defines the Company’s distinct performance obligations and the associated transaction price for each obligation. A contract may contain one or multiple performance obligations. In certain circumstances, multiple contracts with a customer are required to be combined in determining the distinct performance obligation. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price at which the Company would sell the promised good or service separately to the customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin. Contract modifications are routine in the performance of the Company's long-term contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The Company recognizes revenue as each performance obligation is satisfied. The majority of the Company’s aerospace and defense performance obligations are satisfied over time either as the service is provided, or as control transfers to the customer. Transfer of control is evidenced by the Company’s contractual right to payment for work performed to date plus a reasonable profit on contracts with highly customized products that have no alternative use to the Company. The Company measures progress on substantially all its performance obligations using the cost-to-cost method, which the Company believes best depicts the transfer of control of goods and services to the customer. Under the cost-to-cost method, the Company records revenues based upon costs incurred to date relative to the total estimated cost at completion. Contract costs include labor, material, overhead, and general and administrative expenses, as appropriate. Recognition of revenue and profit on long-term contracts requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion for each performance obligation. Due to the nature of the programs, developing the estimated total contract value and total cost at completion for each performance obligation requires the use of significant judgment. The contract value of long-term contracts may include variable consideration, such as incentives, awards, or penalties. The value of variable consideration is generally determined by contracted performance metrics, which may include targets for cost, performance, quality, and schedule. The Company includes variable consideration in the transaction price for the respective performance obligation at either estimated value, or most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company evaluates the contract value and cost estimates for performance obligations at least quarterly and more frequently when circumstances significantly change. Factors considered in estimating the work to be completed include, but are not limited to: labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, warranty costs, volume assumptions, anticipated labor agreements, inflationary trends, schedule and performance delays, availability of funding from the customer, and the recoverability of costs incurred outside the original contract included in any estimates to complete. When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimates has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results. The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Year Ended December 31, 2019 2018 2017 (In millions, except per share amounts) Net favorable effect of the changes in contract estimates on net sales $ 38.6 $ 68.2 $ 33.7 Favorable effect of the changes in contract estimates on income before income taxes 38.4 59.1 37.2 Favorable effect of the changes in contract estimates on net income (loss) 28.2 43.1 22.3 Favorable effect of the changes in contract estimates on basic earnings (loss) per share ("EPS") of common stock 0.36 0.56 0.31 Favorable effect of the changes in contract estimates on diluted EPS 0.34 0.55 0.31 The 2019 net favorable changes in contract estimates on income before income taxes were primarily driven by improved performance and risk retirements on the Terminal High Altitude Area Defense ("THAAD") and Patriot Advanced Capability-3 ("PAC-3") programs. The 2018 net favorable changes in contract estimates on income before income taxes were primarily driven by risk retirements on the THAAD, RS-68, and RL10 programs and favorable overhead rate performance, partially offset by cost growth and performance issues on the Commercial Crew Development program. The 2017 net favorable changes in contract estimates were primarily driven by improved performance on numerous programs as a result of overhead cost reductions and reduced program risks, most notably on the THAAD program, partially offset by cost growth and manufacturing inefficiencies in electric propulsion contracts. In the Company’s Aerospace and Defense segment, the timing of revenue recognition, customer invoicing, and collections produces accounts receivable, contract assets, and contract liabilities on the Company’s Consolidated Balance Sheet. The Company invoices in accordance with contract payment terms either based upon a recurring contract payment schedule, or as contract milestones are achieved. Customer invoices, net of reserves, represent an unconditional right of consideration. When revenue is recognized in advance of customer invoicing, a contract asset is recorded. Conversely, when customers are invoiced in advance of revenue recognition, a contract liability is recorded. Unpaid customer invoices are reflected as accounts receivable. Amounts for overhead disallowances or billing decrements are reflected in contract assets and primarily represent estimates of potential overhead costs which may not be successfully negotiated and collected. The following table summarizes contract assets and liabilities: As of December 31, 2019 2018 (In millions) Contract assets $ 243.5 $ 278.0 Reserve for overhead rate disallowance (19.4 ) (42.9 ) Contract assets, net of reserve 224.1 235.1 Contract liabilities 262.3 272.6 Net contract liabilities, net of reserve $ (38.2 ) $ (37.5 ) Net contract liabilities were essentially unchanged from December 31, 2018. The decrease of $23.5 million in the reserve for overhead rate disallowance reflects an adjustment for t he final incurred costs from prior years which were subject to audit and review for allowability by the U.S. government, and $22.8 million was recorded against other net contract liability accounts. During 2019, the Company recognized sales of $240.6 million that were included in the Company’s contract liabilities as of December 31, 2018. During 2018, the Company recognized sales of $209.6 million that were included in the Company’s contract liabilities as of January 1, 2018. Contract assets included unbilled receivables of $232.4 million and $263.7 million as of December 31, 2019 and 2018 , respectively. Approximately 27% of unbilled receivables at December 31, 2019, are expected to be collected after one year. As of December 31, 2019 , the Company’s total remaining performance obligations, also referred to as backlog, totaled $5.4 billion . The Company expects to recognize approximately 36% , or $2.0 billion , of the remaining performance obligations as sales over the next twelve months, an additional 23% the following twelve months, and 41% thereafter. The Company's contracts are largely categorized as either "fixed-price" (largely used by the U.S. government for production-type contracts) or "cost-reimbursable" (largely used by the U.S. government for development-type contracts). Fixed-price contracts present the risk of unreimbursed cost overruns, potentially resulting in lower than expected contract profits and margins. This risk is generally lower for cost-reimbursable contracts which, as a result, generally have a lower margin. The following table summarizes the percentages of net sales by contract type: Year Ended December 31, 2019 2018 2017 Fixed-price 61 % 63 % 64 % Cost-reimbursable 39 37 36 Revenue from real estate asset sales is recognized when a sufficient down-payment has been received, financing has been arranged and title, possession and other attributes of ownership have been transferred to the buyer. The allocation to cost of sales on real estate asset sales is based on a relative fair market value computation of the land sold which includes the basis on the Company’s book value, capitalized entitlement costs, and an estimate of the Company’s continuing financial commitment. s. Research and Development ("R&D") Company-funded R&D expenses (reported as a component of cost of sales) were $65.1 million , $46.7 million , and $44.6 million in 2019, 2018, and 2017, respectively. Company-funded R&D expenses include the costs of technical activities that are useful in developing new products, services, processes, or techniques, as well as expenses for technical activities that may significantly improve existing products or processes. These expenses are generally allocated among all contracts and programs in progress under U.S. government contractual arrangements. From time to time, the Company believes it is in its best interests to self-fund and not allocate costs for certain R&D activities to the U.S. government contracts. Customer-funded R&D expenditures, which are funded from U.S. government contracts, totaled $680.5 million , $591.6 million , and $561.1 million in 2019, 2018, and 2017, respectively. Expenditures under customer-funded R&D U.S. government contracts are accounted for as sales and cost of sales. t. Stock-based Compensation The Company recognizes stock-based compensation in the statements of operations at the grant-date fair value of stock awards issued to employees and directors over the vesting period. The Company also grants Stock Appreciation Rights ("SARs") awards which are similar to the Company’s employee stock options, but are settled in cash rather than in shares of common stock, and are classified as liability awards. Compensation cost for these awards is determined using a fair-value method and remeasured at each reporting date until the date of settlement. The Company accounts for forfeitures when they occur for consistency with the U.S. government recovery accounting practice. u. Impairment or Disposal of Long-Lived Assets Impairment of long-lived assets is recognized when events or circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; or a current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the Company determines that an asset is not recoverable, then the Company would record an impairment charge if the carrying value of the asset exceeds its fair value. A long-lived asset classified as "held for sale" is initially measured at the lower of its carrying amount or fair value less costs to sell. In the period that the "held for sale" criteria are met, the Company recognizes an impairment charge for any initial adjustment of the long-lived asset amount. Gains or losses not previously recognized resulting from the sale of a long-lived asset are recognized on the date of sale. v. Concentrations Dependence upon U.S. Government Programs and Contracts The principal end user customers of the Company's products and technology are primarily agencies of the U.S. government. The following table summarizes the percentages of net sales by principal end user: Year Ended December 31, 2019 2018 2017 U.S. government 96 % 94 % 92 % Non U.S. government customers 4 6 8 The following table summarizes the percentages of net sales for significant programs, all of which are included in the U.S. government sales and are comprised of multiple contracts: Year Ended December 31, 2019 2018 2017 RS-25 program 17 % 14 % 14 % Standard Missile program 13 13 9 THAAD program 10 11 9 PAC-3 program 10 8 5 Major Customers The following table summarizes the customers that represented more than 10% of net sales, each of which involves sales of several product lines and programs: Year Ended December 31, 2019 2018 2017 Lockheed Martin Corporation ("Lockheed Martin") 33 % 30 % 24 % NASA 21 18 17 Raytheon Company ("Raytheon") 17 19 17 ULA 10 17 22 Credit Risk Aside from investments held in the Company’s retirement benefit plans, financial instruments that could potentially subject the Company to concentration of credit risk consist primarily of cash, ca |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the numerator and denominator used to calculate basic and diluted EPS: Year Ended December 31, 2019 2018 2017 (In millions, except per share amounts) Numerator: Net income (loss) $ 141.0 $ 137.3 $ (9.2 ) Income allocated to participating securities (2.6 ) (2.9 ) — Net income (loss) for basic and diluted EPS $ 138.4 $ 134.4 $ (9.2 ) Denominator: Basic weighted average shares 77.2 74.8 73.0 Effect of: 2 1 / 4 % Notes 4.4 1.9 — Employee stock options and stock purchase plan 0.1 0.1 — Diluted weighted average shares 81.7 76.8 73.0 Basic EPS $ 1.79 $ 1.80 $ (0.13 ) Diluted EPS $ 1.69 $ 1.75 $ (0.13 ) The Company's 2¼% Notes were not included in the computation of diluted EPS for 2017 because the average market price of the common stock did not exceed the conversion price and the Company only expects the conversion premium for the 2¼% Notes to be settled in common shares. The following table sets forth the potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive: Year Ended December 31, 2019 2018 2017 (In millions) 4 1 / 16 % Convertible Subordinated Debentures — — 0.1 Employee stock options and stock purchase plan — — 0.1 Unvested restricted shares 1.4 1.5 1.6 Total potentially dilutive securities 1.4 1.5 1.8 |
Balance Sheet Accounts and Supp
Balance Sheet Accounts and Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Accounts and Supplemental Disclosures | Balance Sheet Accounts and Supplemental Disclosures a. Marketable Securities The following table summarizes short-term available-for-sale investments as of December 31, 2019 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Commercial paper $ 99.9 $ — $ — $ 99.9 Marketable securities $ 99.9 $ — $ — $ 99.9 The following table summarizes short-term available-for-sale investments as of December 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Commercial paper $ 154.7 $ — $ — $ 154.7 Marketable securities $ 154.7 $ — $ — $ 154.7 As of December 31, 2019 and 2018, the total estimated fair value for commercial paper was classified as cash and cash equivalents as the remaining maturity at date of purchase was less than three months. b. Accounts Receivable, net As of December 31, 2019 2018 (In millions) Billed $ 122.9 $ 147.3 Reserve on billed trade receivables (10.6 ) (6.6 ) Other trade receivables 0.2 0.5 Accounts receivable, net $ 112.5 $ 141.2 c. Other Current Assets, net As of December 31, 2019 2018 (In millions) Deferred costs recoverable from the U.S. government $ 47.1 $ 52.6 Income tax receivable 43.4 14.9 Prepaid expenses 13.9 14.4 Inventories 24.0 14.9 Other 17.4 20.9 Other current assets, net $ 145.8 $ 117.7 The income tax receivable balance includes amounts the Company expects to receive from amended returns and refund claims, and an overpayment applied to tax year 2019 income tax returns. d. Property, Plant and Equipment, net As of December 31, 2019 2018 (In millions) Land $ 71.2 $ 71.2 Buildings and improvements 434.9 408.6 Machinery and equipment, including capitalized software 488.2 499.5 Construction-in-progress 70.2 63.1 1,064.5 1,042.4 Less: accumulated depreciation (654.6 ) (642.7 ) Property, plant and equipment, net $ 409.9 $ 399.7 Depreciation expense for 2019, 2018, and 2017 was $58.1 million , $56.1 million , and $56.7 million , respectively. The Company had $17.9 million of property, plant and equipment additions included in accounts payable as of December 31, 2019. e. Goodwill. The goodwill balance as of December 31, 2019 and 2018, relates to the Company’s Aerospace and Defense segment. The change of $0.1 million in the carrying amount of goodwill in 2019 was due to the 3D Material Technologies ("3DMT") acquisition (see Note 5). f. Intangible Assets As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 65.9 $ 21.3 Intellectual property\trade secrets 34.2 17.1 17.1 Trade name 21.0 4.6 16.4 Acquired technology 19.2 15.8 3.4 Intangible assets $ 161.6 $ 103.4 $ 58.2 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 56.4 $ 30.8 Intellectual property\trade secrets 34.2 14.5 19.7 Trade name 21.0 3.9 17.1 Acquired technology 19.2 15.0 4.2 Intangible assets $ 161.6 $ 89.8 $ 71.8 The intangible asset balances as of December 31, 2019 and 2018, relates to the Company’s Aerospace and Defense segment. Amortization expense related to intangible assets was $13.6 million , $13.7 million , and $13.7 million in 2019, 2018, and 2017, respectively. Future amortization expense for the five succeeding years is estimated to be as follows: Year Ending December 31, Future Amortization Expense (In millions) 2020 $ 13.4 2021 9.9 2022 6.6 2023 6.1 2024 4.8 $ 40.8 g. Other Noncurrent Assets, net As of December 31, 2019 2018 (In millions) Real estate held for entitlement and leasing $ 100.3 $ 96.3 Receivable from Northrop Grumman Corporation for environmental remediation costs 46.5 52.5 Deferred costs recoverable from the U.S. government 54.8 56.4 Other 54.0 49.8 Other noncurrent assets, net $ 255.6 $ 255.0 h. Other Current Liabilities As of December 31, 2019 2018 (In millions) Accrued compensation and employee benefits $ 103.1 $ 116.4 Income taxes payable — 19.8 Other 52.4 67.9 Other current liabilities $ 155.5 $ 204.1 i. Accumulated Other Comprehensive Loss, Net of Income Taxes The following table presents the changes in accumulated other comprehensive loss by components, net of income taxes: Actuarial Prior Service Credits (Costs), Net Total (In millions) December 31, 2017 $ (272.7 ) $ 0.1 $ (272.6 ) Actuarial losses, net of income taxes (16.4 ) — (16.4 ) Amortization of net actuarial losses and prior service credits, net of income taxes 49.7 (0.1 ) 49.6 December 31, 2018 (239.4 ) — (239.4 ) Actuarial losses, net of income taxes (26.5 ) — (26.5 ) Amortization of net actuarial losses and prior service credits, net of income taxes 29.5 (0.1 ) 29.4 December 31, 2019 $ (236.4 ) $ (0.1 ) $ (236.5 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Coleman Aerospace On February 24, 2017, the Company closed on an agreement to purchase substantially all of the assets of Coleman Aerospace, a systems engineering and integration provider, from L3 Technologies, Inc. ("L3"). Coleman Aerospace operates now as a subsidiary of Aerojet Rocketdyne and was renamed Aerojet Rocketdyne Coleman Aerospace, Inc. ("Coleman"). The acquisition builds upon and expands the Company’s capabilities in mission analysis and systems engineering, and increases its product portfolio to include vehicle integration for small-, medium- and intermediate-range ballistic missile targets and other small launch vehicles. The aggregate consideration paid to L3 for the purchase of Coleman was $17.0 million , which included $15.0 million of cash paid at closing and a $2.0 million working capital adjustment paid in the third quarter of 2017. The Company incurred $1.0 million of expenses related to the acquisition of Coleman. The purchase price allocation has been developed based on estimates of the fair value of the assets and liabilities of Coleman that the Company acquired. In addition, the allocation of the purchase price to acquired intangible assets is based on fair value estimates. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Current assets $ 12.0 Property, plant and equipment 1.9 Total tangible assets acquired 13.9 Intangible assets acquired 4.8 Deferred income taxes 0.3 Total assets acquired 19.0 Liabilities assumed, current (5.2 ) Total identifiable net assets acquired 13.8 Goodwill (consideration less total identifiable net assets acquired) $ 3.2 The purchase price allocation resulted in the recognition of $3.2 million in goodwill, all of which is deductible for tax purposes and included within the Company’s Aerospace and Defense segment. Goodwill recognized from the acquisition primarily relates to the expected contributions of Coleman to the Company’s overall corporate strategy. The following table summarizes the estimated fair value of Coleman's intangible assets acquired: Gross Carrying Amount (in millions) Amortization Period (years) Trade name $ 0.5 8 Customer related 3.4 7 Acquired technology 0.9 10 Total intangible assets $ 4.8 The acquisition of Coleman was not considered a significant business combination. 3D Material Technologies On March 29, 2019, the Company acquired certain assets of 3DMT from ARC Group Worldwide, Inc. 3DMT is a provider of additive manufacturing (3-D printing) services to the aerospace, defense and industrial markets. The net assets acquired of $1.1 million are immaterial to the Company’s consolidated financial statements. The purchase price allocation was developed based on estimates of the fair value of the assets and liabilities. The purchase price allocation resulted in the recognition of $0.1 million |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted the new leasing guidance effective January 1, 2019. The new guidance requires lessees to recognize a ROU asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. The Company and its subsidiaries lease certain facilities, machinery and equipment, and office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one to twenty years . The following table summarizes the Company's lease costs: Year Ended December 31, 2019 (In millions) Operating lease cost $ 14.2 Finance lease cost: Amortization 4.0 Interest on lease liabilities 2.9 Short-term lease cost 0.8 Total lease costs $ 21.9 Rent expense was $17.2 million and $20.7 million in 2018 and 2017, respectively. The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14.2 Operating cash flows for finance leases 2.9 Financing cash flows for finance leases 3.3 Assets obtained in exchange for lease obligations: Operating leases 7.7 Finance leases 23.8 The following table summarizes the supplemental balance sheet information related to leases: December 31, 2019 (In millions) Operating leases: Operating lease right-of-use assets $ 48.0 Operating lease liabilities (component of other current liabilities) $ 12.0 Operating lease liabilities, noncurrent 39.1 $ 51.1 Finance leases: Property, plant and equipment $ 52.9 Accumulated depreciation (5.8 ) Property, plant and equipment, net $ 47.1 Current portion of long-term debt $ 2.1 Long-term debt 45.6 Total finance lease liability $ 47.7 Weighted-average remaining lease term (in years): Operating leases 6 Finance leases 18 Weighted-average discount rate: Operating leases 4.7 % Finance leases 5.2 % The Company has additional real estate and information technology equipment operating leases that have not yet commenced amounting to $9.4 million . These operating leases will commence between 2020 and 2022 with lease terms of up to eleven years . The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2019 : Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2020 $ 14.2 $ 4.9 $ 1.1 2021 13.2 4.7 1.6 2022 10.9 4.1 1.5 2023 5.5 3.7 1.0 2024 1.9 3.8 0.9 Thereafter 13.5 57.5 6.4 Total minimum rentals 59.2 78.7 12.5 Less: imputed interest (8.1 ) (31.0 ) — Total $ 51.1 $ 47.7 $ 12.5 The Company also leases certain surplus facilities to third parties. The Company recorded lease income of $7.5 million , $6.4 million , and $6.4 million |
Leases | Leases The Company adopted the new leasing guidance effective January 1, 2019. The new guidance requires lessees to recognize a ROU asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. The Company and its subsidiaries lease certain facilities, machinery and equipment, and office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one to twenty years . The following table summarizes the Company's lease costs: Year Ended December 31, 2019 (In millions) Operating lease cost $ 14.2 Finance lease cost: Amortization 4.0 Interest on lease liabilities 2.9 Short-term lease cost 0.8 Total lease costs $ 21.9 Rent expense was $17.2 million and $20.7 million in 2018 and 2017, respectively. The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14.2 Operating cash flows for finance leases 2.9 Financing cash flows for finance leases 3.3 Assets obtained in exchange for lease obligations: Operating leases 7.7 Finance leases 23.8 The following table summarizes the supplemental balance sheet information related to leases: December 31, 2019 (In millions) Operating leases: Operating lease right-of-use assets $ 48.0 Operating lease liabilities (component of other current liabilities) $ 12.0 Operating lease liabilities, noncurrent 39.1 $ 51.1 Finance leases: Property, plant and equipment $ 52.9 Accumulated depreciation (5.8 ) Property, plant and equipment, net $ 47.1 Current portion of long-term debt $ 2.1 Long-term debt 45.6 Total finance lease liability $ 47.7 Weighted-average remaining lease term (in years): Operating leases 6 Finance leases 18 Weighted-average discount rate: Operating leases 4.7 % Finance leases 5.2 % The Company has additional real estate and information technology equipment operating leases that have not yet commenced amounting to $9.4 million . These operating leases will commence between 2020 and 2022 with lease terms of up to eleven years . The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2019 : Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2020 $ 14.2 $ 4.9 $ 1.1 2021 13.2 4.7 1.6 2022 10.9 4.1 1.5 2023 5.5 3.7 1.0 2024 1.9 3.8 0.9 Thereafter 13.5 57.5 6.4 Total minimum rentals 59.2 78.7 12.5 Less: imputed interest (8.1 ) (31.0 ) — Total $ 51.1 $ 47.7 $ 12.5 The Company also leases certain surplus facilities to third parties. The Company recorded lease income of $7.5 million , $6.4 million , and $6.4 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return with its wholly-owned subsidiaries. The following table presents the components of the Company’s income tax provision: Year Ended December 31, 2019 2018 2017 (In millions) Current U.S. federal $ 45.2 $ 35.1 $ (30.6 ) State and local 11.5 11.5 1.0 56.7 46.6 (29.6 ) Deferred U.S. federal (8.1 ) 0.9 116.0 State and local 2.3 3.8 9.7 (5.8 ) 4.7 125.7 Income tax provision $ 50.9 $ 51.3 $ 96.1 The following table presents the reconciling items between the income tax provision using the U.S. federal statutory rate and the Company's reported income tax provision. Year Ended December 31, 2019 2018 2017 (In millions) Statutory U.S. federal income tax $ 40.3 $ 39.6 $ 30.4 State income taxes 10.9 12.1 7.0 Reserve adjustments 3.9 2.7 (4.6 ) Tax credits and special deductions (2.7 ) (3.7 ) (1.2 ) Lobbying costs 0.4 0.4 0.7 Deferred tax adjustment (0.5 ) (0.6 ) (0.1 ) Stock compensation excess tax benefits (2.3 ) (0.4 ) (1.4 ) Other, net 0.9 1.2 0.7 New legislation - tax rate changes — — 64.6 Income tax provision $ 50.9 $ 51.3 $ 96.1 The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate on earnings in percentages. Year Ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes 5.7 6.4 8.0 Reserve adjustments 2.0 1.4 (5.3 ) Tax credits and special deductions (1.4 ) (2.0 ) (1.4 ) Lobbying costs 0.2 0.2 0.8 Deferred tax adjustment (0.2 ) (0.3 ) (0.1 ) Stock compensation excess tax benefits (1.2 ) (0.2 ) (1.6 ) Other, net 0.4 0.7 0.8 New legislation - tax rate changes — — 74.4 Effective income tax rate 26.5 % 27.2 % 110.6 % In 2019, the Company’s effective tax rate was 26.5% . The Company’s effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes and uncertain tax positions, offset by R&D credits and excess tax benefits related to the Company’s stock-based compensation. In 2018, the Company’s effective tax rate was 27.2% . The Company’s effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes and unfavorable adjustments to uncertain tax positions partially offset by R&D credits. In 2017, the Company’s effective tax rate was 110.6% . The Company’s effective tax rate differed from the 35.0% statutory federal income tax rate primarily due to the change in the federal statutory tax rate from 35% to 21% under the Tax Act. In accordance with the rate reduction, the Company wrote down its net deferred tax assets by $64.6 million which unfavorably affected the effective tax rate by 74.4% . The effective tax rate also included an increase from state income taxes partially offset by favorable adjustments to the Company's uncertain tax positions and R&D credits. The Company is routinely examined by domestic tax authorities. While it is difficult to predict the outcome or timing of a particular tax matter, the Company believes it has adequately provided reserves for any reasonable foreseeable outcome related to these matters. In the second quarter of 2018, the Internal Revenue Service ("IRS") notified the Company that its federal income tax return for the year ended November 30, 2015, was selected for audit. In the fourth quarter of 2019, the IRS notified the Company that they completed the audit at the field level with no changes and have forwarded the Company's case to the Joint Committee on Taxation ("JCT") for a secondary review. The Company is unable to determine the timing of the completion of the JCT review. In the fourth quarter of 2018, the California Franchise Tax Board ("FTB") notified the Company that its California tax returns for the years ended November 30, 2014, November 30, 2015, and December 31, 2015, were selected for audit. In the third quarter of 2019, the FTB completed its audit with no changes. Except for the November 30, 2015, period noted above, U.S. federal tax returns for the years ended December 31, 2016, through December 31, 2018, remain open to examination. Tax returns for the years ended November 30, 2015, through December 31, 2018, remain open to examination for state income tax jurisdictions. The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (In millions) Balances at beginning of year $ 7.4 $ 4.4 $ 29.5 Increases based on tax positions in prior years 40.4 0.3 1.0 Decreases based on tax position in prior years — (0.1 ) (25.1 ) Increases based on tax positions in current year 10.4 3.5 0.4 Lapse of statute of limitations (0.2 ) (0.7 ) (1.4 ) Balances at end of year $ 58.0 $ 7.4 $ 4.4 As of December 31, 2019, the total amount of unrecognized tax benefits is $58.0 million . Of the $58.0 million of unrecognized tax benefits, $10.3 million would affect the effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2019, the Company’s accrued interest and penalties related to uncertain tax positions was $1.8 million . It is reasonably possible that a reduction of up to $2.3 million of unrecognized tax benefits and related interest and penalties may occur within the next 12 months as a result of the expiration of certain statutes of limitations. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the Company’s assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined by multiplying such differences by the enacted tax rates expected to be in effect when such differences are recovered or settled. The following table presents the deferred tax assets and liabilities: As of December 31, 2019 2018 (In millions) Deferred Tax Assets Accrued estimated costs $ 43.2 $ 48.3 Basis difference in assets and liabilities 59.0 63.8 Operating lease liabilities 12.9 — Tax losses and credit carryforwards 3.0 3.2 Net cumulative defined benefit pension plan losses 95.9 87.0 Retiree medical and life insurance benefits 6.2 7.5 Total deferred tax assets 220.2 209.8 Deferred Tax Liabilities Revenue recognition differences 77.7 84.9 Basis differences in intangible assets 8.6 8.0 ROU assets 12.0 — Total deferred tax liabilities 98.3 92.9 Total net deferred tax assets $ 121.9 $ 116.9 Realization of deferred tax assets is primarily dependent on generating sufficient taxable income in future periods. The Company believes it is more-likely-than not its deferred tax assets will be realized. Accordingly, no valuation allowance was recorded for 2019. The following table presents the changes in the Company's valuation allowance: Year Ended December 31, Balance at Beginning of Year Tax Valuation Allowance Charged to Income Tax Provision Tax Valuation Allowance Credited to Income Tax Provision Balance at End of Year (In millions) 2018 $ 1.7 $ — $ (1.7 ) $ — 2017 1.7 — — 1.7 The Company fully utilized its federal net operating loss carryforwards and income tax credits in 2018. The Company expects to utilize substantially all of its state net operating loss carryforwards in 2019. The Company’s California income tax credit carryovers are $3.1 million as of December 31, 2019, and have no expiration date. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of December 31, 2019 2018 (In millions) Senior debt $ 326.3 $ 343.3 Convertible senior notes 263.0 254.9 Finance leases (see Note 4) 47.7 27.2 Total debt, carrying amount 637.0 625.4 Less: Amounts due within one year (284.7 ) (273.1 ) Total long-term debt, carrying amount $ 352.3 $ 352.3 The following table presents as of December 31, 2019 , the earlier of the Company’s contractual debt principal maturities excluding finance lease obligations or the next debt redemption date that could be exercised at the option of the debt holder by year excluding finance lease obligations: Total 2020 2021 2022 2023 (In millions) Senior debt $ 328.1 $ 19.7 $ 26.3 $ 28.4 $ 253.7 Convertible senior notes 300.0 300.0 — — — $ 628.1 $ 319.7 $ 26.3 $ 28.4 $ 253.7 See a summary of the minimum payments under finance lease obligations in Note 4. The Company amortizes deferred financing costs over the estimated life of the related debt (a portion of which is classified as a contra liability). Amortization of deferred financing costs was $1.9 million , $1.8 million , and $1.8 million in 2019, 2018, and 2017, respectively. a. Senior Debt: As of December 31, 2019 2018 (In millions) Term loan, bearing interest at variable rates (rate of 3.55% as of December 31, 2019), maturing in September 2023 $ 328.1 $ 345.6 Unamortized deferred financing costs (1.8 ) (2.3 ) Total senior debt $ 326.3 $ 343.3 On September 20, 2018, the Company amended the senior secured Senior Credit Facility (the "Senior Credit Facility") to a $1.0 billion commitment with the lenders named therein and Bank of America Merrill Lynch as joint lead arranger and administrative agent. The Senior Credit Facility matures on September 20, 2023, and consists of (i) a $650.0 million revolving line of credit (the "Revolver") and (ii) a $350.0 million term loan (the "Term Loan"). The Senior Credit Facility amended the prior $750.0 million credit facility which was set to mature in June 2021 and is intended to provide available funds for the Company’s short-term liquidity needs from time to time. As of December 31, 2019 , the Company had zero borrowings under the Revolver and had issued $29.7 million letters of credit. The Term Loan and any borrowings under the Revolver bear interest at LIBOR plus an applicable margin ranging from 175 to 250 basis points based on the Company's leverage ratio (the "Consolidated Net Leverage Ratio") measured at the end of each quarter. In addition to interest, the Company must pay certain fees including (i) letter of credit fees ranging from 175 to 250 basis points per annum on the amount of issued but undrawn letters of credit and eurocurrency rate loans and (ii) commitment fees ranging from 30 to 45 basis points per annum on the unused portion of the Revolver. The Term Loan amortizes at a rate of 5.0% per annum of the original drawn amount starting on December 31, 2018, increasing to 7.5% per annum on December 31, 2020, and increasing to 10.0% per annum from December 31, 2022, to be paid in equal quarterly installments with any remaining amounts, along with outstanding borrowings under the Revolver, due on the maturity date. Outstanding borrowings under the Revolver and the Term Loan may be voluntarily repaid at any time, in whole or in part, without premium or penalty. The Senior Credit Facility is secured by a first priority security interest in the Company’s assets, subject to certain customary exceptions, as well as pledges of its equity interests in certain subsidiaries. The Senior Credit Facility contains financial covenants requiring the Company to (i) maintain an interest coverage ratio (the "Consolidated Interest Coverage Ratio") of not less than 3.00 to 1.00 and (ii) maintain a Consolidated Net Leverage Ratio not to exceed (a) 4.00 to 1.00 through September 30, 2020; (b) 3.75 to 1.00 from October 1, 2020, through September 30, 2021; and (c) 3.50 to 1.00 from October 1, 2021, thereafter, provided that the maximum leverage ratio for all periods shall be increased by 0.50 to 1.00 for two consecutive quarters after consummation of a qualified acquisition. The Company may generally make certain investments, redeem debt subordinated to the Senior Credit Facility and make certain restricted payments (such as stock repurchases and dividends) if the Company's Consolidated Net Leverage Ratio does not exceed 3.25 to 1.00 pro forma for such transaction. The Company is otherwise subject to customary covenants including limitations on asset sales, incurrence of additional debt, and limitations on certain investments and restricted payments. The Company was in compliance with its financial and non-financial covenants as of December 31, 2019 . b. Convertible Senior Notes: As of December 31, 2019 2018 (In millions) Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023 $ 300.0 $ 300.0 Unamortized discount and deferred financing costs (37.0 ) (45.1 ) Total convertible senior notes $ 263.0 $ 254.9 On December 14, 2016, the Company issued $300.0 million aggregate principal amount of 2¼% Notes in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The 2¼% Notes bear cash interest at a rate of 2.25% per annum on the principal amount of the 2¼% Notes from December 14, 2016, payable semi-annually in arrears on June 15 and December 15 of each year, beginning June 15, 2017. The 2¼% Notes will mature on December 15, 2023, subject to earlier repurchase, redemption or conversion in certain circumstances described below. The 2¼% Notes are general unsecured senior obligations, which (i) rank senior in right of payment to all of the Company’s existing and future senior indebtedness that is expressly subordinated in right of payment to the 2¼% Notes; (ii) rank equal in right of payment with all of the Company’s existing and future unsecured indebtedness that is not so subordinated; (iii) rank effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) rank structurally junior to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. The 2¼% Notes may be converted into cash, shares of the Company’s common stock or a combination thereof initially at a conversion rate of 38.4615 shares of common stock per $1,000 principal amount of 2¼% Notes (equivalent to a conversion price of approximately $26.00 per share of common stock), subject to adjustment from time to time as described in the indenture governing the 2¼% Notes. Holders may convert their 2¼% Notes at their option (i) at any time prior to the close of business on the business day immediately preceding September 15, 2023, under certain circumstances and (ii) at any time on or after September 15, 2023, until the close of business on the business day immediately preceding the maturity date, irrespective of such circumstances. In addition, if holders of the 2¼% Notes elect to convert their 2¼% Notes in connection with the occurrence of a make-whole fundamental change, as defined in the indenture governing the 2¼% Notes, such holders will be entitled to an increase in the conversion rate upon conversion in certain circumstances. Holders may convert their 2¼% Notes at their option from January 1, 2020, through March 31, 2020, because the Company's closing stock price exceeded $33.80 for at least 20 days in the 30 day period prior to December 31, 2019. The Company has a stated intention to cash settle the principal amount of the 2¼% Notes with the conversion premium to be settled in common shares. Accordingly, the net balance of the 2¼% Notes of $263.0 million is classified as a current liability as of December 31, 2019 . The classification of the 2¼% Notes as current or noncurrent on the balance sheet is evaluated at each reporting date and may change depending on whether the sale price contingency (discussed below) has been met. As more fully described in the indenture governing the 2¼% Notes, the holders of the 2¼% Notes may surrender all or any portion of its 2¼% Notes for conversion at any time during any calendar quarter commencing after the calendar quarter ending on March 31, 2017, (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% ( $33.80 ) of the conversion price on each applicable trading day. The Company may redeem for cash all or any portion of the 2¼% Notes, at its option, on or after December 21, 2020, if the last reported sale price of the Company’s common stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2¼% Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If a fundamental change, as defined in the indenture governing the 2¼% Notes, occurs prior to maturity, subject to certain conditions, holders of the 2¼% Notes will have the right to require the Company to repurchase all or part of their 2¼% Notes for cash at a fundamental change repurchase price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, up to, but excluding, the fundamental change repurchase date. The 2¼% Notes contain customary events of default, including, among other things, payment default, covenant default and certain cross-default provisions linked to the payment of other indebtedness of the Company or its significant subsidiaries. Issuance of the 2¼% Notes generated proceeds of $294.2 million net of debt issuance costs, which were used to repurchase long-term debt and for working capital and other general corporate purposes. The Company separately accounted for the liability and equity components of the 2¼% Notes. The initial liability component of the 2¼% Notes was valued based on the present value of the future cash flows using an estimated borrowing rate at the date of the issuance for similar debt instruments without the conversion feature, which equals the effective interest rate of 5.8% on the liability component. The equity component, or debt discount, was initially valued equal to the principal value of the 2¼% Notes, less the liability component. The debt discount is being amortized as a non-cash charge to interest expense over the period from the issuance date through December 15, 2023. The debt issuance costs of $5.8 million incurred in connection with the issuance of the 2¼% Notes were capitalized and bifurcated into deferred financing costs of $4.7 million and equity issuance costs of $1.1 million . The deferred financing costs are being amortized to interest expense from the issuance date through December 15, 2023. The following table summarizes the 2¼% Notes information (in millions, except years, percentages, conversion rate, and conversion price): As of December 31, 2019 2018 Carrying value, long-term $ 263.0 $ 254.9 Unamortized discount and deferred financing costs 37.0 45.1 Principal amount $ 300.0 $ 300.0 Carrying amount of equity component, net of equity issuance costs $ 54.5 $ 54.5 Remaining amortization period (years) 4.0 5.0 Effective interest rate 5.8 % 5.8 % Conversion rate (shares of common stock per $1,000 principal amount) 38.4615 38.4615 Conversion price (per share of common stock) $ 26.00 $ 26.00 Based on the Company's closing stock price of $45.66 on December 31, 2019, the if-converted value of the 2¼% Notes exceeded the aggregate principal amount of the 2¼% Notes by $226.8 million . The following table presents the interest expense components for the 2¼% Notes: Year Ended December 31, 2019 2018 2017 (In millions) Interest expense-contractual interest $ 6.8 $ 6.8 $ 6.8 Interest expense-amortization of debt discount 7.5 7.1 6.7 Interest expense-amortization of deferred financing costs 0.6 0.6 0.6 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits a. Plan Descriptions Pension Benefits The Company's defined benefit pension plan future benefit accrual was discontinued in 2009. As of December 31, 2019 , the assets, projected benefit obligations, and unfunded pension obligation were $932.5 million , $1,349.8 million , and $417.3 million , respectively. In 2020, the Company expects to make contributions of $46.0 million to its tax-qualified defined benefit pension plan, including $13.9 million of cash and $32.1 million of prepayment credits. The Company is generally able to recover contributions related to its tax-qualified defined benefit pension plan as allowable costs on its U.S. government contracts, but there are differences between when the Company contributes to its tax-qualified defined benefit pension plan under pension funding rules and when it is recoverable under Cost Accounting Standards ("CAS"). During 2019, the Company used $38.9 million of prepayment credits to fund its tax-qualified defined benefit pension plan. The funded status of the Company's tax-qualified pension plan may be adversely affected by the investment experience of the plan's assets, by any changes in U.S. law and by changes in the statutory interest rates used by tax-qualified pension plans in the U.S. to calculate funding requirements. Accordingly, if the performance of the plan's assets does not meet assumptions, if there are changes to income tax regulations or other applicable law, or if other actuarial assumptions are modified, future contributions to the underfunded pension plans could be higher than the Company expects. Medical and Life Insurance Benefits The Company provides medical and life insurance benefits to certain eligible retired employees, with varied coverage by employee group. Generally, employees hired after January 1, 1997, are not eligible for retiree medical and life insurance benefits. The medical benefit plan provides for cost sharing between the Company and its retirees in the form of retiree contributions, deductibles, and coinsurance. Medical and life insurance benefit obligations are unfunded. Medical and life insurance benefit cash payments for eligible retired employees are recoverable from the Company’s U.S. government contracts. Defined Contribution 401(k) Benefits The Company sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees. The Company makes matching contributions in cash equal to 100% of the first 3% of the participants’ compensation contributed and 50% of the next 3% of the compensation contributed. The cost of the 401(k) plan was $21.4 million , $22.2 million , and $21.2 million in 2019 , 2018 , and 2017, respectively. b. Plan Results The following table summarizes the balance sheet impact of the Company’s pension benefits and medical and life insurance benefits. Pension benefits include the consolidated tax-qualified plan and the unfunded non-qualified plan for benefits provided to employees beyond those provided by the Company’s tax-qualified plan. Assets, benefit obligations, and the funded status of the plans were determined at December 31, 2019 and 2018 . Pension Benefits Medical and As of December 31, 2019 2018 2019 2018 (In millions) Change in fair value of assets: Fair value - beginning of year $ 894.8 $ 931.2 $ — $ — Gain (loss) on assets 144.8 (57.8 ) — — Employer contributions (1) 1.4 133.1 3.1 3.6 Benefits paid (2) (108.5 ) (111.7 ) (3.1 ) (3.6 ) Fair value - end of year $ 932.5 $ 894.8 $ — $ — Change in benefit obligation: Benefit obligation - beginning of year $ 1,288.7 $ 1,442.9 $ 31.3 $ 37.5 Interest cost 52.7 49.7 1.2 1.2 Actuarial losses (gains) 116.9 (92.2 ) (3.5 ) (3.8 ) Benefits paid (108.5 ) (111.7 ) (3.1 ) (3.6 ) Benefit obligation and accumulated benefit obligation - end of year $ 1,349.8 $ 1,288.7 $ 25.9 $ 31.3 Funded status of the plans $ (417.3 ) $ (393.9 ) $ (25.9 ) $ (31.3 ) Amounts recognized in the consolidated balance sheets: Postretirement medical and life insurance benefits, current $ — $ — $ (3.6 ) $ (4.4 ) Postretirement medical and life insurance benefits, noncurrent — — (22.3 ) (26.9 ) Pension liability, non-qualified current (component of other current liabilities) (1.3 ) (1.3 ) — — Pension liability, non-qualified (component of other noncurrent liabilities) (17.1 ) (15.9 ) — — Pension benefits, noncurrent (398.9 ) (376.7 ) — — Net liability recognized in the consolidated balance sheets $ (417.3 ) $ (393.9 ) $ (25.9 ) $ (31.3 ) ______ (1) On September 10, 2018, the Company made a discretionary contribution of 2.7 million treasury stock, or $95.0 million , of its common stock to the tax-qualified defined benefit pension plan most of which is expected to be recoverable in future periods as allowable costs on its U.S. government contracts. (2) Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of $0.1 million received in both 2019 and 2018 . The pension benefits obligation actuarial losses of $116.9 million in 2019 were primarily the result of a decrease in the discount rate used to determine the obligation due to lower market interest rates. The discount rate was 3.28% as of December 31, 2019, compared with 4.27% as of December 31, 2018. The pension obligation actuarial gains of $92.2 million in 2018 were primarily the result of an increase in the discount rate used to determine the obligation due to higher market interest rates. The discount rate was 4.27% as of December 31, 2018, compared with 3.59% as of December 31, 2017. The following table presents the components of retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 (In millions) Interest cost on benefit obligation $ 52.7 $ 49.7 $ 57.6 $ 1.2 $ 1.2 $ 1.5 Assumed return on assets (64.8 ) (60.1 ) (49.5 ) — — — Amortization of prior service costs (credits) 0.1 0.1 0.1 (0.2 ) (0.2 ) (0.2 ) Amortization of net losses (gains) 40.9 70.7 67.8 (3.8 ) (3.8 ) (4.1 ) $ 28.9 $ 60.4 $ 76.0 $ (2.8 ) $ (2.8 ) $ (2.8 ) The following table presents the actual return and rate of return on assets: Year Ended December 31, 2019 2018 2017 (In millions, except rate of return) Actual gain (loss) on assets $ 144.8 $ (57.8 ) $ 96.8 Actual rate of return (loss) on assets 18.0 % (5.2 )% 10.8 % Service costs represent the annual growth in benefits earned by participants during the year. Since the Company’s defined benefit pension plan future benefit accrual is discontinued for all participants, the Company has determined in connection with the adoption of accounting guidance on presentation of service cost and other components of retirement benefits expense that the service cost is zero for all periods presented. Historically, the Company has included expenses paid from the tax-qualified defined benefit pension plan trust, including Pension Benefit Guaranty Corporation, audit, actuarial, legal and administrative fees, as service costs in the presentation of the components of retirement benefits expense (income). The Company determined that the vast majority of these types of expenses reflect a reduction to the assumed return on plan assets because they reduce the expected growth of the plan assets. As such, the Company has elected to reclassify the trust-paid expenses related to the tax-qualified defined benefit pension plan as a reduction to assumed return on plan assets for all periods presented. For 2017, the Company has reclassified expenses of $15.0 million from service cost to assumed return on plan assets in the table above. This change in presentation had no impact on net retirement benefits expense (income). Market conditions and interest rates significantly affect assets and liabilities of the pension plans. Pension accounting permits market gains and losses to be deferred and recognized over a period of years. This "smoothing" results in the creation of other accumulated income or loss which will be amortized to pension costs in future years. The accounting method the Company utilizes recognizes one-fifth of the unamortized gains and losses in the market-related value of pension assets and all other gains and losses including changes in the discount rate used to calculate the benefit obligation each year. Investment gains or losses for this purpose are the difference between the expected return and the actual return on the market-related value of assets which smoothes asset values over three years . Although the smoothing period mitigates some volatility in the calculation of annual retirement benefits expense, future expenses are impacted by changes in the market value of assets and changes in interest rates. c. Plan Assumptions The following table presents the assumptions, calculated based on a weighted-average, to determine the benefit obligations: Pension Medical and As of December 31, As of December 31, 2019 2018 2019 2018 Discount rate 3.28 % 4.27 % 3.19 % 4.09 % Discount rate (non-qualified plan) 3.30 % 4.27 % * * Ultimate healthcare trend rate * * 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * 5.50 % 6.00 % Year ultimate rate attained (pre 65/post 65) * * 2022 2022 ______ * Not applicable The following table presents the assumptions, calculated based on a weighted-average, to determine the retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 4.27 % 3.59 % 4.02 % 4.09 % 3.37 % 3.68 % Discount rate (non-qualified plan) 4.27 % 3.62 % 4.07 % * * * Expected long-term rate of return on assets 7.00 % 7.00 % 7.00 % * * * Ultimate healthcare trend rate * * * 4.50 % 5.00 % 5.00 % Initial healthcare trend rate (pre 65/post 65) * * * 6.00 % 6.50 % 7.00 % Year ultimate rate attained (pre 65/post 65) * * * 2022 2021 2021 ______ * Not applicable Certain actuarial assumptions, such as assumed discount rate, long-term rate of return, and assumed healthcare cost trend rates can have a significant effect on amounts reported for periodic cost of pension benefits and medical and life insurance benefits, as well as respective benefit obligation amounts. The assumed discount rate represents the market rate available for investments in high-quality fixed income instruments with maturities matched to the expected benefit payments for pension and medical and life insurance benefit plans. The expected long-term rate of return on assets represents the rate of earnings expected in the funds invested, and funds to be invested, to provide for anticipated benefit payments to plan participants. The Company evaluated historical investment performance, current and expected asset allocation, and, with input from the Company’s external advisors, developed best estimates of future investment performance. Based on this analysis, the Company assumed a long-term expected rate of return of 7.0% in 2019 . The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates for the medical benefit plans. For 2019 medical benefit obligations, the Company assumed a 5.5% annual rate of increase for pre and post 65 participants in the per capita cost of covered healthcare claims with the rate decreasing over two years until reaching 4.5% . d. Plan Assets and Investment Policy The Company’s investment policy is to maximize the total rate of return within a prudent risk framework, while maintaining adequate liquidity throughout volatile market cycles to meet benefit obligations when due. The Company's strategies employ active management and are generally focused on minimizing the permanent loss of capital. The Company's asset diversification objectives target a diversified portfolio that invests across the capital structure via strategies with complimentary risk and return profiles. Diversification is achieved by investing in various asset types, which may include cash, fixed income, equities, private assets, credit holdings, and future contracts. Further, the Company's strategy allows for diversification as to the types of investment vehicle structures, investment and redemption periods, and the number of investment managers used to carry out its strategy. Allocations between asset types, structures and managers may change as a result of changing market conditions, tactical investment opportunities, planned Company contributions, and cash obligations of the plan. The following table presents the asset allocations by asset category: As of December 31, 2019 2018 Cash and cash equivalents 4 % 4 % Equity securities 44 43 Fixed income 15 19 Registered investment companies 2 1 Private assets 12 13 Hedge funds 23 20 Total 100 % 100 % The following tables present the fair value by asset category and by level: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2019 Cash and cash equivalents $ 0.1 $ 0.1 $ — $ — Equity securities: Domestic equity securities 372.6 368.4 — 4.2 International equity securities 33.5 33.5 — — Fixed income: Corporate debt securities 78.2 — 50.6 27.6 Asset-backed securities 26.3 — 26.3 — U.S. government securities 31.3 — 31.3 — Foreign bonds 0.8 — 0.8 — Foreign exchange contracts 0.1 — 0.1 — Registered investment companies 22.8 22.8 — — Private assets 5.4 — — 5.4 Total 571.1 $ 424.8 $ 109.1 $ 37.2 Investment measured at Net Asset Value ("NAV") Private assets 106.3 Hedge funds 218.7 Common/collective trusts ("CCTs") 50.0 Total investments measured at NAV 375.0 Receivables 6.5 Payables (20.1 ) Total assets $ 932.5 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2018 Cash and cash equivalents $ 0.6 $ 0.6 $ — $ — Equity securities: Domestic equity securities 345.7 340.8 — 4.9 International equity securities 36.9 36.8 — 0.1 Fixed income: Corporate debt securities 115.2 — 93.7 21.5 Asset-backed securities 28.1 — 28.1 — U.S. government securities 24.6 — 24.6 — Foreign bonds 0.1 — 0.1 — Registered investment companies 9.6 9.6 — — Private assets 1.3 — — 1.3 Total 562.1 $ 387.8 $ 146.5 $ 27.8 Investment measured at NAV Private assets 114.9 Hedge funds 173.9 CCTs 52.0 Total investments measured at NAV 340.8 Receivables 1.4 Payables (9.5 ) Total assets $ 894.8 Below is a description of the significant investment strategies and valuation methodologies used for the investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. There have been no changes in the methodologies used at December 31, 2019 and 2018 . Cash and cash equivalents Cash and cash equivalents are invested in money market funds or Short-Term Investment Funds ("STIFs"). Cash and cash equivalents invested in money market funds are classified as Level 1 investments. STIFs are measured at NAV and included in CCTs as a reconciling item to the fair value tables above. Equity securities Equity securities are invested broadly in U.S. and non-U.S. companies in a variety of sectors and market capitalizations. These investments are comprised of common stocks, CCTs, and other investment vehicles. Common stocks are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the year and are classified as Level 1 investments. Equity securities that are invested in common stock of private companies and priced using unobservable inputs are classified as Level 3 investments. CCTs invested in equity securities are measured at NAV and included as a reconciling item to the fair value tables above. Fixed income securities Fixed income securities are invested in a variety of instruments, including, but not limited to, corporate debt securities, U.S. government securities, CCTs, asset-backed securities, foreign bonds, and other investment vehicles. Corporate debt securities are invested in corporate bonds and term loans. Corporate bonds are valued at bid evaluations using observable and market-based inputs and are classified as Level 2 investments. Term loans are priced using unobservable inputs and are classified as Level 3 investments. Asset-backed securities, including government-backed mortgage securities, commercial mortgage-backed securities, auto receivable backed securities, and other asset-backed securities, are valued at bid evaluations and are classified as Level 2 investments. Foreign bonds that are valued using pricing models maximizing the use of observable inputs for similar securities are classified as Level 2 investments. Foreign bonds that are priced using unobservable inputs are classified as Level 3 investments. The foreign bond classified as Level 3 investment had no value at both December 31, 2019 and 2018. CCTs invested in fixed income securities are measured at NAV and included as a reconciling item to the fair value tables above. Registered investment companies Registered investment companies are invested in corporate bonds, senior secured loans, and other fixed income. Registered investment companies are transacted at NAV published daily and are classified as Level 1 investments. Private assets Private assets are primarily limited partnerships that mainly invest in U.S. and non-U.S. leveraged buyout, venture capital and special situation strategies. Generally, the individual investments within the partnerships or funds are valued at public market, private market, or appraised value. Private assets are valued by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes. The majority of the private assets are valued at NAV and included as a reconciling item to the fair value tables above. Private assets for which there is no NAV are classified as Level 3 investments. Valuations of certain assets were based on the NAV or market value three months prior to the year-end. The Company made adjustments amounting to a decrease of $17.4 million and an increase of $9.7 million for 2019 and 2018, respectively, to account for changes since the valuation date. Hedge funds Hedge funds primarily consist of multi-strategy hedge funds that invest across a range of equity and debt securities in a variety of industry sectors. Hedge funds are valued at NAV calculated by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes and are included as a reconciling item to the fair value tables above. Valuations of certain assets were based on the NAV or market value three months prior to the year-end. The Company made adjustments amounting to a decrease of $4.5 million for 2019 to account for changes since the valuation date. The following tables present the changes in the fair value of the Level 3 investments: December 31, 2018 Unrealized Realized Purchases, Sales, and December 31, (In millions) Equity securities: Domestic equity securities $ 4.9 $ (0.3 ) $ 0.3 $ (0.7 ) $ 4.2 International equity securities 0.1 (0.1 ) — — — Corporate debt securities 21.5 (0.1 ) 0.1 6.1 27.6 Private assets 1.3 0.2 0.1 3.8 5.4 Total $ 27.8 $ (0.3 ) $ 0.5 $ 9.2 $ 37.2 December 31, 2017 Unrealized Realized Purchases, Sales, and Transfers December 31, (In millions) Equity securities: Domestic equity securities $ 3.8 $ (0.3 ) $ — $ 1.4 $ — $ 4.9 International equity securities — 0.1 — — — 0.1 Corporate debt securities 17.0 (0.3 ) 0.4 4.4 — 21.5 Private assets 25.7 — — 1.3 (25.7 ) 1.3 Total $ 46.5 $ (0.5 ) $ 0.4 $ 7.1 $ (25.7 ) $ 27.8 e. Benefit Payments The following table presents estimated future benefit payments: Pension Medical and Life Insurance Benefits Year Ending December 31, Gross Benefit Payments Medicare D Net Benefit (In millions) 2020 $ 110.5 $ 3.6 $ 0.1 $ 3.5 2021 107.0 3.3 0.1 3.2 2022 103.4 3.0 0.1 2.9 2023 99.8 2.7 0.1 2.6 2024 96.3 2.4 — 2.4 Years 2025 - 2029 425.9 8.5 0.2 8.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a. Legal Matters The Company and its subsidiaries are subject to legal proceedings, including litigation in U.S. federal and state courts, which arise out of, and are incidental to, the ordinary course of the Company’s on-going and historical businesses. The Company is also subject from time to time to governmental investigations by federal and state agencies. The Company cannot predict the outcome of such proceedings with any degree of certainty. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss. When only a range of amounts can be reasonably estimated and no amount within the range is more likely than another, the low end of the range is recorded. These estimates are often initially developed substantially earlier than when the ultimate loss is known, and are refined each quarterly reporting period as additional information becomes available. Asbestos Litigation The Company has been, and continues to be, named as a defendant in lawsuits alleging personal injury or death and seeking various monetary damages due to exposure to asbestos in building materials, products, or in manufacturing operations. The majority of cases are pending in Illinois state courts. There were 61 asbestos cases pending as of December 31, 2019 . Given the lack of any significant consistency to claims (i.e., as to product, operational site, or other relevant assertions) filed against the Company, the Company is generally unable to make a reasonable estimate of the future costs of pending claims or unasserted claims. The aggregate settlement costs and legal and administrative fees associated with the Company’s asbestos litigation has been immaterial for the last three years. As of December 31, 2019 , the Company has accrued an immaterial amount related to pending claims. United States ex. rel. Markus vs. Aerojet Rocketdyne Holdings In the case captioned United States ex. rel. Markus vs. Aerojet Rocketdyne Holdings, Inc. et al., Case No. 2:15-CV-02245- WBS-AC, the Department of Justice completed its review of the case and declined to intervene in June 2018. The case was originally filed under seal in the U.S. District Court, Eastern District of California in September 2017 and alleged causes of action against the Company based on false claims, retaliation, and wrongful termination of employment seeking injunctive relief, civil penalties, and compensatory and punitive damages. In February 2019, the Company filed a Motion to Dismiss the False Claims Act ("FCA") counts of the complaint and a Motion to Compel Arbitration on the employment based claims. In May 2019, the court dismissed one count of the FCA claim, denied the motion to dismiss the remaining FCA counts, and moved the employment based claims to arbitration. The Company continues to vigorously contest the complaint’s allegations and has not recorded any liability for this matter as of December 31, 2019 . b. Environmental Matters The Company is involved in approximately forty environmental matters under the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation Recovery Act, and other federal, state, and local laws relating to soil and groundwater contamination, hazardous waste management activities, and other environmental matters at some of its current and former facilities. The Company is also involved in a number of remedial activities at third party sites, not owned by the Company, where it is designated a potentially responsible party ("PRP") by either the U.S. Environmental Protection Agency ("EPA") and/or a state agency. In many of these matters, the Company is involved with other PRPs. In some instances, the Company’s liability and proportionate share of costs have not been determined largely due to uncertainties as to the nature and extent of site conditions and the Company’s involvement. While government agencies frequently claim PRPs are jointly and severally liable at such sites, in the Company’s experience, interim and final allocations of liability and costs are generally made based on relative contributions of waste or contamination. Anticipated costs associated with environmental remediation that are probable and estimable are accrued. In cases where a date to complete remedial activities at a particular site cannot be determined by reference to agreements or otherwise, the Company projects costs over an appropriate time period not exceeding fifteen years. In such cases, generally the Company does not have the ability to reasonably estimate environmental remediation costs that are beyond this period. Factors that could result in changes to the Company’s estimates include completion of current and future soil and groundwater investigations, new claims, future agency demands, discovery of more or less contamination than expected, discovery of new contaminants, modification of planned remedial actions, changes in estimated time required to remediate, new technologies, and changes in laws and regulations. As of December 31, 2019 , the aggregate range of these anticipated environmental costs was $309.2 million to $459.8 million and the accrued amount was $309.2 million . See Note 9(c) for a summary of the environmental reserve activity. Of these accrued liabilities, approximately 99% relates to the Company’s U.S. government contracting business and a portion of this liability is recoverable. The significant environmental sites are discussed below. The balance of the accrued liabilities, which are not recoverable from the U.S. government, relate to other sites for which the Company’s obligations are probable and estimable. Sacramento, California Site In 1989, a federal district court in California approved a Partial Consent Decree ("PCD") requiring Aerojet Rocketdyne, among other things, to conduct a Remedial Investigation and Feasibility Study to determine the nature and extent of impacts due to the release of chemicals from the Sacramento, California site, monitor the American River and offsite public water supply wells, operate Groundwater Extraction and Treatment facilities that collect groundwater at the site perimeter, and pay certain government oversight costs. The primary chemicals of concern for both on-site and off-site groundwater are trichloroethylene, perchlorate, and n-nitrosodimethylamine. A 2002 PCD revision (a) separated the Sacramento site into multiple operable units to allow quicker implementation of remedies for critical areas; (b) required the Company to guarantee up to $75 million (in addition to a prior $20 million guarantee) to assure that Aerojet Rocketdyne’s Sacramento remediation activities are fully funded; and (c) removed approximately 2,600 acres of non-contaminated land from the EPA superfund designation. Aerojet Rocketdyne is involved in various stages of soil and groundwater investigation, remedy selection, design, construction, operation and maintenance associated with the operable units, all of which are conducted under the direction and oversight of the EPA, including unilateral administrative orders, and the California Department of Toxic Substances Control ("DTSC") and Regional Water Quality Control Board, Central Valley Region ("RWQCB"). On September 22, 2016, the EPA completed its first five-year remedy review of the Sacramento superfund site. The five-year review required by statute and regulation applies to all remedial actions which result in hazardous substances above levels that allow unlimited use and unrestricted exposure. The Company is working with the EPA to address the findings of the five-year remedy review. The entire southern portion of the site known as Rio Del Oro was under state orders issued in the 1990s from DTSC and the RWQCB to investigate and remediate soil and groundwater contamination. In 2008, the DTSC released all but approximately 400 acres of the Rio Del Oro property from DTSC’s environmental orders regarding soil contamination although the property remains subject to the RWQCB’s orders to investigate and remediate groundwater environmental contamination emanating offsite from the property. As of December 31, 2019 , the estimated range of anticipated costs discussed above for the Sacramento, California site was $203.6 million to $325.8 million and the accrued amount was $203.6 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 9(c) below for further discussion on recoverability. Baldwin Park Operable Unit As a result of its former Azusa, California operations, in 1994, Aerojet Rocketdyne was named a PRP by the EPA in the area of the San Gabriel Valley Basin superfund site known as the BPOU. In 2002, Aerojet Rocketdyne, along with seven other PRPs (the "Cooperating Respondents") signed a project agreement with the San Gabriel Basin Water Quality Authority, the Main San Gabriel Basin Watermaster, and five water companies. The 2002 project agreement terminated in 2017 and the parties executed a project agreement which became operational on May 9, 2017. The agreement has a ten-year term and requires the Cooperating Respondents to fund through an escrow account the ongoing operation, maintenance, and administrative costs of certain treatment and water distribution facilities owned and operated by the water companies. There are also provisions in the project agreement for maintaining financial assurance. Pursuant to the 2017 agreement with the remaining Cooperating Respondents, Aerojet Rocketdyne's current share of future BPOU costs will be approximately 74% . As part of Aerojet Rocketdyne’s sale of its Electronics and Information Systems ("EIS") business to Northrop Grumman Corporation ("Northrop") in October 2001, the EPA approved a prospective purchaser agreement with Northrop to absolve it of pre-closing liability for contamination caused by the Azusa, California operations, which liability remains with Aerojet Rocketdyne. As part of that agreement, the Company agreed to provide a $25 million guarantee of its obligations under the project agreement. As of December 31, 2019 , the estimated range of anticipated costs was $89.6 million to $106.1 million and the accrued amount was $89.6 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 9(c) below for further discussion on recoverability. c. Environmental Reserves and Estimated Recoveries Environmental Reserves The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a fifteen year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the BPOU site are currently estimated through the term of the project agreement, which expires in May 2027. As the period for which estimated environmental remediation costs lengthens, the reliability of such estimates decreases. These estimates consider the investigative work and analysis of engineers, outside environmental consultants, and the advice of legal staff regarding the status and anticipated results of various administrative and legal proceedings. In most cases, only a range of reasonably possible costs can be estimated. In establishing the Company’s reserves, the most probable estimate is used when determinable; otherwise, the minimum amount is used when no single amount in the range is more probable. Accordingly, such estimates can change as the Company periodically evaluates and revises these estimates as new information becomes available. The Company cannot predict whether new information gained as projects progress will affect the estimated liability accrued. The timing of payment for estimated future environmental costs is influenced by a number of factors, such as the regulatory approval process and the time required designing, constructing, and implementing the remedy. The following table summarizes the Company’s environmental reserve activity: Aerojet Aerojet Other Total Other Total (In millions) December 31, 2016 $ 210.1 $ 126.8 $ 8.5 $ 345.4 $ 4.3 $ 349.7 Additions 19.2 3.3 8.0 30.5 0.8 31.3 Expenditures (22.8 ) (13.7 ) (2.8 ) (39.3 ) (0.3 ) (39.6 ) December 31, 2017 206.5 116.4 13.7 336.6 4.8 341.4 Additions 20.1 2.3 0.6 23.0 0.3 23.3 Expenditures (19.2 ) (14.9 ) (1.9 ) (36.0 ) (0.8 ) (36.8 ) December 31, 2018 207.4 103.8 12.4 323.6 4.3 327.9 Additions 17.0 (0.8 ) 0.3 16.5 0.2 16.7 Expenditures (20.8 ) (13.4 ) (0.9 ) (35.1 ) (0.3 ) (35.4 ) December 31, 2019 $ 203.6 $ 89.6 $ 11.8 $ 305.0 $ 4.2 $ 309.2 The effect of the final resolution of environmental matters and the Company’s obligations for environmental remediation and compliance cannot be accurately predicted due to the uncertainty concerning both the amount and timing of future expenditures and due to regulatory or technological changes. The Company continues its efforts to mitigate past and future costs through pursuit of claims for recoveries from insurance coverage and other PRPs and continued investigation of new and more cost effective remediation alternatives and associated technologies. As part of the acquisition of the Atlantic Research Corporation ("ARC") propulsion business in 2003, Aerojet Rocketdyne entered into an agreement with ARC pursuant to which Aerojet Rocketdyne is responsible for up to $20.0 million of costs ("Pre-Close Environmental Costs") associated with environmental issues that arose prior to Aerojet Rocketdyne’s acquisition of the ARC propulsion business. ARC is responsible for any cleanup costs relating to the ARC acquired businesses in excess of $20.0 million . Pursuant to a separate agreement with the U.S. government which was entered into prior to the completion of the ARC acquisition, these costs are recovered through the establishment of prices for Aerojet Rocketdyne’s products and services sold to the U.S. government. The Company reached the $20.0 million cap on cleanup costs in the three months ended March 31, 2017, and expects that additional costs will be incurred due to contamination existing at the time of the acquisition and still requiring remediation and monitoring. On May 6, 2016, ARC informed Aerojet Rocketdyne that it was disputing certain costs that Aerojet Rocketdyne attributed to the $20.0 million Pre-Close Environmental Costs ("ARC Claim"). The Company responded to the ARC Claim on June 23, 2017, and on September 13, 2019, filed a notice of arbitration disputing the ARC Claim. Final settlement of the Pre–Close Environmental Costs will be determined in conjunction with the Company's evaluation and ultimate resolution of the ARC Claim. Estimated Recoveries On January 12, 1999, Aerojet Rocketdyne and the U.S. government reached a settlement agreement ("Global Settlement") covering environmental costs associated with the Company's Sacramento site and its former Azusa site. Pursuant to the Global Settlement, the Company can recover up to 88% of its environmental remediation costs through the establishment of prices for Aerojet Rocketdyne's products and services sold to the U.S. government. Additionally, in conjunction with the sale of the EIS business in 2001, Aerojet Rocketdyne entered into an agreement with Northrop (the "Northrop Agreement") whereby Aerojet Rocketdyne is reimbursed by Northrop for a portion of environmental expenditures eligible for recovery under the Global Settlement, subject to an annual billing limitation of $6.0 million and a cumulative limitation of $189.7 million . The following table summarizes the Northrop Agreement activity (in millions): Total reimbursable costs under the Northrop Agreement $ 189.7 Amount reimbursed to the Company through December 31, 2019 (137.2 ) Receivable from Northrop included in the balance sheet at December 31, 2019 $ 52.5 The cumulative expenditure limitation of $189.7 million under the Northrop Agreement was reached in June 2017. At that time, the Company was uncertain of the allowability and allocability of additional expenditures above that cumulative limitation and therefore did not recognize a recoverable asset for such amounts. In the third quarter of 2018, the Company and the U.S. government reached a determination that these expenditures are reimbursable under the Global Settlement and therefore recorded a one-time benefit of $43.0 million to recognize the recoverability of environmental expenditures at a rate of 88% . Environmental remediation costs are primarily incurred by the Company's Aerospace and Defense segment, and certain of these costs are recoverable from the Company's contracts with the U.S. government. The Company currently estimates approximately 12% of its future Aerospace and Defense segment environmental remediation costs will not likely be reimbursable and are expensed. Allowable environmental remediation costs are charged to the Company’s contracts with the U.S. government as the costs are incurred. Because these costs are recovered through forward-pricing arrangements, the ability of Aerojet Rocketdyne to continue recovering these costs from the U.S. government depends on Aerojet Rocketdyne’s sustained business volume from U.S. government contracts and programs. While the Company is currently seeking an arrangement with the U.S. government to recover environmental expenditures in excess of the reimbursement ceiling identified in the Global Settlement, there can be no assurances that such a recovery will be obtained, or if not obtained, that such unreimbursed environmental expenditures will not have a materially adverse effect on the Company’s operating results, financial condition, and/or cash flows. Environmental reserves and estimated recoveries impact on the consolidated statements of operations The following table summarizes the financial information for the impact of environmental reserves and recoveries to the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (In millions) Expense (benefit) to consolidated statement of operations $ 2.1 $ (36.9 ) $ 8.2 As of December 31, 2019 , arrangements with off-balance sheet risk consisted of: • $29.7 million in outstanding commercial letters of credit, the majority of which may be renewed, primarily to collateralize obligations for environmental remediation and insurance coverage. • $53.9 million in outstanding surety bonds to primarily satisfy indemnification obligations for environmental remediation coverage. • Up to $120.0 million aggregate in guarantees by the Company of Aerojet Rocketdyne’s obligations to U.S. government agencies for environmental remediation activities. • Guarantees, jointly and severally, by the Company’s material domestic subsidiaries of their obligations under the Senior Credit Facility. In addition to the items discussed above, the Company has and will from time to time enter into certain types of contracts that require the Company to indemnify parties against potential third-party and other claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnification to purchasers of its businesses or assets including, for example, claims arising from the operation of the businesses prior to disposition, and liability to investigate and remediate environmental contamination existing prior to disposition; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for claims arising from the use of the applicable premises; and (iii) certain agreements with officers and directors, under which the Company may be required to indemnify such persons for liabilities arising out of their relationship with the Company. The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Additionally, the Company has open purchase orders and other commitments to suppliers, subcontractors, and other outsourcing partners for equipment, materials, and supplies in the normal course of business. These amounts are based on volumes consistent with anticipated requirements to fulfill purchase orders or contracts for product deliveries received, or expected to be received, from customers. A substantial portion of these amounts are recoverable through the Company's contracts with the U.S. government. The Company provides product warranties in conjunction with certain product sales. The majority of the Company’s warranties are a one |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Shareholders' Equity | Stockholders’ Equity a. Preferred Stock As of December 31, 2019 and 2018 , 15.0 million shares of preferred stock were authorized and none were issued or outstanding. b. Common Stock As of December 31, 2019 , the Company had 150.0 million authorized shares of common stock, par value $0.10 per share, of which 77.3 million shares were issued and outstanding, and 21.5 million shares were reserved for future issuance for the exercise of stock options ( seven year contractual life) and restricted stock (no maximum contractual life), payment of awards under stock-based compensation plans, and conversion of the Company’s convertible debt. c. Treasury Stock As of December 31, 2019 and 2018, the Company had 0.8 million of its common shares classified as treasury stock. On September 10, 2018, the Company made a discretionary contribution of 2.7 million treasury stock, or $95.0 million , of its common stock to the Aerojet Rocketdyne Master Retirement Trust, which is a trust maintained in connection with the Aerojet Rocketdyne (GenCorp) Consolidated Pension Plan. Treasury stock is stated at cost (first-in, first-out basis). The Company reflects stock repurchases in its financial statements on a "settlement" basis. d. Stock-based Compensation The following table summarizes stock-based compensation expense by type of award: Year Ended December 31, 2019 2018 2017 (In millions) SARs $ 11.4 $ 6.2 $ 9.3 Restricted stock, service based 5.2 4.5 4.1 Restricted stock, performance based 9.4 9.1 6.8 Employee stock purchase plan ("ESPP") 0.9 0.6 0.6 Stock options 0.4 0.1 1.2 Total stock-based compensation expense $ 27.3 $ 20.5 $ 22.0 Stock Appreciation Rights: As of December 31, 2019 , a total of 1.2 million SARs were outstanding. SARs granted to employees generally vest in one-third increments at one year, two years, and three years from the date of grant and have a seven year contractual life. SARs granted to directors of the Company typically vest over a one year service period (half after six months and half after one year) and have a seven year contractual life. These awards are similar to the Company’s employee stock options, but are settled in cash rather than in shares of common stock, and are classified as liability awards. Compensation cost for these awards is determined using a fair-value method and remeasured at each reporting date until the date of settlement. The following table summarizes the status of the Company’s SARs: SARs Weighted Weighted Aggregate Outstanding at December 31, 2018 1.1 $ 21.15 Granted 0.4 37.26 Exercised (0.2 ) 12.95 Canceled (0.1 ) 26.54 Outstanding at December 31, 2019 1.2 $ 27.32 4.9 $ 22.2 Exercisable at December 31, 2019 0.2 $ 15.77 3.0 $ 7.0 Expected to vest at December 31, 2019 1.0 $ 30.10 5.3 $ 15.2 The weighted average grant date fair value for SARs granted in 2018 and 2017 was $27.53 and $22.35 , respectively. The total intrinsic value for SARs liabilities paid in 2019, 2018, and 2017 was $4.3 million , $3.5 million , and $4.9 million , respectively. As of December 31, 2019 , there was $9.1 million of unrecognized stock-based compensation related to nonvested SARs that is expected to be recognized over an estimated weighted-average amortization period of twenty-one months . Restricted Stock, service-based: As of December 31, 2019 , a total of 0.3 million shares of service-based restricted stock were outstanding which vest based on years of service. Restricted shares are granted to key employees and directors of the Company. The fair value of the restricted stock awards was based on the closing market price of the Company’s common stock on the date of award and is being amortized on a straight line basis over the service period. The following table summarizes the status of the Company’s service-based restricted stock: Service Weighted Outstanding at December 31, 2018 0.3 $ 24.76 Granted 0.2 40.70 Exercised (0.2 ) 22.52 Outstanding and expected to vest at December 31, 2019 0.3 $ 36.33 As of December 31, 2019 , there was $7.9 million of unrecognized stock-based compensation related to nonvested service-based restricted stock that is expected to be recognized over an estimated weighted-average amortization period of twenty-two months . At December 31, 2019 , the intrinsic value of the service-based restricted stock outstanding and expected to vest was $14.4 million . The weighted average grant date fair values for service-based restricted stock granted in 2018 and 2017 was $29.74 and $24.98 , respectively. Restricted Stock, performance-based Company metrics: As of December 31, 2019 , a total of 1.0 million shares of performance-based restricted shares were outstanding. The performance-based restricted stock vests if the Company meets various operations and earnings targets set by the Organization & Compensation Committee of the Board of Directors. The fair value of the performance-based restricted stock awards was based on the closing market price of the Company’s common stock on the date of award and is being amortized over the estimated service period to achieve the operations and earnings targets. The following table summarizes the status of the Company’s performance-based restricted stock: Performance Weighted Outstanding at December 31, 2018 1.2 $ 22.05 Granted 0.3 37.27 Exercised (0.4 ) 18.29 Canceled (0.1 ) 23.76 Outstanding at December 31, 2019 1.0 $ 29.41 Expected to vest at December 31, 2019 0.8 $ 28.69 As of December 31, 2019 , there was $8.3 million of unrecognized stock-based compensation related to nonvested performance-based restricted stock that is expected to be recognized over an estimated weighted-average amortization period of fifteen months . At December 31, 2019 , the intrinsic value of the performance-based restricted stock outstanding was $47.1 million and the intrinsic value of the performance-based restricted stock expected to vest was $36.5 million . The weighted average grant date fair values for performance-based restricted stock granted in 2018 and 2017 was $26.36 and $22.35 , respectively. Employee Stock Purchase Plan: The ESPP enables eligible employees the opportunity to purchase the Company’s common stock at a price not less than 85% of the fair market value of the common stock on the last day of the respective offering period. A maximum of 1.5 million shares are authorized for issuance. During 2019, 0.1 million shares were issued under the ESPP at an average price of $45.25 . During 2018, 0.1 million shares were issued under the ESPP at an average price of $32.11 . During 2017, 0.1 million shares were issued under the ESPP at an average price of $25.43 per share. Stock Options: As of December 31, 2019 , a total of 0.4 million stock options were outstanding. The following table summarizes the status of the Company’s stock options: Stock Weighted Weighted Intrinsic Outstanding at December 31, 2018 0.3 $ 18.82 Granted 0.1 37.25 Outstanding at December 31, 2019 0.4 $ 23.11 3.7 $ 9.2 Exercisable at December 31, 2019 0.3 $ 19.07 3.0 $ 8.5 Expected to vest at December 31, 2019 0.1 $ 37.25 6.2 $ 0.7 The total intrinsic value for options exercised in 2019, 2018, and 2017 was $0.8 million , $0.9 million , and $2.9 million , respectively. The fair value of the stock option grant in 2019 was estimated using a Black-Scholes model with an expected life of seven years , volatility of 33.48% , and a risk-free rate of 2.62% . The Company did not grant stock options in 2018 and 2017. The following table summarizes the range of exercise prices and weighted-average exercise prices for options outstanding as of December 31, 2019 , under the Company’s stock option plans: Outstanding Year Granted Range of Exercise Prices Stock Weighted Weighted 2015 $23.06 0.1 $ 23.06 2.2 2016 $18.01 0.2 $ 18.01 3.6 2019 $37.25 0.1 $ 37.25 6.2 0.4 Common Shares, performance-based : In February 2018, the Company granted senior executives 0.1 million performance-based common shares that vest according to the attainment of share prices ranging from $34.00 per share to $42.00 per share of the Company's stock. The performance-based common shares were valued at a weighted average price of $18.67 using a Monte Carlo model. The Company recognized the grant-date fair value of these awards as stock-based compensation expense ratably over the estimated vesting period based on the number of awards expected to vest at each reporting date or earlier if the market condition was satisfied. All of the performance based awards have vested as a result of the attainment of the share prices ranging from $34.00 per share to $42.00 per share of the Company's stock. The following table presents the weighted average assumptions used to value the awards for 2018: Performance- based common shares Expected life (in years) 1.25 Volatility 31.52 % Risk-free interest rate 2.65 % Dividend yield — % Valuation Assumptions: The following table presents the weighted average assumptions used to value the SARs: Year Ended December 31, 2019 2018 2017 Expected life (in years) 4.9 4.9 4.8 Volatility 34.79 % 35.10 % 34.00 % Risk-free interest rate 1.69 % 2.51 % 2.23 % Dividend yield — % — % — % Expected Term: The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards and vesting schedules. Expected Volatility: The fair value of stock-based payments was determined using the Black-Scholes model with a volatility factor based on the Company’s historical stock prices. The range of expected volatility used in the Black-Scholes model was 22.73% to 36.41% as of December 31, 2019 . Risk-Free Interest Rate: The Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. The range of risk-free interest rates used in the Black-Scholes model was 1.54% to 1.83% as of December 31, 2019 |
Operating Segments and Related
Operating Segments and Related Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Disclosures | Operating Segments and Related Disclosures The Company’s operations are organized into two operating segments based on different products and customer bases: Aerospace and Defense, and Real Estate. Sales to significant customers and other concentrations information is presented in Note 1(v). The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (see Note 1). The Company evaluates its operating segments based on several factors, of which the primary financial measure is segment performance. Segment performance represents net sales less applicable costs, expenses and unusual items relating to the segment operations. Segment performance excludes corporate income and expenses, unusual items not related to the segment operations, interest expense, interest income, and income taxes. The following table presents selected financial information for each reportable segment: Year Ended December 31, 2019 2018 2017 (In millions) Net Sales: Aerospace and Defense $ 1,974.0 $ 1,888.1 $ 1,870.8 Real Estate 7.5 7.8 6.4 Total Net Sales $ 1,981.5 $ 1,895.9 $ 1,877.2 Segment Performance: Aerospace and Defense $ 249.1 $ 233.4 $ 200.4 Environmental remediation provision adjustments (1.9 ) 37.2 (7.5 ) GAAP/CAS retirement benefits expense difference 22.4 (6.0 ) (17.0 ) Unusual items (0.3 ) — 2.0 Aerospace and Defense Total 269.3 264.6 177.9 Real Estate 2.1 2.8 2.5 Total Segment Performance $ 271.4 $ 267.4 $ 180.4 Reconciliation of segment performance to income before income taxes: Segment performance $ 271.4 $ 267.4 $ 180.4 Interest expense (35.7 ) (34.4 ) (30.9 ) Interest income 15.5 10.0 3.5 Stock-based compensation (27.3 ) (20.5 ) (22.0 ) Corporate retirement benefits expense (7.2 ) (13.4 ) (20.0 ) Corporate and other (24.8 ) (20.3 ) (23.1 ) Unusual items — (0.2 ) (1.0 ) Income before income taxes $ 191.9 $ 188.6 $ 86.9 Aerospace and Defense $ 42.9 $ 42.2 $ 29.3 Real Estate — — — Corporate — 1.0 0.1 Capital Expenditures $ 42.9 $ 43.2 $ 29.4 Aerospace and Defense $ 72.9 $ 71.1 $ 71.6 Real Estate 1.2 0.9 0.7 Corporate 0.4 0.3 0.3 Depreciation and Amortization $ 74.5 $ 72.3 $ 72.6 As of December 31, 2019 2018 (In millions) Assets: Aerospace and Defense $ 1,515.1 $ 1,551.7 Real Estate 132.8 128.4 Operating segment assets 1,647.9 1,680.1 Corporate 1,059.9 810.0 Total Assets $ 2,707.8 $ 2,490.1 |
Cost Reduction Plans
Cost Reduction Plans | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Cost Reduction Plans | Cost Reduction Plans During 2015, the Company initiated the first phase ("Phase I") of the competitive improvement program (the "CIP") comprised of activities and initiatives aimed at reducing costs in order for the Company to continue to compete successfully. Phase I was comprised of three major components: (i) facilities optimization and footprint reduction; (ii) product affordability; and (iii) reduced administrative and overhead costs. In 2017, the Board of Directors approved the second phase ("Phase II") of the CIP. Pursuant to Phase II, the Company expanded its CIP and further consolidated its Sacramento, California, and Gainesville, Virginia sites, while it centralized and expanded its existing presence in Huntsville, Alabama. The Company currently estimates that it will incur restructuring and related costs of the Phase I and II programs of approximately $197.0 million (including approximately $60.5 million of capital expenditures). The Company has incurred $170.4 million of such costs through December 31, 2019 , including $53.5 million in capital expenditures. The following table summarizes the Company's severance and retention liabilities related to Phase I and II activity: Severance Retention Total (In millions) December 31, 2016 $ 6.8 $ 2.1 $ 8.9 Accrual 26.1 2.2 28.3 Payments (2.9 ) (0.9 ) (3.8 ) December 31, 2017 30.0 3.4 33.4 Accrual 0.2 5.7 5.9 Payments (12.1 ) (4.0 ) (16.1 ) December 31, 2018 18.1 5.1 23.2 Accrual — 5.5 5.5 Payments (12.9 ) (6.0 ) (18.9 ) December 31, 2019 $ 5.2 $ 4.6 $ 9.8 The costs associated with the CIP are included as a component of the Company’s U.S. government forward-pricing rates, and therefore, are recovered through the pricing of the Company’s products and services to the U.S. government. In addition to the employee-related CIP obligations, the Company incurred non-cash accelerated depreciation expense of $0.9 million , $1.3 million and $3.9 million |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) First Second Third Fourth (In millions, except per share amounts) 2019 Net sales $ 491.7 $ 485.0 $ 481.8 $ 523.0 Cost of sales (exclusive of items shown separately on Statement of Operations) 397.6 379.6 392.9 443.5 Income before income taxes 51.8 59.4 43.5 37.2 Net income 38.7 44.1 32.9 25.3 Basic EPS 0.49 0.56 0.42 0.32 Diluted EPS 0.47 0.54 0.39 0.30 First Second Third Fourth (In millions, except per share amounts) 2018 Net sales $ 492.0 $ 467.2 $ 498.8 $ 437.9 Cost of sales (exclusive of items shown separately on Statement of Operations) 426.8 369.5 400.7 352.4 Income before income taxes 18.7 47.3 87.6 35.0 Net income 14.0 34.8 65.0 23.5 Basic EPS 0.19 0.46 0.85 0.30 Diluted EPS 0.18 0.45 0.82 0.29 |
Unusual Items
Unusual Items | 12 Months Ended |
Dec. 31, 2019 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Unusual Items | Unusual Items The following table presents total unusual items, comprised of a component of other expense (income), net in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (In millions) Aerospace and Defense: Gain on legal matters $ — $ — $ (2.0 ) Acquisition costs 0.3 — — Aerospace and defense unusual items 0.3 — (2.0 ) Corporate: Acquisition costs — — 1.0 Loss on bank amendment — 0.2 — Corporate unusual items — 0.2 1.0 Total unusual items $ 0.3 $ 0.2 $ (1.0 ) |
Adoption of Revenue Recognition
Adoption of Revenue Recognition Guidance | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Adoption of Revenue Recognition Guidance | Adoption of Revenue Recognition Guidance The Company adopted the new revenue recognition guidance effective January 1, 2018, using the modified retrospective method, with the cumulative effect recognized as of January 1, 2018. The primary impact of the new guidance was a change in the timing of revenue recognition on certain long-term contracts in the Company’s Aerospace and Defense segment. The adoption of the new revenue recognition guidance did not impact revenue recognized within the Company's Real Estate segment. The new guidance does not change the total sales or operating income on the related customer contracts, only the timing of when sales and operating income are recognized. Under this new guidance, the Company discontinued the use of the unit-of-delivery revenue recognition method on certain customer contracts and re-measured the performance obligations using the cost-to-cost method. The cumulative favorable impact of the adoption was $37.6 million of net income which was recorded to stockholders' equity. The following tables summarize the effect of adoption of the new revenue recognition standard on the Company’s consolidated financial statements for 2018. Condensed Consolidated Statement of Operations Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions, except per share amounts) Net sales $ 1,895.9 $ 14.1 $ 1,910.0 Operating costs and expenses: Cost of sales (exclusive of items shown separately below) 1,549.4 27.2 1,576.6 Selling, general and administrative expense 43.8 — 43.8 Depreciation and amortization 72.3 — 72.3 Other income, net (40.2 ) — (40.2 ) Total operating costs and expenses 1,625.3 27.2 1,652.5 Operating income 270.6 (13.1 ) 257.5 Total non-operating expense, net 82.0 — 82.0 Income before income taxes 188.6 (13.1 ) 175.5 Income tax provision 51.3 (3.5 ) 47.8 Net income $ 137.3 $ (9.6 ) $ 127.7 Earnings per share of common stock Basic earnings (loss) per share $ 1.80 $ (0.13 ) $ 1.67 Diluted earnings (loss) per share $ 1.75 $ (0.12 ) $ 1.63 Weighted average shares of common stock outstanding, basic 74.8 — 74.8 Weighted average shares of common stock outstanding, diluted 76.8 — 76.8 Condensed Consolidated Statement of Comprehensive Income Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) Net income $ 137.3 $ (9.6 ) $ 127.7 Other comprehensive income: Actuarial losses and amortization of actuarial losses, net of income taxes 33.2 — 33.2 Comprehensive income $ 170.5 $ (9.6 ) $ 160.9 Condensed Consolidated Balance Sheet As of December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) ASSETS Current Assets Cash and cash equivalents $ 735.3 $ — $ 735.3 Restricted cash 5.0 — 5.0 Accounts receivable, net 141.2 (86.5 ) 54.7 Contract assets 235.1 21.3 256.4 Other current assets, net 117.7 (2.0 ) 115.7 Total Current Assets 1,234.3 (67.2 ) 1,167.1 Noncurrent Assets Property, plant and equipment, net 399.7 — 399.7 Recoverable environmental remediation costs 251.1 — 251.1 Deferred income taxes 116.9 (20.5 ) 96.4 Goodwill 161.3 — 161.3 Intangible assets 71.8 — 71.8 Other noncurrent assets, net 255.0 — 255.0 Total Noncurrent Assets 1,255.8 (20.5 ) 1,235.3 Total Assets $ 2,490.1 $ (87.7 ) $ 2,402.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ 273.1 $ — $ 273.1 Accounts payable 88.7 — 88.7 Reserves for environmental remediation costs 39.8 — 39.8 Contract liabilities 272.6 (8.8 ) 263.8 Other current liabilities 204.1 (31.7 ) 172.4 Total Current Liabilities 878.3 (40.5 ) 837.8 Total Noncurrent Liabilities 1,190.5 — 1,190.5 Total Liabilities 2,068.8 (40.5 ) 2,028.3 Commitments and contingencies (Note 9) Total Stockholders’ Equity 421.3 (47.2 ) 374.1 Total Liabilities and Stockholders’ Equity $ 2,490.1 $ (87.7 ) $ 2,402.4 Condensed Consolidated Statement of Cash Flows Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) Operating Activities Net income $ 137.3 $ (9.6 ) $ 127.7 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 72.3 — 72.3 Amortization of debt discount and deferred financing costs 8.9 — 8.9 Stock-based compensation 20.5 — 20.5 Retirement benefits, net 15.9 — 15.9 Other, net (2.2 ) — (2.2 ) Changes in assets and liabilities: Accounts receivable, net (47.3 ) 57.1 9.8 Contract assets 10.5 1.2 11.7 Other current assets, net 21.5 (8.1 ) 13.4 Recoverable environmental remediation costs (20.0 ) — (20.0 ) Other noncurrent assets 5.8 — 5.8 Accounts payable (39.4 ) — (39.4 ) Contract liabilities 29.2 (42.2 ) (13.0 ) Other current liabilities 40.9 (31.8 ) 9.1 Deferred income taxes 4.7 33.4 38.1 Reserves for environmental remediation costs (13.5 ) — (13.5 ) Other noncurrent liabilities and other 7.6 — 7.6 Net Cash Provided by Operating Activities 252.7 — 252.7 Investing Activities Net Cash Used in Investing Activities (20.9 ) — (20.9 ) Financing Activities Net Cash Used in Financing Activities (26.5 ) — (26.5 ) Net Increase in Cash, Cash Equivalents and Restricted Cash 205.3 — 205.3 Cash, Cash Equivalents and Restricted Cash at Beginning of Year 535.0 — 535.0 Cash, Cash Equivalents and Restricted Cash at End of Year $ 740.3 $ — $ 740.3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | The consolidated financial statements of Aerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") include the accounts of the Company and its 100% owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to financial information for prior years to conform to the current year’s presentation. |
Segments | The Company’s operations are organized into two segments: Aerospace and Defense — includes the operations of the Company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. ("Aerojet Rocketdyne"), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States ("U.S.") government, including the Department of Defense ("DoD"), the National Aeronautics and Space Administration ("NASA"), and major aerospace and defense prime contractors. Real Estate — includes the activities of the Company’s wholly-owned subsidiary Easton Development Company, LLC ("Easton") related to the re-zoning, entitlement, sale, and leasing of the Company’s excess real estate assets. |
Fiscal Period | The year of the Company's subsidiary, Aerojet Rocketdyne, ends on the last Saturday in December. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid debt instruments purchased with a remaining maturity at the date of purchase of three months or less are considered to be cash equivalents. The Company aggregates its cash balances by bank, and reclassifies any negative balances, if applicable, to other current liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments are classified using a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities. |
Accounts Receivable, net | Accounts Receivable, net Accounts Receivable represent the Company's unconditional right to consideration under the contract and include amounts billed and currently due from long-term contract customers. The amounts are stated at their net estimated realizable value. |
Inventories | Inventories Inventories are stated at cost (generally using the average cost method) or net realizable value. The Company capitalizes costs incurred in advance of contract award or funding in inventories if it determines that contract award or funding is probable. Amounts previously capitalized are expensed when changes in facts and circumstances indicate that a contract award or funding is no longer probable. |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return with its 100% owned consolidated subsidiaries. The deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the period of the enactment date of the change. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Refurbishment costs that extend the life or increase the value of an asset are capitalized in the property accounts, whereas ordinary maintenance and repair costs are expensed as incurred. Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities. Finance leases are included in property, plant and equipment and debt. Operating ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense related to finance leases is included in depreciation and amortization expense. For certain technology equipment leases, the Company accounts for lease and nonlease (service) components separately based on a relative fair market value basis. For all other leases, the Company accounts for the lease and nonlease components (e.g., common area maintenance) on a combined basis. |
Real Estate Held for Entitlement and Leasing | Real Estate Held for Entitlement and Leasing The Company capitalizes all costs associated with the real estate entitlement and leasing process. The Company classifies activities related to the entitlement, sale, and leasing of its excess real estate assets as operating activities in the consolidated statements of cash flows. Real estate held for entitlement and leasing is included as a component of other noncurrent assets. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired enterprise or assets over the fair values of the identifiable assets acquired and liabilities assumed. All of the Company's recorded goodwill resides in the Aerospace and Defense reporting unit. Tests for impairment of goodwill are performed on an annual basis, or at any other time if events occur or circumstances indicate that the carrying amount of goodwill may not be recoverable. Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; adverse cash flow trends; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; decline in stock price; and results of testing for recoverability of a significant asset group within a reporting unit. The Company evaluates qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is necessary to perform the first step of the goodwill test. This step is referred to as the "Step Zero" analysis. If it is determined that it is more likely than not (a likelihood of more than 50% ) that the fair value of a reporting unit is less than its carrying amount, the Company will proceed to the quantitative ("Step One") analysis to determine the existence and amount of any goodwill impairment. The Company may also perform a Step One analysis from time to time to augment its qualitative assessment. The Company evaluated goodwill using a Step Zero analysis as of October 1, 2019, and determined that goodwill was not impaired. The Company evaluated goodwill using a Step One analysis as of October 1, 2018, and determined that goodwill was not impaired. |
Intangible Assets | Intangible Assets Identifiable intangible assets, such as patents, trademarks, and licenses are recorded at cost or when acquired as part of a business combination at estimated fair value. Identifiable intangible assets are amortized based on when they provide the Company economic benefit, or using the straight-line method, over their estimated useful life. Amortization periods for identifiable intangible assets range from 7 years to 30 years . |
Environmental Remediation | Environmental Remediation The Company expenses, on a current basis, recurring costs associated with managing hazardous substances and contamination in ongoing operations. The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a fifteen-year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the Baldwin Park Operable Unit ("BPOU") site are currently estimated through the term of the project agreement, which expires in May 2027. In establishing reserves, the most probable estimated amount is used when determinable, and the minimum amount is used when no single amount in the range is more probable. Environmental reserves include the costs of completing remedial investigation and feasibility studies, remedial and corrective actions, regulatory oversight costs, the cost of operation and maintenance of the remedial action plan, and employee compensation costs for employees who are expected to devote a significant amount of time to remediation efforts. Calculation of environmental reserves is based on the evaluation of currently available information with respect to each individual environmental site and considers factors such as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. Such estimates are based on the expected costs of investigation and remediation and the likelihood that other potentially responsible parties will be able to fulfill their commitments at sites where the Company may be jointly or severally liable. |
Retirement Benefits | Retirement Benefits The Company discontinued future benefit accruals for the defined benefit pension plans in 2009. The Company provides medical and life insurance benefits ("postretirement benefits") to certain eligible retired employees, with varied coverage by employee group. Annual charges are made for the cost of the plans, including interest costs on benefit obligations, and net amortization and deferrals, increased or reduced by the return on assets. The Company also sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees |
Conditional Asset Retirement Obligations | Conditional Asset Retirement Obligations Conditional asset retirement obligations ("CAROs") are legal obligations associated with the retirement of long-lived assets. These liabilities are initially recorded at fair value and the expected asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, the Company records period-to-period changes in the CARO liability resulting from the passage of time and revisions to either the timing or the amount of the estimate of the undiscounted cash flows. |
Loss Contingencies | Loss Contingencies The Company is currently involved in certain legal proceedings and has accrued its estimate of the probable costs and recoveries (in relation to environmental costs) for resolution of these claims. These estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations or cash flows for any particular period could be materially affected by changes in estimates or the effectiveness of strategies related to these proceedings. |
Warranties | Warranties The Company provides product warranties in conjunction with certain product sales. The majority of the Company’s warranties are a one |
Revenue Recognition | The Company's contracts are largely categorized as either "fixed-price" (largely used by the U.S. government for production-type contracts) or "cost-reimbursable" (largely used by the U.S. government for development-type contracts). Fixed-price contracts present the risk of unreimbursed cost overruns, potentially resulting in lower than expected contract profits and margins. This risk is generally lower for cost-reimbursable contracts which, as a result, generally have a lower margin. Revenue from real estate asset sales is recognized when a sufficient down-payment has been received, financing has been arranged and title, possession and other attributes of ownership have been transferred to the buyer. The allocation to cost of sales on real estate asset sales is based on a relative fair market value computation of the land sold which includes the basis on the Company’s book value, capitalized entitlement costs, and an estimate of the Company’s continuing financial commitment. In the Company’s Aerospace and Defense segment, the majority of revenue is earned from long-term contracts to design, develop, and manufacture aerospace and defense products for, and provide related services to, the Company’s customers, including the U.S. government and major aerospace and defense prime contractors. Each customer contract defines the Company’s distinct performance obligations and the associated transaction price for each obligation. A contract may contain one or multiple performance obligations. In certain circumstances, multiple contracts with a customer are required to be combined in determining the distinct performance obligation. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price at which the Company would sell the promised good or service separately to the customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin. Contract modifications are routine in the performance of the Company's long-term contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The Company recognizes revenue as each performance obligation is satisfied. The majority of the Company’s aerospace and defense performance obligations are satisfied over time either as the service is provided, or as control transfers to the customer. Transfer of control is evidenced by the Company’s contractual right to payment for work performed to date plus a reasonable profit on contracts with highly customized products that have no alternative use to the Company. The Company measures progress on substantially all its performance obligations using the cost-to-cost method, which the Company believes best depicts the transfer of control of goods and services to the customer. Under the cost-to-cost method, the Company records revenues based upon costs incurred to date relative to the total estimated cost at completion. Contract costs include labor, material, overhead, and general and administrative expenses, as appropriate. Recognition of revenue and profit on long-term contracts requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion for each performance obligation. Due to the nature of the programs, developing the estimated total contract value and total cost at completion for each performance obligation requires the use of significant judgment. The contract value of long-term contracts may include variable consideration, such as incentives, awards, or penalties. The value of variable consideration is generally determined by contracted performance metrics, which may include targets for cost, performance, quality, and schedule. The Company includes variable consideration in the transaction price for the respective performance obligation at either estimated value, or most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company evaluates the contract value and cost estimates for performance obligations at least quarterly and more frequently when circumstances significantly change. Factors considered in estimating the work to be completed include, but are not limited to: labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, warranty costs, volume assumptions, anticipated labor agreements, inflationary trends, schedule and performance delays, availability of funding from the customer, and the recoverability of costs incurred outside the original contract included in any estimates to complete. When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimates has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results. The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Year Ended December 31, 2019 2018 2017 (In millions, except per share amounts) Net favorable effect of the changes in contract estimates on net sales $ 38.6 $ 68.2 $ 33.7 Favorable effect of the changes in contract estimates on income before income taxes 38.4 59.1 37.2 Favorable effect of the changes in contract estimates on net income (loss) 28.2 43.1 22.3 Favorable effect of the changes in contract estimates on basic earnings (loss) per share ("EPS") of common stock 0.36 0.56 0.31 Favorable effect of the changes in contract estimates on diluted EPS 0.34 0.55 0.31 The 2019 net favorable changes in contract estimates on income before income taxes were primarily driven by improved performance and risk retirements on the Terminal High Altitude Area Defense ("THAAD") and Patriot Advanced Capability-3 ("PAC-3") programs. The 2018 net favorable changes in contract estimates on income before income taxes were primarily driven by risk retirements on the THAAD, RS-68, and RL10 programs and favorable overhead rate performance, partially offset by cost growth and performance issues on the Commercial Crew Development program. The 2017 net favorable changes in contract estimates were primarily driven by improved performance on numerous programs as a result of overhead cost reductions and reduced program risks, most notably on the THAAD program, partially offset by cost growth and manufacturing inefficiencies in electric propulsion contracts. |
Research and Development (R&D) | Research and Development ("R&D") Company-funded R&D expenses (reported as a component of cost of sales) were $65.1 million , $46.7 million , and $44.6 million in 2019, 2018, and 2017, respectively. Company-funded R&D expenses include the costs of technical activities that are useful in developing new products, services, processes, or techniques, as well as expenses for technical activities that may significantly improve existing products or processes. These expenses are generally allocated among all contracts and programs in progress under U.S. government contractual arrangements. From time to time, the Company believes it is in its best interests to self-fund and not allocate costs for certain R&D activities to the U.S. government contracts. Customer-funded R&D expenditures, which are funded from U.S. government contracts, totaled $680.5 million , $591.6 million , and $561.1 million |
Stock-based Compensation | Stock-based Compensation The Company recognizes stock-based compensation in the statements of operations at the grant-date fair value of stock awards issued to employees and directors over the vesting period. The Company also grants Stock Appreciation Rights ("SARs") awards which are similar to the Company’s employee stock options, but are settled in cash rather than in shares of common stock, and are classified as liability awards. Compensation cost for these awards is determined using a fair-value method and remeasured at each reporting date until the date of settlement. The Company accounts for forfeitures when they occur for consistency with the U.S. government recovery accounting practice. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Impairment of long-lived assets is recognized when events or circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; or a current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the Company determines that an asset is not recoverable, then the Company would record an impairment charge if the carrying value of the asset exceeds its fair value. |
Concentrations | Credit Risk Aside from investments held in the Company’s retirement benefit plans, financial instruments that could potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and trade receivables. The Company’s cash and cash equivalents are held and managed by recognized financial institutions and are subject to the Company’s investment policy. The investment policy outlines minimum acceptable credit ratings for each type of investment and limits the amount of credit exposure to any one security issue. The Company does not believe significant concentration of credit risk exists with respect to these investments. Dependence on Single Source and Other Third Party Suppliers |
Accounting Pronouncements | Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted the guidance effective January 1, 2018, using the modified retrospective method, with the cumulative effect recognized as of January 1, 2018. All applicable amounts and disclosures for 2018 reflect the impact of adoption. As the Company elected to use the modified retrospective method, prior periods presented have not been restated to reflect the impact of adoption unless otherwise noted (see Note 15). In February 2016, the FASB issued guidance requiring lessees to recognize an ROU asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The new standard allowed for the application of the standard on the adoption date without restatement of prior comparative periods presented or a modified retrospective transition method which required application of the new guidance at the beginning of the earliest comparative period presented. The Company adopted this new standard as of January 1, 2019, without restating prior comparative periods, and elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, did not require reassessment of lease classification. The Company recorded an ROU asset and lease liability for operating leases at adoption of $51.7 million and $56.3 million , respectively (see Note 4). The difference between the ROU asset and lease liability for operating leases was primarily due to previously recorded deferred rents relating to periods prior to January 1, 2019. The Company’s accounting for finance leases remains substantially unchanged. The standard had no impact on the Company's results of operations or cash flows. In February 2018, the FASB issued guidance that permits the reclassification of the income tax effects of the Tax Cuts and Jobs Act ("Tax Act") on items within accumulated other comprehensive loss to retained earnings. The guidance refers to these amounts as "stranded tax effects." The Company has elected to retain the income tax effects of the Tax Act as a component of accumulated other comprehensive loss. Given this election, the adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows. In August 2018, the FASB issued guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance is effective for financial statements issued for fiscal years ending after December 15, 2020. Early adoption is permitted and requires adoption on a retrospective basis to all periods presented. The Company early adopted this guidance as of December 31, 2019, and as this guidance only impacted presentation it did not have an impact on its financial position, results of operations, or cash flows. Recently Issued Accounting Pronouncement In August 2018, the FASB issued guidance requiring a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. This guidance is effective for the Company beginning in the first quarter of 2020 and the Company does not expect adoption will have a material impact on its financial position, results of operations, or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurement as of December 31, 2019 Total Quoted Prices in (In millions) Money market funds $ 626.0 $ 626.0 $ — $ — Registered investment companies 3.7 3.7 — — Commercial paper 99.9 99.9 — Total $ 729.6 $ 629.7 $ 99.9 $ — Fair value measurement as of December 31, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) Money market funds $ 186.3 $ 186.3 $ — $ — Commercial paper 154.7 — 154.7 — Total $ 341.0 $ 186.3 $ 154.7 $ — |
Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt | The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: Fair Value Principal Amount As of December 31, As of December 31, 2019 2018 2019 2018 (In millions) Term loan $ 328.1 $ 345.6 $ 328.1 $ 345.6 2.25% Convertible Senior Notes ("2¼% Notes") 546.0 441.1 300.0 300.0 $ 874.1 $ 786.7 $ 628.1 $ 645.6 |
Schedule of Useful Lives of Property, Plant and Equipment | Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years |
Schedule of Changes in Carrying Amount of Conditional Asset Retirement Obligations | The following table summarizes the changes in the carrying amount of CAROs: Year Ended December 31, 2019 2018 2017 (In millions) Balance at beginning of year $ 46.0 $ 44.0 $ 30.6 Additions and other, net 2.6 (0.5 ) 11.2 Accretion 2.8 2.5 2.2 Balance at end of year $ 51.4 $ 46.0 $ 44.0 |
Summary of Impact of Contracts in Progress on Statement of Operations | Year Ended December 31, 2019 2018 2017 (In millions, except per share amounts) Net favorable effect of the changes in contract estimates on net sales $ 38.6 $ 68.2 $ 33.7 Favorable effect of the changes in contract estimates on income before income taxes 38.4 59.1 37.2 Favorable effect of the changes in contract estimates on net income (loss) 28.2 43.1 22.3 Favorable effect of the changes in contract estimates on basic earnings (loss) per share ("EPS") of common stock 0.36 0.56 0.31 Favorable effect of the changes in contract estimates on diluted EPS 0.34 0.55 0.31 |
Contract with Customer, Asset and Liability | The following table summarizes contract assets and liabilities: As of December 31, 2019 2018 (In millions) Contract assets $ 243.5 $ 278.0 Reserve for overhead rate disallowance (19.4 ) (42.9 ) Contract assets, net of reserve 224.1 235.1 Contract liabilities 262.3 272.6 Net contract liabilities, net of reserve $ (38.2 ) $ (37.5 ) |
Schedules of Percentage of Net Sales for Significant Programs | The following table summarizes the percentages of net sales by contract type: Year Ended December 31, 2019 2018 2017 Fixed-price 61 % 63 % 64 % Cost-reimbursable 39 37 36 Year Ended December 31, 2019 2018 2017 U.S. government 96 % 94 % 92 % Non U.S. government customers 4 6 8 The following table summarizes the percentages of net sales for significant programs, all of which are included in the U.S. government sales and are comprised of multiple contracts: Year Ended December 31, 2019 2018 2017 RS-25 program 17 % 14 % 14 % Standard Missile program 13 13 9 THAAD program 10 11 9 PAC-3 program 10 8 5 |
Schedule of Customers that Represented More than 10% of Net Sales | The following table summarizes the customers that represented more than 10% of net sales, each of which involves sales of several product lines and programs: Year Ended December 31, 2019 2018 2017 Lockheed Martin Corporation ("Lockheed Martin") 33 % 30 % 24 % NASA 21 18 17 Raytheon Company ("Raytheon") 17 19 17 ULA 10 17 22 |
Schedule of Customers that Represented More than 10% of Accounts Receivable | The following table summarizes customers that represented more than 10% of accounts receivable, including unbilled receivables which are a component of contract assets: As of December 31, 2019 2018 Lockheed Martin 26 % 18 % Raytheon 21 29 The Boeing Company 18 17 NASA 14 10 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted (Loss) Income Per Share of Common Stock | The following table reconciles the numerator and denominator used to calculate basic and diluted EPS: Year Ended December 31, 2019 2018 2017 (In millions, except per share amounts) Numerator: Net income (loss) $ 141.0 $ 137.3 $ (9.2 ) Income allocated to participating securities (2.6 ) (2.9 ) — Net income (loss) for basic and diluted EPS $ 138.4 $ 134.4 $ (9.2 ) Denominator: Basic weighted average shares 77.2 74.8 73.0 Effect of: 2 1 / 4 % Notes 4.4 1.9 — Employee stock options and stock purchase plan 0.1 0.1 — Diluted weighted average shares 81.7 76.8 73.0 Basic EPS $ 1.79 $ 1.80 $ (0.13 ) Diluted EPS $ 1.69 $ 1.75 $ (0.13 ) |
Schedule of Potentially Dilutive Securities Excluded from Computation | The following table sets forth the potentially dilutive securities excluded from the computation because their effect would have been anti-dilutive: Year Ended December 31, 2019 2018 2017 (In millions) 4 1 / 16 % Convertible Subordinated Debentures — — 0.1 Employee stock options and stock purchase plan — — 0.1 Unvested restricted shares 1.4 1.5 1.6 Total potentially dilutive securities 1.4 1.5 1.8 |
Balance Sheet Accounts and Su_2
Balance Sheet Accounts and Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Short-term Available-for-sale Investments | The following table summarizes short-term available-for-sale investments as of December 31, 2019 : Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Commercial paper $ 99.9 $ — $ — $ 99.9 Marketable securities $ 99.9 $ — $ — $ 99.9 The following table summarizes short-term available-for-sale investments as of December 31, 2018: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (In millions) Commercial paper $ 154.7 $ — $ — $ 154.7 Marketable securities $ 154.7 $ — $ — $ 154.7 |
Schedule of Accounts Receivable | As of December 31, 2019 2018 (In millions) Billed $ 122.9 $ 147.3 Reserve on billed trade receivables (10.6 ) (6.6 ) Other trade receivables 0.2 0.5 Accounts receivable, net $ 112.5 $ 141.2 |
Schedule of Other Current Assets, net | As of December 31, 2019 2018 (In millions) Deferred costs recoverable from the U.S. government $ 47.1 $ 52.6 Income tax receivable 43.4 14.9 Prepaid expenses 13.9 14.4 Inventories 24.0 14.9 Other 17.4 20.9 Other current assets, net $ 145.8 $ 117.7 |
Schedule of Property, Plant and Equipment, net | As of December 31, 2019 2018 (In millions) Land $ 71.2 $ 71.2 Buildings and improvements 434.9 408.6 Machinery and equipment, including capitalized software 488.2 499.5 Construction-in-progress 70.2 63.1 1,064.5 1,042.4 Less: accumulated depreciation (654.6 ) (642.7 ) Property, plant and equipment, net $ 409.9 $ 399.7 |
Schedule of Intangible Assets | As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 65.9 $ 21.3 Intellectual property\trade secrets 34.2 17.1 17.1 Trade name 21.0 4.6 16.4 Acquired technology 19.2 15.8 3.4 Intangible assets $ 161.6 $ 103.4 $ 58.2 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 56.4 $ 30.8 Intellectual property\trade secrets 34.2 14.5 19.7 Trade name 21.0 3.9 17.1 Acquired technology 19.2 15.0 4.2 Intangible assets $ 161.6 $ 89.8 $ 71.8 |
Schedule of Future Amortization Expense for Intangible Assets | Future amortization expense for the five succeeding years is estimated to be as follows: Year Ending December 31, Future Amortization Expense (In millions) 2020 $ 13.4 2021 9.9 2022 6.6 2023 6.1 2024 4.8 $ 40.8 |
Schedule of Other Noncurrent Assets, net | As of December 31, 2019 2018 (In millions) Real estate held for entitlement and leasing $ 100.3 $ 96.3 Receivable from Northrop Grumman Corporation for environmental remediation costs 46.5 52.5 Deferred costs recoverable from the U.S. government 54.8 56.4 Other 54.0 49.8 Other noncurrent assets, net $ 255.6 $ 255.0 |
Schedule of Other Current Liabilities | As of December 31, 2019 2018 (In millions) Accrued compensation and employee benefits $ 103.1 $ 116.4 Income taxes payable — 19.8 Other 52.4 67.9 Other current liabilities $ 155.5 $ 204.1 |
Schedule of Accumulated Other Comprehensive Loss, Net of Income Taxes | The following table presents the changes in accumulated other comprehensive loss by components, net of income taxes: Actuarial Prior Service Credits (Costs), Net Total (In millions) December 31, 2017 $ (272.7 ) $ 0.1 $ (272.6 ) Actuarial losses, net of income taxes (16.4 ) — (16.4 ) Amortization of net actuarial losses and prior service credits, net of income taxes 49.7 (0.1 ) 49.6 December 31, 2018 (239.4 ) — (239.4 ) Actuarial losses, net of income taxes (26.5 ) — (26.5 ) Amortization of net actuarial losses and prior service credits, net of income taxes 29.5 (0.1 ) 29.4 December 31, 2019 $ (236.4 ) $ (0.1 ) $ (236.5 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Current assets $ 12.0 Property, plant and equipment 1.9 Total tangible assets acquired 13.9 Intangible assets acquired 4.8 Deferred income taxes 0.3 Total assets acquired 19.0 Liabilities assumed, current (5.2 ) Total identifiable net assets acquired 13.8 Goodwill (consideration less total identifiable net assets acquired) $ 3.2 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the estimated fair value of Coleman's intangible assets acquired: Gross Carrying Amount (in millions) Amortization Period (years) Trade name $ 0.5 8 Customer related 3.4 7 Acquired technology 0.9 10 Total intangible assets $ 4.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Cost | The following table summarizes the Company's lease costs: Year Ended December 31, 2019 (In millions) Operating lease cost $ 14.2 Finance lease cost: Amortization 4.0 Interest on lease liabilities 2.9 Short-term lease cost 0.8 Total lease costs $ 21.9 The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 14.2 Operating cash flows for finance leases 2.9 Financing cash flows for finance leases 3.3 Assets obtained in exchange for lease obligations: Operating leases 7.7 Finance leases 23.8 |
Lease Assets and Liabilities | The following table summarizes the supplemental balance sheet information related to leases: December 31, 2019 (In millions) Operating leases: Operating lease right-of-use assets $ 48.0 Operating lease liabilities (component of other current liabilities) $ 12.0 Operating lease liabilities, noncurrent 39.1 $ 51.1 Finance leases: Property, plant and equipment $ 52.9 Accumulated depreciation (5.8 ) Property, plant and equipment, net $ 47.1 Current portion of long-term debt $ 2.1 Long-term debt 45.6 Total finance lease liability $ 47.7 Weighted-average remaining lease term (in years): Operating leases 6 Finance leases 18 Weighted-average discount rate: Operating leases 4.7 % Finance leases 5.2 % |
Finance Lease Maturity Schedule | The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2019 : Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2020 $ 14.2 $ 4.9 $ 1.1 2021 13.2 4.7 1.6 2022 10.9 4.1 1.5 2023 5.5 3.7 1.0 2024 1.9 3.8 0.9 Thereafter 13.5 57.5 6.4 Total minimum rentals 59.2 78.7 12.5 Less: imputed interest (8.1 ) (31.0 ) — Total $ 51.1 $ 47.7 $ 12.5 |
Operating Lease Maturity Schedule | The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2019 : Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2020 $ 14.2 $ 4.9 $ 1.1 2021 13.2 4.7 1.6 2022 10.9 4.1 1.5 2023 5.5 3.7 1.0 2024 1.9 3.8 0.9 Thereafter 13.5 57.5 6.4 Total minimum rentals 59.2 78.7 12.5 Less: imputed interest (8.1 ) (31.0 ) — Total $ 51.1 $ 47.7 $ 12.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Company's Income Tax Provision (Benefit) from Continuing Operations | The following table presents the components of the Company’s income tax provision: Year Ended December 31, 2019 2018 2017 (In millions) Current U.S. federal $ 45.2 $ 35.1 $ (30.6 ) State and local 11.5 11.5 1.0 56.7 46.6 (29.6 ) Deferred U.S. federal (8.1 ) 0.9 116.0 State and local 2.3 3.8 9.7 (5.8 ) 4.7 125.7 Income tax provision $ 50.9 $ 51.3 $ 96.1 |
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate on Earnings | The following table presents the reconciling items between the income tax provision using the U.S. federal statutory rate and the Company's reported income tax provision. Year Ended December 31, 2019 2018 2017 (In millions) Statutory U.S. federal income tax $ 40.3 $ 39.6 $ 30.4 State income taxes 10.9 12.1 7.0 Reserve adjustments 3.9 2.7 (4.6 ) Tax credits and special deductions (2.7 ) (3.7 ) (1.2 ) Lobbying costs 0.4 0.4 0.7 Deferred tax adjustment (0.5 ) (0.6 ) (0.1 ) Stock compensation excess tax benefits (2.3 ) (0.4 ) (1.4 ) Other, net 0.9 1.2 0.7 New legislation - tax rate changes — — 64.6 Income tax provision $ 50.9 $ 51.3 $ 96.1 The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate on earnings in percentages. Year Ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes 5.7 6.4 8.0 Reserve adjustments 2.0 1.4 (5.3 ) Tax credits and special deductions (1.4 ) (2.0 ) (1.4 ) Lobbying costs 0.2 0.2 0.8 Deferred tax adjustment (0.2 ) (0.3 ) (0.1 ) Stock compensation excess tax benefits (1.2 ) (0.2 ) (1.6 ) Other, net 0.4 0.7 0.8 New legislation - tax rate changes — — 74.4 Effective income tax rate 26.5 % 27.2 % 110.6 % |
Schedule of Reconciliation of Change in Unrecognized Tax Benefits | The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (In millions) Balances at beginning of year $ 7.4 $ 4.4 $ 29.5 Increases based on tax positions in prior years 40.4 0.3 1.0 Decreases based on tax position in prior years — (0.1 ) (25.1 ) Increases based on tax positions in current year 10.4 3.5 0.4 Lapse of statute of limitations (0.2 ) (0.7 ) (1.4 ) Balances at end of year $ 58.0 $ 7.4 $ 4.4 |
Summary of Deferred Tax Assets and Liabilities | The following table presents the deferred tax assets and liabilities: As of December 31, 2019 2018 (In millions) Deferred Tax Assets Accrued estimated costs $ 43.2 $ 48.3 Basis difference in assets and liabilities 59.0 63.8 Operating lease liabilities 12.9 — Tax losses and credit carryforwards 3.0 3.2 Net cumulative defined benefit pension plan losses 95.9 87.0 Retiree medical and life insurance benefits 6.2 7.5 Total deferred tax assets 220.2 209.8 Deferred Tax Liabilities Revenue recognition differences 77.7 84.9 Basis differences in intangible assets 8.6 8.0 ROU assets 12.0 — Total deferred tax liabilities 98.3 92.9 Total net deferred tax assets $ 121.9 $ 116.9 |
Summary of Changes in Valuation Allowance | The following table presents the changes in the Company's valuation allowance: Year Ended December 31, Balance at Beginning of Year Tax Valuation Allowance Charged to Income Tax Provision Tax Valuation Allowance Credited to Income Tax Provision Balance at End of Year (In millions) 2018 $ 1.7 $ — $ (1.7 ) $ — 2017 1.7 — — 1.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Convertible Senior Notes: As of December 31, 2019 2018 (In millions) Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023 $ 300.0 $ 300.0 Unamortized discount and deferred financing costs (37.0 ) (45.1 ) Total convertible senior notes $ 263.0 $ 254.9 As of December 31, 2019 2018 (In millions) Term loan, bearing interest at variable rates (rate of 3.55% as of December 31, 2019), maturing in September 2023 $ 328.1 $ 345.6 Unamortized deferred financing costs (1.8 ) (2.3 ) Total senior debt $ 326.3 $ 343.3 The following table presents the interest expense components for the 2¼% Notes: Year Ended December 31, 2019 2018 2017 (In millions) Interest expense-contractual interest $ 6.8 $ 6.8 $ 6.8 Interest expense-amortization of debt discount 7.5 7.1 6.7 Interest expense-amortization of deferred financing costs 0.6 0.6 0.6 As of December 31, 2019 2018 (In millions) Senior debt $ 326.3 $ 343.3 Convertible senior notes 263.0 254.9 Finance leases (see Note 4) 47.7 27.2 Total debt, carrying amount 637.0 625.4 Less: Amounts due within one year (284.7 ) (273.1 ) Total long-term debt, carrying amount $ 352.3 $ 352.3 The following table summarizes the 2¼% Notes information (in millions, except years, percentages, conversion rate, and conversion price): As of December 31, 2019 2018 Carrying value, long-term $ 263.0 $ 254.9 Unamortized discount and deferred financing costs 37.0 45.1 Principal amount $ 300.0 $ 300.0 Carrying amount of equity component, net of equity issuance costs $ 54.5 $ 54.5 Remaining amortization period (years) 4.0 5.0 Effective interest rate 5.8 % 5.8 % Conversion rate (shares of common stock per $1,000 principal amount) 38.4615 38.4615 Conversion price (per share of common stock) $ 26.00 $ 26.00 |
Schedule of Maturities of Long-Term Debt | The following table presents as of December 31, 2019 , the earlier of the Company’s contractual debt principal maturities excluding finance lease obligations or the next debt redemption date that could be exercised at the option of the debt holder by year excluding finance lease obligations: Total 2020 2021 2022 2023 (In millions) Senior debt $ 328.1 $ 19.7 $ 26.3 $ 28.4 $ 253.7 Convertible senior notes 300.0 300.0 — — — $ 628.1 $ 319.7 $ 26.3 $ 28.4 $ 253.7 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Company's Plan Assets, Benefit Obligations, and Funded Status | Assets, benefit obligations, and the funded status of the plans were determined at December 31, 2019 and 2018 . Pension Benefits Medical and As of December 31, 2019 2018 2019 2018 (In millions) Change in fair value of assets: Fair value - beginning of year $ 894.8 $ 931.2 $ — $ — Gain (loss) on assets 144.8 (57.8 ) — — Employer contributions (1) 1.4 133.1 3.1 3.6 Benefits paid (2) (108.5 ) (111.7 ) (3.1 ) (3.6 ) Fair value - end of year $ 932.5 $ 894.8 $ — $ — Change in benefit obligation: Benefit obligation - beginning of year $ 1,288.7 $ 1,442.9 $ 31.3 $ 37.5 Interest cost 52.7 49.7 1.2 1.2 Actuarial losses (gains) 116.9 (92.2 ) (3.5 ) (3.8 ) Benefits paid (108.5 ) (111.7 ) (3.1 ) (3.6 ) Benefit obligation and accumulated benefit obligation - end of year $ 1,349.8 $ 1,288.7 $ 25.9 $ 31.3 Funded status of the plans $ (417.3 ) $ (393.9 ) $ (25.9 ) $ (31.3 ) Amounts recognized in the consolidated balance sheets: Postretirement medical and life insurance benefits, current $ — $ — $ (3.6 ) $ (4.4 ) Postretirement medical and life insurance benefits, noncurrent — — (22.3 ) (26.9 ) Pension liability, non-qualified current (component of other current liabilities) (1.3 ) (1.3 ) — — Pension liability, non-qualified (component of other noncurrent liabilities) (17.1 ) (15.9 ) — — Pension benefits, noncurrent (398.9 ) (376.7 ) — — Net liability recognized in the consolidated balance sheets $ (417.3 ) $ (393.9 ) $ (25.9 ) $ (31.3 ) ______ (1) On September 10, 2018, the Company made a discretionary contribution of 2.7 million treasury stock, or $95.0 million , of its common stock to the tax-qualified defined benefit pension plan most of which is expected to be recoverable in future periods as allowable costs on its U.S. government contracts. (2) Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of $0.1 million received in both 2019 and 2018 . |
Summary of Components of Retirement Benefit Expense (Income) | The following table presents the components of retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 (In millions) Interest cost on benefit obligation $ 52.7 $ 49.7 $ 57.6 $ 1.2 $ 1.2 $ 1.5 Assumed return on assets (64.8 ) (60.1 ) (49.5 ) — — — Amortization of prior service costs (credits) 0.1 0.1 0.1 (0.2 ) (0.2 ) (0.2 ) Amortization of net losses (gains) 40.9 70.7 67.8 (3.8 ) (3.8 ) (4.1 ) $ 28.9 $ 60.4 $ 76.0 $ (2.8 ) $ (2.8 ) $ (2.8 ) The following table presents the actual return and rate of return on assets: Year Ended December 31, 2019 2018 2017 (In millions, except rate of return) Actual gain (loss) on assets $ 144.8 $ (57.8 ) $ 96.8 Actual rate of return (loss) on assets 18.0 % (5.2 )% 10.8 % |
Schedule of Assumptions Used to Determine Benefit Obligations | The following table presents the assumptions, calculated based on a weighted-average, to determine the benefit obligations: Pension Medical and As of December 31, As of December 31, 2019 2018 2019 2018 Discount rate 3.28 % 4.27 % 3.19 % 4.09 % Discount rate (non-qualified plan) 3.30 % 4.27 % * * Ultimate healthcare trend rate * * 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * 5.50 % 6.00 % Year ultimate rate attained (pre 65/post 65) * * 2022 2022 ______ * Not applicable |
Schedule of Assumptions Used to Determine Periodic Benefit Expense (Income) | The following table presents the assumptions, calculated based on a weighted-average, to determine the retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 4.27 % 3.59 % 4.02 % 4.09 % 3.37 % 3.68 % Discount rate (non-qualified plan) 4.27 % 3.62 % 4.07 % * * * Expected long-term rate of return on assets 7.00 % 7.00 % 7.00 % * * * Ultimate healthcare trend rate * * * 4.50 % 5.00 % 5.00 % Initial healthcare trend rate (pre 65/post 65) * * * 6.00 % 6.50 % 7.00 % Year ultimate rate attained (pre 65/post 65) * * * 2022 2021 2021 ______ * Not applicable |
Schedule of Pension Plan's Asset Allocations by Asset Category | The following table presents the asset allocations by asset category: As of December 31, 2019 2018 Cash and cash equivalents 4 % 4 % Equity securities 44 43 Fixed income 15 19 Registered investment companies 2 1 Private assets 12 13 Hedge funds 23 20 Total 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets and Liabilities by Asset Category and by Level | The following tables present the fair value by asset category and by level: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2019 Cash and cash equivalents $ 0.1 $ 0.1 $ — $ — Equity securities: Domestic equity securities 372.6 368.4 — 4.2 International equity securities 33.5 33.5 — — Fixed income: Corporate debt securities 78.2 — 50.6 27.6 Asset-backed securities 26.3 — 26.3 — U.S. government securities 31.3 — 31.3 — Foreign bonds 0.8 — 0.8 — Foreign exchange contracts 0.1 — 0.1 — Registered investment companies 22.8 22.8 — — Private assets 5.4 — — 5.4 Total 571.1 $ 424.8 $ 109.1 $ 37.2 Investment measured at Net Asset Value ("NAV") Private assets 106.3 Hedge funds 218.7 Common/collective trusts ("CCTs") 50.0 Total investments measured at NAV 375.0 Receivables 6.5 Payables (20.1 ) Total assets $ 932.5 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2018 Cash and cash equivalents $ 0.6 $ 0.6 $ — $ — Equity securities: Domestic equity securities 345.7 340.8 — 4.9 International equity securities 36.9 36.8 — 0.1 Fixed income: Corporate debt securities 115.2 — 93.7 21.5 Asset-backed securities 28.1 — 28.1 — U.S. government securities 24.6 — 24.6 — Foreign bonds 0.1 — 0.1 — Registered investment companies 9.6 9.6 — — Private assets 1.3 — — 1.3 Total 562.1 $ 387.8 $ 146.5 $ 27.8 Investment measured at NAV Private assets 114.9 Hedge funds 173.9 CCTs 52.0 Total investments measured at NAV 340.8 Receivables 1.4 Payables (9.5 ) Total assets $ 894.8 |
Schedule of Changes in Fair Value of Level 3 Investments | The following tables present the changes in the fair value of the Level 3 investments: December 31, 2018 Unrealized Realized Purchases, Sales, and December 31, (In millions) Equity securities: Domestic equity securities $ 4.9 $ (0.3 ) $ 0.3 $ (0.7 ) $ 4.2 International equity securities 0.1 (0.1 ) — — — Corporate debt securities 21.5 (0.1 ) 0.1 6.1 27.6 Private assets 1.3 0.2 0.1 3.8 5.4 Total $ 27.8 $ (0.3 ) $ 0.5 $ 9.2 $ 37.2 December 31, 2017 Unrealized Realized Purchases, Sales, and Transfers December 31, (In millions) Equity securities: Domestic equity securities $ 3.8 $ (0.3 ) $ — $ 1.4 $ — $ 4.9 International equity securities — 0.1 — — — 0.1 Corporate debt securities 17.0 (0.3 ) 0.4 4.4 — 21.5 Private assets 25.7 — — 1.3 (25.7 ) 1.3 Total $ 46.5 $ (0.5 ) $ 0.4 $ 7.1 $ (25.7 ) $ 27.8 |
Schedule of Estimated Future Benefit Payments | The following table presents estimated future benefit payments: Pension Medical and Life Insurance Benefits Year Ending December 31, Gross Benefit Payments Medicare D Net Benefit (In millions) 2020 $ 110.5 $ 3.6 $ 0.1 $ 3.5 2021 107.0 3.3 0.1 3.2 2022 103.4 3.0 0.1 2.9 2023 99.8 2.7 0.1 2.6 2024 96.3 2.4 — 2.4 Years 2025 - 2029 425.9 8.5 0.2 8.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Environmental Reserve Activity | Aerojet Aerojet Other Total Other Total (In millions) December 31, 2016 $ 210.1 $ 126.8 $ 8.5 $ 345.4 $ 4.3 $ 349.7 Additions 19.2 3.3 8.0 30.5 0.8 31.3 Expenditures (22.8 ) (13.7 ) (2.8 ) (39.3 ) (0.3 ) (39.6 ) December 31, 2017 206.5 116.4 13.7 336.6 4.8 341.4 Additions 20.1 2.3 0.6 23.0 0.3 23.3 Expenditures (19.2 ) (14.9 ) (1.9 ) (36.0 ) (0.8 ) (36.8 ) December 31, 2018 207.4 103.8 12.4 323.6 4.3 327.9 Additions 17.0 (0.8 ) 0.3 16.5 0.2 16.7 Expenditures (20.8 ) (13.4 ) (0.9 ) (35.1 ) (0.3 ) (35.4 ) December 31, 2019 $ 203.6 $ 89.6 $ 11.8 $ 305.0 $ 4.2 $ 309.2 |
Summary of Northrop Agreement Activity | The following table summarizes the Northrop Agreement activity (in millions): Total reimbursable costs under the Northrop Agreement $ 189.7 Amount reimbursed to the Company through December 31, 2019 (137.2 ) Receivable from Northrop included in the balance sheet at December 31, 2019 $ 52.5 |
Schedule of Environmental Reserves and Recoveries | The following table summarizes the financial information for the impact of environmental reserves and recoveries to the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (In millions) Expense (benefit) to consolidated statement of operations $ 2.1 $ (36.9 ) $ 8.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense by Type of Award | The following table summarizes stock-based compensation expense by type of award: Year Ended December 31, 2019 2018 2017 (In millions) SARs $ 11.4 $ 6.2 $ 9.3 Restricted stock, service based 5.2 4.5 4.1 Restricted stock, performance based 9.4 9.1 6.8 Employee stock purchase plan ("ESPP") 0.9 0.6 0.6 Stock options 0.4 0.1 1.2 Total stock-based compensation expense $ 27.3 $ 20.5 $ 22.0 |
Summary of Stock Appreciation Rights | The following table summarizes the status of the Company’s SARs: SARs Weighted Weighted Aggregate Outstanding at December 31, 2018 1.1 $ 21.15 Granted 0.4 37.26 Exercised (0.2 ) 12.95 Canceled (0.1 ) 26.54 Outstanding at December 31, 2019 1.2 $ 27.32 4.9 $ 22.2 Exercisable at December 31, 2019 0.2 $ 15.77 3.0 $ 7.0 Expected to vest at December 31, 2019 1.0 $ 30.10 5.3 $ 15.2 |
Summary of Restricted Stock Units | The following table summarizes the status of the Company’s performance-based restricted stock: Performance Weighted Outstanding at December 31, 2018 1.2 $ 22.05 Granted 0.3 37.27 Exercised (0.4 ) 18.29 Canceled (0.1 ) 23.76 Outstanding at December 31, 2019 1.0 $ 29.41 Expected to vest at December 31, 2019 0.8 $ 28.69 The following table summarizes the status of the Company’s service-based restricted stock: Service Weighted Outstanding at December 31, 2018 0.3 $ 24.76 Granted 0.2 40.70 Exercised (0.2 ) 22.52 Outstanding and expected to vest at December 31, 2019 0.3 $ 36.33 |
Schedule of Stock Options Activity | The following table summarizes the status of the Company’s stock options: Stock Weighted Weighted Intrinsic Outstanding at December 31, 2018 0.3 $ 18.82 Granted 0.1 37.25 Outstanding at December 31, 2019 0.4 $ 23.11 3.7 $ 9.2 Exercisable at December 31, 2019 0.3 $ 19.07 3.0 $ 8.5 Expected to vest at December 31, 2019 0.1 $ 37.25 6.2 $ 0.7 |
Summary of Range of Exercise Prices and Weighted-Average Exercise Prices for Options Outstanding | The following table summarizes the range of exercise prices and weighted-average exercise prices for options outstanding as of December 31, 2019 , under the Company’s stock option plans: Outstanding Year Granted Range of Exercise Prices Stock Weighted Weighted 2015 $23.06 0.1 $ 23.06 2.2 2016 $18.01 0.2 $ 18.01 3.6 2019 $37.25 0.1 $ 37.25 6.2 0.4 |
Schedule of Weighted Average Assumptions Used to Determine Fair Value of Stock Awards | The following table presents the weighted average assumptions used to value the awards for 2018: Performance- based common shares Expected life (in years) 1.25 Volatility 31.52 % Risk-free interest rate 2.65 % Dividend yield — % The following table presents the weighted average assumptions used to value the SARs: Year Ended December 31, 2019 2018 2017 Expected life (in years) 4.9 4.9 4.8 Volatility 34.79 % 35.10 % 34.00 % Risk-free interest rate 1.69 % 2.51 % 2.23 % Dividend yield — % — % — % |
Operating Segments and Relate_2
Operating Segments and Related Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Each Reportable Segment | The following table presents selected financial information for each reportable segment: Year Ended December 31, 2019 2018 2017 (In millions) Net Sales: Aerospace and Defense $ 1,974.0 $ 1,888.1 $ 1,870.8 Real Estate 7.5 7.8 6.4 Total Net Sales $ 1,981.5 $ 1,895.9 $ 1,877.2 Segment Performance: Aerospace and Defense $ 249.1 $ 233.4 $ 200.4 Environmental remediation provision adjustments (1.9 ) 37.2 (7.5 ) GAAP/CAS retirement benefits expense difference 22.4 (6.0 ) (17.0 ) Unusual items (0.3 ) — 2.0 Aerospace and Defense Total 269.3 264.6 177.9 Real Estate 2.1 2.8 2.5 Total Segment Performance $ 271.4 $ 267.4 $ 180.4 Reconciliation of segment performance to income before income taxes: Segment performance $ 271.4 $ 267.4 $ 180.4 Interest expense (35.7 ) (34.4 ) (30.9 ) Interest income 15.5 10.0 3.5 Stock-based compensation (27.3 ) (20.5 ) (22.0 ) Corporate retirement benefits expense (7.2 ) (13.4 ) (20.0 ) Corporate and other (24.8 ) (20.3 ) (23.1 ) Unusual items — (0.2 ) (1.0 ) Income before income taxes $ 191.9 $ 188.6 $ 86.9 Aerospace and Defense $ 42.9 $ 42.2 $ 29.3 Real Estate — — — Corporate — 1.0 0.1 Capital Expenditures $ 42.9 $ 43.2 $ 29.4 Aerospace and Defense $ 72.9 $ 71.1 $ 71.6 Real Estate 1.2 0.9 0.7 Corporate 0.4 0.3 0.3 Depreciation and Amortization $ 74.5 $ 72.3 $ 72.6 As of December 31, 2019 2018 (In millions) Assets: Aerospace and Defense $ 1,515.1 $ 1,551.7 Real Estate 132.8 128.4 Operating segment assets 1,647.9 1,680.1 Corporate 1,059.9 810.0 Total Assets $ 2,707.8 $ 2,490.1 |
Cost Reduction Plans (Tables)
Cost Reduction Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of the CIP Reserve Activity | The following table summarizes the Company's severance and retention liabilities related to Phase I and II activity: Severance Retention Total (In millions) December 31, 2016 $ 6.8 $ 2.1 $ 8.9 Accrual 26.1 2.2 28.3 Payments (2.9 ) (0.9 ) (3.8 ) December 31, 2017 30.0 3.4 33.4 Accrual 0.2 5.7 5.9 Payments (12.1 ) (4.0 ) (16.1 ) December 31, 2018 18.1 5.1 23.2 Accrual — 5.5 5.5 Payments (12.9 ) (6.0 ) (18.9 ) December 31, 2019 $ 5.2 $ 4.6 $ 9.8 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | First Second Third Fourth (In millions, except per share amounts) 2019 Net sales $ 491.7 $ 485.0 $ 481.8 $ 523.0 Cost of sales (exclusive of items shown separately on Statement of Operations) 397.6 379.6 392.9 443.5 Income before income taxes 51.8 59.4 43.5 37.2 Net income 38.7 44.1 32.9 25.3 Basic EPS 0.49 0.56 0.42 0.32 Diluted EPS 0.47 0.54 0.39 0.30 First Second Third Fourth (In millions, except per share amounts) 2018 Net sales $ 492.0 $ 467.2 $ 498.8 $ 437.9 Cost of sales (exclusive of items shown separately on Statement of Operations) 426.8 369.5 400.7 352.4 Income before income taxes 18.7 47.3 87.6 35.0 Net income 14.0 34.8 65.0 23.5 Basic EPS 0.19 0.46 0.85 0.30 Diluted EPS 0.18 0.45 0.82 0.29 |
Unusual Items (Tables)
Unusual Items (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Unusual Items Expense | The following table presents total unusual items, comprised of a component of other expense (income), net in the consolidated statements of operations: Year Ended December 31, 2019 2018 2017 (In millions) Aerospace and Defense: Gain on legal matters $ — $ — $ (2.0 ) Acquisition costs 0.3 — — Aerospace and defense unusual items 0.3 — (2.0 ) Corporate: Acquisition costs — — 1.0 Loss on bank amendment — 0.2 — Corporate unusual items — 0.2 1.0 Total unusual items $ 0.3 $ 0.2 $ (1.0 ) |
Adoption of Revenue Recogniti_2
Adoption of Revenue Recognition Guidance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Impact to the Financial Statements from Adoption of ASU 2014-09 | The following tables summarize the effect of adoption of the new revenue recognition standard on the Company’s consolidated financial statements for 2018. Condensed Consolidated Statement of Operations Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions, except per share amounts) Net sales $ 1,895.9 $ 14.1 $ 1,910.0 Operating costs and expenses: Cost of sales (exclusive of items shown separately below) 1,549.4 27.2 1,576.6 Selling, general and administrative expense 43.8 — 43.8 Depreciation and amortization 72.3 — 72.3 Other income, net (40.2 ) — (40.2 ) Total operating costs and expenses 1,625.3 27.2 1,652.5 Operating income 270.6 (13.1 ) 257.5 Total non-operating expense, net 82.0 — 82.0 Income before income taxes 188.6 (13.1 ) 175.5 Income tax provision 51.3 (3.5 ) 47.8 Net income $ 137.3 $ (9.6 ) $ 127.7 Earnings per share of common stock Basic earnings (loss) per share $ 1.80 $ (0.13 ) $ 1.67 Diluted earnings (loss) per share $ 1.75 $ (0.12 ) $ 1.63 Weighted average shares of common stock outstanding, basic 74.8 — 74.8 Weighted average shares of common stock outstanding, diluted 76.8 — 76.8 Condensed Consolidated Statement of Comprehensive Income Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) Net income $ 137.3 $ (9.6 ) $ 127.7 Other comprehensive income: Actuarial losses and amortization of actuarial losses, net of income taxes 33.2 — 33.2 Comprehensive income $ 170.5 $ (9.6 ) $ 160.9 Condensed Consolidated Balance Sheet As of December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) ASSETS Current Assets Cash and cash equivalents $ 735.3 $ — $ 735.3 Restricted cash 5.0 — 5.0 Accounts receivable, net 141.2 (86.5 ) 54.7 Contract assets 235.1 21.3 256.4 Other current assets, net 117.7 (2.0 ) 115.7 Total Current Assets 1,234.3 (67.2 ) 1,167.1 Noncurrent Assets Property, plant and equipment, net 399.7 — 399.7 Recoverable environmental remediation costs 251.1 — 251.1 Deferred income taxes 116.9 (20.5 ) 96.4 Goodwill 161.3 — 161.3 Intangible assets 71.8 — 71.8 Other noncurrent assets, net 255.0 — 255.0 Total Noncurrent Assets 1,255.8 (20.5 ) 1,235.3 Total Assets $ 2,490.1 $ (87.7 ) $ 2,402.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ 273.1 $ — $ 273.1 Accounts payable 88.7 — 88.7 Reserves for environmental remediation costs 39.8 — 39.8 Contract liabilities 272.6 (8.8 ) 263.8 Other current liabilities 204.1 (31.7 ) 172.4 Total Current Liabilities 878.3 (40.5 ) 837.8 Total Noncurrent Liabilities 1,190.5 — 1,190.5 Total Liabilities 2,068.8 (40.5 ) 2,028.3 Commitments and contingencies (Note 9) Total Stockholders’ Equity 421.3 (47.2 ) 374.1 Total Liabilities and Stockholders’ Equity $ 2,490.1 $ (87.7 ) $ 2,402.4 Condensed Consolidated Statement of Cash Flows Year Ended December 31, 2018 As Reported Effect of Adoption Amounts Excluding Effect of Adoption (In millions) Operating Activities Net income $ 137.3 $ (9.6 ) $ 127.7 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 72.3 — 72.3 Amortization of debt discount and deferred financing costs 8.9 — 8.9 Stock-based compensation 20.5 — 20.5 Retirement benefits, net 15.9 — 15.9 Other, net (2.2 ) — (2.2 ) Changes in assets and liabilities: Accounts receivable, net (47.3 ) 57.1 9.8 Contract assets 10.5 1.2 11.7 Other current assets, net 21.5 (8.1 ) 13.4 Recoverable environmental remediation costs (20.0 ) — (20.0 ) Other noncurrent assets 5.8 — 5.8 Accounts payable (39.4 ) — (39.4 ) Contract liabilities 29.2 (42.2 ) (13.0 ) Other current liabilities 40.9 (31.8 ) 9.1 Deferred income taxes 4.7 33.4 38.1 Reserves for environmental remediation costs (13.5 ) — (13.5 ) Other noncurrent liabilities and other 7.6 — 7.6 Net Cash Provided by Operating Activities 252.7 — 252.7 Investing Activities Net Cash Used in Investing Activities (20.9 ) — (20.9 ) Financing Activities Net Cash Used in Financing Activities (26.5 ) — (26.5 ) Net Increase in Cash, Cash Equivalents and Restricted Cash 205.3 — 205.3 Cash, Cash Equivalents and Restricted Cash at Beginning of Year 535.0 — 535.0 Cash, Cash Equivalents and Restricted Cash at End of Year $ 740.3 $ — $ 740.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative - Basis of Presentation and Nature of Operations (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | Segment | 2 | |
Restricted cash | $ | $ 3 | $ 5 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 729.6 | $ 341 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 626 | 186.3 |
Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 3.7 | |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 99.9 | 154.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 629.7 | 186.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 626 | 186.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 3.7 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 99.9 | 154.7 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 99.9 | 154.7 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Significant Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 874.1 | $ 786.7 |
Principal Amount | 628.1 | 645.6 |
Term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 328.1 | 345.6 |
Principal Amount | 328.1 | 345.6 |
2.25% Convertible Senior Notes (2¼% Notes) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 546 | 441.1 |
Principal Amount | $ 300 | $ 300 |
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Narrative - Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
General and administrative costs incurred | $ 273.9 | $ 248.8 |
General and administrative costs included in long-term contract inventories | $ 3.8 | $ 2.7 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 9 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 6 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 10 years |
Software and software development costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 3 years |
Software and software development costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 7 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Narrative - Goodwill, Intangible Assets and Warranty (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Goodwill impairment loss | $ 0 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets | 7 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets | 30 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Change in Conditional AROs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of year | $ 46 | $ 44 | $ 30.6 |
Additions and other, net | 2.6 | (0.5) | 11.2 |
Accretion | 2.8 | 2.5 | 2.2 |
Balance at end of year | $ 51.4 | $ 46 | $ 44 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Warranties (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Standard product warranty term (years) | 1 year |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Impact of the Change in Contract Estimates on Operating Results (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | |||||||
Net favorable effect of the changes in contract estimates on net sales | $ 523 | $ 481.8 | $ 485 | $ 491.7 | $ 1,981.5 | $ 1,895.9 | $ 1,877.2 |
Favorable effect of the changes in contract estimates on net income (loss) | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Favorable effect of the changes in net income (loss) income per share (in USD per share) | $ 0.32 | $ 0.42 | $ 0.56 | $ 0.49 | $ 1.79 | $ 1.80 | $ (0.13) |
Favorable effect of the changes in contract estimates on diluted net (loss) income per share (in USD per share) | $ 0.30 | $ 0.39 | $ 0.54 | $ 0.47 | $ 1.69 | $ 1.75 | $ (0.13) |
Aerospace and Defense | Contracts Accounted for under Percentage-of-Completion | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Net favorable effect of the changes in contract estimates on net sales | $ 38.6 | $ 68.2 | $ 33.7 | ||||
Favorable effect of the changes in contract estimates on income before income taxes | 38.4 | 59.1 | 37.2 | ||||
Favorable effect of the changes in contract estimates on net income (loss) | $ 28.2 | $ 43.1 | $ 22.3 | ||||
Favorable effect of the changes in net income (loss) income per share (in USD per share) | $ 0.36 | $ 0.56 | $ 0.31 | ||||
Favorable effect of the changes in contract estimates on diluted net (loss) income per share (in USD per share) | $ 0.34 | $ 0.55 | $ 0.31 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Contract assets | $ 243.5 | $ 278 |
Reserve for overhead rate disallowance | (19.4) | (42.9) |
Contract assets, net of reserve | 224.1 | 235.1 |
Contract liabilities | 262.3 | 272.6 |
Net contract liabilities, net of reserve | $ (38.2) | $ (37.5) |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Decrease in reserve for overhead rate disallowances | $ 23.5 | |
Net contract liability increase | 22.8 | |
Sales included in contract liabilities | 240.6 | $ 209.6 |
Unbilled contracts receivable | $ 232.4 | $ 263.7 |
Unbilled receivables expected to be collected after one year | 27.00% |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Performance Obligations (Details) $ in Billions | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Performance obligation | $ 5.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Accounting Policies [Abstract] | |
Performance obligation | $ 2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation (percentage) | 36.00% |
Performance obligation timing (years) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation (percentage) | 41.00% |
Performance obligation timing (years) | 1 year |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Schedule of Sales by Contract Type (Details) - Net Sales - Contract Concentration | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed-price | |||
Concentration Risk [Line Items] | |||
Concentration (percentage) | 61.00% | 63.00% | 64.00% |
Cost-reimbursable | |||
Concentration Risk [Line Items] | |||
Concentration (percentage) | 39.00% | 37.00% | 36.00% |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Narrative - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Company | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expenses | $ 65.1 | $ 46.7 | $ 44.6 |
Customers | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expenses | $ 680.5 | $ 591.6 | $ 561.1 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Percentage of employees under collective bargaining agreements | 9.00% | ||
Net Sales | U.S. government | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 96.00% | 94.00% | 92.00% |
Net Sales | Non U.S. government customers | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 4.00% | 6.00% | 8.00% |
Net Sales | RS-25 program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 17.00% | 14.00% | 14.00% |
Net Sales | Standard Missile program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 13.00% | 13.00% | 9.00% |
Net Sales | THAAD program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 10.00% | 11.00% | 9.00% |
Net Sales | PAC-3 program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 10.00% | 8.00% | 5.00% |
Net Sales | Lockheed Martin | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 33.00% | 30.00% | 24.00% |
Net Sales | NASA | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 21.00% | 18.00% | 17.00% |
Net Sales | Raytheon | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 17.00% | 19.00% | 17.00% |
Net Sales | ULA | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 10.00% | 17.00% | 22.00% |
Accounts Receivable | Lockheed Martin | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 26.00% | 18.00% | |
Accounts Receivable | NASA | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 14.00% | 10.00% | |
Accounts Receivable | Raytheon | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 21.00% | 29.00% | |
Accounts Receivable | The Boeing Company | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 18.00% | 17.00% |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Aircraft for business travel | Beneficial owner | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 1.1 | $ 0.6 | $ 0.6 |
Payable due to related party | 0.1 | 0.4 | |
Purchases of raw materials | Beneficial owner | |||
Related Party Transaction [Line Items] | |||
Purchases from related party | 0.3 | 0.2 | |
Gamco Investors, Inc. | Investment management fees | Investor | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 1 | 1.7 | $ 1.1 |
CBRE | Lease commissions | Investor | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 0.4 | ||
Aerojet Rocketdyne Inc | Blackrock, Inc. | Investor | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 15.00% | 16.00% | |
Aerojet Rocketdyne Inc | Vanguard Group, Inc | Investor | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 11.00% | 10.00% | |
Gamco Investors, Inc. | Aerojet Rocketdyne Inc | Investor | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 9.00% | 10.00% |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 3 | $ 5 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 48 | ||
Operating lease, liability | $ 51.1 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 51.7 | ||
Operating lease, liability | $ 56.3 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||
Net income (loss) | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Income allocated to participating securities | (2.6) | (2.9) | 0 | ||||
Net income (loss) for basic and diluted EPS | $ 138.4 | $ 134.4 | $ (9.2) | ||||
Denominator: | |||||||
Basic weighted average shares (in shares) | 77.2 | 74.8 | 73 | ||||
Effect of: | |||||||
2 1/4% Notes (in shares) | 4.4 | 1.9 | 0 | ||||
Employee stock options and stock purchase plan (in shares) | 0.1 | 0.1 | 0 | ||||
Diluted weighted average shares (in shares) | 81.7 | 76.8 | 73 | ||||
Basic: | |||||||
Basic earnings (loss) per share (in USD per share) | $ 0.32 | $ 0.42 | $ 0.56 | $ 0.49 | $ 1.79 | $ 1.80 | $ (0.13) |
Diluted: | |||||||
Diluted earnings (loss) per share (in USD per share) | $ 0.30 | $ 0.39 | $ 0.54 | $ 0.47 | $ 1.69 | $ 1.75 | $ (0.13) |
2.25% Convertible Senior Notes (2¼% Notes) | |||||||
Diluted: | |||||||
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 1.4 | 1.5 | 1.8 |
Employee stock options and stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 0 | 0 | 0.1 |
Unvested restricted shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 1.4 | 1.5 | 1.6 |
4 1/16% Debentures | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total potentially dilutive securities (in shares) | 0 | 0 | 0.1 |
Debt instrument interest rate stated percentage | 4.0625% |
Balance Sheet Accounts and Su_3
Balance Sheet Accounts and Supplemental Disclosures - Marketable Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 99.9 | $ 154.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 99.9 | 154.7 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 99.9 | 154.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 99.9 | $ 154.7 |
Balance Sheet Accounts and Su_4
Balance Sheet Accounts and Supplemental Disclosures - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Billed | $ 122.9 | $ 147.3 |
Reserve on billed trade receivables | (10.6) | (6.6) |
Other trade receivables | 0.2 | 0.5 |
Accounts receivable, net | $ 112.5 | $ 141.2 |
Balance Sheet Accounts and Su_5
Balance Sheet Accounts and Supplemental Disclosures - Other Current Assets, net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred costs recoverable from the U.S. government | $ 47.1 | $ 52.6 |
Income tax receivable | 43.4 | 14.9 |
Prepaid expenses | 13.9 | 14.4 |
Inventories | 24 | 14.9 |
Other | 17.4 | 20.9 |
Other current assets, net | $ 145.8 | $ 117.7 |
Balance Sheet Accounts and Su_6
Balance Sheet Accounts and Supplemental Disclosures - Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,064.5 | ||
Property, plant and equipment, gross | $ 1,042.4 | ||
Less: accumulated depreciation | (654.6) | ||
Less: accumulated depreciation | (642.7) | ||
Property, plant and equipment, net | 409.9 | ||
Property, plant and equipment, net | 399.7 | ||
Depreciation expense | 58.1 | 56.1 | $ 56.7 |
Non-cash property, plant and equipment additions | 17.9 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 71.2 | ||
Property, plant and equipment, gross | 71.2 | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 434.9 | ||
Property, plant and equipment, gross | 408.6 | ||
Machinery and equipment, including capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 488.2 | ||
Property, plant and equipment, gross | 499.5 | ||
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 70.2 | ||
Property, plant and equipment, gross | $ 63.1 |
Balance Sheet Accounts and Su_7
Balance Sheet Accounts and Supplemental Disclosures - Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 24, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 161.4 | $ 161.3 | ||
Gross Carrying Amount | 161.6 | 161.6 | ||
Accumulated Amortization | 103.4 | 89.8 | ||
Net Carrying Amount | 58.2 | 71.8 | ||
Amortization expense | 13.6 | 13.7 | $ 13.7 | |
2020 | 13.4 | |||
2021 | 9.9 | |||
2022 | 6.6 | |||
2023 | 6.1 | |||
2024 | 4.8 | |||
Total | 40.8 | |||
Customer related | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 87.2 | 87.2 | ||
Accumulated Amortization | 65.9 | 56.4 | ||
Net Carrying Amount | 21.3 | 30.8 | ||
Intellectual property\trade secrets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 34.2 | 34.2 | ||
Accumulated Amortization | 17.1 | 14.5 | ||
Net Carrying Amount | 17.1 | 19.7 | ||
Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 21 | 21 | ||
Accumulated Amortization | 4.6 | 3.9 | ||
Net Carrying Amount | 16.4 | 17.1 | ||
Acquired technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 19.2 | 19.2 | ||
Accumulated Amortization | 15.8 | 15 | ||
Net Carrying Amount | $ 3.4 | $ 4.2 | ||
Coleman Aerospace | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 3.2 |
Balance Sheet Accounts and Su_8
Balance Sheet Accounts and Supplemental Disclosures - Other Noncurrent Assets, net (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Real estate held for entitlement and leasing | $ 100.3 | $ 96.3 |
Receivable from Northrop Grumman Corporation for environmental remediation costs | 46.5 | 52.5 |
Deferred costs recoverable from the U.S. government | 54.8 | 56.4 |
Other | 54 | 49.8 |
Other noncurrent assets, net | $ 255.6 | $ 255 |
Balance Sheet Accounts and Su_9
Balance Sheet Accounts and Supplemental Disclosures - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation and employee benefits | $ 103.1 | $ 116.4 |
Income taxes payable | 0 | 19.8 |
Other | 52.4 | 67.9 |
Other current liabilities | $ 155.5 | $ 204.1 |
Balance Sheet Accounts and S_10
Balance Sheet Accounts and Supplemental Disclosures - Accumulated Other Comprehensive Loss, Net of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 421.3 | $ 102.4 |
Actuarial losses, net of income taxes | (26.5) | (16.4) |
Amortization of net actuarial losses and prior service credits, net of income taxes | 29.4 | 49.6 |
Ending balance | 576.7 | 421.3 |
Actuarial Losses, Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (239.4) | (272.7) |
Actuarial losses, net of income taxes | (26.5) | (16.4) |
Amortization of net actuarial losses and prior service credits, net of income taxes | 29.5 | 49.7 |
Ending balance | (236.4) | (239.4) |
Prior Service Credits (Costs), Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0.1 |
Actuarial losses, net of income taxes | 0 | 0 |
Amortization of net actuarial losses and prior service credits, net of income taxes | (0.1) | (0.1) |
Ending balance | (0.1) | 0 |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (239.4) | (272.6) |
Ending balance | $ (236.5) | $ (239.4) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Feb. 24, 2017 | Sep. 30, 2017 | Dec. 31, 2019 | Mar. 29, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 161.4 | $ 161.3 | |||
Coleman Aerospace | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 17 | ||||
Cash paid in acquisition | 15 | ||||
Working capital adjustments | $ 2 | ||||
Acquisition related costs | 1 | ||||
Goodwill, deductible for tax purposes | 3.2 | ||||
Goodwill | $ 3.2 | ||||
3DMT | |||||
Business Acquisition [Line Items] | |||||
Net assets acquired | $ 1.1 | ||||
Goodwill | $ 0.1 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 14.2 | ||
Amortization | 4 | ||
Interest on lease liabilities | 2.9 | ||
Short-term lease cost | 0.8 | ||
Total lease costs | $ 21.9 | ||
Rent expense | $ 17.2 | $ 20.7 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 24, 2017 |
Business Acquisition [Line Items] | |||
Goodwill (consideration less total identifiable net assets acquired) | $ 161.4 | $ 161.3 | |
Coleman Aerospace | |||
Business Acquisition [Line Items] | |||
Current assets | $ 12 | ||
Property, plant and equipment | 1.9 | ||
Total tangible assets acquired | 13.9 | ||
Intangible assets acquired | 4.8 | ||
Deferred income taxes | 0.3 | ||
Total assets acquired | 19 | ||
Liabilities assumed, current | (5.2) | ||
Total identifiable net assets acquired | 13.8 | ||
Goodwill (consideration less total identifiable net assets acquired) | $ 3.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal options range (years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease renewal options range (years) | 20 years |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - Coleman Aerospace $ in Millions | Feb. 24, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 4.8 |
Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 0.5 |
Weighted average useful life (years) | 8 years |
Customer related | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 3.4 |
Weighted average useful life (years) | 7 years |
Acquired technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets acquired | $ 0.9 |
Weighted average useful life (years) | 10 years |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 14.2 |
Operating cash flows for finance leases | 2.9 |
Financing cash flows for finance leases | 3.3 |
Assets obtained in exchange for lease obligations: | |
Operating leases | 7.7 |
Finance leases | $ 23.8 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating leases: | |
Operating lease right-of-use assets | $ 48 |
Operating lease liabilities (component of other current liabilities) | 12 |
Operating lease liabilities, noncurrent | 39.1 |
Operating lease, liability | 51.1 |
Finance leases: | |
Property, plant and equipment | 52.9 |
Accumulated depreciation | (5.8) |
Property, plant and equipment, net | 47.1 |
Current portion of long-term debt | 2.1 |
Long-term debt | 45.6 |
Total finance lease liability | $ 47.7 |
Weighted-average remaining lease term (in years): | |
Operating leases | 6 years |
Finance leases | 18 years |
Weighted-average discount rate: | |
Operating leases | 4.70% |
Finance leases | 5.20% |
Operating leases not yet commenced | $ 9.4 |
Maximum | |
Weighted-average discount rate: | |
Operating lease term (years) | 11 years |
Leases - Schedule of Maturities
Leases - Schedule of Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases | |||
2020 | $ 14.2 | ||
2021 | 13.2 | ||
2022 | 10.9 | ||
2023 | 5.5 | ||
2024 | 1.9 | ||
Thereafter | 13.5 | ||
Total minimum rentals | 59.2 | ||
Less: imputed interest | (8.1) | ||
Total | 51.1 | ||
Finance Leases | |||
2020 | 4.9 | ||
2021 | 4.7 | ||
2022 | 4.1 | ||
2023 | 3.7 | ||
2024 | 3.8 | ||
Thereafter | 57.5 | ||
Total minimum rentals | 78.7 | ||
Less: imputed interest | (31) | ||
Total | 47.7 | ||
Future Minimum Rental Income | |||
2020 | 1.1 | ||
2021 | 1.6 | ||
2022 | 1.5 | ||
2023 | 1 | ||
2024 | 0.9 | ||
Thereafter | 6.4 | ||
Total | 12.5 | ||
Lease income | $ 7.5 | ||
Lease income | $ 6.4 | $ 6.4 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Company's Income Tax Provision (Benefit) from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
U.S. federal | $ 45.2 | $ 35.1 | $ (30.6) |
State and local | 11.5 | 11.5 | 1 |
Current income tax provision (benefit) | 56.7 | 46.6 | (29.6) |
Deferred | |||
U.S. federal | (8.1) | 0.9 | 116 |
State and local | 2.3 | 3.8 | 9.7 |
Deferred income tax provision (benefit) | (5.8) | 4.7 | 125.7 |
Income tax provision | $ 50.9 | $ 51.3 | $ 96.1 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation, Amount (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax | $ 40.3 | $ 39.6 | $ 30.4 |
State income taxes | 10.9 | 12.1 | 7 |
Reserve adjustments | 3.9 | 2.7 | (4.6) |
Tax credits and special deductions | (2.7) | (3.7) | (1.2) |
Lobbying costs | 0.4 | 0.4 | 0.7 |
Deferred tax adjustment | (0.5) | (0.6) | (0.1) |
Stock compensation excess tax benefits | (2.3) | (0.4) | (1.4) |
Other, net | 0.9 | 1.2 | 0.7 |
New legislation - tax rate changes | 0 | 0 | 64.6 |
Income tax provision | $ 50.9 | $ 51.3 | $ 96.1 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal statutory Income Tax Rate to Effective Income Tax Rate on Earnings (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes | 5.70% | 6.40% | 8.00% |
Reserve adjustments | 2.00% | 1.40% | (5.30%) |
Tax credits and special deductions | (1.40%) | (2.00%) | (1.40%) |
Lobbying costs | 0.20% | 0.20% | 0.80% |
Deferred tax adjustment | (0.20%) | (0.30%) | (0.10%) |
Stock compensation excess tax benefits | (1.20%) | (0.20%) | (1.60%) |
Other, net | 0.40% | 0.70% | 0.80% |
New legislation - tax rate changes | 0.00% | 0.00% | 74.40% |
Effective income tax rate | 26.50% | 27.20% | 110.60% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate - provision (benefit) | 26.50% | 27.20% | 110.60% | |
Income tax expense (benefit) from remeasurement of deferred tax assets and liabilities related to tax cuts and jobs act | $ 64.6 | |||
New legislation - tax rate changes | 0.00% | 0.00% | 74.40% | |
Unrecognized tax benefits | $ 58 | $ 7.4 | $ 4.4 | $ 29.5 |
Unrecognized tax benefits, effect in tax rate | 10.3 | |||
Accrued interest and penalties related to uncertain tax positions | 1.8 | |||
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 2.3 | |||
State | California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 3.1 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Change in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 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] | |||
Balances at beginning of year | $ 7.4 | $ 4.4 | $ 29.5 |
Increases based on tax positions in prior years | 40.4 | 0.3 | 1 |
Decreases based on tax position in prior years | 0 | (0.1) | (25.1) |
Increases based on tax positions in current year | 10.4 | 3.5 | 0.4 |
Lapse of statute of limitations | (0.2) | (0.7) | (1.4) |
Balances at end of year | $ 58 | $ 7.4 | $ 4.4 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Tax Assets | ||
Accrued estimated costs | $ 43.2 | $ 48.3 |
Basis difference in assets and liabilities | 59 | 63.8 |
Operating lease liabilities | 12.9 | |
Tax losses and credit carryforwards | 3 | 3.2 |
Net cumulative defined benefit pension plan losses | 95.9 | 87 |
Retiree medical and life insurance benefits | 6.2 | 7.5 |
Total deferred tax assets | 220.2 | 209.8 |
Deferred Tax Liabilities | ||
Revenue recognition differences | 77.7 | 84.9 |
Basis differences in intangible assets | 8.6 | 8 |
ROU assets | 12 | |
Total deferred tax liabilities | 98.3 | 92.9 |
Total net deferred tax assets | $ 121.9 | $ 116.9 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Valuation Allowance (Details) - Tax Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Year | $ 1.7 | $ 1.7 |
Tax Valuation Allowance Charged to Income Tax Provision | 0 | 0 |
Tax Valuation Allowance Credited to Income Tax Provision | (1.7) | 0 |
Balance at End of Year | $ 0 | $ 1.7 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Senior debt | $ 326.3 | $ 343.3 |
Convertible senior notes | 263 | 254.9 |
Finance leases (see Note 4) | 47.7 | |
Capital lease obligations | 27.2 | |
Total debt, carrying amount | 637 | 625.4 |
Less: Amounts due within one year | (284.7) | (273.1) |
Total long-term debt, carrying amount | $ 352.3 | $ 352.3 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Maturities of Long-term Debt [Abstract] | |||
Total debt, carrying amount | $ 628.1 | ||
2020 | 319.7 | ||
2021 | 26.3 | ||
2022 | 28.4 | ||
2023 | 253.7 | ||
Interest expense-amortization of deferred financing costs (less than) | 1.9 | $ 1.8 | $ 1.8 |
Senior debt | |||
Maturities of Long-term Debt [Abstract] | |||
Total debt, carrying amount | 328.1 | ||
2020 | 19.7 | ||
2021 | 26.3 | ||
2022 | 28.4 | ||
2023 | 253.7 | ||
Convertible senior notes | |||
Maturities of Long-term Debt [Abstract] | |||
Total debt, carrying amount | 300 | ||
2020 | 300 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | $ 0 |
Long-Term Debt - Summary of Sen
Long-Term Debt - Summary of Senior Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 628.1 | |
Senior debt | 326.3 | $ 343.3 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 328.1 | 345.6 |
Unamortized deferred financing costs | (1.8) | (2.3) |
Senior debt | $ 326.3 | $ 343.3 |
Term loan, bearing interest at variable rates | 3.55% |
Long-Term Debt - Narrative - Se
Long-Term Debt - Narrative - Senior Credit Facility (Details) - USD ($) | Sep. 20, 2018 | Dec. 31, 2019 | Sep. 19, 2018 |
Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fees (basis points) | 0.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fees (basis points) | 0.45% | ||
Term loan | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit fees (basis points) | 1.75% | ||
Term loan | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit fees (basis points) | 2.50% | ||
Secured Debt | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowing capacity | $ 1,000,000,000 | ||
Increase in maximum leverage ratio | 0.50 | ||
Secured Debt | Minimum | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Interest coverage ratio | 3 | ||
Secured Debt | Maximum | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Maximum leverage ratio | 3.25 | ||
Secured Debt | Revolving Credit Facility | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowing capacity | $ 650,000,000 | ||
Long-term debt | $ 0 | ||
Secured Debt | Term loan | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowing capacity | $ 350,000,000 | ||
Secured Debt | Term loan | Senior Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit, borrowing capacity | $ 750,000,000 | ||
Line of Credit | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letters of credit | $ 29,700,000 | ||
Until December 31, 2020 | Secured Debt | Term loan | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Loan amortization rate (percentage) | 5.00% | ||
From December 31, 2020 until December 31, 2022 | Secured Debt | Term loan | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Loan amortization rate (percentage) | 7.50% | ||
On or after December 31, 2022 | Secured Debt | Term loan | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Loan amortization rate (percentage) | 10.00% | ||
Through September 30, 2020 | Secured Debt | Maximum | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 4 | ||
From October 1, 2020, through September 30, 2021 | Secured Debt | Maximum | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 3.75 | ||
On or after October 1, 2021 | Secured Debt | Maximum | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 3.50 | ||
London Interbank Offered Rate (LIBOR) | Term loan | Minimum | |||
Debt Instrument [Line Items] | |||
Applicable margin (basis points) | 1.75% | ||
London Interbank Offered Rate (LIBOR) | Term loan | Maximum | |||
Debt Instrument [Line Items] | |||
Applicable margin (basis points) | 2.50% |
Long-Term Debt - Convertible Se
Long-Term Debt - Convertible Senior Notes (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 14, 2016 | Jan. 14, 2016 |
Debt Instrument [Line Items] | ||||
Long term debt | $ 628.1 | |||
Carrying value, long-term | 263 | $ 254.9 | ||
2.25% Convertible Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Long term debt | 300 | $ 300 | ||
Unamortized deferred financing costs | (37) | (45.1) | ||
Carrying value, long-term | $ 263 | $ 254.9 | ||
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Long-Term Debt - Narrative - Co
Long-Term Debt - Narrative - Convertible Senior Notes (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)d$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 14, 2016USD ($) | Jan. 14, 2016 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 628,100,000 | $ 645,600,000 | ||
Convertible senior notes | 263,000,000 | 254,900,000 | ||
2.25% Convertible Senior Debt | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 300,000,000 | $ 300,000,000 | ||
Debt instrument interest rate stated percentage | 2.25% | 2.25% | ||
Conversion price per share (in USD per share) | $ / shares | $ 26 | $ 26 | ||
Threshold trading days | d | 20 | |||
Consecutive trading days | d | 30 | |||
Convertible senior notes | $ 263,000,000 | $ 254,900,000 | ||
Conversion rate of notes to common stock | 150.00% | |||
Repurchase price, percentage of principal amount | 100.00% | |||
Proceeds from issuance of debt | $ 294,200,000 | |||
Effective interest rate (percentage) | 5.80% | 5.80% | ||
Debt issuance costs | $ 5,800,000 | |||
2.25% Convertible Senior Debt | Convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 300,000,000 | |||
Convertible trigger price (USD per share) | $ / shares | $ 33.80 | |||
Threshold trading days | d | 20 | |||
Consecutive trading days | d | 30 | |||
Stock price threshold (percentage) | 130.00% | |||
2.25% Convertible Senior Debt | Debt Component of Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 4,700,000 | |||
2.25% Convertible Senior Debt | Equity Component of Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 1,100,000 |
Long-Term Debt - 2 1_4% Convert
Long-Term Debt - 2 1/4% Convertible Senior Notes (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Carrying value, long-term | $ 263 | $ 254.9 | |
Principal amount | $ 628.1 | 645.6 | |
Share price (in usd per share) | $ / shares | $ 45.66 | ||
Interest expense-amortization of deferred financing costs (less than) | $ 1.9 | 1.8 | $ 1.8 |
2.25% Convertible Senior Debt | |||
Debt Instrument [Line Items] | |||
Carrying value, long-term | 263 | 254.9 | |
Unamortized discount and deferred financing costs | 37 | 45.1 | |
Principal amount | 300 | 300 | |
Carrying amount of equity component, net of equity issuance costs | $ 54.5 | $ 54.5 | |
Remaining amortization period (years) | 4 years | 5 years | |
Effective interest rate (percentage) | 5.80% | 5.80% | |
Common stock conversion rate (in shares per USD) | 0.0385 | 0.0385 | |
Conversion price per share (in USD per share) | $ / shares | $ 26 | $ 26 | |
Interest expense-contractual interest | $ 6.8 | $ 6.8 | 6.8 |
Interest expense-amortization of debt discount | 7.5 | 7.1 | 6.7 |
Interest expense-amortization of deferred financing costs (less than) | 0.6 | $ 0.6 | $ 0.6 |
Debt Component of Convertible Debt | 2.25% Convertible Senior Debt | |||
Debt Instrument [Line Items] | |||
If-converted value above aggregate principal | $ 226.8 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative - Plan Descriptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plan assets, total | $ 932.5 | $ 894.8 | |
First 3% of Compensation Contributed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of company matching compensation contributed | 100.00% | ||
Percent of participant's compensation contributed | 3.00% | ||
Cost of 401(k) plan | $ 21.4 | 22.2 | $ 21.2 |
Defined Contribution 401(k) Plan, Next 3% Contributed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of company matching compensation contributed | 50.00% | ||
Percent of participant's compensation contributed | 3.00% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plan assets, total | $ 932.5 | 894.8 | 931.2 |
Projected benefit obligations, total | 1,349.8 | 1,288.7 | $ 1,442.9 |
Unfunded pension obligation | 417.3 | 393.9 | |
Employer contributions | 1.4 | $ 133.1 | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected cash contributions | 46 | ||
Employer contributions | 13.9 | ||
Contributions by employer, recoverable in current year government contracts | 32.1 | ||
Amount expected to be recoverable | $ 38.9 |
Retirement Benefits - Summary o
Retirement Benefits - Summary of Company's Plan Assets, Benefit Obligations, and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of assets: | |||
Fair value - beginning of year | $ 894.8 | ||
Gain (loss) on assets | 144.8 | $ (57.8) | $ 96.8 |
Fair value - end of year | 932.5 | 894.8 | |
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | (398.9) | (376.7) | |
Net liability recognized in the consolidated balance sheets | (2,131.1) | (2,068.8) | |
Pension Benefits | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 894.8 | 931.2 | |
Gain (loss) on assets | 144.8 | (57.8) | |
Employer contributions | 1.4 | 133.1 | |
Benefits paid | (108.5) | (111.7) | |
Fair value - end of year | 932.5 | 894.8 | 931.2 |
Change in benefit obligation: | |||
Benefit obligation - beginning of year | 1,288.7 | 1,442.9 | |
Interest cost | 52.7 | 49.7 | 57.6 |
Actuarial losses (gains) | 116.9 | (92.2) | |
Benefits paid | (108.5) | (111.7) | |
Benefit obligation - end of year | 1,349.8 | 1,288.7 | 1,442.9 |
Funded status of the plans | (417.3) | (393.9) | |
Amounts recognized in the consolidated balance sheets: | |||
Postretirement medical and life insurance benefits, current | 0 | 0 | |
Postretirement medical and life insurance benefits, noncurrent | 0 | 0 | |
Pension benefits, noncurrent | (398.9) | (376.7) | |
Net liability recognized in the consolidated balance sheets | (417.3) | (393.9) | |
Pension Benefits | Other Current Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension liability, non-qualified current (component of other current liabilities) | (1.3) | (1.3) | |
Pension Benefits | Other Noncurrent Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | (17.1) | (15.9) | |
Medical and Life Insurance Benefits | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 0 | 0 | |
Gain (loss) on assets | 0 | 0 | |
Employer contributions | 3.1 | 3.6 | |
Benefits paid | (3.1) | (3.6) | |
Fair value - end of year | 0 | 0 | 0 |
Change in benefit obligation: | |||
Benefit obligation - beginning of year | 31.3 | 37.5 | |
Interest cost | 1.2 | 1.2 | 1.5 |
Actuarial losses (gains) | (3.5) | (3.8) | |
Benefits paid | (3.1) | (3.6) | |
Benefit obligation - end of year | 25.9 | 31.3 | $ 37.5 |
Funded status of the plans | (25.9) | (31.3) | |
Amounts recognized in the consolidated balance sheets: | |||
Postretirement medical and life insurance benefits, current | (3.6) | (4.4) | |
Postretirement medical and life insurance benefits, noncurrent | (22.3) | (26.9) | |
Pension benefits, noncurrent | 0 | 0 | |
Net liability recognized in the consolidated balance sheets | $ (25.9) | $ (31.3) | |
Discount rate (percentage) | 3.19% | 4.09% | |
Medical and Life Insurance Benefits | Other Current Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension liability, non-qualified current (component of other current liabilities) | $ 0 | $ 0 | |
Medical and Life Insurance Benefits | Other Noncurrent Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | 0 | $ 0 | |
Qualified Plan | Pension Benefits | |||
Change in fair value of assets: | |||
Employer contributions | $ 13.9 | ||
Amounts recognized in the consolidated balance sheets: | |||
Discount rate (percentage) | 3.28% | 4.27% | 3.59% |
Retirement Benefits - Summary_2
Retirement Benefits - Summary of Company's Plan Assets, Benefit Obligations, and Funded Status (Footnote) (Details) - USD ($) shares in Millions, $ in Millions | Sep. 10, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Discretionary contribution of treasury stock (shares) | 2.7 | ||
Discretionary contribution of treasury stock | $ 95 | ||
Medicare Part D Subsidy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit paid during period | $ 0.1 | $ 0.1 |
Retirement Benefits - Summary_3
Retirement Benefits - Summary of Components of Retirement Benefit Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual gain (loss) on assets | $ 144.8 | $ (57.8) | $ 96.8 |
Actual rate of return (loss) on assets | 18.00% | (5.20%) | 10.80% |
Difference between expected return and actual return on market-related value of assets which smooths asset values (in years) | 3 years | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on benefit obligation | $ 52.7 | $ 49.7 | $ 57.6 |
Assumed return on assets | (64.8) | (60.1) | (49.5) |
Amortization of prior service costs (credits) | 0.1 | 0.1 | 0.1 |
Amortization of net losses (gains) | 40.9 | 70.7 | 67.8 |
Retirement benefit expense (income) | 28.9 | 60.4 | 76 |
Actual gain (loss) on assets | 144.8 | (57.8) | |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on benefit obligation | 1.2 | 1.2 | 1.5 |
Assumed return on assets | 0 | 0 | 0 |
Amortization of prior service costs (credits) | (0.2) | (0.2) | (0.2) |
Amortization of net losses (gains) | (3.8) | (3.8) | (4.1) |
Retirement benefit expense (income) | (2.8) | (2.8) | (2.8) |
Actual gain (loss) on assets | $ 0 | $ 0 | |
Restatement Adjustment | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost reclassified as return on plan assets | $ 15 |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Assumptions Used to Determine Benefit Obligations (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 3.19% | 4.09% | |
Ultimate healthcare trend rate (percentage) | 4.50% | 4.50% | |
Initial healthcare trend rate (pre 65/post 65) (percentage) | 5.50% | 6.00% | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 3.28% | 4.27% | 3.59% |
Nonqualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 3.30% | 4.27% |
Retirement Benefits - Schedul_2
Retirement Benefits - Schedule of Assumptions Used to Determine Periodic Benefit Expense (Income) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets (percentage) | 7.00% | 7.00% | 7.00% |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 4.09% | 3.37% | 3.68% |
Ultimate healthcare trend rate (percentage) | 4.50% | 5.00% | 5.00% |
Initial healthcare trend rate (pre 65/post 65) (percentage) | 6.00% | 6.50% | 7.00% |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 4.27% | 3.59% | 4.02% |
Nonqualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 4.27% | 3.62% | 4.07% |
Retirement Benefits - Narrati_2
Retirement Benefits - Narrative - Plan Assumptions (Details) - Participant | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets (percentage) | 7.00% | 7.00% | 7.00% |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial healthcare trend rate (pre 65/post 65) (percentage) | 5.50% | 6.00% | |
Number of participants | 65 | ||
Number of years until rate reaches ultimate trend rate | 2 years | ||
Ultimate healthcare trend rate (percentage) | 4.50% | 4.50% |
Retirement Benefits - Schedul_3
Retirement Benefits - Schedule of Pension Plan's Asset Allocations by Asset Category (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 4.00% | 4.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 44.00% | 43.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 15.00% | 19.00% |
Registered investment companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 2.00% | 1.00% |
Private assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 12.00% | 13.00% |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 23.00% | 20.00% |
Retirement Benefits - Schedul_4
Retirement Benefits - Schedule of Fair Value of Pension Plan Assets and Liabilities by Asset Category and by Level (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 571.1 | $ 562.1 | |
Receivables | 6.5 | 1.4 | |
Payables | (20.1) | (9.5) | |
Total assets | 932.5 | 894.8 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | 0.6 | |
Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 372.6 | 345.7 | |
International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 33.5 | 36.9 | |
Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 78.2 | 115.2 | |
Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 26.3 | 28.1 | |
U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 31.3 | 24.6 | |
Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.8 | 0.1 | |
Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 22.8 | 9.6 | |
Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5.4 | 1.3 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 424.8 | 387.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | 0.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 368.4 | 340.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 33.5 | 36.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 22.8 | 9.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 109.1 | 146.5 | |
Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 50.6 | 93.7 | |
Significant Other Observable Inputs (Level 2) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 26.3 | 28.1 | |
Significant Other Observable Inputs (Level 2) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 31.3 | 24.6 | |
Significant Other Observable Inputs (Level 2) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.8 | 0.1 | |
Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Significant Other Observable Inputs (Level 2) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 37.2 | 27.8 | |
Total assets | 37.2 | 27.8 | $ 46.5 |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4.2 | 4.9 | |
Total assets | 4.2 | 4.9 | 3.8 |
Significant Unobservable Inputs (Level 3) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0.1 | |
Total assets | 0 | 0.1 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 27.6 | 21.5 | |
Total assets | 27.6 | 21.5 | 17 |
Significant Unobservable Inputs (Level 3) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Significant Unobservable Inputs (Level 3) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5.4 | 1.3 | |
Total assets | 5.4 | 1.3 | $ 25.7 |
NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 375 | 340.8 | |
NAV | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 106.3 | 114.9 | |
NAV | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 218.7 | 173.9 | |
NAV | Common/collective trusts (CCTs) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 50 | $ 52 |
Retirement Benefits - Narrati_3
Retirement Benefits - Narrative - Plan Assets and Investment Policy (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Private assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in plan assets | $ (17.4) | $ 9.7 |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in plan assets | $ (4.5) |
Retirement Benefits - Schedul_5
Retirement Benefits - Schedule of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of assets: | |||
Fair value - beginning of year | $ 894.8 | ||
Realized Gains | 144.8 | $ (57.8) | $ 96.8 |
Fair value - end of year | 932.5 | 894.8 | |
Significant Unobservable Inputs (Level 3) | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 27.8 | 46.5 | |
Unrealized Gains (Losses) | (0.3) | (0.5) | |
Realized Gains | 0.5 | 0.4 | |
Purchases, Sales, and Settlements, net | 9.2 | 7.1 | |
Transfers out of Level 3 | (25.7) | ||
Fair value - end of year | 37.2 | 27.8 | 46.5 |
Significant Unobservable Inputs (Level 3) | Domestic equity securities | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 4.9 | 3.8 | |
Unrealized Gains (Losses) | (0.3) | ||
Realized Gains | 0 | ||
Purchases, Sales, and Settlements, net | 1.4 | ||
Transfers out of Level 3 | 0 | ||
Fair value - end of year | 4.2 | 4.9 | 3.8 |
Significant Unobservable Inputs (Level 3) | International equity securities | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 0.1 | 0 | |
Unrealized Gains (Losses) | 0.1 | ||
Realized Gains | 0 | ||
Purchases, Sales, and Settlements, net | 0 | ||
Transfers out of Level 3 | 0 | ||
Fair value - end of year | 0 | 0.1 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate debt securities | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 21.5 | 17 | |
Unrealized Gains (Losses) | (0.3) | ||
Realized Gains | 0.4 | ||
Purchases, Sales, and Settlements, net | 4.4 | ||
Transfers out of Level 3 | 0 | ||
Fair value - end of year | 27.6 | 21.5 | 17 |
Significant Unobservable Inputs (Level 3) | Private assets | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 1.3 | 25.7 | |
Unrealized Gains (Losses) | 0 | ||
Realized Gains | 0 | ||
Purchases, Sales, and Settlements, net | 1.3 | ||
Transfers out of Level 3 | (25.7) | ||
Fair value - end of year | $ 5.4 | $ 1.3 | $ 25.7 |
Retirement Benefits - Schedul_6
Retirement Benefits - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Expected Benefit Payments | |
2020 | $ 110.5 |
2021 | 107 |
2022 | 103.4 |
2023 | 99.8 |
2024 | 96.3 |
Years 2025 - 2029 | 425.9 |
Medical and Life Insurance Benefits | |
Expected Benefit Payments | |
2020 | 3.5 |
2021 | 3.2 |
2022 | 2.9 |
2023 | 2.6 |
2024 | 2.4 |
Years 2025 - 2029 | 8.3 |
Gross Benefit Payments | |
2020 | 3.6 |
2021 | 3.3 |
2022 | 3 |
2023 | 2.7 |
2024 | 2.4 |
Years 2025 - 2029 | 8.5 |
Medicare D Subsidy | |
2020 | 0.1 |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0.1 |
2024 | 0 |
Years 2025 - 2029 | $ 0.2 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) | Dec. 31, 2019legal_matter |
Asbestos Litigation | |
Loss Contingencies [Line Items] | |
Unresolved asbestos cases pending | 61 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Matters (Details) | May 09, 2017 | Dec. 31, 2019USD ($)aenvironmental_matter | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2002Participant | Oct. 31, 2001USD ($) |
Site Contingency [Line Items] | |||||||
Number of environmental remediation matters (over) | environmental_matter | 40 | ||||||
Accrued environmental costs | $ 309,200,000 | $ 327,900,000 | $ 341,400,000 | $ 349,700,000 | |||
Guarantee obligations | $ 120,000,000 | ||||||
Sacramento, California | Previously Reported | Environmental Protection Agency | |||||||
Site Contingency [Line Items] | |||||||
Non-contaminated land | a | 2,600 | ||||||
Various Environmental Matters | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | $ 309,200,000 | ||||||
Various Environmental Matters | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | 203,600,000 | ||||||
Various Environmental Matters | Sacramento, California | Previously Reported | |||||||
Site Contingency [Line Items] | |||||||
Guarantee obligations | 75,000,000 | $ 20,000,000 | |||||
Various Environmental Matters | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | $ 89,600,000 | ||||||
Guarantee obligations | $ 25,000,000 | ||||||
Various Environmental Matters | Baldwin Park Operable Unit | Aerojet Rocketdyne Inc | |||||||
Site Contingency [Line Items] | |||||||
Number of other potentially responsible parties | Participant | 7 | ||||||
Number of counterparties | Participant | 5 | ||||||
Project agreement term (years) | 10 years | ||||||
Percentage of responsibility in all project costs | 74.00% | ||||||
Various Environmental Matters | Contracting business | |||||||
Site Contingency [Line Items] | |||||||
Environmental obligation funding percent | 99.00% | ||||||
Various Environmental Matters | Minimum | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | $ 309,200,000 | ||||||
Various Environmental Matters | Minimum | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 203,600,000 | ||||||
Various Environmental Matters | Minimum | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 89,600,000 | ||||||
Various Environmental Matters | Maximum | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 459,800,000 | ||||||
Various Environmental Matters | Maximum | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 325,800,000 | ||||||
Various Environmental Matters | Maximum | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | $ 106,100,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Environmental Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 327.9 | $ 341.4 | $ 349.7 |
Additions | 16.7 | 23.3 | 31.3 |
Expenditures | (35.4) | (36.8) | (39.6) |
Ending balance | 309.2 | 327.9 | 341.4 |
Aerojet Rocketdyne- Sacramento | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 207.4 | 206.5 | 210.1 |
Additions | 17 | 20.1 | 19.2 |
Expenditures | (20.8) | (19.2) | (22.8) |
Ending balance | 203.6 | 207.4 | 206.5 |
Aerojet Rocketdyne- BPOU | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 103.8 | 116.4 | 126.8 |
Additions | (0.8) | 2.3 | 3.3 |
Expenditures | (13.4) | (14.9) | (13.7) |
Ending balance | 89.6 | 103.8 | 116.4 |
Other Aerojet Rocketdyne Sites | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 12.4 | 13.7 | 8.5 |
Additions | 0.3 | 0.6 | 8 |
Expenditures | (0.9) | (1.9) | (2.8) |
Ending balance | 11.8 | 12.4 | 13.7 |
Total Aerojet Rocketdyne | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 323.6 | 336.6 | 345.4 |
Additions | 16.5 | 23 | 30.5 |
Expenditures | (35.1) | (36) | (39.3) |
Ending balance | 305 | 323.6 | 336.6 |
Other | |||
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | 4.3 | 4.8 | 4.3 |
Additions | 0.2 | 0.3 | 0.8 |
Expenditures | (0.3) | (0.8) | (0.3) |
Ending balance | $ 4.2 | $ 4.3 | $ 4.8 |
Commitments and Contingencies_4
Commitments and Contingencies - Environmental Reserves and Estimated Recoveries (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2019 | |
Northrop | ||
Site Contingency [Line Items] | ||
Current annual billing limitation | $ 6 | |
Total reimbursable costs under the northrop agreement | $ 189.7 | |
Atlantic Research Corporation | ||
Site Contingency [Line Items] | ||
Pre-close environmental costs | $ 20 |
Commitments and Contingencies_5
Commitments and Contingencies - Summary of Northrop Agreement Activity (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Site Contingency [Line Items] | |
Estimated non-reimbursable costs (percentage) | 12.00% |
Northrop | |
Site Contingency [Line Items] | |
Recoverable percentage of costs (percentage) | 88.00% |
Current annual billing limitation | $ 6 |
Total reimbursable costs under the Northrop Agreement | 189.7 |
Amount reimbursed through December 31, 2017 | (137.2) |
Receivable from Northrop included in the consolidated balance sheet as of December 31, 2017 | 52.5 |
Benefit for recoverability of environmental expenditures | $ 43 |
Commitments and Contingencies_6
Commitments and Contingencies - Summary of Environmental Reserves and Recoveries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reserve for Environmental Costs | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Expense (benefit) to consolidated statement of operations | $ 2.1 | $ (36.9) | $ 8.2 |
Commitments and Contingencies
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding surety bonds | $ 53,900,000 |
Guarantee obligations, up to | $ 120,000,000 |
Product warranty period (years) | 1 year |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 10, 2018 | Feb. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Preference stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | |||
Preference stock, shares issued (in shares) | 0 | 0 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Common stock, share authorized (in shares) | 150,000,000 | 150,000,000 | |||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | |||
Common stock, shares issued (in shares) | 77,300,000 | 76,800,000 | |||
Number of shares reserved for future issuance (in shares) | 21,500,000 | ||||
Treasury stock, shares (in shares) | 800,000 | 800,000 | |||
Discretionary contribution of treasury stock (shares) | 2,700,000 | ||||
Discretionary contribution of treasury stock | $ 95 | ||||
Share price (in usd per share) | $ 45.66 | ||||
Volatility (percentage) | 33.48% | ||||
Risk free interest rate (percentage) | 2.62% | ||||
SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, outstanding (in shares) | 1,200,000 | 1,100,000 | |||
Weighted-average grant date fair value of SARS granted (in USD per share) | $ 27.53 | $ 22.35 | |||
SARs liabilities paid | $ 4.3 | $ 3.5 | $ 4.9 | ||
Stock-based compensation related to nonvested SARs | $ 9.1 | ||||
Amortization period (months) | 21 months | ||||
Volatility (percentage) | 34.79% | 35.10% | 34.00% | ||
Risk free interest rate (percentage) | 1.69% | 2.51% | 2.23% | ||
SARs | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual life (years) | 7 years | ||||
SARs | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual life (years) | 7 years | ||||
Restricted stock, service based | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amortization period (months) | 22 months | ||||
Service-based restricted stock outstanding (in shares) | 300,000 | 300,000 | |||
Stock-based compensation related to nonvested service-based restricted stock | $ 7.9 | ||||
Service-based restricted stock outstanding and expected to vest | $ 14.4 | ||||
Average grant date fair value (in USD per share) | $ 40.70 | $ 29.74 | $ 24.98 | ||
Restricted stock, granted (in shares) | 200,000 | ||||
Performance-based restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Amortization period (months) | 15 months | ||||
Service-based restricted stock outstanding (in shares) | 1,000,000 | 1,200,000 | |||
Stock-based compensation related to nonvested service-based restricted stock | $ 8.3 | ||||
Service-based restricted stock outstanding and expected to vest | $ 47.1 | ||||
Average grant date fair value (in USD per share) | $ 37.27 | $ 26.36 | $ 22.35 | ||
Equity instruments other than options vested and expected to vest aggregate intrinsic value | $ 36.5 | ||||
Restricted stock, granted (in shares) | 300,000 | ||||
Employee stock purchase plan (ESPP) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock purchase price (percentage) | 85.00% | ||||
Shares issued (in shares) | 100,000 | 100,000 | 100,000 | ||
Weighted average price per share (in usd per share) | $ 45.25 | $ 32.11 | $ 25.43 | ||
Employee stock purchase plan (ESPP) | 2013 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for issuance (in shares) | 1,500,000 | ||||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options, outstanding (in shares) | 400,000 | ||||
Exercised in period, intrinsic value | $ 0.8 | $ 0.9 | $ 2.9 | ||
Performance-based common shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Minimum volatility (percentage) | 22.73% | ||||
Maximum volatility (percentage) | 36.41% | ||||
Minimum risk-free interest rate (percentage) | 1.54% | ||||
Maximum risk-free interest rate (percentage) | 1.83% | ||||
Volatility (percentage) | 31.52% | ||||
Risk free interest rate (percentage) | 2.65% | ||||
Performance-based common shares | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Average grant date fair value (in USD per share) | $ 18.67 | ||||
Restricted stock, granted (in shares) | 100,000 | ||||
Performance-based common shares | Executive Officer | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share price (in usd per share) | $ 34 | ||||
Performance-based common shares | Executive Officer | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share price (in usd per share) | $ 42 | ||||
Vesting Period One | SARs | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage (percentage) | 33.30% | ||||
Vesting Period One | SARs | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage (percentage) | 50.00% | ||||
Vesting Period Two | SARs | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage (percentage) | 33.30% | ||||
Vesting Period Two | SARs | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage (percentage) | 50.00% | ||||
Vesting Period Three | SARs | Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage (percentage) | 33.30% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Expense by Type of Award (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 27.3 | $ 20.5 | $ 22 |
SARs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11.4 | 6.2 | 9.3 |
Restricted stock, service based | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 5.2 | 4.5 | 4.1 |
Restricted stock, performance based | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 9.4 | 9.1 | 6.8 |
Employee stock purchase plan (ESPP) | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 0.9 | 0.6 | 0.6 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 0.4 | $ 0.1 | $ 1.2 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Appreciation Rights (Details) - SARs $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Stock, outstanding, beginning balance (in shares) | shares | 1.1 |
Stock, granted (in shares) | shares | 0.4 |
Stock, exercised (in shares) | shares | (0.2) |
Stock, canceled (in shares) | shares | (0.1) |
Stock, outstanding, ending balance (in shares) | shares | 1.2 |
Stock, exercisable (in shares) | shares | 0.2 |
Stock, expected to vest (in shares) | shares | 1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, beginning balance (in USD per share) | $ / shares | $ 21.15 |
Weighted average exercise price, granted (in USD per share) | $ / shares | 37.26 |
Weighted average exercise price, exercised (in USD per share) | $ / shares | 12.95 |
Weighted average exercise price, canceled (in USD per share) | $ / shares | 26.54 |
Weighted average exercise price, ending balance (in USD per share) | $ / shares | 27.32 |
Weighted average exercise price, exercisable (in USD per share) | $ / shares | 15.77 |
Weighted average exercise price, expected to vest (in USD per share) | $ / shares | $ 30.10 |
Weighted average remaining contractual life, outstanding (years) | 4 years 10 months 24 days |
Weighted average remaining contractual life, exercisable (years) | 3 years |
Weighted average remaining contractual life, expected to vest (years) | 5 years 3 months 18 days |
Intrinsic value, outstanding | $ | $ 22.2 |
Intrinsic value, exercisable | $ | 7 |
Intrinsic value, expected to vest | $ | $ 15.2 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Units (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Service Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock, outstanding, beginning balance (in shares) | 0.3 | ||
Restricted stock, granted (in shares) | 0.2 | ||
Restricted stock, exercised (in shares) | (0.2) | ||
Restricted stock, outstanding, ending balance (in shares) | 0.3 | 0.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 24.76 | ||
Weighted average grant date fair value, granted (in USD per share) | 40.70 | $ 29.74 | $ 24.98 |
Weighted average grant date fair value, exercised (in USD per share) | 22.52 | ||
Weighted average grant date fair value, ending balance (in USD per share) | $ 36.33 | $ 24.76 | |
Performance Based Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Restricted stock, outstanding, beginning balance (in shares) | 1.2 | ||
Restricted stock, granted (in shares) | 0.3 | ||
Restricted stock, exercised (in shares) | (0.4) | ||
Restricted stock, canceled (in shares) | (0.1) | ||
Restricted stock, outstanding, ending balance (in shares) | 1 | 1.2 | |
Restricted stock, expected to vest (in shares) | 0.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 22.05 | ||
Weighted average grant date fair value, granted (in USD per share) | 37.27 | $ 26.36 | $ 22.35 |
Weighted average grant date fair value, exercised (in USD per share) | 18.29 | ||
Weighted average grant date fair value, canceled (in USD per share) | 23.76 | ||
Weighted average grant date fair value, ending balance (in USD per share) | 29.41 | $ 22.05 | |
Weighted average grant date fair value, expected to vest (in USD per share) | $ 28.69 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Options Activity (Details) - Stock Options $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Stock, outstanding, beginning balance (in shares) | shares | 0.3 |
Stock, exercised (in shares) | shares | 0.1 |
Stock, exercisable (in shares) | shares | 0.3 |
Stock, expected to vest (in shares) | shares | 0.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, beginning balance (in USD per share) | $ 18.82 |
Weighted average exercise price, exercised (in USD per share) | 37.25 |
Weighted average exercise price, ending balance (in USD per share) | 23.11 |
Weighted average exercise price, exercisable (in USD per share) | 19.07 |
Weighted average exercise price,expected to vest (in USD per share) | $ 37.25 |
Weighted average remaining contractual life, outstanding (years) | 3 years 8 months 12 days |
Weighted average remaining contractual life, exercisable (years) | 3 years |
Weighted average remaining contractual,expected to vest (year) | 6 years 2 months 12 days |
Intrinsic value, outstanding | $ | $ 9.2 |
Intrinsic value, exercisable | $ | 8.5 |
Intrinsic value,expected to vest | $ | $ 0.7 |
Stockholders' Equity - Summar_4
Stockholders' Equity - Summary of Range of Exercise Prices and Weighted-Average Exercise Prices for Options Outstanding (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Options Outstanding (in shares) | shares | 0.4 |
2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Average (in USD per share) | $ 23.06 |
Stock Options Outstanding (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in USD per share) | $ 23.06 |
Weighted Average Remaining Contractual Life | 2 years 2 months 12 days |
2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Average (in USD per share) | $ 18.01 |
Stock Options Outstanding (in shares) | shares | 0.2 |
Weighted Average Exercise Price (in USD per share) | $ 18.01 |
Weighted Average Remaining Contractual Life | 3 years 7 months 6 days |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of Exercise Prices, Average (in USD per share) | $ 37.25 |
Stock Options Outstanding (in shares) | shares | 0.1 |
Weighted Average Exercise Price (in USD per share) | $ 37.25 |
Weighted Average Remaining Contractual Life | 6 years 2 months 12 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 33.48% | ||
Risk-free interest rate | 2.62% | ||
Performance- based common shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 1 year 3 months | ||
Volatility | 31.52% | ||
Risk-free interest rate | 2.65% | ||
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 9 months 18 days |
Volatility | 34.79% | 35.10% | 34.00% |
Risk-free interest rate | 1.69% | 2.51% | 2.23% |
Operating Segments and Relate_3
Operating Segments and Related Disclosures - Narrative (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Operating Segments and Relate_4
Operating Segments and Related Disclosures - Selected Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales: | |||||||
Net favorable effect of the changes in contract estimates on net sales | $ 523 | $ 481.8 | $ 485 | $ 491.7 | $ 1,981.5 | $ 1,895.9 | $ 1,877.2 |
Segment Performance: | |||||||
Environmental remediation provision adjustments | (2.1) | 36.9 | (8.2) | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Interest expense | (35.7) | (34.4) | (30.9) | ||||
Interest income | 15.5 | 10 | 3.5 | ||||
Stock-based compensation expense | (27.3) | (20.5) | (22) | ||||
Loss from continuing operations before income taxes | 191.9 | 188.6 | 86.9 | ||||
Capital expenditures | 42.9 | 43.2 | 29.4 | ||||
Depreciation and amortization | 74.5 | 72.3 | 72.6 | ||||
Aerospace and Defense | |||||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Capital expenditures | 42.9 | 42.2 | 29.3 | ||||
Depreciation and amortization | 72.9 | 71.1 | 71.6 | ||||
Real Estate | |||||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Capital expenditures | 0 | 0 | 0 | ||||
Depreciation and amortization | 1.2 | 0.9 | 0.7 | ||||
Operating Segments | |||||||
Net Sales: | |||||||
Net favorable effect of the changes in contract estimates on net sales | 1,981.5 | 1,895.9 | 1,877.2 | ||||
Segment Performance: | |||||||
Segment performance | 271.4 | 267.4 | 180.4 | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Segment performance | 271.4 | 267.4 | 180.4 | ||||
Operating Segments | Aerospace and Defense | |||||||
Net Sales: | |||||||
Net favorable effect of the changes in contract estimates on net sales | 1,974 | 1,888.1 | 1,870.8 | ||||
Segment Performance: | |||||||
Aerospace and Defense | 249.1 | 233.4 | 200.4 | ||||
Environmental remediation provision adjustments | (1.9) | 37.2 | (7.5) | ||||
Retirement benefits, net | 22.4 | (6) | (17) | ||||
Unusual items | (0.3) | 0 | 2 | ||||
Segment performance | 269.3 | 264.6 | 177.9 | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Segment performance | 269.3 | 264.6 | 177.9 | ||||
Unusual items | (0.3) | 0 | 2 | ||||
Operating Segments | Real Estate | |||||||
Net Sales: | |||||||
Net favorable effect of the changes in contract estimates on net sales | 7.5 | 7.8 | 6.4 | ||||
Segment Performance: | |||||||
Segment performance | 2.1 | 2.8 | 2.5 | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Segment performance | 2.1 | 2.8 | 2.5 | ||||
Segment Reconciling Items | |||||||
Segment Performance: | |||||||
Unusual items | 0 | (0.2) | (1) | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Interest expense | (35.7) | (34.4) | (30.9) | ||||
Interest income | 15.5 | 10 | 3.5 | ||||
Stock-based compensation expense | (27.3) | (20.5) | (22) | ||||
Unusual items | 0 | (0.2) | (1) | ||||
Corporate | |||||||
Segment Performance: | |||||||
Retirement benefits, net | (7.2) | (13.4) | (20) | ||||
Reconciliation of segment performance to loss from continuing operations before income taxes: | |||||||
Corporate and other | (24.8) | (20.3) | (23.1) | ||||
Capital expenditures | 0 | 1 | 0.1 | ||||
Depreciation and amortization | $ 0.4 | $ 0.3 | $ 0.3 |
Operating Segments and Relate_5
Operating Segments and Related Disclosures - Selected Financial Information for Each Reportable Segment, Components of Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,707.8 | $ 2,490.1 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,647.9 | 1,680.1 |
Operating Segments | Aerospace and Defense | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,515.1 | 1,551.7 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Assets | 132.8 | 128.4 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 1,059.9 | $ 810 |
Cost Reduction Plans - Narrativ
Cost Reduction Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |||
Estimated restructuring and related costs over next four years | $ 197 | ||
Expected capital expenditures | 60.5 | ||
Costs incurred to date | 170.4 | ||
Capital expenditures incurred to date | 53.5 | ||
Accelerated depreciation expense | $ 0.9 | $ 1.3 | $ 3.9 |
Cost Reduction Plans - Summary
Cost Reduction Plans - Summary of the CIP Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 23.2 | $ 33.4 | $ 8.9 |
Accrual | 5.5 | 5.9 | 28.3 |
Payments | (18.9) | (16.1) | (3.8) |
Ending balance | 9.8 | 23.2 | 33.4 |
Severance | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 18.1 | 30 | 6.8 |
Accrual | 0 | 0.2 | 26.1 |
Payments | (12.9) | (12.1) | (2.9) |
Ending balance | 5.2 | 18.1 | 30 |
Retention | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 5.1 | 3.4 | 2.1 |
Accrual | 5.5 | 5.7 | 2.2 |
Payments | (6) | (4) | (0.9) |
Ending balance | $ 4.6 | $ 5.1 | $ 3.4 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||
Net sales | $ 523 | $ 481.8 | $ 485 | $ 491.7 | $ 1,981.5 | $ 1,895.9 | $ 1,877.2 |
Cost of sales (exclusive of items shown separately on Statement of Operations) | 443.5 | 392.9 | 379.6 | 397.6 | 1,613.6 | 1,549.4 | 1,562.2 |
Income before income taxes | 37.2 | 43.5 | 59.4 | 51.8 | 191.9 | 188.6 | 86.9 |
Net income | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Basic EPS (in USD per share) | $ 0.32 | $ 0.42 | $ 0.56 | $ 0.49 | $ 1.79 | $ 1.80 | $ (0.13) |
Diluted EPS (in USD per share) | $ 0.30 | $ 0.39 | $ 0.54 | $ 0.47 | $ 1.69 | $ 1.75 | $ (0.13) |
Unusual Items - Schedule of Unu
Unusual Items - Schedule of Unusual Items Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unusual or Infrequent Item [Line Items] | |||
Total unusual items | $ 0.3 | $ 0.2 | $ (1) |
Aerospace and Defense | |||
Unusual or Infrequent Item [Line Items] | |||
Gain on legal matters | 0 | 0 | (2) |
Acquisition costs | 0.3 | 0 | 0 |
Total unusual items | 0.3 | 0 | (2) |
Corporate | |||
Unusual or Infrequent Item [Line Items] | |||
Acquisition costs | 0 | 0 | 1 |
Loss on bank amendment | 0 | 0.2 | 0 |
Total unusual items | $ 0 | $ 0.2 | $ 1 |
Adoption of Revenue Recogniti_3
Adoption of Revenue Recognition Guidance - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of change in accounting guidance | $ 37.6 | $ 0.3 |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of change in accounting guidance | 37.6 | |
ASU 2014-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of change in accounting guidance | $ 37.6 |
Adoption of Revenue Recogniti_4
Adoption of Revenue Recognition Guidance - Effect of Revenue Recognition on Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net sales | $ 523 | $ 481.8 | $ 485 | $ 491.7 | $ 1,981.5 | $ 1,895.9 | $ 1,877.2 |
Operating costs and expenses: | |||||||
Cost of sales (exclusive of items shown separately below) | 443.5 | 392.9 | 379.6 | 397.6 | 1,613.6 | 1,549.4 | 1,562.2 |
Selling, general and administrative expense | 53.6 | 43.8 | 47 | ||||
Depreciation and amortization | 74.5 | 72.3 | 72.6 | ||||
Other income, net | (40.2) | ||||||
Total operating costs and expenses | 1,743.3 | 1,625.3 | 1,689.7 | ||||
Operating income | 238.2 | 270.6 | 187.5 | ||||
Total non-operating expense, net | 46.3 | 82 | 100.6 | ||||
Income before income taxes | 37.2 | 43.5 | 59.4 | 51.8 | 191.9 | 188.6 | 86.9 |
Income tax provision | 50.9 | 51.3 | 96.1 | ||||
Net income (loss) | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Basic: | |||||||
Basic earnings (loss) per share (in USD per share) | $ 0.32 | $ 0.42 | $ 0.56 | $ 0.49 | $ 1.79 | $ 1.80 | $ (0.13) |
Diluted: | |||||||
Diluted earnings (loss) per share (in USD per share) | $ 0.30 | $ 0.39 | $ 0.54 | $ 0.47 | $ 1.69 | $ 1.75 | $ (0.13) |
Weighted average shares of common stock outstanding, basic (in shares) | 77.2 | 74.8 | 73 | ||||
Weighted average shares of common stock outstanding, diluted (in shares) | 81.7 | 76.8 | 73 | ||||
Effect of Adoption | ASU 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net sales | $ 14.1 | ||||||
Operating costs and expenses: | |||||||
Cost of sales (exclusive of items shown separately below) | 27.2 | ||||||
Selling, general and administrative expense | 0 | ||||||
Depreciation and amortization | 0 | ||||||
Other income, net | 0 | ||||||
Total operating costs and expenses | 27.2 | ||||||
Operating income | (13.1) | ||||||
Income before income taxes | (13.1) | ||||||
Income tax provision | (3.5) | ||||||
Net income (loss) | $ (9.6) | ||||||
Basic: | |||||||
Basic earnings (loss) per share (in USD per share) | $ (0.13) | ||||||
Diluted: | |||||||
Diluted earnings (loss) per share (in USD per share) | $ (0.12) | ||||||
Weighted average shares of common stock outstanding, basic (in shares) | 0 | ||||||
Weighted average shares of common stock outstanding, diluted (in shares) | 0 | ||||||
Amounts Excluding Effect of Adoption | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net sales | $ 1,910 | ||||||
Operating costs and expenses: | |||||||
Cost of sales (exclusive of items shown separately below) | 1,576.6 | ||||||
Selling, general and administrative expense | 43.8 | ||||||
Depreciation and amortization | 72.3 | ||||||
Other income, net | (40.2) | ||||||
Total operating costs and expenses | 1,652.5 | ||||||
Operating income | 257.5 | ||||||
Total non-operating expense, net | 82 | ||||||
Income before income taxes | 175.5 | ||||||
Income tax provision | 47.8 | ||||||
Net income (loss) | $ 127.7 | ||||||
Basic: | |||||||
Basic earnings (loss) per share (in USD per share) | $ 1.67 | ||||||
Diluted: | |||||||
Diluted earnings (loss) per share (in USD per share) | $ 1.63 | ||||||
Weighted average shares of common stock outstanding, basic (in shares) | 74.8 | ||||||
Weighted average shares of common stock outstanding, diluted (in shares) | 76.8 |
Adoption of Revenue Recogniti_5
Adoption of Revenue Recognition Guidance - Effect of Revenue Recognition on Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net income (loss) | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Other comprehensive income: | |||||||
Actuarial losses and amortization of actuarial losses, net of income taxes | 33.2 | ||||||
Comprehensive income | $ 143.9 | 170.5 | $ 21.2 | ||||
Effect of Adoption | ASU 2014-09 | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net income (loss) | (9.6) | ||||||
Other comprehensive income: | |||||||
Actuarial losses and amortization of actuarial losses, net of income taxes | 0 | ||||||
Comprehensive income | (9.6) | ||||||
Amounts Excluding Effect of Adoption | |||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||
Net income (loss) | 127.7 | ||||||
Other comprehensive income: | |||||||
Actuarial losses and amortization of actuarial losses, net of income taxes | 33.2 | ||||||
Comprehensive income | $ 160.9 |
Adoption of Revenue Recogniti_6
Adoption of Revenue Recognition Guidance - Effect of Revenue Recognition on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||||
Cash and cash equivalents | $ 932.6 | $ 735.3 | ||
Restricted cash | 5 | |||
Accounts receivable, net | 112.5 | 141.2 | ||
Contract assets | 224.1 | 235.1 | ||
Other current assets, net | 145.8 | 117.7 | ||
Total Current Assets | 1,418 | 1,234.3 | ||
Noncurrent Assets | ||||
Property, plant and equipment, net | 399.7 | |||
Recoverable environmental remediation costs | 234.8 | 251.1 | ||
Deferred income taxes | 121.9 | 116.9 | ||
Goodwill | 161.4 | 161.3 | ||
Intangible assets | 58.2 | 71.8 | ||
Other noncurrent assets, net | 255.6 | 255 | ||
Total Noncurrent Assets | 1,289.8 | 1,255.8 | ||
Total Assets | 2,707.8 | 2,490.1 | ||
Current Liabilities | ||||
Current portion of long-term debt | 284.7 | 273.1 | ||
Accounts payable | 127.3 | 88.7 | ||
Reserves for environmental remediation costs | 40.1 | 39.8 | ||
Contract liabilities | 262.3 | 272.6 | ||
Other current liabilities | 155.5 | 204.1 | ||
Total Current Liabilities | 869.9 | 878.3 | ||
Total Noncurrent Liabilities | 1,261.2 | 1,190.5 | ||
Total Liabilities | 2,131.1 | 2,068.8 | ||
Commitments and contingencies (Note 9) | ||||
Total Stockholders’ Equity | 576.7 | 421.3 | $ 102.4 | $ 34.5 |
Total Liabilities and Stockholders’ Equity | $ 2,707.8 | 2,490.1 | ||
Effect of Adoption | ASU 2014-09 | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | |||
Restricted cash | 0 | |||
Accounts receivable, net | (86.5) | |||
Contract assets | 21.3 | |||
Other current assets, net | (2) | |||
Total Current Assets | (67.2) | |||
Noncurrent Assets | ||||
Property, plant and equipment, net | 0 | |||
Recoverable environmental remediation costs | 0 | |||
Deferred income taxes | (20.5) | |||
Goodwill | 0 | |||
Intangible assets | 0 | |||
Other noncurrent assets, net | 0 | |||
Total Noncurrent Assets | (20.5) | |||
Total Assets | (87.7) | |||
Current Liabilities | ||||
Current portion of long-term debt | 0 | |||
Accounts payable | 0 | |||
Reserves for environmental remediation costs | 0 | |||
Contract liabilities | (8.8) | |||
Other current liabilities | (31.7) | |||
Total Current Liabilities | (40.5) | |||
Total Noncurrent Liabilities | 0 | |||
Total Liabilities | (40.5) | |||
Total Stockholders’ Equity | (47.2) | |||
Total Liabilities and Stockholders’ Equity | (87.7) | |||
Amounts Excluding Effect of Adoption | ||||
Current Assets | ||||
Cash and cash equivalents | 735.3 | |||
Restricted cash | 5 | |||
Accounts receivable, net | 54.7 | |||
Contract assets | 256.4 | |||
Other current assets, net | 115.7 | |||
Total Current Assets | 1,167.1 | |||
Noncurrent Assets | ||||
Property, plant and equipment, net | 399.7 | |||
Recoverable environmental remediation costs | 251.1 | |||
Deferred income taxes | 96.4 | |||
Goodwill | 161.3 | |||
Intangible assets | 71.8 | |||
Other noncurrent assets, net | 255 | |||
Total Noncurrent Assets | 1,235.3 | |||
Total Assets | 2,402.4 | |||
Current Liabilities | ||||
Current portion of long-term debt | 273.1 | |||
Accounts payable | 88.7 | |||
Reserves for environmental remediation costs | 39.8 | |||
Contract liabilities | 263.8 | |||
Other current liabilities | 172.4 | |||
Total Current Liabilities | 837.8 | |||
Total Noncurrent Liabilities | 1,190.5 | |||
Total Liabilities | 2,028.3 | |||
Total Stockholders’ Equity | 374.1 | |||
Total Liabilities and Stockholders’ Equity | $ 2,402.4 |
Adoption of Revenue Recogniti_7
Adoption of Revenue Recognition Guidance - Effect of Revenue Recognition on Statement of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||||||
Net income | $ 25.3 | $ 32.9 | $ 44.1 | $ 38.7 | $ 141 | $ 137.3 | $ (9.2) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 74.5 | 72.3 | 72.6 | ||||
Amortization of debt discount and deferred financing costs | 9.4 | 8.9 | 8.5 | ||||
Stock-based compensation | 27.3 | 20.5 | 22 | ||||
Retirement benefits, net | 21.6 | 15.9 | (8.2) | ||||
Other, net | (0.6) | (2.2) | 0.7 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 28.8 | (47.3) | 5.6 | ||||
Contract assets | 11 | 10.5 | (20.5) | ||||
Other current assets, net | (27.9) | 21.5 | 8.9 | ||||
Recoverable environmental remediation costs | 16.3 | (20) | 8.7 | ||||
Other noncurrent assets | (6.3) | 5.8 | (31.4) | ||||
Accounts payable | 20.3 | (39.4) | 1.6 | ||||
Contract liabilities | (10.3) | 29.2 | 30.7 | ||||
Other current liabilities | (72.5) | 40.9 | (6.5) | ||||
Deferred income taxes | (5.7) | 4.7 | 125.7 | ||||
Reserves for environmental remediation costs | (18.7) | (13.5) | (8.3) | ||||
Other noncurrent liabilities and other | 53 | 7.6 | 11.9 | ||||
Net Cash Provided by Operating Activities | 261.2 | 252.7 | 212.8 | ||||
Investing Activities | |||||||
Net Cash Used in Investing Activities | (41.8) | (20.9) | (66.4) | ||||
Financing Activities | |||||||
Net Cash Used in Financing Activities | (24.1) | (26.5) | (21.7) | ||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 195.3 | 205.3 | 124.7 | ||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 740.3 | 740.3 | 535 | 410.3 | |||
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 935.6 | 935.6 | 740.3 | 535 | |||
Amounts Excluding Effect of Adoption | |||||||
Operating Activities | |||||||
Net income | 127.7 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 72.3 | ||||||
Amortization of debt discount and deferred financing costs | 8.9 | ||||||
Stock-based compensation | 20.5 | ||||||
Retirement benefits, net | 15.9 | ||||||
Other, net | (2.2) | ||||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 9.8 | ||||||
Contract assets | 11.7 | ||||||
Other current assets, net | 13.4 | ||||||
Recoverable environmental remediation costs | (20) | ||||||
Other noncurrent assets | 5.8 | ||||||
Accounts payable | (39.4) | ||||||
Contract liabilities | (13) | ||||||
Other current liabilities | 9.1 | ||||||
Deferred income taxes | 38.1 | ||||||
Reserves for environmental remediation costs | (13.5) | ||||||
Other noncurrent liabilities and other | 7.6 | ||||||
Net Cash Provided by Operating Activities | 252.7 | ||||||
Investing Activities | |||||||
Net Cash Used in Investing Activities | (20.9) | ||||||
Financing Activities | |||||||
Net Cash Used in Financing Activities | (26.5) | ||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 205.3 | ||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 740.3 | 740.3 | 535 | ||||
Cash, Cash Equivalents and Restricted Cash at End of Year | 740.3 | 535 | |||||
Effect of Adoption | ASU 2014-09 | |||||||
Operating Activities | |||||||
Net income | (9.6) | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 0 | ||||||
Amortization of debt discount and deferred financing costs | 0 | ||||||
Stock-based compensation | 0 | ||||||
Retirement benefits, net | 0 | ||||||
Other, net | 0 | ||||||
Changes in assets and liabilities: | |||||||
Accounts receivable, net | 57.1 | ||||||
Contract assets | 1.2 | ||||||
Other current assets, net | (8.1) | ||||||
Recoverable environmental remediation costs | 0 | ||||||
Other noncurrent assets | 0 | ||||||
Accounts payable | 0 | ||||||
Contract liabilities | (42.2) | ||||||
Other current liabilities | (31.8) | ||||||
Deferred income taxes | 33.4 | ||||||
Reserves for environmental remediation costs | 0 | ||||||
Other noncurrent liabilities and other | 0 | ||||||
Net Cash Provided by Operating Activities | 0 | ||||||
Investing Activities | |||||||
Net Cash Used in Investing Activities | 0 | ||||||
Financing Activities | |||||||
Net Cash Used in Financing Activities | 0 | ||||||
Net Increase in Cash, Cash Equivalents and Restricted Cash | 0 | ||||||
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | $ 0 | $ 0 | 0 | ||||
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 0 | $ 0 |
Uncategorized Items - ajrd20191
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 300,000 |