Loading...
Docoh

Aerojet Rocketdyne (AJRD)

Cover Page

Cover Page - shares9 Months Ended
Sep. 30, 2020Oct. 20, 2020
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateSep. 30,
2020
Document Transition Reportfalse
Entity File Number1-01520
Entity Registrant NameAerojet Rocketdyne Holdings, Inc.
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number34-0244000
Entity Address, Address Line One222 N. Pacific Coast Highway
Entity Address, Address Line TwoSuite 500
Entity Address, City or TownEl Segundo
Entity Address, State or ProvinceCA
Entity Address, Postal Zip Code90245
City Area Code310
Local Phone Number252-8100
Title of 12(b) SecurityCommon stock, $0.10 par value
Trading SymbolAJRD
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding77,279,471
Amendment Flagfalse
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ3
Entity Central Index Key0000040888
Current Fiscal Year End Date--12-31

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Income Statement [Abstract]
Net sales $ 527.7 $ 481.8 $ 1,516.2 $ 1,458.5
Operating costs and expenses:
Cost of sales (exclusive of items shown separately below)441.6 392.9 1,251.7 1,170.1
Selling, general and administrative expense11.2 15.1 31 44.2
Depreciation and amortization15.1 18.4 49.7 53.4
Other expense, net3.3 0.3 1.2 1.3
Total operating costs and expenses471.2 426.7 1,333.6 1,269
Operating income56.5 55.1 182.6 189.5
Non-operating:
Retirement benefits expense9.1 6.5 27.4 19.5
Interest income(0.5)(3.9)(4.7)(11.9)
Interest expense7.2 9 23 27.2
Total non-operating expense, net15.8 11.6 45.7 34.8
Income before income taxes40.7 43.5 136.9 154.7
Income tax provision9 10.6 34.6 39
Net income $ 31.7 $ 32.9 $ 102.3 $ 115.7
Earnings per share of common stock
Basic earnings per share (in dollars per share) $ 0.40 $ 0.42 $ 1.30 $ 1.47
Diluted earnings per share (in dollars per share) $ 0.38 $ 0.39 $ 1.23 $ 1.39
Weighted average shares of common stock outstanding, basic (in shares)77.6 77.3 77.6 77.1
Weighted average shares of common stock outstanding, diluted (in shares)81.9 82.8 82.4 81.5

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income $ 31.7 $ 32.9 $ 102.3 $ 115.7
Other comprehensive income:
Amortization of net actuarial losses, net of income taxes of $3.3 million, $2.2 million, $10.0 million, and $6.8 million10.1 6.9 30.3 20.9
Comprehensive income $ 41.8 $ 39.8 $ 132.6 $ 136.6

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Income taxes $ 3.3 $ 2.2 $ 10 $ 6.8

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Current Assets
Cash and cash equivalents $ 1,010 $ 932.6
Restricted cash3 3
Marketable securities1.5 0
Accounts receivable, net182.4 112.5
Contract assets273.3 224.1
Other current assets, net138.5 145.8
Total Current Assets1,608.7 1,418
Noncurrent Assets
Right-of-use assets48.9 48
Property, plant and equipment, net403.8 409.9
Recoverable environmental remediation costs228.8 234.8
Deferred income taxes107.8 121.9
Goodwill161.4 161.4
Intangible assets48 58.2
Other noncurrent assets, net247.4 255.6
Total Noncurrent Assets1,246.1 1,289.8
Total Assets2,854.8 2,707.8
Current Liabilities
Current portion of long-term debt297.7 284.7
Accounts payable93.7 127.3
Reserves for environmental remediation costs42.1 40.1
Contract liabilities343.4 262.3
Other current liabilities144.2 155.5
Total Current Liabilities921.1 869.9
Noncurrent Liabilities
Long-term debt331.4 352.3
Reserves for environmental remediation costs262 269.1
Pension benefits379.9 398.9
Operating lease liabilities38.3 39.1
Other noncurrent liabilities213.2 201.8
Total Noncurrent Liabilities1,224.8 1,261.2
Total Liabilities2,145.9 2,131.1
Commitments and contingencies (Note 8)
Stockholders’ Equity
Preferred stock, par value of $1.00; 15.0 million shares authorized; none issued or outstanding0 0
Common stock, par value of $0.10; 150.0 million shares authorized; 77.4 million shares issued and outstanding as of September 30, 2020; 77.3 million shares issued and outstanding as of December 31, 20197.7 7.7
Other capital585.2 573.3
Treasury stock at cost, 1.1 million shares as of September 30, 2020; 0.8 million shares as of December 31, 2019(25)(12.7)
Retained earnings347.2 244.9
Accumulated other comprehensive loss, net of income taxes(206.2)(236.5)
Total Stockholders’ Equity708.9 576.7
Total Liabilities and Stockholders’ Equity $ 2,854.8 $ 2,707.8

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / sharesSep. 30, 2020Dec. 31, 2019
Statement of Financial Position [Abstract]
Preference stock, par value (in USD per share) $ 1 $ 1
Preference stock, shares authorized (in shares)15,000,000 15,000,000
Preference stock, shares issued (in shares)0 0
Preference stock, shares outstanding (in shares)0 0
Common stock, par value (in USD per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares)150,000,000 150,000,000
Common stock, shares issued (in shares)77,400,000 77,300,000
Common stock, shares outstanding (in shares)77,400,000 77,300,000
Treasury stock, shares (in shares)1,100,000 800,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in MillionsTotalCommon StockOther CapitalTreasury StockRetained EarningsAccumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 201876.8
Beginning 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 income115.7 115.7
Amortization of net actuarial losses, net of income taxes20.9 20.9
Repurchase of shares for withholding taxes and option costs under equity plans (in shares)(0.3)
Repurchase of shares for withholding taxes and option costs under equity plans(7.5)(7.5)
Stock-based compensation and other, net (in shares)0.8
Stock-based compensation and shares issued under equity plans16.3 16.3
Ending balance (in shares) at Sep. 30, 201977.3
Ending balance at Sep. 30, 2019566.7 $ 7.7 570.6 (12.7)219.6 (218.5)
Beginning balance (in shares) at Jun. 30, 201977.1
Beginning balance at Jun. 30, 2019521 $ 7.7 564.7 (12.7)186.7 (225.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income32.9 32.9
Amortization of net actuarial losses, net of income taxes6.9 6.9
Repurchase of shares for withholding taxes and option costs under equity plans(0.8)(0.8)
Stock-based compensation and other, net (in shares)0.2
Stock-based compensation and shares issued under equity plans6.7 6.7
Ending balance (in shares) at Sep. 30, 201977.3
Ending balance at Sep. 30, 2019566.7 $ 7.7 570.6 (12.7)219.6 (218.5)
Beginning balance (in shares) at Dec. 31, 201977.3
Beginning balance at Dec. 31, 2019576.7 $ 7.7 573.3 (12.7)244.9 (236.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income102.3 102.3
Amortization of net actuarial losses, net of income taxes $ 30.3 30.3
Purchase of treasury stock (in shares)(0.3)
Purchase of treasury stock $ (12.3)(12.3)
Repurchase of shares for withholding taxes and option costs under equity plans (in shares)(0.2)
Repurchase of shares for withholding taxes and option costs under equity plans(8.8)(8.8)
Stock-based compensation and other, net (in shares)0.6
Stock-based compensation and shares issued under equity plans20.7 20.7
Ending balance (in shares) at Sep. 30, 202077.4
Ending balance at Sep. 30, 2020708.9 $ 7.7 585.2 (25)347.2 (206.2)
Beginning balance (in shares) at Jun. 30, 202077.6
Beginning balance at Jun. 30, 2020671.3 $ 7.7 577.6 (13.2)315.5 (216.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income31.7 31.7
Amortization of net actuarial losses, net of income taxes $ 10.1 10.1
Purchase of treasury stock (in shares)(0.3)
Purchase of treasury stock $ (11.8)(11.8)
Repurchase of shares for withholding taxes and option costs under equity plans(0.6)(0.6)
Stock-based compensation and other, net (in shares)0.1
Stock-based compensation and shares issued under equity plans8.2 8.2
Ending balance (in shares) at Sep. 30, 202077.4
Ending balance at Sep. 30, 2020 $ 708.9 $ 7.7 $ 585.2 $ (25) $ 347.2 $ (206.2)

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions9 Months Ended
Sep. 30, 2020Sep. 30, 2019
Operating Activities
Net income $ 102.3 $ 115.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization49.7 53.4
Amortization of debt discount and deferred financing costs7.4 7
Stock-based compensation13.2 24.5
Retirement benefits, net18.9 16.2
Other, net0.2 0.3
Changes in assets and liabilities, net of effects from acquisition in 2019:
Accounts receivable, net(69.9)(29.7)
Contract assets(49.2)(2)
Other current assets, net7.3 (22.8)
Recoverable environmental remediation costs6 10.5
Other noncurrent assets, net6.9 (21.5)
Accounts payable(33.6)7.8
Contract liabilities81.1 (4.5)
Other current liabilities(12)(45.1)
Deferred income taxes4.2 (19.3)
Reserves for environmental remediation costs(5.1)(9.7)
Other noncurrent liabilities and other11.2 15.6
Net Cash Provided by Operating Activities138.6 96.4
Investing Activities
Purchases of marketable securities(26.5)0
Sales of marketable securities25 0
Capital expenditures(31)(16.3)
Net Cash Used in Investing Activities(32.5)(16.3)
Financing Activities
Debt repayments(14.7)(15.9)
Repurchase of shares for withholding taxes and option costs under equity plans(8.8)(7.5)
Proceeds from shares issued under equity plans7.1 5.1
Purchase of treasury stock(12.3)0
Net Cash Used in Financing Activities(28.7)(18.3)
Net Increase in Cash, Cash Equivalents and Restricted Cash77.4 61.8
Cash, Cash Equivalents and Restricted Cash at Beginning of Period935.6 740.3
Cash, Cash Equivalents and Restricted Cash at End of Period1,013 802.1
Supplemental disclosures of cash flow information
Cash paid for interest13.5 18.6
Cash paid for income taxes35.9 48.9
Cash refund for income taxes $ 0.4 $ 1

Basis of Presentation and Natur

Basis of Presentation and Nature of Operations9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Nature of OperationsBasis of Presentation and Nature of Operations Aerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") has prepared the accompanying unaudited condensed consolidated financial statements, including the accounts of the Company and its 100% owned and majority owned subsidiaries, in accordance with the instructions to Form 10-Q. The December 31, 2019, condensed consolidated balance sheet was derived from audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company believes the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring accruals, necessary for a fair statement of its financial position, results of operations, and cash flows for the periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the operating results for interim periods may not be indicative of the results of operations for a full year. 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 fiscal year of the Company's subsidiary, Aerojet Rocketdyne, ends on the last Saturday in December. A detailed description of the Company’s significant accounting policies can be found in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2019. During the three and nine months ended September 30, 2020, the Company’s financial results and operations were not materially adversely impacted by the coronavirus ("COVID-19") pandemic. As a defense industrial-base U.S. government contractor, the Company is considered an essential business by the U.S. and state governments and it continues to operate as such during the COVID-19 pandemic. The extent to which the Company’s future financial results could be impacted by COVID-19 pandemic depends on future developments that are highly uncertain and cannot be predicted at this time. The Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates may change, as new events occur and additional information is obtained. Actual results could differ materially from these estimates under different assumptions or conditions. Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("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. The Company adopted this new standard as of January 1, 2020, on a prospective basis and the adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows. Recently Issued Accounting Pronouncements In August 2020, the FASB issued guidance which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is effective for the Company beginning in the first quarter of 2022 and must be applied using either a modified or full retrospective approach. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

Earnings Per Share ("EPS") of C

Earnings Per Share ("EPS") of Common Stock9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]
Earnings Per Share (EPS) of Common StockEarnings Per Share ("EPS") of Common Stock The following table reconciles the numerator and denominator used to calculate basic and diluted EPS of common stock: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions, except per share amounts) Numerator: Net income $ 31.7 $ 32.9 $ 102.3 $ 115.7 Income allocated to participating securities (0.3) (0.6) (1.3) (2.2) Net income for basic and diluted EPS $ 31.4 $ 32.3 $ 101.0 $ 113.5 Denominator: Basic weighted average shares 77.6 77.3 77.6 77.1 Effect of: 2.25% Convertible Senior Notes ("2 1 / 4 % Notes") 4.2 5.4 4.7 4.3 Awards issued under equity plans 0.1 0.1 0.1 0.1 Diluted weighted average shares 81.9 82.8 82.4 81.5 Basic Basic EPS $ 0.40 $ 0.42 $ 1.30 $ 1.47 Diluted Diluted EPS $ 0.38 $ 0.39 $ 1.23 $ 1.39 Securities which would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all periods presented.

Revenue Recognition

Revenue Recognition9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue RecognitionRevenue 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. 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: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions, except per share amounts) Net favorable effect of the changes in contract estimates on net sales $ 3.2 $ 4.7 $ 20.4 $ 43.5 Net favorable effect of the changes in contract estimates on income before income taxes 3.2 4.0 21.4 43.0 Net favorable effect of the changes in contract estimates on net income 2.7 2.9 16.0 31.6 Net favorable effect of the changes in contract estimates on basic EPS 0.03 0.04 0.20 0.40 Net favorable effect of the changes in contract estimates on diluted EPS 0.03 0.03 0.19 0.38 For the nine months ended September 30, 2020, net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the Terminal High Altitude Area Defense ("THAAD"), RS-68, RL-10, and Patriot Advanced Capability-3 ("PAC-3") programs partially offset by cost growth on a portion of the Standard Missile program and the Commercial Crew program. For the nine months ended September 30, 2019, net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the THAAD, PAC-3, and RL-10 programs. 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 in the unaudited condensed consolidated balance sheets. The following table summarizes contract assets and liabilities: September 30, 2020 December 31, 2019 (In millions) Contract assets $ 280.3 $ 243.5 Reserve for overhead rate disallowance (7.0) (19.4) Contract assets, net of reserve 273.3 224.1 Contract liabilities 343.4 262.3 Net contract liabilities, net of reserve $ (70.1) $ (38.2) Net contract liabilities increased by $31.9 million from December 31, 2019, primarily due to an increase in contract advances partially offset by an increase in unbilled receivables. During the three and nine months ended September 30, 2020, the Company recognized sales of $23.2 million and $207.2 million that were included in the Company's contract liabilities as of December 31, 2019 . As of September 30, 2020, the Company’s total remaining performance obligations, also referred to as backlog, totaled $6.7 billion. The Company expects to recognize approximately 30%, or $2.1 billion, of the remaining performance obligations as sales over the next twelve months, an additional 24% the following twelve months, and 46% 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: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed-price 60 % 59 % 61 % 60 % Cost-reimbursable 40 41 39 40 The principal end user customers are primarily agencies of the U.S. government as illustrated in the following table: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 U.S. government 96 % 98 % 96 % 95 % Non U.S. government 4 2 4 5

Stock-Based Compensation

Stock-Based Compensation9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based CompensationStock-Based Compensation The following table summarizes stock-based compensation expense by type of award: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Stock Appreciation Rights $ 0.6 $ 5.1 $ (1.3) $ 12.7 Stock options 0.1 0.1 0.3 0.2 Restricted stock and restricted stock units, service based 1.5 1.3 4.7 4.0 Restricted stock and restricted stock units, performance based 3.0 2.2 8.7 6.9 Employee stock purchase plan 0.3 0.3 0.8 0.7 Total stock-based compensation expense $ 5.5 $ 9.0 $ 13.2 $ 24.5

Balance Sheet Accounts

Balance Sheet Accounts9 Months Ended
Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet AccountsBalance Sheet Accounts a. 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 September 30, 2020 Total Quoted Prices in (In millions) Money market funds $ 659.8 $ 659.8 $ — $ — Registered investment companies 2.8 2.8 — — Equity securities 1.5 1.5 — — Total $ 664.1 $ 664.1 $ — $ — 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 $ — As of December 31, 2019, 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. 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 September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 (In millions) Term loan $ 304.0 $ 328.1 $ 315.0 $ 328.1 2 1 / 4 % Notes 478.1 546.0 300.0 300.0 Total $ 782.1 $ 874.1 $ 615.0 $ 628.1 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 fair value of the term loan at September 30, 2020, was estimated based on a third-party model used to derive a relative value price using comparable corporate loans within the same industry, credit quality, and currency. At December 31, 2019, the term loan carrying value approximated fair value. b. Accounts Receivable, net September 30, 2020 December 31, 2019 (In millions) Billed receivables under long-term contracts $ 183.1 $ 122.9 Reserve on billed trade receivables (1.0) (10.6) Other trade receivables 0.3 0.2 Accounts receivable, net $ 182.4 $ 112.5 c. Other Current Assets, net September 30, 2020 December 31, 2019 (In millions) Deferred costs recoverable from the U.S. government $ 43.5 $ 47.1 Income taxes receivable 48.3 43.4 Inventories 10.7 24.0 Prepaid expenses 16.3 13.9 Other 19.7 17.4 Other current assets, net $ 138.5 $ 145.8 d. Property, Plant and Equipment, net September 30, 2020 December 31, 2019 (In millions) Land $ 71.2 $ 71.2 Buildings and improvements 435.4 434.9 Machinery and equipment, including capitalized software 460.9 488.2 Construction-in-progress 86.4 70.2 1,053.9 1,064.5 Less: accumulated depreciation (650.1) (654.6) Property, plant and equipment, net $ 403.8 $ 409.9 e. Other Noncurrent Assets, net September 30, 2020 December 31, 2019 (In millions) Real estate held for entitlement and leasing $ 101.7 $ 100.3 Deferred costs recoverable from the U.S. government 56.5 54.8 Receivable from Northrop Grumman Corporation for environmental remediation costs 42.0 46.5 Other 47.2 54.0 Other noncurrent assets, net $ 247.4 $ 255.6 f. Other Current Liabilities September 30, 2020 December 31, 2019 (In millions) Accrued compensation and employee benefits $ 102.1 $ 103.1 Other 42.1 52.4 Other current liabilities $ 144.2 $ 155.5 g. Treasury Stock During the nine months ended September 30, 2020, the Company repurchased 0.3 million of its common shares at a cost of $12.3 million. The Company reflects stock repurchases in its financial statements on a "settlement" basis.

Income Taxes

Income Taxes9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes Nine months ended September 30, 2020 2019 (In millions) Income tax provision $ 34.6 $ 39.0 In the nine months ended September 30, 2020, the income tax provision was $34.6 million for an effective tax rate of 25.3%. The Company’s effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes and certain expenditures which are permanently not deductible for tax purposes, partially offset by the impact of Research and Development ("R&D") credits. In the nine months ended September 30, 2019, the income tax provision was $39.0 million for an effective tax rate of 25.2%. The Company’s effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes and certain expenditures which are permanently not deductible for tax purposes, partially offset by the impact of R&D credits. A valuation allowance is required when it is more-likely-than-not that all or a portion of deferred tax assets may not be realized. Assessing the need for a valuation allowance requires management to evaluate, on a quarterly basis, all available evidence, both positive and negative. As of September 30, 2020, the Company continues to believe that the weight of the positive evidence outweighed the negative evidence regarding the realization of its net deferred tax assets.

Long-term Debt

Long-term Debt9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]
Long-term DebtLong-term Debt September 30, 2020 December 31, 2019 (In millions) Term loan, bearing interest at variable rates (rate of 1.90% as of September 30, 2020), maturing in September 2023 $ 315.0 $ 328.1 Unamortized deferred financing costs (1.4) (1.8) Total senior debt 313.6 326.3 Convertible senior 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 (30.6) (37.0) Total convertible senior notes 269.4 263.0 Finance leases 46.1 47.7 Total other debt 46.1 47.7 Total debt, net of unamortized discount and deferred financing costs 629.1 637.0 Less: Amounts due within one year (297.7) (284.7) Total long-term debt, net of unamortized discount and deferred financing costs $ 331.4 $ 352.3 Senior Credit Facility On September 20, 2018, the Company amended the senior secured senior credit facility (the "Senior Credit Facility") to a $1.0 billion commitment. 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"). As of September 30, 2020, the Company had zero borrowings under the Revolver and issued $29.7 million in 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. On December 31, 2018, the Term Loan began amortizing at a rate of 5.0% per annum of the original drawn amount which will increase to 7.5% per annum on December 31, 2020, and increase to 10.0% per annum on 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 September 30, 2020. 2¼% Convertible Senior Notes 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. Holders may convert their 2¼% Notes at their option from October 1, 2020, through December 31, 2020, because the Company's closing stock price exceeded $33.80 for at least 20 days in the 30 day period prior to September 30, 2020. 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 $269.4 million is classified as a current liability as of September 30, 2020. As more fully described in the indenture governing the 2¼% Notes, the holders of the 2¼% Notes may surrender all or any portion of their 2¼% Notes for conversion at any time during any calendar quarter, (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 following table summarizes information regarding the 2¼% Notes (in millions, except years, percentages, conversion rate, and conversion price): September 30, 2020 December 31, 2019 Carrying value $ 269.4 $ 263.0 Unamortized discount and deferred financing costs 30.6 37.0 Principal amount $ 300.0 $ 300.0 Carrying amount of equity component, net of equity issuance costs $ 54.5 $ 54.5 Remaining amortization period (years) 3.25 4.0 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 $39.89 on September 30, 2020, the if-converted value of the 2¼% Notes exceeded the aggregate principal amount of the 2¼% Notes by $160.3 million. The following table presents the interest expense components for the 2¼% Notes: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Interest expense-contractual interest $ 1.7 $ 1.7 $ 5.1 $ 5.1 Interest expense-amortization of debt discount 2.0 1.9 5.9 5.6 Interest expense-amortization of deferred financing costs 0.2 0.2 0.5 0.5

Commitments and Contingencies

Commitments and Contingencies9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments 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 95 asbestos cases pending as of September 30, 2020. 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 September 30, 2020, 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 September 30, 2020. b. Environmental Matters The Company is involved in approximately 40 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 15 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 September 30, 2020, the aggregate range of these anticipated environmental costs was $304.1 million to $455.3 million and the accrued amount was $304.1 million. See Note 8(c) for a summary of the environmental reserve activity. Of these accrued liabilities, approximately 98% 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 continuing to work with the EPA to address and remedy the remaining findings of the 2016 five-year remedy review and has established EPA approved action plans which include additional extraction wells, treatment, and monitoring. The Company’s action plans and implementation will be evaluated at the next EPA five-year remedy review scheduled to occur in 2021. 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 September 30, 2020, the estimated range of anticipated costs discussed above for the Sacramento, California site was $209.0 million to $332.1 million and the accrued amount was $209.0 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 8(c) for further discussion on recoverability. Baldwin Park Operable Unit ("BPOU") 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 a 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 September 30, 2020, the estimated range of anticipated costs was $79.3 million to $95.5 million and the accrued amount was $79.3 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 8(c) 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, 2019 $ 203.6 $ 89.6 $ 11.8 $ 305.0 $ 4.2 $ 309.2 Additions/Adjustments 22.8 (0.7) (0.4) 21.7 1.6 23.3 Expenditures (17.4) (9.6) (1.1) (28.1) (0.3) (28.4) September 30, 2020 $ 209.0 $ 79.3 $ 10.3 $ 298.6 $ 5.5 $ 304.1 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 was 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 parties reached a settlement on March 23, 2020, resolving the ARC Claim. The settlement provides for resolution of past costs and agreement that the $20.0 million cap had been reached, ARC becomes financially responsible subject to an allocation of future cleanup costs related to the Company’s operation of the Open Burn Unit from 2003-2009, and ARC assumes management for the ongoing remediation as required by the 2003 acquisition agreement. 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 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 which was reached in June 2017. 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 September 30, 2020 (141.7) Receivable from Northrop included in the unaudited balance sheet at September 30, 2020 $ 48.0 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 continues to seek 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 to unaudited condensed consolidated statements of operations The following table summarizes the financial information for the impact of environmental reserves and recoveries to the unaudited condensed consolidated statements of operations: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Expense to unaudited condensed consolidated statements of operations $ 3.1 $ 1.0 $ 3.3 $ 1.7 d. Arrangements with Off-Balance Sheet Risk As of September 30, 2020, 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. • $54.2 million in outstanding surety bonds to primarily satisfy indemnification obligations for environmental remediation coverage • $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.

Cost Reduction Plans

Cost Reduction Plans9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]
Cost Reduction PlansCost 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 estimates the restructuring and related costs will be $188.0 million (including approximately $56.6 million of capital expenditures) and has incurred $180.8 million of such costs through September 30, 2020, including $52.2 million in capital expenditures. The Company's current estimate of $188.0 million has decreased from December 31, 2019, primarily due to continued efficiencies in program transitions and lower than expected employee costs. The following table summarizes the Company's severance and retention liabilities related to CIP activity: Severance Retention Total (In millions) December 31, 2019 $ 5.2 $ 4.6 $ 9.8 (Adjustment) Accrual (0.8) 1.6 0.8 Payments (3.3) (4.9) (8.2) September 30, 2020 $ 1.1 $ 1.3 $ 2.4

Retirement Benefits

Retirement Benefits9 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]
Retirement BenefitsRetirement Benefits The following table presents the components of retirement benefits expense (income): Pension Benefits Postretirement Medical and Life Three months ended September 30, 2020 2019 2020 2019 (In millions) Interest cost on benefit obligation $ 10.7 $ 13.2 $ 0.2 $ 0.3 Expected return on assets (15.2) (16.2) — — Amortization of prior service costs (credits) — — — (0.1) Amortization of net losses (gains) 14.3 10.2 (0.9) (0.9) Retirement benefits expense (income) $ 9.8 $ 7.2 $ (0.7) $ (0.7) Pension Benefits Postretirement Medical and Life Nine months ended September 30, 2020 2019 2020 2019 (In millions) Interest cost on benefit obligation $ 31.9 $ 39.5 $ 0.6 $ 0.9 Expected return on assets (45.4) (48.6) — — Amortization of prior service costs (credits) 0.1 0.1 — (0.2) Amortization of net losses (gains) 43.0 30.6 (2.8) (2.8) Retirement benefits expense (income) $ 29.6 $ 21.6 $ (2.2) $ (2.1)

Operating Segments and Related

Operating Segments and Related Disclosures9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]
Operating Segments and Related DisclosuresOperating 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. The following table presents selected financial information for each reportable segment: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Net Sales: Aerospace and Defense $ 527.1 $ 480.0 $ 1,513.4 $ 1,453.1 Real Estate 0.6 1.8 2.8 5.4 Total Net Sales $ 527.7 $ 481.8 $ 1,516.2 $ 1,458.5 Segment Performance: Aerospace and Defense $ 61.5 $ 59.2 $ 184.4 $ 201.2 Environmental remediation provision adjustments (1.6) (0.8) (1.7) (1.5) GAAP/Cost Accounting Standards retirement benefits expense difference 1.8 6.6 11.1 17.5 Unusual items — — (1.8) (0.3) Aerospace and Defense Total 61.7 65.0 192.0 216.9 Real Estate (0.4) 0.4 (1.4) 1.5 Total Segment Performance $ 61.3 $ 65.4 $ 190.6 $ 218.4 Reconciliation of segment performance to income before income taxes: Segment performance $ 61.3 $ 65.4 $ 190.6 $ 218.4 Interest expense (7.2) (9.0) (23.0) (27.2) Interest income 0.5 3.9 4.7 11.9 Stock-based compensation (5.5) (9.0) (13.2) (24.5) Corporate retirement benefits (1.8) (1.8) (5.6) (5.4) Corporate and other (6.6) (6.0) (16.6) (18.5) Income before income taxes $ 40.7 $ 43.5 $ 136.9 $ 154.7 The following table summarizes customers that represented more than 10% of net sales: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Lockheed Martin Corporation 35 % 34 % 34 % 32 % NASA 21 22 22 21 Raytheon Technologies Corporation 15 15 16 17 United Launch Alliance * 10 * 11 ______

Unusual Items

Unusual Items9 Months Ended
Sep. 30, 2020
Unusual or Infrequent Items, or Both [Abstract]
Unusual ItemsUnusual Items The following table presents total unusual items, comprised of a component of other expense, net in the unaudited condensed consolidated statements of operations: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Unusual items Legal related matter $ — $ — $ 1.8 $ — Acquisition costs — — — 0.3 $ — $ — $ 1.8 $ 0.3 In the three months ended June 30, 2020, the Company recorded a reserve of $1.8 million for a legal related matter.

Subsequent Event

Subsequent Event9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent EventSubsequent Event In October 2020, the Company repurchased 1.0 million of its common shares at a cost of $39.4 million.

Basis of Presentation and Nat_2

Basis of Presentation and Nature of Operations (Policies)9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Nature of OperationsAerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") has prepared the accompanying unaudited condensed consolidated financial statements, including the accounts of the Company and its 100% owned and majority owned subsidiaries, in accordance with the instructions to Form 10-Q. The December 31, 2019, condensed consolidated balance sheet was derived from audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). These interim financial statements should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company believes the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring accruals, necessary for a fair statement of its financial position, results of operations, and cash flows for the periods presented. All significant intercompany balances and transactions have been eliminated in consolidation. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In addition, the operating results for interim periods may not be indicative of the results of operations for a full year. 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.
Recently Adopted Accounting PronouncementsRecently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board ("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. The Company adopted this new standard as of January 1, 2020, on a prospective basis and the adoption of this guidance did not have a material impact on the Company's financial position, results of operations, or cash flows. Recently Issued Accounting Pronouncements In August 2020, the FASB issued guidance which simplifies the accounting for convertible instruments. This guidance eliminates certain models that require separate accounting for embedded conversion features, in certain cases. Additionally, among other changes, the guidance eliminates certain of the conditions for equity classification for contracts in an entity’s own equity. The guidance also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This guidance is effective for the Company beginning in the first quarter of 2022 and must be applied using either a modified or full retrospective approach. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.
Revenue RecognitionRevenue RecognitionIn 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.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 in the unaudited condensed consolidated balance sheets.
Environmental ReservesEnvironmental 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.

Earnings Per Share ("EPS") of_2

Earnings Per Share ("EPS") of Common Stock (Tables)9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]
Summary of Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted Income (Loss) Per Share of Common StockThe following table reconciles the numerator and denominator used to calculate basic and diluted EPS of common stock: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions, except per share amounts) Numerator: Net income $ 31.7 $ 32.9 $ 102.3 $ 115.7 Income allocated to participating securities (0.3) (0.6) (1.3) (2.2) Net income for basic and diluted EPS $ 31.4 $ 32.3 $ 101.0 $ 113.5 Denominator: Basic weighted average shares 77.6 77.3 77.6 77.1 Effect of: 2.25% Convertible Senior Notes ("2 1 / 4 % Notes") 4.2 5.4 4.7 4.3 Awards issued under equity plans 0.1 0.1 0.1 0.1 Diluted weighted average shares 81.9 82.8 82.4 81.5 Basic Basic EPS $ 0.40 $ 0.42 $ 1.30 $ 1.47 Diluted Diluted EPS $ 0.38 $ 0.39 $ 1.23 $ 1.39

Revenue Recognition (Tables)

Revenue Recognition (Tables)9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Summary of Impact of Contracts in Progress on Statement of OperationsThe following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions, except per share amounts) Net favorable effect of the changes in contract estimates on net sales $ 3.2 $ 4.7 $ 20.4 $ 43.5 Net favorable effect of the changes in contract estimates on income before income taxes 3.2 4.0 21.4 43.0 Net favorable effect of the changes in contract estimates on net income 2.7 2.9 16.0 31.6 Net favorable effect of the changes in contract estimates on basic EPS 0.03 0.04 0.20 0.40 Net favorable effect of the changes in contract estimates on diluted EPS 0.03 0.03 0.19 0.38
Schedule of Contract Asset and LiabilityThe following table summarizes contract assets and liabilities: September 30, 2020 December 31, 2019 (In millions) Contract assets $ 280.3 $ 243.5 Reserve for overhead rate disallowance (7.0) (19.4) Contract assets, net of reserve 273.3 224.1 Contract liabilities 343.4 262.3 Net contract liabilities, net of reserve $ (70.1) $ (38.2)
Schedules of Percentage of Net Sales by Contract and Customer TypeThe following table summarizes the percentages of net sales by contract type: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed-price 60 % 59 % 61 % 60 % Cost-reimbursable 40 41 39 40 The principal end user customers are primarily agencies of the U.S. government as illustrated in the following table: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 U.S. government 96 % 98 % 96 % 95 % Non U.S. government 4 2 4 5

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Stock-Based Compensation Expense by Type of AwardThe following table summarizes stock-based compensation expense by type of award: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Stock Appreciation Rights $ 0.6 $ 5.1 $ (1.3) $ 12.7 Stock options 0.1 0.1 0.3 0.2 Restricted stock and restricted stock units, service based 1.5 1.3 4.7 4.0 Restricted stock and restricted stock units, performance based 3.0 2.2 8.7 6.9 Employee stock purchase plan 0.3 0.3 0.8 0.7 Total stock-based compensation expense $ 5.5 $ 9.0 $ 13.2 $ 24.5

Balance Sheet Accounts (Tables)

Balance Sheet Accounts (Tables)9 Months Ended
Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Fair Value of Financial Instruments Fair value measurement as of September 30, 2020 Total Quoted Prices in (In millions) Money market funds $ 659.8 $ 659.8 $ — $ — Registered investment companies 2.8 2.8 — — Equity securities 1.5 1.5 — — Total $ 664.1 $ 664.1 $ — $ — 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 $ —
Schedule of Estimated Fair Value and Principal Amount of Outstanding DebtThe following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: Fair Value Principal Amount September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 (In millions) Term loan $ 304.0 $ 328.1 $ 315.0 $ 328.1 2 1 / 4 % Notes 478.1 546.0 300.0 300.0 Total $ 782.1 $ 874.1 $ 615.0 $ 628.1
Schedule of Accounts ReceivableAccounts Receivable, net September 30, 2020 December 31, 2019 (In millions) Billed receivables under long-term contracts $ 183.1 $ 122.9 Reserve on billed trade receivables (1.0) (10.6) Other trade receivables 0.3 0.2 Accounts receivable, net $ 182.4 $ 112.5
Schedule of Other Current Assets, netOther Current Assets, net September 30, 2020 December 31, 2019 (In millions) Deferred costs recoverable from the U.S. government $ 43.5 $ 47.1 Income taxes receivable 48.3 43.4 Inventories 10.7 24.0 Prepaid expenses 16.3 13.9 Other 19.7 17.4 Other current assets, net $ 138.5 $ 145.8
Schedule of Property, Plant and Equipment, netProperty, Plant and Equipment, net September 30, 2020 December 31, 2019 (In millions) Land $ 71.2 $ 71.2 Buildings and improvements 435.4 434.9 Machinery and equipment, including capitalized software 460.9 488.2 Construction-in-progress 86.4 70.2 1,053.9 1,064.5 Less: accumulated depreciation (650.1) (654.6) Property, plant and equipment, net $ 403.8 $ 409.9
Schedule of Other Noncurrent Assets, netOther Noncurrent Assets, net September 30, 2020 December 31, 2019 (In millions) Real estate held for entitlement and leasing $ 101.7 $ 100.3 Deferred costs recoverable from the U.S. government 56.5 54.8 Receivable from Northrop Grumman Corporation for environmental remediation costs 42.0 46.5 Other 47.2 54.0 Other noncurrent assets, net $ 247.4 $ 255.6
Schedule of Other Current LiabilitiesOther Current Liabilities September 30, 2020 December 31, 2019 (In millions) Accrued compensation and employee benefits $ 102.1 $ 103.1 Other 42.1 52.4 Other current liabilities $ 144.2 $ 155.5

Income Taxes (Tables)

Income Taxes (Tables)9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax ProvisionNine months ended September 30, 2020 2019 (In millions) Income tax provision $ 34.6 $ 39.0

Long-term Debt (Tables)

Long-term Debt (Tables)9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]
Summary of Long-Term DebtSeptember 30, 2020 December 31, 2019 (In millions) Term loan, bearing interest at variable rates (rate of 1.90% as of September 30, 2020), maturing in September 2023 $ 315.0 $ 328.1 Unamortized deferred financing costs (1.4) (1.8) Total senior debt 313.6 326.3 Convertible senior 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 (30.6) (37.0) Total convertible senior notes 269.4 263.0 Finance leases 46.1 47.7 Total other debt 46.1 47.7 Total debt, net of unamortized discount and deferred financing costs 629.1 637.0 Less: Amounts due within one year (297.7) (284.7) Total long-term debt, net of unamortized discount and deferred financing costs $ 331.4 $ 352.3 The following table summarizes information regarding the 2¼% Notes (in millions, except years, percentages, conversion rate, and conversion price): September 30, 2020 December 31, 2019 Carrying value $ 269.4 $ 263.0 Unamortized discount and deferred financing costs 30.6 37.0 Principal amount $ 300.0 $ 300.0 Carrying amount of equity component, net of equity issuance costs $ 54.5 $ 54.5 Remaining amortization period (years) 3.25 4.0 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 Interest Expense componentsThe following table presents the interest expense components for the 2¼% Notes: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Interest expense-contractual interest $ 1.7 $ 1.7 $ 5.1 $ 5.1 Interest expense-amortization of debt discount 2.0 1.9 5.9 5.6 Interest expense-amortization of deferred financing costs 0.2 0.2 0.5 0.5

Commitments and Contingencies (

Commitments and Contingencies (Tables)9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Summary of Environmental Reserve ActivityThe following table summarizes the Company’s environmental reserve activity: Aerojet Aerojet Other Total Other Total (In millions) December 31, 2019 $ 203.6 $ 89.6 $ 11.8 $ 305.0 $ 4.2 $ 309.2 Additions/Adjustments 22.8 (0.7) (0.4) 21.7 1.6 23.3 Expenditures (17.4) (9.6) (1.1) (28.1) (0.3) (28.4) September 30, 2020 $ 209.0 $ 79.3 $ 10.3 $ 298.6 $ 5.5 $ 304.1
Summary of Northrop Agreement ActivityThe following table summarizes the Northrop Agreement activity (in millions): Total reimbursable costs under the Northrop Agreement $ 189.7 Amount reimbursed to the Company through September 30, 2020 (141.7) Receivable from Northrop included in the unaudited balance sheet at September 30, 2020 $ 48.0
Summary of Financial Information for the Impact of Environmental Reserves and RecoveriesThe following table summarizes the financial information for the impact of environmental reserves and recoveries to the unaudited condensed consolidated statements of operations: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Expense to unaudited condensed consolidated statements of operations $ 3.1 $ 1.0 $ 3.3 $ 1.7

Cost Reduction Plans (Tables)

Cost Reduction Plans (Tables)9 Months Ended
Sep. 30, 2020
Restructuring and Related Activities [Abstract]
Summary of the CIP Reserve ActivityThe following table summarizes the Company's severance and retention liabilities related to CIP activity: Severance Retention Total (In millions) December 31, 2019 $ 5.2 $ 4.6 $ 9.8 (Adjustment) Accrual (0.8) 1.6 0.8 Payments (3.3) (4.9) (8.2) September 30, 2020 $ 1.1 $ 1.3 $ 2.4

Retirement Benefits (Tables)

Retirement Benefits (Tables)9 Months Ended
Sep. 30, 2020
Retirement Benefits [Abstract]
Schedule of Components of Retirement Benefit Expense (Benefit)The following table presents the components of retirement benefits expense (income): Pension Benefits Postretirement Medical and Life Three months ended September 30, 2020 2019 2020 2019 (In millions) Interest cost on benefit obligation $ 10.7 $ 13.2 $ 0.2 $ 0.3 Expected return on assets (15.2) (16.2) — — Amortization of prior service costs (credits) — — — (0.1) Amortization of net losses (gains) 14.3 10.2 (0.9) (0.9) Retirement benefits expense (income) $ 9.8 $ 7.2 $ (0.7) $ (0.7) Pension Benefits Postretirement Medical and Life Nine months ended September 30, 2020 2019 2020 2019 (In millions) Interest cost on benefit obligation $ 31.9 $ 39.5 $ 0.6 $ 0.9 Expected return on assets (45.4) (48.6) — — Amortization of prior service costs (credits) 0.1 0.1 — (0.2) Amortization of net losses (gains) 43.0 30.6 (2.8) (2.8) Retirement benefits expense (income) $ 29.6 $ 21.6 $ (2.2) $ (2.1)

Operating Segments and Relate_2

Operating Segments and Related Disclosures (Tables)9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of Selected Financial Information for Each Reportable SegmentThe following table presents selected financial information for each reportable segment: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Net Sales: Aerospace and Defense $ 527.1 $ 480.0 $ 1,513.4 $ 1,453.1 Real Estate 0.6 1.8 2.8 5.4 Total Net Sales $ 527.7 $ 481.8 $ 1,516.2 $ 1,458.5 Segment Performance: Aerospace and Defense $ 61.5 $ 59.2 $ 184.4 $ 201.2 Environmental remediation provision adjustments (1.6) (0.8) (1.7) (1.5) GAAP/Cost Accounting Standards retirement benefits expense difference 1.8 6.6 11.1 17.5 Unusual items — — (1.8) (0.3) Aerospace and Defense Total 61.7 65.0 192.0 216.9 Real Estate (0.4) 0.4 (1.4) 1.5 Total Segment Performance $ 61.3 $ 65.4 $ 190.6 $ 218.4 Reconciliation of segment performance to income before income taxes: Segment performance $ 61.3 $ 65.4 $ 190.6 $ 218.4 Interest expense (7.2) (9.0) (23.0) (27.2) Interest income 0.5 3.9 4.7 11.9 Stock-based compensation (5.5) (9.0) (13.2) (24.5) Corporate retirement benefits (1.8) (1.8) (5.6) (5.4) Corporate and other (6.6) (6.0) (16.6) (18.5) Income before income taxes $ 40.7 $ 43.5 $ 136.9 $ 154.7
Summary of Customers that Represented More than 10% of Net SalesThe following table summarizes customers that represented more than 10% of net sales: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Lockheed Martin Corporation 35 % 34 % 34 % 32 % NASA 21 22 22 21 Raytheon Technologies Corporation 15 15 16 17 United Launch Alliance * 10 * 11 ______

Unusual Items (Tables)

Unusual Items (Tables)9 Months Ended
Sep. 30, 2020
Unusual or Infrequent Items, or Both [Abstract]
Summary of Unusual Items ExpenseThe following table presents total unusual items, comprised of a component of other expense, net in the unaudited condensed consolidated statements of operations: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (In millions) Unusual items Legal related matter $ — $ — $ 1.8 $ — Acquisition costs — — — 0.3 $ — $ — $ 1.8 $ 0.3

Basis of Presentation and Nat_3

Basis of Presentation and Nature of Operations - Narrative (Details)9 Months Ended
Sep. 30, 2020segment
Accounting Policies [Abstract]
Number of operating segments2

Earnings Per Share ("EPS") of_3

Earnings Per Share ("EPS") of Common Stock - Reconciliation of Numerator and Denominator (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Numerator:
Net income $ 31.7 $ 32.9 $ 102.3 $ 115.7
Income allocated to participating securities(0.3)(0.6)(1.3)(2.2)
Net income for basic earnings per share31.4 32.3 101 113.5
Net income for diluted earnings per share $ 31.4 $ 32.3 $ 101 $ 113.5
Denominator:
Basic weighted average shares (in shares)77.6 77.3 77.6 77.1
Effect of:
2.25% Convertible Senior Notes (21/4% Notes) (in shares)4.2 5.4 4.7 4.3
Awards issued under equity plans (in shares)0.1 0.1 0.1 0.1
Diluted weighted average shares (in shares)81.9 82.8 82.4 81.5
Basic
Basic earnings per share (in dollars per share) $ 0.40 $ 0.42 $ 1.30 $ 1.47
Diluted
Diluted earnings per share (in dollars per share) $ 0.38 $ 0.39 $ 1.23 $ 1.39
Convertible Debt | 2 1/4% Notes
Diluted
Debt instrument interest rate stated percentage2.25%2.25%

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Impact of the Change in Contract Estimates on Operating Results (Details) - USD ($) $ / shares in Units, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Change in Accounting Estimate [Line Items]
Net favorable effect of the changes in contract estimates on net sales $ 527.7 $ 481.8 $ 1,516.2 $ 1,458.5
Net favorable effect of the changes in contract estimates on income before income taxes40.7 43.5 136.9 154.7
Net favorable effect of the changes in contract estimates on net income $ 31.7 $ 32.9 $ 102.3 $ 115.7
Net favorable effect of the changes in contract estimates on basic EPS (USD per share) $ 0.40 $ 0.42 $ 1.30 $ 1.47
Net favorable effect of the changes in contract estimates on diluted EPS (USD per share) $ 0.38 $ 0.39 $ 1.23 $ 1.39
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 $ 3.2 $ 4.7 $ 20.4 $ 43.5
Net favorable effect of the changes in contract estimates on income before income taxes3.2 4 21.4 43
Net favorable effect of the changes in contract estimates on net income $ 2.7 $ 2.9 $ 16 $ 31.6
Net favorable effect of the changes in contract estimates on basic EPS (USD per share) $ 0.03 $ 0.04 $ 0.20 $ 0.40
Net favorable effect of the changes in contract estimates on diluted EPS (USD per share) $ 0.03 $ 0.03 $ 0.19 $ 0.38

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Contract Asset and Liability (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Contract assets $ 280.3 $ 243.5
Reserve for overhead rate disallowance(7)(19.4)
Contract assets, net of reserve273.3 224.1
Contract liabilities343.4 262.3
Net contract liabilities, net of reserve $ (70.1) $ (38.2)

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020USD ($)Sep. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Decrease in contract liabilities $ 31.9
Sales recognized, previously included in contract liabilities $ 23.2 207.2
Remaining performance obligation $ 6,700 $ 6,700
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation (percentage)30.00%30.00%
Remaining performance obligation $ 2,100 $ 2,100
Expected timing of satisfaction, period (years)12 months12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation (percentage)24.00%24.00%
Expected timing of satisfaction, period (years)12 months12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligation (percentage)46.00%46.00%
Expected timing of satisfaction, period (years)

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Percentage of Sales by Contract and Customer (Details) - Sales Revenue, Net3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Contract | Fixed-price
Concentration Risk [Line Items]
Percentage of net sales60.00%59.00%61.00%60.00%
Contract | Cost-reimbursable
Concentration Risk [Line Items]
Percentage of net sales40.00%41.00%39.00%40.00%
Customers | U.S. government
Concentration Risk [Line Items]
Percentage of net sales96.00%98.00%96.00%95.00%
Customers | Non U.S. government
Concentration Risk [Line Items]
Percentage of net sales4.00%2.00%4.00%5.00%
Segment Concentration Risk | Real Estate
Concentration Risk [Line Items]
Percentage of net sales1.00%1.00%1.00%1.00%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense $ 5.5 $ 9 $ 13.2 $ 24.5
Stock Appreciation Rights
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense0.6 5.1 (1.3)12.7
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense0.1 0.1 0.3 0.2
Restricted stock and restricted stock units, service based
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense1.5 1.3 4.7 4
Restricted stock and restricted stock units, performance based
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense3 2.2 8.7 6.9
Employee stock purchase plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense $ 0.3 $ 0.3 $ 0.8 $ 0.7

Balance Sheet Accounts - Schedu

Balance Sheet Accounts - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets $ 664.1 $ 729.6
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets664.1 629.7
Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 99.9
Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets659.8 626
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets659.8 626
Money market funds | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 0
Money market funds | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 0
Registered investment companies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets2.8 3.7
Registered investment companies | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets2.8 3.7
Registered investment companies | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 0
Registered investment companies | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0 0
Equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets1.5
Equity securities | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets1.5
Equity securities | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0
Equity securities | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets $ 0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets99.9
Commercial paper | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets0
Commercial paper | Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets99.9
Commercial paper | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial assets $ 0

Balance Sheet Accounts - Sche_2

Balance Sheet Accounts - Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Fair Value $ 782.1 $ 874.1
Principal Amount615 628.1
Term loan
Debt Instrument [Line Items]
Fair Value304 328.1
Principal Amount315 328.1
2 1/4% Notes
Debt Instrument [Line Items]
Fair Value478.1 546
Principal Amount300 300
Convertible Debt | 2 1/4% Notes
Debt Instrument [Line Items]
Principal Amount $ 269.4 $ 263
Debt instrument interest rate stated percentage2.25%

Balance Sheet Accounts - Sche_3

Balance Sheet Accounts - Schedule of Accounts Receivable (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Billed receivables under long-term contracts $ 183.1 $ 122.9
Reserve on billed trade receivables(1)(10.6)
Other trade receivables0.3 0.2
Accounts receivable, net $ 182.4 $ 112.5

Balance Sheet Accounts - Sche_4

Balance Sheet Accounts - Schedule of Other Current Assets, net (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred costs recoverable from the U.S. government $ 43.5 $ 47.1
Income taxes receivable48.3 43.4
Inventories10.7 24
Prepaid expenses16.3 13.9
Other19.7 17.4
Other current assets, net $ 138.5 $ 145.8

Balance Sheet Accounts - Sche_5

Balance Sheet Accounts - Schedule of Property, Plant and Equipment, net (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross $ 1,053.9 $ 1,064.5
Less: accumulated depreciation(650.1)(654.6)
Property, plant and equipment, net403.8 409.9
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross71.2 71.2
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross435.4 434.9
Machinery and equipment, including capitalized software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross460.9 488.2
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross $ 86.4 $ 70.2

Balance Sheet Accounts - Sche_6

Balance Sheet Accounts - Schedule of Other Noncurrent Assets, net (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Real estate held for entitlement and leasing $ 101.7 $ 100.3
Deferred costs recoverable from the U.S. government56.5 54.8
Receivable from Northrop Grumman Corporation for environmental remediation costs42 46.5
Other47.2 54
Other noncurrent assets, net $ 247.4 $ 255.6

Balance Sheet Accounts - Sche_7

Balance Sheet Accounts - Schedule of Other Current Liabilities (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation and employee benefits $ 102.1 $ 103.1
Other42.1 52.4
Other current liabilities $ 144.2 $ 155.5

Balance Sheet Accounts - Treasu

Balance Sheet Accounts - Treasury Stock (Details) - USD ($) shares in Millions, $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock repurchased (shares)0.3 0.3
Stock repurchased, value $ 11.8 $ 12.3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income tax provision $ 9 $ 10.6 $ 34.6 $ 39
Effective income tax rate25.30%25.20%
Effective income tax rate, federal statutory rate21.00%21.00%

Long-term Debt - Summary of Lon

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in MillionsSep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Finance leases $ 46.1 $ 47.7
Total debt, net of unamortized discount and deferred financing costs629.1 637
Less: Amounts due within one year(297.7)(284.7)
Total long-term debt, net of unamortized discount and deferred financing costs $ 331.4 352.3
Secured debt
Debt Instrument [Line Items]
Effective interest rate (as a percent)1.90%
Capital leases
Debt Instrument [Line Items]
Principal amount $ 46.1 47.7
Term loan | Secured debt
Debt Instrument [Line Items]
Principal amount315 328.1
Unamortized deferred financing costs(1.4)(1.8)
Senior Notes313.6 326.3
2 1/4% Notes | Convertible Debt
Debt Instrument [Line Items]
Principal amount300 300
Unamortized deferred financing costs(30.6)(37)
Total convertible senior notes269.4 $ 263
Less: Amounts due within one year $ (269.4)
Effective interest rate (as a percent)5.80%5.80%
Debt instrument interest rate stated percentage2.25%

Long-term Debt - Narrative - Se

Long-term Debt - Narrative - Senior Credit Facility (Details) - USD ($)Sep. 20, 2018Sep. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Outstanding debt balance $ 615,000,000 $ 628,100,000
Senior Credit Facility, Due 2023 | Secured debt
Debt Instrument [Line Items]
Maximum borrowing capacity $ 1,000,000,000
Maximum leverage ratio increases for two consecutive quarters0.50
Senior Credit Facility, Due 2023 | Secured debt | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity $ 650,000,000
Outstanding debt balance $ 0
Senior Credit Facility, Due 2023 | Secured debt | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity $ 350,000,000
Senior Credit Facility, Due 2023 | December 31, 2018 - December 30, 2020 | Secured debt | Term Loan
Debt Instrument [Line Items]
Annual principal payment as a percent5.00%
Senior Credit Facility, Due 2023 | December 31, 2020 - December 30, 2022 | Secured debt | Term Loan
Debt Instrument [Line Items]
Annual principal payment as a percent7.50%
Senior Credit Facility, Due 2023 | December 31, 2022 - maturity | Secured debt | Term Loan
Debt Instrument [Line Items]
Annual principal payment as a percent10.00%
Senior Credit Facility, Due 2023 | Minimum | Secured debt
Debt Instrument [Line Items]
Basis spread on variable rate on debt instrument1.75%
Required coverage ratio3
Senior Credit Facility, Due 2023 | Minimum | Secured debt | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage0.30%
Senior Credit Facility, Due 2023 | Minimum | Secured debt | Letter of credit
Debt Instrument [Line Items]
Unused capacity commitment fee percentage1.75%
Senior Credit Facility, Due 2023 | Maximum | Secured debt
Debt Instrument [Line Items]
Basis spread on variable rate on debt instrument2.50%
Leverage ratio on pro forma basis3.25
Senior Credit Facility, Due 2023 | Maximum | Secured debt | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage0.45%
Senior Credit Facility, Due 2023 | Maximum | Secured debt | Letter of credit
Debt Instrument [Line Items]
Unused capacity commitment fee percentage2.50%
Senior Credit Facility, Due 2023 | Maximum | Through September 30, 2020 | Secured debt
Debt Instrument [Line Items]
Required leverage ratio4
Senior Credit Facility, Due 2023 | Maximum | October 1, 2020 - September 30, 2021 | Secured debt
Debt Instrument [Line Items]
Required leverage ratio3.75
Senior Credit Facility, Due 2023 | Maximum | October 1, 2021, therafter | Secured debt
Debt Instrument [Line Items]
Required leverage ratio3.50

Long-term Debt - 2.25% Converti

Long-term Debt - 2.25% Convertible Senior Notes (Details)3 Months Ended9 Months Ended12 Months Ended
Sep. 30, 2020USD ($)$ / sharesSep. 30, 2019USD ($)Sep. 30, 2020USD ($)d$ / sharesSep. 30, 2019USD ($)Dec. 31, 2019USD ($)$ / sharesDec. 14, 2016USD ($)
Debt Instrument [Line Items]
Current portion of long-term debt $ 297,700,000 $ 297,700,000 $ 284,700,000
Carrying value $ 615,000,000 $ 615,000,000 628,100,000
Share price (in USD per share) | $ / shares $ 39.89 $ 39.89
Interest expense components for 2 1/4% Notes
Interest expense-contractual interest $ 1,700,000 $ 1,700,000 $ 5,100,000 $ 5,100,000
Interest expense-amortization of debt discount2,000,000 1,900,000 5,900,000 5,600,000
Interest expense-amortization of deferred financing costs200,000 $ 200,000 500,000 $ 500,000
2 1/4% Notes
Debt Instrument [Line Items]
Carrying value300,000,000 $ 300,000,000 300,000,000
Convertible Debt | 2 1/4% Notes
Debt Instrument [Line Items]
Principal amount $ 300,000,000
Debt convertible trigger stock price (in USD per share) | $ / shares $ 33.80
Debt convertible threshold trading days | d20
Debt convertible threshold consecutive trading days | d30
Current portion of long-term debt269,400,000 $ 269,400,000
Convertible debt threshold percentage of stock price trigger130.00%
Carrying value269,400,000 $ 269,400,000 263,000,000
Unamortized discount and deferred financing costs30,600,000 30,600,000 37,000,000
Principal amount300,000,000 300,000,000 300,000,000
Carrying amount of equity component, net of equity issuance costs $ 54,500,000 $ 54,500,000 $ 54,500,000
Remaining amortization period (years)3 years 3 months4 years
Effective interest rate (as a percent)5.80%5.80%5.80%
Conversion rate (shares of common stock per $1,000 principal amount)0.0384615 0.0384615
Conversion price (in USD per share) | $ / shares $ 26 $ 26 $ 26
Debt Component of Convertible Debt | 2 1/4% Notes
Debt Instrument [Line Items]
If-converted value in excess of principal $ 160,300,000

Commitments and Contingencies -

Commitments and Contingencies - Narrative - Legal Matters (Details)Sep. 30, 2020legal_matter
Asbestos Litigation
Loss Contingencies [Line Items]
Unresolved asbestos cases pending95

Commitments and Contingencies_2

Commitments and Contingencies - Narrative - Environmental Matters (Details)May 09, 2017Sep. 30, 2020USD ($)legal_matterDec. 31, 2002USD ($)awater_companyrespondentDec. 31, 2019USD ($)Oct. 31, 2001USD ($)
Site Contingency [Line Items]
Accrued environmental costs $ 304,100,000 $ 309,200,000
Guarantee obligations $ 120,000,000
Various Environmental Matters
Site Contingency [Line Items]
Number of environmental remediation matters (over) | legal_matter40
Accrued environmental costs $ 304,100,000
Environmental obligation funding percent98.00%
Various Environmental Matters | Sacramento, California
Site Contingency [Line Items]
Accrued environmental costs $ 209,000,000
Various Environmental Matters | Sacramento, California | Environmental Protection Agency
Site Contingency [Line Items]
Non-contaminated land | a2,600
Various Environmental Matters | Sacramento, California | As Reported
Site Contingency [Line Items]
Guarantee obligations $ 20,000,000
Various Environmental Matters | Baldwin Park Operable Unit
Site Contingency [Line Items]
Accrued environmental costs $ 79,300,000
Guarantee obligations $ 25,000,000
Various Environmental Matters | Baldwin Park Operable Unit | Aerojet Rocketdyne, Inc.
Site Contingency [Line Items]
Percentage of responsibility in all project costs74.00%
Various Environmental Matters | Baldwin Park Operable Unit | Environmental Protection Agency
Site Contingency [Line Items]
Number of respondents | respondent7
Number of water companies | water_company5
Term of arrangement (years)10 years
Various Environmental Matters | Minimum
Site Contingency [Line Items]
Estimated environmental costs $ 304,100,000
Various Environmental Matters | Minimum | Sacramento, California
Site Contingency [Line Items]
Estimated environmental costs209,000,000
Various Environmental Matters | Minimum | Baldwin Park Operable Unit
Site Contingency [Line Items]
Estimated environmental costs79,300,000
Various Environmental Matters | Maximum
Site Contingency [Line Items]
Estimated environmental costs455,300,000
Various Environmental Matters | Maximum | Sacramento, California
Site Contingency [Line Items]
Estimated environmental costs332,100,000
Guarantee obligations $ 75,000,000
Various Environmental Matters | Maximum | Baldwin Park Operable Unit
Site Contingency [Line Items]
Estimated environmental costs $ 95,500,000

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Environmental Reserve Activity (Details) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance $ 309.2
Additions/Adjustments23.3
Expenditures(28.4)
Ending balance304.1
Aerojet Rocketdyne- Sacramento
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance203.6
Additions/Adjustments22.8
Expenditures(17.4)
Ending balance209
Aerojet Rocketdyne- BPOU
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance89.6
Additions/Adjustments(0.7)
Expenditures(9.6)
Ending balance79.3
Other Aerojet Rocketdyne Sites
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance11.8
Additions/Adjustments(0.4)
Expenditures(1.1)
Ending balance10.3
Total Aerojet Rocketdyne
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance305
Additions/Adjustments21.7
Expenditures(28.1)
Ending balance298.6
Other
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance4.2
Additions/Adjustments1.6
Expenditures(0.3)
Ending balance $ 5.5

Commitments and Contingencies_4

Commitments and Contingencies - Narrative - Environmental Reserves and Estimated Recoveries (Details) - USD ($)3 Months Ended9 Months Ended12 Months Ended
Mar. 31, 2017Sep. 30, 2020Nov. 30, 2003
Site Contingency [Line Items]
Environmental remediation cost expected period (years)15 years
Non-reimbursable percentage of environmental costs12.00%
Northrop
Site Contingency [Line Items]
Percentage of environmental remediation costs recoverable88.00%
Current annual billing limitation $ 6,000,000
Reimbursable remediation cost $ 189,700,000
Atlantic Research Corporation
Site Contingency [Line Items]
Pre-close environmental costs $ 20,000,000 $ 20,000,000

Commitments and Contingencies_5

Commitments and Contingencies - Summary of Northrop Agreement Activity (Details) - Northrop $ in MillionsSep. 30, 2020USD ($)
Contingencies And Commitments [Line Items]
Total reimbursable costs under the Northrop Agreement $ 189.7
Amount reimbursed to the Company through September 30, 2020(141.7)
Receivable from Northrop included in the unaudited balance sheet at September 30, 2020 $ 48

Commitments and Contingencies_6

Commitments and Contingencies - Summary of Financial Information for the Impact of Environmental Reserves and Recoveries (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Expense to unaudited condensed consolidated statements of operations $ 3.1 $ 1 $ 3.3 $ 1.7

Commitments and Contingencies_7

Commitments and Contingencies - Arrangements with Off-Balance Sheet Risk (Details) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Outstanding surety bonds $ 54.2
Guarantee obligations $ 120
Product warranty period1 year
Letter of credit | Line of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letters of credit outstanding $ 29.7

Cost Reduction Plans - Narrativ

Cost Reduction Plans - Narrative (Details) $ in MillionsSep. 30, 2020USD ($)
Restructuring and Related Activities [Abstract]
Estimated restructuring and related costs over next four years $ 188
Capital expenditures expected over next four years56.6
Restructuring plan cost180.8
Capital expenditures to support the CIP $ 52.2

Cost Reduction Plans - Summary

Cost Reduction Plans - Summary of the CIP Reserve Activity (Details) $ in Millions9 Months Ended
Sep. 30, 2020USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance $ 9.8
(Adjustment) Accrual0.8
Payments(8.2)
Ending balance2.4
Severance
Restructuring Reserve [Roll Forward]
Beginning balance5.2
(Adjustment) Accrual(0.8)
Payments(3.3)
Ending balance1.1
Retention
Restructuring Reserve [Roll Forward]
Beginning balance4.6
(Adjustment) Accrual1.6
Payments(4.9)
Ending balance $ 1.3

Retirement Benefits - Schedule

Retirement Benefits - Schedule of Components of Retirement Benefit Expense (Income) (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost on benefit obligation $ 10.7 $ 13.2 $ 31.9 $ 39.5
Expected return on assets(15.2)(16.2)(45.4)(48.6)
Amortization of prior service costs (credits)0 0 0.1 0.1
Amortization of net losses (gains)14.3 10.2 43 30.6
Retirement benefits expense (income)9.8 7.2 29.6 21.6
Postretirement Medical and Life Insurance Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost on benefit obligation0.2 0.3 0.6 0.9
Expected return on assets0 0 0 0
Amortization of prior service costs (credits)0 (0.1)0 (0.2)
Amortization of net losses (gains)(0.9)(0.9)(2.8)(2.8)
Retirement benefits expense (income) $ (0.7) $ (0.7) $ (2.2) $ (2.1)

Operating Segments and Relate_3

Operating Segments and Related Disclosures - Narrative (Details)9 Months Ended
Sep. 30, 2020segment
Segment Reporting [Abstract]
Number of operating segments2

Operating Segments and Relate_4

Operating Segments and Related Disclosures - Schedule of Selected Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Net Sales:
Net sales $ 527.7 $ 481.8 $ 1,516.2 $ 1,458.5
Segment Performance:
Unusual items0 0 (1.8)(0.3)
Reconciliation of segment performance to income before income taxes:
Segment performance56.5 55.1 182.6 189.5
Interest expense(7.2)(9)(23)(27.2)
Interest income0.5 3.9 4.7 11.9
Stock-based compensation(5.5)(9)(13.2)(24.5)
Income before income taxes40.7 43.5 136.9 154.7
Operating Segments
Net Sales:
Net sales527.7 481.8 1,516.2 1,458.5
Reconciliation of segment performance to income before income taxes:
Segment performance61.3 65.4 190.6 218.4
Operating Segments | Aerospace and Defense
Net Sales:
Net sales527.1 480 1,513.4 1,453.1
Segment Performance:
Operating profit61.5 59.2 184.4 201.2
Environmental remediation provision adjustments(1.6)(0.8)(1.7)(1.5)
Retirement benefits, net1.8 6.6 11.1 17.5
Unusual items0 0 (1.8)(0.3)
Reconciliation of segment performance to income before income taxes:
Segment performance61.7 65 192 216.9
Operating Segments | Real Estate
Net Sales:
Net sales0.6 1.8 2.8 5.4
Reconciliation of segment performance to income before income taxes:
Segment performance(0.4)0.4 (1.4)1.5
Segment Reconciling Items
Reconciliation of segment performance to income before income taxes:
Segment performance61.3 65.4 190.6 218.4
Interest expense(7.2)(9)(23)(27.2)
Interest income0.5 3.9 4.7 11.9
Stock-based compensation(5.5)(9)(13.2)(24.5)
Corporate, Non-Segment
Segment Performance:
Retirement benefits, net(1.8)(1.8)(5.6)(5.4)
Reconciliation of segment performance to income before income taxes:
Corporate and other $ (6.6) $ (6) $ (16.6) $ (18.5)

Operating Segments and Relate_5

Operating Segments and Related Disclosures - Summary of Customers that Represented More than 10% of Net Sales (Details) - Customers - Sales Revenue, Net3 Months Ended9 Months Ended
Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Lockheed Martin Corporation
Revenue, Major Customer [Line Items]
Percentage of net sales35.00%34.00%34.00%32.00%
NASA
Revenue, Major Customer [Line Items]
Percentage of net sales21.00%22.00%22.00%21.00%
Raytheon Technologies Corporation
Revenue, Major Customer [Line Items]
Percentage of net sales15.00%15.00%16.00%17.00%
United Launch Alliance
Revenue, Major Customer [Line Items]
Percentage of net sales10.00%11.00%

Unusual Items - Summary of Unus

Unusual Items - Summary of Unusual Items Expense (Details) - USD ($) $ in Millions3 Months Ended9 Months Ended
Sep. 30, 2020Jun. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Unusual or Infrequent Items, or Both [Abstract]
Legal related matter $ 0 $ 1.8 $ 0 $ 1.8 $ 0
Acquisition costs0 0 0 0.3
Total unusual items $ 0 $ 0 $ 1.8 $ 0.3

Unusual Items - Narrative (Deta

Unusual Items - Narrative (Details) - USD ($) $ in MillionsMar. 29, 2019Sep. 30, 2020Jun. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Unusual or Infrequent Item [Line Items]
Legal related matter $ 0 $ 1.8 $ 0 $ 1.8 $ 0
Acquisition costs $ 0 $ 0 $ 0 $ 0.3
3D Material Technologies
Unusual or Infrequent Item [Line Items]
Acquisition costs $ 0.3

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) shares in Millions, $ in Millions1 Months Ended3 Months Ended9 Months Ended
Oct. 26, 2020Sep. 30, 2020Sep. 30, 2019Sep. 30, 2020Sep. 30, 2019
Subsequent Event [Line Items]
Repurchase of common shares, value $ 0.6 $ 0.8 $ 8.8 $ 7.5
Common Stock
Subsequent Event [Line Items]
Repurchase of common shares (in shares)0.2 0.3
Subsequent Event | Common Stock
Subsequent Event [Line Items]
Repurchase of common shares (in shares)1
Repurchase of common shares, value $ 39.4