Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 09, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-01520 | ||
Entity Registrant Name | Aerojet Rocketdyne Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-0244000 | ||
Entity Address, Address Line One | 222 N. Pacific Coast Highway | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | El Segundo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90245 | ||
City Area Code | (310) | ||
Local Phone Number | 252-8100 | ||
Title of 12(b) Security | Common stock, $0.10 par value | ||
Trading Symbol | AJRD | ||
Security Exchange Name | NYSE | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.3 | ||
Entity Common Stock, Shares Outstanding | 80,677,246 | ||
Documents Incorporated by Reference | Portions of the 2023 Proxy Statement of Aerojet Rocketdyne Holdings, Inc. relating to its annual meeting of stockholders are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000040888 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Sacramento, California |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 2,237.6 | $ 2,188 | $ 2,072.7 |
Operating costs and expenses: | |||
Cost of sales (exclusive of items shown separately below) | 1,906.2 | 1,800.1 | 1,701.3 |
Selling, general and administrative expense | 56.5 | 46 | 56.1 |
Depreciation and amortization | 57.3 | 61.4 | 65.3 |
Other expense, net | |||
Proxy costs and related litigation | 27.8 | 0 | 0 |
Legal matters | 15.7 | 0 | 0 |
Other | 28.8 | 23.5 | 9.4 |
Total operating costs and expenses | 2,092.3 | 1,931 | 1,832.1 |
Operating income | 145.3 | 257 | 240.6 |
Non-operating: | |||
Retirement benefits expense | 1.1 | 33.9 | 36.6 |
Loss on debt | 22.7 | 10.5 | 0 |
Interest income and other | (5.4) | (2.5) | (6.3) |
Interest expense | 18.6 | 20.1 | 30.1 |
Total non-operating expense, net | 37 | 62 | 60.4 |
Income before income taxes | 108.3 | 195 | 180.2 |
Income tax provision | 34.3 | 48.4 | 42.7 |
Net income | $ 74 | $ 146.6 | $ 137.5 |
Earnings per share of common stock | |||
Basic earnings per share (in USD per share) | $ 0.92 | $ 1.84 | $ 1.76 |
Diluted earnings per share (in USD per share) | $ 0.90 | $ 1.78 | $ 1.66 |
Weighted average shares of common stock outstanding, basic (in shares) | 80.3 | 79.2 | 77.4 |
Weighted average shares of common stock outstanding, diluted (in shares) | 83.3 | 81.7 | 81.9 |
Cash dividends paid per share (in USD per share) | $ 0 | $ 5 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 74 | $ 146.6 | $ 137.5 |
Other comprehensive income: | |||
Amortization of net actuarial losses, net of $7.3 million, $15.1 million, and $13.4 million of income taxes in 2022, 2021, and 2020, respectively | 20.4 | 46 | 40.3 |
Actuarial (losses) gains, net of $2.5 million, $26.5 million, and $10.4 million of income taxes in 2022, 2021, and 2020, respectively | (7) | 80.5 | (31.5) |
Amortization of prior service costs, net of income taxes | 0.1 | 0.1 | 0.1 |
Other comprehensive income, net of income taxes | 13.5 | 126.6 | 8.9 |
Comprehensive income | $ 87.5 | $ 273.2 | $ 146.4 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Income taxes netted with amortization of net actuarial losses | $ 7.3 | $ 15.1 | $ 13.4 |
Income taxes netted from actuarial gain (losses) | $ 2.5 | $ 26.5 | $ 10.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 322.1 | $ 700.4 |
Restricted cash | 3.1 | 3 |
Marketable securities | 10.5 | 10.6 |
Accounts receivable | 126.6 | 60.6 |
Contract assets | 451.1 | 354.2 |
Other current assets | 155.6 | 99.5 |
Total Current Assets | 1,069 | 1,228.3 |
Noncurrent Assets | ||
Right-of-use assets | 54.5 | 52.6 |
Property, plant and equipment, net | 420.2 | 421.1 |
Recoverable environmental remediation costs | 221.5 | 226.2 |
Deferred income taxes | 208.7 | 55.6 |
Goodwill | 161.4 | 161.4 |
Intangible assets | 28.3 | 34.9 |
Other noncurrent assets | 208.2 | 243.3 |
Total Noncurrent Assets | 1,302.8 | 1,195.1 |
Total Assets | 2,371.8 | 2,423.4 |
Current Liabilities | ||
Current portion of long-term debt | 14.7 | 166.7 |
Accounts payable | 142.1 | 132.2 |
Reserves for environmental remediation costs | 36.9 | 37.7 |
Contract liabilities | 334.7 | 366.5 |
Other current liabilities | 218.7 | 172.7 |
Total Current Liabilities | 747.1 | 875.8 |
Noncurrent Liabilities | ||
Long-term debt | 288.4 | 294.6 |
Reserves for environmental remediation costs | 253.6 | 258.7 |
Pension benefits | 229.3 | 255.9 |
Operating lease liabilities | 46.2 | 41.3 |
Other noncurrent liabilities | 265.9 | 173.8 |
Total Noncurrent Liabilities | 1,083.4 | 1,024.3 |
Total Liabilities | 1,830.5 | 1,900.1 |
Commitments and contingencies (Note 8) | ||
Stockholders’ Equity | ||
Preferred stock, par value of $1.00; 15.0 million shares authorized; none outstanding | 0 | 0 |
Common stock, par value of $0.10; 150.0 million shares authorized; 80.7 million shares outstanding as of December 31, 2022; 80.1 million shares outstanding as of December 31, 2021 | 8 | 8 |
Other capital | 507.2 | 578.1 |
Treasury stock at cost, 2.0 million at December 31, 2022; 2.1 million shares as of December 31, 2021 | (63) | (64.4) |
Retained earnings | 176.6 | 102.6 |
Accumulated other comprehensive loss, net of income taxes | (87.5) | (101) |
Total Stockholders’ Equity | 541.3 | 523.3 |
Total Liabilities and Stockholders’ Equity | $ 2,371.8 | $ 2,423.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 |
Common stock, share authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares outstanding (in shares) | 80,700,000 | 80,100,000 |
Treasury stock, shares (in shares) | 2,000,000 | 2,100,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Other Capital | Other Capital Cumulative Effect, Period of Adoption, Adjustment | Treasury stock | Retained earnings | Retained earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2019 | 77.3 | ||||||||
Beginning balance at Dec. 31, 2019 | $ 563.8 | $ 7.7 | $ 552.4 | $ (12.7) | $ 252.9 | $ (236.5) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 137.5 | 137.5 | |||||||
Other comprehensive income, net of income taxes | 8.9 | 8.9 | |||||||
Cash dividends declared | (447.8) | (447.8) | |||||||
Purchase of treasury stock (in shares) | (1.3) | ||||||||
Purchase of treasury stock | (51.7) | (51.7) | |||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations (in shares) | (0.3) | ||||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (20) | (20) | |||||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 1.1 | ||||||||
Stock-based compensation and shares issued under equity plans, net | 29.7 | 29.7 | |||||||
Ending balance (in shares) at Dec. 31, 2020 | 76.8 | ||||||||
Ending balance at Dec. 31, 2020 | 220.4 | $ 7.7 | 562.1 | (64.4) | (57.4) | (227.6) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 146.6 | 146.6 | |||||||
Other comprehensive income, net of income taxes | 126.6 | 126.6 | |||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations (in shares) | (0.1) | ||||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (5.8) | (5.8) | |||||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 0.5 | ||||||||
Stock-based compensation and shares issued under equity plans, net | 26 | 26 | |||||||
Adjustment to dividends paid | 13.4 | 13.4 | |||||||
Settlement of debt (in shares) | 2.9 | ||||||||
Settlement of debt | $ (3.9) | $ 0.3 | (4.2) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 80.1 | 80.1 | |||||||
Ending balance at Dec. 31, 2021 | $ 523.3 | $ (6.6) | $ 8 | 578.1 | $ (5.6) | (64.4) | 102.6 | $ (1) | (101) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | ||||||||
Net income | $ 74 | 74 | |||||||
Other comprehensive income, net of income taxes | $ 13.5 | 13.5 | |||||||
Purchase of treasury stock (in shares) | (1.3) | ||||||||
Purchase of treasury stock | $ (51.7) | ||||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations (in shares) | (0.1) | ||||||||
Repurchase of shares for option cost and to satisfy tax withholding obligations | (19.3) | (19.3) | |||||||
Stock-based compensation and shares issued under equity plans, net (in shares) | 0.6 | ||||||||
Stock-based compensation and shares issued under equity plans, net | 25.3 | 25.3 | |||||||
Adjustment to dividends paid | 1 | 1 | |||||||
Settlement of debt | $ (73.2) | (73.2) | |||||||
Issuance of treasury stock (in shares) | 0.1 | 0.1 | |||||||
Issuance of treasury stock | $ 3.3 | 1.9 | 1.4 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 80.7 | 80.7 | |||||||
Ending balance at Dec. 31, 2022 | $ 541.3 | $ 8 | $ 507.2 | $ (63) | $ 176.6 | $ (87.5) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | Dec. 20, 2020 | Dec. 19, 2020 |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends per share (in USD per share) | $ 5 | $ 5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income | $ 74 | $ 146.6 | $ 137.5 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 57.3 | 61.4 | 65.3 |
Amortization of debt discount and deferred financing costs | 1.5 | 5.9 | 9.9 |
Stock-based compensation | 26.6 | 20.7 | 31.4 |
Retirement benefits, net | (17.9) | 12.7 | 18.1 |
Loss on debt repurchased | 22.7 | 10.5 | 0 |
Other, net | 1.7 | (1.7) | (0.4) |
Changes in assets and liabilities: | |||
Accounts receivable, net | (66) | 15 | 36.9 |
Contract assets | (96.9) | (65.6) | (64.5) |
Other current assets, net | (56.1) | 29.9 | 11.2 |
Recoverable for environmental remediation costs | 4.7 | 1.5 | 7.1 |
Other noncurrent assets | 36.5 | 10 | 0.6 |
Accounts payable | 6.1 | 24.3 | (36.8) |
Contract liabilities | (31.8) | (40.7) | 144.9 |
Other current liabilities | 49.6 | 7.6 | (4.4) |
Deferred income taxes | (157.9) | (22) | 36.1 |
Reserves for environmental remediation costs | (5.9) | (4.2) | (8.6) |
Other noncurrent liabilities and other | 103.1 | (12.3) | (20.5) |
Net Cash (Used in) Provided by Operating Activities | (48.7) | 199.6 | 363.8 |
Investing Activities | |||
Capital expenditures | (40.7) | (37.3) | (54.6) |
Purchases of marketable securities | (1.7) | (1.9) | (31.7) |
Sale of marketable securities | 0 | 0 | 25 |
Other | 0 | 0 | 0.3 |
Net Cash Used in Investing Activities | (42.4) | (39.2) | (61) |
Financing Activities | |||
Dividend payments | (2.7) | (428.8) | 0 |
Debt principal payments | (263.8) | (182.6) | (21.7) |
Proceeds from shares issued under equity plans | 0.4 | 7.7 | 7.5 |
Repurchase of shares for withholding taxes and option costs under employee equity plans | (19.3) | (5.8) | (20) |
Purchase of treasury stock | 0 | 0 | (51.7) |
Debt amendment costs | (1.7) | 0 | 0 |
Net Cash Used in Financing Activities | (287.1) | (609.5) | (85.9) |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (378.2) | (449.1) | 216.9 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 703.4 | 1,152.5 | 935.6 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 325.2 | 703.4 | 1,152.5 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 16 | 14 | 19.7 |
Cash paid for income taxes | 71.3 | 39.7 | 56 |
Cash refund for income taxes | 0.6 | 1.6 | 13.3 |
Issuance of treasury stock | $ 3.3 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies a. Basis of Presentation and Nature of Operations The consolidated financial statements of Aerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") include the accounts of the Company and its 100% owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to financial information for prior years to conform to the current year’s presentation. The Company’s operations are organized into two segments: Aerospace and Defense — includes the operations of the Company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. ("Aerojet Rocketdyne"), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States ("U.S.") government, including the Department of Defense ("DoD"), the National Aeronautics and Space Administration ("NASA"), and major aerospace and defense prime contractors. Real Estate — includes the activities of the Company’s wholly-owned subsidiary Easton Development Company, LLC ("Easton") related to the re-zoning, entitlement, sale, and leasing of the Company’s excess real estate assets. The year of the Company's subsidiary, Aerojet Rocketdyne, ends on the last Saturday in December. Further, as a result of the 2022 calendar, Aerojet Rocketdyne had 53 weeks of operations in 2022 compared with 52 weeks of operations in 2021 and 2020. The additional week of operations, which occurred in the fourth quarter of 2022, accounted for $42.3 million in additional net sales. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Revision of Previously Issued Consolidated Financial Statements During the three months ended March 31, 2022, the Company identified an error in its accounting for income taxes associated with its 2.25% Convertible Senior Notes ("2¼% Notes"). Upon issuance of the 2¼% Notes in 2016, the Company did not record the applicable deferred tax liability associated with the conversion option that had been recorded in other capital, which resulted in an overstatement of other capital, an understatement of deferred tax liabilities and an error in income tax expense in subsequent periods. The Company evaluated the errors and concluded that the errors were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements. To correct the immaterial errors, the Company has revised its previously issued consolidated financial statements as of December 31, 2021, and for each of the years ended December 31, 2021 and 2020. Accordingly, the accompanying financial statements and relevant footnotes to the consolidated financial statements in this Annual Report on Form 10-K have been revised to correct for such immaterial errors. See Note 12 for additional information. L3Harris Technologies, Inc. ("L3Harris") Merger Agreement On December 17, 2022, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement"), with L3Harris and Aquila Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of L3Harris ("Merger Sub"), pursuant to which, subject to the terms and conditions thereof, Merger Sub will merge with and into the Company (the "Merger") with the Company being the surviving corporation and a wholly-owned subsidiary of L3Harris. Subject to the terms and conditions set forth in the Merger Agreement, each share of the Company's common stock outstanding as of immediately prior to the effective time of the Merger will be canceled and converted into the right to receive $58.00 in cash, without interest, plus, if the closing occurs after September 17, 2023, $0.0025 for each calendar day elapsed after such date to and including the closing date. Closing of the Merger is anticipated to occur in 2023, subject to various customary conditions, including stockholder approval and regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Lockheed Terminated Merger Agreement On December 20, 2020, the Company entered into an Agreement and Plan of Merger (the "Lockheed Terminated Merger Agreement") with Lockheed Martin Corporation ("Lockheed Martin") and Mizar Sub, Inc., a wholly-owned subsidiary of Lockheed Martin, pursuant to which each share of common stock of the Company would have been automatically converted into the right to receive cash in an amount equal to $51.00 per share, adjusted from $56.00 following the payment of a one-time cash dividend of $5.00 per share paid in March 2021, and the Company would have become a wholly-owned subsidiary of Lockheed Martin (the "Terminated Merger"). On January 25, 2022, the Federal Trade Commission ("FTC") filed a complaint against the Company and Lockheed Martin in the FTC’s administrative court and a complaint in U.S. federal court seeking a preliminary injunction to stop the deal pending an administrative trial. On February 13, 2022, Lockheed Martin notified the Company that it had elected to terminate the Lockheed Terminated Merger Agreement. On February 14, 2022, pursuant to the parties’ joint motion, the administrative complaint and the U.S. federal court complaint were dismissed. Coronavirus ("COVID-19") Pandemic The Company’s financial results and operations have not been materially adversely impacted by the COVID-19 pandemic. 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 Annual Report on Form 10-K. 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. b. Cash and Cash Equivalents All highly liquid debt instruments purchased with a remaining maturity at the date of purchase of three months or less are considered to be cash equivalents. The Company aggregates its cash balances by bank, and reclassifies any negative balances, if applicable, to other current liabilities. c. Restricted Cash Restricted cash as of December 31, 2022 and 2021 totaled $3.1 million and $3.0 million, respectively. The restrictions on cash were to satisfy indemnification obligations for environmental remediation coverage. d. Fair Value of Financial Instruments Financial instruments are classified using a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Fair value measurement as of December 31, 2022 Total Quoted Prices in Other Unobservable (In millions) Money market funds $ 206.1 $ 206.1 $ — $ — Commercial paper 49.9 — 49.9 — Registered investment companies 0.7 0.7 — — Equity securities 10.5 10.5 — — Total $ 267.2 $ 217.3 $ 49.9 $ — Fair value measurement as of December 31, 2021 Total Quoted Prices in Other Unobservable (In millions) Money market funds $ 388.6 $ 388.6 $ — $ — Commercial paper 35.0 — 35.0 — Registered investment companies 1.3 1.3 — — Equity securities 10.6 10.6 — — Total $ 435.5 $ 400.5 $ 35.0 $ — As of December 31, 2022 and 2021, 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. Unrealized (losses) gains on equity securities (component of interest income in the consolidated statements of operations) in 2022 and 2021 totaled $(2.0) million and $1.5 million, respectively. The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities. The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: Fair Value Principal Amount As of December 31, As of December 31, 2022 2021 2022 2021 (In millions) Term loan $ 259.4 $ 275.8 $ 262.3 $ 282.2 2 1 / 4 % Notes — 266.1 — 145.9 $ 259.4 $ 541.9 $ 262.3 $ 428.1 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 was estimated based on a third-party model used to derive a relative value price using comparable corporate loans within a similar industry, credit quality, and currency. e. Accounts Receivable Accounts Receivable represent the Company's unconditional right to consideration under the contract and include amounts billed and currently due from long-term contract customers. The amounts are stated at their net estimated realizable value. Other receivables represent amounts billed for revenue not derived from long-term contracts. f. Inventories Inventories are stated at cost (generally using the average cost method) or net realizable value. The Company capitalizes costs incurred in advance of contract award or funding in inventories if it determines that contract award or funding is probable. Amounts previously capitalized are expensed when changes in facts and circumstances indicate that a contract award or funding is no longer probable. General and administrative costs incurred throughout 2022 and 2021 totaled $256.4 million and $237.1 million, respectively, and the cumulative amount of general and administrative costs in long-term contract inventories were estimated to be $1.9 million and $1.3 million as of December 31, 2022 and 2021, respectively. Inventories are included as a component of other current assets. g. Income Taxes The Company files a consolidated U.S. federal income tax return with its 100% owned consolidated subsidiaries. The deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the period of the enactment date of the change. The carrying value of the Company’s deferred tax assets is dependent upon its ability to generate sufficient taxable income in the future. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. A review of all available positive and negative evidence is considered, including the Company’s past and future performance, the market environment in which it operates, the utilization of tax attributes in the past, the length of carryback and carryforward periods, and evaluation of potential tax planning strategies. h. Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Refurbishment costs that extend the life or increase the value of an asset are capitalized in the property accounts, whereas ordinary maintenance and repair costs are expensed as incurred. Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years Costs related to software acquired, developed or modified solely to meet the Company's internal requirements (including cloud computing arrangements) and for which there are no substantive plans to market for sale are capitalized and depreciated over 3 to 7 years. Only costs incurred after the preliminary planning stage of the project and after management has authorized and committed funds to the project are eligible for capitalization. i. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities. Finance leases are included in property, plant and equipment and debt. Operating ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense related to finance leases is included in depreciation and amortization expense. For certain technology equipment leases, when appropriate, the Company accounts for lease and nonlease (service) components separately based on a relative fair market value basis. For all other leases, the Company accounts for the lease and nonlease components (e.g., common area maintenance) on a combined basis. The discount rate used for leases is the Company's incremental borrowing rate for collateralized debt based on information available at the lease commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Leases with a term of twelve months or less and that do not include a purchase option that is likely to be exercised are treated as short-term leases and are not reflected on the balance sheet. The Company leases certain facilities, machinery and equipment (including information technology equipment), and office buildings under long-term, non-cancelable operating and finance leases. j. Real Estate Held for Entitlement and Leasing The Company capitalizes all costs associated with the real estate entitlement and leasing process. The Company classifies activities related to the entitlement, sale, and leasing of its excess real estate assets as operating activities in the consolidated statements of cash flows. Real estate held for entitlement and leasing is included as a component of other noncurrent assets. k. Goodwill Goodwill represents the excess of the purchase price of an acquired enterprise or assets over the fair values of the identifiable assets acquired and liabilities assumed. All of the Company's recorded goodwill resides in the Aerospace and Defense reporting unit. Tests for impairment of goodwill are performed on an annual basis, or at any other time if events occur or circumstances indicate that the carrying amount of goodwill may not be recoverable. Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; adverse cash flow trends; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; decline in stock price; and results of testing for recoverability of a significant asset group within a reporting unit. The Company evaluates qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is necessary to perform the first step of the goodwill test. This step is referred to as the "Step Zero" analysis. If it is determined that it is more likely than not (a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, the Company will proceed to the quantitative ("Step One") analysis to determine the existence and amount of any goodwill impairment. The Company may also perform a Step One analysis from time to time to augment its qualitative assessment. The Company evaluated goodwill using a Step Zero analysis as of October 1, 2022 and 2021, and determined that goodwill was not impaired. There can be no assurance that the Company’s estimates and assumptions made for purposes of its goodwill impairment testing will prove to be accurate predictions of the future. If the Company’s assumptions and estimates are incorrect, the Company may be required to record goodwill impairment charges in future periods. The goodwill balance as of December 31, 2022 and 2021, relates to the Company’s Aerospace and Defense segment. l. Intangible Assets Identifiable intangible assets, such as patents, trademarks, and licenses are recorded at cost or when acquired as part of a business combination at estimated fair value. Identifiable intangible assets are amortized based on when they provide the Company economic benefit, or using the straight-line method, over their estimated useful life. Amortization periods for identifiable intangible assets range from 7 years to 30 years. m. Environmental Remediation The Company expenses, on a current basis, recurring costs associated with managing hazardous substances and contamination in ongoing operations. The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a 15 year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the Baldwin Park Operable Unit ("BPOU") site are currently estimated through the term of the project agreement, which expires in May 2027. In establishing reserves, the most probable estimated amount is used when determinable, and the minimum amount is used when no single amount in the range is more probable. Environmental reserves include the costs of completing remedial investigation and feasibility studies, remedial and corrective actions, regulatory oversight costs, the cost of operation and maintenance of the remedial action plan, and employee compensation costs for employees who are expected to devote a significant amount of time to remediation efforts. Calculation of environmental reserves is based on the evaluation of currently available information with respect to each individual environmental site and considers factors such as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. Such estimates are based on the expected costs of investigation and remediation and the likelihood that other potentially responsible parties will be able to fulfill their commitments at sites where the Company may be jointly or severally liable. At the time a liability is recorded for future environmental costs, the Company records an asset for estimated future recoveries that are estimable and probable. Some of the Company’s environmental costs are eligible for future recovery in the pricing of its products and services to the U.S. government and under existing third party agreements. The Company considers the recovery probable based on the Global Settlement, U.S. government contracting regulations, and its long history of receiving reimbursement for such costs (see Notes 8(b) and 8(c)). n. Retirement Benefits The Company discontinued future benefit accruals for the defined benefit pension plans in 2009. The Company provides medical and life insurance benefits ("postretirement benefits") to certain eligible retired employees, with varied coverage by employee group. Annual charges are made for the cost of the plans, including interest costs on benefits obligations, and net amortization and deferrals, increased or reduced by the return on assets. The Company also sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees (see Note 7). o. Conditional Asset Retirement Obligations Conditional asset retirement obligations ("CAROs") are legal obligations associated with the retirement of long-lived assets. These liabilities are initially recorded at fair value and the expected asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, the Company records period-to-period changes in the CARO liability resulting from the passage of time and revisions to either the timing or the amount of the estimate of the undiscounted cash flows. CAROs associated with owned properties are based on estimated costs necessary for the legally required removal or remediation of various regulated materials, primarily asbestos disposal and radiological decontamination of an ordnance manufacturing facility. For leased properties, CAROs are based on the estimated cost of contractually required property restoration. The following table summarizes the changes in the carrying amount of CAROs: Year Ended December 31, 2022 2021 2020 (In millions) Balance at beginning of year $ 51.8 $ 51.4 $ 51.4 Additions/(reductions) and other, net 3.0 (2.3) (2.7) Accretion 2.6 2.7 2.7 Balance at end of year $ 57.4 $ 51.8 $ 51.4 p. Loss Contingencies The Company is currently involved in certain legal proceedings and has accrued its estimate of the probable costs and recoveries (in relation to environmental costs) for resolution of these claims. These estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations or cash flows for any particular period could be materially affected by changes in estimates or the effectiveness of strategies related to these proceedings. q. Warranties The Company provides product warranties in conjunction with certain product sales. The majority of the Company’s warranties are a one-year standard warranty for parts, workmanship, and compliance with specifications. On occasion, the Company has made commitments beyond the standard warranty obligation. While the Company has contracts with warranty provisions, there is not a history of any significant warranty claims experience. A reserve for warranty exposure is made on a product by product basis when it is both estimable and probable. These costs are included in the program’s estimate at completion and are expensed in accordance with the Company’s revenue recognition methodology for that particular contract. r. Revenue Recognition In the Company’s Aerospace and Defense segment, the majority of revenue is earned from long-term contracts to design, develop, and manufacture aerospace and defense products for, and provide related services to, the Company’s customers, including the U.S. government and major aerospace and defense prime contractors. Each customer contract defines the Company’s distinct performance obligations and the associated transaction price for each obligation. A contract may contain one or multiple performance obligations. In certain circumstances, multiple contracts with a customer are required to be combined in determining the distinct performance obligation. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price at which the Company would sell the promised good or service separately to the customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin. Contract modifications are routine in the performance of the Company's long-term contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The Company recognizes revenue as each performance obligation is satisfied. The majority of the Company’s aerospace and defense performance obligations are satisfied over time either as the service is provided, or as control transfers to the customer. Transfer of control is evidenced by the Company’s contractual right to payment for work performed to date plus a reasonable profit on contracts with highly customized products that have no alternative use to the Company. The Company measures progress on substantially all its performance obligations using the cost-to-cost method, which the Company believes best depicts the transfer of control of goods and services to the customer. Under the cost-to-cost method, the Company records revenues based upon costs incurred to date relative to the total estimated cost at completion. Contract costs include labor, material, overhead, and general and administrative expenses, as appropriate. Recognition of revenue and profit on long-term contracts requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion for each performance obligation. Due to the nature of the programs, developing the estimated total contract value and total cost at completion for each performance obligation requires the use of significant judgment. The contract value of long-term contracts may include variable consideration, such as incentives, awards, or penalties. The value of variable consideration is generally determined by contracted performance metrics, which may include targets for cost, performance, quality, and schedule. The Company includes variable consideration in the transaction price for the respective performance obligation at either estimated value, or most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company evaluates the contract value and cost estimates for performance obligations at least quarterly and more frequently when circumstances significantly change. Factors considered in estimating the work to be completed include, but are not limited to: labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, warranty costs, volume assumptions, anticipated labor agreements, inflationary trends, schedule and performance delays, availability of funding from the customer, and the recoverability of costs incurred outside the original contract included in any estimates to complete. When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimates has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results. The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Year Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Net (unfavorable) favorable effect of the changes in contract estimates on net sales $ (21.4) $ 34.8 $ 38.5 (Unfavorable) favorable effect of the changes in contract estimates on income before income taxes (33.8) 31.2 45.1 (Unfavorable) favorable effect of the changes in contract estimates on net income (23.1) 23.5 34.5 (Unfavorable) favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock (0.29) 0.29 0.44 (Unfavorable) favorable effect of the changes in contract estimates on diluted EPS (0.29) 0.29 0.42 The 2022 net unfavorable changes in contract estimates were primarily driven by cost growth from supply chain disruptions and necessary technical and manufacturing changes identified on a portion of the Standard Missile program. The 2021 net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the RS-68, Terminal High Altitude Area Defense ("THAAD"), Patriot Advanced Capability-3 ("PAC-3"), and RL10 programs partially offset by cost growth on a portion of the Standard Missile program and the Commercial Crew program. The 2020 net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the THAAD, RS-68, RL10, and PAC-3 programs partially offset by cost growth on a portion of the Standard Missile program and the Commercial Crew program. In the Company’s Aerospace and Defense segment, the timing of revenue recognition, customer invoicing, and collections produces accounts receivable, contract assets, and contract liabilities on the Company’s Consolidated Balance Sheet. The Company invoices in accordance with contract payment terms either based upon a recurring contract payment schedule, or as contract milestones are achieved. Customer invoices, net of reserves, represent an unconditional right of consideration. When revenue is recognized in advance of customer invoicing, a contract asset is recorded. Conversely, when customers are invoiced in advance of revenue recognition, a contract liability is recorded. Unpaid customer invoices are reflected as accounts receivable. Amounts for overhead disallowances or billing decrements are reflected in contract assets and primarily represent estimates of potential overhead costs which may not be successfully negotiated and collected. The following table summarizes contract assets and liabilities: As of December 31, 2022 2021 (In millions) Contract assets $ 458.3 $ 359.6 Reserve for overhead rate disallowance (7.2) (5.4) Contract assets, net of reserve 451.1 354.2 Contract liabilities 334.7 366.5 Net contract asset (liabilities), net of reserve $ 116.4 $ (12.3) Net contract assets increased by $128.7 million primarily due to an increase in unbilled receivables. During 2022, the Company recognized sales of $310.6 million that were included in the Company’s contract liabilities as of December 31, 2021. During 2021, the Company recognized sales of $364.9 million that were included in the Company’s contract liabilities as of December 31, 2020. Contract assets included unbilled receivables of $445.3 million and $347.1 million as of December 31, 2022 and 2021, respectively. Approximately 19% of unbilled receivables at December 31, 2022, are expected to be collected after one year. As of December 31, 2022, the Company’s total remaining performance obligations, also referred to as backlog, totaled $6.8 billion. The Company expects to recognize approximately 33%, or $2.3 billion, of the remaining performance obligations as sales over the next twelve months, an additional 27% the following twelve months, and 40% thereafter. The Company's contracts are largely categorized as either "fixed-price" (largely used by the U.S. government for production-type contracts) or "cost-reimbursable" (largely used by the U.S. government for development-type contracts). Fixed-price contracts present the risk of unreimbursed cost overruns, potentially resulting in lower than expected contract profits and margins. This risk is generally lower for cost-reimbursable contracts which, as a result, generally have a lower margin. The following table summarizes the percentages of net sales by contract type: Year Ended December 31, 2022 2021 2020 Fixed-price 55 % 57 % 61 % Cost-reimbursable 45 43 39 Revenue from real estate asset sales is recognized when a sufficient down-payment has been received, financing has been arranged and title, possession and other attributes of ownership have been transferred to the buyer. The allocation to cost of sales on real estate asset sales is based on a relative fair market value computation of the land sold which includes the basis on the Company’s book value, capitalized entitlement cos |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table reconciles the numerator and denominator used to calculate basic and diluted EPS: Year Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Numerator: Net income $ 74.0 $ 146.6 $ 137.5 Income allocated to participating securities (0.2) (0.9) (1.7) Net income for basic EPS 73.8 145.7 135.8 Interest on 2 1 / 4 % Notes 1.4 — — Net income for diluted EPS $ 75.2 $ 145.7 $ 135.8 Denominator: Basic weighted average shares 80.3 79.2 77.4 Effect of: 2 1 / 4 % Notes 3.0 2.4 4.5 Awards issued under equity plans — 0.1 — Diluted weighted average shares 83.3 81.7 81.9 Basic EPS $ 0.92 $ 1.84 $ 1.76 Diluted EPS $ 0.90 $ 1.78 $ 1.66 Securities which would have been anti-dilutive are insignificant and are excluded from the computation of diluted earnings per share in all periods presented. The increase in the dilutive effect of the 2¼% Notes in 2022 is the result of the adoption of new accounting guidance. During the three months ended September 30, 2022, the Company settled its outstanding 2¼% Notes . See Notes 1 and 6. |
Balance Sheet Accounts and Supp
Balance Sheet Accounts and Supplemental Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Accounts and Supplemental Disclosures | Balance Sheet Accounts and Supplemental Disclosures a. Accounts Receivable As of December 31, 2022 2021 (In millions) Billed $ 126.3 $ 60.3 Other trade receivables 0.3 0.3 Accounts receivable $ 126.6 $ 60.6 b. Other Current Assets As of December 31, 2022 2021 (In millions) Deferred costs recoverable from the U.S. government $ 36.9 $ 37.4 Income tax receivable (see Note 5) 24.7 13.8 Prepaid expenses 16.4 15.3 Inventories 15.8 10.0 Other 61.8 23.0 Other current assets $ 155.6 $ 99.5 c. Property, Plant and Equipment, net As of December 31, 2022 2021 (In millions) Land $ 71.1 $ 71.1 Buildings and improvements 535.4 503.0 Machinery and equipment, including capitalized software 517.5 499.1 Construction-in-progress 37.5 50.0 1,161.5 1,123.2 Less: accumulated depreciation (741.3) (702.1) Property, plant and equipment, net $ 420.2 $ 421.1 Depreciation expense for 2022, 2021, and 2020 was $48.1 million, $48.8 million, and $49.2 million, respectively. The Company had $3.8 million of property, plant and equipment additions included in accounts payable as of December 31, 2022. d. Intangible Assets As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 84.0 $ 3.2 Intellectual property\trade secrets 34.2 24.9 9.3 Trade name 21.0 6.9 14.1 Acquired technology 19.2 17.5 1.7 Intangible assets $ 161.6 $ 133.3 $ 28.3 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 81.3 $ 5.9 Intellectual property\trade secrets 34.2 22.3 11.9 Trade name 21.0 6.1 14.9 Acquired technology 19.2 17.0 2.2 Intangible assets $ 161.6 $ 126.7 $ 34.9 The intangible assets relate to the Company’s Aerospace and Defense segment. Amortization expense related to intangible assets was $6.6 million, $9.9 million, and $13.4 million in 2022, 2021, and 2020, respectively. Future amortization expense for the five succeeding years is estimated to be as follows: Year Ending December 31, Future Amortization Expense (In millions) 2023 $ 6.1 2024 4.8 2025 3.7 2026 2.1 2027 0.7 $ 17.4 e. Other Noncurrent Assets As of December 31, 2022 2021 (In millions) Real estate held for entitlement and leasing $ 105.9 $ 103.7 Receivable from Northrop Grumman Corporation ("Northrop") for environmental remediation costs 28.5 34.5 Deferred costs recoverable from the U.S. government 61.9 62.1 Other 11.9 43.0 Other noncurrent assets $ 208.2 $ 243.3 f. Other Current Liabilities As of December 31, 2022 2021 (In millions) Accrued compensation and employee benefits $ 157.2 $ 122.0 Other 61.5 50.7 Other current liabilities $ 218.7 $ 172.7 f. Other Noncurrent Liabilities As of December 31, 2022 2021 (In millions) Uncertain income tax positions (see Note 5) $ 151.3 $ 20.7 Other 114.6 153.1 Other noncurrent liabilities $ 265.9 $ 173.8 g. Accumulated Other Comprehensive Loss, Net of Income Taxes The following table presents the changes in accumulated other comprehensive loss by components, net of income taxes: Actuarial Prior Service Costs, Net Total (In millions) December 31, 2020 $ (227.6) $ — $ (227.6) Actuarial gains, net of income taxes 80.5 — 80.5 Amortization of net actuarial losses and prior service costs, net of income taxes 46.0 0.1 46.1 December 31, 2021 (101.1) 0.1 (101.0) Actuarial losses, net of income taxes (7.0) — (7.0) Amortization of net actuarial losses and prior service costs, net of income taxes 20.4 0.1 20.5 December 31, 2022 $ (87.7) $ 0.2 $ (87.5) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company and its subsidiaries lease certain facilities, machinery and equipment, an d office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one The following table summarizes the Company's lease costs: Year Ended December 31, 2022 2021 2020 (In millions) Operating lease cost $ 14.7 $ 16.0 $ 15.5 Finance lease cost: Amortization 2.2 2.6 2.9 Interest on lease liabilities 2.5 2.6 2.7 Short-term lease cost 0.5 0.5 0.5 Total lease costs $ 19.9 $ 21.7 $ 21.6 The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2022 2021 2020 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15.6 $ 15.6 $ 13.7 Operating cash flows for finance leases 2.5 2.6 2.7 Financing cash flows for finance leases 1.9 2.2 2.1 Assets obtained in exchange for lease obligations: Operating leases 14.7 36.3 11.9 The following table summarizes the supplemental balance sheet information related to leases: As of December 31, 2022 2021 (In millions) Operating leases: Operating lease right-of-use assets $ 54.5 $ 52.6 Operating lease liabilities (component of other current liabilities) $ 9.5 $ 13.4 Operating lease liabilities, noncurrent 46.2 41.3 Total operating lease liability $ 55.7 $ 54.7 Finance leases: Property, plant and equipment $ 47.8 $ 52.9 Accumulated depreciation (8.4) (11.3) Property, plant and equipment, net $ 39.4 $ 41.6 Current portion of long-term debt $ 1.3 $ 1.9 Long-term debt 40.3 41.5 Total finance lease liability $ 41.6 $ 43.4 Weighted-average remaining lease term (in years): Operating leases 7 7 Finance leases 16 16 Weighted-average discount rate: Operating leases 4.5 % 3.8 % Finance leases 5.8 % 5.9 % The Company has an additional finance lease that has not yet commenced amounting to $22.9 million. This finance lease is expected to commence in 2023 with an expected lease term of 15 years. The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2022: Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2023 $ 11.8 $ 3.7 $ 1.4 2024 9.0 3.8 1.1 2025 8.4 3.8 1.2 2026 8.2 3.9 1.2 2027 7.1 3.9 1.0 Thereafter 20.6 45.9 4.5 Total minimum rentals 65.1 65.0 10.4 Less: imputed interest (9.4) (23.4) — Total $ 55.7 $ 41.6 $ 10.4 |
Leases | Leases The Company and its subsidiaries lease certain facilities, machinery and equipment, an d office buildings under long-term, non-cancelable operating leases. The leases generally provide for renewal options ranging from one The following table summarizes the Company's lease costs: Year Ended December 31, 2022 2021 2020 (In millions) Operating lease cost $ 14.7 $ 16.0 $ 15.5 Finance lease cost: Amortization 2.2 2.6 2.9 Interest on lease liabilities 2.5 2.6 2.7 Short-term lease cost 0.5 0.5 0.5 Total lease costs $ 19.9 $ 21.7 $ 21.6 The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2022 2021 2020 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15.6 $ 15.6 $ 13.7 Operating cash flows for finance leases 2.5 2.6 2.7 Financing cash flows for finance leases 1.9 2.2 2.1 Assets obtained in exchange for lease obligations: Operating leases 14.7 36.3 11.9 The following table summarizes the supplemental balance sheet information related to leases: As of December 31, 2022 2021 (In millions) Operating leases: Operating lease right-of-use assets $ 54.5 $ 52.6 Operating lease liabilities (component of other current liabilities) $ 9.5 $ 13.4 Operating lease liabilities, noncurrent 46.2 41.3 Total operating lease liability $ 55.7 $ 54.7 Finance leases: Property, plant and equipment $ 47.8 $ 52.9 Accumulated depreciation (8.4) (11.3) Property, plant and equipment, net $ 39.4 $ 41.6 Current portion of long-term debt $ 1.3 $ 1.9 Long-term debt 40.3 41.5 Total finance lease liability $ 41.6 $ 43.4 Weighted-average remaining lease term (in years): Operating leases 7 7 Finance leases 16 16 Weighted-average discount rate: Operating leases 4.5 % 3.8 % Finance leases 5.8 % 5.9 % The Company has an additional finance lease that has not yet commenced amounting to $22.9 million. This finance lease is expected to commence in 2023 with an expected lease term of 15 years. The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2022: Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2023 $ 11.8 $ 3.7 $ 1.4 2024 9.0 3.8 1.1 2025 8.4 3.8 1.2 2026 8.2 3.9 1.2 2027 7.1 3.9 1.0 Thereafter 20.6 45.9 4.5 Total minimum rentals 65.1 65.0 10.4 Less: imputed interest (9.4) (23.4) — Total $ 55.7 $ 41.6 $ 10.4 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return with its wholly-owned subsidiaries. The following table presents the components of the Company’s income tax provision: Year Ended December 31, 2022 2021 2020 (In millions) Current U.S. federal $ 149.7 $ 56.1 $ 6.6 State and local 40.7 14.4 0.1 190.4 70.5 6.7 Deferred U.S. federal (129.9) (21.0) 24.5 State and local (26.2) (1.1) 11.5 (156.1) (22.1) 36.0 Income tax provision $ 34.3 $ 48.4 $ 42.7 The following table presents the reconciling items between the income tax provision using the U.S. federal statutory rate and the Company's reported income tax provision. Year Ended December 31, 2022 2021 2020 (In millions) Statutory U.S. federal income tax $ 22.7 $ 41.0 $ 37.9 State income taxes, net of federal benefit 11.4 11.9 9.1 Reserve adjustments (1.1) 0.1 1.2 Nondeductible compensation 4.8 1.6 3.4 Tax credits and special deductions (4.3) 0.6 (4.6) Convertible debt (0.4) (6.3) 0.2 Stock-based compensation excess tax benefits (1.4) (1.0) (4.4) False Claims Act settlement 1.9 — — Other 0.7 0.5 (0.1) Income tax provision $ 34.3 $ 48.4 $ 42.7 The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate on earnings in percentages. Year Ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 10.6 6.1 5.1 Reserve adjustments (1.0) — 0.7 Nondeductible compensation 4.4 0.8 1.9 Tax credits and special deductions (4.0) 0.3 (2.6) Convertible debt (0.4) (3.3) 0.1 Stock-based compensation excess tax benefits (1.3) (0.5) (2.4) False Claims Act settlement 1.8 — — Other 0.6 0.4 (0.1) Effective income tax rate 31.7 % 24.8 % 23.7 % In 2022, the Company’s effective tax rate was 31.7%. The Company’s effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes and certain other expenditures which are permanently not deductible for tax purposes, partially offset by R&D credits. In 2021, the Company's effective tax rate was 24.8%. The Company's effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes, uncertain tax positions, and certain expenditures which are permanently not deductible for tax purposes, offset by R&D credits, excess tax benefits related to the Company’s stock-based compensation and deductible premiums paid upon the redemption of a portion of the Company’s convertible debt. In 2020, the Company’s effective tax rate was 23.7%.The Company's effective tax rate differed from the 21% statutory federal income tax rate primarily due to state income taxes, uncertain tax positions, and certain expenditures which are permanently not deductible for tax purposes, offset by R&D credits and excess tax benefits related to the Company's stock-based compensation. On August 16, 2022, the "Inflation Reduction Act" was signed into law in the U.S. The Company evaluated the impact and the Inflation Reduction Act does not have a material impact on its financial results.. The Company is routinely examined by domestic tax authorities. While it is difficult to predict the outcome or timing of a particular tax matter, the Company believes it has adequately provided reserves for any reasonable foreseeable outcome related to these matters. As of January 31, 2023, the Company had no income tax audits open. U.S. federal tax returns for the years ended December 31, 2019, through December 31, 2021, remain open to examination. Tax returns for the years ended December 31, 2018, through December 31, 2021, remain open to examination for state income tax jurisdictions. The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2022 2021 2020 (In millions) Balances at beginning of year $ 20.0 $ 14.2 $ 58.0 Increases based on tax positions in prior years 0.4 0.3 2.7 Decreases based on tax position in prior years (2.0) (0.4) (51.5) Increases based on tax positions in current year 134.1 6.6 5.6 Lapse of statute of limitations (2.2) (0.7) (0.6) Balances at end of year $ 150.3 $ 20.0 $ 14.2 As of December 31, 2022, the total amount of unrecognized tax benefits was $150.3 million. Of the $150.3 million, $20.9 million would affect the effective tax rate. The increase in liabilities associated with uncertain tax positions and corresponding increase to net deferred tax assets is primarily resulting from the Tax Cuts and Jobs Act of 2017 elimination of the option to deduct research and experimental expenditures in the year incurred and requirement to amortize such costs incurred over five years. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2022, 2021, and 2020, the Company had $1.1 million, $0.6 million, and $0.4 million, respectively, in accrued interest and penalties related to uncertain tax positions. During 2022, 2021, and 2020, the Company recorded additional interest and penalties of $0.5 million, $0.2 million, and ($1.4) million, respectively. It is reasonably possible that a reduction of up to $5.4 million of unrecognized tax benefits and related interest and penalties may occur within the next 12 months as a result of the expiration of certain statutes of limitations. Deferred Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of the Company’s assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined by multiplying such differences by the enacted tax rates expected to be in effect when such differences are recovered or settled. The following table presents the deferred tax assets and liabilities: As of December 31, 2022 2021 (In millions) Deferred Tax Assets Capitalized research and experimental expenditures $ 156.0 $ — Accrued estimated costs 51.2 47.6 Basis difference in assets and liabilities 76.9 58.8 Operating lease liabilities 14.0 13.7 Tax losses and credit carryforwards 1.2 0.4 Net cumulative defined benefit pension plan losses 56.5 58.8 Retiree medical and life insurance benefits 3.6 4.7 Total deferred tax assets 359.4 184.0 Deferred Tax Liabilities Revenue recognition differences 123.7 104.8 Basis differences in intangible assets 13.3 10.7 ROU assets 13.7 12.9 Total deferred tax liabilities 150.7 128.4 Total net deferred tax assets $ 208.7 $ 55.6 Realization of deferred tax assets is primarily dependent on generating sufficient taxable income in future periods. The Company believes it is more likely than not its deferred tax assets will be realized. Accordingly, no valuation allowance was recorded for 2022 and 2021. The Company fully utilized its federal net operating loss carryforwards and income tax credits as of December 31, 2018. The Company utilized all of its state net operating loss carryforwards and credit carryforwards as of December 31, 2021. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of December 31, 2022 2021 (In millions) Senior debt $ 261.5 $ 281.4 Convertible senior notes — 136.5 Finance leases (see Note 4) 41.6 43.4 Total debt, carrying amount 303.1 461.3 Less: Amounts due within one year (14.7) (166.7) Total long-term debt, carrying amount $ 288.4 $ 294.6 The following table presents as of December 31, 2022, the Company’s contractual debt principal maturities excluding finance lease obligations (see Note 4): Total 2023 2024 2025 (In millions) Senior debt $ 262.3 $ 13.5 $ 13.5 $ 235.3 The Company amortizes deferred financing costs over the estimated life of the related debt (a portion of which is classified as a contra liability). Amortization of deferred financing costs was $1.5 million, $1.6 million, and $2.0 million in 2022, 2021, and 2020, respectively. a. Senior Debt As of December 31, 2022 2021 (In millions) Term loan, bearing interest at variable rates (rate of 6.17% as of December 31, 2022), maturing in September 2025 $ 262.3 $ 282.2 Unamortized deferred financing costs (0.8) (0.8) Total senior debt $ 261.5 $ 281.4 On September 28, 2022, the senior secured credit facility (the "Senior Credit Facility") was amended and consists of (i) a $650.0 million revolving line of credit (the "Revolver") and (ii) a $269.1 million term loan (the "Term Loan"). The Term Loan facility decreased from an aggregate principal amount of up to $350.0 million to $269.1 million and the amendment extended the maturity date from September 20, 2023, to September 20, 2025, amortized at a rate of 5.0% per annum. The amended Senior Credit Facility also changed the interest rate benchmark for loans from the London Inter-Bank Offered Rate ("LIBOR") to the Secured Overnight Financing Rate ("SOFR"). Other than the changes mentioned above, the amended Senior Credit Facility has substantially similar terms as the original facility. As of December 31, 2022, the Company had zero borrowings under the Revolver and had issued $28.9 million letters of credit. The Term Loan and any borrowings under the Revolver bear interest at SOFR plus a SOFR adjustment of 10 basis points for all terms and 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 alternative currency rate loans and (ii) commitment fees ranging from 30 to 45 basis points per annum on the unused portion of the Revolver. The Term Loan amortized at a rate of 5.0% per annum as of December 31, 2022. 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 of not less than 3.00 to 1.00 and (ii) maintain a Consolidated Net Leverage Ratio not to exceed 3.50 to 1.00 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 was in compliance with its financial and non-financial covenants as of December 31, 2022. b. Convertible Senior Notes As of December 31, 2022 2021 (In millions) Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023 $ — $ 145.9 Unamortized discount and deferred financing costs — (9.4) Total convertible senior notes $ — $ 136.5 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. In 2021, the Company settled $154.1 million of its 2¼% Notes. The principal amount was settled in cash and the conversion premium was settled in common shares. See Note 11. On July 15, 2022, the Company announced that it issued a notice of redemption to holders of its outstanding 2¼% Notes stating its intention to redeem all outstanding 2¼% Notes in full on September 19, 2022, in accordance with the terms of the indenture governing the 2¼% Notes. The Company elected to settle conversions of the 2¼% Notes using Cash Settlement, as defined in the indenture for the 2¼% Notes . In the three months ended September 30, 2022, the Company settled the outstanding balance of $145.9 million of its 2¼% Notes with cash totaling $242.0 million, including principal, conversion premium, irrevocable cash conversion option value, and interest. See Note 11. The Company adopted the new accounting guidance for convertible instruments effective January 1, 2022, using the modified retrospective method, with the cumulative effect recognized as of January 1, 2022. The primary impact of the new guidance was removing the requirement for the Company to account for beneficial conversion features and cash conversion features in equity, separately from the 2¼% Notes and requires the Company to use the if-converted method for the 2¼% Notes in the diluted earnings per share calculation. See Notes 1 and 2. The following table summarizes information regarding the 2¼% Notes as of December 31, 2021: Remaining amortization period (years) 2.0 Effective interest rate 5.8 % Conversion rate (shares of common stock per $1,000 principal amount) 38.4615 Conversion price (per share of common stock) $ 26.00 The following table presents the interest expense components for the 2¼% Notes: Year Ended December 31, 2022 2021 2020 (In millions) Interest expense-contractual interest $ 2.3 $ 3.3 $ 6.8 Interest expense-amortization of debt discount — 4.3 7.9 Interest expense-amortization of deferred financing costs 0.3 0.4 0.6 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits a. Plan Descriptions Pension Benefits The Company's defined benefit pension plan future benefit accrual was discontinued in 2009. As of December 31, 2022, the assets, projected benefits obligations, and unfunded pension obligations were $706.9 million, $949.7 million, and $242.8 million, respectively. The American Rescue Plan Act of 2021 ("ARPA") that was signed into law on March 11, 2021, provided funding relief to sponsors of defined benefit pension plans. In line with provisions of ARPA, the Company expects to make cash contributions of approximately $7 million to its tax-qualified defined benefit pension plan in 2023. The Company is generally able to recover contributions related to its tax-qualified defined benefit pension plan as allowable costs on its U.S. government contracts, but there are differences between when the Company contributes to its tax-qualified defined benefit pension plan under pension funding rules and when it is recoverable under Cost Accounting Standards ("CAS"). The Company estimates the CAS recoverable amounts related to the Company's retirement benefits plans to be approximately $32 million in 2023. During 2022, the Company made cash contributions of $15.4 million and used $18.4 million of prepayment credits to fund its tax-qualified defined benefit pension plan. The funded status of the Company's tax-qualified pension plan may be adversely affected by the investment experience of the plan's assets, by any changes in U.S. law and by changes in the statutory interest rates used by tax-qualified pension plans in the U.S. to calculate funding requirements. Accordingly, if the performance of the plan's assets does not meet assumptions, if there are changes to income tax regulations or other applicable law, or if other actuarial assumptions are modified, future contributions to the underfunded pension plans could be higher than the Company expects. Medical and Life Insurance Benefits The Company provides medical and life insurance benefits to certain eligible retired employees, with varied coverage by employee group. Generally, employees hired after January 1, 1997, are not eligible for retiree medical and life insurance benefits. The medical benefit plan provides for cost sharing between the Company and its retirees in the form of retiree contributions, deductibles, and coinsurance. Medical and life insurance benefits obligations are unfunded. Medical and life insurance benefit cash payments for eligible retired employees are recoverable from the Company’s U.S. government contracts. Defined Contribution 401(k) Benefits The Company sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees. The Company makes matching contributions in cash equal to 100% of the first 3% of the participants’ compensation contributed and 50% of the next 3% of the compensation contributed. The cost of the 401(k) plan was $23.7 million, $22.8 million, and $21.8 million in 2022, 2021, and 2020, respectively. b. Plan Results The following table summarizes the balance sheet impact of the Company’s pension benefits and medical and life insurance benefits. Pension benefits include the consolidated tax-qualified plan and the unfunded non-qualified plan for benefits provided to employees beyond those provided by the Company’s tax-qualified plan. Assets, benefits obligations, and the funded status of the plans were determined at December 31, 2022 and 2021. Pension Benefits Medical and As of December 31, 2022 2021 2022 2021 (In millions) Change in fair value of assets: Fair value - beginning of year $ 1,005.0 $ 957.0 $ — $ — (Loss) gain on assets (212.5) 135.7 — — Employer contributions 16.9 18.8 2.2 2.4 Benefits paid (1) (102.5) (106.5) (2.2) (2.4) Fair value - end of year $ 706.9 $ 1,005.0 $ — $ — Change in benefits obligation: Benefits obligation - beginning of year $ 1,279.3 $ 1,381.5 $ 19.6 $ 25.0 Interest cost 35.6 33.5 0.5 0.5 Actuarial gains (262.7) (29.2) (3.1) (3.5) Benefits paid (102.5) (106.5) (2.2) (2.4) Benefits obligation and accumulated benefit obligation - end of year $ 949.7 $ 1,279.3 $ 14.8 $ 19.6 Funded status of the plans $ (242.8) $ (274.3) $ (14.8) $ (19.6) Amounts recognized in the consolidated balance sheets: Postretirement medical and life insurance benefits, current $ — $ — $ (2.3) $ (2.7) Postretirement medical and life insurance benefits, noncurrent — — (12.5) (16.9) Pension liability, non-qualified current (component of other current liabilities) (1.3) (1.4) — — Pension liability, non-qualified (component of other noncurrent liabilities) (12.2) (17.0) — — Pension benefits, noncurrent (229.3) (255.9) — — Net liability recognized in the consolidated balance sheets $ (242.8) $ (274.3) $ (14.8) $ (19.6) ______ (1) Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of less than $0.1 million received in both 2022 and 2021. The pension benefits obligation actuarial gains of $262.7 million in 2022 were primarily the result of an increase in the discount rate used to determine the obligation. The discount rate was 5.56% as of December 31, 2022, compared with 2.90% as of December 31, 2021. The pension benefits obligation actuarial gains of $29.2 million in 2021 were primarily the result of an increase in the discount rate used to determine the obligation. The discount rate was 2.90% as of December 31, 2021, compared with 2.52% as of December 31, 2020. The following table presents the components of retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 (In millions) Interest cost on benefits obligation $ 35.6 $ 33.5 $ 42.5 $ 0.5 $ 0.5 $ 0.8 Assumed return on assets (62.8) (61.4) (60.5) — — — Amortization of prior service costs 0.1 0.1 0.1 — — — Amortization of net losses (gains) 30.6 63.9 57.4 (2.9) (2.7) (3.7) $ 3.5 $ 36.1 $ 39.5 $ (2.4) $ (2.2) $ (2.9) The following table presents the actual return and rate of return on assets: Year Ended December 31, 2022 2021 2020 (In millions, except rate of return) Actual (loss) gain on assets $ (212.5) $ 135.7 $ 117.1 Actual rate of return on assets (21.6) % 15.0 % 15.6 % Market conditions and interest rates significantly affect assets and liabilities of the pension plans. Pension accounting permits market gains and losses to be deferred and recognized over a period of years. This "smoothing" results in the creation of other accumulated income or loss which will be amortized to pension costs in future years. The accounting method the Company utilizes recognizes one-fifth of the unamortized gains and losses in the market-related value of pension assets and all other gains and losses including changes in the discount rate used to calculate the benefits obligation each year. Investment gains or losses for this purpose are the difference between the expected return and the actual return on the market-related value of assets which smoothes asset values over three years. Although the smoothing period mitigates some volatility in the calculation of annual retirement benefits expense, future expenses are impacted by changes in the market value of assets and changes in interest rates. c. Plan Assumptions The following table presents the assumptions, calculated based on a weighted-average, to determine the benefits obligations: Pension Medical and As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.56 % 2.90 % 5.66 % 2.77 % Discount rate (non-qualified plan) 5.58 % 2.89 % * * Ultimate healthcare trend rate * * 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * 7.00 % 6.25 % Year ultimate rate attained (pre 65/post 65) * * 2033 2029 ______ * Not applicable The following table presents the assumptions, calculated based on a weighted-average, to determine the retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 2.90 % 2.52 % 3.28 % 2.77 % 2.28 % 3.19 % Discount rate (non-qualified plan) 2.89 % 2.51 % 3.30 % * * * Expected long-term rate of return on assets 7.00 % 7.00 % 7.00 % * * * Ultimate healthcare trend rate * * * 4.50 % 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * * 6.25 % 6.50 % 5.50 % Year ultimate rate attained (pre 65/post 65) * * * 2029 2028 2022 ______ * Not applicable Certain actuarial assumptions, such as assumed discount rate, long-term rate of return, and assumed healthcare cost trend rates can have a significant effect on amounts reported for periodic cost of pension benefits and medical and life insurance benefits, as well as respective benefits obligation amounts. The assumed discount rate represents the market rate available for investments in high-quality fixed income instruments with maturities matched to the expected benefit payments for pension and medical and life insurance benefit plans. The expected long-term rate of return on assets represents the rate of earnings expected in the funds invested, and funds to be invested, to provide for anticipated benefit payments to plan participants. The Company evaluated historical investment performance, current and expected asset allocation, and, with input from the Company’s external advisors, developed best estimates of future investment performance. Based on this analysis, the Company assumed a long-term expected rate of return of 7.0% in 2022. The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates for the medical benefit plans. For 2022 medical benefits obligations, the Company assumed a 7.00% annual rate of increase for pre and post 65 participants in the per capita cost of covered healthcare claims with the rate decreasing over ten years until reaching 4.5%. d. Plan Assets and Investment Policy The Company’s investment policy is to maximize the total rate of return within a prudent risk framework, while maintaining adequate liquidity throughout volatile market cycles to meet benefits obligations when due. The Company's strategies employ active management and are generally focused on minimizing the permanent loss of capital. The Company's asset diversification objectives target a diversified portfolio that invests across the capital structure via strategies with complimentary risk and return profiles. Diversification is achieved by investing in various asset types, which may include cash, fixed income, equities, private assets, credit holdings, and future contracts. Further, the Company's strategy allows for diversification as to the types of investment vehicle structures, investment and redemption periods, and the number of investment managers used to carry out its strategy. Allocations between asset types, structures and managers may change as a result of changing market conditions, tactical investment opportunities, planned Company contributions, and cash obligations of the plan. The following table presents the asset allocations by asset category: As of December 31, 2022 2021 Cash and cash equivalents 3 % 5 % Equity securities 40 47 Fixed income 13 12 Registered investment companies 1 1 Private assets 16 10 Hedge funds 27 25 Total 100 % 100 % The following tables present the fair value by asset category and by level: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2022 Equity securities: Domestic equity securities $ 255.9 $ 255.9 $ — $ — International equity securities 26.8 26.8 — — Fixed income: Corporate debt securities 55.0 — 35.5 19.5 Asset-backed securities 24.6 — 24.6 — U.S. government securities 6.2 — 6.2 — Foreign bonds 1.2 — 1.2 — Municipal bonds 0.1 — 0.1 — Foreign exchange contracts (0.1) — (0.1) — Registered investment companies 9.9 9.9 — — Private assets 6.4 — — 6.4 Total 386.0 $ 292.6 $ 67.5 $ 25.9 Investment measured at Net Asset Value ("NAV") Private assets 104.9 Hedge funds 192.6 Common/collective trusts ("CCTs") 33.2 Total investments measured at NAV 330.7 Receivables 2.9 Payables (12.7) Total assets $ 706.9 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2021 Equity securities: Domestic equity securities $ 428.5 $ 428.5 $ — $ — International equity securities 44.2 44.2 — — Fixed income: Corporate debt securities 57.5 — 39.9 17.6 Asset-backed securities 29.3 — 29.3 — U.S. government securities 28.8 — 28.8 — Foreign bonds 0.9 — 0.9 — Derivatives 0.1 — 0.1 — Registered investment companies 13.9 13.9 — — Private assets 1.2 — — 1.2 Total 604.4 $ 486.6 $ 99.0 $ 18.8 Investment measured at NAV Private assets 97.8 Hedge funds 254.5 CCTs 56.4 Total investments measured at NAV 408.7 Receivables 9.9 Payables (18.0) Total assets $ 1,005.0 Below is a description of the significant investment strategies and valuation methodologies used for the investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. There have been no changes in the methodologies used at December 31, 2022 and 2021. Cash and cash equivalents Cash and cash equivalents are invested in money market funds or Short-Term Investment Funds ("STIFs"). Cash and cash equivalents invested in money market funds are classified as Level 1 investments. STIFs are measured at NAV and included in CCTs as a reconciling item to the fair value tables above. Equity securities Equity securities are invested broadly in U.S. and non-U.S. companies in a variety of sectors and market capitalizations. These investments are comprised of common stocks, CCTs, and other investment vehicles. Common stocks are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the year and are classified as Level 1 investments. Equity securities that are invested in common stock of private companies and priced using unobservable inputs are classified as Level 3 investments. CCTs invested in equity securities are measured at NAV and included as a reconciling item to the fair value tables above. Fixed income securities Fixed income securities are invested in a variety of instruments, including, but not limited to, corporate debt securities, U.S. government securities, CCTs, asset-backed securities, municipal bonds, foreign bonds, and other investment vehicles. Corporate debt securities are invested in corporate bonds and term loans. Corporate bonds that are valued at bid evaluations using observable and market-based inputs are classified as Level 2 investments. Corporate bonds including term loans that are priced using unobservable inputs are classified as Level 3 investments. Asset-backed securities, including government-backed mortgage securities, commercial mortgage-backed securities, auto receivable backed securities, and other asset-backed securities, are valued at bid evaluations and are classified as Level 2 investments. Municipal bonds are valued using pricing models maximizing the use of observable inputs for similar securities and are classified as Level 2 investments. Foreign bonds that are valued using pricing models maximizing the use of observable inputs for similar securities are classified as Level 2 investments. Foreign bonds that are priced using unobservable inputs are classified as Level 3 investments. CCTs invested in fixed income securities are measured at NAV and included as a reconciling item to the fair value tables above. Registered investment companies Registered investment companies are invested in corporate bonds, senior secured loans, and other fixed income. Registered investment companies are transacted at NAV published daily and are classified as Level 1 investments. Private assets Private assets are primarily limited partnerships that mainly invest in U.S. and non-U.S. leveraged buyout, venture capital and special situation strategies. Generally, the individual investments within the partnerships or funds are valued at public market, private market, or appraised value. Private assets are valued by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes. The majority of the private assets are valued at NAV and included as a reconciling item to the fair value tables above. Private assets for which there is no NAV are classified as Level 3 investments. Valuations of certain assets were based on the NAV or market value three months prior to the year-end. The Company made adjustments amounting to a decrease of $0.3 million for 2022 and an increase of $1.1 million for 2021 to account for changes since the valuation date. Hedge funds Hedge funds primarily consist of multi-strategy hedge funds that invest across a range of equity and debt securities in a variety of industry sectors. Hedge funds are valued at NAV calculated by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes and are included as a reconciling item to the fair value tables above. The following tables present the changes in the fair value of the Level 3 investments: December 31, 2021 Unrealized Realized Purchases, Sales, and December 31, (In millions) Corporate debt securities $ 17.6 $ — $ — $ 1.9 $ 19.5 Private assets 1.2 (0.1) 0.3 5.0 6.4 Total $ 18.8 $ (0.1) $ 0.3 $ 6.9 $ 25.9 December 31, 2020 Unrealized Realized Purchases, Sales, and December 31, (In millions) Equity securities $ 6.1 $ 10.1 $ 1.1 $ (17.3) $ — Corporate debt securities 31.9 0.1 — (14.4) 17.6 Private assets 3.1 — — (1.9) 1.2 Total $ 41.1 $ 10.2 $ 1.1 $ (33.6) $ 18.8 e. Benefit Payments The following table presents estimated future benefit payments: Pension Medical and Life Insurance Benefits Year Ending December 31, Gross Benefit Payments Medicare D Net Benefit (In millions) 2023 $ 95.6 $ 2.4 $ — $ 2.4 2024 93.5 2.2 0.1 2.1 2025 91.0 1.9 — 1.9 2026 88.2 1.7 — 1.7 2027 85.2 1.5 — 1.5 Years 2028 - 2032 374.4 5.4 0.1 5.3 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies a. Legal Matters The Company and its subsidiaries are subject to legal proceedings, including litigation in U.S. federal and state courts, which arise out of, and are incidental to, the ordinary course of the Company’s on-going and historical businesses. The Company is also subject from time to time to governmental investigations by federal and state agencies. The Company cannot predict the outcome of such proceedings with any degree of certainty. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss. When only a range of amounts can be reasonably estimated and no amount within the range is more likely than another, the low end of the range is recorded. These estimates are often initially developed substantially earlier than when the ultimate loss is known, and are refined each quarterly reporting period as additional information becomes available. Asbestos Litigation The Company has been, and continues to be, named as a defendant in lawsuits alleging personal injury or death and seeking various monetary damages due to exposure to asbestos in building materials, products, or in manufacturing operations. The majority of cases are pending in Illinois state courts. There were 170 asbestos cases pending as of December 31, 2022. Given the lack of any significant consistency to claims (i.e., as to product, operational site, or other relevant assertions) filed against the Company, the Company is generally unable to make a reasonable estimate of the future costs of pending claims or unasserted claims. The aggregate settlement costs and legal and administrative fees associated with the Company’s asbestos litigation has been immaterial for the last three years. As of December 31, 2022, the Company has accrued an immaterial amount related to pending claims. U.S. Securities and Exchange Commission ("SEC") Subpoena The Company received a subpoena from the SEC in November 2022 seeking documents related to securities filings and other public disclosures issued in connection with the 2022 election of directors. The Company is cooperating fully with the SEC and its staff. Civil Investigative Demand The Company is responding to a civil investigative demand issued by the Department of Justice ("DOJ") in December 2022 pursuant to the False Claims Act ("FCA") requesting documents and information relating to the Company’s compliance with certain regulatory cybersecurity requirements. The Company is cooperating fully with the DOJ. 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 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. In September 2021, each party filed a motion for summary judgment. In February 2022, the Court denied Relator’s motion for summary judgment in full and granted the Company’s motion for summary judgment in part. Specifically, the Court rejected Relator’s false certification allegations in their entirety while also significantly diminishing the number of U.S. government contracts at issue in the litigation, which number excludes both the majority of contracts specified in Relator’s Second Amended Complaint ("SAC") as well as numerous contracts regarding which Relator purported to make claims but that were not specified in the SAC. The Court found disputed issues of material fact with regard to the remaining contracts. Trial in this matter commenced on April 26, 2022. On April 27, 2022, the Company agreed to a settlement in principle as to Relator’s remaining FCA claims in the amount of $9.0 million, as well as an attorney’s fee award of $3.0 million. The U.S. Department of Justice approved the settlement on June 30, 2022, and the Court approved the settlement on July 1, 2022. City of Wabash, Indiana v. Aerojet Rocketdyne Holdings On November 15, 2021, a lawsuit entitled City of Wabash, Indiana v. Aerojet Rocketdyne Holdings, Inc., Case No. 3:21-cv-878 was filed in the United States District Court for the Northern District of Indiana against the Company alleging causes of action under the Comprehensive Environmental Response Compensation and Liability Act and the Indiana Environmental Legal Action Statute and seeking damages, reasonable attorneys’ fees and costs. The action was served on the Company on January 11, 2022. The Company will vigorously contest the complaint’s allegations and has not recorded any liability for this matter as of December 31, 2022. 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 December 31, 2022, the aggregate range of these anticipated environmental costs was $290.5 million to $447.1 million and the accrued amount was $290.5 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. Obligations under the $75 million aggregate guarantee are limited to $10 million in any year. Both the $75 million aggregate guarantee and the $10 million annual limitation are subject to adjustment annually for inflation. 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 worked with the EPA to address and remedy the findings of the 2016 five-year remedy review. On September 15, 2021, the EPA issued its second five-year remedy review and concluded that the remedies are functioning as intended for the soil and groundwater contamination and that the vapor intrusion investigation and mitigation activities are protective against vapor intrusion risks. The Company is working with the EPA, DTSC, and RWQCB on the implementation of required onsite land use restrictions. The entire southern portion of the site known as Rio Del Oro was under state orders issued in the 1990s from DTSC and the RWQCB to investigate and remediate soil and groundwater contamination. In 2008, the DTSC released all but approximately 400 acres of the Rio Del Oro property from DTSC’s environmental orders regarding soil contamination although the property remains subject to the RWQCB’s orders to investigate and remediate groundwater environmental contamination emanating offsite from the property. As of December 31, 2022, the estimated range of anticipated costs discussed above for the Sacramento, California site was $223.6 million to $357.0 million and the accrued amount was $223.6 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 8(c) below for further discussion on recoverability. Baldwin Park Operable Unit As a result of its former Azusa, California operations, in 1994, Aerojet Rocketdyne was named a PRP by the EPA in the area of the San Gabriel Valley Basin superfund site known as the BPOU. In 2002, Aerojet Rocketdyne, along with seven other PRPs (the "Cooperating Respondents") signed a project agreement with the San Gabriel Basin Water Quality Authority, the Main San Gabriel Basin Watermaster, and five water companies. The 2002 project agreement terminated in 2017 and the parties executed a project agreement which became operational on May 9, 2017. The agreement has a ten-year term and requires the Cooperating Respondents to fund through an escrow account the ongoing operation, maintenance, and administrative costs of certain treatment and water distribution facilities owned and operated by the water companies. There are also provisions in the project agreement for maintaining financial assurance. Pursuant to the 2017 agreement with the remaining Cooperating Respondents, Aerojet Rocketdyne's current share of future BPOU costs will be approximately 74%. As part of Aerojet Rocketdyne’s sale of its Electronics and Information Systems ("EIS") business to Northrop 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 December 31, 2022, the estimated range of anticipated costs was $50.8 million to $62.6 million and the accrued amount was $50.8 million included as a component of the Company’s environmental reserves. Expenditures associated with this matter are partially recoverable. See Note 8(c) below for further discussion on recoverability. c. Environmental Reserves and Estimated Recoveries Environmental Reserves The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a fifteen year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the BPOU site are currently estimated through the term of the project agreement, which expires in May 2027. As the period for which estimated environmental remediation costs lengthens, the reliability of such estimates decreases. These estimates consider the investigative work and analysis of engineers, outside environmental consultants, and the advice of legal staff regarding the status and anticipated results of various administrative and legal proceedings. In most cases, only a range of reasonably possible costs can be estimated. In establishing the Company’s reserves, the most probable estimate is used when determinable; otherwise, the minimum amount is used when no single amount in the range is more probable. Accordingly, such estimates can change as the Company periodically evaluates and revises these estimates as new information becomes available. The Company cannot predict whether new information gained as projects progress will affect the estimated liability accrued. The timing of payment for estimated future environmental costs is influenced by a number of factors, such as the regulatory approval process and the time required designing, constructing, and implementing the remedy. The following table summarizes the Company’s environmental reserve activity: Aerojet Aerojet Other Total Other Total (In millions) December 31, 2019 $ 203.6 $ 89.6 $ 11.8 $ 305.0 $ 4.2 $ 309.2 Additions 30.9 (0.2) — 30.7 1.7 32.4 Expenditures (26.1) (13.2) (1.2) (40.5) (0.5) (41.0) December 31, 2020 208.4 76.2 10.6 295.2 5.4 300.6 Additions 28.8 2.5 3.7 35.0 0.3 35.3 Expenditures (22.5) (14.0) (2.5) (39.0) (0.5) (39.5) December 31, 2021 214.7 64.7 11.8 291.2 5.2 296.4 Additions 31.4 1.6 0.3 33.3 0.5 33.8 Expenditures (22.5) (15.5) (1.3) (39.3) (0.4) (39.7) December 31, 2022 $ 223.6 $ 50.8 $ 10.8 $ 285.2 $ 5.3 $ 290.5 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. 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 December 31, 2022 (155.2) Receivable from Northrop included in the balance sheet at December 31, 2022 $ 34.5 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 on the consolidated statements of operations The following table summarizes the financial information for the impact of environmental reserves and recoveries to the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (In millions) Expense to consolidated statement of operations $ 4.1 $ 4.1 $ 4.3 As of December 31, 2022, arrangements with off-balance sheet risk consisted of: • $28.9 million in outstanding commercial letters of credit, the majority of which may be renewed, primarily to collateralize obligations for environmental remediation and insurance coverage. • $76.0 million in outstanding surety bonds to primarily satisfy indemnification obligations for environmental remediation coverage. • $42.0 million in commitments associated with professional consulting services related to the Merger with L3Harris. • Up to $120.0 million aggregate in guarantees by the Company of Aerojet Rocketdyne’s obligations to U.S. government agencies for environmental remediation activities. • Guarantees, jointly and severally, by the Company’s material domestic subsidiaries of their obligations under the Senior Credit Facility. In addition to the items discussed above, the Company has and will from time to time enter into certain types of contracts that require the Company to indemnify parties against potential third-party and other claims. These contracts primarily relate to: (i) divestiture agreements, under which the Company may provide customary indemnification to purchasers of its businesses or assets including, for example, claims arising from the operation of the businesses prior to disposition, and liability to investigate and remediate environmental contamination existing prior to disposition; (ii) certain real estate leases, under which the Company may be required to indemnify property owners for claims arising from the use of the applicable premises; and (iii) certain agreements with officers and directors, under which the Company may be required to indemnify such persons for liabilities arising out of their relationship with the Company. The terms of such obligations vary. Generally, a maximum obligation is not explicitly stated. Additionally, the Company has open purchase orders and other commitments to suppliers, subcontractors, and other outsourcing partners for equipment, materials, and supplies in the normal course of business. These amounts are based on volumes consistent with anticipated requirements to fulfill purchase orders or contracts for product deliveries received, or expected to be received, from customers. A substantial portion of these amounts are recoverable through the Company's contracts with the U.S. government. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity a. Preferred Stock As of December 31, 2022 and 2021, 15.0 million shares of preferred stock were authorized and none were outstanding. b. Common Stock As of December 31, 2022, the Company had 150.0 million authorized shares of common stock, par value $0.10 per share, of which 80.7 million shares were outstanding, and 5.3 million shares were reserved for future issuance for payment of awards under stock-based compensation plans. c. Treasury Stock As of December 31, 2022 and 2021, common shares classified as treasury stock totaled 2.0 million and 2.1 million, respectively. During 2022, the Company issued 0.1 million of its common shares at a cost of $3.3 million to fund a deferred compensation liability. During 2020, the Company repurchased 1.3 million of its common shares at a cost of $51.7 million. Treasury stock is stated at cost (first-in, first-out basis). The Company reflects stock repurchases in its financial statements on a "settlement" basis. d. Dividends On December 19, 2020, the Company’s Board of Directors declared a one-time dividend in cash of $5.00 per share (including shares underlying the 2¼% Notes participating on an as-converted basis). The dividend was paid on March 24, 2021, to the holders of the Company’s shares and 2¼% Notes as of the close of business on March 10, 2021. e. Stock-based Compensation The following table summarizes stock-based compensation expense by type of award: Year Ended December 31, 2022 2021 2020 (In millions) SARs $ 0.8 $ 2.0 $ 8.1 Restricted stock and restricted stock units, service based 6.3 6.3 8.6 Restricted stock and restricted stock units, performance based 19.0 11.9 12.6 Employee stock purchase plan ("ESPP") 0.5 0.5 1.1 Stock options — — 1.0 Total stock-based compensation expense $ 26.6 $ 20.7 $ 31.4 Stock Appreciation Rights: As of December 31, 2022, a total of 0.5 million SARs were outstanding. SARs granted to employees generally vest in one-third increments at one year, two years, and three years from the date of grant and have a seven year contractual life. SARs granted to directors of the Company typically vest over a one year service period (half after six months and half after one year) and have a seven year contractual life. These awards are similar to the Company’s employee stock options, but are settled in cash rather than in shares of common stock, and are classified as liability awards. Compensation cost for these awards is determined using a fair-value method and remeasured at each reporting date until the date of settlement. The following table summarizes the status of the Company’s SARs: SARs Weighted Weighted Aggregate Outstanding at December 31, 2021 0.8 $ 24.46 Exercised (0.3) 28.22 Outstanding and exercisable at December 31, 2022 0.5 $ 22.22 2.0 $ 17.5 The total intrinsic value for SARs liabilities paid in 2022, 2021, and 2020 was $4.2 million, $0.8 million, and $7.6 million, respectively. Restricted Stock, service-based: As of December 31, 2022, a total of 0.1 million shares of service-based restricted stock were outstanding which vest based on years of service. Restricted shares are granted to employees and directors of the Company. The fair value was based on the closing market price of the Company’s common stock on the date of award and is being amortized on a straight line basis over the service period. The following table summarizes the status of the Company’s service-based restricted stock: Service Weighted Outstanding at December 31, 2021 0.1 $ 45.97 Granted 0.1 44.44 Exercised (0.1) 44.18 Outstanding and expected to vest at December 31, 2022 0.1 $ 46.32 As of December 31, 2022, there was $1.5 million of unrecognized stock-based compensation related to nonvested service-based restricted stock that is expected to be recognized over an estimated weighted-average amortization period of 29 months. At December 31, 2022, the intrinsic value of the service-based restricted stock outstanding and expected to vest was $2.1 million. Restricted Stock Units, service-based: As of December 31, 2022, a total of 0.2 million shares of service-based restricted stock units were outstanding which vest based on years of service. Restricted stock units are granted to employees of the Company. The fair value was based on the closing market price of the Company’s common stock on the date of award and is being amortized on a straight line basis over the service period. The following table summarizes the status of the Company’s service-based restricted stock units: Service Weighted Outstanding at December 31, 2021 0.2 $ 47.10 Granted 0.1 47.89 Exercised (0.1) 48.45 Outstanding and expected to vest at December 31, 2022 0.2 $ 47.13 As of December 31, 2022, there was $8.1 million of unrecognized stock-based compensation related to nonvested service-based restricted stock units that is expected to be recognized over an estimated weighted-average amortization period of 27 months. At December 31, 2022, the intrinsic value of the service-based restricted stock units outstanding and expected to vest was $11.1 million. The weighted average grant date fair values for service-based restricted stock units granted in 2021 was $48.61. Restricted Stock, performance-based Company metrics: As of December 31, 2022, a total of 0.1 million shares of performance-based restricted shares were outstanding. The performance-based restricted stock vests if the Company meets various operations and earnings targets set by the Organization & Compensation Committee of the Board of Directors. The fair value was based on the closing market price of the Company’s common stock on the date of award and is being amortized over the estimated service period to achieve the operations and earnings targets. The following table summarizes the status of the Company’s performance-based restricted stock: Performance Weighted Outstanding at December 31, 2021 0.3 $ 40.31 Granted 0.1 53.84 Exercised (0.3) 38.44 Outstanding at December 31, 2022 0.1 $ 52.28 Expected to vest at December 31, 2022 0.1 $ 51.93 As of December 31, 2022, there was $2.0 million of unrecognized stock-based compensation related to nonvested performance-based restricted stock that is expected to be recognized over an estimated weighted-average amortization period of 22 months. At December 31, 2022, the intrinsic value of the performance-based restricted stock outstanding was $6.3 million and the intrinsic value of the performance-based restricted stock expected to vest was $3.7 million. Restricted Stock Units, performance-based Company metrics: As of December 31, 2022, a total of 0.8 million shares of performance-based restricted stock units were outstanding. The performance-based restricted stock units vest if the Company meets various operations and earnings targets set by the Organization & Compensation Committee of the Board of Directors. The fair value was based on the closing market price of the Company’s common stock on the date of award and is being amortized over the estimated service period to achieve the operations and earnings targets. The following table summarizes the status of the Company’s performance-based restricted stock units: Performance Weighted Outstanding at December 31, 2021 1.0 $ 49.12 Granted 0.4 52.55 Exercised (0.4) 49.09 Canceled (0.2) 48.24 Outstanding at December 31, 2022 0.8 $ 51.10 Expected to vest at December 31, 2022 0.5 $ 50.87 As of December 31, 2022, there was $15.5 million of unrecognized stock-based compensation related to nonvested performance-based restricted stock units that are expected to be recognized over an estimated weighted-average amortization period of 24 months. At December 31, 2022, the intrinsic value of the performance-based restricted stock units outstanding was $41.8 million and the intrinsic value of the performance-based restricted stock expected to vest was $26.1 million. Employee Stock Purchase Plan: The ESPP enables eligible employees the opportunity to purchase the Company’s common stock at a price not less than 85% of the fair market value of the common stock on the last day of the respective offering period. A maximum of 1.5 million shares are authorized for issuance. In July 2021, the ESPP was suspended until July 2022; subsequently, the ESPP was suspended again for the offering period beginning in January 2023. During 2021, 0.1 million shares were issued under the ESPP at an average price of $48.29. During 2020, 0.2 million shares were issued under the ESPP at an average price of $45.65. Stock Options: As of December 31, 2022 and 2021, there were no stock options outstanding. Performance Stock Units : In March 2020, the Company granted the Executive Chairman 0.1 million performance stock units that vest according to the attainment of share prices ranging from $57.80 per share to $67.85 per share of the Company's stock. The performance stock units were valued at a weighted average price of $37.12 using a Monte Carlo model. The Company recognized the grant-date fair value of these awards as stock-based compensation expense ratably over the estimated vesting period based on the number of awards expected to vest at each reporting date or earlier if the market condition was satisfied. As of December 31, 2022 and 2021, there was no unrecognized stock-based compensation related to nonvested performance stock units. As of December 31, 2022, there were no performance stock units outstanding. The following table presents the weighted average assumptions used to value the units for 2020: Expected life (in years) 0.67 Volatility 35.41 % Risk-free interest rate 0.72 % Dividend yield — % Valuation Assumptions: The following table presents the weighted average assumptions used to value the SARs: Year Ended December 31, 2022 2021 2020 Expected life (in years) 1.0 3.2 0.7 Volatility 36.07 % 38.17 % 48.30 % Risk-free interest rate 4.64 % 0.94 % 0.11 % Dividend yield — % — % — % Expected Term: The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards and vesting schedules. Expected Volatility: The fair value of stock-based payments was determined using the Black-Scholes model with a volatility factor based on the Company’s historical stock prices. |
Operating Segments and Related
Operating Segments and Related Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments and Related Disclosures | Operating Segments and Related Disclosures The Company’s operations are organized into two operating segments based on different products and customer bases: Aerospace and Defense, and Real Estate. Sales to significant customers and other concentrations information is presented in Note 1. The accounting policies of the operating segments are the same as those presented in the summary of significant accounting policies in Note 1. The Company evaluates its operating segments based on several factors, of which the primary financial measure is segment performance. Segment performance represents net sales less applicable costs, expenses and unusual items relating to the segment operations. Segment performance excludes corporate income and expenses, unusual items not related to the segment operations, interest expense, interest income, and income taxes. The following table presents selected financial information for each reportable segment: Year Ended December 31, 2022 2021 2020 (In millions) Net Sales: Aerospace and Defense $ 2,235.2 $ 2,179.3 $ 2,069.4 Real Estate 2.4 8.7 3.3 Total Net Sales $ 2,237.6 $ 2,188.0 $ 2,072.7 Segment Performance: Aerospace and Defense $ 240.1 $ 282.3 $ 264.2 Environmental remediation provision adjustments (3.9) (3.8) (2.7) GAAP/CAS retirement benefits expense difference 33.7 11.5 14.7 Unusual items (17.0) (4.1) (0.6) Aerospace and Defense Total 252.9 285.9 275.6 Real Estate (1.0) 2.9 (1.8) Total Segment Performance $ 251.9 $ 288.8 $ 273.8 Reconciliation of segment performance to income before income taxes: Segment performance $ 251.9 $ 288.8 $ 273.8 Interest expense (18.6) (20.1) (30.1) Interest income 5.4 2.5 6.3 Stock-based compensation (26.6) (20.7) (31.4) Corporate retirement benefits expense 0.3 (6.6) (7.5) Corporate and other (27.1) (23.6) (23.4) Unusual items (77.0) (25.3) (7.5) Income before income taxes $ 108.3 $ 195.0 $ 180.2 Aerospace and Defense $ 40.7 $ 37.3 $ 54.6 Real Estate — — — Corporate — — — Capital Expenditures $ 40.7 $ 37.3 $ 54.6 Aerospace and Defense $ 56.6 $ 60.5 $ 64.2 Real Estate 0.5 0.7 0.8 Corporate 0.2 0.2 0.3 Depreciation and Amortization $ 57.3 $ 61.4 $ 65.3 As of December 31, 2022 2021 (In millions) Assets: Aerospace and Defense $ 1,802.3 $ 1,499.5 Real Estate 137.6 135.1 Operating segment assets 1,939.9 1,634.6 Corporate 431.9 788.8 Total Assets $ 2,371.8 $ 2,423.4 |
Unusual Items
Unusual Items | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Unusual Items | Unusual Items The following table presents total unusual items in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (In millions) Proxy contest and related litigation costs (component of other expense, net) $ 27.8 $ — $ — Merger costs (component of other expense, net) 25.3 — — Loss on debt 22.7 10.5 — Legal matters (component of other expense, net) 15.7 — 0.4 Terminated Merger costs (component of other expense, net) 2.5 18.9 7.7 Total unusual items $ 94.0 $ 29.4 $ 8.1 In 2022, the Company incurred $27.8 million of costs associated with the proxy contest and related litigation costs. In 2022, the Company recorded $25.3 million of costs associated with the Merger with L3Harris. See Note 1(a) for additional information. The components of the Merger costs are as follows (in millions): Consulting and other professional costs $ 19.6 Legal 4.0 Internal labor (including $0.7 million of recurring employee costs) 1.7 $ 25.3 In 2022, as a result of the irrevocable cash settlement redemption notice issued to holders of its outstanding 2¼% Notes, the Company was required to separate a derivative from the 2¼% Notes. The irrevocable cash conversion option became a forward sale contract which was not eligible for the “own stock” scope exception allowed under the accounting guidance and resulted in the Company recording a loss on debt of $22.6 million in 2022. See Note 6 for additional information. In 2022, the Company recorded a loss on debt of $0.1 million related to an amendment to the Senior Credit Facility. See Note 6 for additional information. In 2021, the Company settled $154.1 million of its 2¼% Notes as a result of receiving conversion notices from the noteholders. The principal amount of $154.1 million was settled in cash and the conversion premium was settled in 2.9 million common shares. The Company incurred a pre-tax charge of $10.5 million in 2021, associated with the settlement of the 2¼% Notes. In 2022, the Company incurred $15.7 million associated with legal matters. See Note 8(a) for additional information. The Company incurred Terminated Merger costs in all years presented and the components are as follows (in millions): Year Ended December 31, 2022 2021 2020 (In millions) Legal $ 1.6 $ 12.9 $ 3.9 Consulting and other professional costs 0.5 1.1 3.4 Internal labor (including $0.4 million and $4.4 million of recurring employee costs in 2022 and 2021) 0.4 4.9 0.4 $ 2.5 $ 18.9 $ 7.7 |
Revision of Previously Issued F
Revision of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements As disclosed in Note 1, during the three months ended March 31, 2022, the Company identified an immaterial error in its accounting for income taxes associated with its 2¼% Notes. Upon issuance of the 2¼% Notes in 2016, the Company did not record the applicable deferred tax liability associated with the conversion option that had been recorded in other capital, which resulted in an overstatement of other capital, an overstatement of deferred income taxes, an overstatement of other current assets, net and an error in income tax expense in subsequent periods. The Company evaluated the errors and concluded that the errors were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements. Due to the immaterial error related to the accounting for income taxes associated with the 2¼% Notes, the opening other capital balance as of January 1, 2019, 2020, and 2021 was overstated by $20.9 million. Additionally, the opening retained earnings balance as of January 1, 2019 and 2020, was understated by $7.9 million and $8.0 million, respectively, and the opening accumulated deficit as of January 1, 2021, was overstated by $7.8 million. During 2021 and 2020, income tax expense was overstated by $2.9 million and understated by $0.2 million resulting in a cumulative understatement of retained earnings of $10.7 million as of December 31, 2021. The revision to the accompanying consolidated statement of operations, consolidated statement of comprehensive, consolidated balance sheet, consolidated statement of stockholders’ equity, and consolidated statement of cash flows are as follows. Consolidated Statement of Operations Year Ended December 31, 2021 As Reported Effect of Revision Revised (In millions, except per share amounts) Net sales $ 2,188.0 $ — $ 2,188.0 Total operating costs and expenses 1,931.0 — 1,931.0 Operating income 257.0 — 257.0 Total non-operating expense, net 62.0 — 62.0 Income before income taxes 195.0 — 195.0 Income tax provision 51.3 (2.9) 48.4 Net income $ 143.7 $ 2.9 $ 146.6 EPS of common stock Basic EPS $ 1.80 $ 0.04 $ 1.84 Diluted EPS $ 1.75 $ 0.03 $ 1.78 Weighted average shares of common stock outstanding, basic 79.2 — 79.2 Weighted average shares of common stock outstanding, diluted 81.7 — 81.7 Consolidated Statement of Comprehensive Income Year Ended December 31, 2021 As Reported Effect of Revision Revised (In millions) Net income $ 143.7 $ 2.9 $ 146.6 Actuarial gains and amortization of actuarial losses, net of income taxes 126.6 — 126.6 Comprehensive income $ 270.3 $ 2.9 $ 273.2 Consolidated Statement of Operations Year Ended December 31, 2020 As Reported Effect of Revision Revised (In millions, except per share amounts) Net sales $ 2,072.7 $ — $ 2,072.7 Total operating costs and expenses 1,832.1 — 1,832.1 Operating income 240.6 — 240.6 Total non-operating expense, net 60.4 — 60.4 Income before income taxes 180.2 — 180.2 Income tax provision 42.5 0.2 42.7 Net income $ 137.7 $ (0.2) $ 137.5 EPS of common stock Basic EPS $ 1.76 $ — $ 1.76 Diluted EPS $ 1.66 $ — $ 1.66 Weighted average shares of common stock outstanding, basic 77.4 — 77.4 Weighted average shares of common stock outstanding, diluted 81.9 — 81.9 Consolidated Statement of Comprehensive Income Year Ended December 31, 2020 As Reported Effect of Revision Revised (In millions) Net income $ 137.7 $ (0.2) $ 137.5 Amortization of actuarial losses, net of income taxes 8.9 — 8.9 Comprehensive income $ 146.6 $ (0.2) $ 146.4 Consolidated Balance Sheet As of December 31, 2021 As Reported Effect of Revision As Revised (In millions) ASSETS Current Assets Cash and cash equivalents $ 700.4 $ — $ 700.4 Restricted cash 3.0 — 3.0 Marketable securities 10.6 — 10.6 Accounts receivable, net 60.6 — 60.6 Contract assets 354.2 — 354.2 Other current assets, net 107.8 (8.3) 99.5 Total Current Assets 1,236.6 (8.3) 1,228.3 Noncurrent Assets Right-of-use assets 52.6 — 52.6 Property, plant and equipment, net 421.1 — 421.1 Recoverable environmental remediation costs 226.2 — 226.2 Deferred income taxes 57.5 (1.9) 55.6 Goodwill 161.4 — 161.4 Intangible assets 34.9 — 34.9 Other noncurrent assets, net 243.3 — 243.3 Total Noncurrent Assets 1,197.0 (1.9) 1,195.1 Total Assets $ 2,433.6 $ (10.2) $ 2,423.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Total Current Liabilities 875.8 — 875.8 Noncurrent Liabilities Total Noncurrent Liabilities 1,024.3 — 1,024.3 Total Liabilities 1,900.1 — 1,900.1 Commitments and contingencies (Note 8) Stockholders’ Equity Common stock 8.0 — 8.0 Other capital 599.0 (20.9) 578.1 Treasury stock at cost (64.4) — (64.4) Retained earnings 91.9 10.7 102.6 Accumulated other comprehensive loss, net of income taxes (101.0) — (101.0) Total Stockholders’ Equity 533.5 (10.2) 523.3 Total Liabilities and Stockholders’ Equity $ 2,433.6 $ (10.2) $ 2,423.4 Consolidated Statements of Stockholders’ Equity Year Ended December 31, 2021 As Reported Effect of Revision As Revised (In millions) Common stock $ 8.0 $ — $ 8.0 Other capital 599.0 (20.9) 578.1 Treasury stock (64.4) — (64.4) Retained earnings 91.9 10.7 102.6 Accumulated other comprehensive loss (101.0) — (101.0) Total stockholders' equity $ 533.5 $ (10.2) $ 523.3 Year Ended December 31, 2020 As Reported Effect of Revision As Revised (In millions) Common stock $ 7.7 $ — $ 7.7 Other capital 583.0 (20.9) 562.1 Treasury stock (64.4) — (64.4) Retained earnings (65.2) 7.8 (57.4) Accumulated other comprehensive loss (227.6) — (227.6) Total stockholders' equity $ 233.5 $ (13.1) $ 220.4 Consolidated Statement of Cash Flows Year Ended December 31, 2021 As Reported Effect of Revision As Revised (In millions) Operating Activities Net income $ 143.7 $ 2.9 $ 146.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 61.4 — 61.4 Amortization of debt discount and deferred financing costs 5.9 — 5.9 Stock-based compensation 20.7 — 20.7 Retirement benefits, net 12.7 — 12.7 Loss on debt 10.5 — 10.5 Other, net (1.7) — (1.7) Changes in assets and liabilities: Accounts receivable, net 15.0 — 15.0 Contract assets (65.6) — (65.6) Other current assets, net 28.8 1.1 29.9 Recoverable environmental remediation costs 1.5 — 1.5 Other noncurrent assets 10.0 — 10.0 Accounts payable 24.3 — 24.3 Contract liabilities (40.7) — (40.7) Other current liabilities 7.6 — 7.6 Deferred income taxes (18.0) (4.0) (22.0) Reserves for environmental remediation costs (4.2) — (4.2) Other noncurrent liabilities and other (12.3) (12.3) Net Cash Provided by Operating Activities 199.6 — 199.6 Investing Activities Net Cash Used in Investing Activities (39.2) — (39.2) Financing Activities Net Cash Used in Financing Activities (609.5) — (609.5) Net Decrease in Cash, Cash Equivalents and Restricted Cash (449.1) — (449.1) Cash, Cash Equivalents and Restricted Cash at Beginning of Year 1,152.5 — 1,152.5 Cash, Cash Equivalents and Restricted Cash at End of Year $ 703.4 $ — $ 703.4 Year Ended December 31, 2020 As Reported Effect of Revision As Revised (In millions) Operating Activities Net income $ 137.7 $ (0.2) $ 137.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 65.3 — 65.3 Amortization of debt discount and deferred financing costs 9.9 — 9.9 Stock-based compensation 31.4 — 31.4 Retirement benefits, net 18.1 — 18.1 Other, net (0.4) — (0.4) Changes in assets and liabilities: Accounts receivable, net 36.9 — 36.9 Contract assets (64.5) — (64.5) Other current assets, net 9.2 2.0 11.2 Recoverable environmental remediation costs 7.1 7.1 Other noncurrent assets 0.6 — 0.6 Accounts payable (36.8) — (36.8) Contract liabilities 144.9 — 144.9 Other current liabilities (4.4) — (4.4) Deferred income taxes 37.9 (1.8) 36.1 Reserves for environmental remediation costs (8.6) — (8.6) Other noncurrent liabilities and other (20.5) (20.5) Net Cash Provided by Operating Activities 363.8 — 363.8 Investing Activities Net Cash Used in Investing Activities (61.0) — (61.0) Financing Activities Net Cash Used in Financing Activities (85.9) — (85.9) Net Increase in Cash, Cash Equivalents and Restricted Cash 216.9 — 216.9 Cash, Cash Equivalents and Restricted Cash at Beginning of Year 935.6 — 935.6 Cash, Cash Equivalents and Restricted Cash at End of Year $ 1,152.5 $ — $ 1,152.5 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | The consolidated financial statements of Aerojet Rocketdyne Holdings, Inc. ("Aerojet Rocketdyne Holdings" or the "Company") include the accounts of the Company and its 100% owned and majority owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to financial information for prior years to conform to the current year’s presentation. |
Segments | The Company’s operations are organized into two segments: Aerospace and Defense — includes the operations of the Company’s wholly-owned subsidiary Aerojet Rocketdyne, Inc. ("Aerojet Rocketdyne"), a leading technology-based designer, developer and manufacturer of aerospace and defense products and systems for the United States ("U.S.") government, including the Department of Defense ("DoD"), the National Aeronautics and Space Administration ("NASA"), and major aerospace and defense prime contractors. |
Fiscal Period | The year of the Company's subsidiary, Aerojet Rocketdyne, ends on the last Saturday in December. Further, as a result of the 2022 calendar, Aerojet Rocketdyne had 53 weeks of operations in 2022 compared with 52 weeks of operations in 2021 and 2020. The additional week of operations, which occurred in the fourth quarter of 2022, accounted for $42.3 million in additional net sales. |
Cash and Cash Equivalents | Cash and Cash EquivalentsAll highly liquid debt instruments purchased with a remaining maturity at the date of purchase of three months or less are considered to be cash equivalents. The Company aggregates its cash balances by bank, and reclassifies any negative balances, if applicable, to other current liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments are classified using a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities. |
Accounts Receivable, net | Accounts Receivable Accounts Receivable represent the Company's unconditional right to consideration under the contract and include amounts billed and currently due from long-term contract customers. The amounts are stated at their net estimated realizable value. Other receivables represent amounts billed for revenue not derived from long-term contracts. |
Inventories | Inventories Inventories are stated at cost (generally using the average cost method) or net realizable value. The Company capitalizes costs incurred in advance of contract award or funding in inventories if it determines that contract award or funding is probable. Amounts previously capitalized are expensed when changes in facts and circumstances indicate that a contract award or funding is no longer probable. General and administrative costs incurred throughout 2022 and 2021 totaled $256.4 million and $237.1 million, respectively, and the cumulative amount of general and administrative costs in long-term contract inventories were estimated to be $1.9 million and $1.3 million as of December 31, 2022 and 2021, respectively. Inventories are included as a component of other current assets. |
Income Taxes | Income Taxes The Company files a consolidated U.S. federal income tax return with its 100% owned consolidated subsidiaries. The deferred tax assets and/or liabilities are determined by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in the period of the enactment date of the change. The carrying value of the Company’s deferred tax assets is dependent upon its ability to generate sufficient taxable income in the future. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. A review of all available positive and negative evidence is considered, including the Company’s past and future performance, the market environment in which it operates, the utilization of tax attributes in the past, the length of carryback and carryforward periods, and evaluation of potential tax planning strategies. |
Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment are recorded at cost. Refurbishment costs that extend the life or increase the value of an asset are capitalized in the property accounts, whereas ordinary maintenance and repair costs are expensed as incurred. Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, other current liabilities, and operating lease liabilities. Finance leases are included in property, plant and equipment and debt. Operating ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Finance leases are recorded as an asset and an obligation at an amount equal to the present value of the minimum lease payments during the lease term. Amortization expense related to finance leases is included in depreciation and amortization expense. For certain technology equipment leases, when appropriate, the Company accounts for lease and nonlease (service) components separately based on a relative fair market value basis. For all other leases, the Company accounts for the lease and nonlease components (e.g., common area maintenance) on a combined basis. The discount rate used for leases is the Company's incremental borrowing rate for collateralized debt based on information available at the lease commencement date. Lease terms may include options to extend or terminate the lease when it is |
Real Estate Held for Entitlement and Leasing | Real Estate Held for Entitlement and Leasing The Company capitalizes all costs associated with the real estate entitlement and leasing process. The Company classifies activities related to the entitlement, sale, and leasing of its excess real estate assets as operating activities in the consolidated statements of cash flows. Real estate held for entitlement and leasing is included as a component of other noncurrent assets. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired enterprise or assets over the fair values of the identifiable assets acquired and liabilities assumed. All of the Company's recorded goodwill resides in the Aerospace and Defense reporting unit. Tests for impairment of goodwill are performed on an annual basis, or at any other time if events occur or circumstances indicate that the carrying amount of goodwill may not be recoverable. Circumstances that could trigger an impairment test include but are not limited to: a significant adverse change in the business climate or legal factors; adverse cash flow trends; an adverse action or assessment by a regulator; unanticipated competition; loss of key personnel; decline in stock price; and results of testing for recoverability of a significant asset group within a reporting unit. The Company evaluates qualitative factors (including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance) to determine whether it is necessary to perform the first step of the goodwill test. This step is referred to as the "Step Zero" analysis. If it is determined that it is more likely than not (a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, the Company will proceed to the quantitative ("Step One") analysis to determine the existence and amount of any goodwill impairment. The Company may also perform a Step One analysis from time to time to augment its qualitative assessment. The Company evaluated goodwill using a Step Zero analysis as of October 1, 2022 and 2021, and determined that goodwill was not impaired. There can be no assurance that the Company’s estimates and assumptions made for purposes of its goodwill impairment testing will prove to be accurate predictions of the future. If the Company’s assumptions and estimates are incorrect, the Company may be required to record goodwill impairment charges in future periods. |
Intangible Assets | Intangible Assets Identifiable intangible assets, such as patents, trademarks, and licenses are recorded at cost or when acquired as part of a business combination at estimated fair value. Identifiable intangible assets are amortized based on when they provide the Company economic benefit, or using the straight-line method, over their estimated useful life. Amortization periods for identifiable intangible assets range from 7 years to 30 years. |
Environmental Remediation | Environmental Remediation The Company expenses, on a current basis, recurring costs associated with managing hazardous substances and contamination in ongoing operations. The Company reviews on a quarterly basis estimated future remediation costs and has an established practice of estimating environmental remediation costs over a 15 year period, except for those environmental remediation costs with a specific contractual term. Environmental liabilities at the Baldwin Park Operable Unit ("BPOU") site are currently estimated through the term of the project agreement, which expires in May 2027. In establishing reserves, the most probable estimated amount is used when determinable, and the minimum amount is used when no single amount in the range is more probable. Environmental reserves include the costs of completing remedial investigation and feasibility studies, remedial and corrective actions, regulatory oversight costs, the cost of operation and maintenance of the remedial action plan, and employee compensation costs for employees who are expected to devote a significant amount of time to remediation efforts. Calculation of environmental reserves is based on the evaluation of currently available information with respect to each individual environmental site and considers factors such as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites. Such estimates are based on the expected costs of investigation and remediation and the likelihood that other potentially responsible parties will be able to fulfill their commitments at sites where the Company may be jointly or severally liable. At the time a liability is recorded for future environmental costs, the Company records an asset for estimated future recoveries that are estimable and probable. Some of the Company’s environmental costs are eligible for future recovery in the pricing of its products and services to the U.S. government and under existing third party agreements. The Company considers the recovery probable based on the Global Settlement, U.S. government contracting regulations, and its long history of receiving reimbursement for such costs (see Notes 8(b) and 8(c)). 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. |
Retirement Benefits | Retirement Benefits The Company discontinued future benefit accruals for the defined benefit pension plans in 2009. The Company provides medical and life insurance benefits ("postretirement benefits") to certain eligible retired employees, with varied coverage by employee group. Annual charges are made for the cost of the plans, including interest costs on benefits obligations, and net amortization and deferrals, increased or reduced by the return on assets. The Company also sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees |
Conditional Asset Retirement Obligations | Conditional Asset Retirement Obligations Conditional asset retirement obligations ("CAROs") are legal obligations associated with the retirement of long-lived assets. These liabilities are initially recorded at fair value and the expected asset retirement costs are capitalized by increasing the carrying amount of the related assets by the same amount as the liability. Asset retirement costs are subsequently depreciated over the useful lives of the related assets. Subsequent to initial recognition, the Company records period-to-period changes in the CARO liability resulting from the passage of time and revisions to either the timing or the amount of the estimate of the undiscounted cash flows. CAROs associated with owned properties are based on estimated costs necessary for the legally required removal or remediation of various regulated materials, primarily asbestos disposal and radiological decontamination of an ordnance manufacturing facility. For leased properties, CAROs are based on the estimated cost of contractually required property restoration. |
Loss Contingencies | Loss Contingencies The Company is currently involved in certain legal proceedings and has accrued its estimate of the probable costs and recoveries (in relation to environmental costs) for resolution of these claims. These estimates are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations or cash flows for any particular period could be materially affected by changes in estimates or the effectiveness of strategies related to these proceedings. |
Warranties | Warranties The Company provides product warranties in conjunction with certain product sales. The majority of the Company’s warranties are a one-year standard warranty for parts, workmanship, and compliance with specifications. On occasion, the Company has made commitments beyond the standard warranty obligation. While the Company has contracts with warranty provisions, there is not a history of any significant warranty claims experience. A reserve for warranty exposure is made on a product by product basis when it is both estimable and probable. These costs are included in the program’s estimate at completion and are expensed in accordance with the Company’s revenue recognition methodology for that particular contract. |
Revenue Recognition | Revenue Recognition In the Company’s Aerospace and Defense segment, the majority of revenue is earned from long-term contracts to design, develop, and manufacture aerospace and defense products for, and provide related services to, the Company’s customers, including the U.S. government and major aerospace and defense prime contractors. Each customer contract defines the Company’s distinct performance obligations and the associated transaction price for each obligation. A contract may contain one or multiple performance obligations. In certain circumstances, multiple contracts with a customer are required to be combined in determining the distinct performance obligation. For contracts with multiple performance obligations, the Company allocates the contracted transaction price to each performance obligation based upon the relative standalone selling price, which represents the price at which the Company would sell the promised good or service separately to the customer. The Company determines the standalone selling price based upon the facts and circumstances of each obligated good or service. The majority of the Company’s contracts have no observable standalone selling price since the associated products and services are customized to customer specifications. As such, the standalone selling price generally reflects the Company’s forecast of the total cost to satisfy the performance obligation plus an appropriate profit margin. Contract modifications are routine in the performance of the Company's long-term contracts. Contracts are often modified to account for changes in contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing contract. The Company recognizes revenue as each performance obligation is satisfied. The majority of the Company’s aerospace and defense performance obligations are satisfied over time either as the service is provided, or as control transfers to the customer. Transfer of control is evidenced by the Company’s contractual right to payment for work performed to date plus a reasonable profit on contracts with highly customized products that have no alternative use to the Company. The Company measures progress on substantially all its performance obligations using the cost-to-cost method, which the Company believes best depicts the transfer of control of goods and services to the customer. Under the cost-to-cost method, the Company records revenues based upon costs incurred to date relative to the total estimated cost at completion. Contract costs include labor, material, overhead, and general and administrative expenses, as appropriate. Recognition of revenue and profit on long-term contracts requires the use of assumptions and estimates related to the total contract value, the total cost at completion, and the measurement of progress towards completion for each performance obligation. Due to the nature of the programs, developing the estimated total contract value and total cost at completion for each performance obligation requires the use of significant judgment. The contract value of long-term contracts may include variable consideration, such as incentives, awards, or penalties. The value of variable consideration is generally determined by contracted performance metrics, which may include targets for cost, performance, quality, and schedule. The Company includes variable consideration in the transaction price for the respective performance obligation at either estimated value, or most likely amount to be earned, based upon the Company’s assessment of expected performance. The Company records these amounts only to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company evaluates the contract value and cost estimates for performance obligations at least quarterly and more frequently when circumstances significantly change. Factors considered in estimating the work to be completed include, but are not limited to: labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, warranty costs, volume assumptions, anticipated labor agreements, inflationary trends, schedule and performance delays, availability of funding from the customer, and the recoverability of costs incurred outside the original contract included in any estimates to complete. When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimates has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations. Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results. The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Year Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Net (unfavorable) favorable effect of the changes in contract estimates on net sales $ (21.4) $ 34.8 $ 38.5 (Unfavorable) favorable effect of the changes in contract estimates on income before income taxes (33.8) 31.2 45.1 (Unfavorable) favorable effect of the changes in contract estimates on net income (23.1) 23.5 34.5 (Unfavorable) favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock (0.29) 0.29 0.44 (Unfavorable) favorable effect of the changes in contract estimates on diluted EPS (0.29) 0.29 0.42 The 2022 net unfavorable changes in contract estimates were primarily driven by cost growth from supply chain disruptions and necessary technical and manufacturing changes identified on a portion of the Standard Missile program. The 2021 net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the RS-68, Terminal High Altitude Area Defense ("THAAD"), Patriot Advanced Capability-3 ("PAC-3"), and RL10 programs partially offset by cost growth on a portion of the Standard Missile program and the Commercial Crew program. The 2020 net favorable changes in contract estimates were primarily driven by improved performance and risk retirements on the THAAD, RS-68, RL10, and PAC-3 programs partially offset by cost growth on a portion of the Standard Missile program and the Commercial Crew program. |
Research and Development (R&D) | Research and Development ("R&D") Company-funded R&D expenses (reported as a component of cost of sales) were $58.4 million, $50.6 million, and $55.8 million in 2022, 2021, and 2020, respectively. Company-funded R&D expenses include the costs of technical activities that are useful in developing new products, services, processes, or techniques, as well as expenses for technical activities that may significantly improve existing products or processes. These expenses are generally allocated among all contracts and programs in progress under U.S. government contractual arrangements. Customer-funded R&D expenditures, which are funded from U.S. government contracts, totaled $754.4 million, $700.7 million, and $628.7 million in 2022, 2021, and 2020, respectively. Expenditures under customer-funded R&D U.S. government contracts are accounted for as sales and cost of sales. |
Stock-based Compensation | Stock-based Compensation The Company recognizes stock-based compensation in the statements of operations at the grant-date fair value of stock awards issued to employees and directors over the vesting period. The Company also grants Stock Appreciation Rights ("SARs") awards which are similar to the Company’s employee stock options, but are settled in cash rather than in shares of common stock, and are classified as liability awards. Compensation cost for these awards is determined using a fair-value method and remeasured at each reporting date until the date of settlement. The Company accounts for forfeitures when they occur for consistency with the U.S. government recovery accounting practice. |
Impairment or Disposal of Long-Lived Assets | Impairment or Disposal of Long-Lived Assets Impairment of long-lived assets is recognized when events or circumstances indicate that the carrying amount of the asset, or related groups of assets, may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; or a current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the Company determines that an asset is not recoverable, then the Company would record an impairment charge if the carrying value of the asset exceeds its fair value. A long-lived asset classified as "held for sale" is initially measured at the lower of its carrying amount or fair value less costs to sell. In the period that the "held for sale" criteria are met, the Company recognizes an impairment charge for any initial adjustment of the long-lived asset amount. Gains or losses not previously recognized resulting from the sale of a long-lived asset are recognized on the date of sale. |
Concentrations | Credit Risk Aside from investments held in the Company’s retirement benefit plans, financial instruments that could potentially subject the Company to concentration of credit risk consist primarily of cash, cash equivalents, and trade receivables. The Company’s cash and cash equivalents are held and managed by recognized financial institutions and are subject to the Company’s investment policy. The investment policy outlines minimum acceptable credit ratings for each type of investment and limits the amount of credit exposure to any one security issue. The Company does not believe significant concentration of credit risk exists with respect to these investments. Dependence on Single Source and Other Third Party Suppliers The Company uses a significant quantity of raw materials that are highly dependent on market fluctuations and government regulations. Further, as a U.S. government contractor, the Company is often required to procure materials from suppliers capable of meeting rigorous customer and government specifications. As market conditions change for these companies, they often discontinue materials with low sales volumes or profit margins. The Company is often forced to either qualify new materials or pay higher prices to maintain the supply. To date the Company has been successful in establishing replacement materials and securing customer funding to address specific qualification needs of the programs. Prolonged disruptions in the supply of any of the Company’s key raw materials, difficulty qualifying new sources of supply, implementing use of replacement materials or new sources of supply, and/or a continuing volatility in the prices of raw materials could have a material adverse effect on the Company’s operating results, financial condition, and/or cash flows. |
Accounting Pronouncements | Accounting Pronouncements Recently Issued Accounting Pronouncements In August 2020, the Financial Accounting Standards Board 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. The Company adopted the new guidance as of January 1, 2022, using the modified retrospective approach, resulting in the following adjustments: (i) a decrease of $1.9 million in deferred tax liabilities, (ii) a decrease of $5.6 million in other capital, (iii) a decrease of $1.0 million in retained earnings, and (iv) an increase of $8.5 million in debt. During the three months ended September 30, 2022, the Company settled its outstanding convertible debt. See Note 6. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Financial Instruments | Fair value measurement as of December 31, 2022 Total Quoted Prices in Other Unobservable (In millions) Money market funds $ 206.1 $ 206.1 $ — $ — Commercial paper 49.9 — 49.9 — Registered investment companies 0.7 0.7 — — Equity securities 10.5 10.5 — — Total $ 267.2 $ 217.3 $ 49.9 $ — Fair value measurement as of December 31, 2021 Total Quoted Prices in Other Unobservable (In millions) Money market funds $ 388.6 $ 388.6 $ — $ — Commercial paper 35.0 — 35.0 — Registered investment companies 1.3 1.3 — — Equity securities 10.6 10.6 — — Total $ 435.5 $ 400.5 $ 35.0 $ — |
Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt | The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations: Fair Value Principal Amount As of December 31, As of December 31, 2022 2021 2022 2021 (In millions) Term loan $ 259.4 $ 275.8 $ 262.3 $ 282.2 2 1 / 4 % Notes — 266.1 — 145.9 $ 259.4 $ 541.9 $ 262.3 $ 428.1 |
Schedule of Useful Lives of Property, Plant and Equipment | Depreciation is computed principally by accelerated methods based on the following useful lives: Buildings and improvements 9 - 40 years Machinery and equipment 6 - 10 years |
Schedule of Changes in Carrying Amount of Conditional Asset Retirement Obligations | The following table summarizes the changes in the carrying amount of CAROs: Year Ended December 31, 2022 2021 2020 (In millions) Balance at beginning of year $ 51.8 $ 51.4 $ 51.4 Additions/(reductions) and other, net 3.0 (2.3) (2.7) Accretion 2.6 2.7 2.7 Balance at end of year $ 57.4 $ 51.8 $ 51.4 |
Schedule of Impact of Contracts in Progress on Statement of Operations | The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results: Year Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Net (unfavorable) favorable effect of the changes in contract estimates on net sales $ (21.4) $ 34.8 $ 38.5 (Unfavorable) favorable effect of the changes in contract estimates on income before income taxes (33.8) 31.2 45.1 (Unfavorable) favorable effect of the changes in contract estimates on net income (23.1) 23.5 34.5 (Unfavorable) favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock (0.29) 0.29 0.44 (Unfavorable) favorable effect of the changes in contract estimates on diluted EPS (0.29) 0.29 0.42 |
Schedule of Contract with Customer, Asset and Liability | The following table summarizes contract assets and liabilities: As of December 31, 2022 2021 (In millions) Contract assets $ 458.3 $ 359.6 Reserve for overhead rate disallowance (7.2) (5.4) Contract assets, net of reserve 451.1 354.2 Contract liabilities 334.7 366.5 Net contract asset (liabilities), net of reserve $ 116.4 $ (12.3) |
Schedules of Percentage of Net Sales for Significant Programs | The following table summarizes the percentages of net sales by contract type: Year Ended December 31, 2022 2021 2020 Fixed-price 55 % 57 % 61 % Cost-reimbursable 45 43 39 Year Ended December 31, 2022 2021 2020 U.S. government 95 % 96 % 96 % Non U.S. government customers 5 4 4 The following table summarizes the percentages of net sales for significant programs, all of which are included in the U.S. government sales and are comprised of multiple contracts: Year Ended December 31, 2022 2021 2020 RS-25 program 15 % 17 % 18 % Standard Missile program 12 12 13 PAC-3 program 10 10 10 THAAD program 7 8 11 |
Schedule of Customers that Represented More than 10% of Net Sales | The following table summarizes the customers that represented more than 10% of net sales, each of which involves sales of several product lines and programs: Year Ended December 31, 2022 2021 2020 Lockheed Martin 32 % 32 % 34 % NASA 19 20 21 Raytheon Technologies Corporation ("Raytheon") 19 17 17 |
Schedule of Customers that Represented More than 10% of Accounts Receivable | The following table summarizes customers that represented more than 10% of accounts receivable, including unbilled receivables which are a component of contract assets: As of December 31, 2022 2021 Raytheon 39 % 26 % Lockheed Martin 14 17 The Boeing Company 13 17 United Launch Alliance ("ULA") * 11 NASA * 10 ________ * Less than 10%. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerator and Denominator Used to Calculate Basic and Diluted (Loss) Income Per Share of Common Stock | The following table reconciles the numerator and denominator used to calculate basic and diluted EPS: Year Ended December 31, 2022 2021 2020 (In millions, except per share amounts) Numerator: Net income $ 74.0 $ 146.6 $ 137.5 Income allocated to participating securities (0.2) (0.9) (1.7) Net income for basic EPS 73.8 145.7 135.8 Interest on 2 1 / 4 % Notes 1.4 — — Net income for diluted EPS $ 75.2 $ 145.7 $ 135.8 Denominator: Basic weighted average shares 80.3 79.2 77.4 Effect of: 2 1 / 4 % Notes 3.0 2.4 4.5 Awards issued under equity plans — 0.1 — Diluted weighted average shares 83.3 81.7 81.9 Basic EPS $ 0.92 $ 1.84 $ 1.76 Diluted EPS $ 0.90 $ 1.78 $ 1.66 |
Balance Sheet Accounts and Su_2
Balance Sheet Accounts and Supplemental Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable | As of December 31, 2022 2021 (In millions) Billed $ 126.3 $ 60.3 Other trade receivables 0.3 0.3 Accounts receivable $ 126.6 $ 60.6 |
Schedule of Other Current Assets, net | As of December 31, 2022 2021 (In millions) Deferred costs recoverable from the U.S. government $ 36.9 $ 37.4 Income tax receivable (see Note 5) 24.7 13.8 Prepaid expenses 16.4 15.3 Inventories 15.8 10.0 Other 61.8 23.0 Other current assets $ 155.6 $ 99.5 |
Schedule of Property, Plant and Equipment, net | As of December 31, 2022 2021 (In millions) Land $ 71.1 $ 71.1 Buildings and improvements 535.4 503.0 Machinery and equipment, including capitalized software 517.5 499.1 Construction-in-progress 37.5 50.0 1,161.5 1,123.2 Less: accumulated depreciation (741.3) (702.1) Property, plant and equipment, net $ 420.2 $ 421.1 |
Schedule of Intangible Assets | As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 84.0 $ 3.2 Intellectual property\trade secrets 34.2 24.9 9.3 Trade name 21.0 6.9 14.1 Acquired technology 19.2 17.5 1.7 Intangible assets $ 161.6 $ 133.3 $ 28.3 As of December 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In millions) Customer related $ 87.2 $ 81.3 $ 5.9 Intellectual property\trade secrets 34.2 22.3 11.9 Trade name 21.0 6.1 14.9 Acquired technology 19.2 17.0 2.2 Intangible assets $ 161.6 $ 126.7 $ 34.9 |
Schedule of Future Amortization Expense for Intangible Assets | Future amortization expense for the five succeeding years is estimated to be as follows: Year Ending December 31, Future Amortization Expense (In millions) 2023 $ 6.1 2024 4.8 2025 3.7 2026 2.1 2027 0.7 $ 17.4 |
Schedule of Other Noncurrent Assets, net | As of December 31, 2022 2021 (In millions) Real estate held for entitlement and leasing $ 105.9 $ 103.7 Receivable from Northrop Grumman Corporation ("Northrop") for environmental remediation costs 28.5 34.5 Deferred costs recoverable from the U.S. government 61.9 62.1 Other 11.9 43.0 Other noncurrent assets $ 208.2 $ 243.3 |
Schedule of Other Current Liabilities | As of December 31, 2022 2021 (In millions) Accrued compensation and employee benefits $ 157.2 $ 122.0 Other 61.5 50.7 Other current liabilities $ 218.7 $ 172.7 |
Schedule of Accumulated Other Comprehensive Loss, Net of Income Taxes | The following table presents the changes in accumulated other comprehensive loss by components, net of income taxes: Actuarial Prior Service Costs, Net Total (In millions) December 31, 2020 $ (227.6) $ — $ (227.6) Actuarial gains, net of income taxes 80.5 — 80.5 Amortization of net actuarial losses and prior service costs, net of income taxes 46.0 0.1 46.1 December 31, 2021 (101.1) 0.1 (101.0) Actuarial losses, net of income taxes (7.0) — (7.0) Amortization of net actuarial losses and prior service costs, net of income taxes 20.4 0.1 20.5 December 31, 2022 $ (87.7) $ 0.2 $ (87.5) |
Schedule of Other Noncurrent Liabilities | Other Noncurrent Liabilities As of December 31, 2022 2021 (In millions) Uncertain income tax positions (see Note 5) $ 151.3 $ 20.7 Other 114.6 153.1 Other noncurrent liabilities $ 265.9 $ 173.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Cost | The following table summarizes the Company's lease costs: Year Ended December 31, 2022 2021 2020 (In millions) Operating lease cost $ 14.7 $ 16.0 $ 15.5 Finance lease cost: Amortization 2.2 2.6 2.9 Interest on lease liabilities 2.5 2.6 2.7 Short-term lease cost 0.5 0.5 0.5 Total lease costs $ 19.9 $ 21.7 $ 21.6 The following table summarizes the supplemental cash flow information related to leases: Year Ended December 31, 2022 2021 2020 (In millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 15.6 $ 15.6 $ 13.7 Operating cash flows for finance leases 2.5 2.6 2.7 Financing cash flows for finance leases 1.9 2.2 2.1 Assets obtained in exchange for lease obligations: Operating leases 14.7 36.3 11.9 |
Lease Assets and Liabilities | The following table summarizes the supplemental balance sheet information related to leases: As of December 31, 2022 2021 (In millions) Operating leases: Operating lease right-of-use assets $ 54.5 $ 52.6 Operating lease liabilities (component of other current liabilities) $ 9.5 $ 13.4 Operating lease liabilities, noncurrent 46.2 41.3 Total operating lease liability $ 55.7 $ 54.7 Finance leases: Property, plant and equipment $ 47.8 $ 52.9 Accumulated depreciation (8.4) (11.3) Property, plant and equipment, net $ 39.4 $ 41.6 Current portion of long-term debt $ 1.3 $ 1.9 Long-term debt 40.3 41.5 Total finance lease liability $ 41.6 $ 43.4 Weighted-average remaining lease term (in years): Operating leases 7 7 Finance leases 16 16 Weighted-average discount rate: Operating leases 4.5 % 3.8 % Finance leases 5.8 % 5.9 % |
Finance Lease Maturity Schedule | The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2022: Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2023 $ 11.8 $ 3.7 $ 1.4 2024 9.0 3.8 1.1 2025 8.4 3.8 1.2 2026 8.2 3.9 1.2 2027 7.1 3.9 1.0 Thereafter 20.6 45.9 4.5 Total minimum rentals 65.1 65.0 10.4 Less: imputed interest (9.4) (23.4) — Total $ 55.7 $ 41.6 $ 10.4 |
Operating Lease Maturity Schedule | The following table presents the maturities of lease liabilities and lease revenue in effect as of December 31, 2022: Year Ending December 31, Operating Leases Finance Leases Future Minimum (In millions) 2023 $ 11.8 $ 3.7 $ 1.4 2024 9.0 3.8 1.1 2025 8.4 3.8 1.2 2026 8.2 3.9 1.2 2027 7.1 3.9 1.0 Thereafter 20.6 45.9 4.5 Total minimum rentals 65.1 65.0 10.4 Less: imputed interest (9.4) (23.4) — Total $ 55.7 $ 41.6 $ 10.4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Company's Income Tax Provision from Continuing Operations | The following table presents the components of the Company’s income tax provision: Year Ended December 31, 2022 2021 2020 (In millions) Current U.S. federal $ 149.7 $ 56.1 $ 6.6 State and local 40.7 14.4 0.1 190.4 70.5 6.7 Deferred U.S. federal (129.9) (21.0) 24.5 State and local (26.2) (1.1) 11.5 (156.1) (22.1) 36.0 Income tax provision $ 34.3 $ 48.4 $ 42.7 |
Schedule of Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate on Earnings | The following table presents the reconciling items between the income tax provision using the U.S. federal statutory rate and the Company's reported income tax provision. Year Ended December 31, 2022 2021 2020 (In millions) Statutory U.S. federal income tax $ 22.7 $ 41.0 $ 37.9 State income taxes, net of federal benefit 11.4 11.9 9.1 Reserve adjustments (1.1) 0.1 1.2 Nondeductible compensation 4.8 1.6 3.4 Tax credits and special deductions (4.3) 0.6 (4.6) Convertible debt (0.4) (6.3) 0.2 Stock-based compensation excess tax benefits (1.4) (1.0) (4.4) False Claims Act settlement 1.9 — — Other 0.7 0.5 (0.1) Income tax provision $ 34.3 $ 48.4 $ 42.7 The following table presents a reconciliation of the U.S. federal statutory income tax rate to the Company’s effective income tax rate on earnings in percentages. Year Ended December 31, 2022 2021 2020 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 10.6 6.1 5.1 Reserve adjustments (1.0) — 0.7 Nondeductible compensation 4.4 0.8 1.9 Tax credits and special deductions (4.0) 0.3 (2.6) Convertible debt (0.4) (3.3) 0.1 Stock-based compensation excess tax benefits (1.3) (0.5) (2.4) False Claims Act settlement 1.8 — — Other 0.6 0.4 (0.1) Effective income tax rate 31.7 % 24.8 % 23.7 % |
Schedule of Reconciliation of Change in Unrecognized Tax Benefits | The following table presents a reconciliation of unrecognized tax benefits: Year Ended December 31, 2022 2021 2020 (In millions) Balances at beginning of year $ 20.0 $ 14.2 $ 58.0 Increases based on tax positions in prior years 0.4 0.3 2.7 Decreases based on tax position in prior years (2.0) (0.4) (51.5) Increases based on tax positions in current year 134.1 6.6 5.6 Lapse of statute of limitations (2.2) (0.7) (0.6) Balances at end of year $ 150.3 $ 20.0 $ 14.2 |
Summary of Deferred Tax Assets and Liabilities | The following table presents the deferred tax assets and liabilities: As of December 31, 2022 2021 (In millions) Deferred Tax Assets Capitalized research and experimental expenditures $ 156.0 $ — Accrued estimated costs 51.2 47.6 Basis difference in assets and liabilities 76.9 58.8 Operating lease liabilities 14.0 13.7 Tax losses and credit carryforwards 1.2 0.4 Net cumulative defined benefit pension plan losses 56.5 58.8 Retiree medical and life insurance benefits 3.6 4.7 Total deferred tax assets 359.4 184.0 Deferred Tax Liabilities Revenue recognition differences 123.7 104.8 Basis differences in intangible assets 13.3 10.7 ROU assets 13.7 12.9 Total deferred tax liabilities 150.7 128.4 Total net deferred tax assets $ 208.7 $ 55.6 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | As of December 31, 2022 2021 (In millions) Senior debt $ 261.5 $ 281.4 Convertible senior notes — 136.5 Finance leases (see Note 4) 41.6 43.4 Total debt, carrying amount 303.1 461.3 Less: Amounts due within one year (14.7) (166.7) Total long-term debt, carrying amount $ 288.4 $ 294.6 As of December 31, 2022 2021 (In millions) Term loan, bearing interest at variable rates (rate of 6.17% as of December 31, 2022), maturing in September 2025 $ 262.3 $ 282.2 Unamortized deferred financing costs (0.8) (0.8) Total senior debt $ 261.5 $ 281.4 As of December 31, 2022 2021 (In millions) Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023 $ — $ 145.9 Unamortized discount and deferred financing costs — (9.4) Total convertible senior notes $ — $ 136.5 The following table summarizes information regarding the 2¼% Notes as of December 31, 2021: Remaining amortization period (years) 2.0 Effective interest rate 5.8 % Conversion rate (shares of common stock per $1,000 principal amount) 38.4615 Conversion price (per share of common stock) $ 26.00 Year Ended December 31, 2022 2021 2020 (In millions) Interest expense-contractual interest $ 2.3 $ 3.3 $ 6.8 Interest expense-amortization of debt discount — 4.3 7.9 Interest expense-amortization of deferred financing costs 0.3 0.4 0.6 |
Schedule of Maturities of Long-Term Debt | The following table presents as of December 31, 2022, the Company’s contractual debt principal maturities excluding finance lease obligations (see Note 4): Total 2023 2024 2025 (In millions) Senior debt $ 262.3 $ 13.5 $ 13.5 $ 235.3 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Company's Plan Assets, Benefit Obligations, and Funded Status | The following table summarizes the balance sheet impact of the Company’s pension benefits and medical and life insurance benefits. Pension benefits include the consolidated tax-qualified plan and the unfunded non-qualified plan for benefits provided to employees beyond those provided by the Company’s tax-qualified plan. Assets, benefits obligations, and the funded status of the plans were determined at December 31, 2022 and 2021. Pension Benefits Medical and As of December 31, 2022 2021 2022 2021 (In millions) Change in fair value of assets: Fair value - beginning of year $ 1,005.0 $ 957.0 $ — $ — (Loss) gain on assets (212.5) 135.7 — — Employer contributions 16.9 18.8 2.2 2.4 Benefits paid (1) (102.5) (106.5) (2.2) (2.4) Fair value - end of year $ 706.9 $ 1,005.0 $ — $ — Change in benefits obligation: Benefits obligation - beginning of year $ 1,279.3 $ 1,381.5 $ 19.6 $ 25.0 Interest cost 35.6 33.5 0.5 0.5 Actuarial gains (262.7) (29.2) (3.1) (3.5) Benefits paid (102.5) (106.5) (2.2) (2.4) Benefits obligation and accumulated benefit obligation - end of year $ 949.7 $ 1,279.3 $ 14.8 $ 19.6 Funded status of the plans $ (242.8) $ (274.3) $ (14.8) $ (19.6) Amounts recognized in the consolidated balance sheets: Postretirement medical and life insurance benefits, current $ — $ — $ (2.3) $ (2.7) Postretirement medical and life insurance benefits, noncurrent — — (12.5) (16.9) Pension liability, non-qualified current (component of other current liabilities) (1.3) (1.4) — — Pension liability, non-qualified (component of other noncurrent liabilities) (12.2) (17.0) — — Pension benefits, noncurrent (229.3) (255.9) — — Net liability recognized in the consolidated balance sheets $ (242.8) $ (274.3) $ (14.8) $ (19.6) ______ (1) Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of less than $0.1 million received in both 2022 and 2021. |
Summary of Components of Retirement Benefit Expense (Income) | The following table presents the components of retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 (In millions) Interest cost on benefits obligation $ 35.6 $ 33.5 $ 42.5 $ 0.5 $ 0.5 $ 0.8 Assumed return on assets (62.8) (61.4) (60.5) — — — Amortization of prior service costs 0.1 0.1 0.1 — — — Amortization of net losses (gains) 30.6 63.9 57.4 (2.9) (2.7) (3.7) $ 3.5 $ 36.1 $ 39.5 $ (2.4) $ (2.2) $ (2.9) The following table presents the actual return and rate of return on assets: Year Ended December 31, 2022 2021 2020 (In millions, except rate of return) Actual (loss) gain on assets $ (212.5) $ 135.7 $ 117.1 Actual rate of return on assets (21.6) % 15.0 % 15.6 % |
Schedule of Assumptions Used to Determine Benefit Obligations | The following table presents the assumptions, calculated based on a weighted-average, to determine the benefits obligations: Pension Medical and As of December 31, As of December 31, 2022 2021 2022 2021 Discount rate 5.56 % 2.90 % 5.66 % 2.77 % Discount rate (non-qualified plan) 5.58 % 2.89 % * * Ultimate healthcare trend rate * * 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * 7.00 % 6.25 % Year ultimate rate attained (pre 65/post 65) * * 2033 2029 ______ |
Schedule of Assumptions Used to Determine Periodic Benefit Expense (Income) | The following table presents the assumptions, calculated based on a weighted-average, to determine the retirement benefits expense (income): Pension Benefits Medical and Year Ended December 31, Year Ended December 31, 2022 2021 2020 2022 2021 2020 Discount rate 2.90 % 2.52 % 3.28 % 2.77 % 2.28 % 3.19 % Discount rate (non-qualified plan) 2.89 % 2.51 % 3.30 % * * * Expected long-term rate of return on assets 7.00 % 7.00 % 7.00 % * * * Ultimate healthcare trend rate * * * 4.50 % 4.50 % 4.50 % Initial healthcare trend rate (pre 65/post 65) * * * 6.25 % 6.50 % 5.50 % Year ultimate rate attained (pre 65/post 65) * * * 2029 2028 2022 ______ |
Schedule of Pension Plan's Asset Allocations by Asset Category | The following table presents the asset allocations by asset category: As of December 31, 2022 2021 Cash and cash equivalents 3 % 5 % Equity securities 40 47 Fixed income 13 12 Registered investment companies 1 1 Private assets 16 10 Hedge funds 27 25 Total 100 % 100 % |
Schedule of Fair Value of Pension Plan Assets and Liabilities by Asset Category and by Level | The following tables present the fair value by asset category and by level: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2022 Equity securities: Domestic equity securities $ 255.9 $ 255.9 $ — $ — International equity securities 26.8 26.8 — — Fixed income: Corporate debt securities 55.0 — 35.5 19.5 Asset-backed securities 24.6 — 24.6 — U.S. government securities 6.2 — 6.2 — Foreign bonds 1.2 — 1.2 — Municipal bonds 0.1 — 0.1 — Foreign exchange contracts (0.1) — (0.1) — Registered investment companies 9.9 9.9 — — Private assets 6.4 — — 6.4 Total 386.0 $ 292.6 $ 67.5 $ 25.9 Investment measured at Net Asset Value ("NAV") Private assets 104.9 Hedge funds 192.6 Common/collective trusts ("CCTs") 33.2 Total investments measured at NAV 330.7 Receivables 2.9 Payables (12.7) Total assets $ 706.9 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) (In millions) December 31, 2021 Equity securities: Domestic equity securities $ 428.5 $ 428.5 $ — $ — International equity securities 44.2 44.2 — — Fixed income: Corporate debt securities 57.5 — 39.9 17.6 Asset-backed securities 29.3 — 29.3 — U.S. government securities 28.8 — 28.8 — Foreign bonds 0.9 — 0.9 — Derivatives 0.1 — 0.1 — Registered investment companies 13.9 13.9 — — Private assets 1.2 — — 1.2 Total 604.4 $ 486.6 $ 99.0 $ 18.8 Investment measured at NAV Private assets 97.8 Hedge funds 254.5 CCTs 56.4 Total investments measured at NAV 408.7 Receivables 9.9 Payables (18.0) Total assets $ 1,005.0 |
Schedule of Changes in Fair Value of Level 3 Investments | The following tables present the changes in the fair value of the Level 3 investments: December 31, 2021 Unrealized Realized Purchases, Sales, and December 31, (In millions) Corporate debt securities $ 17.6 $ — $ — $ 1.9 $ 19.5 Private assets 1.2 (0.1) 0.3 5.0 6.4 Total $ 18.8 $ (0.1) $ 0.3 $ 6.9 $ 25.9 December 31, 2020 Unrealized Realized Purchases, Sales, and December 31, (In millions) Equity securities $ 6.1 $ 10.1 $ 1.1 $ (17.3) $ — Corporate debt securities 31.9 0.1 — (14.4) 17.6 Private assets 3.1 — — (1.9) 1.2 Total $ 41.1 $ 10.2 $ 1.1 $ (33.6) $ 18.8 |
Schedule of Estimated Future Benefit Payments | The following table presents estimated future benefit payments: Pension Medical and Life Insurance Benefits Year Ending December 31, Gross Benefit Payments Medicare D Net Benefit (In millions) 2023 $ 95.6 $ 2.4 $ — $ 2.4 2024 93.5 2.2 0.1 2.1 2025 91.0 1.9 — 1.9 2026 88.2 1.7 — 1.7 2027 85.2 1.5 — 1.5 Years 2028 - 2032 374.4 5.4 0.1 5.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Environmental Reserve Activity | 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 30.9 (0.2) — 30.7 1.7 32.4 Expenditures (26.1) (13.2) (1.2) (40.5) (0.5) (41.0) December 31, 2020 208.4 76.2 10.6 295.2 5.4 300.6 Additions 28.8 2.5 3.7 35.0 0.3 35.3 Expenditures (22.5) (14.0) (2.5) (39.0) (0.5) (39.5) December 31, 2021 214.7 64.7 11.8 291.2 5.2 296.4 Additions 31.4 1.6 0.3 33.3 0.5 33.8 Expenditures (22.5) (15.5) (1.3) (39.3) (0.4) (39.7) December 31, 2022 $ 223.6 $ 50.8 $ 10.8 $ 285.2 $ 5.3 $ 290.5 |
Summary of Northrop Agreement Activity | Total reimbursable costs under the Northrop Agreement $ 189.7 Amount reimbursed to the Company through December 31, 2022 (155.2) Receivable from Northrop included in the balance sheet at December 31, 2022 $ 34.5 |
Schedule of Environmental Reserves and Recoveries | The following table summarizes the financial information for the impact of environmental reserves and recoveries to the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (In millions) Expense to consolidated statement of operations $ 4.1 $ 4.1 $ 4.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense by Type of Award | The following table summarizes stock-based compensation expense by type of award: Year Ended December 31, 2022 2021 2020 (In millions) SARs $ 0.8 $ 2.0 $ 8.1 Restricted stock and restricted stock units, service based 6.3 6.3 8.6 Restricted stock and restricted stock units, performance based 19.0 11.9 12.6 Employee stock purchase plan ("ESPP") 0.5 0.5 1.1 Stock options — — 1.0 Total stock-based compensation expense $ 26.6 $ 20.7 $ 31.4 |
Summary of Stock Appreciation Rights | The following table summarizes the status of the Company’s SARs: SARs Weighted Weighted Aggregate Outstanding at December 31, 2021 0.8 $ 24.46 Exercised (0.3) 28.22 Outstanding and exercisable at December 31, 2022 0.5 $ 22.22 2.0 $ 17.5 |
Summary of Restricted Stock Units | The following table summarizes the status of the Company’s service-based restricted stock: Service Weighted Outstanding at December 31, 2021 0.1 $ 45.97 Granted 0.1 44.44 Exercised (0.1) 44.18 Outstanding and expected to vest at December 31, 2022 0.1 $ 46.32 The following table summarizes the status of the Company’s service-based restricted stock units: Service Weighted Outstanding at December 31, 2021 0.2 $ 47.10 Granted 0.1 47.89 Exercised (0.1) 48.45 Outstanding and expected to vest at December 31, 2022 0.2 $ 47.13 The following table summarizes the status of the Company’s performance-based restricted stock: Performance Weighted Outstanding at December 31, 2021 0.3 $ 40.31 Granted 0.1 53.84 Exercised (0.3) 38.44 Outstanding at December 31, 2022 0.1 $ 52.28 Expected to vest at December 31, 2022 0.1 $ 51.93 The following table summarizes the status of the Company’s performance-based restricted stock units: Performance Weighted Outstanding at December 31, 2021 1.0 $ 49.12 Granted 0.4 52.55 Exercised (0.4) 49.09 Canceled (0.2) 48.24 Outstanding at December 31, 2022 0.8 $ 51.10 Expected to vest at December 31, 2022 0.5 $ 50.87 |
Schedule of Weighted Average Assumptions Used to Determine Fair Value of Stock Awards | The following table presents the weighted average assumptions used to value the units for 2020: Expected life (in years) 0.67 Volatility 35.41 % Risk-free interest rate 0.72 % Dividend yield — % Year Ended December 31, 2022 2021 2020 Expected life (in years) 1.0 3.2 0.7 Volatility 36.07 % 38.17 % 48.30 % Risk-free interest rate 4.64 % 0.94 % 0.11 % Dividend yield — % — % — % |
Operating Segments and Relate_2
Operating Segments and Related Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Selected Financial Information for Each Reportable Segment | The following table presents selected financial information for each reportable segment: Year Ended December 31, 2022 2021 2020 (In millions) Net Sales: Aerospace and Defense $ 2,235.2 $ 2,179.3 $ 2,069.4 Real Estate 2.4 8.7 3.3 Total Net Sales $ 2,237.6 $ 2,188.0 $ 2,072.7 Segment Performance: Aerospace and Defense $ 240.1 $ 282.3 $ 264.2 Environmental remediation provision adjustments (3.9) (3.8) (2.7) GAAP/CAS retirement benefits expense difference 33.7 11.5 14.7 Unusual items (17.0) (4.1) (0.6) Aerospace and Defense Total 252.9 285.9 275.6 Real Estate (1.0) 2.9 (1.8) Total Segment Performance $ 251.9 $ 288.8 $ 273.8 Reconciliation of segment performance to income before income taxes: Segment performance $ 251.9 $ 288.8 $ 273.8 Interest expense (18.6) (20.1) (30.1) Interest income 5.4 2.5 6.3 Stock-based compensation (26.6) (20.7) (31.4) Corporate retirement benefits expense 0.3 (6.6) (7.5) Corporate and other (27.1) (23.6) (23.4) Unusual items (77.0) (25.3) (7.5) Income before income taxes $ 108.3 $ 195.0 $ 180.2 Aerospace and Defense $ 40.7 $ 37.3 $ 54.6 Real Estate — — — Corporate — — — Capital Expenditures $ 40.7 $ 37.3 $ 54.6 Aerospace and Defense $ 56.6 $ 60.5 $ 64.2 Real Estate 0.5 0.7 0.8 Corporate 0.2 0.2 0.3 Depreciation and Amortization $ 57.3 $ 61.4 $ 65.3 As of December 31, 2022 2021 (In millions) Assets: Aerospace and Defense $ 1,802.3 $ 1,499.5 Real Estate 137.6 135.1 Operating segment assets 1,939.9 1,634.6 Corporate 431.9 788.8 Total Assets $ 2,371.8 $ 2,423.4 |
Unusual Items (Tables)
Unusual Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Schedule of Unusual Items Expense | The following table presents total unusual items in the consolidated statements of operations: Year Ended December 31, 2022 2021 2020 (In millions) Proxy contest and related litigation costs (component of other expense, net) $ 27.8 $ — $ — Merger costs (component of other expense, net) 25.3 — — Loss on debt 22.7 10.5 — Legal matters (component of other expense, net) 15.7 — 0.4 Terminated Merger costs (component of other expense, net) 2.5 18.9 7.7 Total unusual items $ 94.0 $ 29.4 $ 8.1 Consulting and other professional costs $ 19.6 Legal 4.0 Internal labor (including $0.7 million of recurring employee costs) 1.7 $ 25.3 The Company incurred Terminated Merger costs in all years presented and the components are as follows (in millions): Year Ended December 31, 2022 2021 2020 (In millions) Legal $ 1.6 $ 12.9 $ 3.9 Consulting and other professional costs 0.5 1.1 3.4 Internal labor (including $0.4 million and $4.4 million of recurring employee costs in 2022 and 2021) 0.4 4.9 0.4 $ 2.5 $ 18.9 $ 7.7 |
Revision of Previously Issued_2
Revision of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The revision to the accompanying consolidated statement of operations, consolidated statement of comprehensive, consolidated balance sheet, consolidated statement of stockholders’ equity, and consolidated statement of cash flows are as follows. Consolidated Statement of Operations Year Ended December 31, 2021 As Reported Effect of Revision Revised (In millions, except per share amounts) Net sales $ 2,188.0 $ — $ 2,188.0 Total operating costs and expenses 1,931.0 — 1,931.0 Operating income 257.0 — 257.0 Total non-operating expense, net 62.0 — 62.0 Income before income taxes 195.0 — 195.0 Income tax provision 51.3 (2.9) 48.4 Net income $ 143.7 $ 2.9 $ 146.6 EPS of common stock Basic EPS $ 1.80 $ 0.04 $ 1.84 Diluted EPS $ 1.75 $ 0.03 $ 1.78 Weighted average shares of common stock outstanding, basic 79.2 — 79.2 Weighted average shares of common stock outstanding, diluted 81.7 — 81.7 Consolidated Statement of Comprehensive Income Year Ended December 31, 2021 As Reported Effect of Revision Revised (In millions) Net income $ 143.7 $ 2.9 $ 146.6 Actuarial gains and amortization of actuarial losses, net of income taxes 126.6 — 126.6 Comprehensive income $ 270.3 $ 2.9 $ 273.2 Consolidated Statement of Operations Year Ended December 31, 2020 As Reported Effect of Revision Revised (In millions, except per share amounts) Net sales $ 2,072.7 $ — $ 2,072.7 Total operating costs and expenses 1,832.1 — 1,832.1 Operating income 240.6 — 240.6 Total non-operating expense, net 60.4 — 60.4 Income before income taxes 180.2 — 180.2 Income tax provision 42.5 0.2 42.7 Net income $ 137.7 $ (0.2) $ 137.5 EPS of common stock Basic EPS $ 1.76 $ — $ 1.76 Diluted EPS $ 1.66 $ — $ 1.66 Weighted average shares of common stock outstanding, basic 77.4 — 77.4 Weighted average shares of common stock outstanding, diluted 81.9 — 81.9 Consolidated Statement of Comprehensive Income Year Ended December 31, 2020 As Reported Effect of Revision Revised (In millions) Net income $ 137.7 $ (0.2) $ 137.5 Amortization of actuarial losses, net of income taxes 8.9 — 8.9 Comprehensive income $ 146.6 $ (0.2) $ 146.4 Consolidated Balance Sheet As of December 31, 2021 As Reported Effect of Revision As Revised (In millions) ASSETS Current Assets Cash and cash equivalents $ 700.4 $ — $ 700.4 Restricted cash 3.0 — 3.0 Marketable securities 10.6 — 10.6 Accounts receivable, net 60.6 — 60.6 Contract assets 354.2 — 354.2 Other current assets, net 107.8 (8.3) 99.5 Total Current Assets 1,236.6 (8.3) 1,228.3 Noncurrent Assets Right-of-use assets 52.6 — 52.6 Property, plant and equipment, net 421.1 — 421.1 Recoverable environmental remediation costs 226.2 — 226.2 Deferred income taxes 57.5 (1.9) 55.6 Goodwill 161.4 — 161.4 Intangible assets 34.9 — 34.9 Other noncurrent assets, net 243.3 — 243.3 Total Noncurrent Assets 1,197.0 (1.9) 1,195.1 Total Assets $ 2,433.6 $ (10.2) $ 2,423.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Total Current Liabilities 875.8 — 875.8 Noncurrent Liabilities Total Noncurrent Liabilities 1,024.3 — 1,024.3 Total Liabilities 1,900.1 — 1,900.1 Commitments and contingencies (Note 8) Stockholders’ Equity Common stock 8.0 — 8.0 Other capital 599.0 (20.9) 578.1 Treasury stock at cost (64.4) — (64.4) Retained earnings 91.9 10.7 102.6 Accumulated other comprehensive loss, net of income taxes (101.0) — (101.0) Total Stockholders’ Equity 533.5 (10.2) 523.3 Total Liabilities and Stockholders’ Equity $ 2,433.6 $ (10.2) $ 2,423.4 Consolidated Statements of Stockholders’ Equity Year Ended December 31, 2021 As Reported Effect of Revision As Revised (In millions) Common stock $ 8.0 $ — $ 8.0 Other capital 599.0 (20.9) 578.1 Treasury stock (64.4) — (64.4) Retained earnings 91.9 10.7 102.6 Accumulated other comprehensive loss (101.0) — (101.0) Total stockholders' equity $ 533.5 $ (10.2) $ 523.3 Year Ended December 31, 2020 As Reported Effect of Revision As Revised (In millions) Common stock $ 7.7 $ — $ 7.7 Other capital 583.0 (20.9) 562.1 Treasury stock (64.4) — (64.4) Retained earnings (65.2) 7.8 (57.4) Accumulated other comprehensive loss (227.6) — (227.6) Total stockholders' equity $ 233.5 $ (13.1) $ 220.4 Consolidated Statement of Cash Flows Year Ended December 31, 2021 As Reported Effect of Revision As Revised (In millions) Operating Activities Net income $ 143.7 $ 2.9 $ 146.6 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 61.4 — 61.4 Amortization of debt discount and deferred financing costs 5.9 — 5.9 Stock-based compensation 20.7 — 20.7 Retirement benefits, net 12.7 — 12.7 Loss on debt 10.5 — 10.5 Other, net (1.7) — (1.7) Changes in assets and liabilities: Accounts receivable, net 15.0 — 15.0 Contract assets (65.6) — (65.6) Other current assets, net 28.8 1.1 29.9 Recoverable environmental remediation costs 1.5 — 1.5 Other noncurrent assets 10.0 — 10.0 Accounts payable 24.3 — 24.3 Contract liabilities (40.7) — (40.7) Other current liabilities 7.6 — 7.6 Deferred income taxes (18.0) (4.0) (22.0) Reserves for environmental remediation costs (4.2) — (4.2) Other noncurrent liabilities and other (12.3) (12.3) Net Cash Provided by Operating Activities 199.6 — 199.6 Investing Activities Net Cash Used in Investing Activities (39.2) — (39.2) Financing Activities Net Cash Used in Financing Activities (609.5) — (609.5) Net Decrease in Cash, Cash Equivalents and Restricted Cash (449.1) — (449.1) Cash, Cash Equivalents and Restricted Cash at Beginning of Year 1,152.5 — 1,152.5 Cash, Cash Equivalents and Restricted Cash at End of Year $ 703.4 $ — $ 703.4 Year Ended December 31, 2020 As Reported Effect of Revision As Revised (In millions) Operating Activities Net income $ 137.7 $ (0.2) $ 137.5 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 65.3 — 65.3 Amortization of debt discount and deferred financing costs 9.9 — 9.9 Stock-based compensation 31.4 — 31.4 Retirement benefits, net 18.1 — 18.1 Other, net (0.4) — (0.4) Changes in assets and liabilities: Accounts receivable, net 36.9 — 36.9 Contract assets (64.5) — (64.5) Other current assets, net 9.2 2.0 11.2 Recoverable environmental remediation costs 7.1 7.1 Other noncurrent assets 0.6 — 0.6 Accounts payable (36.8) — (36.8) Contract liabilities 144.9 — 144.9 Other current liabilities (4.4) — (4.4) Deferred income taxes 37.9 (1.8) 36.1 Reserves for environmental remediation costs (8.6) — (8.6) Other noncurrent liabilities and other (20.5) (20.5) Net Cash Provided by Operating Activities 363.8 — 363.8 Investing Activities Net Cash Used in Investing Activities (61.0) — (61.0) Financing Activities Net Cash Used in Financing Activities (85.9) — (85.9) Net Increase in Cash, Cash Equivalents and Restricted Cash 216.9 — 216.9 Cash, Cash Equivalents and Restricted Cash at Beginning of Year 935.6 — 935.6 Cash, Cash Equivalents and Restricted Cash at End of Year $ 1,152.5 $ — $ 1,152.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative - Basis of Presentation and Nature of Operations (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 20, 2020 $ / shares | Dec. 19, 2020 $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2022 USD ($) segment $ / shares | Dec. 17, 2022 $ / shares | Dec. 31, 2021 USD ($) | Mar. 31, 2021 $ / shares | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Number of operating segments (in segments) | segment | 2 | ||||||
Additional net sales | $ | $ 42.3 | ||||||
Common stock outstanding converted into right to receive in cash (in USD per share) | $ 58 | ||||||
Conversion price per share (in USD per share) | $ 56 | $ 0.0025 | $ 51 | ||||
Cash dividends per share (in USD per share) | $ 5 | $ 5 | |||||
Restricted cash | $ | $ 3.1 | $ 3.1 | $ 3 | ||||
Amortization period for environmental remediation costs | 15 years | ||||||
2 1/4% Notes | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt instrument interest rate stated percentage | 2.25% | 2.25% | 2.25% | ||||
Conversion price per share (in USD per share) | $ 26 | $ 26 | |||||
Convertible senior notes | 2 1/4% Notes | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 267.2 | $ 435.5 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 206.1 | 388.6 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 49.9 | 35 |
Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0.7 | 1.3 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 10.5 | 10.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 217.3 | 400.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 206.1 | 388.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0.7 | 1.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 10.5 | 10.6 |
Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 49.9 | 35 |
Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 49.9 | 35 |
Other Observable Inputs (Level 2) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Other Observable Inputs (Level 2) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Unobservable Inputs (Level 3) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Unobservable Inputs (Level 3) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Unobservable Inputs (Level 3) | Registered investment companies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Unobservable Inputs (Level 3) | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Narrative - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Unrealized gain | $ (2) | $ 1.5 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 259.4 | $ 541.9 |
Principal Amount | 262.3 | 428.1 |
Term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 259.4 | 275.8 |
Principal Amount | 262.3 | 282.2 |
2 1/4% Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 266.1 |
Principal Amount | $ 0 | $ 145.9 |
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Narrative - Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
General and administrative costs incurred | $ 256.4 | $ 237.1 |
General and administrative costs included in long-term contract inventories | $ 1.9 | $ 1.3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 9 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 6 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 10 years |
Software and software development costs | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 3 years |
Software and software development costs | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment, net | 7 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Narrative - Goodwill (Details) - USD ($) | Oct. 01, 2022 | Oct. 01, 2021 |
Accounting Policies [Abstract] | ||
Goodwill impairment loss | $ 0 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Narrative - Intangible Assets and Warranty (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets | 7 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life of intangible assets | 30 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Schedule of Change in Conditional AROs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of year | $ 51.8 | $ 51.4 | $ 51.4 |
Additions/(reductions) and other, net | 3 | (2.3) | (2.7) |
Accretion | 2.6 | 2.7 | 2.7 |
Balance at end of year | $ 57.4 | $ 51.8 | $ 51.4 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Warranties (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Standard product warranty term (years) | 1 year |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Schedule of Impact of the Change in Contract Estimates on Operating Results (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in Accounting Estimate [Line Items] | |||
Net sales | $ 2,237.6 | $ 2,188 | $ 2,072.7 |
Income before income taxes | 108.3 | 195 | 180.2 |
(Unfavorable) favorable effect of the changes in contract estimates on net income | $ 74 | $ 146.6 | $ 137.5 |
(Unfavorable) favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock | $ 0.92 | $ 1.84 | $ 1.76 |
(Unfavorable) favorable effect of the changes in contract estimates on diluted EPS | $ 0.90 | $ 1.78 | $ 1.66 |
Aerospace and Defense | Contracts Accounted for under Percentage-of-Completion | |||
Change in Accounting Estimate [Line Items] | |||
Net sales | $ (21.4) | $ 34.8 | $ 38.5 |
Income before income taxes | (33.8) | 31.2 | 45.1 |
(Unfavorable) favorable effect of the changes in contract estimates on net income | $ (23.1) | $ 23.5 | $ 34.5 |
(Unfavorable) favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock | $ (0.29) | $ 0.29 | $ 0.44 |
(Unfavorable) favorable effect of the changes in contract estimates on diluted EPS | $ (0.29) | $ 0.29 | $ 0.42 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Contract assets | $ 458.3 | $ 359.6 |
Reserve for overhead rate disallowance | (7.2) | (5.4) |
Contract assets, net of reserve | 451.1 | 354.2 |
Contract liabilities | 334.7 | 366.5 |
Net contract asset (liabilities), net of reserve | $ 116.4 | $ (12.3) |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Increase in contract liabilities | $ (128.7) | |
Sales included in contract liabilities | 310.6 | $ 364.9 |
Unbilled contracts receivable | $ 445.3 | $ 347.1 |
Unbilled receivables expected to be collected after one year | 19% |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Performance Obligations (Details) $ in Billions | Dec. 31, 2022 USD ($) |
Accounting Policies [Abstract] | |
Performance obligation | $ 6.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Accounting Policies [Abstract] | |
Performance obligation | $ 2.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation (percentage) | 33% |
Performance obligation timing (years) | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation (percentage) | 27% |
Performance obligation timing (years) | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation (percentage) | 40% |
Performance obligation timing (years) |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Schedule of Sales by Contract Type (Details) - Net Sales - Contract Concentration | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed-price | |||
Concentration Risk [Line Items] | |||
Concentration (percentage) | 55% | 57% | 61% |
Cost-reimbursable | |||
Concentration Risk [Line Items] | |||
Concentration (percentage) | 45% | 43% | 39% |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Narrative - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Company | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expenses | $ 58.4 | $ 50.6 | $ 55.8 |
Customers | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development expenses | $ 754.4 | $ 700.7 | $ 628.7 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Percentage of employees under collective bargaining agreements | 7% | ||
Net Sales | U.S. government | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 95% | 96% | 96% |
Net Sales | Non U.S. government customers | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 5% | 4% | 4% |
Net Sales | RS-25 program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 15% | 17% | 18% |
Net Sales | Standard Missile program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 12% | 12% | 13% |
Net Sales | PAC-3 program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 10% | 10% | 10% |
Net Sales | THAAD program | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 7% | 8% | 11% |
Net Sales | Lockheed Martin | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 32% | 32% | 34% |
Net Sales | NASA | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 19% | 20% | 21% |
Net Sales | Raytheon | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 19% | 17% | 17% |
Accounts Receivable | Lockheed Martin | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 14% | 17% | |
Accounts Receivable | NASA | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 10% | ||
Accounts Receivable | Raytheon | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 39% | 26% | |
Accounts Receivable | United Launch Alliance ("ULA") | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 11% | ||
Accounts Receivable | The Boeing Company | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Risk percentage | 13% | 17% |
Summary of Significant Accou_21
Summary of Significant Accounting Policies - Related Parties (Details) - Investor - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Aerojet Rocketdyne Inc | Blackrock, Inc. | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 16% | 15% | |
Aerojet Rocketdyne Inc | Vanguard Group, Inc | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 10% | 10% | |
Gamco Investors, Inc. | Aerojet Rocketdyne Inc | |||
Related Party Transaction [Line Items] | |||
Ownership interest (percent) | 7% | 6% | |
Investment management fees | Gamco Investors, Inc. | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related party | $ 0.8 | $ 1 | $ 0.8 |
Summary of Significant Accou_22
Summary of Significant Accounting Policies - Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounting Policies [Abstract] | |
Decrease in deferred tax liabilities | $ 1.9 |
Decrease in other capital | 5.6 |
Decrease in retained earnings | 1 |
Increase in debt | $ 8.5 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Numerator and Denominator (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income | $ 74 | $ 146.6 | $ 137.5 |
Income allocated to participating securities | (0.2) | (0.9) | (1.7) |
Net income for basic EPS | 73.8 | 145.7 | 135.8 |
Interest on 21/4% Notes | 1.4 | 0 | 0 |
Net income for diluted EPS | $ 75.2 | $ 145.7 | $ 135.8 |
Denominator: | |||
Basic weighted average shares (in shares) | 80.3 | 79.2 | 77.4 |
Effect of: | |||
2 1/4% Notes (in shares) | 3 | 2.4 | 4.5 |
Awards issued under equity plans (in shares) | 0 | 0.1 | 0 |
Diluted weighted average shares (in shares) | 83.3 | 81.7 | 81.9 |
Basic: | |||
Basic earnings per share (in USD per share) | $ 0.92 | $ 1.84 | $ 1.76 |
Diluted: | |||
Diluted earnings per share (in USD per share) | $ 0.90 | $ 1.78 | $ 1.66 |
2 1/4% Notes | |||
Diluted: | |||
Debt instrument interest rate stated percentage | 2.25% | 2.25% | |
2 1/4% Notes | Convertible senior notes | |||
Diluted: | |||
Debt instrument interest rate stated percentage | 2.25% |
Balance Sheet Accounts and Su_3
Balance Sheet Accounts and Supplemental Disclosures - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Billed | $ 126.3 | $ 60.3 |
Other trade receivables | 0.3 | 0.3 |
Accounts receivable | $ 126.6 | $ 60.6 |
Balance Sheet Accounts and Su_4
Balance Sheet Accounts and Supplemental Disclosures - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred costs recoverable from the U.S. government | $ 36.9 | $ 37.4 |
Income tax receivable (see Note 5) | 24.7 | 13.8 |
Prepaid expenses | 16.4 | 15.3 |
Inventories | 15.8 | 10 |
Other | 61.8 | 23 |
Other current assets | $ 155.6 | $ 99.5 |
Balance Sheet Accounts and Su_5
Balance Sheet Accounts and Supplemental Disclosures - Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 1,161.5 | $ 1,123.2 | |
Less: accumulated depreciation | (741.3) | (702.1) | |
Property, plant and equipment, net | 420.2 | 421.1 | |
Depreciation expense | 48.1 | 48.8 | $ 49.2 |
Non-cash property, plant and equipment additions | 3.8 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 71.1 | 71.1 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 535.4 | 503 | |
Machinery and equipment, including capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 517.5 | 499.1 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 37.5 | $ 50 |
Balance Sheet Accounts and Su_6
Balance Sheet Accounts and Supplemental Disclosures - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 161.6 | $ 161.6 | |
Accumulated Amortization | 133.3 | 126.7 | |
Net Carrying Amount | 28.3 | 34.9 | |
Amortization expense | 6.6 | 9.9 | $ 13.4 |
Customer related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 87.2 | 87.2 | |
Accumulated Amortization | 84 | 81.3 | |
Net Carrying Amount | 3.2 | 5.9 | |
Intellectual property\trade secrets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 34.2 | 34.2 | |
Accumulated Amortization | 24.9 | 22.3 | |
Net Carrying Amount | 9.3 | 11.9 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 21 | 21 | |
Accumulated Amortization | 6.9 | 6.1 | |
Net Carrying Amount | 14.1 | 14.9 | |
Acquired technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 19.2 | 19.2 | |
Accumulated Amortization | 17.5 | 17 | |
Net Carrying Amount | $ 1.7 | $ 2.2 |
Balance Sheet Accounts and Su_7
Balance Sheet Accounts and Supplemental Disclosures - Schedule of Future Amortization Expense for Intangible Assets (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
2023 | $ 6.1 |
2024 | 4.8 |
2025 | 3.7 |
2026 | 2.1 |
2027 | 0.7 |
Total | $ 17.4 |
Balance Sheet Accounts and Su_8
Balance Sheet Accounts and Supplemental Disclosures - Other Noncurrent Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Real estate held for entitlement and leasing | $ 105.9 | $ 103.7 |
Receivable from Northrop Grumman Corporation ("Northrop") for environmental remediation costs | 28.5 | 34.5 |
Deferred costs recoverable from the U.S. government | 61.9 | 62.1 |
Other | 11.9 | 43 |
Other noncurrent assets | $ 208.2 | $ 243.3 |
Balance Sheet Accounts and Su_9
Balance Sheet Accounts and Supplemental Disclosures - Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation and employee benefits | $ 157.2 | $ 122 |
Other | 61.5 | 50.7 |
Other current liabilities | $ 218.7 | $ 172.7 |
Balance Sheet Accounts and S_10
Balance Sheet Accounts and Supplemental Disclosures - Other Noncurrent Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Uncertain income tax positions (see Note 5) | $ 151.3 | $ 20.7 |
Other | 114.6 | 153.1 |
Other noncurrent liabilities | $ 265.9 | $ 173.8 |
Balance Sheet Accounts and S_11
Balance Sheet Accounts and Supplemental Disclosures - Accumulated Other Comprehensive Loss, Net of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 523.3 | $ 220.4 |
Actuarial gains (losses) , net of income taxes | (7) | 80.5 |
Amortization of net actuarial losses and prior service costs, net of income taxes | 20.5 | 46.1 |
Ending balance | 541.3 | 523.3 |
Actuarial Losses, Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (101.1) | (227.6) |
Actuarial gains (losses) , net of income taxes | (7) | 80.5 |
Amortization of net actuarial losses and prior service costs, net of income taxes | 20.4 | 46 |
Ending balance | (87.7) | (101.1) |
Prior Service Costs, Net | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0.1 | 0 |
Actuarial gains (losses) , net of income taxes | 0 | 0 |
Amortization of net actuarial losses and prior service costs, net of income taxes | 0.1 | 0.1 |
Ending balance | 0.2 | 0.1 |
AOCI Attributable to Parent | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (101) | (227.6) |
Ending balance | $ (87.5) | $ (101) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Finance leases not yet commenced | $ 22.9 | ||
Lease income | $ 2.4 | $ 2.5 | $ 3.3 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal options range (years) | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease renewal options range (years) | 20 years | ||
Operating lease term (years) | 15 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 14.7 | $ 16 | $ 15.5 |
Amortization | 2.2 | 2.6 | 2.9 |
Interest on lease liabilities | 2.5 | 2.6 | 2.7 |
Short-term lease cost | 0.5 | 0.5 | 0.5 |
Total lease costs | $ 19.9 | $ 21.7 | $ 21.6 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 15.6 | $ 15.6 | $ 13.7 |
Operating cash flows for finance leases | 2.5 | 2.6 | 2.7 |
Financing cash flows for finance leases | 1.9 | 2.2 | 2.1 |
Assets obtained in exchange for lease obligations: | |||
Operating leases | $ 14.7 | $ 36.3 | $ 11.9 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Right-of-use assets | $ 54.5 | $ 52.6 |
Operating lease liabilities (component of other current liabilities) | $ 9.5 | $ 13.4 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating lease liabilities, noncurrent | $ 46.2 | $ 41.3 |
Total operating lease liability | 55.7 | 54.7 |
Finance leases: | ||
Property, plant and equipment | 47.8 | 52.9 |
Accumulated depreciation | (8.4) | (11.3) |
Property, plant and equipment, net | $ 39.4 | $ 41.6 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current portion of long-term debt | $ 1.3 | $ 1.9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Long-term debt | $ 40.3 | $ 41.5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term debt, carrying amount | Total long-term debt, carrying amount |
Total finance lease liability | $ 41.6 | $ 43.4 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 7 years | 7 years |
Finance leases | 16 years | 16 years |
Weighted-average discount rate: | ||
Operating leases | 4.50% | 3.80% |
Finance leases | 5.80% | 5.90% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 11.8 | |
2024 | 9 | |
2025 | 8.4 | |
2026 | 8.2 | |
2027 | 7.1 | |
Thereafter | 20.6 | |
Total minimum rentals | 65.1 | |
Less: imputed interest | (9.4) | |
Total | 55.7 | $ 54.7 |
Finance Leases | ||
2023 | 3.7 | |
2024 | 3.8 | |
2025 | 3.8 | |
2026 | 3.9 | |
2027 | 3.9 | |
Thereafter | 45.9 | |
Total minimum rentals | 65 | |
Less: imputed interest | (23.4) | |
Total | 41.6 | $ 43.4 |
Future Minimum Rental Income | ||
2023 | 1.4 | |
2024 | 1.1 | |
2025 | 1.2 | |
2026 | 1.2 | |
2027 | 1 | |
Thereafter | 4.5 | |
Total | $ 10.4 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Company's Income Tax Provision (Benefit) from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
U.S. federal | $ 149.7 | $ 56.1 | $ 6.6 |
State and local | 40.7 | 14.4 | 0.1 |
Current income tax provision (benefit) | 190.4 | 70.5 | 6.7 |
Deferred | |||
U.S. federal | (129.9) | (21) | 24.5 |
State and local | (26.2) | (1.1) | 11.5 |
Deferred income tax provision (benefit) | (156.1) | (22.1) | 36 |
Income tax provision | $ 34.3 | $ 48.4 | $ 42.7 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation, Amount (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax | $ 22.7 | $ 41 | $ 37.9 |
State income taxes, net of federal benefit | 11.4 | 11.9 | 9.1 |
Reserve adjustments | (1.1) | 0.1 | 1.2 |
Nondeductible compensation | 4.8 | 1.6 | 3.4 |
Tax credits and special deductions | (4.3) | 0.6 | (4.6) |
Convertible debt | (0.4) | (6.3) | 0.2 |
Stock-based compensation excess tax benefits | (1.4) | (1) | (4.4) |
False Claims Act settlement | 1.9 | 0 | 0 |
Other | 0.7 | 0.5 | (0.1) |
Income tax provision | $ 34.3 | $ 48.4 | $ 42.7 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of U.S. Federal statutory Income Tax Rate to Effective Income Tax Rate on Earnings (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 10.60% | 6.10% | 5.10% |
Reserve adjustments | (1.00%) | 0% | 0.70% |
Nondeductible compensation | 4.40% | 0.80% | 1.90% |
Tax credits and special deductions | (0.040) | 0.003 | (0.026) |
Convertible debt | (0.40%) | (3.30%) | 0.10% |
Stock-based compensation excess tax benefits | (1.30%) | (0.50%) | (2.40%) |
False Claims Act settlement | 0.018 | 0 | 0 |
Other | 0.60% | 0.40% | (0.10%) |
Effective income tax rate | 31.70% | 24.80% | 23.70% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate - provision (benefit) | 31.70% | 24.80% | 23.70% | |
Unrecognized tax benefits | $ 150.3 | $ 20 | $ 14.2 | $ 58 |
Unrecognized tax benefits, effect in tax rate | 20.9 | |||
Accrued interest and penalties related to uncertain tax positions | 1.1 | 0.6 | 0.4 | |
Additional accrued interest and penalties related to uncertain tax positions | 0.5 | 0.2 | $ (1.4) | |
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | 5.4 | |||
Deferred tax assets, valuation allowance | $ 0 | $ 0 |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Change in Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balances at beginning of year | $ 20 | $ 14.2 | $ 58 |
Increases based on tax positions in prior years | 0.4 | 0.3 | 2.7 |
Decreases based on tax position in prior years | (2) | (0.4) | (51.5) |
Increases based on tax positions in current year | 134.1 | 6.6 | 5.6 |
Lapse of statute of limitations | (2.2) | (0.7) | (0.6) |
Balances at end of year | $ 150.3 | $ 20 | $ 14.2 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets | ||
Capitalized research and experimental expenditures | $ 156 | $ 0 |
Accrued estimated costs | 51.2 | 47.6 |
Basis difference in assets and liabilities | 76.9 | 58.8 |
Operating lease liabilities | 14 | 13.7 |
Tax losses and credit carryforwards | 1.2 | 0.4 |
Net cumulative defined benefit pension plan losses | 56.5 | 58.8 |
Retiree medical and life insurance benefits | 3.6 | 4.7 |
Total deferred tax assets | 359.4 | 184 |
Deferred Tax Liabilities | ||
Revenue recognition differences | 123.7 | 104.8 |
Basis differences in intangible assets | 13.3 | 10.7 |
ROU assets | 13.7 | 12.9 |
Total deferred tax liabilities | 150.7 | 128.4 |
Total net deferred tax assets | $ 208.7 | $ 55.6 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Senior debt | $ 261.5 | $ 281.4 |
Convertible senior notes | 0 | 136.5 |
Finance leases (see Note 4) | 41.6 | 43.4 |
Total debt, carrying amount | 303.1 | 461.3 |
Less: Amounts due within one year | (14.7) | (166.7) |
Total long-term debt, carrying amount | $ 288.4 | $ 294.6 |
Long-Term Debt - Schedule of Ma
Long-Term Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Maturities of Long-term Debt [Abstract] | |||
Interest expense-amortization of deferred financing costs | $ 1.5 | $ 1.6 | $ 2 |
Senior debt | |||
Maturities of Long-term Debt [Abstract] | |||
Total debt, carrying amount | 262.3 | ||
2023 | 13.5 | ||
2024 | 13.5 | ||
2025 | $ 235.3 |
Long-Term Debt - Schedule of Se
Long-Term Debt - Schedule of Senior Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total senior debt | $ 261.5 | $ 281.4 |
Term loan | ||
Debt Instrument [Line Items] | ||
Term loan, bearing interest at variable rates (rate of 6.17% as of December 31, 2022), maturing in September 2025 | 262.3 | 282.2 |
Unamortized deferred financing costs | (0.8) | (0.8) |
Total senior debt | $ 261.5 | $ 281.4 |
Term loan, bearing interest at variable rates | 6.17% |
Long-Term Debt - Narrative - Se
Long-Term Debt - Narrative - Senior Credit Facility (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Sep. 28, 2022 | Sep. 27, 2022 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Unused capacity commitment fee percentage | 0.30% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Unused capacity commitment fee percentage | 0.45% | ||
Term Loan | Minimum | |||
Debt Instrument [Line Items] | |||
Letter of credit fees | 1.75% | ||
Term Loan | Maximum | |||
Debt Instrument [Line Items] | |||
Letter of credit fees | 2.50% | ||
Term Loan | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate, adjustment | 0.10% | ||
Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.75% | ||
Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | |||
Debt Instrument [Line Items] | |||
Applicable margin | 2.50% | ||
Secured Debt | Senior Credit Facility, Due 2023 | |||
Debt Instrument [Line Items] | |||
Increase in maximum leverage ratio | 0.50 | ||
Secured Debt | Senior Credit Facility, Due 2023 | Minimum | |||
Debt Instrument [Line Items] | |||
Required interest coverage ratio | 3 | ||
Secured Debt | Senior Credit Facility, Due 2023 | Maximum | October 1, 2021, thereafter | |||
Debt Instrument [Line Items] | |||
Required leverage ratio | 3.50 | ||
Secured Debt | Senior Credit Facility, Due 2023 | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 650,000,000 | ||
Outstanding debt balance | $ 0 | ||
Secured Debt | Senior Credit Facility, Due 2023 | Term Loan | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 269,100,000 | $ 350,000,000 | |
Secured Debt | Senior Credit Facility, Due 2023 | Term Loan | December 31, 2020 - December 30, 2022 | |||
Debt Instrument [Line Items] | |||
Annual principal payment (percentage) | 5% | ||
Secured Debt | Senior Credit Facility, Due 2023 | Term Loan | December 31, 2022 - Maturity | |||
Debt Instrument [Line Items] | |||
Annual principal payment (percentage) | 5% | ||
Line of Credit | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding | $ 28,900,000 |
Long-Term Debt - Convertible Se
Long-Term Debt - Convertible Senior Notes (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying value | $ 0 | $ 136.5 |
2 1/4% Notes | ||
Debt Instrument [Line Items] | ||
Senior convertible notes, bearing interest at 2.25% per annum, interest payments due in June and December, maturing in December 2023 | 0 | 145.9 |
Unamortized discount and deferred financing costs | $ 0 | $ (9.4) |
Debt instrument interest rate stated percentage | 2.25% | 2.25% |
Long-Term Debt - Narrative - Co
Long-Term Debt - Narrative - Convertible Senior Notes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 14, 2016 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 428,100,000 | $ 262,300,000 | ||
2 1/4% Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | 145,900,000 | $ 0 | ||
Extinguishment of debt | 154,100,000 | |||
2 1/4% Notes | Convertible debt | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 300,000,000 | |||
Extinguishment of debt | $ 154,100,000 | |||
Repayments of convertible debt | $ 145,900,000 | |||
Principal and conversion premium settled | $ 242,000,000 |
Long-Term Debt - 2 1_4% Convert
Long-Term Debt - 2 1/4% Convertible Senior Notes (Details) | 12 Months Ended | |||
Dec. 31, 2022 $ / shares | Dec. 17, 2022 $ / shares | Mar. 31, 2021 $ / shares | Dec. 20, 2020 $ / shares | |
Debt Instrument [Line Items] | ||||
Conversion price (in USD per share) | $ 0.0025 | $ 51 | $ 56 | |
2 1/4% Notes | ||||
Debt Instrument [Line Items] | ||||
Remaining amortization period (years) | 2 years | |||
Effective interest rate (percentage) | 5.80% | |||
Common stock conversion rate (in USD per share) | 38.4615 | |||
Conversion price (in USD per share) | $ 26 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense Components for the 2¼% Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Interest expense-amortization of deferred financing costs | $ 1.5 | $ 1.6 | $ 2 |
2 1/4% Notes | |||
Debt Instrument [Line Items] | |||
Interest expense-contractual interest | 2.3 | 3.3 | 6.8 |
Interest expense-amortization of debt discount | 0 | 4.3 | 7.9 |
Interest expense-amortization of deferred financing costs | $ 0.3 | $ 0.4 | $ 0.6 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative - Plan Descriptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 706.9 | $ 1,005 | |
Retirement benefits, net | $ 32 | ||
First 3% of Compensation Contributed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of company matching compensation contributed | 100% | ||
Percent of participant's compensation contributed | 3% | ||
Cost of 401(k) plan | $ 23.7 | 22.8 | $ 21.8 |
Defined Contribution 401(k) Plan, Next 3% Contributed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of company matching compensation contributed | 50% | ||
Percent of participant's compensation contributed | 3% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 706.9 | 1,005 | 957 |
Projected benefit obligations, total | 949.7 | 1,279.3 | $ 1,381.5 |
Unfunded pension obligation | 242.8 | 274.3 | |
Employer contributions | 16.9 | 18.8 | |
Actuarial losses (gains) | 262.7 | $ 29.2 | |
Pension Benefits | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected cash contributions | 7 | ||
Employer contributions | 15.4 | ||
Amount expected to be recoverable | $ 18.4 | ||
Discount rate (percentage) | 5.56% | 2.90% | 2.52% |
Retirement Benefits - Summary o
Retirement Benefits - Summary of Company's Plan Assets, Benefit Obligations, and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in fair value of assets: | |||
Fair value - beginning of year | $ 1,005 | ||
(Loss) gain on assets | (212.5) | $ 135.7 | $ 117.1 |
Fair value - end of year | 706.9 | 1,005 | |
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | (229.3) | (255.9) | |
Net liability recognized in the consolidated balance sheets | (1,830.5) | (1,900.1) | |
Pension Benefits | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 1,005 | 957 | |
(Loss) gain on assets | (212.5) | 135.7 | |
Employer contributions | 16.9 | 18.8 | |
Benefits paid | (102.5) | (106.5) | |
Fair value - end of year | 706.9 | 1,005 | 957 |
Change in benefits obligation: | |||
Benefits obligation - beginning of year | 1,279.3 | 1,381.5 | |
Interest cost | 35.6 | 33.5 | 42.5 |
Actuarial gains | (262.7) | (29.2) | |
Benefits paid | (102.5) | (106.5) | |
Benefits obligation - end of year | 949.7 | 1,279.3 | 1,381.5 |
Funded status of the plans | (242.8) | (274.3) | |
Amounts recognized in the consolidated balance sheets: | |||
Postretirement medical and life insurance benefits, current | 0 | 0 | |
Postretirement medical and life insurance benefits, noncurrent | 0 | 0 | |
Pension benefits, noncurrent | (229.3) | (255.9) | |
Net liability recognized in the consolidated balance sheets | (242.8) | (274.3) | |
Benefit paid during period | 102.5 | 106.5 | |
Pension Benefits | Other Current Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension liability, non-qualified current (component of other current liabilities) | (1.3) | (1.4) | |
Pension Benefits | Other Noncurrent Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | (12.2) | (17) | |
Medical and Life Insurance Benefits | |||
Change in fair value of assets: | |||
Fair value - beginning of year | 0 | 0 | |
(Loss) gain on assets | 0 | 0 | |
Employer contributions | 2.2 | 2.4 | |
Benefits paid | (2.2) | (2.4) | |
Fair value - end of year | 0 | 0 | 0 |
Change in benefits obligation: | |||
Benefits obligation - beginning of year | 19.6 | 25 | |
Interest cost | 0.5 | 0.5 | 0.8 |
Actuarial gains | (3.1) | (3.5) | |
Benefits paid | (2.2) | (2.4) | |
Benefits obligation - end of year | 14.8 | 19.6 | $ 25 |
Funded status of the plans | (14.8) | (19.6) | |
Amounts recognized in the consolidated balance sheets: | |||
Postretirement medical and life insurance benefits, current | (2.3) | (2.7) | |
Postretirement medical and life insurance benefits, noncurrent | (12.5) | (16.9) | |
Pension benefits, noncurrent | 0 | 0 | |
Net liability recognized in the consolidated balance sheets | (14.8) | (19.6) | |
Benefit paid during period | 2.2 | 2.4 | |
Medical and Life Insurance Benefits | Other Current Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension liability, non-qualified current (component of other current liabilities) | 0 | 0 | |
Medical and Life Insurance Benefits | Other Noncurrent Liabilities | |||
Amounts recognized in the consolidated balance sheets: | |||
Pension benefits, noncurrent | 0 | 0 | |
Medicare Part D Subsidy | |||
Change in fair value of assets: | |||
Benefits paid | (0.1) | (0.1) | |
Amounts recognized in the consolidated balance sheets: | |||
Benefit paid during period | $ 0.1 | $ 0.1 |
Retirement Benefits - Narrati_2
Retirement Benefits - Narrative - Summary of Company's Plan Assets, Benefit Obligations, and Funded Status (Details) - Pension Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gains (losses) | $ 262.7 | $ 29.2 | |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 5.56% | 2.90% | 2.52% |
Retirement Benefits - Summary_2
Retirement Benefits - Summary of Components of Retirement Benefit Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on benefits obligation | $ 35.6 | $ 33.5 | $ 42.5 |
Assumed return on assets | (62.8) | (61.4) | (60.5) |
Amortization of prior service costs | 0.1 | 0.1 | 0.1 |
Amortization of net losses (gains) | 30.6 | 63.9 | 57.4 |
Retirement benefit expense (income) | 3.5 | 36.1 | 39.5 |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on benefits obligation | 0.5 | 0.5 | 0.8 |
Assumed return on assets | 0 | 0 | 0 |
Amortization of prior service costs | 0 | 0 | 0 |
Amortization of net losses (gains) | (2.9) | (2.7) | (3.7) |
Retirement benefit expense (income) | $ (2.4) | $ (2.2) | $ (2.9) |
Retirement Benefits - Summary_3
Retirement Benefits - Summary of Actual Return and Rate of Return on Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Actual (loss) gain on assets | $ (212.5) | $ 135.7 | $ 117.1 |
Actual rate of return on assets | (21.60%) | 15% | 15.60% |
Retirement Benefits - Narrati_3
Retirement Benefits - Narrative - Summary of Components of Retirement Benefit Expense (Income) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Difference between expected return and actual return on market-related value of assets which smooths asset values (in years) | 3 years |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Assumptions Used to Determine Benefit Obligations (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 5.66% | 2.77% | |
Ultimate healthcare trend rate (percentage) | 4.50% | 4.50% | |
Initial healthcare trend rate (pre 65/post 65) (percentage) | 7% | 6.25% | |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 5.56% | 2.90% | 2.52% |
Nonqualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 5.58% | 2.89% |
Retirement Benefits - Schedul_2
Retirement Benefits - Schedule of Assumptions Used to Determine Periodic Benefit Expense (Income) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets (percentage) | 7% | 7% | 7% |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 2.77% | 2.28% | 3.19% |
Ultimate healthcare trend rate (percentage) | 4.50% | 4.50% | 4.50% |
Initial healthcare trend rate (pre 65/post 65) (percentage) | 6.25% | 6.50% | 5.50% |
Qualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 2.90% | 2.52% | 3.28% |
Nonqualified Plan | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (percentage) | 2.89% | 2.51% | 3.30% |
Retirement Benefits - Narrati_4
Retirement Benefits - Narrative - Plan Assumptions (Details) - participant | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term rate of return on assets (percentage) | 7% | 7% | 7% |
Medical and Life Insurance Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial healthcare trend rate (pre 65/post 65) (percentage) | 7% | 6.25% | |
Number of participants (in participants) | 65 | ||
Number of years until rate reaches ultimate trend rate | 10 years | ||
Ultimate healthcare trend rate (percentage) | 4.50% | 4.50% |
Retirement Benefits - Schedul_3
Retirement Benefits - Schedule of Pension Plan's Asset Allocations by Asset Category (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 100% | 100% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 3% | 5% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 40% | 47% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 13% | 12% |
Registered investment companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 1% | 1% |
Private assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 16% | 10% |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans weighted average asset allocation | 27% | 25% |
Retirement Benefits - Schedul_4
Retirement Benefits - Schedule of Fair Value of Pension Plan Assets and Liabilities by Asset Category and by Level (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 386 | $ 604.4 | |
Receivables | 2.9 | 9.9 | |
Payables | (12.7) | (18) | |
Total assets | 706.9 | 1,005 | |
Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 255.9 | 428.5 | |
International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 26.8 | 44.2 | |
Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 55 | 57.5 | |
Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 24.6 | 29.3 | |
U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6.2 | 28.8 | |
Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.2 | 0.9 | |
Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | (0.1) | ||
Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9.9 | 13.9 | |
Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6.4 | 1.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 292.6 | 486.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 255.9 | 428.5 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 26.8 | 44.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9.9 | 13.9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 67.5 | 99 | |
Other Observable Inputs (Level 2) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Observable Inputs (Level 2) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Observable Inputs (Level 2) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 35.5 | 39.9 | |
Other Observable Inputs (Level 2) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 24.6 | 29.3 | |
Other Observable Inputs (Level 2) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6.2 | 28.8 | |
Other Observable Inputs (Level 2) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.2 | 0.9 | |
Other Observable Inputs (Level 2) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Other Observable Inputs (Level 2) | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | ||
Other Observable Inputs (Level 2) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | (0.1) | ||
Other Observable Inputs (Level 2) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Observable Inputs (Level 2) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 25.9 | 18.8 | |
Total assets | 25.9 | 18.8 | $ 41.1 |
Unobservable Inputs (Level 3) | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Total assets | 0 | 6.1 | |
Unobservable Inputs (Level 3) | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | Corporate debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 19.5 | 17.6 | |
Total assets | 19.5 | 17.6 | 31.9 |
Unobservable Inputs (Level 3) | Asset-backed securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | Foreign bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | Municipal bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Unobservable Inputs (Level 3) | Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Unobservable Inputs (Level 3) | Foreign exchange contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Unobservable Inputs (Level 3) | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Unobservable Inputs (Level 3) | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6.4 | 1.2 | |
Total assets | 6.4 | 1.2 | $ 3.1 |
NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 330.7 | 408.7 | |
NAV | Private assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 104.9 | 97.8 | |
NAV | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 192.6 | 254.5 | |
NAV | Common/collective trusts ("CCTs") | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 33.2 | $ 56.4 |
Retirement Benefits - Narrati_5
Retirement Benefits - Narrative - Plan Assets and Investment Policy (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Private assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in plan assets | $ (0.3) | $ 1.1 |
Retirement Benefits - Schedul_5
Retirement Benefits - Schedule of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Change in fair value of assets: | ||
Fair value - beginning of year | $ 1,005 | |
Fair value - end of year | 706.9 | $ 1,005 |
Unobservable Inputs (Level 3) | ||
Change in fair value of assets: | ||
Fair value - beginning of year | 18.8 | 41.1 |
Unrealized Gains | (0.1) | 10.2 |
Realized Gains | 0.3 | 1.1 |
Purchases, Sales, and Settlements, net | 6.9 | (33.6) |
Fair value - end of year | 25.9 | 18.8 |
Unobservable Inputs (Level 3) | Equity securities | ||
Change in fair value of assets: | ||
Fair value - beginning of year | 0 | 6.1 |
Unrealized Gains | 10.1 | |
Realized Gains | 1.1 | |
Purchases, Sales, and Settlements, net | (17.3) | |
Fair value - end of year | 0 | |
Unobservable Inputs (Level 3) | Corporate debt securities | ||
Change in fair value of assets: | ||
Fair value - beginning of year | 17.6 | 31.9 |
Unrealized Gains | 0 | 0.1 |
Realized Gains | 0 | 0 |
Purchases, Sales, and Settlements, net | 1.9 | (14.4) |
Fair value - end of year | 19.5 | 17.6 |
Unobservable Inputs (Level 3) | Private assets | ||
Change in fair value of assets: | ||
Fair value - beginning of year | 1.2 | 3.1 |
Unrealized Gains | (0.1) | 0 |
Realized Gains | 0.3 | 0 |
Purchases, Sales, and Settlements, net | 5 | (1.9) |
Fair value - end of year | $ 6.4 | $ 1.2 |
Retirement Benefits - Schedul_6
Retirement Benefits - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefits | |
Expected Benefit Payments | |
2023 | $ 95.6 |
2024 | 93.5 |
2025 | 91 |
2026 | 88.2 |
2027 | 85.2 |
Years 2028 - 2032 | 374.4 |
Medical and Life Insurance Benefits | |
Expected Benefit Payments | |
2023 | 2.4 |
2024 | 2.1 |
2025 | 1.9 |
2026 | 1.7 |
2027 | 1.5 |
Years 2028 - 2032 | 5.3 |
Gross Benefit Payments | |
2023 | 2.4 |
2024 | 2.2 |
2025 | 1.9 |
2026 | 1.7 |
2027 | 1.5 |
Years 2028 - 2032 | 5.4 |
Medicare D Subsidy | |
2023 | 0 |
2024 | 0.1 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Years 2028 - 2032 | $ 0.1 |
Commitments and Contingencies -
Commitments and Contingencies - Legal Matters (Details) $ in Millions | Apr. 27, 2022 USD ($) | Dec. 31, 2022 legalMatter |
Asbestos Litigation | ||
Loss Contingencies [Line Items] | ||
Unresolved asbestos cases pending (in legal matters) | legalMatter | 170 | |
United States Ex. Rel. Markus Vs. Aerojet Rocketdyne Holdings | Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Settlement in principle, amount | $ 9 | |
Attorney's fees | $ 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Environmental Matters (Details) | 12 Months Ended | ||||||
May 09, 2017 | Dec. 31, 2022 USD ($) legalMatter | Dec. 31, 2002 USD ($) a respondent waterCompany | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Oct. 31, 2001 USD ($) | |
Site Contingency [Line Items] | |||||||
Number of environmental remediation matters (in legal matters) | legalMatter | 40 | ||||||
Amortization period for environmental remediation costs | 15 years | ||||||
Accrued environmental costs | $ 290,500,000 | $ 296,400,000 | $ 300,600,000 | $ 309,200,000 | |||
Guarantee obligations | 120,000,000 | ||||||
Various Environmental Matters | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | 290,500,000 | ||||||
Various Environmental Matters | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | 223,600,000 | ||||||
Various Environmental Matters | Sacramento, California | Environmental Protection Agency | |||||||
Site Contingency [Line Items] | |||||||
Non-contaminated land | a | 2,600 | ||||||
Various Environmental Matters | Sacramento, California | Previously Reported | |||||||
Site Contingency [Line Items] | |||||||
Guarantee obligations | $ 20,000,000 | ||||||
Various Environmental Matters | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Accrued environmental costs | $ 50,800,000 | ||||||
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 costs | 74% | ||||||
Various Environmental Matters | Baldwin Park Operable Unit | Environmental Protection Agency | |||||||
Site Contingency [Line Items] | |||||||
Number of respondents (in respondents) | respondent | 7 | ||||||
Number of water companies (in water companies) | waterCompany | 5 | ||||||
Term of arrangement (years) | 10 years | ||||||
Various Environmental Matters | Contracting business | |||||||
Site Contingency [Line Items] | |||||||
Environmental obligation funding percent | 98% | ||||||
Various Environmental Matters | Minimum | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | $ 290,500,000 | ||||||
Various Environmental Matters | Minimum | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 223,600,000 | ||||||
Guarantee obligations | $ 10,000,000 | ||||||
Various Environmental Matters | Minimum | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 50,800,000 | ||||||
Various Environmental Matters | Maximum | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 447,100,000 | ||||||
Various Environmental Matters | Maximum | Sacramento, California | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | 357,000,000 | ||||||
Guarantee obligations | $ 75,000,000 | ||||||
Various Environmental Matters | Maximum | Baldwin Park Operable Unit | |||||||
Site Contingency [Line Items] | |||||||
Estimated environmental costs | $ 62,600,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative - Environmental Reserves and Estimated Recoveries (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2002 a | Jun. 30, 2017 USD ($) | |
Site Contingency [Line Items] | |||
Environmental remediation cost expected period (years) | 15 years | ||
Estimated non-reimbursable costs (percentage) | 12% | ||
Northrop | |||
Site Contingency [Line Items] | |||
Recoverable percentage of costs (percentage) | 88% | ||
Current annual billing limitation | $ | $ 6 | ||
Total reimbursable costs under the Northrop Agreement | $ | $ 189.7 | $ 189.7 | |
Environmental Protection Agency | Various Environmental Matters | Sacramento, California | |||
Site Contingency [Line Items] | |||
Acres Of Land | a | 2,600 | ||
DTSC's Environmental | Various Environmental Matters | Sacramento, California | |||
Site Contingency [Line Items] | |||
Acres Of Land | a | 400 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Environmental Reserve Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | $ 296.4 | $ 300.6 | $ 309.2 | |
Additions | 33.8 | 35.3 | 32.4 | |
Expenditures | (39.7) | (39.5) | (41) | |
Ending balance | $ 290.5 | $ 296.4 | $ 300.6 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Reserves for environmental remediation costs | Reserves for environmental remediation costs | Reserves for environmental remediation costs | Reserves for environmental remediation costs |
Aerojet Rocketdyne- Sacramento | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | $ 214.7 | $ 208.4 | $ 203.6 | |
Additions | 31.4 | 28.8 | 30.9 | |
Expenditures | (22.5) | (22.5) | (26.1) | |
Ending balance | 223.6 | 214.7 | 208.4 | |
Aerojet Rocketdyne- BPOU | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | 64.7 | 76.2 | 89.6 | |
Additions | 1.6 | 2.5 | (0.2) | |
Expenditures | (15.5) | (14) | (13.2) | |
Ending balance | 50.8 | 64.7 | 76.2 | |
Other Aerojet Rocketdyne Sites | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | 11.8 | 10.6 | 11.8 | |
Additions | 0.3 | 3.7 | 0 | |
Expenditures | (1.3) | (2.5) | (1.2) | |
Ending balance | 10.8 | 11.8 | 10.6 | |
Total Aerojet Rocketdyne | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | 291.2 | 295.2 | 305 | |
Additions | 33.3 | 35 | 30.7 | |
Expenditures | (39.3) | (39) | (40.5) | |
Ending balance | 285.2 | 291.2 | 295.2 | |
Other | ||||
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | 5.2 | 5.4 | 4.2 | |
Additions | 0.5 | 0.3 | 1.7 | |
Expenditures | (0.4) | (0.5) | (0.5) | |
Ending balance | $ 5.3 | $ 5.2 | $ 5.4 |
Commitments and Contingencies_5
Commitments and Contingencies - Summary of Northrop Agreement Activity (Details) - Northrop - USD ($) $ in Millions | Dec. 31, 2022 | Jun. 30, 2017 |
Site Contingency [Line Items] | ||
Total reimbursable costs under the Northrop Agreement | $ 189.7 | $ 189.7 |
Amount reimbursed to the Company through December 31, 2022 | (155.2) | |
Receivable from Northrop included in the balance sheet at December 31, 2022 | $ 34.5 |
Commitments and Contingencies_6
Commitments and Contingencies - Summary of Environmental Reserves and Recoveries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Environmental Remediation Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net |
Expense to consolidated statement of operations | $ 4.1 | $ 4.1 | $ 4.3 |
Commitments and Contingencies_7
Commitments and Contingencies - Arrangements with Off-Balance Sheet Risk (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Outstanding surety bonds | $ 76 |
Professional and Contract Services Expense | 42 |
Guarantee obligations | $ 120 |
Product warranty period (years) | 1 year |
Line of Credit | Letter of Credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Letters of credit outstanding | $ 28.9 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 20, 2020 | Dec. 19, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Preference stock, shares authorized (in shares) | 15,000,000 | 15,000,000 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Common stock, share authorized (in shares) | 150,000,000 | 150,000,000 | ||||
Common stock, par value (in USD per share) | $ 0.10 | $ 0.10 | ||||
Common stock, shares outstanding (in shares) | 80,700,000 | 80,100,000 | ||||
Number of shares reserved for future issuance (in shares) | 5,300,000 | |||||
Treasury stock, shares (in shares) | 2,000,000 | 2,100,000 | ||||
Issuance of treasury stock (in shares) | 100,000 | |||||
Issuance of treasury stock | $ 3,300,000 | |||||
Stock repurchased (in shares) | 1,300,000 | |||||
Stock repurchased, value | $ 51,700,000 | $ 51,700,000 | ||||
Cash dividends per share (in USD per share) | $ 5 | $ 5 | ||||
2 1/4% Notes | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Debt instrument interest rate stated percentage | 2.25% | 2.25% | ||||
Convertible senior notes | 2 1/4% Notes | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Debt instrument interest rate stated percentage | 2.25% | |||||
SARs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, outstanding (in shares) | 500,000 | 800,000 | ||||
SARs liabilities paid | $ 4,200,000 | $ 800,000 | $ 7,600,000 | |||
SARs | Employee | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual life (years) | 7 years | |||||
SARs | Employee | Vesting Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage (percentage) | 33.30% | |||||
SARs | Employee | Vesting Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage (percentage) | 33.30% | |||||
SARs | Employee | Vesting Period Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage (percentage) | 33.30% | |||||
SARs | Director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Contractual life (years) | 7 years | |||||
SARs | Director | Vesting Period One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage (percentage) | 50% | |||||
SARs | Director | Vesting Period Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage (percentage) | 50% | |||||
Service Based Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based restricted stock outstanding (in shares) | 100,000 | 100,000 | ||||
Stock-based compensation related to nonvested service-based restricted stock | $ 1,500,000 | |||||
Amortization period (months) | 29 months | |||||
Service-based restricted stock outstanding and expected to vest | $ 2,100,000 | |||||
Average grant date fair value (in USD per share) | $ 44.44 | $ 48.61 | ||||
Restricted stock, granted (in shares) | 100,000 | |||||
Service Based Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based restricted stock outstanding (in shares) | 200,000 | 200,000 | ||||
Stock-based compensation related to nonvested service-based restricted stock | $ 8,100,000 | |||||
Amortization period (months) | 27 months | |||||
Service-based restricted stock outstanding and expected to vest | $ 11,100,000 | |||||
Average grant date fair value (in USD per share) | $ 47.89 | |||||
Restricted stock, granted (in shares) | 100,000 | |||||
Performance-based restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based restricted stock outstanding (in shares) | 100,000 | 300,000 | ||||
Stock-based compensation related to nonvested service-based restricted stock | $ 2,000,000 | |||||
Amortization period (months) | 22 months | |||||
Service-based restricted stock outstanding and expected to vest | $ 6,300,000 | |||||
Average grant date fair value (in USD per share) | $ 53.84 | |||||
Equity instruments other than options vested and expected to vest aggregate intrinsic value | $ 3,700,000 | |||||
Restricted stock, granted (in shares) | 100,000 | |||||
Restricted stock and restricted stock units, performance based | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based restricted stock outstanding (in shares) | 800,000 | 1,000,000 | ||||
Stock-based compensation related to nonvested service-based restricted stock | $ 15,500,000 | |||||
Amortization period (months) | 24 months | |||||
Service-based restricted stock outstanding and expected to vest | $ 41,800,000 | |||||
Average grant date fair value (in USD per share) | $ 52.55 | |||||
Equity instruments other than options vested and expected to vest aggregate intrinsic value | $ 26,100,000 | |||||
Restricted stock, granted (in shares) | 400,000 | |||||
Employee stock purchase plan ("ESPP") | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock purchase price (percentage) | 85% | |||||
Shares issued (in shares) | 100,000 | 200,000 | ||||
Weighted average price per share (in usd per share) | $ 48.29 | $ 45.65 | ||||
Employee stock purchase plan ("ESPP") | 2013 Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance (in shares) | 1,500,000 | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, outstanding (in shares) | 0 | 0 | ||||
Performance stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based restricted stock outstanding (in shares) | 0 | |||||
Unrecognized stock-based compensation | $ 0 | $ 0 | ||||
Performance stock units | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average grant date fair value (in USD per share) | $ 37.12 | |||||
Restricted stock, granted (in shares) | 100,000 | |||||
Performance stock units | Executive Officer | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in usd per share) | $ 57.80 | |||||
Performance stock units | Executive Officer | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in usd per share) | $ 67.85 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock-Based Compensation Expense by Type of Award (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 26.6 | $ 20.7 | $ 31.4 |
SARs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 0.8 | 2 | 8.1 |
Restricted stock and restricted stock units, service based | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 6.3 | 6.3 | 8.6 |
Restricted stock and restricted stock units, performance based | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 19 | 11.9 | 12.6 |
Employee stock purchase plan ("ESPP") | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 0.5 | 0.5 | 1.1 |
Stock options | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 0 | $ 1 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Appreciation Rights (Details) - SARs $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Stock, outstanding, beginning balance (in shares) | shares | 0.8 |
Stock, canceled (in shares) | shares | (0.3) |
Stock, outstanding, ending balance (in shares) | shares | 0.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, beginning balance (in USD per share) | $ / shares | $ 24.46 |
Weighted average grant date fair value, exercised (in USD per share) | $ / shares | 28.22 |
Weighted average exercise price, ending balance (in USD per share) | $ / shares | $ 22.22 |
Weighted average remaining contractual life, outstanding (years) | 2 years |
Intrinsic value, outstanding | $ | $ 17.5 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Units (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Service Based Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 0.1 | |
Granted (in shares) | 0.1 | |
Exercised (in shares) | (0.1) | |
Outstanding, ending balance (in shares) | 0.1 | 0.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 45.97 | |
Weighted average grant date fair value, granted (in USD per share) | 44.44 | $ 48.61 |
Weighted average grant date fair value, exercised (in USD per share) | 44.18 | |
Weighted average grant date fair value, ending balance (in USD per share) | $ 46.32 | $ 45.97 |
Service Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 0.2 | |
Granted (in shares) | 0.1 | |
Exercised (in shares) | (0.1) | |
Outstanding, ending balance (in shares) | 0.2 | 0.2 |
Expected to vest (in shares) | 0.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 47.10 | |
Weighted average grant date fair value, granted (in USD per share) | 47.89 | |
Weighted average grant date fair value, exercised (in USD per share) | 48.45 | |
Weighted average grant date fair value, ending balance (in USD per share) | 47.13 | $ 47.10 |
Weighted average grant date fair value, expected to vest (in USD per share) | $ 47.13 | |
Performance Based Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 0.3 | |
Granted (in shares) | 0.1 | |
Exercised (in shares) | (0.3) | |
Outstanding, ending balance (in shares) | 0.1 | 0.3 |
Expected to vest (in shares) | 0.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 40.31 | |
Weighted average grant date fair value, granted (in USD per share) | 53.84 | |
Weighted average grant date fair value, exercised (in USD per share) | 38.44 | |
Weighted average grant date fair value, ending balance (in USD per share) | 52.28 | $ 40.31 |
Weighted average grant date fair value, expected to vest (in USD per share) | $ 51.93 | |
Restricted stock and restricted stock units, performance based | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 1 | |
Granted (in shares) | 0.4 | |
Exercised (in shares) | (0.4) | |
Canceled (in shares) | (0.2) | |
Outstanding, ending balance (in shares) | 0.8 | 1 |
Expected to vest (in shares) | 0.5 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, beginning balance (in USD per share) | $ 49.12 | |
Weighted average grant date fair value, granted (in USD per share) | 52.55 | |
Weighted average grant date fair value, exercised (in USD per share) | 49.09 | |
Weighted average grant date fair value, canceled (in USD per share) | 48.24 | |
Weighted average grant date fair value, ending balance (in USD per share) | 51.10 | $ 49.12 |
Weighted average grant date fair value, expected to vest (in USD per share) | $ 50.87 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 8 months 1 day | ||
Volatility | 35.41% | ||
Risk-free interest rate | 0.72% | ||
Dividend yield | 0% | ||
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 1 year | 3 years 2 months 12 days | 8 months 12 days |
Volatility | 36.07% | 38.17% | 48.30% |
Risk-free interest rate | 4.64% | 0.94% | 0.11% |
Dividend yield | 0% | 0% | 0% |
Operating Segments and Relate_3
Operating Segments and Related Disclosures - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments (in segments) | 2 |
Operating Segments and Relate_4
Operating Segments and Related Disclosures - Selected Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Sales: | |||
Net sales | $ 2,237.6 | $ 2,188 | $ 2,072.7 |
Segment Performance: | |||
Environmental remediation provision adjustments | (4.1) | (4.1) | (4.3) |
Retirement benefits, net | (32) | ||
Reconciliation of segment performance to income before income taxes: | |||
Interest expense | (18.6) | (20.1) | (30.1) |
Stock-based compensation | (26.6) | (20.7) | (31.4) |
Corporate retirement benefits expense | (32) | ||
Income before income taxes | 108.3 | 195 | 180.2 |
Capital Expenditures | 40.7 | 37.3 | 54.6 |
Depreciation and amortization | 57.3 | 61.4 | 65.3 |
Aerospace and Defense | |||
Reconciliation of segment performance to income before income taxes: | |||
Capital Expenditures | 40.7 | 37.3 | 54.6 |
Depreciation and amortization | 56.6 | 60.5 | 64.2 |
Real Estate Segment | |||
Reconciliation of segment performance to income before income taxes: | |||
Capital Expenditures | 0 | 0 | 0 |
Depreciation and amortization | 0.5 | 0.7 | 0.8 |
Operating Segments | |||
Net Sales: | |||
Net sales | 2,237.6 | 2,188 | 2,072.7 |
Segment Performance: | |||
Segment performance | 251.9 | 288.8 | 273.8 |
Reconciliation of segment performance to income before income taxes: | |||
Segment performance | 251.9 | 288.8 | 273.8 |
Operating Segments | Aerospace and Defense | |||
Net Sales: | |||
Net sales | 2,235.2 | 2,179.3 | 2,069.4 |
Segment Performance: | |||
Aerospace and Defense | 240.1 | 282.3 | 264.2 |
Environmental remediation provision adjustments | (3.9) | (3.8) | (2.7) |
Retirement benefits, net | 33.7 | 11.5 | 14.7 |
Unusual items | (17) | (4.1) | (0.6) |
Segment performance | 252.9 | 285.9 | 275.6 |
Reconciliation of segment performance to income before income taxes: | |||
Segment performance | 252.9 | 285.9 | 275.6 |
Corporate retirement benefits expense | 33.7 | 11.5 | 14.7 |
Unusual items | (17) | (4.1) | (0.6) |
Operating Segments | Real Estate Segment | |||
Net Sales: | |||
Net sales | 2.4 | 8.7 | 3.3 |
Segment Performance: | |||
Segment performance | (1) | 2.9 | (1.8) |
Reconciliation of segment performance to income before income taxes: | |||
Segment performance | (1) | 2.9 | (1.8) |
Segment Reconciling Items | |||
Segment Performance: | |||
Unusual items | (77) | (25.3) | (7.5) |
Reconciliation of segment performance to income before income taxes: | |||
Interest expense | (18.6) | (20.1) | (30.1) |
Interest income | 5.4 | 2.5 | 6.3 |
Stock-based compensation | (26.6) | (20.7) | (31.4) |
Unusual items | (77) | (25.3) | (7.5) |
Corporate | |||
Segment Performance: | |||
Retirement benefits, net | 0.3 | (6.6) | (7.5) |
Reconciliation of segment performance to income before income taxes: | |||
Corporate retirement benefits expense | 0.3 | (6.6) | (7.5) |
Corporate and other | (27.1) | (23.6) | (23.4) |
Capital Expenditures | 0 | 0 | 0 |
Depreciation and amortization | $ 0.2 | $ 0.2 | $ 0.3 |
Operating Segments and Relate_5
Operating Segments and Related Disclosures - Selected Financial Information for Each Reportable Segment, Components of Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,371.8 | $ 2,423.4 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,939.9 | 1,634.6 |
Operating Segments | Aerospace and Defense | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,802.3 | 1,499.5 |
Operating Segments | Real Estate Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | 137.6 | 135.1 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 431.9 | $ 788.8 |
Unusual Items - Schedule of Unu
Unusual Items - Schedule of Unusual Items Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unusual or Infrequent Item [Line Items] | |||
Loss on debt | $ 22.7 | $ 10.5 | $ 0 |
Unusual items | |||
Unusual or Infrequent Item [Line Items] | |||
Proxy contest and related litigation costs (component of other expense, net) | 27.8 | 0 | 0 |
Merger costs (component of other expense, net) | 25.3 | 0 | 0 |
Loss on debt | 22.7 | 10.5 | 0 |
Legal matters (component of other expense, net) | 15.7 | 0 | 0.4 |
Terminated Merger costs (component of other expense, net) | 2.5 | 18.9 | 7.7 |
Total unusual items | $ 94 | $ 29.4 | $ 8.1 |
Unusual Items - Narrative (Deta
Unusual Items - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Loss on debt | $ (22.7) | $ (10.5) | $ 0 |
2 1/4% Notes | |||
Debt Instrument [Line Items] | |||
Extinguishment of debt | $ 154.1 | ||
Debt instrument interest rate stated percentage | 2.25% | 2.25% | |
2 1/4% Notes | Convertible debt | |||
Debt Instrument [Line Items] | |||
Loss on debt | $ 22.6 | $ (10.5) | |
Extinguishment of debt | $ 154.1 | ||
Converted instrument, shares settled (in shares) | 2.9 | ||
Debt instrument interest rate stated percentage | 2.25% | ||
2 1/4% Notes | Convertible debt | Senior credit facility | |||
Debt Instrument [Line Items] | |||
Loss on debt | $ 0.1 | ||
Unusual items | |||
Debt Instrument [Line Items] | |||
Proxy contest and related litigation costs | 27.8 | $ 0 | 0 |
Merger costs | 25.3 | 0 | 0 |
Loss on debt | (22.7) | (10.5) | 0 |
Legal matters | $ 15.7 | $ 0 | $ 0.4 |
Unusual Items - Schedule of Mer
Unusual Items - Schedule of Merger Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Unusual or Infrequent Item [Line Items] | |||
Payments of merger related costs | $ 25.3 | ||
Payments of terminated merger costs | 2.5 | $ 18.9 | $ 7.7 |
Legal | |||
Unusual or Infrequent Item [Line Items] | |||
Payments of merger related costs | 4 | ||
Payments of terminated merger costs | 1.6 | 12.9 | 3.9 |
Consulting and other professional costs | |||
Unusual or Infrequent Item [Line Items] | |||
Payments of merger related costs | 19.6 | ||
Payments of terminated merger costs | 0.5 | 1.1 | 3.4 |
Internal labor | |||
Unusual or Infrequent Item [Line Items] | |||
Payments of merger related costs | 1.7 | ||
Payments of terminated merger costs | 0.4 | 4.9 | $ 0.4 |
Recurring internal labor | |||
Unusual or Infrequent Item [Line Items] | |||
Payments of merger related costs | 0.7 | ||
Payments of terminated merger costs | $ 0.4 | $ 4.4 |
Revision of Previously Issued_3
Revision of Previously Issued Financial Statements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Jan. 01, 2020 | Jan. 01, 2019 | |
Reclassification [Line Items] | ||||||
Other capital | $ 507.2 | $ 578.1 | $ 20.9 | $ 20.9 | $ 20.9 | |
Retained earnings | 176.6 | 102.6 | $ 7.8 | $ 8 | $ 7.9 | |
Income tax provision | $ 34.3 | 48.4 | $ 42.7 | |||
Income tax expense, overstated (understated) | 2.9 | (0.2) | ||||
Reclassifications due to adoption | ||||||
Reclassification [Line Items] | ||||||
Other capital | (20.9) | |||||
Retained earnings | 10.7 | |||||
Income tax provision | $ (2.9) | $ 0.2 |
Revision of Previously Issued_4
Revision of Previously Issued Financial Statements - Condensed Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net sales | $ 2,237.6 | $ 2,188 | $ 2,072.7 |
Total operating costs and expenses | 2,092.3 | 1,931 | 1,832.1 |
Operating income | 145.3 | 257 | 240.6 |
Total non-operating expense, net | 37 | 62 | 60.4 |
Income before income taxes | 108.3 | 195 | 180.2 |
Income tax provision | 34.3 | 48.4 | 42.7 |
Net income | $ 74 | $ 146.6 | $ 137.5 |
Basic EPS (in USD per share) | $ 0.92 | $ 1.84 | $ 1.76 |
Diluted EPS (in USD per share) | $ 0.90 | $ 1.78 | $ 1.66 |
Weighted average shares of common stock outstanding, basic (in shares) | 80.3 | 79.2 | 77.4 |
Weighted average shares of common stock outstanding, diluted (in shares) | 83.3 | 81.7 | 81.9 |
Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net sales | $ 2,188 | $ 2,072.7 | |
Total operating costs and expenses | 1,931 | 1,832.1 | |
Operating income | 257 | 240.6 | |
Total non-operating expense, net | 62 | 60.4 | |
Income before income taxes | 195 | 180.2 | |
Income tax provision | 51.3 | 42.5 | |
Net income | $ 143.7 | $ 137.7 | |
Basic EPS (in USD per share) | $ 1.80 | $ 1.76 | |
Diluted EPS (in USD per share) | $ 1.75 | $ 1.66 | |
Weighted average shares of common stock outstanding, basic (in shares) | 79.2 | 77.4 | |
Weighted average shares of common stock outstanding, diluted (in shares) | 81.7 | 81.9 | |
Effect of Revision | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net sales | $ 0 | $ 0 | |
Total operating costs and expenses | 0 | 0 | |
Operating income | 0 | 0 | |
Total non-operating expense, net | 0 | 0 | |
Income before income taxes | 0 | 0 | |
Income tax provision | (2.9) | 0.2 | |
Net income | $ 2.9 | $ (0.2) | |
Basic EPS (in USD per share) | $ 0.04 | $ 0 | |
Diluted EPS (in USD per share) | $ 0.03 | $ 0 | |
Weighted average shares of common stock outstanding, basic (in shares) | 0 | 0 | |
Weighted average shares of common stock outstanding, diluted (in shares) | 0 | 0 |
Revision of Previously Issued_5
Revision of Previously Issued Financial Statements - Condensed Consolidated Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification [Line Items] | |||
Net income | $ 74 | $ 146.6 | $ 137.5 |
Actuarial gains and amortization of actuarial losses, net of income taxes | 126.6 | 8.9 | |
Comprehensive income | $ 87.5 | 273.2 | 146.4 |
Previously Reported | |||
Reclassification [Line Items] | |||
Net income | 143.7 | 137.7 | |
Actuarial gains and amortization of actuarial losses, net of income taxes | 126.6 | 8.9 | |
Comprehensive income | 270.3 | 146.6 | |
Effect of Revision | |||
Reclassification [Line Items] | |||
Net income | 2.9 | (0.2) | |
Actuarial gains and amortization of actuarial losses, net of income taxes | 0 | 0 | |
Comprehensive income | $ 2.9 | $ (0.2) |
Revision of Previously Issued_6
Revision of Previously Issued Financial Statements - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Current Assets | |||||||
Cash and cash equivalents | $ 322.1 | $ 700.4 | |||||
Restricted cash | 3.1 | 3 | |||||
Marketable securities | 10.5 | 10.6 | |||||
Accounts receivable | 126.6 | 60.6 | |||||
Contract assets | 451.1 | 354.2 | |||||
Other current assets | 155.6 | 99.5 | |||||
Total Current Assets | 1,069 | 1,228.3 | |||||
Noncurrent Assets | |||||||
Right-of-use assets | 54.5 | 52.6 | |||||
Property, plant and equipment, net | 420.2 | 421.1 | |||||
Recoverable environmental remediation costs | 221.5 | 226.2 | |||||
Deferred income taxes | 208.7 | 55.6 | |||||
Goodwill | 161.4 | 161.4 | |||||
Intangible assets | 28.3 | 34.9 | |||||
Other noncurrent assets | 208.2 | 243.3 | |||||
Total Noncurrent Assets | 1,302.8 | 1,195.1 | |||||
Total Assets | 2,371.8 | 2,423.4 | |||||
Current Liabilities | |||||||
Total Current Liabilities | 747.1 | 875.8 | |||||
Total Noncurrent Liabilities | 1,083.4 | 1,024.3 | |||||
Total Liabilities | 1,830.5 | 1,900.1 | |||||
Commitments and contingencies (Note 8) | |||||||
Stockholders’ Equity | |||||||
Common stock | 8 | 8 | |||||
Other capital | 507.2 | 578.1 | $ 20.9 | $ 20.9 | $ 20.9 | ||
Treasury stock at cost | (63) | (64.4) | |||||
Retained earnings | 176.6 | 102.6 | $ 7.8 | $ 8 | $ 7.9 | ||
Accumulated other comprehensive loss, net of income taxes | (87.5) | (101) | |||||
Total Stockholders’ Equity | 541.3 | 523.3 | $ 220.4 | $ 563.8 | |||
Total Liabilities and Stockholders’ Equity | $ 2,371.8 | 2,423.4 | |||||
Previously Reported | |||||||
Current Assets | |||||||
Cash and cash equivalents | 700.4 | ||||||
Restricted cash | 3 | ||||||
Marketable securities | 10.6 | ||||||
Accounts receivable | 60.6 | ||||||
Contract assets | 354.2 | ||||||
Other current assets | 107.8 | ||||||
Total Current Assets | 1,236.6 | ||||||
Noncurrent Assets | |||||||
Right-of-use assets | 52.6 | ||||||
Property, plant and equipment, net | 421.1 | ||||||
Recoverable environmental remediation costs | 226.2 | ||||||
Deferred income taxes | 57.5 | ||||||
Goodwill | 161.4 | ||||||
Intangible assets | 34.9 | ||||||
Other noncurrent assets | 243.3 | ||||||
Total Noncurrent Assets | 1,197 | ||||||
Total Assets | 2,433.6 | ||||||
Current Liabilities | |||||||
Total Current Liabilities | 875.8 | ||||||
Total Noncurrent Liabilities | 1,024.3 | ||||||
Total Liabilities | 1,900.1 | ||||||
Stockholders’ Equity | |||||||
Common stock | 8 | ||||||
Other capital | 599 | ||||||
Treasury stock at cost | (64.4) | ||||||
Retained earnings | 91.9 | ||||||
Accumulated other comprehensive loss, net of income taxes | (101) | ||||||
Total Stockholders’ Equity | 533.5 | 233.5 | |||||
Total Liabilities and Stockholders’ Equity | 2,433.6 | ||||||
Effect of Revision | |||||||
Current Assets | |||||||
Cash and cash equivalents | 0 | ||||||
Restricted cash | 0 | ||||||
Marketable securities | 0 | ||||||
Accounts receivable | 0 | ||||||
Contract assets | 0 | ||||||
Other current assets | (8.3) | ||||||
Total Current Assets | (8.3) | ||||||
Noncurrent Assets | |||||||
Right-of-use assets | 0 | ||||||
Property, plant and equipment, net | 0 | ||||||
Recoverable environmental remediation costs | 0 | ||||||
Deferred income taxes | (1.9) | ||||||
Goodwill | 0 | ||||||
Intangible assets | 0 | ||||||
Other noncurrent assets | 0 | ||||||
Total Noncurrent Assets | (1.9) | ||||||
Total Assets | (10.2) | ||||||
Current Liabilities | |||||||
Total Current Liabilities | 0 | ||||||
Total Noncurrent Liabilities | 0 | ||||||
Total Liabilities | 0 | ||||||
Stockholders’ Equity | |||||||
Common stock | 0 | ||||||
Other capital | (20.9) | ||||||
Treasury stock at cost | 0 | ||||||
Retained earnings | 10.7 | ||||||
Accumulated other comprehensive loss, net of income taxes | 0 | ||||||
Total Stockholders’ Equity | (10.2) | $ (13.1) | |||||
Total Liabilities and Stockholders’ Equity | $ (10.2) |
Revision of Previously Issued_7
Revision of Previously Issued Financial Statements - Condensed Consolidated Statements of Stockholders’ Equity (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | $ 541.3 | $ 523.3 | $ 220.4 | $ 563.8 |
Common Stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 8 | 8 | 7.7 | 7.7 |
Other Capital | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 507.2 | 578.1 | 562.1 | 552.4 |
Treasury stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | (63) | (64.4) | (64.4) | (12.7) |
Retained earnings | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 176.6 | 102.6 | (57.4) | 252.9 |
Accumulated Other Comprehensive Loss | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | $ (87.5) | (101) | (227.6) | $ (236.5) |
Previously Reported | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 533.5 | 233.5 | ||
Previously Reported | Common Stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 8 | 7.7 | ||
Previously Reported | Other Capital | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 599 | 583 | ||
Previously Reported | Treasury stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | (64.4) | (64.4) | ||
Previously Reported | Retained earnings | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 91.9 | (65.2) | ||
Previously Reported | Accumulated Other Comprehensive Loss | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | (101) | (227.6) | ||
Effect of Revision | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | (10.2) | (13.1) | ||
Effect of Revision | Common Stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 0 | 0 | ||
Effect of Revision | Other Capital | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | (20.9) | (20.9) | ||
Effect of Revision | Treasury stock | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 0 | 0 | ||
Effect of Revision | Retained earnings | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | 10.7 | 7.8 | ||
Effect of Revision | Accumulated Other Comprehensive Loss | ||||
Reclassification [Line Items] | ||||
Total Stockholders’ Equity | $ 0 | $ 0 |
Revision of Previously Issued_8
Revision of Previously Issued Financial Statements - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income | $ 74 | $ 146.6 | $ 137.5 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 57.3 | 61.4 | 65.3 |
Amortization of debt discount and deferred financing costs | 1.5 | 5.9 | 9.9 |
Stock-based compensation | 26.6 | 20.7 | 31.4 |
Retirement benefits, net | (17.9) | 12.7 | 18.1 |
Loss on debt | 22.7 | 10.5 | 0 |
Other, net | 1.7 | (1.7) | (0.4) |
Changes in assets and liabilities: | |||
Accounts receivable, net | (66) | 15 | 36.9 |
Contract assets | (96.9) | (65.6) | (64.5) |
Other current assets, net | 29.9 | 11.2 | |
Recoverable environmental remediation costs | 4.7 | 1.5 | 7.1 |
Other noncurrent assets | 36.5 | 10 | 0.6 |
Accounts payable | 6.1 | 24.3 | (36.8) |
Contract liabilities | (31.8) | (40.7) | 144.9 |
Other current liabilities | 49.6 | 7.6 | (4.4) |
Deferred income taxes | (157.9) | (22) | 36.1 |
Reserves for environmental remediation costs | (5.9) | (4.2) | (8.6) |
Other noncurrent liabilities and other | 103.1 | (12.3) | (20.5) |
Net Cash Provided by Operating Activities | (48.7) | 199.6 | 363.8 |
Investing Activities | |||
Net Cash Used in Investing Activities | (42.4) | (39.2) | (61) |
Financing Activities | |||
Net Cash Used in Financing Activities | (287.1) | (609.5) | (85.9) |
Net Increase in Cash, Cash Equivalents and Restricted Cash | (378.2) | (449.1) | 216.9 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 703.4 | 1,152.5 | 935.6 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 325.2 | 703.4 | 1,152.5 |
Previously Reported | |||
Operating Activities | |||
Net income | 143.7 | 137.7 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 61.4 | 65.3 | |
Amortization of debt discount and deferred financing costs | 5.9 | 9.9 | |
Stock-based compensation | 20.7 | 31.4 | |
Retirement benefits, net | 12.7 | 18.1 | |
Loss on debt | 10.5 | ||
Other, net | (1.7) | (0.4) | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 15 | 36.9 | |
Contract assets | (65.6) | (64.5) | |
Other current assets, net | 28.8 | 9.2 | |
Recoverable environmental remediation costs | 1.5 | 7.1 | |
Other noncurrent assets | 10 | 0.6 | |
Accounts payable | 24.3 | (36.8) | |
Contract liabilities | (40.7) | 144.9 | |
Other current liabilities | 7.6 | (4.4) | |
Deferred income taxes | (18) | 37.9 | |
Reserves for environmental remediation costs | (4.2) | (8.6) | |
Other noncurrent liabilities and other | (12.3) | (20.5) | |
Net Cash Provided by Operating Activities | 199.6 | 363.8 | |
Investing Activities | |||
Net Cash Used in Investing Activities | (39.2) | (61) | |
Financing Activities | |||
Net Cash Used in Financing Activities | (609.5) | (85.9) | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | (449.1) | 216.9 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | 703.4 | 1,152.5 | 935.6 |
Cash, Cash Equivalents and Restricted Cash at End of Year | 703.4 | 1,152.5 | |
Effect of Revision | |||
Operating Activities | |||
Net income | 2.9 | (0.2) | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 0 | 0 | |
Amortization of debt discount and deferred financing costs | 0 | 0 | |
Stock-based compensation | 0 | 0 | |
Retirement benefits, net | 0 | 0 | |
Loss on debt | 0 | ||
Other, net | 0 | 0 | |
Changes in assets and liabilities: | |||
Accounts receivable, net | 0 | 0 | |
Contract assets | 0 | 0 | |
Other current assets, net | 1.1 | 2 | |
Recoverable environmental remediation costs | 0 | ||
Other noncurrent assets | 0 | 0 | |
Accounts payable | 0 | 0 | |
Contract liabilities | 0 | 0 | |
Other current liabilities | 0 | 0 | |
Deferred income taxes | (4) | (1.8) | |
Reserves for environmental remediation costs | 0 | 0 | |
Other noncurrent liabilities and other | |||
Net Cash Provided by Operating Activities | 0 | 0 | |
Investing Activities | |||
Net Cash Used in Investing Activities | 0 | 0 | |
Financing Activities | |||
Net Cash Used in Financing Activities | 0 | 0 | |
Net Increase in Cash, Cash Equivalents and Restricted Cash | 0 | 0 | |
Cash, Cash Equivalents and Restricted Cash at Beginning of Year | $ 0 | 0 | 0 |
Cash, Cash Equivalents and Restricted Cash at End of Year | $ 0 | $ 0 |