Document and Entity Information
Document and Entity Information Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-35419 | ||
Entity Registrant Name | KAMAN CORPORATION | ||
Entity Incorporation, State or Country Code | CT | ||
Entity Tax Identification Number | 06-0613548 | ||
Entity Address, Address Line One | 1332 Blue Hills Avenue, | ||
Entity Address, City or Town | Bloomfield, | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06002 | ||
City Area Code | (860) | ||
Local Phone Number | 743-7100 | ||
Title of 12(b) Security | Common Stock ($1 par value) | ||
Trading Symbol | KAMN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,743,603,171 | ||
Entity Common Stock, Shares Outstanding | 27,814,888 | ||
Entity Central Index Key | 0000054381 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 471,540 | $ 25,895 |
Accounts receivable, net | 156,492 | 149,338 |
Contract with Customer, Asset, Net, Current | 121,614 | 99,261 |
Capitalized Contract Cost, Net, Current | 6,052 | 5,993 |
Inventories | 156,353 | 131,569 |
Income tax refunds receivable | 8,069 | 1,752 |
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 351,261 |
Other current assets | 16,368 | 8,036 |
Total current assets | 936,488 | 773,105 |
Property, plant and equipment, net of accumulated depreciation of $210,549 and $192,285, respectively | 140,450 | 137,112 |
Operating Lease, Right-of-Use Asset | 15,159 | 0 |
Goodwill | 195,314 | 196,161 |
Other intangible assets, net | 53,439 | 58,567 |
Deferred Tax Assets, Net | 35,240 | 38,000 |
Deferred Tax Assets, Net of Valuation Allowance | 28,246 | 30,894 |
Deferred income taxes | 38,040 | |
Capitalized Contract Cost, Net, Noncurrent | 6,099 | 10,666 |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 0 | 229,238 |
Other assets | 36,754 | 31,173 |
Total assets | 1,418,943 | 1,474,062 |
Current liabilities: | ||
Current portion of long-term debt, net of debt issuance costs | 0 | 9,375 |
Accounts payable – trade | 70,884 | 56,826 |
Accrued salaries and wages | 43,220 | 32,795 |
Contract with Customer, Liability, Current | 42,942 | 28,865 |
Operating Lease, Liability, Current | 4,306 | 0 |
Income taxes payable | 4,722 | 139 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 131,047 |
Other current liabilities | 37,918 | 39,429 |
Total current liabilities | 203,992 | 298,476 |
Long-term debt, excluding current portion, net of debt issuance costs | 181,622 | 284,256 |
Deferred income taxes | 6,994 | 7,146 |
Underfunded pension | 97,246 | 104,988 |
Contract with Customer, Liability, Noncurrent | 37,855 | 78,562 |
Operating Lease, Liability, Noncurrent | 11,617 | 0 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 0 | 15,602 |
Other long-term liabilities | 56,415 | 51,875 |
Commitments and contingencies (Note 19) | ||
Shareholders’ equity: | ||
Preferred stock, $1 par value, 200,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $1 par value, 50,000,000 shares authorized; voting; 30,058,455 and 29,544,714 shares issued, respectively | 30,058 | 29,545 |
Additional paid-in capital | 228,153 | 200,474 |
Retained earnings | 820,666 | 610,103 |
Accumulated other comprehensive income (loss) | (150,893) | (134,898) |
Less 2,219,332 and 1,672,917 shares of common stock, respectively, held in treasury, at cost | (104,782) | (72,067) |
Total shareholders’ equity | 823,202 | 633,157 |
Total liabilities and shareholders’ equity | $ 1,418,943 | $ 1,474,062 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 210,549 | $ 192,285 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,058,455 | 29,544,714 |
Shares of common stock held in treasury at cost (in shares) | 2,219,332 | 1,672,917 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 761,608 | $ 735,994 | $ 724,944 |
Cost of Goods and Services Sold | 520,803 | 508,677 | 490,915 |
Gross profit | 240,805 | 227,317 | 234,029 |
Selling, general and administrative expenses | 177,187 | 172,271 | 169,683 |
Impairment of Intangible Assets, Finite-lived | 0 | 10,039 | 0 |
Costs of Transition Services Agreement | 4,673 | 0 | 0 |
Restructuring costs (Note 5) | 1,558 | 7,353 | 2,661 |
Gain (Loss) on Disposition of Business | 3,739 | 5,722 | 0 |
Net loss (gain) on sale of assets | 237 | (1,031) | (31) |
Operating income | 53,411 | 32,963 | 61,716 |
Interest expense, net | 17,202 | 20,046 | 20,578 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (396) | (12,127) | (3,056) |
Income from transition services agreement | 3,673 | 0 | 0 |
Other income, net | (309) | (92) | (728) |
Earnings from continuing operations before income taxes | 40,587 | 25,136 | 44,922 |
Income tax (benefit) expense | (15,859) | 9,259 | 25,214 |
Net earnings | 56,446 | 15,877 | 19,708 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 29,027 | 38,292 | 30,118 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 124,356 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 153,383 | 38,292 | 30,118 |
Net earnings | $ 209,829 | $ 54,169 | $ 49,826 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 2.02 | $ 0.57 | $ 0.71 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 5.49 | 1.37 | 1.09 |
Earnings per share: | |||
Earnings Per Share, Basic (in dollars per share) | 7.51 | 1.94 | 1.80 |
Income (Loss) from Continuing Operations, Per Diluted Share | 2.01 | 0.56 | 0.69 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | 5.46 | 1.36 | 1.06 |
Diluted earnings per share (in dollars per share) | $ 7.47 | $ 1.92 | $ 1.75 |
Weighted average shares outstanding: | |||
Basic (in shares) | 27,936 | 27,945 | 27,611 |
Diluted (in shares) | 28,092 | 28,223 | 28,418 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 209,829 | $ 54,169 | $ 49,826 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments and other | (1,772) | (7,525) | 27,891 |
Pension plan adjustments, net of tax expense (benefit) of $2,619, ($3,701), and $7,661, respectively | 8,871 | (11,559) | 12,688 |
Other comprehensive income (loss) | 7,099 | (19,084) | 40,579 |
Total comprehensive income | $ 216,928 | $ 35,085 | $ 90,405 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Pension plan adjustments, net of tax expense (benefit) | $ 2,619 | $ (3,701) | $ 7,661 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance (in shares) at Dec. 31, 2016 | 28,162,497 | |||||
Beginning Balance at Dec. 31, 2016 | $ 565,787,000 | $ 28,162,000 | $ 171,162,000 | $ 560,200,000 | $ (156,393,000) | $ (37,344,000) |
Beginning Balance (in shares) at Dec. 31, 2016 | 1,054,364 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 49,826,000 | 0 | 0 | 49,826,000 | 0 | $ 0 |
Other comprehensive income | 40,579,000 | 0 | 40,579,000 | 0 | ||
Dividends (per share of common stock, $0.80) | (22,149,000) | 0 | 0 | (22,149,000) | 0 | 0 |
Changes due to convertible notes transactions | 1,797,000 | $ 0 | 1,797,000 | 0 | 0 | 0 |
Changes due to convertible notes transactions (in shares) | 624,044 | |||||
Changes due to convertible notes transactions | $ 624,000 | $ 0 | $ 0 | $ 0 | ||
Adjustments to Equity, Equity Component of Convertible Debt | (1,958,000) | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | $ (2,582,000) | |||||
Purchase of treasury shares (in shares) | 0 | 0 | 0 | 0 | 218,235 | |
Purchase of treasury shares | (11,552,000) | $ 0 | $ (11,552,000) | |||
Employee stock plans (in shares) | 265,886 | |||||
Employee stock plans | 7,370,000 | $ 266,000 | $ 9,074,000 | $ 0 | $ 0 | |
Employee stock plans (in shares) | 39,647 | |||||
Employee stock plans | $ (1,970,000) | |||||
Share-based compensation expense (in shares) | 89,040 | |||||
Share-based compensation expense | 5,956,000 | $ 89,000 | 5,881,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 13,729 | |||||
Share-based compensation expense | $ (14,000) | |||||
Ending Balance (in shares) at Dec. 31, 2017 | 29,141,467 | |||||
Ending Balance at Dec. 31, 2017 | 635,656,000 | $ 29,141,000 | 185,332,000 | 587,877,000 | (115,814,000) | $ (50,880,000) |
Ending Balance (in shares) at Dec. 31, 2017 | 1,325,975 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | 54,169,000 | 0 | 0 | 54,169,000 | 0 | $ 0 |
Cumulative Effect on Retained Earnings, Net of Tax | (9,584,000) | 0 | 0 | (9,584,000) | 0 | 0 |
Other comprehensive income | (19,084,000) | 0 | 0 | 0 | (19,084,000) | 0 |
Dividends (per share of common stock, $0.80) | (22,359,000) | $ 0 | 0 | (22,359,000) | 0 | $ 0 |
Changes due to convertible notes transactions (in shares) | 114,778 | 0 | ||||
Changes due to convertible notes transactions | $ 115,000 | 0 | 0 | $ 0 | ||
Adjustments to Equity, Equity Component of Convertible Debt | (8,000) | |||||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | (123,000) | |||||
Purchase of treasury shares (in shares) | 0 | 313,330 | ||||
Purchase of treasury shares | (19,489,000) | $ 0 | 0 | 0 | 0 | $ (19,489,000) |
Employee stock plans (in shares) | 226,722 | |||||
Employee stock plans | 7,351,000 | $ 227,000 | 8,813,000 | 0 | 0 | |
Employee stock plans (in shares) | (25,069) | |||||
Employee stock plans | $ (1,689,000) | |||||
Share-based compensation expense (in shares) | 61,747 | |||||
Share-based compensation expense | 6,505,000 | $ 62,000 | 6,452,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 8,543 | |||||
Share-based compensation expense | $ (9,000) | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 29,544,714 | |||||
Ending Balance at Dec. 31, 2018 | $ 633,157,000 | $ 29,545,000 | 200,474,000 | 610,103,000 | (134,898,000) | $ (72,067,000) |
Ending Balance (in shares) at Dec. 31, 2018 | 1,672,917 | 1,672,917 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings | $ 209,829,000 | 0 | 0 | 0 | $ 0 | |
Other comprehensive income | 7,099,000 | 0 | 0 | 0 | 7,099,000 | 0 |
Cumulative Effect on Retained Earnings, Tax | 0 | 0 | 0 | 23,094,000 | (23,094,000) | 0 |
Dividends (per share of common stock, $0.80) | (22,360,000) | $ 0 | 0 | (22,360,000) | 0 | $ 0 |
Changes due to convertible notes transactions (in shares) | 0 | 0 | ||||
Changes due to convertible notes transactions | $ 0 | 0 | 0 | $ 0 | ||
Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature | (18,000) | (18,000) | ||||
Purchase of treasury shares (in shares) | 0 | 522,622 | ||||
Purchase of treasury shares | (31,785,000) | $ 0 | 0 | 0 | 0 | $ (31,785,000) |
Employee stock plans (in shares) | 449,937 | |||||
Employee stock plans | 19,676,000 | $ 449,000 | 20,151,000 | 0 | 0 | |
Employee stock plans (in shares) | 17,609 | |||||
Employee stock plans | $ (924,000) | |||||
Share-based compensation expense (in shares) | 63,804 | |||||
Share-based compensation expense | 7,604,000 | $ 64,000 | 7,546,000 | 0 | 0 | |
Share-based compensation expense (in shares) | 6,184 | |||||
Share-based compensation expense | $ (6,000) | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 30,058,455 | |||||
Ending Balance at Dec. 31, 2019 | $ 823,202,000 | $ 30,058,000 | $ 228,153,000 | $ 820,666,000 | $ (150,893,000) | $ (104,782,000) |
Ending Balance (in shares) at Dec. 31, 2019 | 2,219,332 | 2,219,332 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends Declared [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.80 | $ 0.80 | $ 0.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Cash, Including Discontinued Operations | $ 27,711 | $ 36,904 | |
Net earnings | $ 209,829 | 54,169 | 49,826 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 153,383 | 38,292 | 30,118 |
Cash flows from operating activities: | |||
Net earnings | 56,446 | 15,877 | 19,708 |
Adjustments to reconcile earnings from continuing operations, net of tax to net cash provided by operating activities: | |||
Depreciation and amortization | 25,854 | 27,875 | 27,388 |
Amortization of debt issuance costs | 1,996 | 1,806 | 2,014 |
Accretion of convertible notes discount | 2,760 | 2,596 | 3,410 |
Provision for doubtful accounts | 788 | 767 | 746 |
Gain (Loss) on Disposition of Business, Non Cash | 3,971 | 5,722 | 0 |
Net loss (gain) on sale of assets | 237 | (1,031) | (31) |
Impairment of Intangible Assets, Finite-lived | 0 | 10,039 | 0 |
Loss on debt extinguishment | 0 | 0 | 137 |
Net loss (gain) on derivative instruments | 302 | 829 | (1,126) |
Stock compensation expense | 4,669 | 5,484 | 4,902 |
Noncash Consideration on Sale of Aircraft | (3,100) | 0 | 0 |
Deferred income taxes | 182 | 7,834 | 27,718 |
Changes in assets and liabilities, excluding effects of acquisitions/divestitures: | |||
Accounts receivable | (8,173) | (6,020) | (69,431) |
Increase (Decrease) in Contract with Customer, Asset | (21,994) | (24,294) | 0 |
increase (Decrease) in Capitalized Contract Cost | 4,506 | (5,834) | 0 |
Inventories | (25,129) | 7,135 | 22,363 |
Income tax refunds receivable | (6,296) | 1,136 | 3,180 |
Increase (Decrease) in Operating Right of Use Assets | 3,390 | 0 | 0 |
Other assets | (6,108) | (2,944) | 3,458 |
Accounts payable - trade | 14,034 | 10,807 | 7,432 |
Increase (Decrease) in Contract with Customer, Liability | (26,638) | 96,430 | 0 |
Advances on contracts | 0 | 0 | (4,829) |
Increase (Decrease) in Operating Lease Liabilities | (3,423) | 0 | 0 |
Other current liabilities | 6,085 | (374) | 2,967 |
Income taxes payable | 7,888 | (2,393) | 212 |
Pension liabilities | 4,170 | (38,179) | (11,318) |
Other long-term liabilities | 6,071 | 5,446 | (628) |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 42,488 | 118,714 | 38,272 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (50,288) | 43,654 | 41,613 |
Net cash provided by operating activities from continuing operations | (7,800) | 162,368 | 79,885 |
Cash flows from investing activities: | |||
Proceeds from sale of assets | 196 | 2,138 | 191 |
Proceeds from Divestiture of Businesses | 655,030 | 0 | 0 |
Expenditures for property, plant & equipment | (22,447) | (21,504) | (18,010) |
Acquisition of businesses including earn out adjustments, net of cash acquired | 0 | 0 | (1,365) |
Other, net | (4,463) | (3,172) | (3,656) |
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 628,316 | (22,538) | (22,840) |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (9,838) | (7,423) | (8,995) |
Net cash provided by (used in) investing activities of continuing operations | 618,478 | (29,961) | (31,835) |
Cash flows from financing activities: | |||
Net repayments under revolving credit agreements | (38,500) | (98,087) | (75,988) |
Debt repayment | (76,875) | (7,500) | (6,875) |
Proceeds from issuance of 2024 convertible notes | 0 | 0 | 200,000 |
Repayment of convertible notes | (500) | 0 | (175,151) |
Purchase of capped call - 2024 convertible notes | 0 | 0 | (20,500) |
Proceeds from bond hedge settlement - 2017 convertible notes | 0 | 0 | 58,564 |
Net change in bank overdraft | 886 | (279) | (37) |
Proceeds from exercise of employee stock awards | 19,676 | 7,351 | 7,370 |
Purchase of treasury shares | (30,060) | (19,278) | (11,552) |
Dividends paid | (22,343) | (22,349) | (21,462) |
Debt and equity issuance costs | (3,584) | 0 | (7,473) |
Other | (1,413) | (1,003) | (523) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | (152,713) | (141,145) | (53,627) |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 7,967 | (217) | (1,109) |
Net cash used in financing activities of continuing operations | (144,746) | (141,362) | (54,736) |
Net increase (decrease) in cash and cash equivalents | 465,932 | (8,955) | (6,686) |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | (21,834) | (1,816) | (1,667) |
Effect of exchange rate changes on cash and cash equivalents | (269) | (238) | 2,385 |
Cash and cash equivalents at beginning of period | 25,895 | 35,237 | |
Cash and cash equivalents at end of period | $ 471,540 | $ 25,895 | $ 35,237 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Kaman Corporation, headquartered in Bloomfield, Connecticut, was incorporated in 1945 and is a diversified company that conducts business in the aerospace, medical and industrial markets. Kaman Corporation reports information for itself and its subsidiaries (collectively, the "Company") in one business segment, Aerospace. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. During the third quarter of 2019, the Company completed the sale of its Distribution business for total cash consideration of $700.0 million , excluding certain working capital adjustments and transaction costs. The Distribution business' results of operations and the related cash flows have been reclassified to earnings from discontinued operations in the Consolidated Statements of Operations and cash flows from discontinued operations in the Consolidated Statements of Cash Flows, respectively, for all periods presented. The assets and liabilities of the Distribution business have been reclassified to assets held for sale and liabilities held for sale, respectively, in the Consolidated Balance Sheets as of December 31, 2018. See Note 3, Discontinued Operations , to the Consolidated Financial Statements for further information. Prior to the sale of the Distribution business, the Company was composed of two operating segments. As a result of this transaction, the Company is now composed of one operating segment. As the Company has not made any fundamental changes to its management or organization structure, this segment is now reflective of how the Company's Chief Executive Officer, who is its Chief Operating Decision Maker ("CODM"), reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments. Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment, goodwill and other intangible assets; valuation allowances for receivables, inventories and income taxes; valuation of share-based compensation; assets and obligations related to employee benefits; and accounting for long-term contracts including claims. Actual results could differ from those estimates. Foreign Currency Translation The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated at end of period rates. The gains and losses associated with these translation adjustments are included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable and notes payable, approximate fair value due to the short-term maturity of these instruments. At December 31, 2019 , one individual customer accounted for more than 10% of consolidated accounts receivable. At December 31, 2018 , two individual customers accounted for more than 10% of consolidated accounts receivable. In the year ended December 31, 2019 , three individual customers, the U.S. Government, The Boeing Company and a JPF DCS customer, accounted for more than 10% of consolidated net sales. In the year ended December 31, 2018 , two individual customers, the U.S. Government and The Boeing Company, accounted for more than 10% of consolidated net sales. Foreign sales were approximately 44.4% , 37.9% and 44.5% of the Company’s net sales in 2019 , 2018 and 2017 , respectively, and are concentrated in the United Kingdom, Germany, Canada, France, Switzerland, New Zealand, the Middle East and Asia. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Additional Cash Flow Information Non-cash investing activities in 2019 include an accrual of $0.8 million for purchases of property and equipment (including finance lease obligations), $4.0 million in working capital adjustments associated with the sale of the Distribution business and the write-off of the $4.0 million note receivable associated with the sale of the U.K. Tooling business as it was deemed not likely to be collected. Additionally, in 2019 , the Company repurchased a K-MAX® aircraft from a customer who was simultaneously purchasing a new aircraft to support the development of the Company's unmanned aircraft system. The repurchased aircraft was used to settle a portion ( $3.1 million ) of the purchase price on the customer's new K-MAX® aircraft. Non-cash financing activities in 2019 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $8.9 million , net of tax of $2.6 million . Additionally, non-cash financing activities in 2019 include $5.6 million of dividends declared but not yet paid and an accrual of $1.7 million for purchases of treasury shares. Non-cash investing activities in 2018 include an accrual of $2.9 million for purchases of property and equipment (including capital lease obligations) and a note receivable with a present value of $2.5 million for the amounts to be collected associated with the sale of the U.K. Tooling business. Non-cash financing activities in 2018 include 114,778 common shares issued for the unwind of warrant transactions associated with the 2017 Notes during the first half of 2018 that had a value of approximately $7.6 million . Other non-cash financing activities in 2018 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans and changes in the fair value of derivative financial instruments that qualified for hedge accounting. The total net adjustment was $11.6 million , net of tax of $3.7 million . Additionally, non-cash financing activities in 2018 include $5.6 million of dividends declared but not yet paid. Non-cash investing activities in 2017 include an accrual of $3.6 million for purchases of property and equipment (including capital lease obligations). Non-cash financing activities in 2017 include 624,044 common shares issued for the partial unwind of warrant transactions during the second quarter of 2017 that had a value of approximately $30.3 million , the receipt of of 136,369 shares with an approximate value of $7.5 million to unwind the remaining bond hedge transactions during the fourth quarter of 2017 and the issuance to bond holders of 136,347 shares with an approximate value of $7.5 million upon conversion of the remaining 2017 Notes. Other non-cash financing activities in 2017 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans and changes in the fair value of derivative financial instruments that qualified for hedge accounting. The total net adjustment was $12.7 million , net of tax of $7.7 million . Additionally, non-cash financing activities in 2017 include $5.6 million of dividends declared but not yet paid. The Company describes its pension obligations in more detail in Note 17, Pension Plans . The Company describes the convertible notes transactions in more detail in Note 14, Debt. Revenue Recognition Under Accounting Standard Codification ("ASC") 606, the amount of revenue recognized for any goods or services reflects the consideration that the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as a performance obligation is satisfied. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued A contract is accounted for when there has been approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance obligations under a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. In certain instances, the Company has concluded distinct goods or services should be accounted for as a single performance obligation when they are a series of distinct goods or services that have the same pattern of transfer to the customer. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer (the goods or services are distinct) and if the promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract (the goods or services are distinct in the context of the contract). If these criteria are not met, the promised services are accounted for as a single performance obligation. The transaction price is determined based on the consideration that the Company will be entitled to in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price, generally utilizing the most likely amount method. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. Standalone selling price is determined by the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Performance obligations are satisfied either over time or at a point in time as discussed in further detail below. In addition, the Company's contracts with customers generally do not include significant financing components or non-cash consideration. In certain instances, the Company has accounted for contracts using the portfolio approach, a practical expedient permissible under the standard. The determination of when the use of the portfolio approach is appropriate requires judgment from management based on consideration of all the facts and circumstances. The Company uses the portfolio approach when the effect of accounting for a group of contracts or a group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. The Company primarily uses the portfolio approach for its commercial and defense bearings and structures businesses. The Company's primary criteria considered when using the portfolio approach is the commonality of economic factors, which generally follow the product type based on consistent production costs and standard pricing for the products. The majority of long-term contracts were historically accounted for under the percentage-of-completion method using units-of-delivery as a measurement basis. Many of these contracts moved to an over time revenue model under ASC 606. For example, revenue for the Company's Joint Programmable Fuze ("JPF") program with the U.S. Government ("USG") moved from percentage-of-completion using units-of-delivery as the measurement basis to the over time revenue recognition model using input costs as the basis for recognizing progress to completion. Conversely, revenue for the K-MAX® program moved from cost-to-cost revenue recognition under percentage-of-completion accounting to the point-in-time method, with revenue on these aircraft being recognized upon acceptance by the end customer. For certain programs, early-contract unit costs in excess of the average expected cost over the life of the contract and contractually recoverable general and administrative costs were previously capitalized and amortized over the period of performance of the contract. With the adoption of ASC 606, $32.5 million of previously capitalized deferred costs in excess of the contract average and previously contractually recoverable general and administrative costs were adjusted within the cumulative effect to retained earnings and have not been amortized into earnings after January 1, 2018. To determine the appropriate revenue recognition model for long-term contracts, the Company evaluates whether a contract exists, considering whether multiple contracts should be combined as one single contract and then whether the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, as these decisions could change the amount of revenue and profit recorded in a given period. For certain programs, the Company may promise to provide distinct goods or services within a contract, in which case these are separated into more than one performance obligation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued For certain programs, the Company recognizes revenue over time because of continuous transfer of control to the customer. For USG contracts, this continuous transfer of control to the customer is supported by clauses in the contract that provide lien rights to the customer over the work in progress, thereby control transfers as costs are incurred. For non-USG contracts, the customer typically controls the work in progress because the Company is producing products that do not have an alternative use to the Company and where contractual termination clauses provide the Company rights to payment for work performed to date plus a reasonable profit. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of assets to the customer which occurs as cost is incurred under the contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Total estimated contract costs generally include labor, materials and subcontractors’ costs, other direct costs and related overhead costs. These estimates also include the estimated cost of satisfying offset obligations, as required under certain contracts. The complexity of certain programs as well as technical risks and uncertainty as to the future availability of materials and labor resources could affect the Company’s ability to accurately estimate future contract costs. For contracts that recognize revenue over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g. the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized a reduction in revenue of $4.6 million in the year ended December 31, 2019 . This decrease was primarily related to cost growth on the SH-2G program with Peru, a certain legacy fuzing contract and certain structures contracts, partially offset by favorable cost performance on the JPF contract with the USG. The amount of revenue recognized in the year ended December 31, 2018 from performance obligations satisfied (or partially satisfied) in previous periods was $6.7 million . This amount was primarily related to changes in the estimates of the stages of completion of certain contracts, more specifically the JPF contract with the USG and the AH-1Z contract. For the year ended December 31, 2017 , the net increase in our operating income from changes in contract estimates totaled $5.7 million . The increase in 2017 was primarily a result of improved performance on the AH-1Z program, the JPF program with the USG and the SH-2G program with Peru. These improvements were partially offset by cost growth on the K-MAX® and A-10 programs. Due to the nature of the work required to be performed on many of the Company's performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. From time-to-time the Company enters into long-term contracts with the USG and other customers that contain award fees, incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Estimated amounts are included in the transaction price 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. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information (historical, current and forecasted) that is reasonably available. The Company does not include financing components as variable consideration if less than one year. At December 31, 2019 , the Company did not have any significant financing components. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or makes changes to the existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation that is a series of substantially the same distinct goods or services. If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modification is treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts. The Company applied the practical expedient for any contracts that were modified prior to January 1, 2018; therefore, the contracts were not restated retrospectively for those modifications. For other contracts, excluding the long-term contracts discussed above, the method of revenue recognition remained substantially the same under ASC 606. For these contracts, revenue is primarily recognized at the point in time when the title transfers to the customer, as this is when the performance obligation is controlled by the customer. Additionally, a small percentage of revenue related to certain contracts for repairs and overhauls is accounted for over time under ASC 606. Under these contracts, revenue is generally recognized as work is performed in proportion to the actual costs incurred as compared to total estimated contract costs. Cost of Sales and Selling, General and Administrative Expenses Cost of sales includes costs of products and services sold (i.e., purchased product, raw material, direct labor, engineering labor, outbound freight charges, depreciation and amortization, indirect costs and overhead charges). Selling expenses primarily consist of advertising, promotion, bid and proposal, employee payroll and corresponding benefits and commissions paid to sales and marketing personnel. General and administrative expenses primarily consist of employee payroll including executive, administrative and financial personnel and corresponding benefits, incentive compensation, independent research and development, consulting expenses, warehousing costs, depreciation and amortization. Legal costs are expensed as incurred and are generally included in general and administrative expenses. The Company previously included general and administrative expenses as an element of program cost and inventory for certain government contracts prior to the adoption of ASC 606. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments. These investments are liquid in nature and have original maturities of three months or less. The Company's cash and cash equivalents at December 31, 2019 included $443.2 million of Level 1 (quoted prices in active markets for identical assets or liabilities) money market funds. Bank overdraft positions, which occur when total outstanding issued checks exceed available cash balances at a single financial institution at the end of a reporting period, are reclassified to other current liabilities within the consolidated balance sheets. At December 31, 2019 and 2018 , the Company had bank overdrafts of $1.6 million and $0.7 million , respectively, included in other current liabilities. Accounts Receivable The Company has three types of accounts receivable: (a) Trade receivables, which consist of amounts billed and currently due from customers; (b) USG contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed; and (c) Commercial and other government contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed. The Company's receivables, net, consist of amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts reflects management’s best estimate of probable losses inherent in the trade accounts receivable and billed contracts balance. Management determines the allowance based on known troubled accounts, historical experience and other currently available evidence. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Contract Assets The Company's contract assets include unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is applied and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts do not exceed their net realizable value. Contract assets are generally classified as current as such amounts are billable and collectible within twelve months. Contract Costs Contract costs consist of costs to obtain and fulfill a contract. Costs to fulfill a contract primarily consist of nonrecurring engineering costs incurred at the start of a new program for which such costs are expected to be recovered under existing and future contracts. Such costs are amortized over the estimated revenue amount of the contract. Costs to obtain a contract consist of commissions and agent fees paid in connection with the award of a contract. If these costs are determined to have an amortization period of less than one year, the Company applies the practical expedient and the related costs are expensed as incurred. If the amortization period is determined to be greater than a year and the incremental costs to obtaining the contract qualify as an asset, then the contract costs are recorded and amortized over the estimated contract revenue. Inventories The Company has the following types of inventory: (a) raw materials, (b) contracts in process and other work in process, and (c) finished goods. Raw material includes certain general stock materials but primarily relates to purchases that were made in anticipation of specific programs for which production has not been started as of the balance sheet date. Raw materials are stated at the lower of the cost of the inventory or its fair market value. Contracts in process and other work in process and finished goods are valued at production cost represented by raw material, labor and overhead. Contracts in process and other work in process and finished goods are not reported at amounts in excess of net realizable values. Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives for buildings generally range from 15 to 40 years and for leasehold improvements range from 1 to 20 years, whereas machinery, office furniture and equipment generally have useful lives ranging from 3 to 15 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated and any gain or loss is credited to or charged against income. Long-lived assets, such as property, plant and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Maintenance and repair items are charged against income as incurred, whereas renewals and betterments are capitalized and depreciated. Leasing On January 1, 2019, the Company adopted ASC 842, Leases. Under ASC 842, the Company determines if a contract contains a lease at the inception date of the contract. To determine if the contract contains a lease, the Company evaluates if there is an identified asset in the contract and if the Company has control over the use of the identified asset. There is an identified asset in the contract if the asset is explicitly or implicitly specified in the contract, the asset is physically distinct or the Company has the right to receive substantially all of the asset's capacity, and if the supplier does not have substantive substitution rights. The Company has control over the use of the identified asset if the Company obtains substantially all economic benefits from the use of the asset and can direct the use of the asset. The Company applied the practical expedient for any contracts that existed prior to January 1, 2019; therefore, the contracts were not reassessed to determine if they contain leases. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leasing - continued The Company must classify each lease as a finance lease or operating lease. A lease is classified as a finance lease if the Company will own the asset by the end of the lease term, the Company is reasonably certain to exercise the purchase option, the lease term covers a major part of the asset's economic life, the sum of the present value of the lease payments and the present value of the residual value guarantee not included in the lease payments equal or exceed substantially all of the fair value of the underlying asset at lease commencement or if the lessor has no alternative use for the asset. If any of these criteria are not met, the lease is classified as an operating lease. The Company applied the practical expedient for any leases that existed prior to January 1, 2019; therefore, the lease classifications of existing leases were not reassessed (all existing leases classified as operating leases under ASC 840 were classified as operating leases under ASC 842 on January 1, 2019 and all existing leases classified as capital leases under ASC 840 were classified as finance leases under ASC 842 on January 1, 2019). The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings at varying dates from January 2020 to December 2024. The terms of most of these leases are in the range of 3 to 8 years, with certain leases renewable for varying periods and certain leases including options to terminate the leases. While some of the Company's leases include options allowing early termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial or business reason to do so. It is expected that in the normal course of business leases that expire will be renewed or replaced by leases on other similar property. Some of the Company's leases have fixed amount rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The terms for most machinery and equipment leases range from 3 to 5 years. The majority of the Company's finance leases consist of assets purchased under a master leasing agreement. The terms of these leases are 5 years. These assets a |
Accounting Changes (Notes)
Accounting Changes (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes [Abstract] | |
Accounting Changes [Text Block] | 2. ACCOUNTING CHANGES The Company's significant accounting policies are detailed in Note 1, Summary of Significant Accounting Policies . Revenue Recognition On January 1, 2018, the Company adopted ASC 606 using the modified retrospective method. As a result, the Company applied ASC 606 only to contracts that were not completed as of January 1, 2019. For the year ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 In thousands Net sales $ 735,994 $ (59,683 ) $ 676,311 Cost of sales 508,677 (42,036 ) 466,641 Gross profit 227,317 (17,647 ) 209,670 Selling, general and administrative expenses 172,271 (2,281 ) 169,990 Other intangibles asset impairment (Note 12) 10,039 — 10,039 Restructuring costs (Note 5) 7,353 — 7,353 Loss on sale of business (Note 5) 5,722 539 6,261 Net gain on sale of assets (1,031 ) — (1,031 ) Operating income 32,963 (15,905 ) 17,058 Interest expense, net 20,046 — 20,046 Non-service pension and post retirement benefit income (12,127 ) — (12,127 ) Other income, net (92 ) — (92 ) Earnings from continuing operations before income taxes 25,136 (15,905 ) 9,231 Income tax expense 9,259 (2,486 ) 6,773 Earnings from continuing operations, net of tax $ 15,877 $ (13,419 ) $ 2,458 2. ACCOUNTING CHANGES (CONTINUED) For the year ended December 31, 2018, the only adjustments to comprehensive income when comparing the balances with ASC 606 and the balances without ASC 606 included the adjustments to net earnings presented above. There was no impact to the Company's cash flows from operating activities. |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 3. DISCONTINUED OPERATIONS On August 26, 2019, the Company completed the sale of its Distribution business for total cash consideration of $700.0 million , excluding certain working capital adjustments. The sale of the Distribution business was a result of the Company's shift in strategy to be a highly focused, technologically differentiated aerospace and engineered products company. As a result of the sale, the Distribution segment met the criteria set forth in ASC 205-20, Presentation of Financial Statements - Discontinued Operations for discontinued operations. Upon closing, the Company entered into a transition services agreement ("TSA") with the buyer, pursuant to which the Company agreed to support the information technology, human resources and benefits, tax and treasury functions of the Distribution business for six to twelve months. The buyer has the option to extend the support period for up to an additional year for certain services. The Company incurred $4.7 million in costs associated with the TSA in 2019 , which was included in costs from transition services agreement on the Company's Consolidated Statement of Operations. The Company earned $3.7 million in income associated with the TSA in 2019 , which was included in income from transition services on the Company's Consolidated Statement of Operations. Cash outflows from the Company to its former Distribution business after the sale totaled $7.8 million in 2019 , which primarily related to Distribution employee and employee-related costs incurred prior to the sale. Cash inflows from the Company's former Distribution business to the Company after the sale totaled $3.6 million in 2019 , which primarily related to cash received for services performed under the TSA. The related assets and liabilities of the Company's former Distribution business were reclassified to assets held for sale and liabilities held for sale, respectively, as of December 31, 2018 on the Company's Consolidated Balance Sheets. The following table is a summary of the assets and liabilities held for sale: December 31, In thousands Assets Cash and cash equivalents $ 1,816 Accounts receivable, net 151,756 Contract assets 9,600 Inventories 163,343 Other current assets 24,746 Total assets held for sale, current portion 351,261 Property, plant and equipment, net of accumulated depreciation of $70,021 47,112 Goodwill 149,204 Other intangible assets, net 32,440 Deferred income taxes 146 Other assets 336 Total assets held for sale $ 580,499 Liabilities Accounts payable – trade $ 101,801 Accrued salaries and wages 13,839 Other current liabilities 15,407 Total liabilities held for sale, current portion 131,047 Deferred income taxes 13,630 Other long-term liabilities 1,972 Total liabilities held for sale $ 146,649 3. DISCONTINUED OPERATIONS (CONTINUED) The results of operations for the Company's former Distribution business were included in discontinued operations on the Company's Consolidated Statement of Operations. The following table provides information regarding the results of discontinued operations: For the Year Ended December 31, 2019 2018 2017 In thousands Net sales from discontinued operations $ 748,451 $ 1,139,431 $ 1,080,965 Cost of sales from discontinued operations 536,749 816,711 769,403 Gross profit from discontinued operations 211,702 322,720 311,562 Selling, general and administrative expenses from discontinued operations 177,475 272,633 262,384 Restructuring costs from discontinued operations — 655 — Net loss (gain) on sale of assets from discontinued operations 8 (669 ) (225 ) Operating income from discontinued operations 34,219 50,101 49,403 Interest expense, net from discontinued operations 25 51 3 Other income, net from discontinued operations (12 ) (51 ) (56 ) Earnings from discontinued operations before income taxes 34,206 50,101 49,456 Income tax expense 5,179 11,809 19,338 Earnings from discontinued operations before gain on disposal 29,027 38,292 30,118 Gain on disposal of discontinued operations, pretax 167,757 — — Income tax expense on gain on disposal 43,401 — — Gain on disposal of discontinued operations, net of tax 124,356 — — Earnings from discontinued operations, net of tax $ 153,383 $ 38,292 $ 30,118 3. DISCONTINUED OPERATIONS (CONTINUED) The following table provides information on the gain recorded on the sale of the Company's former Distribution business for 2019 . These amounts reflect the closing balance sheet of its Distribution business upon the closing of the sale on August 26, 2019. Net proceeds received from sale of Distribution (1) $ 659,009 Distribution assets Cash and cash equivalents $ 21,834 Accounts receivable, net 150,317 Contract assets 9,128 Inventories 163,995 Other current assets 20,289 Property plant and equipment, net of accumulated depreciation of $73,795 51,039 Operating right-of-use assets, net 68,049 Goodwill 149,204 Other intangible assets, net 28,361 Deferred income taxes 133 Other assets 195 Total Distribution assets $ 662,544 Distribution liabilities Accounts payable - trade $ 67,975 Accrued salaries and wages 12,916 Operating lease liabilities, current portion 19,981 Other current liabilities 22,024 Deferred income taxes 78 Operating lease liabilities, noncurrent portion 48,130 Other long-term liabilities 188 Total Distribution liabilities $ 171,292 Gain on sale of Distribution before income taxes $ 167,757 (1) The proceeds received from the sale of the Distribution business were included in net cash provided by (used in) investing activities of continuing operations on the Company's Consolidated Statement of Cash Flows. These proceeds were net of transaction costs of $33.1 million and working capital adjustments. The final consideration and gain on sale is subject to a working capital adjustment expected to be settled in the first quarter of 2020. |
Revenue and Geographic Informat
Revenue and Geographic Information (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue and Geographic Information [Abstract] | |
Revenue from Contract with Customer [Text Block] | 4. REVENUE AND GEOGRAPHIC INFORMATION (CONTINUED) Disaggregation of Revenue The following table disaggregates total revenue by major product line. For the year ended December 31, 2019 2018 2017 In thousands Military and Defense, excluding safe and arm devices $ 178,289 $ 190,264 $ 201,760 Safe and Arm Devices 227,846 195,751 184,640 Commercial Aerospace and Other 355,473 349,979 338,544 Total revenue (1)(2)(3) $ 761,608 $ 735,994 $ 724,944 (1) Service revenue was not material for the years ended December 31, 2019 , 2018 and 2017 . (2) Sales of the Company's formerly owned Distribution business were included in earnings from discontinued operations, net of tax, on the Company's Consolidated Statements of Operations. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. (3) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $244.3 million , $281.3 million and $248.6 million in 2019 , 2018 and 2017 , respectively, and represent direct and indirect sales to the USG and related agencies. The following table illustrates the approximate percentage of revenue recognized by product types. For the year ended December 31, 2019 2018 2017 In thousands Original Equipment Manufacturer 58 % 56 % 57 % Aftermarket 12 % 17 % 18 % Safe and Arm Devices 30 % 27 % 25 % Total revenue 100 % 100 % 100 % The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: 2019 2018 Revenue recognized for performance obligations satisfied: Over time 39 % 48 % Point-in-time 61 % 52 % Total revenue 100 % 100 % 4. REVENUE AND GEOGRAPHIC INFORMATION (CONTINUED) Geographic Information Sales are attributed to geographic regions based on the location to which the product is shipped. Geographic distribution of sales recorded is as follows: For the year ended December 31, 2019 2018 2017 In thousands North America $ 438,638 $ 485,856 $ 437,326 Europe 164,921 167,176 168,236 Middle East 114,110 51,565 81,197 Asia 19,326 16,998 24,614 Oceania 14,598 8,739 10,837 Other 10,015 5,660 2,734 Total revenue $ 761,608 $ 735,994 $ 724,944 Geographic distribution of long-lived assets is as follows: At December 31, 2019 2018 In thousands United States (1) $ 249,935 $ 463,114 Germany 157,504 160,257 United Kingdom 32,834 32,378 Czech Republic 5,753 6,077 Mexico 1,189 1,091 Total long-lived assets (2) $ 447,215 $ 662,917 (1) Long-lived assets attributable to the Company's formerly owned Distribution business, totaling $229.2 million were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. (2) For the purpose of this disclosure the Company excluded deferred tax assets of $35.2 million and $38.0 million as of December 31, 2019 and 2018 , respectively. |
Restructuring Costs (Notes)
Restructuring Costs (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | RESTRUCTURING COSTS During the third quarter of 2017, the Company initiated restructuring activities at certain businesses to support the ongoing effort of improving capacity utilization and operating efficiency to better position the Company for increased profitability and growth. Such actions include workforce reductions and the consolidation of operations, beginning in the third quarter of 2017 through the planned completion of restructuring activities in 2019. The Company currently expects these actions to result in approximately $9.5 million in pre-tax restructuring and transition charges. The Company has begun realizing total cost savings in excess of $8.0 million annually as a result of these restructuring activities. The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other (1) Total In thousands Restructuring accrual balance at December 31, 2018 $ 1,022 $ 558 $ 1,580 Provision (15 ) 198 183 Cash payments (999 ) (380 ) (1,379 ) Changes in foreign currency exchange rates (8 ) 1 (7 ) Restructuring accrual balance at December 31, 2019 $ — $ 377 $ 377 (1) Includes costs associated with consolidation of facilities. 5. RESTRUCTURING COSTS (CONTINUED) The above accrual balance was included in other current liabilities on the Company's Consolidated Balance Sheets. Since the announcement of these restructuring activities, restructuring expense related to these activities as of December 31, 2019 was $9.3 million . For the year ended December 31, 2019 , restructuring expense, totaling $0.6 million , was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $0.3 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations and $0.1 million in depreciation expense associated with an enterprise resource planning ("ERP") system that will no longer be utilized as a result of the restructuring activities. For the year ended December 31, 2018 , restructuring expense, totaling $6.0 million , was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $0.8 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations and $0.4 million associated with the acceleration of stock compensation for management impacted by the restructuring activities. For the year ended December 31, 2017 , restructuring expense, totaling $2.7 million , was included in restructuring costs on the Company's Consolidated Statements of Operations. Included in this expense was approximately $1.0 million of cost that primarily related to the write-off of inventory for various small order programs that the Company will no longer continue to manufacture as a result of the consolidation of operations. As part of the restructuring activities discussed above, the Company sold its U.K. Tooling business and substantially all of the assets and liabilities of its Engineering Services business in the fourth quarter of 2018. These divestitures did not qualify for the reporting of discontinued operations within the consolidated financial statements. In the year ended December 31, 2018, the Company incurred a loss of $5.7 million associated with the sale of the U.K. Tooling business, which was included in loss on the sale of business on the Company's Consolidated Statements of Operations. Of the $5.7 million loss on the sale of the U.K. Tooling business, $1.7 million related to the foreign currency translation reclassified from accumulated other comprehensive income (loss) to net income. In the year ended December 31, 2019 , the Company incurred an additional loss of $3.7 million associated with the write-off of note receivables recorded in 2018 for the remaining amounts to be collected on the sale of the U.K. Tooling business as this balance was deemed not likely to be collected. This charge was included in loss on the sale of business on the Company's Consolidated Statements of Operations. At December 31, 2018, the present value of these note receivables of $0.2 million and $2.3 million were included in other current assets and other assets, respectively, on the Company's Consolidated Balance Sheets. In the year ended December 31, 2018, the Company incurred a loss of $0.7 million associated with the sale of substantially all of the assets and liabilities of its Engineering Services business, which was included in net loss (gain) on the sale of assets on the Company's Consolidated Statements of Operations. Other Matters In addition to the restructuring activities above, for the year ended December 31, 2019 , the Company's corporate office incurred $0.9 million in severance expense. Of this amount, $0.5 million was recorded in accrued salaries and wages on the Company's Consolidated Balance Sheets as of December 31, 2019. These amounts are not included in the table above. For the year ended December 31, 2018, the Company incurred $1.4 million in costs associated with the termination of certain distributor agreements and separation costs for certain employees not covered by restructuring activities noted above. In 2017, the Company incurred $0.4 million of other severance expense. There was also $1.6 million in separation costs associated with a senior executive recorded in accrued salaries and wages on the Company's Consolidated Balance Sheets as of December 31, 2017. These amounts are not included in the table above. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET Accounts receivable consist of the following: At December 31, 2019 2018 In thousands Trade receivables $ 13,794 $ 11,380 U.S. Government contracts: Billed 15,136 38,173 Costs and accrued profit – not billed 894 780 Commercial and other government contracts: Billed 120,427 100,603 Costs and accrued profit – not billed 7,487 900 Less allowance for doubtful accounts (1,246 ) (2,498 ) Accounts receivable, net (1) $ 156,492 $ 149,338 (1) Accounts receivable, net attributable to the Company's formerly owned Distribution business were included in assets held for sale, current portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. T he increase in accounts receivable, net was primarily due to an increase in receivables related to a JPF DCS contract, partially offset by payments received under the Company's JPF program with the USG. Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: At December 31, 2019 2018 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ 900 $ 900 Total $ 900 $ 900 |
Contract Assets, Contract Costs
Contract Assets, Contract Costs and Contract Liabilities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Contract Assets, Contract Costs and Contract Liabilities [Abstract] | |
Contract Assets, Contract Costs and Contract Liabilities [Text Block] | 7. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES Contract assets consist of unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract costs consist of costs to obtain and fulfill a contract. Costs to fulfill a contract primarily consist of nonrecurring engineering costs incurred at the start of a new program for which such costs are expected to be recovered under existing and future contracts. Such costs are amortized over the estimated revenue amount of the contract. Costs to obtain a contract consist of commissions and agent fees paid in connection with the award of a contract. Contract liabilities consist of advance payments and billings in excess of costs incurred and deferred revenue. 7. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES (CONTINUED) Activity related to contract assets, contract costs and contract liabilities is as follows: December 31, December 31, $ Change % Change In thousands Contract assets (1)(2) $ 121,614 $ 99,261 $ 22,353 22.5 % Contract costs, current portion $ 6,052 $ 5,993 $ 59 1.0 % Contract costs, noncurrent portion $ 6,099 $ 10,666 $ (4,567 ) (42.8 )% Contract liabilities, current portion (2) $ 42,942 $ 28,865 $ 14,077 48.8 % Contract liabilities, noncurrent portion (2) $ 37,855 $ 78,562 $ (40,707 ) (51.8 )% (1) The Company's contract assets were net of unliquidated progress payments, primarily from the U.S. Government, of $30.2 million and $30.3 million at December 31, 2019 and December 31, 2018 , respectively. (2) Contract assets and contract liabilities of the Company's formerly owned Distribution business were included in assets held for sale and liabilities held for sale, respectively, as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. Contract Assets The increase in contract assets was primarily due to the recognition of revenue related to the satisfaction or partial satisfaction of performance obligations during the year ended December 31, 2019 . This increase is primarily attributable to work performed and not yet billed on the JPF program with the USG and certain structures programs. These increases were partially offset by amounts billed on the SH-2G program for Peru. There were no significant impairment losses related to the Company's contract assets during the year ended December 31, 2019 and December 31, 2018 . Contract assets includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: December 31, December 31, In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ 3,745 $ 2,909 Contract Costs At December 31, 2019 , costs to fulfill a contract and costs to obtain a contract were $6.6 million and $5.6 million , respectively. At December 31, 2018 , costs to fulfill a contract and costs to obtain a contract were $8.9 million and $7.8 million , respectively. These amounts are included in contract costs, current portion and contract costs, noncurrent portion on the Company's Consolidated Balance Sheets at December 31, 2019 and December 31, 2018 . Contract costs, current portion at December 31, 2019 remained relatively flat when compared to December 31, 2018. This was the result of the reclassification of a portion of costs to obtain a JPF DCS contract and costs to fulfill certain structures programs from contract costs, noncurrent portion, partially offset by amortization of contract costs. For the years ended December 31, 2019 and December 31, 2018 , amortization of contract costs was $11.6 million and $3.7 million , respectively. The decrease in contract costs, noncurrent portion was primarily related to the reclassification of a portion of costs to obtain a JPF DCS contract and costs to fulfill certain structures programs to contract costs, current portion . 7. CONTRACT ASSETS, CONTRACT COSTS AND CONTRACT LIABILITIES (CONTINUED) Contract Liabilities The increase in contract liabilities, current portion was primarily due to the reclassification of advance payments received for a JPF DCS contract from contract liabilities, noncurrent portion, partially offset by revenue recognized on a JPF DCS contract and the K-MAX® program. For the years ended December 31, 2019 and December 31, 2018 , revenue recognized related to contract liabilities, current portion was $48.5 million and $12.1 million , respectively. The decrease in contract liabilities, noncurrent portion was due to the reclassification of advance payments received for a JPF DCS contract to contract liabilities, current portion. For the years ended December 31, 2019 and December 31, 2018 , the Company did not recognize revenue against contract liabilities, noncurrent portion. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or the price paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table provides the carrying value and fair value of financial instruments that are not carried at fair value at December 31, 2019 and 2018 : 2019 2018 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 186,060 $ 237,381 $ 299,124 $ 325,251 (1) These amounts are classified within Level 2. The above fair values were computed based on quoted market prices and discounted future cash flows (observable inputs), as applicable. Differences from carrying values are attributable to interest rate changes subsequent to when the transactions occurred. The fair values of cash and cash equivalents, accounts receivable, net, and accounts payable - trade approximate their carrying amounts due to the short-term maturities of these instruments. The Company's cash and cash equivalents at December 31, 2019 included $443.2 million of Level 1 money market funds. Recurring Fair Value Measurements The Company holds derivative instruments for foreign exchange contracts that are measured at fair value using observable market inputs such as forward rates and our counterparties’ credit risks. Based on these inputs, the derivative instruments are classified within Level 2 of the valuation hierarchy and have been included in other current assets and other current liabilities on the Consolidated Balance Sheets at December 31, 2019 and other current liabilities on the Consolidated Balance Sheets at December 31, 2018 . Based on the continued ability to trade and enter into forward contracts and interest rate swaps, the Company considers the markets for the fair value instruments to be active. The Company evaluated the credit risk associated with the counterparties to these derivative instruments and determined that as of December 31, 2019 , such credit risks have not had an adverse impact on the fair value of these instruments. 8. FAIR VALUE MEASUREMENTS (CONTINUED) Nonrecurring Fair Value Measurements During the third quarter of 2018, the Company incurred a $10.0 million impairment charge for a certain asset group at its U.K. business. Refer to Note 12, Goodwill and Other Intangible Assets, Net |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in foreign currency exchange rates and interest rates. Derivative financial instruments are reported on the Consolidated Balance Sheets at fair value. Changes in the fair values of derivatives are reported each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes. The Company held forward exchange contracts designed to hedge forecasted transactions denominated in foreign currencies and to minimize the impact of foreign currency fluctuations on the Company’s earnings and cash flows. Some of those contracts were designated as cash flow hedges. The Company will include in earnings amounts currently included in accumulated other comprehensive income upon recognition of cost of sales related to the underlying transaction. Interest Rate Swaps The Company’s Term Loan Facility (“Term Loan”) under the Company's previously existing credit facility contained floating rate obligations and was subject to interest rate fluctuations. During 2015, the Company entered into interest rate swap agreements for the purposes of hedging the eight quarterly variable-rate Term Loan interest payments due in 2016 and 2017. Additionally, the Company entered into interest rate swap agreements to effectively convert $83.8 million of our variable rate revolving credit facility debt to a fixed interest rate. These interest rate swap agreements were designated as cash flow hedges and intended to manage interest rate risk associated with our variable-rate borrowings and minimize the impact on our earnings and cash flows of interest rate fluctuations attributable to changes in LIBOR rates. As of December 31, 2017, these interest rate swap agreements had all matured and were no longer outstanding. As such, there was no activity related to these contracts for the years ended December 31, 2019 and 2018 . The activity related to these contracts was not material to the Company's Consolidated Financial Statements for the year ended December 31, 2017. No amounts related to cash flow hedges are expected to be reclassified from other comprehensive income over the next twelve months. Forward Exchange Contracts From time to time, the Company will enter into foreign exchange contracts that are not designated as hedging instruments. These contracts are entered into in order to minimize the impact of foreign currency fluctuations on the Company's earnings and cash flows. The Company reports expense related to these contracts in other income, net on the Consolidated Statements of Operations. In addition to the forward exchange contract mentioned above, the Company held forward exchange contracts to mitigate the risk associated with foreign currencies that were not designated as hedging instruments as of December 31, 2019 and 2018 . The balances associated with the contracts and the gains or losses reported in other income, net were not material for the years ended December 31, 2019 , 2018 or 2017 . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: At December 31, 2019 2018 In thousands Raw materials $ 15,012 $ 15,939 Contracts in process: US Government 6,217 6,030 Commercial and other government contracts 74,035 49,471 Contracts and other work in process (including certain general stock materials) 36,130 41,166 Finished goods 24,959 18,963 Inventories (1) $ 156,353 $ 131,569 (1) Inventories attributable to the Company's formerly owned Distribution business were included in assets held for sale, current portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs, which totaled $0.4 million and $0.5 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 and 2018 , $43.6 million and $34.7 million , respectively, of K-MAX® inventory was included in contracts and other work in process inventory and finished goods on the Company's Consolidated Balance Sheets. Management believes that approximately $22.5 million of the K-MAX® inventory will be sold after December 31, 2020 , based upon the anticipation of additional aircraft manufacturing and supporting the fleet for the foreseeable future. At December 31, 2019 and 2018 , $3.6 million and $5.4 million , respectively, of SH-2G(I) inventory was included in contracts and other work in process inventory on the Company's Consolidated Balance Sheets. Management believes that approximately $3.2 million of the SH-2G(I) inventory will be sold after December 31, 2020 . This balance represents spares requirements and inventory to be used in SH-2G programs. |
Property Plant and Equipment, N
Property Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net is summarized as follows: At December 31, 2019 2018 In thousands Land $ 16,319 $ 14,408 Buildings 101,562 100,005 Leasehold improvements 14,904 14,626 Machinery, office furniture and equipment 200,466 188,081 Construction in process 17,748 12,277 Total 350,999 329,397 Less accumulated depreciation (210,549 ) (192,285 ) Property, plant and equipment, net (1) $ 140,450 $ 137,112 (1) Property, plant and equipment, net attributable to the Company's Distribution business were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. Depreciation expense was $21.3 million , $20.9 million and $19.8 million for 2019 , 2018 and 2017 , respectively. 11. PROPERTY, PLANT AND EQUIPMENT, NET (CONTINUED) Finance Leases For the year ended December 31, 2019 , $10.9 million of assets included in machinery, office furniture and equipment and construction in process were accounted for as finance leases, with the majority of these assets being purchased under the Company's master leasing agreement. At December 31, 2019 , the Company had accumulated depreciation of $2.4 million associated with these assets. For the year ended December 31, 2018 , $10.8 million of assets purchased under the Company's master leasing agreement and accounted for as capital leases was included in machinery, office furniture and equipment with accumulated depreciation of $1.5 million . Depreciation expense associated with the finance leases (capital leases in 2018 and 2017) was $0.9 million , $0.7 million and $0.4 million for 2019 , 2018 and 2017 , respectively. See Note 20, Leases , for a discussion on the master leasing agreement. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: At December 31, 2019 2018 In thousands Gross balance at beginning of period $ 212,413 $ 218,765 Accumulated impairment (16,252 ) (16,252 ) Net balance at beginning of period 196,161 202,513 Change in goodwill due to disposals (1) — (447 ) Foreign currency translation (847 ) (5,905 ) Net balance at end of period (2) $ 195,314 $ 196,161 Accumulated impairment at end of period $ (16,252 ) $ (16,252 ) (1) The Company sold its U.K. Tooling business and substantially all of the assets and liabilities of its Engineering Services business in 2018. This amount reflects the proportionate goodwill based on these businesses' relative fair value of the Aerosystems reporting unit. (2) Goodwill of the Distribution business was included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. 2019 Analysis In accordance with ASC 350, the Company evaluates goodwill for possible impairment on at least an annual basis. The Company elected to perform a Step 1 analysis on the Aerosystems, Specialty Bearings and Engineered Products and KPP - Orlando reporting units. The results of the Step 1 analyses indicated that the Company did not need to proceed to Step 2, as the fair values of the reporting units exceeded the respective carrying values. The Company performed a sensitivity analysis relative to the discount rates and growth rates selected and determined a decrease of one percentage point in the terminal growth rates or an increase of one percentage point in the discount rates would not result in a fair value calculation less than the carrying value for each reporting unit. 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Goodwill - continued 2018 Analysis Upon completion of the 2018 qualitative assessment of events and circumstances affecting recorded goodwill as described in Note 1, Summary of Significant Accounting Policies , the Company concluded that the Aerosystems reporting unit should receive a Step 1 analysis, while qualitative assessments should be performed for the Specialty Bearings and Engineered Products and KPP - Orlando reporting units. The qualitative assessment performed for Specialty Bearings and Engineered Products and KPP - Orlando took into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting unit, the assessment of assumptions used in the previous fair value calculation and changes in transaction multiples. The results of these analyses indicated that it is more likely than not that goodwill is not impaired and these reporting units did not need to proceed to the two-step impairment test. A Step 1 analysis was performed for the Aerosystems reporting unit. The results of the Step 1 analysis indicated that the Company did not need to proceed to Step 2, as the as the fair value of the reporting unit exceeded its carrying value. The Company performed a sensitivity analysis relative to the discount rate and growth rate selected and determined a decrease of one percentage point in the terminal growth rate or an increase of one percentage point in the discount rate would not result in a fair value calculation less than the carrying value for the reporting unit. Other Intangible Assets Other intangible assets consisted of: At December 31, At December 31, 2019 2018 Amortization Period Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization In thousands Customer lists / relationships 6-26 years $ 56,789 $ (21,415 ) $ 57,263 $ (18,587 ) Developed technologies 10-20 years 19,552 (5,217 ) 19,729 (3,998 ) Trademarks / trade names 15-17 years 5,012 (1,368 ) 5,117 (1,055 ) Non-compete agreements and other 1-15 years 2,338 (2,321 ) 2,350 (2,330 ) Patents 17 years 523 (454 ) 523 (445 ) Total (1) $ 84,214 $ (30,775 ) $ 84,982 $ (26,415 ) (1) Other intangible assets of the Distribution business were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. The decrease in the other intangible assets, net balance at December 31, 2019 , as compared to December 31, 2018 , was primarily due to amortization. Intangible asset amortization expense was $4.5 million , $7.0 million and $7.5 million in 2019 , 2018 and 2017 , respectively. 12. GOODWILL AND OTHER INTANGIBLE ASSETS, NET (CONTINUED) Other Intangible Assets - continued In accordance with ASC 360 - Property, Plant, and Equipment ("ASC 360"), the Company is required to evaluate long-lived assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. In 2018, management identified a triggering event for possible impairment at a certain asset group in its U.K. business based on a review of its historical performance, the current forecast for the remainder of the year and the loss of future orders from one of its significant customers, requiring the Company to evaluate the intangible assets for impairment. The Company performed a recoverability test as defined under ASC 360 by comparing the undiscounted cash flows of the asset group to its carrying value. The estimated undiscounted cash flows of the business did not exceed the carrying value of the assets. Based on these results, the Company calculated the fair value of the asset group, using an income approach based on the estimated future cash flows, discounted to present value using a rate commensurate with the risks associated with the asset group's weighted average cost of capital. This calculation resulted in a write-off of $10.0 million for a certain asset group at the U.K. business, which was included in other intangible assets impairment on the Company's Consolidated Statements of Operations. This charge has been included in the operating results of the Company's Aerospace business. Other intangible assets, gross, and accumulated amortization decreased by $21.0 million and $11.0 million , respectively, as a result of the $10.0 million impairment of customer lists/relationships at the asset group within the Company's U.K. business incurred in the year ended December 31, 2018. No such triggering events were identified in the year ended December 31, 2019. Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2019 , is as follows: In thousands 2020 $ 4,559 2021 $ 4,524 2022 $ 4,137 2023 $ 4,118 2024 $ 3,908 In order to determine the useful life of acquired intangible assets, the Company considers numerous factors, most importantly the industry considerations associated with the acquired entities. The Company determines the amortization period for acquired intangible assets, such as customer relationships, based primarily on an analysis of their historical customer sales attrition information and the period over which the assets are expected to deliver meaningful cash flow generation in support of the fair value of the asset. |
Environmental Costs
Environmental Costs | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Costs | ENVIRONMENTAL COSTS The following table displays the activity and balances associated with accruals related to environmental costs included in other current liabilities and other long-term liabilities: 2019 2018 In thousands Balance at January 1 $ 5,531 $ 6,057 Additions to accrual 1,122 — Payments (569 ) (944 ) Changes in foreign currency exchange rates (6 ) 418 Balance at December 31 $ 6,078 $ 5,531 13. ENVIRONMENTAL COSTS (CONTINUED) Bloomfield In August 2008, the Company completed its purchase of the portion of the Bloomfield campus that Kaman Aerospace Corporation had leased from NAVAIR for many years. In connection with the purchase, the Company has assumed responsibility for environmental remediation at the facility as may be required under the Connecticut Transfer Act (the “Transfer Act”) and it continues the effort to define the scope of the remediation that will be required by the Connecticut Department of Environmental Protection (“CTDEP”). The transaction was recorded by taking the undiscounted estimated remediation liability of $20.8 million and discounting it at a rate of 8% to its present value. The fair value of the Navy Property asset, which at that time approximated the discounted present value of the assumed environmental liability of $10.3 million , is included in property, plant and equipment, net. This remediation process will take many years to complete. The following represents estimated future payments for the undiscounted environmental remediation liability related to the Bloomfield campus as of December 31, 2019 : In thousands 2020 $ 172 2021 653 2022 151 2023 184 2024 387 Thereafter 4,956 Total $ 6,503 Other In 2014, the Company sold its former manufacturing facility in Moosup, Connecticut to TD Development, LLC ("TD"). In connection with the sale, the Company agreed to contribute $4.0 million in cash to an escrow account over a four -year period to fund a portion of TD's environmental remediation work performed on the site. The Company funded $1.6 million to the escrow account between 2014 and 2015. TD stopped work on the site in 2016 and defaulted on its obligations under the sale agreements. From 2016 to 2018, the Company funded $2.4 million to a separate environmental escrow account due to TD's work stoppage. In December 2016, the Company filed a summons and civil complaint against TD, which was subsequently amended in April 2017. The amended complaint alleged breach of contract, default by TD and unjust enrichment, and sought damages and other equitable relief against TD, including the return to the Company of all amounts held in the environmental escrow accounts. On December 21, 2018, the court entered an order and judgment favorable to the Company, which granted its application to confirm an arbitration award. The judgment provides that TD is not entitled to any of the amounts held in the escrow accounts nor any accrued interest, and the funds held in the escrow accounts shall be released to the Company. Additionally, the court awarded the Company compensatory damages, including reasonable legal fees, costs and expenses, and interest on the amounts awarded, but unpaid. In February 2019, the Company received the remaining balance of the escrow account ( $0.7 million ), which was added to the Company's accrual related to this matter. As of December 31, 2019 , the Company has not recorded any amounts for compensatory damages, reasonable legal fees and costs and expenses from the arbitration award. The accrual related to the Moosup facility was $3.1 million as of December 31, 2019 . The Company's environmental accrual also includes estimated environmental remediation costs that the Company expects to incur at the former Music segment’s New Hartford, CT facility and the Company’s facility in Rimpar, Germany. The Company continues to assess the work that may be required at each of these facilities, which may result in a change to this accrual. For further discussion of these matters, see Note 19, Commitments and Contingencies . |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-Term Debt The Company has long-term debt as follows: At December 31, 2019 2018 In thousands Revolving credit agreement $ — $ 38,500 Term loan — 76,875 Convertible notes 186,060 183,749 Total 186,060 299,124 Less current portion — 9,375 Total excluding current portion $ 186,060 $ 289,749 At December 31, 2019 and 2018 , the current and long-term debt balances on the Company's Consolidated Balance Sheets were net of debt issuance costs of $4.4 million and $5.5 million , respectively. The weighted average interest rate on long-term borrowings outstanding as of December 31, 2019 and 2018 , was 3.25% and 3.44% , respectively. For the years ended December 31, 2019 and 2018 , $ 5.6 million and $6.3 million , respectively, of liabilities associated with our finance leases are included in other long-term liabilities. See Note 20, Leases, for a discussion of the master leasing agreement. The aggregate annual maturities of long-term debt for each of the next five years are approximately as follows: In thousands 2020 $ — 2021 $ — 2022 $ — 2023 $ — 2024 $ 199,500 Convertible Notes Overview During May 2017, the Company issued $200.0 million aggregate principal amount of convertible senior unsecured notes due May 2024 (the "2024 Notes") pursuant to an indenture (the "Indenture"), dated May 12, 2017, between the Company and U.S. Bank National Association, as trustee. In connection therewith, the Company entered into certain capped call transactions that cover, collectively, the number of shares of the Company's common stock underlying the 2024 Notes. In a separate transaction, the Company repurchased $103.5 million aggregate principal amount of its existing convertible senior unsecured notes due November 15, 2017 (the "2017 Notes"). In connection with the repurchase and conversion transactions of the 2017 Notes, the Company settled the associated outstanding bond hedge transactions and a portion of the associated warrant transactions it entered into in 2010 in connection with their issuance. The remaining portion of the 2017 Notes were convertible at the option of the noteholders until the close of business on the second Scheduled Trading Day (as defined in the 2017 Notes indenture) immediately preceding the maturity date. On November 10, 2017 and November 13, 2017, the Company received conversion notices from bondholders, totaling the remaining $11.5 million principal amount outstanding under the 2017 Notes. The Company also settled the remaining portion of the bond hedge. During the first half of 2018, the remaining warrant transactions were settled with 114,778 shares of the Company's common stock. 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes On May 12, 2017, the Company issued $175.0 million in principal amount of 2024 Notes, in a private placement offering. On May 24, 2017, the Company issued an additional $25.0 million in principal amount of 2024 Notes pursuant to the initial purchasers' exercise of their overallotment option, resulting in the issuance of an aggregate $200.0 million principal amount of 2024 Notes. The 2024 Notes bear 3.25% interest per annum on the principal amount, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2017. The 2024 Notes will mature on May 1, 2024, unless earlier repurchased by the Company or converted. The Company will settle any conversions of the 2024 Notes in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The sale of the Distribution business in the third quarter of 2019 was deemed to be a "Fundamental Change" and a "Make-Whole Fundamental Change" pursuant to the terms and conditions of the indenture governing the 2024 Notes. As a result, the sale triggered the right of the holders of our 2024 Notes to require us to repurchase all of the 2024 Notes, or any portion thereof that is a multiple of $1,000 principal amount on September 27, 2019. The aggregate principal amount of the 2024 Notes validly tendered and not validly withdrawn was $0.5 million , representing 0.25% of all outstanding notes. Holders of such notes receive the purchase price equal to 100% of the principal amount of the 2024 Notes being purchased, plus accrued and unpaid interest. The following table illustrates the conversion rate at the date of issuance of the 2024 Notes: 2024 Notes Conversion Rate per $1,000 principal amount (1) 15.3227 Conversion Price (2) $ 65.2626 Contingent Conversion Price (3) $ 84.8413 Aggregate shares to be issued upon conversion (4) 3,056,879 (1) Represents the number of shares of Common Stock hypothetically issuable per each $1,000 principal amount of 2024 Notes, subject to adjustments upon the occurrence of certain specified events in accordance with the terms of the Indenture. (2) Represents $1,000 divided by the conversion rate as of such date. The conversion price reflects the strike price of the embedded option within the 2024 Notes. If the Company's share price exceeds the conversion price at conversion, the noteholders would be entitled to receive additional consideration either in cash, shares or a combination thereof, the form of which is at the sole discretion of the Company. (3) Prior to November 1, 2023, the notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after July 1, 2017, and only during any such fiscal quarter, if the last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter, (2) during the five consecutive business day period following any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day or (3) upon the occurrence of specified corporate events. On or after November 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change (as defined in the Indenture), holders of the notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest. As of December 31, 2019 , none of the conditions permitting the holders of the 2024 Notes to convert had been met. Therefore, the 2024 Notes are classified as long-term debt. (4) This represents the number of shares hypothetically issuable upon conversion of 100% of the outstanding aggregate principal amount of the 2024 Notes at each date; however, the terms of the 2024 Notes state that the Company may pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The Company currently intends to settle the aggregate principal amount in cash. Amounts due in excess of the principal, if any, also may be settled in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes - continued In connection with the 2024 Notes offering, the Company entered into capped call transactions with certain of the initial purchasers or their respective affiliates. These transactions are intended to reduce the potential dilution to the Company's shareholders and/or offset the cash payments the Company is required to make in excess of the principal amount upon any future conversion of the notes in the event that the market price per share of the Company's common stock is greater than the strike price of the capped call transactions, with such reduction and/or offset subject to a cap based on the cap price of the capped call transactions. Under the terms of the capped call transactions, the strike price ( $65.2626 ) and the cap price ( $88.7570 ) are each subject to adjustment in certain circumstances. In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates entered into various derivative transactions with respect to the Company’s common stock concurrently with or shortly after the pricing of the notes. The capped call transactions, which cost an aggregate $20.5 million , were recorded as a reduction of additional paid-in capital. ASC Topic 815 - Derivatives and Hedging ("ASC 815") provides that contracts are initially classified as equity if (1) the contract requires physical settlement or net-share settlement, or (2) the contract gives the company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement). The settlement terms of our capped call transactions require net-share settlement. Based on the guidance in ASC 815, the capped call transactions were recorded as a reduction of equity as of the trade date. ASC 815 states that a reporting entity shall not consider contracts to be derivative instruments if the contract issued or held by the reporting entity is both indexed to its own stock and classified in shareholders' equity in its balance sheet. The Company concluded the capped call transactions should be accounted for in shareholders' equity and are, therefore, not to be considered a derivative instrument. ASC 470-20 "Debt with Conversion and Other Options " (“ASC 470-20”) clarifies the accounting for convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement. ASC 470-20 specifies that an issuer of such instruments should separately account for the liability and equity components of the instruments in a manner that reflects the issuer's non-convertible debt borrowing rate which interest costs are to be recognized in subsequent periods. The note payable principal balance for the 2024 Notes at the date of issuance of $200.0 million was bifurcated into the debt component of $179.5 million and the equity component of $20.5 million . The difference between the note payable principal balance and the fair value of the debt component representing the debt discount is being accreted to interest expense over the term of the 2024 Notes. The fair value of the debt component was recognized using a 5.0% discount rate, representing the Company's borrowing rate at the date of issuance for a similar debt instrument without a conversion feature with an expected life of seven years. The Company incurred $7.4 million of debt issuance costs in connection with the sale of the 2024 Notes, which was allocated between the debt and equity components of the instrument. Of the total amount, $0.7 million was recorded as an offset to additional paid-in capital. The balance, $6.7 million , was recorded as a contra-debt balance and is being amortized over the term of the 2024 Notes. Total amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $0.9 million , $0.8 million and $0.5 million . The carrying amount of the equity component and the principal amount of the liability component, the unamortized discount and the net carrying value of the liability are as follows: 2024 Notes December 31, 2019 December 31, 2018 In thousands Principal amount of liability $ 199,500 $ 200,000 Unamortized discount 13,440 16,251 Carrying value of liability $ 186,060 $ 183,749 Equity component $ 20,408 $ 20,459 14. DEBT (CONTINUED) Convertible Notes - continued 2024 Notes - continued Because the embedded conversion option is indexed to the Company’s own stock and would be classified in shareholders’ equity, it does not meet the criterion under ASC 815 that would require separate accounting as a derivative instrument. As of December 31, 2019 , the "if converted value" exceeded the principal amount of the 2024 Notes by $2.0 million since the closing sales price of the Company's common stock was $65.92 compared to the conversion price of $65.26 for the the 2024 Notes. Interest expense associated with the 2024 Notes consisted of the following: For the year ended December 31, 2019 2018 2017 In thousands Contractual coupon rate of interest $ 6,503 $ 6,500 $ 4,207 Accretion of convertible notes discount 2,753 2,596 1,612 Interest expense - convertible notes $ 9,256 $ 9,096 $ 5,819 2017 Notes In November 2010, the Company issued convertible senior unsecured notes due on November 15, 2017, in the aggregate principal amount of $115.0 million in a private placement offering. These notes bore 3.25% interest per annum on the principal amount, payable semiannually in arrears on May 15 and November 15 of each year, beginning in 2011. In May 2017, the Company used a portion of the net proceeds from the issuance of the 2024 Notes, along with cash received from the counterparties in connection with the termination of the existing convertible note hedge transactions referred to below, to repurchase $103.5 million principal amount of the 2017 Notes from a limited number of holders in an arm's length transaction. This repurchase represented approximately 90% of the aggregate principal amount of 2017 Notes. The repurchases were accounted for as an extinguishment of the outstanding instrument. Of the total aggregate cost of $165.3 million , $60.0 million was allocated to the equity component of the 2017 Notes and was recorded as a reduction to additional paid-in capital. The remainder of the cost was attributed to the outstanding principal repurchased and accrued interest. The repayment of a portion of the 2017 Notes was not contingent upon the issuance of the 2024 Notes. As such, the repurchase of the 2017 Notes was accounted for as a debt extinguishment. At December 31, 2019 and 2018, there was no liability balance associated with the 2017 Notes as a result of the debt extinguishment. See below for further details on the loss on extinguishment: In thousands Carrying value of 2017 Notes $ 113,943 Carrying value of Redeemed Debt $ 102,548 Fair value of consideration transferred allocated to debt component (1) 103,637 Loss on extinguishment of 2017 Notes (2) $ (1,089 ) Acceleration of the related portion of debt issuance cost (3) (297 ) Total loss on extinguishment of 2017 Notes (4) $ (1,386 ) ( 1 ) The fair value of consideration transferred was calculated using a discount rate of 3% , representing the Company's borrowing rate at the date of issuance for a similar debt instrument with a remaining expected life of six months (for the 2017 Notes). (2) The majority of this balance relates to the write-off of approximately $1.0 million , 90% of the unamortized debt discount. (3) The Company determined that in connection with the repurchase of the 2017 Notes, 90% of the unamortized debt issuance costs should be written off, representing the approximate outstanding portion of these costs related to the notes repurchased. (4) This loss is included in interest expense, net on the Company's Consolidated Statement of Operations in the year ended December 31, 2017. 14. DEBT (CONTINUED) Convertible Notes - continued 2017 Notes - continued In connection with the 2017 Notes, the Company had entered into convertible note hedge transactions and warrant transactions ("existing call spread transactions") with certain financial institutions. These transactions were accounted for as equity instruments at the time of issuance in 2010. With the intention of repurchasing the 2017 Notes, the Company entered into agreements with these financial institutions to terminate a portion of the existing call spread transactions concurrently with the offering. In connection with these transactions, the Company received $58.6 million in payments related to the unwind of 90% of the convertible note hedge transactions and made deliveries of 624,044 shares of the Company's common stock in connection with the partial unwind of the warrant transactions. The Company used a portion of the proceeds from the bond hedge settlement to repurchase the 2017 Notes as described above and to make a payment to the revolving credit facility. The cash proceeds received were recorded as an increase of additional paid-in-capital which was partially offset by the delivery of shares. The remaining portion of the 2017 Notes were convertible at the option of the bondholders until the close of business on the second Scheduled Trading Day (as defined in the 2017 Notes indenture) immediately preceding the maturity date. On November 10, 2017 and November 13, 2017, the Company received conversion notices from bondholders, totaling the remaining $11.5 million principal amount outstanding under the 2017 Notes. The Company settled the principal amount of $11.5 million in cash, with the excess settled in shares, delivering 136,347 shares of the Company's common stock with an approximate value of $7.5 million , and any fractional shares settled in cash. Additionally, the Company received 136,369 shares to settle the remaining 10% of the convertible note hedge transactions associated with the 2017 Notes. The cash proceeds received were recorded as an increase of additional paid-in-capital which were offset by the delivery of shares. During the first half of 2018, the remaining warrant transactions were settled with 114,778 shares of the Company's common stock, which resulted in a reduction in additional paid-in-capital. For the year ended December 31, 2017, interest expense associated with the 2017 Notes consisted of contractual coupon rate of interest of $3.3 million and accretion of the convertible notes discount of $1.8 million . Revolving Credit and Term Loan Agreements On December 13, 2019, the Company closed an amended and restated $800.0 million Credit Agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A., as Administrative Agent and as Collateral Agent. The Credit Agreement amends and restates the Company's previously existing credit facility in its entirety to, among other things: (i) extend the maturity date to December 13, 2024; (ii) increase the aggregate amount of revolving commitments from $600.0 million to $800.0 million ; (iii) remove the existing term loan credit facility; (iv) modify the affirmative and negative covenants set forth in the facility; and (v) effectuate a number of additional modifications to the terms and provisions of the facility, including its pricing. Capitalized terms used but not defined within this Note 14, Debt , have the meanings ascribed thereto in the Credit Agreement. The Credit Agreement permits the Company to pay cash dividends. The Lenders have been granted a security interest in substantially all of the Company’s and its domestic subsidiaries’ personal property and other assets (including intellectual property but excluding real estate), including a pledge of 66% of the Company’s equity interest in certain foreign subsidiaries and 100% of the Company’s equity interest in its domestic subsidiaries, as collateral for the Company’s obligations under the Credit Agreement. 14. DEBT (CONTINUED) Revolving Credit and Term Loan Agreements - continued The following table shows the amounts available for borrowing under the Company's revolving credit facility: At December 31, 2019 2018 In thousands Total facility $ 800,000 $ 600,000 Amounts outstanding, excluding letters of credit — 38,500 Amounts available for borrowing, excluding letters of credit 800,000 561,500 Letters of credit under the credit facility (1) 152,614 152,613 Amounts available for borrowing $ 647,386 $ 408,887 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (2) $ 322,900 $ 323,532 (1) The Company has entered into standby letters of credit issued on the Company's behalf by financial institutions, and directly issued guarantees to third parties primarily related to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit generally are available for draw down in the event the Company does not perform its obligations. (2) Amounts available for borrowing subject to EBITDA as of December 31, 2019 reflect the minimum borrowing capacity under EBITDA, subject to adjustments. Debt issuance costs in connection with the Credit Agreement have been capitalized and are being amortized over the term of the agreement. The Company incurred $3.6 million of debt issuance costs in connection with the amendment and restatement of the Credit Agreement in the year ended December 31, 2019. Total amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $1.0 million each period. Interest rates on amounts outstanding under the Credit Agreement are variable, and are determined based on the Senior Secured Net Leverage Ratio, as defined in the Credit Agreement. In addition, the Company is required to pay a quarterly commitment fee on the unused revolving loan commitment amount at a rate ranging from 0.150% to 0.250% per annum, based on the Senior Secured Net Leverage Ratio. Fees for outstanding letters of credit range from 1.125% to 1.625% , based on the Senior Secured Net Leverage Ratio. The interest rate for the outstanding amounts on both the revolving credit facility and term loan commitment are as follows: At December 31, 2019 2018 Interest rate (1) — 3.74 % (1) At December 31, 2019, there were no outstanding amounts on the revolving credit facility. The financial covenants associated with the Credit Agreement include a requirement that (i) the Consolidated Total Net Leverage Ratio, as defined in the Credit Agreement, cannot be greater than 4.00 to 1.00 , with an election to increase the maximum to 4.50 to 1.00 for four consecutive quarters, in connection with a Material Permitted Investment; (ii) the Interest Coverage Ratio cannot be less than 3.00 to 1.00 ; and (iii) Liquidity: (a) as of the last day of the fiscal quarter ending on or about September 30, 2023 cannot be less than an amount equal to 50% of the aggregate principal amount of the 2024 Convertible Notes as of such date, and (b) as of the last day of the fiscal quarter ending on December 31, 2023 and ending on or about March 29, 2024, to be less than the amount equal to 100% of the aggregate principal amount of the 2024 Convertible Notes as of such day. The Company was in compliance with those financial covenants as of and for the quarter ended December 31, 2019 , and management does not anticipate noncompliance in the foreseeable future. Interest Payments Cash payments for interest were $15.7 million , $16.0 million and $17.9 million in 2019 , 2018 and 2017 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of accumulated other comprehensive income (loss) are shown below: 2019 2018 In thousands Foreign currency translation and other: Beginning balance $ (14,579 ) $ (7,054 ) Net (loss) gain on foreign currency translation (1,772 ) (9,255 ) Reclassification to net income (1) — 1,730 Other comprehensive loss, net of tax (1,772 ) (7,525 ) Ending balance $ (16,351 ) $ (14,579 ) Pension and other post-retirement benefits (2) : Beginning balance $ (120,319 ) $ (108,760 ) Reclassification to net income Amortization of net loss, net of tax expense of $3,534 and $2,818, respectively 11,971 8,800 Change in net gain, net of tax benefit of $915 and $6,519, respectively (3,100 ) (20,359 ) Other comprehensive (loss) gain, net of tax 8,871 (11,559 ) Reclassification of stranded tax effects resulting from Tax Reform to retained earnings balance (3) (23,094 ) — Ending balance $ (134,542 ) $ (120,319 ) Total accumulated other comprehensive income (loss) $ (150,893 ) $ (134,898 ) (1) The foreign currency translation reclassified to net income relates to the sale of the Company's UK Tooling business (see Note 5, Restructuring Costs , for additional information). (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans for additional information). (3) See Note 1, Summary of Significant Accounting Policies , for additional information regarding the reclassification of stranded tax effects resulting from Tax Reform to retained earnings. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax (benefit) expense from continuing operations are as follows: For the twelve months ended December 31, 2019 2018 2017 In thousands Current: Federal $ (19,432 ) $ 351 $ 2,841 State 1,996 104 (626 ) Foreign 585 1,191 2,341 (16,851 ) 1,646 4,556 Deferred: Federal 719 7,145 20,531 State 277 841 (60 ) Foreign (4 ) (373 ) 187 992 7,613 20,658 Total $ (15,859 ) $ 9,259 $ 25,214 16. INCOME TAXES (CONTINUED) In the year ended December 31, 2019, the Company filed an entity classification election with regard to the investment in the Company's U.K. business, which had the effect of treating the subsidiary as a disregarded entity for U.S. tax purposes, but has no impact on operations or taxation in the U.K. This election resulted in a loss for U.S tax purposes and a significant tax benefit recognized by the Company in 2019. The loss was based on the tax basis of the Company's investment in the subsidiary and was not impacted by the carrying value of the Company's investment in the subsidiary for financial statement purposes. If a divestiture of the subsidiary occurs at some point in the future, the Company would expect to record a financial statement loss, for which no tax benefit would be recorded. Additionally, in 2019, the Company recognized additional benefits from research and development credits, relating to research completed in the three prior years. The credit was based upon the increases in qualified research expenditures over a base period. Based on the Company’s level of research, additional credits would be expected in future years. During the fourth quarter of 2017, Tax Reform was enacted by the federal government. The SEC issued Staff Accounting Bulletin 118 ("SAB 118") in December 2017, which provides guidance on accounting for the tax effects of Tax Reform. SAB 118 provides a measurement period in which to finalize the accounting under ASC 740, Income Taxes ("ASC 740") as it relates to Tax Reform. This measurement period should not extend beyond one year from the Tax Reform enactment date. In accordance with SAB 118, the Company has properly reflected the income tax effects of all aspects of the legislation for which the accounting under ASC 740 was impacted. The new tax legislation provided for significant changes in corporate taxation, including a reduction in the applicable corporate tax rate from 35% to 21% , effective January 1, 2018. As a result of this rate reduction, the Company's U.S. net deferred tax assets were required to be revalued as of December 31, 2017. This resulted in a one-time charge to tax expense of $9.7 million in the fourth quarter of 2017. Other Tax Reform provisions that impacted the Company included the elimination of the deduction for manufacturing activities, changes to the deductibility of executive compensation and various international tax law changes. All conclusions under SAB 118 were finalized during the fourth quarter of 2018 with no changes to the provisional amounts. One of the international tax law changes provided for with Tax Reform relates to the taxation of a corporation's global intangible low-taxed income ("GILTI") for tax years beginning after December 31, 2017. The Company has evaluated this provision of Tax Reform and the application of ASC 740, and has determined that GILTI had no impact on the Company for the years ended December 31, 2019 and 2018. Another significant international change brought upon by Tax Reform was the foreign-derived intangible income ("FDII") provision, which is applicable for tax years beginning after December 31, 2017. FDII encourages U.S. manufacturing by allowing for what equates to a 13% U.S. tax rate on qualifying export sales. The Company benefited from this provision during the years ended December 31, 2019 and 2018, and expects to continue to benefit in future years. The tax effects of temporary differences that give rise to deferred tax assets and liabilities of continuing operations are presented below: At December 31, 2019 2018 In thousands Deferred tax assets: Deferred employee benefits $ 36,678 $ 43,118 Tax loss and credit carryforwards 19,449 17,610 Accrued liabilities and other items 14,044 9,036 Total deferred tax assets 70,171 69,764 Deferred tax liabilities: Property, plant and equipment (6,410 ) (2,677 ) Intangibles (27,147 ) (27,732 ) Other items (226 ) (218 ) Total deferred tax liabilities (33,783 ) (30,627 ) Net deferred tax assets before valuation allowance 36,388 39,137 Valuation allowance (8,142 ) (8,243 ) Net deferred tax assets after valuation allowance $ 28,246 $ 30,894 16. INCOME TAXES (CONTINUED) The decrease in the valuation allowance from December 31, 2018 to December 31, 2019 , primarily relates to a change in state tax law which will enable the Company to utilize additional state loss carryforwards, partially offset by additional losses incurred by the Kaman U.K. entities for which no tax benefit could be recorded. Valuation allowances reduced the deferred tax asset attributable to these state and foreign loss and credit carryforwards to an amount that, based upon all available information, is more likely than not to be realized. Reversal of the valuation allowance is contingent upon the recognition of future taxable income in the respective jurisdictions or changes in circumstances which cause the realization of the benefits of carryforwards to become more likely than not. Tax loss and credit carryforwards associated with approximately $10.0 million of deferred tax assets have no expiration period. The remainder of the loss and credit carryforwards have varying expiration periods; however, most will expire prior to 2035. Pre-tax losses from foreign operations amounted to $4.0 million and $27.1 million in 2019 and 2018 , respectively, while pre-tax income from foreign operations amounted to $1.0 million in 2017 . Tax Reform required the Company to effectively recognize all foreign earnings in U.S. taxable income in the year ended December 31, 2017. Due to this provision and foreign losses incurred in prior years, there were no accumulated earnings in foreign subsidiaries for which U.S income taxes were required to be provided in 2019 . The provision for income taxes from continuing operations differs from that computed at the federal statutory corporate tax rate as follows: For the twelve months ended December 31, 2019 2018 2017 In thousands Federal tax at statutory rate (1) $ 8,523 $ 5,279 $ 15,722 State income taxes, net of federal benefit (2) 1,839 773 (584 ) Tax effect: Section 199 Manufacturing deduction — — (1,616 ) Research and development credits (3,480 ) (100 ) (100 ) Impact of entity classification election (24,813 ) — — Foreign derived intangible income benefit — (2,186 ) — Provision to return adjustments (1,466 ) (1,612 ) 366 Foreign losses for which no tax benefit has been recorded 1,282 2,685 — Change in valuation allowance 976 3,161 861 Equity compensation benefit (482 ) (910 ) (851 ) Nondeductible compensation 891 347 11 Nondeductible acquisition costs 546 — — Impact of tax rate changes, including Tax Reform 68 193 10,032 Other, net 257 1,629 1,373 Income tax (benefit) expense $ (15,859 ) $ 9,259 $ 25,214 (1) The federal statutory tax rate was 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017. (2) Included in state income taxes, net of federal benefit was the state impact of the entity classification election of $0.9 million for the year ended December 31, 2019. The Company will realize tax benefits of approximately $3.4 million for the year ended December 31, 2019 associated with the FDII deduction; however, based on U.S. GAAP reporting requirements, this benefit was recorded in earnings from discontinued operations due to the loss in continuing operations. While the amount of the benefit is dependent upon the volume and profitability of the Company's export sales, as well as consolidated taxable income, the Company would expect such benefit to be associated with continuing operations in the future. 16. INCOME TAXES (CONTINUED) During the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09, "Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting". The objective of this standard update is to simplify several aspects of the accounting for share-based payment transactions, including, but not limited to, income tax consequences. The standard update was effective for fiscal years, and interim periods within those years, beginning after December 31, 2016. Pursuant to this standard the Company recorded tax benefits of $0.5 million , 0.9 million and $0.8 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities. Unrecognized tax benefits represent the difference between the position taken and the benefit reflected in the financial statements. On December 31, 2019 , 2018 and 2017 , the total liability for unrecognized tax benefits was $3.2 million , $3.5 million and $3.4 million , respectively (including interest and penalties of $0.2 million in 2019 , $0.4 million in 2018 and $0.4 million in 2017 ). The change in the liability for 2019 , 2018 and 2017 is explained as follows: 2019 2018 2017 In thousands Balance at January 1 $ 3,457 $ 3,423 $ 2,832 (Reductions) additions based on current year tax positions (378 ) 162 381 Changes for tax positions of prior years 135 (128 ) 152 Settlements — — 58 Balance at December 31 $ 3,214 $ 3,457 $ 3,423 Included in unrecognized tax benefits at December 31, 2019 , were items approximating $2.8 million that, if recognized, would favorably affect the Company’s effective tax rate in future periods. The Company files tax returns in numerous U.S. and foreign jurisdictions, with returns subject to examination for varying periods, but generally back to and including 2013. During 2019 , 2018 and 2017 , $0.2 million or less of interest and penalties was recognized each year as a component of income tax expense. It is the Company’s policy to record interest and penalties on unrecognized tax benefits as income taxes. Cash payments for income taxes, net of refunds, were $47.8 million , $12.4 million and $16.6 million in 2019 , 2018 and 2017 , respectively. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2019 | |
Payment for Pension and Other Postretirement Benefits [Abstract] | |
Pension Plans | PENSION PLANS The Company has a non-contributory qualified defined benefit pension plan (the “Qualified Pension Plan”). On February 23, 2010, the Company’s Board of Directors approved an amendment to the Qualified Pension Plan that, among other things, closed the Qualified Pension Plan to all new hires on or after March 1, 2010, and stipulated that years of service would continue to be added for purposes of the benefit calculations only through December 31, 2015, with no further accrual of benefits for service thereafter. As a result, effective December 31, 2015, the qualified pension plan was frozen with respect to future benefit accruals. Under U.S. Government Cost Accounting Standard (“CAS”) 413 the Company must determine the USG’s share of any pension curtailment adjustment calculated in accordance with CAS. During the fourth quarter of 2016, the Company accrued a $0.3 million liability representing our estimate of the amount due to the USG based on our pension curtailment adjustment calculation, which was submitted to the USG for review in December 2016. The Company has maintained its accrual at $0.3 million as of December 31, 2019. There can be no assurance that the ultimate resolution of this matter will not have a material adverse effect on the Company's results of operations, financial position and cash flows. The Company also has a Supplemental Employees’ Retirement Plan (“SERP”), which is considered a non-qualified pension plan. The SERP provides certain key executives, whose compensation is in excess of the limitations imposed by federal law on the qualified defined benefit pension plan, with supplemental benefits based upon eligible earnings, years of service and age at retirement. During 2010, the Company's Board of Directors also approved an amendment to the SERP that made changes consistent with the pension plan amendment. The Board's Compensation Committee and the Board have not approved any new participants to the SERP since February 28, 2010, and do not intend to do so at any time in the future. The measurement date for both these plans is December 31 . 17. PENSION PLANS (CONTINUED) Obligations and Funded Status The changes in the actuarial present value of the projected benefit obligation and fair value of plan assets are as follows: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Projected benefit obligation at beginning of year $ 695,375 $ 770,316 $ 6,913 $ 7,896 Service cost 5,100 4,897 — — Interest cost 26,422 23,804 237 246 Actuarial liability loss (gain) (1) 88,271 (67,157 ) 720 (280 ) Benefit payments (37,780 ) (36,485 ) (534 ) (949 ) Projected benefit obligation at end of year $ 777,388 $ 695,375 $ 7,336 $ 6,913 Fair value of plan assets at beginning of year $ 590,387 $ 643,392 $ — $ — Actual return on plan assets 127,535 (46,520 ) — — Employer contributions — 30,000 534 949 Benefit payments (37,780 ) (36,485 ) (534 ) (949 ) Fair value of plan assets at end of year $ 680,142 $ 590,387 $ — $ — Funded status at end of year $ (97,246 ) $ (104,988 ) $ (7,336 ) $ (6,913 ) Accumulated benefit obligation $ 777,388 $ 695,375 $ 7,336 $ 6,913 (1) The actuarial liability loss (gain) amount for the qualified pension plan for 2019 and 2018 is principally due to the effect of changes in the discount rate. The Company has recorded liabilities related to our qualified pension plan and SERP as follows: At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Current liabilities (1) $ — $ — $ (528 ) $ (529 ) Noncurrent liabilities (97,246 ) (104,988 ) (6,808 ) (6,384 ) Total $ (97,246 ) $ (104,988 ) $ (7,336 ) $ (6,913 ) (1) The current liabilities are included in other current liabilities on the Consolidated Balance Sheets. The following table presents amounts included in accumulated other comprehensive income on the Consolidated Balance Sheets that will be recognized as components of pension cost in future periods. At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Unrecognized loss $ 177,083 $ 189,047 $ 1,311 $ 837 Amount included in accumulated other comprehensive income $ 177,083 $ 189,047 $ 1,311 $ 837 The amount of unrecognized loss for the qualified pension plan and the SERP, respectively, that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year is estimated to be $4.6 million and $0.9 million . 17. PENSION PLANS (CONTINUED) Obligations and Funded Status - continued The pension plan net periodic benefit costs on the Consolidated Statements of Operations and other amounts recognized in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Shareholders’ Equity were computed using the projected unit credit actuarial cost method and included the following components: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2017 2019 2018 2017 In thousands Service cost for benefits earned during the year $ 5,100 $ 4,897 $ 4,794 $ — $ — $ — Interest cost on projected benefit obligation 26,422 23,804 24,358 237 246 241 Expected return on plan assets (42,560 ) (47,841 ) (42,049 ) — — — Recognized net loss 15,260 11,370 13,943 245 248 146 Additional amount recognized due to curtailment/settlement — — — — 46 305 Net pension benefit cost (income) $ 4,222 $ (7,770 ) $ 1,046 $ 482 $ 540 $ 692 Change in net gain or (loss) 3,295 27,203 (6,607 ) 720 (325 ) 347 Amortization of net loss (15,260 ) (11,370 ) (13,943 ) (245 ) (248 ) (146 ) Total recognized in other comprehensive (loss) income $ (11,965 ) $ 15,833 $ (20,550 ) $ 475 $ (573 ) $ 201 Total recognized in net periodic benefit cost and other comprehensive (loss) income $ (7,743 ) $ 8,063 $ (19,504 ) $ 957 $ (33 ) $ 893 The following tables show the amount of the contributions made to the Qualified Pension Plan and SERP during each period and the amount of contributions the Company expects to make during 2020 : Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Contributions $ — $ 30,000 $ 534 $ 949 Qualified Pension Plan SERP In thousands Expected contributions during 2020 (1) $ 10,000 $ 528 (1) The Company contributed $10.0 million to the qualified pension plan in February 2020 and does not intend to make any further contributions to the qualified pension plan in 2020. 17. PENSION PLANS (CONTINUED) Obligations and Funded Status - continued Expected future benefit payments are as follows: Qualified Pension Plan SERP In thousands 2020 $ 39,368 $ 528 2021 $ 40,664 $ 2,554 2022 $ 41,966 $ 494 2023 $ 43,107 $ 474 2024 $ 44,127 $ 451 2025-2029 $ 225,251 $ 1,863 Mortality is a key assumption in developing actuarial estimates, and therefore could significantly impact the valuation of the Company's obligations under the qualified pension plan and SERP. The Company reviewed the mortality data and based on the size and demographics of the plan's participant population, the Company determined the Pri-2012 Blue Collar with Scale MP-2019 mortality table was the most appropriate assumption. Since 2014, the Company has been using the Financial Times Stock Exchange ("FTSE") Pension Liability Index, as it is deemed to be the most appropriate basis for generating the Company's discount rate assumption, as the future cash flows of the plan are most closely aligned to the Above Median Double-A Curve. The discount rates used in determining benefit obligations of the pension plans are as follows: At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 Discount rate 3.14 % 4.17 % 2.76 % 3.88 % The actuarial assumptions used in determining the net periodic benefit cost of the pension plans are as follows: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 Discount rate 4.17 % 3.50 % 3.88 % 3.15 % Expected return on plan assets 7.50 % 7.50 % N/A N/A Average rate of increase in compensation levels N/A N/A N/A N/A Other The Company utilizes a "spot rate approach" in the calculation of pension interest and service cost. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of pension interest and service cost. 17. PENSION PLANS (CONTINUED) Qualified Pension Plan Assets The expected return on plan assets rate was determined based upon historical returns adjusted for estimated future market fluctuations. For 2019 and 2018 , the expected rate of return on plan assets was 7.5% . During 2019 , the actual return on pension plan assets, net of expenses, was 22.1% . Plan assets are invested in a diversified portfolio consisting of equity and fixed income securities. The investment goals for pension plan assets are to improve and/or maintain the Plan’s funded status by generating long-term asset returns that exceed the rate of growth of the Plan’s liabilities. The Plan invests assets in a manner that seeks to (a) maximize return within reasonable and prudent levels of risk of loss of funded status; and (b) maintain sufficient liquidity to meet benefit payment obligations and other periodic cash flow requirements on a timely basis. The return generation/liability matching asset allocation ratio is currently 43.5%/56.5% . As the plan’s funded status changes, the pension plan’s Administrative Committee (the management committee that is responsible for plan administration) will act through an immediate or gradual process, as appropriate, to reallocate assets. Under the current investment policy, no Investment Manager may invest in investments deemed illiquid by the Investment Manager at the time of purchase, development programs, real estate, mortgages or private equities or securities of Kaman Corporation without prior written authorization from the Pension Administrative Committee. In addition, with the exception of USG securities, managers’ holdings in the securities of any one issuer, at the time of purchase, may not exceed 7.5% of the total market value of that manager’s account. The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Short-term Investments – This investment category consists of cash and cash equivalents and futures and options contracts. Cash and cash equivalents are comprised of investments with maturities of three months or less when purchased, including certain short-term fixed-income securities, and are classified as Level 1 investments. Futures contracts and options contracts requiring the investment managers to receive from or pay to the broker an amount of cash equal to daily fluctuations are included in short-term investments and are classified as Level 2 investments. Corporate Stock – This investment category consists primarily of domestic common stock issued by U.S. corporations. Common shares are traded actively on exchanges and price quotes for these shares are readily available. Holdings of corporate stock are classified as Level 1 investments. Mutual Funds – Mutual funds are traded actively on public exchanges. The share prices for these mutual funds are published at the close of each business day. Holdings of mutual funds are classified as Level 1 investments. Common Trust Funds – Common trust funds are comprised of shares or units in commingled funds that are not publicly traded. The values of the commingled funds are not publicly quoted and must trade through a broker. For equity and fixed-income commingled funds traded through a broker, the fund administrator values the fund using the net asset value (“NAV”) per fund share, derived from the value of the underlying assets. The underlying assets in these funds (equity securities, fixed income securities and commodity-related securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are not subject to leveling. Fixed Income Securities - For fixed income securities, multiple prices and price types are obtained from pricing vendors whenever possible, which enables cross-provider validations. A primary price source is identified based on asset type, class or issue for each security. The fair values of fixed income securities are based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences, and are categorized as Level 2. These securities are primarily investment grade securities. 17. PENSION PLANS (CONTINUED) Qualified Pension Plan Assets - continued The fair values of the Company’s qualified pension plan assets at December 31, 2019 and 2018 , are as follows: Total Carrying Value at December 31, 2019 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Not subject to leveling In thousands Short-term investments: Cash and cash equivalents $ 17,597 $ 17,597 $ — $ — $ — Futures contracts - assets — — — — — Futures contracts - liabilities (1,210 ) — (1,210 ) — — Fixed income securities 195,133 — 195,133 — — Mutual funds 102,423 102,423 — — — Common trust funds (1) 319,932 — — — 319,932 Corporate stock 44,124 44,124 — — — Subtotal $ 677,999 $ 164,144 $ 193,923 $ — $ 319,932 Accrued income/expense 2,143 67 2,021 — 55 Total $ 680,142 $ 164,211 $ 195,944 $ — $ 319,987 Total Carrying Value at December 31, 2018 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Not subject to leveling In thousands Short term investments: Cash and cash equivalents $ 17,752 $ 17,752 $ — $ — $ — Futures contracts - assets 4,023 — 4,023 — — Futures contracts - liabilities — — — — — Fixed income securities 151,895 — 151,895 — — Mutual funds 99,584 99,584 — — — Common trust funds (1) 281,064 — — — 281,064 Corporate stock 34,164 34,164 — — — Subtotal $ 588,482 $ 151,500 $ 155,918 $ — $ 281,064 Accrued income/expense 1,905 113 1,740 — 52 Total $ 590,387 $ 151,613 $ 157,658 $ — $ 281,116 (1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. Derivatives are primarily used to manage risk and gain asset class exposure while still maintaining liquidity. Derivative instruments mainly consist of equity futures and interest rate futures. 17. PENSION PLANS (CONTINUED) Other Plans The Company also maintains a Defined Contribution Plan that has been adopted by most of its U.S. subsidiaries. Employees of the adopting employers who meet the eligibility requirements of the plan may participate. Employer matching contributions are made to the plan based on a percentage of each participant’s pre-tax contribution. For each dollar that a participant contributes, up to 5% of compensation, participating subsidiaries make employer contributions of one dollar. Employer contributions to the plan for continuing operations totaled $7.1 million , $6.8 million and $6.5 million in 2019 , 2018 and 2017 , respectively. Employer contributions to the plan for discontinued operations totaled $4.5 million , $6.3 million and $6.1 million in 2019 , 2018 and 2017 , respectively. One of the Company's foreign subsidiaries maintains a defined benefit plan of its own for its local employees. The net pension liability associated with this plan was not material as of December 31, 2019 and 2018 . |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: At December 31, 2019 2018 In thousands Supplemental employees' retirement plan ("SERP") $ 6,808 $ 6,384 Deferred compensation 20,768 17,885 Long-term incentive plan 10,527 9,821 Noncurrent income taxes payable 3,390 3,371 Environmental remediation liability 5,525 4,610 Finance leases 5,559 6,261 Other 3,838 3,543 Total other long-term liabilities (1) $ 56,415 $ 51,875 (1) Other long-term liabilities attributable to the Company's formerly owned Distribution business were included in liabilities held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. The Company maintains a non-qualified deferred compensation plan for certain of its employees as well as a non-qualified deferred compensation plan for its Board of Directors. Generally, participants in these plans have the ability to defer a certain amount of their compensation, as defined in the agreement. The deferred compensation liability will be paid out either upon retirement or as requested based upon certain terms in the agreements and in accordance with Internal Revenue Code Section 409A. Disclosures regarding the assumptions used in the determination of the SERP liabilities are included in Note 17, Pension Plans . Discussions of our environmental remediation liabilities are in Note 13, Environmental Costs , and Note 19, Commitments and Contingencies . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Asset Retirement Obligations The Company has unrecorded Asset Retirement Obligation’s (“AROs”) that are conditional upon certain events. These AROs generally include the removal and disposition of non-friable asbestos. The Company has not recorded a liability for these conditional AROs at December 31, 2019 , because the Company does not currently believe there is a reasonable basis for estimating a date or range of dates for major renovation or demolition of these facilities. In reaching this conclusion, the Company considered the historical performance of each facility and has taken into account factors such as planned maintenance, asset replacements and upgrades, which, if conducted as in the past, can extend the physical lives of the facilities indefinitely. The Company also considered the possibility of changes in technology and risk of obsolescence in arriving at its conclusion. 19. COMMITMENTS AND CONTINGENCIES (CONTINUED) Asset Retirement Obligations - continued The Company currently leases various properties under leases that give the lessor the right to make the determination as to whether the lessee must return the premises to their original condition, except for normal wear and tear. The Company does not normally make substantial modifications to leased property, and many of the Company's leases either require lessor approval of planned improvements or transfer ownership of such improvements to the lessor at the termination of the lease. Historically the Company has not incurred significant costs to return leased premises to their original condition. Other Matters Pension Freeze Effective December 31, 2015, the Company's qualified pension plan was frozen with respect to future benefit accruals. Under CAS 413 the Company must determine the USG’s share of any pension curtailment adjustment calculated in accordance with CAS. Such adjustments can result in an amount due to the USG for pension plans that are in a surplus position or an amount due to the contractor for plans that are in a deficit position. During the fourth quarter of 2016, the Company accrued a $0.3 million liability representing our estimate of the amount due to the USG based on the Company's pension curtailment adjustment calculation, which was submitted to the USG for review in December 2016. The Company has maintained its accrual at $0.3 million as of December 31, 2019 . There can be no assurance that the ultimate resolution of this matter will not have a material adverse effect on the Company's results of operations, financial position and cash flows. Offset Agreement During January 2018, the Company entered into an offset agreement as a condition to obtaining orders from a foreign customer for the Company's JPF product. This agreement is designed to return economic value to the foreign country by requiring the Company to engage in activities supporting local defense or commercial industries, promoting a balance of trade, developing in-country technology capabilities or addressing other local development priorities. The offset agreement may be satisfied through activities that do not require a direct cash payment, including transferring technology, providing manufacturing, training and other consulting support to in-country projects and the purchase by third parties of supplies from in-country vendors. This agreement may also be satisfied through the Company's use of cash for activities, such as subcontracting with local partners, purchasing supplies from in-country vendors, providing financial support for in-country projects and making investments in local ventures. At December 31, 2019 , the offset agreement had an outstanding notional value of approximately $194.0 million , which is equal to sixty percent of the contract value of $324.0 million as defined by the agreement between the customer and the Company. The amount ultimately applied against the offset agreement is based on negotiations with the customer and may require cash outlays that represent only a fraction of the notional value in the offset agreement. The Company continues to work with the customer to further define the requirements to satisfy the offset agreement. The satisfaction of the offset requirements will be determined by the customer and is expected to occur over a seven-year period. Deliveries under the contract are expected to be completed prior to satisfaction of the offset requirements. In the event the offset requirements of the contract are not met, the Company could be liable for potential penalties up to $16.5 million payable to the customer. The Company began recognizing revenue associated with this contract in the third quarter of 2019 and has considered the potential penalties of $16.5 million as a reduction to the transaction price in its determination of the value of the contract. At the point the Company has an approved plan to satisfy the offset requirements, the Company will include the value of the potential penalties in backlog to the extent those penalties are expected to be offset and begin recognizing revenue on the total contract value. Employee-Related Tax Matter During 2018, the Company identified certain individuals at one of its foreign subsidiaries who were potentially misclassified as self-employed persons performing services for the subsidiary, as opposed to being classified as employees of the subsidiary. The Company investigated the misclassification of these individuals and the potential liability for any associated social contributions, interest and fines and/or penalties as a result of the misclassification. Following the internal investigation, the foreign subsidiary made a voluntary disclosure of the matter to the appropriate legal and regulatory authorities. The Company has accrued $2.5 million , which represents the Company's best estimate of potentially unpaid social security contributions, related interest and possible penalties. There can be no assurance that the ultimate resolution of this matter will not have a material adverse effect on the Company's results of operations, financial position and cash flows. 19. COMMITMENTS AND CONTINGENCIES (CONTINUED) Other Matters - continued New Hartford In connection with sale of the Company’s Music segment in 2007, the Company assumed responsibility for meeting certain requirements of the Transfer Act that applied to our transfer of the New Hartford, Connecticut, facility leased by that segment for guitar manufacturing purposes (“Ovation”). Under the Transfer Act, those responsibilities essentially consist of assessing the site's environmental conditions and remediating environmental impairments, if any, caused by Ovation's operations prior to the sale. The site is a multi-tenant industrial park, in which Ovation and other unrelated entities lease space. The environmental assessment, which began in 2008, has been completed and site remediation is in process. The Company's estimate of its portion of the cost to assess the environmental conditions and remediate this site is $2.3 million , all of which has been accrued. The total amount paid to date in connection with these environmental remediation activities is $1.6 million . At December 31, 2019 , the Company had $0.7 million accrued for these environmental remediation activities. A portion ( $0.1 million ) of the accrual related to this property is included in other current liabilities and the balance is included in other long-term liabilities. The remaining balance of the accrual reflects the total anticipated cost of completing these environmental remediation activities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. Bloomfield In connection with the Company’s 2008 purchase of the portion of the Bloomfield campus that Kaman Aerospace Corporation had leased from NAVAIR, the Company assumed responsibility for environmental remediation at the facility as may be required under the Transfer Act and is currently remediating the property under the guidance of the CTDEP. The assumed environmental liability of $10.3 million was determined by taking the undiscounted estimated remediation liability of $20.8 million and discounting it at a rate of 8% . This remediation process will take many years to complete. The total amount paid to date in connection with these environmental remediation activities is $14.3 million . At December 31, 2019 , the Company had $2.0 million accrued for these environmental remediation activities. A portion ( $0.2 million ) of the accrual related to this property is included in other current liabilities, and the balance is included in other long-term liabilities. Although it is reasonably possible that additional costs will be paid in connection with the resolution of this matter, the Company is unable to estimate the amount of such additional costs, if any, at this time. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 20. LEASES The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings at varying dates from January 2020 to December 2024. The terms of most of these leases are in the range of 3 to 8 years, with certain leases renewable for varying periods. It is expected that in the normal course of business leases that expire will be renewed or replaced by leases on other similar property. Some of the Company's lease obligations have rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The terms for most machinery and equipment leases range from 3 to 5 years. The Company's finance leases consist of assets purchased under the Company's master leasing agreement. The terms of these leases are 5 years. These assets are included in machinery, office furniture and equipment and construction in process and amortization of these assets is included in depreciation and amortization expense. At December 31, 2019 , $8.2 million of assets included in property, plant and equipment were accounted for as finance leases purchased under the Company's master leasing agreement. At December 31, 2019, the Company had accumulated depreciation of $2.4 million associated with these assets. Additionally, $2.7 million of assets purchased under the Company's master leasing agreement were included in construction in process in property, plant and equipment, net of accumulated depreciation. At December 31, 2018, $10.8 million of assets purchased under the Company's master leasing agreement and accounted for as capital leases were included in property, plant and equipment, with accum ulated depreciation of $1.5 million . Finance leases (capital leases at December 31, 2018) of the Company's formerly owned Distribution business were included in assets held for sale, noncurrent portion on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. 20. LEASES (CONTINUED) At the commencement date of a contract containing a lease, a right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments upon entering into a lease agreement. Right-of-use assets, net consisted of the following: Classification December 31, 2019 (1) In thousands Assets Operating lease right of use assets Operating lease right-of-use assets, net $ 15,159 Finance lease right of use assets Property, plant and equipment, net of accumulated depreciation 5,840 Total leased assets $ 20,999 (1) The Company elected the modified retrospective transition method that applies ASC 842 as of January 1, 2019. See Note 1, Summary of Significant Accounting Policies , for further information on the adoption of ASC 842. The lease liability and future rental payments are required under leases that have initial or remaining non-cancellable lease terms in excess of one year as of December 31, 2019. Lease liabilities consisted of the following: Classification December 31, 2019 December 31, In thousands Liabilities Current Operating lease liability, current portion Operating lease liabilities, current portion $ 4,306 $ — Finance lease liability, current portion Other current liabilities 1,838 1,803 Noncurrent Operating lease liability, noncurrent portion Operating lease liabilities, noncurrent portion 11,617 — Finance lease liability, noncurrent portion Other long-term liabilities 5,559 6,260 Total lease liabilities (1) $ 23,320 $ 8,063 (1) Lease liabilities of the Company's formerly owned Distribution business were included in liabilities held for sale as of December 31, 2018 on the Company's Condensed Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. 20. LEASES (CONTINUED) Future rental payments for continuing operations consisted of the following: December 31, 2019 In thousands Operating leases 2020 $ 5,164 2021 4,095 2022 3,285 2023 2,728 2024 2,059 Thereafter — Total future operating lease payments $ 17,331 Interest (1,408 ) Present value of future operating lease payments $ 15,923 Finance leases 2020 2,114 2021 1,965 2022 1,705 2023 1,189 2024 703 Thereafter — Total future finance lease payments $ 7,676 Interest (279 ) Present value of future finance lease payments $ 7,397 Present value of total future lease payments $ 23,320 Prior to the adoption of ASC 842, operating lease payments on an undiscounted basis for continuing operations were approximately $20.7 million and were payable as follows: $4.8 million in 2019, $4.5 million in 2020, $3.7 million in 2021, $3.1 million in 2022, $2.6 million in 2023 and $2.0 million thereafter. Prior to the adoption of ASC 842, finance lease payments (capital lease payments under ASC 840) on an undiscounted basis for continuing operations were approximately $8.1 million and were payable as follows: $1.8 million in 2019, $1.8 million in 2020, 1.7 million in 2021, $1.5 million in 2022, $1.0 million in 2023 and $0.3 million thereafter. The following table illustrates the components of lease expense for the Company's leases. For the Year Ended December 31, 2019 In thousands Finance lease cost Amortization of right-of-use assets $ 941 Interest on lease liabilities 297 Operating lease cost 5,064 Short-term lease cost 177 Variable lease cost 83 Total lease expense (1) $ 6,562 (1) Lease expense of the Company's formerly owned Distribution business was included in discontinued operations on the Company's Condensed Consolidated Statement of Operations. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. 20. LEASES (CONTINUED) The following table segregates cash paid for the Company's leases from continuing operations. December 31, 2019 In thousands Operating cash flows from operating leases $ (4,950 ) Operating cash flows from finance leases (1,609 ) Financing cash flows from finance leases (297 ) Total cash flows from leasing activities (1) $ (6,856 ) ( 1) Cash flows from leasing activities of the Company's formerly owned Distribution businesst was included in discontinued operations on the Company's Condensed Consolidated Statement of Cash Flows. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. During the twelve-month fiscal period ended December 31, 2019, $1.4 million and $1.5 million in right-of-use assets were obtained in exchange for new operating lease liabilities and finance lease liabilities, respectively. Other information related to leases is as follows: December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.11 Finance leases 3.30 Weighted-average discount rate Operating leases 4.32 % Finance leases 4.04 % |
Computation of Earnings Per Sha
Computation of Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings Per Share | COMPUTATION OF EARNINGS PER SHARE The computation of basic earnings per share is based on net earnings divided by the weighted average number of shares of common stock outstanding for each year. The computation of diluted earnings per share includes the common stock equivalency of dilutive options granted to employees under the Company's stock incentive plan and shares issuable on redemption of its Convertible Notes. For the Year Ended December 31, 2019 2018 2017 In thousands, except per share amounts Earnings from continuing operations $ 56,446 $ 15,877 $ 19,708 Total earnings from discontinued operations 153,383 38,292 30,118 Net earnings $ 209,829 $ 54,169 $ 49,826 Basic: Weighted average number of shares outstanding 27,936 27,945 27,611 Earnings per share from continuing operations $ 2.02 $ 0.57 $ 0.71 Earnings per share from discontinued operations 5.49 1.37 1.09 Basic earnings per share $ 7.51 $ 1.94 $ 1.80 Diluted: Weighted average number of shares outstanding 27,936 27,945 27,611 Weighted average shares issuable on exercise of dilutive stock options 156 208 160 Weighted average shares issuable on exercise of convertible notes — 37 466 Weighted average shares issuable on redemption of warrants related to 2017 Notes — 33 181 Total 28,092 28,223 28,418 Earnings per share from continuing operations $ 2.01 $ 0.56 $ 0.69 Earnings per share from discontinued operations 5.46 1.36 1.06 Diluted earnings per share $ 7.47 $ 1.92 $ 1.75 Equity awards Excluded from the diluted earnings per share calculation for the years ended December 31, 2019 , 2018 and 2017 , respectively, are 339,961 , 186,115 and 245,361 shares associated with equity awards granted to employees that are anti-dilutive based on the average stock price. 2017 Convertible Notes For the years ended December 31, 2019 and 2018 , there were no shares issuable under the 2017 Notes. For the year ended December 31, 2017 , shares issuable under the 2017 Notes that were dilutive during the period were included in the calculation of earnings per share as the conversion price for the Convertible Notes was less than the average share price of the Company's stock. 2024 Convertible Notes For the years ended December 31, 2019 , 2018 and 2017 , shares issuable under the 2024 Notes were excluded from the calculation of diluted earnings per share as the conversion price for the Convertible Notes was more than the average share price of the Company's stock. 21. COMPUTATION OF EARNINGS PER SHARE (CONTINUED) Warrants For the years ended December 31, 2019 , 2018 , and 2017 shares issuable under the warrants sold in connection with the Company’s 2017 Convertible Note offering were included in the calculation of diluted earnings per share as the strike price of the warrants was less than the average share price of the Company’s stock. For further information on the Convertible Notes, see Note 14, Debt . |
Share-Based Arrangements
Share-Based Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Arrangements | SHARE-BASED ARRANGEMENTS General The Company accounts for stock options, restricted stock awards, restricted stock units and performance shares as equity awards and measures the cost of all share-based payments, including stock options, at fair value on the grant date and recognizes this cost in the statement of operations. The Company also has an employee stock purchase plan which is accounted for as a liability award. Compensation expense for stock options, restricted stock awards and restricted stock units is recognized on a straight-line basis over the vesting period of the awards. Share-based compensation expense recorded for continuing operations for the years ended December 31, 2019 , 2018 and 2017 was $4.7 million , $5.5 million and $4.9 million , respectively. These amounts were included in selling, general and administrative expenses on the Company's Consolidated Statements of Operations. Share-based compensation expense for discontinued operations for the year ended December 31, 2019 was $2.9 million . Of this amount, $0.5 million was included in earnings from discontinued operations, net of tax on the Company's Consolidated Statements of Operations. As a result of the Company selling its Distribution business, the vesting dates of all outstanding unvested stock options and restricted stock awards for Distribution employees were accelerated to vest on the closing date. These stock options and awards would not have vested prior to the closing date; therefore, the related stock-based compensation expense previously recognized through the modification date of $0.4 million was reduced to zero and a new fair value of the options and awards was established on the date the Company entered the definitive agreement to sell the Distribution business. The expense of $2.8 million was recognized ratably from the date of signing the definitive agreement to the closing date of the sale. The amount included in the gain on disposal of discontinued operations, net of tax attributable to the acceleration and modification of these awards was $2.4 million for the year ended December 31, 2019. Share-based compensation expense recorded for discontinued operations for the years ended December 31, 2018 and 2017 was $1.0 million and $1.1 million , respectively. These amounts were included in earnings from discontinued operations, net of tax on the Company's Consolidated Statement of Operations. Stock Incentive Plan On April 17, 2013, the shareholders of the Company approved the 2013 Management Incentive Plan (the "2013 Plan"), which replaced the 2003 Stock Incentive Plan. The 2013 Plan was designed as a flexible share authorization plan, such that the Company's share authorization is based on the least costly type of award (stock options). Shares issued pursuant to “Full Value Awards” as defined in the 2013 Plan (awards other than stock options or stock appreciation rights which are settled by the issuance of shares, e.g., restricted stock, restricted stock units, performance shares, performance units if settled with stock, or other stock-based awards) count against the 2013 Plan's share authorization at a rate of 3 to 1 , while shares issued upon exercise of stock options or stock appreciation rights count against the share authorization at a rate of 1 to 1. This means that every time an option is granted, the authorized pool of shares is reduced by one (1) share and every time a Full Value Award is granted, the authorized pool of shares is reduced by 3 shares. In deriving the valuation ratio used in the 2013 Plan, the Company used the Black Scholes Fair Value model as the basis for determining the approximate value of an option as compared to a "full value share." The 2013 Plan provided the Company with the ability to use equity-based awards of up to 2,250,000 authorized shares. On April 18, 2018, the shareholders of the Company approved the amendment and restatement of the 2013 Plan, which increased the number of authorized shares by 2,250,000 shares. As of December 31, 2019 , there were 2,199,160 shares available for grant under the plan. 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan - continued LTIP awards provide certain senior executives an opportunity to receive award payments in either stock or cash as determined by the Compensation Committee of the Board of Directors in accordance with the Plan, at the end of each performance cycle. Prior to 2018, performance was based on the Company’s financial results compared to the Russell 2000 indices for the same periods based upon the following metrics: (a) average return on total capital, (b) average earnings per share growth and (c) total return to shareholders for the performance period. Beginning in 2018, the performance metrics were changed to the following: (a) average return on total capital and (b) total return to shareholders, both compared to the Russell 2000 indices for the same performance period. No awards will be payable if the Company’s performance is below the 25th percentile. The maximum award is payable if performance reaches the 75 th percentile of the designated indices. Awards are paid out at 100% at the 50 th percentile. Awards for performance between the 25 th and 75 th percentiles are determined by straight-line interpolation between 0% and 200% . Generally, LTIP awards are paid in cash. Stock options are granted with an exercise price equal to the average market price of our stock at the date of grant. Stock options and Stock Appreciation Rights ("SARs") granted under the plan generally expire ten years from the date of grant and vest 20% each year over a 5 -year period on each of the first five anniversaries of the date of grant. Restricted Stock Awards ("RSAs") are generally granted with restrictions that lapse at the rate of 20% per year over a 5 -year period on each of the first five anniversaries of the date of grant. Generally, these awards are subject to forfeiture if a recipient separates from service with the Company. From time-to-time, the Company has issued stock awards with market and performance based conditions. Throughout the course of the requisite service period, the Company monitors the level of achievement compared to the target and adjusts the number of shares expected to be earned, and the related compensation expense recorded thereafter, to reflect the most probable outcome. The number of shares earned under an award granted in 2016 has been determined at a 130% achievement level, representing 925 shares delivered in 2019. The number of shares were pro-rated to reflect the number of days the participant was employed by the Company during the performance period. There are no outstanding awards with these conditions that have not been settled. Compensation expense for these awards for the years ended December 31, 2019 , 2018 and 2017 , was not material. Stock option activity is as follows: Options Weighted average- exercise price Options outstanding at December 31, 2018 935,252 $ 45.91 Granted 194,470 61.02 Exercised (373,015 ) 45.68 Forfeited or expired (20,343 ) 58.41 Options outstanding at December 31, 2019 736,364 $ 49.67 The following table presents information regarding options outstanding as of December 31, 2019 : Weighted-average remaining contractual term - options outstanding (years) 6.2 Aggregate intrinsic value - options outstanding (in thousands) $ 12,171 Weighted-average exercise price - options outstanding $ 49.67 Options exercisable 312,121 Weighted-average remaining contractual term - options exercisable (years) 4.5 Aggregate intrinsic value - options exercisable (in thousands) $ 7,672 Weighted-average exercise price - options exercisable $ 41.62 The intrinsic value represents the amount by which the market price of the stock on the measurement date exceeds the exercise price of the option. The intrinsic value of options exercised in 2019 , 2018 and 2017 was $6.2 million , $5.2 million and $3.9 million , respectively. The Company currently has an open stock repurchase plan, which would enable the Company to repurchase shares as needed. Since 2008 the Company has generally issued shares related to option exercises and RSAs from its authorized but unissued common stock. 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan - continued The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: 2019 2018 2017 Expected option term (years) 4.9 4.9 5.0 Expected volatility 19.4 % 18.1 % 19.9 % Risk-free interest rate 2.5 % 2.6 % 1.9 % Expected dividend yield 1.3 % 1.5 % 1.6 % Per share fair value of options granted $ 11.18 $ 10.65 $ 8.61 The expected term of options granted represents the period of time option grants are expected to be outstanding based upon historical exercise patterns. Forfeitures of options are estimated based upon historical data and are adjusted based upon actual occurrences. The cumulative effect of stock award forfeitures was immaterial. The volatility assumption is based on the historical daily price data of the Company’s stock over a period equivalent to the weighted-average expected term of the options. Management evaluated whether there were factors during that period that were unusual and would distort the volatility figure if used to estimate future volatility and concluded that there were no such factors. The Company relies only on historical volatility since future volatility is expected to be consistent with historical volatility. The risk-free interest rate assumption is based upon the interpolation of various U.S. Treasury rates determined at the date of option grant. Expected dividends are based upon a historical analysis of our dividend yield over the past year. Restricted Stock Award and Restricted Stock Unit activity is as follows: Restricted Stock Awards Weighted- average grant date fair value Restricted Stock outstanding at December 31, 2018 143,697 $ 49.97 Granted 63,804 60.86 Vested (108,517 ) 52.81 Forfeited or expired (6,184 ) 57.62 Restricted Stock outstanding at December 31, 2019 92,800 $ 53.63 The grant date fair value for restricted stock is the average market price of the unrestricted shares on the date of grant. The total fair value of restricted stock awards vested during 2019 , 2018 and 2017 was $6.5 million , $3.6 million and $5.7 million , respectively. The Company records a tax benefit and associated deferred tax asset for compensation expense recognized on non-qualified stock options and restricted stock for which the Company is allowed a tax deduction. For 2019 , 2018 and 2017 , respectively, the Company recorded a tax benefit of $1.6 million , $1.4 million and $2.0 million for these two types of compensation expense. As of December 31, 2019 , future compensation costs related to non-vested stock options and restricted stock grants is $4.1 million . The Company anticipates that this cost will be recognized over a weighted-average period of 3.1 years. Employees Stock Purchase Plan The Kaman Corporation Employees Stock Purchase Plan (“ESPP”) allows employees to purchase common stock of the Company, through payroll deductions, at 85% of the market value of shares at the time of purchase. The plan provides for the grant of rights to employees to purchase a maximum of 2,000,000 shares of common stock. During 2019 , 60,997 shares were issued to employees at prices ranging from $55.61 to $63.69 . During 2018 , 59,082 shares were issued to employees at prices ranging from $56.86 to $72.15 . During 2017 , 63,874 shares were issued to employees at prices ranging from $46.79 to $57.27 . At December 31, 2019 , there were 551,112 shares available for purchase under the plan. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 3, 2020, the Company announced that it had completed the acquisition of Bal Seal Engineering Inc. ("Bal Seal"), at a purchase price of approximately $331.0 million , subject to working capital adjustments. Bal Seal is a leader in the design, development, and manufacturing of highly engineered products including precision springs, seals and contacts. Bal Seal has an established global presence, with manufacturing facilities across the United States and sales representation in the United States, Europe and Asia. In the year ended December 31, 2019, the Company incurred $4.0 million in acquisition costs associated with the acquisition of Bal Seal, which was included in selling, general and administrative expenses on the Company's Consolidated Statements of Operations. The Company is currently performing procedures to determine the purchase price allocation and estimating the fair value of tangible and intangible assets acquired and liabilities assumed in connection with the Bal Seal acquisition. The initial fair value estimates will be recorded in the first quarter of 2020. The Company has evaluated subsequent events through the issuance date of these financial statements. Other than the matter noted above, no material subsequent events were identified that require disclosure. |
Schedule II (Notes)
Schedule II (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | KAMAN CORPORATION AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2019 , 2018 AND 2017 (Dollars in Thousands) Additions DESCRIPTION Balance Beginning of Period Charged to Costs and Expenses Others (A) Deductions (B) Balance End of Period 2019 Allowance for doubtful accounts $ 2,498 $ 788 $ — $ 2,040 $ 1,246 2018 Allowance for doubtful accounts $ 2,181 $ 767 $ — $ 450 $ 2,498 2017 Allowance for doubtful accounts $ 2,282 $ 746 $ — $ 847 $ 2,181 (A) Additions to allowance for doubtful accounts attributable to acquisitions. (B) Recoveries and write-off of bad debts. Additions (Reductions) DESCRIPTION Balance Beginning of Period Current Year Provision (Benefit) Others Balance End of Period 2019 Valuation allowance on deferred tax assets $ 8,243 $ 2,046 $ (2,147 ) $ 8,142 2018 Valuation allowance on deferred tax assets $ 4,944 $ 3,472 $ (173 ) $ 8,243 2017 Valuation allowance on deferred tax assets $ 3,831 $ 772 $ 341 $ 4,944 (a)(3) EXHIBITS. Page Number in Form 10-K An index to the exhibits filed or incorporated by reference immediately precedes such exhibits. 130 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior year financial statements and notes thereto have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include the carrying amount of property, plant and equipment, goodwill and other intangible assets; valuation allowances for receivables, inventories and income taxes; valuation of share-based compensation; assets and obligations related to employee benefits; and accounting for long-term contracts including claims. Actual results could differ from those estimates. |
Foreign Currency Translations | Foreign Currency Translation The Company has certain operations outside the United States that prepare financial statements in currencies other than the U.S. dollar. For these operations, results of operations and cash flows are translated using the average exchange rate throughout the period. Assets and liabilities are generally translated at end of period rates. The gains and losses associated with these translation adjustments are included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The carrying amounts of these items, as well as trade accounts payable and notes payable, approximate fair value due to the short-term maturity of these instruments. At December 31, 2019 , one individual customer accounted for more than 10% of consolidated accounts receivable. At December 31, 2018 , two individual customers accounted for more than 10% of consolidated accounts receivable. In the year ended December 31, 2019 , three individual customers, the U.S. Government, The Boeing Company and a JPF DCS customer, accounted for more than 10% of consolidated net sales. In the year ended December 31, 2018 , two individual customers, the U.S. Government and The Boeing Company, accounted for more than 10% of consolidated net sales. Foreign sales were approximately 44.4% , 37.9% and 44.5% of the Company’s net sales in 2019 , 2018 and 2017 , respectively, and are concentrated in the United Kingdom, Germany, Canada, France, Switzerland, New Zealand, the Middle East and Asia. |
Additional Cash Flow Information | Additional Cash Flow Information Non-cash investing activities in 2019 include an accrual of $0.8 million for purchases of property and equipment (including finance lease obligations), $4.0 million in working capital adjustments associated with the sale of the Distribution business and the write-off of the $4.0 million note receivable associated with the sale of the U.K. Tooling business as it was deemed not likely to be collected. Additionally, in 2019 , the Company repurchased a K-MAX® aircraft from a customer who was simultaneously purchasing a new aircraft to support the development of the Company's unmanned aircraft system. The repurchased aircraft was used to settle a portion ( $3.1 million ) of the purchase price on the customer's new K-MAX® aircraft. Non-cash financing activities in 2019 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans. The total net adjustment was $8.9 million , net of tax of $2.6 million . Additionally, non-cash financing activities in 2019 include $5.6 million of dividends declared but not yet paid and an accrual of $1.7 million for purchases of treasury shares. Non-cash investing activities in 2018 include an accrual of $2.9 million for purchases of property and equipment (including capital lease obligations) and a note receivable with a present value of $2.5 million for the amounts to be collected associated with the sale of the U.K. Tooling business. Non-cash financing activities in 2018 include 114,778 common shares issued for the unwind of warrant transactions associated with the 2017 Notes during the first half of 2018 that had a value of approximately $7.6 million . Other non-cash financing activities in 2018 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans and changes in the fair value of derivative financial instruments that qualified for hedge accounting. The total net adjustment was $11.6 million , net of tax of $3.7 million . Additionally, non-cash financing activities in 2018 include $5.6 million of dividends declared but not yet paid. Non-cash investing activities in 2017 include an accrual of $3.6 million for purchases of property and equipment (including capital lease obligations). Non-cash financing activities in 2017 include 624,044 common shares issued for the partial unwind of warrant transactions during the second quarter of 2017 that had a value of approximately $30.3 million , the receipt of of 136,369 shares with an approximate value of $7.5 million to unwind the remaining bond hedge transactions during the fourth quarter of 2017 and the issuance to bond holders of 136,347 shares with an approximate value of $7.5 million upon conversion of the remaining 2017 Notes. Other non-cash financing activities in 2017 include an adjustment to other comprehensive income related to the underfunding of the pension and SERP plans and changes in the fair value of derivative financial instruments that qualified for hedge accounting. The total net adjustment was $12.7 million , net of tax of $7.7 million . Additionally, non-cash financing activities in 2017 include $5.6 million of dividends declared but not yet paid. The Company describes its pension obligations in more detail in Note 17, Pension Plans . The Company describes the convertible notes transactions in more detail in Note 14, Debt. |
Revenue Recognition | Revenue Recognition Under Accounting Standard Codification ("ASC") 606, the amount of revenue recognized for any goods or services reflects the consideration that the Company expects to be entitled to receive in exchange for these goods or services. To achieve this core principle, the Company applies the following five step approach: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as a performance obligation is satisfied. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued A contract is accounted for when there has been approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance obligations under a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct and are distinct in the context of the contract. In certain instances, the Company has concluded distinct goods or services should be accounted for as a single performance obligation when they are a series of distinct goods or services that have the same pattern of transfer to the customer. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether the customer can benefit from the goods or services either on their own or together with other resources that are readily available to the customer (the goods or services are distinct) and if the promise to transfer the goods or services to the customer is separately identifiable from other promises in the contract (the goods or services are distinct in the context of the contract). If these criteria are not met, the promised services are accounted for as a single performance obligation. The transaction price is determined based on the consideration that the Company will be entitled to in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price, generally utilizing the most likely amount method. Determining the transaction price requires significant judgment. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. Standalone selling price is determined by the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price by taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Performance obligations are satisfied either over time or at a point in time as discussed in further detail below. In addition, the Company's contracts with customers generally do not include significant financing components or non-cash consideration. In certain instances, the Company has accounted for contracts using the portfolio approach, a practical expedient permissible under the standard. The determination of when the use of the portfolio approach is appropriate requires judgment from management based on consideration of all the facts and circumstances. The Company uses the portfolio approach when the effect of accounting for a group of contracts or a group of performance obligations would not differ materially from considering each contract or performance obligation separately. This determination requires the use of estimates and assumptions that reflect the size and composition of the portfolio. The Company primarily uses the portfolio approach for its commercial and defense bearings and structures businesses. The Company's primary criteria considered when using the portfolio approach is the commonality of economic factors, which generally follow the product type based on consistent production costs and standard pricing for the products. The majority of long-term contracts were historically accounted for under the percentage-of-completion method using units-of-delivery as a measurement basis. Many of these contracts moved to an over time revenue model under ASC 606. For example, revenue for the Company's Joint Programmable Fuze ("JPF") program with the U.S. Government ("USG") moved from percentage-of-completion using units-of-delivery as the measurement basis to the over time revenue recognition model using input costs as the basis for recognizing progress to completion. Conversely, revenue for the K-MAX® program moved from cost-to-cost revenue recognition under percentage-of-completion accounting to the point-in-time method, with revenue on these aircraft being recognized upon acceptance by the end customer. For certain programs, early-contract unit costs in excess of the average expected cost over the life of the contract and contractually recoverable general and administrative costs were previously capitalized and amortized over the period of performance of the contract. With the adoption of ASC 606, $32.5 million of previously capitalized deferred costs in excess of the contract average and previously contractually recoverable general and administrative costs were adjusted within the cumulative effect to retained earnings and have not been amortized into earnings after January 1, 2018. To determine the appropriate revenue recognition model for long-term contracts, the Company evaluates whether a contract exists, considering whether multiple contracts should be combined as one single contract and then whether the contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment, as these decisions could change the amount of revenue and profit recorded in a given period. For certain programs, the Company may promise to provide distinct goods or services within a contract, in which case these are separated into more than one performance obligation. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued For certain programs, the Company recognizes revenue over time because of continuous transfer of control to the customer. For USG contracts, this continuous transfer of control to the customer is supported by clauses in the contract that provide lien rights to the customer over the work in progress, thereby control transfers as costs are incurred. For non-USG contracts, the customer typically controls the work in progress because the Company is producing products that do not have an alternative use to the Company and where contractual termination clauses provide the Company rights to payment for work performed to date plus a reasonable profit. Revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because it best depicts the transfer of assets to the customer which occurs as cost is incurred under the contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues, including estimated fees or profits, are recorded proportionally as costs are incurred. Total estimated contract costs generally include labor, materials and subcontractors’ costs, other direct costs and related overhead costs. These estimates also include the estimated cost of satisfying offset obligations, as required under certain contracts. The complexity of certain programs as well as technical risks and uncertainty as to the future availability of materials and labor resources could affect the Company’s ability to accurately estimate future contract costs. For contracts that recognize revenue over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g. the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized a reduction in revenue of $4.6 million in the year ended December 31, 2019 . This decrease was primarily related to cost growth on the SH-2G program with Peru, a certain legacy fuzing contract and certain structures contracts, partially offset by favorable cost performance on the JPF contract with the USG. The amount of revenue recognized in the year ended December 31, 2018 from performance obligations satisfied (or partially satisfied) in previous periods was $6.7 million . This amount was primarily related to changes in the estimates of the stages of completion of certain contracts, more specifically the JPF contract with the USG and the AH-1Z contract. For the year ended December 31, 2017 , the net increase in our operating income from changes in contract estimates totaled $5.7 million . The increase in 2017 was primarily a result of improved performance on the AH-1Z program, the JPF program with the USG and the SH-2G program with Peru. These improvements were partially offset by cost growth on the K-MAX® and A-10 programs. Due to the nature of the work required to be performed on many of the Company's performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. From time-to-time the Company enters into long-term contracts with the USG and other customers that contain award fees, incentive fees or other provisions that can either increase or decrease the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. The Company estimates variable consideration at the most likely amount to which it expects to be entitled. Estimated amounts are included in the transaction price 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. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company's anticipated performance and all information (historical, current and forecasted) that is reasonably available. The Company does not include financing components as variable consideration if less than one year. At December 31, 2019 , the Company did not have any significant financing components. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition - continued Contracts are often modified to account for changes in contract specifications and requirements. The Company considers contract modifications to exist when the modification either creates new or makes changes to the existing enforceable rights and obligations. Contract modifications for goods or services that are not distinct from the existing contract are accounted for as if they were part of that existing contract. In these cases, the effect of the contract modification on the transaction price and the measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis, except when such modifications relate to a performance obligation that is a series of substantially the same distinct goods or services. If the modification relates to a performance obligation for a series of substantially the same distinct goods or services, the modification is treated prospectively. Contract modifications for goods or services that are considered distinct from the existing contract are accounted for as separate contracts. The Company applied the practical expedient for any contracts that were modified prior to January 1, 2018; therefore, the contracts were not restated retrospectively for those modifications. For other contracts, excluding the long-term contracts discussed above, the method of revenue recognition remained substantially the same under ASC 606. For these contracts, revenue is primarily recognized at the point in time when the title transfers to the customer, as this is when the performance obligation is controlled by the customer. Additionally, a small percentage of revenue related to certain contracts for repairs and overhauls is accounted for over time under ASC 606. Under these contracts, revenue is generally recognized as work is performed in proportion to the actual costs incurred as compared to total estimated contract costs. |
Cost of Sales and Selling, General and Administrative Expenses | Cost of Sales and Selling, General and Administrative Expenses Cost of sales includes costs of products and services sold (i.e., purchased product, raw material, direct labor, engineering labor, outbound freight charges, depreciation and amortization, indirect costs and overhead charges). Selling expenses primarily consist of advertising, promotion, bid and proposal, employee payroll and corresponding benefits and commissions paid to sales and marketing personnel. General and administrative expenses primarily consist of employee payroll including executive, administrative and financial personnel and corresponding benefits, incentive compensation, independent research and development, consulting expenses, warehousing costs, depreciation and amortization. Legal costs are expensed as incurred and are generally included in general and administrative expenses. The Company previously included general and administrative expenses as an element of program cost and inventory for certain government contracts prior to the adoption of ASC 606. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and short-term cash investments. These investments are liquid in nature and have original maturities of three months or less. The Company's cash and cash equivalents at December 31, 2019 included $443.2 million of Level 1 (quoted prices in active markets for identical assets or liabilities) money market funds. Bank overdraft positions, which occur when total outstanding issued checks exceed available cash balances at a single financial institution at the end of a reporting period, are reclassified to other current liabilities within the consolidated balance sheets. At December 31, 2019 and 2018 , the Company had bank overdrafts of $1.6 million and $0.7 million , respectively, included in other current liabilities. |
Accounts Receivable | Accounts Receivable The Company has three types of accounts receivable: (a) Trade receivables, which consist of amounts billed and currently due from customers; (b) USG contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed; and (c) Commercial and other government contracts, which consist of (1) amounts billed, and (2) costs and accrued profit – not billed. The Company's receivables, net, consist of amounts billed and currently due from customers. The amounts due are stated at their net estimated realizable value. The allowance for doubtful accounts reflects management’s best estimate of probable losses inherent in the trade accounts receivable and billed contracts balance. Management determines the allowance based on known troubled accounts, historical experience and other currently available evidence. |
Contract with Customer, Asset | Contract Assets The Company's contract assets include unbilled amounts typically resulting from sales under long-term contracts when the cost-to-cost method of revenue recognition is applied and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts do not exceed their net realizable value. Contract assets are generally classified as current as such amounts are billable and collectible within twelve months. |
Capitalized Contract Cost | Contract Costs Contract costs consist of costs to obtain and fulfill a contract. Costs to fulfill a contract primarily consist of nonrecurring engineering costs incurred at the start of a new program for which such costs are expected to be recovered under existing and future contracts. Such costs are amortized over the estimated revenue amount of the contract. Costs to obtain a contract consist of commissions and agent fees paid in connection with the award of a contract. If these costs are determined to have an amortization period of less than one year, the Company applies the practical expedient and the related costs are expensed as incurred. If the amortization period is determined to be greater than a year and the incremental costs to obtaining the contract qualify as an asset, then the contract costs are recorded and amortized over the estimated contract revenue. |
Inventories | Inventories The Company has the following types of inventory: (a) raw materials, (b) contracts in process and other work in process, and (c) finished goods. Raw material includes certain general stock materials but primarily relates to purchases that were made in anticipation of specific programs for which production has not been started as of the balance sheet date. Raw materials are stated at the lower of the cost of the inventory or its fair market value. Contracts in process and other work in process and finished goods are valued at production cost represented by raw material, labor and overhead. Contracts in process and other work in process and finished goods are not reported at amounts in excess of net realizable values. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at cost. Depreciation is computed primarily on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives for buildings generally range from 15 to 40 years and for leasehold improvements range from 1 to 20 years, whereas machinery, office furniture and equipment generally have useful lives ranging from 3 to 15 years. At the time of retirement or disposal, the acquisition cost of the asset and related accumulated depreciation are eliminated and any gain or loss is credited to or charged against income. Long-lived assets, such as property, plant and equipment and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Maintenance and repair items are charged against income as incurred, whereas renewals and betterments are capitalized and depreciated. Leasing On January 1, 2019, the Company adopted ASC 842, Leases. Under ASC 842, the Company determines if a contract contains a lease at the inception date of the contract. To determine if the contract contains a lease, the Company evaluates if there is an identified asset in the contract and if the Company has control over the use of the identified asset. There is an identified asset in the contract if the asset is explicitly or implicitly specified in the contract, the asset is physically distinct or the Company has the right to receive substantially all of the asset's capacity, and if the supplier does not have substantive substitution rights. The Company has control over the use of the identified asset if the Company obtains substantially all economic benefits from the use of the asset and can direct the use of the asset. The Company applied the practical expedient for any contracts that existed prior to January 1, 2019; therefore, the contracts were not reassessed to determine if they contain leases. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leasing - continued The Company must classify each lease as a finance lease or operating lease. A lease is classified as a finance lease if the Company will own the asset by the end of the lease term, the Company is reasonably certain to exercise the purchase option, the lease term covers a major part of the asset's economic life, the sum of the present value of the lease payments and the present value of the residual value guarantee not included in the lease payments equal or exceed substantially all of the fair value of the underlying asset at lease commencement or if the lessor has no alternative use for the asset. If any of these criteria are not met, the lease is classified as an operating lease. The Company applied the practical expedient for any leases that existed prior to January 1, 2019; therefore, the lease classifications of existing leases were not reassessed (all existing leases classified as operating leases under ASC 840 were classified as operating leases under ASC 842 on January 1, 2019 and all existing leases classified as capital leases under ASC 840 were classified as finance leases under ASC 842 on January 1, 2019). The Company's operating leases consist of rent commitments under various leases for office space, warehouses, land and buildings at varying dates from January 2020 to December 2024. The terms of most of these leases are in the range of 3 to 8 years, with certain leases renewable for varying periods and certain leases including options to terminate the leases. While some of the Company's leases include options allowing early termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial or business reason to do so. It is expected that in the normal course of business leases that expire will be renewed or replaced by leases on other similar property. Some of the Company's leases have fixed amount rent escalations or contingent rent that are recognized on a straight-line basis over the entire lease term. Material leasehold improvements and other landlord incentives are amortized over the shorter of their economic lives or the lease term, including renewal periods, if reasonably assured. Substantially all real estate taxes, insurance and maintenance expenses associated with leased facilities are obligations of the Company. The terms for most machinery and equipment leases range from 3 to 5 years. The majority of the Company's finance leases consist of assets purchased under a master leasing agreement. The terms of these leases are 5 years. These assets are included in machinery, office furniture and equipment and construction in process and amortization of these assets is included in depreciation and amortization expense. At the commencement date, the right-of-use asset and lease liability are recorded to the Company's Consolidated Balance Sheets when the Company obtains control of the use of the asset. Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make payments upon entering into a lease agreement. The initial measurement of the lease liability is equal to the present value of the unpaid lease payments. Subsequent to the initial measurement, the lease liability continues to be measured at the present value of unpaid lease payments throughout the lease term. The lease liability is remeasured if the lease is modified and the modification is not accounted for as a separate contract, there is a change in the assessment of the lease term, the assessment of a purchase option exercise or the amount probable of being owed under a residual value guarantee, or a contingency is resolved resulting in some or all of the variable lease payments becoming fixed payments. The initial measurement of the right-of-use asset is equal to the total of the initial measurement of the lease liability, incremental costs to obtain the lease and prepaid lease payments, less any lease incentives received. Subsequent to the initial measurement, the right-of-use asset for a finance lease is equivalent to the initial measurement less accumulated amortization and any accumulated impairment losses. Generally, amortization of finance leases is recorded to cost of sales on a straight-line basis over the lease term. Subsequent to initial measurement, the right-of-use asset for an operating lease is equivalent to initial measurement less accumulated amortization (the difference between the straight-line lease cost for the period and the accretion of the lease liability using the effective interest method). The Company has elected not to apply the recognition requirements of ASC 842 to short-term leases (leases that, at the commencement date, have a lease term of twelve months or less and do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise) as permissible under the standard. For short-term leases, the Company recognizes lease payments on a straight-line basis and variable payments in the period in which the obligation for those payments is incurred. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Leasing - continued Leasing contracts can be separated into lease components, non-lease components and items that are not components of the contract (items that do not transfer a good or service to the Company). Two or more contracts may be combined if at least one of which is or contains a lease entered into or near the same time with the same counterparty and consider the contracts as a single transaction if the contracts are negotiated as a package with the same objective, the amount of consideration to be paid in one contract depends on the price of performance of the other contract or the rights to use the underlying assets conveyed in the contracts are a single lease component. Lease components are considered separate if the Company can benefit from the right to use either on its own or together with other resources readily available to the Company and the right to use is not highly dependent or highly interrelated with the other rights to use the underlying assets in the contract. Consideration in the contract is allocated only to lease and non-lease components of a contract. The Company has elected the practical expedient allowing the Company to combine lease and non-lease components by class as a single lease component for its real estate leases. Nonlease components for the Company's vehicles and other equipment leases are not material. The lease term is the noncancellable period for which a lessee has the right to use an underlying asset, including periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. For renewal options, the Company performs an assessment at commencement if it is reasonably likely to exercise the option. The assessment is based on the Company's intentions, past practices, estimates and factors that create an economic incentive for the Company. Generally, the Company is not reasonably certain to exercise the renewal option in a lease contract as it performs an assessment for most real estate leases within six months prior to termination comparing the renewal rents under the option with the fair market returns for equivalent property under similar terms and conditions. Although the Company does not historically change locations often, it is not reasonably certain the Company will exercise the renewal option; therefore, the periods covered by the renewal option are not typically included in the lease term at commencement. While some of the Company's leases include options allowing early termination of the lease, the Company historically has not terminated its lease agreements early unless there is an economic, financial or business reason to do so; therefore, the Company does not typically consider the termination option in its lease term at commencement. Consideration in the contract is the sum of lease payments relating to the use of the underlying asset, fixed payments and other in-substance fixed payments, less any incentives received. Remeasurement of variable lease payments based on an index is only required if remeasurement is required for another reason, such as a change in lease term or change in estimates of probable payments under residual value guarantees. If remeasured, the remeasurement date becomes the new date for updating the payments based on the index. The Company uses the discount rate implicit in a lease contract, if available. As most of the Company's leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. For any leases that existed prior to the adoption of the standard, the Company used the incremental borrowing rate as of January 1, 2019 based on the type of asset and term of the lease. The Company separated its real estate leases by classes of lease terms and used the incremental borrowing rate consistent with its lease term class to determine the present value of lease payments. As most of the Company's vehicles had a four-year lease term at the point of the adoption of the standard, the Company used the incremental borrowing rate consistent with a four-year lease term for all vehicles. For all other equipment leases, the Company used the incremental borrowing rate consistent with a five-year lease term as the majority of the Company's leases for other equipment had a five-year lease term at the point of the adoption of the standard. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination and is reviewed for impairment at least annually. ASC Topic 350, "Intangibles - Goodwill and Other," ("ASC 350") permits the assessment of qualitative factors to determine whether events and circumstances lead to the conclusion that it is necessary to perform the two-step goodwill impairment test required under ASC 350. The qualitative assessment management performs takes into consideration the following factors: general economic conditions, industry specific performance, changes in carrying values of the reporting units or asset groups, the assessment of assumptions used in the previous fair value calculation and changes in transaction multiples. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Goodwill and Other Intangible Assets - continued In the first step of the two-step test, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test (measurement). In Step 2, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using an income methodology based on management’s estimates of forecasted cash flows for each reporting unit, with those cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. In addition, management uses a market-based valuation method involving analysis of market multiples of revenues and earnings before interest, taxes, depreciation and amortization ("EBITDA") for (i) a group of comparable public companies and (ii) recent transactions, if any, involving comparable companies. If the fair value of the reporting unit exceeds its carrying value, step two need not be performed. Goodwill and intangible assets with indefinite lives are evaluated annually for impairment in the fourth quarter, based on annual forecast information. Intangible assets with finite lives are amortized using the straight-line method over their estimated period of benefit. Goodwill and other intangible assets are reviewed for possible impairment whenever changes in conditions indicate that the fair value of a reporting unit is more likely than not below its carrying value. During the third quarter of 2018, management identified a triggering event for possible impairment at a certain asset group in its U.K. business based on a review of historical performance, the current forecast for the remainder of the year and the loss of future orders from one of its significant customers, requiring the Company to evaluate the intangible assets for impairment. The Company performed a recoverability test by comparing the undiscounted cash flows of the asset group to its carrying value, and the estimated future cash flows of the business did not exceed the carrying value of the assets. Based on these results, the Company calculated the fair value of the asset group using an income approach, which resulted in an other intangible assets impairment charge of $10.0 million , or the remaining balance of the customer lists/relationships at a certain asset group within the U.K. business. This charge has been included in the operating results of the Aerospace business. No such charges were recorded in 2019 or 2017 . |
Contract with Customer, Liability | Contract Liabilities The Company's contract liabilities consist of advance payments and billings in excess of revenue recognized and deferred revenue. Advance payments and billings in excess of revenue recognized are classified as current or noncurrent based on the timing of when recognition of revenue is expected. |
Unfulfilled Performance Obligations | Unfulfilled Performance Obligations Unfulfilled performance obligations ("backlog") represents the transaction price of firm orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts. As of December 31, 2019 , the aggregate amount of the transaction price allocated to backlog was $806.9 million . The Company expects to recognize revenue on approximately $511.8 million |
Self-Insured Retentions | Self-Insured Retentions To limit exposure to losses related to group health, workers’ compensation, auto and product general liability claims, the Company obtains third-party insurance coverage. The Company has varying levels of deductibles for these claims. The total liability/deductible for group health is limited to $0.3 million per claim, workers’ compensation is limited to $0.4 million per claim and for product/general liability and auto liability the limit is $0.3 million per claim. The cost of such benefits is recognized as expense based on claims filed in each reporting period and an estimate of claims incurred but not reported (“IBNR”) during such period. The estimates for the IBNR are based upon historical trends and information provided to us by the claims administrators, and are periodically revised to reflect changes in loss trends. These amounts are included in other current liabilities on the Consolidated Balance Sheets. Liabilities associated with these claims are estimated in part by considering historical claims experience, severity factors and other actuarial assumptions. Projections of future losses are inherently uncertain because of the random nature of insurance claim occurrences and the potential for differences between actual developments and actuarial assumptions. Such self-insurance accruals will likely include claims for which the ultimate losses will be settled over a period of years. |
Research and Development | Research and Development Customer funded research expenditures (which are included in cost of sales) were $0.6 million in 2019 , $1.8 million in 2018 and $1.1 million in 2017 . Research and development costs not specifically covered by contracts are recognized as expense as incurred and included in selling, general and administrative expenses. Such costs amounted to $11.6 million , $9.1 million and $8.2 million in 2019 , 2018 and 2017 , respectively. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The deferred income taxes were significantly impacted by the enactment of the Tax Cuts and Jobs Act of 2017 ("Tax Reform"), as further discussed in Note 16, Income Taxes . The adjustments to deferred income taxes resulted in stranded tax effects of items within accumulated other comprehensive income. The Company elected to reclassify the stranded tax effects to retained earnings from accumulated other comprehensive income using the item-by-item approach. The Company records a benefit for uncertain tax positions in the financial statements only when it determines it is more likely than not that such a position will be sustained upon examination by taxing authorities based on the technical merits of the position. Unrecognized tax benefits represent the difference between the position taken in the tax return and the benefit reflected in the financial statements. |
Share-Based Payment Arrangements | Share-Based Payment Arrangements The Company records compensation expense for share-based awards based upon an assessment of the grant date fair value of the awards. The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. A number of assumptions are used to determine the fair value of options granted. These include expected term, dividend yield, volatility of the options and the risk free interest rate. See Note 22, Share-Based Arrangements, for further information. |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to certain risks relating to its ongoing business operations, including market risks relating to fluctuations in foreign currency exchange rates and interest rates. Derivative financial instruments are recognized on the Consolidated Balance Sheets as either assets or liabilities and are measured at fair value. Changes in the fair values of derivatives are recorded each period in earnings or accumulated other comprehensive income, depending on whether a derivative is effective as part of a hedged transaction. Gains and losses on derivative instruments reported in accumulated other comprehensive income are subsequently included in earnings in the periods in which earnings are affected by the hedged item. The Company does not use derivative instruments for speculative purposes. See Note 9, Derivative Financial Instruments , for further information. |
Pension Accounting | Pension Accounting The Company accounts for its defined benefit pension plan by recognizing the overfunded or underfunded status of the plan, calculated as the difference between the plan assets and the projected benefit obligation, as an asset or liability on the balance sheet, with changes in the funded status recognized in comprehensive income in the year in which they occur. Expenses and liabilities associated with the plan are determined based upon actuarial valuations. Integral to the actuarial valuations are a variety of assumptions including expected return on plan assets and discount rate. The Company regularly reviews the assumptions, which are updated at the measurement date, December 31 st . The impact of differences between actual results and the assumptions are accumulated and generally amortized over future periods, which will affect expense recognized in future periods. The service cost component of net benefit cost is recorded in cost of sales and selling, general and administrative expenses separately from the other components of net benefit cost, which are recorded to non-service pension and postretirement benefit income. See Note 17, Pension Plans , for further information. |
Recent Accounting Standards | Recent Accounting Standards Recent Accounting Standards Adopted |
Accounting Changes (Tables)
Accounting Changes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | For the year ended December 31, 2018 As reported Adjustments Balances without adoption of ASC 606 In thousands Net sales $ 735,994 $ (59,683 ) $ 676,311 Cost of sales 508,677 (42,036 ) 466,641 Gross profit 227,317 (17,647 ) 209,670 Selling, general and administrative expenses 172,271 (2,281 ) 169,990 Other intangibles asset impairment (Note 12) 10,039 — 10,039 Restructuring costs (Note 5) 7,353 — 7,353 Loss on sale of business (Note 5) 5,722 539 6,261 Net gain on sale of assets (1,031 ) — (1,031 ) Operating income 32,963 (15,905 ) 17,058 Interest expense, net 20,046 — 20,046 Non-service pension and post retirement benefit income (12,127 ) — (12,127 ) Other income, net (92 ) — (92 ) Earnings from continuing operations before income taxes 25,136 (15,905 ) 9,231 Income tax expense 9,259 (2,486 ) 6,773 Earnings from continuing operations, net of tax $ 15,877 $ (13,419 ) $ 2,458 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Net proceeds received from sale of Distribution (1) $ 659,009 Distribution assets Cash and cash equivalents $ 21,834 Accounts receivable, net 150,317 Contract assets 9,128 Inventories 163,995 Other current assets 20,289 Property plant and equipment, net of accumulated depreciation of $73,795 51,039 Operating right-of-use assets, net 68,049 Goodwill 149,204 Other intangible assets, net 28,361 Deferred income taxes 133 Other assets 195 Total Distribution assets $ 662,544 Distribution liabilities Accounts payable - trade $ 67,975 Accrued salaries and wages 12,916 Operating lease liabilities, current portion 19,981 Other current liabilities 22,024 Deferred income taxes 78 Operating lease liabilities, noncurrent portion 48,130 Other long-term liabilities 188 Total Distribution liabilities $ 171,292 Gain on sale of Distribution before income taxes $ 167,757 (1) The proceeds received from the sale of the Distribution business were included in net cash provided by (used in) investing activities of continuing operations on the Company's Consolidated Statement of Cash Flows. These proceeds were net of transaction costs of $33.1 million and working capital adjustments. The final consideration and gain on sale is subject to a working capital adjustment expected to be settled in the first quarter of 2020. |
Discontinued Operations, Disposed of by Sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table provides information regarding the results of discontinued operations: For the Year Ended December 31, 2019 2018 2017 In thousands Net sales from discontinued operations $ 748,451 $ 1,139,431 $ 1,080,965 Cost of sales from discontinued operations 536,749 816,711 769,403 Gross profit from discontinued operations 211,702 322,720 311,562 Selling, general and administrative expenses from discontinued operations 177,475 272,633 262,384 Restructuring costs from discontinued operations — 655 — Net loss (gain) on sale of assets from discontinued operations 8 (669 ) (225 ) Operating income from discontinued operations 34,219 50,101 49,403 Interest expense, net from discontinued operations 25 51 3 Other income, net from discontinued operations (12 ) (51 ) (56 ) Earnings from discontinued operations before income taxes 34,206 50,101 49,456 Income tax expense 5,179 11,809 19,338 Earnings from discontinued operations before gain on disposal 29,027 38,292 30,118 Gain on disposal of discontinued operations, pretax 167,757 — — Income tax expense on gain on disposal 43,401 — — Gain on disposal of discontinued operations, net of tax 124,356 — — Earnings from discontinued operations, net of tax $ 153,383 $ 38,292 $ 30,118 |
Discontinued Operations, Disposed of by Sale [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table is a summary of the assets and liabilities held for sale: December 31, In thousands Assets Cash and cash equivalents $ 1,816 Accounts receivable, net 151,756 Contract assets 9,600 Inventories 163,343 Other current assets 24,746 Total assets held for sale, current portion 351,261 Property, plant and equipment, net of accumulated depreciation of $70,021 47,112 Goodwill 149,204 Other intangible assets, net 32,440 Deferred income taxes 146 Other assets 336 Total assets held for sale $ 580,499 Liabilities Accounts payable – trade $ 101,801 Accrued salaries and wages 13,839 Other current liabilities 15,407 Total liabilities held for sale, current portion 131,047 Deferred income taxes 13,630 Other long-term liabilities 1,972 Total liabilities held for sale $ 146,649 |
Revenue and Geographic Inform_2
Revenue and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | For the year ended December 31, 2019 2018 2017 In thousands Military and Defense, excluding safe and arm devices $ 178,289 $ 190,264 $ 201,760 Safe and Arm Devices 227,846 195,751 184,640 Commercial Aerospace and Other 355,473 349,979 338,544 Total revenue (1)(2)(3) $ 761,608 $ 735,994 $ 724,944 (1) Service revenue was not material for the years ended December 31, 2019 , 2018 and 2017 . (2) Sales of the Company's formerly owned Distribution business were included in earnings from discontinued operations, net of tax, on the Company's Consolidated Statements of Operations. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. (3) Net sales under contracts with USG agencies (including sales to foreign governments through foreign military sales contracts with USG agencies) totaled $244.3 million , $281.3 million and $248.6 million in 2019 , 2018 and 2017 , respectively, and represent direct and indirect sales to the USG and related agencies. The following table illustrates the approximate percentage of revenue recognized by product types. For the year ended December 31, 2019 2018 2017 In thousands Original Equipment Manufacturer 58 % 56 % 57 % Aftermarket 12 % 17 % 18 % Safe and Arm Devices 30 % 27 % 25 % Total revenue 100 % 100 % 100 % The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time: 2019 2018 Revenue recognized for performance obligations satisfied: Over time 39 % 48 % Point-in-time 61 % 52 % Total revenue 100 % 100 % 4. REVENUE AND GEOGRAPHIC INFORMATION (CONTINUED) Geographic Information Sales are attributed to geographic regions based on the location to which the product is shipped. Geographic distribution of sales recorded is as follows: For the year ended December 31, 2019 2018 2017 In thousands North America $ 438,638 $ 485,856 $ 437,326 Europe 164,921 167,176 168,236 Middle East 114,110 51,565 81,197 Asia 19,326 16,998 24,614 Oceania 14,598 8,739 10,837 Other 10,015 5,660 2,734 Total revenue $ 761,608 $ 735,994 $ 724,944 |
Revenue and Geographic Inform_3
Revenue and Geographic Information Long-lived Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue and Geographic Information [Abstract] | |
Long-lived Assets by Geographic Areas [Table Text Block] | Geographic distribution of long-lived assets is as follows: At December 31, 2019 2018 In thousands United States (1) $ 249,935 $ 463,114 Germany 157,504 160,257 United Kingdom 32,834 32,378 Czech Republic 5,753 6,077 Mexico 1,189 1,091 Total long-lived assets (2) $ 447,215 $ 662,917 (1) Long-lived assets attributable to the Company's formerly owned Distribution business, totaling $229.2 million were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. (2) For the purpose of this disclosure the Company excluded deferred tax assets of $35.2 million and $38.0 million as of December 31, 2019 and 2018 , respectively. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Costs [Abstract] | |
Schedule of Restructuring Costs | The following table summarizes the accrual balances by cost type for the restructuring actions: Severance Other (1) Total In thousands Restructuring accrual balance at December 31, 2018 $ 1,022 $ 558 $ 1,580 Provision (15 ) 198 183 Cash payments (999 ) (380 ) (1,379 ) Changes in foreign currency exchange rates (8 ) 1 (7 ) Restructuring accrual balance at December 31, 2019 $ — $ 377 $ 377 (1) Includes costs associated with consolidation of facilities. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: At December 31, 2019 2018 In thousands Trade receivables $ 13,794 $ 11,380 U.S. Government contracts: Billed 15,136 38,173 Costs and accrued profit – not billed 894 780 Commercial and other government contracts: Billed 120,427 100,603 Costs and accrued profit – not billed 7,487 900 Less allowance for doubtful accounts (1,246 ) (2,498 ) Accounts receivable, net (1) $ 156,492 $ 149,338 (1) Accounts receivable, net attributable to the Company's formerly owned Distribution business were included in assets held for sale, current portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Accounts Receivable due to contract changes, negotiated settlements and claims for unanticipated cost | Accounts receivable, net includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: At December 31, 2019 2018 In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ 900 $ 900 Total $ 900 $ 900 |
Contract Assets, Contract Cos_2
Contract Assets, Contract Costs and Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Contract Assets, Contract Costs and Contract Liabilities [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | Activity related to contract assets, contract costs and contract liabilities is as follows: December 31, December 31, $ Change % Change In thousands Contract assets (1)(2) $ 121,614 $ 99,261 $ 22,353 22.5 % Contract costs, current portion $ 6,052 $ 5,993 $ 59 1.0 % Contract costs, noncurrent portion $ 6,099 $ 10,666 $ (4,567 ) (42.8 )% Contract liabilities, current portion (2) $ 42,942 $ 28,865 $ 14,077 48.8 % Contract liabilities, noncurrent portion (2) $ 37,855 $ 78,562 $ (40,707 ) (51.8 )% (1) The Company's contract assets were net of unliquidated progress payments, primarily from the U.S. Government, of $30.2 million and $30.3 million at December 31, 2019 and December 31, 2018 , respectively. (2) Contract assets and contract liabilities of the Company's formerly owned Distribution business were included in assets held for sale and liabilities held for sale, respectively, as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Contract Assets Due to Contract Changes, Negotiated Settlements and Claims for Unanticipated Costs [Table Text Block] | Contract assets includes amounts for matters such as contract changes, negotiated settlements and claims for unanticipated contract costs. These amounts are as follows: December 31, December 31, In thousands Contract changes, negotiated settlements and claims for unanticipated contract costs $ 3,745 $ 2,909 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments not Carried at Fair Value | The following table provides the carrying value and fair value of financial instruments that are not carried at fair value at December 31, 2019 and 2018 : 2019 2018 Carrying Value Fair Value Carrying Value Fair Value In thousands Debt (1) $ 186,060 $ 237,381 $ 299,124 $ 325,251 (1) These amounts are classified within Level 2. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories consist of the following: At December 31, 2019 2018 In thousands Raw materials $ 15,012 $ 15,939 Contracts in process: US Government 6,217 6,030 Commercial and other government contracts 74,035 49,471 Contracts and other work in process (including certain general stock materials) 36,130 41,166 Finished goods 24,959 18,963 Inventories (1) $ 156,353 $ 131,569 (1) Inventories attributable to the Company's formerly owned Distribution business were included in assets held for sale, current portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Property Plant and Equipment,_2
Property Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, plant and equipment | Property, plant and equipment, net is summarized as follows: At December 31, 2019 2018 In thousands Land $ 16,319 $ 14,408 Buildings 101,562 100,005 Leasehold improvements 14,904 14,626 Machinery, office furniture and equipment 200,466 188,081 Construction in process 17,748 12,277 Total 350,999 329,397 Less accumulated depreciation (210,549 ) (192,285 ) Property, plant and equipment, net (1) $ 140,450 $ 137,112 (1) Property, plant and equipment, net attributable to the Company's Distribution business were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company: At December 31, 2019 2018 In thousands Gross balance at beginning of period $ 212,413 $ 218,765 Accumulated impairment (16,252 ) (16,252 ) Net balance at beginning of period 196,161 202,513 Change in goodwill due to disposals (1) — (447 ) Foreign currency translation (847 ) (5,905 ) Net balance at end of period (2) $ 195,314 $ 196,161 Accumulated impairment at end of period $ (16,252 ) $ (16,252 ) (1) The Company sold its U.K. Tooling business and substantially all of the assets and liabilities of its Engineering Services business in 2018. This amount reflects the proportionate goodwill based on these businesses' relative fair value of the Aerosystems reporting unit. (2) Goodwill of the Distribution business was included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Schedule of acquired finite-lived intangible assets by major class | Other intangible assets consisted of: At December 31, At December 31, 2019 2018 Amortization Period Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization In thousands Customer lists / relationships 6-26 years $ 56,789 $ (21,415 ) $ 57,263 $ (18,587 ) Developed technologies 10-20 years 19,552 (5,217 ) 19,729 (3,998 ) Trademarks / trade names 15-17 years 5,012 (1,368 ) 5,117 (1,055 ) Non-compete agreements and other 1-15 years 2,338 (2,321 ) 2,350 (2,330 ) Patents 17 years 523 (454 ) 523 (445 ) Total (1) $ 84,214 $ (30,775 ) $ 84,982 $ (26,415 ) (1) Other intangible assets of the Distribution business were included in assets held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Schedule of finite-lived intangible assets, future amortization expense | Estimated amortization expense for the next five years associated with intangible assets existing as of December 31, 2019 , is as follows: In thousands 2020 $ 4,559 2021 $ 4,524 2022 $ 4,137 2023 $ 4,118 2024 $ 3,908 |
Environmental Costs (Tables)
Environmental Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of change in environmental remediation | The following table displays the activity and balances associated with accruals related to environmental costs included in other current liabilities and other long-term liabilities: 2019 2018 In thousands Balance at January 1 $ 5,531 $ 6,057 Additions to accrual 1,122 — Payments (569 ) (944 ) Changes in foreign currency exchange rates (6 ) 418 Balance at December 31 $ 6,078 $ 5,531 |
Schedule of future payments for environmental remediation | The following represents estimated future payments for the undiscounted environmental remediation liability related to the Bloomfield campus as of December 31, 2019 : In thousands 2020 $ 172 2021 653 2022 151 2023 184 2024 387 Thereafter 4,956 Total $ 6,503 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument | |
Schedule of long-term debt instruments | The Company has long-term debt as follows: At December 31, 2019 2018 In thousands Revolving credit agreement $ — $ 38,500 Term loan — 76,875 Convertible notes 186,060 183,749 Total 186,060 299,124 Less current portion — 9,375 Total excluding current portion $ 186,060 $ 289,749 |
Schedule of maturities of long-term debt | The aggregate annual maturities of long-term debt for each of the next five years are approximately as follows: In thousands 2020 $ — 2021 $ — 2022 $ — 2023 $ — 2024 $ 199,500 |
Schedule of line of credit facilities | The following table shows the amounts available for borrowing under the Company's revolving credit facility: At December 31, 2019 2018 In thousands Total facility $ 800,000 $ 600,000 Amounts outstanding, excluding letters of credit — 38,500 Amounts available for borrowing, excluding letters of credit 800,000 561,500 Letters of credit under the credit facility (1) 152,614 152,613 Amounts available for borrowing $ 647,386 $ 408,887 Amounts available for borrowing subject to EBITDA, as defined by the Credit Agreement (2) $ 322,900 $ 323,532 |
Interest rate on credit facility | The interest rate for the outstanding amounts on both the revolving credit facility and term loan commitment are as follows: At December 31, 2019 2018 Interest rate (1) — 3.74 % |
2024 Notes | |
Debt Instrument | |
Schedule of changes in conversion rate for convertible notes | The following table illustrates the conversion rate at the date of issuance of the 2024 Notes: 2024 Notes Conversion Rate per $1,000 principal amount (1) 15.3227 Conversion Price (2) $ 65.2626 Contingent Conversion Price (3) $ 84.8413 Aggregate shares to be issued upon conversion (4) 3,056,879 (1) Represents the number of shares of Common Stock hypothetically issuable per each $1,000 principal amount of 2024 Notes, subject to adjustments upon the occurrence of certain specified events in accordance with the terms of the Indenture. (2) Represents $1,000 divided by the conversion rate as of such date. The conversion price reflects the strike price of the embedded option within the 2024 Notes. If the Company's share price exceeds the conversion price at conversion, the noteholders would be entitled to receive additional consideration either in cash, shares or a combination thereof, the form of which is at the sole discretion of the Company. (3) Prior to November 1, 2023, the notes are convertible only in the following circumstances: (1) during any fiscal quarter commencing after July 1, 2017, and only during any such fiscal quarter, if the last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter, (2) during the five consecutive business day period following any ten consecutive trading day period (the "measurement period") in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day or (3) upon the occurrence of specified corporate events. On or after November 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. If the Company undergoes a fundamental change (as defined in the Indenture), holders of the notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount to be repurchased, plus any accrued and unpaid interest. As of December 31, 2019 , none of the conditions permitting the holders of the 2024 Notes to convert had been met. Therefore, the 2024 Notes are classified as long-term debt. (4) This represents the number of shares hypothetically issuable upon conversion of 100% of the outstanding aggregate principal amount of the 2024 Notes at each date; however, the terms of the 2024 Notes state that the Company may pay or deliver, as the case may be, cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. The Company currently intends to settle the aggregate principal amount in cash. Amounts due in excess of the principal, if any, also may be settled in cash, shares of the Company's common stock or a combination of cash and shares of common stock, at the Company's election. |
Schedule of equity and liability components in convertible debt | The carrying amount of the equity component and the principal amount of the liability component, the unamortized discount and the net carrying value of the liability are as follows: 2024 Notes December 31, 2019 December 31, 2018 In thousands Principal amount of liability $ 199,500 $ 200,000 Unamortized discount 13,440 16,251 Carrying value of liability $ 186,060 $ 183,749 Equity component $ 20,408 $ 20,459 |
Interest expense associated with convertible notes | Interest expense associated with the 2024 Notes consisted of the following: For the year ended December 31, 2019 2018 2017 In thousands Contractual coupon rate of interest $ 6,503 $ 6,500 $ 4,207 Accretion of convertible notes discount 2,753 2,596 1,612 Interest expense - convertible notes $ 9,256 $ 9,096 $ 5,819 |
2017 Notes | |
Debt Instrument | |
Schedule of equity and liability components in convertible debt | 2017 Notes |
Schedule of extinguishment of debt | See below for further details on the loss on extinguishment: In thousands Carrying value of 2017 Notes $ 113,943 Carrying value of Redeemed Debt $ 102,548 Fair value of consideration transferred allocated to debt component (1) 103,637 Loss on extinguishment of 2017 Notes (2) $ (1,089 ) Acceleration of the related portion of debt issuance cost (3) (297 ) Total loss on extinguishment of 2017 Notes (4) $ (1,386 ) ( 1 ) The fair value of consideration transferred was calculated using a discount rate of 3% , representing the Company's borrowing rate at the date of issuance for a similar debt instrument with a remaining expected life of six months (for the 2017 Notes). (2) The majority of this balance relates to the write-off of approximately $1.0 million , 90% of the unamortized debt discount. (3) The Company determined that in connection with the repurchase of the 2017 Notes, 90% of the unamortized debt issuance costs should be written off, representing the approximate outstanding portion of these costs related to the notes repurchased. (4) This loss is included in interest expense, net on the Company's Consolidated Statement of Operations in the year ended December 31, 2017. |
Interest expense associated with convertible notes | nterest expense associated with the 2017 Notes consisted of contractual coupon rate of interest of $3.3 million and accretion of the convertible notes discount of $1.8 million . |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are shown below: 2019 2018 In thousands Foreign currency translation and other: Beginning balance $ (14,579 ) $ (7,054 ) Net (loss) gain on foreign currency translation (1,772 ) (9,255 ) Reclassification to net income (1) — 1,730 Other comprehensive loss, net of tax (1,772 ) (7,525 ) Ending balance $ (16,351 ) $ (14,579 ) Pension and other post-retirement benefits (2) : Beginning balance $ (120,319 ) $ (108,760 ) Reclassification to net income Amortization of net loss, net of tax expense of $3,534 and $2,818, respectively 11,971 8,800 Change in net gain, net of tax benefit of $915 and $6,519, respectively (3,100 ) (20,359 ) Other comprehensive (loss) gain, net of tax 8,871 (11,559 ) Reclassification of stranded tax effects resulting from Tax Reform to retained earnings balance (3) (23,094 ) — Ending balance $ (134,542 ) $ (120,319 ) Total accumulated other comprehensive income (loss) $ (150,893 ) $ (134,898 ) (1) The foreign currency translation reclassified to net income relates to the sale of the Company's UK Tooling business (see Note 5, Restructuring Costs , for additional information). (2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans for additional information). (3) See Note 1, Summary of Significant Accounting Policies , for additional information regarding the reclassification of stranded tax effects resulting from Tax Reform to retained earnings. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) associated with earnings from continuing operations | The components of income tax (benefit) expense from continuing operations are as follows: For the twelve months ended December 31, 2019 2018 2017 In thousands Current: Federal $ (19,432 ) $ 351 $ 2,841 State 1,996 104 (626 ) Foreign 585 1,191 2,341 (16,851 ) 1,646 4,556 Deferred: Federal 719 7,145 20,531 State 277 841 (60 ) Foreign (4 ) (373 ) 187 992 7,613 20,658 Total $ (15,859 ) $ 9,259 $ 25,214 |
Tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities of continuing operations are presented below: At December 31, 2019 2018 In thousands Deferred tax assets: Deferred employee benefits $ 36,678 $ 43,118 Tax loss and credit carryforwards 19,449 17,610 Accrued liabilities and other items 14,044 9,036 Total deferred tax assets 70,171 69,764 Deferred tax liabilities: Property, plant and equipment (6,410 ) (2,677 ) Intangibles (27,147 ) (27,732 ) Other items (226 ) (218 ) Total deferred tax liabilities (33,783 ) (30,627 ) Net deferred tax assets before valuation allowance 36,388 39,137 Valuation allowance (8,142 ) (8,243 ) Net deferred tax assets after valuation allowance $ 28,246 $ 30,894 |
Schedule of effective income tax rate reconciliation | The provision for income taxes from continuing operations differs from that computed at the federal statutory corporate tax rate as follows: For the twelve months ended December 31, 2019 2018 2017 In thousands Federal tax at statutory rate (1) $ 8,523 $ 5,279 $ 15,722 State income taxes, net of federal benefit (2) 1,839 773 (584 ) Tax effect: Section 199 Manufacturing deduction — — (1,616 ) Research and development credits (3,480 ) (100 ) (100 ) Impact of entity classification election (24,813 ) — — Foreign derived intangible income benefit — (2,186 ) — Provision to return adjustments (1,466 ) (1,612 ) 366 Foreign losses for which no tax benefit has been recorded 1,282 2,685 — Change in valuation allowance 976 3,161 861 Equity compensation benefit (482 ) (910 ) (851 ) Nondeductible compensation 891 347 11 Nondeductible acquisition costs 546 — — Impact of tax rate changes, including Tax Reform 68 193 10,032 Other, net 257 1,629 1,373 Income tax (benefit) expense $ (15,859 ) $ 9,259 $ 25,214 (1) The federal statutory tax rate was 21% for the years ended December 31, 2019 and 2018 and 35% for the year ended December 31, 2017. (2) Included in state income taxes, net of federal benefit was the state impact of the entity classification election of $0.9 million for the year ended December 31, 2019. |
Change in the liability for uncertain tax positions | The change in the liability for 2019 , 2018 and 2017 is explained as follows: 2019 2018 2017 In thousands Balance at January 1 $ 3,457 $ 3,423 $ 2,832 (Reductions) additions based on current year tax positions (378 ) 162 381 Changes for tax positions of prior years 135 (128 ) 152 Settlements — — 58 Balance at December 31 $ 3,214 $ 3,457 $ 3,423 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payment for Pension and Other Postretirement Benefits [Abstract] | |
Changes in the actuarial present value of the projected benefit obligation and fair value of plan assets | The changes in the actuarial present value of the projected benefit obligation and fair value of plan assets are as follows: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Projected benefit obligation at beginning of year $ 695,375 $ 770,316 $ 6,913 $ 7,896 Service cost 5,100 4,897 — — Interest cost 26,422 23,804 237 246 Actuarial liability loss (gain) (1) 88,271 (67,157 ) 720 (280 ) Benefit payments (37,780 ) (36,485 ) (534 ) (949 ) Projected benefit obligation at end of year $ 777,388 $ 695,375 $ 7,336 $ 6,913 Fair value of plan assets at beginning of year $ 590,387 $ 643,392 $ — $ — Actual return on plan assets 127,535 (46,520 ) — — Employer contributions — 30,000 534 949 Benefit payments (37,780 ) (36,485 ) (534 ) (949 ) Fair value of plan assets at end of year $ 680,142 $ 590,387 $ — $ — Funded status at end of year $ (97,246 ) $ (104,988 ) $ (7,336 ) $ (6,913 ) Accumulated benefit obligation $ 777,388 $ 695,375 $ 7,336 $ 6,913 (1) The actuarial liability loss (gain) amount for the qualified pension plan for 2019 and 2018 is principally due to the effect of changes in the discount rate. |
Liabilities related to the qualified pension plan and SERP | The Company has recorded liabilities related to our qualified pension plan and SERP as follows: At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Current liabilities (1) $ — $ — $ (528 ) $ (529 ) Noncurrent liabilities (97,246 ) (104,988 ) (6,808 ) (6,384 ) Total $ (97,246 ) $ (104,988 ) $ (7,336 ) $ (6,913 ) (1) The current liabilities are included in other current liabilities on the Consolidated Balance Sheets. |
Schedule of pension costs in future periods | The following table presents amounts included in accumulated other comprehensive income on the Consolidated Balance Sheets that will be recognized as components of pension cost in future periods. At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Unrecognized loss $ 177,083 $ 189,047 $ 1,311 $ 837 Amount included in accumulated other comprehensive income $ 177,083 $ 189,047 $ 1,311 $ 837 |
Pension plan net periodic benefit costs and other amounts recognized in other comprehensive loss | The pension plan net periodic benefit costs on the Consolidated Statements of Operations and other amounts recognized in other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income and Consolidated Statements of Shareholders’ Equity were computed using the projected unit credit actuarial cost method and included the following components: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2017 2019 2018 2017 In thousands Service cost for benefits earned during the year $ 5,100 $ 4,897 $ 4,794 $ — $ — $ — Interest cost on projected benefit obligation 26,422 23,804 24,358 237 246 241 Expected return on plan assets (42,560 ) (47,841 ) (42,049 ) — — — Recognized net loss 15,260 11,370 13,943 245 248 146 Additional amount recognized due to curtailment/settlement — — — — 46 305 Net pension benefit cost (income) $ 4,222 $ (7,770 ) $ 1,046 $ 482 $ 540 $ 692 Change in net gain or (loss) 3,295 27,203 (6,607 ) 720 (325 ) 347 Amortization of net loss (15,260 ) (11,370 ) (13,943 ) (245 ) (248 ) (146 ) Total recognized in other comprehensive (loss) income $ (11,965 ) $ 15,833 $ (20,550 ) $ 475 $ (573 ) $ 201 Total recognized in net periodic benefit cost and other comprehensive (loss) income $ (7,743 ) $ 8,063 $ (19,504 ) $ 957 $ (33 ) $ 893 |
Contributions made to the Qualified Pension Plan and SERP | The following tables show the amount of the contributions made to the Qualified Pension Plan and SERP during each period and the amount of contributions the Company expects to make during 2020 : Qualified Pension Plan SERP 2019 2018 2019 2018 In thousands Contributions $ — $ 30,000 $ 534 $ 949 Qualified Pension Plan SERP In thousands Expected contributions during 2020 (1) $ 10,000 $ 528 |
Actuarial assumptions used in determining benefit obligations and net periodic benefit of the pension plans | Expected future benefit payments are as follows: Qualified Pension Plan SERP In thousands 2020 $ 39,368 $ 528 2021 $ 40,664 $ 2,554 2022 $ 41,966 $ 494 2023 $ 43,107 $ 474 2024 $ 44,127 $ 451 2025-2029 $ 225,251 $ 1,863 |
Schedule of actuarial assumptions used in determining benefit obligations and net periodic benefit cost of the pension plans | The discount rates used in determining benefit obligations of the pension plans are as follows: At December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 Discount rate 3.14 % 4.17 % 2.76 % 3.88 % The actuarial assumptions used in determining the net periodic benefit cost of the pension plans are as follows: For the twelve months ended December 31, Qualified Pension Plan SERP 2019 2018 2019 2018 Discount rate 4.17 % 3.50 % 3.88 % 3.15 % Expected return on plan assets 7.50 % 7.50 % N/A N/A Average rate of increase in compensation levels N/A N/A N/A N/A |
Fair value of the Company’s qualified pension plan assets | The fair values of the Company’s qualified pension plan assets at December 31, 2019 and 2018 , are as follows: Total Carrying Value at December 31, 2019 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Not subject to leveling In thousands Short-term investments: Cash and cash equivalents $ 17,597 $ 17,597 $ — $ — $ — Futures contracts - assets — — — — — Futures contracts - liabilities (1,210 ) — (1,210 ) — — Fixed income securities 195,133 — 195,133 — — Mutual funds 102,423 102,423 — — — Common trust funds (1) 319,932 — — — 319,932 Corporate stock 44,124 44,124 — — — Subtotal $ 677,999 $ 164,144 $ 193,923 $ — $ 319,932 Accrued income/expense 2,143 67 2,021 — 55 Total $ 680,142 $ 164,211 $ 195,944 $ — $ 319,987 Total Carrying Value at December 31, 2018 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Not subject to leveling In thousands Short term investments: Cash and cash equivalents $ 17,752 $ 17,752 $ — $ — $ — Futures contracts - assets 4,023 — 4,023 — — Futures contracts - liabilities — — — — — Fixed income securities 151,895 — 151,895 — — Mutual funds 99,584 99,584 — — — Common trust funds (1) 281,064 — — — 281,064 Corporate stock 34,164 34,164 — — — Subtotal $ 588,482 $ 151,500 $ 155,918 $ — $ 281,064 Accrued income/expense 1,905 113 1,740 — 52 Total $ 590,387 $ 151,613 $ 157,658 $ — $ 281,116 (1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other long-term liabilities | Other long-term liabilities consist of the following: At December 31, 2019 2018 In thousands Supplemental employees' retirement plan ("SERP") $ 6,808 $ 6,384 Deferred compensation 20,768 17,885 Long-term incentive plan 10,527 9,821 Noncurrent income taxes payable 3,390 3,371 Environmental remediation liability 5,525 4,610 Finance leases 5,559 6,261 Other 3,838 3,543 Total other long-term liabilities (1) $ 56,415 $ 51,875 (1) Other long-term liabilities attributable to the Company's formerly owned Distribution business were included in liabilities held for sale, noncurrent portion as of December 31, 2018 on the Company's Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |
Schedule of Lease Right of Use Assets [Table Text Block] | Right-of-use assets, net consisted of the following: Classification December 31, 2019 (1) In thousands Assets Operating lease right of use assets Operating lease right-of-use assets, net $ 15,159 Finance lease right of use assets Property, plant and equipment, net of accumulated depreciation 5,840 Total leased assets $ 20,999 (1) The Company elected the modified retrospective transition method that applies ASC 842 as of January 1, 2019. See Note 1, Summary of Significant Accounting Policies , for further information on the adoption of ASC 842. |
Schedule of Lease Liabilities [Table Text Block] | Lease liabilities consisted of the following: Classification December 31, 2019 December 31, In thousands Liabilities Current Operating lease liability, current portion Operating lease liabilities, current portion $ 4,306 $ — Finance lease liability, current portion Other current liabilities 1,838 1,803 Noncurrent Operating lease liability, noncurrent portion Operating lease liabilities, noncurrent portion 11,617 — Finance lease liability, noncurrent portion Other long-term liabilities 5,559 6,260 Total lease liabilities (1) $ 23,320 $ 8,063 (1) Lease liabilities of the Company's formerly owned Distribution business were included in liabilities held for sale as of December 31, 2018 on the Company's Condensed Consolidated Balance Sheets. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future rental payments for continuing operations consisted of the following: December 31, 2019 In thousands Operating leases 2020 $ 5,164 2021 4,095 2022 3,285 2023 2,728 2024 2,059 Thereafter — Total future operating lease payments $ 17,331 Interest (1,408 ) Present value of future operating lease payments $ 15,923 Finance leases 2020 2,114 2021 1,965 2022 1,705 2023 1,189 2024 703 Thereafter — Total future finance lease payments $ 7,676 Interest (279 ) Present value of future finance lease payments $ 7,397 Present value of total future lease payments $ 23,320 |
Lease, Cost [Table Text Block] | The following table illustrates the components of lease expense for the Company's leases. For the Year Ended December 31, 2019 In thousands Finance lease cost Amortization of right-of-use assets $ 941 Interest on lease liabilities 297 Operating lease cost 5,064 Short-term lease cost 177 Variable lease cost 83 Total lease expense (1) $ 6,562 (1) Lease expense of the Company's formerly owned Distribution business was included in discontinued operations on the Company's Condensed Consolidated Statement of Operations. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Lessee, Additional Lease Information [Table Text Block] | Other information related to leases is as follows: December 31, 2019 Weighted-average remaining lease term (years) Operating leases 4.11 Finance leases 3.30 Weighted-average discount rate Operating leases 4.32 % Finance leases 4.04 % |
Lease Agreements [Member] | |
Lessee, Lease, Description [Line Items] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table segregates cash paid for the Company's leases from continuing operations. December 31, 2019 In thousands Operating cash flows from operating leases $ (4,950 ) Operating cash flows from finance leases (1,609 ) Financing cash flows from finance leases (297 ) Total cash flows from leasing activities (1) $ (6,856 ) ( 1) Cash flows from leasing activities of the Company's formerly owned Distribution businesst was included in discontinued operations on the Company's Condensed Consolidated Statement of Cash Flows. See Note 3, Discontinued Operations , for further information on the Company's sale of the Distribution business. |
Computation of Earnings Per S_2
Computation of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | For the Year Ended December 31, 2019 2018 2017 In thousands, except per share amounts Earnings from continuing operations $ 56,446 $ 15,877 $ 19,708 Total earnings from discontinued operations 153,383 38,292 30,118 Net earnings $ 209,829 $ 54,169 $ 49,826 Basic: Weighted average number of shares outstanding 27,936 27,945 27,611 Earnings per share from continuing operations $ 2.02 $ 0.57 $ 0.71 Earnings per share from discontinued operations 5.49 1.37 1.09 Basic earnings per share $ 7.51 $ 1.94 $ 1.80 Diluted: Weighted average number of shares outstanding 27,936 27,945 27,611 Weighted average shares issuable on exercise of dilutive stock options 156 208 160 Weighted average shares issuable on exercise of convertible notes — 37 466 Weighted average shares issuable on redemption of warrants related to 2017 Notes — 33 181 Total 28,092 28,223 28,418 Earnings per share from continuing operations $ 2.01 $ 0.56 $ 0.69 Earnings per share from discontinued operations 5.46 1.36 1.06 Diluted earnings per share $ 7.47 $ 1.92 $ 1.75 |
Share-Based Arrangements (Table
Share-Based Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation, stock options, activity | Stock option activity is as follows: Options Weighted average- exercise price Options outstanding at December 31, 2018 935,252 $ 45.91 Granted 194,470 61.02 Exercised (373,015 ) 45.68 Forfeited or expired (20,343 ) 58.41 Options outstanding at December 31, 2019 736,364 $ 49.67 |
Schedule of share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding | The following table presents information regarding options outstanding as of December 31, 2019 : Weighted-average remaining contractual term - options outstanding (years) 6.2 Aggregate intrinsic value - options outstanding (in thousands) $ 12,171 Weighted-average exercise price - options outstanding $ 49.67 Options exercisable 312,121 Weighted-average remaining contractual term - options exercisable (years) 4.5 Aggregate intrinsic value - options exercisable (in thousands) $ 7,672 Weighted-average exercise price - options exercisable $ 41.62 |
Schedule of share-based payment award, stock options, valuation assumptions | 22. SHARE-BASED ARRANGEMENTS (CONTINUED) Stock Incentive Plan - continued The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model. The following table indicates the weighted-average assumptions used in estimating fair value: 2019 2018 2017 Expected option term (years) 4.9 4.9 5.0 Expected volatility 19.4 % 18.1 % 19.9 % Risk-free interest rate 2.5 % 2.6 % 1.9 % Expected dividend yield 1.3 % 1.5 % 1.6 % Per share fair value of options granted $ 11.18 $ 10.65 $ 8.61 |
Schedule of share-based compensation, restricted stock and restricted stock units activity | Restricted Stock Award and Restricted Stock Unit activity is as follows: Restricted Stock Awards Weighted- average grant date fair value Restricted Stock outstanding at December 31, 2018 143,697 $ 49.97 Granted 63,804 60.86 Vested (108,517 ) 52.81 Forfeited or expired (6,184 ) 57.62 Restricted Stock outstanding at December 31, 2019 92,800 $ 53.63 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Segments) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Accounting Policies [Abstract] | |
Primary business segments number | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Basis of Presentation) (Details) $ in Millions | Aug. 26, 2019USD ($) |
Basis of Presentation [Abstract] | |
Disposal Group, Including Discontinued Operation, Consideration | $ 700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Concentration) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Customers | Dec. 31, 2018USD ($)Customers | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Goodwill and Intangible Asset Impairment | $ | $ 10,039 | $ 0 | $ 0 |
Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 10.00% | |
Number of customers that exceeded threshold | 0 | 0 | |
Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 10.00% | |
Number of customers that exceeded threshold | 1 | 2 | |
Sales [Member] | |||
Concentration Risk [Line Items] | |||
Number of customers that exceeded threshold | 3 | 2 | |
Foreign sales | Sales Revenue, Net | |||
Concentration Risk [Line Items] | |||
Concentration risk | 44.40% | 37.90% | 44.50% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Additional Cash Flow) (Details) - USD ($) $ in Thousands | May 12, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Accrual for purchases of property and equipment | $ 800 | $ 2,900 | $ 3,600 | |
Gain (Loss) on Disposition of Business, Non Cash | (3,971) | (5,722) | 0 | |
Notes Reduction | 4,000 | |||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 3,100 | |||
Notes Issued | 2,500 | |||
Total net adjustment | 8,900 | 11,600 | 12,700 | |
Adjustments to other comprehensive income related to underfunding of pension and SERP plans and changes in fair value of derivative financial instruments, tax | 2,600 | 3,700 | 7,700 | |
Dividends declared but not yet paid | 5,600 | $ 5,600 | 5,600 | |
Treasury Stock, Not yet Paid | 1,700 | |||
Warrant | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Options issued in debt conversion (in shares) | 114,778 | |||
Stock conversion amount | $ 7,600 | |||
Bond Hedge Transactions - 2017 Notes [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Value of shares received | 7,500 | |||
2017 Notes | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Stock conversion amount | $ 7,500 | |||
Debt Conversion, Converted Instrument, Shares Issued | 136,347 | |||
2017 Notes | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Options issued in debt conversion (in shares) | 624,044 | 114,778 | ||
Stock conversion amount | $ 7,500 | |||
Debt Conversion, Converted Instrument, Shares Issued | 136,347 | |||
2017 Notes | Warrant | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Options issued in debt conversion (in shares) | 624,044 | |||
Stock conversion amount | $ 30,300 | |||
2017 Notes | Bond Hedge Transactions - 2017 Notes [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Shares received in noncash transaction (in shares) | 136,369 | |||
Distribution [Member] | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Gain (Loss) on Disposition of Business, Non Cash | $ 4,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Revenue Recognition) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 806,900 | $ 851,800 | ||
Revenues | $ 761,608 | $ 735,994 | $ 724,944 | |
Decrease to operating income from the quarterly impact of revisions in long term contracts | $ 5,700 | |||
Inventory Write-down | $ 32,500 | |||
Percentage of pre-contract inventory (less than) | 1.00% | 1.00% | ||
Performance obligations satisfied in previous periods [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenues | $ (4,600) | $ 6,700 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Cash and Cash Equivalents and Accounts Receivable) (Details) $ in Millions | Dec. 31, 2019USD ($)Integer | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | ||
Money Market Funds, at Carrying Value | $ 443.2 | |
Bank overdrafts | $ 1.6 | $ 0.7 |
Number of types of accounts receivable | Integer | 3 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Property Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Minimum [Member] | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 1 year |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum [Member] | Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum [Member] | Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Leasing) (Details) | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | |
Lessee, Finance Lease, Term of Contract | 5 years |
Real Estate [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Real Estate [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 8 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Term of Contract | 5 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets [Abstract] | |||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 10,039 | $ 0 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies (Unfulfilled Performance Obligations) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 806.9 | $ 851.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 511.8 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies (Self-Insured Retentions) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Total Liability/Deductible for Group Health Insurance Per Claim | $ 0.3 |
Total Liability/Deductible for Workers Compensation Per Claim | 0.4 |
Total Liability/Deductible for Product/General and Auto Insurance Per Claim | $ 0.3 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies (Research and Development) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of sales | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Customer funded research expenditures | $ 0.6 | $ 1.8 | $ 1.1 |
Operating expenses | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and development costs | $ 11.6 | $ 9.1 | $ 8.2 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies (Recent Accounting Standards) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (820,666) | $ (610,103) | |
Accounting Standards Update 2018-02 [Member] | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 23,100 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 18,500 |
Accounting Changes (Details)
Accounting Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | $ 761,608 | $ 735,994 | $ 724,944 |
Cost of Goods and Services Sold | 520,803 | 508,677 | 490,915 |
Gross Profit | 240,805 | 227,317 | 234,029 |
Selling, general and administrative expenses | 177,187 | 172,271 | 169,683 |
Impairment of Intangible Assets, Finite-lived | 0 | 10,039 | 0 |
Restructuring costs (Note 5) | 1,558 | 7,353 | 2,661 |
Gain (Loss) on Disposition of Business | 3,739 | 5,722 | 0 |
Net loss (gain) on sale of assets | 237 | (1,031) | (31) |
Operating income | 53,411 | 32,963 | 61,716 |
Interest expense, net | 17,202 | 20,046 | 20,578 |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (396) | (12,127) | (3,056) |
Other income, net | (309) | (92) | (728) |
Earnings before income taxes | 40,587 | 25,136 | 44,922 |
Income tax (benefit) expense | (15,859) | 9,259 | 25,214 |
Net earnings | $ 56,446 | 15,877 | $ 19,708 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | (59,683) | ||
Cost of Goods and Services Sold | (42,036) | ||
Gross Profit | (17,647) | ||
Selling, general and administrative expenses | (2,281) | ||
Impairment of Intangible Assets, Finite-lived | 0 | ||
Restructuring costs (Note 5) | 0 | ||
Gain (Loss) on Disposition of Business | 539 | ||
Net loss (gain) on sale of assets | 0 | ||
Operating income | (15,905) | ||
Interest expense, net | 0 | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 0 | ||
Other income, net | 0 | ||
Earnings before income taxes | (15,905) | ||
Income tax (benefit) expense | (2,486) | ||
Net earnings | (13,419) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Revenues | 676,311 | ||
Cost of Goods and Services Sold | 466,641 | ||
Gross Profit | 209,670 | ||
Selling, general and administrative expenses | 169,990 | ||
Impairment of Intangible Assets, Finite-lived | 10,039 | ||
Restructuring costs (Note 5) | 7,353 | ||
Gain (Loss) on Disposition of Business | 6,261 | ||
Net loss (gain) on sale of assets | (1,031) | ||
Operating income | 17,058 | ||
Interest expense, net | 20,046 | ||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (12,127) | ||
Other income, net | (92) | ||
Earnings before income taxes | 9,231 | ||
Income tax (benefit) expense | 6,773 | ||
Net earnings | $ 2,458 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 26, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 700,000 | |||
Costs of Transition Services Agreement | $ 4,673 | $ 0 | $ 0 | |
Income from transition services agreement | 3,673 | 0 | 0 | |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 21,834 | 1,816 | 1,667 | 21,834 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 151,756 | 150,317 | ||
Disposal Group, Including Discontinued Operations, Contract with Customer Asset Net | 9,600 | 9,128 | ||
Disposal Group, Including Discontinued Operation, Inventory | 163,343 | 163,995 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 24,746 | 20,289 | ||
Disposal Group, Including Discontinued Operation, Assets, Current | 0 | 351,261 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 47,112 | 51,039 | ||
Disposal Group, Including Discontinued Operation, Operating Lease, Right-of-Use Asset | 68,049 | |||
Disposal Group, Including Discontinued Operation, Goodwill | 149,204 | 149,204 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets | 32,440 | 28,361 | ||
Disposal Group, Including Discontinued Operation, Deferred Tax Assets | 146 | 133 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 336 | 195 | ||
Disposal Group, Including Discontinued Operation, Assets | 580,499 | 662,544 | ||
Disposal Group, Including Discontinued Operation, Accounts Payable | 101,801 | 67,975 | ||
Disposal Group, Including Discontinued Operations, Employee-Related Liabilities | 13,839 | 12,916 | ||
Disposal Group, Including Discontinued Operation, Operating Lease, Liability, Current | 19,981 | |||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 15,407 | 22,024 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0 | 131,047 | ||
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities | 13,630 | 78 | ||
Disposal Group, Including Discontinued Operation, Operating Lease, Lease Liability, Noncurrent | 48,130 | |||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 1,972 | 188 | ||
Disposal Group, Including Discontinued Operation, Liabilities | 146,649 | $ 171,292 | ||
Costs Associated with Disposal Activity | 33,100 | |||
Disposal Group, Including Discontinued Operation, Revenue | 748,451 | 1,139,431 | 1,080,965 | |
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 536,749 | 816,711 | 769,403 | |
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 211,702 | 322,720 | 311,562 | |
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 177,475 | 272,633 | 262,384 | |
Disposal Group, Including Discontinued Operation, Restructuring Costs | 0 | 655 | 0 | |
Disposal Group, Including Discontinued Operation, Gain Loss on Disposition of Other Assets | 8 | (669) | (225) | |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 34,219 | 50,101 | 49,403 | |
Disposal Group, Including Discontinued Operation, Interest Expense | 25 | 51 | 3 | |
Disposal Group, Including Discontinued Operation, Other Income | (12) | (51) | (56) | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 34,206 | 50,101 | 49,456 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 5,179 | 11,809 | 19,338 | |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 29,027 | 38,292 | 30,118 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 167,757 | 0 | 0 | |
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation | 43,401 | 0 | 0 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 124,356 | 0 | 0 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 153,383 | $ 38,292 | $ 30,118 | |
Proceeds from Sale of Discontinued Operations, Net of Transaction Costs and Working Capital Adjustments | 659,009 | |||
Cash Outflows [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | 7,800 | |||
Cash Inflows [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | $ 3,600 |
Revenue and Geographic Inform_4
Revenue and Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 761,608 | $ 735,994 | $ 724,944 |
Disposal Group, Including Discontinued Operations, Long-lived Assets | 229,200 | ||
Long-Lived Assets | $ 447,215 | $ 662,917 | |
Revenues, Percentage | 100.00% | 100.00% | 100.00% |
Deferred Tax Assets, Net | $ 35,240 | $ 38,000 | |
Deferred income taxes | 38,040 | ||
U.S. Government contracts | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 244,300 | 281,300 | $ 248,600 |
North America [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 438,638 | 485,856 | 437,326 |
Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 164,921 | 167,176 | 168,236 |
Middle East [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 114,110 | 51,565 | 81,197 |
Asia [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 19,326 | 16,998 | 24,614 |
Oceania [Domain] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14,598 | 8,739 | 10,837 |
Segment, Geographical, Groups of Countries, Group Six [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 10,015 | 5,660 | 2,734 |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Long-Lived Assets | 249,935 | 463,114 | |
GERMANY | |||
Disaggregation of Revenue [Line Items] | |||
Long-Lived Assets | 157,504 | 160,257 | |
UNITED KINGDOM | |||
Disaggregation of Revenue [Line Items] | |||
Long-Lived Assets | 32,834 | 32,378 | |
CZECH REPUBLIC | |||
Disaggregation of Revenue [Line Items] | |||
Long-Lived Assets | 5,753 | 6,077 | |
MEXICO | |||
Disaggregation of Revenue [Line Items] | |||
Long-Lived Assets | $ 1,189 | $ 1,091 | |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, Percentage | 39.00% | 48.00% | |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, Percentage | 61.00% | 52.00% | |
Military and Defense, other than fuzes [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 178,289 | $ 190,264 | 201,760 |
Missile and Bomb Fuzes [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 227,846 | $ 195,751 | $ 184,640 |
Revenues, Percentage | 30.00% | 27.00% | 25.00% |
Commercial Aerospace [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 355,473 | $ 349,979 | $ 338,544 |
Original Equipment Manufacturer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, Percentage | 58.00% | 56.00% | 57.00% |
Aftermarket [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues, Percentage | 12.00% | 17.00% | 18.00% |
Time-and-materials Contract [Member] | Minimum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Performance Obligation, Description of Timing | P30D | ||
Time-and-materials Contract [Member] | Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Performance Obligation, Description of Timing | P180D | ||
Fixed-price Contract [Member] | Minimum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Performance Obligation, Description of Timing | P30D | ||
Fixed-price Contract [Member] | Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, Performance Obligation, Description of Timing | P90D |
Restructuring Costs (Details)
Restructuring Costs (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Restructuring Reserve [Roll Forward] | |||||
Restructuring costs (Note 5) | $ 1,558 | $ 7,353 | $ 2,661 | ||
Inventory Write-down | $ 32,500 | ||||
Depreciation | 21,300 | 20,900 | 19,800 | ||
Gain (Loss) on Disposition of Business | 3,739 | 5,722 | 0 | ||
Severance Costs | 900 | 1,400 | |||
Employee Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrued Salaries | 500 | $ 500 | |||
Aerospace | |||||
Restructuring Reserve [Roll Forward] | |||||
Severance Costs | 400 | ||||
Corporate, Non-Segment | |||||
Restructuring Reserve [Roll Forward] | |||||
Severance Costs | 1,600 | ||||
2017 Announced Restructuring Plan [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual balance at December 31, 2018 | 1,580 | ||||
Provision | 183 | ||||
Cash payments | (1,379) | ||||
Changes in foreign currency exchange rates | (7) | ||||
Restructuring accrual balance at December 31, 2019 | 377 | 1,580 | 377 | ||
Expected restructuring costs | 9,500 | 9,500 | |||
Actual Savings Achieved by Exit Plan | 8,000 | ||||
Restructuring costs (Note 5) | 600 | 6,000 | 2,700 | 9,300 | |
Inventory Write-down | 300 | 800 | $ 1,000 | ||
Depreciation | 100 | ||||
Share-based Payment Arrangement, Accelerated Cost | 400 | ||||
2017 Announced Restructuring Plan [Member] | Employee Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual balance at December 31, 2018 | 1,022 | ||||
Provision | (15) | ||||
Cash payments | (999) | ||||
Changes in foreign currency exchange rates | (8) | ||||
Restructuring accrual balance at December 31, 2019 | 0 | 1,022 | 0 | ||
2017 Announced Restructuring Plan [Member] | Other Restructuring | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual balance at December 31, 2018 | 558 | ||||
Provision | 198 | ||||
Cash payments | (380) | ||||
Changes in foreign currency exchange rates | 1 | ||||
Restructuring accrual balance at December 31, 2019 | 377 | 558 | $ 377 | ||
U.K. Composites [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Accounts, Notes, Loans and Financing Receivable, Net, Current | 200 | ||||
Financing Receivable, before Allowance for Credit Loss, Noncurrent | 2,300 | ||||
U.K. Composites [Member] | Aerospace | |||||
Restructuring Reserve [Roll Forward] | |||||
Gain (Loss) on Disposition of Business | $ 3,700 | 5,700 | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | (1,700) | ||||
Engineering Services [Member] | Aerospace | |||||
Restructuring Reserve [Roll Forward] | |||||
Gain (Loss) on Disposition of Assets | $ 700 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Less allowance for doubtful accounts | $ (1,246) | $ (2,498) |
Accounts Receivable, after Allowance for Credit Loss, Current | 156,492 | 149,338 |
Contract changes, negotiated settlements and claims for unanticipated contract costs | 900 | 900 |
Trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 13,794 | 11,380 |
U.S. Government contracts | Billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 15,136 | 38,173 |
U.S. Government contracts | Costs and accrued profit – not billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 894 | 780 |
Commercial and other government contracts | Billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 120,427 | 100,603 |
Commercial and other government contracts | Costs and accrued profit – not billed | Contract receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 7,487 | $ 900 |
Contract Assets, Contract Cos_3
Contract Assets, Contract Costs and Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Current | $ 121,614 | $ 99,261 | |
Increase (Decrease) in Contract with Customer, Asset Current | $ 22,353 | ||
Increase (Decrease) in Contract with Customer Asset, Current, Percentage | 22.50% | ||
Capitalized Contract Cost, Net, Current | $ 6,052 | 5,993 | |
increase (Decrease) in Capitalized Contract Cost Current | $ 59 | ||
Increase (Decrease) in Capitalized Contract Cost, Current, Percentage | 1.00% | ||
Capitalized Contract Cost, Net, Noncurrent | $ 6,099 | 10,666 | |
Increase (Decrease) in Capitalized Contract Cost Noncurrent | $ (4,567) | ||
Increase (Decrease) in Capitalized Contract Cost, Noncurrent, Percentage | (42.80%) | ||
Contract with Customer, Liability, Current | $ 42,942 | 28,865 | |
Increase (Decrease) in Contract with Customer Liability, Current | $ 14,077 | ||
Increase (Decrease) in Contract with Customer Liability, Current, Percentage | 48.80% | ||
Contract with Customer, Liability, Noncurrent | $ 37,855 | 78,562 | |
Increase (Decrease) in Contract with Customer Liability, Noncurrent | $ (40,707) | ||
Increase (Decrease) in Contract with Customer Liability, Noncurrent, Percentage | (51.80%) | ||
Customer Advances and Progress Payments for Long-term Contracts or Programs | $ 30,200 | $ 30,300 | |
Capitalized Contract Cost, Amortization | 11,600 | 3,700 | |
Contract with Customer, Liability, Revenue Recognized | 48,500 | 12,100 | |
Contract Changes Negotiated Settlements and Claims [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with Customer, Asset, Net, Current | 3,745 | 2,909 | |
Costs to Fulfill [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Net | 6,600 | 8,900 | |
Costs to Obtain [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized Contract Cost, Net | $ 5,600 | $ 7,800 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Money Market Funds, at Carrying Value | $ 443,200 | ||
Impairment of Intangible Assets, Finite-lived | 0 | $ 10,039 | $ 0 |
U.K. Composites [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | 10,000 | ||
Debt(1) | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | 186,060 | 299,124 | |
Debt(1) | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 237,381 | $ 325,251 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2015USD ($)Integer | |
Derivative [Line Items] | |||
Reclassified expense from other comprehensive income | $ 0 | $ 0 | |
Expense related to cash flow hedges expected to be reclassified from other comprehensive income | $ 0 | ||
Interest rate swap | |||
Derivative [Line Items] | |||
Number of quarterly interest payments | Integer | 8 | ||
Variable rate revolving credit facility debt | $ 83,800,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Inventory [Line Items] | ||
Raw materials | $ 15,012 | $ 15,939 |
Contracts and other work in process (including certain general stock materials) | 36,130 | 41,166 |
Finished goods | 24,959 | 18,963 |
Inventories(1) | 156,353 | 131,569 |
Inventories include amounts associated with matters such as contract changes, negotiated settlements and claims for unanticipated contract costs | 400 | 500 |
Segment work in progress | 36,130 | 41,166 |
K-MAX® program | ||
Schedule of Inventory [Line Items] | ||
Total program inventory | 43,600 | 34,700 |
Inventory, Noncurrent | 22,500 | |
SH-2G(I) | ||
Schedule of Inventory [Line Items] | ||
Contracts and other work in process (including certain general stock materials) | 3,600 | 5,400 |
Segment work in progress | 3,600 | 5,400 |
Inventory, Noncurrent | 3,200 | |
U.S. Government contracts | ||
Schedule of Inventory [Line Items] | ||
U.S. Government | 6,217 | 6,030 |
Commercial and other government contracts | ||
Schedule of Inventory [Line Items] | ||
Commercial and other government contracts | $ 74,035 | $ 49,471 |
Property Plant and Equipment,_3
Property Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 350,999 | $ 329,397 | |
Less accumulated depreciation | (210,549) | (192,285) | |
Property, plant and equipment, net(1) | 140,450 | 137,112 | |
Depreciation | 21,300 | 20,900 | $ 19,800 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 16,319 | 14,408 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 101,562 | 100,005 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 14,904 | 14,626 | |
Machinery, office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 200,466 | 188,081 | |
Construction in process | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 17,748 | 12,277 | |
Assets Held under Finance Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 900 | 700 | $ 400 |
Finance Lease Assets, Gross | 10,900 | 10,800 | |
Finance Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | $ 2,400 | $ 1,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Gross balance at beginning of period | $ 212,413 | $ 218,765 | |
Accumulated impairment | $ (16,252) | (16,252) | $ (16,252) |
Net balance at beginning of period | 196,161 | 202,513 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | (447) | |
Foreign currency translation | (847) | (5,905) | |
Net balance at end of period(2) | $ 195,314 | $ 196,161 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | |||
Goodwill [Roll Forward] | |||
Fair value inputs, long-term revenue growth Rate | 0.01 | 0.01 | |
Measurement Input, Discount Rate [Member] | |||
Goodwill [Roll Forward] | |||
Fair value inputs, long-term revenue growth Rate | 0.01 | 0.01 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net (Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 84,214 | $ 84,982 | |
Accumulated Amortization | (30,775) | (26,415) | |
Intangible assets amortization expense | 4,500 | 7,000 | $ 7,500 |
Impairment of Intangible Assets, Finite-lived | 0 | 10,039 | $ 0 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||
2019 | 4,559 | ||
2020 | 4,524 | ||
2021 | 4,137 | ||
2022 | 4,118 | ||
2023 | 3,908 | ||
Customer lists / relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 56,789 | 57,263 | |
Accumulated Amortization | $ (21,415) | (18,587) | |
Customer lists / relationships | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years | ||
Customer lists / relationships | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 26 years | ||
Developed technologies | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 19,552 | 19,729 | |
Accumulated Amortization | $ (5,217) | (3,998) | |
Developed technologies | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 10 years | ||
Developed technologies | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 20 years | ||
Trademarks / trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 5,012 | 5,117 | |
Accumulated Amortization | $ (1,368) | (1,055) | |
Trademarks / trade names | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 15 years | ||
Trademarks / trade names | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 17 years | ||
Noncompete agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 2,338 | 2,350 | |
Accumulated Amortization | $ (2,321) | (2,330) | |
Noncompete agreements | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 1 year | ||
Noncompete agreements | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 15 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 17 years | ||
Gross Amount | $ 523 | 523 | |
Accumulated Amortization | $ (454) | (445) | |
U.K. Composites [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Finite-lived | 10,000 | ||
U.K. Composites [Member] | Customer lists / relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | (11,000) | ||
Other intangible assets net | $ 21,000 |
Environmental Costs (Schedule o
Environmental Costs (Schedule of Change in Environmental Remediation) (Details) - Accruals and Payable and Other Long Term Liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Balance at January 1 | $ 5,531 | $ 6,057 |
Additions to accrual | 1,122 | 0 |
Payments | (569) | (944) |
Changes in foreign currency exchange rates | (6) | 418 |
Balance at December 31 | $ 6,078 | $ 5,531 |
Environmental Costs (Details)
Environmental Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Aug. 31, 2008 | |
Accruals and Payable and Other Long Term Liabilities | ||||||
Site Contingency [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 6,078 | $ 5,531 | $ 6,057 | |||
Moosup | ||||||
Site Contingency [Line Items] | ||||||
Escrow deposit | $ 4,000 | 700 | $ 2,400 | $ 1,600 | ||
Environmental escrow contribution period | 4 years | |||||
Moosup | Liabilities, Other Accruals and Payables | ||||||
Site Contingency [Line Items] | ||||||
Accrual for environmental loss contingencies | 3,100 | |||||
Bloomfield | ||||||
Site Contingency [Line Items] | ||||||
Undiscounted estimated remediation liability | 6,503 | $ 20,800 | ||||
Discount rate | 8.00% | |||||
Accrual for environmental loss contingencies | $ 10,300 | |||||
Bloomfield | Liabilities, Other Accruals and Payables | ||||||
Site Contingency [Line Items] | ||||||
Accrual for environmental loss contingencies | $ 200 |
Environmental Costs (Schedule_2
Environmental Costs (Schedule of Future Payments for Environmental Remediation) (Details) - Bloomfield - USD ($) $ in Thousands | Dec. 31, 2019 | Aug. 31, 2008 |
Site Contingency [Line Items] | ||
2019 | $ 172 | |
2020 | 653 | |
2021 | 151 | |
2022 | 184 | |
2023 | 387 | |
Thereafter | 4,956 | |
Total | $ 6,503 | $ 20,800 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt and Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Long-term debt, gross | $ 186,060 | $ 299,124 |
Less current portion | 0 | 9,375 |
Total excluding current portion | 186,060 | 289,749 |
Debt issuance costs | $ 4,400 | $ 5,500 |
Long-term debt, weighted average interest rate | 3.25% | 3.44% |
2019 | $ 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 199,500 | |
Revolving Credit Facility | ||
Debt Instrument | ||
Long-term debt, gross | 0 | $ 38,500 |
Term Loan | ||
Debt Instrument | ||
Long-term debt, gross | 0 | 76,875 |
Convertible Notes | ||
Debt Instrument | ||
Long-term debt, gross | 186,060 | 183,749 |
Finance Lease Obligations [Member] | ||
Debt Instrument | ||
Other long-term liabilities | $ 5,600 | |
Capital Lease Obligations | ||
Debt Instrument | ||
Other long-term liabilities | $ 6,300 |
Debt (Convertible Debt) (Detail
Debt (Convertible Debt) (Details) | Nov. 13, 2017USD ($) | May 12, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Integer$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 13, 2019USD ($) | Sep. 27, 2019USD ($) | May 24, 2017USD ($) | Nov. 30, 2010USD ($) |
Debt Instrument | |||||||||
Amortization of debt issuance costs | $ 1,996,000 | $ 1,806,000 | $ 2,014,000 | ||||||
Proceeds from convertible debt | $ 0 | 0 | 200,000,000 | ||||||
Purchase of call options related to convertible notes | $ 20,500,000 | ||||||||
Share Price | $ / shares | $ 65.92 | ||||||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | $ 2,000,000 | ||||||||
Convertible Debt [Abstract] | |||||||||
Capped call transaction cap price (in dollars per share) | $ / shares | $ 88.7570 | ||||||||
Effective interest rate | 5.00% | ||||||||
Interest Expense, Debt [Abstract] | |||||||||
Accretion of convertible notes discount | 2,760,000 | 2,596,000 | 3,410,000 | ||||||
Proceeds from bond hedge settlement convertible notes | 0 | 0 | 58,564,000 | ||||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | (137,000) | ||||||
2024 Notes | |||||||||
Debt Instrument | |||||||||
Convertible notes face amount | 199,500,000 | 200,000,000 | $ 200,000,000 | ||||||
Unamortized discount | 13,440,000 | 16,251,000 | |||||||
Carrying value of liability | 186,060,000 | 183,749,000 | 179,500,000 | ||||||
Amount before overallotment | $ 175,000,000 | ||||||||
Debt Instrument face amount overallotment | 25,000,000 | ||||||||
Annual principal interest rate | 3.25% | ||||||||
Multiple, Debt Instrument | $ 1,000 | $ 1,000 | |||||||
Debt Instrument, Repurchased Face Amount | $ 500,000 | ||||||||
Percent, Debt Instrument, Repurchase Amount | 0.25% | ||||||||
Equity component | 20,408,000 | 20,459,000 | 20,500,000 | ||||||
Deferred finance costs, gross | (7,400,000) | ||||||||
Amortization of debt issuance costs | $ 900,000 | 800,000 | 500,000 | ||||||
Convertible Debt [Abstract] | |||||||||
Conversion rate | 15.3227 | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 65.2626 | ||||||||
Contingent conversion price (in dollars per shares) | $ / shares | $ 84.8413 | ||||||||
Aggregate shares to be issued upon conversion, convertible (in shares) | shares | 3,056,879 | ||||||||
Convertible debt stock price threshold trigger percent | 130.00% | ||||||||
Convertible debt trading days threshold | Integer | 20 | ||||||||
Convertible, threshold consecutive trading days | Integer | 30 | ||||||||
Percentage of average of closing price of common stock | 98.00% | ||||||||
Debt issuance costs, recorded to APIC | 700,000 | ||||||||
Debt issuance costs, recorded as contra-debt | $ 6,700,000 | ||||||||
Interest Expense, Debt [Abstract] | |||||||||
Contractual coupon rate of interest | $ 6,503,000 | 6,500,000 | 4,207,000 | ||||||
Accretion of convertible notes discount | 2,753,000 | 2,596,000 | 1,612,000 | ||||||
Interest expense | 9,256,000 | $ 9,096,000 | 5,819,000 | ||||||
2017 Notes | |||||||||
Debt Instrument | |||||||||
Convertible notes face amount | $ 115,000,000 | ||||||||
Carrying value of liability | $ 113,943,000 | ||||||||
Options issued in debt conversion (in shares) | shares | 624,044 | 114,778 | |||||||
Annual principal interest rate | 3.25% | ||||||||
Debt Instrument, Repurchased Face Amount | $ 11,500,000 | $ 103,500,000 | |||||||
Convertible Debt [Abstract] | |||||||||
Effective interest rate | 3.00% | ||||||||
Interest Expense, Debt [Abstract] | |||||||||
Contractual coupon rate of interest | 3,300,000 | ||||||||
Accretion of convertible notes discount | $ 1,000,000 | 1,800,000 | |||||||
Repurchase of debt fair value equity component | 60,000,000 | ||||||||
Convertible debt repurchased carrying value | 102,548,000 | ||||||||
Repurchase of debt fair value debt component | 103,637,000 | ||||||||
Gain loss) on extinguishment of debt, before write off of debt issuance cost | (1,089,000) | ||||||||
Write off of Deferred Debt Issuance Cost | 297,000 | ||||||||
Proceeds from bond hedge settlement convertible notes | $ 58,600,000 | ||||||||
Percent of repurchase principal | 10.00% | 90.00% | |||||||
Debt Instrument, Repurchase Amount | $ 165,300,000 | ||||||||
Gain (Loss) on Extinguishment of Debt | (1,386,000) | ||||||||
Stock conversion amount | 7,500,000 | ||||||||
Revolving Credit Facility | |||||||||
Debt Instrument | |||||||||
Amortization of debt issuance costs | 1,000,000 | ||||||||
Credit Agreement 2019 [Member] | Revolving Credit Facility | |||||||||
Interest Expense, Debt [Abstract] | |||||||||
Line of credit, credit agreement | $ 800,000,000 | $ 800,000,000 | |||||||
Credit Agreement 2015 | Revolving Credit Facility | |||||||||
Debt Instrument | |||||||||
Amortization of debt issuance costs | $ 1,000,000 | $ 1,000,000 | |||||||
Interest Expense, Debt [Abstract] | |||||||||
Line of credit, credit agreement | $ 600,000,000 |
Debt (Revolving Credit and Term
Debt (Revolving Credit and Term Loan Agreements) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2024 | Dec. 31, 2019USD ($)Integer | Dec. 13, 2019USD ($) | Dec. 31, 2018USD ($) | May 06, 2015USD ($) | |
Debt Instrument | |||||
Outstanding balance under revolving credit agreement | $ 186,060 | $ 299,124 | |||
Revolving Credit Facility | |||||
Debt Instrument | |||||
Outstanding balance under revolving credit agreement | 0 | 38,500 | |||
Term Loan | |||||
Debt Instrument | |||||
Outstanding balance under revolving credit agreement | $ 0 | $ 76,875 | |||
Credit Agreement 2019 [Member] | |||||
Debt Instrument | |||||
Interest rate at period end | 0.00% | ||||
Consolidated total leverage ratio | 4.50 | ||||
Consolidated total indebtedness to consolidated EBITDA, ratio | 4 | ||||
Debt instrument, basis points | 1 | ||||
Number of consecutive quarters | Integer | 4 | ||||
Minimum liquidity debt covenant under credit agreement | 50.00% | ||||
Credit Agreement 2019 [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 800,000 | $ 800,000 | |||
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 3,600 | ||||
Line of credit, amount outstanding | 0 | ||||
Remaining borrowing capacity excluding letters of credit | 800,000 | ||||
Available borrowing capacity | 647,386 | ||||
Remaining borrowing capacity subject to EBITDA limitations | $ 322,900 | ||||
Credit Agreement 2019 [Member] | Collateral Member One | Line of Credit | |||||
Debt Instrument | |||||
Equity interest In certain foreign subsidiaries | 66.00% | ||||
Credit Agreement 2019 [Member] | Collateral Member Two | Line of Credit | |||||
Debt Instrument | |||||
Equity interest in domestic subsidiaries | 100.00% | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Interest Coverage Ratio | 1 | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Commitment fee percentage | 0.15% | ||||
Credit Agreement 2019 [Member] | Minimum [Member] | Letter of Credit | |||||
Debt Instrument | |||||
Commitment fee percentage | 1.125% | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Interest Coverage Ratio | 3 | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | Revolving Credit Facility | |||||
Debt Instrument | |||||
Commitment fee percentage | 0.25% | ||||
Credit Agreement 2019 [Member] | Maximum [Member] | Letter of Credit | |||||
Debt Instrument | |||||
Commitment fee percentage | 1.625% | ||||
Credit Agreement 2015 | |||||
Debt Instrument | |||||
Interest rate at period end | 3.74% | ||||
Credit Agreement 2015 | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 600,000 | ||||
Line of credit, amount outstanding | 38,500 | ||||
Remaining borrowing capacity excluding letters of credit | 561,500 | ||||
Available borrowing capacity | 408,887 | ||||
Remaining borrowing capacity subject to EBITDA limitations | 323,532 | ||||
Credit Agreement 2015 | Co-lead Arrangers Bank of America Securities LLC, JP Morgan Securities LLC, and RBS Citizens N.A. and a Syndicate of Lenders | Revolving Credit Facility | |||||
Debt Instrument | |||||
Line of credit, credit agreement | $ 600,000 | ||||
Letter of Credit | Revolving Credit Facility | |||||
Debt Instrument | |||||
Letters of credit outstanding amount | $ 152,614 | $ 152,613 | |||
Forecast [Member] | Credit Agreement 2019 [Member] | |||||
Debt Instrument | |||||
Minimum liquidity debt covenant under credit agreement | 100.00% |
Debt (Debt Issuance Costs) (Det
Debt (Debt Issuance Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument | |||
Amortization of debt issuance costs | $ 1,996 | $ 1,806 | $ 2,014 |
Interest paid | 15,700 | 16,000 | 17,900 |
2024 Notes | |||
Debt Instrument | |||
Deferred finance costs, gross | 7,400 | ||
Amortization of debt issuance costs | 900 | 800 | 500 |
Revolving Credit Facility | |||
Debt Instrument | |||
Amortization of debt issuance costs | $ 1,000 | ||
Credit Agreement 2015 | Revolving Credit Facility | |||
Debt Instrument | |||
Amortization of debt issuance costs | $ 1,000 | $ 1,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (134,898) | |||
Other comprehensive income (loss) | 7,099 | $ (19,084) | $ 40,579 | |
Ending balance | (150,893) | (134,898) | ||
Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (14,579) | (7,054) | ||
Other comprehensive income (loss), before reclassifications | (1,772) | (7,525) | ||
Reclassification to net income | 1,772 | 9,255 | ||
Ending balance | (16,351) | (14,579) | (7,054) | |
Pension and other post-retirement benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | [1] | (120,319) | (108,760) | |
Other comprehensive income (loss) | [1] | 8,871 | (11,559) | |
Ending balance | [1] | (134,542) | (120,319) | $ (108,760) |
Accumulated Defined Benefit Plan & SERP, Stranded Tax Effects [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification to net income | [1] | (23,094) | 0 | |
Amortization of net loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification to net income | [1] | 11,971 | 8,800 | |
Reclassification from AOCI, tax | (3,534) | (2,818) | ||
Change in net gain | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Reclassification to net income | [1] | (3,100) | (20,359) | |
Reclassification from AOCI, tax | 915 | 6,519 | ||
U.K. Composites [Member] | Foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ 0 | $ 1,730 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 17, Pension Plans |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (19,432) | $ 351 | $ 2,841 |
State | 1,996 | 104 | (626) |
Foreign | 585 | 1,191 | 2,341 |
Total, Current | (16,851) | 1,646 | 4,556 |
Deferred: | |||
Federal | 719 | 7,145 | 20,531 |
State | 277 | 841 | (60) |
Foreign | (4) | (373) | 187 |
Total, Deferred | 992 | 7,613 | 20,658 |
Income tax (benefit) expense | $ (15,859) | $ 9,259 | $ 25,214 |
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Excess tax benefit share based compensation | $ 500 | $ 900 | $ 800 |
Tax adjustments, settlements, and unusual provisions | $ 9,700 | ||
Effective Income Tax Rate Reconciliation, Deduction, Percent | 13.00% |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 10,000 | ||
Deferred tax assets: | |||
Deferred employee benefits | 36,678 | $ 43,118 | |
Tax loss and credit carryforwards | 19,449 | 17,610 | |
Accrued liabilities and other items | 14,044 | 9,036 | |
Total deferred tax assets | 70,171 | 69,764 | |
Deferred tax liabilities: | |||
Property, plant and equipment | (6,410) | (2,677) | |
Intangibles | (27,147) | (27,732) | |
Other items | (226) | (218) | |
Deferred Tax Liabilities, Gross | 33,783 | 30,627 | |
Net Deferred Tax Assets Before Valuation Allowance | 36,388 | 39,137 | |
Valuation allowance | (8,142) | (8,243) | |
Net deferred tax assets after valuation allowance | 28,246 | 30,894 | |
Pre-tax income (loss) from foreign operations | $ (4,000) | $ (27,100) | $ 1,000 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Federal tax at statutory rate(1) | $ 8,523 | $ 5,279 | $ 15,722 |
State income taxes, net of federal benefit(2) | 1,839 | 773 | (584) |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | (3,480) | (100) | (100) |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | (1,466) | (1,612) | 366 |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 1,282 | 2,685 | 0 |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 976 | 3,161 | 861 |
Impact of tax rate changes, including Tax Reform | 68 | 193 | 10,032 |
Other, net | $ 257 | $ 1,629 | $ 1,373 |
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Income tax (benefit) expense | $ (15,859) | $ 9,259 | $ 25,214 |
Excess tax benefit share based compensation | 500 | 900 | 800 |
Section 199 Manufacturing Deduction [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 0 | 0 | 1,616 |
Entity Classification Election [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
State income taxes, net of federal benefit(2) | 900 | ||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 24,813 | 0 | 0 |
Foreign Derived Intangible Income Benefit [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 0 | 2,186 | 0 |
Equity awards granted to employees | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 482 | 910 | 851 |
Discontinued Operations, Disposed of by Sale [Member] | Foreign Derived Intangible Income Benefit [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Deduction, Amount | 3,400 | ||
Compensation [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | 891 | 347 | 11 |
Acquisition-related Costs [Member] | |||
Effective Income Tax Rate Reconciliation [Line Items] | |||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 546 | $ 0 | $ 0 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 200 | $ 400 | $ 400 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | 3,457 | 3,423 | 2,832 |
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | (378) | ||
Additions based on current year tax positions | 162 | 381 | |
Changes for tax positions of prior years | 135 | 152 | |
Changes for tax positions of prior years | (128) | ||
Settlements | 0 | ||
Settlements | 0 | 58 | |
Balance at December 31 | 3,214 | 3,457 | 3,423 |
Unrecognized tax benefits that would impact effective tax rate | 2,800 | ||
Unrecognized tax benefits, income tax penalties and interest expense ($0.1 million or less) | 200 | 200 | |
Income taxes paid, net | $ 47,800 | $ 12,400 | $ 16,600 |
Pension Plans (Obligations and
Pension Plans (Obligations and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Fair value of plan assets at beginning of year | $ 590,387 | ||||
Fair value of plan assets at end of year | 680,142 | $ 590,387 | |||
Noncurrent liabilities | (97,246) | (104,988) | |||
Qualified Pension Plan | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation at beginning of year | 695,375 | 770,316 | |||
Service cost | 5,100 | 4,897 | $ 4,794 | ||
Interest cost | 26,422 | 23,804 | 24,358 | ||
Actuarial liability loss (gain) (1) | [1] | 88,271 | (67,157) | ||
Benefit payments | 37,780 | 36,485 | |||
Projected benefit obligation at end of year | 777,388 | 695,375 | 770,316 | ||
Fair value of plan assets at beginning of year | 590,387 | 643,392 | |||
Actual return on plan assets | 127,535 | (46,520) | |||
Employer contributions | 0 | 30,000 | |||
Fair value of plan assets at end of year | 680,142 | 590,387 | 643,392 | ||
Funded status at end of year | (97,246) | (104,988) | |||
Accumulated benefit obligation | 777,388 | 695,375 | |||
Current liabilities | 0 | [2] | 0 | ||
Noncurrent liabilities | (97,246) | (104,988) | |||
Total | (97,246) | (104,988) | |||
Unrecognized loss | 177,083 | 189,047 | |||
Amount included in accumulated other comprehensive income | 177,083 | 189,047 | |||
Expected amortization defined benefit plan | 4,600 | ||||
SERP | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation at beginning of year | 6,913 | 7,896 | |||
Service cost | 0 | 0 | 0 | ||
Interest cost | 237 | 246 | 241 | ||
Actuarial liability loss (gain) (1) | [1] | 720 | (280) | ||
Benefit payments | 534 | 949 | |||
Projected benefit obligation at end of year | 7,336 | 6,913 | 7,896 | ||
Fair value of plan assets at beginning of year | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 534 | 949 | |||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | ||
Funded status at end of year | (7,336) | (6,913) | |||
Accumulated benefit obligation | 7,336 | 6,913 | |||
Current liabilities | (528) | (529) | |||
Noncurrent liabilities | (6,808) | (6,384) | |||
Total | (7,336) | (6,913) | |||
Unrecognized loss | 1,311 | 837 | |||
Amount included in accumulated other comprehensive income | 1,311 | $ 837 | |||
Expected amortization defined benefit plan | $ 900 | ||||
[1] | The actuarial liability loss (gain) amount for the qualified pension plan for 2019 and 2018 is principally due to the effect of changes in the discount rate. | ||||
[2] | (1) |
Pension Plans (Pension Plan Net
Pension Plans (Pension Plan Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the year | $ 5,100 | $ 4,897 | $ 4,794 |
Interest cost on projected benefit obligation | (26,422) | (23,804) | (24,358) |
Expected return on plan assets | (42,560) | (47,841) | (42,049) |
Recognized net loss | 15,260 | 11,370 | 13,943 |
Additional amount recognized due to curtailment/settlement | 0 | 0 | 0 |
Net pension benefit cost (income) | 4,222 | (7,770) | 1,046 |
Change in net gain or (loss) | 3,295 | 27,203 | (6,607) |
Amortization of net loss | (15,260) | (11,370) | (13,943) |
Total recognized in other comprehensive (loss) income | (11,965) | 15,833 | (20,550) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | (7,743) | 8,063 | (19,504) |
SERP | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the year | 0 | 0 | 0 |
Interest cost on projected benefit obligation | (237) | (246) | (241) |
Expected return on plan assets | 0 | 0 | 0 |
Recognized net loss | 245 | 248 | 146 |
Additional amount recognized due to curtailment/settlement | 0 | 46 | 305 |
Net pension benefit cost (income) | 482 | 540 | 692 |
Change in net gain or (loss) | 720 | (325) | 347 |
Amortization of net loss | (245) | (248) | (146) |
Total recognized in other comprehensive (loss) income | 475 | (573) | 201 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ 957 | $ (33) | $ 893 |
Pension Plans (Contributions) (
Pension Plans (Contributions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified Pension Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Expected amortization defined benefit plan | $ 4,600 | |
Contributions | 0 | $ 30,000 |
Expected contributions during 2020(1) | 10,000 | |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block | ||
Expected amortization defined benefit plan | 900 | |
Contributions | 534 | $ 949 |
Expected contributions during 2020(1) | $ 528 |
Pension Plans (Expected Future
Pension Plans (Expected Future Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2020 | $ 39,368 | |
2021 | 40,664 | |
2022 | 41,966 | |
2023 | 43,107 | |
2024 | 44,127 | |
2025-2029 | $ 225,251 | |
Discount rate | 3.14% | 4.17% |
Discount rate for calculating net periodic benefit cost | 4.17% | 3.50% |
Expected return on plan assets | 7.50% | 7.50% |
SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
2020 | $ 528 | |
2021 | 2,554 | |
2022 | 494 | |
2023 | 474 | |
2024 | 451 | |
2025-2029 | $ 1,863 | |
Discount rate | 2.76% | 3.88% |
Discount rate for calculating net periodic benefit cost | 3.88% | 3.15% |
Pension Plans (Plan Assets for
Pension Plans (Plan Assets for Qualified Pension Plan) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value plan assets before accrued income | $ 677,999 | $ 588,482 | |
Defined benefit plan, fair value of plan assets, accrued income | 2,143 | 1,905 | |
Total carrying value | 680,142 | 590,387 | |
Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value plan assets before accrued income | 164,144 | 151,500 | |
Defined benefit plan, fair value of plan assets, accrued income | 67 | 113 | |
Total carrying value | 164,211 | 151,613 | |
Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value plan assets before accrued income | 193,923 | 155,918 | |
Defined benefit plan, fair value of plan assets, accrued income | 2,021 | 1,740 | |
Total carrying value | 195,944 | 157,658 | |
Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value plan assets before accrued income | 0 | 0 | |
Defined benefit plan, fair value of plan assets, accrued income | 0 | 0 | |
Total carrying value | 0 | 0 | |
Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value plan assets before accrued income | 319,932 | 281,064 | |
Defined benefit plan, fair value of plan assets, accrued income | 55 | 52 | |
Total carrying value | 319,987 | 281,116 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 17,597 | 17,752 | |
Cash and cash equivalents | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 17,597 | 17,752 | |
Cash and cash equivalents | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Cash and cash equivalents | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Cash and cash equivalents | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 195,133 | 151,895 | |
Fixed income securities | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Fixed income securities | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 195,133 | 151,895 | |
Fixed income securities | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Fixed income securities | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 102,423 | 99,584 | |
Mutual funds | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 102,423 | 99,584 | |
Mutual funds | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Mutual funds | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Mutual funds | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Common trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | [1] | 319,932 | 281,064 |
Common trust funds | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Common trust funds | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Common trust funds | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Common trust funds | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 319,932 | 281,064 | |
Corporate stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 44,124 | 34,164 | |
Corporate stock | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 44,124 | 34,164 | |
Corporate stock | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Corporate stock | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Corporate stock | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Assets | Futures contracts - liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 4,023 | |
Assets | Futures contracts - liabilities | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Assets | Futures contracts - liabilities | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 4,023 | |
Assets | Futures contracts - liabilities | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Assets | Futures contracts - liabilities | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Liability | Futures contracts - liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 1,210 | 0 | |
Liability | Futures contracts - liabilities | Quoted prices in active markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Liability | Futures contracts - liabilities | Significant other observable inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 1,210 | 0 | |
Liability | Futures contracts - liabilities | Significant unobservable inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | 0 | 0 | |
Liability | Futures contracts - liabilities | Not Subject to Leveling [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total carrying value | $ 0 | $ 0 | |
[1] | 1) In accordance with ASU 2015-07, Fair Value Measurement (Topic 820), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented for the total pension plan assets. |
Pension Plans (Other Plans) (De
Pension Plans (Other Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on pension plan assets | 22.10% | ||
Maximize return | 43.50% | ||
Liquidity | 56.50% | ||
Defined contribution, maximum contribution limit | 5.00% | ||
Qualified Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.50% | 7.50% | |
Managers’ securities holdings percentage maximum limit of total market value | 7.50% | ||
Continuing Operations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contributions | $ 7.1 | $ 6.8 | $ 6.5 |
Discontinued Operations, Disposed of by Sale [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer contributions | 4.5 | $ 6.3 | $ 6.1 |
Pension Costs [Member] | |||
Payment for Pension and Other Postretirement Benefits [Abstract] | |||
Accrual for payments due to customer under agreement | $ 0.3 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Long-Term Liabilities [Line Items] | ||
Supplemental employees' retirement plan (SERP) | $ 97,246 | $ 104,988 |
Total other long-term liabilities(1) | 56,415 | 51,875 |
Other Liabilities | ||
Other Long-Term Liabilities [Line Items] | ||
Supplemental employees' retirement plan (SERP) | 6,808 | 6,384 |
Deferred compensation | 20,768 | 17,885 |
Long-term incentive plan | 10,527 | 9,821 |
Noncurrent income taxes payable | 3,390 | 3,371 |
Environmental remediation liability | 5,525 | 4,610 |
Finance leases | 5,559 | 6,261 |
Other | $ 3,838 | $ 3,543 |
Commitments and Contingencies (
Commitments and Contingencies (Textuals) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 15, 2018 | Dec. 31, 2017 | Aug. 31, 2008 | |
Accruals and Payable and Other Long Term Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 6,078 | $ 5,531 | $ 6,057 | ||
Accrual for environmental loss contingencies, payments | 569 | 944 | |||
Additions to accrual | 1,122 | $ 0 | |||
New Hartford | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 2,300 | ||||
Accrual for environmental loss contingencies, payments | 1,600 | ||||
Accrual for payments due to customer under agreement | 700 | ||||
New Hartford | Liabilities, Other Accruals and Payables | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 100 | ||||
Bloomfield | |||||
Loss Contingencies [Line Items] | |||||
Environmental liability, discounted amount | $ 10,300 | ||||
Undiscounted estimated remediation liability | 6,503 | $ 20,800 | |||
Discount rate | 8.00% | ||||
Accrual for environmental loss contingencies | $ 10,300 | ||||
Accrual for environmental loss contingencies, payments | 14,300 | ||||
Accrual for payments due to customer under agreement | 2,000 | ||||
Bloomfield | Liabilities, Other Accruals and Payables | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | 200 | ||||
Offset Agreement [Member] | |||||
Loss Contingencies [Line Items] | |||||
Notional Amount of Nonderivative Instruments | $ 194,000 | ||||
Notional Value of Contract, Percent | 60.00% | ||||
Contractual Obligation | $ 324,000 | ||||
Loss Contingency, Estimate of Possible Loss | $ 16,500 | ||||
Employee-Related Tax Matter [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 2,500 | ||||
Pension Costs [Member] | |||||
Loss Contingencies [Line Items] | |||||
Accrual for payments due to customer under agreement | $ 300 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Finance Lease, Term of Contract | 5 years | |
Operating Lease, Right-of-Use Asset | $ 15,159 | $ 0 |
Finance Lease, Right-of-Use Asset | 5,840 | |
Lease, Right-of-Use Assets | 20,999 | |
Operating Lease, Liability, Current | 4,306 | 0 |
Finance Lease, Liability, Current | 1,838 | 1,803 |
Operating Lease, Liability, Noncurrent | 11,617 | 0 |
Finance Lease, Liability, Noncurrent | 5,559 | 6,260 |
Lease Liabilities | 23,320 | 8,063 |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 5,164 | 4,800 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 4,095 | 4,500 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3,285 | 3,700 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2,728 | 3,100 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 2,059 | 2,600 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 0 | 2,000 |
Lessee, Operating Lease, Liability, Payments, Due | 17,331 | 20,700 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,408) | |
Operating Lease, Liability | 15,923 | |
Finance Lease, Liability, Payments, Due Next Twelve Months | 2,114 | 1,800 |
Finance Lease, Liability, Payments, Due Year Two | 1,965 | 1,800 |
Finance Lease, Liability, Payments, Due Year Three | 1,705 | 1,700 |
Finance Lease, Liability, Payments, Due Year Four | 1,189 | 1,500 |
Finance Lease, Liability, Payments, Due Year Five | 703 | 1,000 |
Finance Lease, Liability, Payments, Due after Year Five | 0 | 300 |
Finance Lease, Liability, Payment, Due | 7,676 | 8,100 |
Finance Lease, Liability, Undiscounted Excess Amount | (279) | |
Finance Lease, Liability | 7,397 | |
Finance Lease, Right-of-Use Asset, Amortization | 941 | |
Finance Lease, Interest Expense | 297 | |
Operating Lease, Cost | 5,064 | |
Short-term Lease, Cost | 177 | |
Variable Lease, Cost | 83 | |
Lease, Cost | 6,562 | |
Operating Lease, Payments | (4,950) | |
Finance Lease, Principal Payments | (1,609) | |
Finance Lease, Interest Payment on Liability | (297) | |
Lessee, Lease Payments | (6,856) | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,400 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 1,500 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 1 month 9 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 3 months 18 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.32% | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.04% | |
Machinery and Equipment [Member] | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 5 years | |
Real Estate [Member] | Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 3 years | |
Real Estate [Member] | Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Term of Contract | 8 years | |
Assets Held under Finance Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease Assets, Gross | $ 10,900 | 10,800 |
Finance Leases, Lessee Balance Sheet, Assets by Major Class, Accumulated Depreciation | 2,400 | $ 1,500 |
Assets Held under Finance Leases [Member] | Machinery and Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease Assets, Gross | 8,200 | |
Assets Held under Finance Leases [Member] | Asset under Construction [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease Assets, Gross | $ 2,700 |
Computation of Earnings Per S_3
Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 153,383 | $ 38,292 | $ 30,118 |
Net earnings | $ 56,446 | $ 15,877 | $ 19,708 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ 5.49 | $ 1.37 | $ 1.09 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | 5.46 | 1.36 | 1.06 |
Diluted earnings per share (in dollars per share) | $ 7.47 | $ 1.92 | $ 1.75 |
Basic: | |||
Weighted average number of shares outstanding (in shares) | 27,936,000 | 27,945,000 | 27,611,000 |
Diluted: | |||
Weighted average number of shares outstanding (in shares) | 27,936,000 | 27,945,000 | 27,611,000 |
Earnings Per Share, Basic (in dollars per share) | $ 7.51 | $ 1.94 | $ 1.80 |
Weighted average shares issuable on exercise of dilutive stock options (in shares) | 156,000 | 208,000 | 160,000 |
Weighted average shares issuable on exercise of convertible notes (in shares) | 0 | 37,000 | 466,000 |
Weighted average shares issuable on exercise of warrants related to 2017 Notes (in shares) | 0 | 33,000 | 181,000 |
Weighted average number of shares outstanding, diluted (in shares) | 28,092,000 | 28,223,000 | 28,418,000 |
Equity awards granted to employees | |||
Diluted: | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | 339,961 | 186,115 | 245,361 |
2013 Management Incentive Plan [Member] | Performance-based and Market-based Stock Awards [Member] | 2016 Grant [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 130.00% |
Share-Based Arrangements (Compe
Share-Based Arrangements (Compensation Arrangements by Share-based Payment Award) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 4,669 | $ 5,484 | $ 4,902 |
Continuing Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | 4,700 | 5,500 | 4,900 |
Discontinued Operations, Disposed of by Sale [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | 2,900 | $ 1,000 | $ 1,100 |
Share Based Compensation Arrangement by Share Based Payment Award Plan Modification Reduction in Compensation Cost | (400) | ||
Share-based Payment Arrangement, Accelerated Cost | 2,800 | ||
Share based Compensation Arrangement by Share based Payment Award Accelerated Compensation Cost and Modification | 2,400 | ||
Earnings from Discontinued Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 500 |
Share-Based Arrangements (Stock
Share-Based Arrangements (Stock Incentive Plan) (Details) | 12 Months Ended | ||
Dec. 31, 2019shares | Apr. 18, 2018shares | Apr. 17, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized under the plan for each award issued, fair value awards | 3 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting rate | 0.20 | ||
Share-based payment award, vesting period | 5 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Award vesting rate | 0.20 | ||
Share-based payment award, vesting period | 5 years | ||
2013 Management Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized (in shares) | 2,250,000 | 2,250,000 | |
Number of shares available for grant (in shares) | 2,199,160 | ||
2013 Management Incentive Plan [Member] | LTIP Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% | ||
Minimum [Member] | 2013 Management Incentive Plan [Member] | LTIP Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Maximum [Member] | 2013 Management Incentive Plan [Member] | LTIP Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||
2016 Grant [Member] | 2013 Management Incentive Plan [Member] | Performance-based and Market-based Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 130.00% | ||
Granted (in shares) | 925 |
Share-Based Arrangements (Sto_2
Share-Based Arrangements (Stock Options Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of period (in shares) | 935,252 | |||
Granted (in shares) | 194,470 | |||
Exercised (in shares) | (373,015) | |||
Forfeited or expired (in shares) | (20,343) | |||
Outstanding at end of period (in shares) | 736,364 | 935,252 | ||
Options, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding at beginning of period (in dollars per share) | $ 45.91 | |||
Granted (in dollars per share) | 61.02 | |||
Exercised (in dollars per share) | 45.68 | |||
Forfeited or expired (in dollars per share) | 58.41 | |||
Outstanding at end of period (in dollars per share) | $ 49.67 | $ 45.91 | ||
Options, Additional Disclosures [Abstract] | ||||
Weighted-average remaining contractual term - options outstanding | 6 years 2 months 12 days | |||
Aggregate intrinsic value - options outstanding | $ 12,171 | |||
Weighted-average exercise price - options outstanding (in dollars per share) | $ 49.67 | $ 45.91 | $ 49.67 | |
Options exercisable (in shares) | 312,121 | |||
Weighted-average remaining contractual term - options exercisable | 4 years 6 months | |||
Aggregate intrinsic value - options exercisable | $ 7,672 | |||
Weighted-average exercise price - options exercisable (in dollars per share) | $ 41.62 | |||
Intrinsic value of options exercised | $ 6,200 | $ 5,200 | $ 3,900 | |
Options, Fair Value Assumptions and Methodology [Abstract] | ||||
Expected option term | 4 years 10 months 24 days | 4 years 10 months 24 days | 5 years | |
Expected volatility | 19.40% | 18.10% | 19.90% | |
Risk-free interest rate | 2.50% | 2.60% | 1.90% | |
Expected dividend yield | 1.30% | 1.50% | 1.60% | |
Per share fair value of options granted | $ 11.18 | $ 10.65 | $ 8.61 |
Share-Based Arrangements (Restr
Share-Based Arrangements (Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Restricted Stock, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 143,697 | ||
Granted (in shares) | 63,804 | ||
Vested (in shares) | (108,517) | ||
Forfeited or expired (in shares) | (6,184) | ||
Outstanding at end of period (in shares) | 92,800 | 143,697 | |
Restricted Stock, Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning of period (in dollars per share) | $ 49.97 | ||
Granted (in dollars per share) | 60.86 | ||
Vested (in dollars per share) | 52.81 | ||
Forfeited or expired (in dollars per share) | 57.62 | ||
Outstanding at end of period (in dollars per share) | $ 53.63 | $ 49.97 | |
Total fair value of restricted stock awards vested | $ 6.5 | $ 3.6 | $ 5.7 |
Nonqualified Stock Options and Restricted Stock | |||
Restricted Stock, Weighted-Average Grant Date Fair Value [Roll Forward] | |||
Tax benefit from compensation expense | 1.6 | $ 1.4 | $ 2 |
Compensation cost not yet recognized | $ 4.1 | ||
Compensation cost recognized, period | 3 years 1 month 6 days |
Share-Based Arrangements (Emplo
Share-Based Arrangements (Employee Stock Purchase Plan) (Details) - ESPP Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Market price after discount, purchase date | 85.00% | ||
Number of shares authorized (in shares) | 2,000,000 | ||
Employee stock issued (in shares) | 60,997 | 59,082 | 63,874 |
Number of shares available for purchase (in shares) | 551,112 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Employee stock issued (in dollars per share) | $ 55.61 | $ 56.86 | $ 46.79 |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Employee stock issued (in dollars per share) | $ 63.69 | $ 72.15 | $ 57.27 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Subsequent Events [Abstract] | |
Business Combination, Consideration Transferred | $ 331 |
Business Acquisition, Transaction Costs | $ 4 |
Schedule II (Details)
Schedule II (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | $ 2,498 | $ 2,181 | $ 2,282 |
Additions Charged to Costs and Expenses / Provision Benefit | 788 | 767 | 746 |
Additions Other | 0 | 0 | 0 |
Deductions | (2,040) | (450) | (847) |
Balance End of Period | 1,246 | 2,498 | 2,181 |
Valuation Allowance of Deferred Tax Assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Period | 8,243 | 4,944 | 3,831 |
Additions Charged to Costs and Expenses / Provision Benefit | 2,046 | 3,472 | 772 |
Additions Other | 341 | ||
Deductions | (2,147) | (173) | |
Balance End of Period | $ 8,142 | $ 8,243 | $ 4,944 |
Uncategorized Items - kamn-1231
Label | Element | Value |
Cash, Including Discontinued Operations | us-gaap_CashIncludingDiscontinuedOperations | $ 41,205,000 |