Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jul. 02, 2016 | |
Document Information | |||
Document Type | 10-K/A | ||
Amendment Flag | true | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ATRO | ||
Entity Registrant Name | ASTRONICS CORP | ||
Entity Central Index Key | 8,063 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 707 | ||
Amendment Description | Management of the Company, in consultation with the Audit Committee of Astronics Corporation's (the "Company's") Board of Directors, has identified a material weakness in our internal control over financial reporting concerning the design of information technology change controls over a report writing application. Additionally, management identified deficiencies in certain review controls over the financial statement consolidation process, which when aggregated along with the information technology change controls matter described above, aggregate to a material weakness over the financial statement close process as of December 31, 2016. Management does not expect adjustments to any previously issued financial statements as a result of these deficiencies. As a result of the material weakness described above, management has concluded that the Company’s internal control over financial reporting was not effective at December 31, 2016 and, accordingly, its disclosure controls and procedures were not effective at December 31, 2016 or April 1, 2017. We are amending our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and our Quarterly Report on Form 10-Q for the period ended April 1, 2017 to reflect the conclusion by management that there was a material weakness in internal control over financial reporting as of the end of the periods covered by these reports. Ernst & Young LLP’s auditor’s report on the Company’s internal control over financial reporting will also be revised to state that the Company’s internal control over financial reporting at December 31, 2016 was not effective. | ||
Common Class Undefined | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 21,691,969 | ||
Convertible Class B Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 7,405,750 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Sales | $ 633,123 | $ 692,279 | $ 661,039 |
Cost of Products Sold | 473,656 | 504,337 | 493,997 |
Gross Profit | 159,467 | 187,942 | 167,042 |
Selling, General and Administrative Expenses | 86,328 | 89,141 | 79,680 |
Income from Operations | 73,139 | 98,801 | 87,362 |
Interest Expense, Net of Interest Income | 4,354 | 4,751 | 8,255 |
Income Before Income Taxes | 68,785 | 94,050 | 79,107 |
Provision for Income Taxes | 20,361 | 27,076 | 22,937 |
Net Income | $ 48,424 | $ 66,974 | $ 56,170 |
Basic Earnings Per Share (in usd per share) | $ 1.66 | $ 2.29 | $ 1.96 |
Diluted Earnings Per Share (in usd per share) | $ 1.61 | $ 2.22 | $ 1.87 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 48,424 | $ 66,974 | $ 56,170 |
Other Comprehensive (Loss) Income: | |||
Foreign Currency Translation Adjustments | (626) | (4,617) | (4,638) |
Mark to Market Adjustments for Derivatives – Net of Tax | 0 | 0 | 69 |
Retirement Liability Adjustment – Net of Tax | 196 | 1,502 | (3,769) |
Other Comprehensive (Loss) Income | (430) | (3,115) | (8,338) |
Comprehensive Income | $ 47,994 | $ 63,859 | $ 47,832 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and Cash Equivalents | $ 17,901 | $ 18,561 |
Accounts Receivable, Net of Allowance for Doubtful Accounts | 109,415 | 95,277 |
Inventories | 116,597 | 115,467 |
Prepaid Expenses and Other Current Assets | 11,160 | 20,662 |
Total Current Assets | 255,073 | 249,967 |
Property, Plant and Equipment, at Cost: | ||
Land | 11,112 | 11,145 |
Buildings and Improvements | 79,191 | 78,989 |
Machinery and Equipment | 93,683 | 89,514 |
Construction in Progress | 8,182 | 3,282 |
Total Property, Plant and Equipment, at Cost | 192,168 | 182,930 |
Less Accumulated Depreciation | 69,356 | 58,188 |
Net Property, Plant and Equipment | 122,812 | 124,742 |
Other Assets | 13,149 | 10,889 |
Intangible Assets, Net of Accumulated Amortization | 98,103 | 108,276 |
Goodwill | 115,207 | 115,369 |
Total Assets | 604,344 | 609,243 |
Current Liabilities: | ||
Current Maturities of Long-term Debt | 2,636 | 2,579 |
Accounts Payable | 25,070 | 27,138 |
Accrued Payroll and Employee Benefits | 24,743 | 24,036 |
Accrued Income Taxes | 62 | 195 |
Other Accrued Expenses | 10,881 | 11,527 |
Customer Advanced Payments and Deferred Revenue | 23,168 | 38,757 |
Total Current Liabilities | 86,560 | 104,232 |
Long-term Debt | 145,484 | 167,210 |
Supplemental Retirement Plan and Other Liabilities for Pension Benefits | 22,140 | 20,935 |
Other Liabilities | 1,414 | 1,674 |
Deferred Income Taxes | 11,297 | |
Deferred Income Taxes | 14,967 | |
Total Liabilities | 266,895 | 309,018 |
Shareholders’ Equity: | ||
Additional Paid-in Capital | 64,752 | 57,827 |
Accumulated Other Comprehensive Loss | (15,494) | (15,064) |
Retained Earnings | 305,512 | 257,168 |
Treasury Stock; 523,132 Shares in 2016 | (17,618) | 0 |
Total Shareholders’ Equity | 337,449 | 300,225 |
Total Liabilities and Shareholders’ Equity | 604,344 | 609,243 |
Common Class Undefined | ||
Shareholders’ Equity: | ||
Common Stock | 220 | 194 |
Convertible Class B Stock | ||
Shareholders’ Equity: | ||
Common Stock | $ 77 | $ 100 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Treasury Stock, Shares (in shares) | 523,132 | |
Common Class Undefined | ||
Common Stock, Par value (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common Stock, Shares issued (in shares) | 21,955,414 | 19,348,678 |
Common Stock, Shares outstanding (in shares) | 21,432,282 | 19,348,678 |
Convertible Class B Stock | ||
Common Stock, Par value (in usd per share) | $ 0.01 | $ 0.01 |
Common Stock, Shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common Stock, Shares issued (in shares) | 7,665,437 | 10,055,904 |
Common Stock, Shares outstanding (in shares) | 7,665,437 | 10,055,904 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net Income | $ 48,424 | $ 66,974 | $ 56,170 |
Adjustments to Reconcile Net Income to Cash Provided By Operating Activities, Excluding the Effects of Acquisitions: | |||
Depreciation and Amortization | 25,790 | 25,309 | 27,254 |
Provision for Non-Cash Losses on Inventory and Receivables | 2,404 | 3,187 | 1,959 |
Stock Compensation Expense | 2,281 | 2,274 | 1,730 |
Deferred Tax Benefit | (4,756) | (252) | (4,677) |
Non-cash Adjustment to Contingent Consideration | 0 | (1,751) | (4,971) |
Other | 165 | (294) | 268 |
Cash Flows from Changes in Operating Assets and Liabilities, net of the Effects from Acquisitions of Businesses: | |||
Accounts Receivable | (14,622) | (729) | (18,850) |
Inventories | (2,671) | (2,537) | 25,732 |
Prepaid Expenses and Other Current Assets | 108 | (799) | (2,806) |
Accounts Payable | (2,000) | (2,168) | (8,005) |
Accrued Expenses | (174) | 3,738 | 6,826 |
Income Taxes Payable | 7,926 | (9,266) | (4,084) |
Customer Advanced Payments and Deferred Revenue | (15,539) | (7,485) | 22,055 |
Supplemental Retirement Plan and Other Liabilities | 1,518 | 2,300 | 1,273 |
Cash Provided By Operating Activities | 48,854 | 78,501 | 99,874 |
Cash Flows from Investing Activities | |||
Acquisition of Business, Net of Cash Acquired | 0 | (52,276) | (68,201) |
Capital Expenditures | (13,037) | (18,641) | (40,882) |
Other | (1,585) | (2,669) | (37) |
Cash Used For Investing Activities | (14,622) | (73,586) | (109,120) |
Cash Flows from Financing Activities | |||
Proceeds From Long-term Debt | 20,000 | 55,000 | 245,894 |
Principal Payments on Long-term Debt | (41,835) | (67,694) | (275,544) |
Purchase of Outstanding Shares for Treasury | (17,618) | 0 | 0 |
Debt Acquisition Costs | 0 | 0 | (573) |
Proceeds from Exercise of Stock Options | 3,813 | 2,996 | 1,848 |
Excess Tax Benefit from Exercise of Stock Options | 834 | 2,973 | 5,262 |
Cash Used For Financing Activities | (34,806) | (6,725) | (23,113) |
Effect of Exchange Rates on Cash | (86) | (826) | (1,079) |
Decrease in Cash and Cash Equivalents | (660) | (2,636) | (33,438) |
Cash and Cash Equivalents at Beginning of Year | 18,561 | 21,197 | 54,635 |
Cash and Cash Equivalents at End of Year | 17,901 | 18,561 | 21,197 |
Supplemental Cash Flow Information: | |||
Interest Paid | 4,536 | 4,734 | 7,816 |
Income Taxes Paid, Net of Refunds | $ 15,898 | $ 32,990 | $ 26,619 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common StockCommon Class Undefined | Common StockConvertible Class B Stock | Additional Paid in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock |
Beginning of Year at Dec. 31, 2013 | $ 133 | $ 152 | $ 40,720 | $ (3,611) | $ 134,115 | $ 0 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of Stock Options and Stock Compensation Expense – Net of Taxes | 2 | 3 | 8,868 | ||||
Class B Stock Converted to Common Stock | 31 | (31) | |||||
Foreign Currency Translation Adjustments | $ (4,638) | (4,638) | |||||
Mark to Market Adjustments for Derivatives – Net of Taxes | 69 | 69 | |||||
Retirement Liability Adjustment – Net of Taxes | (3,769) | ||||||
Net Income | 56,170 | 56,170 | |||||
Cash Paid in Lieu of Fractional Shares from Stock Distribution | (37) | ||||||
Purchase of Shares | 0 | ||||||
Retirement of Treasury Shares | 0 | ||||||
End of Year at Dec. 31, 2014 | $ 228,177 | $ 166 | $ 124 | 49,588 | (11,949) | 190,248 | $ 0 |
Beginning of Year (in shares) at Dec. 31, 2013 | 13,268,000 | 15,287,000 | 0 | ||||
Increase (Decrease) in Stockholders' Equity (in shares) | |||||||
Exercise of Stock Options (in shares) | 644,058 | 216,000 | 284,000 | ||||
Class B Stock Converted to Common Stock (in shares) | 3,124,000 | (3,124,000) | |||||
Purchase of Shares (in shares) | 0 | ||||||
End of Year (in shares) at Dec. 31, 2014 | 16,608,000 | 12,447,000 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of Stock Options and Stock Compensation Expense – Net of Taxes | $ 2 | $ 2 | 8,239 | ||||
Class B Stock Converted to Common Stock | 26 | (26) | |||||
Foreign Currency Translation Adjustments | $ (4,617) | (4,617) | |||||
Mark to Market Adjustments for Derivatives – Net of Taxes | 0 | 0 | |||||
Retirement Liability Adjustment – Net of Taxes | 1,502 | ||||||
Net Income | 66,974 | 66,974 | |||||
Cash Paid in Lieu of Fractional Shares from Stock Distribution | (54) | ||||||
Purchase of Shares | $ 0 | ||||||
Retirement of Treasury Shares | 0 | ||||||
End of Year at Dec. 31, 2015 | $ 300,225 | $ 194 | $ 100 | 57,827 | (15,064) | 257,168 | $ 0 |
Increase (Decrease) in Stockholders' Equity (in shares) | |||||||
Exercise of Stock Options (in shares) | 346,966 | 168,000 | 181,000 | ||||
Class B Stock Converted to Common Stock (in shares) | 2,573,000 | (2,573,000) | |||||
Purchase of Shares (in shares) | 0 | ||||||
End of Year (in shares) at Dec. 31, 2015 | 19,349,000 | 10,055,000 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of Stock Options and Stock Compensation Expense – Net of Taxes | $ 1 | $ 2 | 6,925 | ||||
Class B Stock Converted to Common Stock | 25 | (25) | |||||
Foreign Currency Translation Adjustments | $ (626) | (626) | |||||
Mark to Market Adjustments for Derivatives – Net of Taxes | 0 | 0 | |||||
Retirement Liability Adjustment – Net of Taxes | 196 | ||||||
Net Income | 48,424 | 48,424 | |||||
Cash Paid in Lieu of Fractional Shares from Stock Distribution | (80) | ||||||
Purchase of Shares | $ (17,618) | ||||||
Retirement of Treasury Shares | 0 | ||||||
End of Year at Dec. 31, 2016 | $ 337,449 | $ 220 | $ 77 | $ 64,752 | $ (15,494) | $ 305,512 | $ (17,618) |
Increase (Decrease) in Stockholders' Equity (in shares) | |||||||
Exercise of Stock Options (in shares) | 188,768 | 151,000 | 65,000 | ||||
Class B Stock Converted to Common Stock (in shares) | 2,455,000 | (2,455,000) | |||||
Purchase of Shares (in shares) | 523,000 | ||||||
End of Year (in shares) at Dec. 31, 2016 | 21,955,000 | 7,665,000 | 523,000 |
Summary of Significant Accounti
Summary of Significant Accounting Principles and Practices | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Principles and Practices | SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND PRACTICES Description of the Business Astronics Corporation (“Astronics” or the “Company”) is a leading supplier of products to the global aerospace, defense, electronics and semiconductor industries. Our products and services include advanced, high-performance electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, systems certification, aircraft structures and automated test systems. We have operations in the United States (“U.S.”), Canada and France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); Armstrong Aerospace, Inc. (“Armstrong”); Astronics Test Systems, Inc. (“ATS”); Ballard Technology, Inc. (“Ballard”); Astronics DME LLC (“DME”); Luminescent Systems, Inc. (“LSI”); Luminescent Systems Canada, Inc. (“LSI Canada”); Max-Viz, Inc. (“Max-Viz”); Peco, Inc. (“Peco”); and PGA Electronic s.a. (“PGA”). On January 14, 2015 , the Company acquired 100% of the equity of Armstrong for approximately $52.3 million in cash. Armstrong, located in Itasca, Illinois, is a leading provider of engineering, design and certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. At December 31, 2016 , the Company has two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Our Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems as well as training and simulation devices for both commercial and military applications. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Acquisitions are accounted for under the acquisition method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of operations from the respective dates of acquisition. For additional information on the acquired businesses, see Note 18. Revenue Recognition The vast majority of our sales agreements are for standard products and services, with revenue recognized on the accrual basis at the time of shipment of goods, transfer of title and customer acceptance, where required. There are no significant contracts allowing for right of return. To a limited extent, as a result of the acquisition of ATS, certain of our contracts involve multiple elements (such as equipment and service). Service revenues were not material for the years ended December 31, 2016 , 2015 and 2014 . The Company recognizes revenue for delivered elements when they have stand-alone value to the customer, they have been accepted by the customer, and for which there are only customary refund or return rights. Arrangement consideration is allocated to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third party-evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Estimated selling price is determined in a manner consistent with that used to establish the price to sell the deliverable on a standalone basis. For prepaid service contracts, sales revenue is recognized on a straight-line basis over the term of the contract, unless historical evidence indicates the costs are incurred on other than a straight-line basis. Revenue of approximately $20.7 million , $17.2 million and $2.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, was recognized from long-term, fixed-price contracts using the percentage-of-completion method of accounting, measured by multiplying the estimated total contract value by the ratio of actual contract costs incurred to date to the estimated total contract costs. The Company makes significant estimates involving its usage of percentage-of-completion accounting to recognize contract revenues. The Company periodically reviews contracts in process for estimates-to-completion, and revises estimated gross profit accordingly. While the Company believes its estimated gross profit on contracts in process is reasonable, unforeseen events and changes in circumstances can take place in a subsequent accounting period that may cause the Company to revise its estimated gross profit on one or more of its contracts in process. Accordingly, the ultimate gross profit realized upon completion of such contracts can vary significantly from estimated amounts between accounting periods. For contracts with anticipated losses at completion, a charge is taken against income for the amount of the entire loss in the period in which it is estimated. Cost of Products Sold, Engineering and Development and Selling, General and Administrative Expenses Cost of products sold includes the costs to manufacture products such as direct materials and labor and manufacturing overhead as well as all engineering and developmental costs. The Company is engaged in a variety of engineering and design activities as well as basic research and development activities directed to the substantial improvement or new application of the Company’s existing technologies. These costs are expensed when incurred and included in cost of products sold. Research and development, design and related engineering amounted to $90.2 million in 2016 , $90.1 million in 2015 and $76.7 million in 2014 . Selling, general and administrative (“SG&A”) expenses include costs primarily related to our sales, marketing and administrative departments. Shipping and Handling Shipping and handling costs are expensed as incurred and are included in costs of products sold. Stock Distribution On September 26, 2016, the Company announced a three-for-twenty distribution of Class B Stock to holders of both Common and Class B Stock. Stockholders received three shares of Class B Stock for every twenty shares of Common and Class B Stock held on the record date of October 11, 2016. Fractional shares were paid in cash. All share quantities, share prices and per share data reported throughout this report have been adjusted to reflect the impact of this distribution. Equity-Based Compensation The Company accounts for its stock options following Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation (“ASC Topic 718”). This Topic requires all equity-based payments to employees, including grants of employee stock options, to be recognized in the statement of earnings based on the grant date fair value of the award. For awards with graded vesting, the Company uses a straight-line method of attributing the value of stock-based compensation expense, subject to minimum levels of expense, based on vesting. Under ASC Topic 718, stock compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Vesting requirements vary for directors, officers and key employees. In general, options granted to outside directors vest six months from the date of grant and options granted to officers and key employees vest with graded vesting over a five -year period, 20% each year, from the date of grant. Cash and Cash Equivalents All highly liquid instruments with a maturity of three months or less at the time of purchase are considered cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are composed of trade and contract receivables recorded at either the invoiced amount or costs in excess of billings, are expected to be collected within one year, and do not bear interest. The Company will record a valuation allowance to account for potentially uncollectible accounts receivable. The allowance is determined based on our knowledge of the business, specific customers, review of the receivables’ aging and a specific identification of accounts where collection is at risk. Account balances are charged against the allowance after all means of collections have been exhausted and recovery is considered remote. The Company typically does not require collateral. Inventories Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method or standard cost. The Company records valuation reserves to provide for excess, slow moving or obsolete inventory. In determining the appropriate reserve, the Company considers the age of inventory on hand, the overall inventory levels in relation to forecasted demands as well as reserving for specifically identified inventory that the Company believes is no longer salable. Property, Plant and Equipment Depreciation of property, plant and equipment is computed using the straight-line method for financial reporting purposes and using accelerated methods for income tax purposes. Estimated useful lives of the assets are as follows: buildings, 25 - 40 years; machinery and equipment, 4 - 10 years. Leased buildings and associated leasehold improvements are amortized over the shorter of the terms of the lease or the estimated useful lives of the assets, with the amortization of such assets included within depreciation expense. The cost of properties sold or otherwise disposed of and the accumulated depreciation thereon are eliminated from the accounts and the resulting gain or loss, as well as maintenance and repair expenses, is reflected in income. Replacements and improvements are capitalized. Depreciation expense was approximately $14.3 million , $13.3 million and $10.6 million in 2016 , 2015 and 2014 , respectively. Buildings acquired under capital leases amounted to $10.5 million ( $14.3 million , net of $3.8 million of accumulated amortization) and $12.3 million ( $14.8 million , net of $2.5 million accumulated amortization) at December 31, 2016 and 2015 , respectively. Future minimum lease payments associated with these capital leases are expected to be $2.6 million in 2017 , $2.6 million in 2018 , $2.0 million in 2019 , $2.1 million in 2020 and $2.2 million in 2021 . Long-Lived Assets Long-lived assets to be held and used are initially recorded at cost. The carrying value of these assets is evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments are recognized if future undiscounted cash flows from operations are not expected to be sufficient to recover long-lived assets. The carrying amounts are then reduced to fair value, which is typically determined by using a discounted cash flow model. Goodwill The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company has ten reporting units, however only eight reporting units have goodwill and were subject to the goodwill impairment test. The annual testing date for the impairment test is as of the first day of our fourth quarter. We may elect to perform a qualitative assessment that considers economic, industry and company-specific factors for all or selected reporting units. If, after completing the assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a quantitative test. We may also elect to perform a quantitative test instead of a qualitative test for any or all of our reporting units. Quantitative testing requires a comparison of the fair value of each reporting unit to its carrying value. We use the discounted cash flow method to estimate the fair value of our reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating margins and cash flows, the terminal growth rate and the weighted average cost of capital. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and any loss must be measured. To determine the amount of the impairment loss, the implied fair value of goodwill is determined by assigning a fair value to all of the reporting unit’s assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination at fair value. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss would be recognized in an amount equal to that excess. There were no impairment charges in 2016 , 2015 or 2014 . Intangible Assets Acquired intangibles are generally valued based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized, but are reviewed for impairment at least annually or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC Topic 350, Intangibles - Goodwill and Other, as amended by Accounting Standards Update (“ASU”) 2012-2, by first performing a qualitative analysis in a manner similar to the testing methodology of goodwill discussed previously. The qualitative factors applied under this new provision indicated no impairment to the Company’s indefinite lived intangible assets in 2016 , 2015 or 2014 . Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, notes payable and long-term debt. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company does not hold or issue financial instruments for trading purposes. Due to their short-term nature, the carrying values of cash and equivalents, accounts receivable, accounts payable, and notes payable approximate fair value. The carrying value of the Company’s variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. Derivatives The accounting for changes in the fair value of derivatives depends on the intended use and resulting designation. The Company’s use of derivative instruments was limited to cash flow hedges for interest rate risk associated with long-term debt. All such instruments were terminated in 2014. Interest rate swaps were used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps were designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, converted a portion of the variable-rate debt to fixed-rate debt. The Company recorded all derivatives on the balance sheet at fair value. The related gains or losses, to the extent the derivatives were effective as a hedge, were deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into earnings at the time interest expense was recognized on the associated long-term debt. Any ineffectiveness was recorded in the Consolidated Statements of Operations. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenues and expenses during the reporting periods in the financial statements and accompanying notes. Actual results could differ from those estimates. Foreign Currency Translation The Company accounts for its foreign currency translation in accordance with ASC Topic 830, Foreign Currency Translation . The aggregate transaction gain included in operations was insignificant in 2016 , $1.0 million in 2015 and insignificant in 2014 . Dividends The Company has not paid any cash dividends in the three-year period ended December 31, 2016 . Loss Contingencies Loss contingencies may from time to time arise from situations such as claims and other legal actions. Loss contingencies are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will exceed the recorded provision. Contingent liabilities are often resolved over long time periods. In recording liabilities for probable losses, management is required to make estimates and judgments regarding the amount or range of the probable loss. Management continually assesses the adequacy of estimated loss contingencies and, if necessary, adjusts the amounts recorded as better information becomes known. Acquisitions The Company accounts for its acquisitions under ASC Topic 805, Business Combinations and Reorganizations (“ASC Topic 805”). ASC Topic 805 provides guidance on how the acquirer recognizes and measures the consideration transferred, identifiable assets acquired, liabilities assumed, non-controlling interests, and goodwill acquired in a business combination. ASC Topic 805 also expands required disclosures surrounding the nature and financial effects of business combinations. See Note 18 regarding the acquisitions in 2015 and 2014 . Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, Revenue from Contracts with Customers . This new standard is effective for reporting periods beginning after December 15, 2017, pursuant to the issuance of ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date issued in August 2015. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company will adopt the new standard on January 1, 2018, using the modified retrospective transition method. The adoption of this amendment may require us to accelerate the recognition of revenue as compared to current standards, for certain customers, in cases where we produce products unique to those customers; and for which we would have an enforceable right of payment for production completed to date. The Company has identified its revenue streams, reviewed the initial impacts of adopting the new standard on those revenue streams, and appointed a project management leader. The Company continues to evaluate the quantitative and qualitative impacts of the standard. In February 2016, the FASB issued ASU No. 2016 - 02, Leases . The new standard is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The standard will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. The standard requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The adoption of the standard is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. With respect to income taxes, under current guidance, when a share-based payment award such as a stock option is granted to an employee, the fair value of the award is generally recognized over the vesting period. However, the related deduction from taxes payable is based on the award’s intrinsic value at the time of exercise, which can be either greater (creating an excess tax benefit) or less (creating a tax deficiency) than the compensation cost recognized in the financial statements. Excess tax benefits are currently recognized in additional paid-in capital (“APIC”) within equity, deficiencies are first recorded to APIC to the extent previously recognized excess tax benefits exist, after which time deficiencies are recorded to income tax expense. Under the new guidance, all excess tax benefits/deficiencies would be recognized as income tax benefit/expense in the statement of income. The new ASU’s income tax aspects also impact the calculation of diluted earnings per share by excluding excess tax benefits/deficiencies from the calculation of assumed proceeds available to repurchase shares under the treasury stock method. Relative to forfeitures, the new standard provides an accounting policy election to account for forfeitures as they occur. Additionally, cash flows related to excess tax benefits will be included in Net cash provided by operating activities and will no longer be separately classified as a financing activity. Finally, the new ASU also allows a company to repurchase more of an employee’s shares for tax withholding purposes. The Company will adopt the new standard on January 1, 2017, and will account for forfeitures as they occur. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The standard requires application using a retrospective transition method. This ASU is not expected to have a material impact on the Company’s consolidated results of operations and financial condition. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. This ASU is effective for fiscal years beginning after December 15, 2017 on a prospective basis with early adoption permitted. The Company would apply this guidance to applicable transactions after the adoption date. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This ASU is effective prospectively to annual and interim impairment tests beginning after December 15, 2019, with early adoption permitted. The Company plans to early adopt on January 1, 2017. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable at December 31 consists of: (In thousands) 2016 2015 Trade Accounts Receivable $ 93,823 $ 87,282 Unbilled Recoverable Costs and Accrued Profits 16,194 8,307 Total Receivables 110,017 95,589 Less Allowance for Doubtful Accounts (602 ) (312 ) $ 109,415 $ 95,277 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories at December 31 are as follows: (In thousands) 2016 2015 Finished Goods $ 28,792 $ 27,770 Work in Progress 20,790 23,977 Raw Material 67,015 63,720 $ 116,597 $ 115,467 At December 31, 2016 , the Company’s reserve for inventory valuation was $15.4 million , or 11.7% of gross inventory. At December 31, 2015 , the Company’s reserve for inventory valuation was $14.6 million , or 11.2% of gross inventory. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table summarizes acquired intangible assets as follows: December 31, 2016 December 31, 2015 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 4 Years $ 2,146 $ 1,450 $ 2,146 $ 1,264 Noncompete Agreement 3 Years 2,500 979 2,500 479 Trade Names 7 Years 10,189 3,153 10,217 2,216 Completed and Unpatented Technology 6 Years 24,118 9,221 24,056 6,795 Backlog - 11,224 11,224 11,202 10,793 Customer Relationships 12 Years 97,046 23,093 96,472 16,770 Total Intangible Assets 6 Years $ 147,223 $ 49,120 $ 146,593 $ 38,317 Amortization is computed on the straight-line method for financial reporting purposes, with the exception of backlog, which is amortized based on the expected realization period of the acquired backlog. Amortization expense for intangibles was $10.8 million , $11.3 million and $15.8 million for 2016 , 2015 and 2014 , respectively. Based upon acquired intangible assets at December 31, 2016 , amortization expense for each of the next five years is estimated to be: (In thousands) 2017 $ 10,445 2018 10,133 2019 9,754 2020 9,198 2021 9,152 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table summarizes the changes in the carrying amount of goodwill for 2016 and 2015 : (In thousands) 2016 2015 Balance at Beginning of the Year $ 115,369 $ 100,153 Acquisition — 16,237 Foreign Currency Translations and Other (162 ) (1,021 ) Balance at End of the Year $ 115,207 $ 115,369 Goodwill - Gross $ 131,749 $ 131,911 Accumulated Impairment Losses (16,542 ) (16,542 ) Goodwill - Net $ 115,207 $ 115,369 As discussed in Note 1, goodwill is not amortized but is periodically tested for impairment. For the eight reporting units with goodwill on the first day of our fourth quarter, the Company performed a quantitative assessment of the goodwill’s carrying value. The assessment indicated no impairment to the carrying value of goodwill in any of the Company’s reporting units and no impairment charge was recognized. There was no impairment to the carrying value of goodwill in 2015 or 2014. All goodwill relates to the Aerospace segment. |
Long-Term Debt and Notes Payabl
Long-Term Debt and Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Notes Payable | LONG-TERM DEBT AND NOTES PAYABLE Long-term debt consists of the following: (In thousands) 2016 2015 Revolving Credit Line issued under the Fourth Amended and Restated Credit Agreement dated September 26, 2014. Interest is at LIBOR plus between 1.375% and 2.25% (2.27% at December 31, 2016). $ 136,000 $ 155,000 Other Bank Debt 1,270 1,963 Capital Lease Obligations 10,850 12,826 148,120 169,789 Less Current Maturities 2,636 2,579 $ 145,484 $ 167,210 Principal maturities of long-term debt are approximately: (In thousands) 2017 $ 2,636 2018 2,610 2019 1,835 2020 2,096 2021 138,049 Thereafter 894 $ 148,120 The Company’s obligations under the Credit Agreement as amended are jointly and severally guaranteed by each domestic subsidiary of the Company other than a non-material subsidiary. The obligations are secured by a first priority lien on substantially all of the Company’s and the guarantors’ assets. The Company's Third Amended and Restated Credit Agreement provided for a $75 million five -year revolving credit facility and a $190 million five -year term loan, both expiring on June 30, 2018 . The facilities carried an interest rate of LIBOR plus between 2.25% and 3.50% , depending on the Company’s leverage ratio as defined in the Credit Agreement. In addition, the Company was required to pay a commitment fee of between 0.25% and 0.50% on the unused portion of the total credit commitment for the preceding quarter, based on the Company’s leverage ratio under the credit agreement. On February 28, 2014, in connection with the funding of the acquisition of ATS, the Company amended its existing credit facility to exercise its option to increase the revolving credit commitment. The credit agreement provided for a $125 million , five -year revolving credit facility maturing on June 30, 2018, of which $58.0 million was drawn to finance the acquisition. In addition, the Company was required to pay a commitment fee quarterly at a rate of between 0.25% and 0.50% per annum on the unused portion of the total revolving credit commitment, based on the Company’s leverage ratio. On September 26, 2014, the Company modified and extended its existing credit facility (the “Original Facility”) by entering into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”). On the closing date, there were $180.5 million of term loans outstanding and $6 million of revolving loans outstanding under the Original Facility. Pursuant to the Agreement, the Original Facility was replaced with a $350 million revolving credit line with the option to increase the line by up to $150 million . The outstanding balances in the Original Facility were rolled into the Agreement on the date of entry. In addition, the maturity date of the loans under the Agreement was extended to September 26, 2019 . The credit facility allocates up to $20 million of the $350 million revolving credit line for the issuance of letters of credit, including certain existing letters of credit. At December 31, 2016 , outstanding letters of credit totaled $1.1 million . On January 13, 2016, the Company amended the Agreement to add a new lender and extend the maturity date of the credit facility from September 26, 2019 to January 13, 2021. Covenants in the Agreement were modified to where the maximum permitted leverage ratio of funded debt to Adjusted EBITDA (as defined in the Agreement) is 3.5 to 1, increasing to 4.0 to 1 for up to two fiscal quarters following the closing of an acquisition permitted under the Agreement. The Company will pay interest on the unpaid principal amount of the facility at a rate equal to one-, three- or six-month LIBOR plus between 1.375% and 2.25% based upon the Company’s leverage ratio. The Company will also pay a commitment fee to the Lenders in an amount equal to between 0.175% and 0.35% on the undrawn portion of the credit facility, based upon the Company’s leverage ratio. The Company is required to maintain a minimum interest coverage ratio (Adjusted EBITDA to interest expense) of 3.0 to 1 for the term of the Agreement. The Company’s interest coverage ratio was 29.5 to 1 at December 31, 2016 . The Company’s leverage ratio was 1.38 to 1 at December 31, 2016 . The Company is in compliance with all financial and other covenants at December 31, 2016 . In the event of voluntary or involuntary bankruptcy of the Company or any subsidiary, all unpaid principal and other amounts owing under the Credit Agreement automatically become due and payable. Other events of default, such as failure to make payments as they become due and breach of financial and other covenants, change of control, judgments over a certain amount, and cross default under other agreements give the Agent the option to declare all such amounts immediately due and payable. |
Warranty
Warranty | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Warranty | WARRANTY In the ordinary course of business, the Company warrants its products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. The Company determines warranty reserves needed by product line based on experience and current facts and circumstances. Activity in the warranty accrual, which is included in other accrued expenses on the Consolidated Balance Sheets, is summarized as follows: (In thousands) 2016 2015 2014 Balance at Beginning of the Year $ 5,741 $ 4,884 $ 2,796 Warranty Liabilities Acquired — 500 564 Warranties Issued 2,281 4,039 3,431 Reassessed Warranty Exposure (966 ) (485 ) (34 ) Warranties Settled (2,381 ) (3,197 ) (1,873 ) Balance at End of the Year $ 4,675 $ 5,741 $ 4,884 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not expected to be realized. Investment tax credits are recognized on the flow through method. The provision (benefit) for income taxes consists of the following: (In thousands) 2016 2015 2014 Current U.S. Federal $ 21,667 $ 24,809 $ 22,705 State 2,899 2,382 3,797 Foreign 551 137 1,112 Deferred U.S. Federal (2,871 ) 703 (3,035 ) State (1,140 ) (1,019 ) (655 ) Foreign (745 ) 64 (987 ) $ 20,361 $ 27,076 $ 22,937 The effective tax rates differ from the statutory federal income tax rate as follows: 2016 2015 2014 Statutory Federal Income Tax Rate 35.0 % 35.0 % 35.0 % Permanent Items Non-deductible Stock Compensation Expense 1.1 % 0.6 % 0.6 % Domestic Production Activity Deduction (3.3 )% (2.9 )% (2.6 )% Other 0.2 % 0.2 % 0.1 % Foreign Tax Benefits (1.1 )% (1.1 )% (1.7 )% State Income Tax, Net of Federal Income Tax Effect 1.8 % 0.9 % 2.6 % Research and Development Tax Credits (3.7 )% (2.7 )% (4.3 )% Other (0.4 )% (1.2 )% (0.7 )% Effective Tax Rate 29.6 % 28.8 % 29.0 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. No provision has been made for U.S. federal or foreign taxes on that portion of certain foreign subsidiaries’ undistributed earnings ( $13.1 million at December 31, 2016 ) considered to be permanently reinvested. It is not practicable to determine the amount of tax that would be payable if these amounts were repatriated to the U.S. Significant components of the Company’s deferred tax assets and liabilities as of December 31, are as follows: (In thousands) 2016 2015 Deferred Tax Assets: Asset Reserves $ 9,208 $ 8,709 Deferred Compensation 8,378 7,986 Capital Lease Basis Difference 1,690 1,753 State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 665 533 Customer Advanced Payments and Deferred Revenue 3,750 1,722 State Net Operating Loss Carryforwards and Other 4,282 2,401 Total Gross Deferred Tax Assets 27,973 23,104 Valuation Allowance for State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (3,816 ) (2,640 ) Deferred Tax Assets 24,157 20,464 Deferred Tax Liabilities: Depreciation 12,972 12,561 Goodwill and Intangible Assets 18,558 20,113 Other 1,280 1,199 Deferred Tax Liabilities 32,810 33,873 Net Deferred Tax Liabilities $ (8,653 ) $ (13,409 ) The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31: (In thousands) 2016 2015 Other Assets — Long-term $ 2,644 $ 1,558 Deferred Tax Liabilities — Long-term (11,297 ) (14,967 ) Net Deferred Tax Liabilities $ (8,653 ) $ (13,409 ) At December 31, 2016 , state tax credit carryforwards amounted to approximately $1.0 million , of which $0.8 million will expire from 2017 through 2030 and $0.2 million will carryforward until utilized. At December 31, 2016 , state net operating loss carryforwards which the Company expects to utilize amounted to approximately $8.2 million and expire at various dates between 2032 and 2034. Due to the uncertainty as to the Company’s ability to generate sufficient taxable income in certain states in the future and utilize certain of the Company’s state operating loss carryforwards before they expire, the Company has recorded a valuation allowance accordingly. These state net operating loss carryforwards amount to approximately $52.9 million and expire at various dates from 2021 through 2035 . The excess tax benefits associated with stock option exercises are recorded directly to shareholders’ equity only when realized and amounted to approximately $0.8 million , $3.0 million and $5.3 million for the years ended December 31, 2016 , 2015 , and 2014 respectively. The Company has analyzed its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Should the Company need to accrue a liability for uncertain tax benefits, any interest associated with that liability would be recorded as interest expense. Penalties, if any, would be recorded as operating expenses. As of December 31, 2016 , we no longer have any unrecognized tax benefits. Reserves for uncertain tax positions that had been recorded pursuant to ASC Topic 740-10 as of December 31, 2014 were reversed during the year-ended December 31, 2015. No additional reserves for uncertain income tax positions were deemed necessary for the year ended December 31, 2016. A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties which are insignificant, is as follows: (in thousands) 2016 2015 2014 Balance at Beginning of the Year $ — $ 181 $ 1,940 Decreases as a Result of Tax Positions Taken in Prior Years — (181 ) (1,901 ) Increases as a Result of Tax Positions Taken in the Current Year — — 142 Balance at End of the Year $ — $ — $ 181 There are no penalties or interest liabilities accrued as of December 31, 2016 or 2015 , nor are any material penalties or interest costs included in expense for each of the years ended December 31, 2016 , 2015 and 2014 . The years under which we conducted our evaluation coincided with the tax years currently still subject to examination by major federal and state tax jurisdictions, those being 2013 through 2016 for federal purposes and 2012 through 2016 for state purposes. Pretax income from the Company’s foreign subsidiaries amounted to $1.6 million , $3.6 million and $4.3 million for 2016 , 2015 and 2014 , respectively. The balance of pretax earnings for each of those years were domestic. |
Profit Sharing_401(k) Plan
Profit Sharing/401(k) Plan | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Profit Sharing/401(k) Plan | PROFIT SHARING/401(k) PLAN The Company offers eligible domestic full-time employees participation in certain profit sharing/401(k) plans. The plans provide for a discretionary annual company contribution. In addition, employees may contribute a portion of their salary to the plans which is partially matched by the Company. The plans may be amended or terminated at any time. Total charges to income before income taxes for these plans were approximately $6.7 million , $6.3 million and $5.1 million in 2016 , 2015 and 2014 , respectively. |
Retirement Plans and Related Po
Retirement Plans and Related Post Retirement Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans and Related Post Retirement Benefits | RETIREMENT PLANS AND RELATED POST RETIREMENT BENEFITS The Company has two non-qualified supplemental retirement defined benefit plans (“SERP” and “SERP II”) for certain current and retired executive officers. The accumulated benefit obligation of the plans as of December 31, 2016 and 2015 amounts to $18.6 million and $16.7 million , respectively. The Plans provide for benefits based upon average annual compensation and years of service and in the case of SERP, there are offsets for social security and profit sharing benefits. It is the Company’s intent to fund the plans as plan benefits become payable, since no assets exist at December 31, 2016 or 2015 for either of the plans. The Company accounts for the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) of its pension plans in accordance with the recognition and disclosure provisions of ASC Topic 715, Compensation, Retirement Benefits , which requires the Company to recognize the funded status in its balance sheet, with a corresponding adjustment to AOCI, net of tax. These amounts will be subsequently recognized as net periodic pension cost pursuant to the Company’s historical policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic pension cost in the same periods will be recognized as a component of AOCI. Those amounts will be subsequently recognized as a component of net periodic pension cost on the same basis as the amounts recognized in AOCI. Unrecognized prior service costs of $2.5 million ( $3.9 million net of $1.4 million in taxes) and unrecognized actuarial losses of $4.0 million ( $6.1 million net of $2.1 million in taxes) are included in AOCI at December 31, 2016 and have not yet been recognized in net periodic pension cost. The prior service cost included in AOCI that is expected to be recognized in net periodic pension cost during the fiscal year-ended December 31, 2017 is $0.3 million ( $0.4 million net of $0.1 million in taxes). The actuarial loss included in AOCI expected to be recognized in net periodic pension cost during the fiscal year-ended December 31, 2016 is $0.3 million ( $0.4 million net of $0.1 million in taxes). The reconciliation of the beginning and ending balances of the projected benefit obligation of the plans for the years ended December 31 is as follows: (In thousands) 2016 2015 Funded Status Projected Benefit Obligation Beginning of the Year — January 1 $ 20,418 $ 20,990 Service Cost 173 194 Interest Cost 901 843 Actuarial (Gain) Loss 389 (1,261 ) Benefits Paid (348 ) (348 ) End of the Year — December 31 $ 21,533 $ 20,418 The assumptions used to calculate the projected benefit obligation as of December 31 are as follows: 2016 2015 Discount Rate 4.20% 4.45% Future Average Compensation Increases 3.00% – 5.00% 3.00% – 5.00% The plans are unfunded at December 31, 2016 and are recognized in the accompanying Consolidated Balance Sheets as a current accrued pension liability of $0.3 million and a long-term accrued pension liability of $21.2 million . This also is the expected future contribution to the plan, since the plan is unfunded. The following table summarizes the components of the net periodic cost for the years ended December 31: (In thousands) 2016 2015 2014 Net Periodic Cost Service Cost — Benefits Earned During Period $ 173 $ 194 $ 247 Interest Cost 901 843 721 Amortization of Prior Service Cost 413 495 495 Amortization of Losses 343 449 108 Net Periodic Cost $ 1,830 $ 1,981 $ 1,571 The assumptions used to determine the net periodic cost are as follows: 2016 2015 2014 Discount Rate 4.45% 4.05% 5.10% Future Average Compensation Increases 3.00% – 5.00% 5.00% 5.00% The Company expects the benefits to be paid in each of the next five years to be $0.3 million and $2.3 million in the aggregate for the next five years after that. This also is the expected Company contribution to the plans. Participants in SERP are entitled to paid medical, dental and long-term care insurance benefits upon retirement under the plan. The measurement date for determining the plan obligation and cost is December 31. The reconciliation of the beginning and ending balances of the accumulated postretirement benefit obligation for the years ended December 31, is as follows: (In thousands) 2016 2015 Funded Status Accumulated Postretirement Benefit Obligation Beginning of the Year — January 1 $ 925 $ 990 Service Cost 5 6 Interest Cost 40 39 Actuarial (Gain) Loss 112 (54 ) Benefits Paid (61 ) (56 ) End of the Year — December 31 $ 1,021 $ 925 The assumptions used to calculate the accumulated post-retirement benefit obligation as of December 31 are as follows: 2016 2015 Discount Rate 4.20% 4.45% The following table summarizes the components of the net periodic cost for the years ended December 31: (In thousands) 2016 2015 2014 Net Periodic Cost Service Cost — Benefits Earned During Period $ 5 $ 6 $ 3 Interest Cost 40 39 31 Amortization of Prior Service Cost 24 26 25 Amortization of Losses 22 26 — Net Periodic Cost $ 91 $ 97 $ 59 The assumptions used to determine the net periodic cost are as follows: 2016 2015 2014 Discount Rate 4.45% 4.05% 5.10% Future Average Healthcare Benefit Increases 5.72% 5.32% 5.48% Unrecognized prior service costs of $0.1 million and unrecognized actuarial losses of $0.3 million for medical, dental and long-term care insurance benefits (net of taxes of $0.2 million ) are included in AOCI at December 31, 2016 and have not been recognized in net periodic cost. The Company estimates that the prior service costs and net losses in AOCI as of December 31, 2016 that will be recognized as components of net periodic benefit cost during the year ended December 31, 2017 for the Plan will be insignificant. For measurement purposes, a 5.3% and 6.2% increase in the cost of health care benefits was assumed for 2017 and 2018 , respectively, and a range between 4.6% and 6.3% from 2019 through 2070. A one percentage point increase or decrease in this rate would change the post retirement benefit obligation by approximately $0.1 million . The plan is recognized in the accompanying Consolidated Balance Sheets as a current accrued pension liability of less than $0.1 million and a long-term accrued pension liability of $0.9 million . The Company expects the benefits to be paid in each of the next five years to be less than $0.1 million per year and approximately $0.3 million in the aggregate for the next five years after that. This also is the expected Company contribution to the plan, as it is unfunded. The Company is a participating employer in a trustee-managed multiemployer defined benefit pension plan for employees who participate in collective bargaining agreements. The plan generally provides retirement benefits to employees based on years of service to the Company. Contributions are based on the hours worked and are expensed on a current basis. The Plan is 91.7% funded as of January 1, 2016 . The Company’s contributions to the plan were $1.1 million in 2016 , $1.0 million in 2015 and $0.9 million in 2014 . These contributions represent less than 1% of total contributions to the plan. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Share Buyback Program On February 24, 2016, the Company’s Board of Directors authorized the repurchase of up to $50 million of common stock (the “Buyback Program”). The Buyback Program allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market or through privately negotiated transactions. The Buyback Program may be suspended or discontinued at any time. Under this program the Company has repurchased approximately 523,000 shares for $17.6 million . Reserved Common Stock At December 31, 2016 , approximately 11.4 million shares of common stock were reserved for issuance upon conversion of the Class B stock, exercise of stock options and purchases under the Employee Stock Purchase Plan. Class B Stock is identical to Common Stock, except Class B Stock has ten votes per share, is automatically converted to Common Stock on a one-for-one basis when sold or transferred other than via gift, devise or bequest and cannot receive dividends unless an equal or greater amount of dividends is declared on Common Stock. Comprehensive Income and Accumulated Other Comprehensive Income (Loss) Comprehensive income consists of net income and the after-tax impact of currency translation adjustments, mark to market adjustments for derivatives and retirement liability adjustments. Income taxes related to derivatives and retirement liability adjustments within other comprehensive income are generally recorded based on an effective tax rate of approximately 35% . No income tax effect is recorded for currency translation adjustments. The components of accumulated other comprehensive income (loss) are as follows: (In thousands) 2016 2015 Foreign Currency Translation Adjustments $ (8,597 ) $ (7,971 ) Retirement Liability Adjustment – Before Tax (10,611 ) (10,912 ) Tax Benefit 3,714 3,819 Retirement Liability Adjustment – After Tax (6,897 ) (7,093 ) Accumulated Other Comprehensive Loss $ (15,494 ) $ (15,064 ) The components of other comprehensive income (loss) are as follows: (In thousands) 2016 2015 2014 Foreign Currency Translation Adjustments $ (626 ) $ (4,617 ) $ (4,638 ) Reclassification to Interest Expense — — 103 Mark to Market Adjustments for Derivatives — — 4 Tax Expense — — (38 ) Mark to Market Adjustments for Derivatives — — 69 Retirement Liability Adjustment 301 2,311 (5,800 ) Tax Benefit (Expense) (105 ) (809 ) 2,031 Retirement Liability Adjustment 196 1,502 (3,769 ) Other Comprehensive (Loss) Income $ (430 ) $ (3,115 ) $ (8,338 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Earnings per share computations are based upon the following table: 2016 2015 2014 (In thousands, except per share data) Net Income $ 48,424 $ 66,974 $ 56,170 Basic Earnings Weighted Average Shares 29,163 29,245 28,716 Net Effect of Dilutive Stock Options 869 934 1,254 Diluted Earnings Weighted Average Shares 30,032 30,179 29,970 Basic Earnings Per Share $ 1.66 $ 2.29 $ 1.96 Diluted Earnings Per Share $ 1.61 $ 2.22 $ 1.87 The above information has been adjusted to reflect the impact of the three-for-twenty distribution of Class B Stock for shareholders of record on October 11, 2016. Stock options with exercise prices greater than the average market price of the underlying common shares are excluded from the computation of diluted earnings per share because they are out-of-the-money and the effect of their inclusion would be anti-dilutive. The number of common shares covered by out-of-the-money stock options was approximately 0.2 million at December 31, 2016 , 0.1 million at December 31, 2015 and were insignificant at December 31, 2014 . |
Stock Option and Purchase Plans
Stock Option and Purchase Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option and Purchase Plans | STOCK OPTION AND PURCHASE PLANS The Company has stock option plans that authorize the issuance of options for shares of Common Stock to directors, officers and key employees. Stock option grants are designed to reward long-term contributions to the Company and provide incentives for recipients to remain with the Company. The exercise price, determined by a committee of the Board of Directors, may not be less than the fair market value of the Common Stock on the grant date. Options become exercisable over periods not exceeding ten years. The Company’s practice has been to issue new shares upon the exercise of the options. Stock compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Vesting requirements vary for directors, officers and key employees. In general, options granted to outside directors vest six months from the date of grant and options granted to officers and key employees straight line vest over a five -year period from the date of grant. 2016 2015 2014 Weighted Average Fair Value of the Options Granted $ 16.85 $ 18.00 $ 19.35 The weighted average fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free Interest Rate 1.08% – 2.34% 1.36% – 2.10% 0.12% – 2.30% Dividend Yield —% —% —% Volatility Factor 0.40 – 0.45 0.40 – 0.51 0.42 – 0.52 Expected Life in Years 4.0 – 8.0 4.0 – 8.0 4.0 – 8.0 To determine expected volatility, the Company uses historical volatility based on weekly closing prices of its Common Stock and considers currently available information to determine if future volatility is expected to differ over the expected terms of the options granted. The risk-free rate is based on the U.S. Treasury yield curve at the time of grant for the appropriate term of the options granted. Expected dividends are based on the Company’s history and expectation of dividend payouts. The expected term of stock options is based on vesting schedules, expected exercise patterns and contractual terms. The following table provides compensation expense information based on the fair value of stock options for the years ended December 31, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Stock Compensation Expense $ 2,281 $ 2,274 $ 1,730 Tax Benefit (145 ) (177 ) (122 ) Stock Compensation Expense, Net of Tax $ 2,136 $ 2,097 $ 1,608 A summary of the Company’s stock option activity and related information for the years ended December 31 is as follows: 2016 2015 2014 (Aggregate intrinsic value in Options Weighted Average Exercise Price Aggregate Intrinsic Value Options Weighted Aggregate Options Weighted Aggregate Outstanding at January 1 1,444,954 $ 12.61 $ 30,675 1,686,178 $ 9.43 $ 43,778 2,237,325 $ 6.58 $ 78,846 Options Granted 104,900 $ 34.29 $ (48 ) 105,742 $ 35.80 $ (42 ) 97,641 $ 36.63 $ 506 Options Exercised (188,768 ) $ 7.20 $ (5,029 ) (346,966 ) $ 4.25 $ (10,808 ) (644,058 ) $ 3.63 $ (24,599 ) Options Forfeited (22,813 ) $ 25.96 $ (180 ) — $ — $ — (4,730 ) $ 11.44 $ (144 ) Outstanding at December 31 1,338,273 $ 14.85 $ 25,418 1,444,954 $ 12.61 $ 32,928 1,686,178 $ 9.43 $ 54,609 Exercisable at December 31 1,091,561 $ 11.03 $ 24,898 1,167,040 $ 9.20 $ 30,576 1,371,614 $ 6.58 $ 48,331 The aggregate intrinsic value in the preceding table represents the total pretax option holder’s intrinsic value, based on the Company’s closing stock price of Common Stock which would have been received by the option holders had all option holders exercised their options as of that date. The Company’s closing stock price of Common Stock was $33.84 , $35.40 and $41.83 as of December 31, 2016 , 2015 and 2014 , respectively. The weighted average fair value of options vested during 2016 , 2015 and 2014 was $12.05 , $10.85 and $6.13 , respectively. The total fair value of options that vested during the year amounted to $1.4 million , $1.5 million and $1.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. At December 31, 2016 , total compensation costs related to non-vested awards not yet recognized amounts to $5.2 million and will be recognized over a weighted average period of 2.4 years. The following is a summary of weighted average exercise prices and contractual lives for outstanding and exercisable stock options as of December 31, 2016 : Outstanding Exercisable Exercise Price Range Shares Weighted Average Remaining Life in Years Weighted Average Exercise Price Shares Weighted Average Remaining Life in Years Weighted Average Exercise Price $ 3.04 - $ 4.45 471,841 2.5 $ 3.29 471,841 2.5 $ 3.29 $ 5.77 - $ 6.35 45,166 0.5 6.01 45,166 0.5 6.01 $ 8.83 - $15.68 459,138 4.6 11.73 431,370 4.5 11.81 $ 26.09 - $41.19 342,288 8.5 33.93 123,344 7.9 33.05 $ 52.77 - $52.77 19,840 8.2 52.77 19,840 8.2 52.77 1,338,273 4.8 14.85 1,091,561 3.9 11.03 The Company established Incentive Stock Option Plans for the purpose of attracting and retaining executive officers and key employees, and to align management’s interest with those of the shareholders. Generally, the options must be exercised within ten years from the grant date and vest ratably over a five -year period. The exercise price for the options is equal to the share price at the date of grant. At December 31, 2016 , the Company had options outstanding for 1,117,799 shares under the plans. At December 31, 2016 , there were 616,752 options available for future grant under the plan established in 2011. The Company established the Directors Stock Option Plans for the purpose of attracting and retaining the services of experienced and knowledgeable outside directors, and to align their interest with those of the shareholders. The options must be exercised within ten years from the grant date. The exercise price for the option is equal to the share price at the date of grant and vests six months from the grant date. At December 31, 2016 , the Company had options outstanding for 220,474 shares under the plans. At December 31, 2016 , there were 172,288 options available for future grant under the plan established in 2005. In addition to the options discussed above, the Company has established the Employee Stock Purchase Plan to encourage employees to invest in Astronics Corporation. The plan provides employees the opportunity to invest up to the IRS annual maximum of approximately $21,250 in Astronics common stock at a price equal to 85% of the fair market value of the Astronics common stock, determined each October 1. Employees are allowed to enroll annually. Employees indicate the number of shares they wish to obtain through the program and their intention to pay for the shares through payroll deductions over the annual cycle of October 1 through September 30. Employees can withdraw anytime during the annual cycle, and all money withheld from the employees pay is returned with interest. If an employee remains enrolled in the program, enough money will have been withheld from the employees’ pay during the year to pay for all the shares that the employee opted for under the program. At December 31, 2016 , employees had subscribed to purchase 108,995 shares at $33.09 per share. The weighted average fair value of the options was approximately $9.88 , $6.93 and $8.40 for options granted during the year ended December 31, 2016 , 2015 and 2014 , respectively. The fair value for the options granted under the Employee Stock Purchase Plan was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free Interest Rate 0.63 % 0.31 % 0.10 % Dividend Yield — % — % — % Volatility Factor 0.45 0.40 0.42 Expected Life in Years 1.0 1.0 1.0 |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE ASC Topic 820, Fair value Measurements and Disclosures , (“ASC Topic 820”) defines fair value, establishes a framework for measuring fair value and expands the related disclosure requirements. This statement applies under other accounting pronouncements that require or permit fair value measurements. The statement indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. ASC Topic 820 defines fair value based upon an exit price model. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and involves consideration of factors specific to the asset or liability. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. On a Recurring Basis: A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The financial liabilities carried at fair value measured on a recurring basis consisted of contingent consideration related to certain prior acquisitions, valued at zero at December 31, 2016 and 2015 , recorded within Other Liabilities. The values were determined using Level 3 inputs. There were no financial assets carried at fair value measured on a recurring basis at December 31, 2016 or 2015 . The amounts recorded for the contingent considerations were calculated using an estimate of the probability of the future cash outflows. The varying contingent payments were then discounted to the present value utilizing a discounted cash flow methodology. The contingent consideration liabilities have no observable Level 1 or Level 2 inputs. The change in the balance of contingent consideration during fiscal 2015 was primarily due to fair value adjustments of $1.8 million resulting from the re-evaluation of the probability of the achievement of the contingent consideration targets. There was a similar adjustment of $5.0 million in fiscal 2014. These adjustments were recorded within SG&A expenses in the Consolidated Statements of Operations. On a Non-recurring Basis: In accordance with the provisions of ASC Topic 350, Intangibles – Goodwill and Other, the Company estimates the fair value of reporting units, utilizing unobservable Level 3 inputs. Level 3 inputs require significant management judgment due to the absence of quoted market prices or observable inputs for assets of a similar nature. The Company utilizes a discounted cash flow method to estimate the fair value of reporting units utilizing unobservable inputs. The fair value measurement of the reporting unit under the step-one and step-two analysis of the quantitative goodwill impairment test are classified as Level 3 inputs. There were no impairment charges to goodwill in any of the Company’s reporting units in 2016 , 2015 or 2014 . Intangible assets that are amortized are evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying value may not be recoverable. The recoverability test consists of comparing the undiscounted projected cash flows with the carrying amount. Should the carrying amount exceed undiscounted projected cash flows, an impairment loss would be recognized to the extent the carrying amount exceeds fair value. There were no impairment charges to any of the Company’s intangible assets in either of the Company’s segments in 2016 , 2015 or 2014 . The Armstrong intangible assets acquired on January 14, 2015 were valued using a discounted cash flow methodology and are classified as Level 3 inputs. Due to their short-term nature, the carrying value of cash and equivalents, accounts receivable, accounts payable, and notes payable approximate fair value. The carrying value of the Company’s variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information | SELECTED QUARTERLY FINANCIAL INFORMATION The following table summarizes selected quarterly financial information for 2016 and 2015 : Quarter Ended (Unaudited) Dec. 31, October 1, July 2, April 2, Dec. 31, October 3, July 4, April 4, (In thousands, except for per share data) 2016 2016 2016 2016 2015 2015 2015 2015 Sales $ 154,068 $ 155,099 $ 164,426 $ 159,530 $ 157,340 $ 200,145 $ 173,156 $ 161,638 Gross Profit (sales less cost of products sold) $ 36,486 $ 38,663 $ 44,835 $ 39,483 $ 38,901 $ 59,427 $ 49,452 $ 40,162 Income Before Income Taxes $ 14,296 $ 16,422 $ 21,555 $ 16,512 $ 14,822 $ 35,887 $ 27,044 $ 16,297 Net Income $ 9,885 $ 12,074 $ 14,980 $ 11,485 $ 13,907 $ 24,694 $ 17,690 $ 10,683 Basic Earnings Per Share $ 0.34 $ 0.42 $ 0.51 $ 0.39 $ 0.47 $ 0.84 $ 0.61 $ 0.37 Diluted Earnings Per Share $ 0.33 $ 0.41 $ 0.50 $ 0.38 $ 0.46 $ 0.82 $ 0.59 $ 0.35 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company leases certain facilities and equipment under various lease contracts with terms that meet the accounting definition of operating leases. These arrangements may include fair value renewal or purchase options. Rental expense for the years ended December 31, 2016 , 2015 and 2014 was $3.9 million , $2.9 million and $3.0 million , respectively. The following table represents future minimum lease payment commitments as of December 31, 2016 : (In thousands) 2017 $ 2,380 2018 1,872 2019 1,496 2020 137 2021 — $ 5,885 From time to time the Company may enter into purchase agreements with suppliers under which there is a commitment to buy a minimum amount of product. Purchase commitments outstanding at December 31, 2016 were $98.5 million . These commitments are not reflected as liabilities in the Company’s Consolidated Balance Sheets. Legal Proceedings On December 29, 2010, Lufthansa Technik AG (“Lufthansa”) filed a Statement of Claim in the Regional State Court of Mannheim, Germany. Lufthansa’s claim asserts that our subsidiary, AES sold, marketed and brought into use in Germany a power supply system that infringes upon a German patent held by Lufthansa. The relief sought by Lufthansa includes requiring AES to stop selling and marketing the allegedly infringing power supply system, a recall of allegedly infringing products sold to commercial customers since November 26, 2003 and compensation for damages. The claim does not specify an estimate of damages and a damages claim will be made by Lufthansa only if it receives a favorable ruling on the determination of infringement. On February 6, 2015, the Regional State Court of Mannheim, Germany rendered its decision that the patent was infringed. The judgment does not require AES to recall products that are already installed in aircraft or have been sold to other end users. On July 15, 2015, Lufthansa advised AES of their intention to enforce the accounting provisions of the decision, which required AES to provide certain financial information regarding sales of the infringing product to enable Lufthansa to make an estimate of requested damages. Additionally, if Lufthansa provides the required bank guarantee specified in the decision, the Company may be required to offer a recall of products that are in the distribution channels in Germany. No such bank guarantee has been issued to date. As of December 31, 2016 there are no products in the distribution channels in Germany. The Company appealed to the Higher Regional Court of Karlsruhe. On November 15, 2016, the Court issued its ruling and upheld the lower court’s decision. The Company has submitted a petition to grant AES leave for appeal to the Federal Supreme Court. The Company believes it has valid defenses to refute the decision. Should the Federal Supreme Court decide to hear the case, the appeal process is estimated to extend up to two years . We estimate AES’s potential exposure related to this matter to be approximately $1 million to $3 million . As loss exposure is not probable at this time, the Company has not recorded any liability with respect to this litigation as of December 31, 2016 . On November 26, 2014, Lufthansa filed a complaint in the United States District for the Western District of Washington. Lufthansa’s complaint in this action alleges that AES manufactures, uses, sells and offers for sale a power supply system that infringes upon a U.S. patent held by Lufthansa. The patent at issue in the U.S. action is based on technology similar to that involved in the German action. On April 25, 2016, the Court issued its ruling on claim construction, holding that the sole independent claim in the patent is indefinite, rendering all claims in the patent indefinite. Based on this ruling, AES filed a motion for summary judgment on the grounds that the Court’s ruling that the patent is indefinite renders the patent invalid and unenforceable. On July 20, 2016, the U.S. District Court granted the motion for summary judgment and issued an order dismissing all claims against AES with prejudice. Lufthansa has filed an appeal with the United States Court of Appeals for the Federal Circuit. The Company believes that it has valid defenses to Lufthansa’s claims and will vigorously contest the appeal. As loss exposure is neither probable nor estimable at this time, the Company has not recorded any liability with respect to this litigation as of December 31, 2016 . |
Segments
Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segments | SEGMENTS Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows: (In thousands) 2016 2015 2014 Sales: Aerospace $ 534,408 $ 549,738 $ 494,747 Less Inter-segment Sales (367 ) — — Total Aerospace Sales 534,041 549,738 494,747 Test Systems 99,082 142,596 166,769 Less Inter-segment Sales — (55 ) (477 ) Test Systems 99,082 142,541 166,292 Total Consolidated Sales $ 633,123 $ 692,279 $ 661,039 Operating Profit (Loss) and Margins: Aerospace $ 77,966 $ 85,103 $ 79,753 14.6 % 15.5 % 16.1 % Test Systems 8,507 25,529 12,401 8.6 % 17.9 % 7.4 % Total Operating Profit 86,473 110,632 92,154 13.7 % 16.0 % 13.9 % Deductions from Operating Profit: Interest Expense, Net of Interest Income (4,354 ) (4,751 ) (8,255 ) Corporate and Other Expenses, Net (13,334 ) (11,831 ) (4,792 ) Income before Income Taxes $ 68,785 $ 94,050 $ 79,107 Depreciation and Amortization: Aerospace $ 19,873 $ 19,377 $ 17,847 Test Systems 5,273 5,209 8,786 Corporate 644 723 621 Total Depreciation and Amortization $ 25,790 $ 25,309 $ 27,254 Identifiable Assets: Aerospace $ 500,892 $ 510,884 $ 468,481 Test Systems 76,575 64,934 69,247 Corporate 26,877 33,425 25,182 Total Assets $ 604,344 $ 609,243 $ 562,910 Capital Expenditures: Aerospace $ 9,511 $ 16,503 $ 35,650 Test Systems 3,345 2,103 3,472 Corporate 181 35 1,760 Total Capital Expenditures $ 13,037 $ 18,641 $ 40,882 Operating profit is sales less cost of products sold and other operating expenses, excluding interest expense and other corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. For the years ended December 31, 2016 , 2015 and 2014 , there was no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In the Aerospace segment, goodwill amounted to $115.2 million and $115.4 million at December 31, 2016 and 2015 , respectively. In the Test Systems segment, there was no goodwill as of December 31, 2016 and 2015 . The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31: 2016 2015 2014 (In thousands) United States $ 504,270 $ 508,724 $ 444,277 North America (excluding United States) 12,331 13,044 8,717 Asia 52,171 108,967 141,247 Europe 61,200 57,936 64,742 South America 577 1,112 1,192 Other 2,574 2,496 864 $ 633,123 $ 692,279 $ 661,039 The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31: 2016 2015 2014 (In thousands) United States $ 114,048 $ 115,117 $ 105,698 France 8,216 9,092 10,347 Canada 548 533 271 $ 122,812 $ 124,742 $ 116,316 Sales recorded by the Company’s foreign operations were $50.1 million , $50.8 million and $64.5 million in 2016 , 2015 and 2014 , respectively. Net income from these locations was $1.8 million , $3.4 million and $4.1 million in 2016 , 2015 and 2014 , respectively. Net assets held outside of the U.S. total $36.8 million and $36.1 million at December 31, 2016 and 2015 , respectively. The exchange gain included in determining net income was insignificant in 2016 and 2014 and was $1.0 million in 2015 . Cumulative translation adjustments amounted to $(8.6) million and $(8.0) million at December 31, 2016 and 2015 , respectively. The Company has a significant concentration of business with two major customers; Panasonic Aviation Corporation (“Panasonic”) and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers: 2016 2015 2014 Percent of Consolidated Revenue Panasonic 21.6 % 21.0 % 17.7 % Boeing 15.2 % 13.0 % 14.1 % (In thousands) 2016 2015 Accounts Receivable at December 31, Panasonic $ 17,126 $ 14,433 Boeing $ 11,737 $ 9,598 Sales to Panasonic are in the Aerospace segment. Sales to Boeing occur in both segments. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Armstrong Aerospace, Inc. On January 14, 2015, the Company purchased 100% of the equity of Armstrong for $52.3 million in cash. Armstrong, located in Itasca, Illinois, is a leading provider of engineering, design and certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. This transaction was not considered material to the Company’s financial position or results of operations. All of the goodwill and purchased intangible assets are expected to be deductible for tax purposes over 15 years . The purchase price allocation for this acquisition has been finalized. Astronics Test Systems On February 28, 2014, our wholly owned subsidiary, ATS, purchased substantially all of the assets and liabilities of the Test and Services Division of EADS North America, Inc. for approximately $69.4 million in cash. Located in Irvine, California, ATS is a leading provider of highly-engineered automatic test systems, subsystems and instruments for the semiconductor, consumer electronics, commercial aerospace & defense industries. ATS provides fully customized testing systems and support services for these markets. It also designs and manufactures test equipment under the test instrument brands known as Racal and Talon. The acquisition strengthens our service offerings and expertise in the test market. This subsidiary is included in our Test Systems segment. The purchase price allocation for this acquisition has been finalized. Acquisition costs are expensed as incurred. Acquisition related expenses were insignificant in 2016 and were approximately $0.4 million and $0.3 million in 2015 and 2014 , respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 3, 2017 , Astronics Custom Control Concepts Inc., a wholly owned subsidiary of the Company acquired substantially all the assets and certain liabilities of Custom Control Concepts LLC (“CCC”), located in Kent, Washington. CCC is a provider of cabin management and in-flight entertainment systems for a range of aircraft. The total consideration for the transaction was approximately $10.2 million , net of $0.5 million in cash acquired. All of the goodwill and purchased intangible assets are expected to be deductible for tax purposes over 15 years . The purchase price allocation for this acquisition has not been finalized. CCC will be included in our Aerospace segment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II Valuation and Qualifying Accounts Year Description Balance at the Beginning of Period Additions Charged to Cost and Expense Write-Offs Balance at End of Period (In thousands) 2016 Allowance for Doubtful Accounts $ 312 $ 388 $ (98 ) $ 602 Reserve for Inventory Valuation 14,594 2,015 (1,199 ) 15,410 Deferred Tax Valuation Allowance 2,640 1,176 — 3,816 2015 Allowance for Doubtful Accounts $ 293 $ 68 $ (49 ) $ 312 Reserve for Inventory Valuation 12,276 3,120 (802 ) 14,594 Deferred Tax Valuation Allowance 3,134 — (494 ) 2,640 2014 Allowance for Doubtful Accounts $ 140 $ 119 $ 34 $ 293 Reserve for Inventory Valuation 11,041 1,840 (605 ) 12,276 Deferred Tax Valuation Allowance 2,509 625 — 3,134 |
Summary of Significant Accoun28
Summary of Significant Accounting Principles and Practices (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Astronics Corporation (“Astronics” or the “Company”) is a leading supplier of products to the global aerospace, defense, electronics and semiconductor industries. Our products and services include advanced, high-performance electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, systems certification, aircraft structures and automated test systems. We have operations in the United States (“U.S.”), Canada and France. We design and build our products through our wholly owned subsidiaries Astronics Advanced Electronic Systems Corp. (“AES”); Astronics AeroSat Corporation (“AeroSat”); Armstrong Aerospace, Inc. (“Armstrong”); Astronics Test Systems, Inc. (“ATS”); Ballard Technology, Inc. (“Ballard”); Astronics DME LLC (“DME”); Luminescent Systems, Inc. (“LSI”); Luminescent Systems Canada, Inc. (“LSI Canada”); Max-Viz, Inc. (“Max-Viz”); Peco, Inc. (“Peco”); and PGA Electronic s.a. (“PGA”). On January 14, 2015 , the Company acquired 100% of the equity of Armstrong for approximately $52.3 million in cash. Armstrong, located in Itasca, Illinois, is a leading provider of engineering, design and certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. At December 31, 2016 , the Company has two reportable segments, Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Our Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems as well as training and simulation devices for both commercial and military applications. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Acquisitions are accounted for under the acquisition method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of operations from the respective dates of acquisition. For additional information on the acquired businesses, see Note 18. |
Revenue Recognition | Revenue Recognition The vast majority of our sales agreements are for standard products and services, with revenue recognized on the accrual basis at the time of shipment of goods, transfer of title and customer acceptance, where required. There are no significant contracts allowing for right of return. To a limited extent, as a result of the acquisition of ATS, certain of our contracts involve multiple elements (such as equipment and service). Service revenues were not material for the years ended December 31, 2016 , 2015 and 2014 . The Company recognizes revenue for delivered elements when they have stand-alone value to the customer, they have been accepted by the customer, and for which there are only customary refund or return rights. Arrangement consideration is allocated to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor-specific objective evidence (“VSOE”) if available, third party-evidence (“TPE”) if VSOE is not available, or estimated selling price if neither VSOE nor TPE is available. Estimated selling price is determined in a manner consistent with that used to establish the price to sell the deliverable on a standalone basis. For prepaid service contracts, sales revenue is recognized on a straight-line basis over the term of the contract, unless historical evidence indicates the costs are incurred on other than a straight-line basis. Revenue of approximately $20.7 million , $17.2 million and $2.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, was recognized from long-term, fixed-price contracts using the percentage-of-completion method of accounting, measured by multiplying the estimated total contract value by the ratio of actual contract costs incurred to date to the estimated total contract costs. The Company makes significant estimates involving its usage of percentage-of-completion accounting to recognize contract revenues. The Company periodically reviews contracts in process for estimates-to-completion, and revises estimated gross profit accordingly. While the Company believes its estimated gross profit on contracts in process is reasonable, unforeseen events and changes in circumstances can take place in a subsequent accounting period that may cause the Company to revise its estimated gross profit on one or more of its contracts in process. Accordingly, the ultimate gross profit realized upon completion of such contracts can vary significantly from estimated amounts between accounting periods. For contracts with anticipated losses at completion, a charge is taken against income for the amount of the entire loss in the period in which it is estimated. |
Cost of Products Sold, Engineering and Development and Selling, General and Administrative Expenses | Cost of Products Sold, Engineering and Development and Selling, General and Administrative Expenses Cost of products sold includes the costs to manufacture products such as direct materials and labor and manufacturing overhead as well as all engineering and developmental costs. The Company is engaged in a variety of engineering and design activities as well as basic research and development activities directed to the substantial improvement or new application of the Company’s existing technologies. These costs are expensed when incurred and included in cost of products sold. Research and development, design and related engineering amounted to $90.2 million in 2016 , $90.1 million in 2015 and $76.7 million in 2014 . Selling, general and administrative (“SG&A”) expenses include costs primarily related to our sales, marketing and administrative departments. |
Shipping and Handling | Shipping and Handling Shipping and handling costs are expensed as incurred and are included in costs of products sold. |
Stock Distribution | Stock Distribution On September 26, 2016, the Company announced a three-for-twenty distribution of Class B Stock to holders of both Common and Class B Stock. Stockholders received three shares of Class B Stock for every twenty shares of Common and Class B Stock held on the record date of October 11, 2016. Fractional shares were paid in cash. All share quantities, share prices and per share data reported throughout this report have been adjusted to reflect the impact of this distribution. |
Equity-Based Compensation | Equity-Based Compensation The Company accounts for its stock options following Accounting Standards Codification (“ASC”) Topic 718, Compensation – Stock Compensation (“ASC Topic 718”). This Topic requires all equity-based payments to employees, including grants of employee stock options, to be recognized in the statement of earnings based on the grant date fair value of the award. For awards with graded vesting, the Company uses a straight-line method of attributing the value of stock-based compensation expense, subject to minimum levels of expense, based on vesting. Under ASC Topic 718, stock compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Vesting requirements vary for directors, officers and key employees. In general, options granted to outside directors vest six months from the date of grant and options granted to officers and key employees vest with graded vesting over a five -year period, 20% each year, from the date of grant. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid instruments with a maturity of three months or less at the time of purchase are considered cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are composed of trade and contract receivables recorded at either the invoiced amount or costs in excess of billings, are expected to be collected within one year, and do not bear interest. The Company will record a valuation allowance to account for potentially uncollectible accounts receivable. The allowance is determined based on our knowledge of the business, specific customers, review of the receivables’ aging and a specific identification of accounts where collection is at risk. Account balances are charged against the allowance after all means of collections have been exhausted and recovery is considered remote. The Company typically does not require collateral. |
Inventories | Inventories Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method or standard cost. The Company records valuation reserves to provide for excess, slow moving or obsolete inventory. In determining the appropriate reserve, the Company considers the age of inventory on hand, the overall inventory levels in relation to forecasted demands as well as reserving for specifically identified inventory that the Company believes is no longer salable. |
Property, Plant and Equipment | Property, Plant and Equipment Depreciation of property, plant and equipment is computed using the straight-line method for financial reporting purposes and using accelerated methods for income tax purposes. Estimated useful lives of the assets are as follows: buildings, 25 - 40 years; machinery and equipment, 4 - 10 years. Leased buildings and associated leasehold improvements are amortized over the shorter of the terms of the lease or the estimated useful lives of the assets, with the amortization of such assets included within depreciation expense. The cost of properties sold or otherwise disposed of and the accumulated depreciation thereon are eliminated from the accounts and the resulting gain or loss, as well as maintenance and repair expenses, is reflected in income. Replacements and improvements are capitalized. |
Long-Lived Assets | Long-Lived Assets Long-lived assets to be held and used are initially recorded at cost. The carrying value of these assets is evaluated for recoverability whenever adverse effects or changes in circumstances indicate that the carrying amount may not be recoverable. Impairments are recognized if future undiscounted cash flows from operations are not expected to be sufficient to recover long-lived assets. The carrying amounts are then reduced to fair value, which is typically determined by using a discounted cash flow model. |
Goodwill | Goodwill The Company tests goodwill at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company has ten reporting units, however only eight reporting units have goodwill and were subject to the goodwill impairment test. The annual testing date for the impairment test is as of the first day of our fourth quarter. We may elect to perform a qualitative assessment that considers economic, industry and company-specific factors for all or selected reporting units. If, after completing the assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a quantitative test. We may also elect to perform a quantitative test instead of a qualitative test for any or all of our reporting units. Quantitative testing requires a comparison of the fair value of each reporting unit to its carrying value. We use the discounted cash flow method to estimate the fair value of our reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating margins and cash flows, the terminal growth rate and the weighted average cost of capital. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and any loss must be measured. To determine the amount of the impairment loss, the implied fair value of goodwill is determined by assigning a fair value to all of the reporting unit’s assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination at fair value. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss would be recognized in an amount equal to that excess. |
Intangible Assets | Intangible Assets Acquired intangibles are generally valued based upon future economic benefits such as earnings and cash flows. Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives. Acquired intangible assets with an indefinite life are not amortized, but are reviewed for impairment at least annually or more frequently whenever events or changes in circumstances indicate that the carrying amounts of those assets are below their estimated fair values. Impairment is tested under ASC Topic 350, Intangibles - Goodwill and Other, as amended by Accounting Standards Update (“ASU”) 2012-2, by first performing a qualitative analysis in a manner similar to the testing methodology of goodwill discussed previously. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, notes payable and long-term debt. The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral. The Company does not hold or issue financial instruments for trading purposes. Due to their short-term nature, the carrying values of cash and equivalents, accounts receivable, accounts payable, and notes payable approximate fair value. The carrying value of the Company’s variable rate long-term debt instruments also approximates fair value due to the variable rate feature of these instruments. |
Derivatives | Derivatives The accounting for changes in the fair value of derivatives depends on the intended use and resulting designation. The Company’s use of derivative instruments was limited to cash flow hedges for interest rate risk associated with long-term debt. All such instruments were terminated in 2014. Interest rate swaps were used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps were designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, converted a portion of the variable-rate debt to fixed-rate debt. The Company recorded all derivatives on the balance sheet at fair value. The related gains or losses, to the extent the derivatives were effective as a hedge, were deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) and reclassified into earnings at the time interest expense was recognized on the associated long-term debt. Any ineffectiveness was recorded in the Consolidated Statements of Operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenues and expenses during the reporting periods in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation The Company accounts for its foreign currency translation in accordance with ASC Topic 830, Foreign Currency Translation . |
Dividends | Dividends The Company has not paid any cash dividends in the three-year period ended December 31, 2016 . |
Loss Contingencies | Loss Contingencies Loss contingencies may from time to time arise from situations such as claims and other legal actions. Loss contingencies are recorded as liabilities when it is probable that a liability has been incurred and the amount of the loss is reasonably estimable. Disclosure is required when there is a reasonable possibility that the ultimate loss will exceed the recorded provision. Contingent liabilities are often resolved over long time periods. In recording liabilities for probable losses, management is required to make estimates and judgments regarding the amount or range of the probable loss. Management continually assesses the adequacy of estimated loss contingencies and, if necessary, adjusts the amounts recorded as better information becomes known. |
Acquisitions | Acquisitions The Company accounts for its acquisitions under ASC Topic 805, Business Combinations and Reorganizations (“ASC Topic 805”). ASC Topic 805 provides guidance on how the acquirer recognizes and measures the consideration transferred, identifiable assets acquired, liabilities assumed, non-controlling interests, and goodwill acquired in a business combination. ASC Topic 805 also expands required disclosures surrounding the nature and financial effects of business combinations. |
Newly Adopted and Recent Accounting Pronouncements | Newly Adopted and Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9, Revenue from Contracts with Customers . This new standard is effective for reporting periods beginning after December 15, 2017, pursuant to the issuance of ASU 2015-14, Revenue from Contracts with Customers: Deferral of Effective Date issued in August 2015. The comprehensive new standard will supersede existing revenue recognition guidance and require revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions. The guidance permits two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company will adopt the new standard on January 1, 2018, using the modified retrospective transition method. The adoption of this amendment may require us to accelerate the recognition of revenue as compared to current standards, for certain customers, in cases where we produce products unique to those customers; and for which we would have an enforceable right of payment for production completed to date. The Company has identified its revenue streams, reviewed the initial impacts of adopting the new standard on those revenue streams, and appointed a project management leader. The Company continues to evaluate the quantitative and qualitative impacts of the standard. In February 2016, the FASB issued ASU No. 2016 - 02, Leases . The new standard is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The standard will require lessees to report most leases as assets and liabilities on the balance sheet, while lessor accounting will remain substantially unchanged. The standard requires a modified retrospective transition approach for existing leases, whereby the new rules will be applied to the earliest year presented. The adoption of the standard is not expected to have a material effect on the Company’s financial position, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting . The new standard is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. With respect to income taxes, under current guidance, when a share-based payment award such as a stock option is granted to an employee, the fair value of the award is generally recognized over the vesting period. However, the related deduction from taxes payable is based on the award’s intrinsic value at the time of exercise, which can be either greater (creating an excess tax benefit) or less (creating a tax deficiency) than the compensation cost recognized in the financial statements. Excess tax benefits are currently recognized in additional paid-in capital (“APIC”) within equity, deficiencies are first recorded to APIC to the extent previously recognized excess tax benefits exist, after which time deficiencies are recorded to income tax expense. Under the new guidance, all excess tax benefits/deficiencies would be recognized as income tax benefit/expense in the statement of income. The new ASU’s income tax aspects also impact the calculation of diluted earnings per share by excluding excess tax benefits/deficiencies from the calculation of assumed proceeds available to repurchase shares under the treasury stock method. Relative to forfeitures, the new standard provides an accounting policy election to account for forfeitures as they occur. Additionally, cash flows related to excess tax benefits will be included in Net cash provided by operating activities and will no longer be separately classified as a financing activity. Finally, the new ASU also allows a company to repurchase more of an employee’s shares for tax withholding purposes. The Company will adopt the new standard on January 1, 2017, and will account for forfeitures as they occur. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments , which is intended to reduce diversity in practice in how certain cash receipts and payments are presented and classified in the statement of cash flows. The standard provides guidance in a number of situations including, among others, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investees. The ASU also provides guidance for classifying cash receipts and payments that have aspects of more than one class of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The standard requires application using a retrospective transition method. This ASU is not expected to have a material impact on the Company’s consolidated results of operations and financial condition. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. To be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. The standard also narrows the definition of outputs. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. Under the new guidance, fewer acquired sets are expected to be considered businesses. This ASU is effective for fiscal years beginning after December 15, 2017 on a prospective basis with early adoption permitted. The Company would apply this guidance to applicable transactions after the adoption date. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. This ASU is effective prospectively to annual and interim impairment tests beginning after December 15, 2019, with early adoption permitted. The Company plans to early adopt on January 1, 2017. |
Income Taxes | The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets are reduced, if deemed necessary, by a valuation allowance for the amount of tax benefits which are not expected to be realized. Investment tax credits are recognized on the flow through method. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts receivable at December 31 consists of: (In thousands) 2016 2015 Trade Accounts Receivable $ 93,823 $ 87,282 Unbilled Recoverable Costs and Accrued Profits 16,194 8,307 Total Receivables 110,017 95,589 Less Allowance for Doubtful Accounts (602 ) (312 ) $ 109,415 $ 95,277 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories at December 31 are as follows: (In thousands) 2016 2015 Finished Goods $ 28,792 $ 27,770 Work in Progress 20,790 23,977 Raw Material 67,015 63,720 $ 116,597 $ 115,467 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | The following table summarizes acquired intangible assets as follows: December 31, 2016 December 31, 2015 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 4 Years $ 2,146 $ 1,450 $ 2,146 $ 1,264 Noncompete Agreement 3 Years 2,500 979 2,500 479 Trade Names 7 Years 10,189 3,153 10,217 2,216 Completed and Unpatented Technology 6 Years 24,118 9,221 24,056 6,795 Backlog - 11,224 11,224 11,202 10,793 Customer Relationships 12 Years 97,046 23,093 96,472 16,770 Total Intangible Assets 6 Years $ 147,223 $ 49,120 $ 146,593 $ 38,317 |
Summary of Future Amortization Expense for Intangible Assets | Based upon acquired intangible assets at December 31, 2016 , amortization expense for each of the next five years is estimated to be: (In thousands) 2017 $ 10,445 2018 10,133 2019 9,754 2020 9,198 2021 9,152 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill for 2016 and 2015 : (In thousands) 2016 2015 Balance at Beginning of the Year $ 115,369 $ 100,153 Acquisition — 16,237 Foreign Currency Translations and Other (162 ) (1,021 ) Balance at End of the Year $ 115,207 $ 115,369 Goodwill - Gross $ 131,749 $ 131,911 Accumulated Impairment Losses (16,542 ) (16,542 ) Goodwill - Net $ 115,207 $ 115,369 |
Long-Term Debt and Notes Paya33
Long-Term Debt and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following: (In thousands) 2016 2015 Revolving Credit Line issued under the Fourth Amended and Restated Credit Agreement dated September 26, 2014. Interest is at LIBOR plus between 1.375% and 2.25% (2.27% at December 31, 2016). $ 136,000 $ 155,000 Other Bank Debt 1,270 1,963 Capital Lease Obligations 10,850 12,826 148,120 169,789 Less Current Maturities 2,636 2,579 $ 145,484 $ 167,210 |
Principal Maturities of Long-Term Debt | Principal maturities of long-term debt are approximately: (In thousands) 2017 $ 2,636 2018 2,610 2019 1,835 2020 2,096 2021 138,049 Thereafter 894 $ 148,120 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Summary of Activity in Warranty Accrual | Activity in the warranty accrual, which is included in other accrued expenses on the Consolidated Balance Sheets, is summarized as follows: (In thousands) 2016 2015 2014 Balance at Beginning of the Year $ 5,741 $ 4,884 $ 2,796 Warranty Liabilities Acquired — 500 564 Warranties Issued 2,281 4,039 3,431 Reassessed Warranty Exposure (966 ) (485 ) (34 ) Warranties Settled (2,381 ) (3,197 ) (1,873 ) Balance at End of the Year $ 4,675 $ 5,741 $ 4,884 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes consists of the following: (In thousands) 2016 2015 2014 Current U.S. Federal $ 21,667 $ 24,809 $ 22,705 State 2,899 2,382 3,797 Foreign 551 137 1,112 Deferred U.S. Federal (2,871 ) 703 (3,035 ) State (1,140 ) (1,019 ) (655 ) Foreign (745 ) 64 (987 ) $ 20,361 $ 27,076 $ 22,937 |
Effective Tax Rates Differ from Statutory Federal Income Tax Rate | The effective tax rates differ from the statutory federal income tax rate as follows: 2016 2015 2014 Statutory Federal Income Tax Rate 35.0 % 35.0 % 35.0 % Permanent Items Non-deductible Stock Compensation Expense 1.1 % 0.6 % 0.6 % Domestic Production Activity Deduction (3.3 )% (2.9 )% (2.6 )% Other 0.2 % 0.2 % 0.1 % Foreign Tax Benefits (1.1 )% (1.1 )% (1.7 )% State Income Tax, Net of Federal Income Tax Effect 1.8 % 0.9 % 2.6 % Research and Development Tax Credits (3.7 )% (2.7 )% (4.3 )% Other (0.4 )% (1.2 )% (0.7 )% Effective Tax Rate 29.6 % 28.8 % 29.0 % |
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, are as follows: (In thousands) 2016 2015 Deferred Tax Assets: Asset Reserves $ 9,208 $ 8,709 Deferred Compensation 8,378 7,986 Capital Lease Basis Difference 1,690 1,753 State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax 665 533 Customer Advanced Payments and Deferred Revenue 3,750 1,722 State Net Operating Loss Carryforwards and Other 4,282 2,401 Total Gross Deferred Tax Assets 27,973 23,104 Valuation Allowance for State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax (3,816 ) (2,640 ) Deferred Tax Assets 24,157 20,464 Deferred Tax Liabilities: Depreciation 12,972 12,561 Goodwill and Intangible Assets 18,558 20,113 Other 1,280 1,199 Deferred Tax Liabilities 32,810 33,873 Net Deferred Tax Liabilities $ (8,653 ) $ (13,409 ) |
Components of Net Deferred Tax Assets and Liabilities | The net deferred tax assets and liabilities presented in the Consolidated Balance Sheets are as follows at December 31: (In thousands) 2016 2015 Other Assets — Long-term $ 2,644 $ 1,558 Deferred Tax Liabilities — Long-term (11,297 ) (14,967 ) Net Deferred Tax Liabilities $ (8,653 ) $ (13,409 ) |
Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties | A reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties which are insignificant, is as follows: (in thousands) 2016 2015 2014 Balance at Beginning of the Year $ — $ 181 $ 1,940 Decreases as a Result of Tax Positions Taken in Prior Years — (181 ) (1,901 ) Increases as a Result of Tax Positions Taken in the Current Year — — 142 Balance at End of the Year $ — $ — $ 181 |
Retirement Plans and Related 36
Retirement Plans and Related Post Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SERP | |
Reconciliation of Beginning and Ending Balances of Projected Benefit Obligation | The reconciliation of the beginning and ending balances of the projected benefit obligation of the plans for the years ended December 31 is as follows: (In thousands) 2016 2015 Funded Status Projected Benefit Obligation Beginning of the Year — January 1 $ 20,418 $ 20,990 Service Cost 173 194 Interest Cost 901 843 Actuarial (Gain) Loss 389 (1,261 ) Benefits Paid (348 ) (348 ) End of the Year — December 31 $ 21,533 $ 20,418 |
Assumptions Used to Calculate the Post Retirement Benefit Obligation | The assumptions used to calculate the projected benefit obligation as of December 31 are as follows: 2016 2015 Discount Rate 4.20% 4.45% Future Average Compensation Increases 3.00% – 5.00% 3.00% – 5.00% |
Summary of the Components of Net Periodic Cost | The following table summarizes the components of the net periodic cost for the years ended December 31: (In thousands) 2016 2015 2014 Net Periodic Cost Service Cost — Benefits Earned During Period $ 173 $ 194 $ 247 Interest Cost 901 843 721 Amortization of Prior Service Cost 413 495 495 Amortization of Losses 343 449 108 Net Periodic Cost $ 1,830 $ 1,981 $ 1,571 |
Assumptions Used to Determine the Net Periodic Cost | The assumptions used to determine the net periodic cost are as follows: 2016 2015 2014 Discount Rate 4.45% 4.05% 5.10% Future Average Compensation Increases 3.00% – 5.00% 5.00% 5.00% |
SERP Medical | |
Reconciliation of Beginning and Ending Balances of Projected Benefit Obligation | The reconciliation of the beginning and ending balances of the accumulated postretirement benefit obligation for the years ended December 31, is as follows: (In thousands) 2016 2015 Funded Status Accumulated Postretirement Benefit Obligation Beginning of the Year — January 1 $ 925 $ 990 Service Cost 5 6 Interest Cost 40 39 Actuarial (Gain) Loss 112 (54 ) Benefits Paid (61 ) (56 ) End of the Year — December 31 $ 1,021 $ 925 |
Assumptions Used to Calculate the Post Retirement Benefit Obligation | The assumptions used to calculate the accumulated post-retirement benefit obligation as of December 31 are as follows: 2016 2015 Discount Rate 4.20% 4.45% |
Summary of the Components of Net Periodic Cost | The following table summarizes the components of the net periodic cost for the years ended December 31: (In thousands) 2016 2015 2014 Net Periodic Cost Service Cost — Benefits Earned During Period $ 5 $ 6 $ 3 Interest Cost 40 39 31 Amortization of Prior Service Cost 24 26 25 Amortization of Losses 22 26 — Net Periodic Cost $ 91 $ 97 $ 59 |
Assumptions Used to Determine the Net Periodic Cost | The assumptions used to determine the net periodic cost are as follows: 2016 2015 2014 Discount Rate 4.45% 4.05% 5.10% Future Average Healthcare Benefit Increases 5.72% 5.32% 5.48% |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) are as follows: (In thousands) 2016 2015 Foreign Currency Translation Adjustments $ (8,597 ) $ (7,971 ) Retirement Liability Adjustment – Before Tax (10,611 ) (10,912 ) Tax Benefit 3,714 3,819 Retirement Liability Adjustment – After Tax (6,897 ) (7,093 ) Accumulated Other Comprehensive Loss $ (15,494 ) $ (15,064 ) |
Components of Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) are as follows: (In thousands) 2016 2015 2014 Foreign Currency Translation Adjustments $ (626 ) $ (4,617 ) $ (4,638 ) Reclassification to Interest Expense — — 103 Mark to Market Adjustments for Derivatives — — 4 Tax Expense — — (38 ) Mark to Market Adjustments for Derivatives — — 69 Retirement Liability Adjustment 301 2,311 (5,800 ) Tax Benefit (Expense) (105 ) (809 ) 2,031 Retirement Liability Adjustment 196 1,502 (3,769 ) Other Comprehensive (Loss) Income $ (430 ) $ (3,115 ) $ (8,338 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Computations | Earnings per share computations are based upon the following table: 2016 2015 2014 (In thousands, except per share data) Net Income $ 48,424 $ 66,974 $ 56,170 Basic Earnings Weighted Average Shares 29,163 29,245 28,716 Net Effect of Dilutive Stock Options 869 934 1,254 Diluted Earnings Weighted Average Shares 30,032 30,179 29,970 Basic Earnings Per Share $ 1.66 $ 2.29 $ 1.96 Diluted Earnings Per Share $ 1.61 $ 2.22 $ 1.87 |
Stock Option and Purchase Pla39
Stock Option and Purchase Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Weighted Average Fair Value of Options Granted | Stock compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. Vesting requirements vary for directors, officers and key employees. In general, options granted to outside directors vest six months from the date of grant and options granted to officers and key employees straight line vest over a five -year period from the date of grant. 2016 2015 2014 Weighted Average Fair Value of the Options Granted $ 16.85 $ 18.00 $ 19.35 |
Summary of Weighted-Average Assumptions | The weighted average fair value for these options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free Interest Rate 1.08% – 2.34% 1.36% – 2.10% 0.12% – 2.30% Dividend Yield —% —% —% Volatility Factor 0.40 – 0.45 0.40 – 0.51 0.42 – 0.52 Expected Life in Years 4.0 – 8.0 4.0 – 8.0 4.0 – 8.0 |
Compensation Expense Information Based on Fair Value of Stock Options | The following table provides compensation expense information based on the fair value of stock options for the years ended December 31, 2016 , 2015 and 2014 : (In thousands) 2016 2015 2014 Stock Compensation Expense $ 2,281 $ 2,274 $ 1,730 Tax Benefit (145 ) (177 ) (122 ) Stock Compensation Expense, Net of Tax $ 2,136 $ 2,097 $ 1,608 |
Summary of Company's Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information for the years ended December 31 is as follows: 2016 2015 2014 (Aggregate intrinsic value in Options Weighted Average Exercise Price Aggregate Intrinsic Value Options Weighted Aggregate Options Weighted Aggregate Outstanding at January 1 1,444,954 $ 12.61 $ 30,675 1,686,178 $ 9.43 $ 43,778 2,237,325 $ 6.58 $ 78,846 Options Granted 104,900 $ 34.29 $ (48 ) 105,742 $ 35.80 $ (42 ) 97,641 $ 36.63 $ 506 Options Exercised (188,768 ) $ 7.20 $ (5,029 ) (346,966 ) $ 4.25 $ (10,808 ) (644,058 ) $ 3.63 $ (24,599 ) Options Forfeited (22,813 ) $ 25.96 $ (180 ) — $ — $ — (4,730 ) $ 11.44 $ (144 ) Outstanding at December 31 1,338,273 $ 14.85 $ 25,418 1,444,954 $ 12.61 $ 32,928 1,686,178 $ 9.43 $ 54,609 Exercisable at December 31 1,091,561 $ 11.03 $ 24,898 1,167,040 $ 9.20 $ 30,576 1,371,614 $ 6.58 $ 48,331 |
Summary of Weighted Average Exercise Prices and Contractual Lives for Outstanding and Exercisable Stock Options | The following is a summary of weighted average exercise prices and contractual lives for outstanding and exercisable stock options as of December 31, 2016 : Outstanding Exercisable Exercise Price Range Shares Weighted Average Remaining Life in Years Weighted Average Exercise Price Shares Weighted Average Remaining Life in Years Weighted Average Exercise Price $ 3.04 - $ 4.45 471,841 2.5 $ 3.29 471,841 2.5 $ 3.29 $ 5.77 - $ 6.35 45,166 0.5 6.01 45,166 0.5 6.01 $ 8.83 - $15.68 459,138 4.6 11.73 431,370 4.5 11.81 $ 26.09 - $41.19 342,288 8.5 33.93 123,344 7.9 33.05 $ 52.77 - $52.77 19,840 8.2 52.77 19,840 8.2 52.77 1,338,273 4.8 14.85 1,091,561 3.9 11.03 |
Fair Value for Options Granted under Employee Stock Purchase Plan | The fair value for the options granted under the Employee Stock Purchase Plan was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions: 2016 2015 2014 Risk-free Interest Rate 0.63 % 0.31 % 0.10 % Dividend Yield — % — % — % Volatility Factor 0.45 0.40 0.42 Expected Life in Years 1.0 1.0 1.0 |
Selected Quarterly Financial 40
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarizes Selected Quarterly Financial Information | The following table summarizes selected quarterly financial information for 2016 and 2015 : Quarter Ended (Unaudited) Dec. 31, October 1, July 2, April 2, Dec. 31, October 3, July 4, April 4, (In thousands, except for per share data) 2016 2016 2016 2016 2015 2015 2015 2015 Sales $ 154,068 $ 155,099 $ 164,426 $ 159,530 $ 157,340 $ 200,145 $ 173,156 $ 161,638 Gross Profit (sales less cost of products sold) $ 36,486 $ 38,663 $ 44,835 $ 39,483 $ 38,901 $ 59,427 $ 49,452 $ 40,162 Income Before Income Taxes $ 14,296 $ 16,422 $ 21,555 $ 16,512 $ 14,822 $ 35,887 $ 27,044 $ 16,297 Net Income $ 9,885 $ 12,074 $ 14,980 $ 11,485 $ 13,907 $ 24,694 $ 17,690 $ 10,683 Basic Earnings Per Share $ 0.34 $ 0.42 $ 0.51 $ 0.39 $ 0.47 $ 0.84 $ 0.61 $ 0.37 Diluted Earnings Per Share $ 0.33 $ 0.41 $ 0.50 $ 0.38 $ 0.46 $ 0.82 $ 0.59 $ 0.35 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payment Commitments | The following table represents future minimum lease payment commitments as of December 31, 2016 : (In thousands) 2017 $ 2,380 2018 1,872 2019 1,496 2020 137 2021 — $ 5,885 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows: (In thousands) 2016 2015 2014 Sales: Aerospace $ 534,408 $ 549,738 $ 494,747 Less Inter-segment Sales (367 ) — — Total Aerospace Sales 534,041 549,738 494,747 Test Systems 99,082 142,596 166,769 Less Inter-segment Sales — (55 ) (477 ) Test Systems 99,082 142,541 166,292 Total Consolidated Sales $ 633,123 $ 692,279 $ 661,039 Operating Profit (Loss) and Margins: Aerospace $ 77,966 $ 85,103 $ 79,753 14.6 % 15.5 % 16.1 % Test Systems 8,507 25,529 12,401 8.6 % 17.9 % 7.4 % Total Operating Profit 86,473 110,632 92,154 13.7 % 16.0 % 13.9 % Deductions from Operating Profit: Interest Expense, Net of Interest Income (4,354 ) (4,751 ) (8,255 ) Corporate and Other Expenses, Net (13,334 ) (11,831 ) (4,792 ) Income before Income Taxes $ 68,785 $ 94,050 $ 79,107 Depreciation and Amortization: Aerospace $ 19,873 $ 19,377 $ 17,847 Test Systems 5,273 5,209 8,786 Corporate 644 723 621 Total Depreciation and Amortization $ 25,790 $ 25,309 $ 27,254 Identifiable Assets: Aerospace $ 500,892 $ 510,884 $ 468,481 Test Systems 76,575 64,934 69,247 Corporate 26,877 33,425 25,182 Total Assets $ 604,344 $ 609,243 $ 562,910 Capital Expenditures: Aerospace $ 9,511 $ 16,503 $ 35,650 Test Systems 3,345 2,103 3,472 Corporate 181 35 1,760 Total Capital Expenditures $ 13,037 $ 18,641 $ 40,882 |
Summarizes the Company's Sales and Long-Lived Assets by Geographic Region | The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31: 2016 2015 2014 (In thousands) United States $ 504,270 $ 508,724 $ 444,277 North America (excluding United States) 12,331 13,044 8,717 Asia 52,171 108,967 141,247 Europe 61,200 57,936 64,742 South America 577 1,112 1,192 Other 2,574 2,496 864 $ 633,123 $ 692,279 $ 661,039 The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31: 2016 2015 2014 (In thousands) United States $ 114,048 $ 115,117 $ 105,698 France 8,216 9,092 10,347 Canada 548 533 271 $ 122,812 $ 124,742 $ 116,316 |
Schedule of Activities with Major Customers | The Company has a significant concentration of business with two major customers; Panasonic Aviation Corporation (“Panasonic”) and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers: 2016 2015 2014 Percent of Consolidated Revenue Panasonic 21.6 % 21.0 % 17.7 % Boeing 15.2 % 13.0 % 14.1 % (In thousands) 2016 2015 Accounts Receivable at December 31, Panasonic $ 17,126 $ 14,433 Boeing $ 11,737 $ 9,598 |
Summary of Significant Accoun43
Summary of Significant Accounting Principles and Practices (Detail) | Oct. 11, 2016 | Jan. 14, 2015USD ($) | Dec. 31, 2016USD ($)segmentcontractreporting_unit | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 02, 2016reporting_unit |
Business Acquisition | ||||||
Number of reportable segments | segment | 2 | |||||
Revenue and Expense Recognition | ||||||
Significant contracts with right of return | contract | 0 | |||||
Revenue recognized from long term fixed price contracts | $ 20,700,000 | $ 17,200,000 | $ 2,700,000 | |||
Research and development, design and related engineering | $ 90,200,000 | 90,100,000 | 76,700,000 | |||
Class of Stock | ||||||
Period of options granted (in years) | 5 years | |||||
Cash and cash equivalents maturity period (in months) | 3 months | |||||
Property, Plant and Equipment | ||||||
Depreciation expense | $ 14,300,000 | 13,300,000 | 10,600,000 | |||
Capital leases payments due in 2017 | 2,600,000 | |||||
Capital leases payments due in 2018 | 2,600,000 | |||||
Capital leases payments due in 2019 | 2,000,000 | |||||
Capital leases payments due in 2020 | 2,100,000 | |||||
Capital leases payments due in 2021 | $ 2,200,000 | |||||
Goodwill and Intangible Assets | ||||||
Number of reporting units | reporting_unit | 10 | |||||
Number of reporting units have goodwill and subject to goodwill impairment test | reporting_unit | 8 | |||||
Goodwill impairment charge | $ 0 | 0 | 0 | |||
Intangible asset impairment charge | $ 0 | 0 | $ 0 | |||
Foreign Currency Translation | ||||||
Aggregate transaction gain included in operations | 1,000,000 | |||||
Year 1 | ||||||
Class of Stock | ||||||
Annual vesting percentage | 20.00% | |||||
Year 2 | ||||||
Class of Stock | ||||||
Annual vesting percentage | 20.00% | |||||
Year 3 | ||||||
Class of Stock | ||||||
Annual vesting percentage | 20.00% | |||||
Year 4 | ||||||
Class of Stock | ||||||
Annual vesting percentage | 20.00% | |||||
Year 5 | ||||||
Class of Stock | ||||||
Annual vesting percentage | 20.00% | |||||
Building | ||||||
Property, Plant and Equipment | ||||||
Building acquired under capital leases, net | $ 10,500,000 | 12,300,000 | ||||
Building acquired under capital leases, gross | 14,300,000 | 14,800,000 | ||||
Accumulated amortization | $ 3,800,000 | $ 2,500,000 | ||||
Building | Minimum | ||||||
Property, Plant and Equipment | ||||||
Property, plant and equipment, useful life (in years) | 25 years | |||||
Building | Maximum | ||||||
Property, Plant and Equipment | ||||||
Property, plant and equipment, useful life (in years) | 40 years | |||||
Machinery and Equipment | Minimum | ||||||
Property, Plant and Equipment | ||||||
Property, plant and equipment, useful life (in years) | 4 years | |||||
Machinery and Equipment | Maximum | ||||||
Property, Plant and Equipment | ||||||
Property, plant and equipment, useful life (in years) | 10 years | |||||
Convertible Class B Stock | ||||||
Class of Stock | ||||||
Stock distribution | 0.15 | |||||
Armstrong Areospace, Inc. | ||||||
Business Acquisition | ||||||
Effective date of acquisition | Jan. 14, 2015 | |||||
Percentage of acquired stock | 100.00% | |||||
Cash purchase price | $ 52,300,000 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade Accounts Receivable | $ 93,823 | $ 87,282 |
Unbilled Recoverable Costs and Accrued Profits | 16,194 | 8,307 |
Total Receivables | 110,017 | 95,589 |
Less Allowance for Doubtful Accounts | (602) | (312) |
Accounts Receivable | $ 109,415 | $ 95,277 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 28,792 | $ 27,770 |
Work in Progress | 20,790 | 23,977 |
Raw Material | 67,015 | 63,720 |
Total Inventory | $ 116,597 | $ 115,467 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Reserve for inventory valuation | $ 15.4 | $ 14.6 |
Percentage of reserve for inventory valuation | 11.70% | 11.20% |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets | ||
Weighted Average Life | 6 years | |
Gross Carrying Amount | $ 147,223 | $ 146,593 |
Accumulated Amortization | $ 49,120 | 38,317 |
Patents | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 4 years | |
Gross Carrying Amount | $ 2,146 | 2,146 |
Accumulated Amortization | $ 1,450 | 1,264 |
Noncompete Agreement | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 3 years | |
Gross Carrying Amount | $ 2,500 | 2,500 |
Accumulated Amortization | $ 979 | 479 |
Trade Names | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 7 years | |
Gross Carrying Amount | $ 10,189 | 10,217 |
Accumulated Amortization | $ 3,153 | 2,216 |
Completed and Unpatented Technology | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 6 years | |
Gross Carrying Amount | $ 24,118 | 24,056 |
Accumulated Amortization | $ 9,221 | 6,795 |
Backlog | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 0 years | |
Gross Carrying Amount | $ 11,224 | 11,202 |
Accumulated Amortization | $ 11,224 | 10,793 |
Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Weighted Average Life | 12 years | |
Gross Carrying Amount | $ 97,046 | 96,472 |
Accumulated Amortization | $ 23,093 | $ 16,770 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangibles | $ 10.8 | $ 11.3 | $ 15.8 |
Intangible Assets - Summary o49
Intangible Assets - Summary of Future Amortization Expense for Intangible Assets (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 10,445 |
2,018 | 10,133 |
2,019 | 9,754 |
2,020 | 9,198 |
2,021 | $ 9,152 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | ||||
Balance at Beginning of the Year | $ 115,369 | $ 100,153 | ||
Acquisition | 0 | 16,237 | ||
Foreign Currency Translations and Other | (162) | (1,021) | ||
Balance at End of the Year | 115,207 | 115,369 | ||
Goodwill - Gross | $ 131,749 | $ 131,911 | ||
Accumulated Impairment Losses | (16,542) | (16,542) | ||
Goodwill - Net | $ 115,369 | $ 100,153 | $ 115,207 | $ 115,369 |
Goodwill (Detail)
Goodwill (Detail) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 02, 2016reporting_unit | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Number of reporting units have goodwill and subject to goodwill impairment test | reporting_unit | 8 | |||
Goodwill impairment charge | $ | $ 0 | $ 0 | $ 0 |
Long-Term Debt and Notes Paya52
Long-Term Debt and Notes Payable - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument | ||
Capital lease obligations | $ 10,850 | $ 12,826 |
Long-term debt and capital lease obligations | 148,120 | 169,789 |
Less current maturities | 2,636 | 2,579 |
Long-term debt and capital lease obligations excluding current maturities | $ 145,484 | 167,210 |
Line of Credit | Revolving Credit Facility | LIBOR | ||
Debt Instrument | ||
Effective interest rate | 2.27% | |
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | ||
Debt Instrument | ||
Interest rate on revolving credit at LIBOR rate | 1.375% | |
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | ||
Debt Instrument | ||
Interest rate on revolving credit at LIBOR rate | 2.25% | |
Line of Credit | Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | ||
Debt Instrument | ||
Long-term debt | $ 136,000 | 155,000 |
Line of Credit | Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | LIBOR | Minimum | ||
Debt Instrument | ||
Interest rate on revolving credit at LIBOR rate | 1.375% | |
Line of Credit | Revolving Credit Facility | Fourth Amended and Restated Credit Agreement | LIBOR | Maximum | ||
Debt Instrument | ||
Interest rate on revolving credit at LIBOR rate | 2.25% | |
Other Bank Debt | ||
Debt Instrument | ||
Long-term debt | $ 1,270 | $ 1,963 |
Long-Term Debt and Notes Paya53
Long-Term Debt and Notes Payable - Principal Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | ||
2,017 | $ 2,636 | $ 2,579 |
2,018 | 2,610 | |
2,019 | 1,835 | |
2,020 | 2,096 | |
2,021 | 138,049 | |
Thereafter | 894 | |
Long-term debt and capital lease obligations | $ 148,120 | $ 169,789 |
Long-Term Debt and Notes Paya54
Long-Term Debt and Notes Payable (Detail) | Feb. 28, 2014USD ($) | Jul. 18, 2013USD ($) | Dec. 31, 2016USD ($)fiscal_quarter | Dec. 31, 2015USD ($) | Sep. 26, 2014USD ($) |
Debt Instrument | |||||
Leverage ratio increase, duration of permitted following acquisition (in fiscal quarters) | fiscal_quarter | 2 | ||||
Actual interest coverage ratio at end of period | 29.5 | ||||
Actual leverage ratio at end of period | 1.38 | ||||
Amended And Restated Credit Agreement | |||||
Debt Instrument | |||||
Permitted leverage ratio | 3.5 | ||||
Minimum interest coverage ratio | 3 | ||||
Amended And Restated Credit Agreement | Maximum | |||||
Debt Instrument | |||||
Permitted leverage ratio | 4 | ||||
Line of Credit | Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 1.375% | ||||
Line of Credit | Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 2.25% | ||||
Line of Credit | Original Facility | Revolving Credit Facility | |||||
Debt Instrument | |||||
Revolving credit line | $ 6,000,000 | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Minimum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.25% | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Maximum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.50% | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument | |||||
Revolving credit line | $ 58,000,000 | $ 75,000,000 | |||
Debt instrument term (in years) | 5 years | ||||
Line of credit facility maximum borrowings | $ 125,000,000 | ||||
Line of credit extension period | 5 years | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | Minimum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.25% | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | Maximum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.50% | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 2.25% | ||||
Line of Credit | Third Amended and Restated Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 3.50% | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument | |||||
Term loan | $ 136,000,000 | $ 155,000,000 | |||
Revolving line of credit | 350,000,000 | ||||
Optional increase in maximum borrowing capacity | 150,000,000 | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Revolving Credit Facility | Minimum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.175% | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Revolving Credit Facility | Maximum | |||||
Debt Instrument | |||||
Commitment fee (percentage) | 0.35% | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 1.375% | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Instrument | |||||
Interest rate on revolving credit at LIBOR rate | 2.25% | ||||
Line of Credit | Fourth Amended and Restated Credit Agreement | Letter of Credit | |||||
Debt Instrument | |||||
Credit facility allocation | 20,000,000 | ||||
Outstanding letters of credit | $ 1,100,000 | ||||
Term Loan | Original Facility | |||||
Debt Instrument | |||||
Term loans outstanding | $ 180,500,000 | ||||
Term Loan | Third Amended and Restated Credit Agreement | |||||
Debt Instrument | |||||
Debt instrument term (in years) | 5 years | ||||
Term loan | $ 190,000,000 |
Warranty (Detail)
Warranty (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Product Warranty Liability | |
Product warranty period | 12 months |
Maximum | |
Product Warranty Liability | |
Product warranty period | 60 months |
Warranty - Summary of Activity
Warranty - Summary of Activity in Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual | |||
Balance at Beginning of the Year | $ 5,741 | $ 4,884 | $ 2,796 |
Warranty Liabilities Acquired | 0 | 500 | 564 |
Warranties Issued | 2,281 | 4,039 | 3,431 |
Reassessed Warranty Exposure | (966) | (485) | (34) |
Warranties Settled | (2,381) | (3,197) | (1,873) |
Balance at End of the Year | $ 4,675 | $ 5,741 | $ 4,884 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
U.S. Federal | $ 21,667 | $ 24,809 | $ 22,705 |
State | 2,899 | 2,382 | 3,797 |
Foreign | 551 | 137 | 1,112 |
Deferred | |||
U.S. Federal | (2,871) | 703 | (3,035) |
State | (1,140) | (1,019) | (655) |
Foreign | (745) | 64 | (987) |
Provision (benefit) for income taxes, net | $ 20,361 | $ 27,076 | $ 22,937 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates Differ from Statutory Federal Income Tax (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal Income Tax Rate | 35.00% | 35.00% | 35.00% |
Non-deductible Stock Compensation Expense | 1.10% | 0.60% | 0.60% |
Domestic Production Activity Deduction | (3.30%) | (2.90%) | (2.60%) |
Other | 0.20% | 0.20% | 0.10% |
Foreign Tax Benefits | (1.10%) | (1.10%) | (1.70%) |
State Income Tax, Net of Federal Income Tax Effect | 1.80% | 0.90% | 2.60% |
Research and Development Tax Credits | (3.70%) | (2.70%) | (4.30%) |
Other | (0.40%) | (1.20%) | (0.70%) |
Effective Tax Rate | 29.60% | 28.80% | 29.00% |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax | |||
Undistributed earnings of foreign subsidiaries | $ 13,100,000 | ||
Tax credit carryforwards | 1,000,000 | ||
State tax credit carryforwards subject to expire | $ 800,000 | ||
State and foreign tax credit carryforwards expiration beginning year | 2,017 | ||
State and foreign tax credit carryforwards expiration ending year | 2,030 | ||
State tax credit carryforwards not subject to expire | $ 200,000 | ||
Operating loss carryforwards expiration beginning year | 2,021 | ||
Operating loss carryforwards expiration ending year | 2,035 | ||
Tax benefits related to stock option exercises | $ 800,000 | $ 3,000,000 | $ 5,300,000 |
Penalties or interest liabilities accrued | 0 | 0 | |
Pretax income | 1,600,000 | $ 3,600,000 | $ 4,300,000 |
State | |||
Income Tax | |||
Operating loss carryforwards expected to be utilized | 8,200,000 | ||
Net operating loss carryforwards | $ 52,900,000 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets: | ||
Asset Reserves | $ 9,208 | $ 8,709 |
Deferred Compensation | 8,378 | 7,986 |
Capital Lease Basis Difference | 1,690 | 1,753 |
State Investment and Research and Development Tax Credit Carryforwards, Net of Federal Tax | 665 | 533 |
Customer Advanced Payments and Deferred Revenue | 3,750 | 1,722 |
State Net Operating Loss Carryforwards and Other | 4,282 | 2,401 |
Total Gross Deferred Tax Assets | 27,973 | 23,104 |
Valuation Allowance for State Deferred Tax Assets and Tax Credit Carryforwards, Net of Federal Tax | (3,816) | (2,640) |
Deferred Tax Assets | 24,157 | 20,464 |
Deferred Tax Liabilities: | ||
Depreciation | 12,972 | 12,561 |
Goodwill and Intangible Assets | 18,558 | 20,113 |
Other | 1,280 | 1,199 |
Deferred Tax Liabilities | 32,810 | 33,873 |
Net Deferred Tax Liabilities | $ (8,653) | $ (13,409) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Other Assets — Long-term | $ 2,644 | $ 1,558 |
Deferred Tax Liabilities — Long-term | (11,297) | |
Deferred Tax Liabilities — Long-term | (14,967) | |
Net Deferred Tax Liabilities | $ (8,653) | $ (13,409) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at Beginning of the Year | $ 0 | $ 181 | $ 1,940 |
Decreases as a Result of Tax Positions Taken in Prior Years | 0 | (181) | (1,901) |
Increases as a Result of Tax Positions Taken in the Current Year | 0 | 0 | 142 |
Balance at End of the Year | $ 0 | $ 0 | $ 181 |
Profit Sharing_401(k) Plan (Det
Profit Sharing/401(k) Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Astronics Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Defined contribution plan charges recognized | $ 6.7 | $ 6.3 | $ 5.1 |
Retirement Plans and Related 64
Retirement Plans and Related Post Retirement Benefits (Detail) | Jan. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016USD ($)retirement_plan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Defined Benefit Plan Disclosure | ||||||
Number of non-qualified supplemental retirement defined benefit plans | retirement_plan | 2 | |||||
Accumulated benefit obligation of the plans | $ 18,600,000 | $ 16,700,000 | ||||
Fair value of plan assets at period end | 0 | 0 | ||||
SERP | ||||||
Defined Benefit Plan Disclosure | ||||||
Unrecognized prior service costs | 2,500,000 | |||||
Unrecognized prior service costs, net | 3,900,000 | |||||
Unrecognized prior service costs, tax | 1,400,000 | |||||
Unrecognized actuarial losses | 4,000,000 | |||||
Unrecognized actuarial losses, net | 6,100,000 | |||||
Unrecognized actuarial losses, tax | 2,100,000 | |||||
Net periodic pension cost | 300,000 | |||||
Net periodic pension cost net of tax | 400,000 | |||||
Net periodic pension cost, tax | 100,000 | |||||
Actuarial loss | 300,000 | |||||
Actuarial loss, net of tax | 400,000 | |||||
Actuarial loss, tax | 100,000 | |||||
Current accrued pension liability | 300,000 | |||||
Long-term accrued pension liability | 21,200,000 | |||||
Expected future payments in 2017 (less than for SERP Medical) | 300,000 | |||||
Expected future payments in 2018 (less than for SERP Medical) | 300,000 | |||||
Expected future payments in 2019 (less than for SERP Medical) | 300,000 | |||||
Expected future payments in 2020 (less than for SERP Medical) | 300,000 | |||||
Expected future payments in 2021 (less than for SERP Medical) | 300,000 | |||||
Benefits to be paid in the aggregate for the following five years | 2,300,000 | |||||
SERP Medical | ||||||
Defined Benefit Plan Disclosure | ||||||
Unrecognized prior service costs | 100,000 | |||||
Unrecognized actuarial losses | 300,000 | |||||
Unrecognized actuarial losses, tax | 200,000 | |||||
Current accrued pension liability | 100,000 | |||||
Long-term accrued pension liability | 900,000 | |||||
Expected future payments in 2017 (less than for SERP Medical) | 100,000 | |||||
Expected future payments in 2018 (less than for SERP Medical) | 100,000 | |||||
Expected future payments in 2019 (less than for SERP Medical) | 100,000 | |||||
Expected future payments in 2020 (less than for SERP Medical) | 100,000 | |||||
Expected future payments in 2021 (less than for SERP Medical) | 100,000 | |||||
Benefits to be paid in the aggregate for the following five years | 300,000 | |||||
Change in retirement benefit obligation | 100,000 | |||||
Percentage of fund | 91.70% | |||||
Contributions of employer | $ 1,100,000 | $ 1,000,000 | $ 900,000 | |||
Total employer contribution | 1.00% | |||||
SERP Medical | Forecast | ||||||
Defined Benefit Plan Disclosure | ||||||
Annual increase in the cost of health care benefits | 6.20% | 5.30% | ||||
SERP Medical | Minimum | ||||||
Defined Benefit Plan Disclosure | ||||||
Annual increase in the cost of health care benefits range | 4.60% | |||||
SERP Medical | Maximum | ||||||
Defined Benefit Plan Disclosure | ||||||
Annual increase in the cost of health care benefits range | 6.30% |
Retirement Plans and Related 65
Retirement Plans and Related Post Retirement Benefits - Reconciliation of Beginning and Ending Balances of Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Balance at beginning of the year | $ 20,418 | $ 20,990 | |
Service Cost | 173 | 194 | $ 247 |
Interest Cost | 901 | 843 | 721 |
Actuarial (Gain) Loss | 389 | (1,261) | |
Benefits Paid | (348) | (348) | |
Balance at end of the year | 21,533 | 20,418 | 20,990 |
SERP Medical | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Balance at beginning of the year | 925 | 990 | |
Service Cost | 5 | 6 | 3 |
Interest Cost | 40 | 39 | 31 |
Actuarial (Gain) Loss | 112 | (54) | |
Benefits Paid | (61) | (56) | |
Balance at end of the year | $ 1,021 | $ 925 | $ 990 |
Retirement Plans and Related 66
Retirement Plans and Related Post Retirement Benefits - Assumptions Used to Calculate the Post Retirement Benefit Obligation (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 4.20% | 4.45% |
SERP Medical | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 4.20% | 4.45% |
Minimum | SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Future Average Compensation Increases | 3.00% | 3.00% |
Maximum | SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Future Average Compensation Increases | 5.00% | 5.00% |
Retirement Plans and Related 67
Retirement Plans and Related Post Retirement Benefits - Summarizes the Components of the Net Periodic Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SERP | |||
Net Periodic Cost | |||
Service Cost — Benefits Earned During Period | $ 173 | $ 194 | $ 247 |
Interest Cost | 901 | 843 | 721 |
Amortization of Prior Service Cost | 413 | 495 | 495 |
Amortization of Losses | 343 | 449 | 108 |
Net Periodic Cost | 1,830 | 1,981 | 1,571 |
SERP Medical | |||
Net Periodic Cost | |||
Service Cost — Benefits Earned During Period | 5 | 6 | 3 |
Interest Cost | 40 | 39 | 31 |
Amortization of Prior Service Cost | 24 | 26 | 25 |
Amortization of Losses | 22 | 26 | 0 |
Net Periodic Cost | $ 91 | $ 97 | $ 59 |
Retirement Plans and Related 68
Retirement Plans and Related Post Retirement Benefits - Assumptions Used to Determine the Net Periodic Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SERP | |||
Defined Benefit Plan Disclosure | |||
Discount Rate | 4.45% | 4.05% | 5.10% |
Future Average Compensation Increases | 5.00% | 5.00% | |
SERP | Minimum | |||
Defined Benefit Plan Disclosure | |||
Future Average Compensation Increases | 3.00% | ||
SERP | Maximum | |||
Defined Benefit Plan Disclosure | |||
Future Average Compensation Increases | 5.00% | ||
SERP Medical | |||
Defined Benefit Plan Disclosure | |||
Discount Rate | 4.45% | 4.05% | 5.10% |
Future Average Compensation Increases | 5.72% | 5.32% | 5.48% |
Shareholders' Equity (Detail)
Shareholders' Equity (Detail) shares in Thousands | Feb. 24, 2016USD ($)shares | Dec. 31, 2016USD ($)voteshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Stockholders Equity | ||||
Amount authorized for stock repurchase program | $ 50,000,000 | |||
Common stock reserved (in shares) | shares | 11,400 | |||
Effective income tax rate | 35.00% | |||
Income tax effect recorded for currency translation adjustments | $ 0 | |||
Convertible Class B Stock | ||||
Stockholders Equity | ||||
Class B stock voting rights per share | vote | 10 | |||
Conversion ratio for Class B stock to common stock | 1 | |||
Treasury Stock | ||||
Stockholders Equity | ||||
Number of shares repurchased (in shares) | shares | 523 | 523 | 0 | 0 |
Shares repurchased | $ 17,600,000 | $ 17,618,000 | $ 0 | $ 0 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Shareholders’ Equity | $ 337,449 | $ 300,225 | $ 228,177 | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Shareholders’ Equity | (8,597) | (7,971) | ||
Retirement Liability Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Retirement Liability Adjustment – Before Tax | (10,611) | (10,912) | ||
Retirement Liability Adjustment – Before Tax | 3,714 | 3,819 | ||
Total Shareholders’ Equity | (6,897) | (7,093) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total Shareholders’ Equity | $ (15,494) | $ (15,064) | $ (11,949) | $ (3,611) |
Shareholders' Equity - Compon71
Shareholders' Equity - Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive (Loss) Income | $ (430) | $ (3,115) | $ (8,338) |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive (Loss) Income | (626) | (4,617) | (4,638) |
Mark to Market Adjustments for Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive (Loss) Income | 0 | 0 | 69 |
Reclassification to Interest Expense | 0 | 0 | 103 |
Other Comprehensive (Loss) Income, Before Tax | 0 | 0 | 4 |
Tax Benefit (Expense) | 0 | 0 | (38) |
Retirement Liability Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive (Loss) Income | 196 | 1,502 | (3,769) |
Other Comprehensive (Loss) Income, Before Tax | 301 | 2,311 | (5,800) |
Tax Benefit (Expense) | $ (105) | $ (809) | $ 2,031 |
Earnings Per Share - Earnings P
Earnings Per Share - Earnings Per Share Computations (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | Oct. 11, 2016 | Dec. 31, 2016USD ($)$ / shares | Oct. 01, 2016USD ($)$ / shares | Jul. 02, 2016USD ($)$ / shares | Apr. 02, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Oct. 03, 2015USD ($)$ / shares | Jul. 04, 2015USD ($)$ / shares | Apr. 04, 2015USD ($)$ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares |
Earnings Per Share [Abstract] | ||||||||||||
Net Income | $ | $ 9,885 | $ 12,074 | $ 14,980 | $ 11,485 | $ 13,907 | $ 24,694 | $ 17,690 | $ 10,683 | $ 48,424 | $ 66,974 | $ 56,170 | |
Basic Earnings Weighted Average Shares (in shares) | 29,163 | 29,245 | 28,716 | |||||||||
Net Effect of Dilutive Stock Options (in shares) | 869 | 934 | 1,254 | |||||||||
Diluted Earnings Weighted Average Shares (in shares) | 30,032 | 30,179 | 29,970 | |||||||||
Basic Earnings Per Share (in usd per share) | $ / shares | $ 0.34 | $ 0.42 | $ 0.51 | $ 0.39 | $ 0.47 | $ 0.84 | $ 0.61 | $ 0.37 | $ 1.66 | $ 2.29 | $ 1.96 | |
Diluted Earnings Per Share (in usd per share) | $ / shares | $ 0.33 | $ 0.41 | $ 0.50 | $ 0.38 | $ 0.46 | $ 0.82 | $ 0.59 | $ 0.35 | $ 1.61 | $ 2.22 | $ 1.87 | |
Class of Stock | ||||||||||||
Number of shares out-of-the-money (in shares) | 200 | 100 | ||||||||||
Convertible Class B Stock | ||||||||||||
Class of Stock | ||||||||||||
Stock distribution | 0.15 |
Stock Option and Purchase Pla73
Stock Option and Purchase Plans (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period of options granted (as noted) | 5 years | |||
Share price (in usd per share) | $ 33.84 | $ 35.40 | $ 41.83 | |
The weighted average fair value of options vested (in usd per share) | $ 12.05 | $ 10.85 | $ 6.13 | |
Total fair value of options that vested during the year | $ 1,400,000 | $ 1,500,000 | $ 1,200,000 | |
Total compensation costs related to non-vested awards | $ 5,200,000 | |||
Weighted average period (in years) | 2 years 5 months | |||
Options outstanding (in shares) | 1,338,273 | 1,444,954 | 1,686,178 | 2,237,325 |
Weighted average fair value of options granted (in usd per share) | $ 16.85 | $ 18 | $ 19.35 | |
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share price (in usd per share) | $ 33.09 | |||
Cash compensation limit | $ 21,250 | |||
Common stock price to market value (percentage) | 85.00% | |||
Number of shares employees had subscribed to purchase (in shares) | 108,995 | |||
Weighted average fair value of options granted (in usd per share) | $ 9.88 | $ 6.93 | $ 8.40 | |
Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock option exercisable period (not exceeding, in years) | 10 years | |||
Period of options granted (as noted) | 5 years | |||
Options outstanding (in shares) | 1,117,799 | |||
Options available for future grant (in shares) | 616,752 | |||
Directors Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock option exercisable period (not exceeding, in years) | 10 years | |||
Period of options granted (as noted) | 6 months | |||
Options outstanding (in shares) | 220,474 | |||
Options available for future grant (in shares) | 172,288 | |||
Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period of options granted (as noted) | 6 months | |||
Key Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Period of options granted (as noted) | 5 years | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock option exercisable period (not exceeding, in years) | 10 years |
Stock Option and Purchase Pla74
Stock Option and Purchase Plans - Summary of Weighted Average Fair Value of Options Granted (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted Average Fair Value of the Options Granted (in usd per share) | $ 16.85 | $ 18 | $ 19.35 |
Stock Option and Purchase Pla75
Stock Option and Purchase Plans - Summary of Weighted-Average Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Dividend Yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free Interest Rate | 1.08% | 1.36% | 0.12% |
Volatility Factor | 0.40% | 0.40% | 0.42% |
Expected Life in Years | 4 years | 4 years | 4 years |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free Interest Rate | 2.34% | 2.10% | 2.30% |
Volatility Factor | 0.45% | 0.51% | 0.52% |
Expected Life in Years | 8 years | 8 years | 8 years |
Stock Option and Purchase Pla76
Stock Option and Purchase Plans - Compensation Expense Information Based on Fair Value of Stock Options (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock Compensation Expense | $ 2,281 | $ 2,274 | $ 1,730 |
Tax Benefit | (145) | (177) | (122) |
Stock Compensation Expense, Net of Tax | $ 2,136 | $ 2,097 | $ 1,608 |
Stock Option and Purchase Pla77
Stock Option and Purchase Plans - Summary of Company's Stock Option Activity and Related Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Balance at beginning of the period (in shares) | 1,444,954 | 1,686,178 | 2,237,325 |
Options granted (in shares) | 104,900 | 105,742 | 97,641 |
Options exercised (in shares) | (188,768) | (346,966) | (644,058) |
Options forfeited (in shares) | (22,813) | 0 | (4,730) |
Balance at end of the period (in shares) | 1,338,273 | 1,444,954 | 1,686,178 |
Exercisable at end of the period (in shares) | 1,091,561 | 1,167,040 | 1,371,614 |
Weighted Average Exercise Price | |||
Balance at beginning of the period (in usd per share) | $ 12.61 | $ 9.43 | $ 6.58 |
Options granted (in usd per share) | 34.29 | 35.80 | 36.63 |
Options exercised (in usd per share) | 7.20 | 4.25 | 3.63 |
Options forfeited (in usd per share) | 25.96 | 0 | 11.44 |
Balance at end of the period (in usd per share) | 14.85 | 12.61 | 9.43 |
Exercisable at end of the period (in usd per share) | $ 11.03 | $ 9.20 | $ 6.58 |
Aggregate Intrinsic Value | |||
Balance at beginning of the period (in usd) | $ 30,675 | $ 43,778 | $ 78,846 |
Options granted (in usd) | (48) | (42) | 506 |
Options exercised (in usd) | (5,029) | (10,808) | (24,599) |
Options forfeited (in usd) | (180) | 0 | (144) |
Balance at end of the period (in usd) | 25,418 | 32,928 | 54,609 |
Exercisable at end of the period (in usd) | $ 24,898 | $ 30,576 | $ 48,331 |
Stock Option and Purchase Pla78
Stock Option and Purchase Plans - Summary of Weighted Average Exercise Prices and Contractual Lives for Outstanding and Exercisable Stock Options (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding | ||||
Shares (in shares) | 1,338,273 | 1,444,954 | 1,686,178 | 2,237,325 |
Weighted average remaining life (in years) | 4 years 9 months 18 days | |||
Weighted average exercise price (in usd per share) | $ 14.85 | $ 12.61 | $ 9.43 | $ 6.58 |
Exercisable | ||||
Shares (in shares) | 1,091,561 | 1,167,040 | 1,371,614 | |
Weighted average remaining life (in years) | 3 years 10 months 24 days | |||
Weighted average exercise price (in usd per share) | $ 11.03 | $ 9.20 | $ 6.58 | |
$ 3.04 - $ 4.45 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price, lower range (in usd per share) | 3.04 | |||
Exercise price, upper range (in usd per share) | $ 4.45 | |||
Outstanding | ||||
Shares (in shares) | 471,841 | |||
Weighted average remaining life (in years) | 2 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 3.29 | |||
Exercisable | ||||
Shares (in shares) | 471,841 | |||
Weighted average remaining life (in years) | 2 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 3.29 | |||
$ 5.77 - $ 6.35 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price, lower range (in usd per share) | 5.77 | |||
Exercise price, upper range (in usd per share) | $ 6.35 | |||
Outstanding | ||||
Shares (in shares) | 45,166 | |||
Weighted average remaining life (in years) | 6 months | |||
Weighted average exercise price (in usd per share) | $ 6.01 | |||
Exercisable | ||||
Shares (in shares) | 45,166 | |||
Weighted average remaining life (in years) | 6 months | |||
Weighted average exercise price (in usd per share) | $ 6.01 | |||
$ 8.83 - $15.68 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price, lower range (in usd per share) | 8.83 | |||
Exercise price, upper range (in usd per share) | $ 15.68 | |||
Outstanding | ||||
Shares (in shares) | 459,138 | |||
Weighted average remaining life (in years) | 4 years 7 months 6 days | |||
Weighted average exercise price (in usd per share) | $ 11.73 | |||
Exercisable | ||||
Shares (in shares) | 431,370 | |||
Weighted average remaining life (in years) | 4 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 11.81 | |||
$ 26.09 - $41.19 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price, lower range (in usd per share) | 26.09 | |||
Exercise price, upper range (in usd per share) | $ 41.19 | |||
Outstanding | ||||
Shares (in shares) | 342,288 | |||
Weighted average remaining life (in years) | 8 years 6 months | |||
Weighted average exercise price (in usd per share) | $ 33.93 | |||
Exercisable | ||||
Shares (in shares) | 123,344 | |||
Weighted average remaining life (in years) | 7 years 10 months 24 days | |||
Weighted average exercise price (in usd per share) | $ 33.05 | |||
$ 52.77 - $52.77 | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Exercise price, lower range (in usd per share) | 52.77 | |||
Exercise price, upper range (in usd per share) | $ 52.77 | |||
Outstanding | ||||
Shares (in shares) | 19,840 | |||
Weighted average remaining life (in years) | 8 years 2 months 12 days | |||
Weighted average exercise price (in usd per share) | $ 52.77 | |||
Exercisable | ||||
Shares (in shares) | 19,840 | |||
Weighted average remaining life (in years) | 8 years 2 months 12 days | |||
Weighted average exercise price (in usd per share) | $ 52.77 |
Stock Option and Purchase Pla79
Stock Option and Purchase Plans - Fair Value for Options Granted under Employee Stock Purchase Plan (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Dividend Yield | 0.00% | 0.00% | 0.00% |
Employee Stock | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Risk-free Interest Rate | 0.63% | 0.31% | 0.10% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Volatility Factor | 0.45% | 0.40% | 0.42% |
Expected Life in Years | 1 year | 1 year | 1 year |
Fair Value (Detail)
Fair Value (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Goodwill impairment charge | $ 0 | $ 0 | $ 0 |
Intangible asset impairment charge | 0 | 0 | 0 |
Recurring Basis | Level 3 | Other Liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Financial liabilities carried at fair value | 0 | 0 | |
Recurring Basis | Level 3 | SG&A | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value adjustments | 1,800,000 | 5,000,000 | |
Nonrecurring Basis | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Goodwill impairment charge | 0 | 0 | 0 |
Intangible asset impairment charge | $ 0 | $ 0 | $ 0 |
Selected Quarterly Financial 81
Selected Quarterly Financial Information - Summarizes Selected Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 154,068 | $ 155,099 | $ 164,426 | $ 159,530 | $ 157,340 | $ 200,145 | $ 173,156 | $ 161,638 | $ 633,123 | $ 692,279 | $ 661,039 |
Gross Profit (sales less cost of products sold) | 36,486 | 38,663 | 44,835 | 39,483 | 38,901 | 59,427 | 49,452 | 40,162 | 159,467 | 187,942 | 167,042 |
Income Before Income Taxes | 14,296 | 16,422 | 21,555 | 16,512 | 14,822 | 35,887 | 27,044 | 16,297 | |||
Net income | $ 9,885 | $ 12,074 | $ 14,980 | $ 11,485 | $ 13,907 | $ 24,694 | $ 17,690 | $ 10,683 | $ 48,424 | $ 66,974 | $ 56,170 |
Basic Earnings Per Share (in usd per share) | $ 0.34 | $ 0.42 | $ 0.51 | $ 0.39 | $ 0.47 | $ 0.84 | $ 0.61 | $ 0.37 | $ 1.66 | $ 2.29 | $ 1.96 |
Diluted Earnings Per Share (in usd per share) | $ 0.33 | $ 0.41 | $ 0.50 | $ 0.38 | $ 0.46 | $ 0.82 | $ 0.59 | $ 0.35 | $ 1.61 | $ 2.22 | $ 1.87 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payment Commitments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $ 3,900 | $ 2,900 | $ 3,000 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
2,017 | 2,380 | ||
2,018 | 1,872 | ||
2,019 | 1,496 | ||
2,020 | 137 | ||
2,021 | 0 | ||
Total | 5,885 | ||
Purchase commitments outstanding | $ 98,500 |
Commitments and Contingencies83
Commitments and Contingencies (Detail) - Lufthansa - Patent Infringement | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Germany | |
Loss Contingencies | |
Appeal process duration (in years, up to) | 2 years |
Loss contingency accrual | $ 0 |
United States | |
Loss Contingencies | |
Loss contingency accrual | 0 |
Astronics Advanced Electronic Systems Corp. | Germany | Minimum | |
Loss Contingencies | |
Estimate of the value of the dispute | 1,000,000 |
Astronics Advanced Electronic Systems Corp. | Germany | Maximum | |
Loss Contingencies | |
Estimate of the value of the dispute | $ 3,000,000 |
Segments - Summary of Segment R
Segments - Summary of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||||||||||
Sales | $ 154,068 | $ 155,099 | $ 164,426 | $ 159,530 | $ 157,340 | $ 200,145 | $ 173,156 | $ 161,638 | $ 633,123 | $ 692,279 | $ 661,039 |
Total Operating Profit | 73,139 | 98,801 | 87,362 | ||||||||
Deductions from Operating Profit: | |||||||||||
Interest Expense, Net of Interest Income | (4,354) | (4,751) | (8,255) | ||||||||
Income Before Income Taxes | 68,785 | 94,050 | 79,107 | ||||||||
Total Depreciation and Amortization | 25,790 | 25,309 | 27,254 | ||||||||
Total Assets | 604,344 | 609,243 | 604,344 | 609,243 | 562,910 | ||||||
Total Capital Expenditures | 13,037 | 18,641 | 40,882 | ||||||||
Aerospace Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 534,041 | 549,738 | 494,747 | ||||||||
Test Systems Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 99,082 | 142,541 | 166,292 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information | |||||||||||
Total Operating Profit | $ 86,473 | $ 110,632 | $ 92,154 | ||||||||
Operating Margins | 13.70% | 16.00% | 13.90% | ||||||||
Operating Segments | Aerospace Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | $ 534,408 | $ 549,738 | $ 494,747 | ||||||||
Total Operating Profit | $ 77,966 | $ 85,103 | $ 79,753 | ||||||||
Operating Margins | 14.60% | 15.50% | 16.10% | ||||||||
Deductions from Operating Profit: | |||||||||||
Total Depreciation and Amortization | $ 19,873 | $ 19,377 | $ 17,847 | ||||||||
Total Assets | 500,892 | 510,884 | 500,892 | 510,884 | 468,481 | ||||||
Total Capital Expenditures | 9,511 | 16,503 | 35,650 | ||||||||
Operating Segments | Test Systems Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 99,082 | 142,596 | 166,769 | ||||||||
Total Operating Profit | $ 8,507 | $ 25,529 | $ 12,401 | ||||||||
Operating Margins | 8.60% | 17.90% | 7.40% | ||||||||
Deductions from Operating Profit: | |||||||||||
Total Depreciation and Amortization | $ 5,273 | $ 5,209 | $ 8,786 | ||||||||
Total Assets | 76,575 | 64,934 | 76,575 | 64,934 | 69,247 | ||||||
Total Capital Expenditures | 3,345 | 2,103 | 3,472 | ||||||||
Intersegment Eliminations | Aerospace Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | (367) | 0 | 0 | ||||||||
Intersegment Eliminations | Test Systems Segment | |||||||||||
Segment Reporting Information | |||||||||||
Sales | 0 | (55) | (477) | ||||||||
Corporate | |||||||||||
Deductions from Operating Profit: | |||||||||||
Corporate and Other Expenses, Net | (13,334) | (11,831) | (4,792) | ||||||||
Total Depreciation and Amortization | 644 | 723 | 621 | ||||||||
Total Assets | $ 26,877 | $ 33,425 | 26,877 | 33,425 | 25,182 | ||||||
Total Capital Expenditures | $ 181 | $ 35 | $ 1,760 |
Segments (Detail)
Segments (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information | |||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Goodwill | 115,207,000 | 115,369,000 | 100,153,000 |
Operating Segments | Aerospace Segment | |||
Segment Reporting Information | |||
Goodwill impairment loss | 0 | 0 | 0 |
Purchased intangible impairment loss | 0 | 0 | 0 |
Goodwill | 115,200,000 | 115,400,000 | |
Operating Segments | Test Systems Segment | |||
Segment Reporting Information | |||
Goodwill impairment loss | 0 | 0 | 0 |
Purchased intangible impairment loss | 0 | 0 | $ 0 |
Goodwill | $ 0 | $ 0 |
Segments - Summarizes the Compa
Segments - Summarizes the Company's Sales and Long-Lived Assets by Geographic Regions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | $ 154,068 | $ 155,099 | $ 164,426 | $ 159,530 | $ 157,340 | $ 200,145 | $ 173,156 | $ 161,638 | $ 633,123 | $ 692,279 | $ 661,039 |
Property, plant and equipment, net | 122,812 | 124,742 | 122,812 | 124,742 | 116,316 | ||||||
Net income | 9,885 | $ 12,074 | $ 14,980 | $ 11,485 | 13,907 | $ 24,694 | $ 17,690 | $ 10,683 | 48,424 | 66,974 | 56,170 |
Exchange gain | 1,000 | ||||||||||
Cumulative translation adjustments | (8,600) | (8,000) | (8,600) | (8,000) | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 504,270 | 508,724 | 444,277 | ||||||||
Property, plant and equipment, net | 114,048 | 115,117 | 114,048 | 115,117 | 105,698 | ||||||
North America (excluding United States) | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 12,331 | 13,044 | 8,717 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Property, plant and equipment, net | 548 | 533 | 548 | 533 | 271 | ||||||
Non-US | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 50,100 | 50,800 | 64,500 | ||||||||
Net income | 1,800 | 3,400 | 4,100 | ||||||||
Net assets | 36,800 | 36,100 | 36,800 | 36,100 | |||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 52,171 | 108,967 | 141,247 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 61,200 | 57,936 | 64,742 | ||||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Property, plant and equipment, net | $ 8,216 | $ 9,092 | 8,216 | 9,092 | 10,347 | ||||||
South America | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | 577 | 1,112 | 1,192 | ||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Sales | $ 2,574 | $ 2,496 | $ 864 |
Segments - Schedule of Activiti
Segments - Schedule of Activities with Major Customers (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)customer | Dec. 31, 2015USD ($) | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Number of major customers | customer | 2 | ||
Panasonic | Customer Concentration Risk | Consolidated Revenue | |||
Revenue, Major Customer | |||
Percent of consolidated revenue | 21.60% | 21.00% | 17.70% |
Panasonic | Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer | |||
Accounts receivable | $ 17,126 | $ 14,433 | |
Boeing | Customer Concentration Risk | Consolidated Revenue | |||
Revenue, Major Customer | |||
Percent of consolidated revenue | 15.20% | 13.00% | 14.10% |
Boeing | Customer Concentration Risk | Accounts Receivable | |||
Revenue, Major Customer | |||
Accounts receivable | $ 11,737 | $ 9,598 |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ in Millions | Jan. 14, 2015 | Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 |
Business Acquisition | ||||
Acquisition related expenses | $ 0.4 | $ 0.3 | ||
Armstrong Areospace, Inc. | ||||
Business Acquisition | ||||
Percentage of acquired stock | 100.00% | |||
Business acquisition purchase price paid in cash | $ 52.3 | |||
Goodwill and purchased intangible assets deductible for tax purposes period (in years) | 15 years | |||
Astronics Test Systems | ||||
Business Acquisition | ||||
Business acquisition purchase price paid in cash | $ 69.4 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Apr. 03, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||
Business acquisition purchase price paid in cash | $ 0 | $ 52,276 | $ 68,201 | |
Subsequent Event | Custom Control Concepts LLC | Astronics Custom Control Concepts Inc. | ||||
Subsequent Event [Line Items] | ||||
Business acquisition purchase price paid in cash | $ 10,200 | |||
Cash acquired | $ 500 | |||
Goodwill and purchased intangible assets deductible for tax purposes period (in years) | 15 years |
Schedule II - Valuation and Q90
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at the Beginning of Period | $ 312 | $ 293 | $ 140 |
Additions Charged to Cost and Expense | 388 | 68 | 119 |
Write-Offs | (98) | (49) | 34 |
Balance at End of Period | 602 | 312 | 293 |
Reserve for Inventory Valuation | |||
Movement in Valuation Allowances and Reserves | |||
Balance at the Beginning of Period | 14,594 | 12,276 | 11,041 |
Additions Charged to Cost and Expense | 2,015 | 3,120 | 1,840 |
Write-Offs | (1,199) | (802) | (605) |
Balance at End of Period | 15,410 | 14,594 | 12,276 |
Deferred Tax Valuation Allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at the Beginning of Period | 2,640 | 3,134 | 2,509 |
Additions Charged to Cost and Expense | 1,176 | 0 | 625 |
Write-Offs | 0 | (494) | 0 |
Balance at End of Period | $ 3,816 | $ 2,640 | $ 3,134 |