Document and Entity Information
Document and Entity Information | 9 Months Ended |
Oct. 03, 2015shares | |
Document Information | |
Entity Registrant Name | ASTRONICS CORP |
Trading Symbol | ATRO |
Entity Central Index Key | 8,063 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Oct. 3, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q3 |
Amendment Flag | false |
Common Class Undefined | |
Document Information | |
Entity Common Stock, Shares Outstanding | 17,396,338 |
Convertible Class B Stock | |
Document Information | |
Entity Common Stock, Shares Outstanding | 8,135,569 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and Cash Equivalents | $ 22,433 | $ 21,197 |
Accounts Receivable, Net of Allowance for Doubtful Accounts | 124,663 | 88,888 |
Inventories | 119,811 | 115,053 |
Prepaid Expenses and Other Current Assets | 19,501 | 20,680 |
Total Current Assets | 286,408 | 245,818 |
Property, Plant and Equipment, Net of Accumulated Depreciation | 125,940 | 116,316 |
Other Assets | 8,907 | 5,632 |
Intangible Assets, Net of Accumulated Amortization | 111,196 | 94,991 |
Goodwill | 115,942 | 100,153 |
Total Assets | 648,393 | 562,910 |
Current Liabilities: | ||
Current Maturities of Long-term Debt | 2,745 | 2,796 |
Accounts Payable | 27,763 | 27,903 |
Accrued Expenses and Other Current Liabilities | 42,076 | 33,465 |
Customer Advance Payments and Deferred Revenue | 40,565 | 45,052 |
Total Current Liabilities | 113,149 | 109,216 |
Long-term Debt | 205,789 | 180,212 |
Other Liabilities | 45,469 | 45,305 |
Total Liabilities | 364,407 | 334,733 |
Shareholders’ Equity: | ||
Common Stock | 255 | 252 |
Accumulated Other Comprehensive Loss | (14,875) | (11,949) |
Other Shareholders’ Equity | 298,606 | 239,874 |
Total Shareholders’ Equity | 283,986 | 228,177 |
Total Liabilities and Shareholders’ Equity | $ 648,393 | $ 562,910 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 200,145 | $ 179,442 | $ 534,939 | $ 494,956 |
Cost of Products Sold | 140,718 | 128,132 | 385,898 | 370,439 |
Gross Profit | 59,427 | 51,310 | 149,041 | 124,517 |
Selling, General and Administrative Expenses | 22,297 | 25,539 | 66,213 | 62,638 |
Income from Operations | 37,130 | 25,771 | 82,828 | 61,879 |
Interest Expense, Net of Interest Income | 1,243 | 2,301 | 3,600 | 7,183 |
Income Before Income Taxes | 35,887 | 23,470 | 79,228 | 54,696 |
Provision for Income Taxes | 11,193 | 6,390 | 26,161 | 16,965 |
Net Income | $ 24,694 | $ 17,080 | $ 53,067 | $ 37,731 |
Earnings Per Share: | ||||
Basic (in usd per share) | $ 0.97 | $ 0.68 | $ 2.09 | $ 1.51 |
Diluted (in usd per share) | $ 0.94 | $ 0.65 | $ 2.02 | $ 1.45 |
Consolidated Condensed Stateme4
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 24,694 | $ 17,080 | $ 53,067 | $ 37,731 |
Other Comprehensive (Loss) Income: | ||||
Foreign Currency Translation Adjustments | (196) | (2,375) | (3,410) | (2,943) |
Change in Accumulated Loss on Derivatives – Net of Tax | 0 | 27 | 0 | 19 |
Retirement Liability Adjustment – Net of Tax | 161 | 110 | 484 | 318 |
Other Comprehensive (Loss) Income | (35) | (2,238) | (2,926) | (2,606) |
Comprehensive Income | $ 24,659 | $ 14,842 | $ 50,141 | $ 35,125 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Sep. 27, 2014 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 53,067 | $ 37,731 |
Adjustments to Reconcile Net Income to Cash Provided By Operating Activities: | ||
Depreciation and Amortization | 18,831 | 21,168 |
Provisions for Non-Cash Losses on Inventory and Receivables | 1,513 | 733 |
Stock Compensation Expense | 1,740 | 1,304 |
Deferred Tax Benefit | (243) | (4,598) |
Non-Cash Earnout Liability Adjustment | (1,576) | (477) |
Other | 21 | (618) |
Cash Flows from Changes in Operating Assets and Liabilities: | ||
Accounts Receivable | (29,796) | (41,562) |
Inventories | (4,805) | 16,184 |
Accounts Payable | (1,656) | 7,923 |
Accrued Expenses | 5,662 | 7,660 |
Other Current Assets and Liabilities | (498) | (2,461) |
Customer Advanced Payments and Deferred Revenue | (5,396) | 22,593 |
Income Taxes | 5,072 | 2,048 |
Supplemental Retirement and Other Liabilities | 1,238 | 921 |
Cash Provided By Operating Activities | 43,174 | 68,549 |
Cash Flows From Investing Activities: | ||
Acquisition of Business, Net of Cash Acquired | (52,606) | (70,028) |
Capital Expenditures | (15,857) | (29,971) |
Other Investing Activities | (2,677) | 0 |
Cash Used For Investing Activities | (71,140) | (99,999) |
Cash Flows From Financing Activities: | ||
Proceeds from Long-term Debt | 55,000 | 245,414 |
Payments for Long-term Debt | (29,008) | (245,761) |
Debt Acquisition Costs | 0 | (573) |
Acquisition Earnout Payments | (2) | (37) |
Proceeds from Exercise of Stock Options | 3,308 | 1,290 |
Income Tax Benefit from Exercise of Stock Options | 619 | 2,041 |
Cash Provided By Financing Activities | 29,917 | 2,374 |
Effect of Exchange Rates on Cash | (715) | (631) |
Increase (Decrease) in Cash and Cash Equivalents | 1,236 | (29,707) |
Cash and Cash Equivalents at Beginning of Period | 21,197 | 54,635 |
Cash and Cash Equivalents at End of Period | $ 22,433 | $ 24,928 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share quantities and per share data reported have been restated to reflect the impact of the three-for-twenty Class B stock distribution to shareholders of record on October 8, 2015 . Operating Results The results of operations for any interim period are not necessarily indicative of results for the full year. Operating results for the three and nine months ended October 3, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation’s 2014 annual report on Form 10-K. 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 systems, lighting & safety systems, avionics products, aircraft structures, engineering design and systems certification 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”); Ballard Technology, Inc. (“Ballard”); DME Corporation and Astronics DME LLC (“DME”); Luminescent Systems, Inc. (“LSI”); Luminescent Systems Canada, Inc. (“LSI Canada”); Max-Viz, Inc. (“Max-Viz”); Peco, Inc. (“Peco”); PGA Electronic s.a. (“PGA”); Astronics Test Systems, Inc. (“ATS”) and Armstrong Aerospace, Inc. (“Armstrong”). On January 14, 2015 , the Company acquired 100% of the equity of Armstrong, located in Itasca, Illinois. Armstrong is a leading provider of engineering, design and systems certification solutions for commercial aircraft, specializing in connectivity, in-flight entertainment, and electrical power systems. Armstrong is included in our Aerospace segment. On February 28, 2014, Astronics acquired, through a wholly owned subsidiary ATS, certain assets and liabilities of EADS North America’s Test and Services division, located in Irvine, California. ATS is a leading provider of highly engineered automated test systems, subsystems and instruments for commercial electronics and semiconductor products to both the commercial and defense industries. ATS is included in our Test Systems segment. 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 development 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 $22.5 million and $19.1 million for the three months ended October 3, 2015 and September 27, 2014 , respectively, and $66.1 million and $57.1 million for the nine months ended October 3, 2015 and September 27, 2014 , respectively. Selling, general and administrative expenses include costs primarily related to our sales and marketing departments and administrative departments. Interest expense is shown net of interest income. Interest income was insignificant for the three and nine months ended October 3, 2015 and September 27, 2014 . Derivatives In November 2014, the Company terminated its interest rate swap. Ineffectiveness was not significant for the three and nine months ended September 27, 2014. The Company classified the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items. No derivative instruments were outstanding at or for the three or nine months ended October 3, 2015 . Foreign Currency Translation The Company accounts for its foreign currency translation in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Translation . The aggregate transaction gain or loss included in operations was insignificant for the three and nine months ended October 3, 2015 and September 27, 2014 . 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. Accounting Pronouncements Adopted in 2015 There have been no recent accounting pronouncements that have had an impact on the Company’s financial statements. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. |
Inventories
Inventories | 9 Months Ended |
Oct. 03, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method. Inventories are as follows: (In thousands) October 3, December 31, Finished Goods $ 32,208 $ 28,763 Work in Progress 25,030 28,488 Raw Material 62,573 57,802 $ 119,811 $ 115,053 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Oct. 03, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment The following table summarizes Property, Plant and Equipment as follows: (In thousands) October 3, December 31, Land $ 11,171 $ 10,008 Buildings and Improvements 78,209 74,755 Machinery and Equipment 86,088 73,062 Construction in Progress 5,644 4,757 181,112 162,582 Less Accumulated Depreciation 55,172 46,266 $ 125,940 $ 116,316 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table summarizes acquired intangible assets as follows: October 3, 2015 December 31, 2014 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 6 Years $ 2,146 $ 1,217 $ 2,146 $ 1,077 Non-compete Agreement 5 Years 2,500 354 — — Trade Names 8 Years 10,237 1,982 8,304 1,288 Completed and Unpatented Technology 7 Years 24,092 6,190 18,107 4,396 Backlog and Customer Relationships 12 Years 107,739 25,775 93,448 20,253 Total Intangible Assets 7 Years $ 146,714 $ 35,518 $ 122,005 $ 27,014 All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Amortization Expense $ 8,534 $ 12,673 $ 2,761 $ 7,769 Amortization expense for acquired intangible assets expected for 2015 and for each of the next five years is summarized as follows: (In thousands) 2015 $ 11,341 2016 10,762 2017 10,336 2018 10,023 2019 9,622 2020 9,088 The Company also incurs amortization expense related to other assets. Such amortization expense was not significant in the three or nine months ended October 3, 2015 and September 27, 2014 . |
Goodwill
Goodwill | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following table summarizes the changes in the carrying amount of goodwill for 2015: (In thousands) December 31, Acquisition Foreign Currency Translation October 3, Aerospace $ 100,153 $ 16,567 $ (778 ) $ 115,942 Test Systems — — — — $ 100,153 $ 16,567 $ (778 ) $ 115,942 During the three months ended October 3, 2015 , approximately $1.4 million was reclassified from inventory to goodwill as the Company continues the evaluation of the purchase price allocation of Armstrong. |
Long-term Debt and Notes Payabl
Long-term Debt and Notes Payable | 9 Months Ended |
Oct. 03, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Notes Payable | Long-term Debt and Notes Payable 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. 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 25 and 50 basis points 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 “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 is now September 26, 2019 . At October 3, 2015 there was $193.0 million outstanding on the revolving credit facility and there remains $155.9 million available, net of outstanding letters of credit. 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 October 3, 2015 , outstanding letters of credit totaled $1.1 million . Covenants in the Agreement have been 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 2 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 137.5 basis points and 225 basis points based upon the Company’s leverage ratio. The Company will also pay a commitment fee to the lenders in an amount equal to between 17.5 basis points and 35 basis points on the undrawn portion of the credit facility, based upon the Company’s leverage ratio. The fixed charge coverage ratio under the Original Facility has been replaced with 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 39.6 to 1 at October 3, 2015 . The Company’s leverage ratio was 1.5 to 1 at October 3, 2015 . In the event of voluntary or involuntary bankruptcy of the Company or any subsidiary, all unpaid principal and other amounts owing under the 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. |
Product Warranties
Product Warranties | 9 Months Ended |
Oct. 03, 2015 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties In the ordinary course of business, the Company warrants its products against defects in design, materials and workmanship typically over periods ranging from 12 to 60 months . The Company determines warranty reserves needed by product line based on experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Balance at Beginning of Period $ 4,884 $ 2,796 $ 5,319 $ 3,925 Acquisitions 500 564 — (226 ) Warranties Issued 1,553 2,842 414 1,966 Warranties Settled (2,164 ) (1,323 ) (737 ) (520 ) Reassessed Warranty Exposure 1,130 271 907 5 Balance at End of Period $ 5,903 $ 5,150 $ 5,903 $ 5,150 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2015 | |
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. ASC Topic 740-10 Overall - Uncertainty in Income Taxes (“ASC Topic 740-10”) clarifies the accounting and disclosure for uncertainty in tax positions. ASC Topic 740-10 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company is subject to the provisions of ASC Topic 740-10 and has analyzed 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 will be recorded as interest expense. Penalties, if any, would be recognized as operating expenses. There were no penalties or interest liability accrued as of October 3, 2015 or December 31, 2014, nor were any penalties or interest costs included in expense for the three or nine months ended October 3, 2015 and September 27, 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 2012 through 2014 for federal purposes and 2011 through 2014 for state purposes. The effective tax rates were approximately 33.0% and 31.0% for the nine months and 31.2% and 27.2% for the three months ended October 3, 2015 and September 27, 2014 , respectively. The effective tax rate for the third quarter and first nine months of 2015 and 2014 were lower than the federal statutory rate due to the domestic production activity deduction, domestic research and development tax credits and lower effective tax rates on foreign income. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The changes in shareholders’ equity for the nine months ended October 3, 2015 are summarized as follows: Number of Shares (Dollars and Shares in thousands) Amount Common Stock Convertible Class B Stock Shares Authorized 40,000 10,000 Share Par Value $ 0.01 $ 0.01 COMMON STOCK Beginning of Period $ 252 16,608 8,651 Conversion of Class B Shares to Common Shares — 623 (623 ) Exercise of Stock Options 3 165 108 End of Period $ 255 17,396 8,136 ADDITIONAL PAID IN CAPITAL Beginning of Period $ 49,626 Stock Compensation Expense 1,740 Exercise of Stock Options 3,925 End of Period $ 55,291 ACCUMULATED OTHER COMPREHENSIVE LOSS Beginning of Period $ (11,949 ) Foreign Currency Translation Adjustment (3,410 ) Retirement Liability Adjustment – Net of Tax 484 End of Period $ (14,875 ) RETAINED EARNINGS Beginning of Period $ 190,248 Net Income 53,067 End of Period $ 243,315 TOTAL SHAREHOLDERS’ EQUITY Beginning of Period $ 228,177 End of Period $ 283,986 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted weighted-average shares outstanding are as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Weighted Average Shares - Basic 25,394 24,910 25,456 25,011 Net Effect of Dilutive Stock Options 843 1,147 761 1,068 Weighted Average Shares - Diluted 26,237 26,057 26,217 26,079 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 at October 3, 2015 was insignificant. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss and Other Comprehensive Loss | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss and Other Comprehensive Loss | Accumulated Other Comprehensive Loss and Other Comprehensive Loss The components of accumulated other comprehensive loss are as follows: (In thousands) October 3, December 31, Foreign Currency Translation Adjustments $ (6,764 ) $ (3,354 ) Retirement Liability Adjustment – Before Tax (12,477 ) (13,223 ) Tax Benefit 4,366 4,628 Retirement Liability Adjustment – After Tax (8,111 ) (8,595 ) Accumulated Other Comprehensive Loss $ (14,875 ) $ (11,949 ) The components of other comprehensive loss are as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Foreign Currency Translation Adjustments $ (3,410 ) $ (2,943 ) $ (196 ) $ (2,375 ) Change in Accumulated Income on Derivatives: Reclassification to Interest Expense — 45 — 11 Mark to Market Adjustments for Derivatives — (15 ) — 31 Tax Expense — (11 ) — (15 ) Change in Accumulated Income on Derivatives — 19 — 27 Retirement Liability Adjustments: Reclassifications to General and Administrative Expense: Amortization of Prior Service Cost 390 408 130 136 Amortization of Net Actuarial Losses 356 80 119 27 Tax Benefit (262 ) (170 ) (88 ) (53 ) Retirement Liability Adjustment 484 318 161 110 Other Comprehensive Loss $ (2,926 ) $ (2,606 ) $ (35 ) $ (2,238 ) |
Supplemental Retirement Plan an
Supplemental Retirement Plan and Related Post Retirement Benefits | 9 Months Ended |
Oct. 03, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Supplemental Retirement Plan and Related Post Retirement Benefits | Supplemental Retirement Plan and Related Post Retirement Benefits The Company has two non-qualified supplemental retirement defined benefit plans (“SERP” and “SERP II”) for certain executive officers. The following table sets forth information regarding the net periodic pension cost for the plans. Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Service Cost $ 145 $ 187 $ 49 $ 62 Interest Cost 633 565 211 188 Amortization of Prior Service Cost 371 390 123 130 Amortization of Net Actuarial Losses 336 80 113 27 Net Periodic Cost $ 1,485 $ 1,222 $ 496 $ 407 Participants in the SERP are entitled to paid medical, dental and long-term care insurance benefits upon retirement under the plan. The following table sets forth information regarding the net periodic cost recognized for those benefits: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Service Cost $ 3 $ 3 $ 1 $ 1 Interest Cost 30 24 10 8 Amortization of Prior Service Cost 19 18 7 6 Amortization of Net Actuarial Losses 20 — 6 — Net Periodic Cost $ 72 $ 45 $ 24 $ 15 |
Sales to Major Customers
Sales to Major Customers | 9 Months Ended |
Oct. 03, 2015 | |
Risks and Uncertainties [Abstract] | |
Sales to Major Customers | Sales to Major Customers The Company has a significant concentration of business with three major customers, each in excess of 10% of consolidated sales. The loss of any of these customers would significantly, negatively impact our sales and earnings. Sales to these three customers represented 21% , 16% and 13% of consolidated sales for the nine months ended October 3, 2015 and 19% , 25% and 12% for the three months ended October 3, 2015 . Sales to these customers were in the Aerospace and Test Systems segments. Accounts receivable from these customers at October 3, 2015 was approximately $58.9 million . The Company had sales to three customers in the Aerospace and Test Systems segments that represented 17% , 20% and 14% of consolidated sales for the nine months ended September 27, 2014 and 17% , 25% and 13% of consolidated sales for the three months ended September 27, 2014 . |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject to various legal proceedings, claims, and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, we do not expect these matters will have a material adverse effect on our business, financial position, results of operations, or cash flows. However, the results of these matters cannot be predicted with certainty. Should the Company fail to prevail in any legal matter or should several legal matters be resolved against the Company in the same reporting period, then the financial results of that particular reporting period could be materially adversely affected. 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 which 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 which 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 require AES to provide certain financial information regarding sales of the infringing product to enable Lufthansa to make an estimate of requested damages. AES is currently evaluating the information requirements. Additionally, if Lufthansa provides the additional required bank guarantees specified in the decision, the Company may be required to cease distribution of infringing products in Germany (if any). No such bank guarantee has been issued to date regarding this provision. The Company appealed and believes it has valid defenses to refute the decision. The appeal process is estimated to extend up to two years. The enforcement of the accounting provision of the decision, as discussed above, has no impact on the appeals process. As a result, we do not currently have sufficient information to provide an estimate of AES’s potential exposure related to this matter. 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 October 3, 2015 . 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 which 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. However, the U.S. court will not be bound by the ultimate determination made by the German court. The Company believes it has valid defenses to refute Lufthansa’s claims and intends to contest this matter vigorously. As this matter is in the early stages of fact discovery, we do not currently have sufficient information to provide an estimate of AES’s potential exposure related to this matter. 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 October 3, 2015 . |
Segment Information
Segment Information | 9 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Below are the sales and operating profit by segment for the three and nine months ended October 3, 2015 and September 27, 2014 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. Nine Months Ended Three Months Ended (Dollars in thousands) October 3, September 27, October 3, September 27, Sales Aerospace $ 413,250 $ 366,128 $ 138,728 $ 122,233 Test Systems 121,744 129,065 61,417 57,209 Less Intersegment Sales (55 ) (237 ) — — 121,689 128,828 61,417 57,209 Total Consolidated Sales $ 534,939 $ 494,956 $ 200,145 $ 179,442 Operating Profit and Margins Aerospace $ 66,728 $ 60,308 $ 23,055 $ 22,057 16.1 % 16.5 % 16.6 % 18.0 % Test Systems 24,618 8,034 16,980 5,699 20.2 % 6.2 % 27.6 % 10.0 % Total Operating Profit 91,346 68,342 40,035 27,756 17.1 % 13.8 % 20.0 % 15.5 % Deductions from Operating Profit Interest Expense, Net of Interest Income 3,600 7,183 1,243 2,301 Corporate Expenses and Other 8,518 6,463 2,905 1,985 Income Before Income Taxes $ 79,228 $ 54,696 $ 35,887 $ 23,470 Identifiable Assets (In thousands) October 3, December 31, 2014 Aerospace $ 531,136 $ 468,481 Test Systems 87,909 69,247 Corporate 29,348 25,182 Total Assets $ 648,393 $ 562,910 |
Fair Value
Fair Value | 9 Months Ended |
Oct. 03, 2015 | |
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 following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of October 3, 2015 and December 31, 2014: (In thousands) Classification Total Level 1 Level 2 Level 3 Acquisition contingent consideration October 3, 2015 Current Liabilities $ — — — $ — December 31, 2014 Current Liabilities — — — — October 3, 2015 Other Liabilities $ (175 ) — — $ (175 ) December 31, 2014 Other Liabilities $ (1,651 ) — — $ (1,651 ) Our Level 3 fair value liabilities represent contingent consideration recorded related to the 2011 Ballard acquisition, to be paid up to a maximum of $5.5 million if annual revenue growth targets are met in the years 2012 - 2016 and the 2013 AeroSat acquisition, to be paid up to a maximum of $53.0 million if annual revenue targets are met in the years 2014 and 2015. The change in the balance of contingent consideration during the nine months ended October 3, 2015 is primarily due to fair value adjustments of $1.6 million , resulting from the re-evaluation of the probability of the achievement of the contingent consideration targets. This adjustment was recorded within SG&A expenses in the statement of operations. Contingent consideration payments related to 2014 were insignificant. The amounts recorded were calculated using an estimate of the probability of future revenue. 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. 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 analysis 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. 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. For the Company’s indefinite-lived intangible asset, the impairment test consists of comparing the fair value, determined using the relief from royalty method, with its carrying amount. An impairment loss would be recognized for the carrying amount in excess of its fair value. At October 3, 2015 , the fair value of goodwill and intangible assets classified using Level 3 inputs are comprised of the Armstrong goodwill and intangible assets acquired on January 14, 2015, which are currently valued based on management’s best estimates. When the accounting for the acquisition is finalized, these intangible assets will be valued using discounted cash flow methodology. 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. As of October 3, 2015 , the Company concluded that no indicators of impairment relating to intangible assets or goodwill existed and an interim test was not performed. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Oct. 03, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding revenue recognition. 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. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. Therefore, this authoritative guidance will be effective as of the Company’s first quarter of fiscal 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures. In April 2015, the FASB issued authoritative guidance regarding the presentation of debt issuance costs. The authoritative guidance requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. This authoritative guidance, which will be applied on a retrospective basis, will be effective as of the Company’s first quarter of fiscal 2016, with early adoption permitted. The Company plans to early adopt by the end of fiscal 2015 with no material impact on its consolidated financial statements and disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Oct. 03, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Armstrong Aerospace, Inc. On January 14, 2015 , the Company purchased 100% of the equity of Armstrong for $52.6 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. 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 $69.4 million in cash, including a net working capital adjustment of $16.4 million . Located in Irvine, California, ATS is a leading provider of highly-engineered automated test systems, subsystems and instruments for the semiconductor, commercial electronics, commercial aerospace and 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. Purchased intangible assets are deductible for tax purposes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Oct. 03, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation have been included. All share quantities and per share data reported have been restated to reflect the impact of the three-for-twenty Class B stock distribution to shareholders of record on October 8, 2015 . |
Operating Results | Operating Results The results of operations for any interim period are not necessarily indicative of results for the full year. Operating results for the three and nine months ended October 3, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in Astronics Corporation’s 2014 annual report on Form 10-K. |
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 development 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. |
Derivatives | Derivatives In November 2014, the Company terminated its interest rate swap. Ineffectiveness was not significant for the three and nine months ended September 27, 2014. The Company classified the cash flows from hedging transactions in the same category as the cash flows from the respective hedged items. |
Foreign Currency Translation | Foreign Currency Translation The Company accounts for its foreign currency translation in accordance with Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Translation . |
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. |
Accounting Pronouncements Adopted in 2015 | Accounting Pronouncements Adopted in 2015 There have been no recent accounting pronouncements that have had an impact on the Company’s financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding revenue recognition. 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. On July 9, 2015, the FASB voted to defer the effective date by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. Therefore, this authoritative guidance will be effective as of the Company’s first quarter of fiscal 2018. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements and disclosures. In April 2015, the FASB issued authoritative guidance regarding the presentation of debt issuance costs. The authoritative guidance requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction from the carrying value of the debt. This authoritative guidance, which will be applied on a retrospective basis, will be effective as of the Company’s first quarter of fiscal 2016, with early adoption permitted. The Company plans to early adopt by the end of fiscal 2015 with no material impact on its consolidated financial statements and disclosures. |
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. ASC Topic 740-10 Overall - Uncertainty in Income Taxes (“ASC Topic 740-10”) clarifies the accounting and disclosure for uncertainty in tax positions. ASC Topic 740-10 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. The Company is subject to the provisions of ASC Topic 740-10 and has analyzed 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 will be recorded as interest expense. Penalties, if any, would be recognized as operating expenses. |
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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories are stated at the lower of cost or market, cost being determined in accordance with the first-in, first-out method. Inventories are as follows: (In thousands) October 3, December 31, Finished Goods $ 32,208 $ 28,763 Work in Progress 25,030 28,488 Raw Material 62,573 57,802 $ 119,811 $ 115,053 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes Property, Plant and Equipment as follows: (In thousands) October 3, December 31, Land $ 11,171 $ 10,008 Buildings and Improvements 78,209 74,755 Machinery and Equipment 86,088 73,062 Construction in Progress 5,644 4,757 181,112 162,582 Less Accumulated Depreciation 55,172 46,266 $ 125,940 $ 116,316 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | The following table summarizes acquired intangible assets as follows: October 3, 2015 December 31, 2014 (In thousands) Weighted Average Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Patents 6 Years $ 2,146 $ 1,217 $ 2,146 $ 1,077 Non-compete Agreement 5 Years 2,500 354 — — Trade Names 8 Years 10,237 1,982 8,304 1,288 Completed and Unpatented Technology 7 Years 24,092 6,190 18,107 4,396 Backlog and Customer Relationships 12 Years 107,739 25,775 93,448 20,253 Total Intangible Assets 7 Years $ 146,714 $ 35,518 $ 122,005 $ 27,014 |
Summary of Amortization Expense for Acquired Intangibles | All acquired intangible assets other than goodwill and one trade name are being amortized. Amortization expense for acquired intangibles is summarized as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Amortization Expense $ 8,534 $ 12,673 $ 2,761 $ 7,769 |
Summary of Amortization Expense for Intangible Assets for Each of Next Five Years | Amortization expense for acquired intangible assets expected for 2015 and for each of the next five years is summarized as follows: (In thousands) 2015 $ 11,341 2016 10,762 2017 10,336 2018 10,023 2019 9,622 2020 9,088 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
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 2015: (In thousands) December 31, Acquisition Foreign Currency Translation October 3, Aerospace $ 100,153 $ 16,567 $ (778 ) $ 115,942 Test Systems — — — — $ 100,153 $ 16,567 $ (778 ) $ 115,942 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Product Warranties Disclosures [Abstract] | |
Summary of Activity in Warranty Accrual | Activity in the warranty accrual is summarized as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Balance at Beginning of Period $ 4,884 $ 2,796 $ 5,319 $ 3,925 Acquisitions 500 564 — (226 ) Warranties Issued 1,553 2,842 414 1,966 Warranties Settled (2,164 ) (1,323 ) (737 ) (520 ) Reassessed Warranty Exposure 1,130 271 907 5 Balance at End of Period $ 5,903 $ 5,150 $ 5,903 $ 5,150 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Summary of Changes in Shareholder's Equity | The changes in shareholders’ equity for the nine months ended October 3, 2015 are summarized as follows: Number of Shares (Dollars and Shares in thousands) Amount Common Stock Convertible Class B Stock Shares Authorized 40,000 10,000 Share Par Value $ 0.01 $ 0.01 COMMON STOCK Beginning of Period $ 252 16,608 8,651 Conversion of Class B Shares to Common Shares — 623 (623 ) Exercise of Stock Options 3 165 108 End of Period $ 255 17,396 8,136 ADDITIONAL PAID IN CAPITAL Beginning of Period $ 49,626 Stock Compensation Expense 1,740 Exercise of Stock Options 3,925 End of Period $ 55,291 ACCUMULATED OTHER COMPREHENSIVE LOSS Beginning of Period $ (11,949 ) Foreign Currency Translation Adjustment (3,410 ) Retirement Liability Adjustment – Net of Tax 484 End of Period $ (14,875 ) RETAINED EARNINGS Beginning of Period $ 190,248 Net Income 53,067 End of Period $ 243,315 TOTAL SHAREHOLDERS’ EQUITY Beginning of Period $ 228,177 End of Period $ 283,986 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Weighted Average Shares - Basic 25,394 24,910 25,456 25,011 Net Effect of Dilutive Stock Options 843 1,147 761 1,068 Weighted Average Shares - Diluted 26,237 26,057 26,217 26,079 |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Loss and Other Comprehensive Loss (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: (In thousands) October 3, December 31, Foreign Currency Translation Adjustments $ (6,764 ) $ (3,354 ) Retirement Liability Adjustment – Before Tax (12,477 ) (13,223 ) Tax Benefit 4,366 4,628 Retirement Liability Adjustment – After Tax (8,111 ) (8,595 ) Accumulated Other Comprehensive Loss $ (14,875 ) $ (11,949 ) |
Components of Other Comprehensive Loss | The components of other comprehensive loss are as follows: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Foreign Currency Translation Adjustments $ (3,410 ) $ (2,943 ) $ (196 ) $ (2,375 ) Change in Accumulated Income on Derivatives: Reclassification to Interest Expense — 45 — 11 Mark to Market Adjustments for Derivatives — (15 ) — 31 Tax Expense — (11 ) — (15 ) Change in Accumulated Income on Derivatives — 19 — 27 Retirement Liability Adjustments: Reclassifications to General and Administrative Expense: Amortization of Prior Service Cost 390 408 130 136 Amortization of Net Actuarial Losses 356 80 119 27 Tax Benefit (262 ) (170 ) (88 ) (53 ) Retirement Liability Adjustment 484 318 161 110 Other Comprehensive Loss $ (2,926 ) $ (2,606 ) $ (35 ) $ (2,238 ) |
Supplemental Retirement Plan 33
Supplemental Retirement Plan and Related Post Retirement Benefits (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Summary of the Components of Net Periodic Cost | . The following table sets forth information regarding the net periodic cost recognized for those benefits: Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Service Cost $ 3 $ 3 $ 1 $ 1 Interest Cost 30 24 10 8 Amortization of Prior Service Cost 19 18 7 6 Amortization of Net Actuarial Losses 20 — 6 — Net Periodic Cost $ 72 $ 45 $ 24 $ 15 The following table sets forth information regarding the net periodic pension cost for the plans. Nine Months Ended Three Months Ended (In thousands) October 3, September 27, October 3, September 27, Service Cost $ 145 $ 187 $ 49 $ 62 Interest Cost 633 565 211 188 Amortization of Prior Service Cost 371 390 123 130 Amortization of Net Actuarial Losses 336 80 113 27 Net Periodic Cost $ 1,485 $ 1,222 $ 496 $ 407 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting Information | Below are the sales and operating profit by segment for the three and nine months ended October 3, 2015 and September 27, 2014 and a reconciliation of segment operating profit to income before income taxes. Operating profit is net sales less cost of products sold and other operating expenses excluding interest and corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment. Nine Months Ended Three Months Ended (Dollars in thousands) October 3, September 27, October 3, September 27, Sales Aerospace $ 413,250 $ 366,128 $ 138,728 $ 122,233 Test Systems 121,744 129,065 61,417 57,209 Less Intersegment Sales (55 ) (237 ) — — 121,689 128,828 61,417 57,209 Total Consolidated Sales $ 534,939 $ 494,956 $ 200,145 $ 179,442 Operating Profit and Margins Aerospace $ 66,728 $ 60,308 $ 23,055 $ 22,057 16.1 % 16.5 % 16.6 % 18.0 % Test Systems 24,618 8,034 16,980 5,699 20.2 % 6.2 % 27.6 % 10.0 % Total Operating Profit 91,346 68,342 40,035 27,756 17.1 % 13.8 % 20.0 % 15.5 % Deductions from Operating Profit Interest Expense, Net of Interest Income 3,600 7,183 1,243 2,301 Corporate Expenses and Other 8,518 6,463 2,905 1,985 Income Before Income Taxes $ 79,228 $ 54,696 $ 35,887 $ 23,470 Identifiable Assets (In thousands) October 3, December 31, 2014 Aerospace $ 531,136 $ 468,481 Test Systems 87,909 69,247 Corporate 29,348 25,182 Total Assets $ 648,393 $ 562,910 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Oct. 03, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Carried at Fair Value Measured on 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 following table provides the financial assets and liabilities carried at fair value measured on a recurring basis as of October 3, 2015 and December 31, 2014: (In thousands) Classification Total Level 1 Level 2 Level 3 Acquisition contingent consideration October 3, 2015 Current Liabilities $ — — — $ — December 31, 2014 Current Liabilities — — — — October 3, 2015 Other Liabilities $ (175 ) — — $ (175 ) December 31, 2014 Other Liabilities $ (1,651 ) — — $ (1,651 ) |
Basis of Presentation (Detail)
Basis of Presentation (Detail) | Oct. 08, 2015 | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Jan. 14, 2015 |
Business Acquisition | ||||||
Research and development, design and related engineering | $ 22,500,000 | $ 19,100,000 | $ 66,100,000 | $ 57,100,000 | ||
Derivative instruments outstanding | $ 0 | $ 0 | ||||
Armstrong Aerospace, Inc. | ||||||
Business Acquisition | ||||||
Date of acquisition | Jan. 14, 2015 | |||||
Percentage of acquired stock | 100.00% | |||||
Convertible Class B Stock | Subsequent Event | ||||||
Business Acquisition | ||||||
Stock distribution | 0.15 | |||||
Date of payment of dividend to shareholders | Oct. 8, 2015 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 32,208 | $ 28,763 |
Work in progress | 25,030 | 28,488 |
Raw material | 62,573 | 57,802 |
Inventory, net | $ 119,811 | $ 115,053 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 181,112 | $ 162,582 |
Less accumulated depreciation | 55,172 | 46,266 |
Property, plant and equipment net | 125,940 | 116,316 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 11,171 | 10,008 |
Buildings and Improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 78,209 | 74,755 |
Machinery and Equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 86,088 | 73,062 |
Construction in Progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 5,644 | $ 4,757 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets | ||
Weighted average life | 7 years | |
Gross carrying amount | $ 146,714 | $ 122,005 |
Accumulated amortization | $ 35,518 | 27,014 |
Patents | ||
Finite-Lived Intangible Assets | ||
Weighted average life | 6 years | |
Gross carrying amount | $ 2,146 | 2,146 |
Accumulated amortization | $ 1,217 | 1,077 |
Non-compete Agreement | ||
Finite-Lived Intangible Assets | ||
Weighted average life | 5 years | |
Gross carrying amount | $ 2,500 | 0 |
Accumulated amortization | $ 354 | 0 |
Trade Names | ||
Finite-Lived Intangible Assets | ||
Weighted average life | 8 years | |
Gross carrying amount | $ 10,237 | 8,304 |
Accumulated amortization | $ 1,982 | 1,288 |
Completed and Unpatented Technology | ||
Finite-Lived Intangible Assets | ||
Weighted average life | 7 years | |
Gross carrying amount | $ 24,092 | 18,107 |
Accumulated amortization | $ 6,190 | 4,396 |
Backlog and Customer Relationships | ||
Finite-Lived Intangible Assets | ||
Weighted average life | 12 years | |
Gross carrying amount | $ 107,739 | 93,448 |
Accumulated amortization | $ 25,775 | $ 20,253 |
Intangible Assets - Summary o40
Intangible Assets - Summary of Amortization Expense for Acquired Intangibles (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization Expense | $ 2,761 | $ 7,769 | $ 8,534 | $ 12,673 |
Intangible Assets - Summary o41
Intangible Assets - Summary of Amortization Expense for Intangible Assets for Each of Next Five Years (Detail) $ in Thousands | Oct. 03, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,015 | $ 11,341 |
2,016 | 10,762 |
2,017 | 10,336 |
2,018 | 10,023 |
2,019 | 9,622 |
2,020 | $ 9,088 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 03, 2015 | Oct. 03, 2015 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 100,153 | |
Acquisition | 16,567 | |
Foreign currency translation | (778) | |
Balance at end of period | $ 115,942 | 115,942 |
Goodwill reclassification to intangible assets | 1,400 | |
Operating Segments | Aerospace | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 100,153 | |
Acquisition | 16,567 | |
Foreign currency translation | (778) | |
Balance at end of period | 115,942 | 115,942 |
Operating Segments | Test Systems | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 0 | |
Acquisition | 0 | |
Foreign currency translation | 0 | |
Balance at end of period | $ 0 | $ 0 |
Long-Term Debt and Notes Paya43
Long-Term Debt and Notes Payable (Detail) | Sep. 26, 2014USD ($)fiscal_quarter | Oct. 03, 2015USD ($) |
Debt Instrument | ||
Revolving credit facility remaining | $ 155,900,000 | |
Outstanding letters of credit | $ 1,100,000 | |
Duration of permitted leverage ratio following acquisition | fiscal_quarter | 2 | |
Interest coverage ratio | 39.6 | |
Leverage ratio | 1.5 | |
Amended and Restated Credit Agreement | ||
Debt Instrument | ||
Credit facility outstanding | $ 6,000,000 | |
Term loan outstanding amount | 180,500,000 | |
Replacement of original facility | 350,000,000 | |
Line of credit facility increase amount | $ 150,000,000 | |
Maturity date of loans | Sep. 26, 2019 | |
Ratio of funded debt to Adjusted EBITDA | 3.5 | |
Minimum interest coverage ratio | 3 | |
Amended and Restated Credit Agreement | Maximum | ||
Debt Instrument | ||
Ratio of funded debt to Adjusted EBITDA | 4 | |
Revolving Credit Facility | ||
Debt Instrument | ||
Credit facility outstanding | $ 193,000,000 | |
Revolving Credit Facility | Credit Agreement | ||
Debt Instrument | ||
Credit facility outstanding | $ 125,000,000 | |
Outstanding letter of credit | 5 years | |
Revolving credit facility, maturity date | Jun. 30, 2018 | |
Revolving Credit Facility | Credit Agreement | Acquisition | ||
Debt Instrument | ||
Credit facility outstanding | $ 58,000,000 | |
Revolving Credit Facility | Credit Agreement | Minimum | ||
Debt Instrument | ||
Line of credit facility unused capacity | 0.25% | |
Revolving Credit Facility | Credit Agreement | Maximum | ||
Debt Instrument | ||
Line of credit facility unused capacity | 0.50% | |
Revolving Credit Facility | Amended and Restated Credit Agreement | Minimum | ||
Debt Instrument | ||
Basis points for commitment fee | 0.175% | |
Revolving Credit Facility | Amended and Restated Credit Agreement | Minimum | LIBOR | ||
Debt Instrument | ||
Basis points for variable interest rate | 1.375% | |
Revolving Credit Facility | Amended and Restated Credit Agreement | Maximum | ||
Debt Instrument | ||
Basis points for commitment fee | 0.35% | |
Revolving Credit Facility | Amended and Restated Credit Agreement | Maximum | LIBOR | ||
Debt Instrument | ||
Basis points for variable interest rate | 2.25% | |
Letter of Credit | ||
Debt Instrument | ||
Credit facility allocated | $ 20,000,000 |
Product Warranties - Summary of
Product Warranties - Summary of Activity in Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 5,319 | $ 3,925 | $ 4,884 | $ 2,796 |
Acquisitions | 0 | (226) | 500 | 564 |
Warranties issued | 414 | 1,966 | 1,553 | 2,842 |
Warranties settled | (737) | (520) | (2,164) | (1,323) |
Reassessed warranty exposure | 907 | 5 | 1,130 | 271 |
Balance at end of period | $ 5,903 | $ 5,150 | $ 5,903 | $ 5,150 |
Minimum | ||||
Product Liability Contingency [Line Items] | ||||
Product warranty period | 12 months | |||
Maximum | ||||
Product Liability Contingency [Line Items] | ||||
Product warranty period | 60 months |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Penalties or interest liability accrued | $ 0 | $ 0 | $ 0 | ||
Penalty or interest expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Effective tax rate | 31.20% | 27.20% | 33.00% | 31.00% |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period | $ 228,177 | |||
Foreign currency translation adjustment | $ (196) | $ (2,375) | (3,410) | $ (2,943) |
Retirement liability adjustment – net of tax | 161 | 110 | 484 | 318 |
Net income | 24,694 | $ 17,080 | 53,067 | $ 37,731 |
End of period | 283,986 | 283,986 | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period | 252 | |||
Conversion of Class B Shares to Common Shares | 0 | |||
Exercise of stock options | 3 | |||
End of period | $ 255 | $ 255 | ||
Common Stock | Common Class Undefined | ||||
Class of Stock | ||||
Shares authorized | 40,000,000 | 40,000,000 | ||
Share par value | $ 0.01 | $ 0.01 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period (shares) | 16,608,000 | |||
Conversion of Class B Shares to Common Shares (shares) | 623,000 | |||
Exercise of stock options (shares) | 165,000 | |||
End of period (shares) | 17,396,000 | 17,396,000 | ||
Common Stock | Convertible Class B Stock | ||||
Class of Stock | ||||
Shares authorized | 10,000,000 | 10,000,000 | ||
Share par value | $ 0.01 | $ 0.01 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period (shares) | 8,651,000 | |||
Conversion of Class B Shares to Common Shares (shares) | (623,000) | |||
Exercise of stock options (shares) | 108,000 | |||
End of period (shares) | 8,136,000 | 8,136,000 | ||
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period | $ 49,626 | |||
Exercise of stock options | 3,925 | |||
Stock compensation expense | 1,740 | |||
End of period | $ 55,291 | 55,291 | ||
Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period | (11,949) | |||
Foreign currency translation adjustment | (3,410) | |||
Retirement liability adjustment – net of tax | 484 | |||
End of period | (14,875) | (14,875) | ||
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning of period | 190,248 | |||
End of period | $ 243,315 | $ 243,315 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares - Basic (in shares) | 25,456 | 25,011 | 25,394 | 24,910 |
Net effect of dilutive stock options (in shares) | 761 | 1,068 | 843 | 1,147 |
Weighted average shares - Diluted (in shares) | 26,217 | 26,079 | 26,237 | 26,057 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss and Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Oct. 03, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (6,764) | $ (3,354) |
Retirement liability adjustment - before tax | (12,477) | (13,223) |
Tax benefit | 4,366 | 4,628 |
Retirement liability adjustment - after tax | (8,111) | (8,595) |
Accumulated other comprehensive loss | $ (14,875) | $ (11,949) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss and Other Comprehensive Loss - Components of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | |
Equity [Abstract] | ||||
Foreign currency translation adjustment | $ (196) | $ (2,375) | $ (3,410) | $ (2,943) |
Change in Accumulated Income on Derivatives: | ||||
Reclassification to interest expense | 0 | 11 | 0 | 45 |
Mark to market adjustments for derivatives | 0 | 31 | 0 | (15) |
Tax expense | 0 | (15) | 0 | (11) |
Change in accumulated income on derivatives | 0 | 27 | 0 | 19 |
Reclassifications to General and Administrative Expense: | ||||
Amortization of prior service cost | 130 | 136 | 390 | 408 |
Amortization of net actuarial losses | 119 | 27 | 356 | 80 |
Tax benefit | (88) | (53) | (262) | (170) |
Retirement liability adjustment | 161 | 110 | 484 | 318 |
Other comprehensive loss | $ (35) | $ (2,238) | $ (2,926) | $ (2,606) |
Supplemental Retirement Plan 50
Supplemental Retirement Plan and Related Post Retirement Benefits - Summary of the Components of Net Periodic Cost (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015USD ($) | Sep. 27, 2014USD ($) | Oct. 03, 2015USD ($)RetirementPlans | Sep. 27, 2014USD ($) | |
Compensation and Retirement Disclosure [Abstract] | ||||
Number of non-qualified supplemental retirement defined benefit plans | RetirementPlans | 2 | |||
SERP | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 49 | $ 62 | $ 145 | $ 187 |
Interest cost | 211 | 188 | 633 | 565 |
Amortization of prior service cost | 123 | 130 | 371 | 390 |
Amortization of net actuarial losses | 113 | 27 | 336 | 80 |
Net periodic cost | 496 | 407 | 1,485 | 1,222 |
SERP Medical | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 10 | 8 | 30 | 24 |
Amortization of prior service cost | 7 | 6 | 19 | 18 |
Amortization of net actuarial losses | 6 | 0 | 20 | 0 |
Net periodic cost | $ 24 | $ 15 | $ 72 | $ 45 |
Sales to Major Customers (Detai
Sales to Major Customers (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015USD ($) | Sep. 27, 2014 | Oct. 03, 2015USD ($)Customer | Sep. 27, 2014Customer | |
Segment Reporting, Asset Reconciling Item | ||||
Number of major customers | 3 | 3 | ||
Sales Revenue, Net | Customer Concentration Risk | Major Customer One | ||||
Segment Reporting, Asset Reconciling Item | ||||
Percent of consolidated revenue | 19.00% | 17.00% | 21.00% | 17.00% |
Sales Revenue, Net | Customer Concentration Risk | Major Customer Two | ||||
Segment Reporting, Asset Reconciling Item | ||||
Percent of consolidated revenue | 25.00% | 25.00% | 16.00% | 20.00% |
Sales Revenue, Net | Customer Concentration Risk | Major Customer Three | ||||
Segment Reporting, Asset Reconciling Item | ||||
Percent of consolidated revenue | 12.00% | 13.00% | 13.00% | 14.00% |
Sales Revenue, Net | Customer Concentration Risk | Three Major Customers | ||||
Segment Reporting, Asset Reconciling Item | ||||
Accounts receivable from major customers | $ | $ 58.9 | $ 58.9 |
Segment Information - Summary o
Segment Information - Summary of Segment Reporting Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2015 | Sep. 27, 2014 | Oct. 03, 2015 | Sep. 27, 2014 | Dec. 31, 2014 | |
Segment Reporting Information | |||||
Sales | $ 200,145 | $ 179,442 | $ 534,939 | $ 494,956 | |
Operating profit (loss) | 37,130 | 25,771 | 82,828 | 61,879 | |
Deductions from Operating Profit | |||||
Interest expense, net of interest income | (1,243) | (2,301) | (3,600) | (7,183) | |
Income before income taxes | 35,887 | 23,470 | 79,228 | 54,696 | |
Total assets | 648,393 | 648,393 | $ 562,910 | ||
Test Systems | |||||
Segment Reporting Information | |||||
Sales | 61,417 | 57,209 | 121,689 | 128,828 | |
Operating Segments | |||||
Segment Reporting Information | |||||
Operating profit (loss) | $ 40,035 | $ 27,756 | $ 91,346 | $ 68,342 | |
Operating margins (percentage) | 20.00% | 15.50% | 17.10% | 13.80% | |
Operating Segments | Aerospace | |||||
Segment Reporting Information | |||||
Sales | $ 138,728 | $ 122,233 | $ 413,250 | $ 366,128 | |
Operating profit (loss) | $ 23,055 | $ 22,057 | $ 66,728 | $ 60,308 | |
Operating margins (percentage) | 16.60% | 18.00% | 16.10% | 16.50% | |
Deductions from Operating Profit | |||||
Total assets | $ 531,136 | $ 531,136 | 468,481 | ||
Operating Segments | Test Systems | |||||
Segment Reporting Information | |||||
Sales | 61,417 | $ 57,209 | 121,744 | $ 129,065 | |
Operating profit (loss) | $ 16,980 | $ 5,699 | $ 24,618 | $ 8,034 | |
Operating margins (percentage) | 27.60% | 10.00% | 20.20% | 6.20% | |
Deductions from Operating Profit | |||||
Total assets | $ 87,909 | $ 87,909 | 69,247 | ||
Intersegment Eliminations | Test Systems | |||||
Segment Reporting Information | |||||
Sales | 0 | $ 0 | (55) | $ (237) | |
Segment Reconciling Items | |||||
Deductions from Operating Profit | |||||
Interest expense, net of interest income | 1,243 | 2,301 | 3,600 | 7,183 | |
Corporate expenses and other | 2,905 | $ 1,985 | 8,518 | $ 6,463 | |
Corporate | |||||
Deductions from Operating Profit | |||||
Total assets | $ 29,348 | $ 29,348 | $ 25,182 |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2015 | Oct. 03, 2015 | Sep. 27, 2014 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Increase (decrease) in contingent consideration | $ (1,576,000) | $ (477,000) | ||
Current Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | $ 0 | 0 | $ 0 | |
Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | (175,000) | (175,000) | (1,651,000) | |
Level 1 | Current Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 0 | 0 | 0 | |
Level 1 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 0 | 0 | 0 | |
Level 2 | Current Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 0 | 0 | 0 | |
Level 2 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 0 | 0 | 0 | |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Increase (decrease) in contingent consideration | (1,300,000) | (1,600,000) | ||
Level 3 | Maximum | Ballard | Revenue Recognition Milestone Method 2012 to 2016 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 5,500,000 | 5,500,000 | ||
Level 3 | Maximum | AeroSat | Revenue Recognition Milestone Method 2014 and 2015 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 53,000,000 | 53,000,000 | ||
Level 3 | Current Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | 0 | 0 | 0 | |
Level 3 | Other Liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Acquisition contingent consideration | $ (175,000) | $ (175,000) | $ (1,651,000) |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ in Millions | Jan. 14, 2015 | Feb. 28, 2014 | Oct. 03, 2015 |
Armstrong Aerospace, Inc. | |||
Business Acquisition | |||
Date of acquisition | Jan. 14, 2015 | ||
Percentage of acquired stock | 100.00% | ||
Business acquisition purchase price paid in cash | $ 52.6 | ||
Test and Services Division of EADS North America, Inc. | Astronics Test Systems | |||
Business Acquisition | |||
Date of acquisition | Feb. 28, 2014 | ||
Business acquisition purchase price paid in cash | $ 69.4 | ||
Net working capital adjustment | $ 16.4 |