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Condensed Consolidating Financial Statements
6 Months Ended
Jun. 29, 2014
Condensed Consolidating Financial Statements [Abstract]  
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements

The Company has $625.0 million in outstanding Senior Secured Notes (see Note 8). The Notes are guaranteed by all of the Company's 100% owned domestic subsidiaries (the "Subsidiary Guarantors") and are collateralized by the assets of all of the Company's 100% owned subsidiaries. The Notes are fully and unconditionally guaranteed on a joint and several basis by each Subsidiary Guarantors and the Company. There are no contractual restrictions limiting cash transfers from Subsidiary Guarantors by dividends, loans or advances to the Company. The Senior Secured Notes are not guaranteed by the Company's foreign subsidiaries (the “Non-Guarantor Subsidiaries”).

The following tables present condensed consolidating financial statements for the parent company, the Subsidiary Guarantors and the Non-Guarantor Subsidiaries, respectively. The condensed consolidating financial information below follows the same accounting policies as described in the condensed consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in 100% owned subsidiaries, which are eliminated upon consolidation.

Subsequent to the issuance of the Company’s condensed consolidated financial statements for the quarter ended June 30, 2013, the Company reclassified cash flows related to Investment in affiliated companies to a separate line item in its Condensed Consolidating Statement of Cash Flows. These amounts were previously combined with financings from affiliated companies. There was no total impact on cash flow from either investing or financing activities.



Condensed Consolidating Balance Sheet
December 29, 2013
(Unaudited)
(in millions)

 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
  Cash and cash equivalents
$
42.7

 
$
(3.0
)
 
$
16.0

 
$

 
$
55.7

  Accounts receivable, net

 
238.6

 
27.2

 

 
265.8

  Amounts due from affiliated companies
410.2

 

 

 
(410.2
)
 

  Inventoried costs

 
59.1

 
15.5

 

 
74.6

  Other current assets
10.7

 
19.4

 
4.1

 

 
34.2

    Total current assets
463.6

 
314.1

 
62.8

 
(410.2
)
 
430.3

Property, plant and equipment, net
2.1

 
71.9

 
10.8

 

 
84.8

Goodwill

 
574.8

 
21.6

 

 
596.4

Intangible assets, net

 
68.5

 
1.4

 

 
69.9

Investment in subsidiaries
474.2

 
36.7

 

 
(510.9
)
 

Amounts due from affiliated companies

 
24.0

 

 
(24.0
)
 

Other assets
12.9

 
23.0

 
(0.7
)
 

 
35.2

    Total assets
$
952.8

 
$
1,113.0

 
$
95.9

 
$
(945.1
)
 
$
1,216.6

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
  Accounts payable
$
2.8

 
$
54.1

 
$
5.0

 
$

 
$
61.9

  Accrued expenses
6.6

 
40.9

 
3.9

 

 
51.4

  Accrued compensation
4.0

 
36.9

 
4.0

 

 
44.9

Billings in excess of costs and earnings on uncompleted contracts

 
45.4

 
7.1

 

 
52.5

Deferred income tax liability

 
28.4

 

 

 
28.4

  Amounts due to affiliated companies

 
390.2

 
20.0

 
(410.2
)
 

  Other current liabilities
1.3

 
9.5

 
1.1

 

 
11.9

    Total current liabilities
14.7

 
605.4

 
41.1

 
(410.2
)
 
251.0

Long-term debt, net of current portion
639.5

 

 
3.8

 

 
643.3

Amounts due to affiliated companies

 

 
24.0

 
(24.0
)
 

Other long-term liabilities
2.8

 
21.4

 
2.3

 

 
26.5

    Total liabilities
657.0

 
626.8

 
71.2

 
(434.2
)
 
920.8

 Total stockholders' equity
295.8

 
486.2

 
24.7

 
(510.9
)
 
295.8

    Total liabilities and stockholders' equity
$
952.8

 
$
1,113.0

 
$
95.9

 
$
(945.1
)
 
$
1,216.6



Condensed Consolidating Balance Sheet
June 29, 2014
(Unaudited)
(in millions)
 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
  Cash and cash equivalents
$
22.1

 
$
(5.3
)
 
$
10.1

 
$

 
$
26.9

  Accounts receivable, net

 
237.1

 
28.8

 

 
265.9

  Amounts due from affiliated companies
389.5

 

 

 
(389.5
)
 

  Inventoried costs

 
59.8

 
18.7

 

 
78.5

  Other current assets
6.5

 
16.1

 
4.6

 

 
27.2

    Total current assets
418.1

 
307.7

 
62.2

 
(389.5
)
 
398.5

Amounts due from affiliated companies, long-term

 
24.0

 

 
(24.0
)
 

Property, plant and equipment, net
2.2

 
71.2

 
10.8

 

 
84.2

Goodwill

 
572.4

 
24.0

 

 
596.4

Intangible assets, net

 
61.9

 
0.7

 

 
62.6

Investment in subsidiaries
487.8

 
39.0

 

 
(526.8
)
 

Other assets
8.1

 
22.2

 
0.1

 

 
30.4

    Total assets
$
916.2

 
$
1,098.4

 
$
97.8

 
$
(940.3
)
 
$
1,172.1

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
3.4

 
$
61.4

 
$
5.3

 
$

 
$
70.1

Accrued expenses
7.7

 
35.6

 
3.2

 

 
46.5

Accrued compensation
4.3

 
30.8

 
3.6

 

 
38.7

Billings in excess of costs and earnings on uncompleted contracts

 
41.9

 
7.3

 

 
49.2

Deferred income tax liability
(0.8
)
 
29.2

 

 

 
28.4

Amounts due to affiliated companies

 
368.8

 
20.7

 
(389.5
)
 

Other current liabilities
2.1

 
10.8

 
1.1

 

 
14.0

    Total current liabilities
16.7

 
578.5

 
41.2

 
(389.5
)
 
246.9

Long-term debt, net of current portion
659.6

 

 
3.3

 

 
662.9

Amounts due to affiliated companies

 

 
24.0

 
(24.0
)
 

Other long-term liabilities
2.8

 
20.1

 
2.3

 

 
25.2

    Total liabilities
679.1

 
598.6

 
70.8

 
(413.5
)
 
935.0

Total stockholders' equity
237.1

 
499.8

 
27.0

 
(526.8
)
 
237.1

    Total liabilities and stockholders' equity
$
916.2

 
$
1,098.4

 
$
97.8

 
$
(940.3
)
 
$
1,172.1


Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended June 30, 2013
(Unaudited)
(in millions)
 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Service revenues
$

 
$
109.3

 
$
0.9

 
$

 
$
110.2

Product sales

 
110.9

 
18.8

 
(4.7
)
 
125.0

  Total revenues

 
220.2

 
19.7

 
(4.7
)
 
235.2

Cost of service revenues

 
82.6

 
0.7

 

 
83.3

Cost of product sales

 
82.8

 
13.4

 
(4.7
)
 
91.5

  Total costs

 
165.4

 
14.1

 
(4.7
)
 
174.8

  Gross profit

 
54.8

 
5.6

 

 
60.4

Selling, general and administrative expenses
1.1

 
42.4

 
3.2

 

 
46.7

Research and development expenses

 
4.5

 
0.3

 

 
4.8

  Operating income (loss) from continuing operations
(1.1
)
 
7.9

 
2.1

 

 
8.9

Other income (expense):
 
 
 
 
 
 
 
 
 
  Interest expense, net
(16.1
)
 

 
(0.2
)
 

 
(16.3
)
  Other income (expense), net

 
0.1

 
0.1

 

 
0.2

  Total other income and expense, net
(16.1
)
 
0.1

 
(0.1
)
 

 
(16.1
)
Income (loss) from continuing operations before income taxes
(17.2
)
 
8.0

 
2.0

 

 
(7.2
)
Provision (benefit) for income taxes from continuing operations
0.2

 
(0.4
)
 
0.1

 

 
(0.1
)
Income (loss) from continuing operations
(17.4
)
 
8.4

 
1.9

 

 
(7.1
)
Income (loss) from discontinued operations
0.1

 
(2.7
)
 
0.1

 

 
(2.5
)
Equity in net income (loss) of subsidiaries
7.7

 
2.0

 

 
(9.7
)
 

Net income (loss)
$
(9.6
)
 
$
7.7

 
$
2.0

 
$
(9.7
)
 
$
(9.6
)
Comprehensive income (loss)
$
(9.6
)
 
$
7.7

 
$
2.0

 
$
(9.7
)
 
$
(9.6
)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Three Months Ended June 29, 2014
(Unaudited)
(in millions)
 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Service revenues
$

 
$
99.9

 
$
1.9

 
$

 
$
101.8

Product sales

 
114.7

 
15.1

 
(2.3
)
 
127.5

  Total revenues

 
214.6

 
17.0

 
(2.3
)
 
229.3

Cost of service revenues

 
76.3

 
1.6

 

 
77.9

Cost of product sales

 
86.6

 
10.7

 
(2.3
)
 
95.0

  Total costs

 
162.9

 
12.3

 
(2.3
)
 
172.9

  Gross profit

 
51.7

 
4.7

 

 
56.4

Selling, general and administrative expenses
4.0

 
38.5

 
3.3

 

 
45.8

Research and development expenses

 
5.6

 
0.3

 

 
5.9

  Operating income (loss) from continuing operations
(4.0
)
 
7.6

 
1.1

 

 
4.7

Other income (expense):
 
 
 
 
 
 
 
 
 
  Interest expense, net
(13.9
)
 
0.1

 
(0.2
)
 

 
(14.0
)
  Loss on extinguishment of debt
(39.1
)
 

 

 

 
(39.1
)
  Other income (expense), net
0.1

 
(0.1
)
 
0.2

 

 
0.2

  Total other income and expense, net
(52.9
)
 

 

 

 
(52.9
)
Income (loss) from continuing operations before income taxes
(56.9
)
 
7.6

 
1.1

 

 
(48.2
)
Provision (benefit) for income taxes from continuing operations
0.2

 
1.1

 
0.3

 

 
1.6

Income (loss) from continuing operations
(57.1
)
 
6.5

 
0.8

 

 
(49.8
)
Income (loss) from discontinued operations

 
(0.1
)
 

 

 
(0.1
)
Equity in net income (loss) of subsidiaries
7.2

 
0.8

 

 
(8.0
)
 

Net income (loss)
$
(49.9
)
 
$
7.2

 
$
0.8

 
$
(8.0
)
 
$
(49.9
)
Comprehensive income (loss)
$
(49.9
)
 
$
7.2

 
$
0.8

 
$
(8.0
)
 
$
(49.9
)




Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended June 30, 2013
(Unaudited)
(in millions)

 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Service revenues
$

 
$
224.8

 
$
1.4

 
$

 
$
226.2

Product sales

 
234.2

 
37.6

 
(9.5
)
 
262.3

Total revenues

 
459.0

 
39.0

 
(9.5
)
 
488.5

Cost of service revenues

 
170.8

 
1.1

 

 
171.9

Cost of product sales

 
173.5

 
26.4

 
(9.5
)
 
190.4

Total costs

 
344.3

 
27.5

 
(9.5
)
 
362.3

Gross profit

 
114.7

 
11.5

 

 
126.2

Selling, general and administrative expenses
3.7

 
86.2

 
6.3

 

 
96.2

Research and development expenses

 
9.0

 
0.7

 

 
9.7

  Operating income (loss)from continuing operations
(3.7
)
 
19.5

 
4.5

 

 
20.3

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense, net
(32.2
)
 

 
(0.3
)
 

 
(32.5
)
Other income (expense), net

 
0.1

 
(0.7
)
 

 
(0.6
)
Total other expense, net
(32.2
)
 
0.1

 
(1.0
)
 

 
(33.1
)
Income (loss) from continuing operations before income taxes
(35.9
)
 
19.6

 
3.5

 

 
(12.8
)
Provision for income taxes from continuing operations
0.5

 
2.0

 
0.2

 

 
2.7

Income (loss) from continuing operations
(36.4
)
 
17.6

 
3.3

 

 
(15.5
)
Income (loss) from discontinued operations
0.1

 
(4.5
)
 

 

 
(4.4
)
Equity in net income (loss) of subsidiaries
16.4

 
3.3

 

 
(19.7
)
 

Net income (loss)
$
(19.9
)
 
$
16.4

 
$
3.3

 
$
(19.7
)
 
$
(19.9
)
Comprehensive income (loss)
$
(19.8
)
 
$
16.4

 
$
3.2

 
$
(19.6
)
 
$
(19.8
)
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)
Six Months Ended June 29, 2014
(Unaudited)
(in millions)

 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Service revenues
$

 
$
198.2

 
$
4.2

 
$

 
$
202.4

Product sales

 
201.0

 
31.7

 
(5.7
)
 
227.0

Total revenues

 
399.2

 
35.9

 
(5.7
)
 
429.4

Cost of service revenues

 
148.7

 
3.3

 

 
152.0

Cost of product sales

 
151.5

 
22.6

 
(5.7
)
 
168.4

Total costs

 
300.2

 
25.9

 
(5.7
)
 
320.4

Gross profit

 
99.0

 
10.0

 

 
109.0

Selling, general and administrative expenses
9.0

 
74.3

 
6.6

 

 
89.9

Research and development expenses

 
10.3

 
0.8

 

 
11.1

  Operating income from continuing operations
(9.0
)
 
14.4

 
2.6

 

 
8.0

Other income (expense):
 
 
 
 
 
 
 
 
 
Interest expense, net
(29.9
)
 
0.1

 
(0.3
)
 

 
(30.1
)
Loss on extinguishment of debt
(39.1
)
 

 

 

 
(39.1
)
Other income (expense), net

 

 
0.4

 

 
0.4

Total other expense, net
(69.0
)
 
0.1

 
0.1

 

 
(68.8
)
Income (loss) from continuing operations before income taxes
(78.0
)
 
14.5

 
2.7

 

 
(60.8
)
Provision (benefit) for income taxes from continuing operations
0.5

 
3.0

 
0.4

 

 
3.9

Income (loss) from continuing operations
(78.5
)
 
11.5

 
2.3

 

 
(64.7
)
Income (loss) from discontinued operations

 
(0.2
)
 

 

 
(0.2
)
Equity in net income (loss) of subsidiaries
13.6

 
2.3

 

 
(15.9
)
 

Net income (loss)
$
(64.9
)
 
$
13.6

 
$
2.3

 
$
(15.9
)
 
$
(64.9
)
Comprehensive income (loss)
$
(65.0
)
 
$
13.6

 
$
2.2

 
$
(15.8
)
 
$
(65.0
)

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2013
(Unaudited)
(in millions)
 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(33.4
)
 
$
36.1

 
$
5.7

 
$

 
$
8.4

Investing activities:
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions, net of cash acquired

 
1.2

 

 

 
1.2

Investment in affiliated companies

 
(30.7
)
 

 
30.7

 

(Increase) decrease in restricted cash

 
0.2

 

 

 
0.2

Capital expenditures
(0.7
)
 
(5.5
)
 
(1.1
)
 

 
(7.3
)
Other, net

 
0.4

 

 

 
0.4

Net cash used in investing activities from continuing operations
(0.7
)
 
(34.4
)
 
(1.1
)
 
30.7

 
(5.5
)
Financing activities:
 
 
 
 
 
 
 
 
 
Repayment of debt

 

 
(0.5
)
 

 
(0.5
)
Cash paid for contingent acquisition consideration

 
(2.1
)
 

 

 
(2.1
)
Financing from affiliated companies
28.6

 

 
2.1

 
(30.7
)
 

Other, net
(0.3
)
 

 

 

 
(0.3
)
Net cash provided by (used in) financing activities from continuing operations
28.3

 
(2.1
)
 
1.6

 
(30.7
)
 
(2.9
)
Net cash flows of continuing operations
(5.8
)
 
(0.4
)
 
6.2

 

 

Net operating cash flows from discontinued operations

 
0.8

 

 

 
0.8

Effect of exchange rate changes on cash and cash equivalents

 

 
(0.1
)
 

 
(0.1
)
Net increase (decrease) in cash and cash equivalents
$
(5.8
)
 
$
0.4

 
$
6.1

 
$

 
$
0.7


Condensed Consolidating Statement of Cash Flows
Six Months Ended June 29, 2014
(Unaudited)
(in millions)
 
Parent Company
 
Guarantors on a Combined Basis
 
Non-Guarantors on a Combined Basis
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$
(31.8
)
 
$
28.7

 
$
(7.2
)
 
$

 
$
(10.3
)
Investing activities:
 
 
 
 
 
 
 
 
 
Cash paid for acquisitions, net of cash acquired

 
(1.6
)
 

 

 
(1.6
)
Investment in affiliated companies

 
(23.2
)
 

 
23.2

 

(Increase) decrease in restricted cash

 
(0.1
)
 

 

 
(0.1
)
  Capital expenditures
(0.5
)
 
(5.2
)
 
(0.9
)
 

 
(6.6
)
Net cash used in investing activities from continuing operations
(0.5
)
 
(30.1
)
 
(0.9
)
 
23.2

 
(8.3
)
Financing activities:
 
 
 
 
 
 
 
 
 
  Proceeds from issuance of long-term debt
618.5

 

 

 

 
618.5

  Payment of long-term debt
(661.5
)
 

 

 

 
(661.5
)
  Debt issuance costs
(8.5
)
 

 

 

 
(8.5
)
  Borrowings under line of credit
41.0

 

 

 

 
41.0

  Repayment of debt

 

 
(0.4
)
 

 
(0.4
)
  Financings from affiliated companies
20.7

 

 
2.5

 
(23.2
)
 

  Other, net
1.5

 

 

 

 
1.5

Net cash provided by (used in) financing activities from continuing operations
11.7

 

 
2.1

 
(23.2
)
 
(9.4
)
Net cash flows of continuing operations
(20.6
)
 
(1.4
)
 
(6.0
)
 

 
(28.0
)
Net operating cash flows from discontinued operations

 
(0.9
)
 

 

 
(0.9
)
Effect of exchange rate changes on cash and cash equivalents

 

 
0.1

 

 
0.1

Net increase (decrease) in cash and cash equivalents
$
(20.6
)
 
$
(2.3
)
 
$
(5.9
)
 
$

 
$
(28.8
)