Balance Sheet Details

3 Months Ended

Mar. 25, 2012

Balance Sheet Details

Balance Sheet Details

Note 4. Balance Sheet Details

The detail of certain assets in the condensed consolidated balance sheets consists of the following (in millions).

Accounts receivable, net

Receivables including amounts due under long-term contracts are summarized as follows (in millions):

	December 25, 2011			March 25, 2012
Billed, current	$	128.7		$	141.4
Unbilled, current	118.6			116.0
Total current accounts receivable	247.3			257.4
Allowance for doubtful accounts	(2.0		)	(1.9		)
Total current accounts receivable, net	245.3			255.5
Unbilled, long-term (included in other assets)	0.3			0.3
Total accounts receivable, net	$	245.6		$	255.8

Unbilled receivables represent the balance of recoverable costs and accrued profit, comprised principally of revenue recognized on contracts for which billings have not been presented to the customer because the amounts were earned but not contractually billable as of the balance sheet date. Retainages receivables were $3.9 million as of December 25, 2011 and $4.9 million as of March 25, 2012 and are included in accounts receivable, net in the condensed consolidated balance sheets.

Inventoried costs, net of progress payments

Inventoried costs are stated at the lower of cost or market. Cost is determined using the average cost or first-in, first-out method and is applied consistently within an operating entity. Inventoried costs primarily relate to work in process under fixed-price contracts using costs as the basis of the percentage-of-completion calculation under the units produced method of revenue recognition. These costs represent accumulated contract costs less the portion of such costs allocated to delivered items. Accumulated contract costs include direct production costs, factory and engineering overhead and production tooling costs. Pursuant to contract provisions of U.S. Government contracts, such customers may have title to, or a security interest in, inventories related to such contracts as a result of advances, performance-based payments, and progress payments. The Company reflects those advances and payments as an offset against the related inventory balances.

The Company regularly reviews inventory quantities on hand, future purchase commitments with its suppliers, and the estimated utility of its inventory. If the Company’s review indicates a reduction in utility below carrying value, it reduces its inventory to a new cost basis.

Inventoried costs consisted of the following components (in millions):

	December 25, 2011			March 25, 2012
Raw materials	$	43.3		$	46.6
Work in process	25.7			28.3
Finished goods	6.9			9.8
Supplies and other	4.0			1.1
Subtotal inventoried costs	79.9			85.8
Less customer advances and progress payments	(3.3		)	(1.8		)
Total inventoried costs	$	76.6		$	84.0