QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging Growth Company | |||||||||||||||||||||||
☒ | ☐ | ☐ |
Page | ||||||||
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
($ in millions, except per share data) | |||||||||||
Revenue | $ | $ | |||||||||
Operating costs and expenses | |||||||||||
Cost of sales | |||||||||||
Selling, general and administrative | |||||||||||
Restructuring costs | |||||||||||
Research and development | |||||||||||
Total operating costs and expenses | |||||||||||
Operating loss | ( | ( | |||||||||
Interest expense and financing fee amortization | ( | ( | |||||||||
Other (expense) income, net | ( | ||||||||||
Loss before income taxes and equity in net loss of affiliates | ( | ( | |||||||||
Income tax benefit | |||||||||||
Loss before equity in net loss of affiliates | ( | ( | |||||||||
Equity in net loss of affiliates | ( | ( | |||||||||
Net loss | $ | ( | $ | ( | |||||||
Less noncontrolling interest in earnings of subsidiary | |||||||||||
Net loss attributable to common shareholders | $ | ( | $ | ( | |||||||
Loss per share | |||||||||||
Basic | $ | ( | $ | ( | |||||||
Diluted | $ | ( | $ | ( |
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
($ in millions) | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Changes in other comprehensive loss, net of tax: | |||||||||||
Pension, SERP, and retiree medical adjustments, net of tax effect of ($ | ( | ||||||||||
Unrealized foreign exchange gain (loss) on intercompany loan, net of tax effect of ($ | ( | ||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax effect of $ | ( | ||||||||||
Reclassification of loss on cash flow hedges to earnings, net of tax effect of $ | |||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Total other comprehensive gain (loss), net of tax | ( | ||||||||||
Less comprehensive income attributable to noncontrolling interest | |||||||||||
Total comprehensive loss | $ | ( | $ | ( |
March 30, 2023 | December 31, 2022 | ||||||||||
($ in millions) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Contract assets, short-term | |||||||||||
Inventory, net | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Right of use assets | |||||||||||
Contract assets, long-term | |||||||||||
Pension assets | |||||||||||
Restricted plan assets | |||||||||||
Deferred income taxes | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Profit sharing | |||||||||||
Current portion of long-term debt | |||||||||||
Operating lease liabilities, short-term | |||||||||||
Advance payments, short-term | |||||||||||
Contract liabilities, short-term | |||||||||||
Forward loss provision, short-term | |||||||||||
Deferred revenue and other deferred credits, short-term | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities, long-term | |||||||||||
Advance payments, long-term | |||||||||||
Pension/OPEB obligation | |||||||||||
Contract liabilities, long-term | |||||||||||
Forward loss provision, long-term | |||||||||||
Deferred revenue and other deferred credits, long-term | |||||||||||
Deferred grant income liability - non-current | |||||||||||
Deferred income taxes | |||||||||||
Other non-current liabilities | |||||||||||
Stockholders’ Equity | |||||||||||
Common Stock, Class A par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
Total stockholders' equity | ( | ( | |||||||||
Noncontrolling interest | |||||||||||
Total equity | ( | ( | |||||||||
Total liabilities and equity | $ | $ | |||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance — December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Employee equity awards | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock forfeitures | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net shares settled | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance — March 30, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | |||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
($ in millions, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance — December 31, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividends declared(a) | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Employee equity awards | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock forfeitures | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Net shares settled | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
ESPP shares issued | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive gain | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance — March 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||
March 30, 2023 | March 31, 2022 | |||||||||||||
Operating activities | ($ in millions) | |||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities | ||||||||||||||
Depreciation and amortization expense | ||||||||||||||
Amortization of deferred financing fees | ||||||||||||||
Accretion of customer supply agreement | ||||||||||||||
Employee stock compensation expense | ||||||||||||||
Loss (gain) from derivative instruments | ( | |||||||||||||
Loss (gain) from foreign currency transactions | ( | |||||||||||||
Loss on disposition of assets | ||||||||||||||
Deferred taxes | ( | ( | ||||||||||||
Pension and other post-retirement plans expense (income) | ( | |||||||||||||
Grant liability amortization | ( | ( | ||||||||||||
Equity in net loss of affiliates | ||||||||||||||
Forward loss provision | ( | |||||||||||||
Gain on settlement of financial instrument | ( | |||||||||||||
Changes in assets and liabilities | ||||||||||||||
Accounts receivable, net | ( | ( | ||||||||||||
Inventory, net | ( | ( | ||||||||||||
Contract assets | ( | ( | ||||||||||||
Accounts payable and accrued liabilities | ||||||||||||||
Profit sharing/deferred compensation | ( | ( | ||||||||||||
Advance payments | ( | ( | ||||||||||||
Income taxes receivable/payable | ||||||||||||||
Contract liabilities | ( | ( | ||||||||||||
Pension plans employer contributions | ( | |||||||||||||
Deferred revenue and other deferred credits | ( | ( | ||||||||||||
Other | ( | ( | ||||||||||||
Net cash used in operating activities | ( | ( | ||||||||||||
Investing activities | ||||||||||||||
Purchase of property, plant and equipment | ( | ( | ||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Financing activities | ||||||||||||||
Payment of principal - repayable investment agreement | ( | |||||||||||||
Borrowings under revolving credit facility | ||||||||||||||
Principal payments of debt | ( | ( | ||||||||||||
Payments on term loans | ( | |||||||||||||
Taxes paid related to net share settlement awards | ( | ( | ||||||||||||
Proceeds from issuance of ESPP stock | ||||||||||||||
Debt issuance and financing costs | ( | |||||||||||||
Dividends paid | ( | |||||||||||||
Net cash used in financing activities | ( | ( | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | |||||||||||||
Net decrease in cash, cash equivalents, and restricted cash for the period | ( | ( | ||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | ||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | $ |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash: | |||||||||||
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
Cash and cash equivalents, beginning of the period | $ | $ | |||||||||
Restricted cash, short-term, beginning of the period | |||||||||||
Restricted cash, long-term, beginning of the period | |||||||||||
Cash, cash equivalents, and restricted cash, beginning of the period | $ | $ | |||||||||
Cash and cash equivalents, end of the period | $ | $ | |||||||||
Restricted cash, short-term, end of the period | |||||||||||
Restricted cash, long-term, end of the period | |||||||||||
Cash, cash equivalents, and restricted cash, end of the period | $ | $ |
For the Three Months Ended | ||||||||||||||
Changes in Estimates | March 30, 2023 | March 31, 2022 | ||||||||||||
(Unfavorable) Favorable Cumulative Catch-up Adjustment by Segment | ||||||||||||||
Commercial | $ | ( | $ | ( | ||||||||||
Defense & Space | ( | |||||||||||||
Aftermarket | ||||||||||||||
Total (Unfavorable) Favorable Cumulative Catch-up Adjustment | $ | ( | $ | ( | ||||||||||
Changes in Estimates on Loss Programs (Forward Loss) by Segment | ||||||||||||||
Commercial | $ | ( | $ | ( | ||||||||||
Defense & Space | ( | |||||||||||||
Aftermarket | ||||||||||||||
Total Changes in Estimates (Forward Loss) on Loss Programs | $ | ( | $ | ( | ||||||||||
Total Change in Estimate | $ | ( | $ | ( | ||||||||||
EPS Impact (diluted per share based upon applicable forecasted effective tax rate) | $ | ( | $ | ( |
March 30, 2023 | December 31, 2022 | ||||||||||
Trade receivables | $ | $ | |||||||||
Other | |||||||||||
Less: allowance for credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
March 30, 2023 | December 31, 2022 | Change | |||||||||
Contract assets | $ | $ | $ | ||||||||
Contract liabilities | ( | ( | |||||||||
Net contract assets (liabilities) | $ | 182.8 | $ | 145.8 | $ | 37.0 |
March 31, 2022 | December 31, 2021 | Change | |||||||||
Contract assets | $ | $ | $ | ||||||||
Contract liabilities | ( | ( | |||||||||
Net contract assets (liabilities) | $ | 92.2 | $ | 56.2 | $ | 36.0 |
For the Three Months Ended | ||||||||
Revenue | March 30, 2023 | March 31, 2022 | ||||||
Contracts with performance obligations satisfied over time | $ | $ | ||||||
Contracts with performance obligations satisfied at a point in time | ||||||||
Total Revenue | $ | $ |
For the Three Months Ended | ||||||||
Customer | March 30, 2023 | March 31, 2022 | ||||||
Boeing | $ | $ | ||||||
Airbus | ||||||||
Other | ||||||||
Total Revenue | $ | $ |
For the Three Months Ended | ||||||||
Location | March 30, 2023 | March 31, 2022 | ||||||
United States | $ | $ | ||||||
International | ||||||||
United Kingdom | ||||||||
Other | ||||||||
Total International | ||||||||
Total Revenue | $ | $ |
Remaining in 2023 | 2024 | 2025 | 2026 and After | |||||||||||
Unsatisfied performance obligations | $ | $ | $ | $ |
March 30, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process(1) | |||||||||||
Finished goods | |||||||||||
Product inventory | |||||||||||
Capitalized pre-production | |||||||||||
Total inventory, net | $ | $ |
March 30, 2023 | December 31, 2022 | ||||||||||
Land | $ | $ | |||||||||
Buildings (including improvements) | |||||||||||
Machinery and equipment | |||||||||||
Tooling | |||||||||||
Capitalized software | |||||||||||
Construction-in-progress | |||||||||||
Total | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Finance lease cost: | |||||||||||
Amortization of assets | |||||||||||
Interest on lease liabilities | |||||||||||
Total net lease cost | $ | $ |
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | $ | $ | |||||||||
Financing cash flows from finance leases | $ | $ | |||||||||
ROU assets obtained in exchange for lease obligations: | |||||||||||
Operating leases | $ | $ | |||||||||
March 30, 2023 | December 31, 2022 | ||||||||||
Finance leases: | |||||||||||
Property and equipment, gross | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Property and equipment, net | $ | $ |
2023 | 2024 | 2025 | 2026 | 2027 | 2028 and thereafter | Total Lease Payments | Less: Imputed Interest | Total Lease Obligations | |||||||||||||||||||||
Operating Leases | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||
Financing Leases | $ | $ | $ | $ | $ | $ | $ | $ | ( | $ |
March 30, 2023 | December 31, 2022 | ||||||||||
Prepaid expenses | $ | $ | |||||||||
Income tax receivable | |||||||||||
Other assets - short-term | |||||||||||
Total other current assets | $ | $ |
March 30, 2023 | December 31, 2022 | ||||||||||
Deferred financing | |||||||||||
Deferred financing costs | $ | $ | |||||||||
Less: Accumulated amortization - deferred financing costs | ( | ( | |||||||||
Deferred financing costs, net | $ | $ | |||||||||
Other | |||||||||||
Supply agreements (1) | $ | $ | |||||||||
Equity in net assets of affiliates | |||||||||||
Restricted cash - collateral requirements | |||||||||||
Rotables | |||||||||||
Other | |||||||||||
Total other long-term assets | $ | $ |
Changes in Goodwill Balance | |||||||||||||||||||||||||||||
Balance at | Balance at | ||||||||||||||||||||||||||||
Segment | December 31, 2022 | Acquisitions | Adjustments/Other | Currency Exchange | March 30, 2023 | ||||||||||||||||||||||||
Commercial | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Defense & Space | $ | $ | $ | (1) | $ | $ | |||||||||||||||||||||||
Aftermarket | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
March 30, 2023 | December 31, 2022 | ||||||||||
Intangible assets | |||||||||||
Favorable leasehold interests | |||||||||||
Developed technology asset | |||||||||||
Customer relationships intangible asset | |||||||||||
Total intangible assets | $ | $ | |||||||||
Less: Accumulated amortization - favorable leasehold interest | ( | ( | |||||||||
Accumulated amortization - developed technology asset | ( | ( | |||||||||
Accumulated amortization - customer relationship | ( | ( | |||||||||
Intangible assets, net | $ | $ |
Year | Customer relationships | Favorable leasehold interest | Developed Technology | Total | ||||||||||
remaining in 2023 | $ | $ | $ | $ | ||||||||||
2024 | ||||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
Weighted average amortization period |
March 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
Senior secured term loan B (including current portion) | $ | $ | (2) | $ | $ | (2) | ||||||||||||||||||||
Senior secured first lien notes due 2025 | (1) | (1) | ||||||||||||||||||||||||
Senior secured second lien notes due 2025 | (1) | (1) | ||||||||||||||||||||||||
Senior notes due 2026 | (1) | (1) | ||||||||||||||||||||||||
Senior notes due 2028 | (1) | (1) | ||||||||||||||||||||||||
Senior notes due 2029 | (1) | $ | (1) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Notional amount | Other assets | Other liabilities | ||||||||||||||||||
March 30, 2023 | December 31, 2022 | March 30, 2023 | December 31, 2022 | March 30, 2023 | December 31, 2022 | |||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Foreign currency exchange contracts | $ | $ | $ | $ | $ | $ | ||||||||||||||
Total derivatives at fair value | $ | $ | $ | $ |
Three Months Ended | ||||||||
March 30, 2023 | March 31, 2022 | |||||||
Recognized in total other comprehensive loss: | ||||||||
Foreign currency exchange contracts | $ | $ | ( |
Three Months Ended | ||||||||
March 30, 2023 | March 31, 2022 | |||||||
Foreign currency exchange contracts: | ||||||||
Other income (expense) | $ | $ | ( |
March 30, 2023 | December 31, 2022 | ||||||||||||||||
Current | Noncurrent | Current | Noncurrent | ||||||||||||||
Senior secured term loan B | $ | $ | $ | $ | |||||||||||||
Senior secured first lien notes due 2025 | |||||||||||||||||
Senior secured second lien notes due 2025 | |||||||||||||||||
Senior notes due 2026 | |||||||||||||||||
Senior notes due 2028 | |||||||||||||||||
Senior notes due 2029 | |||||||||||||||||
Present value of finance lease obligations | |||||||||||||||||
Other | |||||||||||||||||
Total | $ | $ | $ | $ |
Defined Benefit Plans | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Components of Net Periodic Pension Expense (Income) | March 30, 2023 | March 31, 2022 | ||||||||||||
Service cost | $ | $ | ||||||||||||
Interest cost | ||||||||||||||
Expected return on plan assets | ( | ( | ||||||||||||
Amortization of net loss | ||||||||||||||
Settlement loss (gain)(1) | ( | |||||||||||||
Net periodic pension expense (income) | $ | $ | ( |
Other Benefits | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Components of Other Benefit Expense (Income) | March 30, 2023 | March 31, 2022 | ||||||||||||
Service cost | $ | $ | ||||||||||||
Interest cost | ||||||||||||||
Amortization of prior service cost | ( | ( | ||||||||||||
Amortization of net gain | ( | ( | ||||||||||||
Net periodic other benefit expense | $ | ( | $ | ( |
For the Three Months Ended | |||||||||||||||||||||||||||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
Income | Shares | Per Share Amount | Income | Shares | Per Share Amount | ||||||||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||||||||||||
Loss available to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
Income allocated to participating securities | |||||||||||||||||||||||||||||||||||
Net loss | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Diluted potential common shares | |||||||||||||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
As of | As of | ||||||||||
March 30, 2023 | December 31, 2022 | ||||||||||
Pension | $ | ( | $ | ( | |||||||
SERP/Retiree medical | |||||||||||
Derivatives - foreign currency hedge | ( | ||||||||||
Foreign currency impact on long-term intercompany loan | ( | ( | |||||||||
Currency translation adjustment | ( | ( | |||||||||
Total accumulated other comprehensive loss | $ | ( | $ | ( |
Balance, December 31, 2022 | $ | ||||
Charges (release) to costs and expenses | ( | ||||
Payouts | ( | ||||
Exchange rate | |||||
Balance, March 30, 2023 | $ |
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
Kansas Development Finance Authority bond | $ | $ | |||||||||
Interest income | |||||||||||
Foreign currency (losses) gains (1) | ( | ||||||||||
(Loss) gain on foreign currency forward contract | ( | ||||||||||
Loss on sale of accounts receivable | ( | ( | |||||||||
Pension (expense) income (2) | ( | ||||||||||
Excise tax on pension assets reversion (3) | ( | ||||||||||
Other | |||||||||||
Total | $ | ( | $ |
Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
Segment Revenues | |||||||||||
Commercial | $ | $ | |||||||||
Defense & Space | |||||||||||
Aftermarket | |||||||||||
$ | $ | ||||||||||
Segment Operating Income (Loss) | |||||||||||
Commercial(1) | $ | ( | $ | ( | |||||||
Defense & Space(2) | |||||||||||
Aftermarket(3) | |||||||||||
$ | ( | $ | |||||||||
SG&A | ( | ( | |||||||||
Research and development | ( | ( | |||||||||
Total operating loss | $ | ( | $ | ( |
Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
($ in millions) | |||||||||||
Revenue | $ | 1,431.4 | $ | 1,174.7 | |||||||
Cost of sales | 1,432.2 | 1,139.9 | |||||||||
Gross profit | (0.8) | 34.8 | |||||||||
Selling, general and administrative | 77.4 | 64.5 | |||||||||
Restructuring costs | 6.3 | 0.2 | |||||||||
Research and development | 10.6 | 12.3 | |||||||||
Operating loss | (95.1) | (42.2) | |||||||||
Interest expense and financing fee amortization | (72.4) | (58.9) | |||||||||
Other (expense) income, net | (117.4) | 37.7 | |||||||||
Loss before income taxes and equity in net loss of affiliates | (284.9) | (63.4) | |||||||||
Income tax benefit | 4.3 | 11.0 | |||||||||
Loss before equity in net loss of affiliates | (280.6) | (52.4) | |||||||||
Equity in net loss of affiliates | (0.7) | (0.4) | |||||||||
Net loss | $ | (281.3) | $ | (52.8) |
Three Months Ended | ||||||||||||||
Model | March 30, 2023 | March 31, 2022 | ||||||||||||
B737 | 95 | 60 | ||||||||||||
B747 | — | 1 | ||||||||||||
B767 | 8 | 8 | ||||||||||||
B777 | 7 | 5 | ||||||||||||
B787 | 6 | 3 | ||||||||||||
Total Boeing | 116 | 77 | ||||||||||||
A220(1) | 13 | 18 | ||||||||||||
A320 Family | 142 | 155 | ||||||||||||
A330 | 9 | 6 | ||||||||||||
A350 | 12 | 15 | ||||||||||||
Total Airbus | 176 | 194 | ||||||||||||
Total Business and Regional Jets | 54 | 50 | ||||||||||||
Total | 346 | 321 |
Three Months Ended | |||||||||||
Prime Customer | March 30, 2023 | March 31, 2022 | |||||||||
($ in millions) | |||||||||||
Boeing | $ | 921.1 | $ | 647.2 | |||||||
Airbus | 267.6 | 303.9 | |||||||||
Other | 242.7 | 223.6 | |||||||||
Total net revenues | $ | 1,431.4 | $ | 1,174.7 |
Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
($ in millions) | |||||||||||
Segment Revenues | |||||||||||
Commercial | $ | 1,148.5 | $ | 938.4 | |||||||
Defense & Space | 188.4 | 158.5 | |||||||||
Aftermarket | 94.5 | 77.8 | |||||||||
$ | 1,431.4 | $ | 1,174.7 | ||||||||
Segment Operating Income (Loss) | |||||||||||
Commercial | $ | (45.5) | $ | (3.4) | |||||||
Defense & Space | 19.2 | 20.0 | |||||||||
Aftermarket | 19.2 | 18.0 | |||||||||
$ | (7.1) | $ | 34.6 | ||||||||
SG&A | (77.4) | (64.5) | |||||||||
Research and development | (10.6) | (12.3) | |||||||||
Total operating loss | $ | (95.1) | $ | (42.2) |
For the Three Months Ended | |||||||||||
March 30, 2023 | March 31, 2022 | ||||||||||
($ in millions) | |||||||||||
Net cash used in operating activities | $ | (46.2) | $ | (270.2) | |||||||
Net cash used in investing activities | (22.9) | (27.7) | |||||||||
Net cash used in financing activities | (20.1) | (28.1) | |||||||||
Effect of exchange rate change on cash and cash equivalents | 0.9 | (0.8) | |||||||||
Net decrease in cash, cash equivalents and restricted cash for the period | (88.3) | (326.8) | |||||||||
Cash, cash equivalents, and restricted cash beginning of period | 678.4 | 1,498.4 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 590.1 | $ | 1,171.6 |
Summarized Statements of Income | Three months ended March 30, 2023 | ||||||||||
($ millions) | Holdings and Spirit | Spirit NC | |||||||||
Net Sales to unrelated parties | $ | 1,130.5 | $ | — | |||||||
Net Sales to Non-Guarantor Subsidiaries | 4.4 | 12.0 | |||||||||
Gross profit on sales to unrelated parties | 78.9 | — | |||||||||
Gross (loss) profit on sales to Non-Guarantor Subsidiaries | (2.8) | 0.7 | |||||||||
Loss from continuing operations | (168.2) | (1.7) | |||||||||
Net loss | $ | (168.2) | $ | (1.7) |
Summarized Balance Sheets | Holdings and Spirit | Spirit NC | |||||||||||||||||||||
($ millions) | March 30, 2023 | December 31, 2022 | March 30, 2023 | December 31, 2022 | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalents | $ | 426.8 | $ | 487.7 | $ | — | $ | — | |||||||||||||||
Receivables due from Non-Guarantor Subsidiaries | 92.6 | 85.9 | 19.6 | 15.7 | |||||||||||||||||||
Receivables due from unrelated parties | 300.3 | 242.7 | — | 0.6 | |||||||||||||||||||
Contract assets | 465.6 | 449.8 | — | — | |||||||||||||||||||
Inventory, net | 864.0 | 869.1 | 119.5 | 103.7 | |||||||||||||||||||
Other current assets | 39.1 | 6.2 | — | — | |||||||||||||||||||
Total current assets | $ | 2,188.4 | $ | 2,141.4 | $ | 139.1 | $ | 120.0 | |||||||||||||||
Loan receivable from Non-Guarantor Subsidiaries | 320.2 | 355.2 | — | — | |||||||||||||||||||
Property, plant and equipment, net | 1,469.3 | 1,503.1 | 197.6 | 205.2 | |||||||||||||||||||
Pension assets, net | 65.6 | 249.2 | — | — | |||||||||||||||||||
Other non-current assets | 295.0 | 314.7 | 5.1 | 5.2 | |||||||||||||||||||
Total non-current assets | $ | 2,150.1 | $ | 2,422.2 | $ | 202.7 | $ | 210.4 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Accounts payable to Non-Guarantor Subsidiaries | $ | 112.4 | $ | 134.7 | $ | 4.8 | $ | 6.6 | |||||||||||||||
Accounts payable to unrelated parties | 672.7 | 681.0 | 31.5 | 26.4 | |||||||||||||||||||
Accrued expenses | 402.7 | 282.3 | 1.8 | 1.5 | |||||||||||||||||||
Current portion of long-term debt | 47.0 | 67.6 | 1.1 | 1.1 | |||||||||||||||||||
Other current liabilities | 418.4 | 328.7 | 0.5 | 0.5 | |||||||||||||||||||
Total current liabilities | $ | 1,653.2 | $ | 1,494.3 | $ | 39.7 | $ | 36.1 | |||||||||||||||
Long-term debt | 3,800.8 | 3,778.5 | 4.1 | 4.4 | |||||||||||||||||||
Contract liabilities, long-term | 229.5 | 245.3 | — | — | |||||||||||||||||||
Forward loss provision, long-term | 179.4 | 215.4 | — | — | |||||||||||||||||||
Other non-current liabilities | 387.8 | 478.0 | 4.6 | 4.7 | |||||||||||||||||||
Total non-current liabilities | $ | 4,597.5 | $ | 4,717.2 | $ | 8.7 | $ | 9.1 |
Period (1) | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Repurchased Under the Plans or Programs (2) | |||||||||||||||||||
($ in millions other than per share amounts) | |||||||||||||||||||||||
January 1, 2023 - February 2, 2023 | 268 | $32.49 | — | $925.0 | |||||||||||||||||||
February 3, 2023 - March 2, 2023 | 82,472 | $35.93 | — | $925.0 | |||||||||||||||||||
March 3, 2023 - March 30, 2023 | 54,267 | $33.40 | — | $925.0 | |||||||||||||||||||
Total | 137,007 | $34.96 | — | $925.0 |
Exhibit Number | Exhibit | Incorporated by Reference to the Following Documents | ||||||||||||
Amendment 51 to Special Business Provisions (SBP) BCA-MS-65530-0016, dated January 4, 2023, by and between Spirit AeroSystems, Inc. and The Boeing Company. | * | |||||||||||||
Amended and Restated Employee Stock Purchase Plan, effective October 21, 2022. | * | |||||||||||||
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002. | * | |||||||||||||
Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002. | * | |||||||||||||
Certification of Chief Executive Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002. | ** | |||||||||||||
Certification of Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002. | ** | |||||||||||||
101.INS* | Inline XBRL Instance Document- the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | * | ||||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | * | ||||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | * | ||||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | * | ||||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | * | ||||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | * | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||||||||
* | Filed herewith. | |||||||||||||
** | Furnished herewith. | |||||||||||||
† | Indicates management contract or compensation plan or arrangement | |||||||||||||
†† | Indicates that portions of the exhibit (indicated by asterisks) have been omitted as such information is (i) not material and (ii) would likely cause competitive harm to the Registrant if publicly disclosed. |
Signature | Title | Date | ||||||||||||
/s/ Mark J. Suchinski | Senior Vice President and Chief Financial | May 3, 2023 | ||||||||||||
Mark J. Suchinski | Officer (Principal Financial Officer) |
Signature | Title | Date | ||||||||||||
/s/ Damon Ward | Vice President, Corporate Controller | May 3, 2023 | ||||||||||||
Damon Ward | (Principal Accounting Officer) |
Amendment Number | Description | Effective Date | Approval | ||||||||
1 | Revise Company name from Mid-Western Aircraft Systems Incorporated to Spirit AeroSystems throughout document. Update Attachments 1, 2, 4, 14 and 16. | 2/23/2006 | H. McCormick R. Stone | ||||||||
2 | Incorporate CCNs as listed in Amendment 2 Attachment A, includes addition of new section 12.19, modification to sections 3.4.9, 12.16 and 32.0. Updates to Attachments 1, 2, 6, 7, 15, 16, 19 and 20. | 4/11/2007 | H. McCormick J. Edwards | ||||||||
3 | Incorporate CCNs as listed in Amendment 3, Attachment A. Updates to Attachments 1, 2, 7, 14, 15, 16 and 22. | 11/28/2007 | H. McCormick J. Edwards | ||||||||
4 | Incorporate CCNs as listed in Amendment 4, Attachment A. Updates to Attachments 1, 2, 7, 14, 15, 16. Incorporate Attachment 1A per CCN 508, 1328. | 7/8/2008 | S. Hu W. Wallace | ||||||||
5 | Incorporate CCNs as listed in Amendment 5, Attachment A, includes addition of new section 12.3.1.1 Updates to Attachments 1, 2, 7, 14, 15, 16 and 20. | 6/22/2009 | S. Hu R. Stone | ||||||||
6 | Incorporate CCNs as listed in Amendment 6, Attachment A. Updates to Attachments 1, 2, 4, 7, 9, 10, 14 and 16. Incorporate Attachment 9 per CCN 2385. | 11/23/2010 | S. Hu M. Milan | ||||||||
7 | Incorporate CCNs as listed in Amendment 7, Attachment A, includes addition of new section 12.13.3.1. Updates to Attachments 1, 2, 4, 7, 9, 14 and 16. Incorporate Attachment 1B per CCN 4212 and Attachment 23 per the 767-2C MOA. | 7/28/2011 | S. Hu M. Milan | ||||||||
8 | Incorporate CCNs as listed in Amendment 8, Attachment A, includes revisions to section 7.9 and 12.13.1.1. Updates to Attachments 1, 2, 4, 7, 9, 14, 15 and 16. | 8/16/2013 | C. Howell M. Milan | ||||||||
9 | Incorporate Attachment 25 - 737 Max Titanium Inner Wall Agreement. | 9/4/2014 | E. Flagel M. Milan | ||||||||
10 | Incorporate Attachment 26-737 Derailment. | 9/2/2014 | B. Folden R. Ast | ||||||||
11 | Incorporate Attachment 27 -737-MAX Non-Recurring Agreement, and Attachment 28 737/747/767/777 Pricing Agreement. Updates Section 4.1, Attachment 4, Section B.1, Attachments 9 and 15 | 3/10/2015 | C. Howell R. Ast | ||||||||
12 | Delete and replace Attachment 25, Section 3.0. | 4/9/2015 | K. Drawsky R. Ast | ||||||||
13 | Incorporate CCNs as listed in Amendment 13, Attachment A. Updates to Attachments 1, 2, 7, 9, 14, and 16. | 1/4/2016 | L. Taylor K. Leyba | ||||||||
14 | Incorporate Attachment 25, Addendum 1. | 4/21/2015 | D. Blaylock R. Grant | ||||||||
15 | NULL | NULL | NULL | ||||||||
16 | NULL | NULL | NULL | ||||||||
17 | Incorporate Attachment 29, 777X Non-Recurring Agreement. | 12/23/2015 | A. Lucker E. Bauer | ||||||||
18 | NULL | NULL | NULL | ||||||||
19 | NULL | NULL | NULL | ||||||||
20 | 737 MAX Inner Wall. | 12/17/2015 | S. Garcia-Deleone J.Reed | ||||||||
21 | Revisions to Attachment 27, 737 MAX Non-Recurring Agreement. | 5/9/2016 | D. Blaylock R. Grant | ||||||||
22 | 737 MAX Composite Inner Wall Line Movement. | 11/2/2016 | D. Blaylock E. Bossler |
23 | 737 MAX 9 INITIAL and CIW Line [*****] Tooling Incentive Agreement. | 12/16/2016 | D. Blaylock E. Bossler | ||||||||
24 | Incorporate CCNs as listed in Amendment 23, Attachment A. Updates to Attachments 1, 2, 7, 9, and 14. | 12/20/2016 | L. Taylor K. Leyba | ||||||||
25 | Revisions to Attachment 27, 737 MAX Non-Recurring. | 3/16/2017 | D. Blaylock E. Bossler | ||||||||
26 | Revisions to Attachment 27, 737 MAX Non-Recurring Agreement. | 3/23/2017 | D. Blaylock E. Bossler | ||||||||
27 | Incorporate Attachment 30, “737 NG / MAX Vapor Barrier Agreement”, Updates to Attachment 1 and 9. | 3/31/2017 | B. Edwards K. Clark | ||||||||
28 | Revisions to Attachment 29, 777X NRE Agreement. | 6/22/2017 | K. O'Connell C. Green | ||||||||
29 | Revisions to Attachment 27, 737 MAX Non-Recurring Agreement. | 7/20/2017 | D. Blaylock E. Bossler | ||||||||
30 | Delete and Replace SBP Sections 4.1, 4.1.1, 5.1.1, 5.2.1, 7.2, 8.0, 12.11, and 12.13.1.1 and SBP Attachments 1, 1B, 10 Section A10.2.10, 15, 16, 22, 27, and 29. Delete and Reserve SBP Attachments 1C, 20, and 28. Incorporate SBP Attachment 1D and 31. | 9/22/2017 | B. Edwards W. Wilson | ||||||||
31 | Revisions to Attachment 27, 737-8 Rate Tooling Incentive Agreement. | 10/18/2017 | D. Blaylock E. Bossler | ||||||||
32 | Revisions to Attachment 27, 737 MAX Non-Recurring Agreement. | 11/15/2017 | D. Blaylock E. Bossler | ||||||||
33 | Revisions to Attachment 27, 737 MAX Non-Recurring Agreement. | 11/30/2017 | D. Blaylock E. Bossler | ||||||||
34 | Revisions to Attachment 27, 737-10 Non-Recurring Non-Tooling. | 2/23/2018 | D. Blaylock E. Bossler | ||||||||
35 | Revisions to Attachment 27, 737-9 Rate Tooling [*****]. | 4/18/2018 | D. Blaylock E. Bossler | ||||||||
36 | Revisions to Attachment 27, 737-10 Wing NRE | 6/20/2018 | D. Blaylock E. Bossler | ||||||||
37 | Incorporation of new Sections: 3.3.4.10 767 One Piece SOW Tooling, 3.3.7 767 One Piece SOW Non-Recurring Pricing, 3.4.2.2 Delivery Point and Schedule for 767 One Piece SOW and 3.8 767 One Piece Statement of Work Special Provisions. Updates to Sections 7.1, Attachment 1 and 9. | 8/17/2018 | H. Langowski R. Grant | ||||||||
38 | Revision to Attachment 27, 737 MAX BBJ8, BBJ7, and 737-10 SOW. | 11/1/2018 | T. Willis E. Bossler | ||||||||
39 | 4.1.1 is altered. A new section 4.7 is added. Attachment 1 (excluding the Exhibits) is deleted and replaced in its entirety. A new Attachment 32 “737 Value Engineering Cost Sharing” is added. Attachment 1 Exhibits B, B.1, B.2, C, C.1, C.2, D, D.1, D.2, E.1, E.2, F, F.1, and F.2 are deleted and replaced in their entirety. A new Attachment 1 Exhibit C.3 is added. Attachment 1B is deleted in its entirety. | 11/2/2018 | K. Shipley E. Bossler | ||||||||
40 | SBP Section 4.7 is deleted and replaced in its entirety. SBP Section 7.2 is deleted and replaced in its entirety. A new SBP Section 7.5.3 is added. SBP Attachment 1 (including Exhibits B, B.1, B,2. D, D.1, D.2, F, F.1, F.2, and G) is deleted and replaced in its entirety. SBP Attachment 1B is added and marked “Reserved”. SBP Attachment 15 is deleted and replaced in its entirety. SBP Attachment 16 (including its Exhibit) is deleted and replaced in its entirety. SBP Attachment 31 is deleted, replaced in its entirety, and marked “Reserved”. SBP Attachment 32 (including its Exhibit A) is deleted and replaced in its entirety. All of the above is accordance with the agreements as set forth in the Collective Resolution 2.0 Memorandum of Agreement (the “CR 2.0 MOA”), dated December 21, 2018 Concurrently with the CR 2.0 MOA, the Parties also executed that certain Settlement and Release Agreement, dated December 21, 2018, pertaining to the release and settlement of warranty and various other claims | 1/30/2019 | T. McGuigan E. Bossler |
41 | Revisions to Attachment 29, 777-9 Rate Tooling. | 3/27/2019 | R. Velau D. Currie | ||||||||
42 | Reserved | TBD | TBD TBD | ||||||||
43 | Revisions to Attachment 1 Product Pricing. | 5/22/2019 | K. Doolin R. Grant | ||||||||
44 | Section 12.13.2 is deleted and replaced in its entirety. | 7/19/2019 | B. Nix E. Bossler | ||||||||
45 | Delete and Replace: -Section 3.8.b -Attachment 1, Exhibits D.1 and E.2 | 10/10/2019 | K. Doolin R. Grant | ||||||||
46 | Section 24.0 deleted and replaced. Section 24.1 incorporated. | 10/3/2019 | K. Doolin E. Bossler | ||||||||
47 | SPB Attachment 1 Section 7.b) is deleted and replaced in its entirety. SBP Attachment 1 Section 8.c) is deleted and replaced in its entirety. | 5/5/2020 | A. Klotz L. Hampton | ||||||||
48 | SBP Sections 5.2 and 5.2.1 are deleted and replaced in their entirety. Attachment 1, Sections 1.b, 1.c, 2.a.i, 2.b, 3, 2.c, and 7.a.ii, paragraph 1 are deleted and replaced in their entireties. Table 2 in Attachment 1, Sections 2.a, is deleted and replaced in its entirety. Attachment 1, Sections 2.a.vi, 2.a.vii, and 2.a.viii are deleted in their entireties. Attachment 2 is updated to included CCNs 12888, 12504R2, and 12568. Attachment 16, Sections b and c are deleted and replaced in their entireties. Attachment 23, Section XVIII.A., is deleted and replaced in its entirety. Attachment 29, Section 5.2.2 is deleted and replaced in its entirety. Attachment 29, Section 10.1.1 is deleted in its entirety. Attachment 29, Exhibit A is deleted and replaced in its entirety. | 1/18/2021 | L. Doyle E. Bossler | ||||||||
49 | SBP Section 12.13.1.1 is deleted and replaced in its entirety. SBP Attachment 16 is deleted and replaced in its entirety. | 3/11/2022 | J. Palmer L. Hampton | ||||||||
50 | Attachment 29, Section 5.3.1 is deleted and replaced in its entirety. | 9/16/2022 | J. Owings K. Snyder | ||||||||
51 | Attachment 1, Section 7.b is deleted and replaced in its entirety. Revisions to Attachment 15, 777 Constraint Matrix. | 1/4/2023 | J. Owings K. Snyder |
Models | Monthly | Wichita | Mix | Structures | Engine - Protection Rates | ||||||||||||||||||||||||||||||
747 | [*****] Units | [*****] Units | [*****] | Units Separation | Skin Polish | [*****] | [*****] | [*****] | [*****] | ||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | ||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | ||||||||||||||||||||||||||
767 | [*****] Units | [*****] Units | MIX | Units Separation | Skin Polish | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||||
777 | [*****] Units | [*****] Units | MIX | Units Separation | Skin Polish | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | |||||||||||||||||||||||||
[*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] | [*****] |
LEGEND | [*****] | ||||||||||||||||||||||
[*****] | |||||||||||||||||||||||
[*****] | |||||||||||||||||||||||
[*****] | |||||||||||||||||||||||
[*****] | |||||||||||||||||||||||
/s/ Joshua Owings | /s/ Kimberly Snyder | ||||||||||
Signature | Signature | ||||||||||
Joshua Owings | |||||||||||
Kimberly Snyder | |||||||||||
Printed name | Printed name | ||||||||||
Procurement Agent | |||||||||||
Contract Specialist | |||||||||||
Title | Title | ||||||||||
1/4/2023 | January 4, 2023 | ||||||||||
Date | Date |
/s/ Thomas C. Gentile III | |||||
Thomas C. Gentile III | |||||
President and Chief Executive Officer |
/s/ Mark J. Suchinski | |||||
Mark J. Suchinski | |||||
Senior Vice President and Chief Financial Officer |
/s/ Thomas C. Gentile III | |||||
Thomas C. Gentile III | |||||
President and Chief Executive Officer |
/s/ Mark J. Suchinski | |||||
Mark J. Suchinski | |||||
Senior Vice President and Chief Financial Officer |
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (16.6) | $ 0.1 |
Unrealized exchange (loss) on intercompany loan, tax | (0.4) | 0.5 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 0.0 | 0.0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ 0.0 | $ 0.0 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Mar. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Shareholders' equity | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury Stock, Shares | 41,587,480 | 41,587,480 |
Class A [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 105,151,627 | 105,252,421 |
Class B [Member] | ||
Shareholders' equity | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 0 | 0 |
Organization and Basis of Interim Presentation |
3 Months Ended |
---|---|
Mar. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Interim Presentation | Organization, Basis of Interim Presentation and Recent Developments Unless the context otherwise indicates or requires, as used in this Quarterly Report on Form 10-Q, references to “we,” “us,” “our,” and the “Company” refer to Spirit AeroSystems Holdings, Inc. and its consolidated subsidiaries. References to “Spirit” refer only to our subsidiary, Spirit AeroSystems, Inc., and references to “Holdings” refer only to Spirit AeroSystems Holdings, Inc. The Company provides manufacturing and design expertise in a wide range of fuselage, propulsion, and wing products and services for aircraft original equipment manufacturers (“OEM”) and operators through its subsidiaries including Spirit. The Company's headquarters are in Wichita, Kansas, with manufacturing and assembly facilities in Tulsa, Oklahoma; Prestwick, Scotland; Wichita, Kansas; Kinston, North Carolina; Subang, Malaysia; Saint-Nazaire, France; Biddeford, Maine; Woonsocket, Rhode Island; Belfast, Northern Ireland; Casablanca, Morocco; and Dallas, Texas. The accompanying unaudited interim condensed consolidated financial statements include the Company’s financial statements and the financial statements of its majority-owned or controlled subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the instructions to Form 10-Q and Article 10 of Regulation S-X. The Company’s fiscal quarters are 13 weeks in length. Since the Company’s fiscal year ends on December 31, the number of days in the Company’s first and fourth quarters varies slightly from year to year. All intercompany balances and transactions have been eliminated in consolidation. As part of the monthly consolidation process, the Company’s international subsidiaries that have functional currencies other than the U.S. dollar are translated to U.S. dollars using the end-of-month translation rate for balance sheet accounts and average period currency translation rates for revenue and income accounts. The subsidiaries in Prestwick, Scotland and Subang, Malaysia use the British pound as their functional currency. All other foreign subsidiaries and branches use the U.S. dollar as their functional currency. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments and elimination of intercompany balances and transactions) considered necessary to fairly present the results of operations for the interim period. The results of operations for the three months ended March 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. In connection with the preparation of the condensed consolidated financial statements, the Company evaluated subsequent events through the date the financial statements were issued. The interim financial statements should be read in conjunction with the audited consolidated financial statements, including the notes thereto, included in the Company’s 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2023 (the “2022 Form 10-K”). The Company's significant accounting policies are described in Note 3 Summary of Significant Accounting Policies to our consolidated financial statements in the 2022 Form 10-K.
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Adoption of New Standard (Notes) |
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Mar. 30, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50). The amendments in the update require additional qualitative and quantitative disclosure about supplier finance programs. The guidance does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. ASU No. 2022-04 is effective on a retrospective basis for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for an amended disclosure requirement related to certain rollforward information, which is effective on a prospective basis for fiscal years beginning after December 15, 2023. The adoption of this guidance did not have a significant impact on the Company's consolidated financial statements, and the Company does not expect this guidance to have a material impact prospectively. |
Changes in Estimates |
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Changes in Estimates [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change In Estimate [Text Block] | . Changes in Estimates The Company has a periodic forecasting process in which management assesses the progress and performance of the Company’s programs. This process requires management to review each program’s progress by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated revenues and costs for the accounting contracts (and options if applicable), and any outstanding contract matters. Risks and opportunities include but are not limited to management’s judgment about the cost associated with the Company’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product), and any other program requirements. Due to the span of years it may take to completely satisfy the performance obligations for the accounting contracts (and options, if any) and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs is subject to many variables and, accordingly, is subject to change based upon judgment. The Company’s estimate of costs depends on maintaining continuing, uninterrupted production at its manufacturing facilities and its suppliers’ facilities. Interruptions in deliveries of or increased prices for components or raw materials used in the Company's products, or labor disruptions, could delay production and/or materially adversely affect the Company's business. When adjustments in estimated total consideration or estimated total cost are required, any changes from prior estimates for fully satisfied performance obligations are recognized in the current period as a cumulative catch-up adjustment for the inception-to-date effect of such changes. Cumulative catch-up adjustments are driven by several factors including production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work, and contract modifications. Cumulative catch-up adjustments are primarily related to changes in the estimated margin of contracts with performance obligations that are satisfied over time. Changes in estimates could materially adversely affect the Company’s future financial performance. While certain increases in raw material costs can generally be passed on to the Company’s customers, in most instances the Company must fully absorb cost overruns. Some of the factors that may cause the costs incurred in fulfilling contracts to vary substantially from current estimates are technical problems, production rate changes, materials shortages, supplier difficulties, realization targets, existence of and execution to recovery plans caused by these factors, and multiple other events, including those identified in Item 1A. "Risk Factors" of the 2022 Form 10-K. The risk applies in particular to products such as the B787, A220, and A350, which are in forward loss positions. During the first quarter ended March 30, 2023, the Company recognized unfavorable changes in estimates of $121.9, which included net forward loss charges of $110.0, and unfavorable cumulative catch-up adjustments related to periods prior to the first quarter of 2023 of $11.9. The forward losses in the first quarter were primarily driven by supplier price negotiations and estimated supply chain costs including certain non-recurring cost estimates, schedule revisions, and foreign exchange headwinds on the A220 program, schedule changes and other supply chain cost growth on the A350 program, additional labor and supply chain cost growth on the B787 program, and increased cost projections on the CL650 program. The unfavorable cumulative catch-up adjustments primarily relate to the Company's preliminary assessment of the impact to production costs including factory disruption related to the notice of escapement issued to Boeing for the B737 Vertical Fin Attach Fittings and supply chain cost growth. During the first quarter ended March 31, 2022, the Company recognized unfavorable changes in estimates of $50.0, which included net forward loss charges of $23.8, and unfavorable cumulative catch-up adjustments related to periods prior to the first quarter of 2022 of $26.2. The unfavorable cumulative catch-up adjustments were primarily driven by increased estimates for supply chain, raw material, and other costs on the Boeing B737 MAX program. The forward losses in the quarter ended March 31, 2022 primarily related to the estimated impact of production rate decreases and costs of rework on the Boeing B787 program, and increased costs of quality and production rate decreases on the A350 program. Changes in estimates are summarized below:
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Accounts Receivable and Allowance for Credit Losses Accounts Receivable and Allowance for Credit Loss (Notes) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | . Accounts Receivable and Allowance for Credit Losses Accounts Receivable, net Accounts receivable represent the Company’s unconditional rights to consideration, subject to the payment terms of the contract, for which only the passage of time is required before payment. Unbilled receivables are reflected under contract assets on the Condensed Consolidated Balance Sheets. See also Allowance for Credit Losses, below. Accounts receivable, net consists of the following:
The Company has agreements (through its subsidiaries) to sell, on a revolving basis, certain trade accounts receivable balances with Boeing, Airbus Group SE and its affiliates (collectively, “Airbus”), and Rolls-Royce PLC and its affiliates (collectively, “Rolls-Royce”) to third-party financial institutions. These programs were primarily entered into as a result of customers seeking payment term extensions with the Company and they continue to allow the Company to monetize the receivables prior to their payment date, subject to payment of a discount. No guarantees are delivered under the agreements. The Company's ability to continue using such agreements is primarily dependent upon the strength of the applicable customer’s financial condition. Transfers under these agreements are accounted for as sales of receivables resulting in the receivables being derecognized from the Company's Condensed Consolidated Balance Sheets. For the three months ended March 30, 2023, $849.4 of accounts receivable were sold via these arrangements. The proceeds from these sales of receivables are included in cash from operating activities in the Condensed Consolidated Statements of Cash Flows. The recorded net loss on sale of receivables was $11.2 for the three months ended March 30, 2023 and is included in Other income and expense. See Note 21 Other Income (Expense), Net. Allowance for Credit Losses During the three months ended March 30, 2023, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material.
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Contract with customer, asset and liability (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
contract with customer, asset and liability [Text Block] | Contract Assets and Contract Liabilities Contract assets primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. Contract assets, current are those that are expected to be billed to our customer within 12 months. Contract assets, long-term are those that are expected to be billed to our customer over periods greater than 12 months. No impairments to contract assets were recorded for the period ended March 30, 2023 or the period ended March 31, 2022. See also Note 5 Accounts Receivable and Allowance for Credit Losses. Contract liabilities are established for cash received in excess of revenues recognized and are contingent upon the satisfaction of performance obligations. Contract liabilities primarily consist of cash received on contracts for which revenue has been deferred since the receipts are in excess of transaction price resulting from the allocation of consideration based on relative standalone selling price to future units (including those under option that the Company believes are likely to be exercised) with prices that are lower than standalone selling price. These contract liabilities will be recognized earlier if the options are not fully exercised, or immediately, if the contract is terminated prior to the options being fully exercised.
For the period ended March 30, 2023, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $25.8 of revenue that was included in the contract liability balance at the beginning of the period.
For the period ended March 31, 2022, the increase in contract assets reflects the net impact of more over time revenue recognition in relation to billed revenues during the period. The decrease in contract liabilities reflects the net impact of less deferred revenues recorded in excess of revenue recognized during the period. The Company recognized $26.5 of revenue that was included in the contract liability balance at the beginning of the period.
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Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] |
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Revenue (Notes) |
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Revenue from Contract with Customer [Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22 Segment Information. The following tables show disaggregated revenues for the periods ended March 30, 2023 and March 31, 2022:
The following table disaggregates revenue by major customer:
The following table disaggregates revenue based upon the location where control of products are transferred to the customer:
Remaining Performance Obligations Unsatisfied, or partially unsatisfied, performance obligations that are expected to be recognized in the future are noted in the table below. The Company expects options to be exercised in addition to the amounts presented below:
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Inventory |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | InventoryInventory consists of raw materials used in the production process, work-in-process, which is direct material, direct labor, overhead and purchases, and capitalized pre-production costs. Raw materials are stated at lower of cost (principally on an actual or average cost basis) or net realizable value. Capitalized pre-production costs include certain contract costs, including applicable overhead, incurred before a product is manufactured on a recurring basis. These costs are typically amortized over a period that is consistent with the satisfaction of the underlying performance obligations to which these relate.
(1)Work-in-process inventory includes direct labor, direct material, overhead, and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized over time using an input method. For the periods ended March 30, 2023 and December 31, 2022, work-in-process inventory includes $308.6 and $392.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the periods. Product inventory, summarized in the table above, is shown net of valuation reserves of $137.7 and $136.8 as of March 30, 2023 and December 31, 2022, respectively. Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for the three months ended March 30, 2023 and March 31, 2022 includes period expense of $43.3 and $49.8, respectively, for excess capacity production costs related to temporary B737 MAX, A320 and A220 production schedule changes. Cost of sales also includes abnormal costs related to temporary workforce adjustments as a result of COVID-19 production pause, net of the U.S. employee retention credit and U.K. government subsidies for the three months ended March 30, 2023 and March 31, 2022 of $0.0 and $9.5, respectively.
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Property, Plant and Equipment |
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Property, Plant and Equipment, net | Property, Plant and Equipment, net Property, plant and equipment, net consists of the following:
Capitalized interest was $1.6 and $1.4 for the three months ended March 30, 2023 and March 31, 2022, respectively. Repair and maintenance costs are expensed as incurred. The Company recognized repair and maintenance costs of $42.7 and $34.9 for the three months ended March 30, 2023 and March 31, 2022, respectively. The Company capitalizes certain costs, such as software coding, installation, and testing, that are incurred to purchase or to create and implement internal-use computer software. Depreciation expense related to capitalized software was $6.1 and $5.0 for the three months ended March 30, 2023 and March 31, 2022, respectively. |
Leases (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure [Text Block] | The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in right-of-use (“ROU”) assets (long-term), short-term operating lease liabilities, and long-term operating lease liabilities on the Company’s Condensed Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, current maturities of long-term debt, and long-term debt. ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the Condensed Consolidated Balance Sheets. The aggregate amount of lease cost for leases with a term of 12 months or less is not material. The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease components as a single lease component. A portfolio approach is applied to effectively account for the ROU assets and liabilities for those specific leases referenced above. The Company does not have any material leases containing variable lease payments or residual value guarantees. The Company also does not have any material subleases. The Company currently has operating and finance leases for items such as manufacturing facilities, corporate offices, manufacturing equipment, transportation equipment, and vehicles. The majority of the Company's active leases have remaining lease terms that range between less than one year to 18 years, some of which include options to extend the leases for up to 30 years, and some of which include options to terminate the leases within one year. Components of lease expense:
Supplemental cash flow information related to leases was as follows:
Supplemental balance sheet information related to leases:
The weighted average remaining lease term as of March 30, 2023 for operating and finance leases was 32.4 years and 5.1 years, respectively. The weighted average discount rate as of March 30, 2023 for operating and finance leases was 5.8% and 5.4%, respectively. The weighted average remaining lease term as of December 31, 2022 for operating and finance leases was 31.7 years and 5.3 years, respectively. The weighted average discount rate as of December 31, 2022 for operating and finance leases was 5.8% and 5.0%, respectively. See Note 15 Debt for current and non-current finance lease obligations. As of March 30, 2023, remaining maturities of lease liabilities were as follows:
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Goodwill Disclosure [Text Block] | Goodwill is summarized as follows:
(1) As a result of certain purchase price allocation adjustments recorded during the purchase price accounting measurement period based on additional information obtained, the goodwill resulting from the T.E.A.M., Inc. Acquisition was adjusted by $0.6, from $7.1 that was reported at December 31, 2022, to $7.7 as of March 30, 2023. See also Note 25 Acquisitions. The total goodwill value includes no accumulated impairment loss in any of the periods presented. The Company assesses goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. For the period ended March 30, 2023, there were no events or circumstances which would require the Company to update its goodwill impairment analysis.
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Advance Payments and Deferred Revenue/Credits |
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Advance Payments And Deferred Revenue Credits [Abstract] | |
Advance Payments | Advance Payments Advances on the B787 Program. Boeing has made advance payments to Spirit under the B787 Special Business Provisions and General Terms Agreement (collectively, the “B787 Supply Agreement”) that are required to be repaid to Boeing by way of offset against the purchase price for future shipset deliveries. Advance repayments were initially scheduled to be spread evenly over the remainder of the first 1,000 B787 shipsets delivered to Boeing. On April 8, 2014, Spirit signed a memorandum of agreement with Boeing that suspended advance repayments related to the B787 program for a period of twelve months beginning April 1, 2014. Repayment recommenced on April 1, 2015, and any repayments that otherwise would have become due during such twelve-month period will offset the purchase price for shipsets 1001 through 1120. On December 21, 2018, Spirit signed a memorandum of agreement with Boeing that again suspended the advance repayments beginning with line unit 818. The advance repayments will resume at a lower rate of $0.45 per shipset at line number 1135 and continue through line number 1605. In the event Boeing does not take delivery of a sufficient number of shipsets to repay the full amount of advances prior to the termination of the B787 program or the B787 Supply Agreement, any advances not then repaid will be applied against any outstanding payments then due by Boeing to us, and any remaining balance will be repaid in annual installments of $27 due on December 15th of each year until the advance payments have been fully recovered by Boeing. As of March 30, 2023, the amount of advance payments received from Boeing under the B787 Supply Agreement and not yet repaid was approximately $202.6. Advances on the B737 Program. In an effort to minimize the disruption to Spirit's operations and its supply chain, Spirit and Boeing entered into a Memorandum of Agreement on April 12, 2019 (the "2019 MOA"), which included the terms and conditions for an advance payment to be made from Boeing to Spirit in the amount of $123, which was received during the third quarter of 2019. Spirit and Boeing entered into a Memorandum of Agreement on February 6, 2020, which extended the repayment date of the $123 advance received by Spirit under the 2019 MOA to 2022. $0.0 and $30.8 of advance payments received from Boeing were repaid in the three months ended March 30, 2023 and March 31, 2022, respectively. There was no balance due as of March 30, 2023. Other. The Advance payments, short-term line item on the Condensed Consolidated Balance Sheets for the period ended March 30, 2023 includes $18.9 related to payments received from an Aftermarket segment customer for contracted work that was impacted by the sanctions imposed by the U.S. and other governments on Russia following its invasion of Ukraine.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The FASB’s authoritative guidance on fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. At March 30, 2023, the Company’s long-term debt includes a senior secured term loan and senior notes described further under Note 15 Debt. The estimated fair value of the Company’s debt obligations is based on the quoted market prices for such obligations or the historical default rate for debt with similar credit ratings. The following table presents the carrying amount and estimated fair value of long-term debt. See also Note 14 Derivative and Hedging Activities, and Note 16 Pension and Other Post-Retirement Benefits.
(1)Level 1 Fair Value hierarchy (2)Level 2 Fair Value hierarchy
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Derivative and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative and Hedging Activities | Derivative and Hedging Activities Derivatives Accounted for as Hedges Cash Flow Hedges – Foreign Currency Forward Contract The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British Pound Sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through December 2023. The following table summarizes the notional amounts (representing the gross contract/notional amount of the derivatives outstanding) and fair values of the derivative instruments in the Condensed Consolidated Balance Sheets as of March 30, 2023, and December 31, 2022. The foreign currency exchange contracts are measured within Level 1 of the Fair Value hierarchy. See Note 13 Fair Value Measurements.
Changes in the fair value of cash flow hedges are recorded in AOCI and recorded in earnings in the period in which the hedged transaction settles. The gain (loss) recognized in AOCI associated with our hedging transactions is presented in the following table:
The following table summarizes the gains/(losses) associated with our hedging transactions reclassified from AOCI to earnings:
Within the next 12 months, the Company expects to recognize a gain of $3.5 in earnings related to the foreign currency forward contracts. As of March 30, 2023, the maximum term of the hedged forecasted transaction was 9 months. Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. Derivatives Not Accounted for as Hedges During the three months ended March 30, 2023, all foreign currency forward contracts were designated as hedges, and the Company applied hedge accounting to all foreign currency forward contracts. During the three months ended March 31, 2022, the Company entered into foreign currency forward contracts in the amount of $291.5 to minimize the risk of currency exchange rate movements on the Company's planned settlement of the repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy. During the three-month period ended March 31, 2022, these foreign currency forward contracts were settled and new contracts were entered into in the amount of $293.7, which were also settled during the period. The Company did not designate these forward contracts as hedges or apply hedge accounting to the forward contracts. For the three months ended March 31, 2022, the Company recorded a net gain of $2.2 to other income on the Condensed Consolidated Statements of Operations related to the foreign currency forward contracts.
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Debt | Debt Total debt shown on the Condensed Consolidated Balance Sheets is comprised of the following:
Credit Agreement On October 5, 2020, Spirit entered into a term loan credit agreement (the “Credit Agreement”) providing for a $400.0 senior secured term loan B credit facility with the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent. On October 5, 2020, Spirit borrowed the full $400.0 of initial term loans available under the Credit Agreement. On November 15, 2021, the Company entered into a first refinancing, incremental assumption and amendment agreement (the “November 2021 Amendment”) to the Credit Agreement. The November 2021 Amendment provides for, among other things, (i) the refinancing of the $397.0 aggregate principal amount of term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the November 2021 Amendment with term loans in an equal principal amount with a lower interest rate (the “Repriced Term Loans”) and (ii) an incremental term loan facility of $203.0 in aggregate principal amount with the same terms as the Repriced Term Loans. On November 23, 2022, the Company entered into a second refinancing amendment ("the "November 2022 Amendment") to the Credit Agreement (the Credit Agreement as amended by the November 2021 Amendment and the November 2022 Amendment, the “Amended Credit Agreement”). The November 2022 Amendment provides for, among other things, the refinancing of the $594.0 aggregate principal amount of term loans outstanding under the Credit Agreement immediately prior to the effectiveness of the November 2022 Amendment (the “Existing Term Loans”) with term loans in an equal principal amount with a later maturity date (the “New Term Loans”) The obligations under the Amended Credit Agreement are guaranteed by Holdings and Spirit AeroSystems North Carolina, Inc., a wholly-owned subsidiary of the Company (“Spirit NC” and, collectively, the “Guarantors”) and each existing and future, direct and indirect, wholly-owned material domestic subsidiary of Spirit, subject to certain customary exceptions. The obligations are secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. As of March 30, 2023, the outstanding balance of the Credit Agreement was $592.5 and the carrying value was $573.0. As of March 30, 2023, the Company was in compliance with all covenants in the Credit Agreement. First Lien 2029 Notes On November 23, 2022, Spirit entered into an Indenture (the “First Lien 2029 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $900.0 aggregate principal amount of its 9.375% Senior Secured First Lien Notes due 2029 (the “First Lien 2029 Notes”). The First Lien 2029 Notes are guaranteed by the Guarantors, and each existing and future, direct and indirect, wholly-owned material domestic subsidiary of the Company, subject to certain customary exceptions. The First Lien 2029 Notes are secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. As of March 30, 2023, the outstanding balance of the First Lien 2029 Notes was $900.0 and the carrying value was $887.3. First Lien 2025 Notes On October 5, 2020, Spirit entered into an Indenture (the “First Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $500.0 aggregate principal amount of its 5.500% Senior Secured First Lien Notes due 2025 (the “First Lien 2025 Notes"). The First Lien 2025 Notes are guaranteed by the Guarantors and were initially secured by a first-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. As of March 30, 2023, the outstanding balance of the First Lien 2025 Notes was $20.8 and the carrying value was $20.8. 2026 Notes In June 2016, the Company issued $300.0 in aggregate principal amount of 3.850% Senior Notes due June 15, 2026 (the “2026 Notes”) with interest payable, in cash in arrears, on June 15 and December 15 of each year, beginning December 15, 2016. On October 5, 2020, Spirit entered into a Fourth Supplemental Indenture (the “Fourth Supplemental Indenture”), by and among Spirit, the Company, Spirit NC and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with 2026 Notes. Under the Fourth Supplemental Indenture, the holders of the 2026 Notes were granted security on an equal and ratable basis with the holders of the First Lien 2025 Notes and the secured parties under the Credit Agreement. As of March 30, 2023, the outstanding balance of the 2026 Notes was $300.0 and the carrying value was $298.9. Second Lien 2025 Notes On April 17, 2020, Spirit entered into an Indenture (the “Second Lien 2025 Notes Indenture”), by and among Spirit, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent, in connection with Spirit’s offering of $1,200.0 aggregate principal amount of its 7.500% Senior Secured Second Lien Notes due 2025 (the “Second Lien 2025 Notes”). The Second Lien 2025 Notes mature on April 15, 2025 and bear interest at a rate of 7.500% per year payable semiannually in cash in arrears on April 15 and October 15 of each year. The first interest payment date was October 15, 2020. The Second Lien 2025 Notes are guaranteed by the Guarantors and secured by a second-priority lien with respect to substantially all assets of Spirit and the Guarantors, subject to certain exceptions. As of March 30, 2023, the outstanding balance of the Second Lien 2025 Notes was $1,200.0 and the carrying value was $1,191.9. 2028 Notes On May 30, 2018, Spirit entered into an Indenture (the “2018 Indenture”) by and among Spirit, the Company and The Bank of New York Mellon Trust Company, N.A., as trustee in connection with Spirit’s offering of $300.0 aggregate principal amount of its Senior Floating Rate Notes due 2021 (the “Floating Rate Notes”), $300.0 aggregate principal amount of its 3.950% Senior Notes due 2023 (the “2023 Notes”) and $700.0 aggregate principal amount of its 4.600% Senior Notes due 2028 (the “2028 Notes” and, together with the Floating Rate Notes and the 2023 Notes, the “2018 Notes”). Holdings guaranteed Spirit’s obligations under the 2018 Notes on a senior unsecured basis. On February 24, 2021, Spirit redeemed the outstanding $300.0 principal amount of the Floating Rate Notes. As of March 30, 2023, the outstanding balance of the Floating Rate Notes was $0.0. On November 23, 2022, Spirit redeemed the outstanding $300.0 principal amount of the 2023 Notes. As of March 30, 2023, the outstanding balance of the 2023 Notes was $0.0. As of March 30, 2023, the outstanding balance of the 2028 Notes was $700.0 and the carrying value was $696.1. As of March 30, 2023, the Company was in compliance with all covenants contained in the indentures governing the First Lien 2029 Notes, First Lien 2025 Notes, 2026 Notes, Second Lien 2025 Notes, and 2028 Notes.
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Pension and Other Post-Retirement Benefits Defined Benefit Plan (Notes) |
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Retirement Benefits [Text Block] | Pension and Other Post-Retirement Benefits
(1) Includes a $64.6 settlement charge for the Company's Pension Value Plan ("PVP A") during the three months ended March 30, 2023, and a $1.4 settlement credit for PVP B (as defined below) related to final asset distribution in the three months ended March 31, 2022. The components of net periodic pension expense (income) and other benefit expense, other than the service cost component, are included in Other (expense) income, net in the Company's Condensed Consolidated Statements of Operations. See Note 21 Other Income (Expense), Net. As disclosed in the Company's 2022 Form 10-K, effective October 1, 2021, the Company spun off a portion of the existing PVP A, to a new plan called PVP B ("PVP B"). As part of the PVP B plan termination process, a lump sum offering was provided during 2021 for PVP B participants and the final asset distribution was completed in the first quarter of 2022. At March 30, 2023, a pension reversion asset of $60.5 is recorded on the Restricted plan assets line item on the Company’s Condensed Consolidated Balance Sheets. Restricted plan assets are expected to be reduced over the next six years as they are distributed to employees under a qualified compensation and benefit program. Restricted plan assets are valued at fair value with gain or loss on fair value adjustments recognized within other income. The underlying investments' fair value measurement levels under the FASB's authoritative guidance on fair value measurements are Level 2, see Note 13 Fair Value Measurements. Separately, during the three months ended March 30, 2023, the Company received an excess plan asset reversion of $179.5 of cash from PVP A. This transaction was accounted for as a negative contribution, and is included on the Pension plans employer contributions line item on the Condensed Consolidated Statements of Cash Flows for the three months ended March 30, 2023. Excise tax of $35.9 related to the reversion of excess plan assets was separately recorded to the Other (expense) income, net line item on the Company's Condensed Consolidated Statements of Operations for the three months ended March 30, 2023. See also Note 21 Other Income (Expense), Net. As disclosed in the Company's 2022 Form 10-K, in July 2022 the Company adopted and communicated to participants a plan to terminate the PVP A. During the three months ended March 30, 2023, the Company recognized non-cash, pre-tax non-operating accounting charges of $64.6 related to the plan termination, primarily reflecting the accounting for a group annuity purchase made in the first quarter of 2023, which resulted in a settlement charge related to the accelerated recognition of the actuarial losses for the PVP A plan that were previously included in the Accumulated other comprehensive loss line item in the Stockholders' Equity section of the Company's Condensed Consolidated Balance Sheets. Employer Contributions |
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Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The process for calculating the Company’s income tax expense involves estimating actual current taxes due plus assessing temporary differences arising from differing treatment for tax and accounting purposes that are recorded as deferred tax assets and liabilities. Deferred tax assets are periodically evaluated to determine their recoverability and whether a valuation allowance is necessary. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income exclusive of reversing taxable temporary differences to outweigh objective negative evidence of recent financial reporting losses. Based on these criteria and the relative weighting of both the positive and negative evidence available, and in particular the activity surrounding our prior earnings history, including the forward losses previously recognized in the U.S., the Company has recorded a valuation allowance against U.S. deferred tax assets. Increases in the valuation allowances recorded against U.S. deferred tax assets in the three month period ended March 30, 2023 were $32.1. This is comprised of ($0.2) related to other comprehensive income ("OCI") and $32.3 from continuing operations. As of March 30, 2023, the total net U.S. deferred tax asset before the valuation allowance was $468.6 and the total net U.S. valuation allowance was $467.3. The net U.S. deferred tax asset after valuation allowances was $1.3. The Company has determined a valuation allowance on certain U.K. deferred tax assets is needed based upon cumulative losses generated in the U.K. Increases in the valuation allowances recorded against U.K. deferred tax assets in the three month period ended March 30, 2023 were $18.7. This is comprised of ($1.5) related to other comprehensive income ("OCI") and $20.2 from continuing operations, including utilization of net operating losses. As of March 30, 2023, the total net U.K. deferred tax asset before the valuation allowance was $300.9 and the total net U.K. valuation allowance was $297.9. The net U.K. deferred tax liability after valuation allowance was $3.0. The Company files income tax returns in all jurisdictions in which it operates. The Company establishes reserves to provide for additional income taxes that may be due upon audit. These reserves are established based on management’s assessment as to the potential exposure attributable to permanent tax adjustments and associated interest. All tax reserves are analyzed quarterly and adjustments made as events occur that warrant modification. In general, the Company records income tax expense each quarter based on its estimate as to the full year’s effective tax rate. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits with respect to share-based compensation, finalizing amounts in income tax returns filed, finalizing audit examinations for open tax years and expiration of statutes of limitations, and changes in tax law. The 1.5% effective tax rate for the three months ended March 30, 2023 differs from the 17.4% effective tax rate for the same period of 2022 primarily due to lower research and development credits and changes in the valuation allowances recorded on U.S. and U.K. deferred tax assets, offset by foreign rate differences and lower executive compensation subject to Section 162(m). As the Company is currently reporting a pre-tax loss for the three months ended March 30, 2023, an increase in the effective tax rate results in an increase of income tax benefits while a decrease in the rate results in a reduction of income tax benefits. As allowed by the Coronavirus Aid, Relief, and Economic Security Act, the Company has filed a claim for a pre-tax employee retention credit of $18.8 for 2020 and $1.0 for 2021. The outstanding pre-tax employee retention credit refund claim as of March 30, 2023 was $2.6. The Company's federal audit is conducted under the Internal Revenue Service Compliance Assurance Process ("CAP") program and is essentially complete for the 2020 tax year. The Company will continue to participate in the CAP program for 2021 through 2023. The CAP program's objective is to resolve issues in a timely, contemporaneous manner and eliminate the need for a lengthy post-filing examination. The Company has an open tax audit in the Kingdom of Morocco for tax years ending prior to the Company's ownership of the Moroccan legal entity. There are ongoing audits in other jurisdictions that are not material to the financial statements and the Company believes appropriate provisions for all outstanding tax issues have been made for all jurisdictions and years.
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Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity Earnings per Share Calculation Basic net income per share is computed using the weighted-average number of outstanding shares of Common Stock during the measurement period. Diluted net income per share is computed using the weighted-average number of outstanding shares of Common Stock and, when dilutive, potential outstanding shares of Common Stock during the measurement period. Diluted earnings per share includes any dilutive impact of service-based restricted stock units, director restricted stock units, restricted stock awards, and performance-based restricted stock units. The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. As of March 30, 2023, no treasury shares have been reissued or retired. The total authorization amount remaining under the current share repurchase program is approximately $925.0. During the three-month period ended March 30, 2023, the Company did not repurchase any shares of its Common Stock under this share repurchase program. Share repurchases are currently on hold. The Credit Agreement imposes restrictions on the Company’s ability to repurchase shares. The following table sets forth the computation of basic and diluted earnings per share:
Included in the outstanding Common Stock were 0.1 million and 0.5 million of issued but unvested shares at March 30, 2023 and March 31, 2022, respectively, which are excluded from the basic Earnings Per Share ("EPS") calculation. Common shares of 0.9 million and 1.1 million, respectively, were excluded from diluted EPS as a result of incurring a net loss for the three months ended March 30, 2023 and March 31, 2022, as the effect would have been antidilutive. Additionally, diluted EPS for the three months ended March 30, 2023 and March 31, 2022 excludes 0.2 million and 0.2 million shares, respectively, that may be dilutive common shares in the future, but were not included in the computation of diluted EPS because the effect was either antidilutive or the performance condition was not met. Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss is summarized by component as follows:
Amortization or settlement cost recognition of the pension plans’ net gain/(loss) reclassified from accumulated other comprehensive loss and realized into costs of sales and selling, general and administrative on the Condensed Consolidated Statements of Operations was ($64.0) and $0.6 for the three months ended March 30, 2023 and March 31, 2022, respectively.
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Commitments, Contingencies and Guarantees |
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Commitments Contingencies And Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure | 20. Commitments, Contingencies and Guarantees Litigation On February 10, 2020, February 24, 2020, and March 24, 2020, three separate private securities class action lawsuits were filed against the Company in the U.S. District Court for the Northern District of Oklahoma, its Chief Executive Officer, Tom Gentile III, former Chief Financial Officer, Jose Garcia, and former Controller (principal accounting officer), John Gilson. On April 20, 2020, the Class Actions were consolidated by the court (the “Consolidated Class Action”), and on July 20, 2020, the plaintiffs filed a Consolidated Class Action Complaint which added Shawn Campbell, the Company’s former Vice President for the B737NG and B737 MAX program, as a defendant. Allegations in the Consolidated Class Action include (i) violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder against the Company and Messrs. Gentile, Garcia and Gilson, (ii) violations of Section 20(a) of the Exchange Act against the individual defendants, and (iii) violations of Section 10(b) of the Exchange Act and Rule 10b-5(a) and (c) promulgated thereunder against all defendants. On June 11, 2020, a shareholder derivative lawsuit (the “Derivative Action 1”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the U.S. District Court for the Northern District of Oklahoma. Allegations in the Derivative Action 1 include (i) breach of fiduciary duty, (ii) abuse of control, and (iii) gross mismanagement. On October 5, 2020, a shareholder derivative lawsuit (the “Derivative Action 2” and, together with Derivative Action 1, the “Derivative Actions”) was filed against the Company (as nominal defendant), all members of the Company’s Board of Directors, and Messrs. Garcia and Gilson in the Eighteenth Judicial District, District Court of Sedgwick County, Kansas. Allegations in the Derivative Action 2 include (i) breach of fiduciary duty, (ii) waste of corporate assets, and (iii) unjust enrichment. The facts underlying the Consolidated Class Action and Derivative Actions relate to the accounting process compliance independent review (the “Accounting Review”) discussed in the Company’s January 30, 2020 press release and described under Management's Discussion and Analysis of Financial Condition and Results of Operations - Accounting Review in Part II, Item 7 of the Annual Report on Form 10-K for the year ended December 31, 2019, and its resulting conclusions. The Company voluntarily reported to the SEC the determination that, with respect to the third quarter of 2019, the Company did not comply with its established accounting processes related to potential third quarter contingent liabilities received after the quarter-end. On March 24, 2020, the Staff of the SEC Enforcement Division informed the Company that it had determined to close its inquiry without recommending any enforcement action against the Company. In addition, the facts underlying the Consolidated Class Action and Derivative Actions relate to the Company’s disclosures regarding the B737 MAX grounding and Spirit’s production rate (and related matters) after the grounding. On September 18, 2020, the Company and individual defendants filed a motion to dismiss the Consolidated Class Action. That motion was granted by the U.S. District Court on January 7, 2022, which denied leave to amend and dismissed the Consolidated Class Action with prejudice. On February 4, 2022, the plaintiffs in the Consolidated Class Action appealed this decision to the Tenth Circuit Court of Appeals (the "Appellate Court"). Briefings have been filed and oral argument was held before the Appellate Court on November 18, 2022. The Derivative Actions remain stayed at this point. The Company and the individual defendants have denied, and continue to deny, the allegations in the Consolidated Class Action and the Derivative Actions. Spirit is also involved in litigation with its former Chief Executive Officer ("CEO") related to a disputed violation of restrictive covenants in his retirement agreement. On October 19, 2021, the U.S. District Court for the District of Kansas (the "District Court") ruled in favor of the former CEO and awarded him $44.8 for benefits withheld in connection with the disputed violation. The Company has appealed this decision to the Appellate Court. On February 27, 2023, the Appellate Court issued an opinion reversing the District Court decision and concluding that the former CEO had violated the terms of the restrictive covenant, and remanded for the District Court to address in the first instance whether the restrictive covenant is enforceable under state law. On March 13, 2023, the CEO file a Petition for Panel Rehearing, which was denied on March 28, 2023 following Spirit's response to the Petition. On April 13, 2023, the District Court issued a briefing schedule as to the issue remanded by the Appellate Court with briefing to be completed by May 15, 2023. A liability for the full amount of the award issued on October 19, 2021, plus accrued interest through March 28, 2023, was recognized and remains accrued in the Condensed Consolidated Balance Sheets as of December 31, 2022 and March 30, 2023. From time to time, in the ordinary course of business and similar to others in the industry, the Company receives requests for information from government agencies in connection with their regulatory or investigational authority. Such requests can include subpoenas or demand letters for documents to assist the government in audits or investigations. The Company reviews such requests and notices and takes appropriate action. Additionally, the Company is subject to federal and state requirements for protection of the environment, including those for disposal of hazardous waste and remediation of contaminated sites. As a result, the Company is required to participate in certain government investigations regarding environmental remediation actions. In addition to the items addressed above, from time to time, the Company is subject to, and is presently involved in, litigation, legal proceedings, or other claims arising in the ordinary course of business. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the meritorious legal defenses available, the Company believes that, on a basis of information presently available, none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. Customer and Vendor Claims The Company receives, and is currently subject to, customer and vendor claims arising in the ordinary course of business, including, but not limited to, those related to product quality and late delivery. The Company accrues for matters when losses are deemed probable and reasonably estimable. In evaluating matters for accrual and disclosure purposes, the Company takes into consideration multiple factors including without limitation its historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of an unfavorable outcome, and the severity of any potential loss. Any accruals deemed necessary are reevaluated at least quarterly and updated as matters progress over time. The Company has evaluated and refined management’s original estimate of costs related to rework on the B787 aircraft, including a preliminary assessment related to rework on the forward section of the fuselage, for which the Company identified an additional fit and finish issue in the prior year. The Company continues to coordinate with Boeing for necessary rework. The Company cannot reasonably estimate the amount of any potential claims related to this issue at this time. On June 25, 2022 and February 28, 2023, the Company received separate notices of claims from a key customer seeking cost recovery primarily related to alleged product quality issues associated with the Company’s performance from 2018 through June of 2022 as well as onsite manufacturing support costs incurred by the customer. The Company has continued to evaluate the details included within these claims, however, the Company cannot currently reasonably estimate the amount of a range of possible losses due to various reasons, including, among others: (i) that there is uncertainty as to the outcome of these claims, (ii) that there are significant factual, commercial, and/or legal issues to be resolved, and (iii) the availability of data required to complete an assessment of the potential loss. While the final outcome of these matters cannot be predicted with certainty, considering, among other things, the factual and legal defenses available, it is the opinion of the Company that none of these items, when finally resolved, will have a material adverse effect on the Company’s long-term financial position or liquidity. However, it is possible that the Company’s results of operations in a specific period could be materially affected by one or more of these other matters. Contingencies In the first quarter of 2023, the Company updated its estimated cost to satisfy all customer firm orders on the B787, A350, and A220 production programs. Based on forecasted backlog and rates of production, each of these programs anticipates production will extend beyond the period of time for which the Company has recorded forward losses. The Company has recorded forward losses on the A220 and A350 programs for forecasted production through the end of 2025 and has recognized forward losses on the B787 program for forecasted production through May of 2026. As a result of the Company’s assessment of existing cost estimates and the impact macroeconomic factors may have on the Company's cost to complete all firm orders, as well as ongoing discussions with its customers, the Company believes it is reasonably possible one or more of these programs could be performed at a loss incremental to forward losses previously recorded for production outside of the timeframe highlighted above, and the cumulative range of such loss across these programs is between $0.0 and $220.0 million. As the Company does not currently believe incremental losses are evident on any of these programs, the Company has not recognized any such losses in its financial results for the period ended March 30, 2023. On April 12, 2023, the Company issued a notice of escapement to Boeing related to the quality issue on the B737 Vertical Fin Attach Fitting. The Company's preliminary assessment of the potential impacts to production costs expected to be incurred will result in a total gross margin impact of approximately $31.0 million. As a component of this total preliminary estimate, and included in Note 4, Changes in Estimate, the Company has included an estimate related to the impact to production costs including factory disruption as a negative cumulative catch-up adjustment of approximately $7.0 million within its results for the period ended March 30, 2023. The Company expects that it will incur additional costs to resolve the quality issue related to the B737 Vertical Fin Attach Fittings, including costs our customer may assert related to the impact of completing these repairs on previously delivered units in their factory, and warranty costs related to affected B737 units in service. As a result of the current uncertainty regarding, among other things, the total number of affected units, the methods of acceptable repair on completed units, the total amount of time required to complete the associated repairs, and at what point in time and what manner repairs would be completed on B737 units in service, the Company cannot reasonably estimate the remaining costs to be incurred related to the B737 Vertical Fin Attach Fittings quality issue at this time. Guarantees Contingent liabilities in the form of letters of guarantee have been provided by the Company. Outstanding guarantees were $14.5 and $13.9 at March 30, 2023 and December 31, 2022, respectively. Restricted Cash - Collateral Requirements The Company was required to maintain $22.1 and $19.6 of restricted cash as of March 30, 2023 and December 31, 2022, respectively, related to certain collateral requirements for obligations under its workers’ compensation programs. Restricted cash is included in Other assets in the Company's Condensed Consolidated Balance Sheets. Indemnification The Company has entered into customary indemnification agreements with its non-employee directors, and its bylaws and certain executive employment agreements include indemnification and advancement provisions. Pursuant to the terms of the bylaws and, with respect to Jose Garcia, his employment agreement, the Company is providing Messrs. Garcia and Gilson and all other individual defendants with defense costs and provisional indemnity with respect to the Consolidated Class Action and Derivative Actions, as appropriate. Under the bylaws and any applicable agreements, the Company agrees to indemnify each of these individuals against claims arising out of events or occurrences related to that individual’s service as the Company’s agent or the agent of any of its subsidiaries to the fullest extent legally permitted. The Company has agreed to indemnify parties for specified liabilities incurred, or that may be incurred, in connection with transactions they have entered into with the Company. The Company is unable to assess the potential number of future claims that may be asserted under these indemnities, nor the amounts thereof (if any). As a result, the Company cannot estimate the maximum potential amount of future payments under these indemnities and therefore, no liability has been recorded. Service and Product Warranties and Extraordinary Rework Provisions for estimated expenses related to service and product warranties and certain extraordinary rework are evaluated on a quarterly basis. These costs are accrued and are recorded to unallocated cost of goods sold. These estimates are established using historical information on the nature, frequency, and average cost of warranty claims, including the experience of industry peers. In the case of new development products or new customers, the Company considers other factors including the experience of other entities in the same business and management judgment, among others. Service warranty and extraordinary work is reported in current liabilities and other liabilities on the Company's Condensed Consolidated Balance Sheets. The warranty balance presented in the table below includes unresolved warranty claims that are in dispute in regards to their value as well as their contractual liability. The Company estimated the total costs related to some of these claims; however, there is significant uncertainty surrounding the disposition of these disputed claims and as such, the ultimate determination of the provision’s adequacy requires significant management judgment. The amount of the specific provisions recorded against disputed warranty claims was $2.3 as of March 30, 2023 and December 31, 2022. These specific provisions represent the Company’s best estimate of probable warranty claims. Should the Company incur higher than expected warranty costs and/or discover new or additional information related to these warranty provisions, the Company may incur additional charges that exceed these recorded provisions. The Company utilized available information to make appropriate assessments, however the Company recognizes that data on actual claims experience is of limited duration and therefore, claims projections are subject to significant judgment. The amount of the reasonably possible disputed warranty claims in excess of the specific warranty provision was $3.4 as of March 30, 2023 and December 31, 2022. As noted in the section on Contingencies above, at this time the Company cannot reasonably estimate any potential warranty claims related to the quality issue identified on the Boeing 737 Vertical Fin Attach Fittings. The following is a roll forward of the service warranty and extraordinary rework balance at March 30, 2023:
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net is summarized as follows:
(1) Foreign currency gains and losses are due to the impact of movement in foreign currency exchange rates on long-term contractual rights/obligations, as well as cash and both trade and intercompany receivables/payables that are denominated in a currency other than the entity’s functional currency. (2) See Note 16 Pension and Other Post-Retirement Benefits. Pension (expense) income for the three months ended March 30, 2023 includes a $64.6 non-cash, pre-tax non-operating settlement charge related to the PVP A termination. (3) Excise tax related to the reversion of excess plan assets for the three months ended March 30, 2023. See Note 16 Pension and Other Post-Retirement Benefits.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates in three principal segments: Commercial, Defense & Space and Aftermarket. Approximately 83% of the Company's net revenues for the three months ended March 30, 2023 came from the Company's two largest customers, Boeing and Airbus. Boeing represents a substantial portion of the Company's revenues across segments. Airbus represents a substantial portion of revenues in the Commercial segment. The Company's primary profitability measure to review a segment’s operating performance is segment operating income before corporate selling, general and administrative expenses, and research and development. Corporate selling, general and administrative expenses include centralized functions such as accounting, treasury and human resources that are not specifically related to the Company's operating segments and are not allocated in measuring the operating segments’ profitability and performance and net profit margins. Research and development includes research and development efforts that benefit the Company as a whole and are not unique to a specific segment. These items are not specifically related to the Company’s operating segments and are not utilized in measuring the operating segments’ profitability and performance. The Company’s Commercial segment includes design and manufacturing of forward, mid and rear fuselage sections and systems, struts/pylons, nacelles (including thrust reversers) and related engine structural components, wings and wing components (including flight control surfaces), as well as other miscellaneous structural parts for large commercial aircraft and/or business/regional jets. Sales from this segment are primarily to the aircraft OEMs or engine OEMs of large commercial aircraft and/or business/regional jet programs. Approximately 70% and 59% of Commercial segment net revenues came from the Company's contracts with Boeing for the three months ended March 30, 2023, and March 31, 2022, respectively. Approximately 23% and 32% of Commercial segment net revenues came from the Company's contracts with Airbus for the three months ended March 30, 2023, and March 31, 2022, respectively. The Commercial segment manufactures products at the Company's facilities in Wichita, Kansas; Tulsa, Oklahoma; Kinston, North Carolina; Prestwick, Scotland; Casablanca, Morocco; Belfast, Northern Ireland; and Subang, Malaysia. The Commercial segment also includes an assembly plant for the A350 XWB aircraft in Saint-Nazaire, France. The Company's Defense & Space segment includes design and manufacturing of fuselage, strut, nacelle, and wing aerostructures (primarily) for U.S. Government defense programs, including Boeing P-8, C40, and KC-46 Tanker, which are commercial aircraft that are modified for military use. The segment also includes fabrication, bonding, assembly, testing tooling, processing, engineering analysis, and training on fixed wing aircraft aerostructures, missiles and hypersonics work, including solid rocket motor throats and nozzles and re-entry vehicle thermal protections systems, forward cockpit and cabin, and fuselage work on rotorcraft aerostructures. Sales from this segment are primarily to the prime contractors on various U.S. Government defense program contracts for which the Company is a sub-contractor. A significant portion of the Company's Defense & Space segment revenues are represented by defense business that is classified by the U.S. Government and cannot be specifically described. A significant portion of Defense & Space segment net revenues came from the Company's contracts with two individual customers for the three months ended March 30, 2023, and March 31, 2022. The Defense & Space segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Biddeford, ME; Woonsocket, RI; Belfast, Northern Ireland; and Prestwick, Scotland. The Company's Aftermarket segment includes design, manufacturing, and marketing of spare parts and maintenance, repair, and overhaul ("MRO") services, repairs for flight control surfaces and nacelles, radome repairs, rotable assets, engineering services, advanced composite repair, and other repair and overhaul services. Approximately 45% and 46% of Aftermarket segment net revenues came from the Company's contracts with a single customer for the three months ended March 30, 2023, and March 31, 2022, respectively. The Aftermarket segment manufactures products at the Company's facilities in Wichita, KS; Tulsa, OK; Kinston, North Carolina; Dallas, TX; Prestwick, Scotland; Casablanca, Morocco; and Belfast, Northern Ireland. The Company’s segments are consistent with the organization and responsibilities of management reporting to the chief operating decision-maker for the purpose of assessing performance. The Company’s definition of segment operating income differs from Operating income as presented in its primary financial statements and a reconciliation of the segment and consolidated results is provided in the table set forth below. While some working capital accounts are maintained on a segment basis, much of the Company’s assets are not managed or maintained on a segment basis. Property, plant and equipment, including tooling, is used in the design and production of products for each of the segments and, therefore, is not allocated to any individual segment. In addition, cash, prepaid expenses, other assets, and deferred taxes are managed and maintained on a consolidated basis and generally do not pertain to any particular segment. Raw materials and certain component parts are used in aerostructure production across all segments. Work-in-process inventory is identifiable by segment, but is managed and evaluated at the program level. As there is no segmentation of the Company’s productive assets, depreciation expense (included in fixed manufacturing costs and selling, general and administrative expenses) and capital expenditures, no allocation of these amounts has been made solely for purposes of segment disclosure requirements. The following table shows segment revenues and operating loss for the three months ended March 30, 2023 and March 31, 2022:
(1) The three months ended March 30, 2023 includes excess capacity production costs of $40.9 related to the temporary B737 MAX, A320 and A220 production schedule changes and $5.4 of restructuring costs. The three months ended March 31, 2022 includes $46.8 of excess capacity cost, abnormal costs of $9.5 of temporary workforce adjustment costs as a result of the COVID-19 pandemic, net of U.S. employee retention credit and U.K government subsidies, and net ($25.5) of restructuring costs and other costs, including partial offset related to AMJP of ($28.4). (2) The three months ended March 30, 2023 includes excess capacity production costs of $2.4 related to the temporary B737 production schedule changes and $0.9 of restructuring costs. The three months ended March 31, 2022 include excess capacity costs of $3.0 related to the B737 production schedule adjustment, $0.0 of restructuring costs, and other costs, including partial offset related to AMJP, of ($2.3). (3) The three months ended March 30, 2023 includes $0.0 of restructuring costs, and partial offset related to AMJP, of $0.0. The three months ended March 31, 2022 includes $0.0 of restructuring costs and other costs, including partial offset related to AMJP, of ($1.9).
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Restructuring Charges (Notes) |
3 Months Ended |
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Mar. 30, 2023 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Costs The Company's results of operations for the three months ended March 30, 2023 include restructuring costs related to the Voluntary Separation Program ("VSP") that was offered to reduce structural costs by reducing indirect headcount. Participants in the VSP received a lump sum severance payment based on their years of Company service. Restructuring costs are presented separately as a component of operating loss on the Condensed Consolidated Statements of Operations. The total restructuring costs for the three months ended March 30, 2023 were $6.3, of which, $5.4 was included in segment operating margins for the Commercial Segment and $0.9 was included in segment operating margins for the Defense & Space Segment. The total restructuring cost for the three months ended March 30, 2023 is recorded in the accrued expenses line item on the Company's Condensed Consolidated Balance Sheets as of March 30, 2023. The Company's results of operations for the three months ended March 31, 2022 includes restructuring costs related to actions the Company has taken to align costs to updated production levels that have been directed by the Company's customers (restructuring activity). Largely beginning in the first quarter of 2020, the Company's customers, including Boeing and Airbus, significantly reduced their overall production rates as a result of the COVID-19 pandemic and, in the case of Boeing, the B737 MAX grounding. The restructuring activity materially affected the scope of operations and manner in which business is conducted by the Company compared to periods prior to the restructuring activities. The total restructuring costs for the three months ended March 31, 2022 were $0.2 and are included in segment operating margins for the Commercial Segment.
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Payables and Accruals |
3 Months Ended |
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Mar. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | 24. Supplier Financing The Company has provided certain suppliers with access to a supply chain financing program through a facility with a third-party financing institution. The Company's suppliers' ability to access the program is primarily dependent upon the strength of the Company's financial condition and certain qualifying criteria. This program was primarily entered into as a result of the Company seeking payment term extensions with primarily production suppliers, and the program allows these suppliers to monetize their receivables prior to the contractual payment date, subject to payment of a discount. The capacity of the program is limited to $97.0 at any point in time. If a supplier's request exceeds the program limit, then it will be honored when capacity is available. Under the supply chain financing program, the Company agrees to pay the third-party financing institution the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices, and suppliers have the ability to be paid from the third-party financing institution on an accelerated basis. The Company’s suppliers’ election to sell one or more of the Company’s confirmed obligations under the supply chain financing program is optional. The Company's responsibility is limited to making payment on the terms originally negotiated with its suppliers for up to 120 days, regardless of whether the suppliers elect to sell their receivables to the third-party financing institution. The Company or the third-party financing institution may terminate the agreement upon at least 45 days’ notice. The balance of confirmed obligations outstanding to suppliers who elect to participate in the supply chain financing program is included in the Company’s accounts payable balance on the Company’s Condensed Consolidated Balance Sheets. As of March 30, 2023, the balance of confirmed obligations outstanding was $110.6, an increase of $8.6 over the balance as of December 31, 2022 of $102.0. In the comparable prior year period, confirmed obligations outstanding were $72.3 as of March 31, 2022 an increase of $13.4 over the balance as of December 31, 2021. The changes in each period primarily reflect purchases from suppliers related to production levels during the respective periods.
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Business Combinations and Asset Acquisitions |
3 Months Ended |
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Mar. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition, Description of Acquired Entity | 25. Acquisitions T.E.A.M., Inc. On November 23, 2022, Spirit AeroSystems Textiles, LLC, a fully owned subsidiary of Spirit AeroSystems, Inc. ("Spirit Textiles") closed its purchase of substantially all of the assets and all of the liabilities of T.E.A.M., Inc., a Rhode Island corporation, which is engaged in the business of manufacturing and engineering textiles, composites, and textile and composite products, for cash consideration of $31.3. The acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations. The purchase price has been allocated among assets acquired and liabilities assumed at fair value based on information currently available, with the excess purchase price recorded as goodwill, which is fully allocated to the Defense & Space segment. As of December 31, 2022, the Company had preliminarily concluded, but not finalized, its assessment and purchase price allocation of the acquisition. The final fair value determination was subject to a contractual post-closing working capital true-up, which the Company concluded in the three months ended March 30, 2023. The final purchase price allocation resulted in $0.6 adjustments to the assets acquired and the liabilities assumed that were recorded as of the acquisition date, which were included in the Condensed Consolidated Balance Sheet as of December 31, 2022. As of March 30, 2023, the adjusted assets acquired and the liabilities assumed included $8.3 of property, plant and equipment, $1.7 of working capital, $13.5 of intangible assets and $7.7 allocated to goodwill, which is expected to be deductible for tax purposes. Operating income for the first quarter of 2023 was immaterial and reported within the Defense & Space segment. There were no acquisition-related expenses for the three months ended March 30, 2023 and for the three months ended March 31, 2022.
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Subsequent Event (Notes) |
3 Months Ended |
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Mar. 30, 2023 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 26. Subsequent Events After the balance sheet date of March 30, 2023, Spirit entered into agreements with certain customers to provide cash advances, based upon certain agreed upon performance criteria, which Spirit expects to receive in the second and fourth quarters of 2023. Spirit will receive advances of $230.0 in the second quarter, $180.0 of which is from Boeing. On April 28, 2023, Spirit entered into a memorandum of agreement with Boeing, which requires a repayment of $90.0 on February 14, 2024, and $90.0 on February 14, 2025. Spirit’s repayment obligation will be accelerated, and any outstanding amount advanced under the agreement will immediately become due and payable, in the event that (i) Spirit fails to make any repayment in full on the applicable Repayment Date, (ii) Spirit fails to submit a satisfactory written confirmation that Spirit is able to and intends to make the required repayment thirty days prior to each Repayment Date, as required under the agreement, or (iii) Spirit repudiates any performance obligation under the agreement or certain of Spirit’s existing agreements with Boeing. Boeing will have the right to set off any unpaid amount due and payable under the memorandum of agreement from any amount owed to Boeing under any other agreement between the parties. The remaining advance of $50.0 to be received in the second quarter of 2023, and the expected incremental advance of $50.0 in the fourth quarter of 2023 will require equal quarterly repayments in 2025.
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New Accounting Pronouncements (Policies) |
3 Months Ended |
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Mar. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | . New Accounting PronouncementsIn December 2022, the FASB issued ASU No. 2022-06, which defers the sunset date of Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting from December 31, 2022 to December 31, 2024. ASU No. 2022-06 was effective upon issuance. ASU No. 2022-06 provides temporary optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting, providing optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. To date, the Company has not had a modification to which the application of this guidance is applicable. The Company will continue evaluating the potential impact of adopting this guidance on its consolidated financial statements, the impact of which is not expected to be material. |
Accounts Receivable and Allowance for Credit Losses Allowance for Credit Losses (Policies) |
3 Months Ended |
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Mar. 30, 2023 | |
Credit Loss [Abstract] | |
Credit Loss, Financial Instrument [Text Block] | Allowance for Credit LossesDuring the three months ended March 30, 2023, there have been no significant changes in the factors that influenced management’s current estimate of expected credit losses, nor changes to the Company’s accounting policies or Current Expected Credit Losses methodology. The beginning balances, current period activity, and ending balances of the allocation for credit losses on accounts receivable and contract assets were not material. |
Leases (Policies) |
3 Months Ended |
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Mar. 30, 2023 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at the inception of a signed agreement. Operating leases are included in right-of-use (“ROU”) assets (long-term), short-term operating lease liabilities, and long-term operating lease liabilities on the Company’s Condensed Consolidated Balance Sheets. Finance leases are included in Property, Plant and Equipment, current maturities of long-term debt, and long-term debt. ROU assets represent the right of the Company to use an underlying asset for the length of the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To determine the present value of lease payments, the Company uses its estimated incremental borrowing rate or the implicit rate, if readily determinable. The estimated incremental borrowing rate is based on information available at the lease commencement date, including any recent debt issuances and publicly available data for instruments with similar characteristics. The ROU asset also includes any lease payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease and, when it is reasonably certain that an option will be exercised, those options are included in the net present value calculation. Leases with a term of 12 months or less, which are primarily related to automobiles and manufacturing equipment, are not recorded on the Condensed Consolidated Balance Sheets. The aggregate amount of lease cost for leases with a term of 12 months or less is not material. The Company has lease agreements that include lease and non-lease components, which are generally accounted for separately. For certain leases (primarily related to IT equipment), the Company does account for the lease and non-lease components as a single lease component. A portfolio approach is applied to effectively account for the ROU assets and liabilities for those specific leases referenced above. The Company does not have any material leases containing variable lease payments or residual value guarantees. The Company also does not have any material subleases
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Changes in Estimates Changes in Estimates (Tables) |
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Schedule of Change in Accounting Estimate [Table Text Block] | Changes in estimates are summarized below:
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Accounts Receivable, net (Tables) |
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Accounts Receivable, Net | Accounts receivable, net consists of the following:
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Revenue (Tables) - USD ($) $ in Millions |
3 Months Ended | |
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Mar. 30, 2023 |
Mar. 31, 2022 |
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Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1,431.4 | $ 1,174.7 |
Boeing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 921.1 | 647.2 |
Airbus [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 267.6 | 303.9 |
Other Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 242.7 | 223.6 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,149.7 | 823.5 |
UNITED KINGDOM | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 170.3 | 169.8 |
Other International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 111.4 | 181.4 |
Total International [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 281.7 | $ 351.2 |
Inventory (Tables) |
3 Months Ended |
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Mar. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Summary Of Inventories | Work-in-process inventory includes direct labor, direct material, overhead, and purchases on contracts for which revenue is recognized at a point in time as well as sub-assembly parts that have not been issued to production on contracts for which revenue is recognized over time using an input method. For the periods ended March 30, 2023 and December 31, 2022, work-in-process inventory includes $308.6 and $392.2, respectively, of costs incurred in anticipation of specific contracts and no impairments were recorded in the periods.Product inventory, summarized in the table above, is shown net of valuation reserves of $137.7 and $136.8 as of March 30, 2023 and December 31, 2022, respectively. Excess capacity and abnormal production costs are excluded from inventory and recognized as expense in the period incurred. Cost of sales for the three months ended March 30, 2023 and March 31, 2022 includes period expense of $43.3 and $49.8, respectively, for excess capacity production costs related to temporary B737 MAX, A320 and A220 production schedule changes. Cost of sales also includes abnormal costs related to temporary workforce adjustments as a result of COVID-19 production pause, net of the U.S. employee retention credit and U.K. government subsidies for the three months ended March 30, 2023 and March 31, 2022 of $0.0 and $9.5, respectively. |
Property, Plant and Equipment (Tables) |
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Property, plant and equipment, net | Property, plant and equipment, net consists of the following:
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Other Assets (Tables) |
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Schedule of Other Assets | Other current assets are summarized as follows:
Other assets are summarized as follows:
(1) Certain payments accounted for as consideration paid by the Company to a customer are being amortized as reductions to net revenues.
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Other Assets Intangible Assets (Tables) |
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Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets are summarized as follows:
Amortization expense was $3.7 and $3.7 for the three months ended March 30, 2023 and March 31, 2022, respectively.
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The amortization for each of the five succeeding years relating to intangible assets currently recorded in the Condensed Consolidated Balance Sheets and the weighted average amortization is estimated to be the following as of March 30, 2023:
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Other Assets Goodwill (Tables) |
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Goodwill Disclosure [Text Block] | Goodwill is summarized as follows:
(1) As a result of certain purchase price allocation adjustments recorded during the purchase price accounting measurement period based on additional information obtained, the goodwill resulting from the T.E.A.M., Inc. Acquisition was adjusted by $0.6, from $7.1 that was reported at December 31, 2022, to $7.7 as of March 30, 2023. See also Note 25 Acquisitions. The total goodwill value includes no accumulated impairment loss in any of the periods presented. The Company assesses goodwill for impairment annually or more frequently if events or circumstances indicate that the fair value of a reporting unit that includes goodwill may be lower than its carrying value. For the period ended March 30, 2023, there were no events or circumstances which would require the Company to update its goodwill impairment analysis.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | The guidance discloses three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Observable inputs, such as current and forward interest rates and foreign exchange rates, are used in determining the fair value of the interest rate swaps and foreign currency hedge contracts. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
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Carrying Amount And Estimated Fair Value Of Long Term Debt | The following table presents the carrying amount and estimated fair value of long-term debt. See also Note 14 Derivative and Hedging Activities, and Note 16 Pension and Other Post-Retirement Benefits.
(1)Level 1 Fair Value hierarchy (2)Level 2 Fair Value hierarchy
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Term Debt And Capital Lease Obligations Current And Non Current | Total debt shown on the Condensed Consolidated Balance Sheets is comprised of the following:
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Pension and Other Post-Retirement Benefits (Tables) |
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Change in projected benefit obligations |
(1) Includes a $64.6 settlement charge for the Company's Pension Value Plan ("PVP A") during the three months ended March 30, 2023, and a $1.4 settlement credit for PVP B (as defined below) related to final asset distribution in the three months ended March 31, 2022. The components of net periodic pension expense (income) and other benefit expense, other than the service cost component, are included in Other (expense) income, net in the Company's Condensed Consolidated Statements of Operations. See Note 21 Other Income (Expense), Net. As disclosed in the Company's 2022 Form 10-K, effective October 1, 2021, the Company spun off a portion of the existing PVP A, to a new plan called PVP B ("PVP B"). As part of the PVP B plan termination process, a lump sum offering was provided during 2021 for PVP B participants and the final asset distribution was completed in the first quarter of 2022. At March 30, 2023, a pension reversion asset of $60.5 is recorded on the Restricted plan assets line item on the Company’s Condensed Consolidated Balance Sheets. Restricted plan assets are expected to be reduced over the next six years as they are distributed to employees under a qualified compensation and benefit program. Restricted plan assets are valued at fair value with gain or loss on fair value adjustments recognized within other income. The underlying investments' fair value measurement levels under the FASB's authoritative guidance on fair value measurements are Level 2, see Note 13 Fair Value Measurements. Separately, during the three months ended March 30, 2023, the Company received an excess plan asset reversion of $179.5 of cash from PVP A. This transaction was accounted for as a negative contribution, and is included on the Pension plans employer contributions line item on the Condensed Consolidated Statements of Cash Flows for the three months ended March 30, 2023. Excise tax of $35.9 related to the reversion of excess plan assets was separately recorded to the Other (expense) income, net line item on the Company's Condensed Consolidated Statements of Operations for the three months ended March 30, 2023. See also Note 21 Other Income (Expense), Net. As disclosed in the Company's 2022 Form 10-K, in July 2022 the Company adopted and communicated to participants a plan to terminate the PVP A. During the three months ended March 30, 2023, the Company recognized non-cash, pre-tax non-operating accounting charges of $64.6 related to the plan termination, primarily reflecting the accounting for a group annuity purchase made in the first quarter of 2023, which resulted in a settlement charge related to the accelerated recognition of the actuarial losses for the PVP A plan that were previously included in the Accumulated other comprehensive loss line item in the Stockholders' Equity section of the Company's Condensed Consolidated Balance Sheets.
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Equity (Tables) |
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Mar. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss is summarized by component as follows:
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Commitments, Contingencies and Guarantees (Tables) |
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Mar. 30, 2023 | |||||||||||||||||||||||||||||||||||||
Commitments Contingencies And Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||
Service warranty roll forward | The following is a roll forward of the service warranty and extraordinary rework balance at March 30, 2023:
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Other Income (Expense), Net (Tables) |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income Expense Net | Other income (expense), net is summarized as follows:
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Accounts Receivable, net (Details) - USD ($) $ in Millions |
3 Months Ended | ||
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Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
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Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | $ 849.4 | ||
Trade receivables | 576.2 | $ 477.9 | |
Other | 32.6 | 19.7 | |
Less: allowance for doubtful accounts | (10.0) | (8.1) | |
Accounts receivable, net | 598.8 | $ 489.5 | |
Gain (Loss) on Sale of Accounts Receivable | $ 11.2 | $ 2.4 |
Contract with customer, asset and liability (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ 1,431.4 | $ 1,174.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 25.8 | 26.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22 Segment Information. The following tables show disaggregated revenues for the periods ended March 30, 2023 and March 31, 2022:
The following table disaggregates revenue by major customer:
The following table disaggregates revenue based upon the location where control of products are transferred to the customer:
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Contract with Customer, Liability, Revenue Recognized | $ 25.8 | 26.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset, before Allowance for Credit Loss | 525.6 | 453.2 | $ 502.2 | $ 443.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
change in contract asset | 23.4 | 10.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Liability | (342.8) | (361.0) | $ (356.4) | $ (387.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
change in contract liability | 13.6 | 26.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over Time [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 1,112.8 | 929.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at Point in Time [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ 318.6 | $ 245.2 |
Revenue (Details) - USD ($) $ in Millions |
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Mar. 30, 2023 |
Mar. 31, 2022 |
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The Company disaggregates revenue based on the method of measuring satisfaction of the performance obligation either over time or at a point in time, based upon the location where products and services are transferred to the customer, and based upon major customer. The Company’s principal operating segments and related revenue are noted in Note 22 Segment Information. The following tables show disaggregated revenues for the periods ended March 30, 2023 and March 31, 2022:
The following table disaggregates revenue by major customer:
The following table disaggregates revenue based upon the location where control of products are transferred to the customer:
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Revenues | $ 1,431.4 | $ 1,174.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining in Current Year [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 3,407.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 [Member] [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 4,603.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 [Member] [Member] [Domain] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 1,246.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 and after [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Amount | 208.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over Time [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 1,112.8 | 929.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at Point in Time [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 318.6 | 245.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Boeing [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 921.1 | 647.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Airbus [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 267.6 | 303.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Customer [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ 242.7 | $ 223.6 |
Inventory (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Summary Of Inventories [Abstract] | |||
Raw materials | $ 347.9 | $ 332.7 | |
Work-in-process | 1,110.4 | 1,044.9 | |
Finished goods | 67.5 | 69.4 | |
Product inventory | 1,525.8 | 1,447.0 | |
Capitalized pre-production | 23.3 | 23.7 | |
Total inventory, net | 1,549.1 | 1,470.7 | |
Inventory Valuation Reserves | 137.7 | 136.8 | |
Costs Incurred in Anticipation of Contracts | 308.6 | $ 392.2 | |
Excess Capacity Costs- B737MAX and A320 Production Schedules | 43.3 | $ 49.8 | |
Abnormal Costs- COVID19 production suspension | 0.0 | 9.5 | |
Inventories [Line Items] | |||
Excess Capacity Costs- B737MAX and A320 Production Schedules | 43.3 | 49.8 | |
Abnormal Costs- COVID19 production suspension | $ 0.0 | $ 9.5 |
Property, Plant and Equipment (Details) - USD ($) $ in Millions |
Mar. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, plant and equipment, net | ||
Land | $ 30.3 | $ 30.1 |
Buildings (including improvements) | 1,284.2 | 1,269.1 |
Machinery and equipment | 2,391.7 | 2,365.1 |
Tooling | 1,059.7 | 1,055.9 |
Capitalized software | 338.7 | 336.1 |
Construction-in-progress | 85.0 | 102.2 |
Total | 5,189.6 | 5,158.5 |
Less: accumulated depreciation | (3,028.3) | (2,952.6) |
Property, plant and equipment, net | $ 2,161.3 | $ 2,205.9 |
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
|
Property Plant And Equipment Textuals [Abstract] | ||
Capitalized interest related to construction-in-progress | $ 1.6 | $ 1.4 |
Repair and maintenance costs | 42.7 | 34.9 |
Depreciation expense related to capitalized software | $ 6.1 | $ 5.0 |
Other Assets (Details Textuals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill [Line Items] | ||
Goodwill | $ 631.1 | $ 630.5 |
Goodwill, Acquired During Period | 0.0 | |
Goodwill, Other Increase (Decrease) | 0.6 | |
Goodwill, Period Increase (Decrease) | 0.0 | |
Aftermarket Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 321.4 | 321.4 |
Goodwill, Acquired During Period | 0.0 | |
Goodwill, Other Increase (Decrease) | 0.0 | |
Goodwill, Period Increase (Decrease) | 0.0 | |
Defense & Space Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 13.2 | 12.6 |
Goodwill, Acquired During Period | 0.0 | |
Goodwill, Other Increase (Decrease) | 0.6 | |
Goodwill, Period Increase (Decrease) | 0.0 | |
Commercial Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 296.5 | $ 296.5 |
Goodwill, Acquired During Period | 0.0 | |
Goodwill, Other Increase (Decrease) | 0.0 | |
Goodwill, Period Increase (Decrease) | 0.0 | |
T.E.A.M., Inc. Acquisition | ||
Goodwill [Line Items] | ||
Goodwill | $ 7.7 |
Advance Payments and Deferred Revenue/Credits (Details) - USD ($) $ in Millions |
Mar. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
advance payments [Line Items] | ||
Customer advances- B787 program | $ 202.6 | |
Customer advances- Irkut program | $ 18.9 | |
Total Payment [Member] | ||
advance payments [Line Items] | ||
Customer advances- B737 program | $ 123.0 |
Derivative and Hedging Activities (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Interest Rate Swaps | |||
Foreign Currency Cash Flow Hedge Asset at Fair Value | $ 3.5 | $ 0.0 | |
Foreign Currency Cash Flow Hedge Liability at Fair Value | 0.0 | 2.4 | |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 2.5 | $ (3.9) | |
Derivative, Notional Amount | 139.2 | $ 157.1 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (3.5) | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months | ||
Derivative, Credit Risk Related Contingent Features, Existence and Nature | Generally, the Company has agreements with its counterparties that contain a provision whereby if the Company defaults on its existing credit facilities and payment of the loans extended under such facilities is accelerated, the Company could be declared in default under its agreements, which may result in the early termination of the outstanding derivatives governed by such agreements and the payment of an early termination amount. | ||
General Cash Flow Hedge Information [Abstract] | |||
Objectives for Using Cash Flow Hedging Instruments | The Company has entered into currency forward contracts, each designated as a cash flow hedge upon the date of execution, for the purpose of reducing the variability of cash flows and hedging against the foreign currency exposure for forecasted payroll, pension and vendor disbursements that are expected to be made in the British Pound Sterling. The hedging program implemented is intended to reduce foreign currency exposure, and the associated forward currency contracts hedge forecasted transactions through December 2023. | ||
Description of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments Activities | During the three months ended March 31, 2022, the Company entered into foreign currency forward contracts in the amount of $291.5 to minimize the risk of currency exchange rate movements on the Company's planned settlement of the repayable investment agreement between the Company and the U.K.'s Department for Business, Energy and Industrial Strategy. During the three-month period ended March 31, 2022, these foreign currency forward contracts were settled and new contracts were entered into in the amount of $293.7, which were also settled during the period. The Company did not designate these forward contracts as hedges or apply hedge accounting to the forward contracts. | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 2.2 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 3.4 | $ (1.5) |
Derivative and Hedging Activities (Details 1) |
3 Months Ended |
---|---|
Mar. 30, 2023 | |
Derivative [Line Items] | |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months |
Derivative and Hedging Activities (Details Textual) $ in Millions |
3 Months Ended |
---|---|
Mar. 30, 2023
USD ($)
| |
Derivatives Fair Value [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (3.5) |
Maximum Length of Time Hedged in Cash Flow Hedge | 9 months |
Debt (Details) - USD ($) $ in Millions |
Mar. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Other Long-term Debt, Current | $ 5.5 | $ 5.8 |
Other Long-term Debt, Noncurrent | 53.0 | 53.0 |
Long-term Debt and Lease Obligation, Current | 55.1 | 53.7 |
Long-term Debt and Lease Obligation | 3,815.8 | 3,814.9 |
Total Debt [Member] | ||
Long Term Debt And Capital Lease Obligations Current And Non Current [Abstract] | ||
Long-term Debt and Lease Obligation, Current | 55.1 | 53.7 |
Long-term Debt and Lease Obligation | $ 3,815.8 | $ 3,814.9 |
Stock Compensation (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
|
LTIA AND Prior Plans [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Company recognized total stock compensation expense, net of forfeitures | $ 9,000,000.0 | $ 8,200,000 |
Class A [Member] | Long Term Incentive Plan RSU [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 494,599 | |
Class A [Member] | Performance Based LTIP RSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares granted | 231,927 | |
Fair Value Of Shares Granted | $ 12,000,000.0 | |
Class A [Member] | Long Term Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Vested | 354,849 | |
Grant date value of shares vested | $ 16,700,000 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Percent | 1.50% | 17.40% | |
Valuation Allowance [Line Items] | |||
Deferred Income Tax Liabilities, Net | $ 1.6 | $ 1.3 | |
Rotable assets | 38.6 | $ 39.0 | |
Domestic Tax Authority | |||
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Net | 1.3 | ||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 467.3 | ||
Deferred Tax Assets, Net | 1.3 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 32.1 | ||
Deferred Tax Assets, Gross | 468.6 | ||
Foreign Tax Authority | |||
Income Tax Disclosure [Abstract] | |||
Deferred Tax Assets, Net | 3.0 | ||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance | 297.9 | ||
Deferred Tax Assets, Net | 3.0 | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 18.7 | ||
Deferred Tax Assets, Gross | $ 300.9 |
Commitments, Contingencies and Guarantees (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 30, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Commitments Contingencies And Guarantees [Abstract] | |||||
Restricted Cash, Noncurrent | $ 22.1 | $ 19.6 | $ 19.5 | $ 19.5 | |
Service warranty roll forward | |||||
Product Warranty And Extraordinary Rework | 74.9 | ||||
Charges to costs and expenses | 0.2 | ||||
Product Warranty Accrual, Payments | (0.5) | ||||
Product Warranty And Extraordinary Rework | 74.2 | ||||
Product Warranty Extraordinary Rework Accrual Currency Translation Increase Decrease | 0.0 | ||||
Commitments Contingencies And Guarantees Textuals [Abstract] | |||||
Outstanding amount of guarantees | 14.5 | $ 13.9 | |||
Product Liability Accrual, Component Amount | 2.3 | ||||
Product Liability Contingency, Loss Exposure in Excess of Accrual, Best Estimate | $ 3.4 | ||||
Loss Contingency, Estimate of Possible Loss | $ 0.0 | ||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 220.0 |
Other Income (Expense), Net (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
|
Other Income (Loss) [Line Items] | ||
Kansas Development Finance Authority bond | $ 0.7 | $ 0.6 |
Interest Income, Other | 2.9 | 0.5 |
Foreign currency (losses) gains (1) | (8.5) | 14.9 |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (3.4) | 0.7 |
Gain (Loss) on Sale of Accounts Receivable | (11.2) | (2.4) |
Pension Income (Expense) without Service Cost | (62.7) | 23.2 |
Taxes, Miscellaneous | (35.9) | 0.0 |
Other Nonoperating Income | 0.7 | 0.2 |
Amortization of Intangible Assets | 3.7 | 3.7 |
Total | $ (117.4) | $ 37.7 |
Restructuring Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Charges | $ 6.3 | $ 0.2 |
Payables and Accruals (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 30, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Supplier Finance Program [Line Items] | |||
Supplier Finance Program, Obligation | $ 110.6 | $ 72.3 | $ 102.0 |
Supplier Finance Program, Obligation, Period Increase (Decrease) | $ 8.6 | $ 13.4 |
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