Consolidated Variable Interest Entities

3 Months Ended

Mar. 29, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company has entered into ventures and investments that allow it to participate in projects in areas where it is advantageous or required by law to partner with a local organization.

The Company is the majority shareholder and primary beneficiary of PAE (New Zealand) Limited, ATOM Training Limited, PAE-Perini LLC, Syncom Space Services LLC, PAE-SGT Partners LLC, accordingly, these entities are consolidated. As the primary beneficiary, the Company has a risk and obligation to absorb any losses significant to the VIE. The use of the assets of the VIEs to settle the Company’s obligations is subject to the approval of the managing body of each VIE.

The cash flows generated by these VIEs are included within the Company’s condensed consolidated statements of cash flows. The condensed consolidated balance sheets include the following amounts from these consolidated VIEs as of the dates presented (in thousands):


	March 29,		December 31,
	2020		2019
Assets
Total assets	$	126,193	$	127,742

Liabilities and equity
Total liabilities	$	79,013	$	80,151
Total equity	47,180		47,591
Total liabilities and equity	$	126,193	$	127,742

The condensed consolidated statements of operations include the following amounts from consolidated VIEs for the periods presented (in thousands):


	Three Months Ended
	March 29,		March 31,
	2020		2019
Income statements
Revenues	$	87,191	$	63,260
Cost of revenues	68,525		50,402
Selling, general and administrative expenses	18,017		18,289
Total operating expenses	86,542		68,691
Program income (loss)	649		(5,431)
Other expense, net	(1,049)		(354)
Net loss	$	(400)	$	(5,785)