Consolidated Variable Interest Entities

6 Months Ended

Jun. 28, 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, and accordingly, these entities are consolidated. As the primary beneficiary, the Company has a risk and obligation to absorb any losses significant to the VIE and the power, through voting rights or similar rights, to direct the activities that could impact economic performance of 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):


	June 28,		December 31,
	2020		2019
Assets
Total assets	$	132,384	$	127,742

Liabilities and equity
Total liabilities	$	78,327	$	80,151
Total equity	54,057		47,591
Total liabilities and equity	$	132,384	$	127,742

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


	Three Months Ended						Six Months Ended
	June 28,		June 30,		June 28,		June 30,
	2020		2019		2020		2019
Income statements
Revenues	$	94,454	$	89,789	$	181,644	$	153,049
Cost of revenues	76,634		71,552		145,159		121,954
Selling, general and administrative expenses	15,864		21,438		33,881		39,727
Total operating expenses	92,498		92,990		179,040		161,681
Program income (loss)	1,956		(3,201)		2,604		(8,632)
Other (income) expense, net	840		(500)		(209)		(854)
Net income (loss)	$	2,796	$	(3,701)	$	2,395	$	(9,486)