Consolidated Variable Interest Entities

9 Months Ended

Sep. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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, PAE-Parsons Global Logistics Services, 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):


	September 27,		December 31,
	2020		2019
Assets
Total assets	$	138,177	$	127,742

Liabilities and equity
Total liabilities	$	83,596	$	80,151
Total equity	54,581		47,591
Total liabilities and equity	$	138,177	$	127,742

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


	Three Months Ended				Nine Months Ended
	September 27,		September 29,		September 27,		September 29,
	2020		2019		2020		2019
Income statements
Revenues	$	87,324	$	95,121	$	268,969	$	248,170
Cost of revenues	70,707		106,560		215,866		228,513
Selling, general and administrative expenses	16,595		24,100		50,477		63,828
Total operating expenses	87,302		130,660		266,343		292,341
Program income (loss)	22		(35,539)		2,626		(44,171)
Other (income), net	(32)		(237)		(241)		(1,090)
Net (loss) income	$	(10)	$	(35,776)	$	2,385	$	(45,261)