Subsequent Events

12 Months Ended

Mar. 31, 2011

Subsequent Events

Subsequent Events

17. Subsequent Events

        On May 12, 2011, ATK was notified by the U.S. Army that the Company had not been awarded a contract for the continued operation and maintenance of the RFAAP. ATK has requested a Government Accountability Office review of the RFAAP competition decision after receiving a debriefing from the United States Army. The decision to protest the award will not impact the facilities production or delivery schedules during the protest period. We cannot give any assurances that ATK will be successful with the outcome of this review. Loss of the Radford facility management contract will reduce Armament System's and ATK's sales and profit. ATK will continue to operate its New River Energetics facility located at RFAAP, which supports ATK's commercial business, international program efforts and other business not directly associated with the RFAAP contract, therefore ATK does not expect to lose all revenues associated with this division. External sales and EBIT from the RFAAP contract were approximately $233 million and $14 million, respectively, during ATK's fiscal 2011. ATK is currently under contract to operate the RFAAP through September 30, 2011, and we expect there to be some transition period that could extend beyond that date; therefore we anticipate continued Radford revenues into fiscal 2012. We are still evaluating the potential impacts of the loss of the contract, but at this time we do not anticipate any material impairment, severance, or other charges.