Price Graph
Price
Yield
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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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20-2436320
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging Growth Company
o
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Page
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For the Three
Months Ended
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For the Six
Months Ended |
||||||||||||
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June 29,
2017 |
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June 30,
2016 |
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June 29,
2017 |
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June 30,
2016 |
||||||||
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($ in millions, except per share data)
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||||||||||||||
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Net revenues
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$
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1,826.1
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$
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1,829.9
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$
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3,520.2
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$
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3,511.5
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Operating costs and expenses
|
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||||
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Cost of sales
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1,847.0
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1,672.0
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3,259.8
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3,031.0
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||||
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Selling, general and administrative
|
46.1
|
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70.2
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98.0
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120.2
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||||
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Impact of severe weather event
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9.1
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—
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19.9
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—
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Research and development
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6.7
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4.4
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11.7
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10.5
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||||
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Total operating costs and expenses
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1,908.9
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1,746.6
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3,389.4
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3,161.7
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||||
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Operating (loss) income
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(82.8
|
)
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83.3
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130.8
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349.8
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||||
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Interest expense and financing fee amortization
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(10.2
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)
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(23.9
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)
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(19.7
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)
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(35.3
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)
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||||
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Other income (expense), net
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1.2
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(6.2
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)
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2.7
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(8.4
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)
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||||
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Income before income taxes and equity in net income of affiliate
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(91.8
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)
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53.2
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113.8
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306.1
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||||
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Income tax benefit (provision)
|
35.0
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(8.6
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)
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(29.0
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)
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(90.5
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)
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||||
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Income before equity in net income of affiliate
|
(56.8
|
)
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44.6
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|
|
84.8
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|
|
215.6
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||||
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Equity in net income of affiliate
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.8
|
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||||
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Net (loss) income
|
$
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(56.8
|
)
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$
|
44.8
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$
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84.9
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$
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216.4
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(Loss) earnings per share
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Basic
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$
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(0.48
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)
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$
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0.35
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$
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0.71
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$
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1.66
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Diluted
|
$
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(0.48
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)
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$
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0.35
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$
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0.71
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$
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1.65
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Dividends declared per common share
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$
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0.10
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$
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—
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$
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0.20
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$
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—
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For the Three
Months Ended
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For the Six
Months Ended |
||||||||||||
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June 29,
2017 |
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June 30,
2016 |
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June 29,
2017 |
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June 30,
2016 |
||||||||
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($ in millions)
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||||||||||||||
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Net income
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$
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(56.8
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)
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$
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44.8
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$
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84.9
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$
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216.4
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Changes in other comprehensive income (loss), net of tax:
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||||
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Pension, SERP, and Retiree medical adjustments, net of tax effect of $0.8 and ($0.2) for the three months ended, respectively, and $1.0 and ($0.4) for the six months ended, respectively
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(0.5
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)
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0.2
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(0.9
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)
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1.0
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||||
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Unrealized foreign exchange loss on intercompany loan, net of tax effect of ($0.4) and $0.8 for three months ended, respectively, and ($0.6) and $1.1 for the six months ended, respectively
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1.6
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(3.2
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)
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2.6
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(4.4
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)
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||||
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Foreign currency translation adjustments
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14.7
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(23.4
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)
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18.1
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(31.0
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)
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||||
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Total other comprehensive income (loss)
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15.8
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(26.4
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)
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19.8
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(34.4
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)
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||||
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Total comprehensive income
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$
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(41.0
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)
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$
|
18.4
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$
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104.7
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$
|
182.0
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|
June 29,
2017 |
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December 31,
2016 |
||||
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($ in millions)
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||||||
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Current assets
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|
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Cash and cash equivalents
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$
|
696.9
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$
|
697.7
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Restricted cash
|
4.4
|
|
|
—
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|
||
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Accounts receivable, net
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824.3
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|
|
660.5
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|
||
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Inventory, net
|
1,325.7
|
|
|
1,515.3
|
|
||
|
Other current assets
|
106.5
|
|
|
36.9
|
|
||
|
Total current assets
|
2,957.8
|
|
|
2,910.4
|
|
||
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Property, plant and equipment, net
|
1,991.4
|
|
|
1,991.6
|
|
||
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Pension assets
|
300.1
|
|
|
282.3
|
|
||
|
Other assets
|
213.2
|
|
|
220.9
|
|
||
|
Total assets
|
$
|
5,462.5
|
|
|
$
|
5,405.2
|
|
|
Current liabilities
|
|
|
|
|
|
||
|
Accounts payable
|
$
|
726.0
|
|
|
$
|
579.7
|
|
|
Accrued expenses
|
246.5
|
|
|
216.2
|
|
||
|
Profit sharing
|
41.3
|
|
|
101.4
|
|
||
|
Current portion of long-term debt
|
26.6
|
|
|
26.7
|
|
||
|
Advance payments, short-term
|
153.9
|
|
|
199.3
|
|
||
|
Deferred revenue and other deferred credits, short-term
|
71.7
|
|
|
312.1
|
|
||
|
Deferred grant income liability - current
|
20.3
|
|
|
14.4
|
|
||
|
Other current liabilities
|
551.4
|
|
|
94.4
|
|
||
|
Total current liabilities
|
1,837.7
|
|
|
1,544.2
|
|
||
|
Long-term debt
|
1,060.6
|
|
|
1,060.0
|
|
||
|
Advance payments, long-term
|
280.8
|
|
|
342.0
|
|
||
|
Pension/OPEB obligation
|
41.6
|
|
|
43.9
|
|
||
|
Deferred revenue and other deferred credits
|
114.6
|
|
|
146.8
|
|
||
|
Deferred grant income liability - non-current
|
49.8
|
|
|
63.4
|
|
||
|
Other liabilities
|
265.6
|
|
|
276.1
|
|
||
|
Equity
|
|
|
|
|
|
||
|
Preferred stock, par value $0.01, 10,000,000 shares authorized, no shares issued
|
—
|
|
|
—
|
|
||
|
Common stock, Class A par value $0.01, 200,000,000 shares authorized, 118,346,113 and 121,642,556 shares issued and outstanding, respectively
|
1.2
|
|
|
1.2
|
|
||
|
Additional paid-in capital
|
1,076.8
|
|
|
1,078.9
|
|
||
|
Accumulated other comprehensive loss
|
(167.1
|
)
|
|
(186.9
|
)
|
||
|
Retained earnings
|
2,186.8
|
|
|
2,113.9
|
|
||
|
Treasury stock, at cost (27,580,982 and 23,936,092 shares, respectively)
|
(1,286.4
|
)
|
|
(1,078.8
|
)
|
||
|
Total stockholders’ equity
|
1,811.3
|
|
|
1,928.3
|
|
||
|
Noncontrolling interest
|
0.5
|
|
|
0.5
|
|
||
|
Total equity
|
1,811.8
|
|
|
1,928.8
|
|
||
|
Total liabilities and equity
|
$
|
5,462.5
|
|
|
$
|
5,405.2
|
|
|
|
For the Six Months Ended
|
||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
||||
|
|
($ in millions)
|
||||||
|
Operating activities
|
|
|
|
|
|
||
|
Net income
|
$
|
84.9
|
|
|
$
|
216.4
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||
|
Depreciation expense
|
105.5
|
|
|
98.9
|
|
||
|
Amortization expense
|
—
|
|
|
0.1
|
|
||
|
Amortization of deferred financing fees
|
1.7
|
|
|
14.7
|
|
||
|
Accretion of customer supply agreement
|
5.1
|
|
|
2.4
|
|
||
|
Employee stock compensation expense
|
11.0
|
|
|
28.9
|
|
||
|
Loss from interest rate swap
|
1.5
|
|
|
—
|
|
||
|
(Gain) loss from foreign currency transactions
|
(3.4
|
)
|
|
11.2
|
|
||
|
Loss on impairment and disposition of assets
|
6.5
|
|
|
3.1
|
|
||
|
Deferred taxes
|
3.0
|
|
|
25.4
|
|
||
|
Pension and other post-retirement benefits, net
|
(21.7
|
)
|
|
0.8
|
|
||
|
Grant liability amortization
|
(8.8
|
)
|
|
(5.4
|
)
|
||
|
Equity in net income of affiliate
|
(0.1
|
)
|
|
(0.8
|
)
|
||
|
Changes in assets and liabilities
|
|
|
|
|
|||
|
Accounts receivable
|
(156.5
|
)
|
|
(224.1
|
)
|
||
|
Inventory, net
|
438.9
|
|
|
184.9
|
|
||
|
Accounts payable and accrued liabilities
|
179.7
|
|
|
39.5
|
|
||
|
Profit sharing/deferred compensation
|
(60.2
|
)
|
|
(16.1
|
)
|
||
|
Advance payments
|
(106.6
|
)
|
|
(70.4
|
)
|
||
|
Income taxes receivable/payable
|
(60.6
|
)
|
|
(29.9
|
)
|
||
|
Deferred revenue and other deferred credits
|
(271.5
|
)
|
|
28.0
|
|
||
|
Other
|
185.6
|
|
|
1.2
|
|
||
|
Net cash provided by operating activities
|
334.0
|
|
|
308.8
|
|
||
|
Investing activities
|
|
|
|
|
|
||
|
Purchase of property, plant and equipment
|
(88.1
|
)
|
|
(104.7
|
)
|
||
|
Proceeds from sale of assets
|
0.2
|
|
|
—
|
|
||
|
Net cash used in investing activities
|
(87.9
|
)
|
|
(104.7
|
)
|
||
|
Financing activities
|
|
|
|
|
|
||
|
Proceeds from issuance of bonds
|
—
|
|
|
299.8
|
|
||
|
Principal payments of debt
|
(1.8
|
)
|
|
(9.8
|
)
|
||
|
Payments on term loan
|
(6.3
|
)
|
|
—
|
|
||
|
Payments on bonds
|
—
|
|
|
(213.6
|
)
|
||
|
Taxes paid related to net share settlement awards
|
(13.1
|
)
|
|
(14.3
|
)
|
||
|
Debt issuance and financing costs
|
(0.9
|
)
|
|
(13.7
|
)
|
||
|
Proceeds from financing under the New Markets Tax Credit Program
|
7.6
|
|
|
—
|
|
||
|
Purchase of treasury stock
|
(207.6
|
)
|
|
(317.6
|
)
|
||
|
Change in restricted cash
|
(4.4
|
)
|
|
(86.4
|
)
|
||
|
Dividends Paid
|
(24.0
|
)
|
|
—
|
|
||
|
Net cash used in financing activities
|
(250.5
|
)
|
|
(355.6
|
)
|
||
|
Effect of exchange rate changes on cash and cash equivalents
|
3.6
|
|
|
(5.3
|
)
|
||
|
Net decrease in cash and cash equivalents for the period
|
(0.8
|
)
|
|
(156.8
|
)
|
||
|
Cash and cash equivalents, beginning of period
|
697.7
|
|
|
957.3
|
|
||
|
Cash and cash equivalents, end of period
|
$
|
696.9
|
|
|
$
|
800.5
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
Changes in Estimates
|
|
June 29, 2017
|
|
June 30, 2016
|
|
June 29, 2017
|
|
June 30, 2016
|
||||||||
|
Favorable (Unfavorable) Cumulative Catch-up Adjustment by Segment
|
|
|
|
|
|
|
|
|
||||||||
|
Fuselage
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
16.2
|
|
|
Propulsion
|
|
6.1
|
|
|
(8.8
|
)
|
|
3.8
|
|
|
(0.7
|
)
|
||||
|
Wing
|
|
17.5
|
|
|
9.8
|
|
|
22.0
|
|
|
19.1
|
|
||||
|
Total Favorable Cumulative Catch-up Adjustment
|
|
$
|
24.3
|
|
|
$
|
1.0
|
|
|
$
|
29.1
|
|
|
$
|
34.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(Forward Loss) and Changes in Estimates on Loss Programs by Segment
|
|
|
|
|
|
|
|
|
||||||||
|
Fuselage
|
|
$
|
(231.7
|
)
|
|
$
|
(134.5
|
)
|
|
$
|
(237.6
|
)
|
|
$
|
(131.4
|
)
|
|
Propulsion
|
|
(48.0
|
)
|
|
(2.4
|
)
|
|
(48.0
|
)
|
|
6.5
|
|
||||
|
Wing
|
|
(73.8
|
)
|
|
1.2
|
|
|
(72.0
|
)
|
|
4.2
|
|
||||
|
Total Forward Loss
|
|
$
|
(353.5
|
)
|
|
$
|
(135.7
|
)
|
|
$
|
(357.6
|
)
|
|
$
|
(120.7
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Change in Estimate
|
|
$
|
(329.2
|
)
|
|
$
|
(134.7
|
)
|
|
$
|
(328.5
|
)
|
|
$
|
(86.1
|
)
|
|
EPS Impact (diluted per share based upon statutory rates)
|
|
$
|
(1.75
|
)
|
|
$
|
(0.66
|
)
|
|
$
|
(1.73
|
)
|
|
$
|
(0.41
|
)
|
|
|
June 29,
2017 |
|
December 31,
2016 |
||||
|
Trade receivables
|
$
|
813.1
|
|
|
$
|
647.3
|
|
|
Other
|
12.0
|
|
|
18.4
|
|
||
|
Less: allowance for doubtful accounts
|
(0.8
|
)
|
|
(5.2
|
)
|
||
|
Accounts receivable, net
|
$
|
824.3
|
|
|
$
|
660.5
|
|
|
|
June 29,
2017 |
|
December 31,
2016 |
||||
|
Raw materials
|
$
|
293.9
|
|
|
$
|
281.9
|
|
|
Work-in-process
|
767.6
|
|
|
790.7
|
|
||
|
Finished goods
|
28.0
|
|
|
30.9
|
|
||
|
Product inventory
|
1,089.5
|
|
|
1,103.5
|
|
||
|
Capitalized pre-production
(1)
|
90.7
|
|
|
103.5
|
|
||
|
Deferred production
(2)
|
656.1
|
|
|
717.4
|
|
||
|
Forward loss provision
(3)
|
(510.6
|
)
|
|
(409.1
|
)
|
||
|
Total inventory, net
|
$
|
1,325.7
|
|
|
$
|
1,515.3
|
|
|
|
|
(1)
|
For the period ended June 29, 2017
$76.5
and
$10.1
on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016, includes
$83.7
and
$15.2
on the A350 XWB and Rolls-Royce BR725 programs, respectively.
|
|
(2)
|
For the period ended June 29, 2017,
$646.2
and
$122.3
on the A350 XWB and Rolls-Royce BR725 programs, respectively. For the period ended December 31, 2016,
$657.2
and
$114.6
on the A350 XWB and Rolls-Royce BR725 programs, respectively.
|
|
(3)
|
For the period ended June 29, 2017,
($261.9)
,
($141.2)
, and
($98.6)
on the A350 XWB, Rolls-Royce BR725, and B787 programs, respectively. For the period ended December 31, 2016,
($255.8)
and
($140.8)
on the A350 XWB and Rolls-Royce BR725 programs, respectively. The forward loss charge recorded on the B787 program in the second quarter of 2017 exceeded the program's inventory balance. The excess of the charge over the program's inventory was classified as a contract liability and reported in other current liabilities on the balance sheet in the amount of
$254.2
as of June 29, 2017. Includes a
$2.1
reclassification between Work-in-process and Forward loss provision as of December 31, 2016.
|
|
Model
|
|
Current Block Deliveries
|
|
Contract Block
Quantity
|
||
|
A350 XWB
|
|
180
|
|
|
800
|
|
|
Rolls-Royce BR725
|
|
289
|
|
|
350
|
|
|
|
June 29,
2017 |
|
December 31,
2016 |
||||
|
Land
|
$
|
15.5
|
|
|
$
|
14.9
|
|
|
Buildings (including improvements)
|
663.2
|
|
|
642.5
|
|
||
|
Machinery and equipment
(1)
|
1,409.1
|
|
|
1,373.9
|
|
||
|
Tooling
|
992.6
|
|
|
982.4
|
|
||
|
Capitalized software
(1)
|
262.0
|
|
|
261.9
|
|
||
|
Construction-in-progress
|
236.4
|
|
|
193.7
|
|
||
|
Total
|
3,578.8
|
|
|
3,469.3
|
|
||
|
Less: accumulated depreciation
|
(1,587.4
|
)
|
|
(1,477.7
|
)
|
||
|
Property, plant and equipment, net
|
$
|
1,991.4
|
|
|
$
|
1,991.6
|
|
|
|
|
|
June 29,
2017 |
|
December 31,
2016 |
||||
|
Intangible assets
|
|
|
|
|
|
||
|
Patents
|
$
|
1.9
|
|
|
$
|
1.9
|
|
|
Favorable leasehold interests
|
6.3
|
|
|
6.3
|
|
||
|
Total intangible assets
|
8.2
|
|
|
8.2
|
|
||
|
Less: Accumulated amortization - patents
|
(1.8
|
)
|
|
(1.8
|
)
|
||
|
Accumulated amortization - favorable leasehold interest
|
(4.4
|
)
|
|
(4.2
|
)
|
||
|
Intangible assets, net
|
2.0
|
|
|
2.2
|
|
||
|
Deferred financing
|
|
|
|
|
|
||
|
Deferred financing costs
|
39.5
|
|
|
38.5
|
|
||
|
Less: Accumulated amortization - deferred financing costs
|
(33.0
|
)
|
|
(32.2
|
)
|
||
|
Deferred financing costs, net
|
6.5
|
|
|
6.3
|
|
||
|
Other
|
|
|
|
|
|
||
|
Goodwill - Europe
|
2.4
|
|
|
2.3
|
|
||
|
Equity in net assets of affiliates
|
4.5
|
|
|
4.4
|
|
||
|
Supply agreements
(1)
|
11.1
|
|
|
17.0
|
|
||
|
Restricted cash - collateral requirements
|
19.9
|
|
|
19.9
|
|
||
|
Deferred Tax Asset - non-current
|
126.6
|
|
|
128.8
|
|
||
|
Other
|
40.2
|
|
|
40.0
|
|
||
|
Total
|
$
|
213.2
|
|
|
$
|
220.9
|
|
|
|
|
(1)
|
Under two agreements, certain payments accounted for as consideration paid by the Company to a customer and a supplier are being amortized as reductions to net revenues.
|
|
|
June 29,
2017 |
|
December 31,
2016 |
||||
|
B787
|
$
|
522.7
|
|
|
$
|
834.8
|
|
|
Boeing - All other programs
|
8.9
|
|
|
18.6
|
|
||
|
A350 XWB
|
57.0
|
|
|
116.7
|
|
||
|
Airbus — All other programs
|
1.8
|
|
|
2.2
|
|
||
|
Other
|
30.6
|
|
|
27.9
|
|
||
|
Total advance payments and deferred revenue/credits
|
$
|
621.0
|
|
|
$
|
1,000.2
|
|
|
Balance, December 31, 2016
|
$
|
77.8
|
|
|
Grant liability amortized
|
(8.8
|
)
|
|
|
Exchange rate
|
1.1
|
|
|
|
Total deferred grant income liability, June 29, 2017
|
$
|
70.1
|
|
|
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.
|
|
|
|
|
June 29, 2017
|
|
December 31, 2016
|
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
||||||||
|
Senior unsecured term loan A (including current portion)
|
$
|
479.2
|
|
|
$
|
473.2
|
|
(2)
|
$
|
485.2
|
|
|
$
|
484.8
|
|
(2)
|
|
Senior unsecured notes due 2022
|
294.3
|
|
|
306.5
|
|
(1)
|
293.8
|
|
|
307.0
|
|
(1)
|
||||
|
Senior unsecured notes due 2026
|
297.1
|
|
|
300.6
|
|
(1)
|
296.9
|
|
|
292.4
|
|
(1)
|
||||
|
Malaysian loan
|
—
|
|
|
—
|
|
(2)
|
1.0
|
|
|
0.9
|
|
(2)
|
||||
|
Total
|
$
|
1,070.6
|
|
|
$
|
1,080.3
|
|
|
$
|
1,076.9
|
|
|
$
|
1,085.1
|
|
|
|
|
|
(1)
|
Level 1 Fair Value hierarchy
|
|
(2)
|
Level 2 Fair Value hierarchy
|
|
|
June 29, 2017
|
|
December 31, 2016
|
||||||||||
|
|
Current
|
Noncurrent
|
|
Current
|
Noncurrent
|
||||||||
|
Senior unsecured term loan A
|
$
|
24.9
|
|
$
|
454.3
|
|
|
$
|
24.9
|
|
$
|
460.3
|
|
|
Senior notes due 2022
|
—
|
|
294.3
|
|
|
—
|
|
293.8
|
|
||||
|
Senior notes due 2026
|
—
|
|
297.1
|
|
|
—
|
|
296.9
|
|
||||
|
Malaysian term loan
|
—
|
|
—
|
|
|
1.0
|
|
—
|
|
||||
|
Present value of capital lease obligations
|
1.7
|
|
14.9
|
|
|
0.8
|
|
9.0
|
|
||||
|
Total
|
$
|
26.6
|
|
$
|
1,060.6
|
|
|
$
|
26.7
|
|
$
|
1,060.0
|
|
|
|
|
Defined Benefit Plans
|
||||||||||||||
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
||||||||||||
|
Components of Net Periodic Pension Expense/(Income)
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
||||||||
|
Service cost
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.5
|
|
|
$
|
0.6
|
|
|
Interest cost
|
|
9.3
|
|
|
11.4
|
|
|
18.9
|
|
|
23.1
|
|
||||
|
Expected return on plan assets
|
|
(18.1
|
)
|
|
(19.8
|
)
|
|
(36.4
|
)
|
|
(39.3
|
)
|
||||
|
Amortization of net loss
|
|
—
|
|
|
1.7
|
|
|
—
|
|
|
2.4
|
|
||||
|
Special termination benefits
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.9
|
|
||||
|
Net periodic pension (income) expense
|
|
$
|
(8.5
|
)
|
|
$
|
(6.4
|
)
|
|
$
|
(17.0
|
)
|
|
$
|
(2.3
|
)
|
|
|
|
(1)
|
Special termination benefits related to early retirement incentives offered as part of a voluntary retirement plan in the first quarter of 2016.
|
|
|
|
Other Benefits
|
||||||||||||||
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
||||||||||||
|
Components of Other Benefit Expense
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
||||||||
|
Service cost
|
|
$
|
0.3
|
|
|
$
|
0.4
|
|
|
$
|
0.6
|
|
|
$
|
0.9
|
|
|
Interest cost
|
|
0.3
|
|
|
0.5
|
|
|
0.6
|
|
|
1.1
|
|
||||
|
Amortization of prior service cost
|
|
(0.3
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|
(0.5
|
)
|
||||
|
Amortization of net gain
|
|
(0.5
|
)
|
|
—
|
|
|
(1.1
|
)
|
|
—
|
|
||||
|
Special termination benefits
(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
||||
|
Net periodic other benefit (income) expense
|
|
$
|
(0.2
|
)
|
|
$
|
0.4
|
|
|
$
|
(0.4
|
)
|
|
$
|
4.6
|
|
|
|
|
(1)
|
Special termination benefits related to early retirement incentives offered as part of a voluntary retirement plan in the first quarter of 2016.
|
|
|
For the Three Months Ended
|
||||||||||||||||||||
|
|
June 29, 2017
|
|
June 30, 2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
||||||||||
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(Loss) income available to common stockholders
|
$
|
(56.8
|
)
|
|
118.2
|
|
|
$
|
(0.48
|
)
|
|
$
|
44.8
|
|
|
128.6
|
|
|
$
|
0.35
|
|
|
Income allocated to participating securities
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
0.1
|
|
|
|
|
||||
|
Net (loss) income
|
$
|
(56.8
|
)
|
|
|
|
|
|
|
|
$
|
44.8
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted potential common shares
|
|
|
|
—
|
|
|
|
|
|
|
|
|
0.6
|
|
|
|
|
||||
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) income
|
$
|
(56.8
|
)
|
|
118.2
|
|
|
$
|
(0.48
|
)
|
|
$
|
44.8
|
|
|
129.3
|
|
|
$
|
0.35
|
|
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
|
June 29, 2017
|
|
June 30, 2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
||||||||||
|
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income available to common shareholders
|
$
|
84.8
|
|
|
118.8
|
|
|
$
|
0.71
|
|
|
$
|
216.2
|
|
|
130.1
|
|
|
$
|
1.66
|
|
|
Income allocated to participating securities
|
0.1
|
|
|
0.1
|
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
|
|
||||
|
Net income
|
$
|
84.9
|
|
|
|
|
|
|
|
|
$
|
216.4
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Diluted potential common shares
|
|
|
|
0.9
|
|
|
|
|
|
|
|
|
0.7
|
|
|
|
|
||||
|
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income
|
$
|
84.9
|
|
|
119.8
|
|
|
$
|
0.71
|
|
|
$
|
216.4
|
|
|
130.9
|
|
|
$
|
1.65
|
|
|
|
As of
|
|
As of
|
||||
|
|
June 29, 2017
|
|
December 31, 2016
|
||||
|
Pension
|
$
|
(98.5
|
)
|
|
$
|
(98.5
|
)
|
|
SERP/Retiree medical
|
19.6
|
|
|
20.5
|
|
||
|
Foreign currency impact on long term intercompany loan
|
(16.5
|
)
|
|
(19.1
|
)
|
||
|
Currency translation adjustment
|
(71.7
|
)
|
|
(89.8
|
)
|
||
|
Total accumulated other comprehensive loss
|
$
|
(167.1
|
)
|
|
$
|
(186.9
|
)
|
|
Balance, December 31, 2016
|
$
|
163.7
|
|
|
Charges to costs and expenses
|
3.8
|
|
|
|
Payouts
|
(3.0
|
)
|
|
|
Exchange rate
|
0.6
|
|
|
|
Balance, June 29, 2017
|
$
|
165.1
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
||||||||
|
Kansas Development Finance Authority bond
|
$
|
0.7
|
|
|
$
|
0.8
|
|
|
$
|
1.7
|
|
|
$
|
1.9
|
|
|
Rental and miscellaneous income
|
(1.5
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
0.1
|
|
||||
|
Interest income
|
1.5
|
|
|
0.9
|
|
|
2.5
|
|
|
1.7
|
|
||||
|
Foreign currency losses
|
0.5
|
|
|
(7.9
|
)
|
|
(0.1
|
)
|
|
(12.1
|
)
|
||||
|
Total
|
$
|
1.2
|
|
|
$
|
(6.2
|
)
|
|
$
|
2.7
|
|
|
$
|
(8.4
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
||||||||
|
Segment Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuselage Systems
(1)
|
$
|
938.2
|
|
|
$
|
923.6
|
|
|
$
|
1,855.1
|
|
|
$
|
1,799.4
|
|
|
Propulsion Systems
|
436.5
|
|
|
481.7
|
|
|
842.8
|
|
|
920.3
|
|
||||
|
Wing Systems
|
450.5
|
|
|
424.2
|
|
|
819.5
|
|
|
784.7
|
|
||||
|
All Other
(1)
|
0.9
|
|
|
0.4
|
|
|
2.8
|
|
|
7.1
|
|
||||
|
|
$
|
1,826.1
|
|
|
$
|
1,829.9
|
|
|
$
|
3,520.2
|
|
|
$
|
3,511.5
|
|
|
Segment Operating (Loss) Income
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Fuselage Systems
(1) (2)
|
$
|
(80.2
|
)
|
|
$
|
21.0
|
|
|
$
|
70.2
|
|
|
$
|
198.7
|
|
|
Propulsion Systems
(2)
|
41.0
|
|
|
74.3
|
|
|
114.7
|
|
|
173.4
|
|
||||
|
Wing Systems
(2)
|
30.8
|
|
|
64.8
|
|
|
89.3
|
|
|
123.6
|
|
||||
|
All Other
(1)
|
(0.6
|
)
|
|
(0.4
|
)
|
|
(0.7
|
)
|
|
1.1
|
|
||||
|
|
(9.0
|
)
|
|
159.7
|
|
|
273.5
|
|
|
496.8
|
|
||||
|
Corporate SG&A
|
(46.1
|
)
|
|
(70.2
|
)
|
|
(98.0
|
)
|
|
(120.2
|
)
|
||||
|
Impact of severe weather event
|
(9.1
|
)
|
|
—
|
|
|
(19.9
|
)
|
|
—
|
|
||||
|
Research and development
|
(6.7
|
)
|
|
(4.4
|
)
|
|
(11.7
|
)
|
|
(10.5
|
)
|
||||
|
Unallocated cost of sales
(3)
|
(11.9
|
)
|
|
(1.8
|
)
|
|
(13.1
|
)
|
|
(16.3
|
)
|
||||
|
Total Operating (Loss) Income
|
$
|
(82.8
|
)
|
|
$
|
83.3
|
|
|
$
|
130.8
|
|
|
$
|
349.8
|
|
|
|
|
(1)
|
Includes a reclassification of
$8.2
of revenues and
$1.7
of operating income from the Other segment to the Fuselage Systems segment for the three months ended
June 30, 2016
and
$10.2
of revenues and
$2.1
of operating income from the Other segment to the Fuselage Systems segment for the six months ended
June 30, 2016
.
|
|
(2)
|
Includes forward losses, changes in estimates on loss programs, and cumulative catch-up adjustments. These changes in estimates are further detailed in Note 3, Changes in Estimates.
|
|
(3)
|
Includes
$0.5
and
$2.0
of warranty expense for the three months ended
June 29, 2017
and
June 30, 2016
, respectively and
$1.7
and
$4.3
for the six months ended June 29, 2017 and June 30, 2016, respectively. Also includes a charge for excess purchases and purchase commitments of
$11.5
for the three and six months ended June 29, 2017 and
$11.8
related to early retirement incentives for the six months ended
June 30, 2016
.
|
|
(i)
|
Holdings, as the parent company and parent guarantor to the A&R Credit Agreement, as further detailed in Note 12, Debt;
|
|
(ii)
|
Spirit, as the subsidiary issuer of the 2022 Notes and the 2026 Notes;
|
|
(iii)
|
The Company’s subsidiaries (“Non-Guarantor Subsidiaries”) on a combined basis;
|
|
(iv)
|
Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Holdings and the Non-Guarantor Subsidiaries, (b) eliminate the investments in the Company’s subsidiaries, and (c) record consolidating entries; and
|
|
(v)
|
Holdings and its subsidiaries on a consolidated basis.
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Net revenues
|
$
|
—
|
|
|
$
|
1,608.0
|
|
|
$
|
380.5
|
|
|
$
|
(162.4
|
)
|
|
$
|
1,826.1
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of sales
|
—
|
|
|
1,678.9
|
|
|
330.5
|
|
|
(162.4
|
)
|
|
1,847.0
|
|
|||||
|
Selling, general and administrative
|
3.3
|
|
|
39.2
|
|
|
3.6
|
|
|
—
|
|
|
46.1
|
|
|||||
|
Impact of severe weather event
|
—
|
|
|
9.1
|
|
|
—
|
|
|
—
|
|
|
9.1
|
|
|||||
|
Research and development
|
—
|
|
|
6.5
|
|
|
0.2
|
|
|
—
|
|
|
6.7
|
|
|||||
|
Total operating costs and expenses
|
3.3
|
|
|
1,733.7
|
|
|
334.3
|
|
|
(162.4
|
)
|
|
1,908.9
|
|
|||||
|
Operating (loss) income
|
(3.3
|
)
|
|
(125.7
|
)
|
|
46.2
|
|
|
—
|
|
|
(82.8
|
)
|
|||||
|
Interest expense and financing fee amortization
|
—
|
|
|
(10.1
|
)
|
|
(1.6
|
)
|
|
1.5
|
|
|
(10.2
|
)
|
|||||
|
Other income (expense), net
|
—
|
|
|
2.2
|
|
|
0.5
|
|
|
(1.5
|
)
|
|
1.2
|
|
|||||
|
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(3.3
|
)
|
|
(133.6
|
)
|
|
45.1
|
|
|
—
|
|
|
(91.8
|
)
|
|||||
|
Income tax benefit (provision)
|
1.4
|
|
|
43.2
|
|
|
(9.6
|
)
|
|
—
|
|
|
35.0
|
|
|||||
|
(Loss) income before equity in net income of affiliate and subsidiaries
|
(1.9
|
)
|
|
(90.4
|
)
|
|
35.5
|
|
|
—
|
|
|
(56.8
|
)
|
|||||
|
Equity in net income of affiliate
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Equity in net income of subsidiaries
|
(54.9
|
)
|
|
35.5
|
|
|
—
|
|
|
19.4
|
|
|
—
|
|
|||||
|
Net income
|
(56.8
|
)
|
|
(54.9
|
)
|
|
35.5
|
|
|
19.4
|
|
|
(56.8
|
)
|
|||||
|
Other comprehensive income (loss)
|
15.8
|
|
|
15.8
|
|
|
16.2
|
|
|
(32.0
|
)
|
|
15.8
|
|
|||||
|
Comprehensive income (loss)
|
$
|
(41.0
|
)
|
|
$
|
(39.1
|
)
|
|
$
|
51.7
|
|
|
$
|
(12.6
|
)
|
|
$
|
(41.0
|
)
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Net revenues
|
$
|
—
|
|
|
$
|
1,651.9
|
|
|
$
|
364.9
|
|
|
$
|
(186.9
|
)
|
|
$
|
1,829.9
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of sales
|
—
|
|
|
1,533.8
|
|
|
325.1
|
|
|
(186.9
|
)
|
|
1,672.0
|
|
|||||
|
Selling, general and administrative
|
2.4
|
|
|
63.5
|
|
|
4.3
|
|
|
—
|
|
|
70.2
|
|
|||||
|
Research and development
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|||||
|
Total operating costs and expenses
|
2.4
|
|
|
1,601.7
|
|
|
329.4
|
|
|
(186.9
|
)
|
|
1,746.6
|
|
|||||
|
Operating (loss) income
|
(2.4
|
)
|
|
50.2
|
|
|
35.5
|
|
|
—
|
|
|
83.3
|
|
|||||
|
Interest expense and financing fee amortization
|
—
|
|
|
(23.7
|
)
|
|
(2.1
|
)
|
|
1.9
|
|
|
(23.9
|
)
|
|||||
|
Other income (expense), net
|
—
|
|
|
3.6
|
|
|
(7.9
|
)
|
|
(1.9
|
)
|
|
(6.2
|
)
|
|||||
|
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(2.4
|
)
|
|
30.1
|
|
|
25.5
|
|
|
—
|
|
|
53.2
|
|
|||||
|
Income tax benefit (provision)
|
0.7
|
|
|
(5.7
|
)
|
|
(3.6
|
)
|
|
—
|
|
|
(8.6
|
)
|
|||||
|
(Loss) income before equity in net income of affiliate and subsidiaries
|
(1.7
|
)
|
|
24.4
|
|
|
21.9
|
|
|
—
|
|
|
44.6
|
|
|||||
|
Equity in net income of affiliate
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
0.2
|
|
|||||
|
Equity in net income of subsidiaries
|
46.3
|
|
|
21.9
|
|
|
—
|
|
|
(68.2
|
)
|
|
—
|
|
|||||
|
Net income
|
44.8
|
|
|
46.3
|
|
|
22.1
|
|
|
(68.4
|
)
|
|
44.8
|
|
|||||
|
Other comprehensive (loss) income
|
(26.4
|
)
|
|
(26.4
|
)
|
|
(26.8
|
)
|
|
53.2
|
|
|
(26.4
|
)
|
|||||
|
Comprehensive income (loss)
|
$
|
18.4
|
|
|
$
|
19.9
|
|
|
$
|
(4.7
|
)
|
|
$
|
(15.2
|
)
|
|
$
|
18.4
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Net revenues
|
$
|
—
|
|
|
$
|
3,128.1
|
|
|
$
|
713.6
|
|
|
$
|
(321.5
|
)
|
|
$
|
3,520.2
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of sales
|
—
|
|
|
2,951.8
|
|
|
629.5
|
|
|
(321.5
|
)
|
|
3,259.8
|
|
|||||
|
Selling, general and administrative
|
4.9
|
|
|
86.0
|
|
|
7.1
|
|
|
—
|
|
|
98.0
|
|
|||||
|
Impact of severe weather event
|
—
|
|
|
19.9
|
|
|
—
|
|
|
—
|
|
|
19.9
|
|
|||||
|
Research and development
|
—
|
|
|
10.6
|
|
|
1.1
|
|
|
—
|
|
|
11.7
|
|
|||||
|
Total operating costs and expenses
|
4.9
|
|
|
3,068.3
|
|
|
637.7
|
|
|
(321.5
|
)
|
|
3,389.4
|
|
|||||
|
Operating (loss) income
|
(4.9
|
)
|
|
59.8
|
|
|
75.9
|
|
|
—
|
|
|
130.8
|
|
|||||
|
Interest expense and financing fee amortization
|
—
|
|
|
(19.6
|
)
|
|
(3.2
|
)
|
|
3.1
|
|
|
(19.7
|
)
|
|||||
|
Other income (expense), net
|
—
|
|
|
5.8
|
|
|
—
|
|
|
(3.1
|
)
|
|
2.7
|
|
|||||
|
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(4.9
|
)
|
|
46.0
|
|
|
72.7
|
|
|
—
|
|
|
113.8
|
|
|||||
|
Income tax benefit (provision)
|
1.9
|
|
|
(17.2
|
)
|
|
(13.7
|
)
|
|
—
|
|
|
(29.0
|
)
|
|||||
|
(Loss) income before equity in net income of affiliate and subsidiaries
|
(3.0
|
)
|
|
28.8
|
|
|
59.0
|
|
|
—
|
|
|
84.8
|
|
|||||
|
Equity in net income of affiliate
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
|||||
|
Equity in net income of subsidiaries
|
87.8
|
|
|
59.0
|
|
|
—
|
|
|
(146.8
|
)
|
|
—
|
|
|||||
|
Net income
|
84.9
|
|
|
87.8
|
|
|
59.1
|
|
|
(146.9
|
)
|
|
84.9
|
|
|||||
|
Other comprehensive (loss) income
|
19.8
|
|
|
19.8
|
|
|
20.7
|
|
|
(40.5
|
)
|
|
19.8
|
|
|||||
|
Comprehensive income (loss)
|
$
|
104.7
|
|
|
$
|
107.6
|
|
|
$
|
79.8
|
|
|
$
|
(187.4
|
)
|
|
$
|
104.7
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Net revenues
|
$
|
—
|
|
|
$
|
3,162.4
|
|
|
$
|
675.8
|
|
|
$
|
(326.7
|
)
|
|
$
|
3,511.5
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Cost of sales
|
—
|
|
|
2,748.2
|
|
|
609.5
|
|
|
(326.7
|
)
|
|
3,031.0
|
|
|||||
|
Selling, general and administrative
|
3.9
|
|
|
107.7
|
|
|
8.6
|
|
|
—
|
|
|
120.2
|
|
|||||
|
Research and development
|
—
|
|
|
9.4
|
|
|
1.1
|
|
|
—
|
|
|
10.5
|
|
|||||
|
Total operating costs and expenses
|
3.9
|
|
|
2,865.3
|
|
|
619.2
|
|
|
(326.7
|
)
|
|
3,161.7
|
|
|||||
|
Operating (loss) income
|
(3.9
|
)
|
|
297.1
|
|
|
56.6
|
|
|
—
|
|
|
349.8
|
|
|||||
|
Interest expense and financing fee amortization
|
—
|
|
|
(35.1
|
)
|
|
(4.1
|
)
|
|
3.9
|
|
|
(35.3
|
)
|
|||||
|
Other income (expense), net
|
—
|
|
|
7.5
|
|
|
(12.0
|
)
|
|
(3.9
|
)
|
|
(8.4
|
)
|
|||||
|
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(3.9
|
)
|
|
269.5
|
|
|
40.5
|
|
|
—
|
|
|
306.1
|
|
|||||
|
Income tax benefit (provision)
|
1.2
|
|
|
(84.3
|
)
|
|
(7.4
|
)
|
|
—
|
|
|
(90.5
|
)
|
|||||
|
(Loss) income before equity in net income of affiliate and subsidiaries
|
(2.7
|
)
|
|
185.2
|
|
|
33.1
|
|
|
—
|
|
|
215.6
|
|
|||||
|
Equity in net income of affiliate
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
0.8
|
|
|||||
|
Equity in net income of subsidiaries
|
218.3
|
|
|
33.1
|
|
|
—
|
|
|
(251.4
|
)
|
|
—
|
|
|||||
|
Net income
|
216.4
|
|
|
218.3
|
|
|
33.9
|
|
|
(252.2
|
)
|
|
216.4
|
|
|||||
|
Other comprehensive (loss) income
|
(34.4
|
)
|
|
(34.4
|
)
|
|
(35.6
|
)
|
|
70.0
|
|
|
(34.4
|
)
|
|||||
|
Comprehensive income (loss)
|
$
|
182.0
|
|
|
$
|
183.9
|
|
|
$
|
(1.7
|
)
|
|
$
|
(182.2
|
)
|
|
$
|
182.0
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
649.5
|
|
|
$
|
47.4
|
|
|
$
|
—
|
|
|
$
|
696.9
|
|
|
Restricted cash
|
—
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|||||
|
Accounts receivable, net
|
—
|
|
|
819.8
|
|
|
341.2
|
|
|
(336.7
|
)
|
|
824.3
|
|
|||||
|
Inventory, net
|
—
|
|
|
903.0
|
|
|
422.7
|
|
|
—
|
|
|
1,325.7
|
|
|||||
|
Other current assets
|
—
|
|
|
99.9
|
|
|
6.6
|
|
|
—
|
|
|
106.5
|
|
|||||
|
Total current assets
|
—
|
|
|
2,476.6
|
|
|
817.9
|
|
|
(336.7
|
)
|
|
2,957.8
|
|
|||||
|
Property, plant and equipment, net
|
—
|
|
|
1,468.7
|
|
|
522.7
|
|
|
—
|
|
|
1,991.4
|
|
|||||
|
Pension assets, net
|
—
|
|
|
285.2
|
|
|
14.9
|
|
|
—
|
|
|
300.1
|
|
|||||
|
Investment in subsidiary
|
1,811.8
|
|
|
644.6
|
|
|
—
|
|
|
(2,456.4
|
)
|
|
—
|
|
|||||
|
Other assets
|
—
|
|
|
389.1
|
|
|
122.7
|
|
|
(298.6
|
)
|
|
213.2
|
|
|||||
|
Total assets
|
$
|
1,811.8
|
|
|
$
|
5,264.2
|
|
|
$
|
1,478.2
|
|
|
$
|
(3,091.7
|
)
|
|
$
|
5,462.5
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accounts payable
|
$
|
—
|
|
|
$
|
648.1
|
|
|
$
|
414.6
|
|
|
$
|
(336.7
|
)
|
|
$
|
726.0
|
|
|
Accrued expenses
|
—
|
|
|
211.3
|
|
|
35.2
|
|
|
—
|
|
|
246.5
|
|
|||||
|
Profit sharing
|
—
|
|
|
39.6
|
|
|
1.7
|
|
|
—
|
|
|
41.3
|
|
|||||
|
Current portion of long-term debt
|
—
|
|
|
25.8
|
|
|
0.8
|
|
|
—
|
|
|
26.6
|
|
|||||
|
Advance payments, short-term
|
—
|
|
|
153.9
|
|
|
—
|
|
|
—
|
|
|
153.9
|
|
|||||
|
Deferred revenue and other deferred credits, short-term
|
—
|
|
|
70.4
|
|
|
1.3
|
|
|
—
|
|
|
71.7
|
|
|||||
|
Deferred grant income liability - current
|
—
|
|
|
—
|
|
|
20.3
|
|
|
—
|
|
|
20.3
|
|
|||||
|
Other current liabilities
|
—
|
|
|
539.4
|
|
|
12.0
|
|
|
—
|
|
|
551.4
|
|
|||||
|
Total current liabilities
|
—
|
|
|
1,688.5
|
|
|
485.9
|
|
|
(336.7
|
)
|
|
1,837.7
|
|
|||||
|
Long-term debt
|
—
|
|
|
1,051.5
|
|
|
207.1
|
|
|
(198.0
|
)
|
|
1,060.6
|
|
|||||
|
Advance payments, long-term
|
—
|
|
|
280.8
|
|
|
—
|
|
|
—
|
|
|
280.8
|
|
|||||
|
Pension/OPEB obligation
|
—
|
|
|
41.6
|
|
|
—
|
|
|
—
|
|
|
41.6
|
|
|||||
|
Deferred grant income liability - non-current
|
—
|
|
|
—
|
|
|
49.8
|
|
|
—
|
|
|
49.8
|
|
|||||
|
Deferred revenue and other deferred credits
|
—
|
|
|
111.6
|
|
|
3.0
|
|
|
—
|
|
|
114.6
|
|
|||||
|
Other liabilities
|
—
|
|
|
358.5
|
|
|
7.7
|
|
|
(100.6
|
)
|
|
265.6
|
|
|||||
|
Total equity
|
1,811.8
|
|
|
1,731.7
|
|
|
724.7
|
|
|
(2,456.4
|
)
|
|
1,811.8
|
|
|||||
|
Total liabilities and stockholders’ equity
|
$
|
1,811.8
|
|
|
$
|
5,264.2
|
|
|
$
|
1,478.2
|
|
|
$
|
(3,091.7
|
)
|
|
$
|
5,462.5
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
680.1
|
|
|
$
|
17.6
|
|
|
$
|
—
|
|
|
$
|
697.7
|
|
|
Accounts receivable, net
|
—
|
|
|
785.0
|
|
|
249.4
|
|
|
(373.9
|
)
|
|
660.5
|
|
|||||
|
Inventory, net
|
—
|
|
|
1,058.8
|
|
|
456.5
|
|
|
—
|
|
|
1,515.3
|
|
|||||
|
Other current assets
|
—
|
|
|
29.0
|
|
|
7.9
|
|
|
—
|
|
|
36.9
|
|
|||||
|
Total current assets
|
—
|
|
|
2,552.9
|
|
|
731.4
|
|
|
(373.9
|
)
|
|
2,910.4
|
|
|||||
|
Property, plant and equipment, net
|
—
|
|
|
1,462.3
|
|
|
529.3
|
|
|
—
|
|
|
1,991.6
|
|
|||||
|
Pension assets, net
|
—
|
|
|
268.1
|
|
|
14.2
|
|
|
—
|
|
|
282.3
|
|
|||||
|
Investment in subsidiary
|
1,928.8
|
|
|
544.4
|
|
|
—
|
|
|
(2,473.2
|
)
|
|
—
|
|
|||||
|
Other assets
|
—
|
|
|
398.9
|
|
|
101.4
|
|
|
(279.4
|
)
|
|
220.9
|
|
|||||
|
Total assets
|
$
|
1,928.8
|
|
|
$
|
5,226.6
|
|
|
$
|
1,376.3
|
|
|
$
|
(3,126.5
|
)
|
|
$
|
5,405.2
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Accounts payable
|
$
|
—
|
|
|
$
|
527.0
|
|
|
$
|
426.6
|
|
|
$
|
(373.9
|
)
|
|
$
|
579.7
|
|
|
Accrued expenses
|
—
|
|
|
192.8
|
|
|
23.4
|
|
|
—
|
|
|
216.2
|
|
|||||
|
Profit sharing
|
—
|
|
|
97.2
|
|
|
4.2
|
|
|
—
|
|
|
101.4
|
|
|||||
|
Current portion of long-term debt
|
—
|
|
|
25.1
|
|
|
1.6
|
|
|
—
|
|
|
26.7
|
|
|||||
|
Advance payments, short-term
|
—
|
|
|
199.3
|
|
|
—
|
|
|
—
|
|
|
199.3
|
|
|||||
|
Deferred revenue and other deferred credits, short-term
|
—
|
|
|
310.8
|
|
|
1.3
|
|
|
—
|
|
|
312.1
|
|
|||||
|
Deferred grant income liability - current
|
—
|
|
|
—
|
|
|
14.4
|
|
|
—
|
|
|
14.4
|
|
|||||
|
Other current liabilities
|
—
|
|
|
94.2
|
|
|
0.2
|
|
|
—
|
|
|
94.4
|
|
|||||
|
Total current liabilities
|
—
|
|
|
1,446.4
|
|
|
471.7
|
|
|
(373.9
|
)
|
|
1,544.2
|
|
|||||
|
Long-term debt
|
—
|
|
|
1,052.5
|
|
|
206.9
|
|
|
(199.4
|
)
|
|
1,060.0
|
|
|||||
|
Advance payments, long-term
|
—
|
|
|
342.0
|
|
|
—
|
|
|
—
|
|
|
342.0
|
|
|||||
|
Pension/OPEB obligation
|
—
|
|
|
43.9
|
|
|
—
|
|
|
—
|
|
|
43.9
|
|
|||||
|
Deferred grant income liability - non-current
|
—
|
|
|
—
|
|
|
63.4
|
|
|
—
|
|
|
63.4
|
|
|||||
|
Deferred revenue and other deferred credits
|
—
|
|
|
143.4
|
|
|
3.4
|
|
|
—
|
|
|
146.8
|
|
|||||
|
Other liabilities
|
—
|
|
|
349.5
|
|
|
6.6
|
|
|
(80.0
|
)
|
|
276.1
|
|
|||||
|
Total equity
|
1,928.8
|
|
|
1,848.9
|
|
|
624.3
|
|
|
(2,473.2
|
)
|
|
1,928.8
|
|
|||||
|
Total liabilities and stockholders’ equity
|
$
|
1,928.8
|
|
|
$
|
5,226.6
|
|
|
$
|
1,376.3
|
|
|
$
|
(3,126.5
|
)
|
|
$
|
5,405.2
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
255.7
|
|
|
$
|
78.3
|
|
|
$
|
—
|
|
|
$
|
334.0
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Purchase of property, plant and equipment
|
—
|
|
|
(76.2
|
)
|
|
(11.9
|
)
|
|
—
|
|
|
(88.1
|
)
|
|||||
|
Proceeds from sale of assets
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||||
|
Net cash used in investing activities
|
—
|
|
|
(76.0
|
)
|
|
(11.9
|
)
|
|
—
|
|
|
(87.9
|
)
|
|||||
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Principal payments of debt
|
—
|
|
|
(0.6
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(1.8
|
)
|
|||||
|
Payment on term loan
|
—
|
|
|
(6.3
|
)
|
|
|
|
|
—
|
|
|
(6.3
|
)
|
|||||
|
Proceeds (payments) from intercompany debt
|
—
|
|
|
39.0
|
|
|
(39.0
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Taxes paid related to net share settlement of awards
|
—
|
|
|
(13.1
|
)
|
|
—
|
|
|
—
|
|
|
(13.1
|
)
|
|||||
|
Debt issuance and financing costs
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
(0.9
|
)
|
|||||
|
Proceeds from financing under the New Markets Tax Credit Program
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
|||||
|
Proceeds (payments) from subsidiary for purchase of treasury stock
|
207.6
|
|
|
(207.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Purchase of treasury stock
|
(207.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(207.6
|
)
|
|||||
|
Change in restricted cash
|
—
|
|
|
(4.4
|
)
|
|
—
|
|
|
—
|
|
|
(4.4
|
)
|
|||||
|
Proceeds (payments) from subsidiary for dividends paid
|
24.0
|
|
|
(24.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Dividends Paid
|
(24.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24.0
|
)
|
|||||
|
Net cash used in financing activities
|
—
|
|
|
(210.3
|
)
|
|
(40.2
|
)
|
|
—
|
|
|
(250.5
|
)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
3.6
|
|
|
—
|
|
|
3.6
|
|
|||||
|
Net (decrease) increase in cash and cash equivalents for the period
|
—
|
|
|
(30.6
|
)
|
|
29.8
|
|
|
—
|
|
|
(0.8
|
)
|
|||||
|
Cash and cash equivalents, beginning of period
|
—
|
|
|
680.1
|
|
|
17.6
|
|
|
—
|
|
|
697.7
|
|
|||||
|
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
649.5
|
|
|
$
|
47.4
|
|
|
$
|
—
|
|
|
$
|
696.9
|
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
246.3
|
|
|
$
|
62.5
|
|
|
$
|
—
|
|
|
$
|
308.8
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Purchase of property, plant and equipment
|
—
|
|
|
(79.2
|
)
|
|
(25.5
|
)
|
|
—
|
|
|
(104.7
|
)
|
|||||
|
Net cash used in investing activities
|
—
|
|
|
(79.2
|
)
|
|
(25.5
|
)
|
|
—
|
|
|
(104.7
|
)
|
|||||
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Proceeds from issuance of bonds
|
—
|
|
|
299.8
|
|
|
—
|
|
|
—
|
|
|
299.8
|
|
|||||
|
Principal payments of debt
|
—
|
|
|
(8.3
|
)
|
|
(1.5
|
)
|
|
—
|
|
|
(9.8
|
)
|
|||||
|
Payments on bonds
|
—
|
|
|
(213.6
|
)
|
|
—
|
|
|
—
|
|
|
(213.6
|
)
|
|||||
|
Excess tax benefits from share-based payment arrangements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Proceeds (payments) from intercompany debt
|
—
|
|
|
50.5
|
|
|
(50.5
|
)
|
|
—
|
|
|
—
|
|
|||||
|
Debt issuance and financing costs
|
—
|
|
|
(13.7
|
)
|
|
—
|
|
|
—
|
|
|
(13.7
|
)
|
|||||
|
Taxes paid related to net share settlement of awards
|
—
|
|
|
(14.3
|
)
|
|
—
|
|
|
—
|
|
|
(14.3
|
)
|
|||||
|
Proceeds (payments) from subsidiary for purchase of treasury stock
|
317.6
|
|
|
(317.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
Purchase of treasury stock
|
(317.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(317.6
|
)
|
|||||
|
Change in restricted cash
|
—
|
|
|
(86.4
|
)
|
|
—
|
|
|
—
|
|
|
(86.4
|
)
|
|||||
|
Net cash used in financing activities
|
—
|
|
|
(303.6
|
)
|
|
(52.0
|
)
|
|
—
|
|
|
(355.6
|
)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
(5.3
|
)
|
|||||
|
Net decrease in cash and cash equivalents for the period
|
—
|
|
|
(136.5
|
)
|
|
(20.3
|
)
|
|
—
|
|
|
(156.8
|
)
|
|||||
|
Cash and cash equivalents, beginning of period
|
—
|
|
|
894.2
|
|
|
63.1
|
|
|
—
|
|
|
957.3
|
|
|||||
|
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
757.7
|
|
|
$
|
42.8
|
|
|
$
|
—
|
|
|
$
|
800.5
|
|
|
•
|
The ongoing activities of the VIE, collecting and remitting interest and fees, and NMTC compliance were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE;
|
|
•
|
Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investment Fund and CDEs;
|
|
•
|
Chase lacks a material interest in the underlying economics of the project; and
|
|
•
|
The Company is obligated to absorb losses of the VIE.
|
|
•
|
our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs;
|
|
•
|
our ability to perform our obligations under our new and maturing commercial, business aircraft and military development programs, and the related recurring production;
|
|
•
|
our ability to accurately estimate and manage performance, costs and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program;
|
|
•
|
margin pressures and the potential for additional forward losses on new and maturing programs;
|
|
•
|
our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft;
|
|
•
|
the effect on aircraft demand and build rates of changing customer preferences for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia;
|
|
•
|
customer cancellations or deferrals as a result of global economic uncertainty or otherwise;
|
|
•
|
the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates;
|
|
•
|
the success and timely execution of key milestones such as the receipt of necessary regulatory approvals and customer adherence to their announced schedules;
|
|
•
|
our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers;
|
|
•
|
our ability to enter into profitable supply arrangements with additional customers;
|
|
•
|
the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers;
|
|
•
|
any adverse impact on Boeing’s and Airbus’ production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes or acts of terrorism;
|
|
•
|
any adverse impact on the demand for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks;
|
|
•
|
our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions;
|
|
•
|
returns on pension plan assets and the impact of future discount rate changes on pension obligations;
|
|
•
|
our ability to borrow additional funds or refinance debt;
|
|
•
|
competition from commercial aerospace OEMs and other aerostructures suppliers;
|
|
•
|
the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad;
|
|
•
|
the effect of potential changes in tax law, such as those outlined in recent proposals on U.S. Tax Reform;
|
|
•
|
any reduction in our credit ratings;
|
|
•
|
our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components;
|
|
•
|
our ability to recruit and retain highly-skilled employees and our relationships with the unions representing many of our employees;
|
|
•
|
spending by the U.S. and other governments on defense;
|
|
•
|
the possibility that our cash flows and the A&R Credit Agreement may not be adequate for our additional capital needs or for payment of interest on and principal of our indebtedness;
|
|
•
|
our exposure under our Revolver to higher interest payments should interest rates increase substantially;
|
|
•
|
the effectiveness of any interest rate hedging programs;
|
|
•
|
the effectiveness of our internal control over financial reporting;
|
|
•
|
the outcome or impact of ongoing or future litigation, claims and regulatory actions;
|
|
•
|
our exposure to potential product liability and warranty claims; and
|
|
•
|
our ability to successfully negotiate and execute with Boeing Definitive Documentation, as defined in the MOU to implement the MOU on or before the Term Date.
|
|
•
|
Reducing uncertainty on future pricing for aircraft under the B787 and legacy program contracts;
|
|
•
|
Strengthening our relationship with Boeing and further aligning the parties for mutual success;
|
|
•
|
Enabling us to spend additional time focusing on operations, growth, and achieving cost reductions without the overhang of the parties' pricing disagreements;
|
|
•
|
Providing for investments on production rate increases for the B737 program; and
|
|
•
|
Preserving our ability to meet our long-term cash flow goals.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
||||||||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
|
||||||||
|
|
($ in millions)
|
|
($ in millions)
|
|
||||||||||||
|
Net revenues
|
$
|
1,826.1
|
|
|
$
|
1,829.9
|
|
|
$
|
3,520.2
|
|
|
$
|
3,511.5
|
|
|
|
Cost of sales
|
1,847.0
|
|
|
1,672.0
|
|
|
3,259.8
|
|
|
3,031.0
|
|
|
||||
|
Gross profit
|
(20.9
|
)
|
|
157.9
|
|
|
260.4
|
|
|
480.5
|
|
|
||||
|
Selling, general and administrative
|
46.1
|
|
|
70.2
|
|
|
98.0
|
|
|
120.2
|
|
|
||||
|
Impact of severe weather event
|
9.1
|
|
|
—
|
|
|
19.9
|
|
|
—
|
|
|
||||
|
Research and development
|
6.7
|
|
|
4.4
|
|
|
11.7
|
|
|
10.5
|
|
|
||||
|
Operating (loss) income
|
(82.8
|
)
|
|
83.3
|
|
|
130.8
|
|
|
349.8
|
|
|
||||
|
Interest expense and financing fee amortization
|
(10.2
|
)
|
|
(23.9
|
)
|
|
(19.7
|
)
|
|
(35.3
|
)
|
|
||||
|
Other income (expense), net
|
1.2
|
|
|
(6.2
|
)
|
|
2.7
|
|
|
(8.4
|
)
|
|
||||
|
(Loss) income before income taxes and equity in net income of affiliate
|
(91.8
|
)
|
|
53.2
|
|
|
113.8
|
|
|
306.1
|
|
|
||||
|
Income tax provision
|
35.0
|
|
|
(8.6
|
)
|
|
(29.0
|
)
|
|
(90.5
|
)
|
|
||||
|
(Loss) income before equity in net income of affiliate
|
(56.8
|
)
|
|
44.6
|
|
|
84.8
|
|
|
215.6
|
|
|
||||
|
Equity in net income of affiliate
|
—
|
|
|
0.2
|
|
|
0.1
|
|
|
0.8
|
|
|
||||
|
Net (loss) income
|
$
|
(56.8
|
)
|
|
$
|
44.8
|
|
|
$
|
84.9
|
|
|
$
|
216.4
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
Model
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
|
B737
|
|
136
|
|
128
|
|
262
|
|
258
|
|
B747
|
|
2
|
|
2
|
|
3
|
|
5
|
|
B767
|
|
7
|
|
7
|
|
13
|
|
13
|
|
B777
|
|
19
|
|
25
|
|
40
|
|
51
|
|
B787
|
|
36
|
|
36
|
|
68
|
|
69
|
|
Total Boeing
|
|
200
|
|
198
|
|
386
|
|
396
|
|
A320 Family
|
|
152
|
|
145
|
|
306
|
|
292
|
|
A330/340
|
|
19
|
|
17
|
|
39
|
|
33
|
|
A350 XWB
|
|
23
|
|
20
|
|
47
|
|
34
|
|
A380
|
|
4
|
|
6
|
|
8
|
|
13
|
|
Total Airbus
|
|
198
|
|
188
|
|
400
|
|
372
|
|
Business/Regional Jets
|
|
26
|
|
22
|
|
48
|
|
37
|
|
Total
|
|
424
|
|
408
|
|
834
|
|
805
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Prime Customer
|
|
June 29,
2017 |
|
June 30,
2016 |
|
June 29,
2017 |
|
June 30,
2016 |
||||||||
|
|
|
($ in millions)
|
|
($ in millions)
|
||||||||||||
|
Boeing
|
|
$
|
1,409.2
|
|
|
$
|
1,459.7
|
|
|
$
|
2,756.3
|
|
|
$
|
2,847.0
|
|
|
Airbus
|
|
316.9
|
|
|
272.7
|
|
|
596.4
|
|
|
503.8
|
|
||||
|
Other
|
|
102.4
|
|
|
97.5
|
|
|
169.9
|
|
|
160.7
|
|
||||
|
Total net revenues
|
|
$
|
1,828.5
|
|
|
$
|
1,829.9
|
|
|
$
|
3,522.6
|
|
|
$
|
3,511.5
|
|
|
|
Three Months Ended
|
||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
||||
|
|
($ in millions)
|
||||||
|
Segment Revenues
|
|
|
|
|
|
||
|
Fuselage Systems
(1)
|
$
|
938.2
|
|
|
$
|
923.6
|
|
|
Propulsion Systems
|
436.5
|
|
|
481.7
|
|
||
|
Wing Systems
|
450.5
|
|
|
424.2
|
|
||
|
All Other
(1)
|
0.9
|
|
|
0.4
|
|
||
|
|
$
|
1,826.1
|
|
|
$
|
1,829.9
|
|
|
Segment Operating (Loss) Income
|
|
|
|
|
|
||
|
Fuselage Systems
(1)
|
$
|
(80.2
|
)
|
|
$
|
21.0
|
|
|
Propulsion Systems
|
41.0
|
|
|
74.3
|
|
||
|
Wing Systems
|
30.8
|
|
|
64.8
|
|
||
|
All Other
(1)
|
(0.6
|
)
|
|
(0.4
|
)
|
||
|
|
(9.0
|
)
|
|
159.7
|
|
||
|
Corporate SG&A
|
(46.1
|
)
|
|
(70.2
|
)
|
||
|
Impact of severe weather event
|
(9.1
|
)
|
|
—
|
|
||
|
Research and development
|
(6.7
|
)
|
|
(4.4
|
)
|
||
|
Unallocated cost of sales
(2)
|
(11.9
|
)
|
|
(1.8
|
)
|
||
|
Total operating (loss) income
|
$
|
(82.8
|
)
|
|
$
|
83.3
|
|
|
|
|
(1)
|
Includes a reclassification of
$8.2
million of revenues and
$1.7
million of operating income from the All Other segment to the Fuselage Systems segment for the three months ended
June 30, 2016
.
|
|
(2)
|
Includes
$0.5
million and
$2.0
million of warranty expense for the three months ended
June 29, 2017
and
June 30, 2016
, respectively. Also includes a charge for excess purchases and purchase commitments of $11.5 million for the three months ended June 29, 2017.
|
|
|
Six Months Ended
|
||||||
|
|
June 29,
2017 |
|
June 30,
2016 |
||||
|
|
($ in millions)
|
||||||
|
Segment Revenues
|
|
|
|
|
|
||
|
Fuselage Systems
(1)
|
$
|
1,855.1
|
|
|
$
|
1,799.4
|
|
|
Propulsion Systems
|
842.8
|
|
|
920.3
|
|
||
|
Wing Systems
|
819.5
|
|
|
784.7
|
|
||
|
All Other
(1)
|
2.8
|
|
|
7.1
|
|
||
|
|
$
|
3,520.2
|
|
|
$
|
3,511.5
|
|
|
Segment Operating Income
|
|
|
|
|
|
||
|
Fuselage Systems
(1)
|
$
|
70.2
|
|
|
$
|
198.7
|
|
|
Propulsion Systems
|
114.7
|
|
|
173.4
|
|
||
|
Wing Systems
|
89.3
|
|
|
123.6
|
|
||
|
All Other
(1)
|
(0.7
|
)
|
|
1.1
|
|
||
|
|
273.5
|
|
|
496.8
|
|
||
|
Corporate SG&A
|
(98.0
|
)
|
|
(120.2
|
)
|
||
|
Research and development
|
(11.7
|
)
|
|
(10.5
|
)
|
||
|
Unallocated cost of sales
(2)
|
(13.1
|
)
|
|
(16.3
|
)
|
||
|
Total operating income
|
$
|
130.8
|
|
|
$
|
349.8
|
|
|
|
|
(1)
|
Includes a reclassification of $10.2 million of revenues and $2.1 million of operating income from the All Other segment to the Fuselage Systems segment for the six months ended June 29, 2017.
|
|
(2)
|
Includes $1.7 million and $4.3 million of warranty expense for the six months ended June 29, 2017 and June 30, 2016, respectively. Also includes a charge for excess purchases and purchase commitments of $11.5 million for the six months ended June 29, 2017 and $11.8 million related to early retirement incentives for the six months ended June 30, 2016.
|
|
|
For the six months ended
|
||||||
|
|
June 29, 2017
|
|
June 30, 2016
|
||||
|
|
($ in millions)
|
||||||
|
Net cash provided by operating activities
|
$
|
334.0
|
|
|
$
|
308.8
|
|
|
Net cash used in investing activities
|
(87.9
|
)
|
|
(104.7
|
)
|
||
|
Net cash used in financing activities
|
(250.5
|
)
|
|
(355.6
|
)
|
||
|
Effect of exchange rate change on cash and cash equivalents
|
3.6
|
|
|
(5.3
|
)
|
||
|
Net decrease in cash and cash equivalents for the period
|
(0.8
|
)
|
|
(156.8
|
)
|
||
|
Cash and cash equivalents, beginning of period
|
697.7
|
|
|
957.3
|
|
||
|
Cash and cash equivalents, end of period
|
$
|
696.9
|
|
|
$
|
800.5
|
|
|
Period
(1)
|
Total Number of Shares Purchased
|
|
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)
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
March 31, 2017 - May 4 2017
|
338,850
|
|
|
|
$53.9033
|
|
|
338,850
|
|
|
|
$500.2
|
|
|
May 5, 2017 - June 1, 2017
|
430,670
|
|
|
|
$55.1614
|
|
|
430,670
|
|
|
|
$476.5
|
|
|
June 2, 2017 - June 29, 2017
|
1,467,993
|
|
|
|
$57.2393
|
|
|
1,467,993
|
|
|
|
$392.4
|
|
|
Total
|
2,237,513
|
|
|
|
$56.3342
|
|
|
2,237,513
|
|
|
|
$392.4
|
|
|
(1)
|
Our fiscal months often differ from the calendar months except for the month of December, as our fiscal year ends on December 31. For example, May 4, 2017 was the last day of our April 2017 fiscal month.
|
|
(2)
|
On November 1, 2016, the Company announced that our Board of Directors authorized a new share repurchase program for the purchase of up to $600.0 million of our class A common stock. On July 25, 2017, the Company increased the existing share repurchase program by up to an additional $400.0 million of our class A common stock, resulting in a total program authorization of $1.0 billion. We have repurchased approximately $208.0 million shares out of this authorization and, accordingly, have $792.0 million remaining in the authorization.
|
|
Article I.
Exhibit
Number
|
|
Section 1.01 Exhibit
|
|
10.1†
*
|
|
Amendment 28 to Special Business Provisions MS-65530-0016, between the Boeing Company and Spirit AeroSystems, Inc., dated as of June 22, 2017.
|
|
|
|
|
|
10.2†
*
|
|
Amendment 29 to Special Business Provisions MS-65530-0016, between the Boeing Company and Spirit AeroSystems, Inc., dated as of July 20, 2017.
|
|
|
|
|
|
10.3†
*
|
|
Collective Resolution Memorandum of Understanding between the Boeing Company and Spirit AeroSystems, Inc., dated as of August 1, 2017.
|
|
|
|
|
|
31.1
*
|
|
Certification of Chief Executive Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
31.2
*
|
|
Certification of Chief Financial Officer pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
32.1
**
|
|
Certification of Chief Executive Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
32.2
**
|
|
Certification of Chief Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
|
|
|
|
|
101.INS@
*
|
|
XBRL Instance Document.
|
|
|
|
|
|
101.SCH@
*
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
101.CAL@
*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
101.DEF@
*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
101.LAB@
*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
101.PRE@
*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
†
|
|
Indicates that portions of the exhibit have been omitted and separately filed with the Securities and Exchange Commission pursuant to a request for confidential treatment.
|
|
|
|
|
|
*
|
|
Filed herewith.
|
|
|
|
|
|
**
|
|
Furnished herewith.
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Sanjay Kapoor
|
|
Executive Vice President and Chief Financial
|
|
August 4, 2017
|
|
Sanjay Kapoor
|
|
Officer (Principal Financial Officer)
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
|
|
/s/ Mark J. Suchinski
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
August 4, 2017
|
|
Mark J. Suchinski
|
|
|
|
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
No Suppliers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|