|
ý
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|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2013
|
||
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||
OR
|
||
|
|
|
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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For the transition period from to
|
Delaware
(State or other jurisdiction of
incorporation or organization)
|
|
41-1672694
(I.R.S. Employer
Identification No.)
|
1300 Wilson Boulevard, Suite 400
|
|
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Arlington, Virginia
|
|
22209-2307
|
(Address of principal executive offices)
|
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(Zip Code)
|
Large Accelerated Filer
ý
|
|
Accelerated Filer
o
|
|
Non-Accelerated Filer
o
(Do not check if a
smaller reporting company)
|
|
Smaller reporting company
o
|
|
|
|
Page
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PART I
- Financial Information
|
|
|
|
||
|
|
QUARTERS ENDED
|
||||||
(Amounts in thousands except per share data)
|
|
June 30, 2013
|
|
July 1, 2012
|
||||
Sales
|
|
$
|
1,078,743
|
|
|
$
|
1,082,301
|
|
Cost of sales
|
|
836,731
|
|
|
832,679
|
|
||
Gross profit
|
|
242,012
|
|
|
249,622
|
|
||
Operating expenses:
|
|
|
|
|
||||
Research and development
|
|
10,425
|
|
|
14,008
|
|
||
Selling
|
|
42,764
|
|
|
40,527
|
|
||
General and administrative
|
|
63,198
|
|
|
64,399
|
|
||
Income before interest, income taxes, and noncontrolling interest
|
|
125,625
|
|
|
130,688
|
|
||
Interest expense
|
|
(13,890
|
)
|
|
(19,815
|
)
|
||
Interest income
|
|
67
|
|
|
65
|
|
||
Income before income taxes and noncontrolling interest
|
|
111,802
|
|
|
110,938
|
|
||
Income tax provision
|
|
39,661
|
|
|
39,997
|
|
||
Net income
|
|
72,141
|
|
|
70,941
|
|
||
Less net income attributable to noncontrolling interest
|
|
103
|
|
|
112
|
|
||
Net income attributable to Alliant Techsystems Inc.
|
|
$
|
72,038
|
|
|
$
|
70,829
|
|
Alliant Techsystems Inc. earnings per common share:
|
|
|
|
|
||||
Basic
|
|
$
|
2.26
|
|
|
$
|
2.17
|
|
Diluted
|
|
$
|
2.24
|
|
|
$
|
2.16
|
|
Cash dividends paid per share
|
|
$
|
0.26
|
|
|
$
|
0.20
|
|
Alliant Techsystems Inc. weighted-average number of common shares outstanding:
|
|
|
|
|
||||
Basic
|
|
31,892
|
|
|
32,632
|
|
||
Diluted
|
|
32,099
|
|
|
32,741
|
|
||
|
|
|
|
|
|
|
||
Net Income (from above)
|
|
$
|
72,141
|
|
|
$
|
70,941
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
Pension and other postretirement benefit liabilities:
|
|
|
|
|
||||
Reclassification of prior service credits for pension and postretirement benefit plans recorded to net income, net of tax benefit of $2,830, and $845
|
|
(4,511
|
)
|
|
(1,348
|
)
|
||
Reclassification of net actuarial loss for pension and postretirement benefit plans recorded to net income, net of tax expense of $(14,319), and $(12,279)
|
|
22,653
|
|
|
19,584
|
|
||
Valuation adjustment for pension and postretirement benefit plans, net of tax (expense) benefit of $0, and $(770)
|
|
—
|
|
|
1,229
|
|
||
Change in fair value of derivatives, net of tax benefit of $3,817, and $2,818, respectively
|
|
(5,981
|
)
|
|
(4,408
|
)
|
||
Change in fair value of available-for-sale securities, net of tax benefit of $12, and $57, respectively
|
|
(20
|
)
|
|
(90
|
)
|
||
Total other comprehensive income
|
|
$
|
12,141
|
|
|
$
|
14,967
|
|
|
|
|
|
|
||||
Comprehensive income
|
|
84,282
|
|
|
85,908
|
|
||
Less comprehensive income attributable to noncontrolling interest
|
|
103
|
|
|
112
|
|
||
Comprehensive income attributable to Alliant Techsystems Inc.
|
|
$
|
84,179
|
|
|
$
|
85,796
|
|
(Amounts in thousands except share data)
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
99,285
|
|
|
$
|
417,289
|
|
Net receivables
|
|
1,347,638
|
|
|
1,312,573
|
|
||
Net inventories
|
|
370,221
|
|
|
315,064
|
|
||
Income tax receivable
|
|
—
|
|
|
22,066
|
|
||
Deferred income tax assets
|
|
106,259
|
|
|
106,566
|
|
||
Other current assets
|
|
50,988
|
|
|
45,174
|
|
||
Total current assets
|
|
1,974,391
|
|
|
2,218,732
|
|
||
Net property, plant, and equipment
|
|
622,338
|
|
|
602,320
|
|
||
Goodwill
|
|
1,411,381
|
|
|
1,251,536
|
|
||
Noncurrent deferred income tax assets
|
|
36,639
|
|
|
95,007
|
|
||
Deferred charges and other non-current assets
|
|
337,805
|
|
|
215,415
|
|
||
Total assets
|
|
$
|
4,382,554
|
|
|
$
|
4,383,010
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Current portion of long-term debt
|
|
$
|
250,000
|
|
|
$
|
50,000
|
|
Accounts payable
|
|
165,014
|
|
|
337,713
|
|
||
Contract advances and allowances
|
|
100,810
|
|
|
119,491
|
|
||
Accrued compensation
|
|
94,668
|
|
|
137,630
|
|
||
Accrued income taxes
|
|
5,866
|
|
|
—
|
|
||
Other accrued liabilities
|
|
287,482
|
|
|
262,021
|
|
||
Total current liabilities
|
|
903,840
|
|
|
906,855
|
|
||
Long-term debt
|
|
1,013,176
|
|
|
1,023,877
|
|
||
Postretirement and postemployment benefits liabilities
|
|
91,632
|
|
|
94,087
|
|
||
Accrued pension liability
|
|
679,079
|
|
|
719,172
|
|
||
Other long-term liabilities
|
|
125,700
|
|
|
126,458
|
|
||
Total liabilities
|
|
2,813,427
|
|
|
2,870,449
|
|
||
Commitments and contingencies (Notes 16)
|
|
|
|
|
||||
Common stock—$.01 par value:
|
|
|
|
|
||||
Authorized—180,000,000 shares Issued and outstanding—32,097,363 shares at June 30, 2013 and 32,318,295 shares at March 31, 2013
|
|
321
|
|
|
323
|
|
||
Additional paid-in-capital
|
|
531,575
|
|
|
534,137
|
|
||
Retained earnings
|
|
2,547,149
|
|
|
2,483,483
|
|
||
Accumulated other comprehensive loss
|
|
(816,163
|
)
|
|
(828,304
|
)
|
||
Common stock in treasury, at cost—9,458,086 shares held at June 30, 2013 and 9,237,154 shares held at March 31, 2013
|
|
(704,250
|
)
|
|
(687,470
|
)
|
||
Total Alliant Techsystems Inc. stockholders' equity
|
|
1,558,632
|
|
|
1,502,169
|
|
||
Noncontrolling interest
|
|
10,495
|
|
|
10,392
|
|
||
Total equity
|
|
1,569,127
|
|
|
1,512,561
|
|
||
Total liabilities and equity
|
|
$
|
4,382,554
|
|
|
$
|
4,383,010
|
|
|
|
QUARTERS ENDED
|
||||||
(Amounts in thousands)
|
|
June 30, 2013
|
|
July 1, 2012
|
||||
Operating Activities
|
|
|
|
|
||||
Net income
|
|
$
|
72,141
|
|
|
$
|
70,941
|
|
Adjustments to net income to arrive at cash used for operating activities:
|
|
|
|
|
||||
Depreciation
|
|
23,143
|
|
|
26,383
|
|
||
Amortization of intangible assets
|
|
2,734
|
|
|
2,983
|
|
||
Amortization of debt discount
|
|
1,799
|
|
|
1,679
|
|
||
Amortization of deferred financing costs
|
|
899
|
|
|
1,011
|
|
||
Deferred income taxes
|
|
54
|
|
|
3
|
|
||
Loss on disposal of property
|
|
87
|
|
|
140
|
|
||
Share-based plans expense
|
|
3,012
|
|
|
3,222
|
|
||
Excess tax benefits from share-based plans
|
|
(622
|
)
|
|
—
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||||
Net receivables
|
|
(868
|
)
|
|
(137,889
|
)
|
||
Net inventories
|
|
(18,208
|
)
|
|
(19,068
|
)
|
||
Accounts payable
|
|
(175,904
|
)
|
|
(117,570
|
)
|
||
Contract advances and allowances
|
|
(18,681
|
)
|
|
(783
|
)
|
||
Accrued compensation
|
|
(46,601
|
)
|
|
(22,291
|
)
|
||
Accrued income taxes
|
|
30,865
|
|
|
38,684
|
|
||
Pension and other postretirement benefits
|
|
(12,918
|
)
|
|
(105,060
|
)
|
||
Other assets and liabilities
|
|
3,305
|
|
|
(38,433
|
)
|
||
Cash used for operating activities
|
|
(135,763
|
)
|
|
(296,048
|
)
|
||
Investing Activities
|
|
|
|
|
||||
Capital expenditures
|
|
(29,552
|
)
|
|
(23,884
|
)
|
||
Acquisition of business, net of cash acquired
|
|
(313,963
|
)
|
|
—
|
|
||
Proceeds from the disposition of property, plant, and equipment
|
|
5,190
|
|
|
2
|
|
||
Cash used for investing activities
|
|
(338,325
|
)
|
|
(23,882
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Borrowings on line of credit
|
|
200,000
|
|
|
—
|
|
||
Payments made on bank debt
|
|
(12,500
|
)
|
|
(5,000
|
)
|
||
Purchase of treasury shares
|
|
(24,322
|
)
|
|
(24,997
|
)
|
||
Dividends paid
|
|
(8,372
|
)
|
|
(6,530
|
)
|
||
Proceeds from employee stock compensation plans
|
|
656
|
|
|
—
|
|
||
Excess tax benefits from share-based plans
|
|
622
|
|
|
—
|
|
||
Cash provided by (used for) financing activities
|
|
156,084
|
|
|
(36,527
|
)
|
||
(Decrease) in cash and cash equivalents
|
|
(318,004
|
)
|
|
(356,457
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
417,289
|
|
|
568,813
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
99,285
|
|
|
$
|
212,356
|
|
Supplemental Cash Flow Disclosures:
|
|
|
|
|
||||
Noncash investing activity:
|
|
|
|
|
||||
Capital expenditures included in accounts payable
|
|
$
|
3,293
|
|
|
$
|
2,654
|
|
Noncash financing activity:
|
|
|
|
|
||||
Treasury Shares purchased included in other accrued liabilities
|
|
$
|
1,140
|
|
|
$
|
—
|
|
|
|
Common Stock $.01 Par Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(Amounts in thousands except share data)
|
|
Shares
|
|
Amount
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Noncontrolling
Interest
|
|
Total
Equity
|
|||||||||||||||
For the quarter ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2013
|
|
32,318,295
|
|
|
$
|
323
|
|
|
$
|
534,137
|
|
|
$
|
2,483,483
|
|
|
$
|
(828,304
|
)
|
|
$
|
(687,470
|
)
|
|
$
|
10,392
|
|
|
$
|
1,512,561
|
|
Comprehensive income
|
|
|
|
|
|
|
|
72,038
|
|
|
12,141
|
|
|
|
|
103
|
|
|
84,282
|
|
|||||||||||
Exercise of stock options
|
|
11,873
|
|
|
—
|
|
|
(227
|
)
|
|
—
|
|
|
—
|
|
|
883
|
|
|
—
|
|
|
656
|
|
|||||||
Restricted stock grants
|
|
59,141
|
|
|
—
|
|
|
(4,908
|
)
|
|
—
|
|
|
—
|
|
|
4,908
|
|
|
—
|
|
|
—
|
|
|||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
3,013
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,013
|
|
|||||||
Treasury Stock Purchased
|
|
(321,596
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,322
|
)
|
|
—
|
|
|
(24,322
|
)
|
|||||||
Performance shares issued net of treasury stock withheld
|
|
31,608
|
|
|
—
|
|
|
(3,540
|
)
|
|
—
|
|
|
—
|
|
|
2,328
|
|
|
—
|
|
|
(1,212
|
)
|
|||||||
Tax benefit related to share based plans and other
|
|
—
|
|
|
—
|
|
|
2,669
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,669
|
|
|||||||
Dividends paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,372
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,372
|
)
|
|||||||
Employee benefit plans and other
|
|
(1,958
|
)
|
|
(2
|
)
|
|
431
|
|
|
—
|
|
|
—
|
|
|
(577
|
)
|
|
—
|
|
|
(148
|
)
|
|||||||
Balance, June 30, 2013
|
|
32,097,363
|
|
|
$
|
321
|
|
|
$
|
531,575
|
|
|
$
|
2,547,149
|
|
|
$
|
(816,163
|
)
|
|
$
|
(704,250
|
)
|
|
$
|
10,495
|
|
|
$
|
1,569,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
For the quarter ended July 1, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2012
|
|
33,142,408
|
|
|
$
|
332
|
|
|
$
|
537,921
|
|
|
$
|
2,241,711
|
|
|
$
|
(910,598
|
)
|
|
$
|
(642,571
|
)
|
|
$
|
9,956
|
|
|
$
|
1,236,751
|
|
Comprehensive income
|
|
|
|
|
|
|
|
70,829
|
|
|
14,967
|
|
|
|
|
112
|
|
|
85,908
|
|
|||||||||||
Exercise of stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Restricted stock grants
|
|
(7,154
|
)
|
|
—
|
|
|
(152
|
)
|
|
—
|
|
|
—
|
|
|
152
|
|
|
—
|
|
|
—
|
|
|||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
3,222
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,222
|
|
|||||||
Treasury stock purchased
|
|
(482,044
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,997
|
)
|
|
—
|
|
|
(24,997
|
)
|
|||||||
Performance shares issued net of treasury stock withheld
|
|
6,447
|
|
|
—
|
|
|
(794
|
)
|
|
—
|
|
|
—
|
|
|
590
|
|
|
—
|
|
|
(204
|
)
|
|||||||
Tax benefit related to share based plans and other
|
|
—
|
|
|
—
|
|
|
1,716
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,716
|
|
|||||||
Dividends paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,530
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,530
|
)
|
|||||||
Employee benefit plans and other
|
|
(4,932
|
)
|
|
(5
|
)
|
|
617
|
|
|
—
|
|
|
—
|
|
|
(863
|
)
|
|
—
|
|
|
(251
|
)
|
|||||||
Balance, July 1, 2012
|
|
32,654,725
|
|
|
$
|
327
|
|
|
$
|
542,530
|
|
|
$
|
2,306,010
|
|
|
$
|
(895,631
|
)
|
|
$
|
(667,689
|
)
|
|
$
|
10,068
|
|
|
$
|
1,295,615
|
|
|
|
As of June 30, 2013
|
||||||||||
|
|
Fair Value Measurements
Using Inputs Considered as
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Marketable securities
|
|
$
|
—
|
|
|
$
|
9,024
|
|
|
$
|
—
|
|
Derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Derivatives
|
|
$
|
—
|
|
|
$
|
14,965
|
|
|
$
|
—
|
|
|
|
As of March 31, 2013
|
||||||||||
|
|
Fair Value Measurements
Using Inputs Considered as
|
||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Marketable securities
|
|
$
|
—
|
|
|
$
|
8,634
|
|
|
$
|
—
|
|
Derivatives
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
||||||
Derivatives
|
|
$
|
—
|
|
|
$
|
3,530
|
|
|
$
|
—
|
|
|
|
As of June 30, 2013
|
|
As of March 31, 2013
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Fixed rate debt
|
|
$
|
540,676
|
|
|
$
|
600,776
|
|
|
$
|
538,877
|
|
|
$
|
596,467
|
|
Variable rate debt
|
|
722,500
|
|
|
720,694
|
|
|
535,000
|
|
|
534,513
|
|
|
|
Aerospace
Group
|
|
Defense
Group
|
|
Sporting
Group
|
|
Total
|
||||||||
Balance, March 31, 2013
|
|
$
|
676,516
|
|
|
$
|
366,947
|
|
|
$
|
208,073
|
|
|
$
|
1,251,536
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
159,845
|
|
|
159,845
|
|
||||
Balance at June 30, 2013
|
|
$
|
676,516
|
|
|
$
|
366,947
|
|
|
$
|
367,918
|
|
|
$
|
1,411,381
|
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Gross debt issuance costs
|
|
$
|
21,341
|
|
|
$
|
21,341
|
|
Less accumulated amortization
|
|
(9,388
|
)
|
|
(8,489
|
)
|
||
Net debt issuance costs
|
|
11,953
|
|
|
12,852
|
|
||
Other intangible assets
|
|
234,619
|
|
|
109,954
|
|
||
Parts inventory
|
|
10,757
|
|
|
10,886
|
|
||
Environmental remediation receivable
|
|
25,582
|
|
|
28,254
|
|
||
Other non-current assets
|
|
54,894
|
|
|
53,469
|
|
||
Total deferred charges and other non-current assets
|
|
$
|
337,805
|
|
|
$
|
215,415
|
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||||||||||||||||||
|
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Total
|
|
Gross
carrying amount |
|
Accumulated
amortization |
|
Total
|
||||||||||||
Trade name
|
|
$
|
81,360
|
|
|
$
|
(14,665
|
)
|
|
$
|
66,695
|
|
|
$
|
66,060
|
|
|
$
|
(13,531
|
)
|
|
$
|
52,529
|
|
Patented technology
|
|
17,400
|
|
|
(7,833
|
)
|
|
9,567
|
|
|
17,400
|
|
|
(7,230
|
)
|
|
10,170
|
|
||||||
Customer relationships and other
|
|
76,085
|
|
|
(26,925
|
)
|
|
49,160
|
|
|
34,185
|
|
|
(25,928
|
)
|
|
8,257
|
|
||||||
Total
|
|
$
|
174,845
|
|
|
$
|
(49,423
|
)
|
|
$
|
125,422
|
|
|
$
|
117,645
|
|
|
$
|
(46,689
|
)
|
|
$
|
70,956
|
|
Remainder of fiscal 2014
|
|
$
|
14,578
|
|
Fiscal 2015
|
|
18,369
|
|
|
Fiscal 2016
|
|
16,772
|
|
|
Fiscal 2017
|
|
14,482
|
|
|
Fiscal 2018
|
|
14,482
|
|
|
Thereafter
|
|
46,739
|
|
|
Total
|
|
$
|
125,422
|
|
|
|
Quarters Ended
|
||||
|
|
June 30, 2013
|
|
July 1, 2012
|
||
Basic EPS shares outstanding
|
|
31,892
|
|
|
32,632
|
|
Dilutive effect of stock-based awards
|
|
207
|
|
|
109
|
|
Diluted EPS shares outstanding
|
|
32,099
|
|
|
32,741
|
|
Shares excluded from the calculation of diluted EPS because the option exercise/threshold price was greater than the average market price of the common shares
|
|
109,775
|
|
|
159,825
|
|
•
|
commodity prices affecting the cost of raw materials and energy,
|
•
|
interest rates, and
|
•
|
foreign exchange risks
|
|
Number of
Pounds
|
|
Copper
|
32,818,000
|
|
Zinc
|
13,432,000
|
|
|
|
|
|
Asset Derivatives
Fair value as of
|
|
Liability Derivatives
Fair value as of
|
||||||||||||
|
|
Location
|
|
June 30, 2013
|
|
March 31, 2013
|
|
June 30, 2013
|
|
March 31, 2013
|
||||||||
Commodity forward contracts
|
|
Other current assets /
other accrued liabilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,965
|
|
|
$
|
2,871
|
|
Commodity forward contracts
|
|
Deferred charges and
other non-current
assets / other long
term liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
659
|
|
||||
Total
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,965
|
|
|
$
|
3,530
|
|
|
|
Pretax amount of gain
(loss) reclassified from
Accumulated Other
Comprehensive Income
(Loss)
|
|
Gain or (loss) recognized
in income on derivative
(ineffective portion and
amount excluded from
effectiveness testing)
|
||||||||
|
|
Location
|
|
Amount
|
|
Location
|
|
Amount
|
||||
Quarter ended June 30, 2013
|
|
|
|
|
|
|
|
|
||||
Commodity forward contracts
|
|
Cost of Sales
|
|
$
|
(967
|
)
|
|
Cost of Sales
|
|
$
|
(1,637
|
)
|
Foreign currency forward contracts
|
|
Cost of Sales
|
|
—
|
|
|
Cost of Sales
|
|
—
|
|
||
Quarter ended July 1, 2012
|
|
|
|
|
|
|
|
|
||||
Commodity forward contracts
|
|
Cost of Sales
|
|
$
|
(1,444
|
)
|
|
Cost of Sales
|
|
$
|
—
|
|
Foreign currency forward contracts
|
|
Cost of Sales
|
|
—
|
|
|
Cost of Sales
|
|
—
|
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Derivatives
|
|
$
|
(8,173
|
)
|
|
$
|
(2,192
|
)
|
Pension and other postretirement benefit liabilities
|
|
(808,756
|
)
|
|
(826,898
|
)
|
||
Available-for-sale securities
|
|
766
|
|
|
786
|
|
||
Total accumulated other comprehensive loss
|
|
$
|
(816,163
|
)
|
|
$
|
(828,304
|
)
|
|
|
Quarter ended June 30, 2013
|
||||||||||||||
|
|
Derivatives
|
|
Pension and other Postretirement Benefits
|
|
Available for Sale Securities
|
|
Total
|
||||||||
Beginning of period unrealized gain (loss) in accumulated OCI
|
|
$
|
(2,192
|
)
|
|
$
|
(826,898
|
)
|
|
$
|
786
|
|
|
$
|
(828,304
|
)
|
Net decrease in fair value of derivatives
|
|
(7,570
|
)
|
|
—
|
|
|
—
|
|
|
(7,570
|
)
|
||||
Net losses reclassified from AOCI, offsetting the price paid to suppliers
±
|
|
590
|
|
|
—
|
|
|
—
|
|
|
590
|
|
||||
Net losses reclassified from AOCI, due to ineffectiveness
±
|
|
999
|
|
|
—
|
|
|
—
|
|
|
999
|
|
||||
Net actuarial losses reclassified from AOCI
#
|
|
$
|
—
|
|
|
$
|
22,653
|
|
|
$
|
—
|
|
|
$
|
22,653
|
|
Prior service costs reclassified from AOCI
#
|
|
$
|
—
|
|
|
$
|
(4,511
|
)
|
|
$
|
—
|
|
|
$
|
(4,511
|
)
|
Valuation adjustment for pension and postretirement
benefit plans, net of tax (expense) benefit
#
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
(20
|
)
|
End of period unrealized loss in accumulated OCI
|
|
$
|
(8,173
|
)
|
|
$
|
(808,756
|
)
|
|
$
|
766
|
|
|
$
|
(816,163
|
)
|
|
|
Quarter ended July 1, 2012
|
||||||||||||||
|
|
Derivatives
|
|
Pension and other Postretirement Benefits
|
|
Available for Sale Securities
|
|
Total
|
||||||||
Beginning of period unrealized gain (loss) in accumulated OCI
|
|
$
|
3,455
|
|
|
$
|
(915,010
|
)
|
|
$
|
996
|
|
|
$
|
(910,559
|
)
|
Net decrease in fair value of derivatives
|
|
(5,328
|
)
|
|
—
|
|
|
—
|
|
|
(5,328
|
)
|
||||
Net losses reclassified from OCI, offsetting the price paid to suppliers
±
|
|
881
|
|
|
—
|
|
|
—
|
|
|
881
|
|
||||
Net losses reclassified from OCI, due to ineffectiveness
±
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net actuarial losses reclassified from AOCI
#
|
|
$
|
—
|
|
|
$
|
19,584
|
|
|
$
|
—
|
|
|
$
|
19,584
|
|
Prior service costs reclassified from AOCI
#
|
|
$
|
—
|
|
|
$
|
(1,348
|
)
|
|
$
|
—
|
|
|
$
|
(1,348
|
)
|
Valuation adjustment for pension and postretirement benefit plans, net of tax (expense) benefit
#
|
|
$
|
—
|
|
|
$
|
1,229
|
|
|
$
|
—
|
|
|
$
|
1,229
|
|
Other
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(90
|
)
|
|
$
|
(90
|
)
|
End of period unrealized loss in accumulated OCI
|
|
$
|
(992
|
)
|
|
$
|
(895,545
|
)
|
|
$
|
906
|
|
|
$
|
(895,631
|
)
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Billed receivables
|
|
$
|
447,419
|
|
|
$
|
395,309
|
|
Unbilled receivables
|
|
881,018
|
|
|
892,577
|
|
||
Other
|
|
19,201
|
|
|
24,687
|
|
||
Net receivables
|
|
$
|
1,347,638
|
|
|
$
|
1,312,573
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Raw materials
|
$
|
128,286
|
|
|
$
|
102,238
|
|
Work/Contracts in process
|
103,980
|
|
|
82,454
|
|
||
Finished Goods
|
137,955
|
|
|
130,372
|
|
||
Net inventories
|
$
|
370,221
|
|
|
$
|
315,064
|
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Employee benefits and insurance, including pension and other postretirement benefits
|
|
$
|
69,917
|
|
|
$
|
75,882
|
|
Warranty
|
|
17,502
|
|
|
19,669
|
|
||
Interest
|
|
9,339
|
|
|
1,887
|
|
||
Environmental remediation
|
|
5,190
|
|
|
6,847
|
|
||
Rebate
|
|
20,574
|
|
|
6,875
|
|
||
Deferred lease obligation
|
|
29,579
|
|
|
28,424
|
|
||
Commodity forward contracts
|
|
14,965
|
|
|
2,871
|
|
||
Federal excise tax
|
|
35,093
|
|
|
22,367
|
|
||
Other
|
|
85,323
|
|
|
97,199
|
|
||
Total other accrued liabilities—current
|
|
$
|
287,482
|
|
|
$
|
262,021
|
|
Environmental remediation
|
|
$
|
46,736
|
|
|
$
|
49,373
|
|
Management nonqualified deferred compensation plan
|
|
16,796
|
|
|
17,409
|
|
||
Non-current portion of accrued income tax liability
|
|
26,684
|
|
|
25,400
|
|
||
Deferred lease obligation
|
|
14,131
|
|
|
14,342
|
|
||
Other
|
|
21,353
|
|
|
19,934
|
|
||
Total other long-term liabilities
|
|
$
|
125,700
|
|
|
$
|
126,458
|
|
Balance at March 31, 2013
|
$
|
19,669
|
|
Payments made
|
(2,313
|
)
|
|
Warranties issued
|
113
|
|
|
Changes related to preexisting warranties
|
33
|
|
|
Balance at June 30, 2013
|
$
|
17,502
|
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Senior Credit Facility dated October 7, 2010(1):
|
|
|
|
|
||||
Term A Loan due 2015
|
|
$
|
330,000
|
|
|
$
|
340,000
|
|
Term A Loan due 2017
|
|
192,500
|
|
|
195,000
|
|
||
Revolving Credit Facility due 2015
|
|
200,000
|
|
|
—
|
|
||
6.875% Senior Subordinated Notes due 2020 (2)
|
|
350,000
|
|
|
350,000
|
|
||
3.00% Convertible Senior Subordinated Notes due 2024 (3)
|
|
199,453
|
|
|
199,453
|
|
||
Principal amount of long-term debt
|
|
1,271,953
|
|
|
1,084,453
|
|
||
Less: Unamortized discounts
|
|
8,777
|
|
|
10,576
|
|
||
Carrying amount of long-term debt
|
|
1,263,176
|
|
|
1,073,877
|
|
||
Less: current portion
|
|
250,000
|
|
|
50,000
|
|
||
Carrying amount of long-term debt, excluding current portion
|
|
$
|
1,013,176
|
|
|
$
|
1,023,877
|
|
|
|
|
|
||||
|
June 30, 2013
|
|
March 31, 2013
|
||||
Carrying amount of the equity component
|
$
|
56,849
|
|
|
$
|
56,849
|
|
Principal amount of the liability component
|
$
|
199,453
|
|
|
$
|
199,453
|
|
Unamortized discount of liability component
|
$
|
8,777
|
|
|
$
|
10,576
|
|
Net carrying amount of liability component
|
$
|
190,676
|
|
|
$
|
188,877
|
|
Remaining amortization period of discount
|
134
|
|
|
137
|
|
||
Effective interest rate on liability component
|
7.000
|
%
|
|
7.000
|
%
|
|
|
||
Remainder of fiscal 2014
|
$
|
37,500
|
|
Fiscal 2015
|
256,953
|
|
|
Fiscal 2016
+
|
480,000
|
|
|
Fiscal 2017
|
20,000
|
|
|
Fiscal 2018
|
127,500
|
|
|
Thereafter
|
350,000
|
|
|
Total
|
$
|
1,271,953
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
Quarters Ended
|
|
Quarters Ended
|
||||||||||||
|
|
June 30, 2013
|
|
July 1, 2012
|
|
June 30, 2013
|
|
July 1, 2012
|
||||||||
Service cost
|
|
$
|
8,691
|
|
|
$
|
16,007
|
|
|
$
|
2
|
|
|
$
|
1
|
|
Interest cost
|
|
32,563
|
|
|
36,168
|
|
|
1,302
|
|
|
1,623
|
|
||||
Expected return on plan assets
|
|
(40,278
|
)
|
|
(42,007
|
)
|
|
(855
|
)
|
|
(813
|
)
|
||||
Amortization of unrecognized net loss
|
|
36,473
|
|
|
31,199
|
|
|
572
|
|
|
663
|
|
||||
Amortization of unrecognized prior service cost
|
|
(5,246
|
)
|
|
(98
|
)
|
|
(2,095
|
)
|
|
(2,095
|
)
|
||||
Net periodic benefit cost before special termination benefits cost / curtailment
|
|
32,203
|
|
|
41,269
|
|
|
(1,074
|
)
|
|
(621
|
)
|
||||
Special termination benefits cost / curtailment
|
|
—
|
|
|
2,000
|
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost
|
|
$
|
32,203
|
|
|
$
|
43,269
|
|
|
$
|
(1,074
|
)
|
|
$
|
(621
|
)
|
•
|
up to
221,509
shares will become payable only upon achievement of certain financial performance goals, including sales and return on invested capital for the fiscal
2012
through fiscal
2014
period;
|
•
|
up to
102,848
shares will become payable only upon achievement of certain performance goals, including sales and return on invested capital, for the fiscal
2013
through fiscal
2015
period; and
|
•
|
up to
92,006
shares will become payable only upon achievement of certain performance goals, including sales and return on invested capital, for the fiscal
2014
through fiscal
2016
period.
|
•
|
45,980
shares will become payable upon satisfaction of the market conditions stipulated for the fiscal
2012
through
2014
period.
|
|
|
June 30, 2013
|
|
March 31, 2013
|
||||||||||||
|
|
Liability
|
|
Receivable
|
|
Liability
|
|
Receivable
|
||||||||
Amounts (payable) receivable
|
|
$
|
(58,270
|
)
|
|
$
|
33,658
|
|
|
$
|
(61,227
|
)
|
|
$
|
35,638
|
|
Unamortized discount
|
|
6,344
|
|
|
(3,308
|
)
|
|
3,731
|
|
|
(1,925
|
)
|
||||
Present value amounts (payable) receivable
|
|
$
|
(51,926
|
)
|
|
$
|
30,350
|
|
|
$
|
(57,496
|
)
|
|
$
|
33,713
|
|
|
|
Termination
Benefits
|
|
Asset
Impairment
|
|
Facility
Closure
and Other
Costs
|
|
Total
|
||||||||
For the quarter ended July 1, 2012
|
|
|
|
|
|
|
|
|
||||||||
Balance at March 31, 2012
|
|
$
|
7,148
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
7,173
|
|
Expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Cash paid
|
|
(3,488
|
)
|
|
—
|
|
|
—
|
|
|
(3,488
|
)
|
||||
Non-cash settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Balance at July 1, 2012
|
|
$
|
3,660
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
3,685
|
|
•
|
Aerospace Group, which generated
28%
of ATK’s external sales in the quarter ended
June 30, 2013
, develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, and missile defense interceptors. They also produce small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables and solar arrays, and provide engineering and technical services. Additionally, the Aerospace Group operates in the military and commercial aircraft and launch structures markets. Other products include ordnance, such as decoy and illuminating flares.
|
•
|
Defense Group, which generated
39%
of ATK’s external sales in the quarter ended
June 30, 2013
, develops and produces military small-, medium-, and large-caliber ammunition, propulsion systems for tactical missiles and missile defense applications, strike weapons, precision munitions, gun systems, aircraft survivability systems, fuzes and warheads, energetic materials and special mission aircraft.
|
•
|
Sporting Group, which generated
33%
of ATK’s external sales in the quarter ended
June 30, 2013
, develops and produces commercial ammunition, accessories and tactical systems, and hunting rifles and shotguns.
|
|
|
Quarter ended June 30, 2013
|
||||||||||||||||||
|
|
Aerospace Group
|
|
Defense Group
|
|
Sporting Group
|
|
Corporate
|
|
Total
|
||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External customers
|
|
$
|
301,614
|
|
|
$
|
421,151
|
|
|
$
|
355,978
|
|
|
$
|
—
|
|
|
$
|
1,078,743
|
|
Intercompany
|
|
5,574
|
|
|
53,665
|
|
|
2,332
|
|
|
(61,571
|
)
|
|
—
|
|
|||||
Total
|
|
307,188
|
|
|
474,816
|
|
|
358,310
|
|
|
(61,571
|
)
|
|
1,078,743
|
|
|||||
Income before interest, income taxes and noncontrolling interest
|
|
37,086
|
|
|
62,088
|
|
|
44,117
|
|
|
(17,666
|
)
|
|
125,625
|
|
|||||
Total assets
|
|
$
|
1,550,187
|
|
|
$
|
1,103,397
|
|
|
$
|
1,288,134
|
|
|
$
|
440,836
|
|
|
$
|
4,382,554
|
|
|
|
Quarter ended July 1, 2012
|
||||||||||||||||||
|
|
Aerospace
Group |
|
Defense Group
|
|
Sporting Group
|
|
Corporate
|
|
Total
|
||||||||||
Sales:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External customers
|
|
$
|
294,656
|
|
|
$
|
514,479
|
|
|
$
|
273,166
|
|
|
$
|
—
|
|
|
$
|
1,082,301
|
|
Intercompany
|
|
5,286
|
|
|
31,691
|
|
|
5,798
|
|
|
(42,775
|
)
|
|
—
|
|
|||||
Total
|
|
299,942
|
|
|
546,170
|
|
|
278,964
|
|
|
(42,775
|
)
|
|
1,082,301
|
|
|||||
Income before interest, income taxes and noncontrolling interest
|
|
$
|
34,950
|
|
|
$
|
91,361
|
|
|
$
|
20,794
|
|
|
$
|
(16,417
|
)
|
|
$
|
130,688
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Year ended March 31, 2013
|
||||||||||||||||||
|
|
Aerospace
Group |
|
Defense Group
|
|
Sporting Group
|
|
Corporate
|
|
Total
|
||||||||||
Total assets
|
|
$
|
1,580,775
|
|
|
$
|
1,122,416
|
|
|
$
|
803,493
|
|
|
$
|
876,326
|
|
|
$
|
4,383,010
|
|
•
|
reductions or changes in NASA or U.S. Government military spending and budgetary policies, including impacts of sequestration under the Budget Control Act of 2011, and sourcing strategies,
|
•
|
intense competition,
|
•
|
increases in costs, which ATK may not be able to react to due to the nature of its U.S. Government contracts,
|
•
|
changes in cost and revenue estimates and/or timing of programs,
|
•
|
the potential termination of U.S. Government contracts and the potential inability to recover termination costs,
|
•
|
reduction or change in demand for commercial ammunition and firearms, including the risk that placed orders exceed actual customer requirements,
|
•
|
risks associated with expansion into commercial markets,
|
•
|
actual pension and other postretirement plan asset returns and assumptions regarding future returns, discount rates, service costs, mortality rates, and health care cost trend rates,
|
•
|
greater risk associated with international business,
|
•
|
other risks associated with U.S. Government contracts that might expose ATK to adverse consequences,
|
•
|
costs of servicing ATK's debt, including cash requirements and interest rate fluctuations,
|
•
|
security threats, including cybersecurity and other industrial and physical security threats, and other disruptions,
|
•
|
supply, availability, and costs of raw materials and components, including commodity price fluctuations,
|
•
|
government laws and other rules and regulations applicable to ATK, such as procurement and import-export control, and federal and state firearms and ammunition regulations,
|
•
|
the novation of U.S. Government contracts,
|
•
|
performance of ATK's subcontractors,
|
•
|
development of key technologies and retention of a qualified workforce,
|
•
|
fires or explosions at any of ATK's facilities,
|
•
|
environmental laws that govern past practices and rules and regulations, noncompliance with which may expose ATK to adverse consequences,
|
•
|
impacts of financial market disruptions or volatility to ATK's customers and vendors,
|
•
|
results of acquisitions or other transactions, and costs incurred for pursuits and proposed acquisitions that have not yet or may not close,
|
•
|
unanticipated changes in the tax provision or exposure to additional tax liabilities, and
|
•
|
the costs and ultimate outcome of litigation matters and other legal proceedings.
|
•
|
Aerospace Group, which generated
28%
of ATK's external sales in the quarter ended
June 30, 2013
, develops and produces rocket motor systems for human and cargo launch vehicles, conventional and strategic missiles, and missile defense interceptors. They also produce small and micro-satellites, satellite components, structures and subsystems, lightweight space deployables and solar arrays, and provide engineering and technical services. Additionally, the Aerospace Group operates in the military and commercial aircraft and launch structures markets. Other products include ordnance, such as decoy and illuminating flares.
|
•
|
Defense Group, which generated
39%
of ATK's external sales in the quarter ended
June 30, 2013
, develops and produces military small-, medium-, and large-caliber ammunition, propulsion systems for tactical missiles and missile defense applications, strike weapons, precision munitions, gun systems, aircraft survivability systems, fuzes and warheads, energetic materials and special mission aircraft.
|
•
|
Sporting Group, which generated
33%
of ATK's external sales in the quarter ended
June 30, 2013
, develops and produces commercial ammunition, accessories and tactical systems, and hunting rifles and shotguns.
|
•
|
Quarterly sales of
$1.1 billion
.
|
•
|
Diluted earnings per share of
$2.24
.
|
•
|
Orders for the quarter ended
June 30, 2013
of
$1.4 billion
compared to $1.1 billion in the quarter ended
July 1, 2012
. Orders include strong orders in ATK's Sporting Group, which are cancelable and may not be indicative of future sales, as ATK believes there may have been a number of ammunition orders placed that exceeds actual customer requirements.
|
•
|
Total backlog of
$8.5 billion
at
June 30, 2013
compared to
$6.1 billion
at
July 1, 2012
. Backlog includes orders within the Sporting Group which are cancelable, and ATK believes there may have been a number of ammunition orders placed that exceeds actual customer requirements.
|
•
|
Income before interest, income taxes, and noncontrolling interest as a percentage of sales was
11.6%
and
12.1%
for the quarters ended
June 30, 2013
and
July 1, 2012
, respectively. The prior year rate reflects the increased production volume and gain on sale of residual assets as a result of the loss of the Radford facility management contract.
|
•
|
The decrease in the current period tax rate to
35.5%
from
36.1%
in the quarter ended
July 1, 2012
is primarily due the expiration of the federal R&D tax credit in the prior year (which was subsequently extended), partially offset by current year nondeductible acquisition-related costs.
|
•
|
On June 21, 2013, ATK acquired Caliber Company, the parent company of Savage Sports Corporation, for $315,000 in cash, net of cash acquired, and subject to a customary working capital adjustment.
|
•
|
On June 21, 2013, ATK borrowed
$200,000
against its
$600,000
Revolving Credit Facility to fund the purchase of Savage.
|
•
|
On May 1, 2013, ATK’s Board of Directors declared a quarterly cash dividend of $0.26 per share to stockholders of record on June 3, 2013. The dividend was paid on June 27, 2013.
|
•
|
During the quarter ended June 30, 2013, ATK repurchased
321,596
shares for
$24,322
|
•
|
On July 31, 2013, ATK’s Board of Directors declared a quarterly cash dividend of $0.26 per share, payable on September 26, 2013, to stockholders of record on September 4, 2013.
|
•
|
ATK's Board of Directors appointed Jay Tibbets Senior Vice President and President Sporting Group effective July 31, 2013.
|
•
|
ATK's Board of Directors appointed Stephen Nolan Senior Vice President Strategy and Business Development effective July 31, 2013.
|
•
|
revenue recognition,
|
•
|
employee benefit plans,
|
•
|
income taxes,
|
•
|
acquisitions, and
|
•
|
accounting for goodwill.
|
|
Quarters Ended
|
|
|
|
|
|||||||||
|
June 30, 2013
|
|
July 1, 2012
|
|
$ Change
|
|
% Change
|
|||||||
Aerospace Group
|
$
|
307,188
|
|
|
$
|
299,942
|
|
|
$
|
7,246
|
|
|
2.4
|
%
|
Defense Group
|
474,816
|
|
|
546,170
|
|
|
(71,354
|
)
|
|
(13.1
|
)%
|
|||
Sporting Group
|
358,310
|
|
|
278,964
|
|
|
79,346
|
|
|
28.4
|
%
|
|||
Eliminations
|
(61,571
|
)
|
|
(42,775
|
)
|
|
(18,796
|
)
|
|
43.9
|
%
|
|||
Total external sales
|
$
|
1,078,743
|
|
|
$
|
1,082,301
|
|
|
$
|
(3,558
|
)
|
|
(0.3
|
)%
|
•
|
a decrease of $49,200 in Missile Products driven by the loss of the Radford facility management contract, and
|
•
|
a decrease of $27,700 in Armament Systems driven by lower volumes on medium-caliber ammunition programs, and completion of programs.
|
•
|
a $76,400 increase in ammunition and accessories products driven by increased volume and previously announced price increases for ammunition, partially offset by a reduction in military accessories due to completion of programs, and
|
•
|
an increase of $6,400 due to the acquisition of Savage.
|
|
Quarters Ended
|
|
|
|
|
|||||||||
|
June 30, 2013
|
|
July 1, 2012
|
|
$ Change
|
|
% Change
|
|||||||
Aerospace Group
|
$
|
241,934
|
|
|
$
|
230,920
|
|
|
$
|
11,014
|
|
|
4.8
|
%
|
Defense Group
|
369,327
|
|
|
404,695
|
|
|
(35,368
|
)
|
|
(8.7
|
)%
|
|||
Sporting Group
|
274,439
|
|
|
223,172
|
|
|
51,267
|
|
|
23.0
|
%
|
|||
Corporate/Eliminations
|
(48,969
|
)
|
|
(26,108
|
)
|
|
(22,861
|
)
|
|
87.6
|
%
|
|||
Total cost of sales
|
$
|
836,731
|
|
|
$
|
832,679
|
|
|
$
|
4,052
|
|
|
0.5
|
%
|
•
|
a decrease of $19,500 in Missile Products driven by the loss of the Radford facility management contract, and
|
•
|
a $17,900 decrease in Armament Systems driven by lower volumes on medium-caliber ammunition programs and completion of programs.
|
•
|
a $46,600 increase in ammunition and accessories products driven by an increase in ammunition sales volume, and facility rationalization costs partially offset by product mix and a reduction in military accessories due to completion of programs, and
|
•
|
a $4,700 increase due to the acquisition of Savage.
|
|
Quarters Ended
|
|
|
||||||||||||||
|
June 30, 2013
|
|
As a %
of Sales |
|
July 1, 2012
|
|
As a %
of Sales |
|
$ Change
|
||||||||
Research and development
|
$
|
10,425
|
|
|
1.0
|
%
|
|
$
|
14,008
|
|
|
1.3
|
%
|
|
$
|
(3,583
|
)
|
Selling
|
42,764
|
|
|
4.0
|
%
|
|
40,527
|
|
|
3.7
|
%
|
|
2,237
|
|
|||
General and administrative
|
63,198
|
|
|
5.9
|
%
|
|
64,399
|
|
|
6.0
|
%
|
|
(1,201
|
)
|
|||
Total
|
$
|
116,387
|
|
|
10.9
|
%
|
|
$
|
118,934
|
|
|
11.0
|
%
|
|
$
|
(2,547
|
)
|
|
Quarters Ended
|
|
|
||||||||
|
June 30, 2013
|
|
July 1, 2012
|
|
Change
|
||||||
Aerospace Group
|
$
|
37,086
|
|
|
$
|
34,950
|
|
|
$
|
2,136
|
|
Defense Group
|
62,088
|
|
|
91,361
|
|
|
(29,273
|
)
|
|||
Sporting Group
|
44,117
|
|
|
20,794
|
|
|
23,323
|
|
|||
Corporate/Eliminations
|
(17,666
|
)
|
|
(16,417
|
)
|
|
(1,249
|
)
|
|||
Total
|
$
|
125,625
|
|
|
$
|
130,688
|
|
|
$
|
(5,063
|
)
|
|
Quarters Ended
|
|
|
||||||||||||||
|
June 30, 2013
|
|
Effective
Rate |
|
July 1, 2012
|
|
Effective
Rate |
|
$ Change
|
||||||||
Income tax provision
|
$
|
39,661
|
|
|
35.5
|
%
|
|
$
|
39,997
|
|
|
36.1
|
%
|
|
$
|
(336
|
)
|
|
June 30, 2013
|
|
July 1, 2012
|
||||
Cash flows used for operating activities
|
$
|
(135,763
|
)
|
|
$
|
(296,048
|
)
|
Cash flows used for investing activities
|
(338,325
|
)
|
|
(23,882
|
)
|
||
Cash flows provided by (used for) financing activities
|
156,084
|
|
|
(36,527
|
)
|
||
Net cash flows
|
$
|
(318,004
|
)
|
|
$
|
(356,457
|
)
|
|
June 30, 2013
|
|
March 31, 2013
|
||||
Senior Credit Facility dated October 7, 2010:
|
|
|
|
||||
Term A Loan due 2015
|
$
|
330,000
|
|
|
$
|
340,000
|
|
Term A Loan due 2017
|
192,500
|
|
|
195,000
|
|
||
Revolving Credit Facility due 2015
|
200,000
|
|
|
—
|
|
||
6.875% Senior Subordinated Notes due 2020
|
350,000
|
|
|
350,000
|
|
||
3.00% Convertible Senior Subordinated Notes due 2024
|
199,453
|
|
|
199,453
|
|
||
Principal amount of long-term debt
|
1,271,953
|
|
|
1,084,453
|
|
||
Less: Unamortized discounts
|
8,777
|
|
|
10,576
|
|
||
Carrying amount of long-term debt
|
1,263,176
|
|
|
1,073,877
|
|
||
Less: current portion
|
250,000
|
|
|
50,000
|
|
||
Carrying amount of long-term debt, excluding current portion
|
$
|
1,013,176
|
|
|
$
|
1,023,877
|
|
|
June 30, 2013
|
|
July 1, 2012
|
||||||||||||
|
Liability
|
|
Receivable
|
|
Liability
|
|
Receivable
|
||||||||
Amounts (payable) receivable
|
$
|
(58,270
|
)
|
|
$
|
33,658
|
|
|
$
|
(61,227
|
)
|
|
$
|
35,638
|
|
Unamortized discount
|
6,344
|
|
|
(3,308
|
)
|
|
3,731
|
|
|
(1,925
|
)
|
||||
Present value amounts (payable) receivable
|
$
|
(51,926
|
)
|
|
$
|
30,350
|
|
|
$
|
(57,496
|
)
|
|
$
|
33,713
|
|
Period
|
Total Number
of Shares
Purchased(1)
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased
as Part of
Publicly
Announced
Program
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased Under
the Program(2)*
|
|||||
April 1 - April 28
|
2,387
|
|
|
$
|
65,030
|
|
|
106
|
|
|
|
|
April 29 - May 26
|
14,785
|
|
|
75.46
|
|
|
101
|
|
|
|
|
|
May 27 - June 30
|
758
|
|
|
79.33
|
|
|
115
|
|
|
|
|
|
Fiscal Quarter Ended June 30, 2013
|
17,930
|
|
|
$
|
73.46
|
|
|
322
|
|
|
1,410,992
|
|
(1)
|
The
17,930
shares purchased represent shares withheld to pay taxes upon vesting of shares of restricted stock and performance shares that were granted under ATK's incentive compensation plans.
|
(2)
|
On January 31, 2012, ATK's Board of Directors authorized a new share repurchase program of up to $200 million worth of shares of ATK common stock, executable over the next two years. The shares may be purchased from time to time in open market, block purchase, or negotiated transactions, subject to compliance with applicable laws and regulations. The new repurchase authorization also allows the Company to make repurchases under Rule 10b5-1 of the Securities Exchange Act of 1934. This share repurchase program replaces the prior program authorized in 2008. In the quarter ended
June 30, 2013
, ATK repurchased
321,596
shares under this program for
$24.3 million
.
|
Exhibit
Number
|
|
Description of Exhibit (and document from which incorporated by reference, if applicable)
|
10.1
|
|
Amendment No. 1 to Non-Employee Director Restricted Stock Award and Stock Deferral Program
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer.
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer.
|
|
|
|
32
|
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the 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.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
ALLIANT TECHSYSTEMS INC.
|
||||
Date: August 7, 2013
|
|
By:
|
|
/s/ Neal S. Cohen
|
||
|
|
|
|
Name:
|
|
Neal S. Cohen
|
|
|
|
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
|
|
(On behalf of the Registrant and as principal financial and accounting officer)
|
I, Mark W. DeYoung, certify that:
|
||
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Alliant Techsystems Inc.;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
|
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
|
|
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
|
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 7, 2013
|
By:
|
|
/s/ Mark W. DeYoung
|
|
Name:
|
|
Mark W. DeYoung
|
|
Title:
|
|
President and Chief Executive Officer
|
I, Neal S. Cohen, certify that:
|
||
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Alliant Techsystems Inc.;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
|
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
|
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
|
|
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
|
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 7, 2013
|
By:
|
|
/s/ Neal S. Cohen
|
|
Name:
|
|
Neal S. Cohen
|
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
(1)
|
the Quarterly Report on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
|
By:
|
|
/s/ Mark W. DeYoung
|
|
||
|
Name:
|
|
Mark W. DeYoung
|
|
||
|
Title:
|
|
President and Chief Executive Officer
|
|
||
|
|
|
|
|
||
|
By:
|
|
|
/s/ Neal S. Cohen
|
||
|
Name:
|
|
|
Neal S. Cohen
|
||
|
Title:
|
|
|
Executive Vice President and Chief Financial Officer
|