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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Spirit Aerosystems Holdings Inc | NYSE:SPR | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.43 | -1.31% | 32.50 | 33.29 | 31.49 | 32.84 | 2,700,818 | 00:59:36 |
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
20-2436320
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
x
|
|
Accelerated filer
o
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
|
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended |
||||||||||||
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
|
($ in millions, except per share data)
|
||||||||||||||
Net revenues
|
$
|
1,829.9
|
|
|
$
|
1,698.7
|
|
|
$
|
3,511.5
|
|
|
$
|
3,440.9
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales
|
1,672.0
|
|
|
1,407.9
|
|
|
3,031.0
|
|
|
2,856.2
|
|
||||
Selling, general and administrative
|
70.2
|
|
|
53.8
|
|
|
120.2
|
|
|
105.4
|
|
||||
Research and development
|
4.4
|
|
|
6.7
|
|
|
10.5
|
|
|
13.7
|
|
||||
Total operating costs and expenses
|
1,746.6
|
|
|
1,468.4
|
|
|
3,161.7
|
|
|
2,975.3
|
|
||||
Operating income
|
83.3
|
|
|
230.3
|
|
|
349.8
|
|
|
465.6
|
|
||||
Interest expense and financing fee amortization
|
(23.9
|
)
|
|
(12.1
|
)
|
|
(35.3
|
)
|
|
(30.0
|
)
|
||||
Other (expense) income, net
|
(6.2
|
)
|
|
8.1
|
|
|
(8.4
|
)
|
|
1.7
|
|
||||
Income before income taxes and equity in net income of affiliate
|
53.2
|
|
|
226.3
|
|
|
306.1
|
|
|
437.3
|
|
||||
Income tax provision
|
(8.6
|
)
|
|
(71.7
|
)
|
|
(90.5
|
)
|
|
(101.1
|
)
|
||||
Income before equity in net income of affiliate
|
44.6
|
|
|
154.6
|
|
|
215.6
|
|
|
336.2
|
|
||||
Equity in net income of affiliate
|
0.2
|
|
|
0.3
|
|
|
0.8
|
|
|
0.6
|
|
||||
Net income
|
$
|
44.8
|
|
|
$
|
154.9
|
|
|
$
|
216.4
|
|
|
$
|
336.8
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.35
|
|
|
$
|
1.11
|
|
|
$
|
1.66
|
|
|
$
|
2.42
|
|
Diluted
|
$
|
0.35
|
|
|
$
|
1.11
|
|
|
$
|
1.65
|
|
|
$
|
2.41
|
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended |
||||||||||||
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
|
($ in millions)
|
||||||||||||||
Net income
|
$
|
44.8
|
|
|
$
|
154.9
|
|
|
$
|
216.4
|
|
|
$
|
336.8
|
|
Changes in other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Settlement of swap, net of tax effect of zero for each of the three and six months ended, respectively
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
||||
Pension, SERP, and Retiree medical adjustments, net of tax effect of ($0.2) and zero for the three months ended and ($0.4) and zero for the six months ended, respectively
|
0.2
|
|
|
(1.9
|
)
|
|
1.0
|
|
|
(1.9
|
)
|
||||
Unrealized foreign exchange loss on intercompany loan, net of tax effect of $0.8 and ($0.6) for the three months ended and $1.1 and zero for the six months ended, respectively
|
(3.2
|
)
|
|
2.5
|
|
|
(4.4
|
)
|
|
0.1
|
|
||||
Foreign currency translation adjustments
|
(23.4
|
)
|
|
13.8
|
|
|
(31.0
|
)
|
|
1.1
|
|
||||
Total other comprehensive (loss) income
|
(26.4
|
)
|
|
14.4
|
|
|
(34.4
|
)
|
|
0.4
|
|
||||
Total comprehensive income
|
$
|
18.4
|
|
|
$
|
169.3
|
|
|
$
|
182.0
|
|
|
$
|
337.2
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
($ in millions)
|
||||||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
800.5
|
|
|
$
|
957.3
|
|
Restricted cash
|
86.4
|
|
|
—
|
|
||
Accounts receivable, net
|
756.3
|
|
|
537.0
|
|
||
Inventory, net
|
1,546.6
|
|
|
1,774.4
|
|
||
Other current assets
|
56.9
|
|
|
30.4
|
|
||
Total current assets
|
3,246.7
|
|
|
3,299.1
|
|
||
Property, plant and equipment, net
|
1,936.8
|
|
|
1,950.7
|
|
||
Pension assets
|
249.1
|
|
|
246.9
|
|
||
Other assets
|
250.1
|
|
|
267.8
|
|
||
Total assets
|
$
|
5,682.7
|
|
|
$
|
5,764.5
|
|
Current liabilities
|
|
|
|
|
|
||
Accounts payable
|
$
|
653.9
|
|
|
$
|
618.2
|
|
Accrued expenses
|
235.7
|
|
|
230.2
|
|
||
Profit sharing
|
45.3
|
|
|
61.6
|
|
||
Current portion of long-term debt
|
126.8
|
|
|
34.9
|
|
||
Advance payments, short-term
|
189.7
|
|
|
178.3
|
|
||
Deferred revenue, short-term
|
304.3
|
|
|
285.5
|
|
||
Deferred grant income liability - current
|
13.2
|
|
|
11.9
|
|
||
Other current liabilities
|
38.4
|
|
|
37.7
|
|
||
Total current liabilities
|
1,607.3
|
|
|
1,458.3
|
|
||
Long-term debt
|
1,071.6
|
|
|
1,085.3
|
|
||
Advance payments, long-term
|
425.6
|
|
|
507.4
|
|
||
Pension/OPEB obligation
|
70.7
|
|
|
67.7
|
|
||
Deferred revenue and other deferred credits
|
177.3
|
|
|
170.0
|
|
||
Deferred grant income liability - non-current
|
73.0
|
|
|
82.3
|
|
||
Other liabilities
|
258.2
|
|
|
273.5
|
|
||
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, 129,051,833 and 135,617,589 shares issued and outstanding, respectively
|
1.3
|
|
|
1.4
|
|
||
Common stock, Class B par value $0.01, 150,000,000 shares authorized, 121 shares issued and outstanding each period, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,066.3
|
|
|
1,051.6
|
|
||
Accumulated other comprehensive loss
|
(194.9
|
)
|
|
(160.5
|
)
|
||
Retained earnings
|
1,872.6
|
|
|
1,656.2
|
|
||
Treasury stock, at cost (16,582,310 and 9,691,865 shares, respectively)
|
(746.8
|
)
|
|
(429.2
|
)
|
||
Total shareholders’ equity
|
1,998.5
|
|
|
2,119.5
|
|
||
Noncontrolling interest
|
0.5
|
|
|
0.5
|
|
||
Total equity
|
1,999.0
|
|
|
2,120.0
|
|
||
Total liabilities and equity
|
$
|
5,682.7
|
|
|
$
|
5,764.5
|
|
|
For the Six
Months Ended
|
||||||
|
June 30,
2016 |
|
July 2,
2015 |
||||
|
($ in millions)
|
||||||
Operating activities
|
|
|
|
|
|
||
Net income
|
$
|
216.4
|
|
|
$
|
336.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
||
Depreciation expense
|
98.9
|
|
|
88.8
|
|
||
Amortization expense
|
0.1
|
|
|
0.6
|
|
||
Amortization of deferred financing fees
|
14.7
|
|
|
5.1
|
|
||
Accretion of customer supply agreement
|
2.4
|
|
|
1.1
|
|
||
Employee stock compensation expense
|
28.9
|
|
|
11.9
|
|
||
Excess tax benefit of share-based payment arrangements
|
—
|
|
|
(10.1
|
)
|
||
Loss from hedge contracts
|
—
|
|
|
1.6
|
|
||
Loss from foreign currency transactions
|
11.2
|
|
|
2.7
|
|
||
Loss on disposition of assets
|
3.1
|
|
|
2.2
|
|
||
Deferred taxes
|
25.4
|
|
|
4.4
|
|
||
Pension and other post retirement benefits, net
|
0.8
|
|
|
(13.1
|
)
|
||
Grant liability amortization
|
(5.4
|
)
|
|
(4.8
|
)
|
||
Equity in net income of affiliate
|
(0.8
|
)
|
|
(0.6
|
)
|
||
Changes in assets and liabilities
|
|
|
|
|
|
||
Accounts receivable
|
(224.1
|
)
|
|
40.1
|
|
||
Inventory, net
|
184.9
|
|
|
(1.3
|
)
|
||
Accounts payable and accrued liabilities
|
39.5
|
|
|
(12.0
|
)
|
||
Profit sharing/deferred compensation
|
(16.1
|
)
|
|
(70.0
|
)
|
||
Advance payments
|
(70.4
|
)
|
|
(43.2
|
)
|
||
Income taxes receivable/payable
|
(29.9
|
)
|
|
181.5
|
|
||
Deferred revenue and other deferred credits
|
28.0
|
|
|
185.7
|
|
||
Other
|
1.2
|
|
|
21.6
|
|
||
Net cash provided by operating activities
|
308.8
|
|
|
729.0
|
|
||
Investing activities
|
|
|
|
|
|
||
Purchase of property, plant and equipment
|
(104.7
|
)
|
|
(115.4
|
)
|
||
Net cash used in investing activities
|
(104.7
|
)
|
|
(115.4
|
)
|
||
Financing activities
|
|
|
|
|
|
||
Proceeds from issuance of debt
|
—
|
|
|
535.0
|
|
||
Proceeds from issuance of bonds
|
299.8
|
|
|
—
|
|
||
Principal payments of debt
|
(9.8
|
)
|
|
(17.4
|
)
|
||
Payments on term loan
|
—
|
|
|
(534.9
|
)
|
||
Payments on bonds
|
(213.6
|
)
|
|
—
|
|
||
Taxes paid related to net share settlement awards
|
(14.3
|
)
|
|
(20.2
|
)
|
||
Excess tax benefit of share-based payment arrangements
|
—
|
|
|
10.1
|
|
||
Debt issuance and financing costs
|
(13.7
|
)
|
|
(4.7
|
)
|
||
Purchase of treasury stock
|
(317.6
|
)
|
|
—
|
|
||
Change in restricted cash
|
(86.4
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(355.6
|
)
|
|
(32.1
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(5.3
|
)
|
|
(0.7
|
)
|
||
Net (decrease) increase in cash and cash equivalents for the period
|
(156.8
|
)
|
|
580.8
|
|
||
Cash and cash equivalents, beginning of period
|
957.3
|
|
|
377.9
|
|
||
Cash and cash equivalents, end of period
|
$
|
800.5
|
|
|
$
|
958.7
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
Changes in Estimates
|
|
June 30, 2016
|
|
July 2, 2015
|
|
June 30, 2016
|
|
July 2, 2015
|
||||||||
Cumulative Catch-up Adjustment by Segment
|
|
|
|
|
|
|
|
|
||||||||
Fuselage
|
|
$
|
—
|
|
|
$
|
10.8
|
|
|
$
|
16.2
|
|
|
$
|
10.3
|
|
Propulsion
|
|
(8.8
|
)
|
|
6.6
|
|
|
(0.7
|
)
|
|
14.4
|
|
||||
Wing
|
|
9.8
|
|
|
(0.8
|
)
|
|
19.1
|
|
|
(0.6
|
)
|
||||
Total Favorable Cumulative Catch-up Adjustment
|
|
$
|
1.0
|
|
|
$
|
16.6
|
|
|
$
|
34.6
|
|
|
$
|
24.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in Estimates on Loss Programs (Forward Loss)
|
|
|
|
|
|
|
|
|
||||||||
Fuselage
|
|
|
|
|
|
|
|
|
||||||||
Boeing - All other platforms
|
|
$
|
0.9
|
|
|
$
|
3.5
|
|
|
$
|
4.0
|
|
|
$
|
6.4
|
|
Airbus A350 XWB
|
|
(135.7
|
)
|
|
—
|
|
|
(135.7
|
)
|
|
—
|
|
||||
Other Platforms
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Total Fuselage (Forward Loss) Change in Estimate on Loss Programs
|
|
$
|
(134.5
|
)
|
|
$
|
3.5
|
|
|
$
|
(131.4
|
)
|
|
$
|
6.4
|
|
Propulsion
|
|
|
|
|
|
|
|
|
||||||||
Boeing - All other platforms
|
|
$
|
(2.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
3.1
|
|
|
$
|
(1.3
|
)
|
Rolls-Royce BR725
|
|
—
|
|
|
—
|
|
|
3.4
|
|
|
—
|
|
||||
Total Propulsion (Forward Loss) Change in Estimate on Loss Programs
|
|
$
|
(2.4
|
)
|
|
$
|
(1.3
|
)
|
|
$
|
6.5
|
|
|
$
|
(1.3
|
)
|
Wing
|
|
|
|
|
|
|
|
|
||||||||
Boeing - All other platforms
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
—
|
|
Total Wing Change in Estimate on Loss Programs
|
|
$
|
1.2
|
|
|
$
|
—
|
|
|
$
|
4.2
|
|
|
$
|
—
|
|
Total (Forward Loss) Change in Estimate on Loss Programs
|
|
$
|
(135.7
|
)
|
|
$
|
2.2
|
|
|
$
|
(120.7
|
)
|
|
$
|
5.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Change in Estimate
|
|
$
|
(134.7
|
)
|
|
$
|
18.8
|
|
|
$
|
(86.1
|
)
|
|
$
|
29.2
|
|
EPS Impact (diluted per share based upon statutory rates)
|
|
$
|
(0.66
|
)
|
|
$
|
0.08
|
|
|
$
|
(0.41
|
)
|
|
$
|
0.13
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
Trade receivables
|
$
|
746.7
|
|
|
$
|
524.3
|
|
Other
|
14.6
|
|
|
18.8
|
|
||
Less: allowance for doubtful accounts
|
(5.0
|
)
|
|
(6.1
|
)
|
||
Accounts receivable, net
|
$
|
756.3
|
|
|
$
|
537.0
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
Raw materials
|
$
|
265.2
|
|
|
$
|
253.8
|
|
Work-in-process
|
747.6
|
|
|
854.4
|
|
||
Finished goods
|
42.1
|
|
|
65.7
|
|
||
Product inventory
|
1,054.9
|
|
|
1,173.9
|
|
||
Capitalized pre-production
|
125.1
|
|
|
167.8
|
|
||
Deferred production
|
1,379.3
|
|
|
1,315.4
|
|
||
Forward loss provision
|
(1,012.7
|
)
|
|
(882.7
|
)
|
||
Total inventory, net
|
$
|
1,546.6
|
|
|
$
|
1,774.4
|
|
|
June 30, 2016
|
||||||||||||||||||||||
|
Product Inventory
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Inventory
|
|
Non-Recurring
|
|
Capitalized Pre-
Production
|
|
Deferred
Production
|
|
Forward Loss
Provision
|
|
Total Inventory,
net June 30, 2016
|
||||||||||||
B787
|
199.8
|
|
|
9.7
|
|
|
10.0
|
|
|
592.2
|
|
|
(606.0
|
)
|
|
205.7
|
|
||||||
Boeing - All other platforms
|
478.9
|
|
|
17.1
|
|
|
5.1
|
|
|
(5.4
|
)
|
|
(17.6
|
)
|
|
478.1
|
|
||||||
A350 XWB
|
155.1
|
|
|
32.3
|
|
|
89.1
|
|
|
692.0
|
|
|
(249.2
|
)
|
|
719.3
|
|
||||||
Airbus - All other platforms
|
87.3
|
|
|
—
|
|
|
—
|
|
|
(10.8
|
)
|
|
—
|
|
|
76.5
|
|
||||||
Rolls-Royce BR725
(1)
|
14.9
|
|
|
—
|
|
|
20.9
|
|
|
103.9
|
|
|
(139.7
|
)
|
|
—
|
|
||||||
GCS&S
|
26.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.3
|
|
||||||
Other platforms
|
30.3
|
|
|
3.2
|
|
|
—
|
|
|
7.4
|
|
|
(0.2
|
)
|
|
40.7
|
|
||||||
Total
|
$
|
992.6
|
|
|
$
|
62.3
|
|
|
$
|
125.1
|
|
|
$
|
1,379.3
|
|
|
$
|
(1,012.7
|
)
|
|
$
|
1,546.6
|
|
|
December 31, 2015
|
||||||||||||||||||||||
|
Product Inventory
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Inventory
|
|
Non-Recurring
|
|
Capitalized Pre-
Production
|
|
Deferred
Production
|
|
Forward Loss
Provision
|
|
Total Inventory,
net December 31,
2015
|
||||||||||||
B787
|
222.7
|
|
|
9.8
|
|
|
42.1
|
|
|
558.5
|
|
|
(606.0
|
)
|
|
227.1
|
|
||||||
Boeing - All other platforms
|
491.9
|
|
|
23.0
|
|
|
5.6
|
|
|
(32.8
|
)
|
|
(28.8
|
)
|
|
458.9
|
|
||||||
A350 XWB
|
148.7
|
|
|
35.3
|
|
|
94.2
|
|
|
679.4
|
|
|
(113.8
|
)
|
|
843.8
|
|
||||||
Airbus - All other platforms
|
90.8
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
|
—
|
|
|
100.0
|
|
||||||
Rolls-Royce BR725
(1)
|
12.5
|
|
|
—
|
|
|
25.9
|
|
|
95.7
|
|
|
(134.1
|
)
|
|
—
|
|
||||||
GCS&S
|
54.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54.3
|
|
||||||
Other platforms
|
80.0
|
|
|
4.9
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
90.3
|
|
||||||
Total
|
$
|
1,100.9
|
|
|
$
|
73.0
|
|
|
$
|
167.8
|
|
|
$
|
1,315.4
|
|
|
$
|
(882.7
|
)
|
|
$
|
1,774.4
|
|
|
(1)
|
Forward loss charges recorded in prior periods on the Rolls-Royce BR725 program exceeded the total inventory balance. The excess of the charge over program inventory is classified as a contract liability and reported in other current liabilities on the Condensed Consolidated Balance Sheet. The total contract liability was
$3.1
and
$12.2
as of
June 30, 2016
and December 31, 2015, respectively.
|
Model
|
|
Current Block Deliveries
|
|
Contract Block
Quantity
|
|
Orders
(1)
|
|||
B787
|
|
477
|
|
|
500
|
|
|
724
|
|
A350 XWB
|
|
98
|
|
|
800
|
|
|
775
|
|
Rolls-Royce BR725
|
|
222
|
|
|
350
|
|
|
320
|
|
|
(1)
|
Order amounts are obtained from the published firm-order backlogs of Airbus and Boeing. For Rolls-Royce BR725, orders represent purchase orders received from OEMs and are not reflective of OEM sales backlog.
|
|
June 30,
2016 |
|
December 31,
2015
|
||||
Land
|
$
|
15.3
|
|
|
$
|
16.5
|
|
Buildings (including improvements)
|
626.1
|
|
|
585.4
|
|
||
Machinery and equipment
|
1,291.6
|
|
|
1,210.6
|
|
||
Tooling
|
949.2
|
|
|
927.2
|
|
||
Capitalized software
|
236.0
|
|
|
219.7
|
|
||
Construction-in-progress
|
193.1
|
|
|
278.6
|
|
||
Total
|
3,311.3
|
|
|
3,238.0
|
|
||
Less: accumulated depreciation
|
(1,374.5
|
)
|
|
(1,287.3
|
)
|
||
Property, plant and equipment, net
|
$
|
1,936.8
|
|
|
$
|
1,950.7
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
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
|
(1.7
|
)
|
|
(1.6
|
)
|
||
Accumulated amortization - favorable leasehold interest
|
(4.0
|
)
|
|
(3.8
|
)
|
||
Intangible assets, net
|
2.5
|
|
|
2.8
|
|
||
Deferred financing
|
|
|
|
|
|
||
Deferred financing costs
|
38.5
|
|
|
36.8
|
|
||
Less: Accumulated amortization - deferred financing costs
|
(31.5
|
)
|
|
(30.3
|
)
|
||
Deferred financing costs, net
(1)
|
7.0
|
|
|
6.5
|
|
||
Other
|
|
|
|
|
|
||
Goodwill - Europe
|
2.5
|
|
|
2.7
|
|
||
Equity in net assets of affiliates
|
4.0
|
|
|
3.2
|
|
||
Customer supply agreement
(2)
|
22.2
|
|
|
29.3
|
|
||
Restricted Cash - collateral requirements
|
19.9
|
|
|
19.9
|
|
||
Deferred Tax Asset - non-current
|
140.0
|
|
|
162.8
|
|
||
Other
|
52.0
|
|
|
40.6
|
|
||
Total
|
$
|
250.1
|
|
|
$
|
267.8
|
|
|
(1)
|
In accordance with ASU 2015-03, includes a retrospective reclass for the period ended December 31, 2015 of
$13.0
net deferred financing costs to a direct deduction from the carrying amount of the related debt liability, See Note 12, "Debt" for further detail.
|
(2)
|
Under agreements with customers and a supplier, certain payments accounted for as consideration paid by the Company to a customer and supplier are being amortized as a reduction to net revenues.
|
|
June 30,
2016 |
|
December 31,
2015
|
||||
B787
|
$
|
901.6
|
|
|
$
|
909.3
|
|
Boeing - All other platforms
|
12.6
|
|
|
13.8
|
|
||
A350 XWB
|
155.6
|
|
|
183.5
|
|
||
Airbus — All other platforms
|
3.6
|
|
|
4.0
|
|
||
Other
|
23.5
|
|
|
30.6
|
|
||
Total advance payments and deferred revenue/credits
|
$
|
1,096.9
|
|
|
$
|
1,141.2
|
|
Balance, December 31, 2015
|
$
|
94.2
|
|
Grant liability amortized
|
(5.4
|
)
|
|
Exchange rate
|
(2.6
|
)
|
|
Total asset value related to deferred grant income, June 30, 2016
|
$
|
86.2
|
|
Balance, December 31, 2015
|
$
|
106.6
|
|
Amortization
|
(2.5
|
)
|
|
Exchange rate
|
(2.7
|
)
|
|
Total asset value related to deferred grant income, June 30, 2016
|
$
|
101.4
|
|
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.
|
|
Fair Value Measurements
|
||||||||||||||||||||||
|
June 30, 2016
|
|
At June 30, 2016 using
|
||||||||||||||||||||
Description
|
Total Carrying
Amount in
Balance Sheet
|
|
Assets
Measured at
Fair Value
|
|
Liabilities
Measured at Fair
Value
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Money Market Fund
|
$
|
3.3
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Fair Value Measurements
|
||||||||||||||||||||||
|
December 31, 2015
|
|
At December 31, 2015 using
|
||||||||||||||||||||
Description
|
Total Carrying
Amount in
Balance Sheet
|
|
Assets
Measured at
Fair Value
|
|
Liabilities
Measured at Fair
Value
|
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Money Market Fund
|
$
|
90.2
|
|
|
$
|
90.2
|
|
|
$
|
—
|
|
|
$
|
90.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
June 30, 2016
|
|
December 31, 2015
|
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
|
||||||||
Senior unsecured term loan A (including current portion)
|
$
|
497.4
|
|
|
$
|
488.7
|
|
(2)
|
$
|
505.8
|
|
|
$
|
501.6
|
|
(2)
|
Senior unsecured notes due 2020
|
86.4
|
|
|
86.4
|
|
(1)
|
296.3
|
|
|
310.5
|
|
(1)
|
||||
Senior unsecured notes due 2022
|
293.3
|
|
|
308.3
|
|
(1)
|
292.7
|
|
|
304.8
|
|
(1)
|
||||
Senior unsecured notes due 2026
|
297.3
|
|
|
307.8
|
|
(1)
|
—
|
|
|
—
|
|
(1)
|
||||
Malaysian loan
|
2.3
|
|
|
2.0
|
|
(2)
|
3.2
|
|
|
2.8
|
|
(2)
|
||||
Total
|
$
|
1,176.7
|
|
|
$
|
1,193.2
|
|
|
$
|
1,098.0
|
|
|
$
|
1,119.7
|
|
|
|
(1)
|
Level 1 Fair Value hierarchy
|
(2)
|
Level 2 Fair Value hierarchy
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||
|
Current
|
Noncurrent
|
|
Current
(1)
|
Noncurrent
(1)
|
||||||||
Senior unsecured term loan A
|
$
|
24.4
|
|
$
|
473.0
|
|
|
$
|
26.1
|
|
$
|
479.7
|
|
Senior notes due 2020
|
86.4
|
|
—
|
|
|
—
|
|
296.3
|
|
||||
Senior notes due 2022
|
—
|
|
293.3
|
|
|
—
|
|
292.7
|
|
||||
Senior notes due 2026
|
—
|
|
297.3
|
|
|
—
|
|
—
|
|
||||
Malaysian term loan
|
2.3
|
|
—
|
|
|
2.1
|
|
1.1
|
|
||||
Present value of capital lease obligations
|
0.6
|
|
8.0
|
|
|
0.6
|
|
8.5
|
|
||||
Other
|
13.1
|
|
—
|
|
|
6.1
|
|
7.0
|
|
||||
Total
|
$
|
126.8
|
|
$
|
1,071.6
|
|
|
$
|
34.9
|
|
$
|
1,085.3
|
|
(1)
|
In connection with our adoption of the ASU No. 2015-03 relating to the presentation of debt issuance costs, debt balances at December 31, 2015 include unamortized debt issuance costs of
$13.0
. These unamortized debt issuance costs were previously included in other long-term assets in our Condensed Consolidated Balance Sheet at December 31, 2015.
|
|
|
Defined Benefit Plans
|
||||||||||||||
|
|
For the Three
Months Ended
|
|
For the Six
Months Ended
|
||||||||||||
Components of Net Periodic Pension Expense/(Income)
|
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
Service cost
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
|
$
|
0.6
|
|
|
$
|
0.5
|
|
Interest cost
|
|
11.4
|
|
|
11.8
|
|
|
23.1
|
|
|
23.8
|
|
||||
Expected return on plan assets
|
|
(19.8
|
)
|
|
(20.8
|
)
|
|
(39.3
|
)
|
|
(41.5
|
)
|
||||
Amortization of net loss
|
|
1.7
|
|
|
0.9
|
|
|
2.4
|
|
|
1.9
|
|
||||
Special termination benefits
(1)
|
|
—
|
|
|
—
|
|
|
10.9
|
|
|
—
|
|
||||
Net periodic pension income
|
|
$
|
(6.4
|
)
|
|
$
|
(7.9
|
)
|
|
$
|
(2.3
|
)
|
|
$
|
(15.3
|
)
|
|
(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 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
Service cost
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
0.9
|
|
|
$
|
1.1
|
|
Interest cost
|
|
0.5
|
|
|
0.5
|
|
|
1.1
|
|
|
1.1
|
|
||||
Amortization of prior service cost
|
|
(0.5
|
)
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
||||
Special termination benefits
(1)
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
||||
Net periodic other benefit expense
|
|
$
|
0.4
|
|
|
$
|
0.9
|
|
|
$
|
4.6
|
|
|
$
|
2.2
|
|
|
(1)
|
Special termination benefits related to early retirement incentives offered as part of a voluntary retirement plan in the first quarter of 2016.
|
•
|
75%
of the LTIA is service-based restricted stock that will vest in equal installments over a
three
-year period.
|
•
|
25%
of the LTIA is market-based restricted stock that will vest on the third year anniversary of the grant date contingent upon total shareholder return ("TSR") compared to the Company’s peers.
|
|
For the Three Months Ended
|
||||||||||||||||||||
|
June 30, 2016
|
|
July 2, 2015
|
||||||||||||||||||
|
Income
|
|
Shares
|
|
Per Share
Amount
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
||||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income available to common shareholders
|
$
|
44.8
|
|
|
128.6
|
|
|
$
|
0.35
|
|
|
$
|
154.8
|
|
|
139.2
|
|
|
$
|
1.11
|
|
Income allocated to participating securities
|
—
|
|
|
0.1
|
|
|
|
|
|
0.1
|
|
|
0.1
|
|
|
|
|
||||
Net income
|
$
|
44.8
|
|
|
|
|
|
|
|
|
$
|
154.9
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted potential common shares
|
|
|
|
0.6
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
||||
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
44.8
|
|
|
129.3
|
|
|
$
|
0.35
|
|
|
$
|
154.9
|
|
|
140.1
|
|
|
$
|
1.11
|
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2016
|
|
July 2, 2015
|
||||||||||||||||||
|
Income
|
|
Shares
|
|
Per Share
Amount
|
|
Income
|
|
Shares
|
|
Per Share
Amount
|
||||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income available to common shareholders
|
$
|
216.2
|
|
|
130.1
|
|
|
$
|
1.66
|
|
|
$
|
336.5
|
|
|
139.0
|
|
|
$
|
2.42
|
|
Income allocated to participating securities
|
0.2
|
|
|
0.1
|
|
|
|
|
|
0.3
|
|
|
0.2
|
|
|
|
|
||||
Net income
|
$
|
216.4
|
|
|
|
|
|
|
|
|
$
|
336.8
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted potential common shares
|
|
|
|
0.7
|
|
|
|
|
|
|
|
|
0.8
|
|
|
|
|
||||
Diluted EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
216.4
|
|
|
130.9
|
|
|
$
|
1.65
|
|
|
$
|
336.8
|
|
|
140.0
|
|
|
$
|
2.41
|
|
|
As of
|
|
As of
|
||||
|
June 30, 2016
|
|
December 31, 2015
|
||||
Pension
|
$
|
(120.3
|
)
|
|
$
|
(121.5
|
)
|
Interest rate swaps
|
—
|
|
|
(0.4
|
)
|
||
SERP/Retiree medical
|
6.0
|
|
|
6.1
|
|
||
Foreign currency impact on long term intercompany loan
|
(13.6
|
)
|
|
(9.2
|
)
|
||
Currency translation adjustment
|
(67.0
|
)
|
|
(35.5
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(194.9
|
)
|
|
$
|
(160.5
|
)
|
Balance, December 31, 2015
|
$
|
158.7
|
|
Charges to costs and expenses
|
3.6
|
|
|
Payouts
|
(4.8
|
)
|
|
Exchange rate
|
(0.4
|
)
|
|
Balance, June 30, 2016
|
$
|
157.1
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
KDFA bond
|
$
|
0.8
|
|
|
$
|
0.9
|
|
|
$
|
1.9
|
|
|
$
|
2.1
|
|
Rental and miscellaneous income (expense)
(1)
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(1.9
|
)
|
||||
Interest income
|
0.9
|
|
|
0.5
|
|
|
1.7
|
|
|
0.7
|
|
||||
Foreign currency (losses) gains
|
(7.9
|
)
|
|
6.7
|
|
|
(12.1
|
)
|
|
0.8
|
|
||||
Total
|
$
|
(6.2
|
)
|
|
$
|
8.1
|
|
|
$
|
(8.4
|
)
|
|
$
|
1.7
|
|
|
(1)
|
Includes
$2.0
of losses related to the settlement of interest rate swap agreements for the six months ended July 2, 2015, as further detailed in Note 11, Derivative and Hedging Activities.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
Segment Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuselage Systems
|
$
|
915.4
|
|
|
$
|
887.6
|
|
|
$
|
1,789.2
|
|
|
$
|
1,804.4
|
|
Propulsion Systems
|
481.7
|
|
|
440.5
|
|
|
920.3
|
|
|
886.5
|
|
||||
Wing Systems
|
424.2
|
|
|
367.5
|
|
|
784.7
|
|
|
744.2
|
|
||||
All Other
|
8.6
|
|
|
3.1
|
|
|
17.3
|
|
|
5.8
|
|
||||
|
$
|
1,829.9
|
|
|
$
|
1,698.7
|
|
|
$
|
3,511.5
|
|
|
$
|
3,440.9
|
|
Segment Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fuselage Systems
|
$
|
19.3
|
|
|
$
|
168.0
|
|
|
$
|
196.6
|
|
|
$
|
332.5
|
|
Propulsion Systems
|
74.3
|
|
|
88.2
|
|
|
173.4
|
|
|
183.9
|
|
||||
Wing Systems
|
64.8
|
|
|
50.1
|
|
|
123.6
|
|
|
95.3
|
|
||||
All Other
|
1.3
|
|
|
1.4
|
|
|
3.2
|
|
|
1.1
|
|
||||
|
159.7
|
|
|
307.7
|
|
|
496.8
|
|
|
612.8
|
|
||||
Corporate SG&A
|
(70.2
|
)
|
|
(53.8
|
)
|
|
(120.2
|
)
|
|
(105.4
|
)
|
||||
Research and development
|
(4.4
|
)
|
|
(6.7
|
)
|
|
(10.5
|
)
|
|
(13.7
|
)
|
||||
Unallocated cost of sales
(1)
|
(1.8
|
)
|
|
(16.9
|
)
|
|
(16.3
|
)
|
|
(28.1
|
)
|
||||
Total operating income
|
$
|
83.3
|
|
|
$
|
230.3
|
|
|
$
|
349.8
|
|
|
$
|
465.6
|
|
|
(1)
|
Includes
$2.0
and
$12.0
of warranty reserve for the three months ended
June 30, 2016
and
July 2, 2015
, respectively and
$4.3
and
$22.4
for the six months ended
June 30, 2016
and
July 2, 2015
. Also includes
$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 2020 Notes, the 2022 Notes and the 2026 Notes;
|
(iii)
|
The Company’s subsidiaries, (the “Subsidiary Non-Guarantors”), on a combined basis;
|
(iv)
|
Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among Holdings and the Subsidiary Non-Guarantors, (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
|
$
|
—
|
|
|
$
|
1,651.9
|
|
|
$
|
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
|
$
|
—
|
|
|
$
|
1,564.5
|
|
|
$
|
254.4
|
|
|
$
|
(120.2
|
)
|
|
$
|
1,698.7
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales
|
—
|
|
|
1,302.1
|
|
|
226.0
|
|
|
(120.2
|
)
|
|
1,407.9
|
|
|||||
Selling, general and administrative
|
1.9
|
|
|
48.2
|
|
|
3.7
|
|
|
—
|
|
|
53.8
|
|
|||||
Research and development
|
—
|
|
|
6.7
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
|||||
Total operating costs and expenses
|
1.9
|
|
|
1,357.0
|
|
|
229.7
|
|
|
(120.2
|
)
|
|
1,468.4
|
|
|||||
Operating (loss) income
|
(1.9
|
)
|
|
207.5
|
|
|
24.7
|
|
|
—
|
|
|
230.3
|
|
|||||
Interest expense and financing fee amortization
|
—
|
|
|
(11.9
|
)
|
|
(2.0
|
)
|
|
1.8
|
|
|
(12.1
|
)
|
|||||
Other income (expense), net
|
—
|
|
|
3.2
|
|
|
6.7
|
|
|
(1.8
|
)
|
|
8.1
|
|
|||||
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(1.9
|
)
|
|
198.8
|
|
|
29.4
|
|
|
—
|
|
|
226.3
|
|
|||||
Income tax benefit (provision)
|
0.8
|
|
|
(69.5
|
)
|
|
(3.0
|
)
|
|
—
|
|
|
(71.7
|
)
|
|||||
(Loss) income before equity in net income of affiliate and subsidiaries
|
(1.1
|
)
|
|
129.3
|
|
|
26.4
|
|
|
—
|
|
|
154.6
|
|
|||||
Equity in net income of affiliate
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
0.3
|
|
|||||
Equity in net income of subsidiaries
|
155.7
|
|
|
26.5
|
|
|
—
|
|
|
(182.2
|
)
|
|
—
|
|
|||||
Net income
|
154.9
|
|
|
155.8
|
|
|
26.7
|
|
|
(182.5
|
)
|
|
154.9
|
|
|||||
Other comprehensive income (loss)
|
14.4
|
|
|
(1.9
|
)
|
|
16.3
|
|
|
(14.4
|
)
|
|
14.4
|
|
|||||
Comprehensive income (loss)
|
$
|
169.3
|
|
|
$
|
153.9
|
|
|
$
|
43.0
|
|
|
$
|
(196.9
|
)
|
|
$
|
169.3
|
|
|
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
|
||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
3,183.5
|
|
|
$
|
498.7
|
|
|
$
|
(241.3
|
)
|
|
$
|
3,440.9
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales
|
—
|
|
|
2,654.1
|
|
|
443.4
|
|
|
(241.3
|
)
|
|
2,856.2
|
|
|||||
Selling, general and administrative
|
4.5
|
|
|
93.4
|
|
|
7.5
|
|
|
—
|
|
|
105.4
|
|
|||||
Research and development
|
—
|
|
|
13.0
|
|
|
0.7
|
|
|
—
|
|
|
13.7
|
|
|||||
Total operating costs and expenses
|
4.5
|
|
|
2,760.5
|
|
|
451.6
|
|
|
(241.3
|
)
|
|
2,975.3
|
|
|||||
Operating (loss) income
|
(4.5
|
)
|
|
423.0
|
|
|
47.1
|
|
|
—
|
|
|
465.6
|
|
|||||
Interest expense and financing fee amortization
|
—
|
|
|
(29.7
|
)
|
|
(4.0
|
)
|
|
3.7
|
|
|
(30.0
|
)
|
|||||
Other income (expense), net
|
—
|
|
|
4.6
|
|
|
0.8
|
|
|
(3.7
|
)
|
|
1.7
|
|
|||||
(Loss) income before income taxes and equity in net income of affiliate and subsidiaries
|
(4.5
|
)
|
|
397.9
|
|
|
43.9
|
|
|
—
|
|
|
437.3
|
|
|||||
Income tax benefit (provision)
|
1.1
|
|
|
(96.6
|
)
|
|
(5.6
|
)
|
|
—
|
|
|
(101.1
|
)
|
|||||
(Loss) income before equity in net income of affiliate and subsidiaries
|
(3.4
|
)
|
|
301.3
|
|
|
38.3
|
|
|
—
|
|
|
336.2
|
|
|||||
Equity in net income of affiliate
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
(0.6
|
)
|
|
0.6
|
|
|||||
Equity in net income of subsidiaries
|
339.6
|
|
|
38.4
|
|
|
—
|
|
|
(378.0
|
)
|
|
—
|
|
|||||
Net income
|
336.8
|
|
|
339.7
|
|
|
38.9
|
|
|
(378.6
|
)
|
|
336.8
|
|
|||||
Other comprehensive (loss) income
|
0.4
|
|
|
(0.8
|
)
|
|
1.2
|
|
|
(0.4
|
)
|
|
0.4
|
|
|||||
Comprehensive income (loss)
|
$
|
337.2
|
|
|
$
|
338.9
|
|
|
$
|
40.1
|
|
|
$
|
(379.0
|
)
|
|
$
|
337.2
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
757.7
|
|
|
$
|
42.8
|
|
|
|
|
|
$
|
800.5
|
|
|
Restricted cash
|
—
|
|
|
86.4
|
|
|
—
|
|
|
—
|
|
|
86.4
|
|
|||||
Accounts receivable, net
|
—
|
|
|
878.9
|
|
|
236.1
|
|
|
(358.7
|
)
|
|
756.3
|
|
|||||
Inventory, net
|
—
|
|
|
1,064.5
|
|
|
482.1
|
|
|
—
|
|
|
1,546.6
|
|
|||||
Other current assets
|
—
|
|
|
50.9
|
|
|
6.0
|
|
|
—
|
|
|
56.9
|
|
|||||
Total current assets
|
—
|
|
|
2,838.4
|
|
|
767.0
|
|
|
(358.7
|
)
|
|
3,246.7
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
1,395.2
|
|
|
541.6
|
|
|
—
|
|
|
1,936.8
|
|
|||||
Pension assets, net
|
—
|
|
|
237.0
|
|
|
12.1
|
|
|
—
|
|
|
249.1
|
|
|||||
Investment in subsidiary
|
320.6
|
|
|
283.7
|
|
|
—
|
|
|
(604.3
|
)
|
|
—
|
|
|||||
Equity in net assets of subsidiaries
|
1,678.4
|
|
|
252.4
|
|
|
—
|
|
|
(1,930.8
|
)
|
|
—
|
|
|||||
Other assets
|
—
|
|
|
439.8
|
|
|
100.7
|
|
|
(290.4
|
)
|
|
250.1
|
|
|||||
Total assets
|
$
|
1,999.0
|
|
|
$
|
5,446.5
|
|
|
$
|
1,421.4
|
|
|
$
|
(3,184.2
|
)
|
|
$
|
5,682.7
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable
|
$
|
—
|
|
|
$
|
584.4
|
|
|
$
|
428.2
|
|
|
$
|
(358.7
|
)
|
|
$
|
653.9
|
|
Accrued expenses
|
—
|
|
|
196.7
|
|
|
39.0
|
|
|
—
|
|
|
235.7
|
|
|||||
Profit sharing
|
—
|
|
|
43.9
|
|
|
1.4
|
|
|
—
|
|
|
45.3
|
|
|||||
Current portion of long-term debt
|
—
|
|
|
123.9
|
|
|
2.9
|
|
|
—
|
|
|
126.8
|
|
|||||
Advance payments, short-term
|
—
|
|
|
189.7
|
|
|
—
|
|
|
—
|
|
|
189.7
|
|
|||||
Deferred revenue, short-term
|
—
|
|
|
302.0
|
|
|
2.3
|
|
|
—
|
|
|
304.3
|
|
|||||
Deferred grant income liability - current
|
—
|
|
|
—
|
|
|
13.2
|
|
|
—
|
|
|
13.2
|
|
|||||
Other current liabilities
|
—
|
|
|
36.2
|
|
|
2.2
|
|
|
—
|
|
|
38.4
|
|
|||||
Total current liabilities
|
—
|
|
|
1,476.8
|
|
|
489.2
|
|
|
(358.7
|
)
|
|
1,607.3
|
|
|||||
Long-term debt
|
—
|
|
|
1,063.4
|
|
|
218.7
|
|
|
(210.5
|
)
|
|
1,071.6
|
|
|||||
Advance payments, long-term
|
—
|
|
|
425.6
|
|
|
—
|
|
|
—
|
|
|
425.6
|
|
|||||
Pension/OPEB obligation
|
—
|
|
|
70.7
|
|
|
—
|
|
|
—
|
|
|
70.7
|
|
|||||
Deferred grant income liability - non-current
|
—
|
|
|
—
|
|
|
73.0
|
|
|
—
|
|
|
73.0
|
|
|||||
Deferred revenue and other deferred credits
|
—
|
|
|
173.4
|
|
|
3.9
|
|
|
—
|
|
|
177.3
|
|
|||||
Other liabilities
|
—
|
|
|
317.5
|
|
|
20.7
|
|
|
(80.0
|
)
|
|
258.2
|
|
|||||
Total equity
|
1,999.0
|
|
|
1,919.1
|
|
|
615.9
|
|
|
(2,535.0
|
)
|
|
1,999.0
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
1,999.0
|
|
|
$
|
5,446.5
|
|
|
$
|
1,421.4
|
|
|
$
|
(3,184.2
|
)
|
|
$
|
5,682.7
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
894.2
|
|
|
$
|
63.1
|
|
|
$
|
—
|
|
|
$
|
957.3
|
|
Accounts receivable, net
|
—
|
|
|
686.3
|
|
|
216.5
|
|
|
(365.8
|
)
|
|
537.0
|
|
|||||
Inventory, net
|
—
|
|
|
1,229.0
|
|
|
545.3
|
|
|
0.1
|
|
|
1,774.4
|
|
|||||
Other current assets
|
—
|
|
|
24.4
|
|
|
6.0
|
|
|
—
|
|
|
30.4
|
|
|||||
Total current assets
|
—
|
|
|
2,833.9
|
|
|
830.9
|
|
|
(365.7
|
)
|
|
3,299.1
|
|
|||||
Property, plant and equipment, net
|
—
|
|
|
1,393.1
|
|
|
557.6
|
|
|
—
|
|
|
1,950.7
|
|
|||||
Pension assets, net
|
—
|
|
|
233.3
|
|
|
13.6
|
|
|
—
|
|
|
246.9
|
|
|||||
Investment in subsidiary
|
623.6
|
|
|
283.7
|
|
|
0.1
|
|
|
(907.4
|
)
|
|
—
|
|
|||||
Equity in net assets of subsidiaries
|
1,496.4
|
|
|
254.1
|
|
|
—
|
|
|
(1,750.5
|
)
|
|
—
|
|
|||||
Other assets
|
—
|
|
|
504.7
|
|
|
104.0
|
|
|
(340.9
|
)
|
|
267.8
|
|
|||||
Total assets
|
$
|
2,120.0
|
|
|
$
|
5,502.8
|
|
|
$
|
1,506.2
|
|
|
$
|
(3,364.5
|
)
|
|
$
|
5,764.5
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable
|
$
|
—
|
|
|
$
|
538.2
|
|
|
$
|
445.8
|
|
|
$
|
(365.8
|
)
|
|
$
|
618.2
|
|
Accrued expenses
|
—
|
|
|
195.0
|
|
|
35.2
|
|
|
—
|
|
|
230.2
|
|
|||||
Profit sharing
|
—
|
|
|
58.3
|
|
|
3.3
|
|
|
—
|
|
|
61.6
|
|
|||||
Current portion of long-term debt
|
—
|
|
|
32.2
|
|
|
2.7
|
|
|
—
|
|
|
34.9
|
|
|||||
Advance payments, short-term
|
—
|
|
|
178.3
|
|
|
—
|
|
|
—
|
|
|
178.3
|
|
|||||
Deferred revenue, short-term
|
—
|
|
|
281.7
|
|
|
3.8
|
|
|
—
|
|
|
285.5
|
|
|||||
Deferred grant income liability - current
|
—
|
|
|
—
|
|
|
11.9
|
|
|
—
|
|
|
11.9
|
|
|||||
Other current liabilities
|
—
|
|
|
34.7
|
|
|
3.0
|
|
|
—
|
|
|
37.7
|
|
|||||
Total current liabilities
|
—
|
|
|
1,318.4
|
|
|
505.7
|
|
|
(365.8
|
)
|
|
1,458.3
|
|
|||||
Long-term debt
|
—
|
|
|
1,075.7
|
|
|
270.6
|
|
|
(261.0
|
)
|
|
1,085.3
|
|
|||||
Advance payments, long-term
|
—
|
|
|
507.4
|
|
|
—
|
|
|
—
|
|
|
507.4
|
|
|||||
Pension/OPEB obligation
|
—
|
|
|
67.7
|
|
|
—
|
|
|
—
|
|
|
67.7
|
|
|||||
Deferred grant income liability - non-current
|
—
|
|
|
—
|
|
|
82.3
|
|
|
—
|
|
|
82.3
|
|
|||||
Deferred revenue and other deferred credits
|
—
|
|
|
165.6
|
|
|
4.4
|
|
|
—
|
|
|
170.0
|
|
|||||
Other liabilities
|
—
|
|
|
328.2
|
|
|
25.3
|
|
|
(80.0
|
)
|
|
273.5
|
|
|||||
Total equity
|
2,120.0
|
|
|
2,039.8
|
|
|
617.9
|
|
|
(2,657.7
|
)
|
|
2,120.0
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
2,120.0
|
|
|
$
|
5,502.8
|
|
|
$
|
1,506.2
|
|
|
$
|
(3,364.5
|
)
|
|
$
|
5,764.5
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net cash provided by (used in) 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
|
)
|
|||||
Payment on bonds
|
—
|
|
|
(213.6
|
)
|
|
—
|
|
|
—
|
|
|
(213.6
|
)
|
|||||
Collection on (repayment of) intercompany debt
|
—
|
|
|
50.5
|
|
|
(50.5
|
)
|
|
—
|
|
|
—
|
|
|||||
Taxes paid related to net share settlement of awards
|
—
|
|
|
(14.3
|
)
|
|
—
|
|
|
—
|
|
|
(14.3
|
)
|
|||||
Debt issuance and financing costs
|
—
|
|
|
(13.7
|
)
|
|
—
|
|
|
—
|
|
|
(13.7
|
)
|
|||||
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
|
|
|
Holdings
|
|
Spirit
|
|
Non-Guarantor
Subsidiaries
|
|
Consolidating
Adjustments
|
|
Total
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net cash provided by operating activities
|
$
|
—
|
|
|
$
|
682.0
|
|
|
$
|
47.0
|
|
|
$
|
—
|
|
|
$
|
729.0
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Purchase of property, plant and equipment
|
—
|
|
|
(90.2
|
)
|
|
(25.2
|
)
|
|
—
|
|
|
(115.4
|
)
|
|||||
Net cash used in investing activities
|
—
|
|
|
(90.2
|
)
|
|
(25.2
|
)
|
|
—
|
|
|
(115.4
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Proceeds from issuance of debt
|
—
|
|
|
535.0
|
|
|
—
|
|
|
—
|
|
|
535.0
|
|
|||||
Principal payments of debt
|
—
|
|
|
(15.7
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(17.4
|
)
|
|||||
Payments on term loan
|
—
|
|
|
(534.9
|
)
|
|
—
|
|
|
—
|
|
|
(534.9
|
)
|
|||||
Increase (decrease) in intercompany debt
|
—
|
|
|
13.0
|
|
|
(13.0
|
)
|
|
—
|
|
|
—
|
|
|||||
Excess tax benefits from share-based payment arrangements
|
—
|
|
|
10.0
|
|
|
0.1
|
|
|
—
|
|
|
10.1
|
|
|||||
Collection on (repayment of) intercompany debt
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
|
—
|
|
|
(20.2
|
)
|
|||||
Debt issuance and financing costs
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|||||
Net cash (used in) provided by financing activities
|
—
|
|
|
(17.5
|
)
|
|
(14.6
|
)
|
|
—
|
|
|
(32.1
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.7
|
)
|
|||||
Net increase in cash and cash equivalents for the period
|
—
|
|
|
574.3
|
|
|
6.5
|
|
|
—
|
|
|
580.8
|
|
|||||
Cash and cash equivalents, beginning of period
|
—
|
|
|
354.6
|
|
|
23.3
|
|
|
—
|
|
|
377.9
|
|
|||||
Cash and cash equivalents, end of period
|
$
|
—
|
|
|
$
|
928.9
|
|
|
$
|
29.8
|
|
|
$
|
—
|
|
|
$
|
958.7
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
June 30,
2016 |
|
July 2,
2015 |
|
Percentage
Change
to Prior Year
|
|
June 30,
2016 |
|
July 2,
2015 |
|
Percentage
Change
to Prior Year
|
||||||||||
|
($ in millions)
|
|
|
|
($ in millions)
|
|
|
||||||||||||||
Net revenues
|
$
|
1,829.9
|
|
|
$
|
1,698.7
|
|
|
8
|
%
|
|
$
|
3,511.5
|
|
|
$
|
3,440.9
|
|
|
2
|
%
|
Cost of sales
|
1,672.0
|
|
|
1,407.9
|
|
|
19
|
%
|
|
3,031.0
|
|
|
2,856.2
|
|
|
6
|
%
|
||||
Gross profit
|
157.9
|
|
|
290.8
|
|
|
|
|
480.5
|
|
|
584.7
|
|
|
|
||||||
Selling, general and administrative
|
70.2
|
|
|
53.8
|
|
|
30
|
%
|
|
120.2
|
|
|
105.4
|
|
|
14
|
%
|
||||
Research and development
|
4.4
|
|
|
6.7
|
|
|
(34
|
)%
|
|
10.5
|
|
|
13.7
|
|
|
(23
|
)%
|
||||
Operating income
|
83.3
|
|
|
230.3
|
|
|
|
|
|
349.8
|
|
|
465.6
|
|
|
|
|||||
Interest expense and financing fee amortization
|
(23.9
|
)
|
|
(12.1
|
)
|
|
98
|
%
|
|
(35.3
|
)
|
|
(30.0
|
)
|
|
18
|
%
|
||||
Other (expense) income, net
|
(6.2
|
)
|
|
8.1
|
|
|
(177
|
)%
|
|
(8.4
|
)
|
|
1.7
|
|
|
(594
|
)%
|
||||
Income before income taxes and equity in net income of affiliate
|
53.2
|
|
|
226.3
|
|
|
|
|
|
306.1
|
|
|
437.3
|
|
|
|
|||||
Income tax provision
|
(8.6
|
)
|
|
(71.7
|
)
|
|
(88
|
)%
|
|
(90.5
|
)
|
|
(101.1
|
)
|
|
(10
|
)%
|
||||
Income before equity in net income of affiliate
|
44.6
|
|
|
154.6
|
|
|
|
|
|
215.6
|
|
|
336.2
|
|
|
|
|||||
Equity in net income of affiliate
|
0.2
|
|
|
0.3
|
|
|
(33
|
)%
|
|
0.8
|
|
|
0.6
|
|
|
33
|
%
|
||||
Net income
|
$
|
44.8
|
|
|
$
|
154.9
|
|
|
|
|
|
$
|
216.4
|
|
|
$
|
336.8
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
Model
|
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
B737
|
|
128
|
|
128
|
|
258
|
|
262
|
B747
|
|
2
|
|
4
|
|
5
|
|
8
|
B767
|
|
7
|
|
5
|
|
13
|
|
10
|
B777
|
|
25
|
|
25
|
|
51
|
|
51
|
B787
|
|
36
|
|
34
|
|
69
|
|
66
|
Total Boeing
|
|
198
|
|
196
|
|
396
|
|
397
|
A320 Family
|
|
145
|
|
120
|
|
292
|
|
255
|
A330/340
(1)
|
|
17
|
|
19
|
|
33
|
|
46
|
A350 XWB
|
|
20
|
|
9
|
|
34
|
|
15
|
A380
|
|
6
|
|
6
|
|
13
|
|
12
|
Total Airbus
|
|
188
|
|
154
|
|
372
|
|
328
|
Business/Regional Jets
|
|
22
|
|
16
|
|
37
|
|
33
|
Total
|
|
408
|
|
366
|
|
805
|
|
758
|
|
(1)
|
Airbus publicly announced reduction in A330 production rate.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Prime Customer
|
|
June 30,
2016 |
|
July 2,
2015 |
|
June 30,
2016 |
|
July 2,
2015 |
||||||||
|
|
($ in millions)
|
|
($ in millions)
|
||||||||||||
Boeing
|
|
$
|
1,459.7
|
|
|
$
|
1,426.6
|
|
|
$
|
2,847.0
|
|
|
$
|
2,921.7
|
|
Airbus
|
|
272.7
|
|
|
188.5
|
|
|
503.8
|
|
|
350.7
|
|
||||
Other
|
|
97.5
|
|
|
83.6
|
|
|
160.7
|
|
|
168.5
|
|
||||
Total net revenues
|
|
$
|
1,829.9
|
|
|
$
|
1,698.7
|
|
|
$
|
3,511.5
|
|
|
$
|
3,440.9
|
|
|
Three Months Ended
|
||||||
|
June 30,
2016 |
|
July 2,
2015 |
||||
|
($ in millions)
|
||||||
Segment Revenues
|
|
|
|
|
|
||
Fuselage Systems
|
$
|
915.4
|
|
|
$
|
887.6
|
|
Propulsion Systems
|
481.7
|
|
|
440.5
|
|
||
Wing Systems
|
424.2
|
|
|
367.5
|
|
||
All Other
|
8.6
|
|
|
3.1
|
|
||
|
$
|
1,829.9
|
|
|
$
|
1,698.7
|
|
Segment Operating Income
|
|
|
|
|
|
||
Fuselage Systems
|
$
|
19.3
|
|
|
$
|
168.0
|
|
Propulsion Systems
|
74.3
|
|
|
88.2
|
|
||
Wing Systems
|
64.8
|
|
|
50.1
|
|
||
All Other
|
1.3
|
|
|
1.4
|
|
||
|
159.7
|
|
|
307.7
|
|
||
Corporate SG&A
|
(70.2
|
)
|
|
(53.8
|
)
|
||
Research and development
|
(4.4
|
)
|
|
(6.7
|
)
|
||
Unallocated cost of sales
(1)
|
(1.8
|
)
|
|
(16.9
|
)
|
||
Total operating income
|
$
|
83.3
|
|
|
$
|
230.3
|
|
|
(1)
|
Includes
$2.0
million and
$12.0
million of warranty reserve for the three months ended June 30, 2016 and July 2, 2015, respectively.
|
|
Six Months Ended
|
||||||
|
June 30,
2016 |
|
July 2,
2015 |
||||
|
($ in millions)
|
||||||
Segment Revenues
|
|
|
|
|
|
||
Fuselage Systems
|
$
|
1,789.2
|
|
|
$
|
1,804.4
|
|
Propulsion Systems
|
920.3
|
|
|
886.5
|
|
||
Wing Systems
|
784.7
|
|
|
744.2
|
|
||
All Other
|
17.3
|
|
|
5.8
|
|
||
|
$
|
3,511.5
|
|
|
$
|
3,440.9
|
|
Segment Operating Income
|
|
|
|
|
|
||
Fuselage Systems
|
$
|
196.6
|
|
|
$
|
332.5
|
|
Propulsion Systems
|
173.4
|
|
|
183.9
|
|
||
Wing Systems
|
123.6
|
|
|
95.3
|
|
||
All Other
|
3.2
|
|
|
1.1
|
|
||
|
496.8
|
|
|
612.8
|
|
||
Corporate SG&A
|
(120.2
|
)
|
|
(105.4
|
)
|
||
Research and development
|
(10.5
|
)
|
|
(13.7
|
)
|
||
Unallocated cost of sales
(1)
|
(16.3
|
)
|
|
(28.1
|
)
|
||
Total operating income
|
$
|
349.8
|
|
|
$
|
465.6
|
|
|
(1)
|
Includes
$4.3
million and
$22.4
million of warranty reserve for the six months ended June 30, 2016 and July 2, 2015, respectively. Also includes
$11.8
million related to early retirement incentives for the six months ended June 30, 2016.
|
|
For the six months ended
|
||||||
|
June 30, 2016
|
|
July 2, 2015
|
||||
|
($ in millions)
|
||||||
Net cash provided by operating activities
|
308.8
|
|
|
729.0
|
|
||
Net cash used in investing activities
|
(104.7
|
)
|
|
(115.4
|
)
|
||
Net cash used in financing activities
|
(355.6
|
)
|
|
(32.1
|
)
|
||
Effect of exchange rate change on cash and cash equivalents
|
(5.3
|
)
|
|
(0.7
|
)
|
||
Net (decrease) increase in cash and cash equivalents for the period
|
(156.8
|
)
|
|
580.8
|
|
||
Cash and cash equivalents, beginning of period
|
957.3
|
|
|
377.9
|
|
||
Cash and cash equivalents, end of period
|
$
|
800.5
|
|
|
$
|
958.7
|
|
•
|
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 and manage costs related to our new and maturing commercial, business aircraft and military development programs and the related recurring production;
|
•
|
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;
|
•
|
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 receipt of necessary regulatory approvals and customer adherence to their announced schedules;
|
•
|
our ability to successfully 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 original equipment manufacturers 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;
|
•
|
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 borrowing facilities may not be adequate for our additional capital needs or for payment of interest on and principal of our indebtedness;
|
•
|
our exposure under our existing senior secured revolving credit facility 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; and
|
•
|
our exposure to potential product liability and warranty claims.
|
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)
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
April 1, 2016 - May 5, 2016
|
50,549
|
|
|
|
$45.9731
|
|
|
50,549
|
|
|
|
$482.1
|
|
May 6, 2016 - June2, 2016
|
3,225,380
|
|
|
|
$46.5112
|
|
|
3,225,380
|
|
|
|
$332.0
|
|
June 3, 2016 - June 30, 2016
|
—
|
|
|
|
—
|
|
|
—
|
|
|
|
$332.0
|
|
Total
|
3,275,929
|
|
|
|
$46.5029
|
|
|
3,275,929
|
|
|
|
$332.0
|
|
(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 5, 2016 was the last day of our April 2016 fiscal month.
|
(2)
|
On January 27, 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 common stock. Repurchases may be made under the program intermittently through December 31, 2017.
|
Article I.
Exhibit
Number
|
|
Section 1.01 Exhibit
|
|
|
|
10.1
*†
|
|
Executive Compensation Letter between Spirit AeroSystems, Inc. and Samantha Marnick, dated June 1, 2016.
|
|
|
|
10.2
*
|
|
Amended and Restated Credit Agreement, dated as of June 6, 2014, among Spirit AeroSystems, Inc., Spirit AeroSystems Holdings, Inc., the other guarantors party thereto, Bank of America, N.A. and the other agents and lenders party thereto.
|
|
|
|
10.3
*†
|
|
Retirement and Consulting Agreement and General Release, dated as of June 7, 2016, by and among Spirit AeroSystems, Inc., Spirit AeroSystems Holdings, Inc. and Larry A. Lawson.
|
|
|
|
10.4*††
|
|
Amendment No. 21 to Special Business Provisions, between The Boeing Company and Spirit AeroSystems, Inc., dated as of May 9, 2016.
|
|
|
|
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.
|
|
|
|
*
|
|
Filed herewith
|
|
|
|
**
|
|
Furnished herewith
|
|
|
|
†
|
|
Indicates management contract or compensation plan or arrangement
|
|
|
|
††
|
|
Indicates that portions of the exhibit have been omitted and separately filed with Securities and Exchange Commission pursuant to a request for confidential treatment
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Sanjay Kapoor
|
|
Executive Vice President and Chief Financial
|
|
August 5, 2016
|
Sanjay Kapoor
|
|
Officer (Principal Financial Officer)
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Mark J. Suchinski
|
|
Vice President and Corporate Controller (Principal Accounting Officer)
|
|
August 5, 2016
|
Mark J. Suchinski
|
|
|
|
|
1 Year Spirit Aerosystems Chart |
1 Month Spirit Aerosystems Chart |
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