ALLIANT TECHSYSTEMS INC

CIK:0000866121|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Income Statement [Abstract]
Sales	$ 1,312	$ 1,085
Cost of sales	1,022	846
Gross profit	290	239
Operating expenses:
Research and development	34	22
Selling	28	28
General and administrative	74	68
Operating Income	154	121
Net interest expense	(17)	(17)
Non-service pension and other postretirement benefit expense	(15)	(10)
Income before income taxes and noncontrolling interest	122	94
Income taxes	21	28
Income before noncontrolling interest	101	66
Less net income attributable to noncontrolling interest	0	0
Net income attributable to Orbital ATK, Inc.	$ 101	$ 66
Basic earnings per common share from:
Net income attributable to Orbital ATK, Inc. (in dollars per share)	$ 1.76	$ 1.16
Weighted-average number of common shares outstanding (in shares)	57,530	57,330
Diluted earnings per common share from:
Net income attributable to Orbital ATK, Inc. (in dollars per share)	$ 1.74	$ 1.15
Weighted-average number of diluted common shares outstanding (in shares)	58,090	57,780
Cash dividends per common share (in dollars per share)	$ 0.32	$ 0.32

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2018	Apr. 02, 2017
Operating Activities
Net income	$ 101	$ 66
Adjustments to reconcile net income to cash used in operating activities:
Depreciation and amortization	36	42
Fixed asset impairment	3	0
Deferred income taxes	9	6
Stock-based plans expense	6	5
Other	4	(2)
Change in assets and liabilities:
Accounts receivable, net	(89)	(45)
Unbilled receivables, net	(203)	(129)
Net inventories	12	(26)
Accounts payable	(37)	21
Contract loss reserve	(4)	(14)
Contract advances	(65)	61
Accrued compensation	(38)	31
Pension and postemployment benefits	17	12
Other assets and liabilities	11	(63)
Cash flows used in operating activities	(237)	(35)
Investing Activities
Capital expenditures	(71)	(43)
Cash flows used in investing activities	(71)	(43)
Financing Activities
Borrowings on revolving credit facilities	155	180
Payments on revolving credit facilities	(95)	(105)
Payment of long-term debt	(10)	(10)
Purchase of treasury shares	(11)	(6)
Dividends paid	(18)	(18)
Proceeds from employee stock compensation plans	0	4
Cash flows provided by financing activities	21	45
Decrease in cash and cash equivalents	(287)	(33)
Cash and cash equivalents at beginning of period	346	200
Cash and cash equivalents at end of period	59	167
Noncash investing activity:
Capital expenditures included in accounts payable	$ 6	$ 1

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions	Apr. 01, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 59	$ 346
Accounts receivable, net	338	250
Unbilled receivables, net	1,364	1,643
Net inventories	248	221
Other current assets	173	82
Total current assets	2,182	2,542
Property, plant and equipment, net of accumulated depreciation of $1,247 at April 1, 2018 and $1,219 at December 31, 2017	967	934
Goodwill	1,832	1,832
Net intangibles	54	61
Deferred income taxes	222	155
Other noncurrent assets	128	142
Total assets	5,385	5,666
Current liabilities:
Current portion of long-term debt	40	40
Accounts payable	173	216
Contract loss reserve	145	152
Contract advances	271	330
Accrued compensation	100	137
Other current liabilities	573	585
Total current liabilities	1,302	1,460
Long-term debt	1,411	1,361
Pension and postemployment benefits	678	693
Other noncurrent liabilities	109	107
Total liabilities	3,500	3,621
Commitments and contingencies (Note 14)
Common stock—$.01 par value: authorized—180,000,000 shares; issued and outstanding—57,828,214 shares at April 1, 2018 and 57,686,214 shares at December 31, 2017	1	1
Additional paid-in-capital	2,163	2,175
Retained earnings	1,335	1,502
Accumulated other comprehensive loss	(768)	(780)
Common stock in treasury, at cost—11,106,810 shares held at April 1, 2018 and 11,248,810 shares held at December 31, 2017	(857)	(864)
Total Orbital ATK, Inc. stockholders' equity	1,874	2,034
Noncontrolling interest	11	11
Total equity	1,885	2,045
Total liabilities and equity	$ 5,385	$ 5,666