Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. AEROJET ROCKETDYNE HOLDINGS, INC. (40888) 10-K published on Feb 19, 2019 at 4:34 pm
Reporting Period: Dec 30, 2018
For over 70 years, we have demonstrated a legacy of successfully meeting the most challenging missions by producing some of the world’s most technologically advanced propulsion systems that are aligned with our nation's critical needs. We believe Aerojet Rocketdyne maintains a unique competitive position due to a strategic focus on creating and maintaining a broad spectrum of propulsion and energetic products assisted by the growing market demand for its innovative energy management technologies. The highly reliable nature of our revenue comes from the long-term nature of the programs with which we are involved, our attractive contract base and our deep customer relationships. High renewal rates, supported by our market leading technology provide us with a highly stable business base from which to grow. As of December 31, 2018, our remaining performance obligations, also referred to as backlog, totaled $4.1 billion and our funded backlog, which includes only amounts for which funding has been authorized by a customer and a purchase order has been received, totaled $1.9 billion.
We achieved several successful milestones in 2018 supporting NASA’s scientific programs. Every phase of NASA’s Mars InSight lander’s journey to the red planet was supported by our products. All eight successful landings on Mars have relied on our propulsion. We also provided all 28 rocket engines on OSIRIS-REx, the asteroid sample-return probe that recently arrived at Asteroid Bennu. In addition to powering the launch vehicle’s main and second stages, we are providing critical in-space propulsion. Our thrusters enabled braking maneuvers to support the arrival, and will maneuver the spacecraft during its year of close-proximity science operations, and enable its journey back to Earth’s orbit. Also, NASA’s Parker Solar Probe, launched with our RS-68A and RL-10 engines, is using our propulsion system to enable the probe’s 7-year journey to within 6.2 million kilometers of the Sun’s surface - eight times closer than the previous record.
We routinely experience cyber security threats, threats to our information technology infrastructure and unauthorized attempts to gain access to our sensitive information, as do our customers, suppliers, subcontractors, and other partners. We may experience similar security threats at customer sites that we operate and manage as a contractual requirement. The threats we face vary from attacks common to most industries to more advanced and persistent, highly organized adversaries who target us and other defense and aerospace companies because we protect national security information. If we are unable to protect sensitive information, our customers or governmental authorities could question the adequacy of our threat mitigation and detection processes and procedures. The costs related to cyber or other security threats or disruptions may not be fully insured or indemnified by other means. The occurrence of any of these events could adversely affect our internal operations, the services we provide to our customers, our future financial results, our reputation or our stock price, or such events could result in the loss of competitive advantages derived from our research and development efforts or other intellectual property, early obsolescence of our products and services, or contractual penalties.
We recorded an initial estimate of our current tax payable of $127.7 million during the first quarter ended March 31, 2018, based on our best estimate of the impact of the adoption of new revenue recognition guidance and the enactment of certain provisions of tax reform under the Tax Act, both effective on January 1, 2018. Subsequently, guidance was issued by federal taxing authorities providing clarification on provisions within the Tax Act. This new clarification allows us to spread the impact of adoption of the new revenue recognition guidance over a four-year period, reducing the single-year impact in 2018. The current tax payable of $19.8 million as of December 31, 2018, reflects this reduction as well as other refinements to the estimated impacts from both the new revenue recognition guidance and the Tax Act.
number of shares approved for issuance to participants under the 2018 Equity and Performance Incentive Plan (the “Plan”) is 3,900,000 shares plus shares issued under the Prior Plan that are forfeited or withheld to settle income tax obligations, all of which may be awarded as incentive stock options. Subject to the total shares available to be issued under the plan, the following specific limits apply: (A) the maximum aggregate dollar of equity based awards and cash compensation granted under the Plan or otherwise during any Plan Year to any nonemployee director shall not exceed $400,000 ($800,000 for a nonemployee director designated as Chairman of the Board); (B) no more than 200,000 shares subject to stock options, including incentive stock options, may be granted to any participant in any year; (C) no more than 200,000 shares subject to stock appreciation rights may be granted to any participant in any year; (D) no more than 200,000 shares may be granted to any participant in any fiscal year pursuant to an award of restricted stock or restricted stock units; (E) no more than 200,000 shares may be granted to any participant in any fiscal year pursuant to an award of performance shares or performance units; and (F) no more than 100,000 shares may be granted to any participant in any fiscal year pursuant to a stock-based award other than described above.