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0000001750 | ITEM 1.BUSINESS General AAR CORP. and its subsidiaries are referred to herein collectively as “AAR,” “Company,” “we,” “us,” and “our” unless the context indicates otherwise. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_0 | 1 |
0000001750 | AAR was founded in 1951, organized in 1955 and reincorporated in Delaware in 1966. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_1 | 2 |
0000001750 | We are a diversified provider of products and services to the worldwide aviation and government and defense markets. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_2 | 3 |
0000001750 | Fiscal 2020 began with strategic initiatives focused on growth and execution across all of our activities in the commercial and government markets. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_3 | 4 |
0000001750 | Our momentum from a successful fiscal 2019 carried into the new year as we saw continued strength in our parts supply activities, as well as in government programs. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_4 | 5 |
0000001750 | We also realized the positive impact our efforts to attract and retain talent had in our maintenance, repair and overhaul (“MRO”) activities. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_5 | 6 |
0000001750 | We succeeded in enhancing customer relationships with multiple commercial and government customers. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_6 | 7 |
0000001750 | In fiscal 2020, we were awarded a new $118 million contract from the Naval Air Systems Command in support of the U.S. Marine Corps for the procurement, modification and delivery of two C-40 aircraft. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_7 | 8 |
0000001750 | This award demonstrates the power of our integrated services model by combining the strengths of our parts supply, government programs, MRO, and engineering teams to deliver a creative solution to the U.S. Marine Corps. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_8 | 9 |
0000001750 | We were also awarded new long-term contracts across our parts supply activities including multiple distribution agreements for new parts and our largest commercial agreement in Japan to date covering aftermarket engine components. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_9 | 10 |
0000001750 | Our strategy to exit the capital-intensive Contractor-Owned, Contractor-Operated (“COCO”) business was also completed in fiscal 2020 as all of its assets and contracts were sold. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_10 | 11 |
0000001750 | As we continued to successfully execute on our recent contract awards over the last few years, we achieved strong sales growth through the first nine months of fiscal 2020 and were on track for a record year. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_11 | 12 |
0000001750 | Sales had increased $166.4 million or 11.2% over the prior year period primarily due to an increase in sales of $175.5 million or 12.5% in our Aviation Services segment reflecting the growth from new contract awards and successful execution across our Aviation Services activities. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_12 | 13 |
0000001750 | Upon entering the fourth quarter in March, we began to see the impact of the COVID-19 pandemic on the commercial aviation industry. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_13 | 14 |
0000001750 | In response to the impact from COVID-19, we implemented significant actions to reduce fixed costs and overhead which included a freeze on new hiring, reducing or eliminating all non-essential spend, reducing compensation and benefits, furloughs, a reduction in force, and closure of an airframe maintenance facility. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_14 | 15 |
0000001750 | During the fourth quarter, we also exited underperforming contracts and assets across our operations and decided to exit our joint venture investment in a Malaysian landing gear wheel and brake facility. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_15 | 16 |
0000001750 | Additionally, in June 2020, we decided to sell our composites manufacturing business which is consistent with our multi-year strategy to focus our portfolio on our core services offerings. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_16 | 17 |
0000001750 | We have also taken actions to preserve flexibility in our liquidity. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_17 | 18 |
0000001750 | In the fourth quarter, we elected to draw down our remaining available borrowings under our Revolving Credit Facility with the majority of that additional funding remaining in our cash accounts. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_18 | 19 |
0000001750 | We elected to borrow these additional amounts as a precautionary measure in light of economic and market uncertainty presented by COVID-19. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_19 | 20 |
0000001750 | Over the long-term, we expect to see continued strength in our Aviation Services segment given its offerings of value-added services to both commercial and government and defense customers. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_20 | 21 |
0000001750 | We believe long-term commercial aftermarket growth trends are favorable although there is uncertainty in certain fleet types as commercial operators re-evaluate their structure. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_21 | 22 |
0000001750 | Our results of operations are affected by the amount of commercial aircraft flying and flight hours. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_22 | 23 |
0000001750 | The current COVID-19 pandemic has decreased the amount of commercial aircraft flying and flight hours and has created significant economic disruption. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_23 | 24 |
0000001750 | Business Segments Aviation Services The Aviation Services segment provides aftermarket support and services for the commercial aviation and government and defense markets and accounted for approximately 95% of our sales in fiscal 2020, 2019, and 2018. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_24 | 25 |
0000001750 | In this segment, we also provide inventory management and distribution services, MRO, and engineering services. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_25 | 26 |
0000001750 | Business activities in this segment are primarily conducted through AAR Supply Chain, Inc.; AAR Government Services, Inc.; AAR Aircraft & Engine Sales & Leasing, Inc.; AAR Aircraft Services, Inc.; AAR Allen Services, Inc.; AAR Landing Gear LLC; AAR Airlift Group, Inc.; and AAR International, Inc. We sell and lease a wide variety of new, overhauled and repaired engine and airframe parts and components and aircraft to our commercial aviation and government/defense customers. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_26 | 27 |
0000001750 | We provide customized flight hour component inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components in support of our airline and government customers’ maintenance activities. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_27 | 28 |
0000001750 | The types of services provided under these programs include some or all of the following functions: material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_28 | 29 |
0000001750 | We are also an authorized distributor for more than 30 product lines which include parts from over 300 Federal Supply Class codes, which we source from over 25 leading aviation original equipment manufacturers (“OEM”s). | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_29 | 30 |
0000001750 | We provide fleet management and operations of customer-owned aircraft for the U.S. Department of State (“DoS”) under the INL/A WASS contract. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_30 | 31 |
0000001750 | We are the prime contractor on this ten-year performance-based contract which began in fiscal 2018. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_31 | 32 |
0000001750 | Our services under the contract include operating and maintaining the global DoS fleet of fixed- and rotary-wing aircraft. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_32 | 33 |
0000001750 | We also provide customized performance-based supply chain logistics programs in support of the U.S. Department of Defense (“DoD”) and foreign governments. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_33 | 34 |
0000001750 | The types of services provided under these programs include some or all of the following functions: material planning, sourcing, logistics, information and program management, airframe maintenance and maintenance planning, and component repair and overhaul. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_34 | 35 |
0000001750 | We provide major airframe inspection, maintenance, repair and overhaul, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior and interior refurbishment, and engineering services and support for many types of commercial and military aircraft. | 0section_1
| {
"1d": 0,
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_35 | 36 |
0000001750 | We also repair and overhaul various components, landing gears, wheels, and brakes for commercial and military aircraft. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_36 | 37 |
0000001750 | We operate six airframe maintenance facilities and one landing gear overhaul facility. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_37 | 38 |
0000001750 | Our landing gear overhaul facility is in Miami, Florida, where we repair and overhaul landing gear, wheels, brakes, and actuators for different types of commercial and military aircraft. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_38 | 39 |
0000001750 | Our U.S. airframe maintenance facilities are in Indianapolis, Indiana; Oklahoma City, Oklahoma; Miami, Florida; and Rockford, Illinois and our Canadian airframe maintenance facilities are in Trois Rivieres, Quebec and Windsor, Ontario. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_39 | 40 |
0000001750 | In the fourth quarter of fiscal 2020, we announced our decision to close our airframe maintenance hangar in Duluth, Minnesota as the facility was only supporting a single customer and its location was not convenient for many of our customers' route networks. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_40 | 41 |
0000001750 | We recognized pretax closure costs of $4.3 million in the fourth quarter primarily related to severance costs and asset impairment charges. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_41 | 42 |
0000001750 | In addition to our North American facilities, we also have an interest in a joint venture to develop and operate an airframe maintenance facility in India. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_42 | 43 |
0000001750 | The facility construction is expected to be completed in fiscal 2021. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_43 | 44 |
0000001750 | The majority of our product sales are made pursuant to standard commercial purchase orders. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_44 | 45 |
0000001750 | Government sales are generally made under standard types of government contracts, which can include firm fixed-price contracts, cost plus fixed fee contracts, and time-and-materials contracts. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_45 | 46 |
0000001750 | For cost plus fixed fee contracts, we typically receive reimbursement of our costs, to the extent the costs are allowable under contractual and regulatory provisions, in addition to receiving a fixed fee. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_46 | 47 |
0000001750 | Some of our contracts call for the performance of specified services or the delivery of specified products under indefinite delivery/indefinite quantity (“ID/IQ”) arrangements. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_47 | 48 |
0000001750 | Certain inventory supply and management and performance-based logistics program agreements reflect negotiated terms and conditions. | 0section_1
| {
"1d": 0,
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_48 | 49 |
0000001750 | To support activities within the Aviation Services segment, we acquire aviation parts and components from domestic and foreign airlines, independent aviation service companies, aircraft leasing companies, and OEMs. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_49 | 50 |
0000001750 | We have ongoing arrangements with OEMs that provide us access to parts, repair manuals, and service bulletins in support of parts manufactured by them. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_50 | 51 |
0000001750 | Although the terms of each arrangement vary, they typically are made on standard OEM terms as to duration, price, and delivery. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_51 | 52 |
0000001750 | From time to time, we purchase airframes and engines for disassembly into individual parts and components. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_52 | 53 |
0000001750 | Airframes and engines may also be leased to airlines on a short-term basis prior to disassembly or sale. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_53 | 54 |
0000001750 | Expeditionary Services The Expeditionary Services segment primarily consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_54 | 55 |
0000001750 | The Expeditionary Services segment accounted for approximately 5% of our sales in fiscal 2020, 2019, and 2018. Business activities in this segment are primarily conducted through AAR Manufacturing, Inc. and Brown International Corporation. | 0section_1
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_55 | 56 |
0000001750 | We design, manufacture, and repair transportation pallets and a wide variety of containers and shelters used in support of military and humanitarian tactical deployment activities. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_56 | 57 |
0000001750 | The containers and shelters are used in numerous mission requirements, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters. | 0section_1
| {
"1d": 0,
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"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_57 | 58 |
0000001750 | Shelters include both stationary and vehicle-mounted applications.We also provide engineering, design, and system integration services for specialized command and control systems. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_58 | 59 |
0000001750 | We also design and manufacture advanced composite materials for commercial, business and military aircraft (“Composites”). | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_59 | 60 |
0000001750 | On June 23, 2020, we entered into a definitive agreement to sell our Composites business as this divestiture is consistent with our multi-year strategy to focus our portfolio on our core services offerings. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_60 | 61 |
0000001750 | We expect the sale to close in the third quarter of calendar 2020 and will recognize a charge in the first quarter of fiscal 2021 of approximately $20 million in conjunction with the transaction. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_61 | 62 |
0000001750 | Sales in this segment are generally made to customers pursuant to standard commercial purchase orders and contracts. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_62 | 63 |
0000001750 | Government sales are generally made under standard types of government contracts, which can include firm fixed-price contracts, cost plus fixed fee contracts, and time-and-materials contracts. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_63 | 64 |
0000001750 | Some of our contracts call for the performance of specified services or the delivery of specified products under ID/IQ arrangements, however, the majority of our products and services are procured via definite contracts. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_64 | 65 |
0000001750 | Raw Materials Although we generated approximately 55% of our fiscal 2020 sales from the sale of products, we are generally engaged in only limited manufacturing activities and have minimal exposure to fluctuations in both the availability and pricing of raw materials. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_65 | 66 |
0000001750 | We purchase raw materials for our manufacturing operations, including steel, aluminum, extrusions, balsa, and other necessary supplies from several vendors. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_66 | 67 |
0000001750 | Where necessary, we have been able to obtain raw materials and other inventory items from numerous sources for each segment at competitive prices, terms, and conditions, and we expect to be able to continue to do so. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_67 | 68 |
0000001750 | Terms of Sale We generally sell our products and services under standard 30-day payment terms. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_68 | 69 |
0000001750 | On occasion, certain customers will negotiate extended payment terms of 60-90 days. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_69 | 70 |
0000001750 | Except for customary warranty provisions, customers neither have the right to return products nor do they have the right to extended financing. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_70 | 71 |
0000001750 | Our government contracts may extend several years and include one or more base years and one or more option years. | 0section_1
| {
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} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_71 | 72 |
0000001750 | The government generally has the right not to exercise options to extend or expand our contracts and may otherwise terminate, cancel, or modify some contracts at its convenience. | 0section_1
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"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_72 | 73 |
0000001750 | Customers The principal customers for our products and services in the Aviation Services segment are domestic and foreign passenger airlines, domestic and foreign cargo airlines, regional and commuter airlines, business and general aviation operators, OEMs, aircraft leasing companies, aftermarket aviation support companies, the DoD and its contractors, the DoS, and foreign military organizations or governments. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_73 | 74 |
0000001750 | In the Expeditionary Services segment, our principal customers include the DoD and its contractors, foreign military organizations or governments, defense organizations, and OEMs. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_74 | 75 |
0000001750 | Sales of aviation products and services to our commercial airline customers are generally affected by such factors as the number, type and average age of aircraft in service, the levels of aircraft utilization (e.g., frequency of schedules, flying hours, and take-off and landing cycles), the number of airline operators, the general economy, and the level of sales of new and used aircraft. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_75 | 76 |
0000001750 | Sales to the DoD and other government agencies are subject to a number of factors, including the level of troop deployment worldwide, government funding, competitive bidding, and requirements generated by worldwide geopolitical events. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_76 | 77 |
0000001750 | We primarily market and sell products and services through our own employees. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_77 | 78 |
0000001750 | In certain markets outside of the United States, we rely on foreign sales representatives to assist in the sale of our products and services. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_78 | 79 |
0000001750 | Sales to Government and Defense Customers Sales to global government and defense customers (including sales to branches, agencies, and departments of the U.S. government) were $778.8 million (37.6% of consolidated sales), $677.9 million (33.0% of consolidated sales) and $428.9 million (24.5% of consolidated sales) in fiscal 2020, 2019 and 2018, respectively. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_79 | 80 |
0000001750 | Sales to branches, agencies, and departments of the U.S. government and their contractors were $668.2 million (32.2% of consolidated sales), $546.2 million (26.6% of consolidated sales) and $304.3 million (17.4% of consolidated sales) in fiscal 2020, 2019, and 2018, respectively. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_80 | 81 |
0000001750 | Sales to government and defense customers are reported in each of our reportable segments (See Note 14 of Notes to Consolidated Financial Statements). | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_81 | 82 |
0000001750 | Since such sales are subject to competitive bidding and government funding, no assurance can be given that such sales will continue at levels previously experienced. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_82 | 83 |
0000001750 | The majority of our U.S. government sales are for products and services supporting the DoD logistics and mobility strategy and supporting DoS flight operations. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_83 | 84 |
0000001750 | Thus, our government contracts have changed, and may continue to change, with fluctuations in defense and other governmental agency spending and requirements. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_84 | 85 |
0000001750 | Our government contracts are also often subject to termination for convenience by the customer; in the event of such a termination, we are contractually entitled to recover all allowable costs incurred by us through the date of termination. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_85 | 86 |
0000001750 | Government Regulation and Certificates The Federal Aviation Administration (“FAA”) regulates the manufacture, repair, and operation of all aircraft and aircraft parts operated in the United States. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_86 | 87 |
0000001750 | Similar rules and regulatory authorities exist in other countries. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_87 | 88 |
0000001750 | The inspection, maintenance and repair procedures for the various types of aircraft and equipment are prescribed by these regulatory authorities and can be performed only by certified repair facilities utilizing certified technicians. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_88 | 89 |
0000001750 | The FAA requires that various maintenance routines be performed on aircraft engines, certain engine parts, and airframes at regular intervals based on take off and landing cycles or flight time. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_89 | 90 |
0000001750 | Our businesses, which sell defense products and services directly to the U.S. government or through its contractors, can be subject to various laws and regulations governing pricing and other factors. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_90 | 91 |
0000001750 | We have 12 FAA certificated repair stations in the United States, Canada, and Europe. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_91 | 92 |
0000001750 | Of the 12 certificated FAA repair stations, seven are also European Aviation Safety Agency (“EASA”) and three are also Transport Canada Civil Aviation (“TCCA”) certificated repair stations. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_92 | 93 |
0000001750 | Such certificates, which are ongoing in duration, are required for us to perform authorized maintenance, repair, and overhaul services for our customers and are subject to revocation by the government for non-compliance with applicable regulations. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_93 | 94 |
0000001750 | Of the 12 FAA certificated repair stations, 11 are in the Aviation Services segment and one is held by Composites included in our Expeditionary Services segment, which is expected to be sold in third quarter of calendar 2020. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_94 | 95 |
0000001750 | The EASA and TCCA certificated repair stations are in the Aviation Services segment. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_95 | 96 |
0000001750 | We also have a FAR Part 135 certificate to operate aircraft, although the certificate is not active. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_96 | 97 |
0000001750 | We believe that we possess all licenses and certifications that are material to the conduct of our business. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_97 | 98 |
0000001750 | Competition Competition in each of our markets is based on quality, ability to provide a broad range of products and services, speed of delivery, and price. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_98 | 99 |
0000001750 | Competitors in our Aviation Services segment include OEMs, the service divisions of large commercial airlines, and other independent suppliers of parts, repair, and overhaul services to the commercial and defense markets. | 0section_1
| {
"1d": 0,
"5d": 1,
"30d": 0
} | 2020-07-21 | 0000001750_10-K_2020 | 0000001750_10-K_2020_section_1_99 | 100 |
Subsets and Splits