Acquisitions |
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | ACQUISITIONS Aerojet Ordnance Tennessee, Inc. On January 3, 2025, we acquired all of the equity interests of Aerojet Ordnance Tennessee, Inc. ("A.O.T"), a subsidiary of L3Harris Technologies, Inc. for approximately $101.1 million, subject to certain working capital adjustments, which reflected a $2.2 million reduction in the initial purchase price. A.O.T is a leading provider of advanced special materials which will further enhance our capabilities to develop and manufacture advanced materials and products for commercial, military and space applications. A.O.T. is reported as part of our Government Operations segment. Our purchase price allocation resulted in the recognition of $75.0 million of goodwill, $27.0 million of intangible assets, and $12.7 million of property, plant and equipment. This purchase price allocation reflects a $15.0 million increase to Goodwill, primarily related to a revision to our valuation of contract assets and liabilities identified during the three months ended December 31, 2025. As of December 31, 2025, we completed the determination of fair values of the acquired assets and liabilities assumed. The intangible assets included above consist of the following (dollar amounts in thousands):
Kinectrics Inc. On May 20, 2025, we acquired all of the equity interests in Kinectrics Holdings, Inc., the parent company of Kinectrics Inc. ("Kinectrics") for approximately CAD $782.7 million subject to certain working capital and other adjustments. This resulted in purchase consideration of CAD $614.5 million ($440.6 million U.S. dollar equivalent), which is net of assumed pension liabilities, other postretirement benefit obligations and indebtedness. Kinectrics is a leader in providing lifecycle management services for the global nuclear power, transmission and distribution markets and in the production and supply of isotopes for the radiopharmaceutical industry and employs over 1,300 employees located across 20 sites worldwide. Kinectrics is reported as part of our Commercial Operations segment. The fair value assessment of the Kinectrics acquisition is in process as of the filing date of this Form 10-K. The amounts allocated to the assets acquired and liabilities assumed have been determined by management, using estimates of fair value based on information currently available and on current assumptions of future operations. These fair values are subject to change upon the completion of purchase accounting, the impact of which may be material. The estimates of fair value resulted in the recognition of $175.0 million of property, plant and equipment, $130.1 million of goodwill, $151.3 million of intangible assets, $39.5 million of investments in unconsolidated affiliates and $25.4 million of net working capital, net of acquired pension liabilities and other postretirement benefit obligations totaling $90.3 million. This purchase price allocation reflects a $18.2 million reduction to goodwill related to the finalization of tax elections made during the three months ended December 31, 2025. The intangible assets included above consist of the following (dollar amounts in thousands):
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