After a successful second quarter earnings season for defense primes, many Wall Street analysts reaffirmed their view that the defense market bottomed out at the end of 2012. This week brought more positive news as Secretary of Defense Chuck Hagel announced that the number of furlough days for Department of Defense (“DoD”) civilian employees, which began on July 8th, would be cut from eleven to six days after the DoD found cost savings in other areas.
This week the Senate Appropriations Defense Subcommittee approved a $594 billion defense budget for the 2014 fiscal year, further easing uncertainty about future defense spending.
On Thursday, an official leaked that the Obama administration has opted not to deliver several F-16s to Egypt, preferring instead to have the fighters remain in Lockheed Martin’s plant.
During a visit to Jacksonville Naval Air Station on Tuesday, Defense Secretary Chuck Hagel discussed a 20% staff reduction within the offices of high ranking officials and senior civilians at the Pentagon from 2015 to 2019.
History was made at sea as the Northrop Grumman X-47B became the first unmanned jet aircraft to land on an aircraft carrier. After taking off from Patuxent River, Md., the aircraft did one flyby over the U.S.S. George H.W. Bush and performed a smooth landing and caught the number three wire, as engineers had intended.
From an M&A standpoint, there is a considerable benefit to being the owner of an S corporation. Assuming a 338(h)10 election is made, many buyers of these types of entities can receive a tax benefit through a step-up in basis (the amount of the stock purchase above that of the target company’s assets), which can be amortized over 15 years.
Over the past week, the Senate passed a $46 billion immigration reform and border security bill. With the bill, the Senate approved an amendment that would require an additional $38 million investment in technologies and security personnel to be stationed along the U.S. southern border.
Army Chief General Ray Odierno announced on Tuesday an extensive plan to cut 12 brigade combat teams (“BCT”) from the active force by 2017. This announcement has sparked heated debate amongst policymakers and throughout the military communities whose economies are centered on these installations.