CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended March 31

(Amounts in thousands
2013
except per share data)

2012

2011

Sales . . . . . . . $. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Operating expenses:
Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income before interest, loss on extinguishment of debt, income taxes,

and noncontrolling interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss on extinguishment of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income before income taxes and noncontrolling interest. . . . . . . . . . . .

Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less net income attributable to noncontrolling interest . . . . . . . . . . . . .

Net income attributable

$
to Alliant Techsystems Inc. . . . . . . . . . . . . . . .
Alliant Techsystems Inc. earnings per common share:
Basic. . . . . . . . .$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . .$. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends paid
$ per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alliant Techsystems Inc. weighted-average number of common

shares outstanding:
Basic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Income (from
$ above). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other comprehensive income (loss), net of tax:

Pension and other postretirement benefit liabilities:
Reclassification of prior service credits for pension and
postretirement benefit plans recorded to net income, net of tax
benefit of $3,366, $3,370, and $3,600 . . . . . . . . . . . . . . . . . . . . . .
Reclassification of net actuarial loss for pension and
postretirement benefit plans recorded to net income, net of tax
expense of $(49,192), $(38,042), and $(33,962). . . . . . . . . . . . . . .
Valuation adjustment for pension and postretirement benefit

4,362,145

plans, net of tax (expense) benefit of $(9,575), $94,968, and

$4,009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Change in fair value of derivatives, net of tax expense of $3,586,

$17,060, and $6,078, respectively . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in fair value of available-for-sale securities, net of tax
benefit of $135, $156, and $205, respectively. . . . . . . . . . . . . . . . . .
Total other comprehensive
$
income (loss) . . . . . . . . . . . . . . . . . . . . . .
Comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less comprehensive income attributable to noncontrolling interest .

Comprehensive
$ income attributable to Alliant Techsystems Inc. . . . .

3,421,276
940,869

64,678
162,359
244,189

469,643

-65,924
538
-11,773

392,484
120,243
272,241
436
271,805

8.38

8.34

0.92

32,447
32,608
272,241

-5,406

78,062

15,456
-5,608
-210
82,294

354,535
436
354,099

3,618,503
994,896
66,403
169,984
262,923

495,586

-89,296
676

406,966
143,762
263,204
592
262,612

7.99

7.93

0.8

32,874
33,112
263,204

-5,392

60,864

-152,066
-26,683
-244
(123,521) $
139,683
592
139,091

3,840,698
1,001,566
64,960
164,063
246,817

525,726

-87,612
560

438,674
124,963
313,711
536
313,175
9.41
9.32
0.2

33,275
33,615
313,711

-5,785

54,569

-4,844
-9,607
-324

34,009
347,720
536
347,184

4,613,399

4,842,264

NSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended March 31

(Amounts in thousands except per share
data)

Sales
Cost of sales

2013

4,362,145

2012

3,421,276

3,618,503

940,869

994,896

64,678

66,403

Selling

162,359

169,984

General and administrative

244,189

262,923

469,643

495,586

(65,924 )

(89,296

Gross profit
Operating expenses:
Research and development

Income before interest, loss on

extinguishment of debt, income
taxes, and noncontrolling interest

Interest expense
Interest income

Loss on extinguishment of debt

Income before income taxes and

noncontrolling interest

538

(11,773 )

392,484

676

406,966

Income tax provision

120,243

143,762

Net income

272,241

263,204

436

592

Less net income attributable to

noncontrolling interest

Net income attributable to Alliant

Techsystems Inc.

271,805

Basic

8.38

Diluted

8.34

0.92

Alliant Techsystems Inc. earnings

per common share:

Cash dividends paid per share

Alliant Techsystems Inc. weightedaverage number of common shares
outstanding:
Basic

32,447

32,874

Diluted

32,608

33,112

Net Income (from above)

Other comprehensive income
(loss), net of tax:
Pension and other postretirement
benefit liabilities:
Reclassification of prior service
credits for pension and
postretirement benefit plans
recorded to net income, net of tax
benefit of $3,366, $3,370, and
$3,600

272,241

(5,406 )

(5,392

Reclassification of net actuarial

loss for pension and
postretirement benefit plans
recorded to net income, net of tax
expense of $(49,192), $(38,042),
and $(33,962)

78,062

60,864

Valuation adjustment for pension

and postretirement benefit plans,
net of tax (expense) benefit of
$(9,575), $94,968, and $4,009

15,456

(152,066

Change in fair value of derivatives,

net of tax expense of $3,586,
$17,060, and $6,078, respectively
Change in fair value of available-forsale securities, net of tax benefit of
$135, $156, and $205, respectively

Total other comprehensive income

(loss)

(5,608 )

(26,683

(210 )

(244

82,294

Comprehensive income

Less comprehensive income

attributable to noncontrolling
interest

Comprehensive income attributable

to Alliant Techsystems Inc.

354,535

139,683

436

592

354,099

Years Ended March 31

2012

2011

4,613,399

4,842,264

3,618,503

3,840,698

994,896

1,001,566

66,403

64,960

169,984

164,063

262,923

246,817

495,586

525,726

(89,296 )

(87,612 )

676

560

406,966

438,674

78.4%

78.4%

79.3%

21.6%

21.6%

20.7%

1.48% 0.014394

3.72%
5.60%

143,762

124,963

263,204

313,711

592

536

262,612

313,175

7.99

9.41

7.93

9.32

0.8

0.2

32,874

33,275

33,112

33,615

263,204

(5,392 )

313,711

(5,785 )

60,864

54,569

(152,066 )

(4,844 )

(26,683 )

(9,607 )

(244 )

(324 )

(123,521 )

34,009

139,683

347,720

592

536

139,091

347,184

CONSOLIDATED BALANCE SHEETS

March 31
2013

(Amounts in thousands except share data)

ASSETS
Current assets:
Cash and cash equivalents

417,289

Net receivables

1,312,573

Net inventories

315,064

Income tax receivable

22,066

Deferred income tax assets

106,566

Other current assets

45,174

Total current assets

2,218,732

Net property, plant, and equipment

602,320

Goodwill

1,251,536

Noncurrent deferred income tax assets

95,007

Deferred charges and other non-current assets

Total assets
LIABILITIES AND EQUITY

215,415

4,383,010

Current liabilities:
Current portion of long-term debt

50,000

Accounts payable

337,713

Contract advances and allowances

119,491

Accrued compensation

137,630

Accrued income taxes

Other accrued liabilities

262,021

Total current liabilities

906,855

Long-term debt

Postretirement and postemployment benefits liabilities

1,023,877

94,087

Accrued pension liability

719,172

Other long-term liabilities

126,458

Total liabilities

Commitments and contingencies (Notes 10, 12 and 13)

Common stock$.01 par value:

Authorized180,000,000 shares

2,870,449

Issued and outstanding32,318,295 shares at

March 31, 2013 and 33,142,408 shares at March 31,
2012

323

Additional paid-in-capital

534,137

Retained earnings

2,483,483
(828,304 )

Accumulated other comprehensive loss

Common stock in treasury, at cost9,237,154 shares
held at March 31, 2013 and 8,413,041 shares held at
March 31, 2012

(687,470 )

Total Alliant Techsystems Inc. stockholders' equity

1,502,169

Noncontrolling interest

10,392

Total equity

Total liabilities and equity

1,512,561

4,383,010

March 31
2012

568,813

1,341,998

258,495

101,720

51,512

2,322,538

604,498

1,251,536

134,719

228,455

4,541,746

30,000

333,980

119,824

121,901

6,433

307,642

919,780
1,272,002

111,392

878,819

123,002
3,304,995

332

537,921
2,241,711
(910,598 )
(642,571 )

1,226,795

9,956

1,236,751

4,541,746

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended Mar

2013

(Amounts in thousands)

Operating Activities
Net income

272,241

Adjustments to net income to arrive at cash

provided by operating activities:
Depreciation

94,903

Amortization of intangible assets

11,159

Amortization of debt discount

6,875

Amortization of deferred financing costs

3,847

Loss on the extinguishment of debt

Deferred income taxes

11,773

(16,591 )

(Gain) loss on disposal of property

(1,613 )

Share-based plans expense

12,025

Excess tax benefits from share-based plans

(2 )

Changes in assets and liabilities:

Net receivables

34,602

Net inventories

(56,569 )

Accounts payable

Contract advances and allowances

4,160

(333 )

Accrued compensation

13,200

Accrued income taxes

(26,042 )

Accrued income taxes

(26,042 )

Pension and other postretirement benefits

(33,438 )

Other assets and liabilities

(56,605 )

Cash provided by operating activities

273,592

Investing Activities
Capital expenditures

Acquisition of business, net of cash acquired

Proceeds from the disposition of property, plant,

and equipment

Cash used for investing activities

(96,889 )

172

(96,717 )

Financing Activities
Payments made on bank debt
Payments made to extinguish debt

Proceeds from issuance of long-term debt

Payments made for debt issue costs

(35,000 )
(409,000 )

200,000

(1,458 )

Purchase of treasury shares

(58,371 )

Dividends paid

(30,033 )

Proceeds from employee stock compensation

plans

Excess tax benefits from share-based plans

Cash (used for) provided by financing

activities

5,461

(328,399 )

Cash (used for) provided by financing

activities

(328,399 )

(Decrease) increase in cash and cash equivalents

(151,524 )

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

568,813

417,289

Capital expenditures included in accounts

payable

14,549

Property disposals included in accounts

receivable

5,177

Supplemental Cash Flow Disclosures:

Noncash investing activity:

Noncash financing activity:

Years Ended March 31

2012

2011

263,204

313,711

98,037

100,041

10,848

11,145

12,293

17,168

4,764

5,157

7,518

23,018

(2,928 )

2,281

6,724

9,740

(23 )

(540 )

(207,451 )

(153,723 )

(16,466 )

(6,400 )

42,557

20,065

(2,103 )

15,108

(25,063 )

(53,616 )

19,801

(40,164 )

19,801

(40,164 )

37,547

86,955

123,048

71,124

372,307

421,070

(122,292 )

(130,201 )

7,335

(172,251 )

3,001

(114,957 )

(299,451 )

(20,000 )

(13,438 )

(300,000 )

(537,576 )

750,000

(19,883 )

(49,991 )
(26,552 )

(6,700 )

5,709

13,819

23

540

(390,811 )

186,762

(390,811 )

186,762

(133,461 )

308,381

702,274

393,893

568,813

702,274

14,976

14,118

CONSOLIDATED STATEMENTS OF EQUITY

Common Stock $.01 Par Value

(Amounts in thousands except

share data)

Balance, March 31, 2010

Shares

33,047,018

Amount

330

Comprehensive income

251,401

88,585

Performance shares issued net of

treasury stock withheld

139,342

Tax benefit related to share based

plans and other

Dividends Paid

Exercise of stock options

Restricted stock grants

Share-based compensation

Employee benefit plans and other

Balance, March 31, 2011

(7,274 )

33,519,072

335

Exercise of stock options

107,944

Restricted stock grants

201,429

Comprehensive income

Share-based compensation

Treasury Stock Purchased

Performance shares issued net of

treasury stock withheld

(742,000 )

73,685

Performance shares issued net of

treasury stock withheld

73,685

Tax benefit related to share based

plans and other

Dividends paid

Employee benefit plans and other

Balance, March 31, 2012

(17,722 )

(3 )

33,142,408

332

Exercise of stock options

93,617

Restricted stock grants

82,409

Comprehensive income

Share-based compensation

Treasury stock purchased

(1,003,938 )

Performance shares issued net of

treasury stock withheld

44,964

Tax benefit related to share based

plans and other

Dividends paid

Employee benefit plans and other

Balance, March 31, 2013

(41,165 )

32,318,295

(9 )

323

Additional

Retained

Paid-In

Earnings

Capital

578,046

1,699,176

313,175

(5,622 )

(7,057 )

9,740

(17,193 )

1,111

(6,700 )

254

559,279

2,005,651

262,612

(2,580 )

(17,159 )

6,724

(8,752 )

(8,752 )

(1,173 )

(26,552 )

1,582

537,921

2,241,711

271,805

(1,552 )

(8,429 )

12,025

(5,463 )

(2,474 )

(30,033 )

2,109

534,137

2,483,483

Accumulated

Treasury

Noncontrolling

Other

Stock

Interest

Comprehensive
Loss
$

(821,086 )

(657,872 )

34,009

536

19,440

7,057

10,689

(744 )

(621,430 )

9,364

(787,077 )

(123,521 )

592

8,289

17,159

(49,991 )

5,946

5,946

(910,598 )

(2,544 )

(642,571 )

9,956

82,294

436

7,013

8,429

(59,511 )

4,003

(828,304 )

(4,833 )

(687,470 )

Noncontrolling

Total

Interest

Equity

8,828

807,422

536

347,720

13,818

9,740

(6,504 )

1,111

(6,700 )

(485 )

9,364

1,166,122

592

139,683

5,709

6,724

(49,991 )

(2,806 )

(2,806 )

(1,173 )

(26,552 )

(965 )

9,956

1,236,751

436

354,535

5,461

12,025

(59,511 )

(1,460 )

(2,474 )

(30,033 )

(2,733 )

10,392

1,512,561